Document:

Exhibit 10.3
                                     FORM OF
                      THE FIRST NATIONAL BANK OF LITCHFIELD
                           FIRST AMENDED AND RESTATED
                   SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

         This First  Amendment and  Restatement  to the  Supplemental  Executive
Retirement Agreement (this "Agreement") dated as of and effective the 1st day of
January, 2006 (this "Agreement"),  is made the 20th day of November, 2008 by and
between THE FIRST  NATIONAL BANK OF  LITCHFIELD,  a bank  organized and existing
under the national  banking  laws of the United  States of America with its main
office located at 13 North Street, Litchfield,  Connecticut,  06759 (the "Bank")
and ___________, whose mailing address is __________________ (the "Executive").

         Whereas,  the Executive has been and continues to be a valued executive
of the Bank;

         Whereas,    the    Executive    has    performed    his    duties    as
______________________ in a capable and efficient manner; and

         Whereas,  the Bank wishes to ensure the continued  loyalty and services
of the Executive by providing him with deferred compensation,

         Now,  therefore,  in  consideration  of the foregoing  premises and the
services  to be  performed  in the  future as well as the mutual  covenants  and
promises  herein  contained,  it is agreed that this Agreement is hereby entered
into as follows:

         In  consideration of the mutual covenants herein contained and implied,
the  sufficiency  of  which  is  acknowledged  by each  party,  the Bank and the
Executive agree as follows:

         1. Definitions.
            -----------

            (a)  "Accrued  Benefit"  means the  gross  annual  payment  equal to
twenty-five  percent  (25%)  of  the  Executive's  Final  Average   Compensation
multiplied by the  Executive's  Non-forfeitable  Percentage set forth in Section
2(b).

            (b) "Actuarial  Equivalent" means a benefit of equivalent value when
computed on the basis of the  applicable  interest  rate,  for  purposes of Code
Section  417(e)(3)(A)(ii)(II),  for November of the calendar year  preceding the
year in which the Executive separates from service,  and the mortality table set
forth in Treas. Reg. ss.1.401(a)(9)-9.

            (c) "Cause" means the following:

                  (i) the  commission  by the  Executive of any crime  involving
deceit,  dishonesty or fraud with regard to the Bank or its  business,  or moral
turpitude of such a nature as would adversely affect the reputation of the Bank;

                  (ii) the commission by the Executive of a material act or acts
of dishonesty in connection with the  performance of the  Executive's  duties to
the Bank including, without limitation, misappropriation of funds or property;

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                  (iii)  an  act  or  acts  of  misconduct   (including   sexual
harassment) by the Executive;

                  (iv)  continued  willful  non-performance  by the Executive of
duties (other than by reason of illness or  disability)  which has continued for
more than five (5) days  following  written notice of  non-performance  from the
Board of Directors (or Executive Committee); or

                  (v) the entry of a final cease and desist  order with  respect
to safety and  soundness  violations by any federal or state  regulatory  agency
having jurisdiction over the Bank, or the suspension,  removal or termination of
the  employment  of the  Executive  pursuant to an order by any federal or state
regulatory  agency having  jurisdiction over the Bank, so long as any such order
is  determined  in the sole  discretion  of the Board of  Directors to relate to
matters within the conduct or sphere of supervisory authority of the Executive.

         The  determination  of  whether  the  Executive's  employment  shall be
terminated for Cause shall be made at a meeting of the Board of Directors called
and held for such  purpose,  at which  meeting  the Board of  Directors  makes a
finding  that in the good faith  opinion of the Board of  Directors an event set
forth in subclauses (i) through (v) has occurred and specifying the  particulars
thereof in detail.

            (d)  "100%  Non-forfeitable  Benefit"  means  the  Accrued  Benefit,
determined with a non-forfeitable interest equal to 100%.

            (e) "Code" means the Internal  Revenue Code of 1986, as amended from
time to time.

            (f) "Effective Date" means January 1, 2006.

            (g)  "Final   Average   Compensation"   means  the  average  of  the
Executive's  annual base salary (prior to any salary reduction  contributions to
any  Section  401(k),  125 or 132 plan) and bonuses  received  by the  Executive
during the  thirty-six  (36) month period  ending on December 31 of the calendar
year immediately  preceding the Executive's  separation from employment with the
Bank. Without limiting the foregoing,  salary and bonus payments received during
such 36-month  period but  attributable to an earlier period shall be considered
under the  preceding  sentence;  and  amounts  received  after  such  period but
attributable to services rendered during such period shall not be considered.

            (h) "Hour of  Service"  means each hour for which the  Executive  is
paid or  entitled to be paid for the  performance  of duties for the Bank or for
non-performance of duties  (irrespective of whether the employment  relationship
has  terminated)  due to  vacation,  holiday,  illness,  incapacity,  jury duty,
military duty or approved paid leave of absence.

            (i) "Normal Form" means a lump sum distribution.

            (j) "Year of Service"  means each period of twelve (12)  consecutive
months commencing January 1, 2004 and each anniversary  thereof during which the
Executive is credited  with at least 1,000 Hours of Service,  including all such
twelve (12) month  periods prior to the Effective  Date of this  Agreement.  The
Executive  shall accrue a Year of Service for all purposes  hereunder if, in

                                       2
<PAGE>

the  Executive's  final  year of  employment  with the Bank,  the  Executive  is
credited with at least 1,000 Hours of Service.

         2. Payments to Executive.
            ---------------------

            (a) If the Executive remains continuously employed by the Bank until
his  termination  of employment  on or after  completion of eleven (11) Years of
Service,  the  Bank  will  pay to the  Executive  a gross  amount  equal  to the
Actuarial  Equivalent of (i) the Accrued Benefit,  multiplied by (ii) the number
of  whole  years  by  which  the  Executive's  life  expectancy  in  years  upon
termination from employment  (determined  under the 1994 Group Annuity Reserving
Table) exceeds the Executive's  age in years as of such  employment  termination
date.  Said gross  benefit  amount will be paid in the Normal  Form,  subject to
applicable withholding, and shall be payable on the date which is six (6) months
after  the  Executive's  employment  with  the  Bank  terminates  or as  soon as
practicable thereafter.

            (b) The  Executive's  benefits  under this  Agreement  shall  become
non-forfeitable  in  accordance  with the  following  schedule,  subject  to the
possible  adjustments  referenced  in  Sections  2(c)  and  Section  15 of  this
Agreement;  provided,  however,  that all benefits  payable  hereunder  shall be
forfeited upon a termination from employment for Cause:

                 Years of Service      Non-forfeitable Percentage
                 ----------------      --------------------------

                        1 or less                  0%
                        2                         10%
                        3                         20%
                        4                         30%
                        5                         40%
                        6                         50%
                        7                         60%
                        8                         70%
                        9                         80%
                        10                        90%
                        11 or more               100%

            (c) If the Executive's  benefits under this Agreement become payable
upon the  Executive's  separation  from  service  before  the  Executive's  62nd
birthday for reasons  other than Cause,  Change in Control,  death or disability
pursuant to Sections 3 or 4 hereof, as applicable,  then the gross amount of the
Executive's  benefit under shall be determined in accordance  with Section 2(a),
provided  that the  Accrued  Benefit  shall  be  reduced  by 3.0% for each  year
benefits  commence  before the  Executive's  62nd  birthday.  The foregoing 3.0%
reduction shall be pro-rated for a partial year.

            (d) In lieu of the Normal Form  provided by Section  2(a),  with the
written  consent of the Board of Directors of the Bank, the Executive may elect,
not less than twelve (12) months prior to the date on which the first payment is
to  commence,  an  optional  form of monthly  payments  which are the  Actuarial
Equivalent  of the Normal Form to which the  Executive  is  entitled;  provided,
however,  that in the  case of an  election  related  to a  payment  not made on
account of the Executive's disability (as defined in Section 4 hereof) or death,
the  payment(s) to be made

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with  respect to such  election  shall be deferred for a period of not less than
five (5) years from the date such payment(s)  would otherwise have been made and
may not be made less than twelve  (12)  months  prior to the date that the first
scheduled payment would have been made in the Normal Form.

            (e)  Notwithstanding  anything to the contrary  herein  contained or
implied,  in no event shall the  Executive  be entitled to receive any  benefits
under this Agreement if he is terminated by the Bank for Cause.

         3. Death of the Executive.
            ----------------------

            (a) If the Executive  dies while employed by the Bank, the Bank will
pay to the Executive's surviving spouse the Executive's Accrued Benefit assuming
that  the   Executive  had  retired  the  day  before  his  death  with  a  100%
Non-forfeitable Benefit. The surviving spouse shall receive the death benefit in
a lump sum within  thirty (30) days of the death of the  Executive or as soon as
practicable thereafter.  If the Executive leaves no surviving spouse, his estate
shall receive the present value of the Executive's  Accrued Benefit  computed on
the  basis  of the  applicable  interest  rate,  for  purposes  of Code  Section
417(e)(3)(A)(ii)(II), for the month preceding the date of death in a lump sum as
soon as practicable after the Executive's death.

            (b) If the Executive dies following the  commencement of the payment
of benefits under this  Agreement,  death  benefits,  if any, will be determined
pursuant to the form of benefit payment in effect at the time of death.

         4. Disability Benefits.
            -------------------

         If the  Executive  shall be disabled as defined in this Section 4 while
in the employ of the Bank and resigns from employment with the Bank on the basis
of such  disability,  the  Executive  shall be  entitled  to receive the benefit
amount to which he would be entitled  under  Section 2(a)  determined  as if the
Executive had a 100%  Non-forfeitable  Benefit. For the purposes of this Section
4, the Executive  shall be considered  disabled if he (i) is unable to engage in
any  substantial  gainful  activity  by  reason  of any  medically  determinable
physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months; or
(ii) is  receiving  income  replacement  benefits  for a period of not less than
three (3) months under an accident and health plan covering the employees of the
Bank by reason of any medically determinable physical or mental impairment which
can be expected to result in death or last for a  continuous  period of at least
twelve (12) months.  The Executive  shall be deemed disabled if determined to be
totally disabled by the Social Security Administration.

         5. Termination Without Cause.
            -------------------------

         If the Executive is terminated  without Cause,  the Executive  shall be
entitled to receive his Accrued Benefit  payable  pursuant to Section 2 above as
if the Executive  had  terminated  his  employment  with a 100%  Non-forfeitable
Benefit, subject to the possible adjustments discussed in Section 2(c).

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<PAGE>

         6. Re-employment.
            -------------

         If the  Executive is rehired by the Bank before (i) he has received the
payment  provided  under  Section  2(a) or (ii)  after  he has  begun  receiving
payments  under  Section  2(d) but  before  he has  received  all  payments  due
thereunder,  (x) such payment  shall not be made or (y) such  payments  shall be
discontinued until the Executive's subsequent  retirement,  whereupon the amount
of the  Executive's  benefit under Section 2(a) or Section 2(d), as the case may
be, shall be recalculated as of that time.

         7. Claims Procedure.
            ----------------

         (a) In the event the  Executive or his  beneficiary  in the case of the
Executive's  death  or  their  authorized   representative   (hereinafter,   the
"Claimant") asserts a right to a benefit under this Agreement which has not been
received,  in whole or in part, the Claimant must file with the Bank a claim for
such benefit on forms  provided by the Bank.  The Bank shall render its decision
on the claim  within  ninety  (90) days after  receipt of the claim.  If special
circumstances apply, the ninety (90) day period may be extended by an additional
ninety  (90) days,  provided  written  notice of the  extension  is given to the
Claimant during the initial ninety (90) day period and such notice indicates the
special  circumstances  requiring an extension of time and the date by which the
Bank  expects  to  render  its  decision  on the  claim.  If the Bank  wholly or
partially  denies  the  claim,  the Bank  shall  provide  written  notice to the
Claimant within the time limitations of this Section or the time to which it has
been extended. Such notice shall set forth:

            (i) the specific reasons for the denial of the claim;

            (ii) specific reference to pertinent provisions of this Agreement on
which the denial is based;

            (iii)  a  description  of any  additional  material  or  information
necessary  to  perfect  the claim and an  explanation  of why such  material  or
information is necessary;

            (iv) a description of this Agreement's  claims  procedures,  and the
time limitations applicable to such procedures; and

            (v) a  statement  of the  Claimant's  right to bring a civil  action
under Section 502(a) of the Employee  Retirement Income Security Act of 1974, as
amended ("ERISA") if the claim denial is appealed to the Bank and the Bank fully
or partially denies the claim pursuant to Section 7(c).

         (b) A Claimant whose  application for benefits is denied in whole or in
part may  request a full and fair  review of the  decision  denying the claim by
filing, in accordance with such procedures as the Bank may reasonably establish,
a written appeal which sets forth the documents,  records and other  information
relating to the claim within sixty (60) days after  receipt of the notice of the
denial by the Bank.  In  connection  with such  appeal  and upon  request by the
Claimant,  a Claimant  may review (or  receive  free  copies of) all  documents,
records or other information  relevant to the Claimant's claim for benefit,  all
in accordance  with such procedures as the Bank may reasonably  establish.  If a
Claimant  fails to file an appeal  within such sixty (60) day  period,  he shall
have no further right to appeal.

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<PAGE>

         (c) A decision on the appeal by the Bank shall  include a review by the
Bank  that  takes  into  account  all  comments,  documents,  records  and other
information  submitted by the Claimant relating to the claim,  without regard to
whether such  information  was  submitted  or  considered  in the initial  claim
determination.  The Bank shall  render its  decision on the appeal no later than
sixty  (60)  days  after  the  receipt  by the Bank of the  appeal.  If  special
circumstances  apply, the sixty (60) day period may be extended by an additional
sixty  (60)  days,  provided  written  notice of the  extension  is given to the
Claimant during the initial sixty (60) day period and such notice  indicates the
special  circumstances  requiring an extension of time and the date by which the
Bank will determine the appeal. If the Bank wholly or partly denies the claim on
appeal,  the Bank shall provide  written notice to the Claimant  within the time
limitations  of this  Section  or the time to which it has been  extended.  Such
notice shall set forth:

            (i) the specific reasons for the denial of the appeal of the claim;

            (ii) specific reference to pertinent provisions of this Agreement on
which the denial of the appeal of the claim is based;

            (iii) a statement of the Claimant's  right to receive,  upon request
and free of charge, reasonable access to, and copies of, all documents, records,
and other information relevant to the Claimant's claim for benefits; and

            (iv) a statement  of the  Claimant's  right to bring a civil  action
under Section 502(a) of ERISA,

         (d) The Bank  shall  be the Plan  Administrator  with  respect  to this
Agreement.

         (e) As Plan Administrator,  the Bank shall have complete authority,  in
its sole and absolute discretion,  to interpret the provisions of this Agreement
and make determinations  regarding eligibility.  Without limiting the foregoing,
the Bank shall administer this Agreement in a manner, and all provisions of this
Agreement  shall be interpreted to be,  compliant with the provisions of Section
409A of the Code, and  regulations and rulings issued  thereunder,  so as not to
subject  the  benefits  accruing  hereunder  to  taxation  pursuant  to  Section
409A(a)(1) of the Code.

         8. Provision for Incapacity.
            ------------------------

         If the Board of Directors (or Executive Committee) reasonably deems the
Executive incapable of receiving his benefits by reason of illness, infirmity or
incapacity of any kind, the Bank may make payments to any one or more persons or
representatives  as provided in a written direction  received from the Executive
while  competent  and,  in the  absence of any such  written  direction,  to the
following persons and representatives in the order set forth, i.e., first to the
Executive's  spouse and then to his  children.  The  making of any such  payment
shall fully  discharge the Bank from all  obligations  and liability  under this
Agreement.

         9. Violation of Agreement.
            ----------------------

         In the event of any  violation  of any terms of this  Agreement  by the
Executive, the Bank, in addition to any other rights which it may have, shall be
relieved of the  liability to make any payments  under this  Agreement to, or on
behalf of, the Executive so long as such  violation

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<PAGE>

continues (and may recover all payments made prior to such  violation) and shall
have the right to specific  enforcement  of this  Agreement  by  proceedings  in
equity. All costs,  including  attorney's fees, incurred by the Bank pursuant to
this  Section  shall be  reimbursed  by the  Executive  upon  entry of an order,
decree,  judgment or other pronouncement from the court,  arbitrator or mediator
to whom the matter is submitted that the Executive violated this Agreement.

         10. Non-assignable Rights.
             ---------------------

         Except as otherwise  provided by this Agreement,  neither the Executive
nor his surviving spouse shall have any right to commute, sell, assign, transfer
or otherwise convey the right to receive any payments hereunder,  which payments
and  the  right  thereto  are  expressly   declared  to  be  non-assignable  and
non-transferable.

         11. Independence of Agreement.
             -------------------------

         The benefits  payable under this Agreement shall be independent of, and
in  addition  to,  any  employment  agreement  that may exist  from time to time
between the parties hereto, or any other compensation payable by the Bank to the
Executive,  whether as salary,  bonus or otherwise.  This Agreement shall not be
deemed to constitute a contract of employment between the parties hereto, and no
provision hereof shall restrict the right of the Bank to discharge the Executive
with or without  Cause,  or restrict the right of the Executive to terminate his
employment.

         12. General Obligation of the Bank.
             ------------------------------

         The benefits provided under this Agreement constitute a mere promise by
the  Bank to make  payments  in the  future,  and the  rights  of the  Executive
hereunder shall be those of a general  unsecured  creditor of the Bank.  Nothing
contained  herein  shall be construed to create a trust of any kind or to render
the Bank a  fiduciary  with  respect  to the  Executive.  The Bank  shall not be
required  to  maintain  any fund or  segregate  any  amount  or in any other way
currently fund the future payment of any benefit  provided under this Agreement,
and nothing  contained  herein shall be  construed to give the  Executive or any
other  person  any  right to any  specific  assets  of the Bank or of any  other
person.  This  Agreement is intended to be, and shall in all events be construed
and  treated  as, a deferred  compensation  arrangement  for a "select  group of
management and highly  compensated  employees," within the meaning of Title I of
ERISA.

         13. Establishment of Trust; Cooperation of Executive.
             ------------------------------------------------

         (a) The provisions of Section 12 notwithstanding,  the Bank may, in its
sole and absolute  discretion,  establish a trust to which funds  earmarked  for
payment under this Agreement may be transferred and from which benefits  arising
hereunder,  and subject to the provisions and limitations  hereof,  may be paid.
Any such trust would contain provisions making it irrevocable by the Bank unless
and until all benefits  hereunder  which are funded through such trust have been
paid or provided  for,  except in the case of  bankruptcy  or  insolvency of the
Bank,  in which  event  benefit  payments  from the trust would cease and assets
thereof would revert to the Bank or be paid to its creditors.

         (b) The Bank may, for its corporate purposes, choose to obtain a policy
or policies of life  insurance on the Executive.  The Executive  agrees to fully
cooperate in connection  with the

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<PAGE>

securing  of any  such  policy  or  policies  or  the  election  of any  options
thereunder  which the Bank may wish and to make  himself  available  for medical
examinations if necessary.

         14. Governing Law.
             -------------

         This Agreement shall be construed under and governed by the laws of the
State of Connecticut except to the extent pre-empted by ERISA.

         15. Change of Control.
             -----------------

         This  Agreement  shall  be  binding  upon  any  successor  to the  Bank
following a Change in Control.

         (a) "Change in Control"  means a change in the  ownership  or effective
control of the Bank, or in the ownership of a substantial  portion of the assets
of the Bank,  as such change is defined in Section 409A of the Code and Treasury
Reg. ss.409A-3(i)(5) thereunder.

         (b) Upon a Change in Control followed within twenty-four (24) months by
the Executive's  termination for reasons other than death,  disability or Cause,
the Executive  shall be entitled to receive the benefit amount to which he would
be entitled to under  Section  2(a),  determined  as if the Executive had a 100%
Non-forfeitable Benefit.

         (c) Notwithstanding any provision of this Agreement to the contrary, to
the extent any distribution(s), if made, under this Section 15 of this Agreement
would result in "an excess  parachute  payment"  under Section 280G of the Code,
the Bank shall reduce or delay such  distribution(s)  to the extent necessary so
that the distributions would not result in an excess parachute payment.

         16. Entire Agreement.
             ----------------

            This Agreement  supersedes the prior  agreement  between Company and
the  Executive  on the  subject  matter  hereof  dated as of January 1, 2006 and
constitutes the entire agreement between the Company and the Executive as to the
subject matter hereof.  No rights are granted to the Executive by virtue of this
Agreement other than those specifically set forth herein.

            EXECUTED under seal as of the day and year first above written,  and
in the case of the Bank by its duly authorized representative.

                                         THE FIRST NATIONAL BANK OF LITCHFIELD

                                         DIRECTOR
ATTEST:                                  By:__________________________________

______________________                              (duly authorized)

                                         EXECUTIVE
ATTEST:                                  By:__________________________________

______________________

                                       8c55775_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EX-10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) made this 20th day of November 2008 between SED INTERNATIONAL HOLDINGS, INC., a Georgia corporation (the
“Company”) and Jonathan Elster, an individual resident of the State of Georgia (the “Executive”).

WITNESSETH:

     WHEREAS, Executive and SED INTERNATIONAL, INC., a wholly-owned subsidiary of the Company and a Georgia corporation (the “Subsidiary”) have entered into an amended and restated employment on February 20, 2008 (the “Employment Agreement”) setting forth the terms and conditions of Executive’s employment
with the Subsidiary; and 

     WHEREAS, on November 11, 2008, the Board of Directors of the Company (the “Board”) approved and authorized an extension to the Term of this
Agreement, by one year, until July 1, 2010; and

     WHEREAS, the Company wishes to assume the Employment Agreement and become the contracting party thereunder, and Executive agrees to such assumption
subject to a guaranty of the Company’s obligations by the Subsidiary. 

     NOW, THEREFORE, in consideration of the foregoing, the continued employment of the Executive, and the mutual covenants and agreements hereinafter set
forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

     1.     Employment of Executive:
Duties of Executive. The Company hereby
employs Executive as its Executive Vice President, and Executive hereby accepts
 employment by the Company in that capacity subject to the terms and conditions
set forth in this Agreement. Executive shall faithfully perform for the Company,
or as it directs, the Subsidiary, the duties of said office (as described in
the Bylaws  of the Company) and shall perform such other duties of an executive,
managerial or administrative nature as are from time to time assigned or delegated
to the Executive by the Company. The Executive shall report to the Chief Executive
Officer of the  Company. Throughout his employment hereunder, Executive shall
devote substantially all of his time, energy and skill to perform the duties
of his employment (vacations as provided hereunder and reasonable absences because
of illness excepted), and  shall use his best efforts to follow and implement
all management policies and decisions of the Company and the Subsidiary. Executive
shall not become involved in the management of any other company, partnership,
proprietorship or other entity,  other than an affiliate of the Company (including
the Subsidiary), without the consent of the Board; provided,
however, that as long as it does not interfere
with Executive's  employment hereunder Executive may serve as a director in a
company that does not compete with the businesses of the Company, the Subsidiary
or any other affiliate of the Company (“Other Affiliates”), and may
serve as an officer or  director or otherwise participate in educational welfare,
social, religious or civic organizations. The Executive shall not be required
to relocate from the Atlanta, Georgia metropolitan area in connection with the
performance of his duties  hereunder.

     2.     Compensation Benefits and Reimbursement of Expenses. 

     (a) As compensation for his services hereunder, the Company, or the Subsidiary, shall

pay Executive an annual base salary of Two Hundred Sixty One Thousand Seven Hundred Dollars ($261,700.00) . Such salary shall be paid in accordance with the normal payroll practices of the Company, or the Subsidiary, as
the case may be, and shall be subject to such deductions and withholdings as are required by law or by the policies of the Company, or the Subsidiary, as the case may be, from time to time in effect. 

     (b) Executive shall be entitled to received an annual bonus ("Bonus") with respect to each fiscal year of the Company
ending during the Term of this Agreement in an amount equal to three percent (3%) of the Company's Pretax Adjusted Annual Income (as defined immediately hereafter). “Pretax Adjusted Annual Income” shall mean, with respect to a given fiscal
year, earnings before taxes as reported on the Company's audited consolidated statement of operations for such fiscal year, excluding extraordinary nonoperational costs and profits. 

     (c) Executive shall be entitled to participate or to continue participation in any present or future group life, health
and hospitalization or disability insurance plans, pension or retirement plans or similar death benefits as are available to management executives of the Company and/or the Subsidiary on the same terms as such other similarly situated executives, in
each case to the extent that Executive is eligible under the terms of such plans or programs. 

     (d) Executive shall be entitled to four (4) weeks of paid vacation per year, subject to the Company’s or the
Subsidiary's, as the case may be, normal employee policies for unused vacation as adopted and amended from time to time. 

     (e) Executive shall be reimbursed in accordance with the policies of the Company, or the Subsidiary, as the case may be,
as adopted and amended from time to time, for all reasonable and appropriate expenses incurred by him in connection with the performance of his duties of employment hereunder; provided, however, Executive shall as a condition of such reimbursement, submit verification of the nature and amount of such expenses in accordance with the reimbursement policies from time to time. 

     (f) Certain Definitions.

	
"Associate" means (1) any corporation, partnership or other entity of which a specified person is an officer or partner, or is,
directly or indirectly, the beneficial owner of ten percent (10%) or more of any class of equity securities thereof, (2) any trust or estate in which the specified person has a
substantial beneficial interest or as to which the specified person serves as trustee or in a similar fiduciary capacity, (3) any relative or spouse of such specified person, or any
relative of such spouse, who has the same home as such specified person, and (4) any person who is a trustee, officer or partner of such specified person or of any corporation,
partnership or other entity that is an affiliate of such specified person.

	
"Beneficial Owner" shall be defined by reference to Rule 13d-3 under the Securities Exchange Act of
1934, as amended (the “Exchange Act”) as such Rule is in effect on the date hereof; provided, however, that any individual, corporation, partnership, Group, association or
other person or entity which, directly or indirectly, owns or has the right to acquire any of SED's or the Subsidiary's outstanding securities entitled to vote generally in the election of directors at any time in the future, whether such right is contingent, absolute, direct or indirect, pursuant to any agreement, arrangement or understanding or upon exercise of conversion rights, warrants or options or otherwise, shall be deemed the Beneficial Owner of such securities.

2

	
"Code" means the Internal Revenue Code of 1986, as amended.

	
"Continuing Director" means a director who either was a member of either the Board or the Board of
Directors of the Subsidiary (the “Subsidiary Board”), as the case may be, on the date hereof, or who becomes a member of the Board or the Subsidiary Board, as the case may be, subsequent to such date and whose election or nomination for election to the Board or the Subsidiary Board, as the case may be, was Duly Approved by the Continuing Directors of either the Board or the Subsidiary Board, as the case may be, at the time of such election or nomination, either by a specific vote or by approval of the proxy statement issued by that company on behalf of either the Board or the Subsidiary Board, as the case may be, in which such person is named as a nominee for director.

	
"Duly Approved by the Continuing Directors" means an action approved by the vote of at least a
majority of the Continuing Directors then on either the Board or the Subsidiary Board, as the case may be; provided, however, if the votes of such Continuing Directors in favor of such action would be insufficient to constitute an act of the entire Board of Directors of either the Company or the Subsidiary, as the case may be, if a vote by all of its members had been taken, or if the number of persons constituting the Continuing Directors of either the Company or the Subsidiary, as the case may be, shall be equal to or less than three, then the term Duly Approved by the Continuing Directors shall mean an action approved by the unanimous vote of the Continuing Directors then on the Board or the Subsidiary Board, as the case may be.

	
"Group" means
    persons who act in concert as described in Section 13(d)(3) of the Exchange Act
    as in  effect on the date hereof.

         (g) If a Change of Control occurs
  during the term of this Agreement, or during any
extension thereof, and:

(1) the Executive’s employment is terminated involuntarily, or voluntarily by the Executive based on (i) material changes in the nature or scope of the Executive’s duties or employment, (ii) a reduction in
compensation of the Executive made without the Executive’s consent, (iii) a relocation of Company’s or the Subsidiary’s executive offices farther than 35 miles from the present location of the executive offices, or (iv) a good faith
determination made by the Executive, upon consultation with the Chief Executive Officer of the Company, that it is necessary or appropriate for the Executive to relocate from the Atlanta, Georgia Metropolitan Area to enable Executive to perform his
duties hereunder, the Executive may, in his sole discretion, give written notice within thirty (30) days after the date of termination of employment to the Chief Executive Officer of the Company that he is exercising his rights hereunder and
requests payment of the amounts provided for under this Section 2(g); or

(2) the Executive gives written notice of his termination of employment for any reason concurrently with the time a Change of Control occurs or any time within thirty (30) days after the date the Change of Control becomes
effective to the Company, he may exercise his rights hereunder and request payment of the amounts provided for under this Section 2(g) (the notice provided pursuant to Subsection (g)(1) or Subsection (g)(2) is referred to as the “Notice of
Exercise”). 

3

If the Executive gives a Notice of Exercise to receive the payments provided for hereunder, the Company shall pay to, or for the benefit of the Executive, immediately upon the Company’s receipt of the Notice of
Exercise, a lump sum cash payment for damages suffered by the Executive by reason of the Change in Control (the “Executive Payment”) in an amount equal to the aggregate present value (as determined in accordance with Section 280G(d)(4) of
the Code) of all annual salary, of all Bonus payments for the remainder of the Term calculated based on the assumption that the Pretax Adjusted Annual Income for each year remaining in the Term is equal to the highest Pretax Adjusted Annual Income
preceding the effective date of termination hereunder, and any other benefits due to the Executive pursuant to Section 2 hereof for the remainder of the Term; provided, however, in the event the period from the date of Executive's termination hereunder through the remainder of the Term is less than twelve (12) months, then the Executive shall receive a lump sum payment equal to the aggregate present value (as
determined in accordance with Section 280G(d)(4) of the Code) of (i) his then current annual salary and the value of all other benefits payable to the Executive annualized for a twelve (12) month period pursuant to Section 2 hereof other than the
Bonus, and (ii) a Bonus equal in amount to the highest Bonus payment paid to the Executive during the Term. 

The Executive Payment shall be in addition to and shall not be offset or reduced by (i) any other amounts that have been earned or accrued or that have otherwise become payable or will become payable to the Executive or his
beneficiaries, but have not been paid by the Company at the time the Executive gives the Notice of Exercise including, without limitation, salary, bonuses, severance pay, consulting fees, disability benefits, termination benefits, retirement
benefits, life and health insurance benefits or any other compensation or benefit payment that is part of any previous, current or future contract, plan or agreement, written or oral, and (ii) any indemnification payments that may have accrued but
not paid or that may thereafter become payable to the Executive pursuant to the provisions of the Company’s Articles of Incorporation, Bylaws or similar policies, plans or agreements relating to indemnification of directors and officers of the
Company under certain circumstances.  The Executive Payment shall not be reduced by any present value calculations.

In the event the Executive dies during the term of this Agreement, the Executive’s legal representative shall be entitled to receive the Executive Payment, provided that the Notice of Exercise has been or is given
either by the Executive or his legal representative prior to his death, as the case may be. 

For the purposes of this Agreement “Change of Control” shall be deemed to have occurred if and when (1) any individual, corporation, partnership, Group, association or other person or entity, together with his,
its or their affiliates or Associates (other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company) hereafter becomes the Beneficial Owner of securities of the Company representing thirty percent (30%) or
more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors; (2) the Continuing Directors of the Company shall at any time fail to constitute a majority of the members
of the Board; (3) all or substantially all of the assets of the Company are sold, conveyed, transferred or otherwise disposed of, whether through one event or a series of related events, without being Duly Approved by the Continuing Directors of the
Company; (4) any individual, corporation, partnership, Group, association or other person or entity, together with his, its or their affiliates or Associates, other than a trustee or other fiduciary holding securities under an employee benefit plan
of the Subsidiary, becomes the Beneficial Owner of securities of the Subsidiary representing thirty percent (30%) or more of the combined voting power of the Subsidiary's then outstanding securities entitled to vote generally in the election of
directors; or (5) all or substantially all of the assets of the Subsidiary are sold,

4

conveyed, transferred or otherwise disposed of, whether through one event or a series of related events, without being Duly Approved by the Continuing Directors of the Subsidiary.

3.     Term and Termination.

     (a) The term (“Term”) of this Agreement and of Executive's employment hereunder shall commence as of July 1, 2004 and shall continue for a period of five (5) years thereafter (the
“Initial Term”) unless earlier terminated as provided in Section 3(b) of this Agreement. Executive shall have the right to renegotiate an additional one (1) year to the Initial Term, at any time beyond the first anniversary of this
Agreement, so long as the Term shall not exceed five (5) years. As of the date hereof, the Term has been extended, by one year, until July 1, 2010. 

     (b) Executive's employment under this Agreement shall terminate upon Executive's death. Executive s employment hereunder may also be terminated (i) upon mutual agreement of Executive and the
Company; (ii) unilaterally by the Company, upon written notice to Executive, for Good Cause (as defined in Section 3(c) below); or (iii) upon written notice to Executive if Executive shall at any time be unable to perform the essential functions of
his job hereunder, by reason of a physical or mental illness or condition with or without reasonable accommodation, for a continuous period of one hundred eighty (180) consecutive days, as certified by a physician or physicians selected by the
Board. 

     (c) As used in this Agreement, "Good Cause" means: (i) any act of fraud or dishonesty; (ii) any act of theft or embezzlement; (in) the breach of any material provision of this Agreement by
Executive (provided that such breach is not cured by Executive within thirty (30) days of receiving written notice of such breach from the Company); (iv) violation of the policies and procedures of the Company or the Subsidiary (v) failure to comply
with the written directions of the Board; (vi) engaging in any unlawful harassment or discrimination; (vii) the conviction of Executive of any crime involving moral turpitude (whether felony or misdemeanor) or involving any felony; (viii) any act of
moral turpitude by Executive that materially adversely affects the Company, the Subsidiary, or any Other Affiliates and any of their business reputations; (ix) violation of state or federal securities laws; or (x) any other matter constituting "good
cause" under the laws (including inter alia, statutes, regulations or judicial case law) of the State of Georgia. 

     (d) Upon the termination of this Agreement and Executive's employment hereunder as provided in Section 3(b), neither the Company nor the Subsidiary, as applicable, shall have any further
obligation to Executive other than (i) for payment of salary, Bonus amounts, expense reimbursement and other benefits earned or accrued and unpaid at the effective date of such termination; and (ii) any indemnification payments that may become
payable to Executive pursuant to the provisions of the Company's Articles of Incorporation, Bylaws, or similar policies, plans or agreements relating to indemnification of directors and officers of the Company

     (e) Except as otherwise provided in this Agreement, any payments to which the Executive shall be entitled under this Section 3 and in subsection 2(g), including, without limitation, any
economic equivalent of Incentive Compensation and any other benefits, shall be made as promptly as possible following any termination date provided for in subsections 3(a) through (d) and in subsection 2(g), each being referred to herein as a
“termination date”; provided, however, that if the Executive is deemed a “specified employee” of the Company, or the Subsidiary, within the meaning of
Section 409A(a)(2)(B)(i) of the Code (or any successor provision), no payment under this Section 3 or in subsection 2(g) in connection with the 

5

Executive’s termination of employment (other than a payment of salary through the date of such termination, and payments on account of termination of employment by reason of death) shall be made until the date which is
six (6) months after the date of the termination of the employment of the Executive (or, if earlier, the date of death of the Executive); provided further, if the Company determines based upon written advice of counsel that any such payment if made
during the calendar year that includes the termination date would not be deductible by either the Company, or the Subsidiary, as the case may be, in whole or in part by reason of Code Section 162(m), such payment shall be made on January 2 of the
following calendar year (or such later date as may be required under the preceding proviso if the Executive is a "specified employee "). Any payment deferred as provided for in this subsection (e) shall include, when paid, an incremental earnings
factor payment equal to ten (10%) percent of the amount deferred multiplied by a fraction the numerator of which is the number of days that such payment is deferred and the denominator of which is 365; provided, however, that in no event shall the
amount of interest contracted for, charged or received hereunder exceed the maximum non-usurious amount of interest allowed by applicable law. 

     If the amount of any payment due to the Executive cannot be finally determined within thirty (30) days after the termination date, such amount shall be estimated on a good faith basis by the
Company and the estimated amount shall be paid thirty (30) days after such termination date (or on such later date as may be determined under the immediately preceding sentence). As soon as practicable thereafter, the final determination of the
amount due shall be made and any adjustment requiring a payment to or from the Executive shall be made as promptly as practicable. 

     4.     Agreement Not to
Solicit Customers. As part of the consideration
for the compensation and benefits to be paid to Executive hereunder, in keeping
with  Executive's duties as a fiduciary and in order to protect the Company's,
the Subsidiary’s, or any Other Affiliates’, interest in the business
relationships developed by Executive with the customers and potential customers
of the Company,  the Subsidiary, or any Other Affiliates, Executive agrees that
during the Term of Executive's employment under this Agreement and for a period
of one (1) year from the date of the termination of such employment (at any time
for any reason, with or  without cause), Executive shall not, without the prior
written consent of the Company, directly or indirectly solicit or attempt to
solicit any Restricted Customer (as hereinafter defined) for the purpose of or
with a view to providing services or  products to the Restricted Customer which
the Company, the Subsidiary, or any Other Affiliates, have or has, as applicable,
provided or provides to such Restricted Customer.  "Restricted Customer" means
any person or entity to which (i) jointly or  severally, the Company, the Subsidiary,
or any Other Affiliates, provided or actively sought to provide services or products
and (ii) with whom Executive had material contact during the two (2) year period
immediately preceding the termination of  Executive's employment with the Company.
Executive understands that the foregoing restrictions may limit his ability to
engage in certain businesses anywhere in the world during the period provided
for above, but acknowledges that the Company has a  legitimate interest in restricting
solicitation as provided in this Section without reference to a specific territory
and that Executive will receive sufficiently high remuneration and other benefits
under this Agreement to justify such restriction.

6

5.     Ownership and Protection of Proprietary Information.

     (a) As used herein, "Proprietary Information" means information related jointly or severally to the Company, the Subsidiary, or any Other Affiliates that (i) derives economic value, actual or
potential, from not being generally known to other persons who can obtain economic value from its disclosure or use; and (ii) is the subject of reasonable efforts by the Company, the Subsidiary, or any Other Affiliates to maintain its secrecy,
including, without limitation, (1) with respect to information which has been reduced to tangible form, marking such information clearly and conspicuously with a legend identifying its confidential or proprietary nature; (2) with respect to any oral
presentation or communication, denominating such information as confidential immediately before, during or after such oral presentation or communication; or (3) otherwise treating such information as confidential. Assuming these two criteria are
met, Proprietary Information includes, without limitation, technical and nontechnical data related to the formulas, patterns, designs, compilations, programs, inventions, methods, techniques, drawings, processes, finances, actual or potential
customers and suppliers, research, development, existing and future products, and employees of the Company, the Subsidiary, or any Other Affiliates.  Proprietary Information includes information that has been disclosed to the Company, the
Subsidiary, or any Other Affiliates, by a third party, pursuant to which the receiving party is obligated to treat as confidential, and information which is proprietary to any Other Affiliates. 

     (b) Executive acknowledges that all Proprietary Information and all physical embodiments thereof are confidential to and are and will remain the sole and exclusive property of the Company
and/or the Subsidiary. Executive must: (i) immediately disclose to the Company all Proprietary Information developed in whole or in part by Executive during the Term of his employment with the Company, (ii) assign to the Company and/or the
Subsidiary any right, title or interest Executive may have in such Proprietary Information as may be requested by the Company, and (iii) at the request and expense of the Company, do all things and sign all documents or instruments reasonably
necessary in the opinion of the Company to eliminate any ambiguity as to the ownership by, and rights of, the Company and/or the Subsidiary in such Proprietary Information including, without limitation, providing to the Company and/or the Subsidiary
Executive's full cooperation in any litigation or other proceeding to establish or protect such rights. 

     (c) Except to the extent necessary to perform the services to be provided hereunder, Executive will not reproduce, use, distribute, disclose or otherwise disseminate the Proprietary Information
or any physical embodiments thereof and will in no event take any action causing, or fail to take the action necessary in order to prevent, any Proprietary Information disclosed to or developed by Executive to lose its character or cease to qualify
as Proprietary Information. Each reproduction of any of the Proprietary Information must prominently contain a legend identifying its confidential or proprietary nature. 

     (d) Executive represents and warrants that any information disclosed by Executive to the Company, the Subsidiary, or any Other Affiliates, is not confidential or proprietary to Executive or to
any third party.  Accordingly, no obligation of any kind is assumed by or to be implied against the Company, the Subsidiary, or any Other Affiliates by virtue of any information received, in whatever form or whenever received, from Executive
relating to the subject matter hereof, and the Company, the Subsidiary or any Other Affiliates will be free to reproduce, use and disclose to others such information without limitation. 

     (e) Upon request by the Company, and in any event upon termination of the employment of Executive with the Company for any reason, as a prior condition to receiving any final

7

compensation hereunder, Executive will promptly deliver to the Company all property belonging to the Company, the Subsidiary or any Other Affiliates, including, without limitation, all Proprietary Information and all
embodiments thereof then in his custody control or possession. 

     (f) The covenants of confidentiality set forth in this Section 5 will apply on and after the effective date of termination of Executive's employment hereunder to any Proprietary Information
disclosed by the Company, the Subsidiary or any Other Affiliates to, or developed by, Executive prior to or after any such effective date and will continue and be maintained by Executive (i) with respect to all Proprietary Information which falls
within the definition of "trade secrets" under applicable law, at all times following the termination of Executive's employment hereunder for any reason whatsoever, and (ii) with respect to all other Proprietary Information, during the Term of
Executive's employment hereunder and for a period of three (3) years after the termination of Executive's employment hereunder for any reason whatsoever. 

     6.     Intellectual
Property. The Company shall be the sole
owner of all the products and proceeds of Executive's services  hereunder, including,
without limitation, all materials, ideas, concepts, formats suggestions, developments,
arrangements, packages, programs and other intellectual property that Executive
may acquire, obtain, develop or create in connection with,  and during the Term
of, Executive's employment hereunder, free and clear of any claims by Executive
or anyone claiming under Executive of any kind or character whatsoever, other
than Executive's right to receive payments hereunder. Executive shall,  at the
reasonable request of the Company, execute such assignments, certificates or
other instruments' as the Company from time to time shall deem necessary or desirable
to evidence, establish, maintain, perfect, protect, enforce, or defend its  right,
title or interest in or to any such properties. 

     7.     Remedy
for Breach. Executive agrees that the damage
to the Company and its affiliates resulting from any actual or  threatened breach
by Executive of any of the covenants contained in Sections 4, 5 and 6 of this
Agreement would be immediate, irreparable and difficult to measure, and that
money damages would not be an adequate remedy. Therefore, Executive agrees  that
the Company shall be entitled to specific performance of the covenants in any
of such sections or injunctive relief, by temporary or permanent injunction or
other appropriate judicial remedy, writ or order, or both, in addition to any
damages  and legal expenses (including attorneys' fees) which the Company may
be legally entitled to recover. 

     8.     Miscellaneous.
Any notice required hereunder shall be deemed delivered to the Company when transmitted
to the  Secretary of the Company by certified mail, postage prepaid, addressed
to such person at the corporate headquarters of the Company at 4916 North Royal
Atlanta Drive, Tucker, Georgia 30084 (or the principal place of business of the
Company if  hereafter it is moved), and shall be deemed delivered to Executive
when delivered by certified mail, postage prepaid, addressed to Executive at
240 Westminster Place, Atlanta, Georgia 30350. No term or condition of this Agreement
shall be deemed to  have been waived, nor shall there be any estoppel to enforce
any provisions of this Agreement, except by a statement in writing signed by
the party against whom enforcement of the waiver or estoppel is sought. This
Agreement is made under, and shall  be governed by and construed in accordance
with, the laws of the State of Georgia without giving effect to the conflict
of law provisions thereof. The headings of the sections of this Agreement are
included solely for convenience of reference and  shall not control the meaning
or interpretation of any of the provisions of this Agreement. This Agreement
contains the entire agreement of the parties relating to the subject matter hereof
and supersedes all prior and contemporaneous agreements and  understandings with
respect to such subject matter, including without limitation the Prior Agreement.
No amendment or modification of this

8

Agreement shall be deemed effective unless made in a writing signed by the parties hereto. This Agreement is solely for the benefit of the Company (and its affiliates) and Executive, and there shall be no third party
beneficiaries to this Agreement. This Agreement may not be assigned by Executive. This Agreement shall inure to the benefit of the Company and its affiliates, and their respective successors and assigns. To the extent any provision or any portion of
any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted herefrom and the remainder of this Agreement shall be unaffected. The obligations and covenants contained in Sections 3(d) and 4 through 8 (inclusive)
of this Agreement shall survive any termination of Executive's employment hereunder at any time for any reason whatsoever. 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Amended and Restated Employment Agreement as of the date first indicated above.

	   	   	
SED International Holdings, Inc.,  
	   	   	
a Georgia corporation  
	   
	
/s/ Jonathan Elster  	   	
By: /s/ Jean A. Diamond  
	
                                Jonathan Elster  	   	
Name: Jean A. Diamond  
	   	   	
Title: Chief Executive Officer  

9

GUARANTY 

     WHEREAS, the Subsidiary will directly benefit from the employment of the Executive by the Company; 

     NOW THEREFORE, in consideration for the entering into the Agreement and as an added inducement to the Executive to enter into
the Agreement and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Subsidiary does hereby irrevocably and unconditionally: 

     1) Guarantee to Executive and his successors and assigns the payment and performance of the Company’s obligations (“Guaranteed
Obligations”) pursuant to the Agreement as and when the same shall be due and payable; and 

     2) Covenants and agrees that it is liable for the Guaranteed Obligations as a primary obligor. 

	
    SED International, Inc.,  
	
    a Georgia corporation  
	 	   
	By:	
 /s/ Jean A. Diamond  
	 	
Name: Jean A. Diamond  
	 	
Title: Chief Executive Officer  

10

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