v v v I r I P , ! ! , Y ' . ' v .

Toronto, Onti

MBZ I

Of f iceo f The Presiden&l C

Telephon(e4 16 ) 207-6511 Fax( 416 ) 237-9(

January 26, 1996

Dr. Michael Moles

Principal Research Engineer

Ontario Hydro Technologies

This is to confirm the offer I made to you at our meeting of January 24, 1996, regarding

Allegations you have made over the past two years of improprieties within the Metallurgical Department of the old Research Division. Specifically, I offered to suspend the disciplinary process on the condition that you gave me your word that you would cease and desist all actions related to these allegations. In other words, this issue is at an end. You were allowed to the end of the working day to give me this assurance.

Failure to do so would result in the disciplinary action I pointed out to you, and your counsel, Mr. Jeff Berg of the Society.

I also informed you that, should you give me your assurance that you would cease and

desist all actions on this matter, and then later renege, I would seek your dismissal from

Ontario Hydro Technologies.

On January2 5, 1996, I received your assurance by E-mail , which you sent late in the

Afternoon of January 24,1996. I am pleased that you made this decision.

Subsequent to receiving your E-mail, I contacted Jeff Berg to discuss the item you raised in your E-mail regarding removal of references to this issue from your personnel file. In

a three-way discussion with Jeff and Phil Wong we agreed that we would separate

references to this issue from your main file for the purposes of not negatively impacting on your ability to seek career opportunities. However, it must be clearly understood that

management retains the right to rely on these references i f in its view you fail to live up to the assurances you gave me.

D. Cornthwaite

President CEO

Ontario Hydro Technologies

L. E. Leonoff

P. Wong

J. Berg

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