Document:

Employment Agmt between APT Acquisition Corp. and Russell J. Crecraft

 EXHIBIT 10.108 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT dated as of the 8th day of November, 2005 (the “Agreement”), is entered into by and between Russell Crecraft, an
individual (the “Employee”) and APT Acquisition Corp., a Delaware corporation (“the Corporation”). 
  
 RECITALS 
  
 WHEREAS, Advanced Power Technology, Inc., a Delaware corporation (“APT”), the Corporation, and Microsemi Corporation, a Delaware corporation
(“Parent”) anticipate entering into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, the Corporation will merge with and
into APT (the “Merger”) and the resulting entity (“Surviving Corporation”) will become a wholly-owned subsidiary of Parent; and 
  
 WHEREAS, as of the date hereof, the Employee serves as the Chief Operating Officer of APT; and 
  
 WHEREAS, the Corporation wishes to employ the Employee, and the Employee
wishes to be employed by the Corporation, on the terms and conditions contained in this Agreement effective upon the consummation of the Merger; and 
  
 WHEREAS, the Corporation is only willing to enter into this Agreement on the basis that the Employee observe the restrictive covenants set out herein
which have been negotiated in good faith and which the Employee acknowledges as being reasonable given the nature of the Employee’s expected position with the Corporation contemplated by this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements in
this Agreement, receipt and sufficiency of which are hereby acknowledged, it is agreed by and between the Employee and the Corporation as follows: 
  
 1. EMPLOYMENT 
  
 1.1 Position  
  
 Subject to the terms and conditions of Section 6.1, during the Term of Employment (as defined in Article 2), the Corporation shall employ the
Employee, and the Employee shall be employed by the Corporation, as the General Manager of the switching and RF businesses of the Corporation (the “Business”), on the terms and subject to the conditions herein contained. For the first year
of employment with the Corporation, measured from the Effective Time of the Merger, Employee’s primary responsibilities shall be to manage the successful transition and integration of the Corporation’s business and operations with the
business and operations of the Parent. 
  
 1.2
Duties  
  
 During the Term of Employment (as defined
in Article 2), the Employee shall: 
  
 (i) devote the whole of the
Employee’s time, skills, experience and attention to the business of the Corporation, and ensure that the Employee is not at any time engaged in conduct that would interfere with the performance by the Employee of the Employee’s duties
under this Agreement or which would constitute a conflict with the interests of the Corporation. During the Term of Employment, the Employee will not be employed or engaged in any other business without the prior written permission of the
Corporation; and 
  
 (ii) well and faithfully serve the
Corporation and carry out those responsibilities as are necessary to perform the functions associated with the Employee’s position; and 
  

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 (iii) use the Employee’s best efforts while performing Employee’s responsibilities to promote
the success of the business of the Corporation and act at all times in the best interests of the Corporation. 
  
 2. TERM 
  
 Subject to the terms and
conditions of Section 6.1, this Agreement and the Employee’s employment hereunder shall become effective at the Effective Time of the Merger and shall continue until the earliest of the following to occur (the “Term of
Employment”): 
  
 (a) the two (2) year anniversary of
the Effective Date of the Merger, 
  
 (b) mutual agreement between
Corporation and Employee; 
  
 (c) death of Employee; 

 
 (d) the good faith determination of the Corporation that Employee has
become so physically or mentally disabled as to be incapable of satisfactorily performing Employee’s duties hereunder for a period of ninety (90) consecutive days, such determination based upon a certificate as to such physical or mental
disability issued by a licensed physician and/or psychiatrist (as the case may be) employed by the Corporation; or 
  
 (e) any termination pursuant to Article 4. 
  
 Sections 5 and 6 or this Agreement shall survive following the Term of Employment, and Sections 1, 2, 3 and 4 of this Agreement shall be terminated and
have no further force or effect. The Corporation and the Employee understand and agree that, if Employee’s employment shall not have been terminated, Employee shall be an “at-will” employee of the Corporation after the Term of
Employment. 
  
 3. REMUNERATION 
  
 3.1 Compensation  
  
 During the Term of Employment, the Corporation shall pay to the Employee as
compensation for the performance of the Employee’s duties herein a salary at the rate of $169,680 per annum (the “Base Salary”), payable in accordance with the Corporation’s normal payroll procedures and subject to
Section 6.14. The Employee agrees that such salary shall be reviewed annually during the normal course of the Corporation’s focal review process or may be otherwise increased from time to time by the Corporation, and such revised annual
salary shall be referred to hereinafter as the “Base Salary.” 
  
 The Employee will also be eligible to participate in the Corporation’s Incentive Compensation Plan which provides for certain cash incentive compensation upon the achievement of certain individual, unit and Parent-wide performance
goals. The Employee’s individual incentive target under the Incentive Compensation Plan shall be equal to forty percent (40%) of the Base Salary. 
  
 The Employee will also be eligible to participate in the Parent’s other incentive compensation plans for which employees of the Corporation or its
subsidiaries of similar seniority participate. 
  
 3.2 Retention Bonus
Payment  
  
 In connection with your commencement of
employment with the Corporation, you will be eligible to receive a retention bonus payment of $100,000 (the “Retention Bonus) The Retention Bonus will be payable twenty (24) months after the Effective Time of the Merger, subject to the
conditions below. You will be entitled to the Retention Bonus payment only if you are employed by the Corporation on the date specified above for the payment; provided, however, if your employment is terminated by the Corporation other than for
Cause (as defined below) or 

  

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if your termination qualifies as a Resignation for Good Reason (as defined below) you will be entitled to receive the Retention Bonus at the end of the
Corporation’s standard pay period that includes the date of such termination. 
  
 3.3 New Hire Option Grant  
  
 Contingent
upon your execution and delivery of a Lock-up Agreement (as defined in the Merger Agreement), within five (5) business days after the Effective Time of the Merger, the Compensation Committee of the Board of Directors will grant you an option to
purchase 50,000 shares of common stock of the Parent (the “Parent Common Stock”) under the Parent 1987 Stock Plan. The option exercise price will be the closing price of the Parent Common Stock on the Nasdaq National Market on the option
grant date. You will be provided with the standard Parent form of stock option agreement at the time of grant of such option (the “Parent Option”). The Parent Option will vest only during your continuous full-time employment over a
four-year period starting from the grant date, at the rate of 25% of the option at the end of your first year of employment, and 25% at the end of each successive year until the completion of the four-year period. You will be eligible for future
Parent Options in the sole discretion of the Corporation. 
  
 3.4 APT
Options  
  
 On or before the Effective Date of the
Merger, your outstanding APT stock options will accelerate under the existing provisions of the APT stock option plan. These options will be assumed by Parent and adjusted to reflect the terms of the Merger Agreement. Accordingly, following the
Merger, your APT Options will have become options to acquire Parent Common Stock. You will receive a Stock Option Assumption Agreement (to be entered into by you) informing you of the specific adjustments to the number of shares, the exercise price
and the number of shares subject to each vesting installment that have been made to your APT Options to reflect the exchange ratio in effect for the Merger. 
  
 3.5 Benefits  
  
 The Employee shall be entitled to participate in all of the benefit plans for employees of the Corporation in effect from time to time, in accordance with
the terms of the formal plan documents, including medical, dental, group life and disability plans, as of and with effect from the Effective Date. Employee’s years of service with APT prior to the Effective Time shall be counted as years of
service with the Corporation for purposes of eligibility and vesting (other than vesting with respect to any equity-based compensation). The Corporation reserves the right to unilaterally revise the terms of the benefit plans of general application
to all employees or to eliminate any such benefit plan altogether. 
  
 3.6 Vacation  
  
 The Employee will be entitled to four (4) weeks paid vacation per year in accordance with the Corporation’s generally established policies. The Employee shall endeavor to schedule such vacation to be taken so as to not
unreasonably interfere with the demands of the business of the Corporation. 
  
 3.7 Expenses  
  
 The Corporation shall reimburse the Employee for all out-of-pocket expenses and other disbursements actually and properly incurred by the Employee in connection with the Employee’s duties hereunder or otherwise properly incurred by the
Employee for and on behalf of the Corporation, upon presentation of reasonably acceptable evidence of the Employee having incurred such expenses and disbursements. 
  
 4 TERMINATION OF EMPLOYMENT 
  
 4.1 Termination by Corporation for Cause  
  
 The employment of the Employee hereunder may be terminated for Cause at any time by notice in writing from the Corporation
to the Employee, in which event the Employee shall not be entitled to a notice period or compensation in lieu of notice. In such case, the Employee shall not be entitled to any compensation or benefits 

  

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hereunder except for payment of all amounts due and owing to the date of termination, including accrued but unpaid Base Salary, vacation, and unreimbursed
expenses. 
  
 For purposes of this Agreement, “Cause”
shall mean: 
  
 (1) fraud, misappropriation,
embezzlement, or other act of material misconduct against the Corporation, Parent or any of its respective directors, officers, agents or affiliates; 
  
 (2) substantial and willful failure to perform specific and lawful directives of the Parent or Corporation, including but not limited to
policies of general application; 
  
 (3) willful
and knowing violation of any material laws, rules or regulations of any governmental or regulatory body; 
  
 (4) willful and knowing failure to cooperate with any investigation or inquiry, formal or informal, by the Parent, the Corporation or any
governmental or regulatory body; or 
  
 (5)
conviction of, or plea of guilty or nolo contendere to, any felony whatsoever or any misdemeanor that involves moral turpitude. 
  
 4.2 Termination by Corporation without Cause or by Employee for Good Reason  
  
 The employment of the Employee may be terminated by the Corporation without
Cause. Contingent upon the Employee’s signing and delivering to the Corporation and not revoking a full release of all claims, known or unknown, against the Corporation, the Parent, and their respective affiliates, directors, officers and
agents, the Corporation will make payment to the Employee of the following: (i) a one-time lump sum combined salary and bonus payment in an amount equal to the product of $17,723.17 multiplied by the number of months between the date of
termination and the second anniversary of the Effective Date of the Merger, prorated for any partial months, payable to Employee at the end of the Corporation’s standard pay period that includes the date of the termination; (ii) any
accrued but unpaid Base Salary for services rendered to the date of termination, (iii) any accrued but unpaid expenses required to be reimbursed under this Agreement, and (iv) any vacation accrued to the date of termination. Additionally,
in the event of the Employee’s termination by the Corporation without Cause or by the Employee for Good Reason, provided such termination occurs during the Term of Employment, and contingent upon the Employee’s signing and delivering to
the Corporation and not revoking a full release of all claims, known or unknown, against the Corporation, the Parent, and their respective affiliates, directors, officers and agents, the options subject to the then outstanding Equity Awards shall
vest as to that number of shares of common stock that would have become vested assuming Employee continued to perform services under this Agreement for an additional twelve (12) months. Employee shall have until the earlier of: (i) three
(3) months following such termination, or (ii) the expiration date of each such Equity Award, to exercise the portion of each of the Employee’s Equity Awards which are vested as of the date of such termination. In addition, until the
earlier of (a) the twelve (12) month anniversary of Employee’s termination by the Corporation without Cause or by the Employee for Good Reason or (b) the date the Employee secures similar benefits through new employment, the
Corporation shall continue benefits for the Employee and, as applicable, the Employee’s family under the Corporation’s benefit plans in which the Employee participated pursuant to Section 3.5. Except as stated in this
Section 4.2, Employee shall not be entitled to any other compensation or benefits. 
  
 For purposes of this Agreement, “Good Reason” shall mean any of the following to the extent they are undertaken without the Employee’s consent: 
  
 (1) the assignment to the Employee of any duties or level of
responsibilities that results in any diminution or adverse change of the Employee’s position, title, authority, circumstances of employment or scope of responsibilities where such conduct has not been cured after forty-five (45) days
written notice from the Employee; 
  
 (2) a
reduction by the Corporation in the Employee’s Base Salary unless such reduction is part of a Corporation wide reduction in compensation to save costs or a reduction by the Corporation in the Employee’s 

  

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individual incentive target percentage under the Incentive Compensation Plan unless such reduction is consistent with other similarly situated employees at
the Corporation; 
  
 (3) the taking of any action
by the Corporation that would adversely affect the Employee’s participation in, or reduce the Employee’s benefits under, the Corporation’s benefit plans as described in Section 3.5 (excluding equity-based compensation), except to
the extent the benefits of all other employees of the Corporation are similarly reduced, where such conduct has not been cured after forty-five (45) days written notice from the Employee; or 
  
 (4) the Corporation’s relocation of the Employee’s
place of employment beyond a fifty-mile radius from either the location of the Employee’s place of employment as of the Effective Date. 
  
 4.3 Termination by Employee Not for Good Reason  
  
 In the event the Employee terminates employment with the Corporation for any reason other than Good Reason, the Corporation
shall within ten (10) business days of such termination pay to the Employee all amounts due and owing to the Employee as of the date of such termination, including accrued but unpaid Base Salary, vacation, and unreimbursed expenses and the
Employee shall not be entitled to any other compensation or benefits from the Corporation. 
  
 4.4 Fair and Reasonable  
  
 The parties confirm that the provisions contained in this Article 4 are fair and reasonable and the parties agree that upon termination of this Agreement
pursuant to any of the provisions hereof, the Employee shall have no action, cause of action, claim or demand against the Corporation or any other person as a consequence of such termination, so long as the Corporation fulfills its obligations
hereunder. The Employee agrees to accept that payments provided for in Section 4.2 in full satisfaction of any and all claims the Employee has or may have against the Corporation and the Employee agrees to sign and deliver to the Corporation
and not revoke a full release of all claims against the Corporation and its affiliates prior to receipt of payment of said sum. 
  
 5. COVENANTS OF EMPLOYEE 
  
 5.1 Confidentiality  
  
 Except as may be required by applicable law or the rules and regulations of any national securities exchange or national automated quotation system, the
Employee shall not, at any time or under any circumstances during the term of the Employee’s employment with the Corporation and after the termination of the Employee’s employment, except for the benefit of the Corporation in carrying out
the Employee’s duties hereunder, directly or indirectly communicate or disclose to any person any confidential knowledge or information of the Corporation or any of its subsidiaries howsoever acquired (except as set forth below), nor shall the
Employee utilize or make available any such knowledge or information directly or indirectly in connection with any business or activity in which the Employee is or proposes to be involved, or in connection with the transfer or proposed transfer of
any of the Employee’s securities or in connection with the solicitation or acceptance of employment with any person. Employee acknowledges that were Employee to work for a competitor of the Corporation it would be inevitable that Employee would
use or disclose confidential knowledge and information. Knowledge and information subject to this Section 5.1 includes, but is not limited to, formulas, circuits, drawings, designs, mask works, plans, proposals, marketing and sales data,
financial information, cost and pricing information, customer lists, trade secrets, personnel information, policies and procedures, organizational charts, telephone directories, and concepts and ideas related to the past, present, or future business
of the Corporation or any affiliated or predecessor entity (including any of Parent’s subsidiaries, including but not limited to APT) which have not been publicly released by duly authorized representatives of Corporation. The Employee will be
under no obligation of confidentiality with respect to any information that the Employee can show (i) is or becomes available to the general public through no fault of the Employee; (ii) was known to the Employee before disclosure without
obligation of confidentiality; (iii) is independently developed by the Employee; or (iv) is lawfully received from a third party without obligation of confidentiality. 
  
 The terms of this Section 5.1 shall survive the termination of this Agreement. 
  

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 5.2 Intellectual Property Rights  
  
 (1) Subject to Section 5.2(4), any Development made, conceived, learned
or reduced to practice during the course of the Employee’s employment, whether past, present or future, and all trade secret, patent, copyright, mask work and other intellectual property rights world-wide therein or otherwise related thereto
whether known or otherwise learned, are the property of the Corporation, and all of the Employee’s right, title and interest in and to the same are hereby assigned (and shall hereby be assigned when first reduced to practice or first fixed in a
tangible medium, as applicable) to the Corporation, whether or not they are capable of statutory protection and whether or not they are made by the Employee or jointly with other persons. The Employee also agrees to assign all of the Employee’s
right, title and interest in and to any particular Development to a third party, including but not limited to the United States, solely as directed by the Corporation. “Developments” means all discoveries, know-how, inventions, designs,
works of authorship, ideas, methods, uses, business methods, contributions, developments, algorithms, processes, compositions, techniques and any improvements thereof (whether or not patentable or copyrightable), legally recognized proprietary
rights, and any other intellectual property rights (including patents, copyrights, mask works, trademarks, topographies, know-how and trade secrets), and all records and copies of records, relating to the foregoing. The Employee also hereby waives
all moral rights into any copyright assigned hereunder. During the period of the Employee’s employment and for six (6) months after termination of the Employee’s employment with the Corporation, the Employee will promptly disclose to
the Corporation fully and in writing all Developments made, conceived, learned or reduced to practice by the Employee, either alone or jointly with others. In addition, the Employee will promptly disclose to the Corporation all patent applications
filed by the Employee or on the Employee’s behalf within one (1) year after termination of employment. The Employee will maintain accurate records of (including in the form of notes, sketches, drawings and in any other form that may be
required by the Corporation), which records shall be available to and remain the sole property of the Corporation at all times, and will promptly and fully disclose and confirm the assignment in writing to the Corporation (or to a third party
designated by the Corporation) of, all such Developments including all intellectual property rights therein. 
  
 (2) The Employee shall assist the Corporation and execute, verify and deliver such documents and do everything necessary or desirable (including appearing
as a witness) to apply for, obtain, perfect, evidence, sustain or enforce patents, copyrights, mask works, industrial designs or other legal protection including other intellectual property rights for such Developments in all countries including any
continuation, division, re-issue or renewal thereof. The Employee’s obligation to assist the Corporation with respect to such Developments shall continue beyond the termination of Employee’s employment. In the event the Corporation
requires more than nominal assistance from the Employee following Employee’s termination, the Corporation shall reasonably compensate the Employee for Employee’s time. In the event the Corporation is unable for any reason, after reasonable
effort, to secure the Employee’s signature on any document needed in connection with the above-mentioned actions, the Employee hereby irrevocably designates and appoints the Corporation and its duly authorized officers and agents as the
Employee’s agent and attorney in fact, which appointment is coupled with an interest to act for and on the Employee’s behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes
of this Agreement with the same legal force and effect as if executed by the Employee. The Employee hereby waives any and all claims, of any nature whatsoever, which the Employee now or may hereafter have for infringement of any proprietary rights
or intellectual property rights assigned hereunder to the Corporation. 
  
 (3) The Employee acknowledges that all original works of authorship which are made by the Employee (solely or jointly with others) within the scope of the Employee’s employment and which are protectable by copyright are “works
made for hire,” pursuant to United States Copyright Act (17 U.S.C., Section 101). 
  
 (4) Employee further agrees that any patent application filed within a year after termination of Employee’s employment on an invention for which the Employee was partially or totally responsible shall be presumed
to relate to an invention made during the term of the Employee’s employment unless the Employee can provide evidence to the contrary. 
  
 5.3 Non-Competition and Non-Solicitation  
  

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 (1) The Employee shall not (without the prior written consent of the Corporation) while employed by
Corporation and for the applicable Non-Competition and Non-Solicitation Period (as defined below), for any reason, whether directly or indirectly, either alone or in conjunction with any individual, firm, corporation, association or other entity
(except for the Corporation), whether as principal, agent, stockholder or in any other capacity whatsoever carry on, or be engaged in, or have any financial or other interest in or be otherwise commercially involved in any endeavor, activity or
business or which is in whole or in part competitive with any of the businesses carried on by the Corporation within the respective territories in which such businesses are then carried on (except for any equity share investment in a public company
whose shares are listed on a recognized stock exchange where such share investment does not in the aggregate exceed 1% of the issued equity shares of such company). 
  
 (2) The Employee shall not (without the prior written consent of the Corporation) while employed by Corporation and for the
applicable Non-Competition and Non-Solicitation Period (as defined below), for any reason, whether directly or indirectly, either alone or in conjunction with any individual, firm, corporation, association or other entity (except for the
Corporation), whether as a principal, agent, stockholder or in any other capacity whatsoever: 
  
 (a) solicit or attempt to solicit any customer or prospective customer for the purpose of (i) persuading or attempting to persuade
any such customer to cease doing business or to curtail the business which such customer or prospective customer has customarily conducted or contemplating conducting with the Corporation (including any subsidiary, including but not limited to APT,
or any affiliated corporation), whether or not the relationship between the Corporation and such customer or prospective customer was originally established in whole or in part through the efforts of the Employee; or (ii) to solicit the
business of such customer or prospective customer in respect to any products or services which are competitive with the Corporation (including any subsidiary, including but not limited to APT, or any affiliated corporation); or 
  
 (b) solicit or attempt to solicit or assist any individual or
entity to solicit the employment or engagement of or otherwise entice away from the employment of the Corporation (including any subsidiary, including but not limited to APT, or any affiliated corporation) any employee of the Corporation (including
any subsidiary, including but not limited to APT, or any affiliated corporation). 
  
 (3) For the purposes of the non-competition and non-solicitation covenants set forth in this Section 5.3, the Non-Competition and Non-Solicitation Period shall be: 
  
 (a) the period of time from the date of the termination of
the Employee to the second anniversary of the Effective Date of the Merger, if the termination was made by the Corporation without Cause or by the Employee for Good Reason, as described in Section 4.2; or 
  
 (b) a twenty-four (24) month period immediately
following the date of the termination of Employee, if the termination was made by the Corporation with Cause or by the Employee not for Good Reason, as described in Sections 4.1 and 4.3. 
  
 (4) The parties hereto agree that any breach by the Employee of this Section 5.3 shall be deemed to cause the
Corporation irreparable harm which cannot adequately be compensated for in damages and that the Corporation in addition to all other remedies, shall be entitled to injunctive or other equitable relief to restrain such breach. 
  
 (5) For purposes of the non-competition and non-solicitation covenants set
forth in this Section 5.3, Employee acknowledges that Corporation conducts its business throughout the world. Employee agrees that the non-competition and non-solicitation periods and the geographical areas encompassed by such covenants are
necessary and reasonable in order to protect Corporation in the conduct of its business. The parties intend that the foregoing covenant of Employee shall be construed as a series of separate covenants, one for each geographic area specified. Except
for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenants set forth in this Section 5.3. To the extent that any provision of this Section 5.3 shall be deemed illegal or unenforceable by a
court or other tribunal of competent jurisdiction with respect to (i) any geographic area; (ii) any part of the time period covered by such covenant; (iii) any activity or capacity covered by such covenant; or (iv) any other term
or provision of such covenant, such determination shall not affect such covenant with respect to any other geographic area, time period, activity or other term or provision covered by or included in such covenant 
  

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 5.4 Cumulative Rights  
  
 The various rights and remedies of the Corporation hereunder are cumulative
and non-exclusive of one another. The use of or resort to any one such right or remedy shall not preclude or limit the exercise of any other right or remedy by the Corporation. The provisions of this Agreement shall not in any way limit or abridge
the rights of the Corporation in the obligations of the Employee at common law or under statue, including but not limited to the laws of unfair competition, copyright, trade secrets, and trade-mark, all of which shall be in addition to the
Corporation’s rights and the Employee’s obligations under this Agreement. The Employee acknowledges that the Employee is a fiduciary of the Corporation. 
  
 5.5 Return of Property  
  
 Upon any termination of this Agreement or the employment of the Employee: 
  
 (1) the Employee shall at once deliver, or cause to be delivered, to the
Corporation all books, documents, effects, money, securities or other property and materials belonging to the Corporation (or any affiliate of the Corporation), or for which the Corporation (or any affiliate of the Corporation) is liable to others,
which are in the possession, charge, case, control or custody of the Employee, including all confidential materials subject to Section 5.3 and all copies and reproductions thereof in any form whatsoever received by the Employee and delete same
from all retrieval systems and databases used by the Employee; 
  
 (2) the Corporation shall at once deliver, or caused to be delivered to the Employee all property belonging to the Employee which are in the possession, charge, care, control or custody of the Corporation or any of its subsidiaries; and

  
 (3) the Corporation shall at once cause the discharge of any
personal covenants or guarantees of the Employee concerning the Corporation’s business (including that of any subsidiary), and shall fully indemnify and hold harmless the Employee for the Corporation’s failure to do so. 
  
 5.6 Assignment to the Corporation of Covenants for Benefit of APT. 

 
 Employee agrees and consents that all restrictive covenants in Articles 4
through 9 of Employee’s Employment Agreement with APT shall enure to the benefit of the Corporation and shall continue to be binding on Employee during the Term of Employment and continuing thereafter and following Employee’s employment
with the Corporation, and shall only terminate thereafter in accordance with the terms of such restrictions. Nothing in this Agreement is intended to terminate or release Employee from such restrictions. 
  
 6. GENERAL 
  
 6.1 Effective Date  
  
 The Corporation and the Employee agree and acknowledge that (i) this Agreement has been entered into in anticipation of
the completion of the proposed Merger contemplated by the Merger Agreement; (ii) the effective date of this Agreement shall be the Effective Time of the Merger, if any; and (iii) this Agreement shall be of no force or effect if
(x) the Merger Agreement is not entered into as of a date one (1) month following the date of this Agreement or (y) the Effective Time does not occur within nine (9) months from the date of the execution of the Merger Agreement.

  
 6.2 Articles, Sections and Headings
 
  

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 The division of this Agreement into Articles and Sections and the insertion of headings are for the
convenience of reference only and shall not affect the construction or interpretation of this Agreement. The terms this “Agreement”, “hereof”, “hereunder” and similar expressions refer to this Agreement and not to any
particular Article, Section or other portion hereof and include any agreement or instrument supplemental or ancillary hereto. Unless something in the subject matter or context is inconsistent therewith, references herein to Articles and Sections are
to Articles and Sections of this Agreement. 
  
 6.3 Number  
  
 In this Agreement words
importing the singular number only shall include the plural and vice versa and words importing the masculine gender shall include the feminine and neuter genders and vice versa and words importing persons shall include individuals, partnerships,
associations, trusts, unincorporated organizations and corporations and vice versa. 
  
 6.4 Benefit of Agreement  
  
 This Agreement shall enure to the benefit of and be binding upon the heirs, executors, administrators and legal personal representatives of the Employee
and the successors and assigns of the Corporation, including but not limited to the Surviving Corporation, respectively. 
  
 6.5 Governing Law  
  
 This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. 
  
 6.6 Injunctive Relief  
  
 Employee hereby acknowledges and agrees that it would be difficult to fully
compensate Corporation for damages resulting from the breach or threatened breach of Article 5 of this Agreement, and accordingly, that Corporation shall be entitled to temporary and permanent injunctive relief, including temporary restraining
orders, preliminary injunctions and permanent injunctions, to enforce such Sections without the necessity of proving actual damages therewith. This provision with respect to injunctive relief shall not, however, diminish Corporation’s right to
claim and recover damages. 
  
 6.7 Entire
Agreement  
  
 This Agreement, together with the separate
[Non-Disclosure and Proprietary Rights Agreement] or similar agreements executed by the Employee in favor of the Corporation, constitutes the entire agreement between the parties with respect to the subject matter hereof and cancels and supersedes
any prior understandings and agreements between the parties hereto with respect thereto. All prior agreements between Employee and APT are hereby terminated except to the extent described in Section 5.6. There are no representations,
warranties, forms, conditions, undertakings or collateral agreements, express, implied or statutory between the parties other than as expressly set forth in this Agreement. 
  
 6.8 Severability  
  
 The Employee and Corporation have reviewed the provisions of this Agreement and agree that they are fair and equitable.
However, in light of the possibility of differing interpretations of law and changes of circumstances, the parties agree that if any one or more of the provisions of this Agreement shall be determined by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the provisions of this Agreement shall, to the extent permitted by law, remain in full force and effect and shall in no way be affected, impaired or invalidated. Moreover, if any of the provisions
contained in this Agreement is determined by a court of competent jurisdiction to be excessively broad as to duration, activity, geographic application or subject, it shall be construed, by limiting or reducing it to the maximum breadth legally
permitted, so as to be enforceable to the extent compatible with then applicable law. 
  
 6.9 Independent Legal Advice 
  

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 The Employee acknowledges that the Employee has read and understands this Agreement, and acknowledges
that the Employee has had the opportunity to obtain independent legal advice prior to execution of this Agreement. To the extent that the Employee fails to obtain independent legal advice, the Employee covenants that such failure will not be used by
the Employee as a defense to the enforcement of the provisions of the Agreement. 
  
 6.10 Copy of Agreement  
  
 The Employee hereby acknowledges receipt of a copy of this Agreement duly signed by the Corporation. 
  
 6.11 Notice  
  
 Any demand, notice or other communication (hereinafter in this
Section 6.11 referred to as a “Communication”) to be given in connection with this Agreement shall be given by personal delivery or transmitted by telecopier or other form of recorded communication, tested prior to transmission to
such party, addressed to the recipient as follows: 
  
 To the
Employee at the address provided by Employee on the signature page. 
  

			
	 	 	

	 To the Corporation at:
	 	2381 Morse Ave.
	 	 	Irvine, California 92614
	 	 	Attention: Vice President, Human Resources

  
 or such other address or individual as
may be designated by notice by either party to the other. Any communication given by personal delivery shall be conclusively deemed to have been given on the day of actual delivery thereof and, if made or given by or transmitted by telecopier or
other form of recorded communication shall be deemed to have been given and received on the date of its transmission provided that if such date is not a business day or if it is received after the end of normal business hours on the date of its
transmission then it shall be deemed to have been given and received at the opening of business in the office of the addressee on the first business day next following the transmission hereof. For the purposes of this Agreement, a business day shall
mean any day other than a Saturday or Sunday. Any party may change its address for service from time to time by giving seven (7) days notice to the other party in accordance with the foregoing. 
  
 6.12 Assignment  
  
 Except as otherwise expressly provided herein, neither this Agreement nor any
rights or obligations shall be assignable by Employee without the prior written consent of the Corporation. 
  
 6.13 Amendment and Waiver  
  
 No supplement, modification, amendment or waiver of this Agreement shall be binding unless executed in writing by both parties. No waiver of any of the
provisions of this Agreement shall constitute a waiver of any other provision (whether or not similar) nor shall any waiver constitute a continuing waiver unless otherwise expressly provided. 
  
 6.14 Withholding  
  
 All payments and benefits described herein will be subject to deduction of
all applicable withholding taxes, social security taxes and any other federal, state or local taxes in effect or hereafter required as a charge on the compensation of Employee. 
  
 6.15 Counterparts  
  

 10 

 This Agreement may be executed by the parties in one or more counterparts, each of which when executed
and delivered shall be deemed to be an original and such counterparts shall together constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the date first set forth above, to become effective on and subject to the terms
and conditions of Section 6.1. 
  

	
	/s/ Russell Crecraft
	Russell Crecraft

  

			
	Address:	 	 61150 Minaret Circle
	 	 	Bend, Oregon 97702

  

			
	APT Acquisition Corp.
		
	By:	 	 /s/ John M. Holtrust
	Name:	 	 John M. Holtrust
	Title:	 	 Vice President, Human Resources

  

 11EXHIBIT 10.48

 Exhibit 10.48 
  

				
	 Baltimore, Maryland
	  	$	3,000,000.00
	 October 22nd, 2004
	  	 	 

  
 SECOND AMENDED AND
RESTATED 
 DEMAND PROMISSORY NOTE 
  

FOR VALUE RECEIVED, the undersigned, AVATECH SOLUTIONS SUBSIDIARY, INC., a Delaware corporation (“BORROWER”), promises to pay to the order of
K BANK, formerly known as KEY BANK AND TRUST (“LENDER”), at the LENDER’S offices at 7F Gwynns Mill Court, Owings Mills, Maryland 21117, or at such other places as the holder of this Promissory Note may from time to time designate, the
principal sum of Three Million Dollars ($3,000,000.00), or so much as may have been advanced to the BORROWER as proceeds of the “LOAN,” as such term is defined and described in the Loan And Security Agreement (“AGREEMENT”) dated
September 11, 2003 the LENDER and the BORROWER, together with interest thereon at the rate or rates hereafter specified until paid in full and any and all other sums which may be owing to the holder of this Promissory Note by the BORROWER
pursuant to this Promissory Note. The following terms shall apply to this Promissory Note. 
  
 1. Interest Rate. Interest shall accrue on the unpaid principal balance of this Promissory Note until paid in full at the higher of: (a) seven and one-half percent (7.5%); or (b) the annual
fluctuating rate of interest which shall equal the rate obtained by adding two percent (2.0%) to the “PRIME RATE OF INTEREST” of the LENDER in effect from time to time. The term “PRIME RATE OF INTEREST” means the highest
prime rate of interest on corporate loans at large U.S. Money Center Banks as presently published by The Wall Street Journal (Eastern Edition) under the heading or column entitled “Money Rates” or in a future substitute heading,
column, or subheading published by The Wall Street Journal, or succeeding nationally recognized publication selected by the LENDER. Changes in the applicable interest rate shall be made as of, and immediately upon, the occurrence of changes
in the PRIME RATE OF INTEREST. 
  
 2. Calculation Of
Interest. Interest shall be calculated on the basis of a three hundred sixty (360) days per year factor applied to the actual days on which there exists an unpaid balance hereunder. 
  
 3. Repayment. Accrued and unpaid interest, plus any then due
applicable late payment charges or default interest, shall be paid in consecutive monthly payments beginning on the fifteenth calendar day of the first month immediately following the date of this Promissory Note and continuing on the fifteenth
calendar day of each succeeding month. ALL SUMS OUTSTANDING HEREUNDER, INCLUDING PRINCIPAL, INTEREST, CHARGES AND FEES, ARE PAYABLE IN FULL ON THAT DAY OCCURRING SIXTY (60) CALENDAR DAYS AFTER THE DEMAND OF THE HOLDER OF THIS PROMISSORY
NOTE; PROVIDED, HOWEVER, THAT IF THERE IS AN “EVENT OF DEFAULT” (AS SUCH TERM IS DEFINED IN THE AGREEMENT) ALL SUMS OUTSTANDING HEREUNDER ARE PAYABLE IN FULL IMMEDIATELY UPON THE DEMAND OF THE LENDER. DEMAND FOR PAYMENT IN FULL OF ALL SUMS
DUE HEREUNDER MAY BE MADE AT ANY TIME BY THE HOLDER OF THIS PROMISSORY NOTE, WITHOUT PRIOR NOTICE AND WITHOUT REGARD AS TO WHETHER OR NOT A DEFAULT OR VIOLATION OF ANY OF THE BORROWER’S OBLIGATIONS UNDER THIS PROMISSORY NOTE IS THEN EXISTING OR
CONTINUING. 
  
 4. Late Payment Charge. If any payment
due hereunder, other than any principal payment due on acceleration or demand, is not received by the holder within fifteen (15) calendar 

 
days after its due date, the BORROWER shall pay a late payment charge equal to five percent (5%) of the amount (excluding any principal due as a result
of acceleration or demand) then due and payable. The late payment charge shall be due whether or not the holder declares this Promissory Note in default or accelerates and demands immediate payment of the sums due hereunder. The existence of the
right by the holder to receive a late payment charge shall not constitute a grace period or provide any right in the BORROWER to make a payment other than on its due date. 
  
 5. Application Of Payments. All payments made hereunder shall be applied first to late payment charges or other sums
owed to the holder, next to accrued interest, and then to principal, or in such other order or proportion as the holder, in the holder’s sole discretion, may elect from time to time. 
  
 6. Prepayment. The BORROWER may prepay this Promissory Note in whole or in part at any time without premium or
additional interest. All prepayments made upon the unpaid principal balance of this Promissory Note shall be applied to the unpaid principal balance in the inverse order of scheduled maturities. 
  
 7. Rights Upon Occurrence Of An Event Of Default. Upon the occurrence
of an “EVENT OF DEFAULT,” as such term is defined in the AGREEMENT, the holder of this Promissory Note shall have the following rights in addition to such other rights and remedies as are authorized by the AGREEMENT or otherwise available
to the holder under applicable laws: 
  
 7.1.
Acceleration. The holder of this Promissory Note, in the holder’s sole discretion and without notice or demand, may accelerate and declare due and immediately owing the entire unpaid principal balance plus accrued interest and all other
sums payable to the holder in accordance with the terms of any of the “LOAN DOCUMENTS,” as such term is defined in the AGREEMENT. 
  
 7.2. Default Interest Rate. The holder of this Promissory Note, in the holder’s sole discretion and without notice or demand,
may raise the rate of interest accruing on the unpaid principal balance by two (2) percentage points above the rate of interest otherwise applicable, independent of whether the holder elects to accelerate the unpaid principal balance as a
result of such default, unless prior to the imposition of the default rate of interest, the BORROWER cures such event to the satisfaction of the holder hereof. Any individual waiver of the holder’s right to impose the default rate of interest
shall not be considered a waiver of this section or any future right of the holder to impose the default rate of interest pursuant to this Section. 
  
 7.3. Confession Of Judgment. The BORROWER authorizes any attorney admitted to practice before any court of record in the United
States to appear on its behalf in any court in one or more proceedings, or before any clerk thereof or prothonotary or other court official, and to confess judgment against the BORROWER in favor of the holder of this Promissory Note in the full
amount due on this Promissory Note (including principal, accrued interest and any and all charges, fees and costs) plus attorneys’ fees equal to fifteen percent (15%) of the amount due, plus court costs, all without prior notice or
opportunity of the BORROWER for prior hearing. The BORROWER agrees and consents that venue and jurisdiction shall be proper in the Circuit Court of any County of the State of Maryland or of Baltimore City, Maryland, or in the United States District
Court for the District of Maryland. The BORROWER waives the benefit of any and every statute, ordinance, or rule of court which may be lawfully waived conferring upon it any right or privilege of exemption, homestead rights, stay of execution, or
supplementary proceedings, or other relief from the enforcement or immediate enforcement of a judgment or related proceedings on a judgment. 
  

 2 

 The authority and power to appear for and enter judgment against the BORROWER shall not be exhausted by one or more
exercises thereof, or by any imperfect exercise thereof, and shall not be extinguished by any judgment entered pursuant thereto; such authority and power may be exercised on one or more occasions from time to time, in the same or different
jurisdictions, as often as the holder shall deem necessary, convenient, or proper. In the event that the holder receives, as a result of execution on a judgment confessed hereunder, attorneys’ fees which exceed the actual legal fees incurred by
the holder in connection with the unpaid balance due to the holder pursuant to this Promissory Note, then, upon full and final payment of all other sums due and owing to the holder pursuant to this Promissory Note and payment of the actual
attorneys’ fees incurred by the holder, the holder shall remit such excess amount of attorneys’ fees to the BORROWER. 
  
 8. Expenses Of Collection And Attorneys’ Fees. Should this Promissory Note be referred to an attorney for collection, whether or not judgment
has been confessed or suit has been filed, the BORROWER shall pay all of the holder’s reasonable costs, fees and expenses, including reasonable attorneys’ fees, resulting from such referral. 
  
 9. Waiver Of Defenses. In the event any one or more holders of this
Promissory Note transfer this Promissory Note for value, the BORROWER agrees that all subsequent holders of this Promissory Note who take for value and without actual knowledge of a claim or defense of the BORROWER against a prior holder shall not
be subject to any claims or defenses which the BORROWER may have against a prior holder, all of which are waived as to the subsequent holder, and that all such subsequent holders shall have all rights of a holder in due course with respect to the
BORROWER even though the subsequent holder may not qualify, under applicable law, absent this section, as a holder in due course. The BORROWER shall retain all rights and claims which the BORROWER may have against prior holders despite any such
transfers and the waiver of defenses provided in this section as to subsequent holders. 
  
 10. Waiver Of Protest. The BORROWER, and all other parties to this Promissory Note, whether maker, indorser, or guarantor, waive presentment, notice of dishonor and protest. 
  
 11. Extensions Of Maturity. All parties to this Promissory Note,
whether maker, indorser, or guarantor, agree that the maturity of this Promissory Note, or any payment due hereunder, may be extended at any time or from time to time without releasing, discharging, or affecting the liability of such party.

  
 12. Manner And Method Of Payment. All payments called
for in this Promissory Note shall be made in lawful money of the United States of America. If made by check, draft, or other payment instrument, such check, draft, or other payment instrument shall represent immediately available funds. In the
holder’s discretion, any payment made by a check, draft, or other payment instrument shall not be considered to have been made until such time as the funds represented thereby have been collected by the holder. Should any payment date fall on a
non-banking day, the BORROWER shall make the payment on the next succeeding banking day. 
  
 13. Maximum Rate Of Interest. Any provision contained in any of the LOAN DOCUMENTS to the contrary notwithstanding, the holder of this Promissory Note shall not be entitled to receive or collect, nor shall the
BORROWER be obligated to pay, interest hereunder in excess of the maximum rate of interest permitted by the laws of any state determined to be applicable thereto or the laws of the United States of America applicable to loans in such applicable
state or states, and if any provisions of this Promissory Note or of any of the other LOAN DOCUMENTS shall ever be construed or held to permit or require the charging, collection or payment of any amount of interest 

  

 3 

 
in excess of that permitted by such laws applicable thereto, the provisions of this paragraph shall control and shall override any contrary or inconsistent
provision. The intention of the parties is to at all times conform strictly with all applicable usury laws, and other applicable laws regulating the rates of interest which may be lawfully charged upon the credit facility evidenced by this
Promissory Note. The interest to be paid in accordance with the terms of this Promissory Note shall be held subject to reduction to the amount allowed under any usury or other laws as now or hereafter construed by the courts having jurisdiction, and
any sums of money paid in excess of the interest rate allowed by law shall be applied in reduction of the principal amounts owing under this Promissory Note. 
  
 14. Notices. Any notice or demand required or permitted by or in connection with this Promissory Note shall be given in the manner specified in the
AGREEMENT for the giving of notices under the AGREEMENT. Notwithstanding anything to the contrary, all notices and demands for payment from the holder actually received in writing by the BORROWER shall be considered to be effective upon the receipt
thereof by the BORROWER regardless of the procedure or method utilized to accomplish delivery thereof to the BORROWER. 
  
 15. Assignability. This Promissory Note may be assigned by the LENDER or any holder at any time or from time to time without notice to or consent
from the BORROWER. 
  
 16. Binding Nature. This Promissory
Note shall inure to the benefit of and be enforceable by the LENDER and the LENDER’S successors and assigns and any other person to whom the LENDER or any holder may grant an interest in the BORROWER’S obligations hereunder, and shall be
binding and enforceable against the BORROWER and the BORROWER’S successors and assigns. 
  
 17. Invalidity Of Any Part. If any provision or part of any provision of this Promissory Note shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Promissory Note and this Promissory Note shall be construed as if such invalid, illegal or unenforceable provision or part thereof had never been contained herein, but only to the extent
of its invalidity, illegality, or unenforceability. 
  
 18.
Choice Of Law. The laws of the State of Maryland (excluding, however, conflict of law principles) shall govern and be applied to determine all issues relating to this Promissory Note and the rights and obligations of the parties hereto,
including the validity, construction, interpretation, and enforceability of this Promissory Note and its various provisions and the consequences and legal effect of all transactions and events which resulted in the issuance of this Promissory Note
or which occurred or were to occur as a direct or indirect result of this Promissory Note having been executed. 
  
 19. Consent To Jurisdiction; Agreement As To Venue. The BORROWER irrevocably consents to the non-exclusive jurisdiction of the courts of the State
of Maryland and of the United States District Court for the District of Maryland, if a basis for federal jurisdiction exists. The BORROWER agrees that venue shall be proper in any circuit court of the State of Maryland selected by the LENDER or in
the United States District Court for the District of Maryland if a basis for federal jurisdiction exists and waives any right to object to the maintenance of a suit in any of the state or federal courts of the State of Maryland on the basis of
improper venue or of inconvenience of forum. 
  

 4 

 20. Unconditional Obligations. The BORROWER’S obligations under this Promissory Note shall be
the unconditional duty and obligation of the BORROWER and shall be independent of any rights of set-off, recoupment or counterclaim which the BORROWER might otherwise have against the holder of this Promissory Note. The BORROWER shall pay absolutely
the payments of principal, interest, fees and expenses required hereunder, free of any deductions and without abatement, diminution or set-off. 
  
 21. Seal And Effective Date. This Promissory Note is an instrument executed under seal and is to be considered effective and enforceable as of the
date set forth on the first page hereof, independent of the date of actual execution and delivery. 
  
 22. Tense; Gender; Defined Terms; Section Headings. As used herein, the singular includes the plural and the plural includes the singular. A
reference to any gender also applies to any other gender. Defined terms are entirely capitalized throughout. The section headings are for convenience only and are not part of this Promissory Note. 
  
 23. Actions Against Lender. Any action brought by the BORROWER against
the LENDER which is based, directly or indirectly, on this Promissory Note or any matter in or related to this Promissory Note, including but not limited to the making of the loan evidenced hereby or the administration or collection thereof, shall
be brought only in the courts of the State of Maryland. The BORROWER may not file a counterclaim against the LENDER in a suit brought by the LENDER against the BORROWER in a state other than the State of Maryland unless under the rules of procedure
of the court in which the LENDER brought the action the counterclaim is mandatory, and not merely permissive, and will be considered waived unless filed as a counterclaim in the action instituted by the LENDER. The BORROWER agrees that any forum
other than the State of Maryland is an inconvenient forum and that a suit brought by the BORROWER against the LENDER in a court of any state other than the State of Maryland should be forthwith dismissed or transferred to a court located in the
State of Maryland by that Court. 
  
 24. Waiver Of Jury
Trial. The BORROWER (by execution of this Promissory Note) and the LENDER (by acceptance of this Promissory Note) agree that any suit, action, or proceeding, whether claim or counterclaim, brought or instituted by or against the BORROWER or the
LENDER, or any successor or assign of the BORROWER or the LENDER, on or with respect to this Promissory Note or any of the other LOAN DOCUMENTS, or which in any way relates, directly or indirectly, to the obligations of the BORROWER to the LENDER
under this Promissory Note or any of the other LOAN DOCUMENTS, or the dealings of the parties with respect thereto, shall be tried only by a court and not by a jury. THE BORROWER AND THE LENDER HEREBY EXPRESSLY WAIVE ANY RIGHT TO A TRIAL BY JURY
IN ANY SUCH SUIT, ACTION, OR PROCEEDING. 
  
 25. Amendment
and Restatement. This Promissory Note amends and restates in its entirety the Amended and Restated Demand Promissory Note dated November 24th, 2003 in the principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00) (“ORIGINAL NOTE”). This Promissory Note does not constitute a novation of the BORROWER’S
obligations under the ORIGINAL NOTE but an amendment and restatement of such obligations and an increase in the maximum amount of such obligations. 
  

 5 

 IN WITNESS WHEREOF, the BORROWER has duly executed this Promissory Note under seal as of the date first
above written. 
  

											
	WITNESS/ATTEST:	 	 	 	THE BORROWER:
			
	 	 	 	 	 AVATECH SOLUTIONS SUBSIDIARY, INC.,

	 	 	 	 	 A Delaware Corporation

					
	 /s/ W. Scott Harris
	 	 	 	By:	 	 /s/ Christopher Olander
	 	 (SEAL)

	 W. Scott Harris
	 	 	 	 	 	Name: Christopher Olander	 	 
	 	 	 	 	 	 	 	 	 Title: Exec. V.P.
	 	 

  

 6

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