Document:

EX-10.1

This Agreement, made on April 24, 2008 and effective May 1, 2008, by and between United Parcel
Services OASIS Supply Corporation, a Delaware corporation, having its principal place of business
at 55 Glenlake Parkway, NE, Suite 200, Atlanta, Georgia 30328 on behalf of itself and its
subsidiaries and affiliates, (“UPS” or “Company”) and APAC Customer Service, Inc. on behalf of
itself and its subsidiaries and affiliates having its principal place of business at Six Parkway
North, Deerfield, IL 60015 (“APAC” or “Vendor”), is for inbound and outbound customer interaction
management services and services ancillary thereto. This Agreement hereby replaces that certain
agreement by the parties dated October 25, 2002 and effective October 28, 2002, which agreement has
terminated on its own terms and is hereby of no further force or effect.

WHEREAS, APAC is in the business of providing in-bound and outbound customer interaction management
services on behalf of its clients; and

WHEREAS, UPS is a company that offers its customers, among other things, parcel delivery services,
and

WHEREAS, UPS desires to retain APAC to perform services for inbound and outbound customer service
call center functions, customer service support and interaction management services on its behalf,
and APAC agrees to provide such services to UPS according to the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual provisions contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, UPS and APAC
hereby agree as follows:

Section 1 – Services

	A.	 	Services Description. During the Term (as hereinafter defined), APAC shall perform the
Services (as hereinafter defined) pursuant to the requirements set forth in this Agreement and
the Services Addendum set forth in Attachment A. For purposes of this Agreement, “Services”
shall mean (i) the receipt, handling and resolving of UPS-related customer service inquiries,
and related services to UPS Customers (“Customer Service Call(s)”, “Call(s)” or “Inquiries”)
by APAC employees functioning as customer service representatives, administrative support,
package information associates and claims associates (“CSR’s”) of telephone calls, e-mail and
other media initiated by third parties for the purpose of responding to UPS’s marketing of
certain services and/or products or otherwise communicating with UPS, each as further
described in Attachment A and (ii) any other services as mutually agreed upon by both
parties. The term “Services” shall also include the functions, responsibilities,
activities, tasks and projects not specifically described in the Agreement as a part of
Services which are required for the proper performance and provision of the Services or are an
inherent part of, or necessary subpart included within, the Services were displaced as a
result of the Agreement, even if not specifically described in the Agreement.

	B.	 	Performance Standards. The Services provided by APAC shall meet the performance standards
set forth in Attachment A. Attachment A shall be modified by UPS from time to time at UPS’s
reasonable discretion and upon notice to APAC.

	C.	 	Changes to Services. UPS may request APAC to change the Services being performed by APAC
under this Agreement and/or amend Attachment A due to changes in business needs.

	D.	 	Service Expansion. Upon UPS’s ninety day (90) notice to APAC, APAC shall expand the Services
to twenty four (24) hours a day, three hundred and sixty-five (365) days a year.

Section 2 – Responsibilities of the Parties

	A.	 	Services. APAC shall provide to UPS the Services in accordance with the terms, conditions
and charges set forth in this Agreement and its Attachment A, as may be amended, in accordance
with the terms and conditions stated herein.

	B.	 	APAC’s Employees.

	 	1.	 	In accordance with the terms and conditions set forth in this agreement, APAC
will provide its employees to perform the Services. APAC employees assigned to perform
the Services for UPS are solely the employees of APAC.

	 	2.	 	APAC shall be solely responsible for all personnel related matters and expenses
thereof regarding the provision of the Services, including but not limited to
recruiting, interviewing, conducting criminal background and employment reference
checks, testing, selecting, hiring, employing, directing, managing, training, monitoring
attendance, monitoring quantity and quality of work, and compensating all CSR’s, Team
Leaders, HR/Recruiters, Site Management and Administrative Personnel, except as
otherwise provided herein, necessary to perform the Services. APAC shall not make a job
offer to anyone applying with APAC unless a passing background check has been received.
UPS reserves the right to audit the selection process.

	 	3.	 	APAC shall have sole authority and responsibility to counsel, discipline, review,
evaluate, set the pay rates of, set the hours of work of, and terminate its employees
who perform the Services. UPS management will not counsel or discipline APAC employees.

	 	4.	 	APAC agrees to obtain from all of its employees assigned to UPS a signed
statement in the form of Attachment B, indicating that APAC’s employee understands that
he or she is not a UPS employee, and that if it is ever determined that he or she
actually was a UPS employee, he or she will disclaim all such benefits.

	 	5.	 	APAC agrees that it will comply with all other applicable federal, state, or
local laws or regulations applicable to APAC as an employer regarding compensation,
hours of work, or other conditions of employment.

	 	6.	 	APAC will arrange for and provide the training for CSRs. Training will include,
but may not be limited to, internal and outside classroom training, project and product
education, and “on the job” training. CSR’s will receive initial new hire training for
basic skills, including (i) APAC and UPS policies and procedures, (ii) training on
“Existing Core Programs “ (e.g. shipping, tracking, universal, international, billing,
package information, claims, damage exception group, customer service tracking agent,
retail, strategic customer associates international support group, internet), and (iii)
may, in addition, receive (a) refresher training to enhance a CSR’s performance, (b)
training for conversion from one Existing Core Program to another or to a different
program, (c) training for rate changes, (d) training for existing programs other than
Existing Core Programs, (e.g., international and internet), (e) training for new
programs to be introduced, (f) training for new program features, or (g) training for
new services.

	 	7.	 	In the event APAC proposes to have any Services under this Agreement performed by
personnel other than employees of APAC, APAC shall so notify UPS in advance. Any such
personnel shall be deemed subcontractors of APAC. APAC shall be fully and solely
responsible for the compensation of all of its employees and subcontractors and the
performance, acts and omissions of all of its employees and subcontractors and the
performance, acts and/or omissions of such employees and subcontractors shall be deemed,
as between APAC and UPS, the performance, acts and/or omissions of APAC. UPS reserves
the right to reject any and all subcontractors with respect to any or all Services
proposed to be conducted pursuant to this Agreement.

	 	8.	 	UPS may, in its discretion notify APAC to remove from performance of Services
under this Agreement any employee of APAC or its subcontractors or any subcontractor for
any reasonable and lawful reason satisfactory to UPS. Nothing in this provision shall be
deemed to give UPS the right to require APAC to hire or terminate any APAC employees or
in any way act in a manner inconsistent with APAC’s human resources policies and
procedures; it is intended only to give UPS the right to have APAC discontinue using an
employee in the performance of the Services.

	 	9.	 	APAC agrees to obtain from all of its employees assigned to UPS a signed
statement in the form of Attachment F, indicating that APAC’s employee understands that
he or she shall not engage in any of the activities identified in Attachment F.

	C.	 	Level of Staffing. APAC shall be solely responsible for staffing to the UPS required level
of CSR’s necessary to provide the Services as determined in accordance with the performance
standards set forth in Attachment A. Team Leader ratios, Advisor ratios,
administrative/clerical personnel, and management team requirements are also set forth in
Attachment A.

	D.	 	Monitoring. Without prior notice to APAC and to the extent permitted by law, UPS shall have
the right to monitor and record, on-site at the Centers and remotely outside the Centers,
APAC’s CSRs handling Calls and performing Services for UPS. UPS shall share the results of
its monitoring upon request by APAC. APAC agrees that it will secure from all employees
serving as CSRs under this Agreement written consent (in the form of Attachment E hereto) to
be monitored by APAC and UPS.

	E.	 	Reports and Documentation. APAC will provide UPS with reports and other documentation or
information as may be reasonably requested by UPS from time to time in order to verify that
APAC’s performance of the Services is in compliance with this Agreement. APAC and UPS will
conduct a semi- annual review of all reports and documentation to evaluate need.

	F.	 	Audits. APAC will permit UPS, at UPS’s expense, to audit any of APAC’s systems, documents,
processes, data, or reports related to the performance of this Agreement or payments due under
this Agreement. Such audits shall be held at a time and place during normal business hours.
Any information obtained by UPS pursuant to an audit shall be subject to UPS’s obligation to
keep such information confidential as more fully set forth in Section 11 hereto.

	G.	 	Periodic Assessment. UPS shall have the right to conduct reasonable periodic performance,
operational and quality control reviews of APAC’s performance of Services under this
Agreement, provided that UPS shall provide no direct supervision of APAC’s call centers or
APAC’s employees. Such reviews shall be performed during business hours and may include
visits to the Centers for verification of Service quality levels and other activities directly
related to obtaining information for quality control review purposes. UPS shall schedule such
reviews with APAC in advance.

	H.	 	Quarterly Review. At the option of UPS during each quarter of the Term of this Agreement,
representatives of APAC and UPS shall meet for review of the status of matters contemplated by
this Agreement, including but not limited to the service, performance, quality performance,
status of transition, enhancement to Services, attrition goals and quality improvement
processes. Each party shall bear its own costs and expenses incurred in connection with such
review.

	I.	 	Annual Review. Annually, in October, the parties will review the UPS requirements in this
Agreement and, if mutually agreed by the parties, such contractual items as may be appropriate
will be adjusted for future Services (to be implemented on or after the commencement of the
next calendar year) to reflect changes in circumstances, including without limitation
adjustments in wages, COLA adjustments, key metrics, Base Rate and other charges, CS, PI and
Claims assessments, quality scorecards (content and scoring) and other metrics and elements
that affect the UPS business and the Services.

	J.	 	Notice of Delay. In the event of an actual or potential delay in APAC’s performance under
this Agreement, APAC shall immediately notify the UPS Site Manager by either fax or telephone,
whichever is quicker, describing the cause, effect and expected duration of such delay or
failure and thereafter shall immediately give notice to the UPS Site Manager of all changes to
such conditions.

	K.	 	Forecasting. UPS will provide forecasting to APAC as detailed in Attachment A.

	L.	 	Information Necessary for the Performance of Services. UPS shall use its best efforts to
provide accurate and factual information as may be required by this Agreement, respond
promptly and accurately to all reasonable requests for such information made by APAC, and
provide relevant new data and regular updates of changes to data previously provided. APAC
will rely upon information provided by UPS in performing the Services and will not be
responsible for any delay or loss that arises due to the inaccuracy of UPS supplied data or
information.

	M.	 	Government Requirements. UPS shall obtain and maintain all licenses, franchises, privileges,
permits, consents, exemptions, certificates, registrations, orders, approvals, authorizations
and similar documents and instruments that are required by federal, state and local laws and
regulations applicable to call centers for Services provided under this Agreement.

Section 3 – Facilities and Equipment.

	A.	 	Centers. Except as expressly set forth herein, APAC shall perform the Services at the
following locations, now owned, or leased by UPS:

11008 Warwick Blvd. Newport News, VA 23601

111 U.S. Hwy. 301 South. Tampa, FL 33619

	B.	 	Acquisition and Security of the Centers.

	 	1.	 	UPS shall be solely responsible for and shall bear all costs and expenses with
regard to the acquisition and/or leasing of the Centers, the maintenance of the Centers’
structural components (including but not limited to foundation, walls, windows, parking
areas, roofs, conduit, HVAC, mechanical, plumbing and electrical systems), insurance for
the Centers, as provided herein, repair and maintenance of the Centers, including
maintenance of external grounds and parking, external lighting, obligations under the
Occupational Safety and Health Act (OSHA) and other similar laws applicable to the
provision, acquisition, leasing and maintenance of the Centers, and all employees of UPS
fulfilling UPS responsibilities as described herein. During the Term of this Agreement,
UPS covenants that the Centers shall be maintained and kept in good order, condition and
repair, conducive to the efficient performance by CSR’s of their duties.

	 	2.	 	Except to the extent of UPS’s obligations hereunder, APAC will be responsible for
safe-guarding the work area, providing a safe work environment, investigating security
breaches and taking all remedial steps regarding security breaches. APAC will be
responsible for providing all cameras and printing equipment necessary to create picture
identity cards and all supplies for access cards. APAC will also properly safeguard all
equipment and related materials, including UPS proprietary software, other UPS
Confidential or Proprietary Information and documents, other related systems, and/or
phone/communications lines. In the instance where equipment is owned by UPS, APAC will
ensure all equipment is inventoried and signed for by APAC’s authorized representative
upon installation and acceptance. At any time thereafter, APAC retains responsibility
and liability for any equipment that is removed, exchanged, or modified, until such time
as that equipment is signed for by an authorized UPS representative releasing APAC of
responsibility. APAC is required to maintain a current equipment inventory listing
subject to UPS audit at any time. APAC’s liability will include, but not be limited to,
the replacement cost of any missing equipment or materials and/or loss due to misuse or
unauthorized access or use of any materials, equipment, or systems.

At APAC’s sole cost and expense, shall utilize security guards in the Tampa facility
to monitor the facility and parking area in a manner sufficient to protect the
interests and assets of both APAC and UPS, including, without limitation, the
occupants of the facility. The security guards must be licensed and employees of a
licensed, reputable, bonded security company. Such security personnel must be present
at the Tampa facility during the hours Services are provided, unless otherwise
approved by UPS. APAC acknowledges and agrees that such security personnel shall be
deemed to be subcontractors of APAC and APAC shall at all times remain responsible for
the acts and/or omissions of such security personnel as if such acts and/or omissions
were the acts and/or omissions of APAC.

	C.	 	Equipment and Technology.

	 	1.	 	UPS shall provide all computer hardware, telecommunications equipment, computer
and telecommunications software, furniture and fixtures required in the efficient
performance of the Services. Except as otherwise provided herein, UPS shall be solely
responsible for and shall bear all costs and expenses with regard to the ownership,
leasing and maintenance of such hardware, software and equipment including, but not
limited to upgrades, enhancements and add-ons thereto. UPS shall provide APAC with
access to UPS’s systems applicable to the UPS programs being supported by APAC
hereunder.

	 	2.	 	UPS shall provide at its own cost, all telecommunications facilities, including
voice and data that are needed to conduct the day to day business of the operation as
described. UPS will provide, within reason, adequate floor or wall spaces for these
telecom facilities. APAC will be responsible for the cost of any telecom facilities
that it requires for its own internal use. The design and installation of any APAC voice
or data circuit that interconnect to any portion of the UPS voice or data network must
be pre-approved in writing by UPS.

	 	3.	 	APAC shall operate UPS equipment, software or proprietary software, only for the
performance of Services for UPS and as directed by UPS. APAC shall not upgrade, modify
or otherwise alter UPS equipment, UPS software or UPS proprietary software unless and
until UPS gives APAC such direction and permission. APAC shall utilize UPS equipment,
UPS software and UPS proprietary software. APAC agrees to make UPS whole for loss or
damage to UPS equipment, UPS Software or UPS proprietary software provided by UPS for
use in the Centers, to the extent such loss or damage results from negligence, a failure
to act, or willful misconduct of an APAC employee. In situations where UPS equipment has
been used by APAC personnel to commit fraud, (i.e. theft of merchandise, redirecting
packages, etc.) APAC will reimburse UPS both the cost of the loss of related material
and the cost of the investigation. Additional information concerning “fraud” is outlined
in Section 15

	 	4.	 	APAC shall utilize the applications systems currently utilized at the Centers and
provided by UPS as of the effective date of this Agreement, and shall, in conjunction
and cooperation with UPS, work to ensure a continuing smooth interface between the APAC
Centers and UPS’s other operations.

	 	5.	 	APAC will obtain UPS’s approval prior to implementing any third party software,
and related documentation, database management systems, data and technical information,
in the performance of the Services which APAC will not be able to license to UPS or its
designee upon termination of this Agreement as contemplated herein, unless APAC will be
able to provide UPS with an alternative that will permit UPS or its designee to continue
to perform the applicable systems and Services after termination of this Agreement
without degradation of performance levels or reduction in functionality.

	 	6.	 	APAC will provide personal computers and email access for APAC Center Management
and Administrative Personnel at the Centers.

	 	7.	 	APAC will be responsible for control, repair, and replacement of headsets and
amplifiers, as follows:

Prior to the effective date of this Agreement, UPS purchased the following number of
noise canceling headsets and amplifiers and provided them to APAC for its use as of
the date of execution hereof:

Newport News received 1100 headsets and 1100 amplifiers.

Tampa Received 853 headsets and 853 amplifiers.

Such headsets and amplifiers are provided by UPS on an “as-is” basis, and APAC accepts
all responsibility for maintenance, repair and replacement of this equipment. When
purchasing replacements for lost or damaged headsets and amplifiers, APAC will furnish
a model of comparable quality, features and compatibility to the UNEX Flexpro 200
headsets originally provided by UPS. APAC shall provide UPS with an inventory report
of headsets and amplifiers twice a year. APAC shall return the same number of headsets
and amplifiers to UPS in working and usable condition immediately upon the termination
of this Agreement for any reason as to each or both locations.

	 	8.	 	With respect to the Tampa Facility, APAC shall be responsible for providing and
maintaining copiers, printers and facsimile machines, and shall bear all risk of loss or
damage with respect to such equipment.

	 	9.	 	With respect to the Newport News facility, APAC shall be responsible for
providing and maintaining copiers and facsimile machines. UPS shall provide and maintain
Claims scanners. APAC shall provide and maintain printers for APAC management, APAC HR,
Training, Department Admins and any other APAC required support functions.

	D.	 	Supplies. APAC shall be responsible for and shall bear all expenses incurred in the
rendition of Services at the Center with respect to contracting for food services and
perishable supplies.

	 	1.	 	The term “Perishable Supplies” as used herein means any and all supplies that are
consumable in nature, including, but not limited, to:

	 	(a)	 	Office supplies including photocopy paper, facsimile paper, other
paper, toner, pens, pencils, markers, erasers, paper clips, staples, tape
calculators, etc.

	 	(b)	 	Cleaning supplies including toilet paper, hand towels, napkins,
sanitary napkins, soaps, cleaning compounds, polishing compounds, trash can
liners, etc.

	 	(c)	 	Food service including any and all items relating to contracted
food service provided at the Centers. APAC shall be responsible for the repair
of kitchen equipment used in conjunction with food service. APAC shall not make
alternations to any building without the approval of UPS. If UPS agrees to
kitchen construction, APAC is responsible for the cost, design and construction
of all kitchen alterations. All work and design shall comply with all applicable
codes, regulations and laws. APAC shall be responsible for all applicable
permits, if any are required. In the event, the relationship between UPS and
APAC is terminated and / or relationship between the food service and APAC is
terminated, it will be the option of UPS to have APAC return the kitchen to its
original condition, (e.g. the Kitchen wall in Tampa, Florida), at no cost to
UPS, or to keep all such kitchen alterations at no cost to UPS.

	 	2.	 	Kitchen Maintenance. APAC shall retain responsibility and liability for and shall
bear expenses incurred for kitchen maintenance and replacement of kitchen equipment.
Kitchen equipment includes but is not limited to appliances, sinks, salad bars and the
exhaust system for the stove/oven. Such equipment is provided by UPS on an “as-is”
basis, and APAC shall leave the equipment with UPS in working and usable condition upon
the termination of this Agreement for any reason as to each or both locations.

	 	3.	 	Trash and Waste Removal. APAC shall retain responsibility and liability for and
shall bear all expenses incurred in the rendition of Services at the Center with the
respect to the removal of all trash and hazardous waste.

	E.	 	Signs and Banners. APAC shall be entitled to erect exterior and interior signage and banners
solely in accordance with UPS’s prior written authorization, except that UPS hereby consents
to the posting of internal signage that is professional and business like.

Section 4 – Rates and Invoices

	A.	 	Rates for Services. The rates for the performance of the Services pursuant to this Agreement
shall be those listed in Attachment A.

	B.	 	Payment Terms. UPS and APAC agree that invoices for Services will be handled in the
following manner:

	 	1.	 	APAC will invoice UPS on a weekly basis for Services rendered during the
preceding week. The invoices will be delivered no later than Wednesday to the UPS Site
Manager. The invoices will include the applicable Base Rate for APAC personnel for each
Billable Hour expended.

The invoice shall be based on the actual APAC paid production hours as contemplated by the
Final Matrix and permitted changes to the Final Matrix. Hours billed to UPS from APAC may
vary from the Final Matrix for the following reasons:

	 	•	 	Overtime hours which UPS has approved in writing. Overtime
shall be paid by UPS, in accordance with the rates as provided in the
Agreement.

	 	•	 	UPS approved training hours.

	 	•	 	If UPS has requested that APAC increase staffing, APAC will
do everything possible to fill the request for additional FTEs with Part Time
or Full Time hours (”Expanded Hours”). Expanded Hours will be billed at the
Base Rate. Hours that APAC is unable to fill with Expanded Hours shall be
billed at the overtime rate. All overtime must be pre-approved in writing by
the UPS site manager or their designee.

	 	•	 	The following steps shall be used to develop “ Required” hours:

	 	•	 	The Final Matrix will be used to determine the final FTE
requirements. The Final Matrix will be provided by UPS four (4) weeks in
advance.

	 	•	 	Advisor’s hours will be billed as actual hours worked never
to exceed the agreed upon ratio of one coach per twelve (12) CSRs to UPS by
the following calculation: Divide the required FTE CSR approved in the Final
Matrix by 12 and multiply by eight. Example for calculation of the advisor’s
billable hours:

Total Required hours = 2,929

Total Required FTE’s = 391 {2,929/7.5}

Advisor Hours Billable = 391/12*8 = 260.67 hours

Advisors overtime hours must be pre-approved in writing by the UPS site manager or designee.
If the actual volume is less than expected, APAC will do all possible to reduce Advisor
staffing. However, UPS will be responsible for all hours worked up to the agreed ratio of
1:12 as planned in the Final Matrix.

	 	2.	 	Invoices submitted by APAC shall be due and payable within fifteen (15) days of
receipt of the invoice.

	 	3.	 	If UPS management has any questions or concerns regarding the accuracy of the
invoice, every effort will be made to resolve the issue(s) and make any adjustments
warranted within twenty-four (24) hours from the time UPS raises such questions or
concerns.

	 	4.	 	If any items remain in dispute after twenty (24) hours, the reason for the
dispute will be documented by UPS in writing and the undisputed amount will be processed
for payment in accordance with Section 4.B.2 above.

	 	5.	 	No subsequent week’s invoices will be delayed as a result of a dispute of a prior
week’s invoice.

	 	6.	 	APAC will make every effort to complete research on any disputed amounts as
expeditiously as possible, but no later than ten (10) days after the written explanation
of the dispute is received. After any APAC research is complete, any adjustments to an
invoice will be made on the subsequent week’s invoice to be presented to UPS.

	 	7.	 	The UPS Site Manager and APAC Site Management, or their designees will use their
best efforts to resolve all disputed amounts within fifteen (15) days of the invoice
date. Any disputes remaining after such fifteen (15) days will be escalated to the
parties’ senior management for resolution.

	C.	 	Costs and Expenses. Except as otherwise expressly provided in this Agreement and its
Attachment A, any and all costs and expenses incurred by APAC in its performance of the
Services shall not be reimbursed by UPS.

	D.	 	Set-Off Rights. With respect to any amount that: (1) should be reimbursed to UPS or (2) is
otherwise owed or payable to UPS pursuant to this Agreement, UPS may upon written notice to
APAC deduct the entire amount owed to UPS against the charges or amounts otherwise payable or
expenses owed to APAC under this Agreement.

	E.	 	Presently Unforeseen Events. In the event that during the term or additional term of the
Agreement, APAC’s costs for hourly employee rates are increased pursuant to a collective
bargaining agreement, UPS will not be responsible for any such increase and such increase will
not be passed on to UPS. In the event that any presently unforeseen event, circumstance or
condition or any combination thereof first occurring after the date of execution of this
Agreement (i.e., a dramatic increase in health care costs or a new employer near a Center
which attempts to attract APAC’s employees at higher wage rates) that (i) is not occasioned by
or resulting solely from the actions of APAC or any APAC employee; and (ii) is expected to
continue for a period exceeding six (6) months; and (iii) shall adversely increase the cost to
APAC of performing Services at a Center by more than five percent (5%) of its prior provable
costs (“Adverse Event”), APAC shall be entitled to request an adjustment to the Base Rates
set forth in Attachment A by written notice delivered to UPS at least sixty (60) days prior to
the proposed date of adjustment. To that end, APAC shall deliver with its request to UPS such
documentation, detailed records, pricing and financial information and other data as shall
verify the existence of such Adverse Event and APAC’s increased costs resulting therefrom;
provided, however, that such request shall in any event be subject to UPS’s right to audit
APAC’s submissions during the thirty (30) day period. In the event that UPS and APAC have not
agreed to adjusted Base Rates by the end of such thirty (30) day period, or such extension
thereof as may be mutually agreeable, then, notwithstanding anything in this Agreement to the
contrary, APAC may terminate its Services at such Center upon one hundred twenty (120) days
prior written notice which notice must be given no later than fifteen (15) days following such
thirty (30) day period (as may be extended).

Section 5 – Taxes

	A.	 	Taxes Payable by UPS. Any use, excise, sales or privilege taxes, duties, value added taxes,
fees, or assessments which may now or hereafter be levied on the Services, software,
equipment, materials or other property (tangible or intangible) provided under this Agreement,
chargeable to or against APAC (provided that APAC is not responsible for these charges through
its own omission(s) or negligence) by any applicable government authority, shall be passed
through to and payable by UPS. APAC shall clearly identify the charges referenced herein on
any invoice. Should APAC be required to pay or should APAC pay these taxes, fees, assessments
or similar liabilities, UPS shall promptly reimburse APAC for such payments upon receipt of an
invoice from APAC. UPS shall also timely pay all use, excise, sales or privilege taxes,
duties, value added taxes, fees, assessments or similar liabilities levied against it by any
governmental authority for its role in the leasing, ownership or operation of the Centers.
Taxes chargeable against the income of APAC shall be paid by APAC and are not a chargeable
item hereunder. APAC and UPS shall cooperate in the preparation and filing of any tax returns.
Any penalties or interest associated with the failure of APAC to timely collect or pay any
tax shall be the responsibility of APAC unless such failure was caused by UPS’s direction or
UPS’s failure to pay taxes to APAC in accordance with this section.

	B.	 	Employment-Related Taxes. APAC is responsible for the filing of any and all returns and
reports and the withholding and/or payment of all applicable federal, state, and local wage
taxes, or employment-related taxes, including, but not limited to, income taxes, gross receipt
taxes, taxes measured by gross income, social security taxes and unemployment taxes for APAC,
APAC’s employees, and any other agents or subcontractors employed by APAC to perform Services
under this Agreement. APAC shall reimburse UPS for any taxes not withheld or paid by APAC in
accord with this paragraph, including reasonable attorney’s fees, penalties and interest UPS
may incur due to APAC’s failure to make such withholdings or payments, and APAC shall
participate at APAC’s sole expense and at the request of UPS in UPS’s defense of all such
claims.

	C.	 	Contest of Tax Issues. In its sole discretion and at its own expense, UPS has the right,
either before or after payment of any tax, to contest the validity or application of taxes
described in Section 5.A.1 that are submitted by APAC to UPS for payment. Upon the written
request of UPS, APAC shall fully cooperate with UPS in contesting or protesting the validity
or application of any such tax (including, but not limited to, permitting UPS to proceed in
APAC’s name if required or permitted by law, provided, in each case, that such contest does
not involve, or can be separated from, the contest of any tax or issues unrelated to
transactions described in this Agreement). UPS shall also have the right to participate in
any contest conducted by APAC with respect to a tax or other charge indemnifiable under this
section, including without limitation, the right to attend conferences with the taxing
authority and the right to review submissions to the taxing authority or any court to the
extent such contest does not involve, or can be separated from, the contest of any tax or
issues unrelated to the transactions described in this Agreement. In the event APAC shall
receive a refund of all or any part of such tax which UPS has paid and discharged, the amount
of such refund shall promptly be remitted to UPS by APAC.

	D.	 	Tax Credits. UPS shall be entitled to the benefit of any jobs tax credit, enterprise zone
tax credit, capital investment tax credit, or any other similar type of tax credit earned
pursuant to this Agreement for the one (1) Center originally stated in Section 3.A. herein
that it chooses to actively pursue. In the event the federal, state, or local law allowing
for such tax credit provides that APAC is the recipient of such tax credit, APAC shall pass on
the tax credit benefit to UPS in the form of a reduction in the amount of APAC’s invoice.
Under this provision, APAC is deemed to receive the benefit of the tax credit on the earlier
of the due date of APAC’s return or estimated payment following the determination of a credit
amount. APAC’s next invoice will be reduced by the amount of the credit. In the event that
APAC discovers or pursues additional tax or related credits that UPS has not pursued, and is
or shall be successful in obtaining such credit, the Parties will discuss such credit or
potential credit, and will determine an appropriate split of credit revenues during the next
available quarterly or annual review. Tax credit computations and invoice reductions are
subject to verification by UPS.

Section 6 – Warranties

	A.	 	APAC warrants to UPS that (1) APAC shall use its best efforts to perform all Services in a
professional manner and in accordance with the Agreement and Attachments, or any other
applicable mutually agreed upon written specifications; and (2) APAC has or will have
agreements and/or acknowledgements in place with all employees and subcontractors sufficient
to enable APAC to comply with all provisions of this Agreement.

	B.	 	APAC further warrants that neither APAC proprietary software, nor that which it creates to
render Services hereunder, the Services, or the use thereof shall infringe any United States
copyright, patent, trademark or any other third party intellectual property rights, unless
such infringement is caused solely by the combination, modification, enhancement or alteration
by UPS or at UPS’s specific written instruction. In the event of an infringement claim, APAC
may, at its option and at its expense and without limiting APAC’s indemnity and defense
obligations in Section 7 below, (1) procure the right to continue using such software to
provide the Services; or (2) substitute for such hardware or software, other hardware or
software which performs the same functions without any loss of speed or functionality that
would otherwise cause either party’s non-compliance with this Agreement.

	C.	 	UPS warrants that neither UPS proprietary hardware or software it supplies to APAC to render
Services hereunder, nor any modifications, enhancements, alterations or combinations to third
party hardware or software UPS performs or performed, creates or created, or requires APAC to
perform or create upon written instructions, shall infringe upon any United States copyright,
patent, trademark or any other third party intellectual property rights unless such
infringement is caused solely by combination, modification, enhancement or alteration of such
hard or software by APAC without instruction from UPS. In the event of an infringement claim,
UPS may, at its option and at its expense, either (1) defend such claim with competent counsel
of its choosing; (2) procure the right to continue using such hardware or software to provide
the Services; or (3) substitute for such hardware or software, other hardware or software
which performs the same functions without any loss of speed or functionality that would
otherwise cause either party’s non-compliance with this Agreement.

	D.	 	This Section shall survive termination or expiration of this Agreement.

Section 7 – Indemnity

APAC agrees to indemnify, protect and hold UPS, its affiliates and subsidiaries and the directors,
officers and employees of each of them, harmless from and against any and all third party claims
threatened, asserted or filed against (including, but not limited to losses, judgments,
damages, suites, actions, settlements, expenses and reasonable attorneys’ fees) to the extent they
result from (i) the negligence or willful misconduct of APAC, including but not limited to third
party claims for injury or death to persons, including APAC employees, or damage to property or
business entities, (ii) claims that APAC’s product, including hardware, software or any combination
thereof, the Services, or the use thereof constitutes an infringement of a United States patent,
copyright, trade secret or other intellectual property right of any third party; and (iii)claims
brought against UPS by APAC’s employees for employment discrimination, workers ’ compensation, or
unemployment compensation. The indemnity set forth in this Section and the limitation of liability
set forth in the following Section hereof shall survive the expiration or termination of the Term
or Additional Term of this Agreement.

Section 8 – Limitation of Liability

Neither Party shall be liable to the other for special, exemplary, punitive, indirect, incidental
or consequential damages, including, without limitation, damages for lost opportunities or lost
profits, even if such damages were foreseeable or result from a breach of Agreement, except and
only to the extent attributable to a Party’s willful misconduct or gross negligence or with respect
to APAC’s indemnification obligations.

Section 9 – Insurance

	A.	 	APAC Maintained Insurance. APAC shall, at its own cost and expense, obtain and maintain in
full force and effect, with sound and reputable insurers, during the term of this Agreement,
the following insurance coverage: (a) Worker’s Compensation insurance as required by law of
the state of hire; (b) Employer’s Liability Insurance with minimum limits of $1,000,000 of
liability, and not less than $1,000,000 aggregate limit of liability per policy year for
disease, including resulting death, not caused by accident; (c) A combination of Commercial
General Liability and Umbrella Policy Insurance against all hazards with a minimum limit of
liability for personal injury, including resulting death, on an occurrence basis of
$10,000,000 in the aggregate, and with a minimum limit of liability for property damage on an
occurrence basis of $10,000,000 in the aggregate; (d) A combination of Umbrella Policy
Insurance and Automobile Liability Insurance against liability arising from the maintenance or
use of all owned, non-owned and hired automobiles and trucks with a minimum limit of liability
for property damage of $5,000,000 per accident; (e) Fire Legal Liability Insurance of
$1,000,000 and (f) Crime Insurance, including at a minimum fidelity coverage, employee
dishonesty, robbery, theft, forgery, computer theft and fraud covered with a minimum of
$5,000,000 per loss. If not already provided, APAC shall provide UPS with certificates of
insurance evidencing the coverage required hereunder within ten (10) days after execution of
this Agreement. Each policy required hereunder shall name UPS, its affiliates, directors,
officers and employees as additional insured and shall provide that APAC shall endeavor to
provide UPS with thirty (30) days’ advance written notice in the event of a cancellation or
material change in such policy. In the event that any Service under this Agreement is to be
rendered by persons other than APAC’s employees, APAC’s insurance shall cover such persons
under the same terms and conditions.

	B.	 	UPS Insurance. UPS shall maintain insurance in such amounts as may be commercially adequate
for all property damage and personal injury losses as may relate to UPS’s ownership, leasing,
operation and maintenance of the Centers. If not already provided, UPS shall provide APAC
with certificates of insurance evidencing the coverage required hereunder within ten (10) days
after execution of this Agreement. Each policy required hereunder shall name APAC as an
additional insured and shall provide that APAC shall receive thirty (30) days’ advance written
notice in the event of a cancellation or material change in such policy. In the event that
any UPS obligation under this Agreement is to be rendered by persons other than UPS employees
(excluding all APAC employees), UPS’s insurance shall cover such persons under the same terms
and conditions.

Section 10 – Force Majeure

	A.	 	Occurrence of Force Majeure. If either party to this Agreement shall be prevented, hindered,
or delayed in the performance or observance of any of its obligations hereunder by reason of
any circumstance defined in this Section 10.A., and such delay could not have been prevented
by reasonable precautions and cannot reasonably be circumvented by the party through the use
of alternate sources, work-around plans, or other means, then such party shall be excused from
any further performance or observance of the obligation(s) so affected for as long as such
circumstances prevail and such party continues to use its best efforts to recommence
performance or observance whenever and to whatever extent possible without delay. APAC as the
affected party shall not have the right to any additional payments from UPS as a result of any
Force Majeure occurrence, nor shall UPS as the affected party have the right to any additional
material Services from APAC not encompassed by this Agreement. Neither Party shall be liable
to the other for failure or delay in rendering performance arising out of the following
causes: Acts of God or the public enemy, terrorism, strikes, wars, fires, floods epidemics,
quarantine, restrictions, or unusually severe weather and similar events beyond the control of
such party (an occurrence of a “Force Majeure”).

	B.	 	Process and Procedure for a Force Majeure. Upon the occurrence of a Force Majeure, the
affected party shall immediately notify the other by telephone and confirm in writing within
forty-eight (48) hours of such call describing with specificity the details of such occurrence
and its expected effect on the obligations of the affected party hereunder. If APAC is the
affected party and UPS is thus prevented from conducting a significant portion of UPS’s normal
business operations at the Center for five (5) business days after notification, despite the
parties’ best efforts, then, at any time thereafter and until such time as APAC is able to
resume or so arrange for acceptable alternative performance, UPS may suspend this Agreement at
the Center and seek alternative performance until such time as APAC is able to continue. Any
such suspension by UPS shall be without credit or termination charges and shall be effective
as of a date specified by UPS in a written notice of suspension to APAC. If either party is
unable to perform at the Center under this Agreement due to force majeure cases for a period
of sixty (60) days then the other party may terminate this Agreement in whole or in part as to
the Center and such termination shall be considered for the convenience and benefit of both
parties.

Section 11 — Confidentiality/Proprietary Information.

	A.	 	Confidentiality Agreements. Prior to performing Services on behalf of UPS, APAC and each
APAC employee assigned to perform work under this Agreement shall read, understand, adhere to,
and sign an APAC Customer Services, Inc. Employee Nondisclosure Agreement attached as
Attachment “D” and an APAC Customer Services, Inc. Employee Statement of
Understanding/Confidentiality attached as Attachment “E.”

	B.	 	Agreement to Keep Information Confidential. The Parties agree that any and all confidential
information and/or proprietary information relating to past, present and future activities,
products, services, business plans, business practices designated as confidential, or
information that by its nature is presumed to be confidential (“Confidential Information”)
(including UPS Customer lists, UPS card numbers, UPS Customer names, addresses and billing
data, call detail and/or financial information, information relating to UPS Customers or UPS
Customer account information, and/or databases, as well as other material specifically
designated by UPS in writing as confidential or proprietary) (collectively “UPS Confidential
or Proprietary Information”)) furnished or disclosed in the course of this Agreement, or
disclosed during the effective period(s) of other Nondisclosure Agreement(s) in effect between
the Parties, shall be and remain UPS or APAC property, as the case may be. During the term of
this Agreement and for two (2) years thereafter, both Parties agree not to reveal, disclose,
divulge, sell, license, exchange, lease or in any other way transfer the other Party’s
Confidential Information to any third party. Neither Party shall use the other Party’s
Confidential Information for any purposes other than the Services to be performed hereunder
without prior express written permission of the other Party and shall limit its copying of
such Confidential Information to such purposes and shall not disclose any such Confidential
Information to anyone except its personnel to whom such disclosure is necessary to carry out
the purposes of this Agreement. All such personnel shall be appropriately notified that any
such disclosure to them is made in confidence and shall be held in confidence. In the event
any such Confidential Information must be disclosed by a Party to a third person for the
purpose of allowing the Party to provide the Services hereunder, the Party shall, prior to
disclosure, obtain the other Party’s written permission and if permission is granted, shall
obtain from the third person a written agreement regarding the confidentiality and specific
use of the Confidential Information, the terms of which shall be substantially identical to
those contained herein. Either Party shall forward a copy of such third person’s nondisclosure
agreement to the other Party upon written request.

	 	 	C.

1

Non-Confidential Information. The provisions of Paragraph 11.A. above shall not apply to
information that was previously known to the other Party, free of any obligation to keep it
confidential as evidenced by written records, or information that is or has been disclosed in
the public domain, through no fault of the other Party, by third persons who are under no
obligation of confidence to either UPS or APAC, or information independently developed by the
other Party or obtained by a third party. Any combination of Confidential Information
disclosed from UPS to APAC or APAC to UPS, shall not be deemed to be within the foregoing
exceptions merely because individual portions of such combinations are disclosed or
separately known in the public domain or known by the other Party. Either Party may disclose
Confidential Information if obligated by Court order or governmental process after providing
the other Party with prior notice that Confidential Information is being sought by legal
process.

	D.	 	Injunctive Relief. Both Parties acknowledge that the Confidential Information under this
Agreement constitutes unique, valuable and special trade secret and business information of
the respective Parties, and that disclosure of such Confidential Information may cause
irreparable injury to UPS or APAC as the case may be. Accordingly, the Parties acknowledge
and agree that the remedy at law for any breach of the covenants contained in Paragraph 11.A.
of this Agreement may be inadequate, and in recognition, agree that the other Party shall, in
addition, be entitled to seek injunctive relief and reasonable attorneys’ fees and other court
costs and expenses, in the event of a breach.

	E.	 	Disclosures Required By Law. Either Party may file copies of this Agreement with a court or
public agency, to the extent necessary to comply with applicable law or regulation, including,
without limitation, to comply with mandatory filing under the rules and regulations of the
Securities and Exchange Commission and to the extent necessary in connection with review by
lending institutions, subject to appropriate confidentiality restrictions and subject to
Section 13. The filing Party shall promptly notify the other Party of such requirement.

Section 12 – Miscellaneous Confidentiality Requirements

	A.	 	Until the expiration or termination date of this Agreement, except as permitted by this
Section 12.A, APAC will not engage in the performance of services similar to the Services on
behalf of any parcel delivery company that is not, as of the execution hereof, a current
client or as to which APAC has a bid currently pending as of the execution date hereof,
including but not limited to Federal Express, DHL or the United States Postal Service, unless
it can be demonstrated to UPS that in UPS’s reasonable judgment upon review of the evidence
presented by APAC, acting in good faith, that there is no reasonable probability that UPS
Confidential or Proprietary Information can be used to benefit its competitors, in which case
UPS shall provide its consent to such transaction. With respect to any bid currently pending
or any services as to which UPS otherwise agrees that APAC’s opportunity meets the standard
set forth herein, APAC will enforce the Confidentiality and “Firewall” terms set forth in
Attachment “B”, as appropriately modified to fit the specific opportunity being addressed.
With respect to UPS, APAC will enforce the Confidentiality and “Firewall” Terms set forth in
Attachment “B”.

	B.	 	Unless the written consent of UPS shall first be obtained, or unless otherwise required by
applicable securities laws, at which time, APAC shall use its best efforts to provide UPS with
an opportunity to review and provide comment on disclosures required by applicable securities
laws, as determined by APAC as such disclosures pertain to UPS, APAC shall not at any time,
notwithstanding the expiration of the term or the termination of this Agreement, in any manner
advertise or publish or release for publication any statement mentioning UPS or the fact that
APAC is furnishing or has furnished or agreed to furnish Services to UPS. The provisions of
this Section 12.B. shall survive the termination or expiration of this Agreement.

Section 13 — Laws and Regulations

	A.	 	Compliance with Law. Each of the Parties will perform its obligations under this Agreement
in compliance with all applicable laws, ordinances and regulations and will obtain and
maintain in full force and effect, any permits, licenses, consents, approvals and
authorizations necessary for the performance of its obligations hereunder.

	B.	 	APAC Requirements. Except as may be otherwise provided in this Agreement, APAC agrees that
it will comply with all laws and regulations applicable to APAC’s employees and telemarketing,
including but not limited to the Fair Labor Standards Act, Title VII of the Civil Rights Act
of 1964, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the
Immigration Reform and Control Act of 1986, the Americans with Disabilities Act of 1990, the
Occupational Safety and Health Act (OSHA), the affirmative action responsibilities to comply
with the office of Federal Contract Compliance Program (OFCCP) Guidelines and such other
federal, state, and local employment laws which may be enacted during the Term of this
Agreement and/or are in effect or hereinafter enacted dealing with APAC’s workforce. In
performing Services and without limiting the generality of the foregoing, APAC shall also
comply with any and all rules and regulations promulgated pursuant to the Telemarketing and
Consumer Fraud Prevention Act of 1994.

	C.	 	Subcontract Flowdown. APAC agrees to comply with the following Federal Acquisition
Regulation (FAR) clauses, to the extent that they are applicable, which are incorporated in
this Agreement by reference to implement provisions of United States laws or Executive Orders.

	 	1.	 	FAR clauses applicable to all contracts:

	 	(1)	 	48 C.F.R. § 52.222-26, Equal Opportunity (E.O. 11246);

	 	(2)	 	48 C.F.R. § 52.222-35, Affirmative Action for Disabled and
Vietnam Era Veterans (38 U.S.C. § 4212(a)); and

	 	(3)	 	48 C.F.R. § 52.222-36, Affirmative Action for Workers with
Disabilities (29 U.S.C. § 793).

	 	2.	 	Not withstanding any other clause of this Agreement, APAC is not required to
include any FAR provision or clause, other than those listed in (a) above, to the extent
they are applicable (and as may be required by an addenda to this paragraph to establish
the reasonableness of prices under FAR Part 15), in a subcontract at any tier for
commercial items or commercial components. Commercial item, as used in this clause, has
the meaning contained in the clause at 48 C.F.R. § 52.202-1, Definitions.

	 	3.	 	FAR clauses applicable to certain contracts as specified in each clause:

	 	(1)	 	48 C.F.R. § 52.203-6, Restrictions on Subcontractor Sales to the
Government, as amended by Alternate I (41 U.S.C. § 253(g) and 10 U.S.C. § 2402);

	 	(2)	 	48 C.F.R. § 52.219-8, Utilization of Small Business Concerns and
Small Disadvantaged Business Concerns (15 U.S.C. § 637(d)(2) and (3));

	 	(3)	 	48 C.F.R. § 52.219-9, Small Business Subcontracting Plan (15
U.S.C. § 637(d)(4));

	 	(4)	 	48 C.F.R. § 52.222-37, Employment Reports on Disabled Veterans
and Veterans of the Vietnam Era (38 U.S.C. § 4212); and

	 	(5)	 	48 C.F.R. § 52.222-41, Service Contract Act of 1965, as Amended
(41 U.S.C. § 351, et seq.).

	 	4.	 	APAC shall include the terms of this clause, including this Section 13.C, in
subcontracts awarded under this Agreement, except as specifically set forth in Section
13(C)(2).

	D.	 	UPS Requirements. UPS will be responsible for the cost of implementing all necessary
Americans With Disabilities Act (ADA) reasonable accommodations to facilities. Regarding
equipment, UPS will be responsible for providing all equipment necessary to comply with the
ADA up to an aggregate value of five thousand dollars ($5,000.00) per Center.

Section 14 – Property and Proprietary Rights 

	A.	 	Ownership of Data. As between APAC and UPS, UPS will own exclusively all data collected as a
direct result of the performance of Services under this Agreement. APAC will keep such data
confidential pursuant to the confidentiality provisions of this Agreement. APAC will maintain
safeguards against the destruction, loss or alteration of UPS data in the possession of APAC
that are no less rigorous than those maintained by APAC for its own information of a similar
nature.

	B.	 	Limited Use of Marks. Neither Party shall have any rights in and to the other Party’s
trademarks, service marks or tradenames (collectively the “Marks”) and neither Party may use
such Marks without the prior written consent of the other Party, which consent may be withheld
for any reason.

	C.	 	Miscellaneous Intellectual Property Rights. Each Party will retain all rights in any
software, ideas, concepts, know-how, processes, development tools, techniques or any other
proprietary material or information that it owned or developed prior to the date of this
Agreement, or acquired or developed after the date of this Agreement without use or
incorporation of the intellectual property of the other Party. Subject to any third party
rights or restrictions and the other provisions of this Section 14, UPS will own any
deliverables that are specified in the Agreement and/or its Attachment A that (i) are custom
developed specifically for UPS and delivered by APAC under this Agreement and (ii) are paid
for by UPS. Notwithstanding anything to the contrary in this Agreement, APAC (a) will retain
all right, title and interest in and to all proprietary systems and solutions (however
modified for use for the Project), software development tools, know-how, methodologies,
processes, technologies or algorithms used in performing the Services which are based on trade
secrets or proprietary information of APAC or are otherwise owned or licensed by APAC
(collectively, “tools”), (b) subject to its confidentiality and non-infringement obligations
under this Agreement, and insofar as APAC is in the business of creating innovations in its
industry, will be free to use any ideas, concepts, know-how and other intangible intellectual
property which are developed or created in the course of performing the Services and may be
retained by APAC’s employees in intangible form and (c) will retain ownership of any
APAC-owned software or tools that are used in producing any deliverables and become embedded
in such deliverables. Nothing will impair APAC’s ability to acquire, license, market,
distribute for itself or others or have others develop for it similar deliverables performing
the same or similar functions as the deliverables contemplated by this Agreement and/or its
Attachment A.

Section 15 — Fraud Procedures.

	A.	 	APAC Requirements. APAC shall use reasonable efforts to take the following measures to help
minimize fraud:

	 	1.	 	Destroy all CSR notes used at the Centers periodically as directed by UPS;

	 	2.	 	Give UPS reasonable and appropriate assistance in the investigation of fraud by
an APAC employee and bear the investigation, restitution, and recovery costs involved in
any proven cases of fraud;

	 	3.	 	APAC is responsible for reviewing and obtaining a signed Integrity form (See
Attachment C) from each employee;

	 	4.	 	Make reasonable efforts to establish and implement a standard operating procedure
for maintaining a paperless environment absent exigent circumstances; and

	 	5.	 	Establish and implement a standard operating procedure to control the recordation
of customer authorization codes in any media except as jointly agreed upon by UPS and
APAC to support the delivery of Services and absent exigent circumstances.

	B.	 	Periodic Reviews. APAC shall allow UPS to make periodic reviews of APAC’s fraud procedures,
as such procedures relate to fraud control hereunder.

Section 16 — Events of Default 

	A.	 	Failure to Pay Amounts When Due. Subject to the notice and cure provisions provided in this
clause, UPS’s failure to pay undisputed amounts when due under the terms and conditions of
this Agreement shall constitute an “Event of Default.” In the event that UPS fails to make
any payment which constitutes an Event of Default, APAC shall give UPS written notice thereof.
UPS shall then have fifteen (15) days to cure such breach.

	B.	 	Failure of a Party to Perform Its Material Obligations. Subject to the notice and cure
provisions provided herein, a Party’s failure to perform any material obligation under the
Agreement shall constitute an Event of Default. In the event that a Party has failed to
perform any of its material obligations under the Agreement and has failed to remedy the same
following thirty (30) days after receipt of written notice thereof; the nonbreaching party may
terminate immediately; provided that, if such default cannot practicably be cured within such
thirty (30)-day period and is susceptible to a cure, then the defaulting Party will not be
considered in default if it commences to cure within the initial thirty (30)-day period and in
good faith diligently and continuously proceeds to cure the default.

	C.	 	Bankruptcy and Similar Proceedings. The commencement of any involuntary proceeding in
bankruptcy or insolvency under federal or state law or the appointment of a receiver or an
assignee for the benefit of creditors for a substantial portion of a Party’s assets which is
not dismissed or terminated within ninety (90) days after its initiation; or the commencement
of any voluntary proceeding in bankruptcy or insolvency under federal or state law shall be an
Event of Default.

Section 17 – Term and Termination

	A.	 	Term of Agreement. The initial term of this Agreement will commence upon the Effective Date,
May 1, 2008, and will continue until April 30, 2013 (the “Term”) unless terminated earlier
pursuant to the provisions of this Agreement. Thereafter, this Agreement will be renewed for
additional one year terms unless one Party gives the other Party at least one hundred eighty
(180) days written notice of intention to terminate prior to the end of the current term.

	B.	 	Termination Upon Event of Default. If either Party’s actions constitute an Event of Default
within the meaning of Section 16, then the other Party may, by giving written notice of such
default to such Party, terminate this Agreement as of the date specified in such Event of
Default notice of termination.

	C.	 	Termination by UPS. UPS may terminate this Agreement in whole, or in part with respect to a
Center, with or without cause by giving APAC written notice at least one hundred and eighty
(180) days prior the effective termination date subject to the following provisions:

	 	(a)	 	New employees would be impacted immediately upon notification and
all new hiring stopped. Ramp down could be accomplished in sections,
workgroups, etc. or on a non-categorical basis. For example, CS ramped down in
sections by workgroups, i.e. Email, Tracking, Universal, etc.

	 	(b)	 	In no event shall any ramp-down violate any state or federal
employment laws or cause the payment of any state or federally mandated
penalties relating to the termination of APAC personnel (e.g., WARN Act ).

	 	(c)	 	APAC acknowledges and agrees that this may necessitate the need
to have two vendors working together in same site as one-vendor ramps
down and another ramp up.

	 	(d)	 	In addition, in the event of a Termination for any reason APAC
agrees to pay UPS or its designee an amount equal to all the following
Entitlements (defined as vacation, sick, optional days and holiday pay) for all
CSR’s employed in the Newport News, Virginia and Tampa, Florida centers who have
been terminated by APAC on the date of Termination and who have been hired on
the date of Termination by UPS or its designee. For purposes of this agreement
accrual is defined in the examples that follow:

	 	•	 	Example 1: Employee A begins employment on October 4th
of current year, they will have accrued 11/12 of their vacation,
optional, sick, and holiday entitlement by September of the next year,
i.e., if the vacation earned after 1 year would have been 2 weeks then the
accrual would be defined as 11/12 of 2 weeks vacation.

	 	•	 	Example 2: Employee B has been employed for 4 years and 10
months when vendors change. Therefore, employee B has accrued 10/12 of
their vacation that they would be eligible upon their 5th year
of employment, i.e. 10/12 of 3 weeks vacation (15 paid days) or 12 accrued
days of vacation.

	D.	 	Termination by APAC. APAC may terminate this Agreement as to any single Center, but not all
of the Centers concurrently, by giving UPS written notice at least twelve (12) months written
notice prior the effective termination date subject to the following provisions:

APAC will provide the Services pursuant to the terms provided in this Agreement through the
end of the notice period. UPS agrees to provide to APAC, prior the last six (6) months of the
notice period, a ramp-down plan to be executed during the remaining six (6) months that
enables UPS to effectively transition volumes and the Services prior to the end of the notice
period and avoids the imposition of employment-related WARN Act and similar penalties.

	E.	 	Termination for Changed Laws. Either party shall have the right to terminate this Agreement,
without liability to the other, in the event of judicial, regulatory or legislative change
rendering performance of this Agreement impossible or illegal. Each party shall provide the
other with written notice of such termination as promptly as possible, but in no event less
than sixty (60) days prior to the termination date; provided that in such event, the parties
will use best efforts, within the parameters of the applicable laws, to conform to the
termination ramp-down provisions in 20.A.1 above.

Section 18– Post-Termination

	A.	 	Termination Assistance. Commencing upon any notice of termination by either party pursuant
to above Sections hereof or upon expiration of this Agreement, APAC will provide to UPS or its
designee any and all termination assistance reasonably requested by UPS to allow the Services
to continue without interruption or adverse effect and to facilitate the orderly transfer of
responsibility for the Services to UPS or its designee (“Termination Assistance”). APAC and
UPS shall work together to develop any and all transition plans, which may include ramp-downs
by work group or sections. Should termination be initiated by APAC, UPS acknowledges and
agrees that APAC’s requirement to provide Termination Assistance will be contingent upon UPS’s
payment for Services and for Termination Assistance prior to and during the transition period.
If and to the extent that such assistance is provided prior to the termination date, APAC
will provide termination assistance at the then current applicable Base Rate. If and to the
extent that such assistance is provided after the termination date or otherwise requires
resources in addition to those resources then being regularly utilized in the performance of
the Services, UPS will pay APAC for such assistance on a time and materials basis at
negotiated rates therefore or on any other mutually acceptable basis. The Termination
Assistance to be provided to UPS by APAC shall include, without limitation, the following:

	 	1.	 	Continuing to perform, for a reasonable period following the termination date not
to exceed six (6) months without the mutual agreement of the parties, any or all of the
Services then being performed by APAC.

	 	2.	 	Developing, with the assistance of UPS, a plan for the transition of operations
from APAC to UPS or its designee.

	 	3.	 	Providing training for personnel of UPS and its designee in the performance of
the operations then being transitioned to UPS or its designee.

	 	4.	 	Entering into licensing arrangements with UPS or its designee, for any
application software and processes (including all updates, enhancements, improvements
and modifications thereto) then being utilized by APAC in performing the Services,
together with such other operating software as is necessary to operate such application
software and related documentation, data base management systems, date and technical
information. Any license granted to UPS pursuant to this Section, at a minimum, (i)
will contain terms and conditions that are reasonably satisfactory to APAC: (ii) will
contain license fees agreed upon as reasonable by a mutually selected third party under
confidentiality restrictions reasonably satisfactory to APAC; (iii) will provide to UPS
the right to use the software to process UPS’s own internal work (including work
required to support the provision of this CSR product and services to outsource
companies); and (iv) will give UPS the right to sublicense to third parties for the
performance thereof so long as each third party having access to the software provides
to APAC written assurances in a form and substance reasonably satisfactory to APAC, that
such third party will maintain at all times the confidentiality of the software and will
not use the software for any purpose other than the limited purpose of processing the
internal work of UPS. Notwithstanding anything herein to the contrary, APAC will be
excused from granting the above-described licenses to UPS in the event that APAC
terminates this Agreement for cause as provided herein.

	 	5.	 	Making available to UPS or its designee, pursuant to mutually acceptable terms
and conditions, any equipment owned or leased by APAC that APAC is required to provide
under this Agreement. UPS or its designee may purchase any such equipment owned by APAC
at APAC’s then current book value and may assume APAC’s rights and obligations with
respect to any such equipment leased by APAC, but in no event less than any remaining
outstanding loan on the equipment.

	 	6.	 	Making available to UPS or its designee, pursuant to mutually acceptable terms
and conditions, any third party services then being utilized by APAC in the performance
of the Services.

	B.	 	Post-Termination Confidentiality Assurances. Prior to providing any of the foregoing
termination assistance to UPS or its designee, APAC shall be entitled to receive from any
designee of UPS, in form and substance reasonably acceptable to APAC, written assurances that
(i) such designee will maintain at all times the confidentiality of any APAC proprietary
information, software or materials disclosed or provided to, or learned by such designee in
connection therewith, and (ii) such designee will use such information, software or materials
exclusively for purposes for which UPS is authorized to use such information, software or
materials pursuant to this Agreement. This provision shall survive termination or expiration
of this Agreement.

	C.	 	Post-Termination Invoice and Payment. Upon receipt of a notice of termination specified in
Section 17, APAC shall submit to UPS APAC’s invoice for amounts due in accordance with Section
4 hereof within two (2) months of the effective date of termination. Failure to submit such
an invoice within the time allowed shall relieve UPS from paying any amount beyond that which
UPS may verify from its records as due and payable and such determination shall be final.
Payments of all amounts due shall be effected in accordance with Section 4.

Section 19 — Notices

All notices or requests required to be given under this Agreement and all other communications
related to this Agreement shall be in writing and shall be deemed to have been duly given when
personally delivered or sent by UPS Next Day Air Letter, addressed as follows: If to UPS, United
Parcel Service, 35 Glenlake Parkway, NE, Suite 200 Atlanta, Georgia 30328, Attention: Betty Schmitz
and Larry Darrow with a copy to: United Parcel Service, 55 Glenlake Pkwy NE, Atlanta, Georgia 30328
Attn: Legal Dept. and if to APAC, APAC Customer Service, Six Parkway North, Deerfield, IL 60015
Attention: Dave LaBonte, General Manager UPS, with a copy addressed to the attention of General
Counsel. Either party may change its address, or the name or title of the individual to whom
notices shall be directed by written notice issued and delivered as set forth above.

Section 20 – General Provisions

	A.	 	Entire Agreement. This Agreement sets forth the entire understanding of the parties hereto
and supersedes all prior oral and written agreements between the parties relative to the
subject matter hereof and merges all prior and contemporaneous discussions between them.
Neither party shall be bound by any condition, representation, warranty, covenant or provision
other than as expressly stated in or contemplated by this Agreement unless hereafter set forth
in a written instrument executed by such party. The parties to this Agreement may, by mutual
written consent executed by them, amend, modify or supplement this Agreement.

	B.	 	No Waiver. The terms, covenants, representations and warranties of this Agreement may be
waived only by a written instrument executed by the party waiving compliance. The failure of
either party at any time to require performance of any provision hereof shall, in no manner,
affect the right at a later date to enforce the same. No waiver by either party of any breach
of any term, covenant, representation or warranty contained in this Agreement, whether by
conduct or otherwise, in any one or more instances, shall be deemed to be or construed as a
further or continuing waiver of any such breach or the breach of any other term, covenant,
representation or warranty of this Agreement.

	C.	 	Assignment. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. The duties and obligations under this
Agreement may not be assigned or delegated by either party without the written consent thereto
of the other party, except that UPS may assign this Agreement to one of its Affiliated
Companies. APAC may not assign any of its rights or delegate any of its duties pursuant to
this Agreement without the prior written consent of UPS and any attempted assignment without
such consent shall be void. Any assignment in contradiction of this clause shall be void.

	D.	 	Severability. In the event that any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provision of this
Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. Further, in the event that any provision of this
Agreement shall be held to be invalid, illegal or unenforceable by virtue of its scope or
period of time, but may be made enforceable by a limitation thereof, such provision shall be
deemed to be amended to the minimum extent necessary to render it valid, legal and
enforceable.

	E.	 	Survival. Any terms hereunder that, by their very nature, would survive the termination or
expiration of this Agreement shall so survive.

	F.	 	Controlling Law. This Agreement shall be construed in accordance with the laws of the State
of Georgia.

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

	 	 	 	 	 
	APAC CUSTOMER SERVICES, INC.	 	UNITED PARCEL SERVICE
	 	 	OASIS SUPPLY CORPORATION
	By:/s/ Michael P. Marrow

	 	 	 	By:/s/ Lawrence Darrow     
	 

	 	 	 	 
	Its: President and CEO

	 	Its:
	 	Vice President and General Manager
	 

	 	 	 	 

2SEVERANCE AGREEMENT AND MUTUAL RELEASE

EXHIBIT 10.1

AGREEMENT AND RELEASE

This Agreement and Release ("Agreement") is made by and between GigaBeam Corporation (the "Company") and Louis S. Slaughter ("Director") as of April 25, 2008 (the “Effective Date”).

BACKGROUND

        

WHEREAS, Director was employed by the Company as its Chief Executive Officer, pursuant to the terms of an Employment Agreement, dated July 12, 2004, which expired in October 2007;

WHEREAS, Director also served as the Company’s Treasurer and Assistant Secretary;

WHEREAS, Director continued to serve as the Company’s Chief Executive Officer, Treasurer and Assistant Secretary after the expiration of his Employment Agreement without a written agreement governing this employment arrangement through November 28, 2007;

WHEREAS, Director currently serves as a director on the Company’s Board of Directors (the “Board”);

WHEREAS, Director wishes to now resign from his position as a director of the Company’s Board; and

WHEREAS, the parties hereto desire to set forth their respective rights and obligations with respect to Director’s transition from the Company to pursue new opportunities.

NOW, THEREFORE, in consideration of the covenants and conditions set forth herein and intending to be legally bound hereby, the undersigned parties to this Agreement hereby agree as follows:

        1. 

Resignation and Appointment. Director hereby confirms his resignation as a director of the Company’s Board as of the Effective Date (the "Resignation Date"). 

        2. 

Consideration.  

(a) 

Compensation. The Company and Director agree that salary paid to Director through the Effective Date was to compensate him for his services performed through such date and no further salary will be paid after execution of this Agreement. 

            (b) 

Benefits. The Company will maintain Director's health care coverage for Director and his dependents, with substantially the same benefits as he and his family now receive, for 12 months following the Effective Date.

(c) 

Repayment of Obligations to Director. The Company acknowledges that it previously issued to Director an outstanding promissory note in the principal amount of $65,000 (the “Existing Note”), which represents amounts previously loaned by Director to the Company. The Existing Note bears interest at the rate of 7% per annum and will remain outstanding.  The Existing Note is hereby amended to provide for the following repayment schedule which the Company will use its best efforts to meet:  $4,500 plus accrued interest will be paid on June 30, 2008; thereafter the Company will pay Director $6,500 plus accrued interest at the end of each calendar quarter thereafter until the Existing Note is paid in full. Failure by the Company to make payments on the Note pursuant to the schedule in 

this Section will not constitute default under the Note.  Nothing in this Agreement will effect the enforceability of the Note. 

(d)

The Company will issue Director a Note that is attached to this Agreement as Exhibit A and is incorporated herein by reference.  The Note will be secured by 300,000 shares of the Company’s common stock as evidenced in the Stock Escrow Agreement attached to this Agreement as Exhibit B and incorporated herein by reference. 

(e)

The Company will issue Director a Common Stock Purchase Warrant to purchase 250,000 shares of the Common Stock of the Company (the “Warrant”). The form of the Warrant that is attached to this Agreement as Exhibit C and is incorporated herein by reference.  

        3. 

Confidential Information. Director shall continue to maintain the confidentiality of all confidential and proprietary information of the Company in accordance with the Company Invention Rights and Non-Disclosure Agreement previously executed by Director for one year following execution of this Agreement. 

        4. 

Payment of Salary. With the exception of the payments in Section 2 of this Agreement, Director acknowledges and represents Director has received all sums which are, were, or may in the future be owing by the Company by way of salary, commissions, bonus, allowances, vacation pay, holiday pay, benefits or any other claim of any nature whatsoever pursuant to any law, contract, policy, plan, regulation, decree, or practice whatsoever.

        5. 

Release of Claims by Director. Director agrees that the consideration to be paid or issued to Director pursuant to this Agreement represents settlement in full of all outstanding obligations owed to Director by the Company. Director and his respective past, present and future administrators, affiliates, agents, assigns, attorneys, directors, employees, executors, heirs, insurers, parents, partners, predecessors, representatives, servants, successors, transferees, and all persons acting by, through, under or in concert with any of them hereby absolutely and irrevocably releases, waives, relinquishes, renounces and discharges forever the Company and its past, present and future administrators, affiliates, agents, assigns, attorneys, directors, employees, employers, executors, heirs, insurers, officers, managers, parents, partners, predecessors, representatives, servants, shareholders, subpartners, subsidiaries, successors, transferees, underwriters, clients, customers, and each of them, and all persons acting by, through, under or in concert with any of them from any claims, obligations or amounts due to him arising from any omissions, acts or facts that have occurred up until and including the Effective Date including, without limitation,

         

   (a) 

any and all claims relating to or arising from Director's employment relationship with the Company and the modification of that relationship set forth in this Agreement;

               (b) 

any and all claims relating to, or arising from, Director's right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for breach of contract, fraud, or misrepresentation;

               (c) 

any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage, unfair business practices, defamation, libel, slander, negligence, invasion of privacy, and conversion,

               (d) 

any and all claims for violation of any federal or state law;

               (e) 

any and all claims arising out of any other laws and regulations relating to employment or employment discrimination; and

               (f) 

any and all claims for notice of termination of employment, compensatory indemnity in lieu of notice of termination of employment, severance pay, contractual or extra-contractual damages, salary, bonus, allowances, vacation pay, holiday pay or any other claim of any nature whatsoever pursuant to any law, contract, policy, plan, regulation, decree, or practice whatsoever.

Director agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release shall expressly exclude all obligations incurred under this Agreement.

      

6.

Release of Claims by the Company. In consideration of the Director’s release of the Company, his resignation from the Board of Directors of the Company and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, consistent with state and federal law, the Company and its respective past, present and future administrators, affiliates, agents, assigns, attorneys, directors, officers, employees, executors,  insurers, partners, predecessors, representatives, servants, successors, transferees, and all persons acting by, through, under or in concert with any of them hereby absolutely and irrevocably releases, waives, relinquishes, renounces and discharges forever Director and his respective past, present and future administrators, affiliates, agents, assigns, attorneys, directors, employees, executors, heirs, insurers, parents, partners, predecessors, representatives, servants, successors, transferees, and each of them and all persons acting by, through, under or in concert with any of them from any claims, obligations or amounts due to the Company arising from any omissions, acts or facts that have occurred up until and including the Effective Date including, without limitation,

         

(a) 

any and all claims relating to or arising from Director's employment relationship with the Company and the modification of that relationship set forth in this Agreement;

               

               

(b) 

any and all claims for breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage, unfair business practices, defamation, libel, slander, negligence, invasion of privacy, and conversion,

(c)

any and all claims for violations of any federal or state law;

             

(d) 

any and all claims arising out of any other laws and regulations relating to employment; and

             

(e) 

any and all claims arising out of Director’s performance and as an officer of the Company.

The Company agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release shall expressly exclude all obligations incurred under this Agreement. 

      

7. 

No Pending or Future Lawsuits. Each of the Company and Director represents that neither party has any lawsuits, claims, or actions pending in such party’s name, or on behalf of any other person or entity, against the other party or any other person or entity referred to herein. The Company and Director each also represents that neither party presently intends to bring any claims on such party’s own behalf or on behalf of any other person or entity against the other party or any other person or entity referred to herein except as may be necessary to enforce the terms of this Agreement.

        

8. 

Non-Competition/Non-Solicitation. 

(a) 

Director acknowledges and recognizes the highly competitive nature of the Company’s business and that Director’s position with the Company and access to the Company’s confidential records and proprietary information renders Director special and unique.  In consideration of payments made and to be made by the Company to Director pursuant to this Agreement (including, without limitation, pursuant to Section 2 hereof), Director agrees that for a period of one year after the Effective Date, Director will not, directly or indirectly, in the United States or any other place in which the Company then does business, engage in, or be affiliated in any manner with any individual, partnership, venture, unincorporated association, organization, syndicate, corporation, limited liability company, or other entity, trust and trustee, executor, administrator or other legal or personal representative, or any government or agency or political subdivision thereof (any of the foregoing, a “Person”) engaged in, the business of manufacturing, marketing, and/or selling (A) "wireless fiber optics" WiFiber® technology; or (B) any other product categories the Company is actively manufacturing, marketing, and/or selling as of the Effective Date (the “Business of the Company”). Notwithstanding the foregoing, the Company acknowledges that Director is a stockholder in Loea Corporation, a competitor of the Company, and its parent company, Trex Enterprises Corporation. The Company hereby waives any violation of the provisions of this Section 7(a) arising out of Director’s ownership of such shares of outstanding capital stock of Loea Corporation and Trex Enterprises Corporation or any successor thereto. 

(b) 

Non-Solicitation/Non-Piracy. For a period of one year after the Effective Date, Director will not, directly or indirectly, for his own account or for the benefit of any Person or entity:

(i) 

solicit, service, contact, or aid in the solicitation or servicing of any Person or entity which is or was a customer, prospective customer, client, prospective client, contractor, subcontractor or supplier of the Company or its affiliates within three (3) years prior to Director’s Resignation Date ("Company Customers/Clients"), for the purpose of (a) selling services or goods in competition with the Business of the Company; (b) inducing Company Customers/Clients to cancel, transfer or cease doing business in whole or in part with Company or its affiliates or (c) inducing Company Customers/Clients to do business with any Person or business entity in competition with the Business of the Company; or

(ii) 

solicit, aid in solicitation of, induce, contact for the purpose of, encourage or in any way cause any executive of Company or its affiliates to leave the employ of Company or its affiliates, or interfere with such executive's relationship with the Company or its affiliates.

        9. 

No Cooperation. Director agrees he will not act in any manner that might damage the Business of the Company. Director agrees that he will not counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against the Company and/or any officer, director, employee, agent, representative, shareholder or attorney of the Company, unless under a subpoena or other court order to do so.

        10. 

Non-Disparagement. Each party agrees to refrain from any defamation, libel or slander of the other, or tortious interference with the contracts and relationships of the other. 

        11. 

Costs. The parties shall each bear their own costs, expert fees, attorneys' fees and other fees incurred in connection with this Agreement. Notwithstanding the foregoing, the Company will reimburse Director $2,500 for legal fees incurred for review of this Agreement within thirty days of the execution of this Agreement.

        12.   

Equity Holdings.

(a)

 

Outstanding options.  As of the Effective Date, Director holds options to 

purchase 100,000 shares of Common Stock of the Company. Such options shall vest immediately and will expire on April 25, 2013. The remaining terms of the options will remain the same, including the exercise price.

(b)

Recovery of pledged shares.  The Company will use its best efforts to 

return to Director or, if necessary, replace  the shares of Common Stock pledged by Director to secure Senior Convertible Notes of the Company held by Gutman et al.  The Director agrees to work with the Company to execute such documents as necessary to achieve this Section 12 (b).

 

(c)

The Company agrees to use its best and expedited efforts when requested 

by the Director to provide opinions and remove legends from stock as may be requested by Director and which is lawful from time to time in order for Director to sell his Stock.  Such opinions shall be at the cost of the Company. 

        13. 

No Representations. Each party represents that it has had the opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Neither party has relied upon any representations or statements made by the other party hereto which are not specifically set forth in this Agreement.

        14. 

Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

        15. 

Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Director concerning Director's separation from the Company and supersedes and replaces any and all prior agreements and understandings concerning Director's relationship with the Company and his compensation by the Company.

        16. 

No Oral Modification. This Agreement may only be amended in writing signed by Director and the Chairman of the Compensation Committee or the Chief Executive Officer of the Company. Such amendment must be approved by the Board of Directors or otherwise comply with the Company’s By-laws as in effect at the time of the amendment.

        17.   

Governing Law; Arbitration. This Agreement shall be governed by the laws of the State of North Carolina.  Any disputes, contentions, controversies or claims arising in connection with this Agreement between the parties shall, if possible, be settled in an amicable way.  If, however, no understanding is reached, such disputes, contentions, controversies and claims shall be exclusively and finally settled by binding arbitration using a neutral arbitrator. The arbitration shall be conducted utilizing the Expedited Procedures under the Commercial Arbitration Rules of the American Arbitration Association then in effect. The arbitration will be conducted in Boston, Massachusetts. Director and the Company shall each share and pay equally the fees and costs of the arbitrator and the arbitration. The decision by the 

arbitrator shall be binding and conclusive upon Director and the Company and their respective successors, assigns and trustees, and they shall comply with such decision in good faith, and Director and the Company each hereby submits itself to the jurisdiction of the federal or state courts of the Commonwealth of Massachusetts, but only for the entry of judgment or for the enforcement of the decision of the arbitrator hereunder.  

        18. 

Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

        19. 

Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the part or behalf of the parties hereto, with the full intent of releasing all claims. The parties acknowledge that:

             (a) 

they have read this Agreement;

             (b) 

they have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice or that they have voluntarily declined to seek such counsel;

             (c) 

they understand the terms and consequences of this Agreement and of the releases it contains; and

             (d) 

they are fully aware of the legal and binding effect of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

			
	         

	GigaBeam Corporation

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ Merrill A. McPeak

	 
	 
	Merrill A. McPeak

Chairman of the Compensation Committee

	 
	 

   

			
	 
	 
	Louis S. Slaughter, an individual

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ Louis S. Slaughter

	 
	 
	Louis S. Slaughter

                                       

   

EXHIBIT A

SECURED PROMISSORY NOTE

		
	$150,000

	April 25, 2008

               FOR VALUE RECEIVED, GigaBeam Corporation, a Delaware corporation (the “Maker”), with its primary offices located at 4021 Stirrup Creek Drive, Suite 400, Durham, NC 27703, promises to pay to the order of Louis S. Slaughter (the “Payee”), upon the terms set forth below, the principal sum of one hundred fifty thousand and 00/100 dollars ($150,000) (this “Note”).

1.      

Payments.

(a) 

The full amount of principal and accrued interest under this Note shall be due April 25, 2010 (the “Maturity Date”).  

(b)  

Maker will use its best efforts to make payments to Payee on this Note in advance of the Maturity Date as follows: $10,000 of the principal amount by the last day of the Maker’s fiscal quarter ending June 30, 2008 and the last day of each fiscal quarter thereafter in the amount of $15,000.  Notwithstanding the foregoing, as long as Maker uses its best efforts to make the foregoing payments on this Note, any failure to make such payment(s) will not be considered a default under this Note. 

(c)

The Maker may prepay this Note for 100% of the full principal amount of this Note at any time prior to the Maturity Date.

(d)

No interest will be paid on this Note.

2.      

Default. Maker shall be considered in “default” under this Note if it fails to pay the principal amount in full by the Maturity Date.

3.

Security.  Maker and Payee agree to execute a Stock Escrow Agreement whereby pursuant to which 300,000 restricted shares of the Maker’s common stock will be held in an escrow account and will serve as Payee’s sole security in the event of default hereunder. The number of shares Payee will be entitled to receive, if any, and the issuance thereof will be governed by the terms of the Stock Escrow Agreement.

4.

No Waiver of Payee’s Rights.    All payments of principal shall be made without setoff, deduction or counterclaim. No delay or failure on the part of the Payee in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the part of the Payee of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker hereby waives presentment of payment, protest, and all notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note. Acceptance by the Payee of less than the full amount due and payable hereunder shall in no way limit the right of the Payee to require full payment of all sums due and payable hereunder in accordance with the terms hereof.

5. 

Modifications.   No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby.

6. 

Cumulative Rights and Remedies   The rights and remedies of Payee expressed herein are cumulative and not exclusive of any rights and remedies otherwise available under this Note or applicable law (including at equity). The election of Payee to avail itself of any one or more remedies shall not be a bar to any other available remedies, which Maker agrees Payee may take from time to time. 

7. 

Collection Expenses.   If Payee shall commence an action or proceeding to enforce this Note, then Maker shall reimburse Payee for its costs of collection and reasonable attorneys’ fees incurred with the investigation, preparation and prosecution of such action or proceeding.

8. 

Severability.    If any provision of this Note is declared by a court of competent jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. 

9. 

Successors and Assigns.   This Note shall be binding upon Maker and its successors and shall inure to the benefit of the Payee and its successors and assigns. The term "Payee" as used herein, shall also include any endorsee, assignee or other holder of this Note.

10. 

Lost or Stolen Promissory Note.   If this Note is lost, stolen, mutilated or otherwise destroyed, Maker shall execute and deliver to the Payee a new promissory note containing the same terms, and in the same form, as this Note. In such event, Maker may require the Payee to deliver to Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note.

12. 

Due Authorization.   This Note has been duly authorized, executed and delivered by Maker and is the legal obligation of Maker, enforceable against Maker in accordance with its terms except as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally.  No consent of any other party and no consent, license, approval or authorization of, or registration or declaration with, any governmental authority, bureau or agency is required in connection with the execution, delivery or performance by the Maker, or the validity or enforceability of this Note other than such as have been met or obtained. The execution, delivery and performance of this Note and all other agreements and instruments executed and delivered or to be executed and delivered pursuant hereto or thereto or the securities issuable upon conversion of this Note will not violate any provision of any existing law or regulation or any order or decree of any court, regulatory body or administrative agency or the certificate of incorporation or by-laws of the Maker or any mortgage, indenture, contract or other agreement to which the Maker is a party or by which the Maker or any property or assets of the Maker may be bound.

13. 

Governing Law.   All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of North Carolina, without regard to the principles of conflicts of law thereof.  Each of Maker and Payee hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby.

14.

Notice.

  Any and all notices or other communications or deliveries to be provided by the Payee hereunder, including, without limitation, any conversion notice, shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service or sent by certified or registered mail, postage prepaid, addressed to the Maker, or such other address or facsimile number as the Maker may specify for such purposes by notice to the Payee delivered in accordance with this paragraph.  Any and all notices or other communications or deliveries to be provided by the Maker hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service or sent by certified or registered mail, postage prepaid, addressed to the Payee at the address of the Payee appearing on the books of the Maker, or if no such address appears, at the principal place of business of the Payee.  Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission if delivered by hand or by telecopy that has been confirmed as received by 5:00 P.M. on a business day, (ii) one business day after being sent by nationally recognized overnight courier or received by telecopy after 5:00 P.M. on any day, or (iii) five business days after being sent by certified or registered mail, postage and charges prepaid, return receipt requested.

The undersigned signs this Note as a maker and not as a surety or guarantor or in any other capacity.

                                           

			
	 
	 
	GIGABEAM CORPORATION

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ S. Jay Lawrence

	 
	 
	S. Jay Lawrence

Chief Executive Officer

  

EXHIBIT B

STOCK ESCROW AGREEMENT

This STOCK ESCROW AGREEMENT dated the ____ day of April, 2008, among Louis S. Slaughter ("Holder"); GigaBeam Corporation., a Delaware corporation (the "Company");  and  [insert independent, mutually agreed to third party],  attorneys at law with an  address of [insert address] (the "Escrow Agent").

RECITALS

WHEREAS, Holder and the Company have entered into an Agreement and Release, dated April 25, 2008 (the “Agreement”), and pursuant to such Agreement, the Company issued to Holder, a Secured Promissory Note, dated April 25, 2008 (the “Note”), in the principal sum of one hundred fifty thousand and 00/100 dollars ($150,000); a copy of which is attached as Exhibit A to the Agreement; 

 WHEREAS, the Company, in order to secure payment of the Note to Holder, has agreed to place 300,000 restricted shares of the Company’s common stock, par value $0.001 per share, into escrow by the delivery of certificates evidencing such shares to the Escrow Agent pursuant to the terms of this Stock Escrow Agreement.

     

NOW, THEREFORE, in consideration of the covenants and agreements contained in the Agreement and Release, the Note and this Stock Escrow Agreement, it is agreed as follows:

     

1.    

Escrow Agent.  Holder and the Company appoint and designate [insert firm] as the Escrow Agent for the purposes herein set forth.  The Company will pay up to $2,500.00 in fees to the Escrow Agent.  Fees in excess of $2,500.00 will be paid by the Holder.

     

2.     

Deposit of Shares.  Holder and the Company will deposit with Escrow Agent within ten (10) business days following execution of this Agreement certificates evidencing the 300,000 restricted shares of the Company’s common stock, subject to adjustment as customary for any stock splits, stock dividends, combinations, mergers, reclassification or other similar transactions on or after the date of this Agreement (the “Escrow Shares”).  All such certificates shall be held and disposed of by the Escrow Agent in accordance with the terms and provisions of this Stock Escrow Agreement.

     

3.     

Escrow.  Holder and the Company authorize the Escrow Agent to keep and preserve the Escrow Shares in its possession as security for the payment of the Note.

     

4.     

Default.  If the Company defaults in the payment of the principal amount owed under the Note on the maturity date, and such default remains uncured for fifteen (15) business days after written notice thereof, Holder shall have the right to direct the Escrow Agent deliver to him certificates evidencing the number of shares equal to the outstanding principal amount under the Note divided by the lesser of (a) 0.33, subject to adjustment as customary for any stock splits, stock dividends, combinations, mergers, reclassification or other similar transactions, or (b) the closing price of the Company’s stock on the day the Company defaults on the Note, or such subsequent business day if the day of the default is not a business day. However, in no event shall the Company be required to pay in excess of the 300,000 shares held in escrow, as adjusted.  The Escrow Agent shall, at the end of ten (10) business days after receipt of written demand from Holder, together with evidence that notice of the demand had been give to the Company, deliver to Holder the certificates of the Company’s common stock evidencing the proper amount of Escrow Shares as determined by the Escrow Agent as set forth herein.  Any Escrow Shares remaining in the possession of the Escrow Agent shall be cancelled.  Holder 

agrees to comply and cooperate with the Escrow Agent and the Company’s transfer agent in order to effect the transfer of any shares due to Holder and/or to cancel any Escrow Shares not due to Holder as a result of the Company paying amounts due under the Note.  

Notwithstanding the foregoing, if before the end of the ten (10) business day period, the Company has notified the Escrow Agent to withhold the delivery of the certificates to the Holder, then the Escrow Agent shall not make delivery until the controversy is settled either by an agreement between Holder and the Company or by a final judgment of the Escrow Agent. 

     

5.     

Dividends and Voting Rights.  Pending the payment of the Note in full, all dividends declared on the shares held by the Escrow Agent shall be applied to the payment of the Note. The Company shall have the right to vote the shares on deposit with the Escrow Agent and Holder shall execute an appropriate proxy to the Company.

     

6.     

Termination of Escrow.  If satisfactory proof has been presented to the Escrow Agent that the principal balance under the Note has been paid in full, the Escrow Agent shall deliver to the Company the 300,000 shares of the Company’s common stock in its possession, less any shares issued to the Holder pursuant to Section 4 herein, if any, and all obligations between the Holder, the Company and the Escrow Agent shall thereupon cease.

     

7.     

Expenses.  The Company will pay the charges of the Escrow Agent, and any reasonable attorneys' fees, expenses and other costs incurred by the Escrow Agent in connection with the administration of the provisions of this Stock Escrow Agreement.

     

IN WITNESS WHEREOF, this Agreement has been executed by each of the parties hereto, all on the date first above written.

			
	WITNESS:                         

	 
	HOLDER:

	 
	 
	 

	 
	 
	Louis S. Slaughter, Individually

	 
	 
	 

	 
	 
	 

	ATTEST:                        

	 
	THE COMPANY:

	 
	 
	 

	 
	 
	 

	 
	 
	GigaBeam Corporation, a Delaware corporation

	 
	 
	 

	 
	By: 

	 

	 
	 
	S. Jay Lawrence

	 
	 
	Chief Executive Officer

	 
	 
	 

	 
	 
	 

	WITNESS:                         

	 
	ESCROW AGENT:

	 
	 
	 

	 
	By: 

	[name of escrow agent]

	 
	 
	 

                             

EXHIBIT C

GIGABEAM CORPORATION

COMMON STOCK PURCHASE WARRANT

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS.  THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THESE SECURITIES UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL TO THE ISSUER THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  HOLDERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

FOR VALUE RECEIVED, Louis S. Slaughter (the “Holder”), is entitled to purchase from GigaBeam Corporation, a Delaware corporation (the “Company”), subject to the terms and conditions herein set forth, at any time before 5:00 p.m. Eastern Standard Time (EST) time on April 25, 2011, such date being referred to herein as the “Expiration Date”, 250,000 shares of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock of the Company, par value $0.001 per share (the “Warrant Shares”), subject to adjustment of the number or kind of shares constituting the Warrant Shares as hereinafter provided.  The Holder is entitled to purchase the Warrant Shares for $1.00 per share, subject to adjustment as hereinafter provided (the “Exercise Price”), and is entitled also to exercise the other appurtenant rights, powers and privileges hereinafter set forth.  The Company may lower the Exercise Price or extend the Expiration Date at its sole discretion.

ARTICLE 1

DEFINITIONS

For all purposes of this Warrant, unless the context otherwise requires, the following terms have the following meanings:

1.1

“Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the Person specified, and, in the case of a Person who is a natural person, shall include any member of the immediate family of such Person or any trust for the benefit of said family members.

1.2

“Common Stock” means the Company’s authorized common stock, par value $0.001 per share.

1.3

“Company” means GigaBeam Corporation, a corporation organized and existing under the laws of the State of Delaware, and any successor corporation.

1.4

“Exercise Price” means the exercise price for the Warrant Shares established in accordance with Article 4.

1.5

“Holder” means the holder of record of this Warrant as shown in the Company’s register for such purpose as described in Article 2 hereof.

1.6

“Person” means any natural person, sole proprietorship, general partnership, limited partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, private or governmental entity, or other party.

1.7

“Trading Price” means the price at which the Company’s Common Shares trade, in any single transaction, subsequent to the execution of and prior to the Expiration Date of this Warrant.

1.8

“Warrant” means this Warrant and any warrants issued on or in substitution for this Warrant, including warrants issued in exchange for this Warrant pursuant to Article 2 hereof.

1.9

“Warrant Shares” means the shares of Common Stock or other securities acquired or to be acquired upon the exercise of the Warrant.

ARTICLE 2

EXERCISE OF WARRANT

2.1

Partial Exercise.  This Warrant may be exercised in whole or in part.  A partial exercise must be for a minimum of 1000 shares.  In the event of a partial exercise, the Company shall execute and deliver to the Holder (or to such other Person as shall be designated in the Subscription Notice) a new Warrant covering the unexercised portion of the Warrant Shares.

2.2

Procedure.  To exercise this Warrant, the Holder shall deliver to the Company at its principal office:

(a)

a written notice, in substantially the form of the Subscription Notice appearing at the end of this Warrant, of the Holder’s election to exercise this Warrant;

(b)

a check payable to the Company in the amount of the Exercise Price; and

(c)

this Warrant.

The Company shall as promptly as practicable, and in any event within twenty (20) business days after receipt of such notice, execute and deliver or cause to be executed and delivered one or more certificates representing the aggregate number of shares of Warrant Shares to which the Holder is entitled and, if this Warrant is exercised in part, a new Warrant as set forth in Section 2.1.

2.3

Name and Effective Date.  The stock certificate(s) so delivered shall be issued in the name of the Holder or such other name as shall be designated in the notice specified in Section 2.2.  Such certificate(s) shall be deemed to have been issued and such Holder or any other Person so designated to be named therein shall be deemed for all purposes to have become a Holder of record of such shares as of the date the Company actually receives the notice and payment as specified in this Article 2, subject to Article 3 hereof.

2.4

Expenses. The Company shall pay all expenses payable in connection with the preparation, issuance, and delivery of such stock certificate(s), except that the Holder shall pay any applicable stock transfer taxes.

2.5

Legal Requirements.  The Warrant Shares issued upon the exercise of this Warrant shall be validly issued, fully paid, and nonassessable.

2.6

No Fractional Shares.  The Company shall not issue a stock certificate representing any fraction of a share upon partial exercise by a Holder of such Holder’s rights hereunder.

2.7

Warrant Register.  The Company shall register this Warrant, upon records to be maintained by the Company for that purpose, in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

ARTICLE 3

TRANSFER

3.1

Permitted Transfers.  This Warrant shall not be transferable to any other Person except with the written consent of the Company and subject to the limitations set forth in Section 3.2 hereof. 

3.2

Securities Laws.  Notwithstanding anything to the contrary in this Article 3, neither this Warrant nor the Warrant Shares shall be transferable unless:

(a)

either a registration statement under the Securities Act of 1933, as amended (the “Act”), is in effect covering this Warrant or the Warrant Shares, as the case may be, or the Company has received an opinion from Company counsel to the effect that such registration is not required; and

(b)

the transfer complies with any applicable state securities laws.

The Warrant Shares will bear a legend describing the restrictions on transfer set forth in this Section 3.2.  By acceptance of this Warrant, the Holder represents and warrants to the Company that this Warrant is acquired for the Holder’s own account, for investment and not with a view to distribution within the meaning of the Act and the Holder agrees that the Holder will not offer, distribute, sell, transfer or otherwise dispose of this Warrant or the Warrant Shares except as set forth herein.  Holder acknowledges that the Company has no obligation to register this Warrant or the Warrant Shares.

ARTICLE 4

EXERCISE PRICE AND ADJUSTMENTS

4.1

Exercise Price.  The Exercise Price for the Warrant Shares shall be $1.00 per share, subject to adjustment as described in this Article 4.

4.2

Stock Splits, Stock Dividends and Reverse Stock Splits.  If at any time the Company shall subdivide (by reclassification, by the issuance of a Common Stock dividend on Common Stock, or otherwise) its outstanding shares of Common Stock into a greater number, the number of shares of Common Stock that may be purchased hereunder shall be increased proportionately and the Exercise Price per share of Common Stock shall be decreased proportionately as of the effective date of such action.  The effective date of a stock dividend shall be the record date for such dividend.  Issuance of a Common Stock dividend shall be treated as a subdivision of the whole number of shares of Common Stock outstanding immediately before the record date for such dividend into a number of shares equal to such whole number of shares so outstanding plus the number of shares issued as a stock dividend.  If at any time the Company shall combine (by reclassification or otherwise) its outstanding number of shares of Common Stock into a lesser number, the number of shares of Common Stock that may be purchased hereunder shall be reduced proportionately and the Exercise Price per share of Common Stock shall be increased proportionately as of the effective date of such action.

4.3

Reorganization and Reclassification.  In case of any capital reorganization or any reclassification of the capital stock of the Company while this Warrant remains outstanding, the Holder of this Warrant shall thereafter be entitled to purchase pursuant to this Warrant (in lieu of the kind and number of shares of Common Stock comprising Warrant Shares that such Holder would have been entitled to purchase or acquire immediately before such reorganization or reclassification) the kind and number of shares of stock of any class or classes or other securities or property for or into which such shares of Common Stock would have been exchanged, converted or reclassified if the Warrant Shares had been purchased by the Holder immediately before such reorganization or reclassification.  In case of any such reorganization or reclassification, appropriate provision (as determined by resolution of the Board of Directors of the Company) shall be made with respect to the rights and interest thereafter of the Holder of this Warrant, to the end that all the provisions of this Warrant (including adjustment provisions) shall thereafter be applicable, as nearly as reasonably practicable, in relation to such stock or other securities or property.

ARTICLE 5

LIMITATION OF LIABILITY

No provision of this Warrant shall be construed as conferring upon the Holder the right to vote or to consent or to receive dividends or to receive notice as a stockholder in respect of meetings of stockholders for the election of directors of the Company or any other matter whatsoever as stockholders of the Company.  In the absence of affirmative action by the Holder to purchase shares of Common Stock in accordance with the terms of this Warrant, no provision hereof shall give rise to any liability of such Holder for the Exercise Price or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

ARTICLE 6

MISCELLANEOUS

6.1

Governing Law.  The rights of the parties arising under this Warrant shall be construed and enforced under the laws of the State of North Carolina without giving effect to any choice of law or conflict of law rules.

6.2

Notices.  Any notice or other communication required or permitted to be given or delivered pursuant to this Warrant shall be in writing and shall be deemed effective as of the date of receipt if delivered personally, or delivered by overnight courier service or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address in the United States of America for a party as shall be specified by like notice; provided, however, that notices of change of address shall be effective only upon receipt thereof):

(i)

to the Holder at the address set forth on the signature page to this Warrant.

(ii)

to the Company as follows:

GigaBeam Corporation

4021 Stirrup Creek Drive, Suite 400

Durham, NC 27703

Attention:  Chief Executive Officer

6.3

Severability.  If any provision of this Warrant shall be held invalid, such invalidity shall not affect any other provision of this Warrant that can be given effect without the invalid provision, and to this end, the provisions hereof are separable.

6.4

Headings.  The headings in this Warrant are for reference purposes only and shall not affect in any way the meaning of interpretation of this Warrant.

6.5

Amendment.  This Warrant cannot be amended or modified except by a written agreement executed by the Company and the Holder.

6.6

Assignment.  This Warrant shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns, except that no party may assign or transfer its rights or obligations under this Warrant except to the extent explicitly permitted herein.

6.7

Entire Agreement.  This Warrant, together with its attachments, contains the entire understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, except as herein contained.

[Signature page follows]

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in its name by the officer named below.

			
	         

	GigaBeam Corporation

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ S. Jay Lawrence

	 
	 
	S. Jay Lawrence

Chief Executive Officer

	 
	 

Dated:  April 25, 2008

Holder’s Contact Information

Name:  ______________________________

Address:  _________________________________________________

Address

City

State

Zip Code

Facsimile Number:  _____________________

Email address:  ________________________

SUBSCRIPTION NOTICE

The undersigned, the Holder of a Common Stock Purchase Warrant issued by GigaBeam Corporation, hereby elects to exercise purchase rights represented by such Warrant for, and to purchase thereunder, _______________ shares of the Common Stock covered by such Warrant and herewith makes payment in full therefor of ___________________ and requests that certificates for such shares (and any securities or the property issuable upon such exercise) be issued in the name of and delivered to _______________________________ whose address is ____________________________________________ and whose tax ID number (or if a natural person, social security number) is _____________.

If said number of shares of Common Stock is less than the number of shares of Warrant Shares purchasable hereunder, the undersigned requests that a new Warrant representing the balance of the Warrant Shares be registered in the name of and issued and delivered to _________________ whose address is ____________________________________________.

The undersigned hereby agrees to pay any transfer taxes on the transfer of all or any portion of the Warrant or Warrant Shares requested herein if the undersigned has requested stock certificate(s) to be registered in a name or names other than the name of the undersigned.

The undersigned agrees that, in the absence of an effective registration statement with respect to Common Stock issued upon this exercise, the undersigned is acquiring such Common Stock for investment and not with a view to distribution thereof and the certificate or certificates representing such Common Stock may bear a legend substantially as follows:  “The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be transferred except as provided in Article 3 of the Warrant to purchase Common Stock of GigaBeam Corporation, a copy of which is on file at the principal office of GigaBeam Corporation”

Signature guaranteed: __________________

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