Document:

Exhibit
      10.2

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT (the "Agreement"), dated September 18, 2006 by and between
      Agnes P. Olszewski, Ph.D.(the "Executive") and Pacific Magtron International
      Corporation, Inc., a Nevada corporation (the "Company").

    

    WITNESSETH:

    

    WHEREAS,
      Executive and the Company wish to enter into this agreement to provide for
      Executive's employment by the Company on the terms and subject to the conditions
      set forth herein.

    

    NOW,
      THEREFORE, in consideration of the mutual promises, representations and
      warranties set forth herein, and for other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, the parties hereto,
      intending to be legally bound hereby, agree as follows:

    

     

    1.  Offices
      and Duties.
      The
      Company hereby employs Executive during the Term (as hereinafter defined) to
      serve as the Company’s President and Chief Executive Officer and to perform such
      executive and supervisory duties on behalf of the Company as the Company’s Board
      of Directors may from time to time reasonably direct. During such period as
      James P. Gilligan, Ph.D. is a consultant to or employed by the Company,
      Executive agrees to serve as Co-President with James P. Gilligan. Until such
      time as the Company employs a person to act as a controller or Chief Financial
      Officer, Executive also agrees to serve as the Company’s Acting Chief Financial
      Officer. The Company agrees to employ a person to act as a controller or Chief
      Financial Officer immediately after the Company receives its initial debt or
      equity financing. By its approval of this Agreement, the Company’s Board of
      Directors shall also agree to elect Executive to serve as the Company’s Chairman
      of the Board. Executive hereby accepts such employment and agrees that
      throughout the Term she shall faithfully, diligently and to the best of her
      ability, in furtherance of the business of the Company, perform the duties
      assigned to her or incidental to the offices assumed by her pursuant to this
      Section. Executive shall devote substantially all of her business time and
      attention to the business and affairs of the Company, but Executive shall not
      be
      required to devote any minimum amount of time or report or perform her duties
      hereunder on a fixed or periodic basis, and Executive may engage or participate
      in such other activities incidental to any other employment, occupation or
      business venture or enterprise as do not materially interfere with or compromise
      her ability to perform her duties hereunder. Notwithstanding the foregoing,
      however, until such time as the Company has received debt or equity financing
      aggregating not less than $1,250,000.00, Executive shall not be required to
      work
      on a full-time basis for the Company and may continue to work as a professor
      at
      Seton Hall University and during such period Executive shall be paid at a per
      annum rate equal to seventy-five percent (75%) of the Base Salary and, within
      six (6) months after such financing is received by the Company Executive shall
      cease her teaching activities as presently conducted by her, although Executive
      may continue to teach on less than a full-time basis provided that it does
      not
      materially interfere with or compromise her ability to perform her duties as
      a
      full-time employee of the Company.

     

    2.  Term.
      The
      employment of Executive hereunder shall commence on the date hereof and end
      on
      September 30, 2010, provided, that Executive shall have the right in her sole
      discretion to extend the term for an additional 12 months ending on September
      30, 2011, by notifying the Company in writing as such no later than January
      1,
      2010, subject in all respects to earlier termination upon the terms and
      conditions provided elsewhere herein. The term during which Executive is
      employed hereunder as a full time employee (and not as a consultant) shall
      be
      referred to herein as the “Term”. As used herein, “Termination Date” means the
      last day of the Term.

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    3.  Compensation.

     

    (a)  As
      compensation for her services hereunder, the Company shall pay to Executive
      during the Term:

     

    (i)  a
      base
      salary at the rate of $200,000.00 per annum (the “Base Salary”), subject to the
      provisions of Section 1 above, such Base Salary to be paid in substantially
      equal installments no less often than twice monthly; 

     

    (ii)  a
      bonus
      (the “5% Bonus”) in respect of each Bonus Period (as hereinafter defined),
      payable within ninety (90) days after the end of such Bonus Period, in an amount
      equal to five percent (5%) of (A) for the first three (3) years of this
      Agreement, EBITDA and (B) thereafter Net Income before bonus (as hereinafter
      defined);

     

    (iii)   a
      bonus
      (the “Additional Bonus”) in respect of each Bonus Period, payable within ninety
      (90) days after the end of such Bonus Period, as follows: (A) $75,000.00, if
      Pre-Tax Income for the Bonus Period is between 150% and 200% of the prior fiscal
      year’s Pre-Tax Income; or (B) $100,000.00, if Pre-Tax Income for the Bonus
      Period is between 200% and 250% of the prior fiscal year’s Pre-Tax Income; or
      (C) $200,000.00, if Pre-Tax Income for the Bonus Period is two hundred fifty
      (250%) percent or greater than the prior fiscal year’s Pre-Tax Income; but in no
      event shall the Additional Bonus payable to Executive with respect to any Bonus
      Period exceed five (5%) percent of Pre-Tax Income for such Bonus Period;
      and

     

    (iv)  such
      additional incentive or bonus compensation as the Company’s Board of Directors
      may from time to time determine.

     

    (b)  For
      the
      purposes of paragraph 3(a):

     

    (i)  “Bonus
      Period” is a fiscal year of the Company ending during the Term; and

     

    (ii)  “EBITDA”
      means the Company’s Net Income plus any taxes, amortization and depreciation
      deducted in determining Net Income in accordance with generally accepted
      accounting principals (“GAAP”); Net Income means the Company’s Net Income as
      determined in accordance with GAAP.

     

    The
      determination of EBITDA and Net Income and the 5% Bonus and Additional Bonus
      for
      any Bonus Period shall be determined by the Company’s Board of Directors or the
      Compensation Committee of the Board of Directors in accordance with the
      Company’s audited financial statements, which shall be conclusive and binding
      upon the Company and Executive. 

     

    (c)  The
      Company shall provide major medical, hospitalization, dental and disability
      insurance for the benefit of Executive and her spouse consistent with benefits
      made available to other of the Company’s senior executives, and the Company
      shall pay all premiums and any other costs or expenses incurred to maintain
      such
      policies in effect during the Term. Such coverage shall be provided in any
      event
      not later than the date the Executive becomes a full-time employee of the
      Company in amounts and with coverage reasonably acceptable to
      Executive.

     

    (d)  In
      addition to her Base Salary and other compensation provided herein, Executive
      shall be entitled to participate, to the extent she is eligible under the terms
      and conditions thereof, in any stock, stock option or other equity participation
      plan and any profit-sharing, pension, retirement, insurance, medical service
      or
      other employee benefit plan generally available to the executive officers of
      the
      Company, and to receive any other benefits or perquisites generally available
      to
      the executive officers of the Company pursuant to any employment policy or
      practice, which may be in effect from time to time during the Term.

     

    
      
        
        

      

      
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    (e)  During
      the Term, Executive shall not be entitled to additional compensation for serving
      in any office of the Company (or any subsidiary thereof) to which she is elected
      or appointed, except that, throughout any period or periods during which she
      shall serve as a director of the Company (or such subsidiary), Executive shall
      be entitled to directors’ fees in accordance with the policies and practices of
      the Company (or such subsidiary) then in effect.

     

    4.  Stock
      Options.
      

     

    (a)
       Executive
      shall be an eligible participant under one or more stock option plans adopted
      by
      the Company. 

     

    5.  Expenses.

     

    (a)  The
      Company shall pay directly, or advance funds to Executive or reimburse Executive
      for, all expenses reasonably incurred by her in connection with the performance
      of her duties as an employee or consultant hereunder, upon the submission to
      the
      Company of itemized expense reports, receipts or vouchers in accordance with
      its
      then customary policies and practices.

     

    (b)  Until
      such time as Executive commences full time employment pursuant to this
      Agreement, the Company shall grant Executive a monthly allowance in an amount
      sufficient to pay the costs of her personal automobile.

     

    6.  Location;
      Office.
      Except
      for routine travel and temporary accommodation reasonably required to perform
      her services hereunder, Executive shall not be required to perform her services
      hereunder at any location other than the principal executive office of the
      Company, which office shall be located throughout the Term, at a location within
      a distance of 30 miles from 3 Oak Street, Teaneck, New Jersey on the date
      hereof, or at such other office or site to which Executive may, in her sole
      discretion, consent; nor shall he be required to relocate her principal
      residence to, or otherwise to reside at, any location specified by the Company.
      The Company shall provide Executive with suitable office space, furnishings
      and
      equipment, secretarial and clerical services and such other facilities and
      office support as Executive may reasonably request.

     

    7.  Vacation.
      Executive shall be entitled to four (4) weeks paid vacation during each year
      of
      her full time employment hereunder, such vacation to be taken at such time
      or
      times as shall be agreed upon by Executive and the Company. Vacation time shall
      be cumulative from year to year, except that Executive shall not be entitled
      to
      take more than eight weeks vacation during any consecutive 12-month period
      during the Term.

     

    8.  Key-Person
      Insurance.
      The
      Company shall have the right from time to time to purchase, increase, modify
      or
      terminate insurance policies on the life of Executive for the benefit of the
      Company in such amounts as the Company may determine in its sole discretion.
      In
      connection therewith, Executive shall, at such time or times and at such place
      or places as the Company may reasonably direct, submit herself to such physical
      examinations and execute and deliver such documents as the Company may deem
      necessary or appropriate.

     

    
      
        
        

      

      
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    9.  Trade
      Secrets.
      

     

    (a) Executive
      shall hold in a fiduciary capacity for the benefit of the Company all
      confidential or proprietary information relating to or concerned with the
      Company or its Affiliates (as defined below) or its products or services,
      prospective products or services, operations, business and affairs
      (“Confidential Information”), and shall not, at any time hereafter, use or
      disclose any Confidential Information to any person other than to the Company
      or
      its designees or except as may otherwise be required in connection with the
      business and affairs of the Company, and in furtherance of the foregoing
      Executive agrees that:

    

    (i)     Executive
      will receive, maintain and hold Confidential Information in strict confidence
      and will use the same level of care in safeguarding it that she uses with her
      own confidential material of a similar nature;

    

    (ii)      Executive
      will take all such steps as may be reasonably necessary to prevent the
      disclosure of Confidential Information; and

    

    (iii)      Executive
      will not utilize Confidential Information without first having obtained the
      Company’s consent to such utilization.

    

    “Affiliate”
      of
      a
      Person means another Person directly or indirectly controlling, controlled
      by,
      or under common control with, such Person; for this purpose, “control” of a
      Person means the power (whether or not exercised) to direct the policies,
      operations or activities of such Person by virtue of the ownership of, or right
      to vote or direct the manner of voting of, securities of such Person, or
      pursuant to agreement or law or otherwise. The
      term
“Person” includes without limitation a natural person, corporation, joint stock
      company, limited liability company, partnership, joint venture, association,
      trust, governmental authority, or any group of the foregoing acting in
      concert.

    

    (b)     The
      commitments set forth in paragraph 9(a) shall not extend to any portion of
      Confidential Information:

    

    (i)     that
      is
      generally available to the public;

    

    (ii)     that
      was
      not acquired, directly or indirectly and/or in any manner, from the Company
      and
      which Executive lawfully had in her possession prior to the date of this
      Agreement; or

    

    (iii)     that,
      hereafter, through no act or omission on the part of the Executive, becomes
      information generally available to the public.

    

    (c)      At
      any
      time upon written request by the Company (i) the Confidential Information,
      including any copies, shall be returned to the Company, and (ii) all documents,
      drawings, specifications, computer software, and any other material whatsoever
      in the possession of the Executive that relates to such Confidential
      Information, including all copies and/or any other form of reproduction and/or
      description thereof made by Executive shall, at the Company’s option, be
      returned to the Company or destroyed.

    

       (d)      In
      the
      event that Executive
      becomes
      legally compelled (by deposition, interrogatory, request of documents, subpoena,
      civil investigative demand or similar process) to disclose any of the
      Confidential Information, the Executive
      shall
      provide the Company with prompt prior written notice of such requirement so
      that
      it (or its designees) may seek a protective order or other appropriate remedy
      and/or waive compliance with the terms of this Agreement. In the event that
      such
      protective order or other remedy is not obtained, or the Company waives
      compliance with the provisions hereof, the Executive
      agrees
      to furnish only such portion of the Confidential Information which is legally
      required to be furnished.

     

    
      
        
        

      

      
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    10.  Intellectual
      Property.
      Any
      idea, invention, design, process, system, procedure, improvement, development
      or
      discovery conceived, developed, created or made by Executive, alone or with
      others, during the Term and related to the business of the Company, whether
      or
      not patentable or registrable, shall become the sole and exclusive property
      of
      the Company. Executive shall disclose the same promptly and completely to the
      Company and shall, during the Term or thereafter, (i) execute all documents
      requested by the Company for vesting in the Company the entire right, title
      and
      interest in and to the same, (ii) execute all documents requested by the Company
      for filing and procuring such applications for patents, trademarks, service
      marks or copyrights as the Company, in its sole discretion, may desire to
      prosecute, and (iii) give the Company all assistance it may reasonably require,
      including the giving of testimony in any Proceeding (as hereinafter defined
      in
      Section 34), in other to obtain, maintain and protect the Company’s right
      therein and thereto.

     

    11.  No
      Competition.

     

    (a)   During
      the Restricted Period (as defined below), Executive shall not, directly or
      indirectly:

     

    (i)  own,
      control, manage, operate, participate or invest in, or otherwise be connected
      with, in any manner, any business activity, venture or enterprise which is
      engaged in any business in the United States in which the Company (or any
      subsidiary thereof) is currently engaged or is engaged at the time of
      termination of Executive’s employment hereunder, or

     

    (ii)  for
      herself or on behalf of any other person, employ or engage any person who at
      the
      time shall have been within the preceding 12-month period an employee of the
      Company (or such subsidiary) or contact any supplier, customer or employee
      of
      the Company (or such subsidiary) for the purpose of soliciting or diverting
      any
      supplier, customer or employee from the Company (or such
      subsidiary).x

     

    (b)  The
      provisions of Section 11(a) notwithstanding, Executive may invest her funds
      in
      securities of an issuer if the securities of such issuer are listed for trading
      on a registered securities exchange or actively traded in an over-the-counter
      market and Executive’s holdings therein represent less than 5% of the total
      number of shares or principal amount of the securities of such issuer
      outstanding.

     

    (c)  Executive
      acknowledges that the provisions of this Section, and the period of time,
      geographic area and scope and type of restrictions on her activities set forth
      herein, are reasonable and necessary for the protection of the
      Company.

     

    (d)   “Restricted
      Period” shall mean the period commencing on the date hereof and ending September
      30, 2010; provided, however, that if Executive has exercised her option to
      extend the Term to September 30, 2011 in accordance with Section 2 hereof,
      the
      Restricted Period shall end September 30, 2012.

     

    12.  Termination
      Upon Disability.
      In the
      event that the Board of Directors determines that the Executive is unable to
      perform her duties hereunder by reason of any disability or incapacity (due
      to
      any physical or mental injury, illness or defect) for an aggregate of 180 days
      in any consecutive 12-month period, the Company shall have the right to
      terminate Executive’s employment hereunder within 60 days after the 180th day of
      her disability or incapacity by giving Executive notice to such effect at least
      30 days prior to the date of termination set forth in such notice, and on such
      date such employment shall terminate. The Board of Directors’ determination
      shall be made after due inquiry, on the basis of convincing evidence presented
      in at least two medical opinions rendered by reputable physicians with
      experience in diagnosing and treating the condition described in the
      opinion.

     

    
      
        
        

      

      
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    13.  Termination
      for Cause.

     

    (a)  In
      addition to any other rights or remedies provided by law or in this Agreement,
      the Company may terminate Executive’s employment under this Agreement
      if:

     

    (i)  Executive
      is convicted of, or enters a plea of guilty or nolo
      contendere
      (which
      plea is not withdrawn prior to its approval by the court) to, a felony offense
      and either Executive fails to perfect an appeal of such conviction prior to
      the
      expiration of the maximum period of time within which, under applicable law
      or
      rules of court, such appeal may be perfected or, if Executive does perfect
      such
      an appeal, her conviction of a felony offense is sustained on appeal;
      or

     

    (ii)  the
      Company’s Board of Directors determines, after due inquiry, based on convincing
      evidence, that Executive has:

     

    
      	 	
              (A)

            	
              committed
                fraud against, or embezzled or misappropriated funds or other assets
                of,
                the Company (or any subsidiary
                thereof);

            

    

     

    
      	 	
              (B)

            	
              violated,
                or caused the Company (or any subsidiary thereof) or any officer,
                employee
                or other agent thereof, or any other person to violate, any material
                law,
                regulation or ordinance or any material rule, regulation, policy
                or
                practice established by the Company’s Board of
                Directors;

            

    

     

    
      	 	
              (C)

            	
              willfully,
                or because of gross or persistent negligence failed properly to perform
                her material duties hereunder.

            

    

     

    and
      that,
      in the case of any violation or failure referred to in clause (B) or (C) of
      this
      paragraph (ii) of Section 13(a), such violation or failure has caused, or is
      reasonably likely to cause, the Company to suffer or incur a substantial
      casualty, loss, penalty, expense or other liability or cost.

     

    (b)  The
      Company may effect such termination for cause by giving Executive notice to
      such
      effect, setting forth in reasonable detail the factual basis for such
      termination, at least ten (10) days prior to the date of termination set forth
      therein; provided
      however
      that
      Executive may avoid such termination if Executive, prior to the date of
      termination set forth in such notice, explains to the reasonable satisfaction
      of
      the Company’s Board of Directors why the facts relied upon by the Company in
      terminating Executive’s employment do not constitute a For Cause Event (as
      defined below).

     

    (c)  In
      making
      any determination pursuant to Section 13(a) as to the occurrence of any act
      or
      event described in clauses (A) to (C) of paragraph (ii) thereof (each, a “For
      Cause Event”), each of the following shall constitute convincing evidence of
      such occurrence:

     

    (i)  if
      Executive is made a party to, or target of, any Proceeding arising under or
      relating to any For Cause Event, Executive’s failure to defend against such
      Proceeding or to answer any complaint filed against him therein, or to deny
      any
      claim, charge, averment, or allegation thereof asserting or based upon the
      occurrence of a For Cause Event;

     

    
      
        
        

      

      
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    (ii)  any
      judgment, award, order, decree or other adjudication or ruling in any such
      Proceeding finding or based upon the occurrence of a For Cause Event;
      or

     

    (iii)  any
      settlement or compromise of, or consent decree issued in, any such Proceeding
      in
      which Executive expressly admits the occurrence of a For Cause
      Event;

     

    provided
      that
      none of the foregoing shall be dispositive or create an irrebuttable presumption
      of the occurrence of such For Cause Event; and provided
      further
      that the
      Company’s Board of Directors may rely on any other factor or event as convincing
      evidence of the occurrence of a For Cause Event.

     

    (d)  In
      determining and assessing the detrimental effect of any For Cause Event on
      the
      Company and whether such For Cause Event warrants the termination of Executive’s
      employment hereunder, the Company’s Board of Directors shall take the following
      factors, to the extent applicable and material, into account:

     

    (i)  whether
      the Company’s Board of Directors directed or authorized Executive to take, or to
      omit to take, any action involved in such For Cause Event, or approved,
      consented to or acquiesced in her taking or omitting to take such
      action;

     

    (ii)  any
      award
      of damages, penalty or other sanction, remedy or relief granted or imposed
      in
      any Proceeding based upon or relating to such For Cause Event, and whether
      such
      sanction, remedy or relief is sufficient to recompense the Company or any other
      injured person, or to prevent or to deter the recurrence of such For Cause
      Event;

     

    (iii)  whether
      any lesser sanction would be appropriate and effective; and

     

    (iv)  any
      adverse effect that the loss of Executive’s services would have, or be
      reasonably likely to have, upon the Company.

     

    14.  Termination
      by Executive for Good Reason.
      In
      addition to any other rights or remedies provided by law or in this Agreement,
      Executive may terminate her employment hereunder:

     

    (i)  if
      (A)
      the Company violates, or fails to perform or satisfy any material covenant,
      condition or obligation required to be performed or satisfied by it hereunder
      or, (B) as a result of any action or failure to act by the Company, there is
      a
      material change in the nature or scope of the duties, obligations, rights or
      powers of Executive’s employment, by giving the Company notice to such effect,
      setting forth in reasonable detail the factual basis for such termination,
      at
      least ten (10) days prior to the date of termination set forth therein;
provided
      however
      that the
      Company may avoid such termination if it, prior to the date of termination
      set
      forth in such notice, cures or explains to the reasonable satisfaction of
      Executive the factual basis for termination set forth therein; or

     

    (ii)  if
      a
      Change of Control (as hereinafter defined) occurs, by giving the Company notice
      to such effect within ninety (90) days after the occurrence of such Change
      of
      Control, setting forth the event or circumstance constituting such Change of
      Control, such termination to be effective upon the date of termination, not
      more
      than thirty (30) days after the date of such notice, set forth therein or,
      if no
      such date is set forth therein, immediately upon delivery of such notice to
      the
      Company.

     

    15.  Voluntary
      Termination.
      

     

    (a)   In
      addition to any other rights or remedies provided by law or in this Agreement,
      from and after the date hereof, Executive may terminate her employment hereunder
      by giving the Company written notice to such effect at least one hundred and
      eighty (180) days prior to the date of termination set forth
      therein.

     

    
      
        
        

      

      
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    16.  Compensation
      and Benefits upon Termination.
      

     

    (a)  Upon
      termination of Executive’s employment hereunder, she shall be entitled to
      receive, in any case, any Base Salary pursuant to Section 3(a)(i) accrued but
      unpaid to the Termination Date. Any amount payable to Executive under this
      subparagraph shall be paid promptly, and in any event within thirty (30) days
      after the Termination Date.

     

    (b)  If
      Executive’s employment is terminated as a result of a “For Cause Event” pursuant
      to Section 13, except for the payment of any amount required to be made by
      Section 16(a), from and after the Termination Date, the Company shall have
      no
      further obligation to Executive hereunder, including without limitation any
      obligation pursuant to Section 18.

     

    (c)  If
      (i)
      this Agreement terminates upon its scheduled expiration date (i.e. September
      30,
      2010 or, or, if the Executive has exercised his option to extend the Term in
      accordance with Section 2 hereof, September 30, 2011); or (ii) the Executive
      voluntarily terminates her employment pursuant to Section 15(a), Executive
      shall, at the option of either the Company or Executive in the case of clause
      (i) or at the Company’s option in the case of clause (ii), for a period of up to
      one (1) year thereafter act as a consultant to the Company pursuant to which
      he
      shall make himself reasonably available to assist the Company for no more than
      20 hours per month, including being available via telephone to consult with
      respect to the day-to-day operations of the Company, its finances and financial
      condition, mergers and acquisitions, short-term and long-range business
      strategies, industry trends and other business issues. In consideration for
      performing these services, Executive shall be paid at a per annum rate equal
      to
      fifty percent (50%) of the Base Salary, such per annum amount to be paid in
      substantially equal installments no less often than twice monthly. 

     

    (d)   If
      the
      Executive’s employment (but not consultancy) is terminated (i) by her pursuant
      to Section 14(i); or (ii) by the Company other than as a result of a “For Cause
      Event” pursuant to Section 13; or (iii) as a result of the death of the
      Executive, she shall be entitled to receive an amount equal to the product
      of
      the Base Salary multiplied by 3 (or $600,000). Notwithstanding the foregoing,
      if
      the Executive’s employment (but not consultancy) is terminated by the Company
      after a Change of Control has occurred for any reason other than as a result
      of
      a “For Cause Event” pursuant to Section 13, she shall be entitled to receive,
      upon the terms and subject to the conditions set forth in Section 17, the
      Parachute Amount (as hereinafter defined in Section 17). Any amount payable
      to
      Executive under this subparagraph shall be paid promptly, and in any event
      within thirty (30) days after the Termination Date.

     

    (e)  If
      the
      Executive’s employment (but not consultancy) terminates as a result of a Change
      of Control pursuant to Section 14(ii), she shall be entitled to receive, upon
      the terms and subject to the conditions set forth in Section 17, the Parachute
      Amount. Any amount payable to Executive under this subparagraph shall be paid
      promptly, and in any event within thirty (30) days after the Termination Date.
      

     

    (f)  If
      the
      Executive’s employment is terminated by her pursuant to Section 14(i) or 14(ii)
      of this Agreement, or by the Company other than as a result of a “For Cause
      Event” pursuant to Section 13, the Executive shall be entitled for the two (2)
      year period following the Termination Date, or if the Executive voluntarily
      terminates her employment pursuant to Section 15(a) of this Agreement, the
      Executive shall be entitled for the one (1) year period following the
      Termination Date, to maintain an office either at the Company’s premises
      comparable in size and location to the office maintained by Executive prior
      to
      the Termination Date and receive secretarial and clerical services, all at
      the
      Company’s expense, or, at Executive’s option, if the Company is not maintaining
      such offices at its place of business at which Executive performed her services
      at the Termination Date, then the Company shall reimburse the Executive for
      the
      cost of her maintaining a comparable office, secretarial and clerical services
      at such other location selected by Executive. If the Executive’s employment is
      terminated by her pursuant to Section 14(i) or 14(ii) of this Agreement, or
      by
      the Company other than as a result of a “For Cause Event” pursuant to Section
      13, or if the Executive voluntarily terminates her employment pursuant to
      Section 15(a) of this Agreement, the Company shall for the two (2) year period
      following the Termination Date maintain and pay for Executive and her family,
      or
      reimburse Executive for the cost of medical, dental, and hospitalization
      benefits comparable to such benefits maintained by the Company during the twelve
      (12) months prior to the Termination Date.

     

    
      
        
        

      

      
        8

        
          

        

      

       

    

     

    (g)       Executive
      shall have no obligation hereunder to seek or to accept any other employment
      after the Termination Date or otherwise to mitigate the payments required to
      be
      made by this Section. No compensation or other amount received or receivable
      by
      Executive on account of any employment or engagement after the Termination
      Date
      shall be offset against or deducted from any payment required to be made by
      this
      Section 16 or Section 17.

     

    (h)        
      In
      the
      event the Company terminates the Executive other than as a result of a “For
      Cause Event” pursuant to Section 13, or if the Executive’s employment is
      terminated by him pursuant to Section 14(i) or 14(ii) of this Agreement,
      Executive shall receive as her sole and exclusive remedy and damages the
      payments he would otherwise be entitled to receive under the applicable
      provisions of this Section 16 (and, if applicable, the other benefits provided
      under clause (g) of this Section 16). 

     

    (i)         
      In
      the
      event Executive continues as a consultant to the Company pursuant to
      subparagraphs (c), (f)(i) or (f)(ii) of this Section16 and the consulting
      relationship is subsequently terminated (i) by the Company for any reason other
      than a For Cause Event; or (ii) by the Executive pursuant to Section 14(i);
      or
      (iii) as a result of the death of the Executive, the Company shall pay Executive
      (or her estate) any remaining amounts that would have otherwise been paid to
      her
      had she remained as a consultant to the end of the applicable consultancy term.
      Any amount payable to Executive (or her estate) under this subparagraph shall
      be
      paid promptly, and in any event within thirty (30) days after the date the
      Executive’s position as a consultant is terminated.

     

    17.  Change
      of Control.

     

    (a)  For
      the
      purposes of this Section 17:

     

    (i)  The
“Act”
      is the Securities Exchange Act of 1934, as amended.

     

    (ii)  A
      “person” includes a “group” within the meaning of Section 13(d)(3) of the
      Act.

     

    (iii)  “Control”
      is used herein as defined in Rule 12b-2 under the Act.

     

    (iv)  “Beneficially
      owns” and “acquisition” are used herein as defined in Rules 13d-3 and 13d-5,
      respectively, under the Act.

     

    (v)  “Non-Affiliated
      Person” means any person, other than Executive, an employee stock ownership
      trust of the Company (or any trustee thereof for the benefit of such trust),
      or
      any person controlled by Executive, the Company or such a trust.

     

    (vi)  “Voting
      Securities” includes Common Stock and any other securities of the Company that
      ordinarily entitle the holders thereof to vote, together with the holders of
      Common Stock or as a separate class, with respect to matters submitted to a
      vote
      of the holders of Common Stock, but securities of the Company as to which the
      consent of the holders thereof is required by applicable law or the terms of
      such securities only with respect to certain specified transactions or other
      matters, or the holders of which are entitled to vote only upon the occurrence
      of certain specified events (such as default in the payment of a mandatory
      dividend on preferred stock or a scheduled installment of principal or interest
      of any debt security), shall not be Voting Securities.

     

    
      
        
        

      

      
        9

        
          

        

      

       

    

     

    (vii)  “Right”
      means any option, warrant or other right to acquire any Voting Security (other
      than such a right of conversion or exchange included in a Voting
      Security).

     

    (viii)  The
      “Code” is the Internal Revenue Code of 1986, as amended.

     

    (ix)  “Base
      amount,” “present value” and “parachute payment” are used herein as defined in
      Section 280G of the Code.

     

    (b)  A
“Change
      of Control” occurs when, without the consent of Executive:

     

    (i)  a
      Non-Affiliated Person acquires control of the Company;

     

    (ii)  upon
      an
      acquisition of Voting Securities or Rights by a Non-Affiliated Person from
      persons other than the Executive (or persons controlled by the Executive) or
      any
      change in the number or voting power of outstanding Voting Securities, such
      Non-Affiliated Person beneficially owns Voting Securities or Rights entitling
      such person to cast a number of votes (determined in accordance with Section
      16(g)) equal to or greater than 25% of the sum of (A) the number of votes that
      may be cast by all other holders of outstanding Voting Securities and (B) the
      number of votes that may be cast by such Non-Affiliated Person (determined
      in
      accordance with Section 16(g)); or

     

    (iii)  upon
      any
      change in the membership of the Company’s Board of Directors, a majority of the
      directors are persons who are not nominated or appointed by the Company’s Board
      of Directors as constituted prior to such change.

     

    (c)  The
      “Parachute Amount” to which Executive shall be entitled pursuant to Section
      16(d) shall equal 2.99 multiplied by the Executive’s base amount.

     

    (d)  It
      is
      intended that the present value of any payments or benefits to Executive,
      whether hereunder or otherwise, that are includible in the computation of the
      Parachute Amount shall not exceed 2.99 times the Executive’s base amount.
      Accordingly, if Executive receives any payment or benefit from the Company
      prior
      to payment of the Parachute Amount which, when added to the Parachute Amount,
      would subject any of the payments or benefits to Executive to the excise tax
      imposed by Section 4999 of the Code, the Parachute Amount shall be reduced
      by
      the least amount necessary to avoid such tax. The Company shall have no
      obligation hereunder to make any payment or provide any benefit to Executive
      after the payment of the Parachute Amount which would subject any of such
      payments or benefits to the excise tax imposed by Section 4999 of the
      Code.

     

    (e)  Any
      other
      provision hereof notwithstanding, Executive may (but only to the extent not
      prohibited by the United States securities laws, as then amended), prior to
      her
      receipt of the Parachute Amount pursuant to Section 17(d), waive the payment
      thereof, or, after her receipt of the Parachute Amount thereunder, treat some
      or
      all of such amount as a loan from the Company which Executive shall repay to
      the
      Company within 180 days after the receipt thereof, together with interest
      thereon at the rate provided in Section 7872 of the Code, in either case, by
      giving the Company notice to such effect.

     

    
      
        
        

      

      
        10

        
          

        

      

       

    

     

    (f)  Any
      determination of the Executive’s base amount, the Parachute Amount, any
      liability for excise tax under Section 4999 of the Code or other matter required
      to be made pursuant to this Section 17, shall be made by the Company’s
      regularly-engaged independent certified public accountants, whose determination
      shall be conclusive and binding upon the Company and Executive; provided
      that
      such accountants shall give to Executive, on or before the date on which payment
      of the Parachute Amount or any later payment or benefit would be made, a notice
      setting forth in reasonable detail such determination and the basis therefor,
      and stating expressly that Executive is entitled to rely thereon.

     

    (g)   The
      number of votes that may be cast by holders of Voting Securities or Rights
      upon
      the issuance or grant thereof shall be deemed to be the largest number of votes
      that may be cast by the holders of such securities or the holders of any other
      Voting Securities into which such Voting Securities or Rights are convertible
      or
      for which they are exchangeable or exercisable, determined as though such Voting
      Securities or Rights were immediately convertible, exchangeable or exercisable
      and without regard to any anti-dilution or other adjustments provided for
      therein.

     

    (h)  For
      purposes of this Agreement, Executive shall be deemed to have consented to
      a
      Change of Control only if (i) Executive, James Gilligan and members of their
      immediate families in the aggregate beneficially own in excess of 50% of the
      Company’s Voting Securities and (ii) Executive votes in favor of the Change in
      Control in his capacity as a shareholder of the Company.

     

    18.  Other
      Termination Provisions.

     

    (a)  Throughout
      the 10-year period following the Termination Date, the Company shall indemnify
      Executive, and hold her harmless from, any loss, damages, liability, obligation
      or expense that he may suffer or incur in connection with any claim made or
      Proceeding commenced during such period relating to her service as a director,
      officer, employee or agent of the Company (or any subsidiary thereof) to the
      same extent and in same manner as the Company shall be obligated so to indemnify
      Executive immediately prior to the Termination Date; provided
      that, if
      during such 10-year period the Company adopts or assumes any indemnification
      policy or practice with respect to its directors, officers, employees or agents
      that is more favorable than that in effect on the Termination Date, Executive
      shall be entitled to such more favorable indemnification.

     

    (b)  Throughout
      the 10-year period following the Termination Date, the Company shall maintain
      for the benefit of Executive directors’ and officers’ liability insurance (on a
“claims made” basis) providing coverage at least as favorable to Executive
      (including with respect to limits of liability, exclusions, and deductible
      and
      retention amounts) as that in effect on the Termination Date.

     

    19.  Limitation
      of Authority.
      Except
      as expressly provided herein, no provision hereof shall be deemed to authorize
      or empower either party hereto to act on behalf of, obligate or bind the other
      party hereto.

     

    20.  Notices.
      Any
      notice or demand required or permitted to be given or made hereunder to or
      upon
      either party hereto shall be deemed to have been duly given or made for all
      purposes if (a) in writing and sent by (i) messenger or an overnight courier
      service against receipt, or (ii) certified or registered mail, postage paid,
      return receipt requested, or (b) sent by telegram, telecopy, telex or similar
      electronic means, provided
      that a
      written copy thereof is sent on the same day by postage-paid first-class mail,
      to such party at the following address:

    
       

      
        	
                to
                  the Company at: 

              	
                at
                  its principal executive offices

              
	 	 
	
                to
                  Executive at:

              	
                3
                  Oak Street

              
	 	
                Teaneck,
                  New Jersey

              

      

       

    

     

    
      
        
        

      

      
        11

        
          

        

      

       

    

     

     

    
      	
              with
                a copy to:

            	
              Feder,
                Kaszovitz, Isaacson, Weber, 

            
	 	
              Skala,
                Bass & Rhine LLP

            
	 	
              23rd
                Floor

            
	 	
              750
                Lexington Avenue

            
	 	
              New
                York, New York 10022-1200

            
	 	
              Attn:
                Geoffrey A. Bass, Esq.

            
	 	
              Fax:
                (212) 888-7776

            

    

    

    or
      such
      other address as either party hereto may at any time, or from time to time,
      direct by notice given to the other party in accordance with this Section.
      The
      date of giving or making of any such notice or demand shall be, in the case
      of
      clause (a) (i), the date of the receipt; in the case of clause (a) (ii), five
      business days after such notice or demand is sent; and, in the case of clause
      (b), the business day next following the date such notice or demand is
      sent.

     

    21.  Amendment.
      Except
      as otherwise provided herein, no amendment of this Agreement shall be valid
      or
      effective, unless in writing and signed by or on behalf of the parties
      hereto.

     

    22.  Waiver.
      No
      course of dealing or omission or delay on the part of either party hereto in
      asserting or exercising any right hereunder shall constitute or operate as
      a
      waiver of any such right. No waiver of any provision hereof shall be effective,
      unless in writing and signed by or on behalf of the party to be charged
      therewith. No waiver shall be deemed a continuing waiver or waiver in respect
      of
      any other or subsequent breach or default, unless expressly so stated in
      writing.

     

    23.  Governing
      Law.
      This
      Agreement shall be governed by, and interpreted and enforced in accordance
      with,
      the laws of the State of New Jersey without regard to principles of choice
      of
      law or conflict of laws.

     

    24.  Remedies.
      In the
      event of any actual or prospective breach or default by either party hereto,
      the
      other party shall be entitled to equitable relief, including remedies in the
      nature of rescission, injunction and specific performance. All remedies
      hereunder are cumulative and not exclusive, and nothing herein shall be deemed
      to prohibit or limit either party from pursuing any other remedy or relief
      available at law or in equity for such actual or prospective breach or default,
      including the recovery of damages.

     

    25.  Severability.
      The
      provisions hereof are severable and in the event that any provision of this
      Agreement shall be determined to be invalid or unenforceable in any respect
      by a
      court of competent jurisdiction, the remaining provisions hereof shall not
      be
      affected, but shall, subject to the discretion of such court, remain in full
      force and effect, and any invalid or unenforceable provision shall be deemed,
      without further action on the part of the parties hereto, amended and limited
      to
      the extent necessary to render the same valid and enforceable.

     

    26.  Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and which together shall constitute one and the same
      agreement.

     

    27.  Assignment.
      This
      Agreement, and each right, interest and obligation hereunder, may not be
      assigned by either party hereto without the prior written consent of the other
      party hereto, and any purported assignment without such consent shall be void
      and without effect, except that this Agreement shall be assigned to, and assumed
      by, any person with or into which the Company merges or consolidates, or which
      acquires all or substantially all of its assets, or which otherwise succeeds
      to
      and continues the Company’s business substantially as an entirety. Except as
      otherwise expressly provided herein or required by law, Executive shall not
      have
      any power of anticipation, assignment or alienation of any payments required
      to
      be made to him hereunder, and no other person may acquire any right or interest
      in any thereof by reason of any purported sale, assignment or other disposition
      thereof, whether voluntary or involuntary, any claim in a bankruptcy or other
      insolvency proceeding against Executive, or any other ruling, judgment, order,
      writ or decree.

     

    
      
        
        

      

      
        12

        
          

        

      

       

    

     

    28.  Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns. This Agreement is not
      intended, and shall not be deemed, to create or confer any right or interest
      for
      the benefit of any person not a party hereto.

     

    29.  Titles
      and Captions.
      The
      titles and captions of the Articles and Sections of this Agreement are for
      convenience of reference only and do not in any way define or interpret the
      intent of the parties or modify or otherwise affect any of the provisions
      hereof.

     

    30.  Grammatical
      Conventions.
      Whenever the context so requires, each pronoun or verb used herein shall be
      construed in the singular or the plural sense and each capitalized term defined
      herein and each pronoun used herein shall be construed in the masculine,
      feminine or neuter sense.

     

    31.  References.
      The
      terms "herein," "hereto," "hereof," "hereby," and "hereunder," and other terms
      of similar import, refer to this Agreement as a whole, and not to any Article,
      Section or other part hereof.

     

    32.  No
      Presumptions.
      Each
      party hereto acknowledges that it has had an opportunity to consult with counsel
      and has participated in the preparation of this Agreement. No party hereto
      is
      entitled to any presumption with respect to the interpretation of any provision
      hereof or the resolution of any alleged ambiguity herein based on any claim
      that
      the other party hereto drafted or controlled the drafting of this
      Agreement.

     

    33.  Certain
      Definitions.
      As used
      herein:

     

    (a)  “Person”
      includes without limitation a natural person, corporation, joint stock company,
      limited liability company, partnership, joint venture, association, trust,
      government or governmental authority, agency or instrumentality, or any group
      of
      the foregoing acting in concert.

     

    (b)  A
      “Proceeding” is any suit, action, arbitration, audit, investigation or other
      proceeding before or by any court, magistrate, arbitration panel or other
      tribunal, or any governmental agency, authority or instrumentality of competent
      jurisdiction.

     

    34.  Entire
      Agreement.
      This
      Agreement embodies the entire agreement of the parties hereto with respect
      to
      the subject matter hereof and supersedes any prior agreement, commitment or
      arrangement relating thereto, written or oral, if any, which shall terminate
      immediately upon the commencement of the Term, except that each party thereto
      shall (a) remain required to perform any act and to satisfy any obligation
      or
      condition that such party is required to perform or satisfy thereunder with
      respect to any event occurring or circumstance existing prior to the
      commencement of the Term hereof (including without limitation the payment or
      delivery to Executive of any compensation, reimbursable expense or employee
      benefit or perquisite to which he may be entitled, but which has not yet been
      paid to him, on account of her employment under any such prior arrangement)
      that
      has not been so performed or satisfied, and (b) retain her or its right under
      any such prior assignment to assert or to allege any claim or cause of action
      relating to or based upon, or otherwise to enforce, any provision thereof with
      respect to any event occurring or circumstance existing during the term
      thereof.

     

    
      
        
        

      

      
        13

        
          

        

      

       

    

     

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

    
      	 	 	 
	 	
              THE
                COMPANY:

               

              PACIFIC
                MAGTRON INTERNATIONAL CORPORATION, INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Anthony T. Lee
	 	
              
                

              

              Name:
                 Anthony
                T. Lee

              Title:
                 Chief
                Financial Officer

            

   

    
      
        	 	 	 
	 	
                
                  EXECUTIVE:

                

              
	 
 	 
 	 
 
	
              	       	/s/
                Agnes P. Olszewski
	 	
                
                  
Agnes
                  P. Olszewski, Ph.D.

              

      

    

     

    
      
        
        

      

      
        14Exhibit
      10.3

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT (the "Agreement"), dated September 18, 2006 by and between
      James P. Gilligan, Ph.D.(the "Executive") and Pacific Magtron International
      Corporation, Inc., a Nevada corporation (the "Company").

    

    WITNESSETH:

    

    WHEREAS,
      Executive and the Company wish to enter into this agreement to provide for
      Executive's employment by the Company on the terms and subject to the conditions
      set forth herein.

    

    NOW,
      THEREFORE, in consideration of the mutual promises, representations and
      warranties set forth herein, and for other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, the parties hereto,
      intending to be legally bound hereby, agree as follows:

     

    1.  Offices
      and Duties.
      The
      Company hereby employs Executive during the Term (as hereinafter defined) to
      serve as the Company’s Co-President and Chief Operating Officer and to perform
      such executive and supervisory duties on behalf of the Company as the Company’s
      Board of Directors may from time to time reasonably direct. During such period
      as Agnes P. Olszewski, Ph.D. is a consultant to or employed by the Company,
      Executive agrees to serve as Co-President with Agnes P. Olszewski. Executive
      hereby accepts such employment and agrees that throughout the Term he shall
      faithfully, diligently and to the best of his ability, in furtherance of the
      business of the Company, perform the duties assigned to his or incidental to
      the
      offices assumed by him pursuant to this Section. Executive shall devote
      substantially all of his business time and attention to the business and affairs
      of the Company, but Executive shall not be required to devote any minimum amount
      of time or report or perform his duties hereunder on a fixed or periodic basis,
      and Executive may engage or participate in such other activities incidental
      to
      any other employment, occupation or business venture or enterprise as do not
      materially interfere with or compromise his ability to perform his duties
      hereunder. Notwithstanding the foregoing, however, the commencement date of
      the
      Term (the “Commencement Date”) shall be deferred until the date that is not more
      than six (6) months following the date on which the Company has received debt
      or
      equity financing aggregating not less than $2,500,000.00, and until such date
      Executive shall serve as a consultant to the Company at an hourly rate of
      $120.00 per hour and shall be permitted to continue his full time employment
      with Unigene Laboratories Inc. As a consultant to the Company, Executive shall
      not be required to devote any minimum number of hours to the business of the
      Company, and he shall coordinate his schedule and responsibilities with Dr.
      Olszewski, the President of the Company. The Company shall give notice to
      Executive of the date on which it has received such financing aggregating not
      less than $2,500,000.00, and Executive shall advise the Company of the date
      on
      which he intends to commence his full-time employment under this Agreement,
      which date shall be not less than six (6) months after the date of the Company’s
      notice to him.

     

    2.  Term.
      The
      employment of Executive hereunder shall commence on the Commencement Date and
      end on September 30, 2010, provided, that Executive shall have the right in
      his
      sole discretion to extend the term for an additional 12 months ending on
      September 30, 2011, by notifying the Company in writing as such no later than
      January 1, 2010, subject in all respects to earlier termination upon the terms
      and conditions provided elsewhere herein. The term during which Executive is
      employed hereunder as a full time employee (and not as a consultant) shall
      be
      referred to herein as the “Term”. As used herein, “Termination Date” means the
      last day of the Term.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    3.  Compensation.

     

    (a)  As
      compensation for his services hereunder, the Company shall pay to Executive
      during the Term:

     

    (i)  a
      base
      salary at the rate of $200,000.00 per annum (the “Base Salary”), subject to the
      provisions of Section 1 above, such Base Salary to be paid in substantially
      equal installments no less often than twice monthly; 

     

    (ii)  a
      bonus
      (the “5% Bonus”) in respect of each Bonus Period (as hereinafter defined),
      payable within ninety (90) days after the end of such Bonus Period, in an amount
      equal to five percent (5%) of (A) for the first three (3) years of this
      Agreement, EBITDA and (B) thereafter Net Income before bonus (as hereinafter
      defined);

     

    (iii)   a
      bonus
      (the “Additional Bonus”) in respect of each Bonus Period, payable within ninety
      (90) days after the end of such Bonus Period, as follows: (A) $75,000.00, if
      Pre-Tax Income for the Bonus Period is between 150% and 200% of the prior fiscal
      year’s Pre-Tax Income; or (B) $100,000.00, if Pre-Tax Income for the Bonus
      Period is between 200% and 250% of the prior fiscal year’s Pre-Tax Income; or
      (C) $200,000.00, if Pre-Tax Income for the Bonus Period is two hundred fifty
      (250%) percent or greater than the prior fiscal year’s Pre-Tax Income; but in no
      event shall the Additional Bonus payable to Executive with respect to any Bonus
      Period exceed five (5%) percent of Pre-Tax Income for such Bonus Period;
      and

     

    (iv)  such
      additional incentive or bonus compensation as the Company’s Board of Directors
      may from time to time determine.

     

    (b)  For
      the
      purposes of paragraph 3(a)“Bonus
      Period” is a fiscal year of the Company ending during the Term.

     

    (i)  “EBITDA”
      means the Company’s Net Income plus any taxes, amortization and depreciation
      deducted in determining Net Income in accordance with generally accepted
      accounting principals (“GAAP”); Net Income means the Company’s Net Income as
      determined in accordance with GAAP.

     

    (ii)   The
      determination of EBITDA and Net Income and the 5% Bonus and Additional Bonus
      for
      any Bonus Period shall be determined by the Company’s Board of Directors or the
      Compensation Committee of the Board of Directors in accordance with the
      Company’s audited financial statements, which shall be conclusive and binding
      upon the Company and Executive. 

     

    (c)  The
      Company shall provide major medical, hospitalization, dental and disability
      insurance for the benefit of Executive and his spouse consistent with benefits
      made available to other of the Company’s senior executives, and the Company
      shall pay all premiums and any other costs or expenses incurred to maintain
      such
      policies in effect during the Term. Such coverage shall be provided in any
      event
      not later than the date the Executive becomes a full-time employee of the
      Company in amounts and with coverage reasonably acceptable to
      Executive.

     

    (d)  In
      addition to his Base Salary and other compensation provided herein, Executive
      shall be entitled to participate, to the extent he is eligible under the terms
      and conditions thereof, in any stock, stock option or other equity participation
      plan and any profit-sharing, pension, retirement, insurance, medical service
      or
      other employee benefit plan generally available to the executive officers of
      the
      Company, and to receive any other benefits or perquisites generally available
      to
      the executive officers of the Company pursuant to any employment policy or
      practice, which may be in effect from time to time during the
      Term.

    
      
        
        

      

      
        2

        
          

        

      

       

    

     

    (e)  During
      the Term, Executive shall not be entitled to additional compensation for serving
      in any office of the Company (or any subsidiary thereof) to which he is elected
      or appointed, except that, throughout any period or periods during which he
      shall serve as a director of the Company (or such subsidiary), Executive shall
      be entitled to directors’ fees in accordance with the policies and practices of
      the Company (or such subsidiary) then in effect.

     

    4.  Stock
      Options.
      

     

    (a)
       Executive
      shall be an eligible participant under one or more stock option plans adopted
      by
      the Company. .

     

    5.  Expenses.

     

    (a)  The
      Company shall pay directly, or advance funds to Executive or reimburse Executive
      for, all expenses reasonably incurred by him in connection with the performance
      of his duties as an employee or consultant hereunder, upon the submission to
      the
      Company of itemized expense reports, receipts or vouchers in accordance with
      its
      then customary policies and practices.

     

    (b)  Upon
      and
      after the Company having achieved Net Income in a fiscal quarter, The Company
      shall provide to Executive a suitable automobile or other vehicle for his
      exclusive use while a full-time employee of (and not as a consultant to) the
      Company, and the Company shall pay the entire cost thereof, including without
      limitation purchase price or lease payments, insurance premiums, repair charges,
      and maintenance and operating expenses, or if, in lieu thereof, Executive uses
      his own automobile or other vehicle, the Company shall grant him a monthly
      allowance in an amount sufficient to pay all such costs therefor.

     

    6.  Location;
      Office.
      Except
      for routine travel and temporary accommodation reasonably required to perform
      his services hereunder, Executive shall not be required to perform his services
      hereunder at any location other than the principal executive office of the
      Company, which office shall be located throughout the Term, at a location within
      a distance of 30 miles from 3 Oak Street, Teaneck, New Jersey on the date
      hereof, or at such other office or site to which Executive may, in his sole
      discretion, consent; nor shall he be required to relocate his principal
      residence to, or otherwise to reside at, any location specified by the Company.
      The Company shall provide Executive with suitable office space, furnishings
      and
      equipment, secretarial and clerical services and such other facilities and
      office support as Executive may reasonably request.

     

    7.  Vacation.
      Executive shall be entitled to four (4) weeks paid vacation during each year
      of
      his full time employment hereunder, such vacation to be taken at such time
      or
      times as shall be agreed upon by Executive and the Company. Vacation time shall
      be cumulative from year to year, except that Executive shall not be entitled
      to
      take more than eight weeks vacation during any consecutive 12-month period
      during the Term.

     

    8.  Key-Person
      Insurance.
      The
      Company shall have the right from time to time to purchase, increase, modify
      or
      terminate insurance policies on the life of Executive for the benefit of the
      Company in such amounts as the Company may determine in its sole discretion.
      In
      connection therewith, Executive shall, at such time or times and at such place
      or places as the Company may reasonably direct, submit himself to such physical
      examinations and execute and deliver such documents as the Company may deem
      necessary or appropriate.

    
      
        
        

      

      
        3

        
          

        

      

       

    

     

    9.  Trade
      Secrets.
      

     

    (a) Executive
      shall hold in a fiduciary capacity for the benefit of the Company all
      confidential or proprietary information relating to or concerned with the
      Company or its Affiliates (as defined below) or its products or services,
      prospective products or services, operations, business and affairs
      (“Confidential Information”), and shall not, at any time hereafter, use or
      disclose any Confidential Information to any person other than to the Company
      or
      its designees or except as may otherwise be required in connection with the
      business and affairs of the Company, and in furtherance of the foregoing
      Executive agrees that:

    

    (i) Executive
      will receive, maintain and hold Confidential Information in strict confidence
      and will use the same level of care in safeguarding it that he uses with his
      own
      confidential material of a similar nature;

    

    (ii)
       Executive
      will take all such steps as may be reasonably necessary to prevent the
      disclosure of Confidential Information; and

    

    (iii)
       Executive
      will not utilize Confidential Information without first having obtained the
      Company’s consent to such utilization.

    

    “Affiliate”
      of
      a
      Person means another Person directly or indirectly controlling, controlled
      by,
      or under common control with, such Person; for this purpose, “control” of a
      Person means the power (whether or not exercised) to direct the policies,
      operations or activities of such Person by virtue of the ownership of, or right
      to vote or direct the manner of voting of, securities of such Person, or
      pursuant to agreement or law or otherwise. The
      term
“Person” includes without limitation a natural person, corporation, joint stock
      company, limited liability company, partnership, joint venture, association,
      trust, governmental authority, or any group of the foregoing acting in
      concert.

    

    (b) The
      commitments set forth in paragraph 9(a) shall not extend to any portion of
      Confidential Information:

    

    (i) that
      is
      generally available to the public;

    

    (ii) that
      was
      not acquired, directly or indirectly and/or in any manner, from the Company
      and
      which Executive lawfully had in his possession prior to the date of this
      Agreement; or

    

    (iii) that,
      hereafter, through no act or omission on the part of the Executive, becomes
      information generally available to the public.

    

    (c)
       At
      any
      time upon written request by the Company (i) the Confidential Information,
      including any copies, shall be returned to the Company, and (ii) all documents,
      drawings, specifications, computer software, and any other material whatsoever
      in the possession of the Executive that relates to such Confidential
      Information, including all copies and/or any other form of reproduction and/or
      description thereof made by Executive shall, at the Company’s option, be
      returned to the Company or destroyed.

    
      
        
        

      

      
        4

        
          

        

      

       

    

    

    (d)
       In
      the
      event that Executive
      becomes
      legally compelled (by deposition, interrogatory, request of documents, subpoena,
      civil investigative demand or similar process) to disclose any of the
      Confidential Information, the Executive
      shall
      provide the Company with prompt prior written notice of such requirement so
      that
      it (or its designees) may seek a protective order or other appropriate remedy
      and/or waive compliance with the terms of this Agreement. In the event that
      such
      protective order or other remedy is not obtained, or the Company waives
      compliance with the provisions hereof, the Executive
      agrees
      to furnish only such portion of the Confidential Information which is legally
      required to be furnished.

     

    10.  Intellectual
      Property.
      Any
      idea, invention, design, process, system, procedure, improvement, development
      or
      discovery conceived, developed, created or made by Executive, alone or with
      others, during the Term and related to the business of the Company, whether
      or
      not patentable or registrable, shall become the sole and exclusive property
      of
      the Company. Executive shall disclose the same promptly and completely to the
      Company and shall, during the Term or thereafter, (i) execute all documents
      requested by the Company for vesting in the Company the entire right, title
      and
      interest in and to the same, (ii) execute all documents requested by the Company
      for filing and procuring such applications for patents, trademarks, service
      marks or copyrights as the Company, in its sole discretion, may desire to
      prosecute, and (iii) give the Company all assistance it may reasonably require,
      including the giving of testimony in any Proceeding (as hereinafter defined
      in
      Section 34), in other to obtain, maintain and protect the Company’s right
      therein and thereto.

     

    11.  No
      Competition.

     

    (a)   During
      the Restricted Period (as defined below), Executive shall not, directly or
      indirectly:

     

    (i)  own,
      control, manage, operate, participate or invest in, or otherwise be connected
      with, in any manner, any business activity, venture or enterprise which is
      engaged in any business in the United States in which the Company (or any
      subsidiary thereof) is currently engaged or is engaged at the time of
      termination of Executive’s employment hereunder, or

     

    (ii)  for
      himself or on behalf of any other person, employ or engage any person who at
      the
      time shall have been within the preceding 12-month period an employee of the
      Company (or such subsidiary) or contact any supplier, customer or employee
      of
      the Company (or such subsidiary) for the purpose of soliciting or diverting
      any
      supplier, customer or employee from the Company (or such
      subsidiary).x

     

    (b)  The
      provisions of Section 11(a) notwithstanding, Executive may invest his funds
      in
      securities of an issuer if the securities of such issuer are listed for trading
      on a registered securities exchange or actively traded in an over-the-counter
      market and Executive’s holdings therein represent less than 5% of the total
      number of shares or principal amount of the securities of such issuer
      outstanding.

     

    (c)  Executive
      acknowledges that the provisions of this Section, and the period of time,
      geographic area and scope and type of restrictions on his activities set forth
      herein, are reasonable and necessary for the protection of the
      Company.

     

    (d)   “Restricted
      Period” shall mean the period commencing on the date hereof and ending September
      30, 2010; provided, however, that if Executive has exercised his option to
      extend the Term to September 30, 2011 in accordance with Section 2 hereof,
      the
      Restricted Period shall end September 30, 2012.

    
      
        
        

      

      
        5

        
          

        

      

       

    

     

    12.  Termination
      Upon Disability.
      In the
      event that the Board of Directors determines that the Executive is unable to
      perform his duties hereunder by reason of any disability or incapacity (due
      to
      any physical or mental injury, illness or defect) for an aggregate of 180 days
      in any consecutive 12-month period, the Company shall have the right to
      terminate Executive’s employment hereunder within 60 days after the 180th day of
      his disability or incapacity by giving Executive notice to such effect at least
      30 days prior to the date of termination set forth in such notice, and on such
      date such employment shall terminate. The Board of Directors’ determination
      shall be made after due inquiry, on the basis of convincing evidence presented
      in at least two medical opinions rendered by reputable physicians with
      experience in diagnosing and treating the condition described in the
      opinion.

     

    13.  Termination
      for Cause.

     

    (a)  In
      addition to any other rights or remedies provided by law or in this Agreement,
      the Company may terminate Executive’s employment under this Agreement
      if:

     

    (i)  Executive
      is convicted of, or enters a plea of guilty or nolo
      contendere
      (which
      plea is not withdrawn prior to its approval by the court) to, a felony offense
      and either Executive fails to perfect an appeal of such conviction prior to
      the
      expiration of the maximum period of time within which, under applicable law
      or
      rules of court, such appeal may be perfected or, if Executive does perfect
      such
      an appeal, his conviction of a felony offense is sustained on appeal;
      or

     

    (ii)  the
      Company’s Board of Directors determines, after due inquiry, based on convincing
      evidence, that Executive has:

     

    
      	 	
              (A)

            	
              committed
                fraud against, or embezzled or misappropriated funds or other assets
                of,
                the Company (or any subsidiary
                thereof);

            

    

     

    
      	 	
              (B)

            	
              violated,
                or caused the Company (or any subsidiary thereof) or any officer,
                employee
                or other agent thereof, or any other person to violate, any material
                law,
                regulation or ordinance or any material rule, regulation, policy
                or
                practice established by the Company’s Board of
                Directors;

            

    

     

    
      	 	
              (C)

            	
              willfully,
                or because of gross or persistent negligence failed properly to perform
                his material duties hereunder.

            

    

     

    and
      that,
      in the case of any violation or failure referred to in clause (B) or (C) of
      this
      paragraph (ii) of Section 13(a), such violation or failure has caused, or is
      reasonably likely to cause, the Company to suffer or incur a substantial
      casualty, loss, penalty, expense or other liability or cost.

     

    (b)  The
      Company may effect such termination for cause by giving Executive notice to
      such
      effect, setting forth in reasonable detail the factual basis for such
      termination, at least ten (10) days prior to the date of termination set forth
      therein; provided
      however
      that
      Executive may avoid such termination if Executive, prior to the date of
      termination set forth in such notice, explains to the reasonable satisfaction
      of
      the Company’s Board of Directors why the facts relied upon by the Company in
      terminating Executive’s employment do not constitute a For Cause Event (as
      defined below).

     

    (c)  In
      making
      any determination pursuant to Section 13(a) as to the occurrence of any act
      or
      event described in clauses (A) to (C) of paragraph (ii) thereof (each, a “For
      Cause Event”), each of the following shall constitute convincing evidence of
      such occurrence:

    
      
        
        

      

      
        6

        
          

        

      

       

    

     

    (i)  if
      Executive is made a party to, or target of, any Proceeding arising under or
      relating to any For Cause Event, Executive’s failure to defend against such
      Proceeding or to answer any complaint filed against him therein, or to deny
      any
      claim, charge, averment, or allegation thereof asserting or based upon the
      occurrence of a For Cause Event;

     

    (ii)  any
      judgment, award, order, decree or other adjudication or ruling in any such
      Proceeding finding or based upon the occurrence of a For Cause Event;
      or

     

    (iii)  any
      settlement or compromise of, or consent decree issued in, any such Proceeding
      in
      which Executive expressly admits the occurrence of a For Cause
      Event;

     

    provided
      that
      none of the foregoing shall be dispositive or create an irrebuttable presumption
      of the occurrence of such For Cause Event; and provided
      further
      that the
      Company’s Board of Directors may rely on any other factor or event as convincing
      evidence of the occurrence of a For Cause Event.

     

    (d)  In
      determining and assessing the detrimental effect of any For Cause Event on
      the
      Company and whether such For Cause Event warrants the termination of Executive’s
      employment hereunder, the Company’s Board of Directors shall take the following
      factors, to the extent applicable and material, into account:

     

    (i)  whether
      the Company’s Board of Directors directed or authorized Executive to take, or to
      omit to take, any action involved in such For Cause Event, or approved,
      consented to or acquiesced in his taking or omitting to take such
      action;

     

    (ii)  any
      award
      of damages, penalty or other sanction, remedy or relief granted or imposed
      in
      any Proceeding based upon or relating to such For Cause Event, and whether
      such
      sanction, remedy or relief is sufficient to recompense the Company or any other
      injured person, or to prevent or to deter the recurrence of such For Cause
      Event;

     

    (iii)  whether
      any lesser sanction would be appropriate and effective; and

     

    (iv)  any
      adverse effect that the loss of Executive’s services would have, or be
      reasonably likely to have, upon the Company.

     

    14.  Termination
      by Executive for Good Reason.
      In
      addition to any other rights or remedies provided by law or in this Agreement,
      Executive may terminate his employment hereunder:

     

    (i)  if
      (A)
      the Company violates, or fails to perform or satisfy any material covenant,
      condition or obligation required to be performed or satisfied by it hereunder
      or, (B) as a result of any action or failure to act by the Company, there is
      a
      material change in the nature or scope of the duties, obligations, rights or
      powers of Executive’s employment, by giving the Company notice to such effect,
      setting forth in reasonable detail the factual basis for such termination,
      at
      least ten (10) days prior to the date of termination set forth therein;
provided
      however
      that the
      Company may avoid such termination if it, prior to the date of termination
      set
      forth in such notice, cures or explains to the reasonable satisfaction of
      Executive the factual basis for termination set forth therein; or

     

    (ii)  if
      a
      Change of Control (as hereinafter defined) occurs, by giving the Company notice
      to such effect within ninety (90) days after the occurrence of such Change
      of
      Control, setting forth the event or circumstance constituting such Change of
      Control, such termination to be effective upon the date of termination, not
      more
      than thirty (30) days after the date of such notice, set forth therein or,
      if no
      such date is set forth therein, immediately upon delivery of such notice to
      the
      Company.

    
      
        
        

      

      
        7

        
          

        

      

       

    

     

    15.  Voluntary
      Termination.
      

     

    (a)   In
      addition to any other rights or remedies provided by law or in this Agreement,
      from and after the date hereof, Executive may terminate his employment hereunder
      by giving the Company written notice to such effect at least one hundred and
      eighty (180) days prior to the date of termination set forth
      therein.

     

    16.  Compensation
      and Benefits upon Termination.
      

     

    (a)  Upon
      termination of Executive’s employment hereunder, he shall be entitled to
      receive, in any case, any Base Salary pursuant to Section 3(a)(i) accrued but
      unpaid to the Termination Date. Any amount payable to Executive under this
      subparagraph shall be paid promptly, and in any event within thirty (30) days
      after the Termination Date.

     

    (b)  If
      Executive’s employment is terminated as a result of a “For Cause Event” pursuant
      to Section 13, except for the payment of any amount required to be made by
      Section 16(a), from and after the Termination Date, the Company shall have
      no
      further obligation to Executive hereunder, including without limitation any
      obligation pursuant to Section 18.

     

    (c)  If
      (i)
      this Agreement terminates upon its scheduled expiration date (i.e. September
      30,
      2010 or, or, if the Executive has exercised his option to extend the Term in
      accordance with Section 2 hereof, September 30, 2011); or (ii) the Executive
      voluntarily terminates his employment pursuant to Section 15(a), Executive
      shall, at the option of either the Company or Executive in the case of clause
      (i) or at the Company’s option in the case of clause (ii), for a period of up to
      one (1) year thereafter act as a consultant to the Company pursuant to which
      he
      shall make himself reasonably available to assist the Company for no more than
      20 hours per month, including being available via telephone to consult with
      respect to the day-to-day operations of the Company, its finances and financial
      condition, mergers and acquisitions, short-term and long-range business
      strategies, industry trends and other business issues. In consideration for
      performing these services, Executive shall be paid at a per annum rate equal
      to
      fifty percent (50%) of the Base Salary, such per annum amount to be paid in
      substantially equal installments no less often than twice monthly. 

     

    (d)   If
      the
      Executive’s employment (but not consultancy) is terminated (i) by him pursuant
      to Section 14(i); or (ii) by the Company other than as a result of a “For Cause
      Event” pursuant to Section 13; or (iii) as a result of the death of the
      Executive, he shall be entitled to receive an amount equal to the product of
      the
      Base Salary multiplied by 3 (or $600,000). Notwithstanding the foregoing, if
      the
      Executive’s employment (but not consultancy) is terminated by the Company after
      a Change of Control has occurred for any reason other than as a result of a
“For
      Cause Event” pursuant to Section 13, he shall be entitled to receive, upon the
      terms and subject to the conditions set forth in Section 17, the Parachute
      Amount (as hereinafter defined in Section 17). Any amount payable to Executive
      under this subparagraph shall be paid promptly, and in any event within thirty
      (30) days after the Termination Date.

     

    (e)  If
      the
      Executive’s employment (but not consultancy) terminates as a result of a Change
      of Control pursuant to Section 14(ii), he shall be entitled to receive, upon
      the
      terms and subject to the conditions set forth in Section 17, the Parachute
      Amount. Any amount payable to Executive under this subparagraph shall be paid
      promptly, and in any event within thirty (30) days after the Termination Date.
      

     

    (f)  If
      the
      Executive’s employment is terminated by him pursuant to Section 14(i) or 14(ii)
      of this Agreement, or by the Company other than as a result of a “For Cause
      Event” pursuant to Section 13, the Executive shall be entitled for the two (2)
      year period following the Termination Date, or if the Executive voluntarily
      terminates his employment pursuant to Section 15(a) of this Agreement, the
      Executive shall be entitled for the one (1) year period following the
      Termination Date, to maintain an office either at the Company’s premises
      comparable in size and location to the office maintained by Executive prior
      to
      the Termination Date and receive secretarial and clerical services, all at
      the
      Company’s expense, or, at Executive’s option, if the Company is not maintaining
      such offices at its place of business at which Executive performed his services
      at the Termination Date, then the Company shall reimburse the Executive for
      the
      cost of his maintaining a comparable office, secretarial and clerical services
      at such other location selected by Executive. If the Executive’s employment is
      terminated by him pursuant to Section 14(i) or 14(ii) of this Agreement, or
      by
      the Company other than as a result of a “For Cause Event” pursuant to Section
      13, or if the Executive voluntarily terminates his employment pursuant to
      Section 15(a) of this Agreement, the Company shall for the two (2) year period
      following the Termination Date maintain and pay for Executive and his family,
      or
      reimburse Executive for the cost of medical, dental, and hospitalization
      benefits comparable to such benefits maintained by the Company during the twelve
      (12) months prior to the Termination Date.

    
      
        
        

      

      
        8

        
          

        

      

       

    

     

    (g)   Executive
      shall have no obligation hereunder to seek or to accept any other employment
      after the Termination Date or otherwise to mitigate the payments required to
      be
      made by this Section. No compensation or other amount received or receivable
      by
      Executive on account of any employment or engagement after the Termination
      Date
      shall be offset against or deducted from any payment required to be made by
      this
      Section 16 or Section 17.

     

    (h)   In
      the
      event the Company terminates the Executive other than as a result of a “For
      Cause Event” pursuant to Section 13, or if the Executive’s employment is
      terminated by him pursuant to Section 14(i) or 14(ii) of this Agreement,
      Executive shall receive as his sole and exclusive remedy and damages the
      payments he would otherwise be entitled to receive under the applicable
      provisions of this Section 16 (and, if applicable, the other benefits provided
      under clause (g) of this Section 16). 

     

    (i)   In
      the
      event Executive continues as a consultant to the Company pursuant to
      subparagraphs (c), (f)(i) or (f)(ii) of this Section16 and the consulting
      relationship is subsequently terminated (i) by the Company for any reason other
      than a For Cause Event; or (ii) by the Executive pursuant to Section 14(i);
      or
      (iii) as a result of the death of the Executive, the Company shall pay Executive
      (or his estate) any remaining amounts that would have otherwise been paid to
      him
      had he remained as a consultant to the end of the applicable consultancy term.
      Any amount payable to Executive (or his estate) under this subparagraph shall
      be
      paid promptly, and in any event within thirty (30) days after the date the
      Executive’s position as a consultant is terminated.

     

    17.  Change
      of Control.

     

    (a)  For
      the
      purposes of this Section 17: 

     

    (i)  The
“Act”
      is the Securities Exchange Act of 1934, as amended.

     

    (ii)  A
      “person” includes a “group” within the meaning of Section 13(d)(3) of the
      Act.

     

    (iii)  “Control”
      is used herein as defined in Rule 12b-2 under the Act.

     

    (iv)  “Beneficially
      owns” and “acquisition” are used herein as defined in Rules 13d-3 and 13d-5,
      respectively, under the Act.

    
      
        
        

      

      
        9

        
          

        

      

       

    

     

    (v)  “Non-Affiliated
      Person” means any person, other than Executive, an employee stock ownership
      trust of the Company (or any trustee thereof for the benefit of such trust),
      or
      any person controlled by Executive, the Company or such a trust.

     

    (vi)  “Voting
      Securities” includes Common Stock and any other securities of the Company that
      ordinarily entitle the holders thereof to vote, together with the holders of
      Common Stock or as a separate class, with respect to matters submitted to a
      vote
      of the holders of Common Stock, but securities of the Company as to which the
      consent of the holders thereof is required by applicable law or the terms of
      such securities only with respect to certain specified transactions or other
      matters, or the holders of which are entitled to vote only upon the occurrence
      of certain specified events (such as default in the payment of a mandatory
      dividend on preferred stock or a scheduled installment of principal or interest
      of any debt security), shall not be Voting Securities.

     

    (vii)  “Right”
      means any option, warrant or other right to acquire any Voting Security (other
      than such a right of conversion or exchange included in a Voting
      Security).

     

    (viii)  The
      “Code” is the Internal Revenue Code of 1986, as amended.

     

    (ix)  “Base
      amount,” “present value” and “parachute payment” are used herein as defined in
      Section 280G of the Code.

     

    (b)  A
“Change
      of Control” occurs when, without the consent of Executive:

     

    (i)  a
      Non-Affiliated Person acquires control of the Company;

     

    (ii)  upon
      an
      acquisition of Voting Securities or Rights by a Non-Affiliated Person from
      persons other than the Executive (or persons controlled by the Executive) or
      any
      change in the number or voting power of outstanding Voting Securities, such
      Non-Affiliated Person beneficially owns Voting Securities or Rights entitling
      such person to cast a number of votes (determined in accordance with Section
      16(g)) equal to or greater than 25% of the sum of (A) the number of votes that
      may be cast by all other holders of outstanding Voting Securities and (B) the
      number of votes that may be cast by such Non-Affiliated Person (determined
      in
      accordance with Section 16(g)); or

     

    (iii)  upon
      any
      change in the membership of the Company’s Board of Directors, a majority of the
      directors are persons who are not nominated or appointed by the Company’s Board
      of Directors as constituted prior to such change.

     

    (c)  The
      “Parachute Amount” to which Executive shall be entitled pursuant to Section
      16(d) shall equal 2.99 multiplied by the Executive’s base amount.

     

    (d)  It
      is
      intended that the present value of any payments or benefits to Executive,
      whether hereunder or otherwise, that are includible in the computation of the
      Parachute Amount shall not exceed 2.99 times the Executive’s base amount.
      Accordingly, if Executive receives any payment or benefit from the Company
      prior
      to payment of the Parachute Amount which, when added to the Parachute Amount,
      would subject any of the payments or benefits to Executive to the excise tax
      imposed by Section 4999 of the Code, the Parachute Amount shall be reduced
      by
      the least amount necessary to avoid such tax. The Company shall have no
      obligation hereunder to make any payment or provide any benefit to Executive
      after the payment of the Parachute Amount which would subject any of such
      payments or benefits to the excise tax imposed by Section 4999 of the
      Code.

    
      
        
        

      

      
        10

        
          

        

      

       

    

     

    (e)  Any
      other
      provision hereof notwithstanding, Executive may (but only to the extent not
      prohibited by the United States securities laws, as then amended), prior to
      his
      receipt of the Parachute Amount pursuant to Section 17(d), waive the payment
      thereof, or, after his receipt of the Parachute Amount thereunder, treat some
      or
      all of such amount as a loan from the Company which Executive shall repay to
      the
      Company within 180 days after the receipt thereof, together with interest
      thereon at the rate provided in Section 7872 of the Code, in either case, by
      giving the Company notice to such effect.

     

    (f)  Any
      determination of the Executive’s base amount, the Parachute Amount, any
      liability for excise tax under Section 4999 of the Code or other matter required
      to be made pursuant to this Section 17, shall be made by the Company’s
      regularly-engaged independent certified public accountants, whose determination
      shall be conclusive and binding upon the Company and Executive; provided
      that
      such accountants shall give to Executive, on or before the date on which payment
      of the Parachute Amount or any later payment or benefit would be made, a notice
      setting forth in reasonable detail such determination and the basis therefor,
      and stating expressly that Executive is entitled to rely thereon.

     

    (g)         
         The
      number of votes that may be cast by holders of Voting Securities or Rights
      upon
      the issuance or grant thereof shall be deemed to be the largest number of votes
      that may be cast by the holders of such securities or the holders of any other
      Voting Securities into which such Voting Securities or Rights are convertible
      or
      for which they are exchangeable or exercisable, determined as though such Voting
      Securities or Rights were immediately convertible, exchangeable or exercisable
      and without regard to any anti-dilution or other adjustments provided for
      therein.

     

    (h)  For
      purposes of this Agreement, Executive shall be deemed to have consented to
      a
      Change of Control only if (i) Executive, Agnes Olszewski and members of their
      immediate families in the aggregate beneficially own in excess of 50% of the
      Company’s Voting Securities and (ii) Executive votes in favor of the Change in
      Control in his capacity as a shareholder of the Company.

     

    18.  Other
      Termination Provisions.

     

    (a)  Throughout
      the 10-year period following the Termination Date, the Company shall indemnify
      Executive, and hold him harmless from, any loss, damages, liability, obligation
      or expense that he may suffer or incur in connection with any claim made or
      Proceeding commenced during such period relating to his service as a director,
      officer, employee or agent of the Company (or any subsidiary thereof) to the
      same extent and in same manner as the Company shall be obligated so to indemnify
      Executive immediately prior to the Termination Date; provided
      that, if
      during such 10-year period the Company adopts or assumes any indemnification
      policy or practice with respect to its directors, officers, employees or agents
      that is more favorable than that in effect on the Termination Date, Executive
      shall be entitled to such more favorable indemnification.

     

    (b)  Throughout
      the 10-year period following the Termination Date, the Company shall maintain
      for the benefit of Executive directors’ and officers’ liability insurance (on a
“claims made” basis) providing coverage at least as favorable to Executive
      (including with respect to limits of liability, exclusions, and deductible
      and
      retention amounts) as that in effect on the Termination Date.

     

    19.  Limitation
      of Authority.
      Except
      as expressly provided herein, no provision hereof shall be deemed to authorize
      or empower either party hereto to act on behalf of, obligate or bind the other
      party hereto.

     

    20.  Notices.
      Any
      notice or demand required or permitted to be given or made hereunder to or
      upon
      either party hereto shall be deemed to have been duly given or made for all
      purposes if (a) in writing and sent by (i) messenger or an overnight courier
      service against receipt, or (ii) certified or registered mail, postage paid,
      return receipt requested, or (b) sent by telegram, telecopy, telex or similar
      electronic means, provided
      that a
      written copy thereof is sent on the same day by postage-paid first-class mail,
      to such party at the following address:

    
      
        
        

      

      
        11

        
          

        

      

       

    

     

    
      	to the Company at: 	 	its
              principal executive offices
	 	 	 
	to Executive at:	 	 
	 	 	 
	with a copy to:	 	Feder, Kaszovitz, Isaacson, Weber,
              
	 	 	Skala, Bass & Rhine LLP
	 	 	23rd
              Floor
	 	 	750 Lexington Avenue
	 	 	New York, New York 10022-1200
	 	 	Attn: Geoffrey A. Bass, Esq.
	 	 	Fax: (212)
              888-7776

    

     

    or
      such
      other address as either party hereto may at any time, or from time to time,
      direct by notice given to the other party in accordance with this Section.
      The
      date of giving or making of any such notice or demand shall be, in the case
      of
      clause (a) (i), the date of the receipt; in the case of clause (a) (ii), five
      business days after such notice or demand is sent; and, in the case of clause
      (b), the business day next following the date such notice or demand is
      sent.

     

    21.  Amendment.
      Except
      as otherwise provided herein, no amendment of this Agreement shall be valid
      or
      effective, unless in writing and signed by or on behalf of the parties
      hereto.

     

    22.  Waiver.
      No
      course of dealing or omission or delay on the part of either party hereto in
      asserting or exercising any right hereunder shall constitute or operate as
      a
      waiver of any such right. No waiver of any provision hereof shall be effective,
      unless in writing and signed by or on behalf of the party to be charged
      therewith. No waiver shall be deemed a continuing waiver or waiver in respect
      of
      any other or subsequent breach or default, unless expressly so stated in
      writing.

     

    23.  Governing
      Law.
      This
      Agreement shall be governed by, and interpreted and enforced in accordance
      with,
      the laws of the State of New Jersey without regard to principles of choice
      of
      law or conflict of laws.

     

    24.  Remedies.
      In the
      event of any actual or prospective breach or default by either party hereto,
      the
      other party shall be entitled to equitable relief, including remedies in the
      nature of rescission, injunction and specific performance. All remedies
      hereunder are cumulative and not exclusive, and nothing herein shall be deemed
      to prohibit or limit either party from pursuing any other remedy or relief
      available at law or in equity for such actual or prospective breach or default,
      including the recovery of damages.

     

    25.  Severability.
      The
      provisions hereof are severable and in the event that any provision of this
      Agreement shall be determined to be invalid or unenforceable in any respect
      by a
      court of competent jurisdiction, the remaining provisions hereof shall not
      be
      affected, but shall, subject to the discretion of such court, remain in full
      force and effect, and any invalid or unenforceable provision shall be deemed,
      without further action on the part of the parties hereto, amended and limited
      to
      the extent necessary to render the same valid and enforceable.

    
      
        
        

      

      
        12

        
          

        

      

       

    

     

    26.  Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and which together shall constitute one and the same
      agreement.

     

    27.  Assignment.
      This
      Agreement, and each right, interest and obligation hereunder, may not be
      assigned by either party hereto without the prior written consent of the other
      party hereto, and any purported assignment without such consent shall be void
      and without effect, except that this Agreement shall be assigned to, and assumed
      by, any person with or into which the Company merges or consolidates, or which
      acquires all or substantially all of its assets, or which otherwise succeeds
      to
      and continues the Company’s business substantially as an entirety. Except as
      otherwise expressly provided herein or required by law, Executive shall not
      have
      any power of anticipation, assignment or alienation of any payments required
      to
      be made to him hereunder, and no other person may acquire any right or interest
      in any thereof by reason of any purported sale, assignment or other disposition
      thereof, whether voluntary or involuntary, any claim in a bankruptcy or other
      insolvency proceeding against Executive, or any other ruling, judgment, order,
      writ or decree.

     

    28.  Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns. This Agreement is not
      intended, and shall not be deemed, to create or confer any right or interest
      for
      the benefit of any person not a party hereto.

     

    29.  Titles
      and Captions.
      The
      titles and captions of the Articles and Sections of this Agreement are for
      convenience of reference only and do not in any way define or interpret the
      intent of the parties or modify or otherwise affect any of the provisions
      hereof.

     

    30.  Grammatical
      Conventions.
      Whenever the context so requires, each pronoun or verb used herein shall be
      construed in the singular or the plural sense and each capitalized term defined
      herein and each pronoun used herein shall be construed in the masculine,
      feminine or neuter sense.

     

    31.  References.
      The
      terms "herein," "hereto," "hereof," "hereby," and "hereunder," and other terms
      of similar import, refer to this Agreement as a whole, and not to any Article,
      Section or other part hereof.

     

    32.  No
      Presumptions.
      Each
      party hereto acknowledges that it has had an opportunity to consult with counsel
      and has participated in the preparation of this Agreement. No party hereto
      is
      entitled to any presumption with respect to the interpretation of any provision
      hereof or the resolution of any alleged ambiguity herein based on any claim
      that
      the other party hereto drafted or controlled the drafting of this
      Agreement.

     

    33.  Certain
      Definitions.
      As used
      herein:

     

    (a)  “Person”
      includes without limitation a natural person, corporation, joint stock company,
      limited liability company, partnership, joint venture, association, trust,
      government or governmental authority, agency or instrumentality, or any group
      of
      the foregoing acting in concert.

     

    (b)  A
      “Proceeding” is any suit, action, arbitration, audit, investigation or other
      proceeding before or by any court, magistrate, arbitration panel or other
      tribunal, or any governmental agency, authority or instrumentality of competent
      jurisdiction.

     

    34.  Entire
      Agreement.
      This
      Agreement embodies the entire agreement of the parties hereto with respect
      to
      the subject matter hereof and supersedes any prior agreement, commitment or
      arrangement relating thereto, written or oral, if any, which shall terminate
      immediately upon the commencement of the Term, except that each party thereto
      shall (a) remain required to perform any act and to satisfy any obligation
      or
      condition that such party is required to perform or satisfy thereunder with
      respect to any event occurring or circumstance existing prior to the
      commencement of the Term hereof (including without limitation the payment or
      delivery to Executive of any compensation, reimbursable expense or employee
      benefit or perquisite to which he may be entitled, but which has not yet been
      paid to him, on account of his employment under any such prior arrangement)
      that
      has not been so performed or satisfied, and (b) retain his or its right under
      any such prior assignment to assert or to allege any claim or cause of action
      relating to or based upon, or otherwise to enforce, any provision thereof with
      respect to any event occurring or circumstance existing during the term
      thereof.

    
      
        
        

      

      
        13

        
          

        

      

       

    

     

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

     

    
      	 	 	 
	 	
              THE
                COMPANY:

               

              PACIFIC MAGTRON INTERNATIONAL CORPORATION,
                INC.

            
	 
 	 
 	 
 
	 	
              By: 

               

              Name: 

            	
              /s/ Anthony
                T. Lee

              
                

              
Anthony T. Lee
	 	Title: 	Chief Financial Officer
	 	 	 
	 	EXECUTIVE:
	 	 
	 	
              /s/ James P. Gilligan 

                

              
James P. Gilligan,
              Ph.D.

    

    
      
        
        

      

      
        14

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