Document:

LOAN AND SECURITY MODIFICATION AGREEMENT

 

This Loan and Security
Modification Agreement is entered into as of November 9, 2011, by and between Document Capture Technologies, Inc. and Syscan, Inc.
(jointly and severally the “Borrower” or “Borrowers”) and Bridge Bank, National Association (“Bank”).

 

1.             DESCRIPTION
OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant
to, among other documents, a Loan and Security Agreement, dated September 2, 2009 by and between Borrower and Bank, as may be amended
from time to time (the “Loan and Security Agreement”). Capitalized terms used without definition herein shall have
the meanings assigned to them in the Loan and Security Agreement.

 

Hereinafter, all indebtedness owing by
Borrower to Bank shall be referred to as the "Indebtedness" and the Loan and Security Agreement and any and all other
documents executed by Borrower in favor of Bank shall be referred to as the “Existing Documents.”

 

2.             DESCRIPTION
OF CHANGE IN TERMS.

 

A.          Modification(s)
to Loan and Security Agreement:

 

1)           Paragraph
(j) under the defined term “Eligible Accounts” referencing offsettable deferred revenue is hereby deleted and replaced
with the words “Intentionally Omitted.”

 

2)           The
following defined terms in Section 1.1 entitled “Definitions” are hereby amended as follows:

 

“Eligible Foreign Accounts”
means Accounts with respect to which the account debtor does not have its principal place of business in the United States or Canada
and that (i) are supported by one or more letters of credit in an amount and of a tenor, and issued by a financial institution,
acceptable to Bank, (ii) Accounts with respect to which the account debtor is Microtek International, Inc., or (iii) that Bank
approves on a case-by-case basis, provided however, in no event shall Eligible Foreign Accounts without foreign credit insurance
exceed $250,000 in aggregate.

 

“Revolving Line” means
a credit extension of up to Three Million Dollars ($3,000,000).

 

“Revolving Maturity Date”
means November 15, 2012.

 

3)             Section
2.5(a) entitled “Facility Fee” is hereby amended as follows:

 

 (a)        Facility
Fee. On the date of the Business Financing Modification Agreement dated November 7, 2011 and annually on the anniversary of
the Closing Date a fee equal to 0.25% of the Revolving Line.

 

3.        CONSISTENT
CHANGES. The Existing Documents are each hereby amended wherever necessary to reflect the changes described above.

 

4.        PAYMENT
OF FEES. Borrower shall pay Bank the Facility Fee in the amount of $7,500 and a fee in the amount of $75 (“Renewal Due
Diligence Fee”) plus all out-of-pocket expenses.

 

5.        NO
DEFENSES OF BORROWER/GENERAL Release. Borrower agrees that, as of this date,
it has no defenses against the obligations to pay any amounts under the Indebtedness. Each of Borrower and Guarantor (each, a “Releasing
Party”) acknowledges that Bank would not enter into this Loan and Security Modification Agreement without Releasing Party’s
assurance that it has no claims against Bank or any of Bank’s officers, directors, employees or agents. Except for the obligations
arising hereafter under this Loan and Security Modification Agreement, each Releasing Party releases Bank, and each of Bank’s
and entity’s officers, directors and employees from any known or unknown claims that Releasing Party now has against Bank
of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in the future discover they
would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other
theory of liability, including but not limited to any claims arising out of or related to the Agreement or the transactions contemplated
thereby. Releasing Party waives the provisions of California Civil Code section 1542, which states:

 

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A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

The provisions, waivers and releases
set forth in this section are binding upon each Releasing Party and its shareholders, agents, employees, assigns and successors
in interest. The provisions, waivers and releases of this section shall inure to the benefit of Bank and its agents, employees,
officers, directors, assigns and successors in interest. The provisions of this section shall survive payment in full of the Obligations,
full performance of all the terms of this Loan and Security Modification Agreement and the Agreement, and/or Bank’s actions
to exercise any remedy available under the Agreement or otherwise.

 

6.        CONTINUING
VALIDITY. Borrower understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower's representations,
warranties, and agreements, as set forth in the Existing Documents. Except as expressly modified pursuant to this Loan and Security
Modification Agreement, the terms of the Existing Documents remain unchanged and in full force and effect. Bank's agreement to
modifications to the existing Indebtedness pursuant to this Loan and Security Modification Agreement in no way shall obligate Bank
to make any future modifications to the Indebtedness. Nothing in this Loan and Security Modification Agreement shall constitute
a satisfaction of the Indebtedness. It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers
of Existing Documents, unless the party is expressly released by Bank in writing. No maker, endorser, or guarantor will be released
by virtue of this Loan and Security Modification Agreement. The terms of this paragraph apply not only to this Loan and Security
Modification Agreement, but also to any subsequent Loan and Security modification agreements.

 

7.        REFERENCE
PROVISION.

 

a.        In
the event the Jury Trial waiver is not enforceable, the parties elect to proceed under this Judicial Reference Provision.

 

b.        With
the exception of the items specified in Section 7(c) below, any controversy, dispute or claim (each, a “Claim”) between
the parties arising out of or relating to this Agreement or any other document, instrument or agreement between the undersigned
parties (collectively in this Section, the “Loan Documents”), will be resolved by a reference proceeding in California
in accordance with the provisions of Sections 638 et seq. of the California Code of Civil Procedure (“CCP”), or their
successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is
subject to the reference proceeding. Except as otherwise provided in the Loan Documents, venue for the reference proceeding will
be in the state or federal court in the county or district where the real property involved in the action, if any, is located or
in the state or federal court in the county or district where venue is otherwise appropriate under applicable law (the “Court”).

 

c.        The
matters that shall not be subject to a reference are the following: (i) nonjudicial foreclosure of any security interests in real
or personal property, (ii) exercise of self-help remedies (including, without limitation, set-off), (iii) appointment of a receiver
and (iv) temporary, provisional or ancillary remedies (including, without limitation, writs of attachment, writs of possession,
temporary restraining orders or preliminary injunctions). This reference provision does not limit the right of any party to exercise
or oppose any of the rights and remedies described in clauses (i) and (ii) or to seek or oppose from a court of competent jurisdiction
any of the items described in clauses (iii) and (iv). The exercise of, or opposition to, any of those items does not waive the
right of any party to a reference pursuant to this reference provision as provided herein.

 

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d.        The
referee shall be a retired judge or justice selected by mutual written agreement of the parties. If the parties do not agree within
ten (10) days of a written request to do so by any party, then, upon request of any party, the referee shall be selected by the
Presiding Judge of the Court (or his or her representative). A request for appointment of a referee may be heard on an ex parte
or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. Pursuant to CCP
§ 170.6, each party shall have one peremptory challenge to the referee selected by the Presiding Judge of the Court (or his
or her representative).

 

e.        The
parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested,
subject to change in the time periods specified herein for good cause shown, to (i) set the matter for a status and trial-setting
conference within fifteen (15) days after the date of selection of the referee, (ii) if practicable, try all issues of law or fact
within one hundred twenty (120) days after the date of the conference and (iii) report a statement of decision within twenty (20)
days after the matter has been submitted for decision.

 

f.        The
referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines
or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever. Unless otherwise
ordered based upon good cause shown, no party shall be entitled to “priority” in conducting discovery, depositions
may be taken by either party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15)
days after service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to the referee
whose decision shall be final and binding.

 

g.        Except
as expressly set forth herein, the referee shall determine the manner in which the reference proceeding is conducted including
the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the course
of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted without
a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before the referee,
and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the obligation to
arrange for and pay the court reporter. Subject to the referee’s power to award costs to the prevailing party, the parties
will equally share the cost of the referee and the court reporter at trial.

 

h.        The
referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of California.
The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding.
The referee shall be empowered to enter equitable as well as legal relief, enter equitable orders that will be binding on the parties
and rule on any motion which would be authorized in a court proceeding, including without limitation motions for summary judgment
or summary adjudication. The referee shall issue a decision at the close of the reference proceeding which disposes of all claims
of the parties that are the subject of the reference. Pursuant to CCP § 644, such decision shall be entered by the Court as
a judgment or an order in the same manner as if the action had been tried by the Court and any such decision will be final, binding
and conclusive. The parties reserve the right to appeal from the final judgment or order or from any appealable decision or order
entered by the referee. The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision,
and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference proceeding
under this provision.

 

i.         If
the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute
between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The
arbitration will be conducted by a retired judge or justice, in accordance with the California Arbitration Act §1280 through
§1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to
any such arbitration proceeding.

 

j.         THE
PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED
BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER OWN
CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, AGREES THAT THIS REFERENCE PROVISION WILL
APPLY TO ANY CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS.

 

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8.        CONDITIONS.
The effectiveness of this Loan and Security Modification Agreement is conditioned upon payment of the Facility Fee and the Renewal
Due Diligence Fee.

 

9.        COUNTERSIGNATURE.
This Loan and Security Modification Agreement shall become effective only when executed by Bank and Borrower.

 

	BORROWER:	BANK:
	 	 
	DOCUMENT CAPTURE TECHNOLOGIES, INC.	BRIDGE BANK, NATIONAL ASSOCIATION
	 	 
	By:	 	 	By:	 	 
	 	 	 	 	 	 
	Name:	 	 	Name:	 	 
	 	 	 	 	 	 
	Title:	 	 	Title:	 	 

 

	BORROWER:	 
	 	 
	SYSCAN, INC.	 
	 	 
	By:	 	 	 
	 	 	 	 
	Name:	 	 	 
	 	 	 	 
	Title:	 	 	 

  

    	4EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT
("Agreement") made as of this 25th day of July, 2011 by and between Document Capture Technologies, Inc., a Delaware corporation,
having an office at 4255 Burton Drive, Santa Clara, California 95054 (hereinafter referred to as "Employer") and Jacques
vonBechmann, an individual with a business address c/o Employer at 4255 Burton Drive, Santa Clara, California 95054
(hereinafter referred to as "Employee");

 

WITNESSETH:

 

WHEREAS, Employer
desires to employ directly or through a co-employment agreement with a Professional Employer Organization (PEO) licensed in the
State of California, Employee as Senior Vice President of Sales of Employer; and

 

WHEREAS, Employee
is willing to be employed as the Senior Vice President of Sales of Employer in the manner provided for herein, and to perform the
duties of the Senior Vice President of Sales of Employer upon the terms and conditions herein set forth;

 

NOW, THEREFORE,
in consideration of the promises and mutual covenants herein set forth it is agreed as follows:

 

1.        
  Employment of Senior Vice President of Sales of Employer. Employer hereby employs Employee
as the Senior Vice President of Sales of Employer.

 

2.            Term.

 

a.         Subject
to Section 9 and Section 10 below, the term of this Agreement shall be for a period of twenty-four (24) months commencing on July
25, 2011 (the Term). The Term of this Agreement shall be automatically extended for additional one (1) year periods, unless either
party notifies the other in writing at least ninety (90) days prior to the expiration of the then existing Term of its intention
not to extend the Term. During the Term, Employee shall devote all of his business time and efforts to Employer and its subsidiaries
and affiliates.

 

3.          Duties.
The Employee shall perform those functions generally performed by persons of such title and position, shall attend all meetings
of the stockholders and the Board (if invited to attend), shall perform any and all related duties and shall have any and all powers
as may be prescribed by resolution of the Board, and shall be available to confer and consult with and advise the officers and
directors of Employer at such times that may be required by Employer. Employee shall report directly to the Chief Executive Officer
of Employer.

  

4.           Compensation.

 

              a.          
(i) Employee shall be paid a base pay of $150,000 per year (“Base Compensation”) during the Term of this Agreement.
Employee shall be paid periodically in accordance with the policies of the Employer during the term of this Agreement, but not
less than twice a month.

 

(ii)          Employee
is eligible to earn quarterly bonuses with an aggregate annual target of 100% of Employee’s Base Compensation, which Employee
shall earn in the event that Employer attains certain performance milestones. The compensation committee shall review such performance
milestones and shall in its sole discretion authorize Employer to pay all of such quarterly bonuses earned promptly after its determination
that the performance milestones have been met. Employee shall also be entitled to additional annual option grants at the discretion
of the compensation committee of the board of directors. The compensation committee of the board of directors may from time to
time approve additional bonus plans, grants or awards for Employee, in each case as such committee deems appropriate in its sole
discretion.

 

    	 

    	 

    

 

b.          On
April 6, 2011 Employer granted and issued Employee 500,000 options (“Options”) to purchase shares of the Company’s
common stock at an exercise price of $0.40 per which shall be exercisable for a period of ten (10) years, upon execution of this
Agreement. The Options shall be incentive stock options (“ISO’s) as defined in Employer’s 2010 Stock Option Plan,
subject to any required shareholder approval (which Employer shall use its best efforts to obtain), and shall vest and become exercisable
as follows:

 

		(1)	166,666 Options shall vest and become exercisable on April 6, 2012;

		(2)	166,666 Options shall vest and become exercisable on April 6, 2013; and

		(3)	166,667 Options shall vest and become exercisable on April 6, 2014.

 

provided, however, that Employee shall
be entitled to receive pro rata vesting of the Options through the date of termination in the event that termination of employment
is attributable to: (x) termination by Employee pursuant to Section 9(b)(i) or (y) termination by Employer for any reason other
than Cause (as defined in Section 9(a)(i)).

 

c.        Employer
shall include Employee in its health insurance program, payment of premiums in accordance with company policy.

 

d. Employee shall have
the right to participate in any other employee benefit plans established by Employer and PEO maintained generally for other senior
executives, including but not limited to any matching 401(k) plan.

 

e.      (i) In the event
of a "Change of Control" whereby:

 

(A) A person (other
than a person who is an officer or a Director of Employer on the effective date hereof), including a "group" as defined
in Section 13(d)(3) of the Securities Exchange Act of 1934, after execution of this Agreement becomes, or obtains the right to
become, the beneficial owner of Employer securities having 30% or more of the combined voting power of then outstanding securities
of the Employer that may be cast for the election of directors of the Employer; provided, however, that with respect to Richard
Dietl and NCR Corporation the aforementioned percentage shall be 50% (not 30%);

 

(B) At any time, a
majority of the Board-nominated slate of candidates for the Board is not elected;

 

(C) Employer consummates
a merger in which it is not the surviving entity;

 

(D) Substantially all
Employer's assets are sold; or

 

(E) Employer's stockholders
approve the dissolution or liquidation of Employer; then

 

(ii)        All stock options
and/or warrants ("Rights") granted by Employer to Employee under any plan or otherwise prior to the effective date of
the Change of Control, shall become vested, accelerate and become immediately exercisable; any time within twelve months after
the effective date of the change of control, adjusted for any stock splits and capital reorganizations having a similar effect,
subsequent to the effective date hereof. In the event Employee owns or is entitled to receive any unregistered securities of Employer,
then Employer shall use its best efforts to effect the registration of all such securities as soon as practicable, but no later
than 120 days after the Change of Control; provided, however, that such period may be extended or delayed by Employer for one period
of up to 60 days if, upon the advice of counsel at the time such registration is required to be filed, or at the time Employer
is required to exercise its best efforts to cause such registration statement to become effective, such delay is advisable and
in the best interests of Employer because of the existence of non-public material information, or to allow Employer to complete
any pending audit of its financial statements.

 

f.          Employee
shall be entitled to four weeks of paid vacation per year, all of which shall vest on the six month anniversary date of his first
day of employment with the Employer. For each year subsequent to the first year of the Term, Employee shall be entitled to four
weeks of paid vacation, all of which shall vest immediately on such anniversary date.

 

    	 

    	 

    

 

5.          Expenses.
Employee shall be reimbursed for all of his actual out-of-pocket expenses incurred in the performance of his duties hereunder,
provided such expenses are reasonably acceptable to Employer, which approval shall not be unreasonably withheld by Employer, for
business related travel and entertainment expenses. Employee shall submit to Employer detailed receipts, according to IRS guidelines,
with respect thereto. Employer shall also reimburse Employee for Employee’s monthly cell phone, PDA and wireless services
and blackberry expenses, all to be used for business purposes related to Employer.

 

6.       Intentionally
left blank.

 

7.       Secrecy.
At no time shall Employee disclose to anyone any confidential or secret information (not already constituting information available
to the public) concerning (a) internal affairs or proprietary business operations of Employer or (b) any trade secrets, new product
developments, patents, programs or programming, especially unique processes or methods.

 

8.       Covenant
Not to Compete.

 

(a) Subject to, and
limited by, Section 10(b), Employee will not, at any time, during the term of this Agreement, and for one (1) year thereafter,
either directly or indirectly, engage in, with or for any enterprise, institution, whether or not for profit, business, or company,
competitive with the business (as identified herein) of Employer as such business may be conducted on the date thereof, as a creditor,
guarantor, or financial backer, stockholder, director, officer, consultant, advisor, employee, member, inventor, producer, director,
or otherwise of or through any corporation, partnership, association, sole proprietorship or other entity; provided, that an investment
by Employee, his spouse or his children is permitted if such investment is not more than four percent (4%) of the total debt or
equity capital of any such competitive enterprise or business and further provided that said competitive enterprise or business
is a publicly held entity whose stock is listed and traded on a national stock exchange or through the NASDAQ Stock Market. As
used in this Agreement, the business of Employer shall be deemed to include the manufacturing and marketing of imaging systems.

 

(b) For a period of
one year from the date of termination of this agreement Employee shall not contact for the purpose of solicitation or solicit any
of Employer’s, or its subsidiaries, customers, employees or suppliers.

 

(c) During the entire
time of employment, any outside business opportunities must receive the written approval of the compensation committee, established
by the board of directors, or any other committee of the board of directors serving such function.

 

9. Termination.

 

a. Termination by
Employer (i) Employer may terminate this Agreement upon written notice for Cause. For purposes hereof, "Cause" shall
mean (A) Employee's misconduct as could reasonably be expected to have a material adverse effect on the business and affairs of
Employer, (B) the Employee's disregard of lawful instructions of Employers Chief Executive Officer and/or Board of Directors consistent
with Employee's position relating to the business of Employer or neglect of duties or failure to act, which, in each case, could
reasonably be expected to have a material adverse effect on the business and affairs of Employer,(C) engaging by the Employee in
conduct that constitutes activity in competition with Employer, including any unapproved activities identified in section 8(c)
of this agreement; (D) the conviction of Employee for the commission of a felony; and/or (E) the habitual abuse of alcohol or controlled
substances. Notwithstanding anything to the contrary in this Section 9(a)(i), Employer may not terminate Employee's employment
under this Agreement for Cause unless Employee shall have first received notice from the Board advising Employee of the specific
acts or omissions alleged to constitute Cause, and such acts or omissions continue after Employee shall have had a reasonable opportunity
(at least 10 days from the date Employee receives the notice from the Board) to correct the acts or omissions so complained of.
In no event shall alleged incompetence of Employee in the performance of Employee's duties be deemed grounds for termination for
Cause.

 

If Employer terminates Employee for Cause, both parties agree
as follows:

(A) Before such termination shall become effective, the matter
shall be submitted to a binding arbitration conducted at a location in San Jose, California to be determined by an arbitrator selected
by the initiating party and in accordance with the then existing Rules of Practice and Procedure of the American Arbitration Association.

 

    	 

    	 

    

 

(B) The number of arbitrators shall be three; one selected by
Employee, one selected by Employer, and one selected by the two selected arbitrators. Each arbitrator shall be impartial and independent
and shall perform his or her duties with diligence and in good faith.

(C) Any party may be represented by counsel or other authorized
representatives during the arbitration hearings. No party shall communicate ex parte with a selected or candidate arbitrator.

(D) The arbitrators shall, by majority decision, determine the
fairness and validity of Employer’s reasons for terminating Employee for Cause and such determination shall be final and
binding upon the parties. If the termination is determined to be invalid or unfair, Employer shall be deemed to have breached the
Agreement and Section 10 of the Agreement shall apply.

(E) Each party shall bear its expenses, costs and attorney fees
relating to the arbitration.

(F) Until such time as a final binding arbitration award is
entered into, Employee shall be placed on administrative leave and shall continue to receive his full compensation (including salary,
bonus, stock options and benefits) as if he remained an Employee of the Company.

 

(ii)       This
agreement automatically shall terminate upon the death of Employee, except that Employee's estate shall be entitled to receive
any amounts that Employee would have been entitled to receive under Section 9(a)(iii) below if his employment had terminated pursuant
to Section 9(a)(i) above.

 

(iii) In the event that
Employee’s employment is terminated pursuant to Section 9(a)(i) above, Employee shall be entitled to receive: (a) payment
of all earned/accrued Base Compensation, (b) unreimbursed business expenses, (c) accrued/unused vacation time, (d) a pro rata portion
of Employee’s annual bonus for the termination year, all of (a) – (d) shall be measured through the termination date
in accordance with Section 9(a)(i) above. Additionally, Employee shall have ninety (90) days to exercise all vested options, which
thereafter shall immediately expire.

 

b.          Termination
by Employee

 

(i) Employee shall have
the right to terminate his employment under this Agreement upon 30 days' notice to Employer given within 90 days following the
occurrence of any of the following events (A) through (F) or within three years following the occurrence of event (G):

 

(A)      Employee
is not appointed or retained as Senior Vice President of Sales (or a substantially similar position).

 

(B)      Employer
acts to materially reduce Employee's duties and responsibilities hereunder. Employee's duties and responsibilities shall not be
deemed materially reduced for purposes hereof solely by virtue of the fact that Employer is (or substantially all of its assets
are) sold to, or is combined with, another entity, provided that Employee shall continue to have the same duties and responsibilities
with respect to Employer's business, and Employee shall report directly to the board of directors of the entity (or individual)
that acquires Employer or its assets.

 

(C) Employer acts to
change the geographic location of the performance of Employee’s duties from the San Jose area. For purposes of this Agreement,
the San Jose area shall be deemed to be the area within 60 miles of San Jose, California.

 

(D)      A
Material Reduction (as hereinafter defined) in Employee's rate of base compensation, or Employee's other benefits. "Material
Reduction" shall mean a ten percent (10%) differential;

 

(E)       A
failure by Employer to obtain the assumption of this Agreement by any successor;

 

(F)       A
material breach of this Agreement by Employer, which is not cured within thirty (30) days of written notice of such breach by Employer;

 

    	 

    	 

    

 

(G)       A Change of
Control.

 

(ii)   Anything
herein to the contrary notwithstanding, Employee may terminate this Agreement upon thirty (30) days written notice to Employer.

 

(iii)   If
Employee shall terminate this Agreement under Section 9(b)(i), Employee shall be entitled to receive: (a) twelve (12) months salary
at Employee’s then current yearly salary rate, (the “Severance Payment”), (b) reimbursement by Employer
of 100% of the C.O.B.R.A. premiums for twelve (12) months after such termination, (c) payment of all unpaid earned Base Compensation
as of the date of termination, (d) payment of all unreimbursed business expenses incurred through the date of termination, (e)
payment for all unused vacation time accrued through the date of termination, (f) payment of a pro rata portion of Employee’s
annual bonus as of the date of termination for the termination year, and (g) the right to exercise all vested options within 90
days of the date of termination, all of which shall expire thereafter. Other than the payments described in (a)-(g) of this section
9(b)(iii), Employer shall have no further obligation to compensate Employee pursuant to Section 4 above.
 

 

(iv) If Employee
shall terminate this Agreement pursuant to Section 9(b)(ii), Employee shall only be entitled to receive the compensation set forth
in 9(b)(iii)(c), (d), (f) and (g) above and Employer shall have no further obligation to compensate Employee pursuant to Section
4 above. 

 

		10.	Consequences of Breach by Employer;

Employment Termination
 

 

a. If the Employer
shall terminate Employee's employment under this Agreement in any way that is a breach of this Agreement by Employer, the following
shall apply:

 

(i)      Employee
shall be entitled to receive the compensation set forth in Section 9(b)(iii) above and Employer shall have no further obligation
to compensate Employee pursuant to Section(s) 4 or 9 above.

 

b.      In
the event of termination of Employee's employment pursuant to Section 9(b)(i) of this Agreement, Sections 8(a) and 8(b) shall apply
to Employee for twelve (12) months after such termination.

 

11.        Remedies

 

Employer recognizes
that because of Employee's special talents, in the event of termination by Employer hereunder (except under Section 9(a)(i) or
(iii), or in the event of termination by Employee under Section 9(b)(i) before the end of the agreed term, the Employer acknowledges
and agrees that the provisions of this Agreement regarding further payments of base salary, bonuses and the exercisability of Rights
constitute fair and reasonable provisions for the consequences of such termination, do not constitute a penalty, and such payments
and benefits shall not be limited or reduced by amounts' Employee might earn or be able to earn from any other employment or ventures
during the remainder of the agreed term of this Agreement.

 

12.        Excise
Tax.       In the event that any payment or benefit received or to be received by Employee
in connection with a termination of his employment with Employer would constitute a "parachute payment" within the meaning
of Code Section 280G or any similar or successor provision to 280G and/or would be subject to any excise tax imposed by Code Section
4999 or any similar or successor provision then Employer shall assume all liability for the payment of any such tax and Employer
shall immediately reimburse Employee on a "grossed-up" basis for any income taxes attributable to Employee by reason
of such Employer payment and reimbursements.

 

13.        Attorneys'
Fees and Costs. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the
prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief
to which he may be entitled.

 

    	 

    	 

    

 

14.       Entire
Agreement; Survival. This Agreement contains the entire agreement between the parties with respect to the transactions
contemplated herein and supersedes, effective as of the date hereof any prior agreement or understanding between Employer and Employee
with respect to Employee's employment by Employer. The unenforceability of any provision of this Agreement shall not effect the
enforceability of any other provision. This Agreement may not be amended except by an agreement in writing signed by the Employee
and the Employer, or any waiver, change, discharge or modification as sought. Waiver of or failure to exercise any rights provided
by this Agreement and in any respect shall not be deemed a waiver of any further or future rights.

 

b.       
The provisions of Sections 4, 7, 8, 9(a)(ii), 9(a)(iii), 9(b)(iii), 10, 11, 12, 13, 14, 16, 17 and 18 shall survive the termination
of this Agreement.

 

15.      Assignment.
This Agreement shall not be assigned to other parties.

 

16.       Governing
Law. This Agreement and all the amendments hereof, and waivers and consents with respect thereto shall be governed by the
laws of the State of California, without regard to the conflicts of laws principles thereof.

 

17.       Notices.
All notices, responses, demands or other communications under this Agreement shall be in writing and shall be deemed to have been
given when

 

a.       delivered
by hand;

 

b.       sent
be telex or telefax, (with receipt confirmed), provided that a copy is mailed by registered or certified mail, return receipt requested;
or

 

c. received by the
addressee as sent by express delivery service (receipt requested)

 

in each case to the appropriate addresses,
telex numbers and telefax numbers indicated below or to such other address as such party may designate for itself by notice to
the other parties; provided that any change of address furnished by Employee to Employer for purposes of updating Employer’s
payroll records shall be deemed to constitute notice of address change under this Agreement unless otherwise specifically requested
in writing by Employee:

 

(i) if to the Employer:

Document Capture Technologies,
Inc.

4255 Burton Drive

Santa Clara, CA 95054

Telefax:(408)-490-2801

Telephone:(408)-436-9888

 

(ii) if to the Employee:

Jacques vonBechmann

1225 Vancouver Avenue

Burlingame, CA 94010

 

18.       Severability
of Agreement. Should any part of this Agreement for any reason be declared invalid by a court of competent jurisdiction,
such decision shall not affect the validity of any remaining portion, which remaining provisions shall remain in full force and
effect as if this Agreement had been executed with the invalid portion thereof eliminated, and it is hereby declared the intention
of the parties that they would have executed the remaining portions of this Agreement without including any such part, parts or
portions which may, for any reason, be hereafter declared invalid.

[SIGNATURE PAGE FOLLOWS]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed this agreement as of the day and year first above written.

 

Employee

 

	Signature:	 	 	 
	 	 
	Printed Name: Jacques vonBechmann	 
	 	 
	Date: July 25, 2011	 

 

DOCUMENT CAPTURE TECHNOLOGIES, INC.

 

	By:	 	 	 
	 	 
	Name: David P. Clark	 
	 	 
	Title: Chief Executive Officer	 
	 	 
	Date: July 25, 2011	 

 

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT DATED July 25, 2011]

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