Document:

Exhibit
      10.2

    

    NEWTEK
      BUSINESS SERVICES, INC.

     

      
        

      

    

     

    Employment
      Agreement with

    

    Jeffrey
      G. Rubin

    

    
      
 

    PREAMBLE.
      This
      Agreement entered into this 30th
      day of
      June 2006, by and between Newtek Business Services, Inc. (the “Company”) and
      Jeffrey G. Rubin (the “Executive”), effective immediately.

    

    WHEREAS,
      the
      Executive is to be employed by the Company as an executive officer;
      and

    

    WHEREAS,
      the
      parties desire by this writing to set forth the employment relationship of
      the
      Company and the Executive.

     

    NOW,
      THEREFORE,
      it is
AGREED
      as
      follows:

    

    1. Defined
      Terms

    

    When
      used
      anywhere in the Agreement, the following terms shall have the meaning set forth
      herein.

    

    (a) “Board”
      shall
      mean the Board of Directors of the Company.

    

    (b) “Change
      in Control”
      shall
      mean any one of the following events: (i) the acquisition of ownership, holding
      or power to vote 50% or more of the Company’s voting stock, (ii) the acquisition
      of the ability to control the election of a majority of the Company’s directors,
      (iii) the acquisition of a controlling influence over the management or policies
      of the Company by any person or by persons acting as a “group” (within the
      meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during
      any period of two consecutive years, individuals (the “Continuing Directors”)
      who at the beginning of such period constitute the Board of Directors of the
      Company (the “Existing Board”) cease for any reason to constitute at least one
      half thereof, provided that any individual whose election or nomination for
      election as a member of the Existing Board was approved by a vote of at least
      two-thirds of the Continuing Directors then in office shall be considered a
      Continuing Director. For purposes of this paragraph only, the term “person”
refers to an individual or a corporation, partnership, trust, association,
      joint
      venture, pool, syndicate, sole proprietorship, unincorporated organization
      or
      any other form of entity not specifically listed herein.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) “Code”
      shall
      mean the Internal Revenue Code of 1986, as amended from time to time, and as
      interpreted through applicable rulings and regulations in effect from time
      to
      time.

    

    (d) “Code
      §280G Maximum”
      shall
      mean the product of 2.99 and the Executive’s “base amount” as defined in Code
§280G(b)(3).

    

    (e) “Company”
shall
      mean Newtek Business Services, Inc., and any successor to its
      interest.

    

    (f) “Common
      Stock”
      shall
      mean common stock of the Company.

    

    (g) “Effective
      Date”
      shall
      mean the date of execution referenced in the Preamble of this
      Agreement.

    

    (h) “Executive”
      shall
      mean Jeffrey Rubin.

    

    (i) “Good
      Reason”
      shall
      mean any of the following events, which has not been consented to in advance
      by
      the Executive in writing: (i) the requirement that the Executive move his
      personal residence, or perform his principal executive functions, more than
      fifty (50) miles from his primary office as of the Effective Date; (ii) a
      material reduction in the Executive’s base compensation as the same may be
      increased from time to time; (iii) the failure by the Company to continue to
      provide the Executive with compensation and benefits provided for on the
      Effective Date, as the same may be increased from time to time, or with benefits
      substantially similar to those provided to him under any of the Executive
      benefit plans in which the Executive now or hereafter becomes a participant,
      or
      the taking of any action by the Company which would directly or indirectly
      reduce any of such benefits or deprive the Executive of any material fringe
      benefit enjoyed by him; (iv) the assignment to the Executive of duties and
      responsibilities materially different from those associated with his position
      on
      the Effective Date; (v) a failure to elect or reelect the Executive to the
      Board
      of Directors of the Company; (vi) a material diminution or reduction in the
      Executive’s responsibilities or authority (including reporting responsibilities)
      in connection with his employment with the Company.

    

    (j) “Just
      Cause”
      shall
      mean the Executive’s willful misconduct, breach of fiduciary duty involving
      personal profit, intentional failure to perform stated duties, conviction for
      a
      felony, or material breach of any provision of this Agreement. No act, or
      failure to act, on the Executive’s part shall be considered “willful” unless he
      has acted, or failed to act, with an absence of good faith and without a
      reasonable belief that his action or failure to act was in the best interests
      of
      the Company.

    

    (k) “Protected
      Period”
      shall
      mean the period that begins on the date six months before a Change in Control
      and ends on the earlier of six months following the Change in Control or the
      expiration date of this Agreement. 

    

    (l) “Trigger
      Event”
      shall
      mean (i) the Executive’s voluntary termination of employment either for any
      reason within the 30-day period beginning on the date of a Change in Control,
      or
      within 90 days of an event that both occurs during the Protected Period and
      constitutes Good Reason, or (ii) the termination by the Company or its
      successor(s) in interest, of the Executive’s employment for any reason other
      than Just Cause during the Protected Period.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2. Employment.
      The
      Executive is employed as President of the Company. The Executive shall render
      such administrative and management services for the Company and its subsidiaries
      as set forth in the attached Position Description and at the request of the
      Board as are currently rendered and as are customarily performed by persons
      situated in a similar executive capacity and consistent with the duties of
      the
      President as set forth in the bylaws of the Company. The Executive shall also
      promote, by entertainment or otherwise, as and to the extent permitted by law,
      the business of the Company and its subsidiaries. The Executive’s other duties
      shall be such as the Company's Chief Executive Officer may from time to time
      reasonably direct, including normal duties as an officer of the
      Company.

    

    3. Base
      Compensation.
      The
      Company agrees to pay the Executive during the term of this Agreement a salary
      at the rate of $285,000 per annum, payable in cash not less frequently than
      monthly. Additionally, the Board shall review, not less often than annually,
      the
      rate of the Executive’s salary and may decide to further increase his
      salary.

    

    4. Cash
      Bonuses; Incentive Compensation.

    

    (a) The
      Board
      shall determine the Executive’s right to receive incentive compensation in the
      form of cash bonuses and other awards. No other compensation provided for in
      this Agreement shall be deemed a substitute for such incentive compensation.
      Cash bonuses shall be awarded pursuant to the terms of the Company’s Annual Cash
      Bonus Plan if one has been adopted by the Board and if not, then by action
      of
      the Board.

    

    (b) Incentive
      bonus: in addition to all other compensation payable hereunder, the Executive
      shall be entitled to participate in consideration for a cash bonus out of a
      pool
      to be established for this purpose by the Board. The amount of the Executive’s
      bonus participation shall be fixed by the Compensation Committee following
      consultation with the Chief Executive Officer of the Board if it finds the
      Executive’s performance to have been a major contributing factor to the success
      of the Company.

    

    5. Other
      Benefits.

    

    (a) Participation
      in Retirement, Medical and Other Plans.
      The
      Executive shall participate in any plan that the Company maintains for the
      benefit of its employees if the plan relates to (i) pension, profit-sharing,
      or
      other retirement benefits, (ii) medical insurance or the reimbursement of
      medical or dependent care expenses, or (iii) other group benefits, including
      disability and life insurance plans. 

    

    (b) Executive
      Benefits; Expenses.
      The
      Executive shall participate in any fringe benefits which are or may become
      available to the Company’s senior management Executives, including for example
      incentive compensation plans, club memberships, and any other benefits which
      are
      commensurate with the responsibilities and functions to be performed by the
      Executive under this Agreement. The Executive shall be reimbursed for all
      reasonable out-of-pocket business expenses which he shall incur in connection
      with his services under this Agreement upon substantiation of such expenses
      in
      accordance with the policies of the Company.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) Split-Dollar
      Life Insurance.
      The
      Company shall provide the Executive with split-dollar life insurance coverage.
      The coverage shall be provided under a separate Split-Dollar Life Insurance
      Agreement (the "Split-Dollar Agreement") entered into between the Executive
      and
      the Company, the terms of which shall include the following:

    

    (i) Amount
      of Insurance.
      The
      Company shall obtain an insurance policy (the "Policy") in the face amount
      of $2
      million on the life of the Executive.

    

    (ii) Ownership.
      The
      Company shall be the sole owner of the Policy.

    

    (iii) Payment
      of Premiums.
      The
      Company shall pay all premiums for each Policy year.

    

    (iv) Death
      Benefits.
      Upon
      the death of the Executive, the death benefit payable under the Policy shall
      be
      paid to the Company in an amount equal to the lesser of (i) the aggregate
      premiums paid by the Company and (ii) the cash surrender value of the Policy.
      The balance shall be paid to the Executive's designated beneficiary or, if
      none
      is validly designated, his estate.

    

    (v) Dividends.
      All
      dividends on the Policy shall be used to purchase additions to insurance issued
      by the insurer.

    

    (vi) Termination
      of Employment.
      Upon
      termination of Executive’s employment for any reason, the Executive may elect,
      by written notice to the Company within 30 days of such termination, to purchase
      the Policy and assume all premium obligations there under from the Company
      by
      paying the lesser of (i) the total premiums paid by the Company or (ii) the
      cash
      surrender value of the Policy.

    

    6. Term.
      The
      Company hereby employs the Executive, and the Executive hereby accepts such
      employment under this Agreement, for the period commencing on the Effective
      Date
      and ending on December 31, 2007 or such earlier date as is determined in
      accordance with Section 11 (the "Term").

     

    7. Loyalty;
      Noncompetition.

    

    (a) During
      the period of his employment hereunder and except for illnesses, reasonable
      vacation periods, and reasonable leaves of absence, the Executive shall devote
      substantially all his full business time, attention, skill, and efforts to
      the
      faithful performance of his duties hereunder; provided, however, from time
      to
      time, Executive may serve on the boards of directors of, and hold any other
      offices or positions in, companies or organizations, at the request of the
      Company or which will not present, in the opinion of the Board, any conflict
      of
      interest with the Company or any of its subsidiaries or affiliates, nor
      unfavorably affect the performance of Executive’s duties pursuant to this
      Agreement, nor violate any applicable statute or regulation. “Full business
      time” is hereby defined as that amount of time usually devoted to like companies
      by similarly situated executive officers. During the term of his employment
      under this Agreement, the Executive shall not engage in any business or activity
      contrary to the business affairs or interests of the Company.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Nothing
      contained in this Paragraph 7 shall be deemed to prevent or limit the
      Executive’s right to invest in the capital stock or other securities of any
      business dissimilar from that of the Company or, solely as a passive or minority
      investor, in any business.

    

    8. Standards.
      The
      Executive shall perform his duties under this Agreement in accordance with
      such
      reasonable standards as the Board may establish from time to time. The Company
      will provide Executive with the working facilities and staff customary for
      similar executives and necessary for him to perform his duties. 

    

    9. Vacation
      and Sick Leave.
      At such
      reasonable times as the Board shall in its discretion permit, the Executive
      shall be entitled, without loss of pay, to absent himself voluntarily from
      the
      performance of his employment under this Agreement, all such voluntary absences
      to count as vacation time; provided that:

    

    (a) The
      Executive shall be entitled to an annual vacation in accordance with the
      policies that the Board periodically establishes for senior management
      Executives of the Company.

    

    (b) The
      Executive shall not receive any additional compensation from the Company on
      account of his failure to take a vacation, and the Executive shall not
      accumulate unused vacation from one fiscal year to the next, except in either
      case to the extent authorized by the Board.

    

    (c) In
      addition to the aforesaid paid vacations, the Executive shall be entitled
      without loss of pay, to absent himself voluntarily from the performance of
      his
      employment with the Company for such additional periods of time and for such
      valid and legitimate reasons as the Board may in its discretion determine.
      Further, the Board may grant to the Executive a leave or leaves of absence,
      with
      or without pay, at such time or times and upon such terms and conditions as
      such
      Board in its discretion may determine.

    

    (d) In
      addition, the Executive shall be entitled to an annual sick leave benefit as
      established by the Board.

    

    10. Indemnification.
      The
      Company shall indemnify and hold harmless Executive from any and all loss,
      expense, or liability that he may incur due to his services for the Company
      as
      an officer and or director (including any liability he may ever incur under
      Code
§ 4999, or a successor, as the result of severance benefits he collects
      pursuant to Sections 11 or 13) during the full Term of this Agreement and
      shall at all times maintain adequate insurance for such purposes.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11. Termination
      and Termination Pay.
      Subject
      to Section 13 hereof, the Executive’s employment hereunder may be terminated
      under the following circumstances:

    

    (a) Just
      Cause.
      The
      Board may, based on a good faith determination and only after giving the
      Executive written notice and a reasonable opportunity to cure, immediately
      terminate the Executive’s employment at any time, for Just Cause. The Executive
      shall have no right to receive compensation or other benefits for any period
      after termination for Just Cause.

    

    (b) Without
      Just Cause.
      The
      Board may, by written notice to the Executive, immediately terminate his
      employment for a reason other than Just Cause, in which case the Executive
      shall
      be paid an amount equal to the balance of compensation provided for by Sections
      3 and 4 hereof for the balance of the Term.

    

    (c) Resignation
      by Executive with Good Reason.
      The
      Executive may at any time immediately terminate employment for Good Reason,
      in
      which case the Executive shall be entitled to receive the following compensation
      and benefits: (i) the salary and cash bonus provided pursuant to Sections 3
      and
      4 hereof, up to the expiration date (the “Expiration Date”) of the Term,
      including any renewal term, of this Agreement, and (ii) the cost to the
      Executive of obtaining all health, life, disability and other benefits which
      the
      Executive would have been eligible to participate in through the Expiration
      Date
      based upon the benefit levels substantially equal to those that the Company
      provided for the Executive at the date of termination of employment. Said
      payment shall be made in a lump sum payment within 10 days after his termination
      of employment.

    

    (d) Resignation
      by Executive without Good Reason.
      The
      Executive may voluntarily terminate employment with the Company during the
      Term
      of this Agreement, upon at least 60 days’ prior written notice to the Board of
      Directors, in which case the Executive shall receive only his compensation,
      vested rights, and Executive benefits up to the date of his termination of
      employment.

    

    (e) Retirement,
      Death, or Disability.
      If the
      Executive’s employment terminates during the Term of this Agreement due to his
      death, a disability that results in his collection of any long-term disability
      benefits, or retirement at or after age 62, the Executive (or the beneficiaries
      of his estate) shall be entitled to receive the compensation and benefits that
      the Executive would otherwise have become entitled to receive pursuant to
      subsection (d) hereof upon a resignation without Good Reason.

    

    (f) Termination
      or Non-Renewal Payment. If
      the
      Executive’s employment hereunder is terminated pursuant to subsections (b),
      without Just Cause, or (c), with Good Reason, or if the Term of this Agreement
      is not extended for at least one additional year, the Executive shall be
      entitled to compensation and benefits equal to six (6) months compensation
      and
      benefits under Sections 3 and 4 hereof, provided, however, that the Company
      shall have the option of paying such compensation over a twelve (12) month
      period.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12. No
      Mitigation.
      The
      Executive shall not be required to mitigate the amount of any payment provided
      for in this Agreement by seeking other employment or otherwise, and no such
      payment shall be offset or reduced by the amount of any compensation or benefits
      provided to the Executive in any subsequent employment.

     

    13. Change
      in Control.
      Notwithstanding any provision herein to the contrary, if a Trigger Event occurs
      during the Protected Period, the Executive shall be paid an amount equal to
      the
      Code § 280G Maximum. Said sum shall be paid in one lump sum within ten (10)
      days of such termination.

     

    14. Reimbursement
      for Litigation Expenses.

    

    In
      the
      event
      that any dispute arises between the Executive and the Company as to the terms
      or
      interpretation of this Agreement, whether instituted by formal legal proceedings
      or otherwise, including any action that the Executive takes to enforce the
      terms
      of this Agreement or to defend against any action taken by the Company, the
      Executive shall be reimbursed for all costs and expenses, including reasonable
      attorneys’ fees, arising from such dispute, proceedings or actions, provided
      that the Executive shall obtain a final judgment by a court of competent
      jurisdiction in favor of the Executive. Such reimbursement shall be paid within
      ten (10) days of Executive’s furnishing to the Company written evidence, which
      may be in the form, among other things, of a cancelled check or receipt, of
      any
      costs or expenses incurred by the Executive. 

     

    15. Successors
      and Assigns.

    

    (a) This
      Agreement shall inure to the benefit of and be binding upon any corporate or
      other successor of the Company which shall acquire, directly or indirectly,
      by
      merger, consolidation, purchase or otherwise, all or substantially all of the
      assets or stock of the Company.

    

    (b) Since
      the
      Company is contracting for the unique and personal skills of the Executive,
      the
      Executive shall be precluded from assigning or delegating his rights or duties
      hereunder without first obtaining the written consent of the
      Company.

    

    16. Corporate
      Authority.
      Company
      represents and warrants that the execution and delivery of this Agreement by
      it
      has been duly and properly authorized by the Board and that when so executed
      and
      delivered this Agreement shall constitute the lawful and binding obligation
      of
      the Company.

    

    17. Amendments.
      No
      amendments or additions to this Agreement shall be binding unless made in
      writing and signed by all of the parties, except as herein otherwise
      specifically provided.

    

    18. Applicable
      Law.
      Except
      to the extent preempted by Federal law, the laws of the State of New York shall
      govern this Agreement in all respects, whether as to its validity, construction,
      capacity, performance or otherwise. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    19. Severability.
      The
      provisions of this Agreement shall be deemed severable and the invalidity or
      unenforceability of any provision shall not affect the validity or
      enforceability of the other provisions hereof.

    

    20. Entire
      Agreement.
      This
      Agreement, together with any understanding or modifications thereof as agreed
      to
      in writing by the parties, shall constitute the entire agreement between the
      parties hereto with respect to the matters addressed and shall supersede all
      previous agreements with respect to such matters.

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on the day and year
      first hereinabove written.

     

    
      	
              Witnessed
                by:

            	
              NEWTEK
                BUSINESS SERVICES, INC.

            
	 	 
	
              /s/
                Myria
                Morris                           
                

            	
              By
                /s/ Barry
                Sloane                               
                

            
	 	
              Its:
                Chairman & Chief Executive Officer

            
	 	 
	 	 
	
              Witnessed
                by:

            	
              JEFFREY
                G. RUBIN

            
	 	 
	
              
                /s/
                  Myria
                  Morris                           
                  

              

            	
              By:
                /s/ Jeffrey G.
                RubinExhibit
      10.3

    NEWTEK
      BUSINESS SERVICES, INC.

    

    
      
        

      

    

    

    Employment
      Agreement with

    

    Craig
      J. Brunet

    

    
      
 

    PREAMBLE.
      This
      Agreement entered into this 13th day of July 2006, by and between Newtek
      Business Services, Inc. (the “Company”) and Craig J. Brunet (the “Executive”),
      effective immediately.

    

    WHEREAS,
      the
      Executive is to be employed by the Company as an Executive Vice President;
      and

    

    WHEREAS,
      the
      parties desire by this writing to set forth the employment relationship of
      the
      Company and the Executive.

    

    NOW,
      THEREFORE,
      it is
AGREED
      as
      follows:

    

    1. Defined
      Terms

    

    When
      used
      anywhere in the Agreement, the following terms shall have the meaning set forth
      herein.

    

    (a) “Board”
      shall
      mean the Board of Directors of the Company.

    

    (b) “Change
      in Control”
      shall
      mean any one of the following events: (i) the acquisition of ownership, holding
      or power to vote 50% or more of the Company’s voting stock, (ii) the acquisition
      of the ability to control the election of a majority of the Company’s directors,
      (iii) the acquisition of a controlling influence over the management or policies
      of the Company by any person or by persons acting as a “group” (within the
      meaning of Section 13(d) of the Securities Exchange Act of 1934), or (iv) during
      any period of two consecutive years, individuals (the “Continuing Directors”)
      who at the beginning of such period constitute the Board of Directors of the
      Company (the “Existing Board”) cease for any reason to constitute at least one
      half thereof, provided that any individual whose election or nomination for
      election as a member of the Existing Board was approved by a vote of at least
      two-thirds of the Continuing Directors then in office shall be considered a
      Continuing Director. For purposes of this paragraph only, the term “person”
refers to an individual or a corporation, partnership, trust, association,
      joint
      venture, pool, syndicate, sole proprietorship, unincorporated organization
      or
      any other form of entity not specifically listed herein.

    

    (c) “Code”
      shall
      mean the Internal Revenue Code of 1986, as amended from time to time, and as
      interpreted through applicable rulings and regulations in effect from time
      to
      time.

    

    (d) “Code
      §280G Maximum”
      shall
      mean the product of 2.99 and the Executive’s “base amount” as defined in Code
§280G(b)(3).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) “Company”
shall
      mean Newtek Business Services, Inc., and any successor to its
      interest.

    

    (f) “Effective
      Date”
      shall
      mean the date of execution referenced in the Preamble of this
      Agreement.

    

    (g) “Executive”
      shall
      mean Craig J. Brunet.

    

    (h) “Good
      Reason”
      shall
      mean any of the following events, which has not been consented to in advance
      by
      the Executive in writing: (2) the requirement that the Executive perform his
      principal executive functions on a permanent and regular basis more than seventy
      five (75) miles from his primary office (New York, NY) as of the Effective
      Date;
      (2) a material reduction in the Executive’s base compensation as the same may be
      increased from time to time; (3) the failure by the Company to continue to
      provide the Executive with compensation and benefits provided for on the
      Effective Date, as the same may be increased from time to time, or with benefits
      substantially similar to those provided to him under any of the Executive
      benefit plans in which the Executive now or hereafter becomes a participant,
      or
      the taking of any action by the Company which would directly or indirectly
      reduce any of such benefits or deprive the Executive of any material fringe
      benefit enjoyed by him; (4) the assignment to the Executive of duties and
      responsibilities materially different from those associated with his position
      on
      the Effective Date; and (5) a material diminution or reduction in the
      Executive’s responsibilities or authority in connection with his employment with
      the Company, except for the well-being of the Company in the judgment of the
      Board.

    

    (i) “Just
      Cause”
      shall
      mean the Executive’s (1) willful misconduct, (2) breach of fiduciary duty, (3)
      intentional failure to perform stated duties, conviction of a felony, (4)
      conviction of a misdemeanor punishable by imprisonment of not less than 6
      months, (5) performance of duties in a negligent or reckless manner, (6)
      material breach of any provision of this Agreement.

    

    2. Employment.
      The
      Executive is employed as an Executive Vice President of Strategic Planning
      and
      Marketing of the Company. The Executive shall render such management services
      for the Company and its affiliates as are customarily performed by persons
      situated in a similar executive capacity and which are consistent with the
      duties of a senior executive manager. The Executive shall report to the Chief
      Executive Officer. The Executive shall, with respect to all matters to which
      he
      devotes attention, meet with and communicate regularly with other senior
      management of the Company and its subsidiaries. The Executive shall also
      promote, by entertainment or otherwise, as and to the extent permitted by law,
      the business of the Company and its subsidiaries. The Executive’s other duties
      shall be such as the Company's Chief Executive Officer may from time to time
      reasonably direct, including normal duties as an officer of the Company,
      participation on an executive management committee of the Company for so long
      as
      so constituted by the Chief Executive Officer, and election and/or appointment
      as a board member or officer of the Company’s current and future principal
      business subsidiaries.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. Base
      Compensation.
      The
      Company agrees to pay the Executive during the term of this Agreement a salary
      at the rate of $240,000 per annum, payable in cash not less frequently than
      monthly. Additionally, the Board shall review, not less often than annually,
      the
      rate of the Executive’s salary and may decide to further increase his
      salary.

    

    4. Benefits.

    

    (a) Participation
      in Retirement, Medical and Other Plans.
      The
      Executive shall participate in any plan that the Company maintains for the
      benefit of its employees if the plan relates to (i) pension, profit-sharing,
      or
      other retirement benefits, (ii) medical insurance or the reimbursement of
      medical or dependent care expenses, or (iii) other group benefits, including
      disability and life insurance plans. 

    

    (b) Executive
      Benefits; Expenses.
      The
      Executive shall participate in any fringe benefits which are or may become
      available to the Company’s senior management Executives, including for example
      incentive compensation plans, club memberships, and any other benefits which
      are
      commensurate with the responsibilities and functions to be performed by the
      Executive under this Agreement. The Executive shall be reimbursed for all
      reasonable out-of-pocket business expenses which he shall incur in connection
      with his services under this Agreement upon substantiation of such expenses
      in
      accordance with the policies of the Company, including the Company’s Employee
      Handbook and Code of Conduct. 

    

    5. Term.
      The
      Company hereby employs the Executive, and the Executive hereby accepts such
      employment under this Agreement, for the period commencing on the Effective
      Date
      and ending on December 31, 2007 or such earlier date as is determined in
      accordance with Section 10 (the “Term”).

    

    6. Loyalty;
      Non-competition.

    

    (a) During
      the period of his employment hereunder and except for illnesses, reasonable
      vacation periods, and reasonable leaves of absence, the Executive shall devote
      substantially all his full business time, attention, skill, and efforts to
      the
      faithful performance of his duties hereunder; provided, however, from time
      to
      time, Executive may serve on the boards of directors of, and hold any other
      offices or positions in, companies or organizations, at the request of the
      Company or which will not present, in the opinion of the Board, any conflict
      of
      interest with the Company or any of its subsidiaries or affiliates, nor
      unfavorably affect the performance of Executive’s duties pursuant to this
      Agreement, nor violate any applicable statute, regulation or the CPR. “Full
      business time” is hereby defined as that amount of time usually devoted to like
      companies by similarly situated executive officers. During the term of his
      employment under this Agreement, the Executive shall not engage in any business
      or activity contrary to the business affairs or interests of the Company, or
      to
      the pertinent laws, rules, and regulations of the United States of America,
      and
      the State of New York.

    

    (b) Nothing
      contained in this Section 6 shall be deemed to prevent or limit the Executive’s
      right to invest in the capital stock or other securities of any business
      dissimilar from that of the Company or, solely as a passive or minority
      investor, in any business.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7. Standards.
      The
      Executive shall perform his duties under this Agreement in accordance with
      (a)
      such reasonable standards as the Board may establish from time to time, (b)
      the
      Company’s Code of Conduct, (c) the Company’s Employee Handbook, and (d) the
      laws, rules and regulations of the United States of America and the State of
      New
      York. The Company will provide Executive with the working facilities and staff
      customary for similar executives and necessary for him to perform his duties.
      The Executive shall at all times remain a member in good standing of the bar
      of
      the State of New York. All determinations of reasonableness to be made by the
      Board under this Agreement are to be made in the reasonable and good faith
      judgment of the Board.

    

    8. Vacation
      and Sick Leave.
      At such
      reasonable times as the Board shall in its discretion permit, the Executive
      shall be entitled, without loss of pay, to absent himself voluntarily from
      the
      performance of his employment under this Agreement, all such voluntary absences
      to count as vacation time; provided that:

    

    (a) The
      Executive shall be entitled to an annual vacation in accordance with the
      policies that the Board periodically establishes for senior management
      Executives of the Company, but in no event less than three weeks per
      annum.

    

    (b) The
      Executive shall not receive any additional compensation from the Company on
      account of his failure to take a vacation, and the Executive shall not
      accumulate unused vacation from one fiscal year to the next, except in either
      case to the extent authorized by the Chief Executive Officer.

    

    (c) In
      addition to the aforesaid paid vacations, the Executive shall be entitled
      without loss of pay, to absent himself voluntarily from the performance of
      his
      employment with the Company for such additional periods of time and for such
      valid and legitimate reasons as the Board may in its discretion determine.
      Further, the Board may grant to the Executive a leave or leaves of absence,
      with
      or without pay, at such time or times and upon such terms and conditions as
      such
      Board in its discretion may determine.

    

    (d) In
      addition, the Executive shall be entitled to an annual sick leave benefit as
      established by the Board.

    

    9. Indemnification.
      The
      Company shall indemnify and hold harmless Executive from any and all loss,
      expense, or liability that he may incur due to his services for the Company
      as
      an officer and or director (including any liability he may ever incur under
      Code
§ 4999, or a successor, as the result of severance benefits he may collect
      pursuant to Sections 10 or 11) during the full Term of this Agreement and
      shall at all times maintain adequate insurance for such purposes. However,
      the
      Company will not indemnify or hold harmless Executive (a) from any and all
      loss,
      expense, or liability that he may incur due to Executive’s intentional
      misconduct, recklessness, dereliction of duty, gross negligence, or negligence,
      (b) arising from or related to Executive’s employment or representations as an
      attorney prior to his commencement of employment with Company or (c) arising
      from or related to conflicts of interest between Company and clients that
      Executive represented in his prior employment or representations as an attorney
      prior to Executive’s commencement of employment with Company. This
      indemnification shall be in addition to the obligations assumed by the Company
      to provide indemnification to Executive owed to him by Harvest Strategies,
      LLC
      in his role as officer and manager of that company prior to the acquisition
      of
      the assets and liabilities of Harvest Strategies, LLC.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10. Termination
      and Termination Pay.
      Subject
      to Section 11 hereof, the Executive’s employment hereunder may be terminated
      under the following circumstances:

    

    (a) Just
      Cause.
      The
      Board, based on a good faith determination and upon written notice, can
      immediately terminate at any time for just cause the Executive’s employment. The
      Executive shall have no right to receive compensation or other benefits for
      any
      period after termination for Just Cause. 

    

    (b) Without
      Just Cause.
      The
      Board, upon written notice, can immediately terminate Executive’s employment for
      a reason other than Just Cause, in which case the Executive shall be paid an
      amount equal to the balance of compensation provided for by Section 3 hereof
      for
      the balance of the Term.

    

    (c) Resignation
      by Executive with Good Reason.
      The
      Executive may at any time upon written notice to the Company, immediately
      terminate employment for Good Reason, in which case the Executive shall be
      entitled to receive the following compensation and benefits: (1) the salary
      provided pursuant to Section 3 of this Agreement, up to the expiration date
      (the
“Expiration Date”) of the Term, including any renewal term, of this Agreement,
      and (2) the cost to the Executive of obtaining all health, life, disability
      and
      other benefits which the Executive would have been eligible to participate
      in
      through the Expiration Date based upon the benefit levels substantially equal
      to
      those that the Company provided for the Executive at the date of termination
      of
      employment. Said payment shall be made in monthly payments but shall cease
      once
      the Executive accepts new full time employment. 

    

    (d) Resignation
      by Executive without Good Reason.
      The
      Executive may voluntarily terminate employment with the Company during the
      Term
      of this Agreement, upon at least 60 days’ prior written notice to the Board of
      Directors, in which case the Executive shall receive only his compensation,
      vested rights, and Executive benefits up to the date of his resignation without
      Good Reason.

    

    (e) Retirement,
      Death, or Disability.
      If the
      Executive’s employment terminates during the Term of this Agreement due to his
      death, a disability that results in his collection of any long-term disability
      benefits, or retirement at or after age 62, the Executive (or the beneficiaries
      of his estate) shall be entitled to receive the compensation and benefits that
      the Executive would otherwise have become entitled to receive pursuant to
      subsection (d) hereof upon a termination without Good Reason.

    

    (f) Termination
      Related to Change in Control. In
      the
      event this Agreement is terminated as described in subsections (1) or (2) below,
      Executive shall be entitled to the greater of (x) the balance of the
      compensation due him under this Agreement for the full Term or (y) base
      compensation for a six (6) month period:

    

    (1)
       termination
      by the Company within the period beginning three (3) months preceding a Change
      in Control and ending six (6) months following a Change in Control for any
      reason; or 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (2) termination
      by the Executive within the 6 month period following a Change in Control for
      Good Reason.

    

    11. No
      Mitigation.
      The
      Executive shall not be required to mitigate the amount of any payment provided
      for in this Agreement by seeking other employment or otherwise, and no such
      payment shall be offset or reduced by the amount of any compensation or benefits
      provided to the Executive in any subsequent employment.

    

    12. Trade
      Secrets; Confidences and Secrets.
      During
      the course of Executive’s employment, Executive will come into contact with the
      Company’s confidential business information, confidential proprietary
      information, and trade secrets (collectively, the “Trade Secrets”). During the
      Term of this Agreement and thereafter Executive will maintain the Trade Secrets
      in confidence and will take no action that will in any way lessen or diminish
      the Trade Secrets’ confidential and proprietary nature. Executive will in all
      events protect and preserve the confidential and proprietary nature of the
      Trade
      Secrets, whether during the Term of this Agreement or thereafter. Whether during
      or after the Term of this Agreement or thereafter, Executive will upon
      reasonable notice account for any and all Trade Secrets in his possession or
      control, and will, upon reasonable request, (a) turn-over any and all such
      Trade
      Secrets in Executive’s possession or control, (b) provide a sworn statement of
      such Trade Secrets in Executive’s possession or control, (c) provide the Company
      such access to computers, web-sites, electronic mail boxes and web pages that
      Executive may possess and/or control in order for the Company to ascertain
      the
      extent to which Executive is in possession of the Trade Secrets, and/or (4)
      provide the Company with a sworn statement that Executive is not in possession
      or control of such Trade Secrets.

    

    13. Successors
      and Assigns.

    

    (a) This
      Agreement shall inure to the benefit of and be binding upon any corporate or
      other successor of the Company which shall acquire, directly or indirectly,
      by
      merger, consolidation, purchase or otherwise, all or substantially all of the
      assets or stock of the Company.

    

    (b) Since
      the
      Company is contracting for the unique and personal skills of the Executive,
      the
      Executive shall be precluded from assigning or delegating his rights or duties
      hereunder without first obtaining the written consent of the
      Company.

    

    14. Corporate
      Authority.
      Company
      represents and warrants that the execution and delivery of this Agreement by
      it
      has been duly and properly authorized by the Board and that when so executed
      and
      delivered this Agreement shall constitute the lawful and binding obligation
      of
      the Company.

    

    15. Amendments.
      No
      amendments or additions to this Agreement shall be binding unless made in
      writing and signed by all of the parties, except as herein otherwise
      specifically provided.

    

    16. Applicable
      Law.
      The
      validity, interpretation, and performance of this Agreement shall be governed
      by
      and construed in accordance with the substantive law of the State of New York,
      without giving effect to conflict of law principles. Any action, lawsuit,
      demand, claim or counterclaim shall be resolved by a judge alone, and both
      parties hereby expressly waive and forever disclaim the right to a trial before
      a civil jury. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    17. Severability.
      The
      provisions of this Agreement shall be deemed severable and the invalidity or
      unenforceability of any provision shall not affect the validity or
      enforceability of the other provisions hereof.

    

    18. Entire
      Agreement.
      This
      Agreement, together with any understanding or modifications thereof as agreed
      to
      in writing by the parties, shall constitute the entire agreement between the
      parties hereto with respect to the matters addressed and shall supersede all
      previous agreements with respect to such matters.

    

    19. Counterparts.
      This
      Agreement may be executed by either of the parties hereto in counterparts,
      each
      of which shall be deemed to be an original, but all such counterparts shall
      together constitute one and the same instrument.

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement on the day and year first hereinabove
      written.

    

     

    

    
      	Witnessed
              by:	NEWTEK
              BUSINESS
              SERVICES, INC.
	 	 
	
              /s/
                Jeffrey G.
                Rubin                       
                

            	
              By
                /s/ Barry
                Sloane                              
                

            
	 	
              Its:
                Chairman, CEO

            
	
              Witnessed
                by:

            	 
	 	 
	
              /s/
                Michael J.
                Holden                     
                

            	
              /s/
                Craig J.
                Brunet                                 
                

            
	 	
              Craig
                J. Brunet

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