Document:

Exhibit 10.2 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

                       THIS AGREEMENT, made and entered into as of February 5, 2007 (the “Effective Date”), by and between MARY MARGARET GRABEL (the
“Executive”) and WESTWOOD COMPUTER CORPORATION (the “Company”). 

WITNESSETH THAT: 

                       WHEREAS, the Company and the Executive previously entered into an Employment Agreement dated April 16, 2004 (the “Original Agreement”); 

                       WHEREAS, the Company and the Executive have agreed to execute a subordinated promissory note (the “Note”) in the form of
Exhibit A hereto pursuant to which the Company has agreed to pay the Executive, in accordance with the terms of the Note, certain amounts owed under the terms of the Original Agreement; and

                       WHEREAS, the Company and the Executive now wish to revise the terms and conditions of the Executive’s employment. 

                       NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is hereby covenanted and agreed by the Executive and the Company as follows: 

          1.           Performance of Services. The Executive’s employment with the Company shall be subject to the following: 

	          	
(a)          	
During the Agreement Term (as defined below), and subject to the terms of this Agreement, the Executive shall be employed by the Company and shall occupy the position of Executive of the Company. The Executive agrees to serve in
that position or in such other offices or positions with the Company or a Subsidiary (as defined below), as shall, from time to time, be determined by the Board of Directors of the Company (the “Board”).  
	 
	 	
(b)	
During the Agreement Term, while employed by the Company, the Executive shall devote her full time, energies and talents to serving as its Chief Executive Officer or such other position determined in accordance with Paragraph (a)
above.  
	 
	 	 	
During the Agreement Term, the Executive’s main office shall be at 11 Diamond Road, Springfield, NJ 07081.  
	 
	 	
(c)	
The Executive agrees to perform her duties hereunder faithfully and efficiently subject to the directions of the Board. The Executive’s duties may include providing services for both the Company and the Subsidiaries, as
determined by the Board; provided, that the Executive shall not, without her consent, be assigned tasks that would be inconsistent with those of Chief Executive Officer or such other position determined in accordance with Paragraph (a)
above.  
	 

	          	
(d)          	
Notwithstanding the foregoing provisions of this Paragraph 1, during the Agreement Term, the Executive may devote reasonable time to activities other than those required under this Agreement, including activities involving
professional, charitable, community, educational, religious and similar types of organizations, speaking engagements, membership on the boards of directors of other organizations, and similar types of activities, to the extent that such other
activities do not, in the judgment of the Board, conflict with, inhibit or prohibit the performance of the Executive’s duties under this Agreement, or conflict in any material way with the business of the Company, Parent or any Subsidiary;
provided, however, that the Executive shall not serve on the board of any business, or hold any other position with any business, without the consent of the Board.  
	 
	 	
(e)	
Subject to the terms of this Agreement, the Executive shall not be required to perform services under this Agreement during any period that the Executive is Disabled. The Executive shall be considered “Disabled” or under a “Disability” during any period in which a physical or mental disability renders the Executive incapable, after
reasonable accommodation, of performing the duties under this Agreement. In the event of a dispute as to whether the Executive is Disabled, the Company may refer the same to a licensed practicing physician of the Company’s choice, and the
Executive agrees to submit to such tests and examinations as such physician shall deem appropriate. At any time during the period in which the Executive is Disabled, the Company may appoint a temporary replacement to assume the Executive’s
responsibilities.  
	 
	 	
(f)	
The Company shall employ the Executive for the period beginning on February 5, 2007 and ending on April 15, 2009 (the “Initial Term”); subject, however, to
earlier termination as provided herein. The Executive’s employment hereunder automatically shall be extended for one (1) additional year at the end of the Initial Term, and again each successive year thereafter. However, such annual extensions
may cease by either party delivering written notice of such cessation to the other party; provided that such notice is delivered at least 60 days prior to the date on which extension is otherwise to occur. The period during which the Executive is
employed pursuant to this Agreement shall be referred to as the “Agreement Term.”  
	 
	 	
(g)	
For purposes of this Agreement, (i) the term “Parent” shall mean Emtec, Inc., a Delaware corporation, and (ii) the term “Subsidiary” shall mean any corporation, partnership, joint venture or other entity during any period in which at least a fifty percent interest in such entity is owned, directly or indirectly, by
Parent (or a successor to Parent).  
	 

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          2.           Compensation. Subject to the terms of this Agreement, during the Agreement Term, while the Executive is employed by the Company, the
Company shall compensate the Executive for her services as follows: 

	          	
(a)          	
The Executive shall receive an annual base salary, payable in regular installments in accordance with the Company’s usual payroll practices, as set forth on Schedule 2(a) (the “Salary”). The Executive’s Salary rate shall be reviewed by the Board each year during the Agreement Term, while the Executive is employed by the Company, to
determine whether an increase in the amount of Salary is appropriate. Any increase in the amount of Salary shall be in the sole discretion of the Board. In no event shall the Salary of the Executive be reduced to an amount that is less than the
amount specified in this Paragraph (a), or to an amount that is less than the amount that the Executive was previously receiving during the Agreement Term.  
	 
	 	
(b)	
Except as otherwise specifically provided to the contrary in this Agreement, the Executive shall be provided with the welfare benefits and other fringe benefits to the same extent and on the same terms and in any event no less
than those benefits that are currently provided by the Company to the Executive. The current benefits of the Executive are set forth on Schedule 2(b). However, the Company shall not be
required to provide a benefit under this Paragraph (b) if such benefit would duplicate (or otherwise be of the same type as) a benefit specifically required to be provided under another provision of this Agreement. The Executive shall complete all
forms and physical examinations, and otherwise take all other similar actions to secure coverage and benefits described in this Paragraph 2, to the extent determined to be necessary or appropriate by the Company.  
	 
	 	
(c)	
During any period while the Executive is Disabled and is otherwise entitled to receive Salary under this Agreement, any such Salary to the Executive shall be reduced by the amount of any benefits paid for the same period of time
under the Company-provided disability income replacement coverage.  
	 
	 	
(d)	
During the first year of the Agreement Term, the Executive, together with Keith Grabel, shall be entitled to receive reimbursement from the Company for the joint reasonable expenses incurred by the Executive and Keith Grabel in
providing the services hereunder and under the Amended and Restated Employment Agreement dated February 5, 2007 by and between the Company and Keith Grabel, dated the date hereof (including travel) (the “Expenses”) up to $75,000 per year combined without any approval on the part of the Parent (the “Approved Expenses”); provided
that such amount shall be reduced pro rata based on the number of months remaining in the first year of the Agreement Term. Any Expenses in excess of the Approved Expenses must be approved in writing by the Parent, such approval not to be
unreasonably withheld. The amount of Approved Expenses  
	 

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	                        	reimbursed by the Company for any years subsequent to the first year of the Agreement Term may be adjusted upward as agreed upon in writing by the Executive and the Parent, but in no event shall such amount be less than $75,000.

All payments and benefits to the Executive under this Agreement shall be subject to reduction for payroll and other applicable taxes. 

          3.           Termination. The Executive’s employment with the Company during the Agreement Term may be terminated by the Company or the Executive
without any breach of this Agreement only under the circumstances described in Paragraphs 3(a) through 3(f): 

	          	
(a)          	
Death. The Executive’s employment hereunder will terminate upon death.  
	 
	 	
(b)	
Disability. During the Agreement Term, the Company may terminate the Executive’s employment if Executive is Disabled for longer than twelve (12) consecutive months.  
	 
	 	
(c)	
Cause. The Company may terminate the Executive’s employment hereunder at any time for Cause. For purposes of this Agreement, the term “Cause” shall mean:  
	 
	 	 	
(i)	
a willful act by the Executive against the interests of the Company or which causes or is intended to cause harm to the Company or its shareholders;  
	 
	 	 	
(ii)          	
the Executive’s conviction, or plea of no contest or guilty, to a felony under the laws of the United States or any state thereof or of a lesser offense involving dishonesty as such dishonesty relates to the Company’s
assets or business or the theft of Company property;  
	 
	 	 	
(iii)	
the Executive’s insobriety or use of illegal drugs, chemicals or controlled substances either (A) in the course of performing Executive’s duties and responsibilities under this Agreement, or (B) otherwise affecting the
ability of Executive to perform the same; or  
	 
	 	 	
(iv)	
a material breach of the Agreement by the Executive which is not cured by the Executive within twenty (20) days (where the breach is curable) following written notice to the Executive by the Company of the nature of the
breach.  

                          For purposes of this Agreement, no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief
that the Executive’s action or omission was in the best interest of the Company. Cause shall not exist under this Section 3 unless and until the Company has 

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delivered to the Executive a copy of a resolution duly adopted by a majority of the Board (absent the Executive) at a meeting of the Board called and held for such purpose, or by written consent, finding that such Cause exists in
the good faith opinion of the Board. This Section 3 shall not prevent the Executive from challenging in any arbitration proceeding the Board’s determination that Cause exists or that the Executive has failed to cure any act (or failure to act),
to the extent permitted by this Agreement that purportedly formed the basis for the Board’s determination. The Company must provide written notice to the Executive that it is intending to terminate the Executive’s employment for Cause
within one hundred and twenty (120) days after the Board has actual knowledge of the occurrence of the event it believes constitutes Cause. 

	          	
(d)          	
Termination for Good Reason. The Executive may terminate her employment hereunder for Good Reason at any time during the Agreement Term. For purposes of the Agreement, “Good Reason” shall mean  
	 
	 	 	
(i)	
a material breach of the terms of this Agreement by the Company,  
	 
	 	 	
(ii)          	
the Company requiring the Executive to move her primary place of employment more than thirty-five (35) miles from the then current place of employment,  
	 
	 	 	
(iii)	
a material diminution of the Executive’s responsibilities or any material reduction in the general nature of the Executive’s duties or authority to a level inconsistent with Chief Executive Officer, unless previously
agreed to in writing by the Executive,  
	 
	 	 	
(iv)	
the failure of the Executive or Keith Grabel to be elected to the Board of Directors of the Company; or  
	 
	 	 	
(v)	
a Change of Control of the Company or the Parent.  

                          provided that any of the foregoing is not cured by the Company within twenty (20) days following receipt of written notice by the Executive to the Company of the specific nature of the breach. No termination for Good Reason
shall be permitted unless the Company shall have first received written notice from the Executive describing the basis of such termination for Good Reason. A termination of the Executive’s employment for Good Reason pursuant to this Section
shall be treated for purposes of this Agreement as a termination by the Company without Cause and the provisions of this Section relating to the payment of compensation and benefits shall apply. The term “Change of Control” means (i) the
acquisition by any person or group, or two or more such persons acting in concert, of beneficial ownership of more than 51% of the outstanding common stock of the Company or the Parent (excluding the common stock of the Company or Parent owned by
the Executive, Keith Grabel or their assigns); or (ii) the sale of all or substantially all of the assets of the Company or the Parent. The term Change of Control will expressly include, without limitation, any such acquisition or sale that is
structured as a merger, consolidation, joint venture, tender offer, exchange offer, equity investment in the Company or the Parent.

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                        The Executive’s right to terminate employment pursuant to this Paragraph (d) shall not be affected by incapacity due to physical or mental illness.

	          	
(e)          	
Voluntary Termination by Executive. The Executive shall provide the Company thirty (30) days’ advance written notice in the event the Executive terminates her employment, other than for Good
Reason (as defined herein); provided that the Board may, in its sole discretion, terminate the Executive’s employment with the Company prior to the expiration of the thirty-day notice
period. In such event and upon the expiration of such thirty day period (or such shorter time as the Board in its sole discretion may determine), the Executive’s employment under this Agreement shall immediately and automatically
terminate.  
	 
	 	
(f)	
Termination by Company. The Company may terminate the Executive’s employment hereunder at any time for any reason, by giving the Executive prior written Notice of Termination, which Notice of
Termination shall be effective immediately, or such later time as is specified in such notice. The Company shall not be required to specify a reason for the termination under this Paragraph 3(f), provided that termination of the Executive’s
employment by the Company shall be deemed to have occurred under this Paragraph 3(f) only if it is not for reasons described in Paragraph 3(b), 3(c), 3(d), or 3(e). Notwithstanding the foregoing provisions of this Paragraph (f), if the
Executive’s employment is terminated by the Company in accordance with this Paragraph (f), and within a reasonable time period thereafter, it is determined by the Board that circumstances existed which would have constituted a basis for
termination of the Executive’s employment for Cause in accordance with Paragraph 3(c), the Executive’s employment will be deemed to have been terminated for Cause in accordance with Paragraph 3(c) (provided, however, that termination for
Cause shall not be determined to exist under this sentence solely by reason of circumstances which could have been remedied if notice had been given in accordance with Paragraph 3(c)).  
	 
	 	
(g)	
Notice of Termination. Any termination of the Executive’s employment by the Company or the Executive (other than a termination pursuant to Paragraphs 3(a) or (b)) must be communicated by a
written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” means a dated notice which indicates the Date of Termination (not
earlier than the date on which the notice is provided), and which indicates the specific termination provision in this Agreement relied on and which sets forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated.  
	 
	 	
(h)	
Date of Termination. “Date of Termination” means the last day the Executive is employed by the Company, provided that the
Executive’s employment is terminated in accordance with the foregoing provisions of this Paragraph 3.  
	 

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(i)          	
Effect of Termination. If, on the Date of Termination, the Executive is a member of the Board of the Company or a member of the Board of Directors or Board of Members of any of the Subsidiaries, or
holds any other position with the Company and the Subsidiaries, the Executive shall resign from all such positions as of the Date of Termination.  

          4.           Rights Upon Termination. The Executive’s right to payment and benefits under this Agreement for periods after the Date of Termination
shall be determined in accordance with the following provisions of this Paragraph 4: 

	          	
(a)          	
If the Executive’s Date of Termination occurs during the Agreement Term for any reason the Company shall pay to the Executive:  
	 
	 	 	
(i)	
The Executive’s Salary for the period ending on the Executive’s Date of Termination.  
	 
	 	 	
(ii)          	
Payment for accrued vacation days, as determined in accordance with Company policy as in effect from time to time.  
	 
	 	 	
(iii)	
Any other payments or benefits to be provided to the Executive by the Company pursuant to any employee benefit plans or arrangements adopted by the Company, to the extent such amounts are due from the Company.  

                        Except as may otherwise be expressly provided to the contrary in this Agreement, nothing in this Agreement shall be construed as requiring the Executive to be treated as employed by the Company for
purposes of any employee benefit plan or arrangement following the date of the Executive’s Date of Termination. 

	          	
(b)          	
If the Executive’s Date of Termination occurs during the Agreement Term under any circumstances described in Paragraph 3, the Company shall have no obligation to make payments under the Agreement for periods after the
Executive’s Date of Termination other than those payments in accordance with Paragraph 4(a) above.  

          5.           Duties on Termination. Subject to the terms and conditions of this Agreement, during the period beginning on the date of delivery of a
Notice of Termination, and ending on the Date of Termination, the Executive shall continue to perform her duties as set forth in this Agreement, and shall also perform such services for the Company as are necessary and appropriate for a smooth
transition to the Executive’s successor, if any. Notwithstanding the foregoing provisions of this Paragraph 5, the Company may suspend the Executive from performing her duties under this Agreement following the delivery of a Notice of
Termination providing for the Executive’s resignation, or delivery by the Company of a Notice of Termination providing for the Executive’s termination of employment for any reason; provided, however, that during the period of suspension
(which shall end on the Date of Termination), the 

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Executive shall continue to be treated as employed by the Company for other purposes, and her rights to compensation or benefits shall not be reduced by reason of the suspension. 

          6.           Mitigation and Set-Off. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise. The Company shall be entitled to set off against amounts payable to the Executive any amounts owed to the Company by the Executive, but the Company shall not be entitled to set off against the amounts payable
to the Executive under this Agreement any amounts earned by the Executive in other employment after termination of employment with the Company, or any amounts which might have been earned by the Executive in other employment had such other
employment been sought. 

          7.           Noncompetition.

	          	
(a)          	
While the Executive is employed by the Company, and for a period of two (2) years after termination of the Executive’s employment with the Company for any reason:  
	 
	 	 	
(i)	
The Executive shall not, without the express written consent of the Board, be employed by, serve as a consultant to, or otherwise assist or directly or indirectly provide services to a Competitor (defined below) if: (A) such
services are to be provided with respect to any location in which Parent, the Company or a Subsidiary did business during the twelve (12) month period prior to the Date of Termination, or with respect to any location in which Parent, the Company or
a Subsidiary had devoted material resources to doing business during the twelve (12) month period prior to the Date of Termination; or (B) the trade secrets, confidential information, or proprietary information (including, without limitation,
confidential or proprietary methods) of Parent, the Company and the Subsidiaries to which the Executive had access could reasonably be expected to benefit the Competitor if the Competitor were to obtain access to such secrets or
information.  
	 
	 	 	
(ii)          	
The Executive shall not, without the express written consent of the Board, directly or indirectly own an equity interest in any Competitor (other than ownership of 1% or less of the outstanding stock of any corporation listed on a
national stock exchange or included in the NASDAQ System).  
	 
	 	
(b)	
While the Executive is employed by the Company, and for a period of three (3) years after termination of the Executive’s employment with the Company for any reason:  
	 
	 	 	
(i)	
The Executive shall not, without the express written consent of the Board, solicit or attempt to solicit any party who is then or, during the twelve (12) month period prior to such solicitation or attempt by the Executive was
(or  

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was solicited to become), a customer or supplier of Parent, the Company or a Subsidiary, or a user of the services provided by Parent, the Company or a Subsidiary, provided that the restriction in this Paragraph (ii) shall not
apply to any activity on behalf of a business that is not a Competitor.  
	 
	 	 	
(ii)          	
The Executive shall not without the express written consent of the Board, solicit, entice, persuade, induce or hire any individual who is employed by Parent, the Company or any Subsidiary (or was so employed within 90 days prior
to the Executive’s action) to terminate or refrain from renewing or extending such employment or to become employed by or enter into contractual relations with any other individual or entity other than Parent, the Company or any Subsidiary, and
the Executive shall not approach any such employee for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity.  
	 
	          	
(c)          	
The term “Competitor” means any enterprise (including a person, entity, firm or business, whether or not incorporated) during any period in which it is
materially competitive in any way with any business in which Parent, the Company or any of the Subsidiaries was engaged during the twelve (12) month period prior to the Executive’s Date of Termination.  

                        Nothing in this Paragraph 7, Paragraph 8, or Paragraph 9 shall be construed as limiting the Executive’s duty of loyalty to the Company, or any other duty otherwise owed to the Company, while the
Executive is employed by the Company. 

          8.           Non-Disparagement. The Executive and the Company agree that each will not make any false, defamatory or disparaging statements about the
other, Parent, the Subsidiaries, or the officers or directors of Parent, the Company or the Subsidiaries that are reasonably likely to cause material damage to the Executive, Parent, the Company, the Subsidiaries, or the officers or directors of
Parent, the Company or the Subsidiaries.

          9.           Confidential Information. The Executive agrees that, during the Agreement Term, and at all times thereafter: 

	          	
(a)          	
The Executive agrees to keep secret all Confidential Information and Intellectual Property which may be obtained during the period of employment by the Company and that the Executive shall not reveal or disclose it, directly or
indirectly, except with the Company’s prior written consent. The Executive shall not make use of the Confidential Information or Intellectual Property for the Executive’s own purposes or for the benefit of anyone other than Parent or the
Company and shall protect it against disclosure, misuse, espionage, loss and theft.  
	 
	 	
(b)	
The Executive acknowledges and agrees that all Intellectual Property is and shall be owned by the Company, Parent or the Subsidiaries, as applicable. The Executive hereby assigns and shall assign to all ownership rights possessed
in any  

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Intellectual Property contributed, conceived or made by the Executive (whether alone or jointly with others) while employed by the Company, whether or not during work hours. The Executive shall promptly and fully disclose to the
Company in writing all such Intellectual Property after such contribution, conception or other development. The Executive agrees to fully cooperate with the Company, at the Company’s expense, in securing, enforcing and otherwise protecting
throughout the world the Company’s interests in such Intellectual Property, including, without limitation, by signing all documents reasonably requested by the Company.  
	 
	          	
(c)          	
Immediately following the Date of Termination, the Executive agrees to promptly deliver to the Company all memoranda, notes, manuals, lab notebooks, computer diskettes, passwords, encryption keys, electronic mail and other written
or electronic records (and all copies thereof) constituting or relating to Confidential Information or Intellectual Property that the Executive may then possess or have control over. If the Company requests, the Executive shall provide written
certification that all such materials have been returned .  
	 
	 	
(d)	
For purposes of this Agreement, the following terms shall be defined as set forth below:  
	 
	 	 	
(i)	
“Employer Confidential Information” shall mean all information, in any form or medium, that relates to the business, marketing, costs, prices, products,
processes, services, methods, computer programs and systems, personnel, customers, research or development of the Company and all other information related to Parent, the Company and the Subsidiaries which is not readily available to the
public.  
	 
	 	 	
(ii)          	
“Confidential Information” shall mean all information, in any form or medium, that relates to the business, marketing, costs, prices, products, processes,
services, methods, computer programs and systems, personnel, customers, research or development of Parent, the Company and the Subsidiaries and all other information related to Parent, the Company and the Subsidiaries which is not readily available
to the public.  
	 
	 	 	
(iii)	
“Intellectual Property” shall mean, with respect to the following which are created or existing during the period of the Executive’s employment by the
Company, any: (A) idea, know-how, invention, discovery, design, development, software, device, technique, method or process (whether or not patentable or reduced to practice or including Confidential Information) and related patents and patent
applications and reissues, re-examinations, renewals, continuations-in-part, continuations, and divisions thereof; (B) copyrightable and mask work (whether or not including Confidential Information) and related registrations and applications for
registration; (C) trademarks, trade secrets and other proprietary rights; and  
	 

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	                                      	(D) improvements, updates and modifications of the foregoing made from time to time. 

          10.         Assistance with Claims. The Executive agrees that, during the Agreement Term, and continuing for a reasonable period after the
Executive’s Date of Termination, the Executive will assist Parent, the Company and the Subsidiaries in defense of any claims that may be made against Parent, the Company and the Subsidiaries, and will assist Parent, the Company and the
Subsidiaries in the prosecution of any claims that may be made by Parent, the Company or the Subsidiaries, to the extent that such claims may relate to services performed by the Executive for Parent, the Company and the Subsidiaries. The Executive
agrees to promptly inform the Company upon becoming aware of any lawsuits involving such claims that may be filed against Parent, the Company or any Subsidiary. The Company agrees to provide legal counsel to the Executive in connection with such
assistance (to the extent legally permitted), and to reimburse the Executive for all of the Executive’s reasonable out-of-pocket expenses associated with such assistance, including travel expenses. For periods after the Executive’s
employment with the Company terminates, the Company agrees to provide reasonable compensation to the Executive for such assistance. The Executive also agrees to promptly inform the Company upon being asked to assist in any investigation of Parent,
the Company or the Subsidiaries (or their actions) that may relate to services performed by the Executive for Parent, the Company or the Subsidiaries, regardless of whether a lawsuit has then been filed against Parent, the Company or the
Subsidiaries with respect to such investigation. 

          11.         Equitable Remedies. The Executive acknowledges that the Company would be irreparably injured by a violation of Paragraph 7, Paragraph 8
or Paragraph 9, and therefore, agrees that the Company, in addition to any other remedies available to it for such breach or threatened breach, shall be entitled to a preliminary injunction, temporary restraining order, or other equivalent relief,
restraining the Executive from any actual or threatened breach of Paragraph 7, Paragraph 8, or Paragraph 9. The Company acknowledges that the Executive would be irreparably injured by a violation of Paragraph 8, and the Company agrees that the
Executive, in addition to any other remedies available to the Executive for such breach or threatened breach, shall be entitled to a preliminary injunction, temporary restraining order, or other equivalent relief, restraining the Company from any
actual or threatened breach of Paragraph 8. If a bond is required to be posted in order for the Company to secure an injunction or other equitable remedy, the parties agree that said bond need not be more than a nominal sum. 

          12.         Nonalienation. The interests of the Executive under this Agreement are not subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Executive or the Executive’s beneficiary. 

          13.         Amendment. This Agreement may be amended or cancelled only by mutual agreement of the parties in writing. So long as the Executive lives,
no person, other than the parties hereto, shall have any rights under or interest in this Agreement or the subject matter hereof. 

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          14.         Applicable Law. The provisions of this Agreement shall be construed in accordance with the laws of the State of New Jersey, without
regard to the conflict of law provisions of any state.

          15.         Severability. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any
other provision of this Agreement, and this Agreement will be construed as if such invalid or unenforceable provision were omitted (but only to the extent that such provision cannot be appropriately reformed or modified). 

          16.         Waiver of Breach. No waiver by any party hereto of a breach of any provision of this Agreement by any other party, or of compliance with
any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party of any similar or dissimilar provisions and conditions at the same or any prior
or subsequent time. The failure of any party hereto to take any action by reason of such breach will not deprive such party of the right to take action at any time while such breach continues. 

          17.         Successors. This Agreement shall be binding upon, and inure to the benefit of, the Company and its successors and assigns and upon any
person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets and business, and the successor shall be substituted for the Company under this Agreement. 

          18.         Notices. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or
sent by registered or certified mail, return receipt requested, postage prepaid, or sent by facsimile or prepaid overnight courier to the parties at the addresses set forth below (or such other addresses as shall be specified by the parties by like
notice). Such notices, demands, claims and other communications shall be deemed given: 

	          	
(a)          	
in the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery;  
	 
	 	
(b)	
in the case of certified or registered U.S. mail, five days after deposit in the U.S. mail; or  
	 
	 	
(c)	
in the case of facsimile, the date upon which the transmitting party received confirmation of receipt by facsimile, telephone or otherwise;  

provided, however, that in no event shall any such communications be deemed to be given later than the date they are actually received. Communications that are to be delivered by the U.S. mail or by overnight service or two-day
delivery service are to be delivered to the addresses set forth below: 

 

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 to the Company:   

                      Westwood Computer Corporation 

                          11 Diamond Road 

                          Springfield, NJ 07081 

  

  or to the Executive: 

                        at address in Company’s records. 

                        All notices to the Company shall be directed to the attention of Secretary of the Company, with a copy to the Board of Directors of the Company. Each party, by written notice furnished to the other
party, may modify the applicable delivery address, except that notice of change of address shall be effective only upon receipt. 

          19.         Arbitration of All Disputes. Any controversy or claim arising out of or relating to this Agreement (or the breach thereof) shall be
settled by final, binding and non-appealable arbitration by three arbitrators. Except as otherwise expressly provided in this Paragraph 19, the arbitration shall be conducted in accordance with the rules of the American Arbitration Association (the
“Association”) then in effect. One of the arbitrators shall be appointed by the Company, one shall be appointed by the Executive, and the third shall be appointed by the first two
arbitrators. If the first two arbitrators cannot agree on the third arbitrator within 30 days of the appointment of the second arbitrator, then the third arbitrator shall be appointed by the Association. This Paragraph 19 shall not be construed to
limit the Company’s right to obtain relief under Paragraph 11 with respect to any matter or controversy subject to Paragraph 11, and, pending a final determination by the arbitrator with respect to any such matter or controversy, the Company
shall be entitled to obtain any such relief by direct application to state, federal, or other applicable court, without being required to first arbitrate such matter or controversy. The losing party shall bear all expenses of the arbitrator incurred
in any arbitration hereunder and shall reimburse the prevailing party for any related reasonable legal fees and expenses directly attributable to such arbitration; provided that such legal fees are calculated on an hourly, and not on a contingency
fee, basis. 

          20.         Survival of Agreement. Except as otherwise expressly provided in this Agreement, the rights and obligations of the parties to this
Agreement shall survive the termination of the Executive’s employment with the Company. 

          21.         Entire Agreement. Except as otherwise indicated herein, this Agreement, including any Exhibit(s) attached hereto, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, if any, between the parties relating to the subject matter
hereof, including but not limited to the Original Agreement; provided, however, that nothing in this Agreement shall be construed to limit any policy or agreement that is otherwise applicable relating to confidentiality, rights to inventions,
copyrightable material, business and/or technical information, trade secrets, solicitation of employees, interference with relationships with other businesses, competition, and other similar policies or agreement for the protection of the business
and operations of the Company and the Subsidiaries. 

- 13 - 

[Signatures appear on the following page] 

 

 

 

- 14 - 

                        IN WITNESS THEREOF, the Executive has hereunto set her hand, and the Company has caused these presents to be executed in its name and on its behalf, all as of the Effective Date. 

  	MARY MARGARET GRABEL 
	 
	 
	/s/ Mary Margaret Grabel 
	 
	 
	WESTWOOD COMPUTER CORPORATION 
	 	 	 
	 
	/s/ Dinesh Desai 
	 	 	 
	By:       	Dinesh Desai 	 
	Its: 	Chairman 	 

 

 - 15 - 

Schedule 2(a) 

Salary 

	
Year 1
  	
$25,000 (pro rated)
  
	 	 
	
Year 2
  	
 $25,000
  
	 	 
	
Year 3
  	
 $25,000
  

- 16 - 

Schedule 2(b) 

Benefits 

	
1.	
Reimbursements for all travel and other expenses as per company policy  
	
2.          	
First Class Air travel, it is understood that whenever possible Award points will be used for upgrade to First Class  
	
3.	
Company Health and Medical Plan  
	
4.	
Three weeks vacation, Company approved holidays and 5 days personal time  
	
5.	
Benefits available generally to senior level executives of Company  
	
6.	
Access to 401k plan or any other Executive deferred compensation plan  
	 

- 17 -Exhibit 10.3 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

           This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of the 5th day of February, 2007 (the
“Effective Date”), by and between Emtec, Inc., a Delaware corporation (the “Company”) and Ronald Seitz (the
“Executive”). 

WITNESSETH THAT: 

           WHEREAS, Executive is currently employed by the Company pursuant to the terms of the Employment Agreement dated July 13, 2005 (the “Original Agreement”); 

           WHEREAS, the Company desires to assure itself of the continued employment of the Executive and to encourage his continued attention and dedication to the best interests of the Company, by replacing
the Original Agreement with this amended and restated Agreement; 

           WHEREAS, the Executive desires to remain and continue in the employment of the Company in accordance with the terms of this Agreement. 

           NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is hereby covenanted and agreed by the Executive and the Company as follows: 

1.        Employment; Position and Responsibilities; Term. 

          (a)           During the Agreement Term (as defined below), and subject to the terms of this Agreement, the Executive shall be employed by the Company
and shall occupy the position of President of Emtec Systems Group. The Executive agrees to serve in that position or in such other executive offices or positions with the Company or a Subsidiary (as defined below), as shall from time to time be
determined by the Board of Directors (the “Board”). The Executive represents that his employment with the Company does not violate any other agreement to which he is a
party.

          (b)           During the Agreement Term, the Executive shall report solely and directly to the Chief Executive Officer of the Company or his designee.

          (c)           During the Agreement Term, while employed by the Company, the Executive shall devote his full time and best efforts to the business of the
Company and shall perform all duties and services for and on behalf of the Company as shall be reasonably requested by the Board in its sole and absolute discretion. The Executive’s duties may include providing executive services for both the
Company and the Subsidiaries, as determined by the Board. 

          (d)           During the Agreement Term, the Company shall use its reasonable best efforts to maintain an office within 15 miles of Suwanee, Georgia.

          (e)           The term of employment under this Agreement shall commence on the Effective Date and, unless earlier terminated under Section 3 below,
shall terminate on August 31, 2008 (the “Agreement Term”). Thereafter, the Agreement Term may be extended annually for additional one-year periods with the mutual consent of the
Company and the Executive.

          (f)           For purposes of this Agreement, the term “Subsidiary” shall mean any
corporation, partnership, joint venture or other entity during any period in which at least a 50% interest in such entity is owned, directly or indirectly, by the Company (or a successor to the Company). 

2.        Compensation and Other Benefits. 

          (a)           Base Salary. During the Agreement Term, the Executive shall receive an annual base salary
(“Base Salary”), payable in accordance with the Company’s normal payroll practices, of $250,000. The Board shall increase such Base Salary by 5% as of each August 5 during
the Agreement Term. 

          (b)           Bonus. In respect of the fiscal year ending August 31, 2006, the Executive shall be eligible to receive a
bonus in accordance with the terms of the Original Agreement. In respect of each fiscal year ending thereafter during the Agreement Term, beginning with the fiscal year ending August 31, 2007, the Executive shall participate in the Company’s
Annual Incentive Plan (the “AIP”) as maintained by the Company for the benefit of senior executives, and shall be eligible to receive an annual bonus (the “Bonus”) if the Executive and/or the Company achieve performance goals established by the Board in good faith and consistent with the AIP. 75% of the Bonus (if any) shall be paid within 100 days after
the end of the applicable fiscal year and the remaining 25% of the Bonus (if any) shall be paid within 10 business days after the Company’s audited (or if no audit is done for the fiscal year, the reviewed or compiled) financial statements for
the applicable fiscal year are completed. 

          (c)           Employee Benefits. During the Agreement Term, the Executive shall be entitled to participate on the same
basis as the other executive employees of the Company, in any pension, retirement, savings, medical, disability or other welfare benefit plans maintained by the Company as of the Effective Date, in accordance with the terms thereof, and as the same
may be amended and in effect from time to time. 

          (d)           Expense Reimbursement. During the Agreement Term, the Company shall reimburse the Executive for all
out-of-pocket travel, lodging, meal and other reasonable expenses incurred by him in connection with his performance of services 

2 

hereunder, upon submission of appropriate evidence, in accordance with the Company’s policy, of the incurrence and purpose of each such expense and otherwise in accordance with the Company’s business travel and expense
reimbursement policy as in effect from time to time. 

          (e)           Vacation. During the Agreement Term, Executive shall be entitled to four weeks of paid vacation on an
annualized basis. Vacation shall be prorated for part of a year worked. Such vacation shall be taken at such times as shall be approved by the Company, in the reasonable exercise of its discretion. 

          (f)           Automobile Allowance. During the Agreement Term, the Executive shall be entitled to an automobile
allowance of $15,000 per year, payable in equal monthly installments. During the Agreement Term, the Company shall also reimburse the Executive, after receipt of appropriate documentation, for all reasonable costs of maintaining the automobile
acquired by the Executive pursuant to such allowance, including, but not limited to, the costs of repair, maintenance, insurance, registration and fuel. 

          (g)           Additional Cash Payment. During the Agreement Term, the Executive shall be entitled to an annual cash
payment in the pre-tax amount of $12,000, which amount shall be payable to the Executive in equal monthly installments of $1,000. 

          (h)           Other Perquisites. During the Agreement Term: 

                 (i)            The Company shall provide the Executive with a monthly cash allowance of $500. 

                  (ii)           The Executive shall be entitled to travel business class for all of his international business travel and coach class for all of his domestic business travel, and he shall be entitled to use any airline miles earned through his business travel to upgrade to first class. 

3.       Termination of Employment. The Executive’s employment with the Company during the Agreement Term may be terminated by the Company or
the Executive without breach of this Agreement only as provided in this Section 3. 

          (a)           Termination Due to Disability. The Executive’s employment hereunder may be terminated by the Company
in the event of the Executive’s Disability (as defined below). For purposes of this Agreement, “Disability” shall mean a physical or mental disability that prevents or is
reasonably expected to prevent the performance by the Executive of his duties hereunder for (x) a continuous period of 90 days or longer or (y) 120 days or more over any 365 day period whether or not continuous. The determination of the Executive’s Disability shall (i) be made by an independent physician selected
by the Company and the Executive (provided that if the Executive and the Company cannot 

3 

agree as to such an independent physician, each shall appoint one physician and those two physicians shall appoint a third physician who shall make such determination), (ii) be final and binding on the parties hereto and (iii) be made taking into account such competent medical evidence as shall be presented to such independent physician by the
Executive and/or the Company or by any physician or group of physicians or other competent medical experts employed by the Executive and/or the Company to advise such independent physician. 

          (b)           Termination Due to Death. The Executive’s employment hereunder shall terminate upon the
Executive’s death. 

          (c)           Termination by the Company for Cause. The Company may immediately terminate the Executive’s
employment hereunder at any time for Cause (as defined below). “Cause” shall mean (i) the continued failure of the
Executive substantially to perform his duties hereunder or his negligent performance of such duties (other than any such failure due to the Executive’s physical or mental illness), (ii)
the Executive having engaged in misconduct that has caused or is reasonably expected to result in material injury to the Company or any of its Subsidiaries, (iii) a material violation by the
Executive of a Company policy, (iv) the breach by the Executive of any of his material obligations hereunder or under any other
written agreement or covenant with the Company or any of its Subsidiaries, (v) a material failure by the Executive to timely comply with a lawful direction or instruction given to him by the
Board or the Chief Executive Officer, (vi) the Executive having been convicted of, or entering a plea of guilty or nolo contendere to, a crime that constitutes a felony or a misdemeanor
involving moral turpitude (or comparable crime in any jurisdiction that uses a different nomenclature), including any offense involving dishonesty as such dishonesty relates to the Company’s assets or business or the theft of Company property
and (vii) the Executive’s insobriety or use of illegal drugs, chemicals or controlled substances either (A) in the course of
performing the Executive’s duties and responsibilities under this Agreement, or (B) otherwise affecting the ability of the Executive to perform the same. In the event of litigation
concerning the Company’s termination of Executive for Cause, the Company shall prove that it terminated the Executive for Cause by a standard of clear and convincing evidence. In the case of a termination for Cause as described in clauses (i),
(ii), (iii), (iv) and (v) of this Section, the Board or the Chief Executive Officer, as applicable, shall give the Executive written notice of its or his intention to terminate him for Cause, such notice to state in detail the particular
circumstances that constitute the grounds on which the proposed termination for Cause is based. The Executive shall have ten (10) days, after receiving such special notice, to cure such grounds, to the extent such cure is possible. If he fails to
cure such grounds to the Board’s reasonable satisfaction, the Executive shall thereupon be terminated for Cause.  

          (d)           Termination by Company Without Cause. The Company may terminate the Executive’s employment hereunder
at any time Without Cause (as defined below) by 

4 

giving the Executive prior written Notice of Termination (as defined below), which notice shall be effective immediately, or at such later time as specified in such notice. A termination “Without
Cause” shall mean a termination of the Executive’s employment by the Company other than as a result of his Disability or for Cause. Notwithstanding the foregoing provisions of this Section 3(d), if the
Executive’s employment is terminated by the Company in accordance with this Section 3(d) and, within a reasonable time period thereafter, it is determined by the Board that circumstances existed which would have constituted a basis for
termination of the Executive’s employment for Cause in accordance with Section 3(c), the Executive’s employment will be deemed to have been terminated for Cause in accordance with Paragraph 3(c). 

          (e)           Voluntary Termination. The Executive may terminate his employment hereunder at any time by giving the
Company prior written Notice of Termination at least 90 days prior to such termination; provided that the Board may, in its sole discretion, terminate the Executive’s employment hereunder prior to the expiration of the 90-day notice period. In
such event and upon the expiration of such 90-day period (or such shorter time as the Board in its sole discretion may determine), the Executive’s employment hereunder shall immediately and automatically terminate. 

          (f)           Notice of Termination. Any termination of the Executive’s employment by Company or the Executive,
other than a termination due to the Executive’s death, shall be communicated by a written Notice of Termination addressed to the appropriate party. A “Notice of Termination”
shall mean a notice that indicates the Date of Termination (as defined below), which shall not be earlier than the date on which the notice is provided, which indicates the specific termination provision in this Agreement relied on and which sets
forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.

          (g)           For purposes of this Agreement, the “Date of Termination” is the last
day that the Executive is employed by the Company, provided the Executive’s employment is terminated in accordance with the foregoing provisions of this Section 3. 

          (h)           Resignation upon Termination. As of the Date of Termination, the Executive shall resign, in writing, from
all positions then held by him with the Company and its Subsidiaries. 

          (i)            Cessation of Professional Activity. Upon delivery of a Notice of Termination by any party, the Company may
relieve the Executive of his responsibilities and require the Executive to immediately cease all professional activity on behalf of the Company. In addition, in the event that the Board determines that there is a reasonable basis for it to
investigate whether circumstances exist that would, if true, permit the Board to terminate the Executive’s employment for Cause, the Board may relieve the Executive of his responsibilities during the pendency of such investigation.

5 

4.        Payments Upon Certain Terminations.

          (a)           General. If, during the Agreement Term, the Executive’s employment terminates for any reason, the
Executive (or his estate, beneficiary or legal representative) shall be entitled to receive the following: 

                 (i)            any earned or accrued but unpaid Base Salary through the Date of Termination (including, except in the case of a termination for Cause, with respect to unused vacation time);

                  (ii)           all amounts payable and benefits accrued under any otherwise applicable plan, policy, program or practice of the Company (other than relating to severance) in which the Executive was a participant during his employment with Company in accordance with the terms thereof; provided that the foregoing shall not be construed as requiring the Executive to be treated as employed by the Company for purposes of any employee benefit plan or arrangement following the date of the Executive’s Date of Termination except as otherwise expressly provided in this Agreement or required by law; and 

                  (iii)          in the case of any termination of employment Without Cause, (A) any earned but unpaid Bonus with respect to any fiscal year of the Company ending prior to the Date of Termination and (B) provided Executive executes and delivers a general release of all claims in form and substance satisfactory to the Company, (1) his Base Salary, at the rate in effect hereunder immediately prior to the Date of Termination, which shall be payable in installments on Company’s regular payroll dates, until August 31, 2008 and (2) a pro-rata Bonus payment for the fiscal year of the Executive’s Date of Termination, equal to the Bonus that the Executive would have been entitled to if he had remained employed by the Company at the end of such fiscal year multiplied by a fraction, the numerator of which is the number of days transpired in the fiscal year up to and including the Date of Termination, and the denominator of which is 365, which shall be payable at the time provided in Section 2(b). 

          (b)           Termination Due to Disability. If, during the Agreement Term, the Executive dies or the Company terminates
the Executive’s employment hereunder due to his Disability, the Executive (or his estate, beneficiary or legal representative) shall be entitled to receive, in addition to the payments and benefits described in Section 4(a)(i) and Section
4(a)(ii) above, (A) any earned but unpaid Bonus with respect to any fiscal year of the Company ending prior to the Date of Termination, (B) his Base Salary, at the rate in effect hereunder immediately prior to the Date of Termination, which shall be
payable in installments on Company’s regular payroll dates, until August 31, 2008 and (C) a pro-rata Bonus payment for the fiscal year of the Executive’s death or Disability, equal to the Bonus that the Executive would have been entitled
to if he had remained 

6 

employed by the Company at the end of such fiscal year multiplied by a fraction, the numerator of which is the number of days transpired in the fiscal year up to and including the Date of Termination, and the denominator of which
is 365, which shall be payable at the time provided in Section 2(b).

          (c)           No Other Obligations. If the Executive’s Date of Termination occurs during the Agreement Term under
any circumstances described in Section 3, the Company shall have no obligation to make payments under the Agreement for periods after the Executive’s Date of Termination other than those payments in accordance with Sections 4(a) and 4(b) above.

          (d)           Payment. Except as otherwise provided in this Agreement, any payments to which the Executive shall be
entitled under this Section 4, shall be made as soon as is administratively feasible following the Date of Termination.

5.       Duties on Termination. Subject to the terms and conditions of this Agreement, to the extent that there is a period of time elapsing
between the date of delivery of a Notice of Termination, and the Date of Termination, the Executive shall continue to perform his duties as set forth in this Agreement during such period, and shall also perform such services for the Company as are
necessary and appropriate for a smooth transition to the Executive’s successor, if any. Notwithstanding the foregoing provisions of this Section 5, the Company may suspend the Executive from performing his duties under this Agreement following
the delivery of a Notice of Termination providing for the Executive’s resignation, or delivery by the Company of a Notice of Termination providing for the Executive’s termination of employment for any reason; provided, however, that during
the period of suspension (which shall end on the Date of Termination), the Executive shall continue to be treated as employed by the Company for other purposes, and his rights to compensation or benefits shall not be reduced by reason of the
suspension. 

6.       Restrictive Covenants. 

          (a)           Noncompetition.

                  (i)           During the Agreement Term, and for a period ending on the later of (i) July 13, 2010 or (ii) two years after termination of the Executive’s employment with the Company (the “Restrictive Period”): 

                (A)           The Executive shall not, without the express written consent of the Board, be employed by, serve as a consultant to, or otherwise assist or directly or indirectly provide services to a Competitor (as defined below) if: (1) such services are to be provided with respect to any location in which the Company or a Subsidiary does business, or with 

7 

  respect to any location in which the Company or a Subsidiary has devoted material resources to doing business; or (2) the trade secrets, confidential information, or proprietary information (including, without limitation, confidential or proprietary methods) of the Company and the Subsidiaries to which the Executive had access could reasonably be expected to benefit the Competitor if the Competitor were to obtain access to such secrets or information. 

                 (B)           The Executive shall not, without the express written consent of the Board, directly or indirectly own an equity interest in any Competitor (other than ownership of 1% or less of the outstanding stock of any corporation listed on a national stock exchange or included in the NASDAQ System). 

                 (C)           The Executive shall not, without the express written consent of the Board, solicit or attempt to solicit any party who is then or, during the twelve-month period prior to such solicitation or attempt by the Executive was (or was solicited to become), a customer or supplier of the Company or a Subsidiary, or a user of the services provided by the Company or a Subsidiary. 

                 (D)           The Executive shall not without the express written consent of the Board, solicit, entice, persuade, induce or hire any individual who is employed by the Company or any Subsidiary (or was so employed within 90 days prior to the Executive’s action) to terminate or refrain from renewing or extending such employment or to become employed by or enter into contractual relations with any other individual or entity other than the Company or any Subsidiary, and the Executive shall not approach any such employee for any such purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity. 

                 (ii)          The term “Competitor” means any enterprise (including a person, entity, firm or business, whether or not incorporated) during any period in which it is engaged in or aiding others to conduct business that engages in, or plans to engage in, any line of business that the Company or its Subsidiaries engages in or has made plans to engage in during the Agreement Term, or within the prior 12 months was engaged in, or otherwise competes, directly or indirectly, with the Company or any of its Subsidiaries, other than Southern Computer Repair (“SCR”) (a company owned by the Executive); provided that SCR limits its business to Apple product-related services and computer disposal services provided to or for the Company, or for a third party in connection with business conducted jointly by SCR and the Company.

8 

          (b)           Non-Disparagement. The Executive and the Company agree that each will not make any false, defamatory or
disparaging statements about the other, the Subsidiaries, or the officers or directors of the Company or the Subsidiaries that are reasonably likely to cause material damage to the Executive, the Company, the Subsidiaries, or the officers or
directors of the Company or the Subsidiaries. 

          (c)           Confidential Information. The Executive agrees that, during the Agreement Term, and at all times
thereafter: 

                 (i)            The Executive agrees to keep secret all Confidential Information (as defined below) and Intellectual Property (as defined below) which may be obtained during the period of employment by the Company and that the Executive shall not reveal or disclose it, directly or indirectly, except with the Company’s prior written consent. The Executive shall not make use of the Confidential Information or Intellectual Property for the Executive’s own purposes or for the benefit of anyone other than the Company and shall protect it against disclosure, misuse, espionage, loss and theft. 

                  (ii)           The Executive acknowledges and agrees that all Intellectual Property is and shall be owned by the Company. The Executive hereby assigns and shall assign to all ownership rights possessed in any Intellectual Property contributed, conceived or made by the Executive (whether alone or jointly with others) while employed by the Company, whether or not during work hours. The Executive shall promptly and fully disclose to the Company in writing all such Intellectual Property after such contribution, conception or other development. The Executive agrees to fully cooperate with the Company, at the Company’s expense, in securing, enforcing and otherwise protecting throughout the world the Company’s interests in such Intellectual Property, including, without limitation, by signing all documents reasonably requested by the Company. 

                  (iii)           Immediately following the Date of Termination, the Executive agrees to promptly deliver to the Company all memoranda, notes, manuals, lab notebooks, computer diskettes, passwords, encryption keys, electronic mail and other written or electronic records (and all copies thereof) constituting or relating to Confidential Information or Intellectual Property that the Executive may then possess or have control over. The Executive shall provide written certification that all such materials have been returned. 

                  (iv)           For purposes of this Agreement, the following terms shall be defined as set forth below: 

                 (A)            “Confidential Information” shall mean all information, in any form or medium, that relates to the business, suppliers and prospective 

   

9 

  suppliers, existing and potential creditors and financial backers, marketing, costs, prices, products, processes, services, methods, computer programs and systems, personnel, customers, research or development of the Company and the Subsidiaries and all other information related to the Company and the Subsidiaries which is not readily available to the public. Confidential Information shall include any of the foregoing information that is created or developed by the Executive during the Agreement Term. 

                 (B)           “Intellectual Property” shall mean, with respect to the following which are created or existing during the period of the Executive’s employment by the Company, any: (1) idea, know-how, invention, discovery, design, development, software, device, technique, method or process (whether or not patentable or reduced to practice or including Confidential Information) and related patents and patent applications and reissues, re-examinations, renewals, continuations-in-part, continuations, and divisions thereof; (2) copyrightable and mask work (whether or not including Confidential Information) and related registrations and applications for registration; (3) trademarks, trade secrets and other proprietary rights; and (4) improvements, updates and modifications of the foregoing made from time to time. Intellectual Property shall include any of the foregoing that is created or developed by the Executive during the Agreement Term. 

          (d)           Duty of Loyalty to Company. Nothing in this Section 6 shall be construed as limiting the Executive’s
duty of loyalty to the Company, or any other duty otherwise owed to the Company, while the Executive is employed by the Company. 

7.        Assistance with Claims. The Executive agrees that, during the Agreement Term, and continuing for a reasonable period after the
Executive’s Date of Termination, the Executive will assist the Company and the Subsidiaries in defense of any claims that may be made against the Company and the Subsidiaries, and will assist the Company and the Subsidiaries in the prosecution
of any claims that may be made by the Company or the Subsidiaries, to the extent that such claims may relate to services performed by the Executive for the Company and the Subsidiaries. The Executive agrees to promptly inform the Company upon
becoming aware of any lawsuits involving such claims that may be filed against the Company or any Subsidiary. The Company agrees to provide legal counsel to the Executive in connection with such assistance (to the extent legally permitted), and to
reimburse the Executive for all of the Executive’s reasonable out-of-pocket expenses associated with such assistance, including travel expenses. For periods after the Executive’s employment with the Company terminates, the Company agrees
to provide reasonable compensation to the Executive for such assistance. To the extent permitted by law, the Executive also agrees to promptly inform the Company upon being asked to assist in any investigation of the Company or the Subsidiaries (or
their actions) 

10 

that may relate to services performed by the Executive for the Company or the Subsidiaries, regardless of whether a lawsuit has then been filed against the Company or the Subsidiaries with respect to such investigation. 

8.       Disclosure of Agreement. The Executive shall provide each of his subsequent employers during the one-year period following the end of the
Agreement Term with a copy of the restrictive covenants set forth in Section 6 of this Agreement in order to allow such subsequent employers to avoid inadvertently causing the violation of such covenants. The Executive shall advise the Company of
the identity of each of his subsequent employers during the one-year period following the end of the Agreement Term. 

9.       Injunctive Relief with Respect to Covenants; Certain Acknowledgments; Etc. 

          (a)           Injunctive Relief. The Executive acknowledges and agrees that the covenants, obligations and agreements of
Executive contained in Section 6 relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants, obligations or agreements will cause the Company irreparable injury for which adequate remedies are not
available at law. Therefore, the Executive agrees that the Company shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond unless required by applicable law) as a court of competent
jurisdiction may deem necessary or appropriate to restrain the Executive from committing any violation of such covenants, obligations or agreements. These injunctive remedies are cumulative and in addition to any other rights and remedies the
Company may have. The Company shall be entitled to collect from the Executive any costs of obtaining injunctive relief, including, without limitation, attorneys’ fees. 

          (b)           Blue Pencil. If any court of competent jurisdiction shall at any time deem the Restrictive Period too
lengthy, the other provisions of Section 6(a) shall nevertheless stand and the Restrictive Period herein shall be deemed to be the longest period permissible by law under the circumstances. The court shall reduce the time period to permissible
duration or size. 

          (c)           Certain Acknowledgements. The Executive acknowledges and agrees that the Executive will have a prominent
role in the management of the business, and the development of the goodwill, of the Company and its Subsidiaries and will establish and develop relations and contacts with the principal customers and suppliers of the Company and its Subsidiaries in
the United States of America and the rest of the world, all of which constitute valuable goodwill of, and could be used by the Executive to compete unfairly with, the Company and its Subsidiaries and that (i) in the course of his employment with the Company, the Executive will obtain confidential and proprietary information and trade secrets concerning the business and operations of the Company and its
Subsidiaries in the United States of America and the rest of the world that could be used to compete 

11 

unfairly with the Company and its Subsidiaries; (ii) the covenants and restrictions contained in Section 6 are intended to protect the legitimate interests of the Company
and its Subsidiaries in their respective goodwill, trade secrets and other confidential and proprietary information; (iii) the Executive desires and agrees to be bound by such covenants and
restrictions; and (iv) the compensation to be provided to the Executive are adequate consideration for the restrictive covenants provided in Section 6. 

10.      Miscellaneous. 

          (a)           Binding Effect; Assignment. This Agreement shall be binding on and inure to the benefit of the Company,
and its respective successors and assigns. This Agreement shall also be binding on and inure to the benefit of the Executive and his heirs, executors, administrators and legal representatives. This Agreement shall not be assignable by the Executive
without the prior written consent of the Company. 

          (b)           Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto concerning the
subject matter hereof and except as otherwise expressly provided herein, supercedes all prior and contemporaneous correspondence and proposals (including but not limited to summaries of proposed terms) and all prior and contemporaneous promises,
representations, understandings, arrangements and agreements, if any, concerning such subject matter (including but not limited to those made to or with the Executive by any other person); provided, however, that nothing in this Agreement shall be
construed to limit any policy or agreement that is otherwise applicable relating to confidentiality, rights to inventions, copyrightable material, business and/or technical information, trade secrets, solicitation of employees, interference with
relationships with other businesses, competition, and other similar policies or agreement for the protection of the business and operations of the Company and the Subsidiaries.

          (c)           Applicable Law. This Agreement shall be governed in all respects, including as to validity, interpretation
and effect, by the laws of the State of Delaware without giving effect to the conflict of laws rules of any state. 

          (d)           Consent to Jurisdiction; Waiver of Jury Trial; Attorneys Fees.

                 (i)           Consent to Jurisdiction. Each party hereby irrevocably submits to the jurisdiction of the courts of the State of Delaware and the federal courts of the United States of America located in the State of Delaware solely in respect of the interpretation and enforcement of the provisions of this Agreement and of the documents referred to in this Agreement, and in respect of the transactions contemplated hereby and thereby. Each party hereby waives and agrees not to assert, as a defense in any action, suit or proceeding for the interpretation and enforcement hereof, or any such document or in respect of any such transaction, 

   

12 

  that such action, suit or proceeding may not be brought or is not maintainable in such courts or that the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts. Each party hereby consents to and grants any such court jurisdiction over the person of such parties and over the subject matter of any such dispute and agree that the mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 10(k) or in such other manner as may be permitted by law, shall be valid and sufficient service thereof. 

                  (ii)           Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. Each party certifies and acknowledges that (i) no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver, (ii) each such party understands and has considered
the implications of this waiver, (iii) each such party makes this waiver voluntarily, and (iv) each such party has been induced to
enter into this agreement by, among other things, the mutual waivers and certifications in this Section 10(d)(ii). 

          (e)           Taxes. The Company may withhold from any payments made under this Agreement all applicable taxes,
including but not limited to income, employment and social insurance taxes, as shall be required by law. 

          (f)           Key Man Insurance. The Executive acknowledges that the Company may purchase “key man” insurance
on his life and hereby agrees to cooperate with the Company in obtaining such insurance, including without limitation, submitting to such medical examinations as may be required promptly upon request by the Company. 

          (g)           Amendments. This Agreement may be amended or cancelled only by mutual agreement of the parties in writing.
So long as the Executive lives, no person, other than the parties hereto, shall have any rights under or interest in this Agreement or the subject matter hereof. 

          (h)           Severability. The invalidity or unenforceability of any provision of this Agreement will not affect the
validity or enforceability of any other provision of this Agreement, and this Agreement will be construed as if such invalid or unenforceable 

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provision were omitted (but only to the extent that such provision cannot be appropriately reformed or modified). 

          (i)           Waiver of Breach. No waiver by any party hereto of a breach of any provision of this Agreement by any
other party, or of compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party of any similar or dissimilar provisions and
conditions at the same or any prior or subsequent time. The failure of any party hereto to take any action by reason of such breach will not deprive such party of the right to take action at any time while such breach continues. 

          (j)           Survival of Agreement. Except as otherwise expressly provided in this Agreement, the rights and
obligations of the parties to this Agreement shall survive the termination of the Executive’s employment with the Company. 

          (k)           Notices. Notices and all other communications provided for in this Agreement shall be in writing and shall
be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or sent by facsimile or prepaid overnight courier to the parties at the addresses set forth below (or such other addresses as shall be
specified by the parties by like notice). Such notices, demands, claims and other communications shall be deemed given: 

                 (i)            in the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery; 

                  (ii)           in the case of certified or registered U.S. mail, five days after deposit in the U.S. mail; or 

                  (iii)          in the case of facsimile, the date upon which the transmitting party received confirmation of receipt by facsimile, telephone or otherwise; 

provided, however, that in no event shall any such communications be deemed to be given later than the date they are actually received. Communications that are to be delivered by the U.S. mail or by overnight service or two-day
delivery service are to be delivered to the addresses set forth below: 

to the Company: 

                        Emtec, Inc. 

                        572 Whitehead Road, Bldg. #1 

                        Trenton, NJ 08619 

                        Facsimile number: 609.587.1930 

14 

or to the Executive: 

                        at address in Company’s records. 

                        All notices to the Company shall be directed to the attention of Secretary of the Company, with a copy to the Board. Each party, by written notice furnished to the other party, may modify the
applicable delivery address, except that notice of change of address shall be effective only upon receipt. 

          (l)           409A Compliance. Notwithstanding any other provision of this Agreement to the contrary, any amount payable
hereunder that is subject to the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) shall be paid in compliance with Section 409A of the Code and the regulations issued thereunder. It is specifically
understood and agreed that the preceding sentence may cause a six month delay in the payment of severance benefits pursuant to Section 4 hereof. In addition, amounts payable hereunder upon Executive’s termination of employment that are subject
to Section 409A of the Code shall only be paid upon her “separation from service” as defined under Section 409A of the Code. Furthermore, notwithstanding any other provision of this Agreement to the contrary, it is specifically understood
and agreed that the Company may unilaterally amend this Agreement to the extent necessary to effect compliance with Section 409A of the Code. 

          (m)           Headings. The section and other headings contained in this Agreement are for the convenience of the
parties only and are not intended to be a part hereof or to affect the meaning or interpretation hereof. 

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

15 

          IN WITNESS WHEREOF, the Company has duly executed this Agreement by its authorized representative, and the Executive has hereunto set his hand, in each case effective as of the date first above
written. 

  EMTEC, INC. 

      

      By: /s/ DINESH DESAI                

      Name: DINESH DESAI 

      Title: CHAIRMEN 

      

      EXECUTIVE 

      

      /s/ RONALD SEITZ                     

      Ronald Seitz 

   

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