Document:

Exhibit 10.23

 

	
  [GRAPHIC]

  	
  VERITAS Solutions Provider
  Agreement

  
	
  Contract Number.                                            

  
	
  (Enterprise Authorized Elite
  Solutions Provider)

  

This VERITAS SOLUTIONS PROVIDER AGREEMENT (“Agreement”), is entered
into as of the date of the last signature below (“Effective Date”), by and
between VERITAS Software Global Corporation,
a Delaware corporation having a place of business at 350 Ellis Street, Mountain
View, CA 94043, (“VERITAS”) and STRATEGIC TECHNOLOGIES, a NORTH CAROLINA
corporation, having a place of business at 301 GREGSON DRIVE CARY, NC 27511 (“Solutions Provider”).

1.                         DEFINITIONS.
The following terms as used in this Agreement shall have the meanings assigned
below. The terms may be used in the singular or in the plural, as the context
requires.

(a)                    “Annual Sales Target” means the annual minimum sales target set
forth in Exhibit B (Program Requirements, Benefits and Terms),
comprising total license revenue, net of discounts, paid to VERITAS for
Solutions Provider’s purchases of Qualified Product under this Agreement.

(b)                   “Demonstration Copy” means a copy of Software with which Solutions
Provider may demonstrate Software capabilities to potential End Users.

(c)                    “Direct Sourcing Addendum”  or “DSA” means
an attachment hereto which, if executed between Solutions Provider and VERITAS,
sets forth the terms under which Solutions Provider shall exclusively order and
obtain Products, Professional Services and Support for distribution to End
Users.

(d)                   “End User” means a licensee of Products who acquires such
products for its internal use rather than distribution or sublicensing.

(e)                    “End User License” means the then-current software license terms
delivered by VERITAS with the Products, as modified by VERITAS from time to
time or, if applicable, the software license agreement negotiated and signed
between VERITAS and the End User for the Products.

(f)                      “License Key” means an alphanumeric code that enables an
End User to access and operate all or a portion of the Software.

(g)                   “Limited Sourcing Addendum”
or “LSA” means an attachment
hereto which, if executed between Solutions Provider and VERITAS, indicates the
Master Distributor from whom Solutions Provider shall exclusively order and
obtain Products, Professional Services and Support for distribution to End
Users.

(h)                   “Master Distributor” means an entity VERITAS authorizes under a
master distributor agreement to distribute Product, Professional Services and
Support to VERITAS resellers such as Solutions Provider. The then-current Master
Distributors are as listed in the “Distributors” area on the VERITAS Solutions
Provider partner website, as updated from time to time.

(i)                       “Price List” means VERITAS’ then-current list of End User
prices for available Products, related Support and Professional Services within
the applicable region.

(j)                       “Product” means each of the Software available on
VERITAS’ Price List and specified in Exhibit A (Products) including
media, related User Documentation and Updates pertaining to such Software.

(k)                    “Professional Services” means VERITAS’ installation, implementation,
configuration, professional or consulting services packages (and associated
consultant expense packages), including End User training for Products,
available on VERITAS’ Price List.

(l)                       “Program Requirements” means the requirements for Solution
Provider’s designated partner level within VERITAS’ Partner Program, set forth
in Exhibit B (Program Requirements, Benefits and Terms).

(m)                 “Qualified Product” means a Product so identified on Exhibit A
(Products). Only net license revenue to VERITAS from Solutions Provider’s
purchases of Qualified Product may be counted towards the Annual Sales Target,
as further described in Exhibit B (Program Requirements, Program
Benefits and Terms).

(n)                   “Qualified Revenue” means the license fee
revenue received by VERITAS (net of any discounts) for Solutions Provider’s
purchases of Qualified Product from source(s) authorized by VERITAS under
Solutions Provider’s LSA or DSA, as applicable.

(o)                   “Sales Portal” means an electronic sales
order placement and reporting system designated by VERITAS.

(p)                   “Software” means a VERITAS software product
in object code form as made available by VERITAS on its Price List.

(q)                   “Specified Fulfillment Addendum” or “SFA” means an attachment hereto which, if
executed between Solutions Provider and VERITAS, sets forth the terms under
which Solutions Provider may fulfill delivery of Product and Support to a
specific End User pursuant to such End User’s negotiated End User License and
negotiated pricing with VERITAS.

(r)                      “Support” means standard VERITAS’ technical
support for a Product, as available on VERITAS’ Price List and provided
pursuant to VERITAS’ then-current technical support policy under VERITAS’
support contract with the End User.

(s)                    “Term” means the term of this Agreement as
set forth in Exhibit B (Program Requirements, Benefits and Terms).

(t)                      “Territory” means the geographic region(s)
within which Solutions Provider may distribute Products to End Users, as
indicated in Exhibit B (Program Requirements, Benefits and Terms).

(u)                   “Updates” means a subsequent release of
Software which VERITAS makes generally available to End Users who have current
subscriptions to Support for the Software. Updates may include error
corrections and enhancements, but shall not include any release, option or
future product which VERITAS licenses separately.

(v)                   “User Documentation” means any End User
manuals, release notes, installation notes, and other materials delivered by
VERITAS with the Products (in hard copy or electronic formats).

2.                         APPOINTMENT.
Subject to the terms and conditions of this Agreement, VERITAS hereby
appoints Solutions Provider and Solutions Provider hereby accepts appointment
as a non-exclusive reseller of the Products, Professional Services and first
year Support as further described in this Agreement. Solutions Provider’s level
within VERITAS’ Partner Program is as designated in the Exhibit B
(Program Requirements, Program Benefits and Terms) executed between VERITAS and
Solutions Provider. VERITAS reserves the right to distribute the Products,
Professional Services and Support directly and indirectly through all channels
including through OEMs, other resellers, or integrators.

3.                         TERM. The
Term of this Agreement is as set forth in Exhibit B (Program
Requirements, Benefits and Terms), subject to termination under Section 10
(“Termination”) below.

VERITAS Solutions
Provider Agreement

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4.        SOLUTION PROVIDER RIGHTS AND LICENSES.

(a)                    Purchase and Distribution Rights. Subject
to Solution Provider’s compliance with this Agreement and the Program
Requirements, during the Term VERITAS grants Solutions Provider the
non-exclusive, non-transferable right in the Territory to (i) purchase the
Products, Support and Professional Services as set forth in the LSA or DSA, as
applicable, for resale to End Users, and to (ii) distribute the Products,
Support and Professional Services solely to End Users, under the terms of the
End User License and the Technical Support Terms and Conditions.

(b)                   Demonstration Copies and Updates. VERITAS
may, at its sole discretion, make Demonstration Copies available to Solutions
Provider on an as-requested basis. If VERITAS does provide Demonstration Copies,
then VERITAS grants Solutions Provider a non-exclusive, non-transferable right
for Solutions Provider to use such Demonstration Copies, during the Term and in
the Territory, solely for the purpose of Solutions Provider’s demonstrating
Software capabilities to potential End Users. VERITAS will provide Updates to
Solutions Provider’s authorized Demonstration Copies (upon Solutions Provider’s
request).

(c)                    Restrictions. Without limitation, Solutions
Provider shall not

(1)                     use or
duplicate the Software or User Documentation (including Demonstration Copies)
for any purpose other than as specified in this Agreement, or make the Software
available to unauthorized third parties;

(2)                     cause or
permit any party procuring the Product from Solutions Provider to sublicense,
timeshare, rent or lease the Product;

(3)                     use or permit
Demonstration Copies to be used for its or a third party’s internal production
use;

(4)                     resell
Product and/or Support to End Users who have a negotiated End User License
signed with VERITAS, except pursuant to an executed Specified Fulfillment
Addendum;

(5)                     resell
Product site licenses, service provider licenses (including managed service
provider, application service provider, or other usage models not permitted
under VERITAS’ standard unmodified End User License) except pursuant to a
Specified Fulfillment Addendum or other mutual written agreement executed
between the parties;

(6)                     cause or
permit the reverse engineering, disassembly, decompilation or other attempt (i)
to defeat, avoid, bypass, remove, deactivate or otherwise circumvent any
software protection mechanism in, or (ii) to derive the source code of the
underlying ideas, algorithms, structure or organization from Products, except
to the extent required by law; nor

(7)                     obtain
Products from other than its VERITAS-authorized source(s) under its LSA or DSA,
as applicable, or distribute Products, Support or Professional Services to
individuals or entities other than End Users.

(d)                   Other Offerings. Future Products may be
added to this Agreement upon mutual agreement. VERITAS is not obligated to
offer future Products, Professional Services or Support programs at the same
terms and/or conditions stated in this Agreement. VERITAS has the right to
discontinue the distribution or availability of any Product upon thirty (30)
days prior written notice to Solutions Provider.

5.                         SOLUTION
PROVIDER OBLIGATIONS.

(a)                     Program Requirements. Solution Provider
shall fulfill the applicable Program Requirements, as they may be updated by
VERITAS from time to time, and maintain compliance with such Program
Requirements during the Term.

(b)                    Marketing and Trademarks.

(1)                    Solutions
Provider agrees to use reasonable commercial efforts to market and distribute
the Products, Professional Services and Support. Solutions Provider may use the
VERITAS Trademarks solely to refer to VERITAS’ Products, Professional Services
and Support in connection with Solutions Provider’s distribution, advertising
and promotion for the Products, Professional Services and Support as authorized
under this Agreement.

(2)                    Solutions
Provider agrees not to use “VERITAS,” either the word mark or the VERITAS logo,
or the applicable Product trademarks (the “VERITAS Trademarks”) as any portion
of the Solution Provider’s tradename or trademark for its business, services or
other products. Solutions Provider will comply with any marketing and trademark
guidelines provided by VERITAS from time to time, and in its marketing efforts
Solutions Provider will not engage in any deceptive, misleading, illegal or unethical
practices that may be detrimental to VERITAS or to the Products, Professional
Services or Support.

(3)                    Solutions
Provider agrees to not remove and to include all applicable copyright and
trademark notices of VERITAS as they appear on or in the Products and in all
advertisements and marketing materials provided or approved by VERITAS.

(4)                    Before
publishing any press releases referencing VERITAS Trademarks, Solutions
Provider shall obtain VERITAS’ prior written consent, which shall not be
unreasonably delayed or denied. Otherwise, Solutions Provider agrees to obtain
VERITAS’ approval before distributing any advertising or marketing material for
the Products and/or for Support, if and as requested by VERITAS.

(5)                    Neither
Solutions Provider nor any of its employees, consultants, representatives,
agents or affiliates is authorized to make any warranty or representation,
express or implied, on behalf of VERITAS.

(c)                     Annual Sales Target. Solutions Provider’s
Annual Sales Target will be as set forth in Exhibit B (Program
Requirements, Benefits and Terms). If Solutions Provider fails to meet such
Annual Sales Target, VERITAS may adjust Solutions Provider’s level within the
VERITAS Partner Program, as further discussed in Exhibit B, or terminate
this Agreement in accordance with the provisions of Section 10 (“Termination”).

(d)                    Ordering. Solutions Provider shall execute
either an Limited Sourcing Addendum (LSA) or a Direct Sourcing Addendum (DSA)
with VERITAS. The LSA or DSA, as applicable, shall indicate the authorized
source(s) and terms under which Solutions Provider shall obtain Product,
Support and Professional Services for resale to End Users.

(e)                     End User License. VERITAS shall include its
then-standard license terms and conditions in the Product (and/or associated
packaging) made available to Solutions Provider. Solutions Provider shall
include, and shall not remove, such license terms and conditions with each unit
of the Product distributed.

(f)                       License Keys. A Product may require the
application of a License Key. End Users shall obtain any necessary License Keys
through VERITAS’ then-current License Key management processes, as modified by
VERITAS from time to time. As of the Effective Date, License Keys may be
obtained by completing VERITAS’ vLicense request process, as described in Exhibit
C (vLicense Web Based License Key Fulfillment Application). If an End User
requests, Solutions Provider may use the vLicense request process to obtain the
License Key for the End User, strictly on behalf of and for use by such End
User with Software licensed under its End User License.

VERITAS Solutions
Provider Agreement

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(g)                   Support. Solutions Provider will make its
best efforts to sell first year annual Support for every license of Product
distributed to the End User. Such Support shall be provided to End Users
pursuant to VERITAS’ then-current Technical Support Terms and Conditions,
available from VERITAS Customer Support and updated by VERITAS from time to
time. An End User shall not be entitled to access Support until the End User
completes and submits the support registration/contact form included in the
Technical Support Terms and Conditions to VERITAS and VERITAS accepts such
order.

(h)                   Professional Services. Professional Service
packages are fulfilled by VERITAS Enterprise Consulting Services on an
as-available basis. If Solutions Provider resells VERITAS Professional
Services, Solutions Provider is responsible to ensure the End User is also sold
an associated consultant expense package. Solutions Provider is responsible for
all collections of Professional Services consultant expenses from the End User
as appropriate.

(i)                       Warranty Service and Returns. If a Product
qualifies for warranty service under the warranty provisions of the applicable
End User License, Solutions Provider will return the Product to VERITAS for a
replacement media kit. Solutions Provider must first obtain a return of
materials authorization (RMA) number under VERITAS’ then current return policy
and process. Solutions Provider shall obtain RMAs and arrange for return of
Product to VERITAS either through its Master Distributor or directly with
VERITAS, depending on whether Solutions Provider has executed an LSA or a DSA
under this Agreement, respectively. In order to be eligible for warranty
service, the entire originally shipped contents of the defective Product
(including media) must be returned to VERITAS at VERITAS’ cost, accompanied by
a dated sales receipt for the defective Product, within thirty (30) days of
Solutions Provider’s receipt from the End User. VERITAS will replace returned
defective media kits on a one-for-one basis. Solutions Provider will be
responsible to arrange for delivery of the replacement Product, if any, to the
End User.

(j)                       Reporting.  Exhibit B (Program
Requirements, Benefits and Terms) sets forth whether and under what terms
Solutions Provider shall submit a monthly sales report to VERITAS.

(k)                    Records/Audit.

(1)                     Solutions
Provider agrees to maintain complete and accurate records of its activities
under this Agreement, including without limitation usage and location of
Demonstration Copies, records of the number of copies of each Product and/or
Support contracts distributed to End Users, to whom they were distributed and
payments received therefor, and (if applicable) the use of and Users of User
Ids and Passwords under Solutions Provider’s DSA.

(2)                     Solutions
Provider shall maintain and make available such records for at least three (3)
years following termination of this Agreement. Solutions Provider shall permit
VERITAS or persons designated by VERITAS to audit Solution Provider to confirm
compliance with this Agreement. VERITAS shall give Solutions Provider ten (10)
days prior written notice before commencement of any audit. Any such audit
shall be conducted during Solutions Provider’s regular business hours in such a
manner as not to unreasonably interfere with normal business activities of
Solutions Provider.

(3)                     Solutions
Provider shall pay VERITAS any underpayments reported from such audit
immediately upon receipt of invoice. The costs of conducting such audit will be
paid by VERITAS unless the audit discloses that Solution Provider’s
underpayment of fees due exceeds five percent (5%) of the fees owed for the
period audited, in which case Solutions Provider shall pay for the costs of the
audit.

(l)                       Government Requirements. Solutions Provider
shall obtain and maintain all permits, licenses and government registrations
necessary or appropriate to perform its obligations under this Agreement, and
shall complete all filings and obtain any governmental authorities required by
applicable law, including without limitations those necessary to enable
Solutions Provider to make payments to VERITAS. On VERITAS’ request, Solutions
Provider shall provide VERITAS written assurances of such compliance.

6.                         OWNERSHIP OF PROPRIETARY RIGHTS. VERITAS retains all right,
title and interest in the Product, including in all copies, improvements,
enhancements, modifications and derivative works of the Products and all
patent, copyright, trade secret and trademark rights pertaining to the
Products. Solutions Provider will take all reasonable measures to protect
VERITAS’ proprietary rights in the Products. Solutions Provider will distribute
the Products in the packaging and with the markings as provided by VERITAS, and
shall not alter or remove VERITAS’ proprietary notices.

7.                         NON-DISCLOSURE.
By virtue of this Agreement, Solutions Provider may be exposed to certain
information concerning VERITAS’ Products, proposed new software products,
Program Requirements, License Keys, pricing and other information not generally
known to the public (including the terms and conditions of this Agreement), all
of which are the confidential and proprietary information of VERITAS
(“Confidential Information”). Solutions Provider may use Confidential
Information solely as necessary to order and resell Products, Professional
Services and Support under this Agreement. Solutions Provider agrees that during
and after the term of this Agreement it will not disclose any Confidential
Information without VERITAS’ prior written consent to any third party and will
take all necessary precautions, using in any event not less than a reasonable
degree of care, to protect and keep confidential the Confidential Information.

8.                         WARRANTY
AND DISCLAIMER

(a)                    End User. VERITAS warrants the Products TO
THE END USER ONLY pursuant to the terms and conditions of the End User License.
Solutions Provider shall be solely responsible for any claims, warranties or
representations made by Solutions Provider or Solutions Provider’s employees or
agents which differ from the warranty provided by VERITAS in its End User
License.

(b)                   Solutions Provider. Demonstration Copies
(and the Sales Portal, if applicable) are provided to Solutions Provider on an
as-is basis. VERITAS MAKES NO WARRANTIES TO SOLUTIONS PROVIDER RELATING TO THE
PRODUCTS, PROFESSIONAL SERVICES, SUPPORT OR SALES PORTAL. VERITAS, TO THE
FULLEST EXTENT PERMITTED BY LAW, DISCLAIMS ANY OTHER WARRANTY, CONDITION, TERM,
UNDERTAKING OR REPRESENTATION, EXPRESS OR IMPLIED, RELATING TO THIS AGREEMENT,
INCLUDING WITHOUT LIMITATION ANY WARRANTY OF NON-INFRINGEMENT, FITNESS FOR A
PARTICULAR PURPOSE, MERCHANTABILITY OR ANY WARRANTY ARISING FROM COURSE OF
PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE.

9.                         INDEMNIFICATION.

(a)                    VERITAS
agrees, at its expense, to defend any third party claim made against Solutions
Provider that the Products infringe a patent, copyright or trade secret, and
shall indemnify Solutions Provider against any and all damages and losses
finally awarded against the Solutions Provider based upon such claims (or
agreed upon by VERITAS in settlement), provided that Solutions Provider: (1)
provides VERITAS prompt written notice of the claim to; (2) provides VERITAS
authority, assistance and information to perform its duties under this
Subsection 9(a); (3) grants VERITAS sole control of the defense and all related
settlement negotiations; and (4) has not compromised or prejudiced VERITAS’
position on the claim.

VERITAS Solutions
Provider Agreement

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(b)                   VERITAS
shall have no obligation to defend or indemnify Solution Provider for any claim
that is based on (i) a modification of the Product not provided by VERITAS;
(ii) use of a superseded release of the Products if VERITAS has made available
to Solutions Provider a current release of the Products; or (iii) the use of
the Products in combination with any software, hardware, data or other
materials not provided by VERITAS where such infringement would not have
occurred but for the combination.

(c)                    If the
Products are held or may be held, in VERITAS’ opinion, to violate a third
party’s patent, copyright or trade secret rights, VERITAS may: (1) obtain for
Solutions Provider the right to continue to resell the Products under the terms
of this Agreement; (2) modify the Products to be non-infringing; or (3)
terminate Solution Provider’s rights and VERITAS’ obligations under this
Agreement with respect to such Products.

NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT,
SECTION 9(a)-(c) STATE SOLUTION PROVIDER’S SOLE AND EXCLUSIVE REMEDY AND
VERITAS’ SOLE AND EXCLUSIVE LIABILITY, REGARDING INFRINGEMENT OR MISAPPROPRIATION
OF ANY INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY BY THE PRODUCTS.

(d)                   Solutions
Provider shall indemnify and hold VERITAS harmless from any claims or damages,
inclusive of VERITAS’ attorneys’ fees, resulting from (i) third party claims
against VERITAS arising from Solutions Provider’s use of any product not
provided by VERITAS but used in combination with the Products, if such claim
would have been avoided by the exclusive use of the Products; and (ii) from
Solution Provider’s (including its representatives) breach of any of Sections 5
(Solutions Provider Obligations), 6 (Ownership of Proprietary Rights), 7
(Nondisclosure), 8 (Warranty and Disclaimer), 12(j)(Foreign Corrupt Practices
Act) and 12(k)(Export controls) of this Agreement.

10.                  TERMINATION

(a)                    Termination.
Either party may terminate this Agreement (i) for its convenience upon thirty
(30) days prior written notice to the other party, or (ii) for the other
party’s breach upon ten (10) days prior written notice, if such breach remains
uncured at the end of the notice period.

(b)                   Effect of
Termination. Upon termination of this Agreement:

(i)                        All rights
granted Solutions Provider hereunder shall immediately terminate, and Solutions
Provider shall immediately cease reselling and distributing the Products,
Support and Professional Services, and cease using the Trademarks and
discontinue all representations that it is a VERITAS Solutions Provider.

(ii)                     Solution
Provider shall promptly destroy any Confidential Information (including any
copies or extracts thereof) and any copies of the Products in its possession or
control, including Demonstration Copies and any undistributed License Keys, and
within ten (10) days of termination shall certify in writing through a
corporate officer that all such items have been destroyed.

(iii)                  Termination
shall not affect payment obligations accruing on or before the effective date
of termination, except that the payment date of all payments due VERITAS shall
automatically be accelerated so that they shall become due and payable on the
effective date of termination, even if longer terms had been provided
previously.

(iv)                 Neither party
shall be entitled to any compensation, damages or payments in respect to
goodwill that has been established or for any damages on account of prospective
profits or anticipated sales, and neither party shall be entitled to
reimbursement in any amount for any training, advertising, market development,
investments or other costs that may have been expended by either party before
the termination of this Agreement, regardless of the reason for, or method of,
termination of this Agreement. Solutions Provider hereby waives its rights
under applicable laws for any such compensation, reimbursement, or damages.

(c)                    Survival.
The following terms shall survive any expiration or earlier termination of this
Agreement:

Sections 1 (Definitions), 5(k) (Records/Audit), 7
(Non-Disclosure), 8 (Warranty and Disclaimer), 9 (Indemnification), 10
(Termination), 11 (Limitation of Liability), 12 (Miscellaneous), and Solution
Provider’s payment obligations accrued under this Agreement prior to the
effective date of termination.

11.                  LIMITATION OF
LIABILITY

IN NO EVENT SHALL VERITAS OR ITS SUPPLIERS BE LIABLE
TO SOLUTIONS PROVIDER OR ANY PERSON FOR ANY INCIDENTAL, INDIRECT, SPECIAL OR
CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, LOSS OF PROFITS, LOSS OF
USE, LOSS OF DATA, LOSS OF GOOD WILL, COVER AND RELIANCE, INTERRUPTION OF
BUSINESS OR ANY AND ALL OTHER SIMILAR DAMAGES OR LOSS WHETHER IN CONTRACT, TORT
(INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE IN CONNECTION WITH OR
ARISING OUT OF THIS AGREEMENT, EVEN IF VERITAS, ITS SUPPLIERS OR ITS AGENTS
HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

EXCEPT AS LIMITED BY APPLICABLE LAW, IN NO EVENT SHALL
VERITAS’ TOTAL LIABILITY (WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR
OTHERWISE) IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT EXCEED THE FEES
PAID BY SOLUTIONS PROVIDER TO VERITAS DURING THE SIX MONTHS PRECEDING THE
CIRCUMSTANCES FIRST GIVING RISE TO THE CLAIM OF LIABILITY, AND IF SUCH DAMAGES
RESULT FROM THE SOLUTIONS PROVIDER’S USE OF A PRODUCT, SUPPORT OR PROFESSIONAL
SERVICES PROVIDED UNDER THIS AGREEMENT, SUCH LIABILITY SHALL BE LIMITED TO FEES
PAID FOR THE RELEVANT PRODUCT, SUPPORT OR PROFESSIONAL SERVICES GIVING RISE TO
THE LIABILITY.

THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING THE
FAILURE OF THE ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

12.                  MISCELLANEOUS

(a)                    Notices.
All notices (including address change notices) will be in writing and will be
sent to the address of the recipient set out on the front page of this
Agreement, (or such other address as the recipient may designate by notice
given in accordance with this Section 12(a)). All notices permitted or required
under this Agreement shall be delivered in person or by certified or registered
express mail. Notices may also be sent by confirmed facsimile transmission,
provided such notice is also given by mail as described in the preceding
sentence. Notices shall be effective upon receipt, and receipt shall be deemed
upon personal delivery or upon the fifth (5th) business day after deposit in
the mail. If notice is sent to VERITAS, it shall be sent to Attn: General
Counsel/Legal.

(b)                   Force Majeure.
Neither party shall be in default of any obligation (other than a payment
obligation) by reason of any failure to perform or delay in performing due to
unforeseen circumstances or to causes beyond such party’s reasonable control,
including but not limited to acts of God, war, riot, embargoes, acts of civil
or military authorities, fire, floods, accidents, strikes, or shortages of
transportation, facilities, fuel, energy, labor or materials.

VERITAS Solutions
Provider Agreement

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(c)                     Assignment. Either party may assign this
Agreement in whole to (1) a successor in interest to all or substantially all
of its assets, whether by sale, merger, or otherwise, or (2) to its parent or
to a wholly-owned subsidiary of such party or of its parent, on written notice
to the other. However, upon any assignment by Solutions Provider, VERITAS
reserves the right to terminate this Agreement on ten (10) days prior written
notice. For the purposes of this provision, a change in the persons or entities
who control fifty-percent (50%) or more of the equity, securities or voting
interest of a party (whether in a single transactions or a series of
transactions) shall be considered an assignment.

(d)                    Waiver. Any failure to enforce any
provision of this Agreement shall not constitute a waiver thereof or of any
other provision. A waiver of any breach or default shall not constitute a
waiver of any other right for subsequent or other breach or default. Any waiver
to be effective must be in writing signed by the waiving party.

(e)                     Severability. If any provision or part of
this Agreement is found by a court of competent jurisdiction of other competent
authority to be illegal or unenforceable, it will be enforced to the maximum
extent permissible, and the legality and enforceability of the other provisions
of this Agreement will remain in full force and effect.

(f)                       Injunctive Relief. It is expressly agreed
that a violation of VERITAS’ intellectual property rights, or Solution
Provider’s obligations with respect to Confidential Information, shall cause
irreparable harm to VERITAS for which a remedy at law would be inadequate.
Therefore, in addition to any and all remedies available at law, VERITAS shall
be entitled to an injunction or other equitable remedies in all legal
proceedings in the event of any threatened or actual violation of any or all of
the provisions hereof.

(g)                    Relationship Between the Parties. Each of
the parties is an independent contractor as to the other. Nothing contained
herein shall be construed as creating any agency, partnership, franchiseeship,
or other form of joint enterprise between the parties.

(h)                    Headings. The section headings appearing in
this Agreement are inserted only as a matter of convenience and in no way
define, limit, construe or describe the scope or extent of such section or in
any way affect such section.

(i)                        U.S. Government Restricted Rights. The
Software and User Documentation are deemed to be “commercial computer software”
and “commercial computer software documentation”, respectively, as defined in
DFARS Section 227.7202 and FAR Section 12.212, or their successor provisions,
as applicable. Solutions Provider may resell the Product, Support and
Professional Services to the United States federal government (“U.S.
Government”) if it has executed a GSA Schedule Sales Addendum to its LSA or
DSA, as applicable. Any use, modification, reproduction release, performance,
display or disclosure of the Software and User Documentation by the U.S.
Government shall be solely in accordance with the terms of the End User
License. Solutions Provider agrees that each copy of the Product distributed to
the U.S. Government pursuant to the DFARS will bear the restricted rights
legend specified therein.

(j)                        Foreign Corrupt Practices Act. Solutions
Provider (including its officers, directors, employees and agents) shall not
pay, offer, promise or authorize the payment, directly or indirectly, of any
monies or anything of value to any official or employee of any foreign
government, including any government-owned or controlled entity, or of a public
international organization, or any political party, party official, or
candidate for political office, for the purpose of improperly inducing or
rewarding favorable treatment or advantage in connection with this Agreement or
with Solutions Provider’s relationship with VERITAS.

(k)                     Export Controls. Each party agrees to
comply with all applicable laws, rules, and regulations in connection with its
activities under this Agreement. Solutions Provider will not export or
re-export (directly or indirectly) the Products or other technical data without
complying with U.S. Export Administration Act of 1979, as amended, and the
regulations promulgated thereunder.

(l)                        Governing Law. This Agreement will be
governed by and construed in accordance with the laws of the State of
California, exclusive of any provisions of the United Nations Convention on
Contracts for Sale of Goods, including any amendments thereto, and without
regard to principles of conflicts of law. Any legal action or proceeding
relating to this Agreement shall be instituted in a state or federal court in
Santa Clara County, California. VERITAS and Solutions Provider agree to submit
to the jurisdiction of, and agree that venue is proper in, these courts in any
such legal action or proceeding.

(m)                  Statute of Limitations. Except for VERITAS’
claims for unpaid fees or breach of confidentiality or infringement of any
intellectual property right, any action arising out of or relating to this
Agreement or products or services provided hereunder must be commenced within
two (2) years from the date on which the circumstances giving rise to the claim
were known or reasonably should have been known.

(n)                    Counterparts. This Agreement may be signed
in two counterparts which together shall form a single agreement as if both
parties had executed the same document. Signed copies of this Agreement
(including any of its addenda, attachments, and exhibits, and any purchase
order forms submitted hereunder) provided via facsimile transmission will be
deemed binding the same extent as original documents.

(o)                    Solutions Provider Authority. Solutions
Provider warrants that it has full authority to enter into and perform this
Agreement, and the person signing this Agreement on Solution Provider’s behalf
has been duly authorized and empowered to do so. Solutions Provider
acknowledges that it has read this Agreement, understands it and agrees to be
bound by it.

(p)                    Entire Agreement. It is expressly agreed
that the terms of this Agreement, including any addenda hereto, shall supersede
(1) any VERITAS Partner Program guidelines or frequently-asked-question (FAQ)
information, or (2) any different, inconsistent or preprinted terms in any
invoice, order form, acknowledgement or confirmation issued by Solutions
Provider, regardless of whether such document is signed and returned by
VERITAS. As to Solutions Provider, in the event of any conflict between this
Agreement and any unsigned or “shrinkwrap” license included in any Product
package, media or electronic version provided by VERITAS, the terms of this
Agreement shall govern and any such Product shall be licensed to Solutions
Provider under the terms of this Agreement. This Agreement including its
addenda is the complete and exclusive agreement between the parties with
respect to the subject matter hereof, and supersedes any previous or
contemporaneous agreement, proposal, commitment, or representation, whether
oral or written, and any other communications between the parties in relation
to such subject matter. Any modifications to this Agreement shall be made in
writing and must be duly signed by authorized representatives of each party or
they shall be void and of no effect. This Agreement does not constitute an
offer by VERITAS and it shall not be effective until signed by both parties.

 

VERITAS Solutions
Provider Agreement

version (03.20.02)

5

 

ATTACHMENTS

 

	
  EXHIBIT A:

  	
   

  	
  PRODUCTS

  
	
  EXHIBIT B:

  	
   

  	
  PROGRAM REQUIREMENTS, PROGRAM BENEFITS AND TERMS

  
	
  EXHIBIT C:

  	
   

  	
  vLICENSE (WEB BASED LICENSE KEY FULFILLMENT APPLICATION)

  
	
  EXHIBIT D:

  	
   

  	
  LIMITED SOURCING ADDENDUM (LSA)

  
	
   

  	
  Or

  	
  DIRECT SOURCING ADDENDUM (DSA) (as applicable and as executed between
  Solutions Provider and VERITAS)

  

AGREED AND ACCEPTED as of the Effective Date:

 

	
  VERITAS SOFTWARE GLOBAL CORPORATION

  	
   

  	
  SOLUTIONS PROVIDER: STRATEGIC TECHNOLOGIES

  
	
  By: 

  	
  

  /s/ John F. Brigden

  	
   

  	
  By: 

  	
  

  /s/ Pat Allen

  
	
  Name: 

  	
  JOHN F. BRIGDEN

  	
   

  	
  Name: 

  	
  PAT ALLEN

  
	
  Title: 

  	
  Vice President and General
  Counsel

  	
   

  	
  Title: 

  	
  VICE PRESIDENT & GENL
  MANAGER

  
	
  Date

  Signed:

  	
  6-1-02

  	
   

  	
  Date

  Signed:

  	
  4/4/02

  

[STAMP]

 

VERITAS Solutions
Provider Agreement

version (03.20.02)

6

 

For use with
Enterprise Authorized ELITE Solutions Providers only.

EXHIBIT A

PRODUCTS

This EXHIBIT A, PRODUCTS (“Exhibit A”) is an attachment to the VERITAS
Solutions Provider Agreement between VERITAS and Solutions Provider
(“Agreement”). All capitalized terms not otherwise defined in this Exhibit A
shall have the meanings given in the Agreement, including its other
attachments.

1.                         Product Designations. VERITAS’ designation of standard
Products as either “Enterprise” or “Commercial” products are as found on the
VERITAS Partner Network website, as updated by VERITAS from time to time.

2.                         Authorized Resale.

(a)                    Products. During the Term, during such time
as Solutions Provider satisfies all Program Requirements set forth in Exhibit
B (Program Requirements, Program Benefits, and Terms), VERITAS Solutions
Provider is authorized to resell the following VERITAS Products (and related
Support and Training):

•                            VERITAS
Products designated by VERITAS as “Enterprise”
software product; and

•                            VERITAS
Products designated by VERITAS as “Commercial”
software product

(b)                   Interim Selling. Notwithstanding Section
2(a) above, during the first six (6) months of the initial Term of the
Agreement, if Solutions Provider has not yet completed the education and
certification requirements described in Exhibit B, Section 3(d)(Training
and Certifications) of the Agreement, Solutions Provider may purchase and
resell the Products described in Paragraph 2(a) above (and related Support and
Training) provided Solutions Provider is making good faith efforts and progress
to satisfy the Program Requirements, as determined solely by VERITAS in its
good faith estimation.

3.                         Qualified Products. Only those Enterprise products which
Solutions Provider obtains from the authorized sources indicated on Solutions
Provider’s LSA or DSA, as applicable, are Qualified Products for purposes of
determining the Qualified Revenue counting towards Solutions Provider’s Annual
Sales Target, as further described in Exhibit B, Section 2(b)(Annual
Sales Target).

4.                         Product
Sourcing.

(a)                    Solutions
Provider shall, as indicated by VERITAS, execute either a Limited Sourcing
Addendum (LSA) or Direct Sourcing Addendum (DSA) with VERITAS under the
Agreement.

(b)                   The LSA or DSA,
as applicable, indicates the authorized source(s) from which Solutions Provider
shall exclusively obtain Products, Support and Training for resale to End Users

 

Enterprise
Authorized Elite

 

 

For use with Enterprise Authorized
ELITE Solutions Providers only.

EXHIBIT B

PROGRAM REQUIREMENTS, PROGRAM BENEFITS AND TERMS

This EXHIBIT B, PROGRAM REQUIREMENTS,
PROGRAM BENEFITS AND TERMS supplements the terms of the VERITAS Solutions
Provider Agreement by and between VERITAS and Solutions Provider (“Agreement”).
All capitalized terms not otherwise defined in this Exhibit B shall have
the meanings given in the Agreement, including its other attachments. The effective
date of this Exhibit B is the Effective Date of the Agreement.

1.                         PROGRAM LEVEL:                     ENTERPRISE AUTHORIZED ELITE

2.                         TERM. The initial Term of the Agreement is the period between
the Effective Date, through March 31, 2003.
Thereafter, the Agreement will automatically renew on April 1 of each year, and
the Term shall be extended, for subsequent twelve (12) month renewal periods
unless either party terminates the Agreement in accordance with Section 10
thereof.

3.                         PROGRAM REQUIREMENTS: Solutions Provider is required to
fulfill the following Program Requirements:

(a)                    Authorized Sourcing. Procure Product,
Support and Professional Services only through authorized VERITAS source(s) as
designated on Solutions Provider’s LSA or DSA, as applicable.

(b)                   Sales Territory. The Territory within which
Solution Provider is authorized to market and distribute the Products, Support
and Professional Services to End Users is: 200-mile radius around each of
the following Solutions Provider offices:

 

	
  Street Address

  	
  City, State/Province
  & Postal Code

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

Attach
additional sheets as necessary

(c)       Volume and Reporting.

•                             [***]

•                             [***]

(d)       Training and Certifications.

•                             Sales
Training. Ensure that seventy-five percent (75%) of Solutions Provider’s
sales staff completes free web-based VERITAS’ Sales Specialist Training and
passes test.

•                             Consultant
Training. Complete necessary training for four (4) individuals to become
VERITAS Certified Professionals; any courses which require payment will be
provided at VERITAS Price List less a twenty-percent (20%) discount.

•                             Hardware
Platform/Storage Knowledge. Solutions Provider must be authorized to resell
at least three (3) of the following Hardware Platform/Storage partner
technologies:

•                            SUN,
HP-UX, IBM AIX, McData, HDS, Oracle, and STK

•                            Authorization
to sell is as granted by the applicable above-named Hardware Platform/Storage
technology partner

•                             Sales
Champions. Have a defined Storage practice measured by maintaining a Sales
Champion (a sales representative or other sales advocate) who has revenue goals
and commission objectives or bonuses based on sale of VERITAS Product.

•                             Education.
Commit to annual education requirement measured by either

•                            Sales
Champion attendance at annual VERITAS Sales Champion conference; and

•                            Sales
Engineer attendance at four (4) VERITAS-delivered Tech Seminars or Training
seminars delivered by one of the Hardware Platform/Storage partners identified
above.

*** Redacted information — confidential treatment
requested.

Enterprise Authorized
Elite

 

 

For use
with Enterprise Authorized ELITE Solutions Providers only.

(e)                    End User Value-Add.

•                             Pre-Sales
Assistance. Commit to and maintain a business model under which a minimum
of fifteen-percent (15%) of Solutions Provider’s revenue derives from Pre-Sales
Consulting Services fees for End User technology implementations.

•                             Geographic
Presence. Have sales and technical resources dedicated to a Solutions
Provider office location within Two Hundred (200) mile radius of End User
location. (See Paragraph 3(b)(Sales Territory) above)

(f)                      Organizational
Support.

•                             Operations
Reviews. Participate in a quarterly operations review with VERITAS’ Area
and Channel executives at VERITAS’ request. Solutions Provider agrees to
provide executive level support in such quarterly operations review. VERITAS
will provide Solutions Provider with thirty (30) days advance notice of the
date of each quarterly operations review

•                             Marketing
Programs. Commit to and implement four (4) VERITAS marketing programs
annually

•                             Executive
Participation. Participate in the annual Executive Partner Summit
(Solutions Provider participant: Vice President or above)

(g)                   VERITAS Cluster Server (VCS) Authorization -
Additional Program Requirements. To sell VCS, Solutions Provider
must either (1) have completed the below additional Program Requirements, or
(2) sell the VERITAS ProLaunch consulting service for VCS to accompany each
sale. Paragraph 2(b) (Interim Selling) of Exhibit A (Products) does not
apply to this provision.

•                             Two
(2) of Solutions Provider’s Sales Engineers must attend VERITAS’ free 3-day
technical VCS training course delivered through Channel Education Services, and
pass the exam at the end of the course

•                             Upon
completion of the training and exam requirement and delivery of confirming
certificate, Solutions Provider will be authorized to resell VCS

•                             If
Solutions Provider loses one of the Sales Engineers trained on VCS as above, to
maintain authorized VCS reseller status a replacement Sales Engineer must
complete VCS training and pass exam within 90 days

3.                         NON-COMPLIANCE
WITH PROGRAM REQUIREMENTS. If Solutions Provider does not meet and maintain
compliance with these Program Requirements, then VERITAS may at its sols
discretion:

•                             adjust
Solutions Provider’s program level designation within the VERITAS Partner
Program (including corresponding Annual Sales Target, Program Requirements, and
program benefits) by terminating this Exhibit B and having Solutions
Provider execute a replacement Exhibit B for the appropriate program
level; and/or

•                             adjust
Solutions Provider’s applicable discount, if Solutions Provider has a DSA in
effect with VERITAS, or

•                             terminate
the Agreement in accordance with Section 10 of the Agreement.

4.                       PROGRAM
BENEFITS. [***]

(a)                    [***]

•                             [***]

•                             [***]

•                            [***]

•                            [***]

•                            [***]

•                            [***]

*** Redacted information — confidential treatment
requested.

Enterprise Authorized
Elite

 

 

For use with
Enterprise Authorized ELITE Solutions Providers only.

(b)                   [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

(c)                    [***]

•                             [***]

•                             [***]

(d)                   [***]

•                             [***]

•                             [***]

(e)                    [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

(f)                      [***]

AGREED AND ACCEPTED as of April 1, 2002:

 

	
  VERITAS
  SOFTWARE GLOBAL CORPORATION

  	
   

  	
  SOLUTIONS
  PROVIDER

  	
  STRATEGIC
  TECHNOLOGIES

  
	
  By: 

  	
  

  /s/ John F. Brigden

  	
   

  	
  By: 

  	
  

  /s/ Pat Allen

  
	
  Name:

  	
  JOHN F. BRIGDEN

  	
   

  	
  Name:

  	
  PAT ALLEN

  
	
  Title:

  	
  Vice President and General
  Counsel

  	
   

  	
  Title:

  	
  VICE PRESIDENT & GENL
  MANAGER

  
	
  Date

  Signed:

  	
  6-1-02

  	
   

  	
  Date

  Signed: 

  	
  4/4/02

  
						

[STAMP]

*** Redacted information — confidential treatment requested.

Enterprise Authorized
Elite

 

 

For use with
Enterprise Authorized ELITE Solutions Providers only.

EXHIBIT
C

VLICENSE

(WEB-BASED LICENSE KEY FULFILLMENT APPLICATION)

Software
License Key Request Form / Registration Form

You can now obtain a license key for your VERITAS product by
accessing vLicensesm, our new online licensing application, at http://vlicense.veritas.com.
You will need a valid email address and the information on this form. See the
new web site for its additional licensing capabilities.

You may choose to request your license key by faxing
this completed form to:

VERITAS Licensing Department at 925-931-2487

License
keys will be issued via e-mail, unless otherwise requested. License keys are
issued in the order they are received during standard business hours (6am to
6pm PST Monday through Friday, excluding holidays). If you have questions
pertaining to this form, please call the License Key Hotline: 925-931-2464 from
6:30 am to 4:30 pm PST.

Leave space for Item notes (dynamic) 

Leave space for Item notes (dynamic)

 

	
  Customer Number:

  	
   

  	
   

  
	
  Platform:

  	
   

  	
  Tier:

  
	
  Product Name:

  	
   

  	
   

  
	
  Product Number:

  	
   

  	
   

  
	
  Order #:

  	
   

  	
   

  
	
  Serial Number
  From:

  	
   

  	
   

  
	
  Serial Number
  To:

  	
   

  	
   

  
	
  VERITAS Delivery
  ID:

  	
   

  	
  Picking Line Detail ID:

  

System HostID: _____________________________ (PLEASE PRINT CLEARLY)

(see output of sysdef -h for Solaris, uname -i for HPUX). Do not
provide host name, it is not recorded.

System Model: ______________________________(PLEASE PRINT CLEARLY)

(see output of “uname -i” for Solaris, “model” for HPUX) For Fujitsu
machines, please include model type listed on hardware, i.e.: GP7000F Model
2000. (For HP machines, please include complete output i.e.:
9000/800/N4000-36.)

Company license is registered to (Customer’s full legal name):                                                                             

Integrator/Consultant Company Name (if applicable):                                                                                           

 

	
  Contact Info:
  Last Name                               

  	
  First Name                              

  	
  Title                              

  
	
  Email address:                                             

  	
  Alternate Email:
                                                            

  
	
  Telephone:                                                   _

  	
  Fax: _                                                                           

  

Software Installed at: Address                                                                                                              

(Please indicate company name of installation location if different (e.g. if
this is C/O or co-location)

 

	
  City                              

  	
  State                        

  	
  ZIP/Postal Code             

  	
  Country                           

  
	
  Date purchased                       

  	
  Purchased from (Check one): VERITAS ( ) or Reseller ( )                              

  

Enterprise
Authorized Elite

 

 

For use with Enterprise Authorized
ELITE Solutions Providers only.

EXHIBIT D

LIMITED
SOURCING ADDENDUM

(LSA)

This EXHIBIT D, LIMITED SOURCING ADDENDUM (“LSA”) supplements
the terms of the VERITAS Solutions Provider Agreement by and between VERITAS
and Solutions Provider (“Agreement”). All capitalized terms not otherwise
defined in this LSA shall have the meanings given in the Agreement, including
its other attachments. The effective date of this LSA (“Effective Date” hereof)
is the date of the last party’s signature below.

1.                          Solution Provider Partner Program Level: ENTERPRISE
AUTHORIZED ELITE

2.                          Term. The initial Term of this LSA shall
commence on the Effective Date and shall continue in effect until March 31,
2003 unless earlier terminated in accordance with the terms of the Agreement.

3.                          Master Distributor(s). During the Initial
Term and any renewal period, Solutions Provider agrees to purchase VERITAS Products
exclusively as follows:

(a)                    Commercial
Products. Solutions Provider shall obtain Commercial products for resale to
End Users only from those Master Distributors identified by VERITAS as
“Distributors” authorized to distribute Commercial products. The list of
authorized Commercial products Distributors is available on VERITAS’ website,
as updated from time to time.

(b)                   Enterprise
Products. The Master Distributors authorized to distribute Enterprise
products are identified on VERITAS’ website, as updated from time to time.
Solutions Provider has reviewed the list of authorized Enterprise products
Master Distributors, and based on its own assessment of its needs hereby
selects GE Access as the sole Master Distributor from which Solutions Provider
shall exclusively obtain Enterprise Products for resale to End Users.

4.                          Alternate Sourcing Channels. Solutions
Provider understands that if it obtains standard VERITAS Products available on
VERITAS’ Price List from sources other than the Master Distributors designated
in Paragraph 3 above, its resale of such Products shall not be counted as a
sale of Qualified Products for purposes of meeting Program Requirements, such
that revenue proceeds from such purchases shall not be credited towards
fulfillment of Solutions Provider’s Annual Sales Target.

5.                          Renewals. Unless otherwise terminated under
the Agreement, this LSA shall automatically renew on April 1st of each year for
subsequent periods of twelve (12) months each, unless Solutions Provider
notifies VERITAS (at any point during the period March 1–March 31st of the
then-current Term) of its intent to choose another authorized Enterprise
products Distributor as its Master Distributor, in which case the parties shall
execute a new LSA reflecting such substitution.

6.                          Termination. This LSA shall terminate or
expire with the Term of the Agreement, unless otherwise terminated in
accordance with Paragraph 7 (Disputes), below.

7.                          Disputes and Request for Replacement Master
Distributor.

(a)                    If during a
Term a dispute arises between Master Distributor and Solutions Provider which
cannot be resolved after the reasonable good faith efforts of Master
Distributor and Solutions Provider (such as, for example, where Solutions
Provider is not receiving the contemplated level of marketing or sales support
from such Master Distributor, or such Master Distributor is not otherwise
fulfilling its commitments to Solutions Provider), then Solutions Provider may
apply to revoke its designation of its chosen Master Distributor.

(b)                   In such cases,
Solutions Provider shall submit its request for Master Distributor
re-designation in writing to VERITAS. Such request shall indicate the basis of
Solutions Provider’s request and its desired replacement Enterprise product
Master Distributor, selected by Solutions Provider from VERITAS’ then-current
authorized list. VERITAS shall make its commercially reasonable efforts to
review and respond to such request promptly.

Acknowledged and agreed as of the Effective Date:

 

	
  VERITAS SOFTWARE GLOBAL CORPORATION

  	
   

  	
  SOLUTIONS PROVIDER: STRATEGIC TECHNOLOGIES

  
	
  By:

  	
  

  /s/ John F. Brigden

  	
   

  	
  By:

  	
  

  /s/ Pat Allen

  
	
  Name:

  	
  JOHN F. BRIGDEN

  	
   

  	
  Name:

  	
  PAT ALLEN

  
	
  Title:

  	
  Vice President and General
  Counsel

  	
   

  	
  Title:

  	
  Vice President & GENL
  MANAGER

  
	
  Date

  Signed:

  	
  6-1-02

  	
   

  	
  Date

  Signed:

  	
  4/4/02

  

 

	
  [STAMP]

  	
  Enterprise Authorized Elite

  

 

FOR
USE WITH U.S. ELITE OR PREMIER VPP SOLUTIONS PROVIDERS ONLY

 

	
  [GRAPHIC]

  	
  Amendment to Solutions Provider
  Agreement

  (Renewals/Direct Sourcing)

  Authorization No. 20050121 — 09E

  

 

This AMENDMENT TO SOLUTIONS PROVIDER AGREEMENT (“Amendment”)
supplements the terms of the VERITAS Solutions Provider Agreement in affect as
of the Effective Date, by and between VERITAS Software Global LLC (or its
predecessor VERITAS Software Global Corporation) and the Solutions Provider named
below (“Agreement”). The effective date of this Amendment (“Effective
Date”) is the date of the last party’s signature below. All capitalized
terms not otherwise defined in this Amendment shall have the meanings given in
the Agreement, including its attachments and/or the terms of then-current
Program Guide incorporated by reference into such Agreement. In the event of
conflict between the express terms of this Amendment and the Agreement, this
Amendment shall prevail.

1 DEFINITIONS.

1.1 “Renewal
Support” means a renewal period of VERITAS Extended or VERITAS
Basic levels of Support, other than the initial period of Support.

1.2 “Quote” means
a VERITAS’ price quotation provided to an End User for Renewal Support of such
End User’s Software licenses.

2. AUTHORIZATION. Subject to
the terms and conditions herein, VERITAS grants Solutions Provider the
non-exclusive, non-transferable, right to distribute the Renewal Support in the
Territory, for Enterprise Products as indicated by VERITAS from time to time.
This authorization shall apply only during the period during which Solutions
Reseller maintains status as either an Elite or Premier level partner in the
VERITAS Partner Program.

3. INDEPENDENCE OF ACTION.

3.1  VERITAS
Quotes. Solutions Provider understands that End Users retain the
absolute right to choose from whom they will source their Renewal Support.
VERITAS typically provides Quotes directly to End Users. If an End User wishes
to obtain Renewal Support from Solutions Provider, and/or to have Solutions Provider
otherwise involved in managing the End User’s Renewal Support subscriptions,
then the End User must notify VERITAS directly and in writing to request
release of its renewal information to Solutions Provider, via VERITAS’
then-current notification process. Only after receipt of such direct End User
request will VERITAS disclose the End User’s installed base renewal information
and Quotes to Solutions Provider. Solutions Provider acknowledges that the End
User may revoke its authorization at any time. For evidence of doubt, any
renewal periods of Support for which a price has already been contractually
determined between VERITAS and an End User, such as Site License renewal years,
are not “Renewal Support” which Solutions Provider can resell under this Amendment.

3.2 Deadline for
Renewal. If the End User authorizes disclosure of its installed
base renewal Information/Quotes to Solutions Provider, Solutions Provider will
make all commercially-reasonable efforts to sell the End User Renewal Support
before the expiration of the End User’s applicable subscription for initial
term Support. Solutions Provider understands, however, that the primary
objective for both VERITAS and Solutions Provider is to assure that the End
User remains current on Renewal Support. Therefore, VERITAS reserves the right
to sell such Renewal Support directly to the End User in the following cases:

(a) where the End User indicates a preference to
source directly; or the later of either

(b) where Solutions Provider was involved in proposing
the End User’s Support Renewal, before the initial Support term expires, but
Solutions Provider does not sell such Renewal Support within 30 calendar days
following such Support subscription’s expiration, or

(c) where Solutions Provider becomes involved after
the End User’s initial term Support subscription has already lapsed or is
imminently about to lapse, but Solutions Provider does not sell such Renewal
Support within 30 days following expiration of VERITAS’ renewal Quote.

In any event, Solutions Provider understands that its price to acquire
Support Renewals for resale will at VERITAS’ discretion include fees for any
back-support and/or re-instatement fees due, if any, under VERITAS’
then-current technical support policies and (if applicable) contract with such
End User.

4. ORDER AND DELIVERY.

4.1 Orders.
Orders shall be placed to the ordering address indicated by VERITAS from time
to time, using an order form (purchase order) in a form reasonably acceptable
to VERITAS using sufficient detail to enable VERITAS to accept and accurately
fulfill the order. At minimum, each such Solutions Provider order shall include
the End User’s name and delivery street address, shall reference the Quote
number, and shall otherwise comply with VERITAS’ then-current Order Booking
requirements, as published to Solutions Provider from time to time. VERITAS
shall use reasonable efforts to promptly deliver accepted orders, but shall not
be liable to Solutions Provider or to any other person for damages arising from
VERITAS’ failure, delay or error in filling or delivering any orders,

 

	
  Amendment to Solutions Provider Agreement (U.S.
  Direct Renewals)

  	
  VERITAS Confidential

  	
   

  

 

1

 

FOR USE WITH U.S. ELITE OR PREMIER VPP SOLUTIONS PROVIDERS
ONLY

for any reason whatsoever:

4.2 Delivery.
Delivery of all items shall be F.O.B. VERITAS’ manufacturing facility from
which the Software is shipped. All shipments will be made subject to credit
approval.

5. FEES AND PAYMENT.

5.1 Fees.
[***]

5.2 Payment.
Solutions Provider will pay for Renewal Support fees in U.S. dollars within
thirty (30) days from the date of invoice. This payment obligation is
non-cancelable and any sums when paid will be non-refundable. Solutions
Provider is responsible for all taxes or duties for Renewal Support provided
under this Amendment, excluding taxes based on VERITAS’ net income. Fees due
from Solutions Provider shall not be subject to set off for any claims against
VERITAS or any returns. Any amounts payable by Solutions Partner hereunder
which remain unpaid thirty days after date of invoice shall be subject to a
late charge equal to one percent (1 1/2%) per month or the highest rate
permissible by law on the unpaid balance until paid in full. In addition, if
Solutions Provider is overdue on any payments to VERITAS hereunder, VERITAS
reserves the right upon five (5) days prior notice to suspend the fulfillment
of all or part of accepted but undelivered Product orders.

6. CREDIT AND TAXES.

6.1 Credit and
Credit References. VERITAS reserves the right to terminate or
modify the terms of credit when, at its sole discretion, VERITAS believes that
its payments may be at risk. Upon signature of this Amendment and at the
beginning of each renewal year, Solutions Provider will deliver to VERITAS
three (3) of Solutions Provider’s trade references and its primary bank
reference, which VERITAS agrees to keep in confidence as Solutions Provider’s
confidential information under the Agreement.

6.2 Taxes and
Duties. Solutions Provider is responsible, in addition to any
payments due under this Agreement, for all taxes, customs duties, import fees
or other similar charges, and all other mandatory payments to government
entities imposed with respect to the Renewal Support provided under this
Amendment, excluding tax imposed on VERITAS’ net income and withholding taxes
(subject to the condition of providing withholding tax payment receipts, as
further described in this provision). VERITAS shall bill applicable taxes as a
separate item on Solutions Provider’s invoices; taxes are not included in the
purchase price. If a transaction is exempt from tax, Solutions Provider shall
provide VERITAS with a valid exemption certificate or other evidence of such
exemption in a form acceptable to VERITAS. If Solutions Provider is required by
law to withhold any tax from a payment, Solutions Provider shall provide to
VERITAS original or certified copies of all tax payment receipts or other
evidence of payment of taxes by Solutions Provider with respect to such
transactions. If Solutions Provider fails to provide VERITAS with such tax
payment receipts, if applicable, then Solutions Provider shall reimburse for
any fines, penalties, taxes and other governmental agency charges resulting
from such failure.

IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their authorized representatives as of the date of last signature
below (“Effective Date”)

 

	
  Accepted by:

  	
   

  	
  Executed
  by: SOLUTIONS PROVIDER

  
	
   

  	
   

  	
  STRATEGIC
  TECHNOLOGIES INC.

  
	
  VERITAS
  SOFTWARE GLOBAL LLC

  	
   

  	
  [print
  company name]:

  
	
  By: 

  	
  

  /s/ Edward Malysz

  	
   

  	
  By: 

  	
  

  /s/ L. Garnett

  
	
  Name: 

  	
  Edward Malysz

  	
   

  	
  Name: 

  	
  L. Garnett

  
	
  Title: 

  	
  Assistant Secretary

  	
   

  	
  Title: 

  	
  DIRECTOR, BUSINESS
  OPERATIONS

  
	
  Signed:

  	
  1/27/05

  	
   

  	
  Signed:

  	
  JANUARY 20, 2005

  
							

[STAMP]

***
Redacted information — confidential treatment requested.

 

	
  Amendment to Solutions Provider Agreement (U.S.
  Direct Renewals)

  	
  VERITAS Confidential

  	
   

  

 

2Exhibit 10.24

 

 

July 31, 2007

 

 

Mr. John Roger

709 Meadowmont Lane

Chapel Hill, NC 27517

 

Dear John:

 

Consonus Technologies, Inc. is pleased to offer you the
position of Executive Vice President and Chief Operating Officer. You will
report directly to me. On a temporary basis, you will have a dotted line
reporting relationship with the Chairman of the Board of Consonus Technologies,
Nana Baffour. The specific parameters of the dotted line relationship is defined
in your job description which is enclosed. Your expected start date will be
Monday, August 6, 2007.

 

Your annual compensation plan will consist of an annual base
salary of $185,000 and annual bonus targets of $100,000 as well as $50,000 in additional
bonus for exceeding targeted and defined performance goals. Upon hiring, you
will also be awarded with restrictive stock entitling you to earn 1.25% of the
fully diluted shares of the Company. The full details of your annual
compensation and stock award plan are defined in the attached Executive Compensation
Plan. CTI will also provide you with an automobile allowance paid monthly in
the amount of $600. In addition, you will be granted four weeks of paid
vacation, pro-rated for your first year. CTI will also pay incidental hiring
employment expenses to include Cobra and legal expenses not to exceed $3,000.

 

Within the Executive Compensation Plan, you will also find
your key performance objectives for the balance of 2007 as well as purview into
the spirit of future performance objectives. I’m sure you will find these in
alignment with our many discussions.

 

As an employee of Consonus Technologies, Inc., you are eligible
to participate in our employee benefits programs, the provisions of which are
explained in the enclosed Benefits Summary. If you have any questions after
reading this material, please feel free to contact Debra Barie, our Human
Resources Manager, at (919) 379-8474.

 

Also enclosed with this offer letter, is our Employment
Agreement. These documents must be read, signed and returned before the commencement
of your employment with Consonus Technologies, Inc. If you have any questions
regarding this Agreement, please feel free to contact me.

 

Speaking for the Board of Directors and the entire Consonus
Technologies team, we are pleased to have you as a key member of our management
team. I will look forward to the many contributions I know you will make.

 

 

	
  /s/ Michael G. Shook

  	
   

  	
  /s/ John Roger

  	
   

  
	
  Michael G. Shook

  	
  John Roger

  
	
  President and CEO

  	
   

  
	
   

  	
  July 31, 2007

  	
   

  
	
   

  	
  Date

  

 

 

	
   

  	
  301 Gregson
  Drive

  	
  919 379 8000  phone

  
	
   

  	
  Cary, NC  27511

  	
  919 379 8100  fax

  
	
   

  	
   

  	
  www.stratech.com

  
				

 

 

	
  Consonus Technologies Inc.

  	
   

  	
  July
  26, 2007

  

Executive Vice President &
Chief Operating Officer (COO)

Job Description

 

Position Summary:

 

The Executive Vice
President & COO is responsible for the effective execution of the Company’s
business strategy. The COO is responsible for the development, maintenance and
delivery of products and services that meet client needs and build shareholder
value. In order to meet the Company’s objectives, the COO must ensure that
there is an appropriate quantity and quality of management and staff. The COO
is responsible for establishing professional and effective management practices
in the development and delivery of client solutions that provide for a high growth
services strategy.

 

Responsibilities:

 

Effective planning,
organization and control of management and staff to deliver competitive and
profitable suite of professional business solutions to clients.

 

Directs the timely
planning, development and implementation of products and services to meet
present and future client needs and expectations.

 

Ensures that products and
services contribute to the Company’s differentiation from its competitors and
delivers optimal corporate revenue growth.

 

Ensures the complete and
accurate costing and pricing of products and services leading to profitablilty
of offerings and building of shareholder value.

 

Responsible for the
optimal delivery of services to clients; accountable for client satisfaction
and retention.

 

Effective recruitment,
retention and development of employees to enable business activities.

 

Development and
implementation of effective business processes, policies and procedures
reflecting best practices, contributing to corporate profitability and providing
a strong foundation for business development and growth.

 

Effective planning for
future business growth; ensures appropriate lead time for effective transitions
and implementation.

 

Manages resources (human,
financial and physical) to ensure achievement of annual business plan.

 

 

Ability to quickly adapt
and lead management and staff in a business environment subject to significant
change due to competition, mergers, acquisitions, emergencies and other
challenges.

 

Constantly questions and
challenges the status quo to ensure that the organization is being managed to
its optimal efficiency and effectiveness.

 

Relationships:

 

Reports to the President
& Chief Executive Officer

 

Has a temporary dotted
line reporting structure with the Chairman of the Board. Communication
structure with the Chairman will be via defined bi-monthly, one on one phone
calls discussing key goals and objectives progress.

 

Reporting to the COO are:
Sr. Vice President Hosting Infrastructure, Vice President Managed Services
Business Development, Vice President Customer Support, Director of Service
Management and Infrastructure Solutions and Services Directors

 

Extensive contact with
clients

 

Knowledge and Skills:

 

University degree and a
minimum of 15 years progressive management and leadership experience, with a
substantial portion of this experience in a major corporation recognized as a
leader in best practices.

 

Strong financial
management skills including product and cost accounting

 

Superior human relations
skills, ability to motivate people to deliver exceptional performance

 

Ability to sell ideas and
concepts

 

Effective verbal and
written communications skills

 

Ability to work under
pressure in a rapidly changing environment

 

Thorough knowledge of
modern business practices required to deliver professional solutions to clients.

 

 

Key Objectives for the first 12
months.

 

• develop
a thorough knowledge of the business, its SWATS, staff and clients

 

• develop
a strong positive working relationship with members of the  management team and staff

 

• transitioning
the operation from reselling services to full managed service provider.

 

• identify
and recommend remedial action to any obstacles to profitable growth.

 

• rethinking
of operational framework including products, services and delivery system to
drive overall margins to 5+% EBITDA

 

• develop
effective integration program with mapped out processes and clearly defined
tactics to minimize disruption and capture benefits.

 

 

 

	
  

  	
  Executive
  Compensation Plan – John Roger Executive Vice President and Chief Operating
  Officer Annual Base Salary (Paid Monthly) $185,000 Annual Incentive Bonus
  Target $100,000 2007 incentive to include prorated July to December
  performance to be paid after 2007 financials have been reported. Annual
  incentive bonus for 2008 and beyond to be determined in concert with board
  directed executive compensation plans 0% of Bonus Target for performance
  under 75% of Plan 50% of Bonus Target for performance at 75% to 84% of Plan
  100% of Bonus Target for performance at 85% to 100% of Plan 15% of Bonus
  Target will be earned based on Qualitative Targets 85% of Bonus Target will
  be earned based on Quantitative Targets Additional Incentive Compensation for
  Exceeding Targets $50,000 Additional $50,000 Bonus for attaining 110% of Plan
  15% of Additional Bonus Target will be earned based on Qualitative Targets
  85% of Additional Bonus Target will be earned based on Quantitative Targets
  Performance Category - Quantitative Reducing STI SG&A by 10% to 15%
  annualized resulting in a run rate reduction of 2M to 3M dollars for 2007 In
  2008, quantitative measures will be based on the appropriate KPIs to be
  selected by CEO/ Board such as CTI EBITDA, CTI EBITDA Margin; CTI SG&A as
  % sales, Managed Services growth etc Performance Category – Qualitative
  Create an environment of cost consciousness and profit maximization
  throughout CTI Leading the development of an innovative business agenda
  Collaborating and advising existing CTI Customer Relationship Management team
  relative to requirements and best practices, processes, and enterprise
  integration Leading, developing and implementing a performance measurement
  and monitoring culture across the organization 

  

 

	
  

  	
  Executive
  Compensation Plan Stock Purchases Upon hiring Executive may purchase stock up
  to $50,000 at a valuation on the low end of the CTI valuation performed by
  KPMG Stock Award Upon hiring Executive will be awarded with restricted stock
  entitling him to earn 1.25% of the fully diluted shares of the company. The
  Award is performance based and will vest over 3 years based on the following
  schedule, subject to Executive meeting at least 75% of the plan/goals: -
  First 6 Months 30% - December 31, 2008 40% - December 31, 2009 20% - December
  31, 2010 10% Note: 2008 and beyond annual incentive bonus to be paid
  annually, consistent with the new compensation recommended by the board. Key
  compensation metrics to include performance to plan in categories such as
  EBITDA, EBITDA to sales percentage, SG&A to sales percentage and Managed
  Services growth. 

  

 

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT
is made and entered into as of July 31, 2007, by and between CONSONUS
TECHNOLOGIES, INC., a North Carolina corporation (the “COMPANY”), and JOHN
ROGER, an individual residing in Orange County, North Carolina (the “EMPLOYEE”).

 

WITNESSETH:

 

WHEREAS, the
Company desires to employ the Employee as Executive Vice President and Chief
Operating Officer and to enter into this Agreement with the Employee embodying
the terms of such employment; and

 

WHEREAS, the Employee
desires to accept such employment with the Company and to enter into this
Agreement.

 

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

 

1.                                      Definitions.

 

“Agreement”
shall mean this Employment Agreement and any appendices, exhibits or schedules
affixed hereto.

 

“Agreement Date”
shall mean the date first above written.

 

“Cause” shall have
the meaning set forth in Subsection 6.1 of this Agreement.

 

“Change of Control”
shall have the meaning set forth in Subsection 6.3 of this Agreement.

 

“Company”
shall have the meaning set forth in the first paragraph of this Agreement.

 

“Company
Property” shall have the meaning set forth in Subsection 6.6 of this
Agreement.

 

“Confidential
Information” shall have the meaning set forth in Subsection 7.2 of this
Agreement.

 

 

 “Covered Customer” shall have the
meaning set forth in Subsection 7.1 of this Agreement.

 

“Covered
Services” shall have the meaning set forth in Subsection 7.1 of this
Agreement.

 

“Covered
Territory” shall have the meaning set forth in Subsection 7.1 of this
Agreement.

 

“Employee”
shall have the meaning set forth in the first paragraph of this Agreement.

 

“Invention or
Discovery” shall mean any new process, machine, apparatus, manufacture, or
composition of matter, or any new use therefore or improvement thereon, any new
design or configuration of any kind or work of authorship of any kind,
including, without limitation, compilations and derivative works, whether or
not patentable or copyrightable.

 

Wherever from the context
it appears appropriate, each term stated in either the singular or plural shall
include the singular and the plural, and pronouns stated in the masculine,
feminine or neuter gender shall include the masculine, the feminine and the
neuter.

 

2.             Employment.
Subject to and upon the terms and conditions herein provided, the Company
hereby agrees to employ the Employee and the Employee hereby agrees to be
employed by the Company for the term of this Agreement, which term shall begin
as of the Agreement Date and shall terminate as provided in Section 6.

 

3.             Position and
Responsibilities. During the term hereof the Employee shall be employed as
Executive Vice President and Chief Operating Officer of the Company. In such
capacity, the Employee shall, in the sole discretion of the Company, report to
Michael G. Shook. In accordance with such position, Employee is hereby granted
responsibilities, duties and authority that are appropriate to Employee’s
position and otherwise assigned to Employee by the Employee’s Manager. While so
employed, the Employee agrees to devote his best efforts, skills and abilities
to further the interests of the Company. Employee further agrees to obtain
prior written consent from Company before engaging in any outside business
activities, such as consulting, during the Term of Employment, that involves a
vendor, customer, or competitor of Company.

 

4.             Compensation.
For services rendered hereunder, the Company shall compensate Employee as set
forth in that certain offer letter to Employee from Company dated July 31,
2007, a copy of which is attached hereto as Exhibit A. Such compensation
shall be payable in accordance with the Company’s normal payroll practices.

 

2

 

5.            Employee Benefits;
Reimbursement of Expenses.

 

5.1           Company Plans.
The Employee shall be entitled to participate in all the Company’s health,
accident, retirement, disability and other benefit plans, programs or practices
from time to time in effect for similarly situated employees of the Company.

 

5.2           Expenses. The
Company shall promptly reimburse the Employee for all reasonable and documented
expenses incurred in connection with the performance of his/her duties
hereunder; provided, however, that the Company may from time to
time, require that expenses in excess of a given amount shall be approved by an
authorized officer of Company, prior to the Employee incurring any such
expenditure.

 

6.             Termination.
This Agreement shall terminate upon the occurrence of any one of the following
events:

 

6.1           With Cause. The
Company may terminate this Agreement, at any time for Cause, with or without
prior notice to Employee. The term “Cause” as used herein, shall mean (a) the
Employee, in carrying out his/her duties hereunder, has been guilty of gross
negligence or willful and wanton misconduct which in either case results in
material harm to the financial condition, business, assets, or prospects of the
Company; (b) the conviction of , or entering of plea of no contest by, the
Employee for (1) fraud, misappropriation, or embezzlement relating to the
Company, (ii) any felony, or (iii) any other offense that results in an active
sentence of at least thirty (30) days imprisonment; (c) any material breach of
this Agreement by the Employee; (d) the loss, suspension or material impairment
of any license, certification, registration or other professional credential
(“License”) held by Employee, if Company deems such License necessary for
Employee to remain qualified to perform his/her responsibilities hereunder; or
(e) the Employee fails to carry out directions (consistent with his/her
position as set forth in Section 3 above) of the President, Chief Executive
Officer, or the Board of Directors of the Company, which failure cannot be
cured or shall not have been cured within thirty (30) days after receipt by the
Employee of written notice from the Company specifying in reasonable detail the
failure to so carry out such directions.

 

6.2           Without Cause.
Employee’s employment hereunder shall be an employment at will. Accordingly,
either the Company or Employee may terminate this Agreement and Employee’s employment
hereunder, at any time, for any or no reason, with or without cause.

 

6.3           Change of Control.
Employee may terminate this Agreement for “Good Reason” within six (6) months
of a Change of Control. Change of Control is defined as:

 

(a)           acquisition of beneficial
ownership of more than 50% of the voting power of outstanding securities of the
Company, excluding (i) acquisitions by Michael G. Shook, his affiliates, or
(ii) acquisitions by employee benefit plans sponsored by the Company or an
affiliate;

 

(b)           approval by the
shareholders of the Company of a reorganization or merger, unless (i) the
merger results in outstanding voting securities of the Company continuing to
represent more than 80% of the voting securities of the surviving entity 

 

3

 

immediately after the
merger; or (ii) the merger is effected to recapitalize the Company, and no
person acquires more than 30% of the voting securities;

 

(c)           approval by the
shareholders of the Company of a complete liquidation, dissolution, or sale of
all or substantially all of the assets of the Company; or

 

(d)           a merger in which the
Company is the survivor in a merger if it becomes a subsidiary corporation of
another entity.

 

Employee may not
terminate his obligations hereunder for Good Reason without first giving the
Company thirty (30) days prior written notice of the grounds for such
termination for Good Reason and the opportunity for the Company to cure such
grounds for Good Reason. Good Reason is defined as follows:

 

(e)           diminution in office,
title, reporting requirements or responsibilities;

 

(f)            material reduction in
the Employee’s base salary, bonus or benefits taken as a whole without the
Employee’s consent; or

 

(g)           a change in the
location of the Employee’s office of more than 50 miles without the Employee’s
prior consent.

 

6.4           Death. This
Agreement shall terminate immediately upon the death of Employee.

 

6.5           Certain Payments
Upon Termination. Upon termination of this Agreement and Employee’s
employment hereunder, for whatever reason, the Company shall pay the Employee
or his/her beneficiary such salary as he/she may be entitled to receive for
services rendered prior to the date of such termination.

 

(a)           If Employee is
terminated by the Company for Cause as defined herein, or if Employee’s
employment ends due to Employee’s death, or if Employee voluntarily resigns,
the Company shall not be liable for any other payments to the Employee.

 

(b)           If Employee is
terminated by the Company without Cause, the Company shall give Employee at
least one (1) year prior written notice of such termination or, at the
Company’s election, the Company will pay to Employee an amount equal to
Employee’s regular base salary for a period of four (4) weeks in lieu of all or
a part of such notice.

 

(c)           If the Employee
terminates his employment for Good Reason arising from a Change of Control, the
Company will pay to Employee an amount equal to Employee’s regular base salary
for a period of four (4) weeks.

 

6.6           Return of Company
Property. Upon termination of Employee’s employment with Company for any
reason, Employee shall leave with or return to Company all personal property
belonging to Company (“Company Property’) that is in Employee’s possession or
control as of the date of such termination of employment, including, without
limitation, all 

 

4

 

records, papers,
drawings, notebooks, specifications, marketing materials, software, reports,
proposals, equipment, or any other device, document or possession, however
obtained, whether or not such Company Property contains Confidential
Information.

 

7.             Restrictive
Covenants.

 

7.1           Noncompetition.
Upon the termination of Employee’s employment for any reason, whether by the
Company, with or without Cause, or through Employee’s resignation, Employee
hereby covenants and agrees that for a period of one (1) year after such
termination, Employee shall not, on his/her own behalf or for others, directly
or indirectly, provide the Covered Services (as herein defined) in competition
with Company (whether as a proprietor, partner with another, shareholder, agent
or consultant of, employee of or lender to, another) to any Covered Customer
(as herein defined) in the Covered Territory (as herein defined). For purposes
of this Agreement, the “Covered Services” shall mean systems integration, and
the marketing and selling of computer solutions for the manufacturing,
distribution and financial services marketplace; “Covered Customer” shall mean
any client or customer of Company or any prospective client or customer of
Company with whom Employee has had any business contacts on behalf of Company
within the last twelve (12) months of Employee’s employment with Company; and
the “Covered Territory” shall include: the States of North Carolina, South
Carolina, Virginia, Tennessee, Florida and Georgia. Employee further agrees
that for a period of one (1) year following his/her termination of employment
with Company, he/she will provide written notice to Company of the name and address
of any other employer with whom Employee accepts employment at least 24 hours
prior to commencement of such employment.

 

7.2           Nondisclosure.
The Employee agrees that he/she will not at any time disclose to any person,
partnership or other entity who or which is, or reasonably may be expected to
be, in competition with the Company in the computer software integration
business, any confidential information or trade secrets of the Company
(“Confidential Information”) or use such Confidential Information for his/her
own benefit, unless such disclosure or use is with the prior express written
consent of the Company. For purposes of this Agreement, “Confidential
Information” shall mean any scientific, technical, merchandising, production,
management, or financial information, any design, process, procedure, any
formula, pattern, improvement, device, idea, concept, information or
compilation of information, including but not limited to employee lists,
customer or client lists, lists of prospective clients or other contracting
parties with the Company, sales plans, marketing surveys and plans, business
plans and opportunities, business records, any Invention or Discovery during
the Term of Employment (whether discovered, made, conceived or developed by
Employee alone or in conjunction with others, whether or not during working
hours, whether or not on the Company’s premises and whether or not with the use
of Company’s facilities, equipment, materials, personnel or funds) and
proprietary information of customers and clients of the Company. The foregoing
shall not prevent the Employee from responding to the request of a governmental
agency or pursuant to court order or as otherwise required by law and shall not
apply to any Confidential Information that (i) has been voluntarily disclosed
by Company (or by a third party with the lawful right to make such disclosure)
to the Public, (ii) is in Employee’s possession prior to disclosure to Employee
by Company, or (iii) has otherwise legally entered the public domain.

 

5

 

7.3           Nonsolicitation.
Employee agrees that during and after the Term of Employment he/she will not
contact, solicit, interfere with or attempt to entice in any form, fashion or
manner any other employee of Company for the purpose of inducing such employee
to terminate his/her employment with Company or act in any way that would or
could be detrimental to the best interests of the Company.

 

Notwithstanding the
termination or expiration of this Agreement for any reason whatsoever, the
Employee’s obligations under this Section 7 shall survive and remain in full
force and effect in accordance with their terms.

 

8.             Injunctive Relief.
The Employee acknowledges and agrees that the Company would suffer irreparable
injury in the event of breach or threatened breach of any of the provisions of
Section 7 above and, accordingly, that the Company shall be entitled to an
injunction restraining the Employee from any breach or threatened breach
thereof. Nothing herein shall be construed, however, as prohibiting the Company
from pursuing other remedies at law or in equity which it may have for any
breach or threatened breach hereof by the Employee, including the recovery of
damages from the Employee.

 

9.             Freedom to
Contract. The Employee represents, warrants and covenants that he/she has
the right and power to enter into this Agreement and to perform his/her
obligations hereunder, that he/she neither has made nor will he/she make any
contractual or other commitments that would conflict with the performance of
his/her obligations hereunder and that the Employee will neither do acts or
enter into any commitments in derogation of his/her obligations hereunder.

 

10.           Amendment. This
Agreement contains the entire agreement of the parties with respect to the
matters set forth of the parties herein, and may only be amended by subsequent
written agreement of the parties hereto. All prior agreements between the
Employee and the Company, whether in writing or not, relating to terms and
conditions of the Employee’s employment with the Company are hereby canceled.
No waiver by either party of any breach by the other party of any term,
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of a similar or dissimilar condition or provision at
the same or any prior or subsequent time.

 

11.           Binding Effect.
Except as otherwise expressly provided in this Agreement, the Employee’s rights
and obligations under this Agreement shall not be transferable by assignment or
otherwise, such rights shall not be subject to commutation, encumbrances, or
the claims of the Employee’s creditors, and any attempt to do any of the
foregoing shall be null and void. The provisions of this Agreement shall be
binding upon, inure to the benefit of, and be enforceable by the Employee and
his/her heirs, beneficiaries and personal representatives, and shall be binding
upon and inure to the benefit of, and be enforceable by, the Company, its
successors and assigns.

 

12.           Governing Law; Severability.
Except as otherwise set forth herein, this Agreement is governed by and is to
be construed and enforced in accordance with the laws of the State of North
Carolina without regard to principles of conflicts of law. If any provision or
portion of this Agreement shall be determined to be invalid unenforceable for
any reason, in 

 

6

 

whole or in part, the
remaining provisions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law.

 

13.           Withholding of Taxes.
The Company may withhold from any compensation payable under this Agreement all
federal, state, city, or other taxes as shall be required pursuant to any law,
regulation or ruling.

 

14.           Counterparts.
This Agreement may be executed in several counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

 

15.           Notices. Any
notice given to either party hereto shall be in writing and shall be deemed to
have been given when delivered personally or sent by certified or registered
mail, postage prepaid, return receipt requested, duly and properly addressed to
the party concerned at the address indicated below or to such changed address
as party may subsequently give notice of:

 

If to the Company:

 

Consonus
Technologies, Inc.

301
Gregson Drive

Cary,
North Carolina 27511

Attention:
Michael G. Shook, President

 

with a
copy to:

 

Wyrick,
Robbins, Yates & Ponton, L.L.P.

4101
Lake Boone Trail, Suite 300

Raleigh,
North Carolina 27607

Attention:
Eric A. Vernon, Esq.

 

If to
the Employee:

 

John
Roger

709
Meadowmont Lane

Chapel
Hill, NC  27517

 

16.           Headings. The
headings contained in this Agreement are for reference purposes only and shall
not be deemed to be part of the Agreement or to affect the meaning or
interpretation of this Agreement.

 

7

 

IN WITNESS WHEREOF, the
parties hereto have executed this Employment Agreement as of the date and year
first above written.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONSONUS TECHNOLOGIES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Michael G. Shook

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Michael G. Shook

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ John Roger

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