Document:

Exhibit 10.33

 

April 16, 2008

 

Robert McCarthy

2790 Marsh Wren Circle

Longwood, FL, 32779

Sent via email: mccarthy.rf@gmail.com

 

Dear Bob:

 

Consonus Technologies, Inc. (the “Company”)
is pleased to extend the following offer of employment to you.  We are extremely excited by the prospect of
you joining our team.  We believe the
combination of your experience and demonstrated track record will allow you to
have a significant impact on the future success of our Company.

 

	
  Job Title:

  	
   

  	
  Executive
  Vice President, Sales & Marketing

  
	
  Location:

  	
   

  	
  Cary,
  North Carolina

  
	
  Reporting To:

  	
   

  	
  Mike
  Shook, CEO

  
	
  Total Base Salary:

  	
   

  	
  $200,000.00USD/per
  annum

  
	
  Contingent Start Date:

  	
   

  	
  May 19,
  2008

  

 

General Responsibilities:  You will have
as your general responsibility, the tasks of (1) improving the performance
of the Company’s sales force through increased productivity and reduced per
unit and total costs of sales and (2) enhancing and accelerating the
Company’s efforts toward building its recurring revenue lines of business such
as managed services, hosting and bandwith, maintenance manager, etc. You will
be expected to work closely with the Board of Directors (the “Board”) including
periodic reports to the Board and sub committees of the Board.

 

Annual Bonus Opportunities:  In addition to your base
salary, you will have the opportunity to earn an annual bonus through your
achievements and contributions to the success of the company, and through the
overall financial success of the Company.

 

·                  Your annual
Target Incentive Award will be a bonus potential of up to $157,000.00 (2008
based on 3 Quantitative Targets and 2 Qualitative Targets, paid pro-rata from
hire date). Each of the quantitative and qualitative goals will be weighted
equally. The objectives for the remainder of 2008 are as follows:

 

Quantitative

 

1.               Achieve July 1 to December 31, 2008 CTI
P&L gross margin goal per CTI Plan (goal 18.996M)

2.               Meet July 1 to December 31, 2008 cost of
sales goal as a percentage of billing margin (goal 20.2% with dedicated MS
sales reps) including submitting a plan in the first 75 days to accomplish
such, with an initial draft of such plan ready for review within 60 days

3.               Meet July 1 to December 31, 2008 Managed
Services P&L revenue goal of 2.7M

 

Qualitative

 

1.               Provide an in-depth assessment of current
sales force performance, including individual evaluation of managers and sales
team members. Assess alignment of corporate vision and individual sales team
contributions. With this data develop sales force structure, total costs of
sales, coverage model, go to market strategy, and execution plan. Timeline –
First 75 days, with an initial draft ready for review within 60 days.

 

 

2.               Execution of sales plan as approved by the Board.
Timeline – Balance of calendar 2008

 

·                  Your annual
Exceeding Targets Incentive Award will be a bonus potential of up to $73,000
based on exceeding the annual quantitative targets by at least 110%.

 

Stock Award Upon Hiring:  The Company will award you 44,620 restricted
shares of the Company, which represents approximately 1.25% of the fully
diluted shares of the Company. The restrictions on such stock are both
performance based and retention based. The stock will vest equally over 3
years.

 

100% of stock will vest if change in control (which change of control
includes diminution of KLI role on the Board) takes place and it materially
diminishes or eliminates your existing role.

 

If you are terminated by the Company without Cause, 100% stock will
vest.

 

You may also earn, at the discretion of the Board, additional stock
option grants in the future in recognition of your proven performance and
potential for additional responsibilities.

 

Employee Benefits:  As a full time exempt employee of the Company
you will be eligible to participate in an excellent group of employee benefits
programs, including: 401K, health, dental and wellness plans.

 

Vacation: The Company will provide you the following weeks
of vacation:

 

·                  2008 – 2 weeks
(1 week July)

·                  2009 – Beyond -
4 weeks

 

Severance without Cause or change in control which
effects existing role: If your employment
is terminated during the first 24 months of employment for any reason other
than Cause, the Company will
provide you with a one time severance payment equivalent to six (6) months
of your base salary.

 

Moving Allowance:  The
Company will provide you with a moving allowance not to exceed $70,000.00
gross. If you leave the Company within the first 18 months for any reason other
than termination by the Company without Cause, the moving allowance will be
charged back to you. Temporary living arrangements should not exceed 4 months.

 

Temporary Living: Temporary living arrangements are not
included in the moving allowance and will not exceed (4) months.

 

Car Allowance: $600.00 per month

 

This offer is contingent on
executing the attached Employment Agreement and Restricted Stock Agreement. It
is also contingent upon a successful pre-employment background check and drug
screen.   The term “Cause”, as used
herein, shall have the meaning set forth in Section 6.1 of the Employment
Agreement.

 

 

Bob, we are all very excited about the prospect of you joining our team
at Consonus Technologies and believe you will play an important role in our
success.  To indicate your acceptance of
Consonus Technologies’ offer and all of its terms, please sign and date this
letter, and fax it to me at 919-379-8390 at your earliest
convenience.  Should you have any
questions please feel free to contact me at 919 379 8400.

 

Sincerely,

 

Mike Shook

CEO

Consonus Technologies

 

 

	
  Accepted:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
  Robert McCarthy

  	
   

  	
   

  

 

 

10.33

 

EMPLOYMENT AGREEMENT 

 

This EMPLOYMENT AGREEMENT is made and entered into as of
May 12, 2008 by and between CONSONUS TECHNOLOGIES, INC., a Delaware corporation
(the “Company”), and ROBERT McCARTHY, an individual resident of the
State of Florida (the “Employee”).

 

WITNESSETH:

 

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

 

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

 

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

 

1.                                      Definitions.

 

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

 

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

 

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

 

“Company” shall have the meaning set forth in
the first paragraph of this Agreement, and will include all subsidiaries and
affiliates of the Company.

 

“Company Property” shall have the meaning set
forth in Subsection 6.5 of this Agreement.

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

4.                                       Compensation. For services rendered hereunder, the
Company shall compensate Employee as set forth in that certain offer letter to
Employee from Company dated
                  ,
2008, a copy of which is attached hereto as Exhibit A.  Such compensation shall be payable in
accordance with the Company’s normal payroll practices.

 

5.                                     Employee Benefits; Reimbursement of
Expenses.

 

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

 

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

 

2

 

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

 

6.1                                 With Cause. The Company may terminate this Agreement, at any
time for Cause. The term “Cause” as used herein, shall mean (a) the
Employee, in carrying out his duties hereunder, has been guilty of gross
negligence or willful and wanton misconduct which in either case results in
material harm to the financial condition, business, assets, or prospects of the
Company; (b) the conviction of , or entering of plea of no contest by, the
Employee for (1) fraud, misappropriation, or embezzlement relating to the
Company, (ii) any felony, or (iii) any other offense that results in
an active sentence of at least thirty (30) days imprisonment; (c) any
material breach of this Agreement by the Employee which breach shall not have
been cured within thirty (30) days after receipt by the Employee of written notice
from the Company specifying in reasonable detail the nature of the breach; (d) the
loss, suspension or material impairment of any license, certification,
registration or other professional credential (“License”) held by
Employee, if Company deems such License necessary for Employee to remain
qualified to perform his responsibilities hereunder; or (e) willful
failure to substantially perform his duties hereunder, which failure cannot be
cured or shall not have been cured within thirty (30) days after receipt by the
Employee of written notice from the Company specifying in reasonable detail the
failure to perform such duties.

 

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

 

6.3                                 Death; Disability. This Agreement shall terminate
immediately upon the death of Employee or if Employee is unable to perform the essential
functions of his job, with or without a reasonable accommodation, for a period
of greater than ninety (90) days (“Disability”).

 

6.4                                 Certain Payments Upon Termination.

 

(a)                                  Generally.  Upon
termination of this Agreement and Employee’s employment hereunder, for whatever
reason, the Company shall pay the Employee or his beneficiary such salary as he
may be entitled to receive for services rendered prior to the date of such
termination.

 

(b)                                 With Cause; Upon Death, Disability or
Resignation.  If Employee is terminated by the Company for
Cause, or if Employee’s employment ends due to Employee’s death or Disability,
or if Employee resigns, the Company shall not be liable for any other payments
to the Employee.

 

(c)                                  Without Cause. 
If Employee is terminated by the Company without Cause prior to the
two-year anniversary of the Agreement Date, the Company shall pay to Employee
an amount equal to six months of Employee’s base compensation; provided,
however, that during the period beginning on the one-year anniversary of this 

 

3

 

Agreement and ending on the two-year anniversary of
this Agreement, for purposes of this Section 6.4(c) only, the term
“Cause” shall include the failure of Employee to achieve at least an average of
75% of the quantitative and qualitative goals assigned to him.  Termination for failure to achieve the
above-referenced quantitative and qualitative goals assigned to Employee shall
be termination without Cause for purposes of determining the vesting of
restricted stock under the Restricted Stock Agreement between Employee and the
Company of even date herewith.   If
Employee is terminated by the Company without Cause after the two-year
anniversary date, the Company shall give Employee at least thirty (30) days’
prior written notice of such termination or, at the Company’s election, the
Company will pay to Employee an amount equal to Employee’s regular base salary
in lieu of all or a part of such notice. 
In addition to the foregoing, if Employee is terminated without Cause,
he shall be entitled to his incentive compensation based on the goals provided
to him for such year, as and to the extent earned by him, measured and paid on
a pro rata basis for the applicable portion of the year that Employee was
employed.

 

6.5                                 Return of Company Property. Upon termination of Employee’s
employment with Company for any reason, Employee shall leave with or return to
Company all personal property belonging to Company (“Company Property”)
that is in Employee’s possession or control as of the date of such termination
of employment, including, without limitation, all records, papers, drawings,
notebooks, specifications, marketing materials, software, reports, proposals,
equipment, or any other device, document or possession, however obtained,
whether or not such Company Property contains Confidential Information.

 

7.                                       Restrictive Covenants.

 

7.1                                 Noncompetition. 
Upon the termination of Employee’s employment by the Company with Cause,
or through Employee’s resignation, Employee hereby covenants and agrees that
for a period of one (1) year after such termination, Employee shall not,
on his own behalf or for others, directly or indirectly, provide the Covered
Services (as herein defined) in competition with Company (whether as a
proprietor, partner with another, shareholder, agent or consultant of, employee
of or lender to, another) to any Covered Customer (as herein defined) in the
Covered Territory (as herein defined). 
For purposes of this Agreement, the “Covered Services” shall mean
providing services, directly or in directly, as an employee, consultant, owner,
manager, agent, director or other similar capacity, in the area of managed data
center services; “Covered Customer” shall mean any client or customer of
Company or any prospective client or customer of Company with whom Employee has
had any business contacts on behalf of Company within the last twelve (12)
months of Employee’s employment with Company; and the “Covered Territory”
shall mean: within a fifty (50) mile radius of any of the Company’s office
locations from which the Company sells goods or services during the term of
this Agreement.  Employee further agrees
that for a period of one (1) year following his termination of employment
with Company, he will provide written notice to Company of the name and address
of any other employer with whom Employee accepts employment at least 24 hours
prior to commencement of such employment.

 

4

 

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

 

7.3                                 Nonsolicitation. Employee agrees that during his
employment and for a period of one (1) year thereafter, he will not
contact, solicit, interfere with or attempt to entice in any form, fashion or
manner (a) any other employee of Company for the purpose of inducing such
employee to terminate his employment with Company or to act in any way that
would or could be detrimental to the best interests of the Company, or (b) any
Covered Customer for the purpose of inducing such Covered Customer to use any
services or products in competition with those offered by the Company.

 

Notwithstanding
the termination or expiration of this Agreement for any reason whatsoever, the
Employee’s obligations under this Section 7 shall survive and remain in
full force and effect in accordance with their terms; provided, however that,
with respect to Section 7.1, such provision does not survive unless
Employee’s termination is for Cause or due to Employee’s resignation.

 

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

 

9.                                      Freedom to Contract. Subject to the fact that Employee has
an agreement not to compete in the voice over internet protocol, or VoIP,
sector for not more than one year from the date of this Agreement, the Employee
represents, warrants and covenants that he has the right 

 

5

 

and power to enter
into this Agreement and to perform his obligations hereunder, that he neither
has made nor will he make any contractual or other commitments that would
conflict with the performance of his obligations hereunder and that the
Employee will neither do acts or enter into any commitments in derogation of
his obligations hereunder.

 

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

 

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

 

12.                                Governing Law; Severability. Except as otherwise set forth herein,
this Agreement is governed by and is to be construed and enforced in accordance
with the laws of the State of North Carolina without regard to principles of
conflicts of law. If any provision or portion of this Agreement shall be
determined to be invalid unenforceable for any reason, in whole or in part, the
remaining provisions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law.

 

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

 

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

 

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

 

6

 

If to the Company:

 

Consonus Technologies, Inc.

301 Gregson Drive

Cary, North Carolina 27511

Attention: Michael G. Shook, President

 

with a copy to:

 

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

4101 Lake Boone Trail, Suite 300

Raleigh, North Carolina 27607

Attention: Eric A. Vernon, Esq.

 

If to the Employee:

 

Robert McCarthy

STREET

CITY, STATE  ZIP

 

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

 

[The next page is the signature page.]

 

7

 

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

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  CONSONUS TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Michael G. Shook

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  	
  (SEAL)

  
	
   

  	
  Robert McCarthy

  
					

 

8Exhibit 10.34

 

CONSONUS TECHNOLOGIES, INC.

 

RESTRICTED
STOCK AGREEMENT

 

FOR

 

ROBERT
McCARTHY

 

1.                                      Award
of Restricted Stock. The Committee hereby grants, as of May 12, 2008 (the “Date of Grant”), to Robert McCarthy (“Recipient”), 44,620 restricted shares
of the Company’s Common Stock, par value $.0000015 per share (collectively the “Restricted Stock”). The Restricted
Stock shall be subject to the terms, provisions and restrictions set forth in
this Agreement and the Company’s 2007 Incentive Compensation Plan, as may be
amended from time to time (the “Plan”), which is incorporated herein for all
purposes. As a condition to entering into this Agreement, and as a condition to
the issuance of any Shares (or any other securities of the Company), the
Recipient agrees to be bound by all of the terms and conditions herein and in
the Plan. Unless otherwise provided herein, terms used herein that are defined
in the Plan and not defined herein shall have the meanings attributable thereto
in the Plan. 

 

2.                                      Vesting
of Restricted Stock.

 

(a)                                  Except
as otherwise provided in Sections 2(b), 2(c) and 4 hereof, the shares of
Restricted Stock shall become vested in the following amounts, at the following
times and upon the following conditions, provided that the Continuous Service
of the Recipient continues through and on the applicable Vesting Date and that
the following conditions are met:

 

	
  Number
  of Shares

  of Deferred Stock

  	
   

  	
  Vesting Date

  
	
  7,437

  	
   

  	
  March 31, 2009, so long as the performance goals set by the
  Committee for July through December 2008 are met.

  
	
  14,873

  	
   

  	
  March 31, 2010, so long as the performance goals set by the
  Committee for the 2009 calendar year are met.

  
	
  14,873

  	
   

  	
  March 31, 2011 so long as the performance goals set by the
  Committee for the 2010 calendar year are met.

  
	
  7,437

  	
   

  	
  September 30, 2011 so long as the
  performance goals set by the Committee for January 1, 2011 through
  June 30, 2011 are met.

  

 

 

The written performance goals will be
provided to Recipient no later than February 28 of the applicable calendar
year; provided, however, that for 2008 goals, such goals will be provided to
Recipient on or before the first day of employment. There may be proportionate
or partial vesting of the Restricted Shares on the applicable Vesting Date
based on the number of performance goals met and the percentage of each goal
attained. The criteria for proportionate or partial vesting and complete
vesting will be set forth in the performance goals. There shall be no
proportionate or partial vesting of shares of Restricted Stock in or during the
months, days or periods prior to each Vesting Date, and all vesting of shares
of Restricted Stock shall occur only on the applicable Vesting Date.

 

(b)                                 Notwithstanding
any other term or provision of this Agreement, in the event that the Recipient’s
Continuous Service is terminated by the Company without Cause as defined in the
Recipient’s Employment Agreement, dated as of
        , 2008 (the “Employment Agreement”), the shares of Restricted Stock
subject to this Agreement shall become immediately vested as of the date of the
termination of the Recipient’s Continuous Service.

 

(c)                                  Notwithstanding
any other term or provision of this Agreement, in the event that, following a
Change of Control Event (as defined below), which includes a material diminution
in the role of Knox Lawrence International, LLC and its ability to designate
certain members of the Board of Directors of the Company, Recipient’s position
with the Company is materially diminished or eliminated other than with Cause,
the shares of Restricted Stock subject to this Agreement shall become
immediately vested as of the date of Recipient’s diminution in position or
termination.

 

(d)                                 Notwithstanding
any other term or provision of this Agreement, the Board or the Committee shall
be authorized, in its sole discretion, based upon its review and evaluation of
the performance of the Recipient and of the Company, to accelerate the vesting
of any shares of Restricted Stock under this Agreement, at such times and upon
such terms and conditions as the Board or the Committee shall deem advisable.

 

(e)                                  For
purposes of this Agreement, the following terms shall have the meanings
indicated:

 

(i)                                   “Change of
Control Event” shall mean any of the following events:

 

(A)                                                                                   After
the effective date of this Agreement, any person or entity, directly or
indirectly, acquires beneficial ownership of voting stock, or acquires
irrevocable proxies or any combination of voting stock and irrevocable proxies,
representing over fifty percent (50%) of the voting securities of the Company;
provided, however, that an initial public offering, transaction with a special
purpose acquisition corporation or similar transaction will not be deemed a
Change of Control Event;

 

(B)                                                                                     The
Company consolidates or merges with or into another corporation, limited
liability company, partnership,

 

2

 

association,
or entity, or is otherwise reorganized, where the Company is not the surviving
corporation in such transaction; or

 

(C)                                                                                     All
or substantially all of the assets of the Company are sold or otherwise
transferred to or are acquired by any other corporation, limited liability
company, partnership, association, or other person, entity, or group.

 

(ii)                             “Non-Vested
Shares” means any portion of the Restricted Stock subject to
this Agreement that has not become vested pursuant to this Section 2.

 

(iii)                          “Vested
Shares” means any portion of the Restricted Stock subject to
this Agreement that is and has become vested pursuant to this Section 2.

 

3.                                      Delivery
of Restricted Stock.

 

(a)                                  One
or more stock certificates evidencing the Restricted Stock shall be issued in
the name of the Recipient but shall be held and retained by the Records
Administrator of the Company until the date (the “Applicable Date”) on which the shares (or a portion
thereof) subject to this Restricted Stock award become Vested Shares pursuant
to Section 2 hereof, subject to the provisions of Section 4 hereof.
All such stock certificates shall bear the following legends, along with such other
legends that the Board or the Committee shall deem necessary and appropriate or
which are otherwise required or indicated pursuant to any applicable
stockholders agreement:

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “ACT”) OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED
UNDER THE ACT OR STATE SECURITIES LAWS OR, IN THE OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH
OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

 

THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO SUBSTANTIAL VESTING AND OTHER
RESTRICTIONS AS SET FORTH IN THE RESTRICTED STOCK AGREEMENT BETWEEN THE ISSUER
AND THE ORIGINAL HOLDER OF THE SHARES, A COPY OF WHICH MAY BE OBTAINED AT
THE PRINCIPAL OFFICE OF THE ISSUER. SUCH RESTRICTIONS ARE BINDING ON
TRANSFEREES OF THESE SHARES, AND INCLUDE VESTING CONDITIONS WHICH MAY RESULT
IN THE COMPLETE FORFEITURE OF THE SHARES.

 

(b)                                 The
Recipient shall deposit with the Company stock powers or other instruments of
transfer or assignment, duly endorsed in blank with
signature(s) guaranteed, corresponding to

 

3

 

each certificate representing shares of
Restricted Stock until such shares become Vested Shares. If the Recipient shall
fail to provide the Company with any such stock power or other instrument of
transfer or assignment, the Recipient hereby irrevocably appoints the Secretary
of the Company as his attorney-in-fact, with full power of appointment and
substitution, to execute and deliver any such power or other instrument which
may be necessary to effectuate the transfer of the Restricted Stock (or
assignment of distributions thereon) on the books and records of the Company.

 

(c)                                  On
or after each Applicable Date, upon written request to the Company by the Recipient,
the Company shall promptly cause a new certificate or certificates to be issued
for and with respect to all shares that become Vested Shares on that Applicable
Date, which certificate(s) shall be delivered to the Recipient as soon as
administratively practicable after the date of receipt by the Company of the
Recipient’s written request. The new certificate or certificates shall continue
to bear those legends and endorsements that the Company shall deem necessary or
appropriate (including those relating to restrictions on transferability and/or
obligations and restrictions under the Securities Laws and/or the Stockholders
Agreement (if any)).

 

4.                                      Forfeiture
of Non-Vested Shares. If the
Recipient’s Continuous Service with the Company and the Related Entities is
terminated for any reason, any Shares of Restricted Stock that are not Vested
Shares, and that do not become Vested Shares pursuant to Section 2 hereof
as a result of such termination, shall be forfeited immediately upon such
termination of Continuous Service and revert back to the Company without any
payment to the Recipient. The Committee shall have the power and authority to
enforce on behalf of the Company any rights of the Company under this Agreement
in the event of the Recipient’s forfeiture of Non-Vested Shares pursuant to
this Section 4.

 

5.                                      Rights
with Respect to Restricted Stock.

 

(a)                                  Except
as otherwise provided in this Agreement, the Recipient shall have, with respect
to all of the shares of Restricted Stock, whether Vested Shares or Non-Vested
Shares, all of the rights of a holder of shares of common stock of the Company,
including without limitation (i) the right to vote such Restricted Stock,
(ii) the right to receive dividends, if any, as may be declared on the
Restricted Stock from time to time, and (iii) the rights available to all
holders of shares of common stock of the Company upon any merger,
consolidation, reorganization, liquidation or dissolution, stock split-up,
stock dividend or recapitalization undertaken by the Company; provided,
however, that all of such rights shall be subject to the terms, provisions,
conditions and restrictions set forth in this Agreement (including without
limitation conditions under which all such rights shall be forfeited). Any
Shares issued to the Recipient as a dividend with respect to shares of
Restricted Stock shall have the same status and bear the same legend as the
shares of Restricted Stock and shall be held by the Company, if the shares of
Restricted Stock that such dividend is attributed to is being so held, unless
otherwise determined by the Committee. In addition, notwithstanding any
provision to the contrary herein, any cash dividends declared with respect to
shares of Restricted Stock subject to this Agreement shall be held in escrow by
the Committee until such time as the shares of Restricted Stock that such cash dividends
are attributed to shall become Vested Shares, and in the event that such shares
of

 

4

 

Restricted Stock are subsequently forfeited,
the cash dividends attributable to such portion shall be forfeited as well.

 

(b)                                 If
at any time while this Agreement is in effect (or shares granted hereunder
shall be or remain unvested while Recipient’s Continuous Service continues and
has not yet terminated or ceased for any reason), there shall be any increase
or decrease in the number of issued and outstanding Shares of the Company
through the declaration of a stock dividend or through any recapitalization
resulting in a stock split-up, combination or exchange of such Shares, then and
in that event, the Board or the Committee shall make any adjustments it deems
fair and appropriate, in view of such change, in the number of shares of
Restricted Stock then subject to this Agreement. If any such adjustment shall
result in a fractional share, such fraction shall be disregarded.

 

(c)                                  Notwithstanding
any term or provision of this Agreement to the contrary, the existence of this
Agreement, or of any outstanding Restricted Stock awarded hereunder, shall not
affect in any manner the right, power or authority of the Company to make,
authorize or consummate: (i) any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its
business; (ii) any merger, consolidation or similar transaction by or of
the Company; (iii) any offer, issue or sale by the Company of any capital
stock of the Company, including any equity or debt securities, or preferred or
preference stock that would rank prior to or on parity with the Restricted
Stock and/or that would include, have or possess other rights, benefits and/or
preferences superior to those that the Restricted Stock includes, has or
possesses, or any warrants, options or rights with respect to any of the
foregoing; (iv) the dissolution or liquidation of the Company;
(v) any sale, transfer or assignment of all or any part of the stock,
assets or business of the Company; or (vi) any other corporate
transaction, act or proceeding (whether of a similar character or otherwise).

 

6.                                      Restrictions
While Restricted Stock is Not Registered. The Restricted Stock
specified in Section 1 and (a) all shares of the Company’s capital
stock received as a dividend or other distribution upon such Restricted Stock,
and (b) all shares of capital stock or other securities of the Company
into which such Restricted Stock may be changed or for which such shares shall
be exchanged, whether through reorganization, recapitalization, stock split-ups
or the like, shall be subject to the provisions of this Section 6 only at
those times that the Shares are not registered under the Securities Exchange
Act of 1934, as amended (such times during which the shares are not so
registered hereinafter being referred to as the “Restricted Period”).

 

(a)                                  No Sale or Pledge of Restricted Stock. Except as otherwise provided herein,
Recipient agrees and covenants that during the Restricted Period he or she
shall not sell, pledge, encumber or otherwise transfer or dispose of, and shall
not permit to be sold, encumbered, attached or otherwise disposed of or
transferred in any manner, either voluntarily or by operation of law (all
hereinafter collectively referred to as “transfers”), all or any portion of the
Restricted Shares or any interest therein except for the Vested Shares which
may be transferred in accordance with and subject to the terms of this
Section 6.

 

(b)                                 Voluntary Transfer Repurchase Option. If Recipient desires to effect a
voluntary transfer of any of the Vested Shares during the Restricted Period,
Recipient shall first give written notice to the Company of such intent to
transfer (the “Offer
Notice”)  specifying
(i) the

 

5

 

number of the Vested Shares (the “Offered Shares”)  and the date of the proposed
transfer (which shall not be less than thirty (30) days after the giving of the
Offer Notice), (ii) the name, address, and principal business of the
proposed transferee (the “Transferee”),  and (iii) the
price and other terms and conditions of the proposed transfer of the Offered
Shares to the Transferee. The Offer Notice by Recipient shall constitute an
offer to sell all, but not less than all, of the Offered Shares, at the price
and on the terms specified in such Offer Notice, to the Company and/or its
designated purchaser. If the Company desires to accept Recipient’s offer to
sell, either for itself or on behalf of its designated purchaser, the Company
shall signify such acceptance by written notice to Recipient within thirty (30)
days following the giving of the Option Notice. Failing such acceptance,
Recipient’s offer shall lapse on the thirty-first day following the giving of
the Option Notice. With such written acceptance, the Company shall designate a
day not later than the later of (i) twenty (20) days following the date of
giving its notice of acceptance, or (ii) the closing date in the Offer
Notice, on which the Company or its designated purchaser shall deliver the
purchase price of the Offered Shares (in the same form as provided in the Offer
Notice) and Recipient shall deliver to the Company or its designated Purchaser,
as applicable, all certificates evidencing the Offered Shares endorsed in blank
for transfer or with separate stock powers endorsed in blank for transfer. The
Company may in its sole and absolute discretion, notify the Recipient within
thirty-one days following the giving of the Option Notice that it does not
permit the transfer of the Offered Shares to the Transferee pursuant to the
terms and conditions set forth in the Option Notice in which event any such
transfer or attempted transfer by the Recipient to the Transferee shall be null
and void. Upon the lapse without acceptance by the Company of Recipient’s offer
to sell the Offered Shares, and unless the Company shall provide written notice
to the Recipient within thirty-one days following the giving of the Option Notice
that it will not permit the transfer of the Offered Shares to the Transferee
pursuant to the terms and conditions set forth in the Option Notice, Recipient
shall be free to transfer the Offered Shares not purchased by the Company or
the designated purchaser to the Transferee (and no one else), for a price and
on terms and conditions which are no more favorable to the Transferee than
those set forth in the Offer Notice, for a period of thirty days thereafter,
but after such period the restrictions of this Section 6 shall again apply
to the Vested Shares. The Offered Shares so transferred by Recipient to the
Transferee shall continue to be subject to all of the terms and conditions of
this Section 6 and the Company shall have the right to require, as a condition
of such transfer, than the Transferee execute an agreement substantially in the
form and content of the provisions of this Section 6, as well as any
voting agreement and/or shareholders agreement required by the Company.

 

(c)                                  Involuntary Transfer Repurchase Option. Whenever, during the Restricted Period,
Recipient has any notice or knowledge of any attempted, pending, or consummated
involuntary transfer or lien or charge upon any of the Vested Shares, whether
by operation of law or otherwise, Recipient shall give immediate written notice
thereof to the Company. Whenever the Company has any other notice or knowledge
of any such attempted, impending, or consummated involuntary transfer, lien, or
charge, it shall give written notice thereof to the Recipient. In either case,
Recipient agrees to disclose forthwith to the Company all pertinent information
in his possession relating thereto. If during the Restricted Period any of the
Vested Shares are subjected to any such involuntary transfer, lien, or charge,
the Company and its designated purchaser shall at all times have the immediate
and continuing option to purchase such of the Vested Shares upon notice by the
Company to Recipient or other record holder at a

 

6

 

price and on terms determined according to
Section 6(e) below, and any of the Vested Shares so purchased by the
Company or its designated purchaser shall in every case be free and clear of
such transfer, lien, or charge.

 

(d)                                 Excepted Transfers. The provisions of Sections
6(a) and (b) shall not apply to a voluntary assignment, bequest or
testamentary transfer, in trust or otherwise, by the Recipient (or upon the
Recipient’s death, a subsequent transfer incident to such death pursuant to a will
or a trust, or occurring by operation of law, effected by the heirs, personal
representatives, or trustees of the Recipient having authority to transfer the
Vested Shares in question), which is (i) to or for the benefit of any
member of the Recipient’s immediate family, specifically the Recipient’s
spouse, parents and grandparents, children and their direct descendants,
brothers and sisters, nieces, nephews and their direct descendants and the
spouses of any of them; (ii) to a corporation, partnership, limited liability
company or other business entity, at least fifty-one percent (51%) of each
class of the voting stock or other voting interests of which is owned by the
Recipient and/or one or more of the individuals described in clause
(i) above; or (iii) to a trust, the beneficiaries of which are any of
the individuals or entities described in clauses (i) or (ii) above.
In the event that the Recipient transfers any Vested Shares pursuant to this
Section 6(d), the Recipient shall continue to be subject to all of the terms
and provisions of this Section 6 with respect to any remaining present or
future interest whatsoever he may have in the transferred Vested Shares, and,
further provided that any Vested Shares transferred pursuant to this subsection
(d) shall continue to be subject to the restrictions contained in this
Section 6 and the transferee of any such Vested Shares shall likewise be
subject to all such terms and conditions of this Section 6 as though such
transferee were a party hereto.

 

(e)                                  Repurchase Price. For purposes of
Section 6(c) hereof, the per share purchase price of Vested Shares
shall be an amount equal to the fair market value of such share, determined by
the Board of Directors of the Company as of any date determined by the Board of
Directors that is not more than one year prior to the date of the event giving
rise to the Company’s right to purchase such Vested Shares. Any determination
of fair market value made by the Board of Directors of the Company shall be
binding and conclusive on all parties unless shown to have been made in an
arbitrary and capricious manner. The purchase price shall, at the option of the
Company, be payable in cash or in the form of the Company’s promissory note
payable in up to three equal annual installments commencing 12 months after the
acquisition by the Company (“Acquisition Date”)  of the Vested Shares, together with
interest on the unpaid balance thereof at the rate equal to the prime rate of
interest of Citibank, N.A. on the Acquisition Date.

 

7.                                      Transferability.
Unless otherwise determined by the Committee, the shares of Restricted Stock
are not transferable unless and until they become Vested Shares in accordance
with this Agreement, otherwise than by will or under the applicable laws of
descent and distribution. The terms of this Agreement shall be binding upon the
executors, administrators, heirs, successors and assigns of the Recipient.
Except as otherwise permitted pursuant to the first sentence of this Section,
any attempt to effect a Transfer of any shares of Restricted Stock prior to the
date on which the shares become Vested Shares shall be void ab initio. For
purposes of this Agreement, “Transfer” shall mean any sale, transfer,
encumbrance, gift, donation, assignment, pledge, hypothecation, or other
disposition, whether similar or dissimilar to those previously enumerated,

 

7

 

whether voluntary or involuntary, and including, but not limited to,
any disposition by operation of law, by court order, by judicial process, or by
foreclosure, levy or attachment.

 

8.                                      Tax Matters; Section 83(b) Election.

 

(a)                                  If the Recipient properly elects, within
thirty (30) days of the Date of Grant, to include in gross income for federal
income tax purposes an amount equal to the fair market value (as of the Date of
Grant) of the Restricted Stock pursuant to Section 83(b) of the Internal
Revenue Code of 1986, as amended (the “Code”), the
Recipient shall make arrangements satisfactory to the Company to pay to the
Company any federal, state or local income taxes required to be withheld with
respect to the Restricted Stock. If the Recipient shall fail to make such tax
payments as are required, the Company shall, to the extent permitted by law,
have the right to deduct from any payment of any kind (including without
limitation, the withholding of any Shares that otherwise would be issued to the
Recipient under this Agreement) otherwise due to the Recipient any federal,
state or local taxes of any kind required by law to be withheld with respect to
the Restricted Stock.

 

(b)                                 If the Recipient does not properly make the
election described in Section 8(a) above, the Recipient
shall, no later than the date or dates as of which the restrictions referred to
in this Agreement hereof shall lapse, pay to the Company, or make arrangements
satisfactory to the Committee for payment of, any federal, state or local taxes
of any kind required by law to be withheld with respect to the Restricted Stock
(including without limitation the vesting thereof), and the Company shall, to
the extent permitted by law, have the right to deduct from any payment of any
kind (including without limitation, the withholding of any Shares that
otherwise would be distributed to the Recipient under this Agreement) otherwise
due to Recipient any federal, state, or local taxes of any kind required by law
to be withheld with respect to the Restricted Stock.

 

(c)                                  The Recipient may satisfy the withholding
requirements with respect to the Restricted Stock pursuant to any one or
combination of the following methods:

 

(i)                                payment in cash; or

 

(ii)                             if and to the extent permitted by the
Committee, payment by surrendering unrestricted previously held Shares which
have a value equal to the required withholding amount or the withholding of
Shares that otherwise would be deliverable to the Recipient pursuant to this
Award. The Recipient may surrender Shares either by attestation or by delivery
of a certificate or certificates for shares duly endorsed for transfer to the
Company, and if required with medallion level signature guarantee by a member
firm of a national stock exchange, by a national or state bank (or guaranteed
or notarized in such other manner as the Committee may require).

 

(d)                                 Tax consequences on the Recipient (including
without limitation federal, state, local and foreign income tax consequences)
with respect to the Restricted Stock (including without limitation the grant,
vesting and/or forfeiture thereof) are the sole responsibility of the
Recipient. The Recipient shall consult with his or her own personal
accountant(s) and/or tax advisor(s) regarding these matters, the making of
a Section 83(b) election, and the Recipient’s filing, withholding and
payment (or tax liability) obligations.

 

8

 

9.                                      Amendment,
Modification & Assignment; Non-Transferability. This Agreement
may only be modified or amended in a writing signed by the parties hereto. No
promises, assurances, commitments, agreements, undertakings or representations,
whether oral, written, electronic or otherwise, and whether express or implied,
with respect to the subject matter hereof, have been made by either party which
are not set forth expressly in this Agreement. Unless otherwise consented to in
writing by the Company, in its sole discretion, this Agreement (and Recipient’s
rights hereunder) may not be assigned, and the obligations of Recipient
hereunder may not be delegated, in whole or in part. The rights and obligations
created hereunder shall be binding on the Recipient and his heirs and legal
representatives and on the successors and assigns of the Company.

 

10.                               Recipient’s
Representations. The Recipient shall, if required by the Company,
concurrently with the execution of this Agreement, deliver to the Company his
Investment Representation Statement in the form attached to this Agreement as
Exhibit A or in such other form as the Company may request.

 

11.                               Complete
Agreement. This Agreement (together with those agreements and documents
expressly referred to herein, for the purposes referred to herein) embody the
complete and entire agreement and understanding between the parties with
respect to the subject matter hereof, and supersede any and all prior promises,
assurances, commitments, agreements, undertakings or representations, whether
oral, written, electronic or otherwise, and whether express or implied, which
may relate to the subject matter hereof in any way.

 

12.                               Miscellaneous.

 

(a)                                  No Right to Continuous Service. This Agreement and the grant of
Restricted Stock hereunder shall not confer, or be construed to confer, upon
the Recipient any right to Continuous Service with the Company or any Related
Entity.

 

(b)                                 No Limit on Other Compensation Arrangements. Nothing contained in this Agreement
shall preclude the Company or any Related Entity from adopting or continuing in
effect other or additional compensation plans, agreements or arrangements, and
any such plans, agreements and arrangements may be either generally applicable
or applicable only in specific cases or to specific persons.

 

(c)                                  Severability. If any term or provision of this
Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in
any jurisdiction or under any applicable law, rule or regulation, then
such provision shall be construed or deemed amended to conform to applicable
law (or if such provision cannot be so construed or deemed amended without
materially altering the purpose or intent of this Agreement and the grant of
Restricted Stock hereunder, such provision shall be stricken as to such
jurisdiction and the remainder of this Agreement and the award hereunder shall
remain in full force and effect).

 

(d)                                 No Trust or Fund Created. Neither this Agreement nor the grant
of Restricted Stock hereunder shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or
any Related Entity and the Recipient or any other person. To the extent that
the Recipient or any other person acquires a right to receive payments

 

9

 

from the Company or any Related Entity
pursuant to this Agreement, such right shall be no greater than the right of
any unsecured general creditor of the Company.

 

(e)                                  Law Governing. This Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
Delaware (without reference to the conflict of laws rules or principles
thereof).

 

(f)                                    Interpretation. The Recipient accepts the Restricted
Stock subject to all of the terms, provisions and restrictions of this
Agreement and the Plan. The undersigned Recipient hereby accepts as binding,
conclusive and final all decisions or interpretations of the Board or the
Committee upon any questions arising under this Agreement or the Plan.

 

(g)                                 Headings. Section, paragraph and other headings and captions are
provided solely as a convenience to facilitate reference. Such headings and
captions shall not be deemed in any way material or relevant to the
construction, meaning or interpretation of this Agreement or any term or
provision hereof.

 

(h)                                 Notices. Any notice under this Agreement shall be in writing and shall
be deemed to have been duly given when delivered personally or when deposited
in the United States mail, registered, postage prepaid, and addressed, in the
case of the Company, to the Company’s President at 301 Gregson Drive, Cary,
North Carolina 27511, or if the Company should move its principal office, to
such principal office, and, in the case of the Recipient, to the Recipient’s
last permanent address as shown on the Company’s records, subject to the right
of either party to designate some other address at any time hereafter in a
notice satisfying the requirements of this Section.

 

(i)                                     Non-Waiver of Breach. The waiver by any party hereto of
the other party’s prompt and complete performance, or breach or violation, of
any term or provision of this Agreement shall be effected solely in a writing
signed by such party, and shall not operate nor be construed as a waiver of any
subsequent breach or violation, and the waiver by any party hereto to exercise
any right or remedy which he or it may possess shall not operate nor be
construed as the waiver of such right or remedy by such party, or as a bar to
the exercise of such right or remedy by such party, upon the occurrence of any
subsequent breach or violation.

 

(j)                                     Counterparts. This Agreement may be executed in
two or more separate counterparts, each of which shall be an original, and all
of which together shall constitute one and the same agreement.

 

[Signatures
on following page]

 

10

 

IN WITNESS
WHEREOF, the parties hereto, intending to be legally bound, have executed this
Restricted Stock Agreement as of the date first written above.

 

 

	
   

  	
  CONSONUS TECHNOLOGIES, INC., a Delaware

  
	
   

  	
  corporation

  

 

	
   

  	
  By:

  	
  /s/ Michael G. Shook

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  President May 12, 2008 

  
					

 

 

	
  Agreed and Accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  RECIPIENT:

  	
   

  

 

 

	
  By:

  	
  /s/ Robert McCarthy

  	
   

  
	
   

  	
  Robert McCarthy 

  	
   

  

 

11

 

EXHIBIT
A

 

INVESTMENT
REPRESENTATION STATEMENT

 

RECIPIENT:

 

COMPANY:

 

SECURITY:

 

AMOUNT:

 

DATE:

 

In connection with the grant of the above-listed Securities, I, the
Recipient, represent to the Company the following:

 

1.                                      I am aware of the Company’s business affairs
and financial condition, and have acquired sufficient information about the
Company to reach an informed and knowledgeable decision to acquire the
Securities. I am receiving these Securities for my own account for investment
purposes only and not with a view to, or for the resale in connection with, any
“distribution” thereof for purposes of the Securities Act of 1933, as amended
(the “Securities Act”).

 

2.                                      I understand that the Company’s issuance of
the Securities has not been registered under the Securities Act in reliance
upon a specific exemption therefrom, which exemption depends upon, among other
things, the bona fide nature of my investment intent as expressed herein. In
this connection, I understand that, in the view of the Securities and Exchange
Commission (the “SEC”), the statutory basis for such exemption may be
unavailable if my representation was predicated solely upon a present intention
to hold these Securities for the minimum capital gains period specified under
tax statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future.

 

3.                                      I further understand that the Securities must
be held indefinitely unless the transfer is subsequently registered under the
Securities Act or unless an exemption from registration is otherwise available.
Moreover, I understand that the Company is under no obligation to register any
transfer of the Securities. In addition, I understand that the certificate
evidencing the Securities will be imprinted with a legend which prohibits the
transfer of the Securities unless registered or such registration is not
required in the opinion of counsel for the company.

 

	
   

  	
  /s/ Robert McCarthy

  
	
   

  	
   

  
	
  Dated:

  	
  5/12/08 

  	
   

  	
   

  
				

 

12

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