Document:

REGULATION
S TEMPORARY GLOBAL NOTE DUE 2012

    

    THIS NOTE
IS A TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED, THAT IS EXCHANGEABLE FOR A PERMANENT GLOBAL
NOTE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH HEREIN.

     

    THIS NOTE
HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES
ACT”), ANY STATE SECURITIES LAWS IN THE UNITED STATES OR THE SECURITIES
LAWS OF ANY OTHER JURISDICTION. THE HOLDER HEREOF, BY ITS ACCEPTANCE OF THIS
NOTE, REPRESENTS THAT IT HAS OBTAINED THIS NOTE IN A TRANSACTION IN COMPLIANCE
WITH THE SECURITIES ACT, ALL OTHER APPLICABLE LAWS OF THE UNITED STATES OR ANY
OTHER JURISDICTION. THE HOLDER HEREOF, BY ITS ACCEPTANCE OF THIS NOTE, FURTHER
REPRESENTS, ACKNOWLEDGES AND AGREES THAT IT WILL NOT REOFFER, RESELL, PLEDGE OR
OTHERWISE TRANSFER THIS PURCHASE MONEY NOTE (OR ANY INTEREST HEREIN) EXCEPT IN
COMPLIANCE WITH THE SECURITIES ACT, AND ALL OTHER APPLICABLE LAWS OF ANY
JURISDICTION AND ONLY TO A TRANSFEREE THAT IS NOT A U.S. PERSON (AS DEFINED IN
REGULATION S OF THE SECURITIES ACT) AND IS ACQUIRING THIS NOTE IN AN OFFSHORE
TRANSACTION (AS DEFINED IN REGULATION S OF THE SECURITIES ACT) IN COMPLIANCE
WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT. PURSUANT TO
A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE AND IS CURRENT OR PURSUANT
TO A SPECIFIC EXEMPTION FROM REGISTRATION THAT IS AVAILABLE UNDER THE SECURITIES
ACT.

     

    THIS NOTE
IS NOT TRANSFERABLE EXCEPT IN ACCORDANCE WITH THE RESTRICTIONS DESCRIBED HEREIN.
ANY SALE OR TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND
EFFECT, WILL BE VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO
THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUER
OR ANY INTERMEDIARY. THIS NOTE IS NOT EXCHANGEABLE FOR DEFINITIVE SECURITIES
UNTIL THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD SPECIFIED IN
RULE 903(b)(3) AND UNTIL CERTIFICATION OF BENEFICIAL OWNERSHIP OF THE SECURITIES
BY A NON-US PERSON OR A U.S. PERSON WHO PURCHASED SECURITIES IN A TRANSACTION
THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. EACH TRANSFEROR OF
THIS NOTE AGREES TO PROVIDE NOTICE OF THE TRANSFER RESTRICTIONS SET FORTH HEREIN
TO THE TRANSFEREE.

     

    THE
FAILURE TO PROVIDE THE ISSUER, WITH THE APPLICABLE U.S. FEDERAL INCOME TAX
CERTIFICATIONS (GENERALLY, AN INTERNAL REVENUE SERVICE FORM W-8 (OR SUCCESSOR
APPLICABLE FORM) IN THE CASE OF A PERSON THAT IS NOT A “UNITED STATES PERSON”
WITHIN THE MEANING OF SECTION 7701(A)(30) OF THE CODE) MAY RESULT IN THE
IMPOSITION OF U.S. FEDERAL BACK-UP WITHHOLDING UPON PAYMENTS TO THE HOLDER IN
RESPECT OF THIS NOTE.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    CLEANTECH
INNOVATIONS, INC.

    Liaoning
Creative Bellows Co., Ltd.

    Liaoning
Creative Wind Power Equipment Co., Ltd.

    

    10%
Promissory Note

    

    
      	
              Issuance
      Date: December 13, 2010

            	
              New
      York, NY

            
	
              Principal
      Amount: U.S. $10,000,000.00

            	 
      

    

    

    For value
received, CleanTech Innovations, Inc., a Nevada corporation (the “Company”),
Liaoning Creative Bellows Co., Ltd. and Liaoning Creative Wind Power Equipment
Co., Ltd., each such subsidiary organized under the laws of the People’s
Republic of China., a company organized under the Peoples Republic of China
(collectively, jointly and severally, the “Maker”), hereby promises to pay to
the order of NYGG (Asia) Ltd., a British Virgin Islands company with an address
of 12th Floor
Ruttonjee House, 11 Duddell Street, Central, Hong Kong (together with its
successors, representatives, and permitted assigns, and designees the “Holder”),
in accordance with the terms hereinafter provided and subject to the terms and
conditions of the Loan Agreement by and between the Maker and the Holder, dated
the even date hereof (the “Loan Agreement”), the Principal Amount of TEN MILLION
U.S. DOLLARS AND ZERO CENTS (U.S.$10,000,000.00), together with interest
thereon.

    

    All
payments under or pursuant to this Note shall be made in United States Dollars
(“USD”) or, at the option of the Holder, in Renminbi (“RMB”) at an exchange rate
of RMB 6.90 to USD 1.00 in immediately available funds to the Holder or the
designee of the Holder at the address of the Holder first set forth above or at
such other place as the Holder may designate from time to time in writing to the
Maker or by wire transfer of funds in USD or RMB, at the option of the Holder,
to the Holder’s or the Holder’s designee’s account, as requested by the Holder
in writing. The outstanding principal balance of this Note, together with all
accrued and unpaid interest, shall be due and payable in full on March 1, 2012
(the “Maturity Date”), or at such earlier time as provided herein.

    

    ARTICLE
I

    PAYMENT

    

    Section
1.1        Interest. Beginning on the
date of this Note (the “Issuance Date”), the outstanding principal balance of
this Note shall bear interest at a rate per annum equal to ten percent (10%),
payable in USD or RMB at an exchange rate of RMB 6.90 to USD 1.00 at the option
of the Holder, and payable quarterly in advance commencing on the date hereof
and thereafter every three (3) months from the date hereof (the “Interest
Payment Date”) on the following dates: March 13, 2011, June 13, 2011, September
13, 2011, December 13, 2011, and the final payment due on the Maturity Date.
Interest shall be computed on the basis of a 365-day year and shall accrue daily
commencing on the Issuance Date. Furthermore, upon the occurrence of an Event of
Default (as defined in Section 2.1 hereof), the Maker will pay interest to the
Holder, payable on demand, on the outstanding principal balance of Note from the
date of the Event of Default until such Event of Default is cured at the rate
per annum of the lesser of twenty-four percent (24%) accrued daily and the
maximum applicable legal rate per annum.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Section
1.2        Payment of Principal;
Prepayment. The Principal Amount hereof shall be paid in full on the earliest of
(i) the Maturity Date, (ii) the due date of any Mandatory Prepayment (as defined
below) (such prepayment pursuant to this clause (ii) to be in part if sufficient
funds are not available for application pursuant to Section 1.5 hereof) or (iii)
upon acceleration of this Note in accordance with the terms hereof. Any amount
of principal repaid hereunder may not be re-borrowed. The Maker may prepay all
or, subject to Holder preapproval, any portion of the Principal Amount of this
Note without premium or penalty; provided, however, any
quarterly prepayment of interest shall not be prorated or refunded to Maker if
the Principal Amount is paid in full after an interest payment is
made.

    

    Section
1.3        Payment on Non-Business Days.
Whenever any payment to be made shall be due on a Saturday, Sunday or a holiday
recognized by the branch offices of JPMorgan Chase & Co. located in New York
City, NY, such payment may be due on the next succeeding day (a “Business
Day”).

    

    Section
1.4        Use of Proceeds. The Maker
shall use the proceeds of this Note only for general working capital and
pre-payment of all outstanding principal and interest on the existing $1,500,000
loan, dated October 14, 2010, from Strong Growth Capital, Ltd.

    

    Section
1.5        Mandatory Prepayment.
Notwithstanding anything to the contrary contained herein, upon the earliest to
occur of (i) Maker’s receipt of any financing from any source in excess of
$10,000,000 in one or a series of transactions, (ii) any Change of Control of
the Maker, (iii) any material negative change of the Maker’s business and
financial position, as reasonably determined by the Holder, (iv) any change to
the shareholdings of any person under a 3-year share lockup agreement entered by
certain insiders of the Maker or (v) departure of any senior members of
management of the Maker that will negatively impact the business of the Maker,
as reasonably determined by the Holder, in each case, the entire outstanding
Principal Amount of this Note, and all interest due thereon shall become
immediately payable upon demand of the Holder (“Mandatory
Prepayment”).

    

    ARTICLE
II

    EVENTS OF
DEFAULT; REMEDIES

    

    Section
2.1        Events of Default. Unless
waived in writing by the Holder, the occurrence of any of the following events
shall be an “Event of Default” under this Note:

    

    (a)          any
default in the payment of (1) the Principal Amount hereunder when due, or (2)
interest on this Note if five (5) Business Days after the date when the same
shall become due and payable (whether on the Maturity Date, Interest Payment
Date, the date of any mandatory prepayment, by acceleration or otherwise);
or

    

    (b)          the
Maker shall fail to observe or perform any other covenant or agreement contained
in this Note or the Loan Agreement; or

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (c)          any
material representation or warranty made by the Maker herein or in the Loan
Agreement shall prove to have been false or incorrect or inaccurate or breached
in a material respect on the date as of which made; or

    

    (d)          the
Maker shall (i) apply for or consent to the appointment of, or the taking of
possession by, a receiver, custodian, trustee or liquidator of itself or of all
or a substantial part of its property or assets, (ii) make a general assignment
for the benefit of its creditors, (iii) commence a voluntary case under the
United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic), (iv) file a petition
seeking to take advantage of any bankruptcy, insolvency, moratorium,
reorganization or other similar law affecting the enforcement of creditors’
rights generally, (v) acquiesce in writing to any petition filed against it in
an involuntary case under the United States Bankruptcy Code (as now or hereafter
in effect) or under the comparable laws of any jurisdiction (foreign or
domestic), (vi) issue a notice of bankruptcy or winding down of its operations
or issue a press release regarding same or (vii) take any action under the laws
of any jurisdiction (foreign or domestic) analogous to any of the foregoing;
or

    

    (e)          a
proceeding or case shall be commenced in respect of the Maker, without its
application or consent, in any court of competent jurisdiction, seeking (i) the
liquidation, reorganization, moratorium, dissolution, winding up, or composition
or readjustment of its debts, (ii) the appointment of a trustee, receiver,
custodian, liquidator or the like of it or of all or any substantial part of its
assets in connection with the liquidation or dissolution of the Maker or (iii)
similar relief in respect of it under any law providing for the relief of
debtors, and such proceeding or case described in clause (i), (ii) or (iii)
shall continue undismissed, or unstayed and in effect, for a period of thirty
(30) days or any order for relief shall be entered in an involuntary case under
the United States Bankruptcy Code (as now or hereafter in effect) or under the
comparable laws of any jurisdiction (foreign or domestic) against the Maker or
action under the laws of any jurisdiction (foreign or domestic) analogous to any
of the foregoing shall be taken with respect to the Maker and shall continue
undismissed, or unstayed and in effect for a period of thirty (30)
days.

    

    Section
2.2        Remedies Upon An Event of
Default. If an Event of Default shall have occurred and shall be continuing, the
Holder of this Note may, at any time, at its option, declare the entire unpaid
principal balance of this Note, together with all interest accrued hereon, due
and payable, and thereupon, the same shall be accelerated and so due and
payable, without presentment, demand, protest or notice, all of which are hereby
expressly unconditionally and irrevocably waived by the Maker. The Maker shall
pay to the Holder such additional amounts as shall be sufficient to pay the
Holder's actual and reasonable costs and expenses of collection, including
without limitation, reasonably attorney's fees and expenses. The remedies
provided in this Note shall be cumulative and in addition to all other remedies
available under this Note, at law or in equity (including, without limitation, a
decree of specific performance and/or other injunctive relief), no remedy
contained herein shall be deemed a waiver of compliance with the provisions
giving rise to such remedy and nothing herein shall limit the Holder’s right to
pursue actual damages for any failure by the Maker to comply with the terms of
this Note.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Section
2.3        Definition of Change of
Control. For the purposes of this Note, a “Change of Control" means, with
respect to the Maker, the occurrence of any of the following
events:

    

    (i)       the
acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or
more of the combined voting power of the then outstanding common stock, par
value $.00001 per share (the “Common Stock”), of the Company or any subsidiary;
provided, however, that for
purposes of this Section 2.3(i), the following acquisitions will not constitute
a Change of Control: (A) any issuance of Common Stock of the Company directly
from the Company that is approved by the Board of Directors of the Company (the
“Board of Directors”), (B) any acquisition by the Company of Common Stock of the
Company, (C) any acquisition of Common Stock of the Company by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
Subsidiary or (D) any acquisition of Common Stock of the Company pursuant to a
Business Combination after Maker has complied with Section 1.5
hereof.

    

    (ii)      individuals
who, as of the date hereof, constitute the Board of Directors, cease for any
reason to constitute at least a majority of the Board of Directors;

    

    (iii)     consummation
of a reorganization, merger or consolidation, a sale or other disposition of all
or substantially all of the assets of the Company, or other transaction (each, a
"Business Combination"); or

    

    (iv)     approval
by the stockholders of the Company of a complete liquidation or dissolution of
the Company.

    

    ARTICLE
III

    MISCELLANEOUS

    

    Section
3.1        Notices. Any notice, demand,
request, waiver or other communication required or permitted to be given
hereunder shall be in writing and shall be effective (a) upon hand delivery, at
the address set forth on the signature page hereto (in the case of the Maker) or
above (in the case of the Holder) (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day
following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received), (b) on the second business
day following the date of mailing by an internationally recognized overnight
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur or (c) by email, or other
electronic means to the email address listed below. Copies of such notice shall
be delivered by any of the foregoing means to Robert Newman, Esq., The Newman
Law Firm, PLLC, 44 Wall Street, 20th Floor,
New York, NY 10005, email (Rnewman@nlawglobal.com), and such delivery shall
constitute effective notice to the Maker hereunder.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Section
3.2        Governing Law; Drafting;
Representation. This Note shall be governed by and construed in accordance with
the internal laws of the State of New York, without giving effect to any of the
conflicts of law principles which would result in the application of the
substantive law of another jurisdiction. This Note shall not be interpreted or
construed with any presumption against the party causing this Note to be
drafted.

    

    Section
3.3        Headings. Article and section
headings in this Note are included herein for purposes of convenience of
reference only and shall not constitute a part of this Note for any other
purpose.

    

    Section
3.4        Binding Effect; Amendments.
The obligations of the Maker and the Holder set forth herein shall be binding
upon the successors and assigns of each such party. This Note may not be
modified or amended in any manner except in writing executed by the Maker and
the Holder.

    

    Section
3.5        Consent to Jurisdiction. Each
of the Maker and the Holder (i) hereby irrevocably submits to the exclusive
jurisdiction of the United States District Court sitting in the Southern
District of New York and the courts of the State of New York located in New York
county for the purposes of any suit, action or proceeding arising out of or
relating to this Note and (ii) hereby waives, and agrees not to assert in any
such suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of such court, that the suit, action or proceeding is brought
in an inconvenient forum or that the venue of the suit, action or proceeding is
improper. Each of the Maker and the Holder consents to process being served in
any such suit, action or proceeding by mailing a copy thereof to such party at
the address in effect for notices to it hereunder and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing in this Section shall affect or limit any right to serve process in any
other manner permitted by law.

    

    Section
3.6        Failure or Indulgence Not
Waiver. No failure or delay on the part of the Holder in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or
privilege.

    

    Section
3.7        Maker Waivers; Dispute
Resolution. Except as otherwise specifically provided herein, the Maker and all
others that may become liable for all or any part of the obligations evidenced
by this Note, hereby waive presentment, demand, notice of nonpayment, protest
and all other demands and notices in connection with the delivery, acceptance,
performance and enforcement of this Note, and do hereby consent to any number of
renewals of extensions of the time or payment hereof and agree that any such
renewals or extensions may be made without notice to any such persons and
without affecting their liability herein and do further consent to the release
of any person liable hereon, all without affecting the liability of the other
persons, firms or Maker liable for the payment of this Note, AND DO HEREBY WAIVE
TRIAL BY JURY.

    

    (a)          No
delay or omission on the part of the Holder in exercising its rights under this
Note, or course of conduct relating hereto, shall operate as a waiver of such
rights or any other right of the Holder, nor shall any waiver by the Holder of
any such right or rights on any one occasion be deemed a waiver of the same
right or rights on any future occasion.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (b)          THE
MAKER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A
COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE LAW, HEREBY
WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY
WHICH THE HOLDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

    

    IN WITNESS WHEREOF, the Maker
has caused this Note to be duly executed by its duly authorized officer as of
the date first above indicated.

    

    
      
        	
                CLEANTECH
      INNOVATIONS, INC.

              
	 
      
	
                By:

              	
                /s/ Bei Lu

              
	 
      	
                 Name:
      Bei Lu

              
	 
      	
                 Title:
      President and Chief Executive Officer

              
	 
      
	
                LIAONING
      CREATIVE BELLOWS CO., LTD.

              
	 
      
	
                By:

              	
                /s/ Bei Lu

              
	 
      	
                 Name:
      Bei Lu

              
	 
      	
                 Title:
      President and Chief Executive Officer

              
	 
      	 
      
	
                LIAONING
      CREATIVE WIND POWER

                EQUIPMENT
      CO., LTD

              
	 
      
	
                By:

              	
                /s/ Bei Lu

              
	 
      	
                 Name:
      Bei Lu

              
	 
      	
                 Title:
      President and Chief Executive Officer

              
	 
      	 
      
	
                Address
      of Makers:

              
	
                C
      District, Maoshan Industry Park,

              
	
                Tieling
      Economic Development Zone, Tieling,

              
	
                Liaoning
      Province, China 112616

              
	
                Email:
      beilu@ctiproduct.com

              

      

    

     

    
      
         

      

      
        7ATS
Corporation

    7925
Jones Branch Drive

    McLean,
VA 22102

    

    December
15, 2010

    

    Dr.
Edward H. Bersoff

    7925
Jones Branch Dr.

    McLean,
VA 22102

    

    Dear
Ed,

    

    We are
pleased that you have agreed to serve ATS Corporation (the “Corporation”) as the
non-executive Chairman of its Board of Directors (the “Board”).  This
letter confirms the terms of your service as non-executive Chairman, to take
effect on January 1, 2011 and to continue until June 30, 2012 or the date of the
Corporation’s 2012 annual stockholders’ meeting, whichever is later, provided that your
service as non-executive Chairman of the Board will also terminate upon the
effective date of a  “Change in Control” (as defined on Exhibit A
hereto) if earlier than the later of June 30, 2012 or the date of the
Corporation’s 2012 annual stockholders’ meeting.  The date of
termination of your service as non-executive Chairman of the Board pursuant to
the preceding sentence is hereinafter referred to as the “Termination Date.”
You will remain within Class I of the Board, currently slated for re-election in
2012.  Your term as a director shall continue subject to the
provisions of this letter or until your successor is duly elected and
qualified.

    

    Duties

    

               As
the non-executive Chairman, you will be expected to attend and chair Board and
stockholder meetings and carry out the other duties normally expected of the
chairman of a board of directors.  You will also serve on such
committees of the Board as determined from time to time by the
Board.  You agree to spend such time as may be reasonably necessary to
perform the duties of the non-executive Chairman of the Board, subject to the
below description of transition arrangements.

    

    Remuneration and
Benefits

    

    The fee for your services as the
non-executive Chairman of the Board (including service on any Board Committees)
will be $13,333.33 per month, which will be paid quarterly in advance on the
first business day of each calendar quarter.

    

    As
non-executive Chairman, you will also be eligible to receive the same equity
award grants as other members of the Board.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    The
Corporation will provide you and your dependents with the opportunity to
participate in the same health care plans and on the same terms as it provides
to executives of the Corporation through the Termination
Date.  Thereafter, you and your dependents shall be entitled to
benefits under the Corporation’s health care plans in accordance with Federal
COBRA law requirements. If for any reason you are not able to participate in the
Corporation’s health plans as contemplated by this paragraph, the Corporation
will pay to you quarterly in advance an amount equivalent to the premium cost
that would have otherwise been borne by the Corporation under this
paragraph.

    

    The Corporation will reimburse you for
any reasonable expenses that you may incur in connection with performing your
duties as non-executive Chairman.

    

    Transition
Arrangements

    

    In order to facilitate transition
arrangements, the Corporation will maintain an office for you at the
Corporation’s headquarters offices (which may not be the same office as you
occupied prior to January 1, 2011) until July 1, 2011.  However, we
have agreed that, except as otherwise requested by the Chief Executive Officer,
between January 1, 2011 and April 30, 2011 you will not be expected to be in the
Corporation’s offices more than two days per week.  Following April
30, 2011 you will visit the Corporation’s offices in connection with Board and
Board Committee meetings and responsibilities and at the reasonable request of
the Chief Executive Officer

    

    Non-Competition/Nonsolicitation

    

    (a)           Non-Competition.  You
agree that, for a period ending eighteen (18) months after the Termination Date
(the “Non-Competition
Period”), you will not, except as otherwise provided herein, engage or
participate, directly or indirectly, as principal, agent, officer, employee,
employer or consultant or in any other comparable capacity, in the conduct or
management of, any business which is competitive with any business conducted by
the Corporation.  For the purpose of this agreement, a business shall
be considered to be competitive with the business of the Corporation only if
such business is engaged in providing services similar to (i) any service
currently provided by the Corporation; (ii) any service which in the ordinary
course of business during the Non-Competition Period evolves from or results
from enhancements to the services provided by the Corporation as of the date
hereof or during the Non-Competition Period; or (iii) any future service of the
Corporation as to which you materially and substantially participated in the
design or enhancement.  Nothing in this clause (a) shall be
interpreted to prohibit you from continuing to serve as a non-employee member of
the board of directors of services companies that may compete with the
Corporation.

     

    (b)           Non-Solicitation of
Employees.  During the Non-Competition Period, you will not
(for your benefit or for the benefit of any person or entity other than the
Corporation) solicit, or assist any person or entity other than the Corporation
to solicit, any officer, director, executive or employee of the Corporation or
its affiliates to leave his or her employment.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    (c)           Reasonableness.  You
acknowledge that (i) the markets served by the Corporation are national and are
not dependent on the geographic location of executive personnel or the
businesses by which they are employed; (ii) the length of the Non-Competition
Period is related to the length and nature of your service with the Corporation;
and (iii) the above covenants are reasonable on their face, and the parties
expressly agree that such restrictions have been designed to be reasonable and
no greater than is required for the protection of the Corporation.

     

    (d)           Investments.  Nothing
in this agreement shall be deemed to prohibit you from owning equity or debt
investments in any corporation, partnership or other entity which is competitive
with the Corporation, provided that such
investments (i) are passive investments and constitute five percent (5%) or less
of the outstanding equity securities of such an entity the equity securities of
which are traded on a national securities exchange or other public market, or
(ii) are approved by the Compensation Committee.

    

    No
Assignment

    

    Because
of the personal nature of the services to be rendered by you, this agreement may
not be assigned by you without the prior written consent of the
Corporation.

    

    Governing
Law

    

    All questions with respect to the
construction and/or enforcement of this agreement, and the rights and
obligations of the parties hereunder, shall be determined in accordance with the
law of the Commonwealth of Virginia applicable to agreements made and to be
performed entirely in the Commonwealth of Virginia.

    

    Entire
Agreement; Amendment; Waiver; Counterparts  

    

    With the
exception of provisions of your Amended and Restated Employment Agreement
that remain in effect following December 31, 2010, this agreement expresses the
entire understanding with respect to the subject matter hereof and supersedes
and terminates any prior oral or written agreements with respect to the subject
matter hereof.  Any term of this agreement may be amended, and
observance of any term of this agreement may be waived, only with the written
consent of the parties hereto.  Waiver of any term or condition of
this agreement by any party shall not be construed as a waiver of any subsequent
breach or failure of the same term or condition or waiver of any other term or
condition of this agreement.  The failure of any party at any time to
require performance by any other party of any provision of this agreement shall
not affect the right of any such party to require future performance of such
provision or any other provision of agreement.  This agreement may be
executed in separate counterparts each of which will be an original and all of
which taken together will constitute one and the same agreement, and may be
executed using facsimile signatures, and a facsimile signature shall be deemed
to be the same, and equally enforceable, as an original of such
signature.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    Upon your review and acceptance of the
above terms, please execute and return this letter to my attention.

    

    
      
        
          	
                  Sincerely,

                
	 
      
	
                  /s/
      Joel R. Jacks

                
	 
      
	
                  Joel
      R. Jacks

                
	
                  Chair,
      Compensation Committee

                
	 
      
	
                  Agreed
      as of December 15, 2010:

                
	 
      
	
                  /s/
      Dr. Edward H. Bersoff

                
	
                  Dr.
      Edward H. Bersoff

                

        

      

    

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    “Change in Control”
shall mean an occurrence of any of the following events:

     

    (i)           an
acquisition (other than directly from the Corporation) of any voting securities
of the Corporation (the “Voting Securities”)
by any “person or group” (within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934 (the “Exchange Act”)) other
than an employee benefit plan of the Corporation, immediately after which such
person or group has “Beneficial Ownership” (within the meaning of Rule 13d-3
under the Exchange Act) of more than fifty percent (50%) of the combined voting
power of the Corporation's then outstanding Voting Securities; or

     

    (ii)           the
consummation of (A) a merger, consolidation or reorganization involving the
Corporation, unless the company resulting from such merger, consolidation or
reorganization (the “Surviving
Corporation”) shall adopt or assume this agreement and the stockholders
of the Corporation immediately before such merger, consolidation or
reorganization own, directly or indirectly immediately following such merger,
consolidation or reorganization, at least fifty percent (50%) of the combined
voting power of the Surviving Corporation in substantially the same proportion
as their ownership immediately before such merger, consolidation or
reorganization, (B) a complete liquidation or dissolution of the Corporation, or
(C) a sale or transfer of all or substantially all of the assets of the
Corporation.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]