Document:

Exhibit 10.8 -- Amended and Restated

 Exhibit 10.8 
  
 AMENDED AND RESTATED 
 THE NETPLEX GROUP, INC. 
 EMPLOYEE DEFERRED COMPENSATION PLAN 
  
 Original Plan effective date: August 6, 2001

  
 Restated as of: September 30, 2002 

  
 TABLE OF CONTENTS 
  
 
	  	  	 Page
 

	 SECTION 1      Introduction
 	  	 3
 
	 
	 SECTION 2      Participation
 	  	 5
 
	 
	 SECTION 3      Contributions
 	  	 5
 
	 
	 SECTION 4      Benefit Accounts
 	  	 6
 
	 
	 SECTION 5      Vesting of Account
 	  	 7
 
	 
	 SECTION 6      Distributions
 	  	 8
 
	 
	 SECTION 7      Distribution of Benefits
 	  	 9
 
	 
	 SECTION 8      Plan Administration
 	  	 11
 
	 
	 SECTION 9      Trust Provisions
 	  	 12
 
	 
	 SECTION 10    Amendment and Termination
 	  	 13
 
	 
	 SECTION 11    Miscellaneous
 	  	 13
 
	 
	 SECTION 12    Adoption
 	  	 15
 

 

 
 2 

 SECTION 1 
  
 INTRODUCTION 
  
 The Netplex Group, Inc. established the Netplex Group, Inc. Employee Deferred
Compensation Plan effective as of August 6, 2001 to provide deferred benefits, in the form of employer stock, to its employees and the employees of participating subsidiaries and affiliates. The original Plan was an unfunded, deferred compensation
plan that exclusively provided benefits in the form of Netplex Group, Inc. shares. By this document, The Netplex Group, Inc. amends and restates the Plan, effective as of September 30, 2002, to provide for a non-employer stock investment alternative
and to provide a funding vehicle for the deferrals that are to be invested in employer stock. 
  
 1.1    Adoption. Pursuant to revised Section 12, The Netplex Group, Inc., (“NGI”) hereby establishes the Netplex Group, Inc. Employee Deferred Compensation Plan for employees of Netplex Group,
Inc. and its subsidiaries and affiliates (hereinafter collectively referred to as “Netplex”) as set forth herein. The Plan is restated pursuant to (revised) Section 10.1 as of September 30, 2002 and henceforth is intended to work in
conjunction with the Netplex Group, Inc. Employee Deferred Compensation Plan Trust. 
  
 1.2    Definitions. When
the following terms are used herein with initial capital letters, they shall have the following meanings: 
  

	 	1.2.1
	 
	Annual Valuation Date—shall mean each December 31. 
 

  

	 	1.2.2
	 
	Beneficiary—shall mean the person or persons designated by a Participant (or automatically by operation of the Plan) to receive the benefits payable
under this Plan in the event of the Participant’s death. A person so designated shall not be considered a Beneficiary until the death of the Participant. 
 

  

	 	1.2.3
	 
	Benefit—shall mean the lump sum cash payment equal to the present value of the unconverted non-elective and elective deferrals and NGI shares as
represented by Share Units, and distributed pursuant to Section 6. 
 

  

	 	1.2.4
	 
	Benefit Account—shall mean an account specifically established by Netplex on behalf of a Participant, to which is credited the contributions made by
Netplex on behalf of the Participant pursuant to the Participant’s non-elective deferrals and those made by the Participant pursuant to his elective deferrals. All or a portion of a Plan Participant’s Benefit Account may be converted into
NGI Share Units, which will remain as part of a Participant’s Benefit Account. 
 

  

	 	1.2.5
	 
	CFO—Chief Financial Officer of NGI. 
 

  

	 	1.2.6
	 
	Code—shall mean the Internal Revenue Code of 1986, as amended, and includes any regulations thereunder. 
 

  

	 	1.2.7
	 
	Compensation—shall mean all earnings from services rendered by the Employee to Netplex, including but not limited to the gross salary of the
Employee, prior to any deduction for federal or state income tax, Social Security contributions, or pension plan contributions; subject, however, to the following: 
 

  

	 	(a)
	 
	Pre-Participation Employment. Remuneration paid by Netplexto an Employee attributable to periods prior to the date the Participant became a Participant
in the Plan shall not be taken into account in determining the Participant’s Compensation. 
 

 
 3 

  

	 	(b)
	 
	Attribution to Periods. A Participant’s Compensation shall be considered attributable to the period in which it is actually paid and not when earned
or accrued; provided, however, amounts earned but not paid in a Plan Year because of the timing of pay periods and pay days may be included in the Plan Year when earned if these amounts are paid during the first few weeks of the next Plan Year, the
amounts are included on a uniform and consistent basis with respect to all similarly situated Participants and no amount is included in more than one Plan Year. 
 

  

	 	(c)
	 
	Excluded Periods. Amounts received after the Participant’s termination of employment shall not be taken into account in determining a
Participant’s Compensation. 
 

  

	 	1.2.8
	 
	Deferral—shall mean the amount of Compensation not yet earned, which Netplex, or the Participant shall defer in accordance with the provisions of
the Plan. 
 

  

	 	1.2.9
	 
	Disability—shall mean a medically determinable physical or mental impairment which: (i) renders the individual incapable of performing any
substantial gainful employment, (ii) can be expected to be of long continued and indefinite duration or result in death, and (iii) is evidenced by a certification to this effect by a doctor of medicine approved by the Committee. In lieu of such a
certification, the Committee may accept, as proof of Disability, the official written determination that the individual will be eligible for disability benefits under the federal Social Security Act as now enacted or hereinafter amended (when any
waiting period expires). Notwithstanding the foregoing, no Participant will be considered to have a Disability unless such doctor’s determination or official Social Security determination is received by the Committee within twelve (12) months
after the Participant’s last day of active work with Netplex. The Committee shall determine the date on which the Disability shall have occurred if such determination is necessary. 
 

  

	 	1.2.10
	 
	Distribution—The delivery of a Plan Participant’s Benefit Account. 
 

  

	 	1.2.11
	 
	Effective Date—shall mean that date identified in Section 12. 
 

  

	 	1.2.12
	 
	Employee—shall mean any person who is employed by Netplex. The term shall also include leased co-employees of Netplex selected at the sole
discretion of the Plan Administrator. 
 

  

	 	1.2.13
	 
	Enrollment Date—shall mean the first day of a payroll period or such other dates as the Plan Administrator may designate. 

  

	 	1.2.14
	 
	Netplex—shall mean The Netplex Group, Inc. and its subsidiaries and affiliates that have adopted the Amended and Restated Netplex Group, Inc.
Employee Deferred Compensation Plan. 
 

  

	 	1.2.15
	 
	NGI—shall mean The Netplex Group, Inc. 
 

  

	 	1.2.16
	 
	Participant—shall mean an Employee of Netplex, who is designated as eligible to participate in this Plan at the sole discretion of the Plan
Administrator and has an account balance in his Benefit Account. 
 

  

	 	1.2.17
	 
	Plan—shall mean the deferred compensation plan maintained by Netplex established for the benefit of Participants eligible to participate therein, as
set forth in this Plan, and is referred to as the “AMENDED AND RESTATED NETPLEX GROUP, INC. EMPLOYEE DEFERRED COMPENSATION PLAN.” 
 

  

	 	1.2.18
	 
	Plan Administrator—shall mean the person or persons appointed by Netplex under Section 8.1. 
 

  

	 	1.2.19
	 
	Plan Year—shall mean the twelve (12) consecutive month period ending on the last day of December in each year. 
 

 
 4 

  

	 	1.2.20
	 
	Rules of Interpretation. Whenever appropriate, words used herein in the singular may be read in the plural, or words used herein in the plural may be
read in the singular; the masculine may include the feminine and the feminine may include the masculine; and the words “hereof,” “herein” or “hereunder” or other similar compounds of the word “here” shall mean
and refer to this entire Plan and not to any particular paragraph or Section of this Plan unless the context clearly indicates to the contrary. The titles given to the various Sections of this Plan are inserted for convenience of reference only and
are not part of this Plan, and they shall not be considered in determining the purpose, meaning or intent of any provision hereof. Any reference in this Plan to a statute or regulation shall be considered also to mean and refer to any subsequent
amendment or replacement of that statute or regulation. This document has been executed and delivered in the State of Virginia and has been drawn in conformity to the laws of that State and shall, except to the extent that federal law is
controlling, be construed and enforced in accordance with the laws of the State of Virginia. 
 

  

	 	1.2.21
	 
	Share Unit—Conversion amount of credit given a Participant’s Benefit Account equal to the value of one NGI share. 

  

	 	1.2.22
	 
	Trust—shall mean the trust that will be established pursuant to Section 9 to hold the NGI shares that are purchased with Elective or Non-elective
Deferrals. 
 

  

	 	1.2.23
	 
	Trust Agreement—shall mean the Netplex Group, Inc. Deferred Compensation Plan Trust, which is properly authorized and executed in conjunction with
the Plan. 
 

  

	 	1.2.24
	 
	Trust Fund—means the NGI shares that are held in the Trust pursuant to this Plan. 
 

  

	 	1.2.25
	 
	Trustee—shall mean the person(s) or institution acting as Trustee of the Trust. 
 

  
 SECTION 2 
  
 PARTICIPATION 
  
 2.1.    Eligibility. Participation in the Plan may be granted to any
Employee or leased co-employee of Netplex, selected by Netplex at its sole discretion, who has the capacity of making a substantial contribution to the success of Netplex (“Eligible Employee”). 
  
 SECTION 3 
  
 CONTRIBUTIONS 
  
 3.1.    Deferred Compensation. 
  

	 	3.1.1
	 
	Non-elective Deferral. Netplex may defer a percentage of a Participant’s compensation into his Benefit Account on a non-elective basis, periodically
as earned. The amount and frequency of these non-elective deferrals shall be determined by the Plan Administrator. 
 

  

	 	3.1.2
	 
	Elective Deferral. Participants may, at the discretion of the Plan Administrator, make a prospective, irrevocable election to defer compensation under
the Plan to their Benefit Account. Participants may elect to receive Share Units in lieu of some or all of their unearned cash compensation; either bonus or base compensation. In order to avoid constructive receipt of the deferred compensation, an
election to
 
 

 
 5 

	 	
defer compensation to a Benefit Account in exchange for yet-to-be earned compensation shall be made in writing prior to the beginning of the calendar quarter in which the Participant would
otherwise have the unqualified right to receive the compensation, and not later than the 15th of the
month immediately preceding the quarter to which the election pertains. An exception to this rule will be made in the first Plan year. In that case, elections to exchange cash compensation may be made in the same calendar quarter in which the
Participant would have otherwise had an unqualified right to receive the cash compensation; so long as the election is made at least two (2) calendar weeks before said unqualified right to receive the cash compensation would have arisen. Elections
pertaining to bonus compensation must be made at least one month prior to the date on which the Participant would obtain an unqualified right to receive the money. All deferrals will cease upon determination that NGI is insolvent. 

  

	 	3.1.3
	 
	Primary Limitations. In any event, the minimum elective deferral shall be $5,000 per Plan Year, except in the first Plan Year or where an Employee
becomes newly eligible during the Plan Year. 
 

  
 3.2.    Leaves of Absence. A
Participant’s Elective and Non-elective Deferrals will remain in effect during an approved leave of absence with Compensation. 
  
 SECTION 4 
  
 BENEFIT ACCOUNTS 
  
 4.1    Status. This Plan is an unfunded Employee Deferred Compensation Plan for purposes of the Employee Retirement Income Security Act (“ERISA”) and the Internal
Revenue Code (“IRC”). Nevertheless, it provides for the deposit of actual NGI shares into the Netplex Group, Inc. Deferred Compensation Trust (“Trust”), and tracking by the Participant’s Benefit Account. Each
Participant’s deferred compensation may be converted into Share Units at a ratio to be determined at the sole discretion of the Plan Administrator. The Plan Administrator shall credit each Participant’s Benefit Account with the
corresponding number of Share Units and deposit said units into the Trust. The Plan Administrator shall track such Share Units credited to each Participant’s Benefit Account from the date of conversion until Distribution as described in Section
6 of the Plan. The Plan Administrator shall also track unconverted deferrals credited to each Participant’s Benefit Account from the date of deferral until Distribution as described in Section 6 of the Plan. 
  
 4.2    Deferral of Compensation. 
  

	 	4.2.1
	 
	Non-elective Deferrals. A percentage of each Participant’s Compensation may be deferred on a periodic and mandatory basis. The Plan Administrator
shall determine this percentage at its sole discretion. 
 

  

	 	4.2.2
	 
	Elective Deferrals. Notwithstanding the mandatory non-elective deferrals, a Participant may, at the sole discretion of the Plan Administrator, elect to
defer additional amounts of Compensation under the terms of the Plan. Both bonus and base compensation may be deferred. 
 

  
 4.3    Plan Investments. Amounts deferred into the Plan may, at the sole discretion of NGI, either be converted into Share Units based on a conversion ratio determined at the sole discretion of NGI, or not.
Those amounts not converted into Share Units will be tracked as cash balances and will be credited with interest upon periodic valuations, pursuant to Section 4.5. Said interest will be credited at the average Applicable Federal Rate
(“AFR”) for the applicable valuation period. 

 
 6 

  
 4.4    Operational Rules. The Committee shall determine the circumstances
under which a particular Benefit Account may be established, the minimum or maximum amount or percentage compensation to be contributed to a Benefit Account, the procedures for making or changing deferral elections. Any amounts deferred (including
amounts previously deferred) under the Plan will not be considered made available to the Participant solely because the Participant is permitted to elect to increase his participation in the Plan. 
  
 4.5    Account Options. The Committee shall have the power, from time to time, to dissolve Benefit Accounts, to direct that additional
Benefit Accounts be established and, under rules established by the Committee, to withdraw or limit participation in a particular Benefit Account. 
  
 4.6    Valuation of Fund. The Plan Administrator shall value Each Benefit Account from time to time, but not less frequently than each Annual Valuation Date. This valuation shall reflect, as nearly as
possible, the then fair market value of the Benefit Account, and, if applicable, also based on the estimated fair market value of NGI stock. 
  
 4.7    Effect of Dividends and Distributions. Netplex agrees, whenever any dividend or other distribution is paid on the NGI shares held in Trust, to either reinvest some or all said dividends and
distributions in additional NGI shares, or to hold as a non-NGI investment pursuant to Section 4.3, at NGI’s sole discretion, either of which shall also be included in each Plan Participants’ respective Benefit Account. 

 
 4.8    Shares Subject to this Plan. NGI shares to be contributed to the Plan on behalf of Plan Participants shall be
authorized but previously unissued, or reacquired shares of NGI’s common stock. The aggregate number of NGI shares that may be contributed under this Plan shall not exceed 5,000,000 Shares. The maximum number of NGI shares that may be
contributed for the benefit of any Plan Participant under this Plan per calendar year shall be limited to 2,000,000 shares. 
  
 4.9    Voting Rights. Voting rights attributable to NGI shares held in the Trust shall be voted by the Trustee as directed by Plan Participants, pursuant to the Trust Agreement Section 8(c). 

 
 4.10    Contributed Shares Not to Exceed Shares Available. The number of NGI shares contributed under this Plan at any time
during the Plan’s term shall not, in the aggregate at any time, exceed the number of shares authorized for issuance under the Plan. The number of shares forfeited for any reason shall again be available for issuance under the Plan. Unvested
shares repurchased by NGI, at the original exercise or issue price paid per share pursuant to its repurchase rights under the Plan, shall also be available for re-issuance under the Plan. 
  
 SECTION 5 
  
 VESTING OF ACCOUNT

  
 5.1.    Vested Benefit. A Participant shall be considered to be 100% vested in his or her Benefit Account
from the date of deferral unless otherwise determined by the Plan Administrator. Any such restrictions must be communicated to Eligible Employees prior to the deferral elections to which the restriction applies. For purposes of this provision, the
term “vested” means an interest in the benefit described under the Plan which may be payable to or on behalf of the Participant in accordance with the terms of the Plan. 

 
 7 

  
 SECTION 6 
  
 DISTRIBUTIONS 
  
 6.1    Form of
Distribution. Each Participant eligible for Benefits under the Plan shall receive a lump sum cash (or note equivalent, pursuant to section 6.1.1) payment equal to their deferred vested benefit credited with earnings, and the number of NGI shares
equal to the corresponding number of Share Units credited to the Participant’s Benefit Account as of the date of Distribution. 
  

	 	6.1.1
	 
	Note Equivalent Distribution. Netplex may, at its sole discretion, elect to make a distribution in the form of a note rather than in cash. In this event
the term of the note will be for not more than five (5) years, and the principal on the note will earn interest at the Applicable Federal Rate set forth in the immediately preceding quarter and for the appropriate term plus two (2) percentage
points. Payments on the note will be made no less frequently than annually. 
 

  
 6.2    Distribution Requirements. A Participant may not receive a Distribution under the Plan prior to the occurrence of a distributable event set forth in this Section 6.2. Amounts credited to a
Participant’s Benefit Account shall become distributable in accordance with Section 7 upon the earliest to occur of the following events: 
  

	 	(a)
	 
	the Participant’s “separation from service” with Netplex whether voluntary or involuntary, as determined in accordance with Section 6.3;

 

  

	 	(b)
	 
	a Change of Control in accordance with Section 6.4; or 
 

  

	 	(c)
	 
	the two year anniversary of the original adoption of this Plan as defined in Section 12 of this Plan. 
 

  
 6.3    Separation from Service. An Employee is separated from service with Netplex, if the employee: 
  

	 	(a)
	 
	Is either voluntarily or involuntarily relieved of his duties at Netplex; 
 

  

	 	(b)
	 
	Is retired from Netplex, 
 

  

	 	(c)
	 
	Becomes Disabled while an Employee of Netplex, as defined in Section 1.2.9 of this Plan, or 
 

  

	 	(d)
	 
	Becomes deceased while still an Employee of Netplex. 
 

  
 6.4    Change of Control. A Change in Control occurs in any one of the following ways: 
  

	 	(a)
	 
	The merger or consolidation of NGI with or into another unaffiliated entity, or the merger of another unaffiliated entity unto NGI or any subsidiary thereof
with the effect that immediately after such transaction the stockholders of NGI immediately prior to such transaction hold less than fifty percent (50%) of the total voting power of all securities generally entitled to vote in the election of
directors, managers or trustees of the entity surviving such merger or consolidation, 
 

  

	 	(b)
	 
	The sale, lease or other transfer of all or substantially all of NGI’s assets to an unaffiliated person or group (as such term is used in Section 13(d)(3)
of the Securities Exchange Act of 1934m as amended) or the sale or transfer of more than fifty-one percent (51%) of NGI’s then outstanding voting stock (other than in a restructuring transaction which results in the continuation of NGI’s
business by an affiliated entity) to such persons or group, or 
 

 
 8 

	 	(c)
	 
	The adoption by NGI’s shareholders of a plan relating to the liquidation or dissolution of NGI. 
 

  
 SECTION 7 
  
 DISTRIBUTION OF BENEFITS 
  
 7.1.    Timing of Distribution. 
  

	 	7.1.1
	 
	Separation from Employment. In the event a Plan Participant separates from employment, all Benefits held in that Participant’s Benefit Account as of
the date of separation from employment shall be distributed within 30 days of separation from employment in one Distribution. 
 

  

	 	7.1.2
	 
	Change of Control. In the event a Plan Participant continues employment beyond a Change of Control, all Benefits held in that Participant’s Benefit
Account as of the Change of Control shall be distributed in one Distribution within 30 days of the Change of Control 
 

  

	 	7.1.3
	 
	Adoption of Plan. In the event a Plan Participant continues employment beyond the two year anniversary of the Adoption of this Plan, all Benefits held in
that Participant’s Benefit Account as of the two year anniversary of the Adoption of this Plan shall be distributed in one Distribution on such anniversary. 
 

  
 7.2.    Transfers From This Plan. Notwithstanding any provisions of this Plan to the contrary, any part of a former Participant’s Benefit Account may, instead of being
distributed in accordance with this Section 7, be transferred to another deferred compensation plan in which the former Participant has become a participant as a consequence of retaining employment with an acquiring entity of NGI, provided the
acquiring entity’s deferred compensation plan allows for such a transfer. 
  
 7.3    Tax Withholding. At the
time of Distribution, Netplex will require as a condition of the delivery of a Plan Participant’s Benefit Account the withholding, either in the form of NGI shares or cash, of an amount necessary to satisfy the applicable federal, state and
local income and payroll taxes. 
  
 7.4.    Designation of Beneficiaries. 
  

	 	7.4.1.
	 
	Right to Designate. Each Participant may designate, upon forms to be furnished by and filed with the Plan Administrator, one or more primary
Beneficiaries or alternative Beneficiaries to receive all or a specified part of such Participant’s Benefit Account in the event of such Participant’s death. The Participant may change or revoke any such designation from time to time
without notice to or consent from any Beneficiary. No such designation, change or revocation shall be effective unless executed by the Participant and received by the Plan Administrator during the Participant’s lifetime. 

  

	 	7.4.2.
	 
	Failure of Designation. If a Participant: 
 

  

	 	(a)
	 
	fails to designate a Beneficiary, 
 

  

	 	(b)
	 
	designates a Beneficiary and thereafter revokes such designation without designating another Beneficiary, or 
 

  

	 	(c)
	 
	designates one or more Beneficiaries and all such Beneficiaries so designated fail to survive the Participant,
 
 

 
 9 

	 	
such Participant’s Benefit Account, or the part thereof as to which such Participant’s designation fails, as the case may be, shall be payable to the Participant’s surviving
spouse, or, if no spouse survives the Participant, then to the representative of the Participant’s estate. 
 

  

	 	7.4.3.
	 
	Definitions. When used herein and, unless the Participant has otherwise specified in the Participant’s Beneficiary designation, when used in a
Beneficiary designation, “issue” means all persons who are lineal descendants of the person whose issue are referred to, subject to the following: 
 

  

	 	(a)
	 
	a legally adopted child and the adopted child’s lineal descendants always shall be lineal descendants of each adoptive parent (and of each adoptive
parent’s lineal ancestors); 
 

  

	 	(b)
	 
	a legally adopted child and the adopted child’s lineal descendants never shall be lineal descendants of any former parent whose parental rights were
terminated by the adoption (or of that former parent’s lineal ancestors); except that if, after a child’s parent has died, the child is legally adopted by a stepparent who is the spouse of the child’s surviving parent, the child and
the child’s lineal descendants shall remain lineal descendants of the deceased parent (and the deceased parent’s lineal ancestors); 
 

  

	 	(c)
	 
	if the person (or a lineal descendant of the person) whose issue are referred to is the parent of a child (or is treated as such under applicable law) but never
received the child into that parent’s home and never openly held out the child as that parent’s child (unless doing so was precluded solely by death), then neither the child nor the child’s lineal descendants shall be issue of the
person. 
 

  
 “Child” means an issue of the first generation; “per stirpes”
means in equal shares among living children of the person whose issue are referred to and the issue (taken collectively) of each deceased child of such person, with such issue taking by right of representation of such deceased child; and
“survive” and “surviving” mean living after the death of the Participant. 
  

	 	7.4.4.
	 
	Special Rules. Unless the Participant has otherwise specified in the Participant’s Beneficiary designation, the following rules shall apply:

 

  

	 	(a)
	 
	If there is not sufficient evidence that a Beneficiary was living at the time of the death of the Participant, it shall be deemed that the Beneficiary was not
living at the time of the death of the Participant. 
 

  

	 	(b)
	 
	If the Participant designates as a Beneficiary the person who is the Participant’s spouse on the date of the designation, either by name or by
relationship, or both, and thereafter the marriage between the Participant and such person is dissolved, annulled or otherwise legally terminated, then such person shall be deemed to have predeceased the Participant; provided, however, that if the
Participant designates such person as a Beneficiary on a form executed by the Participant and received by the Plan Administrator after the date of the legal termination of the marriage between the Participant and such person, and during the
Participant’s lifetime, then such person shall not be deemed to have predeceased the Participant (unless such person shall have in fact predeceased the Participant). 
 

  

	 	(d)
	 
	Any designation of a nonspouse Beneficiary by name that is accompanied by a description of relationship to the Participant shall be given effect without regard
to whether the relationship to the Participant exists either then or at the Participant’s death. 
 

  

	 	(e)
	 
	Any designation of a Beneficiary only by statement of relationship to the Participant shall be effective only to designate the person standing in such
relationship to the Participant at the Participant’s death. 
 

  
 A Beneficiary designation is
permanently void if it either is executed or is filed by a Participant who, at the time of such execution or filing, is then a minor under the law of the state of the Participant’s legal residence. The
 

 
 10 

 
Committee shall be the sole judge of the content, interpretation and validity of a purported Beneficiary designation. 
  

	 	7.4.5.
	 
	Facility of Payment. In case of the legal disability, including minority, of a Participant or Beneficiary entitled to receive any distribution under the
Plan, payment shall be made pursuant to Section 6.1, if the Committee shall be advised of the existence of such condition: 
 

  

	 	(a)
	 
	to the duly appointed guardian, conservator or other legal representative of such Participant or Beneficiary, or 
 

  

	 	(b)
	 
	to a person or institution entrusted with the care or maintenance of the incompetent or disabled Participant or Beneficiary, provided, however, that such person
or institution has satisfied the Committee that the payment will be used for the best interest and assist in the care of such Participant or Beneficiary, and provided further, that no prior claim for said payment has been made by a duly appointed
guardian, conservator or other legal representative of such Participant or Beneficiary. 
 

  
 Any
payment made in accordance with the foregoing provisions of this Section shall constitute a complete discharge of any liability or obligation of Netplex and the Committee. 
  
 SECTION 8 
  
 PLAN ADMINISTRATION

  
 8.1.    Committee. 
  

	 	8.1.1.
	 
	Administrator. The administrator of the Plan shall be NGI. Except as hereinafter provided, NGI shall appoint a Committee to act for and on behalf of NGI
with respect to the administration of the Plan. The Committee may delegate authority with respect to the administration of the Plan as herein provided as it deems necessary or appropriate for the administration and operation of the Plan.

 

  

	 	8.1.2.
	 
	Appointment and Removal. The members of the Committee shall serve at the pleasure of NGI and shall (unless NGI determines otherwise) consist of those
persons designated by NGI. Members of the Committee shall serve without compensation. 
 

  

	 	8.1.3.
	 
	Automatic Removal. If any individual no longer satisfies the requirements established by NGI for serving on the Committee, then such individual shall be
automatically removed as a member of the Committee at the earliest time such individual ceases to satisfy such requirements. This removal shall occur automatically and without any requirement for action by NGI or any notice to the individual so
removed. 
 

  

	 	8.1.4.
	 
	Authority. The Committee shall be authorized to act for and on behalf of NGI with respect to the administration and operation of the Plan. The Committee
shall have sole discretionary responsibility for the operation, interpretation and administration of the Plan and for determining eligibility for Plan benefits. Any benefits payable under this Plan will be paid only if the Committee decides in its
discretion that the applicant is entitled to them. Any action taken on any matter within the discretion of the Committee shall be final, conclusive and binding on all parties. In order to discharge its duties hereunder, the Committee shall have the
power and authority to adopt, interpret, alter, amend or revoke rules and regulations necessary to administer the Plan, to delegate ministerial duties and to employ such outside professionals as may be required for prudent administration of the
Plan. 
 

  

	 	8.1.5
	 
	Indemnification. NGI will indemnify and hold harmless each current and former member of the Committee against any and all expenses and liabilities
arising out of such member’s action or failure to act in such capacity, excepting only expenses and liabilities arising out of such member’s own willful misconduct or gross
 
 

 
 11 

	 	
negligence. 
 

  
 8.2.    Conflict of
Interest. If any Employee of NGI to whom authority has been delegated or redelegated hereunder shall also be a Participant in the Plan, such Participant shall have no authority as such Employee or member with respect to any matter specially
affecting such Participant’s individual interest hereunder or the interest of a person superior to him or her in the organization (as distinguished from the interests of all Participants and Beneficiaries or a broad class of Participants and
Beneficiaries), all such authority being reserved exclusively to the other Employees or members as the case may be, to the exclusion of such Participant, and such Participant shall act only in such Participant’s individual capacity in
connection with any such matter. 
  
 8.3    Insolvency. If NGI, or one of the participating subsidiaries or
affiliates, is Insolvent, Benefits shall not be payable under this plan to the employees of the Insolvent participating employer. NGI or one of the participating subsidiaries or affiliates shall be considered “Insolvent” for purposes of
this Plan if (1) the entity is unable to pay its debts as they become due or (2) the entity is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. Pursuant to the trust doc, once the trustee is notified of the
company’s insolvency, the trust is frozen and all assets go to the bankruptcy estate; this would include the stock 
  
 8.4.    Spendthrift Provision. No Participant or Beneficiary shall have any power to anticipate, alienate, dispose of, pledge or encumber any amounts credited to any Benefit Account under the Plan, nor
shall NGI recognize any assignment thereof, either in whole or in part, nor shall any amounts credited to any Benefit Account under the Plan be subject to attachment, garnishment, execution following judgment or other legal process. 

 
 The power to designate Beneficiaries to receive the amounts credited to the Benefit Account of a Participant in the event of such Participant’s
death shall not permit or be construed to permit such power or right to be exercised by the Participant so as thereby to anticipate, pledge, mortgage or encumber such Participant’s Account or any part thereof, and any attempt of a Participant
so to exercise said power in violation of this provision shall be of no force and effect and shall be disregarded by NGI. 
  
 This Section
shall not prevent NGI from exercising, in its discretion, any of the applicable powers and options granted to it upon the occurrence of a distributable event described in Section 6.1, as such powers may be conferred upon it by any applicable
provision hereof. 
  
 SECTION 9 
  
 TRUST PROVISIONS 
  
 9.1    Establishment of a Trust. A
trust shall be established to hold all NGI shares contributed by Netplex pursuant to Section 4. Except as otherwise provided in Section 4 of the Trust Agreement, the Trust shall be irrevocable and no portion of the Trust Fund shall be used for any
purpose other than the deliver of NGI shares pursuant to satisfaction of the distribution requirements pursuant to Section 6.2, and the payment of expenses of the Plan and Trust. 
  
 9.2    Trust Status. The Trust is intended to be a grantor trust, within the meaning of Section 671 of the Code, of which Netplex is the grantor, and this Plan shall be
construed in accordance with such intent. Notwithstanding any other provision of this Plan, the Trust Fund shall remain the property of Netplex and be subject to the claims of creditors of NGI and the creditors of the participating subsidiaries and
affiliates in the event that either NGI or a participating subsidiary or affiliate is Insolvent, as described in the Trust Agreement and Section 8.3 herein. No Participant will have any priority claim on the Trust Fund or any security interest or
other right superior to the rights of a general creditor of the Participant’s employer, either NGI or a participating subsidiary or affiliate. 

 
 12 

  
 9.3    Termination of Trust. Any NGI shares not distributed to a Participant
upon termination of the Trust, shall revert to NGI at that time. 
  
 SECTION 10 
  
 AMENDMENT AND TERMINATION 
  
 10.1.    Amendment of Plan. NGI shall have the right to amend the Plan, at any time and from time to time, in whole or in part in the same manner as any other action which may be taken by NGI. NGI shall
notify the Participants of any Plan amendment. 
  
 10.2. Plan Termination. Although NGI has established this Plan with the intention
and expectation to maintain the Plan indefinitely, NGI may terminate or discontinue the Plan in whole or in part at any time without any liability for such termination or discontinuance. Upon Plan termination, all Deferrals shall cease. Each
Participant’s Benefit Account shall remain in tact until Distribution of Benefits commences pursuant to Section 7. 
  
 SECTION 11 
  
 MISCELLANEOUS 
  
 11.1.    Claims Procedure. Until modified by the Committee, the claims procedure set forth in this Section 11.1 shall be the claims procedure for the resolution of disputes
and disposition of claims arising under the Plan. An application for a Distribution under Section 7 shall be considered as a claim for the purposes of this Section. 
  

	 	11.1.1.
	 
	Original Claim. Any Employee, former Employee, or Beneficiary of such Employee or former Employee may, if the Employee, former Employee or Beneficiary so
desires, file with the Committee a written claim for Benefits under the Plan. Within ninety (90) days after the filing of such a claim, the Committee shall notify the claimant in writing whether the claim is upheld or denied in whole or in part or
shall furnish the claimant a written notice describing specific special circumstances requiring a specified amount of additional time (but not more than one hundred eighty days from the date the claim was filed) to reach a decision on the claim. If
the claim is denied in whole or in part, the Committee shall state in writing: 
 

  

	 	(a)
	 
	the specific reasons for the denial, 
 

  

	 	(b)
	 
	the specific references to the pertinent provisions of this Plan on which the denial is based, 
 

  

	 	(c)
	 
	a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information
is necessary, and 
 

  

	 	(d)
	 
	an explanation of the claims review procedure set forth in this Section. 
 

  

	 	11.1.2.
	 
	Claims Review Procedure. Within sixty (60) days after receipt of notice that the claim has been denied in whole or in part, the claimant may file with
the Committee a written request for a review and may, in conjunction therewith, submit written issues and comments. Within sixty (60) days after the filing of such a request for review, the Committee shall notify the claimant in writing whether,
upon review, the claim was upheld or denied in whole or in part or shall furnish the claimant a written notice describing specific special circumstances requiring a specified amount of additional time (but not more than one hundred twenty days from
the date the request for review was filed) to reach a decision on the request for review. 
 

  

	 	11.1.3.
	 
	General Rules. 
 

 
 13 

  

	 	(a)
	 
	No inquiry or question shall be deemed to be a claim or a request for a review of a denied claim unless made in accordance with the claims procedure. The
Committee may require that any claim for benefits and any request for a review of a denied claim be filed on forms to be furnished by the Committee upon request. 
 

  

	 	(b)
	 
	All decisions on claims and on requests for a review of denied claims shall be made by the Committee. 
 

  

	 	(c)
	 
	The Committee may, in its discretion, hold one or more hearings on a claim or a request for a review of a denied claim. 
 

 

	 	(d)
	 
	Claimants may be represented by a lawyer or other representative at their own expense, but the Committee reserves the right to require the claimant to furnish
written authorization. A claimant’s representative shall be entitled to copies of all notices given to the claimant. 
 

  

	 	(e)
	 
	The decision of the Committee on a claim and on a request for a review of a denied claim shall be served on the claimant in writing. If a decision or notice is
not received by a claimant within the time specified, the claim or request for a review of a denied claim shall be deemed to have been denied. 
 

  

	 	(f)
	 
	Prior to filing a claim or a request for a review of a denied claim, the claimant or the claimant’s representative shall have a reasonable opportunity to
review a copy of this Plan and all other pertinent documents in the possession of NGI and the Committee. 
 

  

	 	(g)
	 
	The Committee may, in its discretion, rely upon any applicable statute of limitations as a basis for denial of any claim. 
 

 

	 	11.1.4.
	 
	Exhaustion of Administrative Remedies. No Employee, former Employee, or Beneficiary of such Employee or former Employee may commence any legal action to
recover Plan benefits or to enforce or clarify rights under the Plan, or under any provisions of law, whether or not statutory, until the claims and review procedures set forth herein have been exhausted in their entirety. 

  
 11.2.    Information Furnished by Participants. Neither Netplex nor the Committee shall be liable or
responsible for any error in the computation of the Benefit Account of a Participant resulting from any misstatement of fact made by the Participant, directly or indirectly, to Netplex or the Committee and used by them in determining the
Participant’s Benefit Account. Neither Netplex nor the Committee shall be obligated or required to increase the Benefit Account of such Participant which, on discovery of the misstatement, is found to be understated as a result of such
misstatement of the Participant. However, the Account of any Participant which is overstated by reason of any such misstatement shall be reduced to the amount appropriate for the Participant in view of the truth and such amount shall be allocated
and reallocated to the Benefit Account of the Participants in the Plan. 
  
 11.3.    Term of Employment. Neither
the terms of this Plan nor the benefits hereunder nor the continuance thereof shall be a term of the employment of any Employee. NGI shall not be obliged to continue the Plan, nor shall any participating subsidiary or affiliate be obliged to
continue to participate. The terms of this Plan shall not give any Employee the right to be retained in the employment of Netplex. 
  
 11.4.    Representations. Netplex does not represent or guarantee that any particular federal or state income, payroll, personal property or other tax consequence will result from participation in this
Plan. A Participant should consult with professional tax advisors to determine the tax consequences of participation. Furthermore, Netplex does not represent or guarantee successful investment of Deferrals and shall not be required to restore any
loss which may result from such investment or lack of investment. 
  
 11.5.    Severability. If a court of
competent jurisdiction holds any provision of this Plan to be invalid or
 

 
 14 

 
unenforceable, the remaining provisions of this Plan shall continue to be fully effective. 
  
 11.6    Controlling Document. The provisions of the Trust Agreement shall control in the event the provisions of this Plan are inconsistent with the Trust Agreement. 
  
 11.7    Applicable Law. This Plan shall be construed in accordance with applicable federal law and, to the extent otherwise
applicable, the laws of the State of Virginia. 
  
 SECTION 12 
  

ADOPTION 
  
 Execution of this document serves to
effectuate the restatement of the Netplex Group, Inc. Deferred Compensation Plan, the original Plan having been duly adopted as of August 6, 2001. 
  
 IN WITNESS WHEREOF, this Amended and Restated The Netplex Group, Inc. Deferred Compensation Plan is duly executed by NGI, effective as of September 30, 2002. 
  
 
	 By:                                     
                                        
                              
 
	 
	 Title:                                    
                                        
                            
 
	 
	 Signature:                                   
                                        
                   
 
	 
	 Date:                                    
                                        
                            
 

 

 
 15 

  
 ATTACHMENT I 
  
 SUBSIDIARY OR AFFILIATE 
 EMPLOYER ADOPTION AGREEMENT FOR THE 
 AMENDED AND RESTATED THE NETPLEX GROUP, INC. 
 DEFERRED COMPENSATION PLAN

  
 Execution of this agreement serves to effectuate the participation in the Amended and Restated Netplex Group, Inc. Deferred
Compensation Plan. 
  
 
	 ADOPTING EMPLOYER:
 	  	  	  	  
	 	
	
	 	 
	 
	 PLAN NAME:
 	  	 Amended and Restated The Netplex Group, Inc.
 	  	  
	 	
	
	 	 
	 
	  	  	 Employee Deferred Compensation Plan
 	  	  
	 	
	
	 	 
	 
	  	  	  	  	  
	 	
	
	 	 
	 
	 PLAN EFFECTIVE DATE:                                
                                        
                                        
                                        
            
 	  	  

 
  
 IN WITNESS WHEREOF, this Amended and Restated The Netplex
Group, Inc. Deferred Compensation Plan is duly adopted by the Employer, effective as of the day and year first above written. 
  
 
	 By:                                     
                                        
                              
 
	 
	 Title:                                    
                                        
                            
 
	 
	 Signature:                                   
                                        
                   
 
	 
	 Date:                                    
                                        
                            
 

 

 
 16 

  
 ATTACHMENT II 
  
 PARTICIPATING AFFILIATES 
  
 
	 Affiliates Designated as
 Eligible to Participate
 
	    	 Committee Member or
 Authorized
Representative
 
	  	 Date
 

	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  
	  	    	  	  	  

 

 
 17Exhibit 10.9 -- Security Agreement

 Exhibit 10.9 
  
 SECURITY AGREEMENT 
  
 THIS SECURITY AGREEMENT is made as of the 15th day of May, 2002, between CONTRACTORS RESOURCES, INC., a New Jersey corporation (“Debtor”), and
WATERSIDE CAPITAL CORPORATION, a Virginia corporation (the “Secured Party”). 
  
 R E C I T A L S

  
 The Borrowers (as defined below) have executed two Secured Commercial Notes (the “Notes”) in the
original principal amounts of $900,000 and $500,000 and as more particularly described in paragraphs 2(a) and 2(b) below. 
  
 In consideration for equity investment and loan financing provided to The Netplex Group, Inc., a New York corporation (“Group”), Debtor’s parent corporation, and to Netplex Systems, Inc., a Delaware corporation
(“Systems”), the sister corporation of Debtor (Group and Systems collectively the “Borrowers”), by Secured Party, and for the Secured Party’s accommodations and collateral release provided for in that certain Workout and
Collateral Release Agreement dated as of May 15, 2002, Debtor has agreed to secure all of the Obligations described and defined in Paragraph 2 below by granting the Secured Party a lien on all of its assets. 
  
 AGREEMENT 
  
 Accordingly, the Debtor and the Secured Party agree: 
  
 1. To secure the payment, satisfaction and
discharge of the Obligations, the Debtor assigns, transfers, pledges and sets over to the Secured Party, and its successors and assigns, and grants the Secured Party, and its successors and assigns, a security interest in, all of the personal
property of every kind and nature of the Debtor, whether tangible or intangible, whether now existing or hereafter arising, whether now owned or hereafter acquired by the Debtor or in which the Debtor now has or hereafter acquires any right, title
or interest, together with all of the proceeds thereof and all additions, accessions and substitutions thereto and therefor (collectively the “Collateral”), including, without limitation the following: 
  
 (a) All of the Debtor’s accounts, accounts receivable, contract rights, instruments, certificates of deposit,
documents, chattel paper, notes, drafts, acceptances and other forms of obligations and receivables, whether or not earned by performance, and which are now owned or hereafter acquired by the Debtor or in which the Debtor now has or hereafter
acquires any right, title or interest (collectively the “Accounts”), together with all proceeds of the Accounts; and 
  
 (b) All of the Debtor’s tangible personal property, goods, books, records, furniture, apparatus, furnishings, fittings, fixtures, machinery, motor vehicles, appliances, computer systems, and
equipment, wherever located or however used, which are now owned or hereafter acquired by the Debtor or in which the Debtor now has or hereafter acquires any right, title or interest (collectively the “Equipment”), together with all
proceeds of the Equipment; and 

 
 1 

  
 (c) All general intangibles of the Debtor, which are now owned or
hereafter acquired by the Debtor or in which the Debtor now has or hereafter acquires any right, title or interest, including, without limitation, all choses in action, things in action, suits, actions, causes of actions and claims of every kind and
nature, whether at law or in equity and all condemnation awards, insurance proceeds, customer lists, servicing rights, computer software and source codes, patents, patent rights, licenses, uncertificated securities, investment property, trademarks,
trade names, copyrights, and goodwill and all claims for income tax refunds and other payments from any local, state or federal governmental authority or agency (collectively the “General Intangibles”), together with all proceeds of
the General Intangibles; and 
  
 (d) All demand, time, savings, passbook and other deposit accounts
of the Debtor with all banks, credit unions, savings and loan associations and other financial institutions which are now owned or hereafter acquired by the Debtor or in which the Debtor now has or hereafter acquires any right, title or interest
(collectively the “Deposit Accounts”) and all of the Debtor’s money, together with all proceeds of the Deposit Accounts; and 
  
 (e) All of the Debtor’s inventory and other tangible personal property, which are now owned or hereafter acquired by the Debtor or in which the Debtor
now has or hereafter acquires any right, title or interest, and held for sale or lease or to be furnished under contracts or used or consumed in the Debtor’s business (collectively the “Inventory”), together with all
contractual rights of the Debtor pertaining to Inventory and all proceeds of the Inventory; and 
  
 (f) All awards and other payments in respect of any taking and all insurance proceeds in respect of any of the foregoing, together with all amounts received by the Secured Party, or expended by the Secured Party pursuant to this
Security Agreement and all monies and claims for money due and to become due to Debtor under all its accounts, contract rights, leases and general intangibles as such terms are defined in the Uniform Commercial Code of the Commonwealth of Virginia.

  
 2. This Security Agreement and the security interest and rights of the Secured Party in the Collateral shall
secure the payment and discharge of the following indebtedness, obligations and liabilities of the Borrowers to the Secured Party, whether now existing or hereafter incurred, whether matured or unmatured, whether direct or indirect, whether absolute
or contingent, whether liquidated or unliquidated, whether secured or unsecured, whether original, renewed or extended, whether contracted by any one or more of the Borrowers (if more than one) alone or jointly and/or severally with another or
others, and whether or not represented by notes, instruments or other writings, (hereinafter all such indebtedness, obligations and liabilities shall be collectively referred to as the “Obligations”): 
  
 (a) The payment of all indebtedness evidenced by that certain Secured Commercial Note dated September 28, 2001 made by
Group payable to the order of the Secured Party in the principal amount of $900,000, together with interest thereon as provided therein, and any modifications of such note and any promissory note given in curtail, renewal or extension, in whole or
in part of such note; 

 
 2 

  
 (b) The payment of all indebtedness evidenced by that certain
Secured Commercial Note dated May 15, 2002 made by Systems payable to the order of the Secured Party in the principal amount of $500,000, together with interest thereon as provided therein, and any modifications of such note and any promissory note
given in curtail, renewal or extension, in whole or in part of such note; 
  
 (c) The payment of all
costs, expenses, charges, liabilities, commissions, half-commissions and attorneys’ fees now or hereafter chargeable to, or incurred by, or disbursed by, the Secured Party pursuant to this Security Agreement, any other of the Obligations,
applicable law or any of the documents and instruments which provide the Secured Party with any security for the payment and performance of the Obligations and/or which state the terms and conditions of the Obligations and/or which set forth the
agreements, understandings and covenants between the Borrowers and/or the Debtor and the Secured Party and/or which set forth the representations and warranties made by the Borrowers and/or the Debtor to the Secured Party, including, without
limitation, the Master Agreement, dated September 28, 2001, by and among Group, Systems and Secured party and the Workout and Collateral Release Agreement, dated May 15, 2002, by and among Group, Systems and Secured Party, (collectively the
“Security Instruments”); 
  
 (d) The performance of, observance of and compliance
with all of the terms, covenants, conditions, stipulations and agreements of the Borrowers and the Debtor contained in the Security Instruments; and 
  
 (e) The payment of all indebtedness evidenced by the Notes and the other Obligations as they may from time to time be renewed, extended, modified and/or
curtailed (unlimited modification, renewal, curtailment or extension of the Notes and any other of the Obligations being expressly permitted), whether or not by note or other instrument, together with all interest and charges incurring therein,
whether before or after maturity. 
  
 3. The Debtor covenants, agrees, represents and warrants to the Secured Party
as follows: 
  
 (a) The Debtor is and will be the absolute owner of the Collateral free and clear of
any adverse lien, security interest or encumbrance other than the encumbrances set forth on Schedule 3(a), purchase money security interests in after acquired property, and the security interests granted to the Secured Party, except that
Secured Party agrees to subordinate its security interests hereunder to the interests of Wells Fargo Business Credit, Inc. (or a similar senior institutional lender) as a senior institutional lender (the “Institutional Lender”) on terms
and conditions acceptable to Secured Party in the exercise of its reasonable business judgment, and Secured Party agrees to permit and authorize Debtor to file such amended financing statements as are reasonably necessary to evidence such
subordination subject to Secured Party’s reasonable approval; provided that the aggregate borrowings (or amounts advanced in factorings) of Group, Systems and Debtor do not exceed eighty percent (80%) of the book value of the receivables of the
SI Division of Systems which are 90 days or less past due (the “Borrowing Base”). Secured Party agrees to consider in good faith increasing the Borrowing Base to include the assets of Debtor in the event Debtor has the opportunity to
finance its assets. The Debtor will defend the Collateral against all claims and demands of all persons and entities at any time claiming any right, title or interest of any kind or nature in all or any part of the Collateral adverse to the right,
 

 
 3 

 
title and interest of the Debtor and/or the Secured Party in the Collateral. 
  
 (b) The Debtor is a corporation duly organized and incorporated and is validly existing as a corporation in good standing under the laws of New Jersey, with the power to conduct its business. The
execution, delivery and performance by the Debtor of this Security Agreement are within the Debtor’s powers, have been duly authorized, and are not in contravention of (i) any applicable law or (ii) any of the Debtor’s articles of
incorporation, charter or bylaws as amended through the date of this Security Agreement or (iii) any agreement or judicial order or decree to which Debtor is a party or by which Debtor or any of its property is bound. 
  
 (c) The Debtor shall preserve its corporate existence and not, in one transaction, or a series of transactions, merge into
or consolidate with any other entity, sell all or substantially all of its assets provided, however, that Debtor may change its state of incorporation (through a transaction such as a merger or otherwise, for the sole purpose of changing
Debtor’s domicile) if Debtor provides written notice to Secured Party and cooperates with Secured Party in executing and filing at Debtor’s expense such additional financing statements in the Debtor’s new domicile as Secured Party may
reasonably request and such change in Debtor’s state of incorporation will not result in any adverse change in or to Secured Party’s security interest in the Collateral. The Debtor will notify the Secured Party not less than 30 days before
changing its name or state of incorporation. 
  
 (d) The Debtor will from time to time, as reasonably
requested by the Secured Party, give the Secured Party a complete list of any Collateral existing at the time of the request together with copies of any underlying contracts, agreements or documents. 
  
 (e) The Debtor will keep records concerning the Collateral at the chief executive office of the Debtor and will keep the
Secured Party advised of the location of such records. The Debtor will, at all reasonable times and from time to time, allow the Secured Party and its officers, agents, employees, attorneys and accountants to examine and inspect the Collateral and
to examine, inspect, and make extracts from the books and other records of the Debtor, and to arrange for verification of Accounts, if any, under reasonable procedures directly with the account debtors or by other methods. 
  
 (f) The Debtor represents and warrants that, except for the financing statements filed for the benefit of the Secured
Party, no financing statement covering the Collateral or any proceeds thereof, which has not been terminated, is on file in any public office. Debtor authorizes the Secured Party to file a financing statement describing the collateral and agrees to
pay the cost of filing such financing statements, this Security Agreement and any continuation or termination statements in all public offices wherever filing is deemed by the Secured Party to be necessary or desirable. 
  
 (g) The Debtor shall pay all taxes, levies, assessments and other charges of every kind or nature which may be levied or
assessed against the Collateral. 
  
 (h) The Debtor shall not permit or allow any adverse lien,
security interest
 

 
 4 

 
(other than the encumbrances listed on Schedule 3(a), purchase money security interests on after acquired property, and the security interests given to the Secured Party), or encumbrance
of any kind or nature whatsoever upon the Collateral and shall not permit all or any part of the Collateral to be attached, replevied, levied upon or garnished. 
  
 (i) If the Debtor shall fail to pay any tax, levy, assessment or other charge against the Collateral, after written notice by the Secured Party to the
Debtor and the passing of a 10-day period thereafter during which the Debtor may cure such failure, the Secured Party may, at its option, pay such tax, levy, assessment or other charge. The Debtor agrees to reimburse the Secured Party on demand for
any such payment by the Secured Party. The amount of any such payment shall be an additional Obligation secured by this Security Agreement and shall be part of the “Obligations” as that term is used herein. 
  
 (j) In the event that any of the Obligations or Security Instruments is referred to attorneys for enforcement or
collection, the Debtor will pay the reasonable attorneys’ fees of the Secured Party and any and all costs and expenses incurred by the Secured Party in recovering possession of the Collateral, in enforcing this Security Agreement, or any other
of the Security Instruments and/or in enforcing or collecting any of the Obligations, the payment of all of which shall be secured by this Security Agreement and shall be part of the “Obligations” as that term is used herein. 

 
 (k) The Debtor will not use the Collateral in violation of any applicable laws, statutes, regulations or
ordinances. 
  
 (l) The amounts of any funds which the Secured Party shall pay or expend for any
purpose whatsoever under this Security Agreement shall be paid by the Debtor to the Secured Party on demand and shall bear interest thereon from the date of expenditure through the date of payment at an annual rate equal to the prevailing interest
rate under the Notes in effect from time to time. All of such funds so paid or expended and all interest thereon shall be secured by this Security Agreement and shall be “Obligations.” 
  

(m) The Debtor’s chief executive office is located at 1800 Robert Fulton Drive, Suite 250, Reston, Virginia 20191. The Debtor maintains additional
places of business at the locations set forth on Schedule 3(1). 
  
 4. Unless and until and Event of Default,
as defined below, shall occur, the Debtor may have possession of the Collateral and use the Collateral in any lawful manner not inconsistent with this Security Agreement (including the sale of inventory in the ordinary course of Debtor’s
business) or with any insurance policy on the Collateral. Upon the occurrence of any Event of Default, as hereinafter defined, the Secured Party shall have the immediate right to possession of the Collateral. 
  
 5. On the occurrence of any Event of Default, the Secured Party may, but is not obligated to: 
  
 (a) Notify any obligor or account debtor on any of the Accounts or General
 

 
 5 

 
Intangibles to make payment to the Secured Party; 
  
 (b) Collect by legal proceedings or otherwise any of the Accounts or General Intangibles and endorse, receive and receipt for all dividends, interest, payments, proceeds and other sums and property now or hereafter payable on or on
account of the Collateral; 
  
 (c) Enter into any compromise, settlement, extension or other
agreement pertaining to the Collateral or deposit, surrender, accept, hold or apply other property in exchange for the Collateral, or extend the time for or modify the terms and conditions governing the drawing, presentation, negotiation or
acceptance of drafts or other instruments; 
  
 (d) Insure, process or preserve the Collateral;

  
 (e) Transfer the Collateral to the Secured Party’s name or its nominee’s name;

  
 (f) Exercise all the rights, powers, and remedies of an owner with respect to the Collateral;
and/or 
  
 (g) Make any payment and/or perform any agreement undertaken by the Debtor and/or expend
such sums and/or incur such expenses (including, without limitation, reasonable attorneys’ fees) as the Secured Party in its sole discretion shall deem advisable. 
  
 6. All actions taken in good faith and in accordance with the Uniform Commercial Code of Virginia by the Secured Party and its officers, employees or agents to enforce,
maintain or protect its interests and rights under this Security Agreement by the Secured Party shall be binding on the Debtor. The Debtor covenants not to sue the Secured Party for any claims for loss or damage to the Debtor caused by or resulting
from any failure to enforce any contract right of the Debtor or any act or omission on the part of the Secured Party, its officers, agents or employees, except for the Secured Party’s gross negligence or willful misconduct. The Debtor assumes
all risk of loss, damage or deterioration of the Collateral and will save and hold the Secured Party harmless from any loss therefrom. Such care as the Secured Party gives to the safekeeping of its own property of like kind shall constitute
reasonable care of the Collateral when in the Secured Party’s possession; but the Secured Party is not required to make presentment, demand or protest, or give notice, and need not take action to preserve any rights against prior or other
parties in connection with any obligation or evidence of indebtedness held as Collateral or in connection with the Obligations. 
  
 7. If any one or more of the following events (“Events of Default”) shall occur for any reason whatsoever (whether such occurrence shall be voluntary or involuntary or come about or be effected by operation of law or
pursuant to or in compliance with any judgment, decree, or order of any court or any order, rule, or regulation of any administrative or governmental body), then a default shall be deemed to exist under this Security Agreement and the Notes:

  
 (a) If there shall occur a default in the payment of any monies by any of the Borrowers to the
Secured Party required by any Security Instrument (after giving effect to all
 

 
 6 

 
applicable grace, notice and cure periods provided in such Security Instrument); or 
  
 (b) If there shall occur a default by Debtor or the Borrowers, either individually or collectively, in the performance or observance of any other covenant, agreement other term or provision of this
Security Agreement, the Notes, any of the other Obligations, or any of the other Security Instruments or in any instrument or document delivered to the Secured Party by the Borrowers and/or the Debtor, not involving the payment of monies by any of
the Borrowers and/or the Debtor to the Secured Party and, after the Secured Party shall have given written notice to the Debtor specifying the default and such default is not cured within 10 days after the Debtor’s receipt of such notice, such
default continues beyond any applicable grace period, or if any of the foregoing documents or instruments shall terminate or become void or unenforceable without the written consent of the Secured Party; or 
  
 (c) If the Debtor fails to reasonably cooperate with Secured Party’s requests to perfect, maintain or exercise its
rights in or to the Collateral. 
  
 8. On the occurrence of any Event of Default and at any time thereafter if such
Event of Default or any other Event of Default shall then be continuing, the Secured Party (i) may, at its option, declare all of the Obligations to be immediately due and payable, whereupon the maturity of the then unpaid balance of the Obligations
shall be accelerated and the same, and all interest accrued thereon, shall forthwith become due and payable without presentment, demand or protest of any kind, all of which the Debtor expressly waives notwithstanding anything contained herein or in
the Obligations which may appear or be construed to the contrary, (ii) shall have all of the rights and remedies of a secured party under the Virginia Uniform Commercial Code regardless of the jurisdiction in which all or any portion of the
Collateral may be located, (iii) shall have the right to enter upon the premises where the Collateral is located to take possession or control of the Collateral, (iv) may require the Debtor to assemble the Collateral and deliver it, or make it
available, to the Secured Party at any place and time designated by the Secured Party, and (v) shall also have the right to remain on the premises of the Debtor without cost or charge to the Secured Party and to use the premises together with the
materials, supplies, books and records of the Debtor for the purpose of collecting or liquidating the Collateral, whether by foreclosure, auction or otherwise. In taking possession of the Collateral, the Secured Party may take possession of all
personal property located in or attached to the Collateral without liability to the Debtor and may hold such personal property for the Debtor at the Debtor’s expense. 
  
 Without limiting the generality of the foregoing, the Secured Party may sell or otherwise dispose of the Collateral as a whole or in parts at one or more public or private
sales or may retain all or any portion of the Collateral in satisfaction of the Obligations secured hereby, with notice of such retention sent to the Debtor if required by law. Any public sale of the Collateral may be held at any office of the
Debtor or the office of the Secured Party in the City of Norfolk, Virginia. The Secured Party may sell the Collateral at one time or at different times (with such postponements of sale as may be deemed appropriate by the Secured Party in its
absolute discretion), for cash or credit, with such bidder’s deposit and upon such other terms and conditions as the Secured Party shall deem appropriate in its absolute discretion. At the option of the Secured Party, the Collateral may be sold
as a whole or in such separate groupings of the
 

 
 7 

 
Collateral and in such order as the Secured Party may deem appropriate in its absolute discretion. No purchaser at any public or private sale of all or any part of the Collateral (other than the
Secured Party) shall be required to see to the proper application of the purchase money. 
  
 The Secured Party’s
rights and remedies under this Security Agreement, at law and in equity, are cumulative, and the Secured Party may exercise all such rights and remedies without notice or demand to the Debtor. The Secured Party’s rights and remedies under this
Security Agreement shall be in addition to (a) all rights which the Secured Party may have under the terms and provisions of the Notes, the Obligations, and any other of the Security Instruments, (b) all rights of offset or setoff available to the
Secured Party, and (c) all rights and remedies of the Secured Party at law or in equity. Unless the Collateral is perishable and threatens to decline speedily in value or is a type customarily sold on a recognized market, the Secured Party shall
give the Debtor at least 7 days’ prior written notice of the day, time and place of any public sale or of the day and time after which any private sale or any other intended disposition may be made, and the Debtor agrees that such notice shall
be deemed to be reasonable under all circumstances. If any sale of the Collateral be at public auction, the Secured Party may itself be a purchaser at such sale free from any right or equity of redemption of the Debtor, such right being hereby
expressly waived and released. The Secured Party’s reasonable expenses of retaking, holding, preparing for sale and selling the Collateral (including, without limitation, reasonable attorneys’ fees) shall be deemed advances to the Debtor
by the Secured Party payable on demand, and the repayment of such expenses shall be secured by this Security Agreement. 
  
 9. The Debtor will from time to time execute such further instruments and do such further acts and things as the Secured Party reasonably may require by way of further assurance to the Secured Party of all of the rights and remedies
of the Secured Party provided for or intended to be provided for in this Security Agreement. The Debtor authorizes the Secured Party to file and agrees to execute and deliver such financing statement or statements, or amendments thereof or
supplements thereto, or other instruments as the Secured Party may from time to time require to comply with the Virginia Uniform Commercial Code and the laws of any jurisdiction in which all or any portion of any Collateral shall be located and to
preserve and protect the security interests hereby granted. In the event the law of any jurisdiction other than Virginia becomes or is applicable to the Collateral or any part thereof or of any of the Obligations, the Debtor shall execute and
deliver all such instruments and to do all such other things as may be necessary or appropriate to preserve, protect and enforce the security interests and liens of the Secured Party under the law of such other jurisdiction to at least the same
extent as such security interests and liens of the Secured Party would be protected under the Virginia Uniform Commercial Code. 
  
 10. After deducting all reasonable costs and expenses of every kind incurred or incidental to the retaking, holding, advertising, preparing for sale and selling, leasing or otherwise disposing of the Collateral or in any way relating
to the Secured Party’s rights and remedies under this Security Agreement, including, without limitation, reasonable attorneys’ fees and costs of any repairs deemed necessary or appropriate by the Secured Party, the Secured Party may apply
the net proceeds of any sale or other disposition of the Collateral to payment in full or in part of any one or more of the Obligations, whether or not then due and payable, in such order and to such of the Obligations as the Secured Party may elect
in the exercise of its absolute
 

 
 8 

 
discretion. The Secured Party shall pay over to the Debtor or the person or entity entitled to receive it any surplus which may exist after full payment of all of the Obligations and any other
payments the Secured Party may be required by law to make. The Debtor shall remain liable to the Secured Party for the payment of any deficiency in the payment of any of the Obligations after the sale or other disposition of the Collateral.

  
 11. This Security Agreement shall be governed by and interpreted in accordance with the laws of the Commonwealth
of Virginia in force on the date of this Security Agreement. To the maximum extent permitted by applicable law the parties each irrevocably and unconditionally submit to the exclusive jurisdiction of the Circuit Court of the City of Norfolk,
Virginia and the United States District Court for the Eastern District of Virginia, Norfolk Division, as well as to the jurisdiction of all courts from which an appeal may be taken from any such courts, for the purposes of any suit, action or other
proceeding arising out of, or with respect to this Note or the Security Agreement and expressly and irrevocably waive any and all objections they may have as to venue or inconvenient forum in any of such courts. 
  
 12. Any notice which may be given by a party to this Security Agreement must be in writing and shall be deemed to have been given by the
sending party and received by the receiving party when any notice shall have been hand delivered to the receiving party at the address designated below for such receiving party or 5 days after such notice shall have been posted in the certified mail
of the United States, return receipt requested and postage prepaid, and addressed to the receiving party at the address designated below for such receiving party. The Debtor designates as its address for the purpose of receiving any such notice,
1800 Robert Fulton Drive, Suite 250, Reston, Virginia 20191, and the Secured Party designates as its address for such purpose, 300 East Main Street, Suite 1380, Norfolk, Virginia 23510. Copies of all default notices shall be sent to Charles W. Best,
III, Charles W. Best, III, P.C., 300 East Main Street, Suite 1400, Norfolk, Virginia 23510, but such notice shall not be required for notice to be valid. Any party may change its designated address at any time by giving notice of such change to the
other parties in the manner set forth in this paragraph. 
  
 13. Each covenant, term and condition of this Security
Agreement, the Obligations and the Security Instruments is severable and separate and distinct from every other covenant, term and condition. In the event that any state or federal judicial or governmental authority shall adjudge or determine that
any of the covenants, terms or conditions of this Security Agreement, the Obligations and the Security Instruments is invalid and unenforceable or contrary to any applicable state or federal laws or regulations, such adjudication or determination
shall affect only the specific covenant, term or condition adjudged or determined to be invalid and unenforceable or unlawful and shall not affect any of the remaining covenants, terms or conditions in this Security Agreement, the Obligations and
the Security Instruments and all such remaining covenants, terms and conditions shall continue in full force and effect. 
  
 14. The Debtor will indemnify and save the Secured Party harmless from all liabilities, losses, judgments, damages, expenses and costs of every kind and nature (including, without limitation, actual attorneys’ fees) relating to
any claims or demands of any person or entity other than the Debtor arising under or in connection with any acts or failures to act (excluding those constituting gross negligence or willful misconduct) of the Secured Party and/or
 

 
 9 

 
its officers, employees or agents authorized or permitted by the covenants, terms and conditions of this Security Agreement. Any liability, loss, damage, judgment, expense or cost incurred or
suffered by the Secured Party relating to any claim or demand of any person or entity other than the Debtor arising under or in connection with any acts or failures to act of the Secured Party pursuant to the covenants, terms and conditions of this
Security Agreement shall be part of the “Obligations” of the Debtor to the Secured Party, the payment of which shall be secured by this Security Agreement. 
  
 15. Time shall be of the essence with regard to the performance by the Debtor of each of its obligations, duties and liabilities to the Secured Party under this Security
Agreement, the Security Instruments, and the Obligations. 
  
 16. No alteration, modification, amendment or waiver of
any covenant, term or condition in this Security Agreement, the Obligations or the Security Instruments is or shall be valid, binding or enforceable unless such alteration, modification, amendment or waiver is in writing and has been signed by a
duly authorized officer or agent of the party against whom any such alteration, modification, amendment or waiver is to be enforced. 
  
 17. Acceptance by the Secured Party of partial or delinquent payments or failure to exercise any right, power or remedy shall not constitute a waiver of any Event of Default or of any such right, power or remedy or
constitute an amendment or modification of this Security Agreement. No waiver by the Secured Party of any Event of Default shall operate as a waiver of any other Event of Default or of the same Event of Default on a future occasion. The taking of
this Security Agreement shall not waive or impair any other security the Secured Party may have or hereafter acquire for the payment of any of the Obligations, and the taking of any additional security shall not waive or impair this Security
Agreement. The Secured Party may resort to any security it may have in the order it may deem proper, and notwithstanding any collateral security, the Secured Party shall retain its rights of offset and setoff against the Debtors. 

 
 18. The Secured Party, its successors and assigns, have all rights, powers and remedies as provided herein and as provided by
law, including those of a secured party under the Virginia Uniform Commercial Code, and may exercise the same, effect any setoff, and/or proceed against the Collateral or other security for the Debtor’s obligations at any time notwithstanding
any cessation of the Debtor’s liability under such Obligations for any reason other than payment in full, including, without limitation, the running of any applicable statutes of limitations, all of which the Debtor hereby waives to the fullest
extent permitted by law. 
  
 19. All rights of the Secured Party hereunder shall inure to the benefit of its
successors and assigns and all obligations, liabilities and duties of the Debtor shall bind their successors and assigns. 
  
 20. The term of this Security Agreement shall commence on the date hereof and shall terminate on the date when all of the Obligations have been irrevocably paid and fully satisfied or performed. 

 
 10 

  
 21. TO THE FULLEST EXTEND PERMITTED BY LAW, THE DEBTOR WAIVES TRIAL BY JURY IN
ANY ACTION OR PROCEEDING TO WHICH THE DEBTOR AND THE SECURED PARTY MAY BE PARTIES, ARISING OUT OF, IN CONNECTION WITH, OR IN ANY WAY PERTAINING TO THIS SECURITY AGREEMENT OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION WITH THIS SECURITY AGREEMENT.
It is agreed and understood that this waiver constitutes a waiver of trial by jury of all claims against all parties to such action or proceedings, including claims against parties who are not parties to this Security Agreement. This waiver is
knowingly, willingly and voluntarily made by the Debtor, and the Debtor represents that no representations of fact or opinion have been made by any individual to induce this waiver of trial by jury or to in any way modify or nullify its effect. The
Debtor further represents and warrants that it has been represented in the signing of this Security Agreement and in the making of this waiver by independent legal counsel, or has had the opportunity to be represented by independent legal counsel
selected of its own free will, and that it has had the opportunity to discuss this waiver with counsel. 
  
 [Signatures
Appear on the Next Page] 

 
 11 

  
 IN WITNESS, the Debtor and the Secured Party have duly executed this Security
Agreement as of the day and year first above written. 
  
 
	 DEBTOR:
 	 	 CONTRACTORS RESOURCES, INC.,
 
	 
	  	 	 By:                                     
                                        
                                        
  
 
	 
	  	 	 Name:                                    
                                        
                                     
 
	 
	  	 	 Title:                                    
                                        
                                       
 
 
	 
	  	 	 Date: September 23, 2002
 
	 
	 SECURED PARTY:
 	 	 WATERSIDE CAPITAL CORPORATION,
 
	 
	  	 	 By:                                     
                                        
                                        
  
 
	 
	  	 	 Name:                                    
                                        
                                     
 
	 
	  	 	 Title:                                    
                                        
                                       
 
 
	 
	  	 	 Date:
 

 

 
 12 

  
 SCHEDULE 3(1) 
  
 Additional Places of Business 
  
 (If none
listed, then Debtor represents to Secured Party that none exist.) 

 
 13 

  
 Schedule 3(a) 
  
 Existing Liens 
  
 Purchase Money Security Interests;
liens for taxes, assessments or governmental charges, and liens incident to construction, which are either not delinquent or are being contested in good faith by the Debtor by appropriate proceedings, which will prevent foreclosure of such liens;
liens or deposits in connection with workers’ compensation or other insurance or to secure customs’ duties, public or statutory obligations in lieu of surety, stay or appeal bonds, or to secure performance of contracts or bids, or deposits
required by law or governmental regulations or by any court order, decree, judgment or rule as condition to the transaction of business or the exercise of any right, privilege or license; or other liens or deposits of a like nature made in the
ordinary course of business; liens of suppliers, mechanics, carriers, materialmen, warehousemen or workmen, banker’s liens and other liens imposed by law created in the ordinary course of business for amounts not yet due or which are being
contested in good faith by appropriate proceedings; liens arising with respect to zoning restrictions, licenses, covenants, building restrictions and other similar charges or encumbrances on the use of real property of such Debtor which do not
materially interfere with the ordinary conduct of such Debtor’s business; any interest or title of a lessor under any lease permitted hereunder; any interest or title of any lessee under any leases or subleases of real property of any Debtor;
any licenses to customers in the ordinary course of business; any statutory or equitable claims, demands and interests of employees. Interests of the Institutional Lender described in Section 3 of the Security Agreement. 

 
 14

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