Document:

Exhibit 10.1

 

Execution Copy

 

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) dated this 9th day of August, 2018 and effective
as of the 9th day of August, 2018 (the “Effective Date”) by and between TSR, Inc., a Delaware corporation,
with offices at 400 Oser Avenue, Hauppauge, New York 11788 (hereinafter called the “Corporation”), and Christopher
Hughes, residing at 18 Westview Road, Northport, NY (hereinafter called “Executive”).

 

WITNESSETH:

 

WHEREAS,
Executive is employed by the Corporation pursuant to the terms of an employment agreement effective as of the 1st day
of May, 2017 between Executive and the Corporation (the “Prior Employment Agreement”); and

 

WHEREAS,
the Corporation and Executive wish to enter into a new employment agreement between the Corporation and Executive on the terms
and conditions contained in this Agreement, which Agreement will supersede the Prior Employment Agreement and all prior agreements
and understandings between the parties, oral or written, with respect to the subject matter of this Agreement and with respect
to the subject matter of any other agreement incorporated herein by reference.

 

NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

 

1.
The Corporation hereby continues to employ Executive as President of TSR Consulting Services, Inc. and as President, Chief Executive
Officer and Treasurer of the Corporation or such other position, as he may be appointed to by the Board of Directors of the Corporation
(the “Board”), with the Corporation or any subsidiary thereof to perform such duties on behalf of the Corporation
and TSR Consulting Services, Inc. as the Board may from time to time determine.

 

2.
Executive hereby accepts such continued employment and agrees that throughout the period of his employment hereunder, he will
devote his full time, attention, knowledge and skills, faithfully, diligently and to the best of his ability, in furtherance of
the business of the Corporation and to promote the interest of the Corporation, will perform the duties assigned to him pursuant
to Paragraph 1 hereof, subject, at all times, to the direction and control of the Board. Executive shall at all times be subject
to, observe and carry out such rules, and regulations as the Corporation from time to time shall establish. During the period
of Executive’s employment hereunder, Executive shall not be entitled to additional compensation for serving in any office
of the Corporation or any of its subsidiaries to which he is elected, including without limitation as a director of the Corporation
or any subsidiary thereof.

 

3.
Executive shall be employed hereunder for a term of three (3) years, nine (9) months and twenty two (22) days commencing as of
the Effective Date and ending on the 31st day of May, 2022 (the “Term”), unless his employment is terminated prior
to the expiration of the Term pursuant to the provisions hereof.

 

     

     

    

 

4.
(a) As full compensation for his services hereunder, the Corporation will pay to Executive a salary (the “Base Salary”)
at the rate of Four Hundred Thousand ($400,000) Dollars per annum, payable in equal installments in arrears no less frequently
than semi-monthly. The Corporation’s Compensation Committee of the Board (the “Compensation Committee”) will
review Executive’s Base Salary on an annual basis and the Board may, in its sole discretion, increase Executive’s
Base Salary. In addition, the Compensation Committee shall in good faith, after the end of each fiscal year (commencing with the
fiscal year ending May 31, 2019) consider and cause the Corporation to grant to Executive a discretionary bonus, which may be
based upon standards which the Compensation Committee, subject to the approval of the Board, shall establish with Executive at
the beginning of each fiscal year (or as soon thereafter as reasonably practicable) and which standards may be modified thereafter
with the approval of the Compensation Committee and the Board. The bonus provided for hereunder shall be payable by the Corporation
to Executive within 120 days of the end of the applicable fiscal year, for the period to which such bonus relates, subject to
Executive's continued employment with the Corporation from the date hereof through the date that is the day immediately following
the last day of such applicable fiscal year. The Corporation shall pay to Executive as an advance payment of the bonus within
30 days after the end of each fiscal quarter (other than the fourth fiscal quarter) an amount equal to the bonus which would have
been earned through the end of such fiscal quarter, based on any standards approved by the Compensation Committee and the Board,
subject to Executive’s continued employment with the Corporation on the applicable payment date. Each such advance payment
of the bonus shall be approved by the Compensation Committee and the Board unless it is paid in accordance with a formula approved
in advance by the Compensation Committee and the Board for such fiscal year. In the event that following any fiscal quarter or
following completion of the Corporation’s audited financial statements, any advance payment of the bonus previously paid
with respect to any fiscal year (or portion thereof) exceeds the amount that Executive is entitled to through the end of such
fiscal quarter or fiscal year, Executive shall promptly return such excess.

 

(b)
In addition, Executive shall be entitled to continue to participate, to the extent he is eligible under the terms and conditions
thereof, in any pension, profit-sharing, retirement, hospitalization, insurance, medical services, or other employee benefit plan
generally available to executives of the Corporation which may be in effect from time to time during the period of his employment
hereunder. The Corporation shall be under no obligation to institute or continue the existence of any such employee benefit plan.
Executive is entitled to executive medical benefits and also shall be entitled to a car (leased or owned at sole discretion of
the Corporation) in such amounts for the car as shall be determined by the Board. Any or all of such entitlements in the preceding
sentence may be discontinued at the end of any fiscal year at the discretion of the Board.

 

5.
The Corporation shall reimburse Executive for all expenses reasonably incurred by him in connection with the performance of his
duties hereunder and in connection with the business of the Corporation, upon the submission to the Corporation of appropriate
vouchers therefore and approval thereof by the Corporation’s Vice President, Finance. Such reimbursements shall be subject
to the expense reimbursement policies of the Corporation, which are in effect from time to time. Executive shall be entitled to
three (3) weeks’ vacation time per annum in accordance with the regular procedures of the Corporation governing executive
officers as determined from time to time by the Board.

 

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6.
(a) Notwithstanding any provision contained herein to the contrary, if on or after the Effective Date and prior to the end of
the Term, Executive is terminated for “Cause” (as defined below) then the Board shall have the right, on behalf of
the Corporation, to give notice of termination of Executive’s services hereunder as of a date to be specified in such notice
and this Agreement shall terminate as of the date so specified. Termination for “Cause” shall mean Executive shall
(i) be convicted of, or plead guilty or nolo contendere to, any crime constituting a felony, (ii) engage in willful misconduct
that is materially injurious to the Corporation, (iii) commit an act of fraud against the Corporation or (iv) materially breach
any term of this Agreement or any written policy established by the Board and fail to correct such breach within ten days after
written notice of commission thereof. For purposes of the definition of “Cause” above, no act or failure to act, on
the part of Executive, shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad
faith. Any act, or failure to act, based upon authority given by the Board or based upon the advice of counsel for Corporation
shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith. Executive’s termination of
employment shall not be for “Cause” unless and until there shall have been a resolution duly adopted by the Board
finding that, in the good faith opinion of such Board, the conduct or events described in any of the subparagraphs (i) through
(iv) above have been engaged in or occurred, as applicable.

 

(b)
If, during the Term, Executive is unable to perform his duties hereunder on account of illness, accident or other physical or
mental incapacity and such illness or other incapacity shall continue for a period of six (6) consecutive months or an aggregate
of one hundred and eighty (180) days in any consecutive twelve (12) month period, the Corporation shall have the right, on fifteen
(15) days written notice (given after such period) to Executive, to terminate this Agreement. In such event, the Corporation shall
be obligated to pay to Executive his Base Salary and approved expenses for the calendar month in which such termination occurs.
However, if prior to the date specified in such notice, Executive's illness or incapacity shall have terminated and he shall have
taken up the performance of his duties hereunder, Executive shall be entitled to resume his employment hereunder, as though such
notice had not been given.

 

(c)
In the event of Executive's death during the Term, this Agreement shall terminate immediately, and Executive's legal representatives
shall be entitled to receive his Base Salary for the calendar month during which his death shall have occurred together with any
unpaid, approved expenses as contemplated under Paragraph 5 and as may otherwise be provided under any insurance policy or similar
instrument.

 

(d)
In the event that this Agreement is terminated for “Cause” pursuant to Paragraph 6(a), then Executive shall be entitled
to receive only his Base Salary for the month in which such termination shall take effect.

 

(e)
The Board may, on behalf of the Corporation, terminate this Agreement and Executive’s employment hereunder for any reason
other than as provided under Paragraph 6(a), (b), (c), or (d) upon thirty (30) days’ written notice from the Board (on behalf
of the Corporation) to Executive and, in such event, provided that any such employment termination is due solely to an involuntary
separation from service (within the meaning of Section 409A of the Code (as defined below)) of Executive, the Corporation shall
be obligated to pay to Executive an amount equal to any unpaid, approved expenses as contemplated under Paragraph 5 and, subject
to Executive executing and not revoking during any applicable revocation period a general release of all claims against the Corporation
and its affiliates in a form reasonably acceptable to the Corporation (the “Release”) within sixty (60) days of such
termination of employment, the Corporation shall be obligated to:

 

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(i)
pay to Executive a severance payment equal to the sum of (A) two (2) year's salary at the Base Salary plus (B) two (2) times his
bonus for the then current fiscal year, or if that amount cannot be determined, two (2) times the amount of the bonus paid in
the prior fiscal year (collectively, the “Severance Payment”); provided, further, that the portion of such Severance
Payment that is equal to the Installment Amount (as defined herein) shall be payable in forty-eight (48) equal semi-monthly installments
pursuant to the Corporation's normal and customary payroll procedures; provided, however, that (subject to Paragraph 14(a) below)
the first such installment shall be made on the Corporation’s first regular pay date following the date that the Release
becomes effective (and is no longer subject to revocation) and shall include all amounts that would have been paid on or prior
to the actual commencement date of such payments had the installments commenced on the first pay date following Executive's date
of employment termination; and provided, further, that the remaining portion of such Severance Payment (i.e., the amount
equal to the Severance Payment less the Installment Amount) shall be paid, in a lump sum, on the Corporation’s first regular
pay date following the date that the Release becomes effective (and is no longer subject to revocation);

 

(ii)
provide continued group health insurance benefits for Executive (i.e., group medical and dental insurance generally offered to
all eligible employees of the Corporation (“General Health Insurance Plans”) and supplemental executive health insurance
benefits (“Executive Health Plan”)) in accordance with the terms of the applicable group health insurance benefit
plans of the Corporation, in which Executive participated immediately prior to such termination, as in effect from time to time
until the earlier of the second anniversary of Executive's employment termination date or the date Executive is or becomes eligible
for comparable coverage under the group health insurance plans of another employer (the “Continued Coverage Period”);
provided, that, if and to the extent such continued group health insurance coverage is not permissible either by law or the applicable
insurance plan or such coverage would cause the Corporation to incur any excise tax, then (A) the Corporation shall reimburse
Executive on the first business day of every month during the first eighteen (18) months of the Continued Coverage Period for
(1) the COBRA continuation premiums applicable to the General Health Insurance Plans incurred by Executive (the “COBRA General
Health Insurance Premiums”), provided that reimbursement for the COBRA General Health Insurance Premiums shall not exceed
the Initial COBRA General Health Insurance Cost (as defined below) and (2) either (x) the COBRA continuation premiums applicable
to the Executive Health Plan incurred by Executive (the “COBRA Executive Health Plan Premiums”), provided that reimbursement
for the COBRA Executive Health Plan Premiums shall not exceed the Initial COBRA Executive Health Plan Cost (as defined below),
or (y) if COBRA is not available for the Executive Health Plan, an amount equal to the lesser of (I) the monthly premium
paid by the Corporation for the Executive Health Plan provided to Executive as of the employment termination date and (II) $2,000
per month, and (2) the Corporation shall reimburse Executive on the first day of every month during the remainder of the Continued
Coverage Period for the premium costs incurred by Executive for comparable health insurance coverage reasonably acceptable to
the Corporation, provided that such monthly reimbursements by the Corporation for comparable health insurance coverage shall not
exceed the sum of (I) the Initial COBRA General Health Insurance Cost, and (II) the Initial COBRA Executive Health Plan
Cost or, if COBRA was not available for the Executive Health Plan, the lesser of (X) the monthly premium paid by the Corporation
for the Executive Health Plan provided to Executive immediately prior to the date of termination, and (Y) $2,000 per month; and

 

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(iii)
for the two (2) year period following the date of termination, reimburse the Executive for the monthly cost of his car lease during
such two (2) year period; provided that such reimbursement shall not exceed the lesser of (A) the monthly amount paid by
the Corporation for the Executive’s automobile lease immediately prior to the date of termination and (B) $1099.40 per month.

 

As
used herein: (A) “Initial COBRA General Health Insurance Cost” means the monthly cost of COBRA for Executive’s
continued participation in the Corporation’s General Health Insurance Plans (to the extent he participated in such General
Health Insurance Plans on the date of Executive’s employment termination) in effect as of the date of Executive’s
employment termination; (B) “Initial COBRA Executive Health Plan Cost” means the monthly cost of COBRA for Executive’s
continued participation in the Executive Health Plan to the extent he participated in such plan on the date of Executive’s
employment termination) in effect as of the date of Executive’s employment termination and (C) “Installment Amount”
means, on the date of Executive's employment termination, the amount that is the lesser of (i) two times Executive's then annual
compensation and (ii) two times the limit on compensation set forth in Section 401(a)(17) of the Code.

 

Executive
shall immediately notify the Corporation if he becomes eligible for coverage under the group health insurance plan(s) of another
employer.

 

7.
In the event that during the Term, either Executive’s employment is terminated without Cause by the Corporation during the
six month period prior to, or within one year after, a Change in Control (as defined below) or Executive resigns from his employment
with the Corporation for Good Reason (as defined below) upon written notice to the Corporation (which written notice shall be
in accordance with the definition of Good Reason) on, or within one year after, a Change in Control:

 

(a)
(i) the Corporation shall pay to Executive his full salary through the date of termination at the Base Salary in effect at the
time notice of termination or resignation for Good Reason, as applicable, is given plus his bonus prorated through the date of
termination; and

 

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(ii)
subject to Executive executing and not revoking during any applicable revocation period the Release within sixty (60) days of
such termination of employment, in lieu of any further salary or bonus payments to Executive for periods subsequent to the date
of termination, the Corporation shall pay, on the Corporation’s first regular pay date following the date that the Release
becomes effective (and is no longer subject to revocation) as severance pay in a lump sum to Executive, an amount equal to:

 

(A)
two (2) times Executive’s annual Base Salary (at the Base Salary in effect at the date of termination); plus

 

(B)
two (2) times Executive’s bonus for the then current fiscal year, or if that amount cannot be determined, two (2) times
the amount of the bonus paid in the prior fiscal year.

 

The
sum of the amounts set forth above in clauses (a)(ii)(A) and (a)(ii)(B) of this Paragraph 7 shall be referred to herein as the
“Enhanced Severance Amount.”

 

(iii)
the Corporation will provide continued group health insurance benefits for Executive in accordance with the terms of clause (e)(ii)
of Paragraph 6 of this Agreement and reimburse Executive for his car lease in accordance with the terms of clause (e)(iii) of
Paragraph 6 of this Agreement.

 

(b)
As used herein, the term “Change in Control” shall mean:

 

		(i)	any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934 (the “Exchange Act”), which is not currently a person who controls (within the meaning of Rule 12b-2 promulgated
under the Exchange Act), individually or as a member of a group, the Corporation, is or becomes the “beneficial owner”
(as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Corporation representing
more than 50% of the combined voting power of the Corporation’s then outstanding securities;

		 	 

		(ii)	the
consummation of a merger or consolidation involving the Corporation resulting in a change of ownership of a majority of the outstanding
shares of capital stock of the Corporation;

		 	 

		(iii)	the
shareholders of the Corporation approve a plan of liquidation or dissolution of the Corporation;

		 	 

		(iv)	the
sale or disposition by the Corporation of all or substantially all the Corporation's assets; or

		 	 

		(v)	the
Incumbent Directors of the Corporation for any reason cease to constitute at least a majority of the Board.

 

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(c)
As used in herein, “Good Reason” means the occurrence of any of the following, in each case, without Executive’s
prior consent: (i) a material breach by the Corporation of the terms of this Agreement; (ii) a material diminution in Executive’s
authority, duties or responsibilities; or (iii) a relocation by the Corporation of Executive’s principal place of business
for the performance of his duties under this Agreement to a location that is anywhere outside of a 100 mile radius of the Borough
of Manhattan. “Good Reason” shall not be deemed to exist, however, unless (A) Executive shall have given written notice
to the Corporation specifying in reasonable detail the Corporation’s acts or omissions that Executive alleges constitute
“Good Reason” within sixty (60) days after the first occurrence of such circumstances (or, if later, the date on which
Executive knows or reasonably should have known of the occurrence of such circumstances) and the Company shall have failed to
cure any such act or omission within thirty (30) days of receipt of such written notice, and (B) Executive actually terminates
employment within thirty (30) days following the expiration of the Company’s cure period as set forth above. Otherwise,
any claim of such circumstances as “Good Reason” shall be deemed irrevocably waived by Executive.

 

(d)
As used herein, “Incumbent Director” means the individuals who, as of the Effective Date, constitute the Board; provided
that any individual becoming a member of the Board subsequent to the Effective Date whose election or nomination for election
to the Board was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent
Director. No individual initially elected or nominated as a member of the Board as a result of an actual or threatened election
contest with respect to members of the Board or as a result of any other actual or threatened solicitation of proxies by or on
behalf of any person other than the Board shall be an Incumbent Director.

 

(e)
The severance payment and benefits under this Paragraph 7(a)(ii) above are in lieu of (and not in addition to) any severance payment
and benefits under 6(e) above. Accordingly, to the extent Executive receives any payment(s) under Paragraph 6(e) above, the Enhanced
Severance Amount shall be reduced by the amount of any payment(s) already received by Executive under Paragraph 6(e).

 

8.
The Corporation and Executive entered into a Maintenance of Confidence and Non-Compete Agreement on the date of this Agreement,
the terms of which are hereby expressly incorporated into this Agreement, provided, however, that the Maintenance of Confidence
and Non-Compete Agreement shall continue to be effective notwithstanding the expiration or termination of Executive’s employment
hereunder and shall continue in effect upon expiration or earlier termination of this Agreement, in each case, pursuant to the
terms of the Maintenance of Confidence and Non-Compete Agreement.

 

9.
(a) The Corporation shall have the right from time to time to purchase, increase, modify or terminate insurance policies on the
life of Executive for the benefit of the Corporation, in such amounts as the Corporation shall determine in its sole discretion.

 

(b)
In connection with Paragraph 9(a) above, Executive shall, at such time or times and at such place or places as the Corporation
may reasonably direct, submit himself to such physical examinations and Executive shall deliver such documents as the Corporation
may deem necessary or desirable.

 

10.
Executive shall hold in a fiduciary capacity for the benefit of the Corporation all information, knowledge and data relating to
or concerned with its operations, sales, business and affairs, and he shall not, at any time hereafter, use, disclose or divulge
any such information, knowledge or data to any person, firm or corporation other than the Corporation or its designees or except
as may otherwise be required in connection with the business and affairs of the Corporation.

 

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11.
The parties hereto acknowledge that Executive’s services are unique and that, in the event of a breach by Executive of any
of his obligations under this Agreement, the Corporation may not have an adequate remedy at law. Accordingly, in the event of
any such breach or threatened breach by Executive, the Corporation shall be entitled to seek such equitable and injunctive relief
as may be available to restrain Executive from the violation of the provisions thereof. Nothing herein shall be construed as prohibiting
the Corporation from pursuing any other remedies at law or in equity for such breach or threatened breach, including the recovery
of damages and the immediate termination of the employment of Executive hereunder.

 

12.
This Agreement, together with the Maintenance of Confidence and Non-Compete Agreement, constitute the entire agreement of the
parties hereto with respect to the subject matter hereof (including, without limitation, the Prior Employment Agreement and any
other agreements pertaining to confidentiality, non-solicitation, non-competition or the like) and no amendment or modification
hereof shall be valid or binding unless made in writing and signed by the party against whom enforcement thereof is sought.

 

13.
Any notice required, permitted or desired to be given pursuant to any of the provisions of this Agreement shall be deemed to have
been sufficiently given or served for all purposes if delivered in person or sent by certified mail, return receipt requested,
postage and fees prepaid as follows:

 

If
to the Corporation at:

 

TSR,
Inc.

400
Oser Avenue Suite 150

Hauppauge,
New York 11788

Attn:
Mr. John Sharkey,

          Vice
President, Finance

 

If
to Executive at:

 

Mr.
Christopher Hughes

18
Westview Road

Northport,
New York

 

Either
of the parties hereto may at any time and from time to time change the address to which notice shall be sent hereunder by notice
to the other party given under this Paragraph 13. The date of the giving of any notice sent by mail shall be the date of the posting
of the mail.

 

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14.
(a) If at the time of any separation from service, Executive is a "specified employee" within the meaning of Section
409A(a)(2)(B)(i) of the Internal Revenue Code of 1986 (as amended) (the “Code”) and regulations thereunder, to the
minimum extent required to satisfy Section 409A(a)(2)(B)(i) of the Code and regulations thereunder, any payment or provision of
benefits to Executive in connection with his separation from service (as determined for purposes of Section 409A of the Code)
shall be postponed and paid in a lump sum on the first business day following the date that is six months after Executive's separation
from service (or the date of Executive’s death if earlier) (the “409A Deferral Period”), and the remaining payments
due to be made in installments or periodically after the 409A Deferral Period shall be made as otherwise scheduled. Further, notwithstanding
anything set forth in Paragraph 6(e) or Paragraph 7 above to the contrary, if the 60 day period in which the Release must become
effective (and no longer subject to revocation) covers more than one calendar year, then (a) if Paragraph 6(e) above is applicable,
the first payment of the Installment Amount will commence, and the amount equal to the Severance Payment less the Installment
Amount will be paid, in the second calendar year (on the first regular pay date of such calendar year following the date that
Release becomes effective is no longer subject to revocation) and (b) if Paragraph 7 is applicable, the Enhanced Severance Payment
will be paid in the second calendar year (on the first regular pay date of such calendar year following the date that the Release
becomes effective and is no longer subject to revocation), in each case, unless such later date is required by this Paragraph
14(a) above), regardless of whether the Release becomes effective in the first or second calendar year.

 

(b)
References under this Agreement to Executive's termination of employment shall be deemed to refer to the date upon which Executive
has experienced a “separation from service” within the meaning of Section 409A of the Code. All payments made under
this Agreement shall constitute "separate payments" for purposes of Section 409A of the Code. To the extent any reimbursements
or in-kind benefits due to Executive under this Agreement constitute "deferred compensation" under Section 409A of the
Code, any such reimbursements or in-kind benefits shall be paid to Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(l)(iv).

 

15.
Neither this Agreement nor the right to receive any payments hereunder may be assigned by Executive. This Agreement shall be binding
upon Executive, his heirs, executors and administrators and upon the Corporation, its successors and assigns.

 

16.
No course of dealing nor any delay on the part of the Corporation in exercising any rights hereunder shall operate as a waiver
of any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver or a waiver of any
other breach or default.

 

17.
This Agreement shall be governed, interpreted and construed in accordance with the laws of the State of New York applicable to
agreements entered into and to be performed entirely therein.

 

18.
If any clause, paragraph, section or part of this Agreement shall be held or declared to be void, invalid or illegal, for any
reason, by any court of competent jurisdiction, such provisions shall be ineffective but shall not in any way invalidate or affect
any other clause, paragraph, section or part of this Agreement.

 

19.
Notwithstanding any other provision of this Agreement, the Corporation may withhold from amounts payable under this Agreement
all federal, state, local and foreign taxes that are required to be withheld by applicable laws or regulations.

 

20.
Executive acknowledges that he is not subject to any agreement, which would in any way restrict him from carrying out his employment
as contemplated hereunder.

 

21.
Effective as of the Effective Date, this Agreement supersedes the Prior Employment Agreement.

 

[Signatures
appear on the following page]

 

    9

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day in year first above written.

 

Executive

 

	/s/
    Christopher Hughes	 
	Christopher
    Hughes	 

 

TSR,
Inc.

 

	By:	/s/
    John Sharkey	 
	Name:	John
    Sharkey	 
	Title:	Vice
    President, Finance	 

  

    10Exhibit 10.2

 

Execution Copy

 

MAINTENANCE OF CONFIDENCE AND NON-COMPETE
AGREEMENT

 

AGREEMENT made this
9th day of August, 2018 (the “Effective Date”) by and between TSR, Inc. (the “Corporation”) and
the undersigned (the “Employee”). As used in this Agreement, the “Company” shall mean the Corporation, its
subsidiaries (including, without limitation, TSR Consulting Services, Inc.) and their respective successors and assigns.

 

WHEREAS, pursuant to
the terms of a separate amended and restated employment agreement between the Employee and the Corporation dated as of the Effective
Date (the “2018 Employment Agreement”), the Corporation has agreed to continue to employ the Employee, and the Employee
has agreed to continue to be employed by the Corporation, on the terms and conditions therein set forth,

 

WHEREAS, it is an essential
and continuing condition of the Company’s business that certain terms and conditions be agreed to by all individuals who have access
to trade secrets and other confidential information, and

 

WHEREAS, Employee has
previously entered into agreements with the Company pertaining to confidentiality, non-solicitation and non-competition and the
parties desire to resolve any potential ambiguities relating to such prior agreements.

 

NOW, THEREFORE, in
consideration of the Employee’s continued employment by the Corporation pursuant to the terms of the 2018 Employment Agreement
and being granted continued access to trade secrets and confidential information and in order to resolve any ambiguities between
the prior agreements pertaining to confidentiality, non-solicitation and non-competition, it is agreed as follows:

 

1. The Employee
acknowledges that:

 

(a) the business in which
the Company is engaged is one in which data processing services, computer software and other technical information, which are of
a secret and confidential nature and in which the Company has the sole proprietary interest, has been and will be created and used
in furtherance of the business of persons and entities, including Company customers (persons, entities and corporations along with
their parents, subsidiaries or affiliates, regardless of location, which during Employee’s employment have been, which are
now or which hereafter become, users of the Company’s services) (hereinafter “Customers”), by those individuals
employed by the Company (the “Full-Time Employees”) and by programmers and analysts who, as independent contractors,
have agreed to be represented by the Company for the purpose of obtaining temporary computer programming and/or analysis positions
with third parties (the “Independent Contractors”);

 

     

     

    

 

(b) the Company has expended
substantial time, effort and money in culling from the general public the identity of those individuals and entities who are and
will be in need of or be receptive to the computer programming services provided by the Company and of those persons who have the
technical ability and availability to serve as Independent Contractors;

 

(c) the relative competitive
advantage or disadvantage of the Company in obtaining customers for its services and in obtaining temporary programming positions
for its Full-Time Employees and/or Independent Contractors is determined not only by the good will of the Company’s customers,
but also by the ability of the Company to develop and maintain lists of Independent Contractors;

 

(d) the preservation
of a continuing relationship between the Company and its Customers (as defined above) and the preservation of a continuing relationship
between the Company and those persons which are now or hereafter become Full-Time Employees or Independent Contractors are of critical
importance to the continued business success of the Company; and

 

(e) the Employee will
frequently be the principal intermediary and personal contact between the Company and its Customers and it is, therefore, anticipated
that because of the Employee’s knowledge of the business of said persons or entities and the fact that personal loyalties may develop
between the Employee and said persons or entities, such persons or entities might desire to place their computer programming business
directly with the Employee rather than the Company at such time as the Employee is no longer employed by the Company.

 

2. In view of the foregoing, the Employee
agrees that he shall not at any time (whether during or subsequent to his employment by the Company), except as required and as
authorized by the Company in the conduct of its business, directly or indirectly, publish, use or disclose, or authorize anyone
else to publish, use or disclose:

 

(a) any and all lists
of Customers maintained by the Company, or any parts thereof, or the information contained therein, including but not limited to,
(i) the identity, location and requirements of the Customers, and (ii) the identity of those representatives or employees of such
Customers who have been instrumental in the determination to employ the Company’s services and/or to retain or otherwise utilize
the services of the Company’s Full-Time Employees and/or Independent Contractors;

 

    	 	2	 

     

    

 

(b) the identity, location
and potential requirements of any Customers who have been contacted by the Company as of the date the Employee shall cease to be
employed by the Company and the identity of those representatives or employees of such Customers or potential Customers;

 

(c) the identity, address,
telephone number or other information contained in a resume of any person who was or is a Full-Time Employee or an Independent
Contractor of the Company or who shall be so at the time the Employee shall cease to be employed by the Company; and

 

(d) any other trade secrets
or other confidential information of the Company or of the Company’s Customers divulged to the Employee in confidence during the
course of his employment by the Company,

 

3. The Employee shall not during the term
of Employee’s employment with the Company and for a period of nine (9) months thereafter, directly or indirectly on his own
behalf or on behalf of others:

 

(a) contact, solicit
or do business with any Customer for any purpose relating to providing services that may be competitive with services provided
by the Company; or

 

(b) place, offer to place
or respond to any requests to place any programmers, analysts, or other IT personnel or consultants with any Customers.

 

With respect to the
Customers referenced in set forth in Section 3 above, to the extent that any such Customer has only one location, the restrictions
on the Employee’s activities set forth in Section 3 shall apply to such Customer without limitation. However, to the extent
that any Customer referenced in Section 3 has more than one business location, the restrictions on the Employee’s activities
set forth in Section 3 shall apply only to such Customer’s business locations that are within fifty (50) miles of the site
of any of the Company’s offices.

 

    	 	3	 

     

    

 

Notwithstanding anything
set forth in this Section 3 to the contrary, if (i) the Company terminates Employee’s employment without Cause (as defined
in the 2018 Employment Agreement) or Employee resigns from his employment for Good Reason (as defined in the 2018 Employment Agreement)
and (ii) there is a Material Severance Default (as defined below), then Employee shall automatically be relieved of his
obligations set forth in this Section 3 effective as of the expiration of the cure period described in the definition of Material
Severance Default below. For the avoidance of doubt, the relief of Employee’s obligations set forth in this Section 3 shall
not limit any of Employee’s rights or remedies with respect to the Material Severance Default. “Material Severance
Default” means (A) the Company fails to comply with its post-termination obligations to Employee pursuant to Section 6(e)(i)-(iii)
of the 2018 Employment Agreement or Section 7(a)(i)-(iii) of the 2018 Employment Agreement (as applicable) and (B) such
failure is not cured by the Company within thirty (30) days following Employee’s written notice to the Company describing
such failure in reasonable detail.

 

4. The Employee shall not during the term
of Employee’s employment with the Company and for a period of nine (9) months thereafter, directly or indirectly on his own
behalf or on behalf of others:

 

(a) solicit, contact,
represent, or offer to represent the Company’s Full-Time Employees and/or Independent Contractors, whether or not such solicitation,
contact or offer was initiated, prompted or in any other way developed by the Employee or by the other Full-Time Employee or Independent
Contractor; or

 

(b) employ or contract
with Full-Time Employees or Independent Contractors of the Company.

 

Notwithstanding anything set forth in this
Section 4 to the contrary, if (i) the Company terminates Employee’s employment without Cause (as defined in the 2018 Employment
Agreement) or Employee resigns from his employment for Good Reason (as defined in the 2018 Employment Agreement) and (ii)
there is a Material Severance Default (as defined in Section 3 above), then Employee shall automatically be relieved of his obligations
set forth in this Section 4 effective as of the expiration of the cure period described in the definition of Material Severance
Default set forth in Section 3 above. For the avoidance of doubt, the relief of Employee’s obligations set forth in this
Section 4 shall not limit any of Employee’s rights or remedies with respect to the Material Severance Default.

 

    	 	4	 

     

    

 

5. The Employee shall not during the term
of his employment by the Company and for a period of nine (9) months following the termination of his employment with the Company,
directly or indirectly on his own behalf or on behalf of others, engage in the business of providing, or be employed by a company
that provides, IT staffing services (or other services similar to, or competitive with, the Company’s services) to business
enterprises with locations in the New York Metropolitan Area (a “Competitive Business”); provided, however, the foregoing
shall not prohibit Employee from becoming employed by, or providing services to, a subsidiary or division of an enterprise (such
enterprise, the “Parent Organization”) that does not engage in a Competitive Business notwithstanding
that such Parent Organization has other subsidiaries or divisions that engage in a Competing Business, so long as the Employee
has no direct or indirect involvement in the management or operation of such Parent Organization or such other subsidiaries or
divisions. As used in this Section 5, “New York Metropolitan Area” shall be deemed to include: (i) New York City, (ii)
Long Island, (iii) the Mid and Lower Hudson Valley in the State of New York (i.e., Putnam, Rockland, Westchester, Duchess, Orange,
Sullivan and Ulster Counties), (iv) Northern and Central New Jersey (i.e., all of the State of New Jersey other than the counties
that are South of the New Jersey counties of Monmouth and Mercer), (v) the Connecticut counties of Fairfield, New Haven, and Litchfield
and (vi) the Pennsylvania counties of Pike and Monroe.

 

Notwithstanding anything set forth in this
Section 5 to the contrary, if (a) Employee’s employment is terminated at any time by the Company without Cause (as defined
in the 2018 Employment Agreement), or (b) upon or following a Change in Control (as defined in the 2018 Employment Agreement),
Employee resigns from his employment either for Good Reason (as defined in the 2018 Employment Agreement) or other than for Good
Reason (i.e., for any reason or no reason), then, as of the date of such termination, Employee shall have no further obligations
under this Section 5.

 

6. Upon the date the Employee shall cease
to be employed by the Company, he shall deliver to the Company all property of the Company and/or its Customers and all documents,
records, notebooks, and similar repositories of or containing trade secrets or other confidential information, including copies
thereof, which may then be in the Employee’s possession, whether prepared by the Employee or by others.

 

7. The parties hereto acknowledge that
in the event of a breach or a threatened breach by Employee of any of his obligations under this Agreement, the Company will not
have an adequate remedy at law. Accordingly, in the event of any such breach or threatened breach by Employee of Sections 2, 3,
4, 5 or 6 hereof, the Company shall be entitled to such equitable and injunctive relief as may be available to restrain the Employee
and any business, firm, partnership, individual, corporation or entity participating in such breach or threatened breach. Nothing
herein shall prohibit the Company from pursuing any other remedies available at law or in equity for such breach or threatened
breach.

 

    	 	5	 

     

    

 

8. The Employee expressly acknowledges
that the restrictions set forth herein are essential to the preservation of the Company’s business and that, in the event of Employee’s
termination of employment with the Company, the enforcement thereof will not in any manner preclude Employee from maintaining a
standard of living for himself, the members of his family and those dependent upon him of at least the sort and fashion to which
he and they have become accustomed.

 

9. In the event Employee violates any provision
of this Agreement as to which there is a specific time period during which Employee is prohibited from taking certain actions or
from engaging in certain activities, then such violation shall toll the running of such time period from the date of such violation
until such violation shall cease and shall extend the time period set forth in this Agreement so long as Employee remains in violation.

 

10. If any legal action or other proceeding
is brought by the Company for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation
by Employee in connection with any provision of this Agreement, the Company shall be entitled to recover from the Employee reasonable
attorneys’ fees, court costs and all expenses incurred in that action or proceeding, in addition to any other relief. For purposes
hereof, the Company shall be deemed the prevailing party notwithstanding any reduction of geographical location or period of time

 

11. This Agreement is determinative only
of the matters expressly contained herein.

 

12. This Agreement shall inure to the benefit
of the Company and its successors, administrators, legal representatives and assigns, including any receiver or trustee in bankruptcy
or other insolvency proceeding.

 

13. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York.

 

14. Should any provision, or portion of
any provision, of this Agreement be invalid for any reason, the validity of the remaining provisions, or of the other portions
of the provision in question, shall not be affected thereby.

 

15. The Agreement may be amended only by
writing signed by the parties hereto and no waiver of a breach of any provision hereof shall be effective unless in writing signed
by the party to be charged. No such waiver shall operate or be construed as a waiver of any subsequent breach of such provision.

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF, the parties have hereunto set their hands
as of the date first above written.

 

	EMPLOYEE:	 	FOR TSR, INC.:
	 	 	 
	/s/ Chris Hughes	 	/s/ John G. Sharkey
	Chris Hughes	 	John G. Sharkey
	President	 	Vice President, Finance
	 	 	 
	August 9, 2018	 	August 9, 2018
	Date	 	Date

  

    	 	7

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