in support of the defendant.
     2
       Balles joined the conglomerate that would become Babcock
Power Inc. (Babcock or company) in 2001, when he became the
senior vice-president of technology development for Babcock
Borsig Power, Inc. (Borsig). In 2002, Borsig combined with
several other affiliated companies to form a new entity,
Babcock.
     3
       At all times relevant to this dispute, prior to his
termination, Balles served as an executive of various
subsidiaries of Babcock.
     4
       Balles entered into the stockholders' agreement partially
in consideration for relinquishing his rights in Borsig.
                 the summer of 2008, Balles began an intimate

extramarital relationship with the female subordinate, which

continued through his termination in 2010.   The pair pursued

their relationship on business trips funded by Babcock, and

exchanged sexually explicit text messages on their personal

cellular telephones.   Balles uploaded, downloaded, and saved

photographs of the female subordinate, some depicting sexual

content, on his Babcock-issued laptop computer.5   To conceal his

relationship with the female subordinate from Babcock, Balles

falsified the details of at least one travel reimbursement

request, but did not intentionally claim any fiscal

reimbursement from Babcock to which he was not entitled under

company policy.6

     On August 30, 2010, Michael LeClair, the president and

chief executive officer of Babcock, learned of the relationship

between Balles and the female subordinate.   Soon thereafter, Jim

Dougherty, president