Document:

EX-10.1

 Exhibit 10.1 
  

 
  

CONTRIBUTION AGREEMENT 

BY AND AMONG 
 OCI
PARTNERS LP 
 OCI USA INC. 

AND 
 OCIP HOLDING LLC

 DATED NOVEMBER 10, 2014 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 ARTICLE I DEFINITIONS AND INTERPRETATION
	  	 	1	  
		
	 Section 1.1 Definitions
	  	 	1	  
		
	 Section 1.2 References and Rules of Construction
	  	 	1	  
		
	 ARTICLE II CONTRIBUTION AT CLOSING AND USE OF PROCEEDS
	  	 	2	  
		
	 Section 2.1 Contribution of Cash to OCIP
	  	 	2	  
		
	 Section 2.2 Use of Proceeds
	  	 	2	  
		
	 ARTICLE III COVENANTS AND CLOSING CONDITIONS
	  	 	2	  
		
	 Section 3.1 Covenants of the Parties
	  	 	2	  
		
	 Section 3.2 Closing Conditions of OCIP
	  	 	2	  
		
	 Section 3.3 Closing Conditions of Holding
	  	 	3	  
		
	 ARTICLE IV CLOSING AND TERMINATION
	  	 	3	  
		
	 Section 4.1 Closing
	  	 	3	  
		
	 Section 4.2 Holding’s Closing Obligations
	  	 	3	  
		
	 Section 4.3 OCIP’s Closing Obligations
	  	 	4	  
		
	 ARTICLE V LIMITATIONS
	  	 	4	  
		
	 Section 5.1 Disclaimer of Representations and Warranties
	  	 	4	  
		
	 Section 5.2 Damages
	  	 	4	  
		
	 ARTICLE VI MISCELLANEOUS
	  	 	4	  
		
	 Section 6.1 Successors and Assigns
	  	 	4	  
		
	 Section 6.2 No Third Party Rights
	  	 	5	  
		
	 Section 6.3 Counterparts
	  	 	5	  
		
	 Section 6.4 Governing Law
	  	 	5	  
		
	 Section 6.5 Severability
	  	 	5	  
		
	 Section 6.6 Amendment or Modification
	  	 	5	  
		
	 Section 6.7 Integration
	  	 	5	  
		
	 Section 6.8 Waiver of Compliance; Consents
	  	 	5	  
		
	 Section 6.9 Notices
	  	 	6	  
		
	 APPENDIX
	  			
		
	 Appendix I Definitions
	  			

  
 i 

 CONTRIBUTION AGREEMENT 

This Contribution Agreement, dated November 10, 2014 (this “Agreement”), is entered into by and among OCI Partners LP, a
Delaware limited partnership (“OCIP”), OCI USA Inc., a Delaware corporation (“OCI USA”), and OCIP Holding LLC, a Delaware limited liability company (“Holding”). The parties to this Agreement are
each sometimes referred to as a “Party” and collectively as the “Parties.” 
 RECITALS 

WHEREAS, OCI USA and OCIP are parties to that certain letter agreement dated November 27, 2013 (the “Equity Commitment
Letter”); 
 WHEREAS, OCIP has requested a draw from OCI USA pursuant to the Equity Commitment Letter as evidenced by the written
notice from OCIP dated November 7, 2014; 
 WHEREAS, OCI USA, through Holding, desires to contribute cash to the capital of OCIP
pursuant to the Equity Commitment Letter; 
 WHEREAS, prior to the date hereof, OCI USA has contributed $60,000,000 in cash to the capital
of Holding (the “Contributed Cash”); 
 WHEREAS, Holding desires to contribute the Contributed Cash to the capital of OCIP
and, in exchange, OCIP desires to issue to Holding common units representing limited partner interests in OCIP (“Common Units”). 

NOW, THEREFORE, in consideration of the mutual undertakings and agreements set forth below and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
 ARTICLE I 

DEFINITIONS AND INTERPRETATION 

Section 1.1 Definitions. For purposes hereof, the capitalized terms used herein and not otherwise defined have the meanings
set forth in Appendix I. 
 Section 1.2 References and Rules of Construction. All references in this Agreement to
Appendices, Articles, Sections, subsections and other subdivisions refer to the corresponding Appendices, Articles, Sections, subsections and other subdivisions of or to this Agreement unless expressly provided otherwise. Titles appearing at the
beginning of any Appendices, Articles, Sections, subsections and other subdivisions of this Agreement are for convenience only, do not constitute any part of this Agreement and shall be disregarded in construing the language hereof. The words
“this Agreement,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular Appendix, Article, Section, subsection or
other subdivision unless expressly so limited. The word “including” (in its various forms) means “including without limitation.” All references to “$” or “dollars” shall be deemed references to United States
dollars. Each accounting term not defined herein will have the meaning given to it under generally accepted accounting principles in the United States. 

  
 1 

 
Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender, and words, terms and titles (including terms defined herein) in the singular form shall
be construed to include the plural and vice versa, unless the context otherwise requires. References to any Law means such Law as it may be amended from time to time. 

ARTICLE II 
 CONTRIBUTION
AT CLOSING AND USE OF PROCEEDS 
 Section 2.1 Contribution of Cash to OCIP. At the Closing, and subject to the terms
and conditions of this Agreement, Holding shall contribute the Contributed Cash to the capital of OCIP (the “Capital Contribution”) in exchange for a number of Common Units equal to the Capital Contribution divided by the Issue Price (the
“Issued Units”). Any fractional Common Unit resulting from such calculation will be rounded down to the nearest whole Common Unit. For the avoidance of doubt, the Parties agree that the number of Issued Units equals 2,995,372 Common Units.

 Section 2.2 Use of Proceeds. Subject to the other terms and conditions of this Agreement, OCIP shall retain the
Capital Contribution to fund capital expenditures and other costs and expenses incurred in connection with the Debottlenecking Project. 

ARTICLE III 
 COVENANTS
AND CLOSING CONDITIONS 
 Section 3.1 Covenants of the Parties. Each of the Parties agrees to use its reasonable best
efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable under applicable Law or otherwise to consummate and make effective the Transactions on the Closing Date, including using
their reasonable commercial efforts to satisfy the conditions to Closing set forth in this Article III. Each Party will furnish to the other Party such necessary information and reasonable assistance as such other Party may reasonably request
in connection with the foregoing obligations. 
 Section 3.2 Closing Conditions of OCIP. The obligation of OCIP to
consummate the Transactions is subject, at the option of OCIP, to the satisfaction at or prior to the Closing of all of the following conditions: 

(a) Transaction Documents. Holding shall have executed and delivered (or caused to be executed and delivered) all
Transaction Documents that Holding is required to execute and deliver to OCIP under Section 4.2; 
 (b) No
Action. No action, proceeding or litigation (excluding any action, proceeding or litigation initiated by OCIP or any other Group Member) shall be pending or threatened before any Governmental Authority seeking to enjoin or restrain the
consummation of the Transactions or recover damages from OCIP or any other Group Member resulting therefrom; 
 (c) No
Existing Order. No Order shall have been entered and be in effect, and no Law shall have been promulgated or enacted and be in effect, that restrains, enjoins or invalidates this Agreement or the consummation of the Transactions; 

  
 2 

 (d) Authorization. The execution, delivery and performance by Holding of
this Agreement and all of the other Transaction Documents to which it is a party shall have been duly authorized Holding; and 

(e) Contributions. OCIP shall have received the Capital Contribution from Holding pursuant to Section 2.1.

 Section 3.3 Closing Conditions of Holding. The obligation of Holding to consummate the Transactions is subject, at the
option of Holding, to the satisfaction at or prior to the Closing of all of the following conditions: 
 (a) Transaction
Documents. OCIP shall have executed and delivered (or caused to be executed and delivered) all Transaction Documents that OCIP is required to execute and deliver to Holding under Section 4.3; 

(b) No Action. No action, proceeding or litigation (excluding any action, proceeding or litigation initiated by Holding
or any of its parent Affiliates) shall be pending or threatened before any Governmental Authority seeking to enjoin or restrain the consummation of the Closing or recover damages from Holding or any of its parent Affiliates resulting therefrom; 

(c) No Existing Order. No Order shall have been entered and be in effect, and no Law shall have been promulgated or
enacted and be in effect, that restrains, enjoins or invalidates this Agreement or the consummation of the Transactions; 

(d) Authorization. The execution, delivery and performance by OCIP of this Agreement and all of the other Transaction
Documents to which it is a party shall have been duly authorized OCIP; and 
 (e) Common Units. Holding shall have
received the Issued Units. 
 ARTICLE IV 

CLOSING AND TERMINATION 

Section 4.1 Closing. Subject to the satisfaction of the conditions set forth in Section 3.2 and
Section 3.3 (or waiver thereof by the party entitled to the benefit thereof), the Closing shall be held on the Closing Date at 10:00 a.m., local time, at the office of Latham & Watkins LLP, 811 Main Street, Suite 3700, Houston,
Texas, or at such other time or place as the Parties may otherwise agree in writing. For all intents and purposes, the Closing shall be deemed effective at 12:01 a.m. on the Closing Date. 

Section 4.2 Holding’s Closing Obligations. At Closing, Holding shall deliver, or cause to be delivered, to OCIP the
following: 
 (a) immediately available U.S. dollars in an amount equal to the Capital Contribution; and 

  
 3 

 (b) any other agreements, instruments and documents that are otherwise necessary
and appropriate to consummate the Transactions that may be reasonably requested by OCIP. 
 Section 4.3 OCIP’s Closing
Obligations. At Closing, OCIP shall deliver, or cause to be delivered, to Holding the following: 
 (a) the Issued
Units in book-entry form; 
 (b) any other agreements, instruments and documents that are otherwise necessary and
appropriate to consummate the Transactions that may be reasonably requested by Holding. 
 ARTICLE V 

LIMITATIONS 

Section 5.1 Disclaimer of Representations and Warranties. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN
ANY OTHER PROVISION OF THIS AGREEMENT, IT IS THE EXPLICIT INTENT OF EACH PARTY HERETO THAT NO PARTY IS MAKING ANY REPRESENTATION OR WARRANTY WHATSOEVER TO ANY OTHER PARTY, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE. 

Section 5.2 Damages. NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN ANY OTHER PROVISION OF THIS AGREEMENT,
EACH PARTY HEREBY AGREES THAT THE RECOVERY BY ANY PARTY HERETO OF ANY DAMAGES OR OTHER LIABILITIES SUFFERED OR INCURRED BY IT AS A RESULT OF ANY BREACH BY THE OTHER PARTY OF ANY OF ITS OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE ACTUAL
DAMAGES AND/OR LIABILITIES SUFFERED OR INCURRED BY THE NON-BREACHING PARTY AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ITS OBLIGATIONS HEREUNDER AND IN NO EVENT SHALL THE BREACHING PARTY BE LIABLE TO THE NON-BREACHING PARTY FOR ANY INDIRECT,
CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS INTERRUPTION) SUFFERED OR INCURRED BY THE NON-BREACHING PARTY AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF
ANY OF ITS OBLIGATIONS HEREUNDER. 
 ARTICLE VI 

MISCELLANEOUS 

Section 6.1 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and assigns. Neither Party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other Party, which consent shall not be unreasonably withheld, conditioned or delayed. 

  
 4 

 Section 6.2 No Third Party Rights. The provisions of this Agreement are
intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies, and no person is or is intended to be a third party beneficiary of
any of the provisions of this Agreement. 
 Section 6.3 Counterparts. This Agreement may be executed in any number of
counterparts with the same effect as if all Parties had signed the same document and shall be construed together and shall constitute one and the same instrument. 

Section 6.4 Governing Law. This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding
any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. EACH OF THE PARTIES HERETO AGREES THAT THIS AGREEMENT INVOLVES AT LEAST U.S. $100,000.00 AND THAT THIS
AGREEMENT HAS BEEN ENTERED INTO IN EXPRESS RELIANCE UPON 6 Del. C. § 2708. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES (i) TO BE SUBJECT TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND OF THE FEDERAL
COURTS SITTING IN THE STATE OF DELAWARE AND (ii) TO THE EXTENT SUCH PARTY IS NOT OTHERWISE SUBJECT TO SERVICE OF PROCESS IN THE STATE OF DELAWARE, TO APPOINT AND MAINTAIN AN AGENT IN THE STATE OF DELAWARE AS SUCH PARTY’S AGENT FOR
ACCEPTANCE OF LEGAL PROCESS AND TO NOTIFY THE OTHER PARTIES OF THE NAME AND ADDRESS OF SUCH AGENT. 
 Section 6.5
Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction to contravene, or to be invalid under, the Laws of any Governmental Authority having jurisdiction over the subject matter hereof, such
contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and
necessary provision added so as to give effect to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement. 

Section 6.6 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written
agreement of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an amendment to this Agreement. 

Section 6.7 Integration. This Agreement and the instruments referenced herein supersede all previous understandings or
agreements among the Parties, whether oral or written, with respect to the subject matter of this Agreement and such instruments. This Agreement and such instruments contain the entire understanding of the Parties with respect to the subject matter
hereof and thereof. There are no unwritten oral agreements between the Parties. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Agreement unless it is
contained in a written amendment hereto executed by the Parties hereto after the date of this Agreement. 
 Section 6.8 Waiver of
Compliance; Consents. Any failure of any of the Parties to comply with any obligation, covenant, agreement or condition herein may be waived by the 

  
 5 

 
Party entitled to the benefits thereof only by a written instrument signed by the Party granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. 

Section 6.9 Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if
delivered personally or by facsimile transmission, or mailed by a nationally recognized overnight courier or registered or certified mail (return receipt requested), postage prepaid, to the Parties at the following addresses: 

If to OCIP, to: 

OCI Partners LP 

Mailing Address: 

P.O. Box 1647 

Nederland, Texas 77627 

Physical Address: 

5470 N. Twin City Highway 

Nederland, Texas 77627 

Attention: Fady Kiama, Chief Financial Officer 

E-mail: Fady.Kiama@orascomci.com 

If to OCI USA or Holding, to: 

OCIP USA Inc. 

660 Madison, 19th Floor 

New York, New York 10065 

Attention: Kevin Struve, Manager 

E-mail: Kevin.Struve@oci.nl 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

  
 6 

 IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties as of the date first
above written. 
  

			
	OCI Partners LP
		
	By:	 	 OCI GP LLC,
 its general
partner

		
	By:	 	/s/ Fady Kiama
	Name:	 	Fady Kiama
	Title:	 	Chief Financial Officer

  

			
	OCIP USA Inc.
		
	By:	 	/s/ Kevin Struve
	Name:	 	Kevin Struve
	Title:	 	President

  

			
	OCIP Holding LLC
		
	By:	 	/s/ Kevin Struve
	Name:	 	Kevin Struve
	Title:	 	Manager

 Signature Page – Contribution Agreement 

 Appendix I 

Definitions 

“Affiliate” has the meaning assigned to such term in the Partnership Agreement. 

“Agreement” has the meaning assigned to such term in the preamble to this Agreement. 

“Capital Contribution” has the meaning assigned to such term in Section 2.1. 

“Closing” means the consummation of the transactions contemplated by Article II on the Closing Date. 

“Closing Date” means November 10, 2014, unless otherwise agreed to in writing by the Parties. 

“Common Units” has the meaning assigned to such term in the recitals to this Agreement. 

“Contributed Cash” has the meaning assigned to such term in the recitals to this Agreement. 

“Debottlenecking Project” means the debottlenecking project (including a maintenance turnaround and environmental upgrades)
currently being undertaken by OCIP, as more particularly described in OCIP’s final prospectus dated October 3, 2013 (filed with the Securities and Exchange Commission on October 7, 2013), Annual Report on Form 10-K for the fiscal year
ended December 31, 2013 (as amended), Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2014 and Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2014. 

“Equity Commitment Letter” has the meaning assigned to such term in the recitals to this Agreement. 

“Group Member” has the meaning assigned to such term in the Partnership Agreement. 

“Governmental Authority” means any executive, legislative, judicial, regulatory or administrative agency, body, commission,
department, board, court, tribunal, arbitrating body or authority of the United States or any foreign country, or any state, local or other governmental subdivision thereof. 

“Holding” has the meaning assigned to such term in the preamble to this Agreement. 

“Issue Price” means $20.0309, which is the volume-weighted average trading price, as adjusted for splits, combinations and
other similar transactions, of a Common Unit on the New York Stock Exchange, calculated over the consecutive 20-trading day period ending on the close of trading on the trading day immediately prior to the Closing Date. 

  
 Appendix I-1 

 “Issued Units” has the meaning assigned to such term in Section 2.1. 

“Law” means any statute, law, treaty, rule, code, ordinance, requirement, regulation, permit or certificate of any
Governmental Authority, any interpretation of any of the foregoing by any Governmental Authority, or any binding judgment, decision, decree, injunction, writ, order or like action of any court, arbitrator or other Governmental Authority. 

“OCI USA” has the meaning assigned to such term in the preamble to this Agreement. 

“OCIP” has the meaning assigned to such term in the preamble to this Agreement. 

“Order” means any order, injunction, judgment, decree, ruling, writ, assessment or arbitration award of a Governmental
Authority. 
 “Partnership Agreement” means First Amended and Restated Agreement of Limited Partnership of OCIP, dated
October 9, 2013, as amended. 
 “Party” and “Parties” have the meanings assigned to such terms in the
preamble to this Agreement. 
 “Transaction Documents” means, collectively, this Agreement and any other agreements,
documents and instruments to be delivered by the Parties pursuant to Article IV. 
 “Transactions” means the
transactions described in Article II. 

  
 Appendix I-2Exhibit 10.1

 

 

Amended and restated

EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (this “Agreement”), dated as of September 16, 2014, is entered into by and between
CARTESIAN, INC., a Delaware corporation, f/k/a The Management Network Group, Inc. (the “Company”), with offices
at 7300 College Boulevard – Suite 302, Overland Park, Kansas 66210, and DONALD E. KLUMB, an individual (“Employee”),
residing at 12617 Juniper Circle, Leawood, Kansas 66209.

 

RECITALS

 

The Company wishes
to obtain the services of Employee and Employee wishes to perform such services on the terms and conditions contained herein.

 

Therefore, the parties
hereby agree as follows:

 

1.           EMPLOYMENT.
Subject to the terms and conditions of this Agreement, effective as of September 16, 2014 (the “Effective Date”),
the Company hereby continues to employ Employee as Chief Executive Officer, President and Chief Financial Officer of the Company
to perform the duties described in Section 4 hereof.

 

2.           TERM.
The term of this Agreement shall continue through February 2, 2015, unless such term is terminated earlier pursuant to Section
7 hereof (the “Initial Term”). The Agreement shall automatically renew for successive one-year renewal terms
unless either party gives the other party at least sixty (60) days advance notice of their intent not to renew (“Notice
of Non-Renewal”). Such Initial Term and any such renewal terms may be collectively referred to as the “Term”.

 

3.           COMPENSATION.

 

3.1           Salary.
Subject to the adjustment provisions herein, Employee shall be paid biweekly installments based upon an annual base salary of $350,000.
The Company may adjust Employee’s base salary at any time in its sole discretion to reflect Employee’s performance;
provided, however, that Employee’s base salary shall at no time be less than the minimum base salary set forth
in the first sentence of this paragraph. Amounts paid pursuant to this Section 3.1 are hereinafter referred to as “Base
Salary.”

 

3.2           Bonus.
In addition to Employee’s Base Salary, Employee shall be: (a) entitled to receive an incentive bonus in an amount which
may be determined by the Board provided that Employee achieves the reasonable performance goals and objectives established by the
Board for Employee for any given year in the Term; and (b) eligible to participate in the Company’s bonus pool for the
Company’s executive officers which may be established for any given year in the Term pursuant to the executive incentive
compensation plan, as duly approved by the Compensation Committee of the Board. For any given year in the Term for which the bonus
pool is established, the Board shall establish for the year the amount of the bonus pool and the reasonable performance goals to
be achieved as a condition to the Company’s eligible executives being entitled to the bonus pool pursuant to the executive
incentive compensation plan. The annual performance goals related to the bonus pool shall be based upon the Company’s overall
performance or the other factors specified in the plan and established as performance goals for the applicable year. The Board
and Employee shall agree upon those executive employees of the Company, in addition to Employee, who are eligible to participate
in the executive incentive compensation plan. Employee shall determine the allocation of the bonus pool among eligible participants,
subject to approval of the Board. To the extent that any amounts are intended to qualify for the "qualified performance-based
compensation" exception under Section 162(m) of the Code (as defined below), the Board and Employee may agree upon different
procedures for implementing the bonus pool in order to attempt to qualify for such exception. The individual incentive bonus for
Employee and Employee’s allocable portion of the bonus pool as described herein are referred to as the “Bonus.”
In order to be eligible to receive a Bonus, Employee must be employed by the Company on the last day of the applicable fiscal year
for which the performance goals are established. The Bonus, if any, shall be paid within two and one-half months after the end
of the applicable fiscal year.

 

    	 

    	 

    

 

3.3           Other
Compensation. The Compensation Committee of the Board shall periodically (and in any event, annually) review Employee’s
compensation and recommend to the Board of Directors for its consideration such modifications, if any, to such compensation as
the committee determines may be appropriate for the Chief Executive Officer, President and Chief Financial Officer of the Company.
In connection with such process, the Compensation Committee may recommend that the Board consider extraordinary bonuses and other
forms of compensation for Employee.

 

3.4           Equity
Awards. Upon dissolution of the special committee of the Board and at such time as permissible in accordance with applicable
rules and regulations of the U.S. Securities and Exchange Commission, the Board will evaluate and determine whether to grant to
Employee non-qualified stock options and/or shares of restricted stock in the Company or such other equity awards as the Board
determines.

 

4.           DUTIES.
Employee shall, during the term hereof, be an officer of the Company and have the title of Chief Executive Officer, President and
Chief Financial Officer of the Company, and shall perform such duties as and have such authority as are customary and usual for
such position and as may reasonably be directed by the Board of the Company. Without limiting the generality of the foregoing:

 

4.1           Full
Time. Employee shall devote Employee’s full working time, ability and attention to the business of the Company and shall,
in accordance with the highest ethical and professional standards, seek to maximize the financial success of the Company’s
business and to optimize the goodwill and reputation of the Company within its industry and with its customers. During the term
of this Agreement, Employee agrees that he will not become involved in the active ownership or management of any business enterprise
that will interfere with the performance of his duties hereunder. Employee further warrants that he will not engage, directly or
indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that is or may be in conflict with,
or that might place him in a conflicting position to, that of the Company. So that the Company may be aware of the extent of any
other demands upon Employee’s time and attention, Employee shall disclose in confidence to the Company the nature and scope
of any other business activity in which he is or becomes engaged during his employment with the Company. Employee also warrants
that he is not a party to any valid or binding agreement or legal relationship whose performance or execution would interfere with
the performance of his duties under this Agreement. Employee may serve as a director of other corporations or entities with the
prior approval of the Board, which approval will not be unreasonably withheld.

 

    	2

    	 

    

 

4.2           Reporting.
Employee shall report to the Executive Chairman of the Board of the Company, or at such time as there is no longer an Executive
Chairman of the Board, to the Board.

 

5.           EXPENSES.
Subject to such rules and procedures as the Company from time to time specifies, the Company shall reimburse Employee on a bi-weekly
basis for reasonable business expenses necessarily incurred in the performance of duties under this Agreement.

 

6.           BENEFITS.
Except as otherwise set forth herein, Employee shall be entitled to fringe benefits and paid time off as set forth below.

 

6.1           Participation
in Employee Benefit Plans. Employee shall be eligible to participate in any health, disability, and group term life insurance
plans or other perquisites and fringe benefits that the Company extends generally from time to time to the executive officers of
the Company. These benefits described in this Section 6.1 are collectively referred to herein as “Fringe Benefits”.

 

6.2           Paid
Time Off. Employee shall be eligible for Personal Time Off in accordance with the Company’s Personal Time Off policy
then in effect and applicable to executive officers of the Company.

 

7.           TERMINATION
AND NOTICE OF NON-RENEWAL OF AGREEMENT.

 

7.1           Termination
By The Company Due to Death or Disability. In the event of Employee’s death during the Term, this Agreement and the employment
of Employee hereunder shall terminate automatically as of the date of death, except that Sections 9, 10, 11, 12, and 13 shall survive
such termination. In the event of Employee’s Disability (as hereinafter defined) for ninety (90) consecutive calendar days
or one hundred and twenty (120) calendar days in the aggregate during any twelve (12) months of the Term, the Company shall have
the right, by written notice to Employee, to terminate this Agreement and the employment of Employee hereunder as of the date of
such notice, except that Sections 9, 10, 11, 12, and 13 shall survive such termination. “Disability” for the
purposes of this Agreement shall (A) be determined by an independent physician selected by the Company and (B) mean Employee’s
physical or mental disability so as to render Employee substantially incapable, despite reasonable accommodations, of carrying
out Employee’s duties under this Agreement. In the event of termination pursuant to this Section 7.1, the Company shall not
be under any further obligation to Employee hereunder except to promptly pay Employee (i) salary and benefits accrued and unpaid
up to the date of termination, (ii) any earned but unpaid Bonus, if any, with respect to any completed fiscal year immediately
preceding the date of termination pursuant to Section 3.2 hereof, (iii) reimbursement for expenses accrued and payable under Section
5 hereof, and (iv) if the termination is due to Disability, (A) payment of Employee’s monthly Base Salary on the Company’s
regularly scheduled payrolls during each of the 3 months immediately following termination, but in no event shall any such amount
be paid later than two and one-half months after the last day of the year in which the corresponding amount of such payment if
not yet received has ceased to be subject to a substantial risk of forfeiture within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), and (B) payment or reimbursement of the premium for any COBRA
benefits Employee elects through Company for a period of six months from the date of termination.

 

    	3

    	 

    

 

7.2           Termination
By the Company Due to Cause. The Company shall have the right to discharge Employee and terminate this Agreement for Cause
(as hereinafter defined) during the Term by written notice to Employee and this Agreement shall be deemed terminated as of the
date of such notice, except that Sections 9, 10, 11, 12, and 13 shall survive such termination. For the purpose of this Agreement,
“Cause” shall mean, in the Company’s good faith belief:

 

(i)           The
committing of any criminal act under federal, state or local law, where such act would be a) a felony or b) a crime involving moral
turpitude which, in the reasonable judgment of the Company, has materially interfered or will materially interfere with the ability
of Employee to perform his duties hereunder, or has caused or will cause material harm to the Company or its business; provided
that, for purposes of this provision, a finding of guilt and/or plea of guilty/nolo contender (no contest) is sufficient but not
necessary.

 

(ii)           The
breach of any provision of this Agreement, including, but not limited to, by acting dishonestly or negligently regarding Employee’s
performance hereunder, and Employee’s failure to cure such breach within ten (10) business days of written notice from Company.

 

(iii)           The
failure to perform Employee’s duties under this Agreement (other than for reasons related to illness, injury or temporary
disability).

 

(iv)           The
material violation of any applicable local, state or federal law relating to discrimination or harassment.

 

(v)           The
material violation of Company’s policies and/or practices applicable to those at Employee’s level, including, but not
limited to, its employment policies and/or practices, including but not limited to non-discrimination, anti-harassment and non-retaliation
policies and practices.

 

(vi)           The
taking of any action, whether intentionally or not, or failure to act, where such action/inaction has the effect of materially
undermining or harming the Company, its management, its business, its reputation or its customers/clients/employees.

 

    	4

    	 

    

 

(vii)           The
failure to comply with any oral or written report or directive of the Company, which failure is not remedied within ten (10) business
days of written notice from Company regarding same.

 

Any act, or failure to act, based
upon the authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall
be conclusively presumed to be done, or permitted to be done, by Employee in good faith and in the best interest of the Company.
Termination of Employee’s employment shall not be deemed to be for Cause unless and until the Company delivers to Employee
a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the Board finding that the Employee
is guilty of the conduct described in any of (i)-(vii) above.

 

In the event of a termination
pursuant to this Section 7.2, the Company shall not be under any further obligation to Employee hereunder, except to promptly pay
Employee (a) salary and benefits accrued but unpaid up to the date of termination, (b) reimbursement for expenses accrued and payable
under Section 5 hereof, and (c) any other benefits required by applicable law (e.g. COBRA), if eligible.

 

7.3           Termination
By the Company Other Than Due to Death, Disability or Cause. This Agreement and the employment of Employee hereunder may be
terminated by the Company other than due to death, Disability or Cause by giving at least thirty (30) days prior written notice
to the Employee at any time during the Term and such termination shall be effective as of the date of termination stated in such
notice, except that Sections 9, 10, 11, 12, and 13 shall survive such termination. In the event of a termination pursuant to this
Section 7.3, the Company shall not be under any further obligation to Employee hereunder, except to promptly pay Employee (i) salary
and benefits accrued but unpaid up to the date of termination, (ii) any earned but unpaid Bonus, if any, with respect to any completed
fiscal year immediately preceding the date of termination pursuant to Section 3.2 hereof, (iii) reimbursement for expenses accrued
and payable under Section 5 hereof, and (iv) Severance Benefits (as defined below) pursuant to Section 7.4.

 

7.4           Severance
Benefits. For purposes of this Agreement, “Severance Benefits” shall mean (i) twelve (12) months of Employee’s
Base Salary payable on the sixtieth (60th) day following Employee's termination in one lump sum, and (ii) payment or
reimbursement to Employee of the premium for any COBRA benefits Employee elects through Company for a period of twelve months from
the date of termination.

 

7.5           Termination
by Employee. The Employee shall have the right to terminate Employee’s employment under this Agreement by giving thirty
(30) days prior written notice to the Company at any time, and such termination shall be effective as of the date of termination
stated in such notice, except that Sections 9, 10, 11, 12, and 13 shall survive such termination.

 

(a)           Termination
By Employee Other Than for Constructive Termination. In the event Employee terminates employment under this Section 7.5 for
other than Constructive Termination (as defined below), the Company shall not be under any further obligation to Employee hereunder,
except to promptly pay Employee (i) salary and benefits accrued but unpaid up to the date of termination, (ii) any earned but unpaid
Bonus, if any, with respect to any completed fiscal year immediately preceding the date of termination pursuant to Section 3.2
hereof, and (iii) reimbursement for expenses accrued and payable under Section 5 hereof.

 

    	5

    	 

    

 

(b)           Termination
by Employee for Constructive Termination. Notwithstanding anything in this Agreement to the contrary, a “Constructive
Termination” will be deemed to have occurred pursuant to this Section 7.5 if there should occur the following:

 

(i)           a material
adverse change in Employee’s position causing it to be of materially less authority, duties or responsibility without Employee’s
written consent, and such a materially adverse change shall in all events be deemed to occur if Employee no longer serves as Chief
Executive Officer, President and Chief Financial Officer of the Company or any parent company of Company unless Employee consents
in writing to such change, or if Richard P. Nespola is reinstated as the Chief Executive Officer and/or Chairman of the Board
of the Company;

 

(ii)           a material
reduction, without Employee’s written consent or except as expressly permitted in this Agreement, in Employee’s Base
Salary;

 

(iii)           a
relocation of Employee’s principal place of employment by more than 50 miles without Employee’s consent;

 

(iv)           a material
breach of any provision of this Agreement by Company.

 

Notwithstanding the above, in no
event shall a Constructive Termination exist unless (1) Employee provides a written notification to the Company sufficiently describing
the event or condition alleged to give rise to the Constructive Termination within 90 days of the initial existence of such event
or condition, (2) the Company is provided at least 30 days to remedy the event or condition, and (3) the Company fails to reasonably
cure the event or condition.

 

In the event Employee terminates
his employment due to a Constructive Termination, the Company shall not be under any further obligation to Employee hereunder,
except to promptly pay Employee (i) salary and benefits accrued but unpaid up to the date of termination, (ii) any earned but unpaid
Bonus, if any, with respect to any completed fiscal year immediately preceding the date of termination pursuant to Section 3.2
hereof, (iii) reimbursement for expenses accrued and payable under Section 5 hereof, and (iv) Severance Benefits pursuant to Section
7.4.

 

Upon termination due to a Change of Control
(as defined below) or Constructive Termination, for ninety (90) days following termination, Employee agrees to provide reasonable
cooperation to the Company at the Company’s expense in winding up Employee’s work for the Company and transferring
that work to other individuals as designated by the Company. Upon termination for any reason other than Death, Disability, Change
of Control or Constructive Termination, for thirty (30) days following termination, Employee agrees to provide reasonable cooperation
to the Company at the Company’s expense in winding up Employee’s work for the Company and transferring that work to
other individuals as designated by the Company. Employee also agrees reasonably to cooperate with the Company at Company’s
expenses in litigation as requested by the Company; provided that, such cooperation does not harm or conflict with Employee’s
interests in such litigation, if any, and Employee is provided reasonable notice so as not to interfere with Employee’s other
work or employment obligations.

 

    	6

    	 

    

 

To be eligible for any Severance Benefits
payments under this Section 7, Employee must (i) prior to the sixtieth (60th) day following the date of termination
have executed, delivered to the Company, and not revoked during any allowable revocation period permitted under applicable law
a final and complete release in a form that is acceptable and approved by the Company after good faith negotiation with Employee,
and (ii) in the Company’s good faith belief, be in full compliance with the provisions of Sections 9 and 11 hereof at the
time of any such payment.

 

7.6           Notice
of Non-Renewal by Company.

 

(a)           In the
event the Company provides Employee with Notice of Non-Renewal and Employee’s employment with the Company terminates for
any reason within ninety (90) days thereafter (either voluntarily or involuntarily), then the Company shall provide Employee with
Severance Benefits upon termination of Employee’s employment with the Company.

 

(b)           In the
event the Company provides Employee with Notice of Non-Renewal, then for a period of fifteen (15) days after the Notice of Non-Renewal,
Company agrees to buy from Employee any shares of Company stock fully owned by Employee at the time of Notice of Non-Renewal (the
“Employee Stock Put Right”), provided that: (i) at the time Employee has not been charged with any criminal or regulatory
violation; and (ii) such purchase does not violate any then-applicable law, regulation or court order, or cause the Company to
be in breach of any term, covenant, or agreement with any bank, vendor or other commercial partner. Employee’s notice of
intent to exercise the Employee Stock Put Right and the number of shares put to the Company for purchase shall be in writing and
delivered to either the Chairman or Secretary of the Company via electronic mail, certified mail or national parcel delivery service.
The price per share at which the Company will purchase any shares of Company stock under the Employee Stock Put Right shall be
the closing price of the Company’s stock on the trading day immediately preceding the earlier of: (i) the date of the Notice
of Non-Renewal; or (ii) any public announcement by the Company of its intent to not renew this Agreement or terminate Employee’s
employment. The parties shall use all reasonable efforts to finalize the purchase of the shares under the Employee Stock Put Right
within thirty (30) days of Employee’s notice of election of such right. The Employee Stock Put Right shall not apply to (i) any
shares issued pursuant to the exercise of any stock options or (ii) shares of unvested restricted stock outstanding at the time
of the Notice of Non-Renewal.

 

    	7

    	 

    

 

8.           CHANGE IN
CONTROL BENEFITS. Should there occur a Change in Control (as defined below), the following provisions shall become applicable:

 

8.1           During
the period (if any) following a Change in Control that Employee shall continue to provide services under this Agreement, then the
terms and provisions of this Agreement shall continue in full force and effect.

 

8.2           Notwithstanding
any other provision of Section 7, in the event of (a) a termination by the Company pursuant to Section 7.3 at any time within twelve
(12) months after a Change in Control, or (b) a Constructive Termination pursuant to Section 7.5 at any time within twelve (12)
months after a Change in Control, the Company shall promptly pay Employee (i) salary and benefits accrued but unpaid up to the
date of such event, (ii) any earned but unpaid Bonus, if any, with respect to any completed fiscal year immediately preceding the
date of termination pursuant to Section 3.2 hereof; (iii) reimbursement for expenses accrued and payable under Section 5 hereof,
and (iv) Severance Benefits pursuant to Section 7.4.

 

8.3           For
purposes of this Section 8, a “Change of Control” shall be deemed to occur upon the earlier to occur of an event
described below, the Company entering a definitive agreement to accomplish a transaction or event as described below, or a vote
of the directors of the Company approving a definitive agreement for such a transaction or event as described below:

 

(a)           the
sale, lease, conveyance or other disposition of at least fifty percent (50%) of the Company’s assets as an entirety or substantially
as an entirety to any person, entity or group of persons acting in concert other than in the ordinary course of business;

 

(b)           any
transaction or series of related transactions (as a result of a tender offer, merger, consolidation or otherwise) that results
in any Person (as defined in Section 13(h)(8)(E) under the Securities Exchange Act of 1934) becoming the beneficial owner (as defined
in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of more than 50% of the aggregate voting power
of all classes of common equity of the Company, except if such Person is (i) a subsidiary of the Company, (ii) an employee stock
ownership plan for employees of the Company or (iii) a company formed to hold the Company’s common equity securities, provided
that, at the time such company became such holding company, substantially all the stockholders of the Company comprise such holding
company’s stockholders and hold at least a majority of the voting power of such holding company;

 

(c)           a merger
(in which the Company is not the surviving operating entity), consolidation, liquidation or dissolution of Company or winding up
of the business of the Company.

 

    	8

    	 

    

 

9.           RESTRICTIONS.

 

9.1           Non-Disclosure.
During and after the Term, Employee agrees to use best efforts and exercise utmost diligence to protect and to safeguard the trade
secrets and/or any confidential or proprietary information concerning the Company or its business or any Affiliates of the Company
(including, without limitation, trade secrets, plans, processes, customer lists, contracts and compilations of information, records
and specifications) which comes to Employee in the course of Employee’s employment and which is not (independent of disclosure
by Employee) public knowledge or general knowledge in the trade. Employee agrees not to disclose any of the Company’s or
any Affiliate’s trade secrets and/or confidential information and/or proprietary information except as required in the course
of Employee’s employment with the Company or by legal process, in which case, Employee agrees to provide the Company with
as much notice as is reasonably practicable in the event the Company wishes to intervene to protect its rights. Employee agrees
not to use Company’s or any Affiliate’s trade secrets and/or confidential information and /or proprietary information,
directly or indirectly, for Employee’s own benefit or for the benefit of another. All files, records, documents, drawings,
specifications, memoranda, notes, or other documents relating to the business of the Company or any Affiliate, whether prepared
by Employee or otherwise coming into Employee’s possession, shall be the exclusive property of the Company and shall be delivered
to the Company and not reproduced and/or retained by Employee upon termination of Employee’s employment for any reason whatsoever
or at any other time upon request of the Company.

 

9.2           Non-solicitation.
During the period of Employee's employment, and for a period of one (1) year following the date of termination of Employee’s
employment, the Employee shall not directly or indirectly, for himself or for any third party, except as otherwise agreed to in
writing by the Company:

 

(a)           Contact,
solicit, advise, consult or do business with any Customer (as hereinafter defined) with which Employee has had direct contact during,
and arising from, his employment by the Company, for the purpose of causing such Customer to purchase, or otherwise obtain products
or services which are similar to or in any way compete with the products or services sold or provided by the Company or an Affiliate,
or

 

(b)           Induce,
or attempt to induce, any Customer with which Employee has had direct contact during the term of, and arising from, his employment
by the Company, to cancel, diminish, decrease or curtail any business relationship, contractual or otherwise, with the Company
or an Affiliate, or

 

(c)           Contact,
solicit, induce or attempt to induce or influence any employee, independent contractor or agent of any Customer or Company or Affiliate
to terminate his or her employment, engagement or contractual relationship with such Customer or Company or Affiliate, or

 

(d)           Employ
or hire any person who is employed by the Company or Affiliate (whether as an employee or an independent contractor) with any business
or other entity that is engaged in the industry in which Company or Affiliate is involved.

 

    	9

    	 

    

 

9.3           Covenants
Against Competition. During the period of Employee's employment, and for a period of one (1) year following the date of Employee’s
termination of employment, the Employee shall not within the Restricted Area (as hereinafter defined), directly or indirectly as
an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director or through any other kind
of ownership (other than ownership of securities of publicly held corporations of which Employee owns less than five (5%) percent
of any class of securities) or in any other representative or individual capacity:

 

(a)           Assist
or have an interest (whether or not such interest is active), in any person, firm, partnership, association, corporation or business
organization, entity or enterprise that is or is about to become directly or indirectly engaged in, any business or activity (whether
such enterprise is in operation or in the planning or development stage) that provides, sells, distributes or markets any products
or services that compete in any manner with the business conducted by Company or an Affiliate.

 

(b)           Enter
into the employment of or act as an independent contractor or agent for or advisor or consultant to, any person, firm, partnership,
association, corporation or business organization, entity or enterprise that is or is about to become directly or indirectly engaged
in, any business or activity (whether such enterprise is in operation or in the planning or development stage) that provides, sells,
distributes or markets any products or services that compete in any manner with the business conducted by Company or an Affiliate.

 

Notwithstanding any other provisions
herein, in the event of a Constructive Termination pursuant to Section 7.5 at any time within twelve (12) months following a Change
in Control, this Section 9.3 shall not apply.

 

9.4           Definitions.

 

“Affiliate”
shall mean any corporation, partnership, limited liability company, joint venture, or other entity or organization directly or
indirectly controlling or controlled by or under direct or indirect common control with such other entity through the ownership
of all or part of such entity.

 

“Customer”
shall mean any individual, corporation, partnership, joint venture or other entity, or successors thereof, which has either (i)
purchased or contracted for services or products by or through the Company at any time within one (1) year prior to the termination
of Employee’s employment with the Company, or (ii) has been directly solicited by the Company within six (6) months prior
to the termination of Employee’s employment with the Company, regardless of whether the Employee shall have direct contact
with such individual, corporation, partnership, joint venture or entity.

 

    	10

    	 

    

 

“Restricted
Area” shall mean collectively the United States of America.

 

“Restrictions”
shall mean the terms and covenants of Sections 9.1, 9.2 and 9.3, collectively.

 

9.5           Enforceability
of Agreement.

 

(a)           Reasonableness
of Restrictions. Employee has carefully read and considered the Restrictions and, having done so, agrees that the Restrictions
(including, but not limited to, the time period of restriction and the geographical areas of restriction set forth herein) are
fair and reasonable and are reasonably required for the protection of the interests of Company, its owners, officers, directors
and other employees. Employee has had the opportunity to consult with an attorney prior to the execution of this Agreement, and
freely executes this Agreement either (i) following such consultation and with the advice of his attorney, or (ii) after freely
waiving such right to consult with an attorney prior to the execution of this Agreement.

 

(b)           Severability.
In the event that, notwithstanding the foregoing, any part of the Restrictions shall be held to be invalid or unenforceable, the
remaining parts thereof shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had
not been included therein. Notwithstanding the foregoing, it is the intent and agreement of Company and Employee that the Restrictions
shall be given the maximum force, effect and application permissible under law.

 

(c)           Time
Period. In the event that a Court of competent jurisdiction shall determine by final judgment that the scope or time period
of any of the Restrictions is too broad to be capable of enforcement, such court is authorized to modify such covenants and to
enforce them to the full scope and extent and for the full time period that the Court deems just and equitable.

 

(d)           Passive
Interest. The Restrictions shall not be construed to limit in any manner Employee's right to maintain a passive ownership interest
of less than five (5%) percent of any class of outstanding securities in any entity, the securities of which are traded on a national
exchange, which may compete with Company, so long as Employee shall not have the right or power to elect a member of the Board
of Directors of such entity or to otherwise control the actions of such entity.

 

10.           REMEDIES.

 

10.1           Remedies
Cumulative. Nothing herein contained is intended to waive or diminish any rights the Company, any Affiliate or Employee may
have at law or in equity at any time to protect and defend its legitimate property interests including its business relationship
with third parties, the foregoing provisions being intended to be in addition to and not in derogation or limitation of any other
rights the Company, an Affiliate or Employee may have at law or in equity.

 

    	11

    	 

    

 

10.2           Injunctive
Relief. Employee hereby acknowledges and agrees that Company would be irreparably injured, the value of the business of Company
would be irreparably damaged and Company could not adequately be compensated by monetary damages, if Employee were to violate the
Restrictions. Employee covenants and agrees that, if Employee shall violate any of the Restrictions, Company specifically shall
be entitled to injunctive and other equitable relief to enjoin Employee's violations of such Restrictions. The prevailing party
in any such injunctive action shall be entitled to reimbursement from the other party for all actual attorney fees expended in
such action.

 

10.3           Notice
of Violation. In the event Company believes that Employee is violating any of the Restrictions, Company shall so notify Employee
in writing, which notice shall describe with as much specificity as possible, the nature of the alleged violation. Provided that
Employee is in violation of the Restrictions, if the Employee does not, within fourteen (14) days following receipt of said notice,
cease the conduct, terminate the relationship or otherwise cure such violation, the Company shall have no further obligation to
make payments to Employee pursuant to the terms of this Agreement following the date of receipt of such notice.

 

10.4           Accounting
For Profits. Employee hereby covenants and agrees that, if Employee shall violate any of the Restrictions, Company shall be
entitled to an accounting and repayment of all profits, compensation, commissions, remunerations or benefits which Employee directly
or indirectly has realized and/or may realize as a result of, growing out of or in connection with any such violation.

 

11.           EMPLOYEE
FOR HIRE. In addition to Employee’s services, the Company shall own forever and throughout the world (exclusively during
the current and renewed or extended term of copyright anywhere in the world and thereafter, non-exclusively) all rights of any
kind or nature now or hereafter known in and to all of the products of Employee’s services performed while an employee in
any capacity and any and all parts thereof, including, without limitation, copyright, patent and all other property or proprietary
rights in or to any ideas, concepts, designs, drawings, plans, prototypes or any other similar creative works and to the product
of any or all of such services under this Agreement (collectively, “Inventions”). Employee hereby acknowledges
and agrees that for copyright purposes, Employee is performing services as the Company’s employee-for-hire; provided, however,
that for purposes of this Agreement, “Inventions” shall not include those that do not relate to the Company’s
or an Affiliate’s current business or research and development and were developed without use of any Company or Affiliate
trade secret information or Company or Affiliate’s facilities or equipment. Without limiting the generality of the previous
two sentences, Employee acknowledges and agrees that all memoranda, notes, records and other documents made or compiled by Employee
or made available to Employee while an employee concerning the Company or an Affiliate’s business shall be the Company’s
property and shall be delivered by Employee to the Company upon termination of this Agreement or at any other time at the Company’s
request. In addition, the Employee hereby agrees to assign to Company in writing (and take any and all other actions as shall be
reasonably requested by Company in order to carry out the intent of this Section) any and all rights, title or interest of Employee
in any such copyrights, patents, property or proprietary rights relating to such Inventions.

 

    	12

    	 

    

 

12.           [INTENTIONALLY
DELETED].

 

13.           MISCELLANEOUS.

 

13.1           Assignability.
This Agreement, including but not limited to paragraphs 9 and 11, shall be binding upon and inure to the benefit of the Company,
its respective successors, heirs, and assigns. Except as expressly set forth herein, this Agreement may not be assigned by Employee
without the express written consent of the Company.

 

13.2           Invalid
Provisions. If any provision of this Agreement is held to be illegal, invalid, or unenforceable, then such provision shall
be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision
had never comprised a part hereof; and the remaining provisions hereof shall remain in full force and effect and shall not be affected
by the illegal, invalid, or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid,
or unenforceable provision, there shall be added automatically as a part of this Agreement a provision as similar in terms to such
illegal, invalid, or unenforceable provision as may be possible and still be legal, valid, or enforceable.

 

13.3           Notices.
Any notices pertaining to this Agreement shall be addressed to the parties at their addresses stated on the first page hereof.
All notices shall be in writing and shall be deemed duly given if personally delivered or sent by registered, certified, overnight
or express mail. If sent by registered or certified mail, notice shall be deemed to have been received and effective three days
after mailing; if by overnight or express mail, notice shall be deemed received the next business day after being sent. Any party
may change its address for notice hereunder by giving notice of such change in the manner provided herein.

 

13.4           Construction
of Agreement. This Agreement contains the entire agreement of the parties respecting the subject matter contained herein. No
terms, conditions or warranties other than those contained herein, and no amendments or modification of any provision hereof shall
be effective except by a written agreement signed by all of the parties hereto. This Agreement shall not be strictly construed
against either party.

 

13.5           Waiver.
The waiver by either party hereto of a breach of any term or provision of this Agreement shall not operate or be construed as a
waiver of a subsequent breach of the same provision by any party or of the breach of any other term or provision of this Agreement.

 

13.6           Titles.
Titles of the paragraphs herein are used solely for convenience and shall not be used for interpretation or construing any work,
clause, paragraph, or provision of this Agreement.

 

13.7           Arbitration.

 

(a)           It is
understood and agreed between the parties hereto that, except with respect to claims for workers’ compensation or unemployment
compensation benefits, any and all claims, grievances, demands, controversies, causes of action or disputes of any nature whatsoever
(including but not limited to tort and contract claims, and claims upon any law, statute, order, or regulation) (hereinafter “Claims”),
arising out of, in connection with, or in relation to (i) this Agreement, (ii) questions of arbitrability under this Agreement,
or (iii) any relationship between Employee and the Company before, at the time of entering, during the term of, upon or after expiration
or termination of this Agreement, shall be resolved by final, binding, non-judicial arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association (“AAA”), which rules are incorporated herein by reference.
Such dispute resolution process shall be confidential and shall be conducted in accordance with the Kansas Rules of Evidence.

 

    	13

    	 

    

 

(b)           Notwithstanding
any contrary provision that may be contained in the applicable AAA rules, the parties hereby agree that discovery shall be permitted
in connection with any arbitration pursuant to this Agreement, in accordance with the provisions of the Kansas Code of Civil Procedure.
Neither party nor the arbitrator shall disclose the existence, content, or results of any arbitration hereunder without the prior
written consent of all parties. Except as provided herein, the Federal Arbitration Act shall govern the interpretation, enforcement
and all proceedings pursuant to this Section 13.7. The Arbitrator shall apply the substantive law (and the law of remedies, if
applicable) of the State of Kansas, or federal law, or both, as applicable. The arbitrator is without jurisdiction to apply any
different substantive law. The arbitrator shall have the authority to entertain a motion to dismiss and/or a motion for summary
judgment by any party and shall apply the standards governing such motions under Kansas law. The arbitrator shall render an award
and a written, reasoned opinion in support thereof. Such award may include attorneys’ fees and costs to the prevailing party.
Judgment upon the award may be entered in any court having jurisdiction thereof.

 

(c)           Adherence
to this dispute resolution process shall not limit the Company’s right to obtain any provisional remedy, including but without
limitation, injunctive or similar relief, from any court of competent jurisdiction in the event of a breach of Section 9 of this
Agreement. This dispute resolution process shall survive the termination of Employee’s employment.

 

(d)           By signing
this Agreement, both Employee and the Company are giving up their respective right to a jury trial.

 

13.8           Personal
Computer. During the Term, the Company shall provide Employee, at Company expense, with a portable personal computer (the “Laptop”)
with such capabilities and capacity, and including all necessary software, as shall be reasonably necessary to discharge Employee’s
duties under this Agreement. Upon termination of Employee’s employment, the Employee shall promptly deliver to the Company
any and all tangible property of the Company, including without limitation the Laptop and any software related thereto and the
contents of any files stored therein.

 

    	14

    	 

    

 

13.9           Section
409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed
and administered in accordance with Section 409A of the Code. Notwithstanding any other provision of this Agreement, payments provided
under this Agreement may only be made upon an event and in a manner that complies with Section 409A of the Code or an applicable
exemption. Any payments under this Agreement that may be excluded from Section 409A of the Code either as separation pay due to
an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A of the Code to the maximum
extent possible. For purposes of Section 409A of the Code, each installment payment provided under this Agreement shall be treated
as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a
"separation from service" under Section 409A of the Code.

 

Notwithstanding
any other provision of this Agreement, if any payment or benefit provided to the Employee in connection with his termination of
employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the
Code and the Employee is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i) of the Code,
then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the
date of termination (the "Specified Employee Payment Date"). The aggregate of any payments that would otherwise
have been paid before the Specified Employee Payment Date shall be paid to the Employee in a lump sum on the Specified Employee
Payment Date and thereafer, any remaining payments shall be paid without delay in accordance with their original schedule.

 

IN WITNESS
WHEREOF, the parties have caused this Agreement to be executed as of the date first set forth above.

 

	 	THE COMPANY:	 
	 	 	 
	 	CARTESIAN, INC., 	 
	 	a Delaware corporation	 
	 	 	 
	 	 	 
	 	By: 	/s/ Peter Woodward	 
	 	 	 
	 	Printed Name: PETER WOODWARD	 
	 	 	 
	 	Title: CHAIRMAN	 
	 	 	 
	 	 	 
	 	 	 
	 	EMPLOYEE:	 
	 	 	 
	 	/s/ Donald E. Klumb 	 
	 	DONALD E. KLUMB	 

 

 

 

    	15

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