Document:

Amended and Restated Change in Control Employment Agreement

 EXHIBIT 10.2 
  
 AMENDED AND RESTATED 
 CHANGE OF CONTROL EMPLOYMENT AGREEMENT 
 AS OF JUNE 15, 2004 
  
 AGREEMENT by and between MAPICS, Inc. (the “Company”) and Martin
Avallone (the “Executive”), dated as of the              day of March, 1998. 
  
 The Board of Directors of the Company (the “Board”), has determined that it is in the best interests of the Company and its stockholders to
assure that the Company will have the continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined below) of the Company. The Board believes it is imperative to diminish the
inevitable distraction of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive’s full attention and dedication to the Company currently and in the
event of any threatened or pending Change of Control, and to provide the Executive with compensation and benefits arrangements upon a Change of Control which ensure that the compensation and benefits expectations of the Executive will be satisfied
and which are competitive with those of other corporations. Therefore, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement. 
  
 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 
  
 1. Certain Definitions. 
  
 (a) The “Effective Date” shall mean the first date during the Change of Control Period (as defined in Section 1(b)) on which a
Change of Control (as defined in Section 2) occurs. Anything in this Agreement to the contrary notwithstanding, if a Change of Control occurs during the Change of Control Period and if the Executive’s employment with the Company has been
terminated either by the Company without Cause or by the Executive for Good Reason (as such terms are defined in Section 5) within one year prior to the date on which the Change of Control occurs, and unless it is reasonably demonstrated by the
Company that such termination of employment (i) was not at the request of a third party who has taken steps reasonably calculated to effect the Change of Control and (ii) did not otherwise arise in connection with or anticipation of the Change of
Control, then for all purposes of this Agreement the “Effective Date” shall mean the date immediately prior to the date of such termination of employment. 
  
 (b) The “Change of Control Period” shall mean the period commencing on the date hereof and ending
on the third anniversary of the date hereof; provided, however, that commencing on the date one year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof shall be hereinafter referred to
as the “Renewal Date”), unless previously terminated, the Change of Control Period shall be automatically extended so as to terminate three years 

  

 
from such Renewal Date, unless at least 60 days prior to the Renewal Date the Company shall give notice to the Executive that the Change of Control Period
shall not be so extended. 
  
 2. Change of Control. For the
purposes of this Agreement, a “Change of Control” shall mean: 
  
 (a) The acquisition by any 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 “Exchange Act”)) (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of the combined voting power of the then outstanding voting 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 of Control: (i) any acquisition by a Person who is on the date of this
Agreement the beneficial owner of 25% or more of the Outstanding Company Voting Securities, (ii) any acquisition directly from the Company, (iii) any acquisition by the Company, (iv) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the Company, or (v) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) of this Section 2; or

  
 (b) Individuals who, as of the date of this
Agreement, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date of this Agreement whose
election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent
Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs 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) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of
the Company (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners, respectively, 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, respectively, the then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in 

  

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substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding
Company Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 25% or more of the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination, and
(iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or 
  
 (d) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
  
 3. Employment Period. The Company hereby agrees to continue the Executive in its employ, and the Executive hereby agrees to remain in the employ of
the Company subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on the third anniversary of such date (the “Employment Period”). 
  
 4. Terms of Employment. 
  
 (a) Position and Duties. 
  
 (i) During the Employment Period, (A) the Executive’s
position (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all material respects with the most significant of those held, exercised and assigned at any time
during the 120-day period immediately preceding the Effective Date, and (B) the Executive’s services shall be performed at the location where the Executive was employed immediately preceding the Effective Date or any office or location less
than 35 miles from such location. 
  
 (ii) During
the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and,
to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period it shall not
be a violation of this Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) engage in other business activities that do not represent a conflict of interest with the full execution of his duties to the
Company, and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement. It is expressly
understood and agreed that to the 

  

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extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive’s responsibilities to the Company. 
  
 (b) Compensation. 
  
 (i) Base Salary. During the Employment Period, the
Executive shall receive base salary at the rate of $230,000 per year (“Annual Base Salary”), less normal withholdings, payable in equal monthly or more frequent installments as are customary under the Company’s payroll practices from
time to time. During the Employment Period, the Annual Base Salary shall be reviewed no more than 12 months after the last salary increase awarded to the Executive prior to the Effective Date and thereafter at least annually. Any increase in Annual
Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. Annual Base Salary shall not be reduced after any such increase and the term Annual Base Salary as utilized in this Agreement shall refer to
Annual Base Salary as so increased. As used in this Agreement, the term “affiliated companies” shall include any company controlled by, controlling or under common control with the Company. 
  
 (ii) Annual Bonus. In addition to Annual Base Salary,
the Executive shall be awarded, for each fiscal year ending during the Employment Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the Executive’s highest annual bonus for the last three full fiscal years prior
to the Effective Date (annualized in the event that the Executive was not employed by the Company for the whole of such fiscal year). Each such Annual Bonus shall be paid no later than the end of the third month of the fiscal year next following the
fiscal year for which the Annual Bonus is awarded, unless the Executive shall elect to defer the receipt of such Annual Bonus. 
  
 (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive shall be entitled to participate
in all incentive, savings and retirement plans, practices, policies and programs applicable generally to other peer executives of the Company and its affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with incentive opportunities (measured with respect to both regular and special incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement benefit opportunities, in each
case, less favorable, in the aggregate, than the most favorable of those provided by the Company and its affiliated companies for the Executive under such plans, practices, policies and programs as in effect at any time during the 120-day period
immediately preceding the Effective Date or if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives of the Company and its affiliated companies. 
  
 (iv) Welfare Benefit Plans. During the Employment
Period, the Executive and/or the Executive’s family, as the case may be, shall be eligible for 

  

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participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and its affiliated
companies (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other peer executives of the
Company and its affiliated companies, but in no event shall such plans, practices, policies and programs provide the Executive with benefits which are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and
programs in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives of the
Company and its affiliated companies. 
  
 (v)
Expenses. During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the most favorable policies, practices and procedures of the
Company and its affiliated companies in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to
other peer executives of the Company and its affiliated companies. 
  
 (vi) Fringe Benefits. During the Employment Period, the Executive shall be entitled to fringe benefits in accordance with the most favorable plans, practices, programs and policies of the Company and its
affiliated companies in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer
executives of the Company and its affiliated companies. 
  
 5.
Termination of Employment. 
  
 (a)
Death or Disability. The Executive’s employment shall terminate automatically upon the Executive’s death during the Employment Period. If the Company determines in good faith that the Disability of the Executive has occurred during
the Employment Period (pursuant to the definition of Disability set forth below), it may give to the Executive written notice in accordance with Section 12(b) of this Agreement of its intention to terminate the Executive’s employment. In such
event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, the
Executive shall not have returned to full-time performance of the Executive’s duties. For purposes of this Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties with the Company on a
full-time basis for 180 consecutive 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. 
  

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 (b) Cause. The Company may terminate the Executive’s employment during the
Employment Period with or without Cause. For purposes of this Agreement, “Cause” shall mean: 
  
 (i) the willful and continued failure of the Executive to perform substantially the Executive’s duties with the Company or one of its
affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board or the Chief Executive Officer of the Company which
specifically identifies the manner in which the Board or Chief Executive Officer believes that the Executive has not substantially performed the Executive’s duties, or 
  
 (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is materially and
demonstrably injurious to the Company. 
  
 For purposes of this provision, no act
or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the
best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer or a senior officer of the Company or based upon the
advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for
Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for
such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the particulars thereof in detail. 
  
 (c) Good Reason. The Executive’s employment may be terminated by the Executive for Good Reason or for no reason. For purposes
of this Agreement, “Good Reason” shall mean: 
  
 (i) the assignment to the Executive of any duties inconsistent in any respect with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 4(a) of this Agreement, or any other action by the Company which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive; 
  

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 (ii) any failure by the Company to comply with any of the provisions of Section 4(b) of
this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive; 
  
 (iii) the Company’s requiring the Executive to be based
at any office or location other than as provided in Section 4(a)(i)(B) hereof or the Company’s requiring the Executive to travel on Company business to a substantially greater extent than required immediately prior to the Effective Date;

  
 (iv) any purported termination by the Company
of the Executive’s employment otherwise than as expressly permitted by this Agreement; or 
  
 (v) any failure by the Company to comply with and satisfy Section 11(c) of this Agreement. 
  
 For purposes of this Section 5(c), any good faith determination of “Good
Reason” made by the Executive shall be conclusive. Anything in this Agreement to the contrary notwithstanding, a termination by the Executive for any reason during the 30-day period immediately following the first anniversary of the Effective
Date shall be deemed to be a termination for Good Reason for all purposes of this Agreement. 
  
 (d) Notice of Termination. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by
Notice of Termination to the other party hereto given in accordance with Section 12(b) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) to the extent applicable, sets 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) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than 30 days after the giving of such notice). 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 such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder. 
  
 (e) Date of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company
for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause or
Disability, the Date of Termination shall be the date on which the Company notifies the Executive of such termination or any later date specified in such notice, (iii) if the Executive’s employment is terminated by reason of death or 

  

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Disability, the Date of Termination shall be the date of death of the Executive or the Disability Effective Date, as the case may be. 
  
 6. Obligations of the Company upon Termination. 
  
 (a) Good Reason; Other Than for Cause, Death or
Disability. If, during the Employment Period, the Company shall terminate the Executive’s employment other than for Cause or Disability, or the Executive shall terminate employment for Good Reason, then in consideration of Executive’s
services rendered prior to such termination and of Executive’s covenants contained in Section 10 hereof: 
  
 (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: 
  
 A. the sum of (1) the
Executive’s Annual Base Salary through the Date of Termination to the extent not theretofore paid, (2) the product of (x) the Annual Bonus paid or payable, including any bonus or portion thereof which has been earned but deferred, 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 (3) any compensation previously deferred by the Executive (together with any accrued interest
or earnings thereon and subject to any prior election by the Executive to receive such deferred amounts in installments) and any accrued vacation pay, in each case to the extent not theretofore paid (the sum of the amounts described in clauses (1),
(2), and (3) shall be hereinafter referred to as the “Accrued Obligations”); and 
  
 B. the amount equal to two times the sum of (1) the Executive’s Annual Base Salary and (2) $55,000 (such amount representing the
approximate average of the annual bonus earned by Executive in Company’s fiscal years 2001 (if present), 2002, and 2003); 
  
 (ii) for two years after the Executive’s 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 benefits to the Executive and/or the Executive’s family at least equal to those which would have been provided to them in accordance with the plans, programs, practices
and policies described in Section 4(b)(iv) of this Agreement if the Executive’s employment had not been terminated or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of
the Company and its affiliated companies and their families, provided, however, that if the Executive becomes re-employed with another employer and is eligible to receive medical or other welfare benefits under another employer provided plan, the
medical and other welfare benefits described herein shall be secondary to those provided under such other plan during such applicable period of eligibility. For purposes of determining eligibility (but not the time of commencement of benefits) of
the Executive for retiree benefits pursuant to such plans, practices, programs and policies, the 

  

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Executive shall be considered to have remained employed until two years after the Date of Termination and to have retired on the last day of such period;

  
 (iii) to the extent not theretofore 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 under any plan, program, policy or practice or 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) notwithstanding any provision of this Agreement to the contrary, the Executive shall forfeit his right to receive, or, to the extent
such amounts have previously been paid to the Executive, shall repay in full to the Company within thirty (30) days of a final determination of the Executive’s liability therefor as set forth below, the amount described in Section 6(a)(i)(B) of
this Agreement if at any time during the period of two years after the Date of Termination he violates the Restrictive Covenants set forth in Section 10 hereof. 
  
 (b) Death. If the Executive’s employment is terminated by reason of the Executive’s death
during the Employment Period, this Agreement shall terminate without further obligations to the Executive’s legal representatives under this Agreement, other than for payment of Accrued Obligations and the timely payment or provision of Other
Benefits. Accrued Obligations shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination. With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include without limitation, and the Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most favorable of the following: (1) of the benefits provided by the
Company and affiliated companies to the estates and beneficiaries of peer executives of the Company and such affiliated companies under such plans, programs, practices and policies relating to death benefits, if any, as in effect with respect to
other peer executives and their beneficiaries at any time during the 120-day period immediately preceding the Effective Date, or (2) similar benefits in effect on the date of the Executive’s death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries. 
  
 (c) Disability. If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment Period, this Agreement shall terminate without further obligations to the
Executive, other than for payment of Accrued Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination. With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this Section 6(c) shall include, and the Executive shall be entitled after the Disability Effective Date to receive, disability and other benefits at least equal to the most
favorable of the following: (1) disability and other benefits generally provided by the Company and its affiliated companies to disabled executives and/or their families in accordance with such plans, programs, practices and policies relating to
disability, if any, 

  

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as in effect generally with respect to other peer executives and their families at any time during the 120-day period immediately preceding the Effective
Date, or (2) disability and other benefits in effect at any time thereafter generally with respect to other peer executives of the Company and its affiliated companies and their families. 
  
 (d) Cause; Other than for Good Reason. If the
Executive’s employment shall be terminated for Cause during the Employment Period, this Agreement shall terminate without further obligations to the Executive other than the obligation to pay to the Executive (x) his Annual Base Salary through
the Date of Termination, (y) the amount of any compensation previously deferred by the Executive, and (z) Other Benefits, in each case to the extent theretofore unpaid. If the Executive voluntarily terminates employment during the Employment Period,
excluding a termination for Good Reason, this Agreement shall terminate without further obligations to the Executive, other than for Accrued Obligations and the timely payment or provision of Other Benefits. In such case, all Accrued Obligations
shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination. 
  
 7. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan,
program, policy or practice provided by the Company or any of its affiliated companies and for which the Executive may qualify, nor, subject to Section 12(f), shall anything herein limit or otherwise affect such rights as the Executive may have
under any contract or agreement with the Company or any of its affiliated companies. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or
agreement with the Company or any of its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this
Agreement. 
  
 8. Full Settlement. The Company’s
obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have
against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and, except as
explicitly provided herein, such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay as incurred, to the full extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of 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 about the amount of any payment 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
Internal Revenue Code of 1986, as amended (the “Code”). 
  

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 9. Certain Additional Payments by the Company. 
  
 (a) Anything in this Agreement to the contrary
notwithstanding and except as set forth below, in the event it shall be determined that any payment or distribution by the Company to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 9) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are
incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an
additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any
interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing
provisions of this Section 9(a), if it shall be determined that the Executive is entitled to a Gross-Up Payment, but that the Executive, after taking into account the Payments and the Gross-Up Payment, would not receive a net after-tax benefit of at
least $100,000 (taking into account both income taxes and any Excise Tax) as compared to the net after-tax proceeds to the Executive resulting from an elimination of the Gross-Up Payment and a reduction of the Payments, in the aggregate, to an
amount (the “Reduced Amount”) such that the receipt of Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to the Executive and the Payments, in the aggregate, shall be reduced to the Reduced Amount.

  
 (b) Subject to the provisions of Section
9(c), all determinations required to be made under this Section 9, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made
by PricewaterhouseCoopers L.L.P. or such other certified public accounting firm as may be designated by the Executive (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or
group effecting the Change of Control, the Executive shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by the Company to the Executive within five days of the receipt of the Accounting
Firm’s determination. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of 

  

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Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have
been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 9(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive. 
  
 (c) The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on
which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall: 
  
 (i) give the Company any information reasonably requested by the Company relating to such claim, 
  
 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 
  
 (iii) cooperate with the Company in good faith in order effectively to contest such claim, and 
  
 (iv) permit the Company to participate in any proceedings
relating to such claim; 
  
 provided, however, that the Company shall bear and pay
directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest
and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation of the foregoing provisions of this Section 9(c), the Company shall control all proceedings taken in connection with
such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any 

  

 - 12 - 

 
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if
the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute
of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing
authority. 
  
 (d) If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 9(c), the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of Section
9(c)) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 9(c), a
determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
  
 10. Restrictions on Conduct of the Executive. The Executive and the
Company understand and agree that the purpose of the provisions of this Section 10 is to protect legitimate business interests of the Company, as more fully described below, and is not intended to eliminate the Executive’s post-employment
competition with the Company per se, nor is it intended to impair or infringe upon the Executive’s right to work, earn a living, or acquire and possess property from the fruits of his labor. The Executive hereby acknowledges that the
post-employment restrictions set forth in this Section 10 are reasonable and that they do not, and will not, unduly impair his ability to earn a living after the termination of this Agreement. Therefore, subject to the limitations of reasonableness
imposed by law upon the restrictions set forth herein by the time and geographical area described below, the Executive shall be subject to the restrictions set forth in this Section 10. 
  

 - 13 - 

 (a) Definitions. The following capitalized terms used in this Section 10 shall
have the meanings assigned to them below, which definitions shall apply to both the singular and the plural forms of such terms: 
  
 “Competitive Services” means providing enterprise resource planning software applications for discrete and batch-process
mid-size manufacturing enterprises (i.e., enterprises having annual revenue of $20 million to $500 million). 
  
 “Confidential Information” means any confidential or proprietary information possessed by the Company or its affiliated
entities or relating to its or their business, including without limitation, any confidential customer lists, details of client or consultant contracts, current and anticipated customer requirements, pricing policies, price lists, market studies,
business plans, operational methods, marketing plans or strategies, product development techniques or plans, unannounced computer software programs, computer software program source code, data and documentation, data base technologies, computer
program structures and architectures, inventions and ideas, past, current and planned research and development, compilations, devices, methods, techniques, processes, financial information and data, business acquisition plans, new personnel
acquisition plans and any other information that would constitute a “trade secret(s)” under the common law or statutory law of the State of Georgia. 
  

“Determination Date” means the date of termination of the Executive’s employment with the Company for any reason
whatsoever or any earlier date (during the Employment Period) of an alleged breach of the Restrictive Covenants by the Executive. 
  
 “Person” means any individual or any corporation, partnership, joint venture, association or other entity or enterprise.

  
 “Principal or
Representative” means a principal, owner, partner, shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent, representative or consultant. 
  
 “Protected Customers” means customers of
the Company that purchased Competitive Services from the Company within one (1) year prior to the Determination Date. 
  
 “Protected Employees” means employees of the Company who were employed by the Company at any time within six (6) months
prior to the Determination Date. 
  
 “Restricted Period” means the period extending two (2) years from the termination of the Executive’s employment with the Company for any reason whatsoever. 
  
 “Restricted Territory” means the following territory, in which the Executive engages in the
provision of Competitive Services on behalf of the Company on the date of this Agreement: State of Georgia. 
  

 - 14 - 

 “Restrictive Covenants” means the restrictive covenants contained in
Section 10 hereof. 
  
 (b) Restrictive
Covenants. 
  
 (i) Restriction on
Disclosure and Use of Confidential Information. The Executive understands and agrees that the Confidential Information constitutes a valuable asset of the Company and its affiliated entities, and may not be converted to the Executive’s own
use. Accordingly, the Executive hereby agrees that the Executive shall not, directly or indirectly, at any time during the Restricted Period reveal, divulge, or disclose to any Person not expressly authorized by the Company any Confidential
Information, and the Executive shall not, directly or indirectly, at any time during the Restricted Period use or make use of any Confidential Information in connection with any business activity other than that of the Company. The parties
acknowledge and agree that this Agreement is not intended to, and does not, alter either the Company’s rights or the Executive’s obligations under any state or federal statutory or common law regarding trade secrets and unfair trade
practices. 
  
 (ii) Nonsolicitation of
Protected Employees. The Executive understands and agrees that the relationship between the Company and each of its Protected Employees constitutes a valuable asset of the Company and may not be converted to the Executive’s own use.
Accordingly, the Executive hereby agrees that during the Restricted Period the Executive shall not directly or indirectly on the Executive’s own behalf or as a Principal or Representative of any Person or otherwise solicit or induce any
Protected Employee to terminate his or her employment relationship with the Company or to enter into employment with any other Person. 
  
 (iii) Nonsolicitation of Protected Customers. The Executive understands and agrees that the relationship between the Company and
each of its Protected Customers constitutes a valuable asset of the Company and may not be converted to the Executive’s own use. Accordingly, the Executive hereby agrees that, during the Restricted Period, the Executive shall not, without the
prior written consent of the Company, directly or indirectly, on the Executive’s own behalf or as a Principal or Representative of any Person or otherwise, solicit a Protected Customer for the purpose of providing or selling Competitive
Services; provided, however, that the prohibition of this covenant shall apply only to Protected Customers with whom the Executive had Material Contact on the Company’s behalf during the twelve (12) months immediately preceding the Date of
Termination. For purposes of this Agreement, the Executive had “Material Contact” with a Protected Customer if (a) he had business dealings with the Protected Customer on the Company’s behalf; (b) he was responsible for supervising or
coordinating the dealings between the Company and the Protected Customer; or (c) he obtained Confidential Information about the customer as a result of his association with the Company. 
  

 - 15 - 

 (iv) Noncompetition with the Company. The Executive understands and agrees that,
during the Restricted Period and within the Restricted Territory, he shall not, directly or indirectly, on his own or on behalf of any Person, be affiliated with as a Principal or Representative any Person engaged, in whole or in part, in the
provision of Competitive Services in a capacity where Executive’s duties or responsibilities for such Person will include strategic planning, policymaking or management; provided, however, that the provisions of Section 10 shall not be deemed
to prohibit the ownership by the Executive of any securities of the Company or its affiliated entities or not more than five percent (5%) of any class of securities of any corporation having a class of securities registered pursuant to the Exchange
Act. 
  
 (c) Exceptions from Disclosure
Restrictions. Anything herein to the contrary notwithstanding, the Executive shall not be restricted from disclosing or using Confidential Information that: (a) is or becomes generally available to the public other than as a result of an
unauthorized disclosure by the Executive or his agent; (b) becomes available to the Executive in a manner that is not in contravention of applicable law from a source (other than the Company or its affiliated entities or one of its or their
officers, employees, agents or representatives) that is not bound by a confidential relationship with the Company or its affiliated entities or by a confidentiality or other similar agreement; (c) was known to the Executive on a non-confidential
basis and not in contravention of applicable law or a confidentiality or other similar agreement before its disclosure to the Executive by the Company or its affiliated entities or one of its or their officers, employees, agents or representatives;
or (d) is required to be disclosed by law, court order or other legal process; provided, however, that in the event disclosure is required by law, the Executive shall provide the Company with prompt notice of such requirement so that the Company may
seek an appropriate protective order prior to any such required disclosure by the Executive. 
  
 (d) Enforcement of Restrictive Covenants. 
  

(i) Rights and Remedies Upon Breach. In the event the Executive breaches, or threatens to commit a breach of, any of the
provisions of the Restrictive Covenants, the Company shall have the following rights and remedies, which shall be independent of any others and severally enforceable, and shall be in addition to, and not in lieu of, any other rights and remedies
available to the Company at law or in equity: 
  
 (A) the right and remedy to enjoin, preliminarily and permanently, the Executive from violating or threatening to violate the Restrictive Covenants and to have the Restrictive Covenants specifically enforced by any court of competent
jurisdiction, it being agreed that any breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the Company; and 
  
 (B) the right and remedy to require the Executive to
account for and pay over to the Company all compensation, profits, monies, accruals, 

  

 - 16 - 

 
increments or other benefits derived or received by the Executive as the result of any transactions constituting a breach of the Restrictive Covenants.

  
 (ii) Severability of Covenants. The
Executive acknowledges and agrees that the Restrictive Covenants are reasonable and valid in time and scope and in all other respects. If any court determines that any of the Restrictive Covenants, or any part thereof, are invalid or unenforceable,
the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect, without regard to the invalid portions. 
  
 (iii) Attorneys’ Fees. In any action relating to the enforcement of the Restrictive Covenants, the prevailing party in such
action shall be entitled to be paid any and all costs and expenses incurred by him or it in enforcing or establishing his or its rights thereunder, including, without limitation, reasonable attorneys’ fees, whether suit be brought or not, and
whether or not incurred in trial, bankruptcy or appellate proceedings. 
  
 11. Successors. 
  
 (a) This
Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s legal representatives. 
  
 (b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 
  
 (c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.
As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

  
 12. Miscellaneous. 
  
 (a) This Agreement shall be governed by and construed in
accordance with the laws of the State of Georgia, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or
modified otherwise than-by a written agreement executed by the parties hereto or their respective successors and legal representatives. 
  

 - 17 - 

 (b) All notices and other communications hereunder shall be in writing and shall be given
by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  
 If to the Executive: 
  
 Martin Avallone 
 229 Nacoochee Drive

 Atlanta, Georgia 30305 
  
 If to the Company: 
  
 MAPICS, Inc. 
 5775-D Glenridge Drive

 Atlanta, Georgia 30328 
 Attention: Corporate Secretary 
  
 or to such other address as either
party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 
  
 (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement. 
  
 (d) The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
  
 (e) The Executive’s or the Company’s failure to
insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Section 5(c)(i)-(v) of this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 
  
 (f) The Executive and the Company acknowledge that, except as may otherwise be provided under any other
written agreement between the Executive and the Company, the employment of the Executive by the Company is “at will” and, subject to Section 1(a) hereof, prior to the Effective Date, the Executive’s employment may be terminated by
either the Executive or the Company at any time prior to the Effective Date, in which case the Executive shall have no further rights under this Agreement. However, absent termination of employment of the Executive, this Agreement may not be
terminated by the Company during the Change of Control Period and before the Effective Date. From and after the Effective Date, this Agreement shall supersede any other 

  

 - 18 - 

 
agreement between the parties with respect to the subject matter hereof, including without limitation any then-current employment agreement between the
Company and the Executive. 
  
 IN WITNESS WHEREOF, the Executive
has hereunto set the Executive’s hand and, pursuant to the authorization from its Board of Directors, the Company has caused this Agreement to be executed in its name on its behalf by its undersigned officer thereunto, duly authorized, all as
of the day and year first above written. 
  

					
	 
	
	 MAPICS, INC.

		
	By:	 	 
			
	 	 	 Title:
	 	 

  

 - 19 -Retirement Letter Agreement

 EXHIBIT 10.3 
  
 Personal and Confidential 
  
 June 18, 2004 
  
 Mr. Peter E. Reilly 
 2220 Blackheath Trace 
 Alpharetta, Georgia 30005 
  
 Dear Pete:

  
 This letter sets forth our agreement regarding your retirement and resignation
from MAPICS, Inc. (the “Company”). 
  
 1. You will step down as Chief
Operating Officer for the Company effective June 30, 2004 (the “Retirement Date”) at which time you will no longer be considered an employee or named executive officer of the Company. You also hereby resign from any directorship positions,
officer positions or subscriptions you hold with the Company, its subsidiaries and affiliates or other organizations on the Company’s behalf effective as of such Retirement Date. You will assist the Company in a reasonable transition of your
work and perform such other reasonable transition-related duties as assigned by the Chief Executive Officer or his designee. 
  
 2. Through the Retirement Date you will receive a gross base salary of $10,000 semi-monthly and remain eligible to participate in the current benefits plans. Your
benefits costs and deductions for this period will be appropriately deducted and all applicable taxes withheld. You will not be eligible for any cash bonus for your or the Company’s performance during the third or fourth fiscal quarter of the
Company’s 2004 fiscal year or thereafter. 
  
 As of the Retirement Date, your
salary will cease and any entitlement you have or might have under any other Company-provided bonus plan or benefit plan, program or practice shall be immediately forfeited except as required by federal or state law or as otherwise expressed in this
letter. You agree that you have utilized all vacation owing and shall not be entitled to any further payments reflecting vacation whether or not it is accrued. The Change of Control Agreement dated October 1, 1999, as amended (“CiC
Agreement”) between you and the Company is hereby terminated as of the date of this 

  

 1 

 
letter agreement. You hereby agree that your termination shall not be considered as “in connection with or anticipation of the Change of Control”
as described in the CiC Agreement and you hereby waive all rights and benefits as described in the CiC Agreement and release the Company from all claims related thereto. The Retirement Date shall be treated as your “qualifying event” under
the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and you will receive COBRA information under separate cover. 
  
 As soon as reasonably practicable, the Company shall assign to you its interest in the current Company laptop personal computer and cell phone that you use and you shall
be responsible for all liabilities associated with those assets thereafter. You shall return all other MAPICS assets and materials to MAPICS, including without limit, those files contained on the referenced laptop personal computer. 
  
 3. On or before June 30, 2004 and provided you are otherwise in compliance with the terms of
this letter agreement, you will be paid a gross severance payment of $300,000.  
  
 4. As of the date of this letter agreement the 30,000 shares of restricted stock granted to you on August 19, 2003, shall be forfeited and you agree that the associated Restricted Stock Award Agreement between you and the Company related to
that grant is hereby immediately terminated. Attached as Exhibit 1 hereto is a list of stock options granted to you during your employment and still outstanding (“Options”). The terms of the Option Plan documents and your award
certificates/agreement shall apply to said Options. In the event of conflict, the terms of this letter agreement shall take precedence over any Option Plan documents. You shall comply with all applicable securities laws, including those regarding
insider trading. 
  
 5. Release By You. As a material inducement to the
Company to enter into this letter agreement you, for yourself and your representatives, agents, servants, executors, administrators, estates, heirs, successors and assigns, except as otherwise provided herein, hereby fully, forever, irrevocably and
unconditionally release, remise and discharge the Company and its corporate affiliates, the Company’s officers, directors, stockholders, agents and employees, both individually and in their official capacities, from any and all claims, charges,
complaints, money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities and expenses (including attorneys’ fees and costs) of every kind and nature which you
ever had or now have against the Company and its corporate affiliates, the Company’s officers, directors, stockholders, agents and employees, both individually and in the official capacities, whether based on any federal or state law or
regulation regarding either employment or employment discrimination, including but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42, U.S.C. 12000e et seq.; the Age Discrimination in Employment Act, 29 U.S.C. 1621 et
seq.; the Americans with Disabilities Act, 29 U.S.C 1621 et seq.; wrongful discharge claims; any contract claims, whether oral or written, express or implied; any claims for back wages, salary, draws, commissions, bonuses, vacation pay, expenses,
compensation, or severance pay, or any other statutory or common law claims and damages. 
  

 2 

 6. Release By the Company. As a material inducement to you to enter into this letter agreement the Company, for
itself and for its corporate affiliates and officers, directors, stockholders, agents and employees, both individually and in their official capacities, except as otherwise provided herein, hereby fully, forever, irrevocably and unconditionally
release, remise and discharge you and your representatives, agents, servants, executors, administrators, heirs, successors and assigns from any and all claims, charges, complaints, money, costs, accounts, reckonings, covenants, contracts,
agreements, promises, doings, omissions, damages, executions, obligations, liabilities and expenses (including attorneys’ fees and costs) of every kind and nature which the Company ever had or now have against you or your representatives,
agents, servants, executors, administrators, heirs, successors and assigns, whether based on any federal or state law or regulation or common law including without limitation any claims arising from any of your authorized acts while you are or were
an employee of the Company; any contract claims whether oral or written, express or implied; any claims for contribution or indemnification, or any other statutory or common law claims and damages; provided, however, that the foregoing shall in no
way release you from any claims arising from your breach of section 8 of this letter agreement. 
  
 7. In addition, by your acceptance hereof, you acknowledge and agree that: 
  
 a) You have been informed that if you are 40 years of age or older, you have or might have specific rights and/or claims under the Age Discrimination in Employment Act. In consideration of the compensation described
in this letter agreement, you specifically waive such rights and/or claims to the extent such rights and/or claims arose prior to the date this letter agreement was executed. 
  
 b) You were advised by the Company of your right to consult with an attorney prior to executing this letter agreement. 
  
 c) You were further advised when you were presented by the Company with the original draft of
this letter agreement that you had at least 21 days within which to consider its terms and consult with or seek advice from an attorney or any other person of your choosing. 
  
 d) By initialing below, you hereby acknowledge that you were informed and understand that you had at least 21 days within which to consider
this letter agreement, have consulted with an attorney regarding this letter agreement or have chosen not to consult with an attorney, and have considered carefully every provision of this letter agreement, and that after having engaged those
actions, prefer to and have requested that you enter into this letter agreement prior to the expiration of the 21 day period discussed above. 
  

									
					
	 	 	
	 	 	 	
	 	 
	 	 	 Initial
	 	 	 	 Date
	 	 

  

 3 

 8. You agree that you will not disclose or deliver to anyone, including employees of the Company, except as authorized by
the Company, or use in any way other than in the Company’s business, any information or material relating to the business of the Company (including information or materials received by the Company or its subsidiaries from others) and intended
by the Company to be kept in confidence by its recipients. As used in this letter agreement, the term “information” includes all information concerning the technical, administrative, management, financial or marketing activities (such as
design, manufacturing and procurement specifications, procedures, manufacturing processes, information processing processes, or programs, marketing plans and strategies, plans for future development, customer and employee names, customer contact
information or customer financial data, or other data and cost and financial data) and the term “materials” includes all physical embodiments of information (such as drawings, specification sheets, recording media for machine information
processing systems, documentation of all types, contracts, reports, customer lists, employee lists, manuals, quotations, proposals, correspondence and samples). You shall promptly return all materials in your possession or control. You further agree
that you will not disclose to any third party except your immediate family members and legal and tax advisors, the existence or terms and conditions of this letter agreement. You may also disclose the existence and general terms of this letter
agreement to prospective employers and professional recruiters who agree to treat it in confidence and to not further disclose it to any third party. In consideration of the severance payment described in section 3, for a period of twelve (12)
months from the date of this letter agreement, you further agree: a) not to, directly or indirectly, on your own behalf or that of another, solicit or induce any employee of the Company to terminate his/her employment relationship with the Company
or to enter into an employment relationship with another; b) directly or indirectly, on your own behalf or that of another, solicit a customer of the Company with whom you have had contact with during the period 12 months prior to your Retirement
Date, for the purpose of marketing, selling or licensing competitive software or services; c) directly or indirectly, on your own behalf or that of another, solicit a sales affiliate of the Company with whom you have had contact with during the
period 12 months prior to your Retirement Date, for the purpose of establishing a relationship for the marketing, selling or licensing competitive software or services; and d) not to, directly or indirectly, be employed by or provide services in any
way to those competitive entities identified in Exhibit 2 hereto (which is attached and incorporated herein by this reference), except as otherwise expressly agreed to in advance by the Company. In the event of any breach by you of this section, in
addition to any other remedies available to the Company at law or in equity, you hereby agree to immediately pay back to the Company the full amount of severance payment described in section 3 above. 
  
 9. You acknowledge that irreparable injury might result to the business and property of the
Company in the event of your breach of any of the terms contained in this letter agreement. You further understand and agree that, in the event of such breach or the substantial likelihood of such breach, monetary damages shall be difficult to
calculate and that the Company shall be entitled to receive injunctive relief in order to protect fully its interest and property. 
  

 4 

 10. The invalidity or unenforceability of any provision hereof or the invalidity or unenforceability of any provision
hereof as applied to a particular occurrence or circumstance shall not affect the validity or enforceability of any other provision hereof or any other application of any such provision. If one or more of the provisions contained herein shall for
any reason be held to be excessively broad as to scope, activity, or subject matter so as to be unenforceable at law, such provision(s) shall be construed and reformed by the appropriate judicial body by limiting or reducing it (or them) so as to be
enforceable to the maximum extent compatible with the applicable law as it shall then appear. 
  
 11. This agreement shall be governed by, and construed in accordance with, the laws of Georgia, without giving effect to the principles of conflicts of law thereof. 
  
 12. This letter agreement and its Exhibits represents the complete and exclusive agreement
and understanding relating to the termination of your employment and supersedes any and all prior agreements or understandings, oral or written, between the Company and you with respect to the subject matter. 
  
 13. You represent that you have read this letter agreement, fully understand the terms and
conditions and are voluntarily executing this letter agreement. In entering this letter agreement, you do not rely on any representation, promise or inducement made by the Company, with the exception of the consideration described in this letter
agreement. 
  
 14. This letter agreement may be executed in any number of
counterparts, each of which shall constitute an original, but which taken together shall constitute one instrument. 
  
 INTENTIONALLY LEFT BLANK 
  

 5 

 15. You may revoke this letter agreement for a period of seven days following its execution, and this letter agreement
shall not be effective or enforceable until this revocation period has expired. 
  
 Sincerely, 
  

			
	 MAPICS, Inc.

		
	By:	 	 
	 	 	 Richard C. Cook
 Chief Executive Officer

  

			
	 AGREED TO AND ACCEPTED:

		
	By:	 	 
	 	 	 Peter E. Reilly

		
	 Date:
	 	 
		
	 CC:
	 	 Marty Avallone

  

 6 

 Exhibit 1 
  
 Options 
  
 Attach AST Stockplan printout of Reilly stock options as of March 31, 2004. As of that date, options on 285,000 shares were outstanding. This number does not include the 52,500 Options granted on May 28, 2004.

  

 7 

 Exhibit 2 
 Competitive Entities 
  
 Epicor 
 IFS 
 QAD 
 GEAC 
 Made 2 Manage 
 Lilly

 Manugistics 
 I2 
 Oracle 
 Intentia 
 American Software 
 Agility 
 Logility 
 SSA Global Technologies 
 Peoplesoft 
 SAP 
  

 8

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