Document:

ex10-1.htm

Exhibit 10.1

 

	
US $600,000.00

	
July ____, 2015

Livingston, New Jersey

 

PROMISSORY NOTE

 

FOR VALUE RECEIVED, the undersigned, SWK TECHNOLOGIES, INC., a Delaware corporation (the “Borrower”), hereby promises to pay to the order of PRODUCTIVE TECH, INC., a New Jersey corporation (the “Note Holder”), or as it may otherwise direct, no later than the Maturity Date (as defined below), the unpaid principal amount of the loan (the “Loan”) made by the Note Holder to the Borrower on the date hereof, as evidenced hereby, in the principal amount of Six Hundred Thousand Dollars (US $600,000.00). The Borrower hereby promises to pay interest on the unpaid principal amount of the Loan on the dates and at the rate provided for herein.

 

SECTION 1 .  Certain Terms Defined. The following terms for all purposes of this Promissory Note shall have the respective meanings specified below.

 

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized by law to close.

 

 “Event of Default” has the meaning given to it in Section 6.

 

“Maturity Date” means the date that is sixty (60) months following execution hereof, on which date the then outstanding amount of the Loan, together with all then outstanding interest, shall be paid in full.

 

“Parent” means SilverSun Technologies, Inc., a Delaware corporation, and its successors and assigns.

 

“Person” means and includes any natural person, individual, partnership, joint venture, corporation, trust, Limited Liability Company, limited company, joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof, or any other entity.

 

SECTION 2 .  Payments Due Under Promissory Note.  Borrower shall pay Note Holder the applicable amount specified on Schedule 1 hereto (the “Amortization Schedule”), on the applicable date specified thereon, until the amount due hereunder is paid in full.  The initial payment shall be due and payable on August 1, 2015.

 

SECTION 3 .  Interest Payments.  As provided on the Amortization Schedule, the unpaid principal amount of the Loan shall bear interest at a rate per annum equal to two and one-half percent (2.50%).  Any amounts outstanding on the Maturity Date shall be due and owing as of such date.

 

Any overdue principal of or interest on the Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the lesser of (i) the maximum interest rate permitted by applicable law or (ii) ten percent (10.00%) (the “Default Rate”).

 

  

  

  

 

Interest shall be computed on the basis of a year of 365 days and paid for the actual number of days elapsed (including the first day but excluding the last day).

 

SECTION 4 .  Optional Prepayments.  The Borrower may prepay the Loan in whole or in part at any time without penalty by paying the principal amount to be prepaid together with interest accrued thereon to the date of prepayment.

 

SECTION 5 .  General Provisions as to Payments.  The payment of principal of and interest on the Loan by the Borrower hereunder shall be made not later than 12:00 Noon (New York City time) on the due date of each payment by cashier’s check or by wire transfer of immediately available funds to the Note Holder’s account at a bank in the United States specified by the Note Holder in writing to the Borrower without reduction by reason of any set-off or counterclaim.  In the event of payment by check, said payment shall be payable at 1120 Crown Point Road, Westville, NJ 08093, or at such other place as Note Holder may designate in writing from time to time.

 

SECTION 6 .  Events of Default.  Each of the following events shall constitute an “Event of Default”:

 

	
a.  

	
the principal or interest of the Loan shall not be paid within five (5) Business Days of the date that such amount was due.  Time is of the essence as to payment;

 

	
b.  

	
a court shall enter a decree or order for relief in respect of the Borrower or Parent in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or Parent for any substantial part of the property of the Borrower or Parent or ordering the winding up or liquidation of the affairs of the Borrower or Parent, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; and

 

	
c.  

	
the Borrower or Parent shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or Parent or for any substantial part of the property of the Borrower or Parent, or the Borrower or Parent shall make any general assignment for the benefit of creditors.

 

If an Event of Default shall occur, the unpaid principal and accrued interest on the Loan shall become immediately due and payable.  Immediately upon the occurrence of any Event of Default the Note Holder, the Borrower may proceed to protect, enforce, exercise and pursue any and all legal rights and remedies available to the Note Holder under this Promissory Note and any and all legal rights and remedies available to the Note Holder at law or in equity.

 

SECTION 7 .  Further Assurances.  The Borrower hereby agrees that, from time to time upon the written request of the Note Holder, the Borrower will execute and deliver such further documents and do such other acts and things as the Note Holder may reasonably request in order to fully effect the purposes of this Promissory Note.

 

  

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SECTION 8 . Notices.  All notices, requests, demands and other communications to any party hereunder shall be in writing (including prepaid overnight courier, facsimile transmission, electronic transmission or similar writing) and shall be given to such party at the address set forth below or at such other address as such party may hereafter specify for the purpose by notice to each other party hereto.

 

If to the Borrower:

 

SWK Technologies, Inc.

5 Regent Street, Suite #520

Livingston, NJ  07039

Attention: Jeffrey D. Roth

 

If to the Note Holder:

 

Productive Tech, Inc.

1120 Crown Point Road

Westville, NJ  08093

Attention: John McPoyle

Kevin Snyder

 

Every notice or other communication shall, except so far as otherwise expressly provided by this Promissory Note, be deemed to have been received (provided that it is received prior to 2 p.m. local time; otherwise it shall be deemed to have been received on the next following Business Day) if given by mail, prepaid overnight courier or any other means, when received at the address specified in this Section or when delivery at such address is refused.

 

SECTION 9 .  Powers and Remedies Cumulative; Delay or Omission Not Waiver of Event of Default.   No right or remedy herein conferred upon or reserved to the Note Holder is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

No delay or omission of the Note Holder to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any Event of Default or an acquiescence therein; and every power and remedy given by this Promissory Note or by law may be exercised from time to time, and as often as shall be deemed expedient, by the Note Holder.

 

SECTION 10 .  Transfers.  The parties may not transfer or assign this Promissory Note nor any right or obligation hereunder to any person or entity without the prior written consent of both the Borrower and the Note Holder.

 

SECTION 11 .  Modification.  This Promissory Note may be modified only with the written consent of both the Borrower and the Note Holder.

 

  

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SECTION 12 .  Expenses.  The Borrower agrees to pay to the Note Holder all reasonable out-of-pocket expenses (including reasonable expenses for legal services of every kind) of, or incident to, the enforcement of any of the provisions of this Promissory Note.

 

SECTION 13 .  Miscellaneous.  This Promissory Note shall be deemed to be a contract under the laws of the State of New Jersey, and for all purposes shall be construed in accordance with the laws of said state without regard to conflict of law principles.  The parties hereto hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of or any default under this Promissory Note, except as specifically provided herein, and assent to extensions of the time of payment, or forbearance or other indulgence without notice.  The Section headings herein are for convenience only and shall not affect the construction hereof.  Any provision of this Promissory Note which is illegal, invalid, prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity, prohibition or unenforceability without invalidating or impairing the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.  This Promissory Note shall bind the Borrower and his or her heirs, administrators, executors, personal representatives, successors and permitted assigns.  The rights under and benefits of this Promissory Note shall inure to the Note Holder and its successors and assigns.

 

[signature page follows]

 

 

 

 

 

  

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IN WITNESS WHEREOF, the Borrower has caused this Promissory Note to be duly executed on the date indicated below.

 

 

Date:  July ___, 2015

 

 

SWK Technologies, Inc.

 

 

By: __________________________

Name:  Jeffrey D. Roth

Title:    Chief Executive Officer

 

 

  

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SCHEDULE 1

Amortization Schedule

 

 

 

 

 

 

 

  

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PARENT GUARANTY

FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, Silversun Technologies, Inc., a Delaware corporation (the “Guarantor”), does hereby covenant, contract and agree with Productive Tech, Inc., a New Jersey corporation (the “Note Holder”), that Guarantor will guarantee, absolutely and unconditionally, the debt of SWK Technologies, Inc., a Delaware corporation (the “Borrower”), owing pursuant to that certain Promissory Note, dated July 6, 2015 (the “Promissory Note”), together with all reasonable attorneys’ fees, disbursements and all other reasonable costs and expenses of collection incurred by the Note Holder in enforcing any of the terms and obligations of the Promissory Note and/or this guarantee (the “Obligations”).  This agreement shall be referred to herein as the “Parent Guarantee”.

SECTION 1.  Guaranty.  Guarantor agrees to guarantee the full and punctual payment, performance and satisfaction of the Obligations of the Borrower to the Note Holder, its successors, indorsees, transferees and assigns, now existing or hereafter arising or acquired in connection with the Promissory Note.  The Parent Guaranty shall remain in full force and effect until all the Obligations shall have been satisfied by payment in full.  This is a guaranty of payment and performance and not of collection.  The Note Holder can enforce this Parent Guaranty against Guarantor regardless of whether the Note Holder has exhausted its remedies against the Borrower.

The Parent Guaranty is absolute and unconditional. The Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Note Holder upon the guarantee contained in this Section 1 or acceptance of the guarantee contained in this Section 1; the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 1; and all dealings between the Borrower and the Guarantor, on the one hand, and the Note Holder, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 1. The Guarantor waives to the extent permitted by law diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Borrower or the Guarantor with respect to the Obligations. The Guarantor understands and agrees that the guarantee contained in this Section 1 shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of the Promissory Note, any of the Obligations or guarantee or right of offset with respect thereto at any time or from time to time held by the Note Holder, (b) any defense, set-off or counterclaim (other than a defense of payment or performance or fraud or misconduct by Note Holder) which may at any time be available to or be asserted by the Borrower, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower for the Obligations, or of the Guarantor under the guarantee contained in this Section 1, in bankruptcy or in any other instance.

 

  

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SECTION 2.  Waiver. Guarantor expressly waives presentment, notice of default, protest and acceptance.  To the extent not prohibited by the laws of the State of New Jersey, Guarantor further waives the right to assert any defenses and claims that the Borrower may assert, and Guarantor’s right, if any, to require that the Note Holder seek remedies against Borrower or any other person before collecting from Guarantor.   No delay or omission of the Note Holder to exercise any right or power hereunder or upon any Event of Default, as defined above, under the Promissory Note, occurring and continuing shall impair any such right or power or shall be construed to be a waiver under the Parent Guarantee or Promissory Note.

SECTION 3.  Successors and Assigns. This Parent Guarantee shall be binding upon the successors and assigns of the Guarantor and shall inure to the benefit of the Note Holder and its respective successors and assigns; PROVIDED that no Guarantor may assign, transfer or delegate any of its rights or obligations under this Parent Guarantee without the prior written consent of the Note Holder.

SECTION 4.  Governing Law. This Parent Guarantee and the rights and obligations of each party hereto, shall be governed and construed in accordance with the laws of the State of New Jersey without reference to its choice or conflict of law provisions that would cause the application of the laws of any jurisdiction other than the State of New Jersey.

[signature page follows]

 

 

 

 

  

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IN WITNESS WHEREOF, the Parent has caused this Parent Guarantee to be duly executed on the date indicated below.

 

 

Date:  July ___, 2015

 

 

SilverSun Technologies, Inc.

 

 

By: __________________________

Name:

Title:    Chief Executive Officer

 

  

9ex10-2.htm

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This employment agreement, (the “Agreement”) is made on July ___, 2015, effective as of July 6, 2015, by and between SWK TECHNOLOGIES, INC., a Delaware corporation (hereinafter referred to as “SWK” or the “Company”), having its primary offices at 5 Regent Street, Suite #520, Livingston, NJ 07039 and John McPoyle, currently residing at _____________________ (hereinafter referred to as the "Executive").

 

W I T N E S E T H :

 

WHEREAS, Executive possesses certain knowledge and skills relating to the Company’s business that the Company wishes to obtain for the development and success of the Company’s business.

 

WHEREAS, the Company desires to engage the services of the Executive, and the Executive desires to render such services;

 

NOW, THEREFORE, in consideration of the premises, the parties agree as follows:

 

1.             Employment.  The Company hereby employs the Executive as Vice President of Operations for the NetUp-IT business unit (the “Business Unit”) of the Company and the Executive hereby accepts such employment, subject to the terms and conditions hereinafter set forth.

 

2.             Term.  The term of the Executive’s employment hereunder shall commence on July 6, 2015 (the “Commencement Date”) and shall continue through July 5, 2018 (the “Term”) unless such Term is earlier terminated in accordance with the provisions of this Agreement.

 

3.             Duties.  The Executive agrees that he will serve the Company on a full-time basis faithfully and to the best of his ability, subject to the general supervision of the Company’s Chief Executive Officer (“CEO”), the Chief Information Officer (“CIO”) or their designee(s) and/or the Board of Directors of the Company.  The Executive’s duties will include, but not be limited to the day-to-day operating activities of the Business Unit, including providing leadership, management of staff, revenue growth, expense and cost control, preparation and management of budgets, specifically operations budgets for the Business Unit. The Executive agrees that he will not, during the term of this Agreement, engage in any other business activity which interferes with the performance of his obligations under this Agreement. The Executive will devote all of his working time to the business and affairs of the Company, provided, however, that the foregoing shall not be construed as precluding the Executive from: (i) serving on the Board of Directors of any corporation or entity not directly competitive or competitive in any material respect with the Company; (ii) investing or trading in securities or other forms of investments, in each case, so long as such activities do not materially interfere with the performance of the Executive’s  duties hereunder and such investments do not represent the ownership of five percent (5%) or more of the capital stock of publicly traded entities; and (iii) engaging in other business activity, provided such other business activity does not interfere with the performance of his obligations under this Agreement and does not compete, directly or indirectly, with SWK.

 

  

  

  

 

4.             Location of Performance of Duties. Initially, the Executive shall perform the majority of duties of his position at _____________________. The Company retains the right to change the Executive’s work location at any time during the term of this Agreement, provided it is within 20 miles of the initial location.

 

5.             Compensation.

 

(a) In consideration of the services to be rendered by the Executive hereunder, the Company agrees to pay the Executive, and the Executive agrees to accept, a Base Salary in the amount of One Hundred Fifty Five Thousand Dollars ($155,000) per annum, subject to all required federal, state and local payroll deductions.  Currently, the Company pays its executives on a bi-weekly basis.

 

(b)  Incentive compensation shall be paid as follows:

 

(i) for the period from the Commencement Date through December 31, 2015  Executive shall receive $10,000, which shall be paid to the Executive within thirty (30) days after the financial closing of the period;

 

(ii) for the period from January 1, 2016 through June 30, 2016, Executive shall receive $10,000, which shall be paid to the Executive within thirty (30) days after the financial closing of the period;

 

(iii) from the period from July 1, 2016 through December 31, 2016, Executive shall receive 3.3% of the incremental increase in Gross Margin (as defined below) of the Business Unit based on the amount by which the Gross Margin for the period of July 1, 2016 through December 31, 2016 exceeds the Gross Margin of the Business Unit for the period of January 1, 2016 through June 30, 2016. SWK shall pay the Executive such incentive compensation within thirty (30) days after the financial closing of the period.

 

(iv) Thereafter and through the end of the Term, each year, on December 31, Executive shall  receive incentive compensation equal to an aggregate of 3.3% of the incremental increase in Gross Margin of the Business Unit during such calendar year over Gross Margin of the Business Unit for the immediately preceding calendar year of the Business Unit.  If SWK acquires additional Managed Service Providers that become part of the Business Unit, Executive’s incentive pay shall exclude the incremental increase in Gross Margin gained from the acquisition of such Managed Service Provider, but shall include the incremental increase in Gross Margin during each calendar year of the combined Business Unit after such acquisition.  SWK shall pay the Executive such incentive compensation within sixty (60) days after the end of each calendar year. Gross Margin means the difference between revenue and cost and is calculated to include license or royalty fees associated with the delivery of managed services, business continuity and other related services, hosting fees, hardware costs, direct labor charges and other relevant costs of goods/services sold. Gross Margin shall exclude revenue and costs arising from and related to operations outside of the Business Unit.

 

(c) The Executive shall be entitled to twenty (20) Paid Time Off (“PTO”) days during each calendar year.  The Executive shall be permitted to carry forward a maximum of ten (10) PTO days from the prior calendar year.  Any remaining days will be forfeited. The Company shall not be obligated to pay the Executive for any unused or lost PTO days. Notwithstanding the foregoing, the Company, in its sole and absolute discretion, may choose to pay the Executive for unused PTO days carried forward from the prior calendar year in lieu of providing the Executive with PTO days carried forward from the prior year.

 

  

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(d) The Executive shall be entitled to Company holidays in accordance with the Company’s Employee Handbook, as amended and as published periodically by the Company. Company holidays are usually published annually in December of the preceding year.

 

(e) The Executive shall receive $900 per month towards group medical and dental benefits for himself and his family with any excess costs related to such being deducted from the Executive’s bi-weekly paycheck. If, during the Term, the Company offers other similarly-situated employees an amount greater than $900 per month to be applied towards group medical and dental benefits for such employee and his/her family, the Executive shall also be eligible for such offer. The Executive shall also receive qualified retirement benefits, group disability insurance and group life insurance, as per the Employee Handbook, and in accordance with the Company’s standard practices.

 

(f) To the extent that the Executive becomes mentally or physically disabled, as determined in accordance with Paragraph 10 of this Agreement, Executive shall continue to receive his total compensation and other benefits hereunder until the termination of this Agreement pursuant to Paragraph 10 hereof; provided, however, that the Executive’s Base Salary shall be reduced by any disability benefits Executive receives from policies maintained and paid for by the Company.  Moreover, Executive is required to exhaust all accrued but unused PTO in connection with any such absence due to disability.

 

(g) At the discretion of the Company’s Board of Directors, the Executive will also be eligible for periodic cash and/or stock incentive bonuses.

 

6.             Business Expenses.

 

Executive is authorized to incur, and the Company shall pay and reimburse him, for reasonable and necessary business expenses incurred in the performance of his duties hereunder, in accordance with guidelines adopted by the Board of Directors.  The Company will pay and reimburse Executive for all such reasonable expenses upon the presentation by Executive, from time to time, of an itemized account of such reasonable expenditures and proper documentation thereof as evidence that such expenses have been incurred. The determination of what is fair and reasonable shall be made by the CEO or CIO.

 

7.             Termination by the Company for Cause.

 

The Company has the right to terminate Executive’s employment with cause. Termination by the Company of the Executive’s employment for cause (hereinafter referred to as “Termination for Cause”), shall mean termination upon:

 

(i) the willful and continued failure by the Executive to substantially perform the Executive’s  material duties with the Company (other than any such failure resulting from the Executive’s  incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Executive by the Board, the CEO or the CIO, which demand specifically identifies the material duties that the Board believes that the Executive has not substantially performed; provided, however, that Executive has an opportunity and reasonable period of time to cure such failure; or

 

  

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(ii) the willful engaging by the Executive in conduct that is demonstrably and materially injurious to the Company, monetarily or otherwise; or

 

(iii)  the conviction of the Executive of a felony; or

 

(iv) the commission of any act by the Executive against the Company that constitutes the embezzlement, larceny, and/or grand larceny.

 

8.            Termination by the Company Without Cause.   If the Company terminates Executive’s  employment other than for Cause pursuant to Paragraph 7, or on account of death or disability pursuant to Paragraphs 10 or 11, the Company shall pay or provide the Executive, within thirty (30) days of the date of termination, with: (i) any unpaid salary earned under this Agreement prior to the date of termination; (ii) any accrued but unused PTO days prior to the date of termination; (iii) any unpaid compensation due under Paragraph 5 (b) herein; (iv) any unpaid expense reimbursement owed to him for periods through the date of termination; and (v) the Executive’s  Base Salary for the remainder of the Term.

 

9.            Termination by the Executive.     The Executive may terminate his employment hereunder for “Good Reason,” within ninety (90) days of the occurrence of any of the following events: (i) a significant and material breach of this Agreement by the Company; or (ii) any failure to pay, within a reasonable amount of time, any part of the Executive’s compensation (including Base Salary and variable compensation, if any) or to provide the benefits contemplated herein.  The Executive shall give the Company written notice of any proposed termination for Good Reason and the Company shall have thirty (30) days from receipt of such written notice to cure any ground of termination for Good Reason, as set forth in this Paragraph.  In the event of Termination by Executive for Good Reason, Company shall be obligated to pay to Executive that compensation due as if Company had terminated Executive Without Cause pursuant to Paragraph 8 of this Agreement.

 

10.          Termination Due to Death.     In the event of the Executive’s death during the Term of this Agreement, the Executive’s employment hereunder shall immediately and automatically terminate, and the Company shall pay to the estate or beneficiaries of Executive (i) any unpaid salary earned under this Agreement prior to the date of death; (ii) any accrued but unused PTO days prior to the date of death; (iii) any unpaid compensation due under Paragraph 5 (b) herein; and (iv) any unpaid expense reimbursement owed to him for periods through the date of termination. The Company shall have no further obligation or duty to the Executive or his estate or beneficiaries.

11.          Termination Due to Disability.     The Company may terminate the Executive’s employment hereunder, upon written notice to the Executive, in the event that the Executive becomes disabled during the Term.  The term “disabled” is defined as any condition of either a physical or psychological nature that, even with reasonable accommodation, renders the Executive unable to perform the essential functions of the services contemplated hereunder for a period of one hundred eighty (180) days during any twelve (12) month period during the Term.  Executive represents that any period of disability beyond one hundred eighty (180) days would place an undue burden and hardship on the Company.   Any such termination shall become effective upon mailing or hand delivery of such notice to the Executive. The Company shall have no further obligation or duty to the Executive following termination under this Paragraph, other than to pay Executive all earned compensation and benefits through the initial one hundred twenty days (120) of the disability period, and other than as required by applicable law.  For purposes of determining the existence or nonexistence of a disability, the Executive and Company shall mutually agree to a physician.  If the Executive and Company are unable to agree on a physician, the physicians selected by each shall agree on a third physician, who shall make the disability determination.

 

  

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12.          Non-Disclosure of Confidential Information and Non-Solicitation.  This provision shall be governed by the terms and conditions of that certain Non-Disclosure/Non-Solicitation and Arbitration Agreement, dated as of the date hereof and attached as Exhibit A hereto.

 

13.          Successors; Binding Agreement. Neither this Agreement nor any right or interest hereunder shall be assignable by the Executive, nor shall it be subject to attachment, execution, pledge or hypothecation, but this Agreement if Executive shall die shall inure to the benefit of and be enforceable by the Executive’s  personal or legal representative, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Executive dies during the term of this Agreement before a notice of termination is sent by either party, no amounts shall be paid to Executive’s devisee, legatee or other designee, except for (i) any unpaid salary earned under this Agreement prior to the date of death; (ii) any accrued but unused PTO days prior to the date of death; (iii) any unpaid compensation due under Paragraph 5 (b) herein; and (iv) any unpaid expense reimbursement owed to him for periods through the date of termination.  If Executive dies after a notice of termination has been submitted by either party, the Agreement shall terminate according to the notice of termination and the relevant sections of this Agreement pertaining to such a termination rather than as a termination under this Section. 

 

14.          Miscellaneous.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive, and such officer as may be specifically designated by the Board.  No waiver by either party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party that is not set forth in this Agreement.  Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law.

 

15.          Severance and Validity.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

  

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16.          Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

 

17.          Entire Agreement.  This Agreement contains the entire understanding of the parties with respect to the subject matter hereof, supersedes any prior agreement between the parties, and may not be changed or terminated orally.  No change, termination or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party to be bound; provided, however, that the Executive’s compensation and benefits may be increased at any time by the Company without in any way affecting any of the other terms and conditions of this Agreement, which in all other respects shall remain in full force and effect.

 

18.          Negotiated Agreement.  This Agreement has been negotiated and shall not be construed against the party responsible for drafting all or parts of this Agreement.

 

19.          Notices.  For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or received by United States registered or certified mail, return receipt requested, postage prepaid, or by nationally recognized overnight delivery service providing for a signed return receipt, addressed to the Executive at the Executive’s  home address set forth in the Company’s records and to the Company at the address set forth on the first page of this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

 

20.          Governing Law and Resolution of Disputes.  All matters concerning the validity and interpretation of and performance under this Agreement shall be governed by the laws of the State of New Jersey.  Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Newark, New Jersey in accordance with the rules of the American Arbitration Association (“AAA”) then in effect.  Arbitration will take place before a single experienced employment arbitrator licensed to practice law in New Jersey and selected in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association.  The arbitrator may not modify or change this Agreement in any way.  Any judgment rendered by the arbitrator as above provided shall be final and binding on the parties hereto for all purposes and may be entered in any court having jurisdiction.  In any arbitration pursuant to this Paragraph 20, each party shall be responsible for the fees and expenses of its own attorney and witnesses, and the fees and expenses of the arbitrator shall be divided equally between the Company and the Executive.  Executive agrees that the cost provisions of this Paragraph are fair and not unconscionable.  Nothing in this Paragraph 20 shall be construed to limit the Company’s ability to seek injunctive and other relief in connection with an actual or threatened violation of Paragraph 12 hereof.

 

  

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[Signature Page follows]

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of July ___, 2015.

 

 

SWK TECHNOLOGIES, INC.

 

By: Jeffrey D. Roth, CEO                                                                July ___, 2015

 

EXECUTIVE:

 

______________________________                                      July ____, 2015

John McPoyle

 

[Signature Page SWK- John McPoyle Employment Agreement]

 

  

  

  

 

EXHIBIT A

 

NON-DISCLOSURE/NON-SOLICITATION AND ARBITRATION AGREEMENT

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