Document:

ex104.htm

    Exhibit 10.4

     

    
 

    SECURITY
INTEREST AND PLEDGE AGREEMENT

    

    SECURITY
INTEREST AND PLEDGE AGREEMENT (“Pledge Agreement”) dated as July 30, 2009, by
and among OmniReliant Holdings, Inc. (“Secured Party”), Beyond Commerce, Inc. a
Nevada corporation with its principal business address at 9029 South Pecos,
Suite 2800, Henderson, NV 89074 (the “Company” or the “Debtor”), and Beyond
Commerce, Inc., as pledgor (the “Pledgor”).

    

    RECITALS

    

               A.           Reference
is made to (i) that certain Purchase Agreement of even date herewith (the
“Purchase Agreement”) to which the Company and the Secured Party are parties,
and (ii) the Transaction Agreements (as that term is defined in the Loan
Agreement), including, without limitation, the Debenture.  Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the relevant Transaction Agreements.

    

               B.           Pursuant
to the Transaction Agreements, the Debtor has certain obligations to the Secured
Party (all such obligations, the “Obligations”), including, but not limited to,
obligations to pay principal and interest of the Debenture, which was issued in
the original aggregate principal amount of $641,663, on the Maturity
Date.  The Debenture Obligations and the Warrant Obligations are
secured by the pledge of certain stock of the Company.  The
obligations of the Company and of the Pledgor, if any, under the Debenture are
referred to collectively as the “Note Obligations.”  The obligations
of the Company and of the Pledgor, if any, under the Warrant are referred to
collectively as the “Warrant Obligations.”

    

    C.           To
secure the Debenture Obligations and the Warrant Obligations, the Pledgor has
agreed to pledge certain shares of treasury Common Stock of the Company and to
issue the certificate in the name of the Secured Party as security for the
performance of the Debenture Obligations and the Warrant
Obligations.

    

    D.           The
Pledgor are shareholders, subsidiaries and/or affiliates of the Debtor and have
determined that it is in the Pledgor’ best interests, including to the benefit
of the other interests of the Pledgor in the Company, to provide the pledge
referred to herein.

    

    E.           The
Secured Party is willing to enter into the Purchase Agreement and the other
Transaction Agreements only upon receiving the Pledgor’ pledge of certain stock
of the Company, as set forth in this Pledge Agreement.

    

    NOW,
THEREFORE, in consideration of the premises, the mutual covenants and conditions
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

    

    1.           Grant of Security
Interest.

    

    (a)           To
secure the Debenture Obligations and the Warrant Obligations of Debtor, the
Pledgor hereby pledge to the Secured Party (i) all of the shares of Common Stock
(the “Pledged Shares”) set forth on the attached Schedule 2 of this
Agreement.  Unless otherwise set forth on Schedule 2 of this
Agreement, the Pledgor are the beneficial and record owner of the Pledged Shares
set forth opposite the Pledgor’s name on such Schedule.  Such Pledged
Shares are hereinafter referred to as the “Collateral.”

    

    (b)           The
Company represents and warrants to the Secured Party that the Pledged Shares are
duly authorized, validly issued, fully paid and non-assessable and that it will
not permit the transfer of the Pledged Shares except in accordance with this
Pledge Agreement while the same is in effect.

    

    (c)           (i)           The
Company has given written notice to the Transfer Agent  instructing
the issuance of the Pledged Shares in the name of the Secured Party to be held
as collateral; and

    

    (ii)           The
Pledgor hereby consent to the provisions of the preceding subparagraph (i) and
authorizes the Company to provide such notice and instructions to the Transfer
Agent.

    

    2.           Obligations
Secured.  During the term hereof, the Collateral shall secure
the following:

    

    (a)           The
performance by the Company of the Debenture Obligations and the Warrant
Obligations; and

    

    (b)           The
payment of all fees and the delivery of all stock other than principal and
interest under the Debenture.

    

    (c)           The
performance by the Pledgor of their obligations, covenants, and agreements under
this Agreement.

     

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
 

    The
obligations, covenants and agreements described in clauses (a), (b) and (c) are
the “Obligations.”

    

    3.           Perfection of Security
Interests.  Upon execution of this Pledge Agreement by the
Debtor and the Pledgor, the Pledgor shall deliver and transfer possession of the
stock certificates identified opposite the Pledgor’s name on Schedule 2 of this
Agreement together with stock transfer powers duly executed in blank by the
registered owner of the shares represented by such Certificates, with
appropriate Medallion signature guaranty (“Stock Powers”), to the Secured
Party.

    

    The
Collateral will be held by the Secured Party or the Brokerage Firm, to perfect
the security interest of the Secured Party, until the earlier of

    

    (i) the
payment in full of all amounts due under the Debenture, or

    

    (ii)
foreclosure of Secured Party's security interests as provided
herein.

    

    (c)           The
Debtor and the Pledgor hereby appoint the Secured Party, as attorney-in-fact
with powers of substitution, to execute all documents and perform all acts in
order to perfect and maintain a valid security interest for Secured Party in the
Collateral.

    

               4.           Reserved.

    

               5.           Pledgors’
Warranty.  The Pledgor represents and warrants hereby to the
Secured Party as follows with respect to the Pledged Shares set forth opposite
the Pledgor’s name on Schedule 2 to this Agreement:

    

    A.           With respect to title to the
Transferred Shares

    

    (i)           that
upon transfer by the Pledgor of the Pledgor’s Certificates and Stock Powers to
Secured Party pursuant to this Agreement at such time, if any, as contemplated
hereby upon the occurrence of an Event of Default, the purchaser of the Pledged
Shares or the Secured Party, as contemplated herein, as the case may be, will
have good title (both record and beneficial) to the relevant Pledged
Shares;

    

    (ii)           that
there are no restrictions upon transfer and pledge of the Pledged Shares
pursuant to the provisions of this Agreement except the restrictions, to the
extent applicable, imposed by Rule 144 under the Securities Act of
1933;

    

    (iii)           that
the Pledged Shares are free and clear of any encumbrances of every nature
whatsoever, the Pledgor is the sole owner of the Pledged Shares, and such shares
are duly authorized, validly issued, fully paid and non-assessable;

    

    (iv)           that
the Pledgor has owned the Pledged Shares since the date specified on Schedule 2
to this Agreement and that such shares were fully paid for as of such specified
date; and

    

    (v)           that
the Pledgor agrees not to grant or create, any security interest, claim, lien,
pledge or other encumbrance with respect to the Pledgor’s Pledged Shares or
attempt to sell, transfer or otherwise dispose of any of such shares until the
Obligations have been paid in full or this Agreement has
terminated.

    

    B.           With respect to certain
other matters:

    

    (i)           that
the Pledgor has made necessary inquiries of the Company and believes that the
Company fully intends to fulfill and has the capability of fulfilling the
Obligations to be performed by the Company in accordance with the terms of the
Transaction Agreements;

    

    (ii)           that
the Pledgor is not acting, and has not agreed to act, in any plan to sell or
dispose of the Pledged Shares in a manner intended to circumvent the
registration requirements of the Securities Act of 1933, as amended, or any
applicable state law;

    

    (iii)           that
Pledgor has been advised by counsel of the elements of a bona-fide pledge for
purposes of Rule 144(d)(3)(iv) under the Securities Act of 1933, as amended,
including the relevant SEC interpretations and affirms the pledge of shares by
the Pledgor pursuant to this Pledge Agreement will constitute a bona-fide pledge
of such shares for purposes of such Rule;

    

    (iv)           that
this Pledge Agreement constitutes a legal, valid and binding obligation of the
Pledgor enforceable in accordance with its terms (except as the enforcement
thereof may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium, and similar laws, now or hereafter in effect);
and

    

    (v)           that
the Pledgor’s address is as provided under the Pledgor’s signature on the
signature page hereof.

    

    6.           Reports under Securities Act
and Exchange Act.  With a view to making available to Secured
Party the benefits of Rule 144 promulgated under the Securities Act or any other
similar rule or regulation of the SEC that may at any time permit Secured Party
to sell securities of the Company to the public without Registration (“Rule
144”), the Company agrees to:

    

    (i)           make
and keep public information available, as those terms are understood and defined
in Rule 144;

    

    (ii)           file
with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

    

    (iii)           until
the  date when the Secured Party may sell all Registrable Securities
under Rule 144 without volume or other restrictions or limits (the “Unrestricted
Sale Date”), furnish to the Secured Party so long as the Secured Party owns or
has a security interest in the Pledged Shares (a “Holder”), promptly upon
request, (i) a written statement by the Company that it has complied with the
reporting requirements of Rule 144, the Securities Act and the Exchange Act,
(ii) if not available on the SEC’s EDGAR system, a copy of the most recent
annual or quarterly report of the Company and such other reports and documents
so filed by the Company and (iii) such other information as may be reasonably
requested to permit the Secured Party to sell such securities pursuant to Rule
144 without registration; and

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    (d)           at
the request of any Holder, give its Transfer Agent instructions (supported by an
opinion of the Company’s counsel, if required or requested by the Transfer
Agent) to the effect that, upon the Transfer Agent’s receipt from such Holder
of

    

    (i) a
certificate (a “Rule 144 Certificate”) certifying (A) that the Holder’s holding
period (as determined in accordance with the provisions of Rule 144) for the
Pledged Shares which the Holder proposes to sell (the “Securities Being Sold”)
is not less than (6) six months and (B) as to such other matters as may be
appropriate in accordance with Rule 144 under the Securities Act,
and

    

    (ii) an
opinion of counsel acceptable to the Company (for which purposes it is agreed
that Sichenzia Ross Friedman Ference LLP shall be deemed acceptable if not given
by the Company’s counsel) that, based on the Rule 144 Certificate, Securities
Being Sold may be sold pursuant to the provisions of Rule 144, even in the
absence of an effective Registration Statement,

    

    the
Transfer Agent is to effect the transfer of the Securities Being Sold and issue
to the buyer(s) or transferee(s) thereof one or more stock certificates
representing the transferred Securities Being Sold without any restrictive
legend and without recording any restrictions on the transferability of such
shares on the Transfer Agent’s  books and records (except to the
extent any such legend or restriction results from facts other than the identity
of the Holder, as the seller or transferor thereof, or the status, including any
relevant legends or restrictions, of the shares of the Securities Being Sold
while held by the Holder). If the Transfer Agent reasonably requires any
additional documentation at the time of the transfer, the Company shall deliver
or cause to be delivered all such reasonable additional documentation as may be
necessary to effectuate the issuance of an unlegended certificate.

    

    7.           Voting
Rights.  Unless and until the Secured Party has exercised its
rights under this Pledge Agreement to foreclose its security interest in the
Collateral, the Pledgor shall have the right to exercise any voting rights
evidenced by, or relating to, the Collateral.

    

    8.           Warrants and
Options.  In the event that, during the term of this Pledge
Agreement, subscription, warrants, dividends, or any other rights or option
shall be issued in connection with the Collateral, such warrants, dividends,
rights and options shall be immediately delivered to Secured Party to be held
under the terms hereof in the same manner as the Collateral.

    

    9.           Preservation of the Value of
the Collateral and Reimbursement of Secured Party.  Pledgor
shall pay all taxes, charges, and assessments against the Collateral and do all
acts necessary to preserve and maintain the value thereof.  On failure
of Pledgor so to do, Secured Party may make such payments on account thereof as
(in Secured Party's discretion) is deemed desirable, and Pledgor shall reimburse
Secured Party immediately on demand for any and all such payments expended by
Secured Party in enforcing, collecting, and exercising its remedies
hereunder.

    

    10.           Default and
Remedies.

    

    (a)           For
purposes of this Agreement, “Event of Default” shall mean any one or more of the
following events:

    

    (i)           any
default in the performance by the Company or any Pledgor of any of the Debenture
Obligations, after the expiration, without cure, of the cure period (but only if
any such cure period is specifically provided in the Transaction Agreements and
without any regard to any cure period if no such cure period is provided; it
being specifically acknowledged by the Company and the Pledgor that all payment
obligations are time of the essence obligations, with no cure periods provided),
or

    

    (ii)           a
breach by the Company or  Pledgor of any of the its respective
representations, warranties, covenants or agreements in this Pledge Agreement,
subject to applicable cure periods.

    

    (b)           During
the term of this Pledge Agreement, the Secured Party shall have the following
rights after any Event of Default and for so long as the Obligations are not
satisfied in full:

    

    (i)  the
rights and remedies provided by the Uniform Commercial Code as adopted by the
State of New York (as said law may at any time be amended), except that the
Secured Party waives any right to a deficiency pursuant to Section 9-608 thereof
or otherwise;

    

    (ii)  the
right to receive and retain all dividends, payments and other distributions of
any kind upon any or all of the Pledged Shares as additional Collateral;
and

    

    (iii)  the
right to sell, at a public or private sale, the Collateral or any part thereof
for cash, upon credit or for future delivery, and at such price or prices in
accordance with the Uniform Commercial Code (as such law may be amended from
time to time); it being understood that one or more of the Secured Party may,
but shall not be required to, take such actions jointly.  Upon any
such sale, Secured Party shall have the right to deliver, assign and transfer to
the purchaser thereof the Collateral so sold.  Secured Party shall
give the Pledgor not less than ten (10) days written notice of its intention to
make any such sale.  Any such sale shall be held at such time or times
during ordinary business hours and at such place or places as Secured Party may
fix in the notice of such sale.  Secured Party may adjourn or cancel
any sale or cause the same to be adjourned from time to time by announcement at
the time and place fixed for the sale, and such sale may be made at any time or
place to which the same may be so adjourned.  In case of any sale of
all or any part of the Collateral upon terms calling for payments in the future,
any Collateral so sold may be retained by Secured Party until the selling price
is paid by the purchaser thereof, but Secured Party shall incur no liability in
the case of the failure of such purchaser to take up and pay for the Collateral
so sold and, in the case of such failure, such Collateral may again be sold upon
like notice.  Secured Party, however, instead of exercising the power
of sale herein conferred upon it, may proceed by a suit or suits at law or in
equity to foreclose the security interest and sell the Collateral, or any
portion thereof, under a judgment or decree of a court or courts of competent
jurisdiction, the Pledgor having been given due notice of all such
action.  Secured Party shall incur no liability as a result of a sale
of the Collateral or any part thereof.

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    (iv)  in
addition to its rights and remedies under this agreement, the Debenture and all
Transaction Agreements, the Company shall have full recourse against any real,
personal, tangible or intangible assets of Pledgors, and may pursue any legal or
equitable remedies that are available to it.

    

               11.           Waiver.  Each
of the Debtor and the Pledgor waives any right that it may have to require
Secured Party to proceed against any other person, or proceed against or exhaust
any other security, or pursue any other remedy Secured Party may
have.

    

               12.           Term of
Agreement.  This Pledge Agreement shall continue in full force
and effect until the later of the payment in full of the Debenture, the exercise
of the Warrant in full or the expiration of the Warrant (collectively, the
“Pledge Termination Events”.  Upon the last Pledge Termination Event
to occur, the security interests in the relevant Collateral shall be deemed
released, and any portion of the Collateral not transferred to or sold by any
one or more Secured Party shall be returned to the Pedgors.  Upon
termination of this Pledge Agreement, the relevant Collateral shall be returned
within five (5) Trading Days to Debtor or to the Pledgor, as contemplated
above.

    

    13.           Reserved.

    

    14.           General
Provisions:

    

    14.1           Binding Agreement; No
Modification of Transaction Agreements.  This Pledge Agreement
shall be binding upon and shall inure to the benefit of the successors and
assigns of the respective parties hereto.  Except to the extent
specifically provided herein, nothing in this Pledge Agreement shall limit or
modify any provision of any of the Transaction Agreements

    

    14.2           Captions.  The
headings used in this Pledge Agreement are inserted for reference purposes only
and shall not be deemed to define, limit, extend, describe, or affect in any way
the meaning, scope or interpretation of any of the terms or provisions of this
Pledge Agreement or the intent hereof.

    

    14.3           Counterparts.  This
Pledge Agreement may be signed in any number of counterparts with the same
effect as if the signatures upon any counterpart were upon the same
instrument.  All signed counterparts shall be deemed to be one
original.  A facsimile transmission of this signed Pledge Agreement
shall be legal and binding on all parties hereto.

    

    14.4           Further
Assurances.  The parties hereto agree that, from time to time
upon the written request of any party hereto, they will execute and deliver such
further documents and do such other acts and things as such party may reasonably
request in order fully to effect the purposes of this Pledge Agreement. The
Transfer Agent Instructions annexed hereto are deemed an integral part of this
Pledge Agreement.

    

    14.5           Waiver of
Breach.  Any waiver by either party of any breach of any kind
or character whatsoever by the other, whether such be direct or implied, shall
not be construed as a continuing waiver of or consent to any subsequent breach
of this Pledge Agreement.

    

    14.6           Cumulative
Remedies.  The rights and remedies of the parties hereto shall
be construed cumulatively, and none of such rights and remedies shall be
exclusive of, or in lieu or limitation of any other right, remedy, or priority
allowed by applicable law.

    

    14.7           Amendment.  This
Pledge Agreement may be modified only in a written document that refers to this
Pledge Agreement and is executed by Secured Party, the Pledgor and the
Debtor.

    

    14.8           Interpretation.  This
Pledge Agreement shall be interpreted, construed, and enforced according to the
substantive laws of the State of New York.

    

    14.9           Governing
Law.  This Pledge Agreement shall be governed by and construed
in accordance with the laws of the State of New York.  Each of the
parties consents to the jurisdiction of the federal courts whose districts
encompass any part of the County of New York or the state courts of the State of
New York sitting in the County of New York in connection with any dispute
arising under this Pledge Agreement and hereby waives, to the maximum extent
permitted by law, any objection, including any objection based on forum non coveniens, to the
bringing of any such proceeding in such jurisdictions.

    

    14.10                      WAIVER OF JURY
TRIAL.  The parties to this Pledge Agreement hereby waive a
trial by jury in any action, proceeding or counterclaim brought by any of them
against any other in respect of any matter arising out or in connection with
this Pledge Agreement.

    

    14.11                      
Notice.  Any
notice or other communication required or permitted to be given hereunder shall
be effective upon receipt.  Such notices may be sent (i) in the United
States mail, postage prepaid and certified, (ii) by express courier with
receipt, (iii) by facsimile transmission, with a copy subsequently delivered as
in (i) or (ii) above.  Any such notice shall be addressed or
transmitted as follows:

    

    If to the
Secured Party, to:

    OMNI
RELIANT HOLDINGS, INC.

    14375
Merylake Circle

    Clearwater,
FL 33760

    Tel:           813-885-5998

    

    If to
Beyond Commerce Inc., to: Mark V Noffke

    9029
South Pecos, Suite 2800, Henderson, Nevada 89074

    

    Tel:           702-463-7000

    Fax:           888.311.9569

    

    Any party
may change its address by notice similarly given to the other parties (except
that a Secured Party need not give notice to other Secured Party).

    

    14.12                      Acknowledgement by Debtor
and Pledgors.  In the event that any provision of the
Transaction Agreements, the Guarantee or this Pledge Agreement as applied to any
party or circumstances shall be adjudged by a court to be invalid or
unenforceable, each of the Debtor or the Pledgor, as the case may be,
acknowledges and agrees that this Pledge Agreement shall remain valid and
enforceable in all respects against the Debtor and the Pledgor.

    

    

    

    

     [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.

      THE
SIGNATURES OF THE PARTIES ARE ON THE NEXT PAGE.]

     

     

     

    
 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

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

     

    
      
        
          
            
              	OMNI RELIANT HOLDINGS,
      INC.	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                      /s/
      Paul Morrison

                    	 	 	
                       

                    	 
	
                      Name:
      Paul Morrison

                    	 	 	
                       

                    	 
	
                      Title:
      Chief Executive Officer

                    	 	 	
                       

                    	 

            

          

        

      

    

     

    
      
        
          
            
              	BEYOND COMMERCE,
      INC.	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                      /s/
      Robert McNulty

                    	 	 	
                       

                    	 
	
                      Name: Robert
      McNulty

                    	 	 	
                       

                    	 
	
                      Title:   Chief
      Executive Officer

                    	 	 	
                       

                    	 

            

          

        

      

      
        
          
            
              
                
                  	 	 	 	 	 
	 	 	 	 	 
	BEYOND COMMERCE, INC.,
      Pledgor	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                          /s/
      Robert McNulty

                        	 	 	
                           

                        	 
	
                          Name: Robert
      McNulty

                        	 	 	
                           

                        	 
	
                          Title:    Chief
      Executive Officer

                        	 	 	
                           

                        	 

                

              

            

          

        

      

    

     

     

     

     

    
 5sfriedmanagreement.htm

     

    
EXHIBIT
10.1

    August
21, 2003

    

    Mr. Scott
Friedman

    
       

       

    

    Re:           MIM Corporation and
Subsidiaries

    

    Dear
Scott:

    

    MIM Corporation, a Delaware corporation
(“MIM”), is pleased to confirm your employment as Vice President - Materials
Management of its wholly-owned subsidiary Scrip Solutions, Inc. (the
“Company”).  The terms and conditions of your employment are as
follows:

    

    

    
      	
              1.
      POSITION AND
      DUTIES:

            	
              Vice
      President – Materials Management of the
Company.

            

    

    

    
      	
               
      

            	
              You
      will report primarily to the Company’s executive management and will have
      such day to day responsibilities as shall be assigned to you by the
      President and Chief Operating Officer of the Company, subject to the
      authority of the Company’s and MIM’s Board of
      Directors.  Subject to the terms and conditions of this
      Agreement, you acknowledge and understand that you are an employee at
      will.

            

    

    

    
      	
              2.
      BASE
      COMPENSATION:

            	
              Your
      base salary will be at an annual rate of $150,000.00 per year, payable
      bi-weekly, or at such other times as other employees of the Company are
      paid.

            

    

     

    
      	
              3. PARTICIPATION IN
      HEALTH

                  AND OTHER BENEFIT
      PLANS:

            	
              During
      your employment with the Company, you shall be permitted, if and to the
      extent eligible, to participate in all employee benefit plans, policies
      and practices now or hereafter maintained by or on behalf of MIM and it’s
      subsidiary and affiliate corporations, com­mensurate with your
      position.  Nothing in this agreement shall preclude MIM from
      termin­ating or amending any such plans or coverage so as to
      eliminate, reduce or otherwise change any benefit payable
      thereunder.  You shall be eligible to participate in MIM’s Cash
      Bonus Program For Key Employees.

            

    

     

    
      
        	
                4. TRANSPORTATION ALLOWANCE:

              	
                During
      your employment, the Company will provide you with a monthly allowance of
      $1,000.00 for the use of an
automobile.

              

      

    

     

    
      
        	
                5.
      EXPENSES

              	
                Subject
      to such policies as may from time to time be established by the Company's
      Board of Directors, the Company will pay or reimburse you for all
      reasonable and necessary expenses actually incurred or paid by you during
      the term of your employment in the performance of your duties under this
      agreement, upon submission and approval of expense statements, vouchers or
      other reasonable supporting information in accordance with the then
      customary practices of the
Company.

              

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
                6. VACATION:

              	
                You
      are entitled to four (4) weeks (20 business days) vacation per year during
      the term of your employment.

              

      

    

    

    
      
      

    

    
      
        	
                7. TERMINATION;
      SEVERANCE; CHANGE OF 

                    CONTROL:

              	
                Except
      as otherwise provided herein, if your employment with the Company is
      terminated for any reason whatsoever, whether by you or the Company, the
      Company would not be liable for, or obligated to pay you any bonus
      compensation or any other compensation contemplated hereby not already
      paid or not already accrued at the date of such termination, and no other
      benefits shall accrue or vest subsequent to such date.  If you
      are terminated by the Company (or any successor) other than for “Cause”
      (as defined below) or you terminate your employment with the Company for
      “Good Reason” (as defined below), you will be entitled to receive
      severance payments equal to one year of salary at your then current salary
      level, payable in accordance with the Company’s then applicable payroll
      practices and subject to all applicable federal, state and local
      withholding.

              

      

    

     

    
      	
               
      

            	
              For
      purposes of this Agreement, “Cause” shall mean any of the
      following:  (1) commission by you of criminal conduct which
      involves moral turpitude; (2) acts which constitute fraud or self-dealing
      by or on the part of you against the Company or MIM, including, without
      limitation, misappropriation or embezzlement; (3) your willful engagement
      in conduct which is materially injurious to the Company or MIM; or (4)
      your gross misconduct in the performance of duties as an employee of the
      Company or MIM, including, without limitation, failure to obey lawful
      written instructions of the Board of Directors of the Company or MIM, any
      committee thereof or any executive officer of the Company or MIM or
      failure to correct any conduct which constitutes a breach of this
      agreement between
      you and the Company or of any written policy promulgated by the Board of
      Directors of the Company or MIM, any committee thereof or any executive
      officer of the Company or MIM, in either case after not less than ten
      days' notice in writing to you of the Company's intention to terminate you
      if such failure is not corrected within the specified period (or after
      such shorter notice period if the Company or MIM in good faith deems such
      shorter notice period to be necessary due to the possibility of material
      injury to the Company or
MIM).

            

    

     

    
      	
               
      

            	
              For
      purposes of this Agreement, “Good Reason” shall mean the existence of any
      one or more of the following conditions that shall continue for more than
      30 days following written notice thereof by the Employee to the Company:
      (i) the assignment to you of duties materially inconsistent with your
      position or positions with the Company, (ii) the reduction of your then
      current annual salary rate, without your consent or (iii) the Company
      requires you to relocate your residence in order to perform your duties
      with the Company.

            

    

     

    
      	
               
      

            	
              In
      addition, if you are terminated by the Company (or any successor or
      either) within one year of a “Change of Control” (as defined below) or,
      within such one (1) year period, you elect to terminate your employment
      after the Company or a successor entity (A) assigns you duties materially
      inconsistent with your position or positions with the Company or a
      successor entity immediately prior to such Change of Control or (B)
      requires you to relocate your residence in order to perform your duties
      with the Company, the Company or that successor entity, (I) you shall
      receive severance payments equal to one year of your then current salary
      (and reimbursement for expenses incurred prior to the effective date of
      the termination of employment; (II) all outstanding unvested options
      granted to you and held by you shall vest and become immediately
      exercisable and shall otherwise be exercisable in accordance with their
      terms and (III) you shall become vested in any pension or other deferred
      compensation other than pension or deferred compensation under a plan
      intended to be qualified under Section 401(a) or 403(a) of the Internal
      Revenue Code of 1986, as amended; and (IV) you shall have no further
      rights to any other compensation or benefits hereunder on or after the
      termination of employment or any other rights
  hereunder.

            

    

    
      	
               
      

            	
              For
      purposes of this Agreement, "Change of Control" means the occurrence of
      one or more of htefollowing: (i) a "person" or “group” within the means
      the meaning of sections 13(d) and 14(d) of the Securities and Exchange Act
      of 1934 (the "Exchange Act") becomes the "beneficial owner" (within the
      meaning of Rule l3d-3 under the Exchange Act) of securities of the Company
      (including options, warrants, rights and convertible and exchangeable
      securities) representing 30% or more of the combined voting power of MIM’s
      then outstanding securities in any one or more transactions unless
      approved by at least two-thirds of MIM’s Board of Directors then serving
      at that time; provided, however, that purchases by employee benefit plans
      of MIM and by MIM or its affiliates shall be disregarded; or (ii) any
      sale, lease, exchange or other transfer (in one transaction or a series of
      related transactions) of all, or substantially all, of the operating
      assets of the Company; or (iii) a merger or consolidation, or a
      transaction having a similar effect, where (A) the Company or MIM is not
      the surviving corporation, (B) the majority of the Common Stock of MIM is
      no longer held by the stockholders of MIM immediately prior to the
      transaction, or (C) MIM’s Common Stock is converted into cash, securities
      or other property (other than the common stock of a company into which MIM
      or the Company is merged), unless such merger, consolidation or similar
      transaction is with a subsidiary of the Company or MIM or with another
      company, a majority of whose outstanding capital stock is owned by the
      same persons or entities who own a majority of MIM’s Common Stock at such
      time; or (iv) at any annual or special meeting of stockholders of MIM at
      which a quorum is present (or any adjournments or postponements thereof),
      or by written consent in lieu thereof, directors (each a "New Director"
      and collectively the "New Directors") then constituting a majority of
      MIM’s Board of Directors shall be duly elected to serve as New Directors
      and such New Directors shall have been elected by stockholders of MIM who
      shall be an (I) “Adverse Person(s)”; or (II)  “Acquiring
      Person(s)”(as each of the terms set forth in (I) and (II) hereof are
      defined in that certain Amended and Restated Rights Agreement, dated
      December 3, 2002, between MIM and American Stock Transfer & Trust
      Company, as Rights Agent.

            

    

     

    
      
        	
                8. RESTRICTIVE
      COVENANT:

              	
                As
      a condition to your employment with the Company, you will be obligated to
      enter into a restrictive covenant agreement covering, among other things,
      non-competition provisions, non-solicitation provisions, and the
      protection of the Company's and MIM’s trade secrets.  That
      agreement is attached hereto as Exhibit
A.

              

      

    

    

    

    Please call me to discuss any questions
or comments that you may have regarding these terms.  After I receive
your agreement to the foregoing, definitive documentation will be
prepared.  I look forward to hearing from you and working with
you.  Best regards.

    
 

                                                    Sincerely
yours,

                                                                                           

                                                        MIM
CORPORATION

    

    

                                                        
By:
__________________________                                                  

                                                                       
Name:

    

                                                                Title:

    

    

    Agreed to
and Accepted By:

    

    
_________________________

    Scott
Friedman

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
A

    

    RESTRICTIVE
COVENANTS

    

    Covenant Against
Competition; Other Covenants. You acknowledge that (i) the principal
business of the Company (for purposes of these restrictive covenants, the
“Company” shall include all subsidiaries and affiliates (as that term is defined
in Rule 12-b2 of the Securities Exchange Act of 1934, as amended from time to
time) of MIM  Corporation) is the provision of a broad range of
prescription products and services designed to promote the cost-effective
delivery of pharmacy benefits, including pharmacy benefit management services,
claims processing, the purchasing of pharmaceutical products on behalf of
pharmacy networks and long term care facilities (including assisted living
facilities and nursing homes), specialty pharmaceutical programs and mail order
pharmacy services, including the dispensing of prescription pharmaceutical
products, and the sale and distribution, on a retail and wholesale basis, of
OTC’s, vitamins, supplements, herbals and other goods typically offered for sale
through a retail, mail order or internet on-line pharmacy  (such
business, and any and all other businesses that after the date hereof, and from
time to time during the Term, become material with respect to the Company's
then-overall business, herein being collectively referred to as the "Business");
(ii) the Company is dependent on the efforts of a certain limited number of
persons who have developed, or will be responsible for developing the Company's
Business; (iii) is national in scope; (iv) your work for the Company
will give you access to
the confidential affairs and proprietary information of the Company;
(v) your covenants and agreements contained in these Restrictive Covenants
are essential to the business and goodwill of the Company; and (vi) the Company
would not have offered you employment but for the covenants and agreements set
forth herein.  Accordingly, you covenant and agree that:

     

            (a)           At
any time during your employment with the Company and ending nine months
following (i) termination of your employment with the Company (irrespective of
the reason for such termination) or (ii) payment of any severance, whichever
occurs last, you shall not engage, directly or indirectly, in sales or marketing
or otherwise assist any company or other business entity (which includes,
without limitation, owning, managing, operating, controlling, being employed by,
giving financial assistance to, participating in or being connected in any
material way with any person or entity other than the Company), engaged in (i)
the Business or (ii) any material component of the Business; provided, however,
that the Executive's ownership as a passive investor of less than two percent
(2%) of the issued and outstanding stock of a publicly held corporation shall
not be deemed to constitute competition.

     

            (b)           During
and after the period during which you are employed, you shall keep secret and
retain in strictest confidence, and shall not use for your benefit or the
benefit of others, except in connection with the Business and affairs of the
Company and its affiliates, all confidential matters relating to the Company's
Business and the business of any of its affiliates and to the Company and any of
its affiliates, learned by you heretofore or hereafter directly or indirectly
from the Company or any of its affiliates (the "Confidential Company
Information"), including, without limitation, information with respect to
(i) the strategic plans, budgets, forecasts, intended expansions of
product, service, or geographic markets of the Company and its affiliates,
(ii) sales figures, contracts, agreements, and undertakings with or with
respect to customers, (iii) profit or loss figures, and
(iv) customers, clients, suppliers, sources of supply and customer lists,
and shall not disclose such Confidential Company Information to anyone outside
of the Company except with the Company's express written consent and except for
Confidential Company Information which is at the time of receipt or thereafter
becomes publicly known through no wrongful act of you or is received from a
third party not under an obligation to keep such information confidential and
without breach of these Restrictive Covenants or the
Agreement.  Notwithstanding the foregoing, this section (b) shall not
apply to the extent that you are acting to the extent necessary to comply with
legal process; provided that in the event that you are subpoenaed to testify or
to produce any information or documents before any court, administrative agency
or other tribunal relating to any aspect pertaining to the Company, you shall
immediately notify the Company thereof.

                   

            (c)           During
the period commencing on the date hereof and ending two years following the date
upon which you shall cease to be an employee of the Company or its affiliates,
you shall not, without the Company's
prior written consent, directly or indirectly, (i) solicit or encourage to leave
the employment or other service of the Company or any of its affiliates, any
employee or independent contractor thereof or hire (on your behalf or any other
person or entity) any employee or independent contractor who has left the
employment or other service of the Company or any of its affiliates within one
year of the termination of such employee's or independent contractor's
employment or other service with the Company and its affiliates, or (ii)
solicit, contact, market to, work for, or assist others in soliciting any
customer or client of the Company with whom the Company was in contact with or
was providing goods and services to at the time of your termination of
employment with the Company.  During such period, you will not,
whether for your own account or for the account of any other person, firm,
corporation or other business organization, intentionally interfere with the
Company's or any of its affiliates' relationship with, or endeavor to entice
away from the Company or any of its affiliates, any person who during the Term
is or was a customer or client of the Company or any of its
affiliates.

     

            (d)           All
memoranda, notes, lists, records, property and any other tangible product and
documents (and all copies thereof) made, produced or compiled by you or made
available to you concerning the Business of the Company and its affiliates shall
be the Company's property and shall be delivered to the Company at any time on
request.

    

    Rights and Remedies upon
Breach of Restrictive Covenants.

     

            (a)           You
acknowledge and agree that any breach by him of any of the provisions of
sections (a) through (d) above (the "Restrictive Covenants") would result in
irreparable injury and damage for which money damages would not provide an
adequate remedy.  Therefore, if you breach, or threaten to commit a
breach of, any of the Restrictive Covenants, the Company and its affiliates
shall have the following rights and remedies, each of which rights and remedies
shall be independent of the other and severally enforceable, and all of which
rights and remedies shall be in addition to, and not in lieu of, any other
rights and remedies available to the Company and its affiliates under law or in
equity (including, without limitation, the recovery of damages):

     

            (b)           The
right and remedy to have the Restrictive Covenants specifically enforced
(without posting bond and without the need to prove damages) by any court having
equity jurisdiction, including, without limitation, the right to an entry
against you of restraining orders and injunctions (preliminary, mandatory,
temporary and permanent) against violations, threatened or actual, and whether
or not then continuing, of such covenants.

     

            (c)           The
right and remedy to require you to account for and pay over to the Company and
its affiliates all compensation, profits, monies, accruals, increments or other
benefits (collectively, "Benefits") derived or received by you as the result of
any transactions constituting a breach of the Restrictive Covenants, and you
shall account for and pay over such Benefits to the Company and, if applicable,
its affected affiliates.

     

            (d)           You
agree that in any action seeking specific performance or other equitable relief,
you will not assert or contend that any of the provisions of these Restrictive
Covenants are unreasonable or otherwise unenforceable.  The existence
of any claim or cause of action by you, whether predicated on the Agreement or
otherwise, shall not constitute a defense to the enforcement of the Restrictive
Covenants.

    

    Agreed to
and accepted by:

    

    

    _______________________

    Scott
Friedman

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