Document:

RETENTION AGREEMENT

  
 EXHIBIT 10.37 
  
 Network Engines, Inc. 
  
 Executive Retention
Agreement 
  
 THIS EXECUTIVE RETENTION AGREEMENT by and between Network Engines, Inc., a Delaware corporation (the
“Company”), and John H. Curtis (the “Executive”) is made as of April 12, 2002 (the “Effective Date”). 
  
 WHEREAS, the Company recognizes that, as is the case with many publicly-held corporations, various business uncertainties may arise from time to time and that such possibility, and the concerns and questions which it may
raise among key personnel, may result in the departure or distraction of key personnel to the detriment of the Company and its stockholders, 
  
 WHEREAS, the Board of Directors of the Company (the “Board”) has determined that appropriate steps should be taken to reinforce and encourage the continued employment and dedication of the
Company’s key personnel without distraction from such uncertainties, including the possibility of a change in control of the Company and related events and circumstances, 
  
 WHEREAS, the Company and the Executive are party to an Employment Agreement, dated March 21, 2001 (the “Employment Agreement”), and 
  
 WHEREAS, it is the intention of the parties that the Executive be provided with the benefits of this Agreement and the Employment
Agreement, but that he not receive duplicative benefits under both such agreements (particularly under Section 4 hereof). 
  
 NOW, THEREFORE, as an inducement for and in consideration of the Executive remaining in its employ, the Company agrees that the Executive shall receive the severance benefits set forth in this Agreement in the event the
Executive’s employment with the Company is terminated under the circumstances described below, whether before or after a Change in Control (as defined in Section 1.1). 
  
 1.    Key Definitions. 
  
 As used herein, the following terms shall have the following respective meanings: 
  
 1.1    “Change in Control” means an event or occurrence set forth in any one or more of subsections (a) through (d) below (including an event or occurrence that
constitutes a Change in Control under one of such subsections but is specifically exempted from another such subsection): 
  
 (a)    the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the 

 
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 “Exchange Act”)) (a “Person”) of beneficial ownership of any
capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 30% or more of either (x) the then-outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that for purposes of this subsection (a), the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the Company (excluding an acquisition pursuant to the exercise, conversion or
exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the Person exercising, converting or exchanging such security acquired such security directly from the Company or
an underwriter or agent of the Company), (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (iv) any
acquisition by any corporation pursuant to a transaction which complies with clauses (i) and (ii) of subsection (c) of this Section 1.1; or 
  
 (b)    such time as the Continuing Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of Directors of a successor corporation to
the Company), where the term “Continuing Director” means at any date a member of the Board (i) who was a member of the Board on the date of the execution of this Agreement or (ii) who was nominated or elected subsequent to such date by at
least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time
of such nomination or election; provided, however, that there shall be excluded from this clause (ii) any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or 
  
 (c)    the consummation of a merger, consolidation, reorganization, recapitalization or statutory share exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company in one or a series of transactions (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (i) all or
substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring
corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more
subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, respectively; and (ii) no Person (excluding the Acquiring Corporation or any employee benefit plan (or related trust) maintained or sponsored 

 
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 by the Company or by the Acquiring Corporation) beneficially owns, directly or
indirectly, 30% or more of the then outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors
(except to the extent that such ownership existed prior to the Business Combination); or 
  
 (d)    approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
  
 1.2    “Change in Control Date” means the first date during the Term (as defined in Section 2) on which a Change in Control occurs. Anything in this Agreement to
the contrary notwithstanding, if (a) a Change in Control occurs, (b) the Executive’s employment with the Company is terminated prior to the date on which the Change in Control occurs, and (c) it is reasonably demonstrated by the Executive that
such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or in anticipation of a Change in Control, then for purposes of
this Agreement the “Change in Control Date” shall mean the date immediately prior to the date of such termination of employment. 
  
 1.3    “Cause” means: 
  
 (a)    the Executive’s failure to substantially perform his assigned duties (other than any such failure resulting from incapacity due to physical or mental illness or any failure after the Executive gives
notice of termination for Good Reason), which failure is not cured within 20 days after a written demand for substantial performance is received by the Executive from the Board of Directors of the Company which specifically identifies the manner in
which the Board of Directors believes the Executive has not substantially performed the Executive’s duties; or 
  
 (b)    the Executive’s engagement in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company. 
  
 1.4    “Good Reason” means the occurrence, without the Executive’s written consent, of any of the events or
circumstances set forth in clauses (a) through (e) below. Notwithstanding the occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute Good Reason if, prior to the Date of Termination specified in the Notice of
Termination (each as defined in Section 3.2(a)) given by the Executive in respect thereof, such event or circumstance has been fully corrected and the Executive has been reasonably compensated for any losses or damages resulting therefrom (provided
that such right of correction by the Company shall only apply to the first Notice of Termination for Good Reason given by the Executive). 
  
 (a)    the assignment to the Executive of duties inconsistent in any material respect with the Executive’s position (including status, offices, titles and reporting
requirements), authority or responsibilities in effect on the Effective Date, or any other action or omission by the Company which results in a material diminution in such position, authority or responsibilities; 

 
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 (b)    a reduction in the Executive’s
annual base salary as in effect on the Effective Date or as the same was or may be increased thereafter from time to time; 
  
 (c)    a change by the Company in the location at which the Executive performs his principal duties for the Company to a new location that is both (i) outside a radius of 50 miles from the
Executive’s principal residence immediately prior to the Effective Date and (ii) more than 35 miles from the location at which the Executive performed his principal duties for the Company immediately prior to the Effective Date; 

 
 (d)    the failure of the Company to obtain the agreement from any successor to the Company
to assume and agree to perform this Agreement, as required by Section 6.1; or 
  
 (e)    a purported termination of the Executive’s employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 3.2(a). 
  
 The Executive’s right to terminate his employment for Good Reason shall not be affected by his incapacity due to physical or mental
illness. 
  
 1.5    “Disability” means the Executive’s
absence from the full-time performance of the Executive’s duties with the Company for 180 consecutive calendar days as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative. 
  
 2.    Term of Agreement.    This Agreement, and all rights and obligations of the parties hereunder, shall take effect upon the Effective Date and shall expire on the date two years
after the Effective Date. “Term” shall mean the period commencing as of the Effective Date and continuing in effect through the date that is two years after the Effective Date. 
  
 3.    Employment Status; Termination Following Change in Control. 
  
 3.1    Not an Employment Contract. The Executive acknowledges that this Agreement does not constitute a contract of employment or impose
on the Company any obligation to retain the Executive as an employee and that this Agreement does not prevent the Executive from terminating employment at any time. 
  
 3.2    Termination of Employment. 
  
 (a)    Any termination of the Executive’s employment by the Company or by the Executive shall be communicated by a written notice
to the other party hereto (the “Notice of Termination”), given in accordance with Section 7. Any Notice of Termination shall: (i) indicate the specific termination provision (if any) of this Agreement relied upon by the party giving such
notice, (ii) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) specify the Date of
Termination (as defined below). The effective date of an employment termination (the “Date of Termination”) shall be the close of business on the date specified in the Notice of Termination (which date may not be less than 10 

 
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 days or more than 120 days after the date of delivery of such Notice of
Termination), in the case of a termination other than one due to the Executive’s death, or the date of the Executive’s death, as the case may be. In the event the Company fails to satisfy the requirements of Section 3.2(a) regarding a
Notice of Termination, the purported termination of the Executive’s employment pursuant to such Notice of Termination shall not be effective for purposes of this Agreement. 
  
 (b)    The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes
to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting any such fact or circumstance in enforcing the
Executive’s or the Company’s rights hereunder. 
  
 (c)    Any Notice of
Termination for Cause given by the Company must be given within 90 days of the occurrence of the event(s) or circumstance(s) which constitute(s) Cause. 
  
 4.    Benefits to Executive. 
  
 4.1    Stock Acceleration.    If (a) a Change in Control Date or an Acquisition Event occurs during the Term on or before the Date of Termination and (b) the Executive’s employment
with the Company is terminated by the Company (other than for Cause, Disability or Death) or by the Executive for Good Reason during the Term, then, effective upon the Date of Termination, (x) each outstanding option to purchase shares of Common
Stock of the Company held by the Executive shall become immediately exercisable in full, and (y) each outstanding restricted stock award shall be deemed to be fully vested and will no longer be subject to any right of repurchase by the Company. If
(a) neither a Change of Control Date nor an Acquisition Event occurs on or before the Date of Termination and (b) the Executive’s employment with the Company is terminated by the Company (other than for Cause, Disability or Death) or by the
Executive for Good Reason during the Term, then (x) the vesting of (i) each outstanding option to purchase shares of the Company held by the Executive and (ii) each outstanding restricted stock award shall be determined as though the Executive
remained employed by the Company until six months after the Date of Termination, and (y) each outstanding option to purchase shares of the Company held by the Executive shall remain exercisable (to the extent vested) for a period of six months after
the Date of Termination. For purposes of this Section 4.1, an Acquisition Event is the acquisition by the Company of all of the outstanding equity interests of a company or all or substantially all of the assets or business of a company.

  
 4.2    Compensation.    If the Executive’s
employment with the Company terminates during the Term, the Executive shall be entitled to the following benefits and payments (less any such benefits and/or payments (whether salary, vacation pay, bonus, benefits or otherwise) similarly provided or
payable to the Executive pursuant to the Employment Agreement): 
  
 (a)    Termination Without Cause or for Good Reason.    If the Executive’s employment with the Company is terminated by the Company (other than for Cause, Disability or Death) or by
the Executive for Good Reason during the Term, then the Executive shall be entitled to the following benefits: 

 
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 (i)    the Company shall pay to the
Executive in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts: 
  
 (1)    the sum of (A) the Executive’s base salary through the Date of Termination, and (B) the amount of any compensation previously deferred by the Executive (together with any accrued interest or
earnings thereon) and any accrued vacation pay, in each case to the extent not previously paid (the sum of the amounts described in clauses (A) and (B) shall be hereinafter referred to as the “Accrued Obligations”); and 

 
 (2)    the amount equal to (A) one-half (1/2) multiplied by (B) the Executive’s
highest annual base salary during the three year period prior to the Effective Date. 
  
 (ii)    for six months after the Date of Termination, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, the Company shall continue to provide benefits to
the Executive and the Executive’s family at least equal to those which would have been provided to them if the Executive’s employment had not been terminated, in accordance with the applicable Benefit Plans in effect on the Effective Date
or, if more favorable to the Executive and his family, in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies; provided, however, that if the Executive becomes reemployed with
another employer and is eligible to receive a particular type of benefits (e.g., health insurance benefits) from such employer on terms at least as favorable to the Executive and his family as those being provided by the Company, then the Company
shall no longer be required to provide those particular benefits to the Executive and his family; 
  
 (iii)    to the extent not previously paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive is eligible to
receive following the Executive’s termination of employment under any plan, program, policy, practice, contract or agreement of the Company and its affiliated companies (such other amounts and benefits shall be hereinafter referred to as the
“Other Benefits”); 
  
 (iv)    for purposes of determining eligibility
(but not the time of commencement of benefits) of the Executive for retiree benefits to which the Executive is entitled, the Executive shall be considered to have remained employed by the Company until six months after the Date of Termination; and

  
 (v)    if a Change in Control Date occurs during the Term and on or before
the Date of Termination, the Company shall make an additional lump sum payment to the Executive equal to the sum of (A) the product of (x) the annual bonus paid or payable (including any bonus or portion thereof which has been earned but deferred)
for the most recently completed fiscal year and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365 and (B) one-half multiplied by the
Executive’s highest annual bonus during the three-year period prior to the Effective Date. 

 
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 (b)    Resignation Without Good Reason;
Termination for Death or Disability.    If the Executive voluntarily terminates his employment during the Term, excluding a termination for Good Reason, or if the Executive’s employment with the Company is terminated by
reason of the Executive’s death or disability during the Term, then the Company shall (i) pay the Executive (or his estate, if applicable), in a lump sum in cash within 30 days after the Date of Termination, the Accrued Obligations and (ii)
timely pay or provide to the Executive the Other Benefits. 
  
 (c)    Termination for Cause.    If the Company terminates the Executive’s employment with the Company for Cause during the Term, then the Company shall (i) pay the Executive, in a
lump sum in cash within 30 days after the Date of Termination, the sum of (A) the Executive’s base salary through the Date of Termination and (B) the amount of any compensation previously deferred by the Executive, in each case to the extent
not previously paid, and (ii) timely pay or provide to the Executive the Other Benefits. 
  
 (d)    Severance Agreement.    As a condition of receipt of any payments under Section 4.2(a)(i), the Executive shall be required to sign a severance agreement and release prepared by
and provided by the Company (the “Severance Agreement”) and to abide by the provisions of the Severance Agreement. Among other things, the Severance Agreement shall contain a release and waiver of any claims the employee or his or her
representative may have against the Company, its affiliates and/or representatives, and shall release those entities and persons from any liability for such claims including, but not limited to, all employment discrimination claims. 

 
 4.3    Taxes. 
  
 (a)    Notwithstanding any other provision of this Agreement or the Employment Agreement, except as set forth in Section 4.3(b) hereof,
in the event that the Company undergoes a “Change in Ownership or Control” (as defined below), the Company shall not be obligated to provide to the Executive a portion of any “Contingent Compensation Payments” (as defined below)
that the Executive would otherwise be entitled to receive to the extent necessary to eliminate any “excess parachute payments” (as defined in Section 280G(b)(1) of the Internal Revenue Code of 1986, as amended (the “Code”)) for
the Executive. For purposes of this Section 4.3, the Contingent Compensation Payments so eliminated shall be referred to as the “Eliminated Payments” and the aggregate amount (determined in accordance with Proposed Treasury Regulation
Section 1.280G-1, Q/A-30 or any successor provision) of the Contingent Compensation Payments so eliminated shall be referred to as the “Eliminated Amount.” 
  
 (b)    Notwithstanding the provisions of Section 4.3(a), no such reduction in Contingent Compensation Payments shall be made if (i) the
Eliminated Amount (computed without regard to this sentence) exceeds (ii) the aggregate present value (determined in accordance with Proposed Treasury Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any successor provisions) of the amount of any
additional taxes that would be incurred by the Executive if the Eliminated Payments (determined without regard to this sentence) were paid to him (including, state and federal income taxes on the Eliminated Payments, the excise tax imposed by
Section 4999 of the Code payable with respect to all of the Contingent 

 
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 Compensation Payments in excess of the Executive’s “base amount”
(as defined in Section 280G(b)(3) of the Code), and any employment taxes). The override of such reduction in Contingent Compensation Payments pursuant to this Section 4.3(b) shall be referred to as a “Section 4.3(b) Override.” For purpose
of this paragraph, if any federal or state income taxes would be attributable to the receipt of any Eliminated Payment, the amount of such taxes shall be computed by multiplying the amount of the Eliminated Payment by the maximum combined federal
and state income tax rate provided by law. 
  
 (c)    For purposes of this
Section 4.3 the following terms shall have the following respective meanings: 
  
 (i)    “Change in Ownership or Control” shall mean a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company determined in
accordance with Section 280G(b)(2) of the Code. 
  
 (ii)    “Contingent
Compensation Payment” shall mean any payment (or benefit) in the nature of compensation that is made or made available (under this Agreement, the Employment Agreement or otherwise) to a “disqualified individual” (as defined in Section
280G(c) of the Code) and that is contingent (within the meaning of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the Company. 
  
 (d)    Any payments or other benefits otherwise due to the Executive following a Change in Ownership or Control that could reasonably be
characterized (as determined by the Company) as Contingent Compensation Payments (the “Potential Payments”) shall not be made until the dates provided for in this Section 4.3(d). Within 30 days after each date on which the Executive first
becomes entitled to receive (whether or not then due) a Contingent Compensation Payment relating to such Change in Ownership or Control, the Company shall determine and notify the Executive (with reasonable detail regarding the basis for its
determinations) (i) which Potential Payments constitute Contingent Compensation Payments, (ii) the Eliminated Amount and (iii) whether the Section 4.3(b) Override is applicable. Within 30 days after delivery of such notice to the Executive, the
Executive shall deliver a response to the Company (the “Executive Response”) stating either (A) that he agrees with the Company’s determination pursuant to the preceding sentence, in which case he shall indicate, if applicable, which
Contingent Compensation Payments, or portions thereof (the aggregate amount of which, determined in accordance with Proposed Treasury Regulation Section 1.280G-1, Q/A-30 or any successor provision, shall be equal to the Eliminated Amount), shall be
treated as Eliminated Payments or (B) that he disagrees with such determination, in which case he shall set forth (i) which Potential Payments should be characterized as Contingent Compensation Payments, (ii) the Eliminated Amount, (iii) whether the
Section 4.3(b) Override is applicable, and (iv) which (if any) Contingent Compensation Payments, or portions thereof (the aggregate amount of which, determined in accordance with Proposed Treasury Regulation Section 1.280G-1, Q/A-30 or any successor
provision, shall be equal to the Eliminated Amount, if any), shall be treated as Eliminated Payments. In the event that the Executive fails to deliver an Executive Response on or before the required date, the Company’s initial determination
shall be final and the Contingent Compensation Payments that shall be treated as Eliminated Payments shall be determined by the Company in its absolute discretion. If the Executive states in the Executive Response that he agrees with the
Company’s determination, the Company shall make the Potential Payments to 

 
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 the Executive within three business days following delivery to the Company of the
Executive Response (except for any Potential Payments which are not due to be made until after such date, which Potential Payments shall be made on the date on which they are due). If the Executive states in the Executive Response that he disagrees
with the Company’s determination, then, for a period of 60 days following delivery of the Executive Response, the Executive and the Company shall use good faith efforts to resolve such dispute. If such dispute is not resolved within such 60-day
period, such dispute shall be settled exclusively by arbitration in Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court
having jurisdiction. The Company shall, within three business days following delivery to the Company of the Executive Response, make to the Executive those Potential Payments as to which there is no dispute between the Company and the Executive
regarding whether they should be made (except for any such Potential Payments which are not due to be made until after such date, which Potential Payments shall be made on the date on which they are due). The balance of the Potential Payments shall
be made within three business days following the resolution of such dispute. Subject to the limitations contained in Sections 4.3(a) and (b) hereof, the amount of any payments to be made to the Executive following the resolution of such dispute
shall be increased by amount of the accrued interest thereon computed at the prime rate announced from time to time by the Wall Street Journal, compounded monthly from the date that such payments originally were due. 
  
 (e)    The provisions of this Section 4.3 are intended to apply to any and all payments or benefits
available to the Executive under this Agreement or any other agreement or plan of the Company under which the Executive receives Contingent Compensation Payments. 
  
 5.    Disputes. 
  
 5.1    Settlement of Disputes; Arbitration.    All claims by the Executive for benefits under this Agreement shall be directed to and determined by the Board of Directors of the
Company and shall be in writing. Any denial by the Board of Directors of a claim for benefits under this Agreement shall be delivered to the Executive in writing and shall set forth the specific reasons for the denial and the specific provisions of
this Agreement relied upon. The Board of Directors shall afford a reasonable opportunity to the Executive for a review of the decision denying a claim. Any further dispute or controversy arising under or in connection with this Agreement shall be
settled exclusively by arbitration in Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. 

 
 5.2    Expenses.    The Company agrees to pay as incurred, to
the full extent permitted by law, all legal, accounting and other fees and expenses which the Executive may reasonably incur as a result of any claim or contest by the Company, the Executive or others regarding the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive regarding the amount of any payment or benefits pursuant to this Agreement), plus in each case interest
on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code, but only if the Executive prevails in such claim or contest. 

 
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 6.    Successors. 
  
 6.1    Successor to Company.    The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company would be
required to perform it if no such succession had taken place. Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness of any succession shall be a breach of this Agreement and shall constitute Good Reason if
the Executive elects to terminate employment, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, “Company”
shall mean the Company as defined above and any successor to its business or assets as aforesaid which assumes and agrees to perform this Agreement, by operation of law or otherwise. 
  
 6.2    Successor to Executive.    This Agreement 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 amount would still be payable to the Executive or his family hereunder if
the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate.

  
 7.    Notice.    All notices, instructions and other
communications given hereunder or in connection herewith shall be in writing. Any such notice, instruction or communication shall be sent either (i) by registered or certified mail, return receipt requested, postage prepaid, or (ii) prepaid via a
reputable nationwide overnight courier service, in each case addressed to the Company, at 25 Dan Road, Canton, Massachusetts, and to the Executive at the Executive’s address indicated on the signature page of this Agreement (or to such other
address as either the Company or the Executive may have furnished to the other in writing in accordance herewith). Any such notice, instruction or communication shall be deemed to have been delivered three business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent via a reputable nationwide overnight courier service. Either party may give any notice, instruction or other communication hereunder using
any other means, but no such notice, instruction or other communication shall be deemed to have been duly delivered unless and until it actually is received by the party for whom it is intended. 
  

8.    Miscellaneous. 
  
 8.1    Employment by Subsidiary.    For purposes of this Agreement, the Executive’s employment with the Company shall not be deemed to have
terminated solely as a result of the Executive continuing to be employed by a wholly-owned subsidiary of the Company. 
  
 8.2    Severability.    The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect. 

 
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 8.3    Injunctive
Relief.    The Company and the Executive agree that any breach of this Agreement by the Company is likely to cause the Executive substantial and irrevocable damage and, therefore, in the event of any such breach, in addition
to such other remedies which may be available, the Executive shall have the right to such specific performance and injunctive relief. 
  
 8.4    Governing Law.    The validity, interpretation, construction and performance of this Agreement shall be governed by the internal laws of the
Commonwealth of Massachusetts, without regard to conflicts of law principles. 
  
 8.5    Waivers.    No waiver by the Executive at any time of any breach of, or compliance with, any provision of this Agreement to be performed by the Company shall be deemed a waiver of
that or any other provision at any subsequent time. 
  
 8.6    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed to be an original but both of which together shall constitute one and the same
instrument. 
  
 8.7    Tax Withholding.    Any
payments provided for hereunder shall be paid net of any applicable tax withholding required under federal, state or local law. 
  
 8.8    Entire Agreement.    This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and
supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto in respect of the subject matter contained
herein; and any prior agreement of the parties hereto in respect of the subject matter contained herein is hereby terminated and cancelled. Notwithstanding anything to the contrary in this Section 8.8, the Employment Agreement is not terminated,
superceded or cancelled by this Agreement.  
  
 8.9    Amendments.    This Agreement may be amended or modified only by a written instrument executed by both the Company and the Executive. 
  
 8.10    Executive’s Acknowledgements.    The Executive acknowledges
that he: (a) has read this Agreement; (b) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Executive’s own choice or has voluntarily declined to seek such counsel; (c) understands the
terms and consequences of this Agreement; and (d) understands that the law firm of Hale and Dorr LLP is acting as counsel to the Company in connection with the transactions contemplated by this Agreement, and is not acting as counsel for the
Executive. 

 
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first set forth above. 
  
 NETWORK ENGINES, INC. 
  
 By:    /s/    DOUGLAS G.
BRYANT 
 Title: CFO            

  
 /s/    JOHN H. CURTIS

 John H. Curtis 
  
 Address: 
 9 Parmenter Rd. 
 Framingham, MA 01701 

 
 -12-Haynes International, Inc. - Exhibit 10.09

Exhibit 10.09

AMENDMENT NO. 3

TO

CREDIT AGREEMENT

            AMENDMENT    NO.    3   (the
"Amendment") TO "CREDIT  AGREEMENT" (as defined below),  dated as of November 1,
2002, among Haynes International, Inc., a Delaware corporation (the "Borrower"),
the financial  institutions  party to the Credit Agreement (the "Lenders"),  and
Fleet Capital Corporation, in its capacity as administrative agent for itself as
a Lender and the other Lenders (the  "Administrative  Agent") under that certain
Credit Agreement,  dated as of November 22, 1999, by and among the Borrower, the
Lenders  and the  Administrative  Agent (as the same may be  amended,  restated,
supplemented or otherwise  modified from time to time, the "Credit  Agreement").
Each  capitalized  term used herein and not otherwise  defined herein shall have
the meaning given to it in the Credit Agreement.

PRELIMINARY STATEMENTS

        WHEREAS,  the  Borrower,  the
Lenders and the Administrative Agent have entered into the Credit Agreement; and

        WHEREAS,  the  Borrower,  the
Lenders and the  Administrative  Agent have agreed to amend the Credit Agreement
on the terms and conditions set forth herein.

        NOW, THEREFORE, in consideration
of the premises set forth above, and for other good and valuable  consideration,
the receipt and sufficiency of which are hereby acknowledged,  the Borrower, the
Lenders and the Administrative Agent agree as follows:

                
1.    Amendments  to the Credit Agreement.  Effective
as of the date first above  written,  unless  otherwise  specified  herein,  and
subject  to the  execution  of this  Amendment  by the  parties  hereto  and the
satisfaction  of the conditions  precedent set forth in Section 2 below,
the Credit Agreement shall be and hereby is amended as follows:

                
a.     
The definition of "Availability Reserve" is hereby amended in its entirety as follows:

             
           
"Availability Reserve" means, on any date of calculation, the
sum of:

                        
                (i)   the Senior Note Reserve, plus

                        
                (ii)   the excess of that portion of the Borrowing Base related to
the sum of (A) Eligible Inventory of the Eligible Foreign Subsidiaries plus (B)
Net Amount of Eligible Accounts of the Eligible Foreign Subsidiaries, over (C)
prior to the Amendment No. 3 Effective Date, $12,000,000, and (D) subsequent to
the Amendment No. 3 Effective Date, $17,000,000 minus the Eligible Foreign
Subsidiary Reduction Amount, plus

                        
                (iii)   the Fixed Charge Reserve, plus

                        
(iv)   the  aggregate  balance of all trade  payables owed by the
Borrower  and any  Subsidiary  if,  in the  reasonable  credit  judgment  of the
Administrative  Agent (which credit judgment shall be exercised in a manner that
is not  arbitrary  or  capricious  and  is  consistent  with  the  standards  of
eligibility and credit judgment generally applied by the Administrative Agent to
other  borrowers  similarly  situated),  such trade payables are materially past
due;  provided,  however,  that the Administrative Agent shall not
consider any trade payable  materially  past due unless such trade payable is at
least  thirty  days past due;  provided,  further,  that any trade
payable the payment of which is the subject of a dispute being contested in good
faith by appropriate proceedings properly instituted and diligently conducted by
the  Borrower  or the  applicable  Subsidiary  shall  not be  considered  by the
Administrative Agent materially past due.

                b.        
The definition of "EBITDA" set forth in Section 1.1 of the Credit
Agreement is hereby amended to insert immediately after clause (x) thereof and
immediately before the sentence which begins "For the purposes of calculating
EBITDA" the following:

                
plus  (xi) to the extent  deducted in  computing  Net Income  during such
period,   the  aggregate  of  the  non-cash   portion  of  pension   obligations
constituting  expenses or  liabilities  under FASB 87 during such period and the
non-cash  portion  of   post-retirement   benefits   constituting   expenses  or
liabilities  under FASB 106 during  such  period,  minus (xii) to the extent not
reflected in the  computation  of Net Income  during such period,  the aggregate
amount of cash  contributions  and other cash  payments  during  such  period in
respect of the pension obligations and post-retirement benefits described in the
preceding clause (xi).

                c.        
The definition of "Fixed Charge  Reserve" set forth in Section 1.1 of the Credit
Agreement is hereby amended in its entirety as follows:

        "Fixed Charge Reserve" means:

        (a)        
prior to the date on which the  Borrower  delivers to the Lenders the  financial
information required under Section 7.1(A) for the period ending June 30, 2003:

	
	
           (i)   the Standard  Fixed Charge  Reserve at any time the Fixed  Charge  Coverage  Ratio equals or exceeds
           1.0 to 1.0;

           (ii)   $2,500,000 plus the Standard Fixed Charge Reserve at any time
           the Fixed Charge Coverage Ratio equals or exceeds 0.85 to 1.0 but is
           less than 1.0 to 1.0, and;

           (iii)   $5,000,000 plus the Standard Fixed Charge Reserve at any time
           the Fixed Charge Coverage Ratio equals or exceeds 0.75 to 1.0 but is
           less than 0.85 to 1.0; and

        (b)        
subsequent  to the  date on which  the  Borrower  delivers  to the  Lenders  the
financial  information  required under Section 7.1(A) for the period ending June
30, 2003:

	
	
           (i)   $0 at any time the Fixed Charge Coverage Ratio equals or exceeds 1.25 to 1.0;

           (ii)   the Standard Fixed Charge Reserve at any time the Fixed Charge
           Coverage Ratio equals or exceeds 1.0 to 1.0 but is less than 1.25 to
           1.0;

           (iii)   $2,500,000 plus the Standard Fixed Charge Reserve at any time
           the Fixed Charge Coverage Ratio equals or exceeds 0.85 to 1.0 but is
           less than 1.0 to 1.0, and;

           (iv)   $5,000,000 plus the Standard Fixed Charge Reserve at any time
           the Fixed Charge Coverage Ratio equals or exceeds 0.75 to 1.0 but is
           less than 0.85 to 1.0.

        d.        
The definition of "Revolving Loan Termination  Date" set forth in Section 1.1 of
the Credit Agreement is hereby amended in its entirety as follows:

        "Revolving            Loan
Termination  Date" means the earlier to occur of (i) October 31, 2005 or
(ii) the day which is ninety days prior to the  scheduled  maturity  date of the
Senior Notes, as such date may change from time to time.

        e.        
Section 1.1 is hereby  amended to insert  alphabetically  therein the  following
defined terms:

        "Amendment  No. 3" means  Amendment  No. 3 to Credit  Agreement,  dated as of November 1, 2002, by and among
the Borrower, the Lenders, and the Administrative Agent.

        "Amendment No. 3 Effective
Date" means November 1, 2002.

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        "Eligible Foreign Subsidiary Reduction Amount" means, on any date of
determination after the Amendment No. 3 Effective Date, an amount equal to
$83,333.33 times the number of months that have ended subsequent to the
Amendment No. 3 Effective Date. For example, on May 1, 2003, the Eligible
Foreign Subsidiary Reduction Amount would equal $83,333.33 times 6, or
$499,999.98. The Eligible Foreign Subsidiary Reduction Amount would remain equal
to $499,999.98 on May 15, 2003 because such month had not yet ended.

        f.        
Section 2.13(D)(ii) is hereby amended in its entirety as follows:

        (ii)        
Prior to the Amendment No. 3 Effective Date, the Applicable Floating Rate Margin
and the Applicable  Eurodollar Rate Margin shall be determined from time to time
by reference to the table set forth below,  on the basis of the then  applicable
Interest Coverage Ratio as calculated on a quarterly basis as of the end of each
of the Borrower's  fiscal  quarters  using EBITDA and Interest  Expense for such
fiscal quarter:

	
Interest Coverage Ratio	
Applicable Floating Margin

for Revolving Loans	
Applicable Eurodollar Margins

for Revolving Loans
	
Less than 1.25 to 1.0	
0.75%	
2.75%
	
Greater than or equal to

1.25 to 1.0	
0.50%	
2.50%

On and after the Amendment No. 3 Effective Date, the Applicable Floating Rate
Margin and the Applicable Eurodollar Rate Margin shall be determined from time
to time by reference to the table set forth below, on the basis of the then
applicable Interest Coverage Ratio as calculated on a quarterly basis as of the
end of each of the Borrower's fiscal quarters using EBITDA and Interest Expense
for such fiscal quarter:

	
Interest Coverage Ratio	
Applicable Floating Rate Margin

for Revolving Loans	
Applicable Eurodollar Margins

for Revolving Loans
	
Less than 1.25 to 1.0	
0.75%	
2.75%
	
Less than 1.5 to 1.0 but equal

to or greater than 1.25 to 1.0	
0.50%	
2.50%
	
Equal to or greater

than 1.5 to 1.0	
0.25%	
2.25%

Upon receipt of each quarterly report provided for in Section 7.1(A)(ii), the
Applicable Floating Margin and the Applicable Eurodollar Margin shall be
adjusted, any such adjustment being effective three (3) Business Days following
the Administrative Agent's receipt of such financial statements and the
compliance certificate required to be delivered in connection therewith pursuant
to Section 7.1(a)(iv); provided, that if the Borrower shall not have timely
delivered its financial statements in accordance with Section 7.1(A)(ii), then
commencing on the date upon which such financial statements should have been
delivered and continuing until such financial statements are actually delivered,
it shall be assumed for purposes of determining the Applicable Floating Margin
and Applicable Eurodollar Margin that the Interest Coverage Ratio was less than
(x) 1.5 to 1.0 prior to the Amendment No. 3 Effective Date and (y) 1.25 to 1.0
on and after the Amendment No. 3 Effective Date. Notwithstanding anything herein
to the contrary, from the Amendment No. 3 Effective Date through the date of
delivery of the quarterly financial statement due for the quarter ending
September 30, 2002, the Applicable Floating Margin and the Applicable Eurodollar
Margin shall be determined based upon an assumption that the Interest Coverage
Ratio is equal to or greater than 1.5 to 1.0.

        g.        
Section 7.4 (B) is hereby amended in its entirety as follows:

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        (B)     Capital
Expenditures.       The Borrower will not, nor will
it permit  any  Subsidiary  to  expend or be  committed  to expend  for  Capital
Expenditures  in any fiscal  year,  in the  aggregate  for the  Borrower and its
Subsidiaries,  in excess of (i) in fiscal year 2000, $14,000,000, (ii) in fiscal
year 2001, $16,000,000 plus an amount not in excess of $3,000,000 if such amount
was  permitted to be expended in fiscal year 2000 but was not expended in fiscal
year 2000,  (iii) in fiscal year 2002,  $18,000,000 plus an amount not in excess
of  $3,000,000  if such amount was  permitted to be expended in fiscal year 2001
but was not expended in fiscal year 2001, and (iv) in each of fiscal years 2003,
2004,  and 2005,  $7,000,000  plus,  in any such fiscal  year,  an amount not in
excess of  $3,000,000  if such amount was permitted to be expended in the fiscal
year immediately  preceding such fiscal year but was not previously  expended in
such immediately preceding fiscal year; provided, however, no such
addition shall be cumulative and no such addition  shall  carry-over  beyond one
fiscal year.

        h.     
Section 8.1 is hereby amended to insert immediately after clause (N) thereof the following clause (O):

        (O)     
Senior Notes Restructuring. The Borrower shall fail to
extend the scheduled maturity date and otherwise amend the terms and conditions
of the Senior Notes in a manner acceptable to the Required Lenders, in their
sole discretion, on or prior to May 31, 2004.

        2.     
Conditions Precedent. This Amendment shall become effective as of the
date above written, if, and only if, the Administrative Agent has received (i)
an executed copy of this Amendment from the Borrower, the Lenders and the
Administrative Agent, and (ii) a non-refundable $270,000 amendment fee in
immediately available funds for the ratable benefit of the Lenders.

        3.     
  Representations  and  Warranties  of  the  Borrower.   The  Borrower  hereby
represents and warrants as follows:

        (a)     
This Amendment and the Credit Agreement, as amended hereby,
constitute legal, valid and binding obligations of the Borrower and are
enforceable against the Borrower in accordance with their terms.

        (b)   Upon the effectiveness of this Amendment, the Borrower hereby
reaffirms all representations and warranties made in the Credit Agreement, and
to the extent the same are not amended hereby, agrees that all such
representations and warranties shall be deemed to have been remade as of the
date of delivery of this Amendment, unless and to the extent that any such
representation and warranty is stated to relate solely to an earlier date, in
which case such representation and warranty shall be true and correct as of such
earlier date.

        4.     
Reference to and Effect on the Credit Agreement.

        (a)     
 Upon the effectiveness of Section 1 hereof, on and after the date
hereof, each reference in the Credit Agreement to "this Credit Agreement,"
"hereunder," "hereof," "herein" or words of like import shall mean and be a
reference to the Credit Agreement as amended hereby.

        (b)     
 The Credit Agreement, as amended hereby, and all other documents,
instruments and agreements executed and/or delivered in connection therewith,
shall remain in full force and effect, and are hereby ratified and confirmed.

        (c)     
 Except as expressly provided herein, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of the Administrative Agent or the Lenders, nor constitute a
waiver of any provision of the Credit Agreement or any other documents,
instruments and agreements executed and/or delivered in connection therewith.

        5.     Governing
Law. This  Amendment  shall be governed by and construed in accordance  with the
laws (including  Section 735 ILCS 105/5-1 et seq. but otherwise without regard to
conflict of law provisions) of the State of Illinois.

– 4 –

        6.     Headings.
Section  headings in this  Amendment  are  included  herein for  convenience  of
reference  only and shall not  constitute a part of this Amendment for any other
purpose.

        7.     Counterparts.
This Amendment may be executed by one or more of the parties to the Amendment on
any number of separate  counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

        IN    WITNESS   WHEREOF,    this
Amendment has been duly executed and delivered on the date first above written.

	
	
HAYNES INTERNATIONAL, INC.

By:  /ss/ Calvin S. McKay

Name:  Calvin S. McKay

Title:  Vice President, Finance, CFO

FLEET CAPITAL CORPORATION, individually and as

Administrative Agent

By:  /ss/ Robert J. Lund

Name:  Robert J. Lund

Title:  Senior Vice President

NATIONAL CITY COMMERCIAL FINANCE, INC.

By:  /ss/ Dennis Hatvany

Name:  Dennis Hatvany

Title:  Vice President

THE CIT GROUP/BUSINESS

CREDIT, INC.

By:  /ss/ James Andricopulas

Name:  James Andricopulas

Title:  Vice President

– 5 –

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