Hi, Carlo!
In theory, you could try something like this:
SELECT BatchSeq, Name
FROM dbo.TestTbl
WHERE
Processed = 0 and
BatchSeq = (Select MIN(BatchSeq) from dbo.TestTbl where not Processed=1)
And your update statement should use the same WHERE class condition.
It is just a kind of "proof of concept" query and you should adopt it according to your requirements.
Another way is to use scenario with JDBC adapter acting as receiver, which is more flexible, but this depends on your integration requirements and limitations.
Regards, Eugene.