Document:

Exhibit 10.44

 

FIFTH AMENDMENT TO SECOND AMENDED

AND RESTATED CREDIT AGREEMENT

 

This FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
(this “Fifth Amendment”) is entered into as of November 5, 2015 and made by and among HARVARD BIOSCIENCE, INC. (the
“Borrower”), BANK OF AMERICA N.A., as Administrative Agent (“Agent”) L/C Issuer and Lender, and BROWN BROTHERS
HARRIMAN & CO. (“BBH”).

 

Background

 

The Borrower, the Agent and BBH entered into a Second Amended and
Restated Credit Agreement dated as of March 29, 2013, as amended by First Amendment to Second Amended and Restated Credit Agreement
dated May 30, 2013 with an effective date as of April 30, 2013, as amended by Second Amendment to Second Amended and Restated Credit
Agreement and Waiver dated October 31, 2013, as amended by Third Amendment to Second Amended and Restated Credit Agreement dated
April 24, 2015, as amended by Fourth Amendment to Second Amended and Restated Credit Agreement dated June 30, 2015 (collectively,
the “Original Credit Agreement”). Capitalized terms used herein but not defined herein will have the meaning given
such term in the Original Credit Agreement. The Borrower has requested that the Agent and the Lenders amend the Minimum Fixed Charge
Coverage Ratio for the December 31, 2015 test date and decrease the Revolving Credit Commitment availability for a period. The
Original Credit Agreement, as amended by this Fifth Amendment, as further amended, modified or supplemented from time to time,
is referred to herein as the “Credit Agreement”.

 

NOW, THEREFORE, in consideration of the promises and the agreements,
provisions and covenants herein contained, the Borrower, the Agent and the Lenders hereby agree as follows:

 

1.                 
Amendment. Subject to the terms and conditions herein contained and in reliance on the representations and warranties
of the Borrower herein contained, effective upon satisfaction of the conditions precedent contained in section 2 below, the
following amendments shall be incorporated into the Original Credit Agreement:

 

(A)Section 1.01, “Defined Terms” of the Original
Credit Agreement is hereby amended to add the following definitions:

 

“Fifth Amendment Effective Date” means
November 5, 2015.

 

“Revolving Credit Commitments Reset Date”
means the first date on which each of the following conditions are satisfied:

 

(a)the Borrower has delivered the financial statements
required under Section 6.01(b) and a compliance certificate required under Section 6.02(a), each for the fiscal quarter
ending June 30, 2016; and

 

     

     

    

(b)no Default or Event of Default has occurred and is
continuing.

 

“Revolving Loan Limited Borrowing Period”
has the meaning specified in Section 2.01(b).

 

(B)Section 1.01, “Defined Terms” of the
Original Credit Agreement is hereby amended by deleting the definition of “Revolving Credit Commitments” in
its entirety and replacing it with the following in lieu thereof:

 

“Revolving Credit Commitment” means,
as to each Revolving Credit Lender, its obligation to (a) make Revolving Credit Loans to the Borrower pursuant to Section 2.01(b)(ii)
and (b) purchase participations in L/C Obligations , in an aggregate principal amount at any one time outstanding not to exceed
the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Revolving Credit Commitment”
or opposite such caption in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable,
as such amount may be adjusted from time to time in accordance with this Agreement. The aggregate amount of the Revolving Credit
Commitments on the Fifth Amendment Effective Date is $25,000,000 which amount may be reduced from time to time in accordance with
the terms of this Agreement and is limited during the Revolving Loan Limited Borrowing Period.

 

(C)Section 2.01 (b), “The Revolving
Credit Borrowings” of the Original Credit Agreement is hereby amended by deleting the text therein contained in its entirety
and replacing it with the following in lieu thereof:

 

“(b)The Revolving Credit Borrowings.
Subject to the terms and conditions set forth herein, each Revolving Credit Lender severally agrees to make loans (each such loan,
a “Revolving Credit Loan”) to the Borrower from time to time, on any Business Day during the Availability Period
for the Revolving Credit Facility, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s
Revolving Credit Commitment; provided, however, that the maximum aggregate amount available for advances of the Revolving
Credit Commitments for the period (the “Revolving Loan Limited Borrowing Period”) commencing on the Fifth Amendment
Effective Date and ending on the Revolving Credit Commitments Reset Date shall be in an aggregate amount of $10,000,000, and provided
further that, after giving effect to any Revolving Credit Borrowing, (i) the Total Revolving Credit Outstandings, shall
not exceed the Revolving Credit Facility or, if during the Revolving Loan Limited Borrowing Period, shall not exceed an aggregate
of $10,000,000 and (ii) the aggregate Outstanding Amount of the Revolving Credit Loans of any Lender, plus such Revolving
Credit Lender’s Applicable Revolving Credit Percentage of the Outstanding Amount of all L/C Obligations, shall not exceed
such Revolving Credit Lender’s Revolving Credit Commitment or, if during the Revolving Loan Limited Borrowing Period, shall
not exceed such Revolving Credit Lender’s Applicable Revolving Credit Percentage of an aggregate of $10,000,000. Within the
limits of each Revolving Credit Lender’s Revolving Credit Commitment, and subject to the other terms and conditions hereof,
including, without limitation, any voluntary or automatic reduction thereof, as provided under Section 2.06, and the limitation
during the Revolving Loan Limited Borrowing Period, the Borrower may borrow under this Section 2.01(b), prepay under Section
2.05, and reborrow under this Section 2.01(b). Revolving Credit Loans may be LIBOR Daily Floating Rate Loans or Eurodollar
Rate Loans, as further provided herein.”

 

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(D)Section 2.09 (a), “Fees”
of the Original Credit Agreement is hereby amended by deleting the text therein contained in its entirety and replacing it with
the following in lieu thereof:

 

“(a)Commitment Fee. The Borrower
shall pay to the Administrative Agent for the account of each Revolving Credit Lender in accordance with its Applicable Revolving
Credit Percentage, a commitment fee equal to one-half of one percent (0.50%) per annum times the actual daily amount by which the
Revolving Credit Facility exceeds the sum of (i) the Outstanding Amount of Revolving Credit Loans and (ii) the Outstanding Amount
of L/C Obligations. The commitment fee shall accrue at all times during the Availability Period, including at any time during which
one or more of the conditions in Article IV is not met, and shall be due and payable quarterly in arrears on the last Business
Day of each March, June, September and December, commencing with the first such date to occur after the Closing Date, and, in the
case of the commitment fee with respect to the Revolving Credit Facility, on the last day of the Availability Period for the Revolving
Credit Facility. The commitment fee shall be calculated quarterly in arrears.”

 

(E)Section 7.11(b), “Financial Covenants;
Minimum Fixed Charge Coverage Ratio” of the Original Credit Agreement is hereby amended by deleting the text therein
contained in its entirety and replacing it with the following in lieu thereof:

 

“Minimum Fixed Charge Coverage Ratio.
As of the last day of any fiscal quarter, the ratio of (i) consolidated Adjusted EBITDA of the Borrower and its Subsidiaries (for
the avoidance of doubt, excluding HART) for the four-quarter period ending on the last day of such fiscal quarter, minus,
(x) aggregate cash capital expenditures, minus (y) cash taxes paid, each of (x) and (y) for the four-quarter period
ending on the last day such fiscal quarter, to (ii) the current portion of Funded Debt other than the Total Revolving Credit Outstandings,
as of the last day of such fiscal quarter, plus (without duplication) Interest Expense during such trailing four (4) fiscal
quarters, to be less than 1.25:1.00 for each of the trailing four fiscal quarters ending March 31, 2016 and to be less than 1.50:1.00
for each of the trailing four quarters thereafter, provided that, notwithstanding the forgoing, there will be no test for
the Fixed Charge Coverage Ratio for the period ending December 31, 2015.”

 

2.                 
Conditions Precedent. The provisions of this Fifth Amendment shall be effective as of the date on which all of the
following conditions shall be satisfied:

 

(a)               
the Borrower shall have delivered to the Agent a fully executed counterpart of this Fifth Amendment;

 

(b)              
the Borrower shall have paid all fees, costs and expenses owing to the Agent and its counsel on or before the date hereof;

 

(c)               
the Borrower shall have paid to the Agent for the pro rata account of the Lenders an amendment fee in the aggregate amount
of $18,800; and

 

    	 	- 3 -	 

     

    

(d)              
the Lenders shall have indicated their consent and agreement by executing this Fifth Amendment.

 

3.                 
Miscellaneous.

 

(a)               
Ratification. The terms and provisions set forth in this Fifth Amendment shall modify and supersede all inconsistent
terms and provisions set forth in the Original Credit Agreement and except as expressly modified and superseded by this Fifth Amendment,
the terms and provisions of the Original Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue
in full force and effect. The Borrower and the Agent agree that the Original Credit Agreement as amended hereby and the other Loan
Documents shall continue to be legal, valid, binding and enforceable in accordance with their respective terms. For all matters
arising prior to the effective date of this Fifth Amendment, the Original Credit Agreement (as unmodified by this Amendment) shall
control. The Borrower hereby acknowledges that, as of the date hereof, the security interests and liens granted to the Agent and
the Lender under the Credit Agreement and the other Loan Documents are in full force and effect, are properly perfected and are
enforceable in accordance with the terms of the Credit Agreement and the other Loan Documents.

 

(b)              
Representations and Warranties. The Borrower hereby represents and warrants to the Agent and the Lenders that
the representations and warranties set forth in the Loan Documents, after giving effect to this Fifth Amendment, are true and correct
in all material respects on and as of the date hereof, with the same effect as though made on and as of such date except with respect
to any representations and warranties limited by their terms to a specific date. The Borrower further represents and warrants to
the Agent and the Lenders that the execution, delivery and performance by the Borrower of this consent letter (i) are within
the Borrower’s power and authority; (ii) have been duly authorized by all necessary corporate and shareholder action; (iii)
are not in contravention of any provision of the Borrower’s certificate or articles of incorporation or bylaws or other organizational
documents; (iv) do not violate any law or regulation, or any order or decree of any Governmental Authority; (v) do not conflict
with or result in the breach or termination of, constitute a default under or accelerate any performance required by, any indenture,
mortgage, deed of trust, lease, agreement or other instrument to which the Borrower is a party or by which the Borrower or any
of its property is bound; (vi) do not result in the creation or imposition of any Lien upon any of the property of the Borrower
other than in favor of Agent; (vii) do not require the consent or approval of any Governmental Authority. All representations and
warranties made in this Fifth Amendment shall survive the execution and delivery of this Fifth Amendment, and no investigation
by the Agent shall affect the representations and warranties or the right of the Agent to rely upon them.

 

(c)               
Reference to Agreement. Each of the Loan Documents, including the Original Credit Agreement and any and all
other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to
the terms of the Original Credit Agreement as amended hereby, are hereby amended so that any reference in such Loan Documents to
the Original Credit Agreement shall mean a reference to the Original Credit Agreement as amended hereby.

 

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(d)              
Expenses of the Agent. As provided in the Credit Agreement, the Borrower agrees to pay all reasonable costs
and expenses incurred by the Agent in connection with the preparation, negotiation, and execution of this Fifth Amendment, including
without limitation, the reasonable costs and fees of the Agent’s legal counsel.

 

(e)               
Severability. Any provision of this Fifth Amendment held by a court of competent jurisdiction to be invalid
or unenforceable shall not impair or invalidate the remainder of this Fifth Amendment and the effect thereof shall be confined
to the provision so held to be invalid or unenforceable.

 

(f)               
Applicable Law. This Amendment shall be governed by and construed in accordance with the laws of The Commonwealth
of Massachusetts and the applicable laws of the United States of America.

 

(g)              
Successors and Assigns. This Fifth Amendment is binding upon and shall inure to the benefit of the Agent,
the Lender and the Borrower, and their respective successors and assigns, except the Borrower may not assign or transfer any of
its rights or obligations hereunder without the prior written consent of the Agent.

 

(h)              
Counterparts. This Fifth Amendment may be executed in one or more counterparts and on facsimile counterparts,
each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and
the same agreement.

 

(i)                
Effect of Waiver. No consent or waiver, express or implied, by the Agent to or for any breach of or deviation
from any covenant, condition or duty by the Borrower shall be deemed a consent or waiver to or of any other breach of the same
or any other covenant, condition or duty.

 

(j)                
Headings. The headings, captions, and arrangements used in this Fifth Amendment are for convenience only and
shall not affect the interpretation of this Fifth Amendment.

 

(k)              
FATCA. For purposes of determining withholding Taxes imposed under FATCA, from and after the effective date
of the Amendment, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent
to treat) the Loans as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section
1.1471-2(b)(2)(i)).

 

(l)                
ENTIRE AGREEMENT. THIS FIFTH AMENDMENT EMBODIES THE ENTIRE AGREEMENT AMONG THE PARTIES HERETO WITH RESPECT
TO THE SUBJECT MATTER THEREOF, AND SUPERSEDES ANY AND ALL PRIOR REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING
TO THIS AMENDMENT. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF.

 

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Fifth Amendment
as of the date first above written.

 

	 	BORROWER
	 	 
	 	HARVARD BIOSCIENCE, INC.
	 	 
	 	 
	 	By:/s/ Robert E. Gagnon
	 	Name: Robert E. Gagnon
	 	Title: CFO
	 	 
	 	 
	 	AGENT
	 	 
	 	BANK OF AMERICA, N.A., as Agent
	 	 
	 	 
	 	By: /s/ Renee Marion
	 	Name: Renee Marion
	 	Title: Assistant Vice President
	 	 
	 	 
	 	LENDERS
	 	 
	 	BANK OF AMERICA, N.A., as a Lender
	 	 
	 	 
	 	By: /s/ Peter McCarthy
	 	Name: Peter McCarthy
	 	Title: SVP
	 	 
	 	 
	 	BROWN BROTHERS HARRIMAN & CO., as a Lender
	 	 
	 	 
	 	By: /s/ Daniel G. Head, Jr.
	 	Name: Daniel G. Head, Jr.
	 	Title: Senior Vice PresidentExhibit 10.1

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (the “Agreement”), dated as of May 1, 2016, between 6D Global Technologies, Inc., a Delaware corporation (the “Company”), and Brad Timchuk (the “Employee”).

W I T N E S S E T H :

WHEREAS, the Company desires to employ the Employee as its President & Chief Operating Officer and to be assured of his services on the terms and conditions hereinafter set forth; and

WHEREAS, the Employee is willing to be employed as President & Chief Operating Officer of the Company on such terms and conditions; and

WHEREAS, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) has recommended to the Company’s Board of Directors (the “Board”) that this Agreement be entered into by the Company, and the Board has authorized and approved the execution and delivery  of this Agreement by the Company.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, the Company and the Employee hereby agree as follows:

	
1.

	
Employment and Term.

The Company hereby employs the Employee as the President & Chief Operating Officer of the Company, and the Employee accepts such continued employment, upon the terms and subject to the conditions set forth in this Agreement. The term of this Agreement shall commence on May 1, 2016 (the “Commencement Date”) and shall terminate on the second (2nd) anniversary of the Commencement Date (the “Term”), subject to earlier termination as provided herein.

	
2.

	
Duties.

 

(a) During the Term of this Agreement, the Employee shall serve as the President & Chief Operating Officer of the Company and shall perform all duties commensurate with his position and as may be assigned to him. The Employee shall devote his full business time and energies to the business and affairs of the Company and shall use his best efforts, skills and abilities to promote the interests of the Company, and to diligently and competently perform the duties of his position.

 

(b) The Employee shall report to the Chief Executive Officer (CEO), and shall communicate regularly.

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3.

	
Compensation, Bonus, Benefits, etc.

 

(a) Salary.  During the Term of this Agreement, the Company shall pay to the Employee, and the Employee shall accept from the Company, as compensation for the performance of services under this Agreement and the Employee’s observance and performance of all of the provisions hereof, an annual salary at the rate of $240,000.00 (the “Base Compensation”).

(b) Bonus. In addition to the Base Compensation described above, the Employee shall be entitled to a Performance Bonus for Fiscal year 2016 based upon the below criteria:

	
·

	
$30,000.00 Bonus should the Company hit a break even target for two (2) consecutive months (November and December) prior to the end of Fiscal year 2016.

	
·

	
A Discretionary Bonus would be payable should a minimum 5% EBITDA be attained for Fiscal year 2016.

The bonus amounts, as approved by the Compensation Committee of the Board, shall be payable to the Employee in the first payroll cycle post the completion of the outside financial audit of the year in which it was earned.

(c) Stock Options. Pursuant to the 2015 Omnibus Incentive Plan and the 2015 Employee Stock Option Plan, the Employee will be granted 200,000 Non-Qualified Stock Options on May 1, 2016. The strike price will be determined by the closing price on the grant date via OTCMarkets.com as the source for fair market value approved by the Board of Directors on April 13, 2016. Stock Options will vest in equal installments over a five (5) year period on the grant date anniversary.

(d) Benefits. During the Term of this Agreement, the Employee shall be entitled to participate in or benefit from, in accordance with the eligibility and other provisions thereof, the Company’s medical insurance and other fringe benefit plans or policies as the Company may make available to, or have in effect for, its senior executive officers from time to time. The Company and its affiliates retain the right to terminate or alter any such plans or policies from time to time. The Employee shall also be entitled to four weeks paid vacation each year, sick leave and other similar benefits in accordance with policies of the Company from time to time in effect for its senior executive officers.

(e) Reimbursement of Business Expenses.  During the Term of this Agreement, upon submission of proper invoices, receipts or other supporting documentation reasonably satisfactory to the Company and in accordance with and subject to the Company’s expense reimbursement policies, the Employee shall be reimbursed by the Company for all reasonable business expenses actually and necessarily incurred by the Employee on behalf of the Company in connection with the performance of services under this Agreement.

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(f) Taxes. The Base Compensation and any other cash compensation paid to Employee, including, without limitation, any bonus, shall be subject to withholding for applicable taxes and other amounts.

	
4.

	
Representations of Employee.

 

The Employee represents and warrants that he is not party to, or bound by, any agreement or commitment, or subject to any restriction, including but not limited to agreements related to previous employment containing confidentiality or noncompetition covenants, which limit the ability of the Employee to perform his duties under this Agreement.

	
5.

	
Confidentiality, etc.

For purposes of this Section 5, all references to the Company shall be deemed to include the Company’s affiliates and subsidiaries and their respective subsidiaries, whether now existing or hereafter established or acquired. In consideration for the compensation and benefits provided to the Employee pursuant to this Agreement, the Employee agrees with the provisions of this Section 5. The “Restrictive Period” is defined as one (1) year, commencing from date employment terminates with the Company (hereafter referred to as “Termination Date”) through the first (1st) anniversary of Termination Date, except in bankruptcy where the “Restricted Period” would be waived.

(a) Confidential Information. (i) The Employee acknowledges that as a result of his retention by the Company, the Employee has and will continue to have knowledge of, and access to, proprietary and confidential information of the Company including, without limitation, research and development plans and results, software, databases, technology, inventions, trade secrets, technical information, know-how, plans, specifications, methods of operations, product and service information, product and service availability, pricing information (including pricing strategies), financial, business and marketing information and plans, and the identity of customers, clients and suppliers (collectively, the “Confidential Information”), and that the Confidential Information, even though it may be contributed, developed or acquired by the Employee, constitutes valuable, special and unique assets of the Company developed at great expense which are the exclusive property of the Company. Accordingly, the Employee shall not, at any time, either during or subsequent to the Term of this Agreement, use, reveal, report, publish, transfer or otherwise disclose to any person, corporation, or other entity, any of the Confidential Information without the prior written consent of the Company, except to responsible officers and employees of the Company and other responsible persons who are in a contractual or fiduciary relationship with the Company and who have a need for such Confidential Information for purposes in the best interests of the Company, and except for such Confidential Information which is or becomes of general public knowledge from authorized sources other than by or through the Employee.

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(ii) The Employee acknowledges that the Company would not enter into this Agreement without the assurance that all the Confidential Information will be used for the exclusive benefit of the Company.

(b) Return of Confidential Information. Upon the termination of this Agreement or upon the request of the Company, the Employee shall promptly return to the Company all Confidential Information in his possession or control, including but not limited to all drawings, manuals, computer printouts, computer databases, disks, data, files, lists, memoranda, letters, notes, notebooks, reports and other writings and copies thereof and all other materials relating to the Company’s business, including, without limitation, any materials incorporating Confidential Information.

(c) Inventions, etc. During the Term and for a period of one year thereafter, the Employee will promptly disclose to the Company all designs, processes, inventions, improvements, developments, discoveries, processes, techniques, and other information related to the business of the Company conceived, developed, acquired, or reduced to practice by him alone or with others during the Term of this Agreement, whether or not conceived during regular working hours, through the use of Company time, material or facilities or otherwise (“Inventions”).

 

The Employee agrees that all copyrights created in conjunction with his service to the Company and other Inventions, are “works made for hire” (as that term is defined under the Copyright Act of 1976, as amended). All such copyrights, trademarks, and other Inventions shall be the sole and exclusive property of the Company, and the Company shall be the sole owner of all patents, copyrights, trademarks, trade secrets, and other rights and protection in connection therewith. To the extent any such copyright and other Inventions may not be works for hire, the Employee hereby assigns to the Company any and all rights he now has or may hereafter acquire in such copyrights and any other Inventions. Upon request the Employee shall deliver to the Company all drawings, models and other data and records relating to such copyrights, trademarks and Inventions. The Employee further agrees as to all such Inventions, to assist the Company in every proper way (but at the Company’s expense) to obtain, register, and from time to time enforce patents, copyrights, trademarks, trade secrets, and other rights and protection relating to said Inventions in any and all countries, and to that end the Employee shall execute all documents for use in applying for and obtaining such patents, copyrights, trademarks, trade secrets and other rights and protection on and enforcing such Inventions, as the Company may reasonably request, together withany assignments thereof to the Company or persons designated by it.Such obligation to assist the Company shall continue beyond the termination of the Employee’s service to the Company, but the Company shall compensate the Employee at a reasonable rate after termination of service for time actually spent by the Employee  at the Company’s request for such assistance. In the event the Company is unable, after reasonable effort, to secure the Employee’s signature on any document or documents needed to apply for or prosecute any patent, copyright, trademark, trade secret, or other right or protection relating to an Invention, whether because of the Employee’s physical or mental incapacity or for any other reason whatsoever, the Employee hereby irrevocably designates and appoints the Company and its duly authorized officers and agents, during the Term of this Agreement and for a period of two years after termination of this Agreement, as his agent coupled with an interest and attorney-in-fact, to act for and in his behalf and stead to execute and file any such application or applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights, trademarks, trade secrets, or similar rights or protection thereon with the same legal force and effect as if executed by the Employee.

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(d) Non-Competition.  The Employee agrees not to utilize his special knowledge of the Business and his relationships with customers, prospective customers, suppliers and others or otherwise to compete with the Company in the Business during the Restricted Period. During the Restricted Period, the Employee shall not, and shall not permit any of his respective employees, agents or others under his control, directly or indirectly, on behalf of the Employee or any other Person, to engage or have an interest, anywhere in the world in which the Company conducts business or markets or sells its products, alone or in association with others, as principal, officer, agent, employee, director, partner or stockholder (except as an owner of two percent or less of the stock of any company listed on a national securities exchange or traded in the over-the-counter market), whether through the investment of capital, lending of money or property, rendering of services or capital, or otherwise, in any Competitive Business. During the Restricted Period, the Employee shall not, and shall not permit any of his respective employees, agents or others under his control, directly or indirectly, on behalf of the Employee or any other Person, to accept Competitive Business from, or solicit the Competitive Business of any Person who is a customer of the Business conducted by the Company, or, to the Employee’s knowledge, is a customer of the Business conducted by the Company at any time during the Restricted Period.

 

(e) Non-Disparagement and Non-Interference.  The Employee shall not, either directly or indirectly, (i) during the Restricted Period, make or cause to be made, any statements that are disparaging or derogatory concerning the Company or its business, reputation or prospects; (ii) during the Restricted Period, request, suggest, influence or cause any party, directly or indirectly, to cease doing business with or to reduce its business with the Company or do or say anything which could reasonably be expected to damage the business relationships of the Company; or (iii) at any time during or after the Restricted Period, use or purport to authorize any Person to use any Intellectual Property owned by the Company or exclusively licensed to the Company or to otherwise infringe on the intellectual property rights of the Company.

 

(f) Non-Solicitation. During the Restricted Period, the Employee shall not recruit or otherwise solicit or induce any Person who is an employee or consultant of, or otherwise engaged by Company, to terminate his or her employment or other relationship with the Company, or such successor, or hire any person who has left the employ of the Company during the preceding one year.

 

(g) Certain Definitions. For purposes of this Agreement: (i) the term “Business” shall mean the business of providing information technology solutions, including supply chain, analytics, content management, information security, information technology professional services and managed services, mobile application development, digital and content management systems, web content management, enterprise management systems and resource planning, information technology infrastructure staffing, and any other business that the Company or its subsidiaries may be engaged in during the Term of this Agreement; (ii) the term “Competitive Business” shall mean any business competitive with the Business; and (iii) the term “Restricted Period” shall mean the Term of this Agreement and a period of one (1) year after termination of this Agreement; provided, that, if Employee breaches the covenants set forth in this Section 5, the Restricted Period shall be extended for a period equal to the period that a court having jurisdiction has determined that such covenant has been breached.

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6. Remedies.  The restrictions set forth in Section 5 are considered by the parties to be fair and reasonable.The Employee acknowledges that the restrictions contained in Section 5 will not prevent him from earning a livelihood. The Employee further acknowledges that the Company would be irreparably harmed and that monetary damages would not provide an adequate remedy in the event of a breach of the provisions of Section 5.  Accordingly, the Employee agrees that, in addition to any other remedies available to the Company, the Company shall be entitled to injunctive and other equitable relief to secure the enforcement of these provisions. In connection with seeking any such equitable remedy, including, but not limited to, an injunction or specific performance, the Company shall not be required to post a bond as a condition to obtaining such remedy. In any such litigation, the prevailing party shall be entitled to receive an award of reasonable attorneys’ fees and costs. If any provisions of Sections 5 or 6 relating to the time period, scope of activities or geographic area of restrictions is declared by a court of competent jurisdiction to exceed the maximum permissible time period, scope of activities or geographic area, the maximum time period, scope of activities or geographic area, as the case may be, shall be reduced to the maximum which such court deems enforceable. If any provisions of Sections 5 or 6 other than those described in the preceding sentence are adjudicated to be invalid or unenforceable, the invalid or unenforceable provisions shall be deemed amended (with respect only to the jurisdiction in which such adjudication is made) in such manner as to render them  enforceable and to effectuate as nearly as possible the original intentions and agreement of the parties. For purposes of this Section 6, all references to the Company shall be deemed to include the Company's affiliates and subsidiaries, whether now existing or hereafter established or acquired.

7. Termination.  This Agreement shall terminate at the end of the Term set forth in Section 1. In addition, this Agreement may be terminated prior to the end of the Term set forth in Section 1 upon the occurrence of any of the events set forth in, and subject to the terms of, this Section 7.

(a)  Death or Permanent Disability. If the Employee dies or becomes permanently disabled, this Agreement shall terminate effective upon the Employee’s death or when his disability is deemed to have become permanent. If the Employee is unable to perform his normal duties for the Company because of illness or incapacity (whether physical or mental) for 45 consecutive days during the Term of this Agreement, or for 60 days (whether or not consecutive) out of any calendar year during the Term of this Agreement, his disability shall be deemed to have become permanent.  If this Agreement is terminated on account of the death or permanent disability of the Employee, then the Employee or his estate shall be entitled to receive accrued Base Compensation through the date of such termination, and be entitled to all vested stock options held by the Employee or the Employee’s estate. The Employee or the Employee’s estate, as applicable, shall have no further entitlement to Base Compensation, bonus, stock options or benefits from the Company following the effective date of such termination, except as provided in Section 3(b) and the last two sentences of Section 3(d) of this Agreement; provided, however, that any bonus pursuant to Section 3(b) of this Agreement shall be paid only for the year in which such termination occurred pro-rated for the portion of such year prior to such termination and shall be paid at such time as the Board determines the bonuses for all senior executive officers of the Company for such year, but no later than March 15 of the year following the year in which it was earned.

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(b) Cause. This Agreement may be terminated at the Company’s option, immediately upon notice to the Employee, upon the occurrence of any of the following (“Cause”): (i) breach by the Employee of any material provision of this Agreement and the expiration of a 10-business day cure period for such breach after written notice thereof has been given to the Employee (which cure period shall not be applicable to clauses (ii) through (iv) of this Section 7(b)); (ii) conviction or plea of nolo contendre in connection with a crime; (iii) fraud, criminal conduct, dishonesty or embezzlement by the Employee; or (iv) Employee’s misappropriation for personal use of any assets of a material value or business opportunities of the Company. If this Agreement is terminated by the Company for Cause, then the Employee shall be entitled to receive accrued Base Compensation through the date of such termination, all stock options, whether vested or unvested, will be forfeited by the Employee and will terminate and be null and void and the Employee shall have no further entitlement to Base Compensation, bonus, stock options, or benefits from the Company following the effective date of such termination.

 

(c) Without Cause. This Agreement may be terminated, at any time by the Company without Cause immediately upon giving written notice to the Employee of such termination. Upon the termination of this Agreement by the Company without Cause, the Employee shall be entitled to receive three (3) months Base Salary or $60,000.00 in one lump sum within five (5) days of the effective date of such termination, subject to withholding for applicable taxes and other amounts. Any unvested stock options shall terminate and be null and void and the Employee shall have no further entitlement to Base Compensation, bonus, stock options or benefits from the Company following the effective date of such termination, except as provided in the last two sentences of Section 3(d) of this Agreement.

	
(d)

	
By Employee.

 

(i) Subject to the provisions of clause (ii) of this Section 7(d), the Employee may terminate this Agreement at anytime upon providing the Company with three (3) months prior written notice. If this Agreement is terminated by the Employee pursuant to this Section 7(d)(i), then the Employee shall be entitled to receive his accrued Base Compensation and benefits through the effective date of such termination, any unvested stock options shall terminate and be null and void and the Employee shall have no further entitlement to Base Compensation, bonus, stock options, or benefits from the Company following the effective date of such termination, except as provided in the last two sentences of Section 3(d) of this Agreement.

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(ii) The Employee may terminate this Agreement upon the occurrence of any of the following: (A) a breach by the Company of any material provision of this Agreement and the expiration of a 10-business day cure period for such breach after written notice thereof has been given to the Company by the Employee; (B) any material diminution in the authority or responsibilities delegated to the Employee as the President & Chief Operating Officer of the Company, unless agreed to by the Employee; or (C) any material reduction in the  Employee’s Base Compensation. Upon the  termination of this Agreement by the Employee pursuant to this Section 7(d)(ii), the Employee shall be entitled to receive three (3) months Base Salary or $60,000.00 in one lump sum within five (5) days of the effective date of such termination, subject to withholding for applicable taxes and other amounts. Any unvested stock options shall terminate and be null and void and the Employee shall have no further entitlement to Base Compensation, bonus, stock options or benefits from the Company following the effective date of such termination, except as provided in the last two sentences of Section 3(d) of this Agreement.

 

(e) Change in Control. Upon the occurrence of a Change in Control (as hereinafter defined), the Employee shall have the right to terminate this Agreement within 30 days of the occurrence of such Change in Control. Upon the termination of this Agreement by the Employee due to the occurrence of a Change in Control, the Employee shall be entitled to receive three (3) months Base Salary or $60,000.00 in one lump sum within five (5) days of the effective date of such termination, subject to withholding for applicable taxes and other amounts and all granted but unvested stock options held by the Employee shall immediately vest. For purposes of this Agreement, a “Change in Control” of the Company shall be deemed to have occurred in the event that: (i) individuals who, as of the date hereof, constitute the 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 hereof 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 Board shall be considered as though such individual was a member of the Board as of the date hereof; (ii) the Company shall have been sold by either (A) a sale of all or substantially all its assets, or (B) a merger or consolidation, other than any merger or consolidation pursuant to which the Company acquires another entity, or (C) a tender offer, whether solicited or unsolicited; or (iii) any party, other than the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of voting securities of the Company representing 50% or more of the total voting power of all the then- outstanding voting securities of the Company.

	
8.

	
Miscellaneous.

 

(a) Survival. The provisions of Sections 4, 5, 6, 7 and 9 and the last two sentences of Section 3(c) shall survive the termination of this Agreement.

 

(b) Entire Agreement. This Agreement sets forth the entire understanding of the parties and, except as specifically set forth herein, merges and supersedes any prior or contemporaneous agreements between the parties pertaining to the subject matter hereof.

 

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(c) Modification.  This Agreement may not be modified or terminated orally, and no modification, termination or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.

 

(d) Waiver. Failure of a party to enforce one or more of the provisions of this Agreement or to require at any time performance of any of the obligations hereof shall not be construed to be a waiver of such provisions by such party nor to in any way affect the validity of this Agreement or such party’s right thereafter to enforce any provision of this Agreement, nor to preclude such party from taking any other action at any time which it would legally be entitled to take.

 

(e) Successors and Assigns.  Neither party shall have the right to assign this Agreement, or any rights or obligations hereunder, without the consent of the other party; provided, however, that upon the sale of all or substantially all of the assets, business and goodwill of the Company to another company, or upon the merger or consolidation of the Company with another company, this Agreement shall inure to the benefit of, and be binding upon, both Employee and the company purchasing such assets, business and goodwill, or surviving such merger or consolidation, as the case may be, in the same manner and to the same extent as though such other company were the Company; and provided, further, that the Company shall have the right to assign this Agreement to any affiliate or subsidiary of the Company. Subject to the foregoing, this Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their legal representatives, heirs, successors and assigns.

 

(f) Communications. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been given at the time personally delivered or when mailed in any United States post office enclosed in a registered or certified postage prepaid envelope and addressed to the addresses set forth below, or to such other address as any party may specify by notice to the other party; provided, however, that any notice of change of address shall be effective only upon receipt.

 

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If to the Company:

	
With a copy to:

	 	 
	
6D Global Technologies, Inc.,

	
K&L Gates LLP

	
17 State Street, Suite 2550

	
599 Lexington Avenue

	
New York, NY 10004

	
New York, New York 10022-6030

	
Attention: Secretary

	
Facsimile: (212) 245-3901

	
 

	
Attention: Robert S. Matlin, Esq.

	 	 
	 	 
	
If to the Employee:

	 
	 	 
	
Brad Timchuk

	 
	 	 
	
Address:

	 
	 	 
	
16725 NW Mission Oaks Drive

	 
	
Beaverton, OR 97006

	 

 

(g) Severability. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity and enforceability of the other provisions of this Agreement and the provisions held to be invalid or unenforceable shall be enforced as nearly as possible according to its original terms and intent to eliminate such invalidity or unenforceability.

 

(h) Jurisdiction; Venue. This Agreement shall be subject to the non- exclusive jurisdiction of the federal courts or state courts of the State of New York, for the purpose of resolving any disputes among them relating to this Agreement or the transactions contemplated by this Agreement and waive any objections on the grounds of forum non conveniens or otherwise. The parties hereto agree to service of process by certified or registered United States mail, postage prepaid, addressed to the party in question. The prevailing party in any proceeding instituted in connection with this Agreement shall be entitled to an award of its/his reasonable attorneys’ fees and costs.

 

(i) Governing Law. This Agreement is made and executed and shall be governed by the laws of the State of New York, without regard to the conflicts of law principles thereof.

 

(j) Counterparts.  This Agreement may be executed in any number of counterparts (and by facsimile or other electronic signature), but all counterparts will together constitute but one agreement.

 

(k) Third Party Beneficiaries. This Agreement is for  the sole and exclusive benefit of the parties hereto and, except as provided herein, shall not be deemed for the benefit of any other person or entity.

 

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(l) Headings and References.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. References in this Agreement to any section refer to such section of this Agreement unless the context otherwise requires.

 

(m) IRC Section 409A.  The parties to this Agreement intend that the Agreement complies with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), where applicable, and this Agreement shall be interpreted in a manner consistent with that intention. To the extent not otherwise provided by this Agreement, and solely to the extent required by Section 409A of the Code, no payment or other distribution required to be made to the Employee hereunder (including any payment of cash, any transfer of property and any provision of taxable benefits) as a result of his termination of employment with the Company shall be made earlier than the date that is six (6) months and one day following the date on which the Employee separates from service with the Company and its affiliates (within the meaning of Section 409A of the Code).

 

(n) Recovery of Compensation. All payments and benefits provided under this Agreement shall be subject to any compensation recovery or clawback policy as required under applicable law, rule or regulation or otherwise adopted by the Company from time to time.

 

(o) Participation of the Parties. The parties hereto acknowledge and agree that (i) this Agreement and all matters contemplated herein have been negotiated among all parties hereto and their respective legal counsel, if any, (ii) each party has had, or has been afforded the opportunity to have, this Agreement and the transactions contemplated hereby reviewed by independent counsel of its own choosing, (iii) all such parties have participated in the drafting and preparation of this Agreement from the commencement of negotiations at all times through the execution hereof, and (iv) any ambiguities contained in this Agreement shall not be construed against any party hereto.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

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IN WITNESS WHEREOF, each of the parties hereto has duly executed this Employment Agreement as of the date set forth above.

PRESIDENT & CHIEF OPERATING OFFICER

(Employee)

  

Brad Timchuk

6D GLOBAL TECHNOLOGIES, INC.

By:

Tejune Kang, Chief Executive Officer

(Signature Page to Employment Agreement of Brad Timchuk)

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