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SECURITIES AND EXCHANGE COMMISSION</font></font></div>
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8-K</font></font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">CURRENT
REPORT</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Pursuant
to Section 13 or 15(d) of the</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Securities Exchange Act Of
1934</font></font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Date of Report (Date of earliest
event reported): June 24, 2009 (June 16, 2009)</font></font></div>
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      Inc. </font></font>

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      Name of Registrant as Specified in its Charter)</font></div>
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      Employer</font></div>
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                  <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">1750
      Tysons&#160;Boulevard</font></font></div>
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      of principal executive offices) (Zip
Code)</font></div>
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Telephone Number, Including Area Code:&#160;&#160; <font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">(703)
637-9752</font></font></div>
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      Name or Former Address, if Changed Since Last
  Report)</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (<font style="FONT-STYLE: italic; DISPLAY: inline">See</font> General
Instruction A.2. below):</font></div>
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communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></div>
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communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8414;</font> Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Item
1.01&#160;&#160;&#160;&#160;&#160;Entry into a Material Definitive
Agreement</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
information set forth under Item 5.02 below is incorporated herein by
reference.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Item
5.02&#160;&#160;&#160;&#160;&#160;Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On June
16, 2009, effective as of January 1, 2009, Braintech, Inc. (the &#8220;Company&#8221;) and
Frederick W. Weidinger, the Company&#8217;s Chairman, President &amp; CEO
(&#8220;Weidinger&#8221;) entered into a new Employment and Retention Agreement (the
&#8220;Agreement&#8221;).</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">While the
Agreement provides for an increase in Weidinger&#8217;s salary, (i) the increase is
payable in stock until the Company&#8217;s cash flow improves; (ii) separately from
the Agreement, Weidinger has voluntarily agreed to take a temporary twenty
percent (20%) salary reduction (from the original salary prior to the increase),
and (iii) separately from the Agreement, if the Company&#8217;s cash position has not
improved by the fourth quarter of 2009 he will agree to take a further temporary
reduction in salary to a salary of $1 and he will agree to forego submitting
business expenses to the Company for reimbursement and to pay for those expenses
personally; all as described more specifically below.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Agreement provides for an initial annual salary of $318,000 (&#8220;Base Salary&#8221;),
which shall be increased by ten percent (10%) each year on January 1, 2010, 2011
and 2012, and on each January 1 thereafter, the Base Salary shall be increased
based on performance at the discretion of the Board of Directors
(&#8220;Board&#8221;).&#160;&#160;The $60,000 increase over his previous annual salary of
$258,000 shall be paid in stock rather than cash at the rate of $5,000 per month
based on the average price of the Company&#8217;s stock during the applicable month
until the Company determines it has the ability to pay the increase in cash or
reaches cash flow break even, whichever comes first.&#160;&#160;The Agreement is
for an indefinite term, and continues until terminated in accordance with its
provisions.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Further,
although Weidinger has voluntarily agreed to postpone the following items, the
Agreement provides that Weidinger&#8217;s earned and deferred cash bonuses totaling
$90,300 for 2007 and 2008 shall be accrued on the books of the Company until
paid (with interest accruing at 5%) or at the option of the executive may be
converted to common stock at the average price of the common stock during the
month of conversion.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Separately
from the Agreement, in addition to postponing his salary increase and prior
years&#8217; cash bonuses as described above, Weidinger has voluntarily agreed to take
a temporary twenty percent (20%) salary reduction (from the original $258,000
salary prior to the increase), and further, if the Company&#8217;s cash position has
not improved by the fourth quarter of 2009, he will agree to take a further
temporary reduction in salary to a salary of $1, and he will agree to forego
submitting business expenses to the Company for reimbursement and to pay for
those expenses personally.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Agreement provides that Weidinger is eligible to earn 13,000,000 shares of the
Company&#8217;s common stock (&#8220;Bonus Stock&#8221;) under the 2007 Bonus Stock and Bonus
Stock Option Plan on the achievement of certain milestones as
follows:&#160;&#160;5,000,000 shares upon the successful refinance, roll-over,
extension or restructure of the Company&#8217;s loan facility or a new facility with
any party; 3,000,000 shares upon the attainment of $2,500,000 in revenue for any
12-month rolling period beginning in 2009; 2,500,000 shares upon the attainment
of $4,500,000 in revenue for any 12-month rolling period beginning in 2010; and
2,500,000 shares upon the attainment of $7,000,000 in revenue for any 12-month
rolling period beginning in 2011.&#160;&#160;Notwithstanding the foregoing
milestones, all of such shares will immediately vest if any third party or
parties invest at least $2,000,000 in the Company in exchange for equity or any
instrument convertible into equity, including a debt instrument that has equity
warrants or options attached.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Agreement provides that Weidinger is eligible to earn an annual cash bonus on
January 1, 2010 based on 2009 performance in the Board&#8217;s discretion, the target
amount of which shall be up to 35% of his then-current Base Salary, and an
annual cash bonus of January 1 of each year thereafter based on the previous
year&#8217;s performance in the Board&#8217;s discretion, the target amount of which shall
be up to 50% of his then-current Base Salary.</font></div>
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Agreement provides for the ability of the Company or Weidinger to terminate
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Company terminates his employment without Good Cause (as defined in the
Agreement) or Weidinger terminates such employment with Good Reason (as defined
in the Agreement), or his employment is terminated because of permanent
incapacity or death, he will be entitled to (i) all unpaid compensation, leave
and benefits, allowances and perquisites up to the termination date, (ii) a lump
sum payment equal to two times the highest Base Salary during his employment
with the Company, (iii) continuation of all employee benefits and executive
family benefits under the Agreement for two years after the termination
date.&#160;&#160;In addition, all Bonus Stock will immediately vest, and all
Bonus Stock Options will immediately vest and may be exercised within 36 months
of the termination date.</font></div>
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Weidinger&#8217;s employment is terminated by the Company with Good Cause or by
Weidinger without Good Reason, (i) he will be entitled to all unpaid
compensation and benefits, stock and options earned (where the required
milestones have been achieved as of the termination date) up to the termination
date, (ii) all Bonus Stock Options granted as of the date of termination will
immediately vest and may be exercised within 24 months, and (iii) he shall not
be entitled to any further cash Bonus under paragraph 8 of the
Agreement.</font></div>
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description of the terms of the Employment Agreement set forth herein is
qualified in its entirety to the full text of the Employment Agreement, which is
filed as an exhibit hereto.</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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Exhibits.</font></font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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Exhibits</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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and Retention Agreement, effective as of January 1, 2009, by and between
Braintech, Inc. and Frederick W. Weidinger.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 18pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      </font></td>
            <td valign="middle" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td align="left" valign="top" width="34%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td align="left" valign="top" width="36%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td align="left" valign="top" width="3%">
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              <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">/s/
      Frederick W. Weidinger</font></div>
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          <tr>
            <td valign="middle" width="5%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td valign="middle" width="36%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td valign="middle" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td align="left" valign="top" width="34%">
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            <td valign="middle" width="5%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td valign="middle" width="36%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td valign="middle" width="3%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td align="left" valign="top" width="34%">
              <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Chief
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</font></div>
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        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
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</font></div>
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10.1.&#160;&#160;&#160;Employment and Retention Agreement, effective as of
January 1, 2009, by and between Braintech, Inc. and Frederick W.
Weidinger</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
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              <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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Agreement</font></div>
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AGREEMENT dated as of January 1, 2009 (&#8220;Effective Date&#8221;).</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">BETWEEN:</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Frederick
W. Weidinger</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">558
Innsbruck Avenue</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Great
Falls, VA&#160;&#160;22066</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 125.1pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(
"EXECUTIVE")</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">AND:</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">BRAINTECH,
INC.</font></div>
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          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td>
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            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
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              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A.&#160;&#160;</font></div>
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      NASDQ Over-The-Counter Bulletin
Board;</font></div>
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          </tr>
      </table>
    </div>
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      business objectives for BRAINTECH include: Increasing its corporate
      development capabilities and growing and diversifying its existing
      customer base and market coverage especially in the development and growth
      of revenue for Braintech Government &amp; Defense Systems Inc., a
      wholly-owned subsidiary of BRAINTECH (&#8220;Braintech GDS&#8221;) and in industrial
      markets through another wholly-owned subsidiary of BRAINTECH (&#8220;Braintech
      Industrial&#8221;) as well as continuing the development of advanced vision
      software and selling related engineering
  services.</font></div>
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      services of EXECUTIVE at its principal office at 1750 Tyson&#8217;s Boulevard,
      Suite 350, McLean, Virginia 22102 (&#8220;Office&#8221;) as Chief Executive Officer
      and Chairman of the Board BRAINTECH, Inc. and its subsidiaries, on the
      terms and conditions set forth in this Agreement which replaces and
      supersedes the Employment Agreement dated October 22,
  2007.</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">IN
CONSIDERATION of the mutual promises contained herein, the parties agree as
follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">EMPLOYMENT</font>:&#160;&#160;BRAINTECH
      hereby employs EXECUTIVE to perform the duties and render the services
      customarily required for the position hereinafter set forth, and EXECUTIVE
      hereby accepts said employment and agrees faithfully to perform said
      duties and render said services, subject to the terms and conditions of
      this Agreement. With the Board of Director&#8217;s approval, the EXECUTIVE may
      serve in the capacity of director of other corporations or charities
      provided that activity does not materially interfere with EXECUTIVE&#8217;s
      ability to perform his duties hereunder and that any such entities do not
      compete with BRAINTECH&#8217;s business.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">TERM</font>:&#160;&#160;The
      EXECUTIVE&#8217;s full time employment with BRAINTECH is for an indefinite term
      and will continue until terminated in accordance with Paragraph 12 of this
      Agreement.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">REPORTING</font>: The
      EXECUTIVE shall report to the Board of
  Directors.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">DUTIES:</font>&#160;&#160;The
      EXECUTIVE agrees to perform such duties as normally required for the
      position he holds and shall be familiar with and carry out the policies,
      procedures and projects as assigned by the Board of Directors,
      including.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 84px">
              <div>&#160;</div>
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;</font></div>
            </td>
            <td width="897">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Overseeing
      and directing all business activities of
  BRAINTECH;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 63pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Managing
      and directing the employees of the
BRAINTECH;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 63pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Developing
      strategic business plans for
BRAINTECH;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 63pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(d)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Providing
      leadership and direction for
BRAINTECH;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 63pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(e)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">As
      Chairman preside over Board of Directors and such other duties as are
      customary for the Chairman of the Board of Directors of a public
      Company;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 63pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(f)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;Overseeing
      the BRAINTECH&#8217;s relationships with the Company&#8217;s customers, suppliers,
      strategic partners and other organizations important to the strategic
      business objectives of the Company
and;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 63pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(g)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Overseeing
      BRAINTECH&#8217;s efforts for raising capital required to advance the strategic
      objectives of the Company.</font></div>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">BASE
      SALARY</font>:&#160;&#160;In order to induce EXECUTIVE to sign a new
      Agreement with BRAINTECH and in consideration of EXECUTIVE&#8217;s value in the
      marketplace, BRAINTECH shall pay the EXECUTIVE, in consideration for the
      services an annual base salary of $318,000 which shall be increased by ten
      percent (10%) on January 1, 2010, and such adjusted salary shall be
      further increased by ten percent (10%) on each of January 1, 2011 and
      January 1, 2012.&#160;&#160;On January 1, 2013 and each January 1
      thereafter, EXECUTIVE&#8217;s salary shall be increased based on performance at
      the Board of Directors discretion (EXECUTIVE&#8217;s salary, as increased from
      time to time pursuant to the foregoing provisions, is hereinafter referred
      to as the &#8220;Base Salary&#8221;).&#160;&#160;The Base Salary plus 10% shall be
      paid on a current, pro-rated basis at least twice each month beginning on
      the Effective Date except that the increase of $60,000 of the Base Salary
      and any further increases shall be paid in stock on a monthly basis at the
      rate of $5,000 per month based on the average price of the stock during
      the month purchased until the Company determines it has the ability to pay
      the increase in cash or reaches cash flow break even, whichever comes
      first.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">ACCRUED AND DEFERRED
      CASH BONUSES FOR 2007 AND 2008</font>:&#160;&#160;The Executive has earned
      and deferred receipt of Cash Bonus in the amount of $90,300 for 2007 and
      2008 which shall be accrued on the books of the Company until paid (with
      interest accruing at 5%) or at the option of the Executive converted to
      common stock at the average price of the common stock during the month
      such accrued bonuses and interest are converted to
  stock.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">CASH BONUS SECURITIES
      COMPENSATION</font>:&#160;&#160;The EXECUTIVE shall be entitled to annual
      cash bonuses in the amount of 35% of Base Salary, based on operating
      performance of the Company and&#160;&#160;Securities Compensation based on
      achieving certain milestones for 2009, which bonuses based on Securities
      Compensation will be provided in the form of five million (5,000,000)
      issued shares of restricted Common Stock, a second tranche of three
      million (3,000,000) issued shares of restricted Common Stock based on
      achieving milestones in 2010, and a third tranche two and one half million
      (2,500,000) issued shares of restricted Common Stock based on achieving
      milestones in 2011, and a fourth tranche of two and one half million
      shares (2,500,000) issued shares of restricted Common Stock based upon
      achieving Milestone number 4 (collectively, all four such tranches are
      hereinafter referred to as the &#8220;Bonus Stock&#8221;) of BRAINTECH at a purchase
      price of US$0.01 per share (and such cost paid for by company), in
      accordance with the Bonus Stock and Bonus Stock Option Incentive Plan (the
      &#8220;Bonus Plan&#8221;)&#160;&#160;approved by the Board of Directors on October 22,
      2007 and attached as Schedule 1.&#160;&#160;The vesting of the Bonus Stock
      is subject to the milestones and levels of incentive compensation set
      forth in the EXECUTIVE Bonus Securities Compensation Structure as set
      forth in Appendix I of this
Agreement.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">BONUS CASH
      INCENTIVE</font>:&#160;&#160;The EXECUTIVE is eligible to earn an annual
      cash bonus each calendar year during the term of this Agreement (the
      "Bonus").&#160;&#160;On January 1, 2010, BRAINTECH shall pay EXECUTIVE an
      annual Bonus based upon performance for 2009 in the Board of Directors&#8217;
      discretion, the target amount for which shall be up to 35% of EXECUTIVE&#8217;s
      then-current Base Salary.&#160;&#160;On January 1, 2011 and on JANUARY 1
      of each year thereafter, BRAINTECH shall pay EXECUTIVE an annual Bonus
      based upon performance for the previous calender year in the Board of
      Director&#8217;s discretion, the target amount for which shall be up to 50% of
      EXECUTIVE&#8217;s then-current Base Salary.&#160;&#160;BRAINTECH has implemented
      a company-wide employee incentive plan (&#8220;Incentive Plan&#8221;), and EXECUTIVE&#8217;s
      participation in the Incentive Plan shall be pursuant to the provisions of
      this Paragraph 8, and the Incentive Plan shall not interpreted as
      providing additional compensation to EXECUTIVE beyond the compensation to
      be provided pursuant to this Paragraph
8.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">9.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">BENEFITS</font>:&#160;&#160;The
      EXECUTIVE shall be entitled to the following
  benefits:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Leave</font>.&#160;&#160;Thirty
      (30) work days (i.e., six (6) weeks) of paid leave per
      year.&#160;&#160;This leave may be used as vacation, personal leave or
      sick leave.&#160;&#160;The thirty (30) days of leave is vested immediately
      upon the Effective Date and each anniversary thereafter and may be carried
      over from year to year without limit.&#160;&#160;Upon EXECUTIVE&#8217;s
      termination, any unpaid leave days shall be converted to cash at
      EXECUTIVE&#8217;s highest BASE Salary during his employment with BRAINTECH and
      paid to EXECUTIVE in a lump sum on the date of his termination of
      employment (&#8220;Termination Date&#8221;);</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Holidays</font>.&#160;&#160;Ten
      (10) paid holidays, which correspond with the US Federal Government
      Holidays;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Medical/Dental/Vision/Group
      Life and Disability
Insurance</font>.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">i.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">BRAINTECH
      shall provide to the EXECUTIVE a comprehensive family health insurance
      policy including medical, dental, vision, life and long term disability
      plans;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(d)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Such
      other benefits as may be offered to other employees or executives of
      BRAINTECH.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">EXPENSE
      REIMBURSEMENT</font>: EXECUTIVE shall be entitled to reimbursement for all
      reasonable expenses, including travel and entertainment, incurred by
      EXECUTIVE in the performance of EXECUTIVE's duties.&#160;&#160;EXECUTIVE
      will maintain records and written receipt as required by BRAINTECH policy
      and reasonably requested by the accounting manager to substantiate such
      expenses.&#160;&#160;All such expenses are to be reimbursed within twenty
      (20) business days after submission.&#160;&#160;BRAINTECH will also
      provide EXECUTIVE with a company credit
card.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">11.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">OTHER
      EXPENSES/BENEFITS:</font>&#160;&#160;The EXECUTIVE shall be entitled to
      reimbursement of following
expenses:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Cell Phone/Data
      Services/Laptop.</font>&#160;&#160;BRAINTECH shall provide the EXECUTIVE
      with a Blackberry or other cell phone / data device of EXECUTIVE&#8217;s choice
      and BRAINTECH shall pay the charges related to the purchase of such device
      and its use.&#160;&#160;BRAINTECH shall also provide EXECUTIVE with a
      laptop computer and other reasonable equipment consistent with his
      roles.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Professional Meetings
      and Professional Organizations&#8217; Dues</font>. The EXECUTIVE shall be
      entitled to attend and participate in appropriate professional meetings at
      the local, state, and national levels with the reasonable expenses for
      such attendance to be borne by BRAINTECH.&#160;&#160;BRAINTECH shall also
      pay EXECUTIVE&#8217;s professional membership fees and dues. The EXECUTIVE may
      hold offices or accept responsibilities in these professional
      organizations provided that such responsibilities are applicable to the
      EXECUTIVE position or do not interfere with the performance of his duties
      as stated herein.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Business Mileage
      Reimbursement</font>. The EXECUTIVE shall be entitled to reimbursement for
      business travel while using his personal vehicle at the most current IRS
      defined rate of reimbursement.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(d)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Health Club
      Membership.</font>&#160;&#160;BRAINTECH employees currently have the right
      to use an exercise facility in the same building as the
      Office.&#160;&#160;If for any reason EXECUTIVE no longer has access to
      this exercise facility, the EXECUTIVE shall be thereafter entitled to
      reimbursement of membership and fees at a health club of his choice during
      employment with BRAINTECH.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(e)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Parking</font>.&#160;&#160;BRAINTECH
      shall provide EXECUTIVE with free garage parking in the Office garage
      building.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(f)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Other</font>.&#160;&#160;Such
      other benefits or expense reimbursements as may be offered to other
      employees or executives of
BRAINTECH.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">12.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">TERMINATION OF
      EXECUTIVE&#8217;S EMPLOYMENT</font>.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Good
      Cause&#8221; shall mean:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">i.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
      willful and continued failure by the EXECUTIVE to substantially perform
      his duties hereunder (other than due to incapacity from physical or mental
      illness) which failure continues after written demand for performance is
      delivered by the Board of Directors to EXECUTIVE specifying the nature of
      such failure and providing a reasonable opportunity for EXECUTIVE to cure
      such failure;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">ii.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">gross
      misconduct which is or could reasonably be expected to become materially
      injurious to BRAINTECH, including, without limitation, fraud, or
      misappropriation of material Company property or unauthorized and
      intentional disclosure of material confidential
    information;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">iii.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">material
      dishonesty resulting, or intending to result, directly or indirectly, in
      gain or personal enrichment at the expense of the
  Company.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;&#8220;Good
      Reason&#8221; shall mean:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">i.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">any
      material reduction of the titles, duties or responsibilities of the
      EXECUTIVE or assignment of any duties inconsistent with EXECUTIVE&#8217;s
      position; or</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">ii.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">any
      material adverse change in EXECUTIVE&#8217;s compensation or benefits including
      but not limited to any failure by BRAINTECH, without EXECUTIVE&#8217;s consent,
      to pay to EXECUTIVE any portion of his Base Salary or any other earned
      compensation within ten (10) business days of the date such compensation
      is due or other breach by BRAINTECH of any of its obligations
      hereunder;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">iii.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">any
      material change in the Bonus Plan or EXECUTIVE&#8217;s compensation
      thereunder;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">iv.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">any
      requirement for the EXECUTIVE to relocate outside of the McLean, VA
      area;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">v.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">any
      bad faith by BRAINTECH in dealing with EXECUTIVE or his employment
      conditions.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Termination By
      BRAINTECH for Good Cause</font>.&#160;&#160;BRAINTECH may terminate the
      employment of the EXECUTIVE without notice (or payment in lieu thereof)
      for Good Cause.&#160;&#160;In such event, on the Termination Date
      EXECUTIVE or EXECUTIVE&#8217;s heirs will be paid all unpaid compensation and
      benefits, allowances and perquisites hereunder up to the Termination Date,
      and EXECUTIVE shall be entitled to keep all Bonus Stock for which the
      milestone conditions have been satisfied, free of all restrictions,
      escrows or other conditions and to all Bonus Stock Options which are
      vested as of such time and such Bonus Stock Options may be exercised at
      any time within twenty-four (24) months of the Termination Date. If
      BRAINTECH terminates EXECUTIVE for Good Cause, he shall not be entitled to
      any further Cash Bonus under Paragraph
8.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(d)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Termination By The
      EXECUTIVE</font>.&#160;&#160;The EXECUTIVE may terminate this Agreement
      for any reason by giving the Board of Directors 30 day&#8217;s prior written
      notice.&#160;&#160;In such event, EXECUTIVE will be paid on the
      Termination Date all unpaid compensation, leave and benefits, allowances
      and perquisites hereunder up to the Termination Date, and EXECUTIVE shall
      be entitled to keep all Bonus Stock for which the milestone conditions
      have been satisfied, free of all restrictions, escrows or other conditions
      and to all Bonus Stock Options which are vested as of such time and such
      Bonus Stock Options may be exercised at any time within twenty-four (24)
      months of the Termination Date.&#160;&#160;If EXECUTIVE terminates without
      Good Reason, he shall not be entitled to any further Cash Bonus under
      Paragraph 8.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(e)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Death or Total
      Permanent Disability</font>.&#160;&#160;The total permanent disability or
      death of the EXECUTIVE shall be treated as termination of the EXECUTIVE by
      BRAINTECH without Good Cause. For the purposes of this Agreement, &#8220;Total
      Permanent Disability&#8221; means any physical or mental incapacity, disease or
      affliction as determined by a legally qualified medical practitioner,
      which prevents the EXECUTIVE from performing his obligations as set out in
      this Agreement and which incapacity persists for a continuous period of
      six months or more.&#160;&#160;This provision will also be subject to any
      duty to accommodate or human rights laws imposed by any government
      authority.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(f)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Termination by
      BRAINTECH without Good Cause or by EXECUTIVE for Good
      Reason</font>.&#160;&#160;In the event of a termination of this Agreement
      or EXECUTIVE&#8217;s employment by the Company without Good Cause, or due to
      Total Permanent Disability or due to the death of the EXECUTIVE, or by the
      EXECUTIVE for Good Reason, then EXECUTIVE or EXECUTIVE&#8217;s heirs will be
      entitled to and paid on the Termination Date all unpaid compensation,
      leave and benefits, allowances and perquisites hereunder up to the
      Termination Date.&#160;&#160;In addition, BRAINTECH shall pay EXECUTIVE or
      EXECUTIVE&#8217;s heirs, within 10 days after the date of execution of the
      Release (as defined hereinafter), by EXECUTIVE or EXECUTIVE&#8217;S heirs, the
      &#8220;Severance Pay&#8221; (as hereinafter defined), and within 10 days after the
      date of the execution of the Release, BRAINTECH shall provide EXECUTIVE or
      EXECUTIVE&#8217;s heirs with the Bonus Securities Acceleration (as hereinafter
      defined) notwithstanding anything to the contrary in The Bonus Stock and
      Bonus Stock Option Incentive Plan (Schedule
  &#8220;A&#8221;):</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">i.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Severance
      Pay&#8221; shall mean:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 126pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">a
      lump sum payment (less all deductions selected by EXECUTIVE and required
      by law such as income taxes) equal to two (2) times the EXECUTIVE&#8217;s
      highest Base Salary during his employment with BRAINTECH;
    and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 126pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Continuation
      of all EXECUTIVE&#8217;s employee benefits and executive family benefits under
      this Agreement for two (2) years after the Termination
    Date.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;
      &#160;&#160; ii.&#160;&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Bonus
      Securities Acceleration&#8221; shall
mean:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 126pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">all
      restrictions, including escrow restrictions, satisfaction of milestones
      and any other restrictions on Bonus Stock issued to the EXECUTIVE will
      cease and the EXECUTIVE will have clear title to all Bonus Stock subject
      to no further restrictions or contingencies and such delivered to
      EXECUTIVE within 10 business days,
and</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 126pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">all
      Bonus Stock Options granted as of the Termination Date will immediately
      vest in the EXECUTIVE (and all milestones shall be deemed satisfied), and
      may be exercised on any date between the Termination Date and a date which
      is 36 months from the Termination Date and such notice sent to EXECUTIVE
      within 10 business days.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">iii.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">BRAINTECH
      and EXECUTIVE agree that on the Termination Date, EXECUTIVE and BRAINTECH
      shall execute a mutual general release in the form attached hereto as
      Appendix II (&#8220;Release&#8221;), of any and all claims which BRAINTECH may have
      against EXECUTIVE or which EXECUTIVE may have against BRAINTECH and its
      officers, employees, directors, parents and
  affiliates.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(g)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Change
      in Control.&#160;&#160;In the event of a Change in Control (as defined
      herein below), then, in addition to EXECUTIVE&#8217;s other rights under this
      Agreement and irrespective of whether or not EXECUTIVE&#8217;s employment is
      terminated, BRAINTECH shall provide EXECUTIVE or EXECUTIVE&#8217;s heirs with
      the Bonus Securities Acceleration (as defined above in Paragraph
      12(f)).&#160;&#160;For the purposes of this Paragraph 12(g), "Change in
      Control" shall mean the first to occur of any one of the following
      events:</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">i.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Any
      person or group of person (as defined in Paragraph 13(d) and 14(d) of the
      Securities Exchange Act of 1934 (&#8220;Exchange Act&#8221;)) together with its
      affiliates, excluding employee benefit plans of BRAINTECH, is or becomes,
      directly or indirectly, the &#8220;beneficial owner&#8221; (as defined in Rule 13d-3
      under the Exchange Act) of securities of BRAINTECH representing 33% or
      more of the combined voting power of BRAINTECH&#8217;s then outstanding
      securities; or</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">ii.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Rick
      Weidinger ceases to be the CEO of BRAINTECH;
or</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">iii.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Individuals
      who at the beginning of any two-year period constitute the Board of
      Directors of BRAINTECH, plus new directors of BRAINTECH whose election or
      nomination for election by the shareholders of BRAINTECH is approved a
      vote of at least a majority of the directors of BRAINTECH still in office
      who were directors of BRAINTECH at the beginning of such two-year period,
      cease for any reason during such two-year period to constitute at least a
      majority of the members of the Board of Directors of BRAINTECH, provided
      however that if Rick Weidinger and individuals nominated by him continue
      to constitute at least a majority of the Board of Directors of BRAINTECH,
      then this subparagraph 12(c)(iii) shall not apply;
  or</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">iv.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      shareholders of BRAINTECH approve a merger or consolidation of BRAINTECH
      with any other corporation or entity regardless of which entity is the
      survivor, other than a merger or consolidation which would result in the
      voting securities of BRAINTECH outstanding immediately prior thereto
      continuing to represent (either by remaining outstanding or being
      converted into voting securities of the surviving entity) at least 50% of
      the combined voting power of the voting securities of BRAINTECH, such
      surviving entity or any parent thereof outstanding immediately after such
      merger of consolidation in any single transaction or related series of
      transactions and Rick Weidinger ceases to be the CEO of BRAINTECH;
      or</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">v.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      shareholders of BRAINTECH approve a plan [or the creditors of BRAINTECH
      force such an action] of complete liquidation, foreclosure or winding-up
      of BRAINTECH or an agreement for the sale of disposition by BRAINTECH of
      all or substantially all of BRAINTECH&#8217;s assets and Rick Weidinger ceases
      to be CEO of Braintech or its successor
company.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">13.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">CONFIDENTIALITY</font>:&#160;&#160;Unless
      this agreement is publicly filed, EXECUTIVE agrees to keep the terms and
      conditions of this Agreement confidential and BRAINTECH reserves the right
      to terminate the Agreement if the EXECUTIVE publicly discloses any of the
      terms and conditions contained herein without the specific written consent
      of BRAINTECH, other than disclosure by EXECUTIVE to his tax, financial or
      other advisors, which is permitted.&#160;&#160;In consideration of the
      execution of this Agreement, the EXECUTIVE shall execute a Non-disclosure
      and Confidentiality Agreement, in the form provided by BRAINTECH, with
      respect to, BRAINTECH, Inc., and any subsidiaries and affiliates thereof.
      Any information deemed necessary by BRAINTECH counsel to require public
      filing stands as allowable exception to this
  clause.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">14.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">BEST
      EFFORTS</font>:&#160;&#160;The EXECUTIVE will, at all times, faithfully,
      industriously and to the best of his or her ability, experience and
      talents, perform the Services provided herein or any other duties required
      of or from him or her pursuant to the express terms set forth in this
      Agreement, to the reasonable satisfaction of the Board of
      Directors.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">15.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">OUTSIDE CONSULTATION
      ACTIVITIES</font>:&#160;&#160;The EXECUTIVE may, with Board of Directors
      approval, serve as a consultant related to prior investment entities and
      receive payment and reimbursement of expenses and/or fees for consultation
      services at no expense to the BRAINTECH.&#160;&#160;Prior to engaging in
      these activities, the EXECUTIVE will notify the Board of Directors in
      writing of the activity.&#160;&#160;The Board of Directors will notify the
      EXECUTIVE if the activity presents a conflict or interferes with the
      performance of his duties.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">16.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">SUCCESSORS; BINDING
      AGREEMENT</font>:&#160;&#160;BRAINTECH shall require any
      successor;</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">whether
      direct or indirect, by purchase, merger, consolidation or otherwise to all
      or substantially all of the business and/or assets of BRAINTECH to
      expressly assume and agree to perform this Agreement in the same manner
      and to the same extent that BRAINTECH would be required to perform it if
      no such succession had taken place.&#160;&#160;BRAINTECH as hereinbefore
      defined, includes BRAINTECH and any successor to its business and/or
      assets or which otherwise becomes bound by all the terms and provisions of
      this Agreement by operation of law.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 54pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This
      Agreement and all rights of the EXECUTIVE hereunder shall inure to the
      benefit of and be enforceable by the EXECUTIVE'S personal or legal
      representatives, executors, administrators, successors, heirs,
      distributees, devisees and legatees.&#160;&#160;If the EXECUTIVE should
      die while any amounts are payable to him hereunder all such amounts unless
      otherwise provided herein, shall be paid in accordance with the terms of
      this Agreement to the Executive's devisee, legatee, or other designee or,
      if there be no such designee, to the Executive's
  estate.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">17.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">SEVERABILITY</font>.&#160;&#160;Should
      any of the provisions of this Agreement be determined to be invalid or
      unenforceable by a court, governmental agency, or arbitrator of competent
      jurisdiction, such determination shall not affect the enforceability of
      the other provisions.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">18.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">GOVERNING
      LAW</font>:&#160;&#160;&#160;This Agreement shall be governed by and
      construed in accordance with the domestic laws of the State of Delaware
      without giving effect to any choice of law or conflict of law provision or
      rule (whether of Delaware, or any other jurisdiction) that would cause the
      application of the laws of any jurisdiction other than the State of
      Delaware.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">19.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">PARAGRAPH
      HEADINGS</font>:&#160;&#160;The titles to the paragraphs of this Agreement
      are solely for the convenience of the parties and shall not be used to
      explain, modify, simplify, or aid in the interpretation of the provisions
      of this Agreement.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">20.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">COMPLETE
      AGREEMENT</font>:&#160;&#160;This Agreement contains the complete
      agreement concerning the employment arrangement between the parties and
      shall, as of the effective date hereof, supersede all other agreements
      between the parties.&#160;&#160;The parties stipulate that neither of them
      has made any representation with respect to the subject matter of this
      Agreement or any representation including the execution and delivery of
      this Agreement except such representations as are specifically set forth
      in this Agreement and each of the Parties acknowledges that he or it has
      relied on its own judgment in entering into this
  Agreement.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">21.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">INDEMNIFICATION</font>:&#160;&#160;BRAINTECH
      shall indemnify EXECUTIVE against any and all expenses, including amounts
      paid upon judgments, attorney and counsel fees, environmental penalties
      and fines, and amounts paid in settlement (before or after suit is
      commenced), incurred by the EXECUTIVE in connection with his defense or
      settlement of any claim, action, suit or proceeding in which he is made a
      party or which may be asserted against him by reason of his employment or
      the performance of duties in this Agreement. Such indemnification shall be
      in addition to any other rights to which those indemnified may be entitled
      under any law, under insurance, by law agreement, or otherwise. Any and
      all legal fees and costs incurred by the EXECUTIVE shall be paid currently
      and as due by the Company.&#160;&#160;Effective as of the Effective Date
      and remaining in force throughout EXECUTIVE&#8217;s employment with BRAINTECH
      and with reasonable 24 month tail coverage thereafter, BRAINTECH shall
      maintain in force a directors and officers insurance liability policy
      covering EXECUTIVE for all of his roles with BRAINTECH, and such policy
      shall be with an insurance provider reasonably satisfactory to EXECUTIVE,
      and shall have policy limits reasonably satisfactory to EXECUTIVE and
      shall have other characteristics reasonably satisfactory to
      EXECUTIVE.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">IN
WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE EFFECTIVE
DATE.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">BRAINTECH,
Inc.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Per:&#160;&#160;____________________________&#160;&#160;&#160;&#160;&#160;<font id="TAB1" style="MARGIN-LEFT: 180pt"></font></font></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Board
of Directors</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">FREDERICK
WEIDINGER</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Per:&#160;&#160;____________________________&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font id="TAB1" style="MARGIN-LEFT: 180pt"></font></font></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Frederick
Weidinger</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div><br>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div><br>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Appendix
I</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">BONUS
SECURITIES COMPENSATION STRUCTURE</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This
Appendix details the Bonus &amp; Incentive Compensation the EXECUTIVE will be
entitled to as described in Paragraph 7 of the Employment Agreement (the
&#8220;Agreement&#8221;) between the EXECUTIVE and BRAINTECH dated as of January 1,
2009.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Bonus
Stock grants and Bonus Stock Option grants (the &#8220;Bonus Securities&#8221;) are subject
to the terms and conditions of the Bonus Stock and Bonus Stock Option Incentive
Plan (the &#8220;Bonus Plan&#8221;), attached hereto as Schedule 1 or such other plan or
plans implemented by the Company.&#160;&#160;Whenever the Common Stock of
BRAINTECH is publicly traded, BRAINTECH will maintain an effective registration
statement for the Bonus Securities with the U.S. Securities and Exchange
Commission and other applicable authorities so that the Bonus Stock may be sold
in the open market if EXECUTIVE so desires.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Each of
the share certificates for any Bonus Stock grants subject to Milestones will be
issued effective as of the Effective Date within 20 days thereafter but shall be
held by BRAINTECH until vesting, at which time they will be immediately
delivered to EXECUTIVE.&#160;&#160;For the avoidance of doubt, each Milestone
shall apply only to the tranche of Bonus Stock to which it expressly applies,
and no Milestone shall apply to any other provision of this
Agreement.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 74px">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td width="907">
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Milestone
      1</font>:&#160;&#160;Successful refinance, roll-over, extension, refinance
      or restructure of the RBC Loan Facility. On achievement of Milestone 1,
      5,000,000 shares of&#160;EXECUTIVE&#8217;s Bonus Stock will
  vest.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 108pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; TEXT-DECORATION: underline">Milestone
      2</font>:</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Attainment
      of minimum revenue for 2009 for BRAINTECH in the amount of
      $2,500,000.&#160;&#160;On Achievement of Milestone&#160;1, 3,000,000
      shares of EXECUTIVE&#8217;s Bonus Stock will vest. BRAINTECH and EXECUTIVE have
      agreed to measure this goal from the level of the 12 months trailing
      rolling period beginning in 2009.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;

      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 108pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="TEXT-DECORATION: underline">Milestone
      3</font></font>:</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Attainment
      of minimum revenue for 2010 for BRAINTECH in the amount of
      $4,500,000.&#160;&#160;On achievement of Milestone 3, 2,500,000 shares of
      EXECUTIVE&#8217;s Bonus Stock will vest. BRAINTECH and EXECUTIVE have agreed to
      measure this goal from the level of the 12 months trailing rolling period
      beginning in 2010.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 72px">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td width="909">
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Milestone
      4</font>:&#160;&#160;Attainment of minimum revenue for 2011 for
      BRAINTECH&#160;&#160;in the amount of $7,000,000.&#160;&#160;On
      achievement of Milestone 4, 2,500,000 shares of&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font>EXECUTIVE&#8217;s Bonus Stock
      will vest. BRAINTECH and EXECUTIVE have agreed to measure this goal from
      the level of the 12 months trailing rolling period beginning in
      2011.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
addition to the vesting of the applicable Bonus Securities that will occur on
achievement of the applicable Milestone set forth above, recognizing that the
corporate goals may change quickly in a small company, vesting of applicable
Bonus Securities shall also occur if the Board of Directors decides to award the
Bonus Stock associated with each Milestone based on other achievements of the
EXECUTIVE which in the judgment of the Board of Directors are as important to
BRAINTECH as to the applicable Milestone(s), notwithstanding the specificity of
each Milestone set forth above,</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Notwithstanding
the foregoing Milestones and vesting schedule, all unvested Bonus Stock and
Bonus Stock Options shall immediately vest upon the occurrence of the following
event:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">If any
third party [or parties] shall invest at least $2,000,000 in the Company in
exchange for equity or any instrument convertible into equity [could be a debt
instrument that has equity warrants or options attached].</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div><br>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div><br>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 72pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td>
              <div align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">INCENTIVE
      BONUS SUMMARY</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block">
      <div style="TEXT-ALIGN: center" align="center">
        <table cellpadding="0" cellspacing="0" style="BORDER-BOTTOM: medium none; TEXT-ALIGN: center; BORDER-LEFT: medium none; BORDER-COLLAPSE: collapse; BORDER-TOP: medium none; BORDER-RIGHT: medium none; mso-border-alt: solid windowtext .5pt; mso-border-insidev: .5pt solid windowtext; mso-yfti-tbllook: 191; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: .5pt solid windowtext">
            <tr style="TEXT-ALIGN: center; MSO-YFTI-IROW: 0;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: 1px solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: 1px solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Bonus Stock</font></div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: 1px solid; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">&#160;</div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr style="MSO-YFTI-IROW: 1;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: center; MARGIN: 0in 0in 0pt">&#160;</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">&#160;</div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr style="MSO-YFTI-IROW: 2;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">&#160;</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">&#160;</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">&#160;</div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr style="MSO-YFTI-IROW: 3;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">Milestone 1</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">5,000,000</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">&#160;</div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr style="MSO-YFTI-IROW: 4;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">Milestone 2</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">3,000,000</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">&#160;</div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr style="MSO-YFTI-IROW: 5;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">Milestone 3</div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">2,500,000</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">&#160;</div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr style="MSO-YFTI-IROW: 6;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">Milestone 4</div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">2,500,000</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
              </td>
            </tr>
            <tr style="MSO-YFTI-IROW: 7;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt">&#160;</div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">&#160;</div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
              </td>
            </tr>
            <tr style="MSO-YFTI-IROW: 8; MSO-YFTI-LASTROW: yes;">
              <td valign="top" width="181" bgcolor="transparent" style="BORDER-BOTTOM: 1px solid; BORDER-LEFT: 1px solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 135.9pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="MARGIN: 0in 0in 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Total</font></div>
              </td>
              <td valign="top" width="120" bgcolor="transparent" style="BORDER-BOTTOM: 1px solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 1.25in; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold">13,000,000</font></div>
                <div>&#160;</div>
              </td>
              <td valign="top" width="174" bgcolor="transparent" style="BORDER-BOTTOM: 1px solid; BORDER-LEFT: #ece9d8; PADDING-BOTTOM: 0in; PADDING-LEFT: 5.4pt; WIDTH: 130.5pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; BORDER-RIGHT: 1px solid; PADDING-TOP: 0in; MSO-BORDER-ALT: solid windowtext .5pt; MSO-BORDER-LEFT-ALT: solid windowtext .5pt; MSO-BORDER-TOP-ALT: solid windowtext .5pt">
                <div style="TEXT-ALIGN: right; MARGIN: 0in 0in 0pt" align="right">&#160;</div>
                <div>&#160;</div>
              </td>
            </tr>
        </table>
      </div><br></div><br>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div><br>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">SCHEDULE
1 TO EMPLOYMENT AGREEMENT</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Bonus Stock and Bonus Stock
Option Incentive Plan</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">(the
&#8220;Bonus Plan&#8221;)</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">1.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">PURPOSE
      OF THE BONUS PLAN</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">1.1</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      purpose of this Bonus Plan is to strengthen Braintech, Inc. (the
      &#8220;Company&#8221;) by rewarding its directors and key employees (collectively
      referred to as the &#8220;Participants&#8221;) for high levels of performance and
      extraordinary efforts resulting in an increase in the development of the
      Company and the sales and earnings of the Company.&#160;&#160;The Bonus
      Plan provides for the issuance of common stock of the Company (&#8220;Bonus
      Stock&#8221;) and options to acquire common stock of the Company (&#8220;Bonus Stock
      Options&#8221;) to the Participants upon the Company reaching certain
      identifiable milestones (the &#8220;Milestones&#8221;) in its business plan, and is
      intended to reward the Participants for their unique expertise and
      experience in achieving these Milestones.&#160;&#160;Bonus Stock and Bonus
      Stock Options are hereinafter collectively referred to as &#8220;Bonus
      Securities&#8221;.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">1.2.</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      Company believes that, from a corporate governance perspective, it is more
      appropriate to provide a reward mechanism of this nature than to provide
      incentive to insiders exclusively in the form of stock options, since the
      Company&#8217;s share price can vary in accordance with a range of external
      factors not related to the performance of management and key
      employees.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">2.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ADMINISTRATION
      OF THE BONUS PLAN</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">2.1.</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Administration</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.&#160;&#160;</font>This Bonus
      Plan will be administered by the<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline">Chief Executive Officer (the &#8220;CEO&#8221;) of the Company
      who shall make recommendations to the Compensation Committee (the
      &#8220;Committee&#8221;) of the </font>Board of Directors of the Company (the
      &#8220;Board&#8221;)<font style="DISPLAY: inline"> with regard to awards of Bonus
      Securities and the related terms and conditions. The Board will establish
      the initial targets and parameters for the issuance of such Bonus
      Securities that may serve as guidelines to the CEO.&#160;&#160;Upon
      approval of the Committee of any such CEO award recommendations, such
      recommendations shall be final unless such awards are outside the
      established Board targets in which case the Board must approve the final
      recommended award.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>Any such action of
      the Board with respect to <font style="DISPLAY: inline">such final
      approval</font> will be taken pursuant to a majority vote, or to the
      written consent of a majority of its
members.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">2.2
      &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Authority.</font>&#160;&#160;Subject
      to the express provisions of the Bonus Plan, the CEO will have the
      authority to construe and interpret the Bonus Plan and to define the terms
      used herein and to prescribe, amend and rescind the rules and regulations
      relating to the administration of the Bonus Plan.&#160;&#160;The
      determination of the CEO on the foregoing matters will be conclusive<font style="DISPLAY: inline; FONT-WEIGHT: bold">.&#160;&#160;</font><font style="DISPLAY: inline">The CEO shall not have the authority to make any
      change or amendment to the Bonus Plan that would affect any Participant to
      the extent that the Participant is a party to an employment agreement with
      the Company that requires the Participant&#8217;s consent to such change or
      amendment</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font></font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">3.
      &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">PARTICIPATION</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">3.1</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Eligibility.</font>&#160;Directors
      and key employees of the Company shall be eligible for selection by the
      CEO to participate in the Bonus Plan.&#160;&#160;An individual who has
      been granted Bonus Securities may, if otherwise eligible, be granted
      additional Bonus Securities if the CEO shall so
  determine.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">3.2&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Time of Granting of
      Bonus Securities.</font>&#160;&#160;The granting of Bonus Securities
      pursuant to this Bonus Plan will take place at the time<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline">specified in any employment agreement or any other
      written agreement between the Company and the Participant.&#160;&#160;The
      granting of Bonus Securities may be subject to certain Milestones agreed
      upon in writing between the Company and the Participant.</font><font style="DISPLAY: inline">&#160;&#160;In the event that Bonus Securities,
      subject to Milestones, are granted prior to the time that the Milestones
      have been achieved then, until such time as the Milestones have been
      achieved, such Bonus Securities shall be subject to escrow restrictions as
      set forth in Section 7.2.</font></font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">4.
      &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">STOCK
      SUBJECT TO THE BONUS PLAN</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">4.1</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Subject
      to the adjustments as provided in Article 9 of this Bonus Plan, the stock
      to be offered under this Bonus Plan will be shares of the Company&#8217;s
      authorized but unissued common stock, including re-acquired common stock
      or common stock previously issued but cancelled.&#160;&#160;The aggregate
      amount of shares that may be issued under the Bonus Plan will not exceed
      30 million (30,000,000) shares.&#160;&#160;The aggregate amount of shares
      to be issued as Bonus Stock will not exceed 20 million (20,000,000) shares
      and the aggregate amount of shares to be issued pursuant to the exercise
      of Bonus Stock Options will not exceed 10 million (10,000,000)
      shares.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">5.
      &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">MILESTONES</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">5.1&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Performance
      Milestones will be determined by the Company and included in any
      employment agreement or any other written agreement between the Company
      and the Participant.&#160;&#160;Each Milestone will be subject to a time
      restriction for achieving that Milestone.&#160;&#160;Bonus Stock Options
      granted will be subject to the provision of Section 6 and Bonus Stock
      granted will be subject to the provision of Section
  7</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">6.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">PROVISIONS
      RELATING TO THE STOCK OPTIONS</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">6.1</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Option
      Price</font>.&#160;&#160;The purchase price of stock covered by each Bonus
      Stock Option will be determined by the CEO taking into consideration the
      market value of the <font style="DISPLAY: inline">underlying shares</font>
      on the date of grant.&#160;&#160;The purchase price of any stock purchased
      will be paid in full by bank draft or by certified cheque at the time of
      each purchase, or will be paid in such other manner as the CEO may
      determine in compliance with applicable laws.<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">6.2</font> &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Option
      Period.</font>&#160;&#160;Each Bonus Stock Option and all rights or
      obligations thereunder will expire on the fifth (5th) anniversary of the
      date on which the Bonus Stock Option is granted or on such other date as
      the CEO may determine or the Company may have agreed to contractually,
      subject to earlier termination as hereinafter
  provide.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">6.3</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Privileges of Stock
      Ownership</font>.&#160;&#160;The holder of a Bonus Stock Option pursuant
      to this Bonus Plan will not be entitled to the privileges of stock
      ownership as to any shares of stock not actually issued and delivered to
      him.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">6.4 </font>&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exercise of
      Option</font>.&#160;&#160;Each Bonus Stock Option may be exercised in
      accordance with its terms and the total number of shares subject thereto
      may be purchased, in instalments, which need not be equal.&#160;&#160;No
      Bonus Stock Option or instalment thereof will be exercisable except in
      respect to whole shares, and fractional share interests will be
      disregarded.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">6.5</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Agreement to Remain in
      Employ of Company.</font>&#160;&#160;Each individual to whom a Bonus Stock
      Option is granted is not required to remain in the employ of the Company
      following the date of the grant of the Bonus Stock
      Option.&#160;&#160;Nothing contained in this Bonus Plan, or in any Bonus
      Stock Option granted pursuant to this Bonus Plan, will confer upon any
      individual any right to continue in the employ of the Company or
      constitute any contract or agreement of employment or interfere in any way
      with the right of the Company to reduce such individual&#8217;s compensation
      from the rate in existence at the time of the granting of a Bonus Stock
      Option or to terminate such individual&#8217;s employment, but nothing contained
      herein or in any Bonus Stock Option agreement will affect any contractual
      rights of an individual.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">&#160;6.6 </font>&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Death of an
      Individual. </font>If any Bonus Stock Option holder dies while employed by
      the Company, such holder&#8217;s Bonus Stock Option will, subject to earlier
      termination pursuant to Section 6.2, expire two years (2) years after the
      date of such death, and during such period after such death such Bonus
      Stock Option may, to the extent that the holder may have exercised the
      Bonus Stock Option if alive during such period, be exercised by the person
      or persons to whom the Bonus Stock Options holder&#8217;s rights under the Bonus
      Stock Option will pass by will or by the applicable laws of descent and
      distribution.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">6.7</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Termination</font>.&#160;&#160;Subject
      to Section 6.6 and earlier termination pursuant to Section 6.2, if the
      holder of a Bonus Stock Option resigns or ceases to be employed by the
      Company for any reason other than death, such holder&#8217;s Bonus Stock Option
      will expire and become null and void thirty (30) days after the holder
      ceases to be a director or key employee of the Company or on such other
      date as the Committee may determine or the Company may have agreed to
      contractually.&#160;&#160;During such period, the Bonus Stock Option will
      be exercisable only to the extent the holder could have exercised the
      Bonus Stock Option at the date the holder ceased to be a director or key
      employee of the Company.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">6.8</font> &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Non-transferability of
      Stock Options.</font>&#160;&#160;A Bonus Stock Option granted under this
      Bonus Plan will, by its terms, be non-transferable by the Bonus Stock
      Option holder other than by will or by the laws of descent and
      distribution and will be exercisable during his lifetime only by the Bonus
      Stock Option holder [or heirs].</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">7.
      &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">PROVISIONS
      RELATING TO BONUS STOCK</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">7.1</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      Company will issue share certificates in the names of the Participants in
      accordance with the terms of any employment agreement or any other written
      agreement between the Company and the Participant in the amounts detailed
      in such agreements and the Participant will purchase the shares for the
      purchase price of $0.01 per share.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 48px">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">7.2 &#160;</font></font></div>
            </td>
            <td width="933">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Each
      of the share certificates <font style="DISPLAY: inline">for any shares
      subject to Milestones </font>will be held in escrow by a third party
      escrow agent until such time as the individual Milestones have been met or
      until the time restriction for achieving the individual Milestones has
      elapsed.&#160;&#160;On notification by the Company that an individual
      Milestone has been met, the third party escrow agent will deliver the
      share certificate to the appropriate
  Participant.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">7.3</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
      the event that an individual Milestone has not been achieved within the
      time restriction for achieving that Milestone, the Company will purchase
      the share certificate from the Participant for the purchase price of $0.01
      per share.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">8.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">COMPLIANCE
      WITH SECURITIES LAWS</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">8.1</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Shares
      will not be issued pursuant to the grant of Bonus Stock or the exercise of
      a Bonus Stock Option unless the grant of Bonus Stock and the exercise of
      such Bonus Stock Option and the issuance and delivery of such shares
      pursuant thereto will comply with all relevant provisions of law,
      including, without limitation, the Securities Act of 1933, as amended, the
      Securities Exchange Act of 1934, the rules and regulations promulgated
      there under, and the requirements of any Stock
  Exchange.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">8.2.</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">As
      a condition to the grant of Bonus Stock or the exercise of a Bonus Stock
      Option, the Company may require the recipient to represent and warrant at
      the time of any such grant or exercise that the shares received or
      purchased are being received or purchased only for investment and without
      any present intention to sell or distribute such shares if, in the opinion
      of counsel for the Company, such a representation is required by
      law.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">8.3</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Further,
      the Company will have no liability whatsoever (including, but not
      restricted to, alternate compensation) to the holder of a Bonus Stock
      Option if a change in the exercise price or a change in the terms and
      provisions of a Bonus Stock Option and/or this Bonus Plan hereof is
      required pursuant to any applicable
laws.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">8.4</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      Company and any party to this Bonus Plan will comply with all relevant
      provisions of law relating to this Bonus Plan and any Bonus Stock or Bonus
      Stock Option granted hereunder.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">9.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">ADJUSTMENTS
      UPON CHANGES IN CAPITALIZATION</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">9.1</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Corporate
      Reorganizations</font>.&#160;&#160;If the outstanding shares of the stock
      of the Company are increased, decreased or changed into, or exchanged for,
      a different number or kind of shares or securities of the Company through
      reorganization, recapitalization, reclassification, stock split, stock
      dividend, stock consolidation, or merger as a result of which the Company
      is the surviving corporation, or otherwise, an appropriate and
      proportionate adjustment will be made in the number and kind of shares as
      to which Bonus Securities may be granted.&#160;&#160;A corresponding
      adjustment changing the number of Bonus Stock allocated but not issued,
      which will have been allocated prior to any such change, will likewise be
      made.&#160;&#160;A corresponding adjustment changing the number of shares
      and the exercise price per share allocated to unexercised Stock Options or
      portions thereof, which will have been granted prior to any such change,
      will likewise be made.&#160;&#160;Any such adjustment, however, in an
      outstanding Bonus Stock Option will be made without change in the total
      price applicable to the unexercised portion of the Bonus Stock Option but
      with a corresponding adjustment in the price for each share covered by the
      Bonus Stock Option.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">9.2&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Dissolution,
      Liquidation.</font>&#160;&#160;Upon the dissolution or liquidation of the
      Company, or upon reorganization, merger or consolidation of the Company
      with one or more corporations as a result of which the Company is not the
      surviving corporation, or upon the sale of substantially all of the
      property of the Company to another corporation, <font style="DISPLAY: inline">unless all of the obligations of </font>this Bonus
      Plan<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline">have been assumed by a successor entity, holders
      of Bonus Securities shall be treated, for purposes of such dissolution,
      liquidation, reorganization, merger or consolidation as holding fully
      vested and unrestricted shares of Common Stock of the Company and,
      accordingly, be treated the same as other holders of Common Stock.
      </font></font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">10.
      &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">INCOME
      TAX LAWS</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">10.1</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      Company and all Participants will comply with all applicable income tax
      laws and other tax laws (e.g. any withholding tax or similar
      obligations).</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">11.
      &#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">AMENDMENT
      AND TERMINATION</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">11.1</font> &#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      Board may at any time suspend, amend or terminate this Bonus Plan as the
      Board, in its own discretion, sees fit.&#160;&#160;No Bonus Stock may be
      issued and no Bonus Stock Option may be granted during any suspension of
      the Bonus Plan or after such termination.&#160;&#160;The amendment,
      suspension or termination of the Bonus Plan will not, without the consent
      of Bonus Stock Option holder, alter or impair any rights or obligations
      under any Bonus Stock Option theretofore granted under the Bonus
      Plan.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-WEIGHT: bold">11.2</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Unless
      terminated sooner by the Board of Directors, this Bonus Plan will
      terminate at the close of business on October 22,
  2017.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This
Bonus Plan was approved and confirmed at a Meeting of the Board of Directors of
Braintech, Inc. held October 22, 2007.</font></div><br>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
    </div><br>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">APPENDIX
II</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">MUTUAL
GENERAL RELEASE AGREEMENT</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>This Mutual General Release Agreement
(&#8220;Release&#8221;) is entered into as of ________________________ (&#8220;Termination Date&#8221;)
by and between Frederick W. Weidinger, an individual (&#8220;Executive&#8221;) and
Braintech, Inc. and its subsidiaries (collectively, &#8220;Braintech&#8221;) in connection
with the Employment Agreement dated as of November 4, 2008 between Executive and
Braintech (&#8220;Agreement&#8221;).&#160;&#160;(Each of Executive and Braintech may be
hereinafter referred to as a &#8220;Party&#8221; and collectively as &#8220;the
Parties.&#8221;)</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>WHEREAS, Executive&#8217;s employment is
being terminated without Good Cause by Braintech or by Executive for Good Reason
under the Agreement;</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>NOW THEREFORE, in consideration of the
mutual promises and releases contained in this Release and in exchange for the
Severance Pay and Bonus Securities Accelerations described in the Agreement (for
purposes of this Release, &#8220;Severance Pay&#8221; and &#8220;Bonus Securities Accelerations&#8221;
shall have the meaning assigned to them in the Agreement) and for other good and
valuable consideration, the sufficiency of which is hereby acknowledged, the
Parties agree as follows:</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Executive&#8217;s
      employment is terminated without Good Cause effective as of the
      Termination Date.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Within
      10 days after the execution of this Release, Braintech will pay Executive
      the Severance Pay and provide Executive with the Bonus Securities
      Accelerations.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Consideration and
      Revocation Periods; Effective Date</font>.&#160;&#160;Executive
      acknowledges that he has 21 days in which to consider whether to sign this
      Release and the opportunity to have it reviewed by counsel, but that he is
      free to sign the Release before the expiration of the 21-day period if he
      so chooses.&#160;&#160;Executive&#8217;s signature on this Release constitutes
      an express waiver of the 21-day period if he signs it before that period
      expires.&#160;&#160;Braintech&#8217;s offer of the Severance Pay and Bonus
      Securities Accelerations is automatically revoked if Executive has not
      signed this Release and delivered it to Braintech&#8217;s CEO or his designee
      within this 21-day period.&#160;&#160;If Executive timely signs and
      delivers this Release, he will have seven days following the date on which
      he signed and delivered this Release to revoke it.&#160;&#160;This Release
      shall not be effective or enforceable, nor will any payment of the
      Severance Pay and Bonus Securities Accelerations be paid or made available
      to Executive, until the seven-day revocation period has
      expired.&#160;&#160;Executive agrees that in order for this revocation to
      be effective, the revocation must be delivered, in writing, to Braintech&#8217;s
      CEO or his designee before the seven-day revocation period has
      expired.&#160;&#160;If no such revocation occurs, this Release shall
      become effective on the eighth day after Executive signs and delivers this
      Release to Braintech&#8217;s CEO or his designee (&#8220;the Effective
      Date&#8221;).</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Severance Pay and
      Bonus Securities Accelerations</font>.&#160;&#160;In consideration for
      Executive&#8217;s promises and undertakings set forth in this Release, Braintech
      agrees to give Executive the Severance Pay and Bonus Securities
      Accelerations.&#160;&#160;The Parties intend and agree that the payments
      and benefits described in this Paragraph qualify for exemption from, or
      comply with the requirements of, Section 409A of the Internal Revenue Code
      of 1986, as amended, and that, except for appropriate tax withholdings and
      reporting and other obligations of Braintech, Executive shall be solely
      responsible for the tax consequences to Executive of such payments and
      benefits.&#160; Executive represents and warrants that he has consulted
      any tax consultants he deems advisable in connection with the payments and
      benefits described in this Paragraph and that he is not relying on
      Braintech or its employees, officers, directors, attorneys or accountants
      for any tax advice.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">General Release of
      Claims</font>.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">a)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Executive,
      on behalf of himself, and his heirs, representatives, and assigns, hereby
      waives and fully releases, to the fullest extent permitted by applicable
      law, Braintech and its current and former owners, partners, directors,
      officers, shareholders, employees, agents, employee benefit plans, benefit
      plan administrators and fiduciaries, insurers, attorneys, affiliates,
      subsidiaries, parents, successors, predecessors and assigns, and any other
      persons or entities acting by, through, under, or in concert with any of
      such aforementioned persons or entities (collectively &#8220;Releasees&#8221;) from
      any and all complaints, claims, demands, suits and actions, whether in law
      or in equity, that Executive may have or could assert against them, based
      upon events occurring before Executive&#8217;s execution of this Release,
      whether these events are now known or unknown, at common law or under any
      statute or regulation, whether federal, state or local, on any ground
      whatsoever, known or unknown, asserted or unasserted, arising out of or in
      any way relating to Executive&#8217;s employment with Braintech and the
      separation thereof, including, but not limited to, claims for breach of
      contract, the covenant of good faith and fair dealing, wrongful
      termination/constructive discharge, defamation, intentional or negligent
      infliction of emotional distress, fraud, negligence, invasion of privacy,
      and all other torts, and claims arising under any statute, including, but
      not limited to, Title VII of the Civil Rights Act of 1964, the Civil
      Rights Act of 1991, the Labor Management Relations Act, the National Labor
      Relations Act, the Employee Retirement and Income Security Act, the
      Americans With Disabilities Act, the Age Discrimination in Employment Act
      of 1967, the Federal Rehabilitation Act of 1973, 42 U.S.C. section 1981,
      the Virginia Human Rights Act, and any and all other laws and regulations
      related to employment, termination, employment discrimination or
      retaliation, wages, hours, compensation, benefits, and any and all claims
      for attorneys&#8217; fees and costs.&#160;&#160;Notwithstanding the foregoing,
      this release does not cover any claims that cannot be waived by law, any
      claims for vested benefits under Braintech&#8217;s benefit plans, or any rights
      to enforce or challenge the validity of this Release.&#160;&#160;Nor does
      this release preclude Executive from filing a charge with the Equal
      Employment Opportunity Commission or any other governmental administrative
      agency; Executive, however, is waiving his right to any monetary recovery
      should the Equal Employment Opportunity Commission or any other
      governmental administrative agency pursue any claims on his
      behalf.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">b)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Braintech,
      on behalf of itself, and its current and former owners, partners,
      directors, officers, shareholders, employees, agents, employee benefit
      plans, benefit plan administrators and fiduciaries, insurers, attorneys,
      affiliates, subsidiaries, parents, successors, predecessors and assigns,
      and any other persons or entities acting by, through, under, or in concert
      with any of such aforementioned persons or entities (collectively
      &#8220;Releasors&#8221;) hereby waives and fully releases, to the fullest extent
      permitted by applicable law, Executive and his heirs, representatives, and
      assigns, from any and all complaints, claims, demands, suits and actions,
      whether in law or in equity, that Releasors may have or could assert
      against them, based upon events occurring before Executive&#8217;s execution of
      this Release, whether these events are now known or unknown, at common law
      or under any statute or regulation, whether federal, state or local, on
      any ground whatsoever, known or unknown, asserted or unasserted, arising
      out of or in any way relating to Executive&#8217;s employment with Braintech and
      any and all claims for attorneys&#8217; fees and
  costs.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Acknowledgements and
      Representations</font>.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">a)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Executive
      acknowledges, agrees and represents that: (i) Braintech is not required to
      pay the Severance Pay and provide the Bonus Securities Accelerations
      unless Executive signs this Release; (ii) Executive has received all other
      compensation, wages, bonuses, leave and other benefits to which he is
      entitled, except for (A) previously submitted but unreimbursed expenses
      which are detailed on an attachment hereto and (B) expenses for which
      Executive is entitled to reimbursement under the Agreement for periods up
      to the Termination Date but which have not yet been submitted to
      Braintech; (iii) he has not suffered any on-the-job injury for which he
      has not already filed a workers&#8217; compensation claim; (iv) nothing
      contained in this Release shall constitute or be treated as an admission
      of liability or wrongdoing by Braintech or its officers, directors,
      employees or agents; (v) he is unaware of any right or claim that he may
      have against Braintech or its directors, officers, employees or agents
      that has not been released in this Release; and (vi) he has the sole right
      and authority to execute this Release, and has not sold, assigned or
      transferred any rights or claims surrendered by virtue of this
      Release.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">b)&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Braintech
      acknowledges, agrees and represents that: (i) nothing contained in this
      Release shall constitute or be treated as an admission of liability or
      wrongdoing by Executive; (ii) it is unaware of any right or claim that it
      may have against Executive; and (iii) it has the sole right and authority
      to execute this Release, and has not sold, assigned or transferred any
      rights or claims surrendered by virtue of this
  Release.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Severability</font>.&#160;&#160;Should
      any of the provisions of this Release be determined to be invalid or
      unenforceable by a court, governmental agency, or arbitrator of competent
      jurisdiction, such determination shall not affect the enforceability of
      the other provisions.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Governing
      Law</font>:&#160;&#160;&#160;This Release shall be governed by and
      construed in accordance with the domestic laws of the State of Delaware
      without giving effect to any choice of law or conflict of law provision or
      rule (whether of Delaware, Province of British Columbia or any other
      jurisdiction) that would cause the application of the laws of any
      jurisdiction other than the State of
Delaware.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">9.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Interpretation,
      Completeness, Modification</font>.&#160;&#160;This Release shall be
      interpreted in accordance with the plain meaning of its terms and not
      strictly for or against either of the Parties hereto.&#160;&#160;This
      Release supersedes any and all other agreements or understandings, whether
      oral, implied, or in writing, between the Parties with respect to the
      subject matters hereof and contains all of the covenants and agreements
      between them with respect to such matters in their entirety.&#160;&#160;No
      representations, inducements, promises or agreements have been made by the
      Parties that are not embodied herein, and no other agreement, statement or
      promise not contained in this Release shall be valid or
      binding.&#160;&#160;Any modification to this Release will be effective
      only if it is in writing and signed by the Parties
  hereto.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 36pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">10.&#160;&#160;</font></div>
            </td>
            <td>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Additional
      Warranties</font>.&#160;&#160;Each Party expressly warrants that: (a) it
      has carefully read and fully understands all the provisions of this
      Release; (b) it understands that through this Release it is releasing the
      other Party from any and all claims it may have against it; (c) it is
      signing this Release knowingly and voluntarily, free from any duress or
      coercion; and (d) it has been (and hereby is) advised to consult with an
      attorney of its own choosing in deciding whether to sign this
      Release.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">IN
WITNESS WHEREOF, the Parties have executed this Release as of the Termination
Date.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">BRAINTECH,
Inc.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Per:&#160;______________________&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">FREDERICK
WEIDINGER</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Per:
______________________&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
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brain8k06242009.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act Of
1934
Date of Report (Date of earliest
event reported): June 24, 2009 (June 16, 2009)
Braintech,
      Inc.
(Exact
      Name of Registrant as Specified in its Charter)
Nevada
000-24911
98-0168932
(State
      or Other
Jurisdiction
      of Incorporation)
(Commission
      File Number)
(IRS
      Employer
Identification
      No.)
1750
      Tysons Boulevard
Suite 350
McLean, Virginia 22102
(Address
      of principal executive offices) (Zip
Code)
Registrant's
Telephone Number, Including Area Code:
(703)
637-9752
(Former
      Name or Former Address, if Changed Since Last
  Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (
See
General
Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
1.01     Entry into a Material Definitive
Agreement
The
information set forth under Item 5.02 below is incorporated herein by
reference.
Item
5.02     Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers
On June
16, 2009, effective as of January 1, 2009, Braintech, Inc. (the "Company") and
Frederick W. Weidinger, the Company's Chairman, President & CEO
("Weidinger") entered into a new Employment and Retention Agreement (the
"Agreement").
While the
Agreement provides for an increase in Weidinger's salary, (i) the increase is
payable in stock until the Company's cash flow improves; (ii) separately from
the Agreement, Weidinger has voluntarily agreed to take a temporary twenty
percent (20%) salary reduction (from the original salary prior to the increase),
and (iii) separately from the Agreement, if the Company's cash position has not
improved by the fourth quarter of 2009 he will agree to take a further temporary
reduction in salary to a salary of $1 and he will agree to forego submitting
business expenses to the Company for reimbursement and to pay for those expenses
personally; all as described more specifically below.
The
Agreement provides for an initial annual salary of $318,000 ("Base Salary"),
which shall be increased by ten percent (10%) each year on January 1, 2010, 2011
and 2012, and on each January 1 thereafter, the Base Salary shall be increased
based on performance at the discretion of the Board of Directors
("Board").  The $60,000 increase over his previous annual salary of
$258,000 shall be paid in stock rather than cash at the rate of $5,000 per month
based on the average price of the Company's stock during the applicable month
until the Company determines it has the ability to pay the increase in cash or
reaches cash flow break even, whichever comes first.  The Agreement is
for an indefinite term, and continues until terminated in accordance with its
provisions.
Further,
although Weidinger has voluntarily agreed to postpone the following items, the
Agreement provides that Weidinger's earned and deferred cash bonuses totaling
$90,300 for 2007 and 2008 shall be accrued on the books of the Company until
paid (with interest accruing at 5%) or at the option of the executive may be
converted to common stock at the average price of the common stock during the
month of conversion.
Separately
from the Agreement, in addition to postponing his salary increase and prior
years' cash bonuses as described above, Weidinger has voluntarily agreed to take
a temporary twenty percent (20%) salary reduction (from the original $258,000
salary prior to the increase), and further, if the Company's cash position has
not improved by the fourth quarter of 2009, he will agree to take a further
temporary reduction in salary to a salary of $1, and he will agree to forego
submitting business expenses to the Company for reimbursement and to pay for
those expenses personally.
The
Agreement provides that Weidinger is eligible to earn 13,000,000 shares of the
Company's common stock ("Bonus Stock") under the 2007 Bonus Stock and Bonus
Stock Option Plan on the achievement of certain milestones as
follows:  5,000,000 shares upon the successful refinance, roll-over,
extension or restructure of the Company's loan facility or a new facility with
any party; 3,000,000 shares upon the attainment of $2,500,000 in revenue for any
12-month rolling period beginning in 2009; 2,500,000 shares upon the attainment
of $4,500,000 in revenue for any 12-month rolling period beginning in 2010; and
2,500,000 shares upon the attainment of $7,000,000 in revenue for any 12-month
rolling period beginning in 2011.  Notwithstanding the foregoing
milestones, all of such shares will immediately vest if any third party or
parties invest at least $2,000,000 in the Company in exchange for equity or any
instrument convertible into equity, including a debt instrument that has equity
warrants or options attached.
The
Agreement provides that Weidinger is eligible to earn an annual cash bonus on
January 1, 2010 based on 2009 performance in the Board's discretion, the target
amount of which shall be up to 35% of his then-current Base Salary, and an
annual cash bonus of January 1 of each year thereafter based on the previous
year's performance in the Board's discretion, the target amount of which shall
be up to 50% of his then-current Base Salary.
The
Agreement provides for the ability of the Company or Weidinger to terminate
Weidinger's employment with the Company for any reason.
If the
Company terminates his employment without Good Cause (as defined in the
Agreement) or Weidinger terminates such employment with Good Reason (as defined
in the Agreement), or his employment is terminated because of permanent
incapacity or death, he will be entitled to (i) all unpaid compensation, leave
and benefits, allowances and perquisites up to the termination date, (ii) a lump
sum payment equal to two times the highest Base Salary during his employment
with the Company, (iii) continuation of all employee benefits and executive
family benefits under the Agreement for two years after the termination
date.  In addition, all Bonus Stock will immediately vest, and all
Bonus Stock Options will immediately vest and may be exercised within 36 months
of the termination date.
If
Weidinger's employment is terminated by the Company with Good Cause or by
Weidinger without Good Reason, (i) he will be entitled to all unpaid
compensation and benefits, stock and options earned (where the required
milestones have been achieved as of the termination date) up to the termination
date, (ii) all Bonus Stock Options granted as of the date of termination will
immediately vest and may be exercised within 24 months, and (iii) he shall not
be entitled to any further cash Bonus under paragraph 8 of the
Agreement.
The
description of the terms of the Employment Agreement set forth herein is
qualified in its entirety to the full text of the Employment Agreement, which is
filed as an exhibit hereto.
Item 9.01 Financial Statements and
Exhibits.
(d)       
Exhibits
10.1      Employment
and Retention Agreement, effective as of January 1, 2009, by and between
Braintech, Inc. and Frederick W. Weidinger.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Company has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Date:
June
      24, 2009
BRAINTECH,
      INC.
By:
/s/
      Frederick W. Weidinger
Frederick
      W. Weidinger
Chief
      Executive Officer
Exhibit
10.1.   Employment and Retention Agreement, effective as of
January 1, 2009, by and between Braintech, Inc. and Frederick W.
Weidinger
BRAINTECH,
      Inc.
1750
      Tyson's Boulevard
www.BRAINTECH.com
a
      Nevada corporation
Suite
      350
with
      its principal offices at:
McLean,
      Virginia 22102
CONFIDENTIAL
Employment
Agreement
THIS
AGREEMENT dated as of January 1, 2009 ("Effective Date").
BETWEEN:
Frederick
W. Weidinger
558
Innsbruck Avenue
Great
Falls, VA  22066
(
"EXECUTIVE")
AND:
BRAINTECH,
INC.
("BRAINTECH")
WHEREAS:
A.
BRAINTECH
      is a robotic vision technology company that is publicly traded on the
      NASDQ Over-The-Counter Bulletin
Board;
B.
The
      business objectives for BRAINTECH include: Increasing its corporate
      development capabilities and growing and diversifying its existing
      customer base and market coverage especially in the development and growth
      of revenue for Braintech Government & Defense Systems Inc., a
      wholly-owned subsidiary of BRAINTECH ("Braintech GDS") and in industrial
      markets through another wholly-owned subsidiary of BRAINTECH ("Braintech
      Industrial") as well as continuing the development of advanced vision
      software and selling related engineering
  services.
C.
In
      order to achieve the business objectives, BRAINTECH wishes to continue the
      services of EXECUTIVE at its principal office at 1750 Tyson's Boulevard,
      Suite 350, McLean, Virginia 22102 ("Office") as Chief Executive Officer
      and Chairman of the Board BRAINTECH, Inc. and its subsidiaries, on the
      terms and conditions set forth in this Agreement which replaces and
      supersedes the Employment Agreement dated October 22,
  2007.
IN
CONSIDERATION of the mutual promises contained herein, the parties agree as
follows:
1.
EMPLOYMENT
:  BRAINTECH
      hereby employs EXECUTIVE to perform the duties and render the services
      customarily required for the position hereinafter set forth, and EXECUTIVE
      hereby accepts said employment and agrees faithfully to perform said
      duties and render said services, subject to the terms and conditions of
      this Agreement. With the Board of Director's approval, the EXECUTIVE may
      serve in the capacity of director of other corporations or charities
      provided that activity does not materially interfere with EXECUTIVE's
      ability to perform his duties hereunder and that any such entities do not
      compete with BRAINTECH's business.
2.
TERM
:  The
      EXECUTIVE's full time employment with BRAINTECH is for an indefinite term
      and will continue until terminated in accordance with Paragraph 12 of this
      Agreement.
3.
REPORTING
: The
      EXECUTIVE shall report to the Board of
  Directors.
4.
DUTIES:
The
      EXECUTIVE agrees to perform such duties as normally required for the
      position he holds and shall be familiar with and carry out the policies,
      procedures and projects as assigned by the Board of Directors,
      including.
(a)
Overseeing
      and directing all business activities of
  BRAINTECH;
(b)
Managing
      and directing the employees of the
BRAINTECH;
(c)
Developing
      strategic business plans for
BRAINTECH;
(d)
Providing
      leadership and direction for
BRAINTECH;
(e)
As
      Chairman preside over Board of Directors and such other duties as are
      customary for the Chairman of the Board of Directors of a public
      Company;
(f)
Overseeing
      the BRAINTECH's relationships with the Company's customers, suppliers,
      strategic partners and other organizations important to the strategic
      business objectives of the Company
and;
(g)
Overseeing
      BRAINTECH's efforts for raising capital required to advance the strategic
      objectives of the Company.
5.
BASE
      SALARY
:  In order to induce EXECUTIVE to sign a new
      Agreement with BRAINTECH and in consideration of EXECUTIVE's value in the
      marketplace, BRAINTECH shall pay the EXECUTIVE, in consideration for the
      services an annual base salary of $318,000 which shall be increased by ten
      percent (10%) on January 1, 2010, and such adjusted salary shall be
      further increased by ten percent (10%) on each of January 1, 2011 and
      January 1, 2012.  On January 1, 2013 and each January 1
      thereafter, EXECUTIVE's salary shall be increased based on performance at
      the Board of Directors discretion (EXECUTIVE's salary, as increased from
      time to time pursuant to the foregoing provisions, is hereinafter referred
      to as the "Base Salary").  The Base Salary plus 10% shall be
      paid on a current, pro-rated basis at least twice each month beginning on
      the Effective Date except that the increase of $60,000 of the Base Salary
      and any further increases shall be paid in stock on a monthly basis at the
      rate of $5,000 per month based on the average price of the stock during
      the month purchased until the Company determines it has the ability to pay
      the increase in cash or reaches cash flow break even, whichever comes
      first.
6.
ACCRUED AND DEFERRED
      CASH BONUSES FOR 2007 AND 2008
:  The Executive has earned
      and deferred receipt of Cash Bonus in the amount of $90,300 for 2007 and
      2008 which shall be accrued on the books of the Company until paid (with
      interest accruing at 5%) or at the option of the Executive converted to
      common stock at the average price of the common stock during the month
      such accrued bonuses and interest are converted to
  stock.
7.
CASH BONUS SECURITIES
      COMPENSATION
:  The EXECUTIVE shall be entitled to annual
      cash bonuses in the amount of 35% of Base Salary, based on operating
      performance of the Company and  Securities Compensation based on
      achieving certain milestones for 2009, which bonuses based on Securities
      Compensation will be provided in the form of five million (5,000,000)
      issued shares of restricted Common Stock, a second tranche of three
      million (3,000,000) issued shares of restricted Common Stock based on
      achieving milestones in 2010, and a third tranche two and one half million
      (2,500,000) issued shares of restricted Common Stock based on achieving
      milestones in 2011, and a fourth tranche of two and one half million
      shares (2,500,000) issued shares of restricted Common Stock based upon
      achieving Milestone number 4 (collectively, all four such tranches are
      hereinafter referred to as the "Bonus Stock") of BRAINTECH at a purchase
      price of US$0.01 per share (and such cost paid for by company), in
      accordance with the Bonus Stock and Bonus Stock Option Incentive Plan (the
      "Bonus Plan")  approved by the Board of Directors on October 22,
      2007 and attached as Schedule 1.  The vesting of the Bonus Stock
      is subject to the milestones and levels of incentive compensation set
      forth in the EXECUTIVE Bonus Securities Compensation Structure as set
      forth in Appendix I of this
Agreement.
8.
BONUS CASH
      INCENTIVE
:  The EXECUTIVE is eligible to earn an annual
      cash bonus each calendar year during the term of this Agreement (the
      "Bonus").  On January 1, 2010, BRAINTECH shall pay EXECUTIVE an
      annual Bonus based upon performance for 2009 in the Board of Directors'
      discretion, the target amount for which shall be up to 35% of EXECUTIVE's
      then-current Base Salary.  On January 1, 2011 and on JANUARY 1
      of each year thereafter, BRAINTECH shall pay EXECUTIVE an annual Bonus
      based upon performance for the previous calender year in the Board of
      Director's discretion, the target amount for which shall be up to 50% of
      EXECUTIVE's then-current Base Salary.  BRAINTECH has implemented
      a company-wide employee incentive plan ("Incentive Plan"), and EXECUTIVE's
      participation in the Incentive Plan shall be pursuant to the provisions of
      this Paragraph 8, and the Incentive Plan shall not interpreted as
      providing additional compensation to EXECUTIVE beyond the compensation to
      be provided pursuant to this Paragraph
8.
9.
BENEFITS
:  The
      EXECUTIVE shall be entitled to the following
  benefits:
(a)
Leave
.  Thirty
      (30) work days (i.e., six (6) weeks) of paid leave per
      year.  This leave may be used as vacation, personal leave or
      sick leave.  The thirty (30) days of leave is vested immediately
      upon the Effective Date and each anniversary thereafter and may be carried
      over from year to year without limit.  Upon EXECUTIVE's
      termination, any unpaid leave days shall be converted to cash at
      EXECUTIVE's highest BASE Salary during his employment with BRAINTECH and
      paid to EXECUTIVE in a lump sum on the date of his termination of
      employment ("Termination Date");
(b)
Holidays
.  Ten
      (10) paid holidays, which correspond with the US Federal Government
      Holidays;
(c)
Medical/Dental/Vision/Group
      Life and Disability
Insurance
.
i.
BRAINTECH
      shall provide to the EXECUTIVE a comprehensive family health insurance
      policy including medical, dental, vision, life and long term disability
      plans;
(d)
Such
      other benefits as may be offered to other employees or executives of
      BRAINTECH.
10.
EXPENSE
      REIMBURSEMENT
: EXECUTIVE shall be entitled to reimbursement for all
      reasonable expenses, including travel and entertainment, incurred by
      EXECUTIVE in the performance of EXECUTIVE's duties.  EXECUTIVE
      will maintain records and written receipt as required by BRAINTECH policy
      and reasonably requested by the accounting manager to substantiate such
      expenses.  All such expenses are to be reimbursed within twenty
      (20) business days after submission.  BRAINTECH will also
      provide EXECUTIVE with a company credit
card.
11.
OTHER
      EXPENSES/BENEFITS:
The EXECUTIVE shall be entitled to
      reimbursement of following
expenses:
(a)
Cell Phone/Data
      Services/Laptop.
BRAINTECH shall provide the EXECUTIVE
      with a Blackberry or other cell phone / data device of EXECUTIVE's choice
      and BRAINTECH shall pay the charges related to the purchase of such device
      and its use.  BRAINTECH shall also provide EXECUTIVE with a
      laptop computer and other reasonable equipment consistent with his
      roles.
(b)
Professional Meetings
      and Professional Organizations' Dues
. The EXECUTIVE shall be
      entitled to attend and participate in appropriate professional meetings at
      the local, state, and national levels with the reasonable expenses for
      such attendance to be borne by BRAINTECH.  BRAINTECH shall also
      pay EXECUTIVE's professional membership fees and dues. The EXECUTIVE may
      hold offices or accept responsibilities in these professional
      organizations provided that such responsibilities are applicable to the
      EXECUTIVE position or do not interfere with the performance of his duties
      as stated herein.
(c)
Business Mileage
      Reimbursement
. The EXECUTIVE shall be entitled to reimbursement for
      business travel while using his personal vehicle at the most current IRS
      defined rate of reimbursement.
(d)
Health Club
      Membership.
BRAINTECH employees currently have the right
      to use an exercise facility in the same building as the
      Office.  If for any reason EXECUTIVE no longer has access to
      this exercise facility, the EXECUTIVE shall be thereafter entitled to
      reimbursement of membership and fees at a health club of his choice during
      employment with BRAINTECH.
(e)
Parking
.  BRAINTECH
      shall provide EXECUTIVE with free garage parking in the Office garage
      building.
(f)
Other
.  Such
      other benefits or expense reimbursements as may be offered to other
      employees or executives of
BRAINTECH.
12.
TERMINATION OF
      EXECUTIVE'S EMPLOYMENT
.
(a)
"Good
      Cause" shall mean:
i.
the
      willful and continued failure by the EXECUTIVE to substantially perform
      his duties hereunder (other than due to incapacity from physical or mental
      illness) which failure continues after written demand for performance is
      delivered by the Board of Directors to EXECUTIVE specifying the nature of
      such failure and providing a reasonable opportunity for EXECUTIVE to cure
      such failure;
ii.
gross
      misconduct which is or could reasonably be expected to become materially
      injurious to BRAINTECH, including, without limitation, fraud, or
      misappropriation of material Company property or unauthorized and
      intentional disclosure of material confidential
    information;
iii.
material
      dishonesty resulting, or intending to result, directly or indirectly, in
      gain or personal enrichment at the expense of the
  Company.
(b)
"Good
      Reason" shall mean:
i.
any
      material reduction of the titles, duties or responsibilities of the
      EXECUTIVE or assignment of any duties inconsistent with EXECUTIVE's
      position; or
ii.
any
      material adverse change in EXECUTIVE's compensation or benefits including
      but not limited to any failure by BRAINTECH, without EXECUTIVE's consent,
      to pay to EXECUTIVE any portion of his Base Salary or any other earned
      compensation within ten (10) business days of the date such compensation
      is due or other breach by BRAINTECH of any of its obligations
      hereunder;
iii.
any
      material change in the Bonus Plan or EXECUTIVE's compensation
      thereunder;
iv.
any
      requirement for the EXECUTIVE to relocate outside of the McLean, VA
      area;
v.
any
      bad faith by BRAINTECH in dealing with EXECUTIVE or his employment
      conditions.
(c)
Termination By
      BRAINTECH for Good Cause
.  BRAINTECH may terminate the
      employment of the EXECUTIVE without notice (or payment in lieu thereof)
      for Good Cause.  In such event, on the Termination Date
      EXECUTIVE or EXECUTIVE's heirs will be paid all unpaid compensation and
      benefits, allowances and perquisites hereunder up to the Termination Date,
      and EXECUTIVE shall be entitled to keep all Bonus Stock for which the
      milestone conditions have been satisfied, free of all restrictions,
      escrows or other conditions and to all Bonus Stock Options which are
      vested as of such time and such Bonus Stock Options may be exercised at
      any time within twenty-four (24) months of the Termination Date. If
      BRAINTECH terminates EXECUTIVE for Good Cause, he shall not be entitled to
      any further Cash Bonus under Paragraph
8.
(d)
Termination By The
      EXECUTIVE
.  The EXECUTIVE may terminate this Agreement
      for any reason by giving the Board of Directors 30 day's prior written
      notice.  In such event, EXECUTIVE will be paid on the
      Termination Date all unpaid compensation, leave and benefits, allowances
      and perquisites hereunder up to the Termination Date, and EXECUTIVE shall
      be entitled to keep all Bonus Stock for which the milestone conditions
      have been satisfied, free of all restrictions, escrows or other conditions
      and to all Bonus Stock Options which are vested as of such time and such
      Bonus Stock Options may be exercised at any time within twenty-four (24)
      months of the Termination Date.  If EXECUTIVE terminates without
      Good Reason, he shall not be entitled to any further Cash Bonus under
      Paragraph 8.
(e)
Death or Total
      Permanent Disability
.  The total permanent disability or
      death of the EXECUTIVE shall be treated as termination of the EXECUTIVE by
      BRAINTECH without Good Cause. For the purposes of this Agreement, "Total
      Permanent Disability" means any physical or mental incapacity, disease or
      affliction as determined by a legally qualified medical practitioner,
      which prevents the EXECUTIVE from performing his obligations as set out in
      this Agreement and which incapacity persists for a continuous period of
      six months or more.  This provision will also be subject to any
      duty to accommodate or human rights laws imposed by any government
      authority.
(f)
Termination by
      BRAINTECH without Good Cause or by EXECUTIVE for Good
      Reason
.  In the event of a termination of this Agreement
      or EXECUTIVE's employment by the Company without Good Cause, or due to
      Total Permanent Disability or due to the death of the EXECUTIVE, or by the
      EXECUTIVE for Good Reason, then EXECUTIVE or EXECUTIVE's heirs will be
      entitled to and paid on the Termination Date all unpaid compensation,
      leave and benefits, allowances and perquisites hereunder up to the
      Termination Date.  In addition, BRAINTECH shall pay EXECUTIVE or
      EXECUTIVE's heirs, within 10 days after the date of execution of the
      Release (as defined hereinafter), by EXECUTIVE or EXECUTIVE'S heirs, the
      "Severance Pay" (as hereinafter defined), and within 10 days after the
      date of the execution of the Release, BRAINTECH shall provide EXECUTIVE or
      EXECUTIVE's heirs with the Bonus Securities Acceleration (as hereinafter
      defined) notwithstanding anything to the contrary in The Bonus Stock and
      Bonus Stock Option Incentive Plan (Schedule
  "A"):
i.
"Severance
      Pay" shall mean:
1.
a
      lump sum payment (less all deductions selected by EXECUTIVE and required
      by law such as income taxes) equal to two (2) times the EXECUTIVE's
      highest Base Salary during his employment with BRAINTECH;
    and
2.
Continuation
      of all EXECUTIVE's employee benefits and executive family benefits under
      this Agreement for two (2) years after the Termination
    Date.
ii.
"Bonus
      Securities Acceleration" shall
mean:
1.
all
      restrictions, including escrow restrictions, satisfaction of milestones
      and any other restrictions on Bonus Stock issued to the EXECUTIVE will
      cease and the EXECUTIVE will have clear title to all Bonus Stock subject
      to no further restrictions or contingencies and such delivered to
      EXECUTIVE within 10 business days,
and
2.
all
      Bonus Stock Options granted as of the Termination Date will immediately
      vest in the EXECUTIVE (and all milestones shall be deemed satisfied), and
      may be exercised on any date between the Termination Date and a date which
      is 36 months from the Termination Date and such notice sent to EXECUTIVE
      within 10 business days.
iii.
BRAINTECH
      and EXECUTIVE agree that on the Termination Date, EXECUTIVE and BRAINTECH
      shall execute a mutual general release in the form attached hereto as
      Appendix II ("Release"), of any and all claims which BRAINTECH may have
      against EXECUTIVE or which EXECUTIVE may have against BRAINTECH and its
      officers, employees, directors, parents and
  affiliates.
(g)
Change
      in Control.  In the event of a Change in Control (as defined
      herein below), then, in addition to EXECUTIVE's other rights under this
      Agreement and irrespective of whether or not EXECUTIVE's employment is
      terminated, BRAINTECH shall provide EXECUTIVE or EXECUTIVE's heirs with
      the Bonus Securities Acceleration (as defined above in Paragraph
      12(f)).  For the purposes of this Paragraph 12(g), "Change in
      Control" shall mean the first to occur of any one of the following
      events:
i.
Any
      person or group of person (as defined in Paragraph 13(d) and 14(d) of the
      Securities Exchange Act of 1934 ("Exchange Act")) together with its
      affiliates, excluding employee benefit plans of BRAINTECH, is or becomes,
      directly or indirectly, the "beneficial owner" (as defined in Rule 13d-3
      under the Exchange Act) of securities of BRAINTECH representing 33% or
      more of the combined voting power of BRAINTECH's then outstanding
      securities; or
ii.
Rick
      Weidinger ceases to be the CEO of BRAINTECH;
or
iii.
Individuals
      who at the beginning of any two-year period constitute the Board of
      Directors of BRAINTECH, plus new directors of BRAINTECH whose election or
      nomination for election by the shareholders of BRAINTECH is approved a
      vote of at least a majority of the directors of BRAINTECH still in office
      who were directors of BRAINTECH at the beginning of such two-year period,
      cease for any reason during such two-year period to constitute at least a
      majority of the members of the Board of Directors of BRAINTECH, provided
      however that if Rick Weidinger and individuals nominated by him continue
      to constitute at least a majority of the Board of Directors of BRAINTECH,
      then this subparagraph 12(c)(iii) shall not apply;
  or
iv.
The
      shareholders of BRAINTECH approve a merger or consolidation of BRAINTECH
      with any other corporation or entity regardless of which entity is the
      survivor, other than a merger or consolidation which would result in the
      voting securities of BRAINTECH outstanding immediately prior thereto
      continuing to represent (either by remaining outstanding or being
      converted into voting securities of the surviving entity) at least 50% of
      the combined voting power of the voting securities of BRAINTECH, such
      surviving entity or any parent thereof outstanding immediately after such
      merger of consolidation in any single transaction or related series of
      transactions and Rick Weidinger ceases to be the CEO of BRAINTECH;
      or
v.
The
      shareholders of BRAINTECH approve a plan [or the creditors of BRAINTECH
      force such an action] of complete liquidation, foreclosure or winding-up
      of BRAINTECH or an agreement for the sale of disposition by BRAINTECH of
      all or substantially all of BRAINTECH's assets and Rick Weidinger ceases
      to be CEO of Braintech or its successor
company.
13.
CONFIDENTIALITY
:  Unless
      this agreement is publicly filed, EXECUTIVE agrees to keep the terms and
      conditions of this Agreement confidential and BRAINTECH reserves the right
      to terminate the Agreement if the EXECUTIVE publicly discloses any of the
      terms and conditions contained herein without the specific written consent
      of BRAINTECH, other than disclosure by EXECUTIVE to his tax, financial or
      other advisors, which is permitted.  In consideration of the
      execution of this Agreement, the EXECUTIVE shall execute a Non-disclosure
      and Confidentiality Agreement, in the form provided by BRAINTECH, with
      respect to, BRAINTECH, Inc., and any subsidiaries and affiliates thereof.
      Any information deemed necessary by BRAINTECH counsel to require public
      filing stands as allowable exception to this
  clause.
14.
BEST
      EFFORTS
:  The EXECUTIVE will, at all times, faithfully,
      industriously and to the best of his or her ability, experience and
      talents, perform the Services provided herein or any other duties required
      of or from him or her pursuant to the express terms set forth in this
      Agreement, to the reasonable satisfaction of the Board of
      Directors.
15.
OUTSIDE CONSULTATION
      ACTIVITIES
:  The EXECUTIVE may, with Board of Directors
      approval, serve as a consultant related to prior investment entities and
      receive payment and reimbursement of expenses and/or fees for consultation
      services at no expense to the BRAINTECH.  Prior to engaging in
      these activities, the EXECUTIVE will notify the Board of Directors in
      writing of the activity.  The Board of Directors will notify the
      EXECUTIVE if the activity presents a conflict or interferes with the
      performance of his duties.
16.
SUCCESSORS; BINDING
      AGREEMENT
:  BRAINTECH shall require any
      successor;
(a)
whether
      direct or indirect, by purchase, merger, consolidation or otherwise to all
      or substantially all of the business and/or assets of BRAINTECH to
      expressly assume and agree to perform this Agreement in the same manner
      and to the same extent that BRAINTECH would be required to perform it if
      no such succession had taken place.  BRAINTECH as hereinbefore
      defined, includes BRAINTECH and any successor to its business and/or
      assets or which otherwise becomes bound by all the terms and provisions of
      this Agreement by operation of law.
(b)
This
      Agreement and all rights of the EXECUTIVE hereunder shall inure to the
      benefit of and be enforceable by the EXECUTIVE'S personal or legal
      representatives, executors, administrators, successors, heirs,
      distributees, devisees and legatees.  If the EXECUTIVE should
      die while any amounts are payable to him hereunder all such amounts unless
      otherwise provided herein, shall be paid in accordance with the terms of
      this Agreement to the Executive's devisee, legatee, or other designee or,
      if there be no such designee, to the Executive's
  estate.
17.
SEVERABILITY
.  Should
      any of the provisions of this Agreement be determined to be invalid or
      unenforceable by a court, governmental agency, or arbitrator of competent
      jurisdiction, such determination shall not affect the enforceability of
      the other provisions.
18.
GOVERNING
      LAW
:   This Agreement shall be governed by and
      construed in accordance with the domestic laws of the State of Delaware
      without giving effect to any choice of law or conflict of law provision or
      rule (whether of Delaware, or any other jurisdiction) that would cause the
      application of the laws of any jurisdiction other than the State of
      Delaware.
19.
PARAGRAPH
      HEADINGS
:  The titles to the paragraphs of this Agreement
      are solely for the convenience of the parties and shall not be used to
      explain, modify, simplify, or aid in the interpretation of the provisions
      of this Agreement.
20.
COMPLETE
      AGREEMENT
:  This Agreement contains the complete
      agreement concerning the employment arrangement between the parties and
      shall, as of the effective date hereof, supersede all other agreements
      between the parties.  The parties stipulate that neither of them
      has made any representation with respect to the subject matter of this
      Agreement or any representation including the execution and delivery of
      this Agreement except such representations as are specifically set forth
      in this Agreement and each of the Parties acknowledges that he or it has
      relied on its own judgment in entering into this
  Agreement.
21.
INDEMNIFICATION
:  BRAINTECH
      shall indemnify EXECUTIVE against any and all expenses, including amounts
      paid upon judgments, attorney and counsel fees, environmental penalties
      and fines, and amounts paid in settlement (before or after suit is
      commenced), incurred by the EXECUTIVE in connection with his defense or
      settlement of any claim, action, suit or proceeding in which he is made a
      party or which may be asserted against him by reason of his employment or
      the performance of duties in this Agreement. Such indemnification shall be
      in addition to any other rights to which those indemnified may be entitled
      under any law, under insurance, by law agreement, or otherwise. Any and
      all legal fees and costs incurred by the EXECUTIVE shall be paid currently
      and as due by the Company.  Effective as of the Effective Date
      and remaining in force throughout EXECUTIVE's employment with BRAINTECH
      and with reasonable 24 month tail coverage thereafter, BRAINTECH shall
      maintain in force a directors and officers insurance liability policy
      covering EXECUTIVE for all of his roles with BRAINTECH, and such policy
      shall be with an insurance provider reasonably satisfactory to EXECUTIVE,
      and shall have policy limits reasonably satisfactory to EXECUTIVE and
      shall have other characteristics reasonably satisfactory to
      EXECUTIVE.
IN
WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE EFFECTIVE
DATE.
BRAINTECH,
Inc.
Per:  ____________________________
Board
of Directors
FREDERICK
WEIDINGER
Per:  ____________________________
Frederick
Weidinger
Appendix
I
BONUS
SECURITIES COMPENSATION STRUCTURE
This
Appendix details the Bonus & Incentive Compensation the EXECUTIVE will be
entitled to as described in Paragraph 7 of the Employment Agreement (the
"Agreement") between the EXECUTIVE and BRAINTECH dated as of January 1,
2009.
Bonus
Stock grants and Bonus Stock Option grants (the "Bonus Securities") are subject
to the terms and conditions of the Bonus Stock and Bonus Stock Option Incentive
Plan (the "Bonus Plan"), attached hereto as Schedule 1 or such other plan or
plans implemented by the Company.  Whenever the Common Stock of
BRAINTECH is publicly traded, BRAINTECH will maintain an effective registration
statement for the Bonus Securities with the U.S. Securities and Exchange
Commission and other applicable authorities so that the Bonus Stock may be sold
in the open market if EXECUTIVE so desires.
Each of
the share certificates for any Bonus Stock grants subject to Milestones will be
issued effective as of the Effective Date within 20 days thereafter but shall be
held by BRAINTECH until vesting, at which time they will be immediately
delivered to EXECUTIVE.  For the avoidance of doubt, each Milestone
shall apply only to the tranche of Bonus Stock to which it expressly applies,
and no Milestone shall apply to any other provision of this
Agreement.
Milestone
      1
:  Successful refinance, roll-over, extension, refinance
      or restructure of the RBC Loan Facility. On achievement of Milestone 1,
      5,000,000 shares of EXECUTIVE's Bonus Stock will
  vest.
Milestone
      2
:
Attainment
      of minimum revenue for 2009 for BRAINTECH in the amount of
      $2,500,000.  On Achievement of Milestone 1, 3,000,000
      shares of EXECUTIVE's Bonus Stock will vest. BRAINTECH and EXECUTIVE have
      agreed to measure this goal from the level of the 12 months trailing
      rolling period beginning in 2009.
Milestone
      3
:
Attainment
      of minimum revenue for 2010 for BRAINTECH in the amount of
      $4,500,000.  On achievement of Milestone 3, 2,500,000 shares of
      EXECUTIVE's Bonus Stock will vest. BRAINTECH and EXECUTIVE have agreed to
      measure this goal from the level of the 12 months trailing rolling period
      beginning in 2010.
Milestone
      4
:  Attainment of minimum revenue for 2011 for
      BRAINTECH  in the amount of $7,000,000.  On
      achievement of Milestone 4, 2,500,000 shares of
EXECUTIVE's Bonus Stock
      will vest. BRAINTECH and EXECUTIVE have agreed to measure this goal from
      the level of the 12 months trailing rolling period beginning in
      2011.
In
addition to the vesting of the applicable Bonus Securities that will occur on
achievement of the applicable Milestone set forth above, recognizing that the
corporate goals may change quickly in a small company, vesting of applicable
Bonus Securities shall also occur if the Board of Directors decides to award the
Bonus Stock associated with each Milestone based on other achievements of the
EXECUTIVE which in the judgment of the Board of Directors are as important to
BRAINTECH as to the applicable Milestone(s), notwithstanding the specificity of
each Milestone set forth above,
Notwithstanding
the foregoing Milestones and vesting schedule, all unvested Bonus Stock and
Bonus Stock Options shall immediately vest upon the occurrence of the following
event:
If any
third party [or parties] shall invest at least $2,000,000 in the Company in
exchange for equity or any instrument convertible into equity [could be a debt
instrument that has equity warrants or options attached].
INCENTIVE
      BONUS SUMMARY
Bonus Stock
Milestone 1
5,000,000
Milestone 2
3,000,000
Milestone 3
2,500,000
Milestone 4
2,500,000
Total
13,000,000
SCHEDULE
1 TO EMPLOYMENT AGREEMENT
Bonus Stock and Bonus Stock
Option Incentive Plan
(the
"Bonus Plan")
1.
PURPOSE
      OF THE BONUS PLAN
1.1
The
      purpose of this Bonus Plan is to strengthen Braintech, Inc. (the
      "Company") by rewarding its directors and key employees (collectively
      referred to as the "Participants") for high levels of performance and
      extraordinary efforts resulting in an increase in the development of the
      Company and the sales and earnings of the Company.  The Bonus
      Plan provides for the issuance of common stock of the Company ("Bonus
      Stock") and options to acquire common stock of the Company ("Bonus Stock
      Options") to the Participants upon the Company reaching certain
      identifiable milestones (the "Milestones") in its business plan, and is
      intended to reward the Participants for their unique expertise and
      experience in achieving these Milestones.  Bonus Stock and Bonus
      Stock Options are hereinafter collectively referred to as "Bonus
      Securities".
1.2.
The
      Company believes that, from a corporate governance perspective, it is more
      appropriate to provide a reward mechanism of this nature than to provide
      incentive to insiders exclusively in the form of stock options, since the
      Company's share price can vary in accordance with a range of external
      factors not related to the performance of management and key
      employees.
2.
ADMINISTRATION
      OF THE BONUS PLAN
2.1.
Administration
.
This Bonus
      Plan will be administered by the
Chief Executive Officer (the "CEO") of the Company
      who shall make recommendations to the Compensation Committee (the
      "Committee") of the
Board of Directors of the Company (the
      "Board")
with regard to awards of Bonus
      Securities and the related terms and conditions. The Board will establish
      the initial targets and parameters for the issuance of such Bonus
      Securities that may serve as guidelines to the CEO.  Upon
      approval of the Committee of any such CEO award recommendations, such
      recommendations shall be final unless such awards are outside the
      established Board targets in which case the Board must approve the final
      recommended award.
Any such action of
      the Board with respect to
such final
      approval
will be taken pursuant to a majority vote, or to the
      written consent of a majority of its
members.
2.2
Authority.
Subject
      to the express provisions of the Bonus Plan, the CEO will have the
      authority to construe and interpret the Bonus Plan and to define the terms
      used herein and to prescribe, amend and rescind the rules and regulations
      relating to the administration of the Bonus Plan.  The
      determination of the CEO on the foregoing matters will be conclusive
.
The CEO shall not have the authority to make any
      change or amendment to the Bonus Plan that would affect any Participant to
      the extent that the Participant is a party to an employment agreement with
      the Company that requires the Participant's consent to such change or
      amendment
.
3.
PARTICIPATION
3.1
Eligibility.
Directors
      and key employees of the Company shall be eligible for selection by the
      CEO to participate in the Bonus Plan.  An individual who has
      been granted Bonus Securities may, if otherwise eligible, be granted
      additional Bonus Securities if the CEO shall so
  determine.
3.2
Time of Granting of
      Bonus Securities.
The granting of Bonus Securities
      pursuant to this Bonus Plan will take place at the time
specified in any employment agreement or any other
      written agreement between the Company and the Participant.  The
      granting of Bonus Securities may be subject to certain Milestones agreed
      upon in writing between the Company and the Participant.
In the event that Bonus Securities,
      subject to Milestones, are granted prior to the time that the Milestones
      have been achieved then, until such time as the Milestones have been
      achieved, such Bonus Securities shall be subject to escrow restrictions as
      set forth in Section 7.2.
4.
STOCK
      SUBJECT TO THE BONUS PLAN
4.1
Subject
      to the adjustments as provided in Article 9 of this Bonus Plan, the stock
      to be offered under this Bonus Plan will be shares of the Company's
      authorized but unissued common stock, including re-acquired common stock
      or common stock previously issued but cancelled.  The aggregate
      amount of shares that may be issued under the Bonus Plan will not exceed
      30 million (30,000,000) shares.  The aggregate amount of shares
      to be issued as Bonus Stock will not exceed 20 million (20,000,000) shares
      and the aggregate amount of shares to be issued pursuant to the exercise
      of Bonus Stock Options will not exceed 10 million (10,000,000)
      shares.
5.
MILESTONES
5.1
Performance
      Milestones will be determined by the Company and included in any
      employment agreement or any other written agreement between the Company
      and the Participant.  Each Milestone will be subject to a time
      restriction for achieving that Milestone.  Bonus Stock Options
      granted will be subject to the provision of Section 6 and Bonus Stock
      granted will be subject to the provision of Section
  7
6.
PROVISIONS
      RELATING TO THE STOCK OPTIONS
6.1
Option
      Price
.  The purchase price of stock covered by each Bonus
      Stock Option will be determined by the CEO taking into consideration the
      market value of the
underlying shares
on the date of grant.  The purchase price of any stock purchased
      will be paid in full by bank draft or by certified cheque at the time of
      each purchase, or will be paid in such other manner as the CEO may
      determine in compliance with applicable laws.
6.2
Option
      Period.
Each Bonus Stock Option and all rights or
      obligations thereunder will expire on the fifth (5th) anniversary of the
      date on which the Bonus Stock Option is granted or on such other date as
      the CEO may determine or the Company may have agreed to contractually,
      subject to earlier termination as hereinafter
  provide.
6.3
Privileges of Stock
      Ownership
.  The holder of a Bonus Stock Option pursuant
      to this Bonus Plan will not be entitled to the privileges of stock
      ownership as to any shares of stock not actually issued and delivered to
      him.
6.4
Exercise of
      Option
.  Each Bonus Stock Option may be exercised in
      accordance with its terms and the total number of shares subject thereto
      may be purchased, in instalments, which need not be equal.  No
      Bonus Stock Option or instalment thereof will be exercisable except in
      respect to whole shares, and fractional share interests will be
      disregarded.
6.5
Agreement to Remain in
      Employ of Company.
Each individual to whom a Bonus Stock
      Option is granted is not required to remain in the employ of the Company
      following the date of the grant of the Bonus Stock
      Option.  Nothing contained in this Bonus Plan, or in any Bonus
      Stock Option granted pursuant to this Bonus Plan, will confer upon any
      individual any right to continue in the employ of the Company or
      constitute any contract or agreement of employment or interfere in any way
      with the right of the Company to reduce such individual's compensation
      from the rate in existence at the time of the granting of a Bonus Stock
      Option or to terminate such individual's employment, but nothing contained
      herein or in any Bonus Stock Option agreement will affect any contractual
      rights of an individual.
6.6
Death of an
      Individual.
If any Bonus Stock Option holder dies while employed by
      the Company, such holder's Bonus Stock Option will, subject to earlier
      termination pursuant to Section 6.2, expire two years (2) years after the
      date of such death, and during such period after such death such Bonus
      Stock Option may, to the extent that the holder may have exercised the
      Bonus Stock Option if alive during such period, be exercised by the person
      or persons to whom the Bonus Stock Options holder's rights under the Bonus
      Stock Option will pass by will or by the applicable laws of descent and
      distribution.
6.7
Termination
.  Subject
      to Section 6.6 and earlier termination pursuant to Section 6.2, if the
      holder of a Bonus Stock Option resigns or ceases to be employed by the
      Company for any reason other than death, such holder's Bonus Stock Option
      will expire and become null and void thirty (30) days after the holder
      ceases to be a director or key employee of the Company or on such other
      date as the Committee may determine or the Company may have agreed to
      contractually.  During such period, the Bonus Stock Option will
      be exercisable only to the extent the holder could have exercised the
      Bonus Stock Option at the date the holder ceased to be a director or key
      employee of the Company.
6.8
Non-transferability of
      Stock Options.
A Bonus Stock Option granted under this
      Bonus Plan will, by its terms, be non-transferable by the Bonus Stock
      Option holder other than by will or by the laws of descent and
      distribution and will be exercisable during his lifetime only by the Bonus
      Stock Option holder [or heirs].
7.
PROVISIONS
      RELATING TO BONUS STOCK
7.1
The
      Company will issue share certificates in the names of the Participants in
      accordance with the terms of any employment agreement or any other written
      agreement between the Company and the Participant in the amounts detailed
      in such agreements and the Participant will purchase the shares for the
      purchase price of $0.01 per share.
7.2
Each
      of the share certificates
for any shares
      subject to Milestones
will be held in escrow by a third party
      escrow agent until such time as the individual Milestones have been met or
      until the time restriction for achieving the individual Milestones has
      elapsed.  On notification by the Company that an individual
      Milestone has been met, the third party escrow agent will deliver the
      share certificate to the appropriate
  Participant.
7.3
In
      the event that an individual Milestone has not been achieved within the
      time restriction for achieving that Milestone, the Company will purchase
      the share certificate from the Participant for the purchase price of $0.01
      per share.
8.
COMPLIANCE
      WITH SECURITIES LAWS
8.1
Shares
      will not be issued pursuant to the grant of Bonus Stock or the exercise of
      a Bonus Stock Option unless the grant of Bonus Stock and the exercise of
      such Bonus Stock Option and the issuance and delivery of such shares
      pursuant thereto will comply with all relevant provisions of law,
      including, without limitation, the Securities Act of 1933, as amended, the
      Securities Exchange Act of 1934, the rules and regulations promulgated
      there under, and the requirements of any Stock
  Exchange.
8.2.
As
      a condition to the grant of Bonus Stock or the exercise of a Bonus Stock
      Option, the Company may require the recipient to represent and warrant at
      the time of any such grant or exercise that the shares received or
      purchased are being received or purchased only for investment and without
      any present intention to sell or distribute such shares if, in the opinion
      of counsel for the Company, such a representation is required by
      law.
8.3
Further,
      the Company will have no liability whatsoever (including, but not
      restricted to, alternate compensation) to the holder of a Bonus Stock
      Option if a change in the exercise price or a change in the terms and
      provisions of a Bonus Stock Option and/or this Bonus Plan hereof is
      required pursuant to any applicable
laws.
8.4
The
      Company and any party to this Bonus Plan will comply with all relevant
      provisions of law relating to this Bonus Plan and any Bonus Stock or Bonus
      Stock Option granted hereunder.
9.
ADJUSTMENTS
      UPON CHANGES IN CAPITALIZATION
9.1
Corporate
      Reorganizations
.  If the outstanding shares of the stock
      of the Company are increased, decreased or changed into, or exchanged for,
      a different number or kind of shares or securities of the Company through
      reorganization, recapitalization, reclassification, stock split, stock
      dividend, stock consolidation, or merger as a result of which the Company
      is the surviving corporation, or otherwise, an appropriate and
      proportionate adjustment will be made in the number and kind of shares as
      to which Bonus Securities may be granted.  A corresponding
      adjustment changing the number of Bonus Stock allocated but not issued,
      which will have been allocated prior to any such change, will likewise be
      made.  A corresponding adjustment changing the number of shares
      and the exercise price per share allocated to unexercised Stock Options or
      portions thereof, which will have been granted prior to any such change,
      will likewise be made.  Any such adjustment, however, in an
      outstanding Bonus Stock Option will be made without change in the total
      price applicable to the unexercised portion of the Bonus Stock Option but
      with a corresponding adjustment in the price for each share covered by the
      Bonus Stock Option.
9.2
Dissolution,
      Liquidation.
Upon the dissolution or liquidation of the
      Company, or upon reorganization, merger or consolidation of the Company
      with one or more corporations as a result of which the Company is not the
      surviving corporation, or upon the sale of substantially all of the
      property of the Company to another corporation,
unless all of the obligations of
this Bonus
      Plan
have been assumed by a successor entity, holders
      of Bonus Securities shall be treated, for purposes of such dissolution,
      liquidation, reorganization, merger or consolidation as holding fully
      vested and unrestricted shares of Common Stock of the Company and,
      accordingly, be treated the same as other holders of Common Stock.
10.
INCOME
      TAX LAWS
10.1
The
      Company and all Participants will comply with all applicable income tax
      laws and other tax laws (e.g. any withholding tax or similar
      obligations).
11.
AMENDMENT
      AND TERMINATION
11.1
The
      Board may at any time suspend, amend or terminate this Bonus Plan as the
      Board, in its own discretion, sees fit.  No Bonus Stock may be
      issued and no Bonus Stock Option may be granted during any suspension of
      the Bonus Plan or after such termination.  The amendment,
      suspension or termination of the Bonus Plan will not, without the consent
      of Bonus Stock Option holder, alter or impair any rights or obligations
      under any Bonus Stock Option theretofore granted under the Bonus
      Plan.
11.2
Unless
      terminated sooner by the Board of Directors, this Bonus Plan will
      terminate at the close of business on October 22,
  2017.
This
Bonus Plan was approved and confirmed at a Meeting of the Board of Directors of
Braintech, Inc. held October 22, 2007.
APPENDIX
II
MUTUAL
GENERAL RELEASE AGREEMENT
This Mutual General Release Agreement
("Release") is entered into as of ________________________ ("Termination Date")
by and between Frederick W. Weidinger, an individual ("Executive") and
Braintech, Inc. and its subsidiaries (collectively, "Braintech") in connection
with the Employment Agreement dated as of November 4, 2008 between Executive and
Braintech ("Agreement").  (Each of Executive and Braintech may be
hereinafter referred to as a "Party" and collectively as "the
Parties.")
WHEREAS, Executive's employment is
being terminated without Good Cause by Braintech or by Executive for Good Reason
under the Agreement;
NOW THEREFORE, in consideration of the
mutual promises and releases contained in this Release and in exchange for the
Severance Pay and Bonus Securities Accelerations described in the Agreement (for
purposes of this Release, "Severance Pay" and "Bonus Securities Accelerations"
shall have the meaning assigned to them in the Agreement) and for other good and
valuable consideration, the sufficiency of which is hereby acknowledged, the
Parties agree as follows:
1.
Executive's
      employment is terminated without Good Cause effective as of the
      Termination Date.
2.
Within
      10 days after the execution of this Release, Braintech will pay Executive
      the Severance Pay and provide Executive with the Bonus Securities
      Accelerations.
3.
Consideration and
      Revocation Periods; Effective Date
.  Executive
      acknowledges that he has 21 days in which to consider whether to sign this
      Release and the opportunity to have it reviewed by counsel, but that he is
      free to sign the Release before the expiration of the 21-day period if he
      so chooses.  Executive's signature on this Release constitutes
      an express waiver of the 21-day period if he signs it before that period
      expires.  Braintech's offer of the Severance Pay and Bonus
      Securities Accelerations is automatically revoked if Executive has not
      signed this Release and delivered it to Braintech's CEO or his designee
      within this 21-day period.  If Executive timely signs and
      delivers this Release, he will have seven days following the date on which
      he signed and delivered this Release to revoke it.  This Release
      shall not be effective or enforceable, nor will any payment of the
      Severance Pay and Bonus Securities Accelerations be paid or made available
      to Executive, until the seven-day revocation period has
      expired.  Executive agrees that in order for this revocation to
      be effective, the revocation must be delivered, in writing, to Braintech's
      CEO or his designee before the seven-day revocation period has
      expired.  If no such revocation occurs, this Release shall
      become effective on the eighth day after Executive signs and delivers this
      Release to Braintech's CEO or his designee ("the Effective
      Date").
4.
Severance Pay and
      Bonus Securities Accelerations
.  In consideration for
      Executive's promises and undertakings set forth in this Release, Braintech
      agrees to give Executive the Severance Pay and Bonus Securities
      Accelerations.  The Parties intend and agree that the payments
      and benefits described in this Paragraph qualify for exemption from, or
      comply with the requirements of, Section 409A of the Internal Revenue Code
      of 1986, as amended, and that, except for appropriate tax withholdings and
      reporting and other obligations of Braintech, Executive shall be solely
      responsible for the tax consequences to Executive of such payments and
      benefits.  Executive represents and warrants that he has consulted
      any tax consultants he deems advisable in connection with the payments and
      benefits described in this Paragraph and that he is not relying on
      Braintech or its employees, officers, directors, attorneys or accountants
      for any tax advice.
5.
General Release of
      Claims
.
a)
Executive,
      on behalf of himself, and his heirs, representatives, and assigns, hereby
      waives and fully releases, to the fullest extent permitted by applicable
      law, Braintech and its current and former owners, partners, directors,
      officers, shareholders, employees, agents, employee benefit plans, benefit
      plan administrators and fiduciaries, insurers, attorneys, affiliates,
      subsidiaries, parents, successors, predecessors and assigns, and any other
      persons or entities acting by, through, under, or in concert with any of
      such aforementioned persons or entities (collectively "Releasees") from
      any and all complaints, claims, demands, suits and actions, whether in law
      or in equity, that Executive may have or could assert against them, based
      upon events occurring before Executive's execution of this Release,
      whether these events are now known or unknown, at common law or under any
      statute or regulation, whether federal, state or local, on any ground
      whatsoever, known or unknown, asserted or unasserted, arising out of or in
      any way relating to Executive's employment with Braintech and the
      separation thereof, including, but not limited to, claims for breach of
      contract, the covenant of good faith and fair dealing, wrongful
      termination/constructive discharge, defamation, intentional or negligent
      infliction of emotional distress, fraud, negligence, invasion of privacy,
      and all other torts, and claims arising under any statute, including, but
      not limited to, Title VII of the Civil Rights Act of 1964, the Civil
      Rights Act of 1991, the Labor Management Relations Act, the National Labor
      Relations Act, the Employee Retirement and Income Security Act, the
      Americans With Disabilities Act, the Age Discrimination in Employment Act
      of 1967, the Federal Rehabilitation Act of 1973, 42 U.S.C. section 1981,
      the Virginia Human Rights Act, and any and all other laws and regulations
      related to employment, termination, employment discrimination or
      retaliation, wages, hours, compensation, benefits, and any and all claims
      for attorneys' fees and costs.  Notwithstanding the foregoing,
      this release does not cover any claims that cannot be waived by law, any
      claims for vested benefits under Braintech's benefit plans, or any rights
      to enforce or challenge the validity of this Release.  Nor does
      this release preclude Executive from filing a charge with the Equal
      Employment Opportunity Commission or any other governmental administrative
      agency; Executive, however, is waiving his right to any monetary recovery
      should the Equal Employment Opportunity Commission or any other
      governmental administrative agency pursue any claims on his
      behalf.
b)
Braintech,
      on behalf of itself, and its current and former owners, partners,
      directors, officers, shareholders, employees, agents, employee benefit
      plans, benefit plan administrators and fiduciaries, insurers, attorneys,
      affiliates, subsidiaries, parents, successors, predecessors and assigns,
      and any other persons or entities acting by, through, under, or in concert
      with any of such aforementioned persons or entities (collectively
      "Releasors") hereby waives and fully releases, to the fullest extent
      permitted by applicable law, Executive and his heirs, representatives, and
      assigns, from any and all complaints, claims, demands, suits and actions,
      whether in law or in equity, that Releasors may have or could assert
      against them, based upon events occurring before Executive's execution of
      this Release, whether these events are now known or unknown, at common law
      or under any statute or regulation, whether federal, state or local, on
      any ground whatsoever, known or unknown, asserted or unasserted, arising
      out of or in any way relating to Executive's employment with Braintech and
      any and all claims for attorneys' fees and
  costs.
6.
Acknowledgements and
      Representations
.
a)
Executive
      acknowledges, agrees and represents that: (i) Braintech is not required to
      pay the Severance Pay and provide the Bonus Securities Accelerations
      unless Executive signs this Release; (ii) Executive has received all other
      compensation, wages, bonuses, leave and other benefits to which he is
      entitled, except for (A) previously submitted but unreimbursed expenses
      which are detailed on an attachment hereto and (B) expenses for which
      Executive is entitled to reimbursement under the Agreement for periods up
      to the Termination Date but which have not yet been submitted to
      Braintech; (iii) he has not suffered any on-the-job injury for which he
      has not already filed a workers' compensation claim; (iv) nothing
      contained in this Release shall constitute or be treated as an admission
      of liability or wrongdoing by Braintech or its officers, directors,
      employees or agents; (v) he is unaware of any right or claim that he may
      have against Braintech or its directors, officers, employees or agents
      that has not been released in this Release; and (vi) he has the sole right
      and authority to execute this Release, and has not sold, assigned or
      transferred any rights or claims surrendered by virtue of this
      Release.
b)
Braintech
      acknowledges, agrees and represents that: (i) nothing contained in this
      Release shall constitute or be treated as an admission of liability or
      wrongdoing by Executive; (ii) it is unaware of any right or claim that it
      may have against Executive; and (iii) it has the sole right and authority
      to execute this Release, and has not sold, assigned or transferred any
      rights or claims surrendered by virtue of this
  Release.
7.
Severability
.  Should
      any of the provisions of this Release be determined to be invalid or
      unenforceable by a court, governmental agency, or arbitrator of competent
      jurisdiction, such determination shall not affect the enforceability of
      the other provisions.
8.
Governing
      Law
:   This Release shall be governed by and
      construed in accordance with the domestic laws of the State of Delaware
      without giving effect to any choice of law or conflict of law provision or
      rule (whether of Delaware, Province of British Columbia or any other
      jurisdiction) that would cause the application of the laws of any
      jurisdiction other than the State of
Delaware.
9.
Interpretation,
      Completeness, Modification
.  This Release shall be
      interpreted in accordance with the plain meaning of its terms and not
      strictly for or against either of the Parties hereto.  This
      Release supersedes any and all other agreements or understandings, whether
      oral, implied, or in writing, between the Parties with respect to the
      subject matters hereof and contains all of the covenants and agreements
      between them with respect to such matters in their entirety.  No
      representations, inducements, promises or agreements have been made by the
      Parties that are not embodied herein, and no other agreement, statement or
      promise not contained in this Release shall be valid or
      binding.  Any modification to this Release will be effective
      only if it is in writing and signed by the Parties
  hereto.
10.
Additional
      Warranties
.  Each Party expressly warrants that: (a) it
      has carefully read and fully understands all the provisions of this
      Release; (b) it understands that through this Release it is releasing the
      other Party from any and all claims it may have against it; (c) it is
      signing this Release knowingly and voluntarily, free from any duress or
      coercion; and (d) it has been (and hereby is) advised to consult with an
      attorney of its own choosing in deciding whether to sign this
      Release.
IN
WITNESS WHEREOF, the Parties have executed this Release as of the Termination
Date.
BRAINTECH,
Inc.
Per: ______________________
FREDERICK
WEIDINGER
Per:
______________________
Frederick Weidinger