Document:

Exhibit 10.1

    
      

    

    

      EXHIBIT
        10.1

      

      July
        1,
        2006

      

      

      Ms.
        Jill
        Suppes

      

      

      Dear
        Jill:

      

      Mediware
        hereby formally accepts your resignation dated and effective June 30, 2006.
        Despite your resignation, we are pleased that you have agreed to provide
        ongoing
        consulting services to Mediware on an “as needed basis” through
        December 31, 2006; provided that you shall not be required to devote more
        than 20 hours in any calendar month to provide such services and that such
        services may be provided by telephone or via electronic communication. You
        will
        not be required to provide services in excess of such number of hours or
        “on-site,” unless you agree to do so. From and after July 1, 2006, you are and
        will be an independent contractor of Mediware. Nothing in this letter agreement
        is intended to create any offer of employment, partnership or joint venture.
        You
        shall have no authority to enter into any contracts or agreements on behalf
        of
        Mediware. In no event will you represent to any third party that you are
        an
        agent or employee of the Mediware or connected with Mediware in any way other
        than under the terms of this letter agreement. The new CFO and I will work
        with
        you to ensure a seamless transition as we close Mediware’s books, file our
        Annual Report on Form 10-K for fiscal 2006, and move through the first half
        of
        fiscal 2007. 

      

      As
        compensation for your consulting services, Mediware agrees to pay
        you:

      

      (a)
        $14,584 per month for July, August and September in accordance with Mediware’s
        standard payment practices;

      

      (b)
        $10,000 per month for October, November and December in accordance with
        Mediware’s standard payment practices; and

      

      (c)
        a
        monthly amount equal to your COBRA premiums for the same level of health
        insurance coverage as you were receiving on June 29, 2006 until the earlier
        of
        (i) December 31, 2006; and (ii) the date you become eligible for health benefits
        from a successor employer; and

      

      (d)
        $35,603 for all accrued but unused vacation as of June 30, 2006, payable
        in one
        lump sum payment within thirty days after the date hereof.

      

      Mediware
        will reimburse you for all pre-approved and reasonable out-of-pocket business
        expenses that are incurred by you in furtherance of Mediware’s business in
        accordance with Mediware’s policies with respect thereto as in effect from time
        to time. Upon submission of appropriate documentation, Mediware will also
        reimburse in accordance with Mediware’s policies you for any out-of-pocket
        business expenses you incurred prior to your resignation, but for which you
        have
        not yet been reimbursed. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      You,
        on
        your own behalf and that of your heirs, executors, attorneys, administrators,
        successors, and assigns, hereby fully release and discharge Mediware and
        its
        predecessors, successors, subsidiaries, affiliates, and assigns, and its
        and
        their directors, officers, trustees, general and limited partners, employees,
        and agents, whether in their individual or official capacities and the current
        and former trustees or administrators of any retirement or other benefit
        plan
        applicable to the employees or former employees of Mediware from any and
        all
        liability, claims and demands including, but not limited to, claims, demands
        or
        actions arising under Mediware’s policies and procedures, whether formal or
        informal, United States or State of Kansas Constitutions; Title VII of the
        Civil
        Rights Act of 1964, as amended; the Civil Rights Act of 1991; Kansas Act
        Against
        Discrimination (Kan. Stat. Ann. 44 Sec. 1001 (et.
        seq.), Kansas
        Age Discrimination in Employment Act (Kan. Stat. Ann. 44 Sec. 1111 et.
        seq.);
        the
        Employee Retirement Income Security Act of 1974, as amended; the Age
        Discrimination in Employment Act, as amended; the Americans With Disabilities
        Act, as amended; Executive Order 11246; and any other federal, state or local
        statute, ordinance or regulation with respect to employment, and in addition
        thereto, from any other claims, demands or actions with respect to your
        employment with the Mediware or other association with Mediware, including,
        but
        not limited to, the termination of your employment with Mediware, any right
        of
        payment for disability or any other statutory or contractual right of payment
        or
        any claim for relief on the basis of any alleged tort or breach of contract
        under the common law of the State of Kansas or any other state including,
        but
        not limited to, defamation, intentional or negligent infliction of emotional
        distress, breach of the covenant of good faith and fair dealing, promissory
        estoppel, and negligence; provided, however, that nothing contained in this
        letter shall apply to, or release Mediware or any of the other entities or
        persons listed above, from (i) any obligation contained in this letter
        agreement, (ii) any obligation to provide vested benefits in accordance with
        the
        terms of any employee benefit plan or program, including, but not limited
        to
        under the terms of any stock option plan, program or agreement, maintained
        or
        sponsored by Mediware, (iii) any rights you may have or obligations of Mediware
        with respect to indemnification, advancement of expenses and/or insurance
        coverage pursuant to Mediware’s By-Laws as restated as of September 13, 2004, or
        (iv) any claims that arise after the date of this letter agreement. You
        represent that you have not assigned or filed any claim, demand, action or
        charge to date against Mediware. 

      

      You
        hereby acknowledge that except as provided by or referred to in this letter
        agreement, Mediware does not owe you any further payments (including payments
        of
        compensation upon termination) or other benefits under your Employment Agreement
        dated May 20, 2005 and that your post-employment duties in your Employment
        Agreement (e.g.,
        confidentiality, non-competition and other covenants) shall remain unaffected.
        Your obligations pursuant to Section 7.a. and b. (relating to the
        confidentiality of information) and Section 8 (relating to intellectual
        property) of your Employment Agreement shall be deemed remade mutatis mutandis
        in this letter agreement to reflect your consulting role under this letter
        agreement. You shall be permitted to actively engage in any other employment,
        occupation or consulting activity for any direct or indirect remuneration,
        subject to your continuing obligations under your Employment
        Agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      From
        and
        after the date of this agreement, you agree that you will not take any actions
        or make any oral or written statements to any third party that disparages
        Mediware and its directors and officers. Mediware agrees that neither it
        nor any
        of the persons referred to in the preceding sentence will take any actions
        or
        make any oral or written statements to any third party that disparage you.
        We
        mutually agree that statements consistent with the press release attached
        hereto
        shall not be a violation of this letter agreement, and that nothing herein
        precludes Mediware, such persons or you from making truthful statements in
        response to any inquiry by any federal or state regulatory authority or in
        any
        legal proceeding. 

      

      Without
        precluding acting to obtain specific performance and/or injunctive relief
        in a
        court of applicable jurisdiction, in the event of any dispute between the
        parties hereto arising out of or relating to this letter agreement, such
        dispute
        shall be settled by arbitration in Wyandotte County or the City of Kansas
        City,
        State of Kansas, in accordance with the National Rules for the Resolution
        of
        Employment Disputes then in effect of the American Arbitration Association.
        The
        parties hereto agree that the arbitral panel shall also be empowered to grant
        injunctive relief to a party, which may be included in any award. Judgment
        upon
        the award rendered, including injunctive relief, may be entered in any court
        having jurisdiction thereof.

       

      Jill,
        on
        behalf of Mediware, I thank you for your service and wish you the best in
        all of
        your future endeavors.

      

      

      
        	 	
                Very
                  truly yours,

              
	 	 
	 	
                /S/
                  James Burgess

              
	 	 
	 	
                James
                  Burgess

              
	 	
                Chief
                  Executive Officer

              

      

      

      Agreed
        to
        an accepted

      as
        of the
        date first written above

      

      
        	
                /S/
                  Jill H. Suppes

              
	
                Jill
                  H. SuppesExhibit 10.2

    
      

    

     

    
      EXHIBIT
        10.2

      

      EMPLOYMENT
        AGREEMENT

      

      THIS
        EMPLOYMENT AGREEMENT (hereinafter "this Agreement") is made effective as
        of June
        30, 2006 (the “Effective Date”), between Mediware Information Systems, Inc.,
        (hereinafter "the Company") and Mark Williams (hereinafter the
“Executive").

      

      WHEREAS,
        the Executive is a currently the Controller of the Company, and the Company
        desires to continue to employ the Executive as the Controller, or in such
        other
        capacity as the parties may agree, and the Executive desires to be so employed
        by the Company, on the terms and conditions hereinafter set forth;

      

      WHEREAS,
        the Company and the Executive desire that the Executive act as acting Chief
        Accounting Officer of the Company on an interim basis;

      

      NOW,
        THEREFORE, in consideration of the foregoing and of the respective covenants
        and
        agreements herein set forth, the Company and the Executive hereby agree as
        follows:

      

      1.
        Employment.
        The
        Company hereby agrees to employ the Executive, and the Executive hereby agrees
        to serve as the Company’s Controller, or in such other capacity as the parties
        may mutually agree. The Executive agrees to perform such services customary
        to
        such office as shall from time to time be assigned to him by the Chief Financial
        Officer or the Chief Executive Officer or his designee. The Executive further
        agrees to use his best efforts to promote the interests of the Company and
        to
        devote his full energies to the business and affairs of the
        Company.

      

      2.
        Term
        of Employment.
        The
        employment hereunder shall be for a term of twenty-four months commencing
        on the
        Effective Date hereof and ending twenty-four months after the Effective Date
        hereof (the "'Expiration Date"), unless terminated earlier pursuant to Paragraph
        4 of this Agreement (the "Term of Employment"). This Agreement shall
        automatically renew for successive terms of one (1) year (each a "Renewal
        Term")
        commencing on the first day immediately following the Expiration Date, unless
        such renewal is objected to by either the Company or the Executive by giving
        at
        least 90 days prior written notice prior to the scheduled Expiration Date.
        In
        the event of such renewal, the last day of each successive Renewal Term shall
        be
        deemed the Expiration Date.

      

      3.
        Supplemental
        Duties.
        In
        addition to the Executive’s other duties set forth in this Agreement, the
        Executive hereby agrees to serve as the Company’s acting Chief Accounting
        Officer on an interim basis until the earlier of either the (i) date on which
        Company employs a new Chief Financial Officer; or (ii) the date on which
        the
        Chief Executive Officer of the Company gives Executive notice that the Executive
        shall no longer serve as the Company’s Chief Accounting Officer. As the acting
        Chief Accounting Officer, the Executive shall act as the Company’s principal
        financial and accounting officer and shall perform such services customary
        to
        such office or as shall from time to time be assigned to him by the Board
        of
        Directors, the Chief Executive Officer or his designee.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.
        Compensation
        and Other Related Matters.

      

      (a)
        Salary.
        As
        compensation for services rendered hereunder, the Executive shall receive
        an
        Annual Base Salary of one hundred twenty-five thousand dollars ($125,000),
        which
        salary shall be paid in accordance with the Company's then prevailing payroll
        practices for its executives and shall be subject to review annually by the
        Chief Executive Officer of the Board of Directors.

      

      (b)
        Bonus.
        During
        the term of this Agreement the Executive shall be eligible to receive an
        Annual
        Bonus of up to 30% of Executive’s Annual Base Salary for achieving objectives
        established by the Company, subject to the discretion of the Chief Executive
        Officer. The bonus, if any, would be payable after the conclusion of the
        annual
        audit.

      

      (c)
        Acting
        Chief Accounting Officer Compensation.
        As
        compensation for serving as the Company’s acting Chief Accounting Officer and
        performing the duties set forth herein, and in addition to his Annual Base
        Salary and bonus compensation, the Company shall pay the executive the following
        additional compensation (the “Additional Compensation”) for each full month the
        Executive serves as acting Chief Accounting Officer:

      

      
        	
                (i)

              	
                On
                  the date the Company hires a new CFO, Mediware will pay the Executive
                  the
                  greater of $25,000 or $3750 for each full month the Executive served
                  as
                  the acting Chief Accounting Officer;
                  and

              

      

      

      
        	
                (ii)

              	
                On
                  the date twelve months after Company hires a new CFO, if Executive
                  continues to be employed by Mediware or if the Employee is terminated
                  without cause by the Company prior to such date, the Company shall
                  pay the
                  Executive the greater of $25,000 or $3750 for each full month the
                  Executive served as acting Chief Accounting
                  Officer.

              

      

      

      (d)
        Other
        Benefits.
        The
        fringe benefits, perquisites and other benefits of employment, including
        three
        (3) weeks vacation each year, to be provided to the Executive shall be
        equivalent to such benefits and perquisites as are provided to other employees
        of the Company as amended from time to time. 

      

      (e)
        Reimbursement.
        Subject
        to policies established from time to time by the Company, the Company shall
        reimburse Executive for the reasonable expenses incurred by him in connection
        with the performance of his duties hereunder, including but not limited to,
        travel expenses and entertainment expenses, for which the Executive shall
        account to the Company in a manner sufficient to conform to Company policy
        and
        Internal Revenue Service requirements.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.
        Termination.

      

      (a)
        Disability.
        If, as
        a result of the incapacity of the Executive due to physical or mental illness,
        the Executive is unable to perform substantially and continuously the duties
        assigned to him hereunder for a period of three (3) consecutive months or
        for a
        non-consecutive period of nine (9) months during the Term of Employment,
        the
        Company may terminate his employment for "Disability" upon thirty (30) days
        prior written notice to the Executive.

      

      (b)
        Death.
        The
        Executive's employment shall terminate immediately upon the death of the
        Executive.

      

      (c)
        Cause.
        The
        Company shall be entitled to terminate the Executive's employment for "Cause."
        Termination by the Company of the employment of the Executive for "Cause"
        shall
        mean termination based upon (i) the willful failure by the Executive to follow
        directions communicated to him by the Chief Executive Officer or his designee;
        (ii) the willful engaging by the Executive in conduct which is materially
        injurious to the Company, monetarily or otherwise; (iii) a conviction of,
        a plea
        of nolo
        contendere, a
        guilty
        plea or confession by the Executive to an act of fraud, misappropriation
        or
        embezzlement or to a felony; (iv) the Executive's habitual drunkenness or
        use of
        illegal substances; (v) a material breach by the Executive of this Agreement;
        or
        (vi) an act of gross neglect or gross misconduct which the Company deems
        in good
        faith to be good and sufficient cause. Executive hereby represents and warrants
        that he has never been convicted of an act of fraud, misappropriation,
        embezzlement or a felony, and Executive further warrants that during the
        Term of
        this Agreement, he will give the Company immediate notice of any charge against
        the Executive relating to any of the foregoing.

      

      (d)
        Termination
        Without Cause.
        The
        Executive shall have the right to terminate the Executive's employment without
        cause at any time upon one month written notice. The Company shall have the
        right to terminate the Executive’s employment without cause at any time upon
        written notice. The giving of notice by either party pursuant to Section
        2 to
        prevent the renewal of this Agreement shall not be deemed a termination of
        Executive’s employment without cause.

      

      6.
        Compensation
        Upon Termination or During Disability

      

      (a)
        Disability.
        During
        any period that the Executive fails to perform his full-time duties with
        the
        Company for a three-month period as a result of incapacity due to physical
        or
        mental illness (the "Disability Period"), the Executive shall continue to
        receive his Annual Base Salary at the rate set forth in Paragraph 3(a) of
        this
        Agreement, less any compensation payable to the Executive under the applicable
        disability insurance plan of the Company during the Disability Period, until
        this Agreement is terminated pursuant to Paragraph 4(a) hereof. Thereafter,
        or
        in the event the Executive's employment shall be terminated by reason of
        his
        death, the Executive's benefits shall be determined under the Company's
        insurance and other compensation programs then in effect in accordance with
        the
        terms of such programs and the Company shall have no further obligation to
        the
        Executive under this Agreement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)
        Death.
        In the
        event of the Executive's death, the Executive's beneficiary shall be entitled
        to
        receive the Executive's Annual Base Salary at the rate set forth in Paragraph
        3(a) of this Agreement until the date of his death. Thereafter, the Company
        shall have no further obligation to the Executive or the Executive's beneficiary
        under this Agreement.

      

      (c)
        Cause.
        If the
        Executive's employment shall be terminated by the Company for "Cause" as
        defined
        in Paragraph 4(c) of this Agreement, the Company shall continue to pay the
        Executive his Annual Base Salary at the rate set forth in Paragraph 3(a)
        of this
        Agreement through the date of termination of the Executive's employment.
        Thereafter, the Company shall have no further obligation to the Executive
        under
        this Agreement.

      

      (d)
        Termination
        Without Cause.
        If the
        Executive terminates his employment pursuant to Paragraph 4(d), the Executive
        shall be entitled to receive Executive’s Annual Base Salary at the rate set
        forth in Paragraph 3(a) of this Agreement until the date Executive’s employment
        ends. Thereafter the Company shall have no obligation to Executive. If the
        Company voluntarily terminates the Executive's employment with the Company
        pursuant to Paragraph 4(d) of this Agreement, the Company shall until the
        earlier of the three month anniversary of the termination of employment or
        the
        commencement of Executive’s employment at a successor employer, pay the
        Executive an amount equal to three months of the Executive's then current
        Annual
        Salary, payable in three equal monthly installments. Additionally, until
        the
        earlier of the three month anniversary of the termination of employment,
        or the
        commencement of the provision of health benefits to the Executive by a successor
        employer, the Executive will continue to receive the same coverage of health
        insurance as immediately before the date of the termination, at the expense
        of
        the Company. Thereafter, the Executive acknowledges that the Company shall
        have
        no further obligation to the Executive under this Agreement. Notwithstanding
        the
        foregoing, the Company shall only be obligated to make the payments set forth
        in
        this section after the Executive delivers to the Company an executed Release
        and
        Severance Agreement, which shall be substantially in the form of Employer’s
        standard Release and Severance Agreement for all employees, with such changes
        therein or additions thereto as needed under then applicable law to give
        effect
        to its intent and purpose. After the Executive is no longer receiving benefits
        from Mediware, the Executive shall be eligible for COBRA at Executive’s own
        expense in accordance with applicable law.

       

      (e)
        Acquisition
        or Sale of Company.
        If a
        third party described in Paragraph 5(f) of this Agreement terminates the
        Executive due to "an acquisition or sale of the Company", as described in
        Paragraph 5(f) below, the Company shall pay the Executive an amount equal
        to
        three months of Executive's Annual Base Salary at the rate in effect at the
        date
        of termination of the Executive's employment during the period of the
        Executive's employment, payable in three equal monthly installments. Until
        the
        earlier of the three months after the termination of employment, or the
        commencement of the provision of health benefits to the Executive by a successor
        employer, the Executive will continue to receive the same coverage of health
        insurance as immediately before the date of the termination, at the expense
        of
        the Company. Thereafter, the Executive acknowledges that the Company shall
        have
        no further obligation to the Executive under this Agreement. Notwithstanding
        the
        foregoing, the Company shall only be obligated to make the payments set forth
        in
        this section after the Executive delivers to the Company an executed Release
        and
        Severance Agreement, which shall be substantially in the form of Employer’s
        standard Release and Severance Agreement for all employees, with such changes
        therein or additions thereto as needed under then applicable law to give
        effect
        to its intent and purpose; and after delivery to the Company of a resignation
        from all offices, directorships and fiduciary positions with the Company,
        its
        affiliates and employee benefit plans.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (f)
        Definition.
        For
        purposes hereof, "an acquisition or sale of the Company" to or by "a third
        party" shall mean the occurrence of any transaction or series of transactions
        which within a six (6) month period result in (i) greater than fifty percent
        (50%) of
        the
        then outstanding shares of Common Stock of the Company (for cash, property
        including, without limitation, stock in any corporation or other third party
        legal entity, indebtedness or any combination thereof) have been redeemed
        by the
        Company or purchased by a third party not previously affiliated with the
        Company, or exchanged for shares in any other corporation or other third
        party
        legal entity not previously affiliated with the Company, or any combination
        of
        such redemption, purchase or exchange, (ii) greater than fifty percent (50%)
        in
        book value of the Company's gross assets are acquired by a third party not
        previously affiliated with the Company (for cash, property including, without
        limitation, stock in any corporation whether or not unaffiliated with the
        Company, indebtedness of any person or any combination thereof), or (iii)
        the
        Company is merged or consolidated with another private or public corporation
        or
        other third party legal entity and the former holders of shares of Common
        Stock
        of the Company own less than 25% of the voting power of the acquiring, resulting
        or surviving corporation or other third party legal entity. For the purposes
        hereof a director or officer of the Company shall be considered "affiliated
        with
        the Company."

      

      7.
        Confidentiality
        and Restrictive Covenants.

      

      (a)
        The
        Executive acknowledges that:

      

      (i)
        the
        business in which the Company is engaged is intensely competitive and his
        employment by the Company will require that he have continual access to and
        knowledge of confidential information of the Company, including, but not
        limited
        to, the nature and scope of its products, the object and source code offered,
        marketed or under development by the Company or under consideration by the
        Company for development, acquisition, or marketing by the Company and the
        documentation prepared or to be prepared for use by the Company (and the
        phrase
        "by the Company" shall include other vendors, licensees or and resellers
        and
        value-added resellers of the Company's products or proposed product) and
        the
        Company's plans for creation, acquisition, improvement or disposition of
        products or software, expansion plans, financial status and plans, products,
        improvements, formulas, designs or styles, method of distribution, lists
        of
        remarketing and value-added and other resellers customer lists and contact
        lists, product development plans, rules and regulations, personnel information
        and trade secrets of the Company, all of which are of vital importance to
        the
        success of the Company's business, provided that Confidential Information
        will
        not include information which has become publicly known otherwise than through
        a
        breach by Executive of the provisions of this Agreement (collectively,
        "Confidential Information");

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (ii)
        the
        direct or indirect disclosure of any Confidential Information would place
        the
        Company at a serious competitive disadvantage and would do serious damage,
        financial and otherwise, to the Company's business;

      

      (iii)
        by
        his training, experience and expertise, the Executive's services to the Company
        will be special and unique; and

      

      (iv)
        if
        the Executive leaves the Company's employ to work for a competitive business,
        in
        any capacity, it would cause the Company irreparable harm.

      

      (b)
        Covenant
        Against Disclosure.
        The
        Executive therefore covenants and agrees that all Confidential Information
        relating to the business products and services of the Company, any subsidiary,
        affiliate, seller or reseller, value-added vendor or customer shall be and
        remain the sole property and confidential business information of the Company,
        free of any rights of the Executive. The Executive further agrees not to
        make
        any use of the confidential information except in the performance of his
        duties
        hereunder and not to disclose the information to third parties, without the
        prior written consent of the Company. The obligations of the Executive under
        this Paragraph 6 shall survive any termination of this Agreement. The Executive
        agrees that, upon any termination of his employment with the Company, all
        Confidential Information in his possession, directly or indirectly, that
        is in
        written or other tangible or readable form (together with all duplicates
        thereof) will forthwith be returned to the Company and will not be retained
        by
        the Executive or furnished to any third party, either by sample, facsimile,
        film, audio or video cassette, electronic data, verbal communication or any
        other means of communication.

      

      (c)
        Non-competition.
        The
        Executive agrees that, during the Term of Employment and for a period of
        one (1)
        year following the date of termination of the Executive's employment with
        the
        Company (or six months following the date of termination of the Executive’s
        employment with the Company if the (i) Company terminates the Executive’s
        employment without cause pursuant to Section 4(d); or (ii) Executive terminates
        his employment for Good Reason pursuant to Section 4(e)), the Executive will
        not
        own, manage, or be connected as an
        officer, employee or director with, or aid or assist anyone else in the conduct
        of, any entity or business which competes with any business conducted by
        the
        Company (which currently includes the licensing and sale of medical software
        and
        services in the Medication Management, Blood Banking and Operating Room fields)
        or any of its subsidiaries or affiliates, in the United States, Canada and
        the
        UK and any other area where such business is being conducted on the date
        the
        Executive's employment is terminated hereunder. Notwithstanding the foregoing
        the Executive's ownership of securities of a public company engaged in
        competition with the Company not in excess of five (5%) percent of any class
        of
        such securities shall not be considered a breach of the covenants set forth
        in
        this Paragraph 6.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)
        Further
        Covenant.
        Until
        the date which is one (1) year after the date of the termination of the
        Executive's employment hereunder for any reason, the Executive will not,
        directly or indirectly, take any of the following actions, and, to the extent
        the Executive owns, manages, operates, controls, is employed by or participates
        in the ownership, management, operation or control of, or is connected in
        any
        manner with, any business of the type and character engaged in and competitive
        with that conducted by the Company or any of its subsidiaries or affiliates
        during the period of the Executive's employment, the Executive will not
        encourage or participate in any of the following actions on behalf of such
        business:

      

      (i)
        persuade or attempt to persuade any customer of the Company or any seller,
        reseller or value-added vendor of the Company or of its products to cease
        doing
        business with the Company or any of its subsidiaries or affiliates, or to
        reduce
        the amount of business it does with the Company or any of its subsidiaries
        or
        affiliates;

      

      (ii)
        solicit for himself or any entity the business of (A) any customer of the
        Company or any of its subsidiaries or affiliates, or (B) any seller, reseller
        or-value-added vendor of the Company, or of its products, or (C) solicit
        any
        business from a customer which was a customer of the Company or any of its
        subsidiaries or affiliates within six months prior to the termination of
        the
        Executive's employment; and

      

      (iii)
        persuade or attempt to persuade any employee of the Company or any of its
        subsidiaries or affiliates or any individual who was an employee of the Company
        or any of its subsidiaries or affiliates, at any time during the six-month
        period prior to the Executive's termination of employment, to leave the employ
        of the Company or any of its subsidiaries or affiliates.

      

      8.
        Intellectual
        Property.
        The
        Executive hereby agrees that any and all (i) software, object code, source
        code,
        and documentation, (ii) any improvements, inventions, discoveries, formulae,
        processes, methods, know-how, confidential data, patents, trade secrets,
        (iii)
        Food and Drug Administrative ("FDA") applications seeking approval by the
        FDA,
        information contained in the Forms 510-k of the FDA and approvals from FDA,
        and
        (iv) other proprietary information made, developed or created by the Executive
        (whether at the request or suggestion of the Company or otherwise, whether
        alone
        or in conjunction with others, and whether during regular working hours of
        work
        or otherwise) during the period of his employment with the Company, which
        may be
        directly or indirectly useful in, or relate to, the business being carried
        out
        by the Company or any of its subsidiaries or affiliates, shall be promptly
        and
        fully disclosed by the Executive to the Board of Directors and shall be the
        Company's exclusive property as against the Executive, and the Executive
        shall
        promptly deliver to the Board of Directors of the Company all papers, drawings,
        models, data and other material relating to any invention made, developed
        or
        created by him as aforesaid.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        Executive shall, upon the Company's request and without any payment therefor,
        execute any documents necessary or advisable in the opinion of the Company's
        counsel to direct issuance of patents, copyrights and FDA applications or
        approvals of the Company with respect to such inventions or work product
        or
        improvements or enhancements as are to be the Company's exclusive property
        as
        against the Executive under this Paragraph 7 or to vest in the Company title
        to
        such inventions as against the Executive, the expense of securing any such
        patent or copyright, to be borne by the Company.

      

      9.
        Breach
        by Employee.
        Both
        parties recognize that the services to be rendered under this Agreement by
        the
        Executive are special, unique and extraordinary in character, and that in
        the
        event of a breach by Employee of the terms and conditions of the Agreement
        to be
        performed by him, then the Company shall be entitled, if it so elects, to
        institute and prosecute proceedings in any court of competent jurisdiction,
        either in law or in equity, to enforce the specific performance thereof by
        the
        Executive. Without limiting the generality of the foregoing, the parties
        acknowledge that a breach by the Executive of his obligations under Paragraph
        6
        or 7 would cause the Company irreparable harm, that no adequate remedy at
        law
        would be available in respect thereof and that therefore the Company would
        be
        entitled to seek injunctive relief with respect thereto. 

      

      10.
        Arbitration.
        Without
        precluding acting to obtain specific performance and/or injunctive relief
        pursuant to Paragraph 8 above, in the event of any dispute between the parties
        hereto arising out of or relating to this Agreement or the employment
        relationship, including, without limitation, any statutory claims of
        discrimination, between the Company and the Executive (except any dispute
        with
        respect to Paragraphs 6 and 7 hereof), such dispute shall be settled by
        arbitration in Nassau County or New York County, State of New York, or in
        Wyandotte County or the City of Kansas City, State of Kansas, in accordance
        with
        the National Rules for the Resolution of Employment Disputes then in effect
        of
        the American Arbitration Association. The parties hereto agree that the arbitral
        panel shall also be empowered to grant injunctive relief to a party, which
        may
        be included in any award. Judgment upon the award rendered, including injunctive
        relief, may be entered in any court having jurisdiction thereof. Notwithstanding
        anything herein to the contrary, if any dispute arises between the parties
        under
        Paragraphs 6 or 7, neither the Executive nor the Company shall be required
        to
        arbitrate such dispute or claim, but each party shall have the right to
        institute judicial proceedings in any court of competent jurisdiction with
        respect to such dispute or claim. If such judicial proceedings are instituted,
        the parties agree that such proceedings shall not be stayed or delayed pending
        the outcome of any arbitration proceeding hereunder.

      

      11.
        Miscellaneous.

      

      (a)
        Successors;
        Binding Agreement.
        This
        Agreement and the obligations of the Company hereunder and all rights of
        the
        Executive hereunder shall inure to the benefit of the parties hereto and
        their
        respective heirs, personal representatives, successors and assigns, provided,
        however, that the duties of the Executive hereunder are personal to the
        Executive and may not be delegated or assigned by him. By entering into this
        Agreement, the Executive’s prior employment agreement with the company is hereby
        terminated.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)
        Notice.
        All
        notices of termination and other communications provided for in this Agreement
        shall be in writing and shall be deemed to have been duly given when delivered
        by hand, delivered by an express delivery (one day service), delivered by
        telefax and confirmed by express mail or one day express delivery service,
        or
        mailed by United States registered mail, return receipt requested, addressed
        as
        follows:

      

      
        	
                If
                  to the Company:

              
	
                Mediware
                  Information Systems, Inc.

              
	
                11711
                  West 79th
                  Street

              
	
                Lenexa,
                  KS 66214

              
	 
	
                If
                  to the Executive:

              
	
                Mark
                  Williams

              

      

      

      or
        to
        such other address as either party may designate by notice to the other,
        which
        notice shall be deemed to have been given upon receipt.

      

      (c)
        Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Kansas without regard to the conflict of law rules
        thereof.

      

      (d)
        Waivers.
        The
        waiver of either party hereto of any right hereunder or of any failure to
        perform or breach by the other party hereto shall not be deemed a waiver
        of any
        other right hereunder or of any other failure or breach by the other party
        hereto, whether of the same or a similar nature or otherwise. No waiver shall
        be
        deemed to have occurred unless set forth in writing executed by or on behalf
        of
        the waiving party. No such written waiver shall be deemed a continuing waiver
        unless specifically stated therein, and each such waiver shall operate only
        as
        to the specific term or condition waived and shall not constitute a waiver
        of
        such term or condition for the future or as to any act other than that
        specifically waived.

      

      (e)
        Validity.
        The
        invalidity or unenforceability of any provision of this Agreement shall not
        affect the validity or enforceability of any other provision of this Agreement,
        which shall otherwise remain in full force and effect. Moreover, if any one
        or
        more of the provisions contained in this Agreement is held to be excessively
        broad as to duration, scope or activity, such provisions shall be construed
        by
        limiting and reducing them so as to be enforceable to the maximum extent
        compatible with applicable law.

      

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

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (g)
        Entire
        Agreement.
        This
        Agreement (including the applicable restricted stock agreements) sets forth
        the
        entire agreement and understanding of the parties in respect of the subject
        matter contained herein, and supersedes all prior agreements (including the
        prior employment agreement), promises, covenants, arrangements, communications,
        representations or warranties, whether oral or written, by any officer, employee
        or representative of either party in respect of said subject
        matter.

      

      (i)
        Headings
        Descriptive.
        The
        headings of the several paragraphs of this Agreement are inserted for
        convenience only and shall not in any way affect the meaning or construction
        of
        any of this Agreement.

      

      (j)
        Capacity.
        The
        Executive represents and warrants that he is not a party to any agreement
        that
        would prohibit him from entering into this Agreement or performing fully
        his
        obligations hereunder.

      

      IN
        WITNESS WHEREOF, the Company and the Executive have executed this Agreement
        as
        of the date first written above.

      

      

      
        	
                EXECUTIVE:

              	 	
                MEDIWARE
                  INFORMATION SYSTEMS, INC:

              
	 	 	 	 
	 	 	 	 
	
                /s/
                  Mark Williams

              	 	
                By:

              	
                /s/
                  James Burgess

              
	
                Mark
                  Williams

              	 	
                Name:

              	
                James
                  Burgess

              
	 	 	
                Title:

              	
                President
                  & Chief Executive Officer

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