Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (“Agreement”) between
DynTek, Inc. (“Company”) and Casper Zublin, Jr. (“Executive”) is effective as
of August 1, 2005 (“Effective Date”).

 

RECITALS

 

Company wishes to employ Executive as its Chief
Executive Officer, and Executive wishes to accept such employment under the
terms and conditions set forth in this Agreement.

 

IT IS AGREED
as follows:

 

1.                                       Employment. 
Company hereby employs Executive as its Chief Executive Officer.  Executive accepts such employment.

 

2.                                       Term. 
The term of employment under this Agreement shall commence on the
Effective Date and shall continue, unless otherwise terminated earlier under
Section 10, until the day before the first anniversary of the Effective Date,
i.e., June 30, 2006 (the “Term”), provided that on the day before each
anniversary of the Effective Date, the Term shall be automatically extended for
successive additional one (1) year periods unless at least thirty (30) days
prior to such anniversary date, either Company or Executive furnishes the other
with written notice that the Term not be so extended.

 

3.                                       Duties. 
Executive shall devote his full-time efforts to the proper and faithful
performance of all duties customarily discharged by a Chief Executive Officer,
consistent with Company policies and budgets and directives of Company’s Board
of Directors, together with any additional duties assigned to him from time to
time by the Board of Directors.  Executive
agrees to use his best efforts and comply with all fiduciary and professional
standards in the performance of his duties. 
Executive shall provide services to any subsidiary or affiliate of Company
without additional compensation and benefits beyond those set forth in this
Agreement.

 

4.                                       Base Salary.  Executive shall be paid a base salary of Two
Hundred Fifty Thousand Dollars ($250,000.00) per annum for the Term payable,
less applicable withholding, in equal monthly payments or more frequently in
accordance with Company’s regular practice. 
Upon extension of the Term, Executive’s base salary will be set by the
Compensation Committee of Company; provided, however, that Executive’s base
salary shall not be reduced from the base salary immediately previously in
effect.

 

5.                                       Bonus. 
Executive shall be eligible to receive an incentive bonus during each
fiscal year of the Term.  The bonus shall
be based upon the achievement of criteria and in amounts as set forth in a
bonus plan established by the Compensation Committee; provided, however, that
the target bonus for fiscal year 2006 shall be One Hundred Fifty Thousand
Dollars ($150,000.00), as adjusted pursuant to the Executive Bonus Plan.

 

6.                                       Stock Options.  Executive is hereby granted options to
purchase 1,000,000 shares of Company common stock at thirty ($.30) cents per
share, vesting over two (2) years in equal monthly installments, in accordance
with the policies of the Company in effect for executive

 

 

management stock option grants.  The
grant hereunder shall vest  in full upon
Executive’s continued employment two (2) years after the grant, unless
Executive is terminated by the Company without Cause or pursuant to a Change in
Control under Section 10(g), in which event it shall vest in full upon such
termination, and shall be exercisable for a one-year period after such
termination.

 

7.                                       Benefits.

 

(a)                                  Executive
shall be entitled to participate in all Company sponsored retirement plans,
401(k) plans, life insurance plans, medical insurance plans, disability
insurance plans, and such other benefit plans generally available from time to
time to executive management of the Company for which he qualifies under the
terms of the plans.  Executive’s
participation in and benefits under any benefit plan shall be on the terms and
subject to the conditions specified in such plan.  The Company shall supplement the insurance
coverage and benefits in a separate executive benefits plan, including a
minimum of $1 million life insurance coverage, to be fully paid by Company.

 

(b)                                 Executive
will receive at least three (3) weeks of paid vacation per year.

 

8.                                       Reimbursement of Expenses.  The Company will reimburse Executive for the ordinary
and necessary expenses incurred by him in the performance of his duties under
this Agreement in accordance with the Company’s policies in effect from time to
time, including, but not limited to reimbursement for membership in the
Adaptive Business Leader Organization and YPO professional organizations.

 

9.                                       Termination of Employment.

 

(a)                                  Executive’s
employment under this Agreement may be terminated at any time by the Board of
Directors of Company (and by the Board of Directors of any subsidiary or
affiliated organization for employment with those entities), with or without
Cause.  Executive’s employment is “at-will.”

 

(b)                                 Executive’s
employment under this Agreement may terminate as described in Section 2.

 

(c)                                  Executive’s
employment under this Agreement shall terminate upon his retirement,
resignation or death.

 

(d)                                 Executive’s
employment under this Agreement shall terminate upon written notice by Company
to Executive of a termination due to Disability.

 

(e)                                  If
Executive’s employment terminates for Cause or for any reason other than as set
forth in Sections 10(f) or (g), Company shall be obligated only to continue to
pay Executive’s base salary and, to the extent earned, accrued and unpaid,
annual incentive bonus and furnish the then existing benefits under Section 8
up to the date of termination; provided, that if Executive’s employment is
terminated as a result of Executive’s Disability, Executive shall remain
eligible for benefits under any long-term disability program of Company, as
amended from time to time, as long as his Disability continues.

 

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(f)                                    If
Executive’s employment is terminated by Company without Cause or upon
expiration of the Term without extension or constructive termination, in
addition to the amounts payable under Section 10(e), Executive shall be
entitled to receive his base salary, and medical and other insurance benefits
under Section 8(a) for a period of twelve (12) months at the times and
frequency regularly paid.  As a condition
to the salary and benefit continuation under this Section 10(f), Executive must
first execute and deliver to Company, in a form prepared by Company, a release
of all claims against Company and other appropriate parties, excluding Company’s
performance under this Section 10(f) and of Executive’s vested rights under any
Company sponsored retirement plans, 401(k) plans and stock ownership
plans.  If Executive, despite good faith,
diligent efforts to obtain employment, has not become employed during the
foregoing twelve (12) month period after termination or remains unemployed
thereafter, the Company shall continue the payment of Executive’s base salary
and medical and other insurance benefits until the earlier of (i) the
expiration of an additional six (6) months or (ii) Executive becoming employed.

 

(g)                                 If
Executive’s employment is terminated by the Company within three (3) months
before or after a Change in Control, or Executive resigns as the result of a constructive
termination following a Change in Control, in addition to the amounts payable
under Section 10(e), upon execution and delivery of the release of all claims
described in Section 10(f), Executive shall be entitled to receive his base
salary and medical and other insurance benefits under Section 8(a) for a period
of twenty-four (24) months.

 

10.                                 Definitions.  The meaning of certain terms in this
Agreement are as follows:

 

(a)                                  “Cause”
shall consist of any of the following:

 

(i)                                   the Executive is
convicted of, or has pleaded guilty or entered a plea of nolo contendere to, a
felony (under the laws of the United States or any state thereof);

 

(ii)                                fraudulent conduct by
the Executive in connection with the business or other affairs of the Company
or any related company or the theft, embezzlement, or other criminal
misappropriation of funds by the Executive from the Company or any related
company;

 

(iii)                             the Executive’s gross
negligence to perform the duties of the Chief Executive Officer or gross
negligence to satisfy fiduciary obligations toward shareholders, after
reasonable notice has been provided of such non-performance and, if such
failure is curable, Executive has not cured such failure within a reasonable
period following such notice; or

 

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(iv)                            the Executive’s gross
negligence to comply with reasonable directives of the Board which are
communicated to him in writing, after reasonable notice has been provided of
such non-performance and, if such failure is curable, Executive has not cured
such failure within a reasonable period following such notice.

 

(b)                                 “Change
in Control” means:

 

(i)                                   a sale or other
disposition of all or substantially all of the assets of the Company;

 

(ii)                                a merger or
consolidation in which the Company is not the surviving entity and in which the
shareholders of the Company immediately prior to such consolidation or merger
own less than fifty percent (50%) of the surviving entity’s voting power
immediately after the transaction;

 

(iii)                             a reverse merger in which
the Company is the surviving entity but the shares of the Company’s Common
Stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash, or
otherwise, and in which the shareholders of the Company immediately prior to
such merger own less that fifty percent (50%) of the Company’s voting power
immediately after the transaction; or

 

(iv)                            any other capital
reorganization in which more than fifty percent (50%) of the shares of the
Company entitled to vote are exchanged (other than to form a holding company in
which the shareholders of the Company immediately prior to such
recapitalization own not less than fifty percent (50%) of the holding company’s
voting power immediately after the transaction).

 

(c)                                  “Disability”
means the inability of Executive, due to injury, illness, disease or bodily or
mental infirmity, to engage in the performance of his material duties of
employment with Company as determined in good faith by Company, for (i) any
period of one hundred twenty (120) consecutive days or (ii) a period of one
hundred eighty days (180) in any continuous twenty-four (24) month period,
provided that interim returns to work of less than ten (10) consecutive
business days in duration shall not be deemed to interfere with a determination
of consecutive absent days if the reason for absence before and after the
interim return are the same.  Benefits to
which Executive is entitled under any disability policy or plan provided by
Company shall reduce the base salary paid to Executive during any period of
Disability on a dollar-for-dollar basis.

 

11.                                 Confidential Information.  During Executive’s employment with the Company
and at all times after the termination of such employment, regardless of the
reason for such termination, Executive shall hold all Confidential Information
relating to the Company in strict confidence and shall not use, disclose or
otherwise communicate the Confidential Information to

 

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anyone other than the Company without the prior written consent of the Company.  “Confidential Information” includes, without
limitation, financial information, trade secrets, business plans, business methods
or practices, market studies, customer lists, referral lists and other proprietary
business information of the Company.  “Confidential
Information” shall not include information which is or becomes in the public
domain through no action by Executive or information which is generally
disclosed by the Company to third parties without restrictions on such third
parties.  Executive shall return all
Confidential Information to the Company upon termination of employment.

 

12.                                 Solicitation of Customers.  During his employment with the Company and
for a period after the termination of Executive’s employment, regardless of the
reason for the termination, equal to the greater of (a) one (1) year or (b) the
period for which Executive receives payment of his base salary under Section 10(f)
or (g) (the “Non-Competition Period”), Executive shall not influence or attempt
to influence, directly or indirectly, any customer of the Company to divert its
business away from the Company.

 

13.                                 Soliciting Employees.  Executive agrees that during his employment
with the Company and during the Non-Competition Period, he will not directly or
indirectly solicit any person who is then, or at any time within six months
prior thereto was, an employee of the Company to work for any person or entity
then in competition with the Company.

 

14.                                 Non-Competition.  During his employment with the Company, Executive
shall not, directly or indirectly, in any capacity:

 

(a)                                  Engage,
own or have any interest in;

 

(b)                                 Manage,
operate, join, participate in, accept employment with, render advice to, or
become interested in or be connected with;

 

(c)                                  Furnish
consultation or advice to; or

 

(d)                                 Permit
his name to be used in connection with;

 

any person or
entity that competes with the business of the Company.  Notwithstanding the foregoing, holding five
percent (5%) or less of an interest in the equity, stock options or debt of any
publicly traded company, and serving as a director, shareholder and/or advisor to
the successor entity of the small to medium business group of Integration
Technologies, Inc.,  shall not be
considered a violation of this Section 15.

 

15.                                 Remedies. 
In the event of a material breach or threatened material breach of
Section 11, Section 12, Section 13 or Section 14, Company, in addition to its
other remedies at law or in equity, shall be entitled to injunctive or other
equitable relief in order to enforce or prevent any violations of the
aforementioned Sections.  In the event of
any such material breach, if applicable Company may immediately cease payment
of Executive’s base salary and the providing to Executive of benefits under
Section 10(f) or (g).

 

16.                                 Severability and Savings.  Each provision in this Agreement is separate.
If necessary to effectuate the purpose of a particular provision, the Agreement
shall survive the

 

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termination of Executive’s employment with the Company.  If any provision of this Agreement, in whole
or in part, is held to be invalid or unenforceable, the parties agree that any
such provision shall be deemed modified to make such provision enforceable to
the maximum extent permitted by applicable law. As to any provision held to be
invalid or unenforceable, the remaining provisions of this Agreement shall
remain in effect.

 

17.                                 Binding Effect.  This Agreement shall be binding upon and
shall inure to the benefit of Company and its successors and assigns. This
Agreement shall be binding upon and inure to the benefit of Executive, his
heirs and personal representatives.  This
Agreement is not assignable by Executive.

 

18.                                 Entire Agreement. 
This Agreement, including the Schedules hereto, embodies the
entire agreement of the parties hereto respecting the matters within its
scope.  This Agreement supersedes all
prior agreements of the parties hereto on the subject matter hereof.  There are no representations, warranties, or
agreements, whether express or implied, or oral or written, with respect to the
subject matter hereof, except as set forth in this Agreement.

 

19.                                 Miscellaneous.

 

(a)                                  No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the Company
and Executive.  The waiver or
nonenforcement by the Company of a breach by Executive of any provision of this
Agreement shall not be construed as a waiver of any subsequent breach by Executive.

 

(b)                                 Any
notice under this Agreement must be in writing and delivered personally or by overnight
courier, sent by facsimile transmission or mailed by registered or certified
mail to the parties at their respective addresses.

 

(c)                                  This
Agreement shall be governed by the laws of the State of California.

 

(d)                                 This
Agreement may be executed in counterparts, which together shall constitute one
Agreement.

 

(e)                                  By
their signatures below, the parties acknowledge that they have had sufficient
opportunity to read and consider, and that they have carefully read and
considered, each provision of this Agreement and that they are voluntarily
signing this Agreement.

 

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The parties have executed this Agreement as of July 13, 2005.

 

 

	
   

  	
  /s/ Casper Zublin, Jr.

  	
   

  
	
   

  	
  Casper Zublin, Jr.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DynTek, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Marshall Toplansky

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
  Chairman, Compensation Committee

  	
   

  

 

7Exhibit 10.2

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (“Agreement”) between
DynTek, Inc. (“Company”) and Robert I. Webber (“Executive”) is effective as of August
1, 2005 (“Effective Date”).

 

RECITALS

 

Company wishes to employ Executive as its President,
Chief Financial Officer and member of the board of directors, and Executive
wishes to accept such employment under the terms and conditions set forth in
this Agreement.

 

IT IS AGREED
as follows:

 

1.                                       Employment. 
Company hereby employs Executive as its President and Chief Financial
Officer.  Executive accepts such
employment.

 

2.                                       Term. 
The term of employment under this Agreement shall commence on the
Effective Date and shall continue, unless otherwise terminated earlier under
Section 10, until the day before the first anniversary of the Effective Date,
i.e., June 30, 2006 (the “Term”), provided that on the day before each
anniversary of the Effective Date, the Term shall be automatically extended for
successive additional one (1) year periods unless at least thirty (30) days
prior to such anniversary date, either Company or Executive furnishes the other
with written notice that the Term not be so extended.

 

3.                                       Duties. 
Executive shall devote his full-time efforts to the proper and faithful
performance of all duties customarily discharged by a President and Chief Financial
Officer, consistent with Company policies and budgets and directives of Company’s
Board of Directors, together with any additional duties assigned to him from
time to time by the Board of Directors.  Executive
agrees to use his best efforts and comply with all fiduciary and professional
standards in the performance of his duties. 
Executive shall provide services to any subsidiary or affiliate of Company
without additional compensation and benefits beyond those set forth in this
Agreement.  Executive shall serve on the
Board(s) of Directors of Company and any affiliate or subsidiary.

 

4.                                       Base Salary.  Executive shall be paid a base salary of Two
Hundred Fifty Thousand Dollars ($250,000.00) per annum for the Term payable,
less applicable withholding, in equal monthly payments or more frequently in
accordance with Company’s regular practice. 
Upon extension of the Term, Executive’s base salary will be set by the
Compensation Committee of Company; provided, however, that Executive’s base
salary shall not be reduced from the base salary immediately previously in
effect.

 

5.                                       Bonus. 
Executive shall be eligible to receive an incentive bonus during each
fiscal year of the Term.  The bonus shall
be based upon the achievement of criteria and in amounts as set forth in a
bonus plan established by the Compensation Committee; provided, however, that
the target bonus for fiscal year 2006 shall be One Hundred Fifty Thousand
Dollars ($150,000), as adjusted pursuant to the Executive Bonus Plan.

 

 

6.                                       Stock Options.  Executive is hereby granted options to
purchase 1,000,000 shares of Company common stock at  thirty cents ($.30) per share, vesting over
two (2) years in equal monthly installments, in accordance with the policies of
the Company in effect for executive management stock option grants.  The grant hereunder shall vest in full upon
Executive’s continued employment two (2) years after the grant, unless
Executive is terminated by the Company without Cause or pursuant to a Change in
Control under Section 10(g), in which event it shall vest in full upon such
termination, and shall be exercisable for a one-year period after such termination.

 

7.                                       Benefits.

 

(a)                                  Executive
shall be entitled to participate in all Company sponsored retirement plans,
401(k) plans, life insurance plans, medical insurance plans, short-term and
long-term disability insurance plans, and such other benefit plans generally
available from time to time to executive management of the Company for which he
qualifies under the terms of the plans.  Executive’s
participation in and benefits under any benefit plan shall be on the terms and
subject to the conditions specified in such plan.  The Company shall supplement the insurance
coverage and benefits in a separate executive benefits plan, including a
minimum of $1 million life insurance coverage and appropriate long-term
disability coverage, to be fully paid by Company.

 

(b)                                 Executive
will receive at least three (3) weeks of paid vacation per year.

 

(c)                                  Executive
shall participate in an executive perk fund with the same parameters available
to certain senior executives, including the Chief Executive Officer.

 

8.                                       Reimbursement of Expenses.  The Company will reimburse Executive for the ordinary
and necessary expenses incurred by him in the performance of his duties under
this Agreement in accordance with the Company’s policies in effect from time to
time, including, but not limited to membership in professional organizations as
approved by the Chief Executive Officer, including but not limited to Adaptive
Business Leaders Organization.

 

9.                                       Termination of Employment.

 

(a)                                  Executive’s
employment under this Agreement may be terminated at any time by the Board of
Directors of Company (and by the Board of Directors of any subsidiary or
affiliated organization for employment with those entities), with or without
Cause.  Executive’s employment is “at-will.”

 

(b)                                 Executive’s
employment under this Agreement may terminate as described in Section 2.

 

(c)                                  Executive’s
employment under this Agreement shall terminate upon his retirement,
resignation or death.

 

(d)                                 Executive’s
employment under this Agreement shall terminate upon written notice by Company
to Executive of a termination due to Disability.

 

2

 

(e)                                  If
Executive’s employment terminates for Cause or for any reason other than as set
forth in Sections 10(f) or (g), Company shall be obligated only to continue to
pay Executive’s base salary and, to the extent earned, accrued and unpaid,
annual incentive bonus and furnish the then existing benefits under Section 8
up to the date of termination; provided, that if Executive’s employment is
terminated as a result of Executive’s Disability, Executive shall remain eligible
for benefits under any long-term disability program of Company, as amended from
time to time, as long as his Disability continues.

 

(f)                                    If
Executive’s employment is terminated by Company without Cause or upon
expiration of the Term without extension or upon constructive termination, in
addition to the amounts payable under Section 10(e), Executive shall be
entitled to receive his base salary, and medical and other insurance benefits
under Section 8(a) for a period of twelve (12) months at the times and
frequency regularly paid.  In addition,
all options granted to Executive shall vest and become immediately
exercisable.  As a condition to the
salary and benefit continuation under this Section 10(f), Executive must first
execute and deliver to Company, in a form prepared by Company, a release of all
claims against Company and other appropriate parties, excluding Company’s
performance under this Section 10(f) and of Executive’s vested rights under any
Company sponsored retirement plans, 401(k) plans and stock ownership
plans.  In addition, all options granted
to Executive shall vest and become immediately exercisable.

 

(g)                                 If
Executive’s employment is terminated by the Company within three (3) months
before or after a Change in Control, or Executive resigns as the result of a
material reduction in his duties or constructive termination following a Change
in Control, in addition to the amounts payable under Section 10(e), upon
execution and delivery of the release of all claims described in Section 10(f),
Executive shall be entitled to receive his base salary, plus annual bonus, and medical
and other insurance benefits under Section 8(a) for a period of twenty-four
(24) months.  In addition, all options
granted to Executive shall vest and become immediately exercisable.

 

10.                                 Definitions.  The meaning of certain terms in this
Agreement are as follows:

 

(a)                                  “Cause”
shall consist of any of the following:

 

(i)                                   the Executive is
convicted of, or has pleaded guilty or entered a plea of nolo contendere to, a
felony (under the laws of the United States or any state thereof);

 

(ii)                              fraudulent
conduct by the Executive in connection with the business or other affairs of
the Company or any related company or the theft, embezzlement, or other
criminal misappropriation of funds by the Executive from the Company or any
related company;

 

3

 

(iii)                             the Executive’s failure to
perform the duties of his office or failure to satisfy fiduciary obligations
toward shareholders, after reasonable written notice has been provided of such
non-performance and, if such failure is curable, Executive has not cured such
failure within a reasonable period following such notice; or

 

(iv)                            the Executive’s gross
negligence to comply with reasonable directives of the Board which are
communicated to him in writing, after reasonable notice has been provided of
such non-performance and, if such failure is curable, Executive has not cured
such failure within a reasonable period following such notice.

 

(b)                                 “Change
in Control” means:

 

(i)                                   a sale or other
disposition of all or substantially all of the assets of the Company;

 

(ii)                                a merger or
consolidation in which the Company is not the surviving entity and in which the
shareholders of the Company immediately prior to such consolidation or merger
own less than fifty percent (50%) of the surviving entity’s voting power
immediately after the transaction;

 

(iii)                             a reverse merger in which
the Company is the surviving entity but the shares of the Company’s Common
Stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash, or
otherwise, and in which the shareholders of the Company immediately prior to
such merger own less that fifty percent (50%) of the Company’s voting power
immediately after the transaction; or

 

(iv)                            any other capital
reorganization in which more than fifty percent (50%) of the shares of the
Company entitled to vote are exchanged (other than to form a holding company in
which the shareholders of the Company immediately prior to such
recapitalization own not less than fifty percent (50%) of the holding company’s
voting power immediately after the transaction).

 

(c)                                  “Disability”
means the inability of Executive, due to injury, illness, disease or bodily or
mental infirmity, to engage in the performance of his material duties of
employment with Company as determined in good faith by Company, for (i) any
period of one hundred twenty (120) consecutive days or (ii) a period of one
hundred eighty days (180) in any continuous twenty-four (24) month period,
provided that interim returns to work of less than ten (10) consecutive
business days in duration shall not be deemed to interfere with a determination
of consecutive absent days if the reason for absence before and after the
interim return are the same.  Benefits to
which Executive is entitled under any disability policy or plan provided by
Company shall reduce the base salary paid to Executive during any period of
Disability on a dollar-for-dollar basis.

 

4

 

11.                                 Confidential Information.  During Executive’s employment with the Company
and at all times after the termination of such employment, regardless of the
reason for such termination, Executive shall hold all Confidential Information
relating to the Company in strict confidence and shall not use, disclose or
otherwise communicate the Confidential Information to anyone other than the Company
without the prior written consent of the Company.  “Confidential Information” includes, without
limitation, financial information, trade secrets, business plans, business methods
or practices, market studies, customer lists, referral lists and other proprietary
business information of the Company.  “Confidential
Information” shall not include information which is or becomes in the public
domain through no action by Executive or information which is generally
disclosed by the Company to third parties without restrictions on such third
parties.  Executive shall return all
Confidential Information to the Company upon termination of employment.

 

12.                                 Solicitation of Customers.  During his employment with the Company and
for a period after the termination of Executive’s employment, regardless of the
reason for the termination, equal to the greater of (a) one (1) year or (b) the
period for which Executive receives payment of his base salary under Section 10(f)
or (g) (the “Non-Competition Period”), Executive shall not influence or attempt
to influence, directly or indirectly, any customer of the Company to divert its
business away from the Company.

 

13.                                 Soliciting Employees.  Executive agrees that during his employment
with the Company and during the Non-Competition Period, he will not directly or
indirectly solicit any person who is then, or at any time within six months
prior thereto was, an employee of the Company to work for any person or entity
then in competition with the Company.

 

14.                                 Non-Competition.  During his employment with the Company, Executive
shall not, directly or indirectly, in any capacity:

 

(a)                                  Engage,
own or have any interest in;

 

(b)                                 Manage,
operate, join, participate in, accept employment with, render advice to, or
become interested in or be connected with;

 

(c)                                  Furnish
consultation or advice to; or

 

(d)                                 Permit
his name to be used in connection with;

 

any person or
entity that competes with the business of the Company.  Notwithstanding the foregoing, holding five
percent (5%) or less of an interest in the equity, stock options or debt of any
publicly traded company, nor serving as the Chairman or as a director of Avalon
Digital Marketing Systems, Inc.,  shall
not be considered a violation of this Section 15.

 

15.                                 Remedies. 
In the event of a material breach or threatened material breach of
Section 11, Section 12, Section 13 or Section 14, Company, in addition to its
other remedies at law or in equity, shall be entitled to injunctive or other
equitable relief in order to enforce or

 

5

 

prevent any violations of the aforementioned Sections.  In the event of any such material breach, if
applicable Company may immediately cease payment of Executive’s base salary and
the providing to Executive of benefits under Section 10(f) or (g).

 

16.                                 Severability and Savings.  Each provision in this Agreement is separate.
If necessary to effectuate the purpose of a particular provision, the Agreement
shall survive the termination of Executive’s employment with the Company.  If any provision of this Agreement, in whole
or in part, is held to be invalid or unenforceable, the parties agree that any
such provision shall be deemed modified to make such provision enforceable to
the maximum extent permitted by applicable law. As to any provision held to be
invalid or unenforceable, the remaining provisions of this Agreement shall
remain in effect.

 

17.                                 Binding Effect.  This Agreement shall be binding upon and
shall inure to the benefit of Company and its successors and assigns. This
Agreement shall be binding upon and inure to the benefit of Executive, his
heirs and personal representatives.  This
Agreement is not assignable by Executive.

 

18.                                 Entire Agreement. 
This Agreement, including the Schedules hereto, embodies the
entire agreement of the parties hereto respecting the matters within its
scope.  This Agreement supersedes all
prior agreements of the parties hereto on the subject matter hereof.  There are no representations, warranties, or
agreements, whether express or implied, or oral or written, with respect to the
subject matter hereof, except as set forth in this Agreement.

 

19.                                 Miscellaneous.

 

(a)                                  No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the Company
and Executive.  The waiver or
nonenforcement by the Company of a breach by Executive of any provision of this
Agreement shall not be construed as a waiver of any subsequent breach by Executive.

 

(b)                                 Any
notice under this Agreement must be in writing and delivered personally or by
overnight courier, sent by facsimile transmission or mailed by registered or
certified mail to the parties at their respective addresses.

 

(c)                                  This
Agreement shall be governed by the laws of the State of California.

 

(d)                                 This
Agreement may be executed in counterparts, which together shall constitute one
Agreement.

 

(e)                                  By
their signatures below, the parties acknowledge that they have had sufficient
opportunity to read and consider, and that they have carefully read and
considered, each provision of this Agreement and that they are voluntarily
signing this Agreement.

 

6

 

The parties have executed this Agreement as of July 13, 2005.

 

 

	
   

  	
   /s/ Robert I. Webber

  	
   

  
	
   

  	
  Robert I. Webber

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DynTek, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Marshall Toplansky

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
   Chairman, Compensation Committee

  	
   

  

 

7

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