Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (this “Agreement”) dated effective as of April 14,
2008 (the “Effective Date”), between Virtual Radiologic Corporation, a Delaware
corporation (the “Company”), and Leonard Purkis (“Executive”).

 

W I T N E S S E T H

 

WHEREAS, the Company desires to employ Executive in the capacities of
Chief Financial Officer of the Company;

 

WHEREAS, the Company and Executive desire to enter into the Agreement
as to the terms of his employment by the Company;

 

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

 

1.             Position/Duties.

 

(a)           During the Employment Term
(as defined in Section 2 below), Executive shall serve as the Chief
Financial Officer of the Company.  In
this capacity Executive shall have such duties, authorities and
responsibilities commensurate with the duties, authorities and responsibilities
of persons in similar capacities in similarly sized companies and such other
duties and responsibilities as the Chief Executive Officer shall designate that
are consistent with Executive’s position as Chief Financial Officer of the
Company.  Executive shall report to the
Chief Executive Officer.

 

(b)           During the Employment Term,
Executive shall devote substantially all of his business time (excluding
periods of vacation and other approved leaves of absence) to the performance of
his duties with the Company; provided the foregoing shall not prevent Executive
from (i) participating in charitable, civic, educational, professional,
community or industry affairs or, with prior written approval of the Board of
Directors of the Company (the ‘Board”), serving on the board of directors or
advisory boards of other companies; and (ii) managing his and his family’s’
personal investments so long as such activities do not materially interfere
with the performance of his duties hereunder or create a potential business
conflict or the appearance thereof.  If
at any time service on any board of directors or advisory board would, in the
good faith judgment of the Board, conflict with Executive’s’ fiduciary duty to
the Company or create any appearance thereof, Executive shall promptly resign
from such other board of directors or advisory board after notice of the
conflict is received from the Board.

 

(c)           Executive further agrees to
serve without additional compensation as an officer and director of any of the
Company’s subsidiaries or affiliates, as the same may exist from time to time,
and agrees that any amounts received from any such subsidiary or affiliate may
be offset against the amounts due hereunder. 
In addition, it is agreed that the Company may assign Executive to one
of its subsidiaries or affiliates for payroll purposes providing this does not
change the Executive’s role as the Chief Financial Officer of the Company.

 

 

2.                                       Employment Term.

 

Executive’s
term of employment under this Agreement (such term of employment, as it may be
extended or terminated, is herein referred to as the “Employment Term”) shall
be for a term commencing on the Effective Date and, unless terminated earlier
as provided in Section 7 hereof, ending on the third anniversary of the
Effective Date (the “Original Employment Term”); provided that the Employment
Term shall be automatically extended, subject to earlier termination as
provided in Section 7 hereof, for successive additional one (1) year
periods (the “Additional Terms”), unless, at least 30 days prior to the end of
the Original Employment Term or the then Additional Term, the Company or
Executive has notified the other in writing that the Employment Term shall
terminate at the end of the then current term.

 

3.                                       Base Salary.

 

The
Company agrees to pay Executive a base salary (the “Base Salary”) at an annual
rate of Three Hundred Thousand Dollars ($300,000), payable in accordance with
the regular payroll practices of the Company, but not less frequently than
monthly.  Executive’s Base Salary shall
be fixed for the Original Employment Term, and thereafter in any Additional
Term shall be determined by the Board or the Compensation Committee thereof (“Committee”)
and may be increased, but not decreased, from time to time by the
Committee.  The base salary as determined
herein from time to time shall constitute “Base Salary” for purposes of this
Agreement.

 

4.                                       Incentive Bonus.

 

During
the Employment Term, Executive shall be eligible to participate in the Company’s
bonus and other incentive compensation plans and programs for the Company’s
senior executives at a level commensurate with his position.  Executive shall have the opportunity to earn
an annual target bonus (the “Annual Bonus”) to be determined by and measured
against objective financial criteria to be determined by the Committee of up to
50% of Base Salary or such greater percentage as may be provided in an annual
bonus plan approved by the Committee, upon the Company’s achievement of
financial and operating metrics to be annually determined by the Committee, and
upon recommendation of the Chief Executive Officer, and prorated for any
partial period for which such bonuses are calculated during 2008.   Such annual incentive bonuses are payable to
the Executive no later than 60 days following the close of the fiscal year.

 

5.                                       Equity Incentives.

 

(a)           Initial Option Award.  The Board or any committee of the Board (the “Committee”)
appointed to administer the Company’s Equity Incentive Plan, as may be amended
from time to time (the “Stock Plan”) shall award Executive on the Effective
Date, options to purchase one hundred sixty thousand (160,000) shares of the
Company’s common stock, $0.001 par value per share, having an exercise price
equal to the fair market value of one share of the Company’s common stock as
reported by NASDAQ closing quote on the Effective Date, which options shall be
subject to certain restrictions (the “Initial Options Award”).  The Initial Options

 

 

Award shall vest in four (4) equal and successive increments of
forty thousand (40,000) shares on the first, second, third and fourth
anniversaries of the Effective Date, provided that Executive is employed on
each vesting date.  The Initial Options
Award shall be granted pursuant to and shall be subject to all of the terms and
conditions imposed upon such awards granted under the Stock Plan and shall be
evidenced by an Incentive Stock Option Agreement in the form approved by the
Board or Committee.

 

(b)           Discretionary Grants.  In addition to the Initial Options Award
contemplated under this Section 5, at the sole discretion of the Board or
the Committee, Executive shall be eligible for grants of stock options and
other equity awards of a level commensurate with his position and similar to
other Executives of the Company.

 

(c)           Notwithstanding any other
provision, in the event of a change in control, all equity awards (including,
but not limited to, any options or stock grants made subsequent to the date of
this Agreement) shall fully vest and be immediately exercisable.    For purposes of this
Agreement a change in control shall occur upon (i) any “person” (as such
term is used in Sections 13(d) of the Securities Exchange Act of 1934
(the “Exchange Act”))  first becoming
after the Effective Date (a) a “beneficial owner” (as defined in Rule 13(d) under
the Exchange Act), directly or indirectly, of securities of the Corporation
representing 50% or more of the combined voting power of the Corporation’s then
outstanding securities or (b) able to elect a majority of the Company’s
Board of Directors (excepting in each case a person or group owned by or
affiliated with Generation Partners L.P.), or (ii) the sale of all or
substantially all of the assets of the Company.

 

6.             Employee Benefits.

 

(a)           Benefit Plans.  Executive shall be entitled to participate in
all employee benefit plans of the Company including, but not limited to,
equity, pension, thrift, profit sharing, medical coverage, education, or other
retirement or welfare benefits that the Company has adopted or may adopt,
maintain or contribute to for the benefit of its senior executives at a level
commensurate with his position, subject to satisfying any applicable
eligibility requirements.

 

(b)           Paid Time Off.  Executive shall be entitled to paid time off
in accordance with the Company’s policies applicable to its senior executives,
but in no event less than twenty days (as prorated for partial years), which
paid time off may be taken at such times as Executive elects with due regard to
the needs of the Company.

 

(c)           Perquisites.  The Company shall provide to Executive all
perquisites which other senior executives of the Company are generally entitled
to receive.

 

(d)           Business and Entertainment
Expenses.  Upon
presentation of appropriate documentation, Executive shall be reimbursed in
accordance with the Company’s expense reimbursement policy for all reasonable
and necessary business and entertainment expenses incurred in connection with
the performance of his duties hereunder.

 

 

7.                                       Termination.

 

Executive’s
employment and the Employment Term shall terminate on the first of the
following to occur:

 

(a)           Disability.  Upon written notice by the Company to
Executive of termination due to Disability. 
For purposes of this Agreement, “Disability” shall be defined as the inability
of Executive to have performed his material duties hereunder due to a physical
or mental injury, infirmity or incapacity for 180 days (including weekends and
holidays) in any 365-day period, with or without reasonable accommodations as
defined (and if required) by applicable state and federal disability laws.  The existence or nonexistence of a Disability
shall be determined by an independent physician selected by the Company and
reasonably acceptable to Executive.

 

(b)           Death.  Automatically on the date of death of
Executive.

 

(c)           Cause.  Immediately upon written notice by the
Company to Executive of a termination for Cause.  “Cause” shall mean:

 

(i)            Executive shall
have been indicted for a felony;

 

(ii)           Executive shall
have been convicted of (or plead “guilty” or “nolo contendre” to or been found
guilty and not convicted of) any misdemeanor or summary offense involving
fraud, theft, misrepresentation or moral turpitude or any other misdemeanor or
summary offense that will, in the opinion of the Board , determined in good
faith, adversely affect in any material respect the Company’s prospects or
reputation or Executive’s ability to perform his obligations or duties to the
Company or any of its subsidiaries; or

 

(iii)          The termination
is evidenced by a resolution adopted in good faith by the Board concluding that
Executive:

 

(A)          intentionally
and continually failed substantially to perform his reasonably assigned duties
with the Company (other than a failure resulting from Executive’s incapacity
due to physical or mental illness or from the assignment to Executive of duties
that would constitute Good Reason), which failure has continued for a period of
at least 30 days after a written notice of demand for substantial performance,
signed by a duly authorized member of the Board, has been delivered to
Executive,

 

(B)           intentionally
engaged in conduct which is demonstrably and materially injurious to the
Company; provided, however, that no termination of Executive’s employment shall
be for Cause as set forth in this subsection (B) until (1) there
shall have been delivered to Executive a copy of a written notice, signed by a
duly authorized member of the Board, stating that the Board has determined that
Executive has engaged

 

 

in the conduct set forth in this subsection (B), and (2) Executive
shall have been provided an opportunity to be heard by the Board;

 

(C)           willfully or
repeatedly engaged in misconduct or gross negligence in the performance of his
duties to the Company or any of its subsidiaries that has a material
detrimental effect on the Company; or

 

(D)          committed an
act of fraud, theft or dishonesty against the Company or any of its
subsidiaries or any act or omission intended to result in the personal
enrichment of Executive or his spouse, parents or descendants (whether by blood
or adoption and including stepchildren) or the spouses of such individuals in
violation of law or of his duty of loyalty to the Company or its subsidiaries
at the expense, directly or indirectly, of the Company or any of its subsidiaries.

 

(iv)          Notwithstanding
anything in the foregoing to the contrary, if Executive has been terminated
ostensibly for Cause because he has been indicted for a felony, and he is not
convicted of, or does not plead guilty or nolo contendere to, such felony or a
lesser offense (based on the same operative facts), such termination shall be
deemed to be a termination without Cause as of the date of the termination;
provided, however, that, any payments due hereunder shall be only paid after a
final determination in such proceeding is reached.

 

(d)           Without Cause.  Upon written notice by the Company to
Executive of an involuntary termination without Cause, other than for death or
Disability.

 

(e)           Good Reason.  Upon written notice by Executive to the
Company of a termination for Good Reason, unless such events are corrected in
all material respects by the Company within 30 days following written
notification by Executive to the Company that he intends to terminate his
employment hereunder for one of the reasons set forth below (so long as such
notice is given within ninety (90) days of the occurrence of such Good
Reason).  “Good Reason” shall mean,
without the consent of Executive, the occurrence of any of the following
events:

 

(i)            assignment to
Executive of any duties inconsistent in any material respect with Executive’s
position (including titles and reporting relationships), authority, duties or
responsibilities as contemplated by this Agreement; and

 

(ii)           any material
failure by the Company to comply with any of the material provisions regarding
Executive’s Base Salary, bonus, equity incentive, benefits and perquisites and
other benefits and amounts payable to Executive under this Agreement;

 

(iii)          the requirement
that Executive relocate to a workplace outside of the Minneapolis-St. Paul
Metropolitan Area.

 

 

(f)            Without Good Reason.  Upon 30 days’ prior written notice by
Executive to the Company of Executive’s voluntary termination of employment
without Good Reason (which the Company may, in its sole discretion, make
effective earlier than any notice date).

 

8.                                       Consequences of Termination.

 

Any
termination payments made and benefits provided under this Agreement to
Executive shall be in lieu of any termination or severance payments or benefits
for which Executive may be eligible under any of the plans, policies or
programs of the Company or its affiliates. 
No termination payments shall be payable hereunder until Executive shall
have returned to the Company all Company property used by Executive including
without limitation any automobile, computer or laptop, cell phone, Blackberry
or similar device.  Subject to Section 9,
the following amounts and benefits shall be due to Executive.

 

(a)           Disability.  Upon such termination, the Company shall pay
or provide Executive (i) any unpaid Base Salary through the date of
termination and any accrued vacation in accordance with Company policy; (ii) any
unpaid bonus earned with respect to any fiscal year ending on or preceding the
date of termination; (iii) reimbursement for any unreimbursed expenses
incurred through the date of termination; and (iv) all other payments,
benefits or fringe benefits to which Executive may be entitled under the terms
of any applicable compensation arrangement or benefit, equity or fringe benefit
plan or program or grant or this Agreement (collectively, “Accrued Amounts”).

 

(b)           Death.  In the event the Employment Term ends on
account of Executive’s death, Executive’s estate shall be entitled to any
Accrued Amounts.

 

(c)           Termination for Cause or Without
Good Reason.  If
Executive’s employment should be terminated (i) by the Company for Cause,
or (ii) by Executive without Good Reason, the Company shall pay to
Executive any Accrued Amounts.

 

(d)           Termination Without Cause or
for Good Reason.  If Executive’s
employment by the Company is terminated by the Company other than for Cause
(other than a termination for Disability) or by Executive for Good Reason, the
Company shall pay or provide Executive with (i) Accrued Amounts; (ii) a
pro-rata portion (determined by multiplying the amount Executive would have
received had employment continued through the end of the performance year by a
fraction, the numerator of which is the number of days during the performance
year of termination that Executive is employed by the Company and the
denominator of which is 365) of Executive’s Annual Bonus for the performance
year in which Executive’s termination occurs at the time that annual bonuses
are paid to other senior executives; provided that the Board determines in good
faith that the Company was on plan for Executive to earn such bonus at the time
of termination; (iii) continue his then current Base Salary as if his
employment continued for a period of twelve (12) months from the date of
termination, subject to the mitigation provisions set forth below; and (iv) subject
to Executive’s continued co-payment of premiums, continued participation for
twelve (12) months in all health and welfare plans which cover Executive (and
eligible dependents) upon the same terms and conditions (except for the
requirements of Executive’s continued employment) in effect on the date of
termination.  If at any time after
Executive’s termination while the Company is obligated

 

 

hereunder to make such payments of Base Salary or continue such
benefits, Executive receives compensation for providing services as an employee
or as an independent contractor from any person or entity, then Executive shall
immediately notify the Company of such event and the Company’s obligation to
continue to make such payments to Executive shall be reduced by the gross
amount of any such payments and the obligation to continue to provide benefits
shall cease at such time as Executive is eligible for health insurance coverage
by any successor employer or person or entity, prompt notice of which Executive
shall furnish to the Company.  Executive
shall use good faith and reasonable efforts to find and secure new employment
after any such termination.  To the
extent such coverage cannot be provided under the Company’s health or welfare
plans without jeopardizing the tax status of such plans, for underwriting
reasons or because of the tax impact on Executive, the Company shall pay
Executive an amount equal to the amount the Company would have paid for such
benefits on behalf of Executive if the benefits were provided to him as an
employee.  The continuation of health
benefits under this subsection shall reduce and count against Executive’s
rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”).

 

(e)           Amounts Payable.  The Company reserves the right to set off
against amounts payable to Executive hereunder any amounts owed by Executive to
the Company.

 

9.                                       Release.

 

Any
and all amounts payable and benefits or additional rights provided pursuant to
this Agreement beyond Accrued Amounts shall only be payable if Executive
delivers to the Company a general release of all claims of Executive occurring
up to the release date in the form of Exhibit A hereto (with such
insertions or changes therein as may be necessary in the reasonable opinion of
counsel for the Company to make it valid and encompassing under applicable law)
within 21 days of presentation thereof by the Company to Executive, or such
other longer or shorter period as may be permitted or required by then
applicable law.

 

10.           Restrictive Covenants.

 

(a)           Confidentiality.  Executive shall not, directly or indirectly,
use, make available, sell, disclose or otherwise communicate to any person,
other than in the course of Executive’s assigned duties and for the benefit of
the Company, either during the Employment Term or at any time thereafter, any
nonpublic proprietary or confidential information, knowledge or data relating
to the Company or any of its subsidiaries or affiliates that has been obtained
by Executive during Executive’s employment by the Company or has been obtained
pursuant to any consulting services provided by Executive to Company prior to
Executive’s employment by the Company. 
For purposes of this Agreement, non-public proprietary information means
information proprietary to the Company that is not generally known (including
any “trade secret” within the meaning of the Economic Espionage Act of 1996,
Title 18 USC  §1839) about the Company’s
customers, products, services, personnel, pricing, sales strategy, technology,
methods, processes, research, development, finances, systems, techniques,
accounting, purchasing and plans. All information disclosed to Executive or to
which he obtains access, whether originated by him or by others, during the
period that Executive is an employee of the Company (such period being referred
to as the “Employment Period”) (whether prior to the Effective Date or
thereafter), shall be presumed to be non-public proprietary information if it
is so treated by the Company or if Executive has a reasonable basis to believe
it to be such.  The

 

 

foregoing shall not apply to
information that (i) was known to the public prior to its disclosure to
Executive; (ii) becomes known to the public subsequent to disclosure to
Executive through no wrongful act of Executive or any representative of
Executive; or (iii) Executive is required to disclose by applicable law,
regulation or legal process (provided that Executive provides the Company with
prior notice of the contemplated disclosure and reasonably cooperates with the
Company at its expense in seeking a protective order or other appropriate
protection of such information). 
Notwithstanding clauses (i) and (ii) of the preceding
sentence, Executive’s obligation to maintain such disclosed information in
confidence shall not terminate where only portions of the information are in
the public domain.

 

(b)           Nonsolicitation.  During the Employment Term and for the two
year period thereafter, Executive shall not, directly or indirectly,
individually or on behalf of any other person, firm, corporation or other
entity, knowingly solicit, aid or induce (i) any employee of or consultant
to the Company or any of its subsidiaries or affiliates to leave such
employment or engagement in order to accept employment with or render services
to or with any other person, firm, corporation or other entity unaffiliated
with the Company or knowingly take any action to materially assist or aid any
other person, firm, corporation or other entity in identifying or hiring any
such employee or (ii) any customer of the Company or any of its
subsidiaries or affiliates to purchase goods or services then sold by the
Company or any of its subsidiaries or affiliates from another person, firm,
corporation or other entity or assist or aid any other persons or entity in
identifying or soliciting any such customer.

 

(c)           Noncompetition.  Executive acknowledges that he performs
services of a unique nature for the Company that are irreplaceable, and that
his performance of such services to a competing business will result in
irreparable harm to the Company. 
Accordingly, during the Employment Term and for the two year period
thereafter, Executive shall not, directly or indirectly, own, manage, operate,
control, be employed by (whether as an employee, consultant, independent
contractor or otherwise, and whether or not for compensation) or render
services to any person, firm, corporation or other entity, in whatever form,
engaged in any business of the same type as any business in which the Company
or any of its subsidiaries or affiliates is engaged on the date of termination
or in which they have proposed, on or prior to such date, to be engaged in on
or after such date, in any locale of any country in which the Company or its
subsidiaries conducts business.  This Section 10(c) shall
not prevent Executive from owning not more than one percent of the total shares
of all classes of stock outstanding of any publicly held entity engaged in such
business, nor will it restrict Executive from rendering services to charitable
organizations, as such term is defined in Section 501(c) of the
Internal Revenue Code of 1986, as amended.

 

(d)           Nondisparagment.  Neither Executive nor the Company (for
purposes hereof, the Company shall mean the Company together with its executive
officers and directors and not any other employees) shall make any public
statements that disparage the other party, or in the case of the Company, its
respective subsidiaries, affiliates, employees, officers, directors, products
or services.  Notwithstanding the
foregoing, statements made in the course of sworn testimony in administrative,
judicial or arbitral proceedings (including, without limitation, depositions in
connection with such proceedings) shall not be subject to this Section 10(d).

 

(e)           Equitable Relief and Other
Remedies.  Executive
acknowledges and agrees that the Company’s remedies at law for a breach or
threatened breach of any of the

 

 

provisions of this Section 10 would be inadequate and, in recognition
of this fact, Executive agrees that, in the event of such a breach or
threatened breach, in addition to any remedies at law, the Company, without
posting any bond, shall be entitled to obtain equitable relief in the form of
specific performance, temporary restraining order, a temporary or permanent
injunction or any other equitable remedy which may then be available.

 

(f)                                    Reformation.  If it is determined by a court of competent
jurisdiction in any state or other jurisdiction that any restriction in this Section 10
is excessive in duration or scope or is unreasonable or unenforceable under the
laws of that state or jurisdiction, it is the intention of the parties that
such restriction may be modified or amended by the court to render it enforceable
to the maximum extent permitted by the law of that state or jurisdiction.

 

(g)                                 Survival of
Provisions.  The
obligations contained in this Section 10 shall survive the termination or
expiration of Executive’s employment with the Company and shall be fully
enforceable thereafter.

 

11.                                 Inventions and
Other Intellectual Property.

 

(a)                                  Assignment of
Inventions and Works Limitation of Assignment in Certain Cases.  Executive acknowledges that Executive will
exercise Executive’s inventive and creative abilities for the benefit of the
Company.  Executive therefore assigns and
transfers to the Company Executive’s entire right, title and interest in and to
all Inventions.  Executive agrees that
all such Inventions are the sole property of the Company.  For purposes of this Agreement, “Inventions”
shall include but not be limited to all ideas, improvements, designs and
discoveries whether or not patentable and whether or not reduced to practice,
made or conceived by Executive (whether made solely by Executive or jointly
with others) which relate in any manner to the business, work or research and
development of the Company, its subsidiaries or affiliates, or result from and
are suggested by any task assigned to Executive or any work performed by
Executive for or on behalf of the Company, its predecessors in interest or any
related entity.  The foregoing definition
does not however, include an Invention for which no equipment, supplies,
facility, or confidential information of the Company was used and that was
developed entirely on Executive’s own time and that (i)  does not directly
relate to the Company’s business, research or development, or (ii)  does
not result from any work performed by Executive for the Company.

 

Executive agrees
that all Works are the sole property of the Company, and shall, to the extent
possible, be considered works made for hire for Company within the meaning of
Title 17 of the United States Code; provided, however, that if Executive
is domiciled in California or if any of the Work is created in California, then
such Work shall not be a work made for hire. 
If for any reason any Work is not deemed to be a work made for hire,
then Executive assigns and transfers to the Company Executive’s entire right,
title and interest in and to such Work, and Executive further waives all of his
rights under the United States Copyright Act and under any other country’s
copyright law, including any rights provided in 17 U.S.C. §§ 106
and 106A, for any and all purposes for which such Work and any derivative
works thereof may be used, and any rights of attribution and integrity or any
other “moral rights of authors” with respect to such Work and any derivative
works thereof and any uses thereof to the full extent now or hereafter
permitted by the laws of the United States of America or the laws of any other
country.  For

 

 

purposes of this
Agreement, “Works” shall include but not be limited to all copyrightable works
created by Executive (whether solely by Executive or jointly with others)
during the Employment Period, or any time thereafter, which relate in any
manner to the business, work or research and development of the Company, its
subsidiaries or affiliates, or result from and are suggested by any task
assigned to Executive or any work performed by Executive for or on behalf of
the Company, its subsidiaries or affiliates. 
If any such assignment is invalid or ineffective for any reason, then
Executive hereby grants Company a perpetual, royalty-free, non-exclusive,
worldwide license to fully exploit any intellectual property or propriety
rights in such Inventions and Works and any patents and copyrights (or other
intellectual property or propriety registrations or applications) resulting
there from.

 

(b)                                 Disclosure of Inventions, Works and
Patents.  Executive agrees that in connection with any
Invention or Work:

 

(i)            Executive will disclose such Invention
promptly in writing to the General Counsel, President, Chief Executive Officer
or Board of the Company, in order to permit the Company to claim rights to
which it may be entitled under this Agreement. 
Such disclosure shall be received in confidence by the Company or the
Board.

 

(ii)           Executive will, at the Company’s request,
promptly execute a written assignment of title to the Company for any Invention
required to be assigned by this Article (“Assignable Invention”), and
Executive will preserve any such Assignable Invention as confidential
information of the Company.

 

(iii)          Executive will give to the relevant
contact person at the Company a copy of such Work.  Executive will, at the Company’s request,
promptly execute a written assignment of title to the Company for any such
Work.

 

(iv)          Upon request, Executive agrees to assist
the Company or its nominee (at its expense) during and at any time subsequent
to the Employment Period in every reasonable way to obtain for its own benefit
patents and copyrights for such Assignable Inventions and such Works in any and
all countries, which Inventions and Works shall be and remain the sole and
exclusive property of the Company or its nominee whether or not patented or
copyrighted.  Executive agrees to execute
such papers and perform such lawful acts as the Company deems to be necessary
to allow it to exercise all right, title and interest in such patents and
copyrights.

 

(c)           Execution of Documents. 
In connection with this Section 11, Executive further agrees to
execute, acknowledge and deliver to the Company or its nominee upon request (at its
expense) all such documents, including applications for patents and copyrights
and assignments of inventions, patents and copyrights to be issued therefore,
as the Company may determine necessary or desirable to apply for and obtain
letters, patents and copyrights on such Assignable Inventions and such Works in
any and all countries and/or to protect the interest of the Company or its
nominee in such inventions, such Works, patents and copyrights, and to vest
title thereto in the Company, or its nominee.

 

 

(d)           Maintenance of Records. 
Executive agrees to keep and maintain adequate and current written
records of all Inventions and Works made or created by Executive (in the form of notes,
sketches, drawings and other typical forms), which records shall be available
to and remain the sole property of the Company at all times.

 

(e)           Prior Inventions. 
It is understood that all inventions, if any, patented or unpatented,
which Executive made prior to the Executive’s first day as an employee of or
consultant or contractor to the Company, its predecessors in interest or any
related entity (and which have not been otherwise assigned or transferred to
the Company) are excluded from the scope of this Agreement.

 

To preclude any
possible uncertainty, Executive has set forth on Exhibit B attached hereto
a complete list of all Executive’s prior inventions, if any, including numbers
of all patents and patent applications, and a brief description of all
unpatented inventions that are not the property of a previous employer or other
person and which have not been otherwise assigned or transferred to the Company.  Executive represents and covenants that the
list is complete and that, if no items are on the list, Executive has no such
prior inventions.  Executive agrees to
notify the Company in writing before Executive makes any disclosure or performs
any work on behalf of the Company which appears to threaten or conflict with
proprietary rights Executive claims in any invention or idea.  In the event of Executive’s failure to give such
notice, Executive agrees that Executive will make no claim against the Company
with respect to any such inventions or ideas.

 

(f)            Trade Secrets and Intellectual Property
of Others.  Executive represents that Executive’s
performance of all the terms of this Agreement does not and will not breach any
noncompetition or nonsolicitation agreement, or any agreement to keep
proprietary information, knowledge or data acquired by Executive in confidence
or in trust prior to the Employment Period, and Executive will not disclose to
the Company or induce the Company to use any confidential or proprietary
information or material belonging to any previous employer or other
person.  Executive agrees not to enter
into any agreement either written or oral in conflict herewith.

 

(g)           Non infringement. 
Executive represents that the work product that Executive provides to
the Company, including the Inventions and the Works, and Company’s use thereof in
their intended manner:  (a) do not
and will not infringe or violate the copyright or trade secret rights of any
other party; and (b) to the best of Executive’s knowledge, do not and will
not infringe or violate the actual or prospective patent or trademark rights of
any other party.  If at any time during
or after the Employment Period, Executive has reason to believe that the
foregoing representation is no longer true, then Executive shall promptly
inform Company of such belief and the reasons therefor.

 

(h)           Other Obligations. 
Executive acknowledges that the Company from time to time may have
agreements with other persons or with the U.S. Government or governments of
other countries, or agencies thereof, which impose obligations or restrictions on
the Company regarding inventions made during the course of work thereunder or
regarding the confidential nature of such work. Executive agrees to be bound by
all such obligations and restrictions and to take all action necessary to
discharge the obligations of the Company thereunder.

 

 

12.           Assignments.

 

(a)           This Agreement is
personal to each of the parties hereto. 
Except as provided in Section 12(b) below, no party may assign
or delegate any rights or obligations hereunder without first obtaining the
written consent of the other party hereto.

 

(b)           The Company may
assign this Agreement to any successor to all or substantially all of the
business and/or assets of the Company, provided the Company shall require such
successor to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place.

 

13.           Notice.

 

For the purpose of this Agreement, notices and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have
been duly given (i) on the date of delivery if delivered by hand, (ii) on
the date of transmission, if delivered by confirmed facsimile, (iii) on
the first business day following the date of deposit if delivered by guaranteed
overnight delivery service, or (iv) on the fourth business day following
the date delivered or mailed by United States registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

 

If to Executive:

 

At the address (or to the facsimile number) shown on the records of the
Company.

 

If to the Company:

 

Virtual Radiologic Corporation

5995 Opus Parkway, Suite 200

Minnetonka, MN  55343

Attention:  Corporate Secretary

Fax:  952/938-1162

 

with copies to:

 

Generation Partners L.P.

One Greenwich Office Park

Greenwich, CT  06831-5156

Attention: Andrew Hertzmark

Fax:  203/422-8250

or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

 

 

14.           Section Headings;
Inconsistency.

 

The section headings used in this Agreement are included solely for
convenience and shall not affect, or be used in connection with, the
interpretation of this Agreement.

 

15.           Severability.

 

The provisions of this Agreement shall be deemed severable and the
invalidity of unenforceability of any provision shall not affect the validity
or enforceability of the other provisions hereof.

 

16.           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.

 

17.           Indemnification.

 

The Company hereby agrees to indemnify Executive and hold him harmless
to the fullest extent permitted by law and under the bylaws of the Company
against and in respect to any and all actions, suits, proceedings, claims,
demands, judgments, costs, expenses (including reasonable attorney’s fees),
losses, and damages resulting from Executive’s good faith performance of his
duties and obligations with the Company.

 

18.           Governing
Law and Venue.

 

The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Minnesota without
regard to its conflicts of law principles. 
Each party to this Agreement consents to the jurisdiction over it of the
courts of the State of Minnesota in the City of Minneapolis, and the United
States Courts in the District of Minnesota and agrees that any personal service
of process may be made by registered or certified mail to the notice address as
set forth in Section 12 hereof, and as the same may be changed from time
to time as provided therein.

 

19.           Arbitration.

 

Any dispute or controversy arising under or in connection with this
Agreement shall be submitted to arbitration in accordance with the rules of
the American Arbitration Association then in effect in Minneapolis Minnesota
before a panel of three (3) arbitrators who shall be knowledgeable in executive
employment law, who shall be independent of, and have no ex parte
communications with, the parties or their representatives, and who shall render
written findings of fact, conclusions of law and order.   In addition to any other inherent powers,
arbitrators shall have the express powers to order a party to comply with or
desist from breaching any of the terms of this Agreement. The determination of
the arbitrators shall be final and binding upon the parties and may be entered
as a final judgment in any court of competent jurisdiction.  The parties shall equally share the costs of
arbitration. Nothing herein, however, 

 

 

shall deprive a party of the right to seek
equitable relief from the courts to restrain or enjoin the other from a breach
this Agreement pending the empanelling of the arbitrators or their final
determination.

 

20.           Miscellaneous.

 

No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and
signed by Executive and on behalf of the Company by such officer or director as
may be designated by the Board.  No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time.

 

21.           Supercession
and Merger.

 

This Agreement together with all exhibits hereto and the Stock Plan and
Stock Option Agreement merges all prior negotiations or agreements and sets
forth the entire agreement of the parties hereto in respect of the subject
matter contained herein.  No agreements
or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.

 

22.           Withholding.

 

The Company may withhold from any and all amounts payable under this
Agreement such foreign, federal, state and local taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

23.           Survival.  The provisions of Sections 8, 9, 10, 11, 13,
18, 19 and 23 shall survive termination of this Agreement for whatever reason.

 

(the
remainder of this page is intentionally blank)

 

 

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

 

	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
  Virtual
  Radiologic Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean
  Casey

  
	
   

  	
   

  	
  Name:  Sean
  Casey

  
	
   

  	
   

  	
  Its:  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
  Leonard
  Purkis

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leonard
  Purkis

  

 

 

EXHIBIT A

 

FORM OF
RELEASE

 

AGREEMENT AND
GENERAL RELEASE

 

Virtual Radiologic Corporation, its
affiliates, subsidiaries, divisions, successors and assigns and the current,
future and former employees, officers, directors, trustees and agents thereof
(collectively referred to throughout this Agreement as the “Company”) and
Leonard Purkis, his heirs, executors, administrators, successors and assigns
(collectively referred to throughout this Agreement and General Release as “Executive”)
agree:

 

1.             Last Day of
Employment.  Executive’s last day of
employment with the Company is [INSERT TERMINATION DATE].  In addition, effective as of [INSERT
TERMINATION DATE], Executive resigns from his position as Chief Financial
Officer of Virtual Radiologic Corporation and will not be eligible for any
benefits or compensation after [INSERT TERMINATION DATE], other than as
specifically provided in the employment agreement between Virtual Radiologic
Corporation and Executive dated effective as of DATE (the “Employment Agreement”),
subject to Executive’s executing, delivering and not revoking Appendix 1
hereto.  Executive further acknowledges
and agrees that, after [INSERT TERMINATION DATE], he will not represent himself
as being a director, employee, officer, trustee, agent or representative of the
Company for any purpose and will not make any public statements relating to the
Company, other than general statements relating to his position, title or
experience with the Company, subject to the confidentiality provision under Section 10(a) of
the Employment Agreement and in no event will Executive make any statements as
an agent or representative of the Company. 
In addition, effective as of [INSERT TERMINATION DATE], Executive
resigns from all offices, directorships, trusteeships, committee memberships
and fiduciary capacities held with, or on behalf of, the Company or any benefit
plans of the Company.  These resignations
will become irrevocable as set forth in Section 3 below.

 

2.             Consideration.  The parties acknowledge that this Agreement
and General Release is being executed in accordance with Section 9 of the
Employment Agreement.

 

3.             Revocation.  Executive may revoke this Agreement and
General Release for a period of                     
calendar days following the day he executes this Agreement and General
Release.  Any revocation within this
period must be submitted, in writing, to Virtual Radiologic Corporation and
state, “I hereby revoke my acceptance of our Agreement and General Release.”
The revocation must be personally delivered to Sean Casey, Chief Executive
Officer, or his/her designee, or mailed to Virtual Radiologic Corporation at
5995 Opus Parkway, Suite 200, Minnetonka, MN, 55343, or the Company’s then
current regular business address, and postmarked within seven (7) calendar
days of execution of this Agreement and General Release.  This Agreement and General Release shall not
become effective or enforceable until the revocation period has expired.  If the last day of the revocation period is a
Saturday, Sunday, or legal holiday in the State of Minnesota, then the
revocation period shall not expire until the next following day which is not a
Saturday, Sunday, or legal holiday.

 

 

4.             General Release of
Claim.  Executive knowingly and
voluntarily releases and forever discharges the Company from any and all
claims, causes of action, demands, fees and liabilities of any kind whatsoever,
whether known and unknown, against the Company, Executive has, has ever had or
may have as of the date of execution of this Agreement and General Release,
including, but not limited to, any alleged violation of:

 

·                  The National
Labor Relations Act, as amended;

 

·                  Title VII of the
Civil Rights Act of 1964, as amended;

 

·                  The Civil Rights
Act of 1991;

 

·                  Sections 1981
through 1988 of Title 42 of the United States Code, as amended;

 

·                  The Employee
Retirement Income Security Act of 1974, as amended;

 

·                  The Immigration
Reform and Control Act, as amended;

 

·                  The Americans
with Disabilities Act of 1990, as amended;

 

·                  The Age
Discrimination in Employment Act of 1967, as amended;

 

·                  The Older
Workers Benefit Protection Act of 1990;

 

·                  The Worker
Adjustment and Retraining Notification Act, as amended;

 

·                  The Occupational
Safety and Health Act, as amended;

 

·                  The Family and
Medical Leave Act of 1993;

 

·                  The Minnesota
Civil Rights Act, as amended;

 

·                  The Minnesota
Minimum Wage Law, as amended;

 

·                  Equal Pay Law
for Minnesota, as amended;

 

·                  Any other
foreign, federal, state or local civil or human rights law or any other local,
state, federal or foreign law, regulation or ordinance;

 

·                  Any public
policy, contract, tort, or common law; or

 

·                  Any allegation
for costs, fees, or other expenses including attorneys’ fees incurred in these
matters.

 

Notwithstanding anything herein to the contrary, the sole matters to
which this Agreement and General Release do not apply are:  (i) Executive’s rights of
indemnification and directors and officers liability insurance coverage, if
any, to which he was entitled immediately prior to 

 

 

[INSERT TERMINATION DATE] with regard to his service as an officer of
the Company; (ii) Executive’s rights under any tax-qualified pension or
claims for accrued vested benefits under any other employee benefit plan,
policy or arrangement maintained by the Company or under COBRA; (iii) Executive’s
rights under the provisions of the Employment Agreement which are intended to
survive termination of employment; or (iv) Executive’s rights as a
stockholder.

 

5.             No Claims
Permitted.  Executive waives his
right to file any charge or complaint against the Company arising out of his
employment with or separation from the Company before any foreign, federal,
state or local court or any foreign, federal, state or local administrative
agency, except where such waivers are prohibited by law.  This Agreement and General Release, however,
does not prevent Executive from filing a charge with the Equal Employment
Opportunity Commission, any other federal government agency, and/or any
government agency concerning claims of discrimination, although Executive
waives his right to recover any damages or other relief in any claim or suit brought
by or through the Equal Employment Opportunity Commission or any other state or
local agency on behalf of Executive under the Age Discrimination in Employment
Act, Title VII of the Civil Rights Act of 1964 as amended, the Americans with
Disabilities Act, or any other federal or state discrimination law, except
where such waivers are prohibited by law.

 

6.             Affirmations.  Executive affirms he has not filed, has not
caused to be filed, and is not presently a party to, any claim, complaint, or
action against the Company in any forum or form.  Executive further affirms that he has been
paid and/or has received all compensation, wages, bonuses, commissions, and/or
benefits to which he may be entitled and no other compensation, wages, bonuses,
commissions and/or benefits are due to him, except as provided in the
Employment Agreement.  Executive also
affirms he has no known workplace injuries.

 

7.             Confidentiality;
Cooperation; Return of Property. 
Executive agrees not to disclose any information regarding the circumstances
surrounding the cessation of his employment, or the existence, terms, or
conditions of this Agreement and General Release, to any person or entity
whatsoever, including without limitation, any members of the media (including,
but not limited to, print journalists, newspapers, radio, television, cable,
satellite programs, or Internet media) or any Internet web page or “chat
room,” or any other entity or person, with the exception of Executive’s spouse,
accountant, tax advisor, and/or attorneys. 
Notwithstanding the aforementioned provision, nothing herein shall
preclude Executive from divulging any information to any agency of the federal,
state, or local government pursuant to an official request by such government
agency or pursuant to court order (provided that Executive provides the Company
with prior notice of the contemplated disclosure and reasonably cooperates with
the Company at its expense in seeking a protective order or other appropriate
protection of such information). 
Executive agrees to reasonably cooperate with the Company and its
counsel in connection with any investigation, administrative proceeding or
litigation relating to any matter that occurred during his employment in which
he was involved or of which he has knowledge. 
The Company will reimburse Executive for any reasonable pre-approved
out-of-pocket travel, delivery or similar expenses incurred in providing such
service to the Company.  Executive
represents that he has returned to the Company all property belonging to the
Company, including but not limited to any leased vehicle, laptop, cell phone,
keys, access cards, phone cards and credit cards.

 

 

8.             Governing Law
and Interpretation.  This Agreement
and General Release shall be governed and conformed in accordance with the laws
of the State of Minnesota without regard to its conflict of laws
provision.  In the event Executive or the
Company breaches any provision of this Agreement and General Release, Executive
and the Company affirm either may institute an action to specifically enforce
any term or terms of this Agreement and General Release.  Should any provision of this Agreement and
General Release be declared illegal or unenforceable by any court of competent
jurisdiction and should the provision be incapable of being modified to be
enforceable, such provision shall immediately become null and void, leaving the
remainder of this Agreement and General Release in full force and effect.  Nothing herein, however, shall operate to void
or nullify any general release language contained in the Agreement and General
Release.

 

9.             Non-admission of
Wrongdoing.  Executive agrees neither
this Agreement and General Release nor the furnishing of the consideration for
this Release shall be deemed or construed at any time for any purpose as an
admission by the Company of any liability or unlawful conduct of any kind.

 

10.           Amendment.  This Agreement and General Release may not be
modified, altered or changed except upon express written consent of both
parties wherein specific reference is made to this Agreement and General
Release.

 

11.           Entire Agreement.  This Agreement and General Release sets forth
the entire agreement between the parties hereto and fully supersedes any prior
agreements or understandings between the parties; provided, however, that
notwithstanding anything in this Agreement and General Release, the provisions
in the Employment Agreement which are intended to survive termination of the
Employment Agreement, including but not limited to those contained in Section 10
thereof, shall survive and continue in full force and effect.  Executive acknowledges he has not relied on
any representations, promises, or agreements of any kind made to him in
connection with his decision to accept this Agreement and General Release.

 

EXECUTIVE HAS BEEN ADVISED THAT HE HAS UP TO
TWENTY-ONE (21) CALENDAR DAYS TO REVIEW THIS AGREEMENT AND GENERAL RELEASE AND
HAS BEEN ADVISED IN WRITING TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF
THIS AGREEMENT AND GENERAL RELEASE.

 

EXECUTIVE AGREES ANY MODIFICATIONS, MATERIAL
OR OTHERWISE, MADE TO THIS AGREEMENT AND GENERAL RELEASE DO NOT RESTART OR
AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE (21) CALENDAR DAY CONSIDERATION
PERIOD.

 

HAVING ELECTED TO EXECUTE THIS AGREEMENT AND
GENERAL RELEASE, TO FULFILL THE PROMISES SET FORTH HEREIN, AND TO RECEIVE THE
SUMS AND BENEFITS IN SET FORTH IN THE EMPLOYMENT AGREEMENT, EXECUTIVE FREELY
AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT AND
GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR
MIGHT HAVE AGAINST EMPLOYER.

 

 

IN WITNESS WHEREOF, the parties hereto
knowingly and voluntarily executed this Agreement and General Release as of the
date set forth below:

 

	
   

  	
  Virtual Radiologic Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Leonard
  Purkis

  
	
   

  	
   

  	
  Chief
  Financial Officer

  

 

 

Re:          Agreement and General
Release

 

Dear Leonard:

 

This letter confirms that on [INSERT DATE], I
personally sent to you the enclosed Agreement and General Release.  You have until [INSERT DATE] to consider this
Agreement and General Release, in which you waive important rights, including
those under the Age Discrimination in Employment Act of 1967.  To this end, we advise you to consult with an
attorney of your choosing prior to executing this Agreement and General
Release.

 

	
   

  	
  Regards,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

APPENDIX 1

 

Sean Casey

Chief Executive Officer

Virtual Radiologic Corporation

5995 Opus Parkway, Suite 200

Minnetonka, MN  55343

 

Re: Agreement and General Release

 

Dear Dr. Casey,

 

On [INSERT DATE] I executed an Agreement and
General Release between Virtual Radiologic Corporation and me.  I was advised by Virtual Radiologic
Corporation, in writing, to consult with an attorney of my choosing, prior to
executing this Agreement and General Release.

 

More than seven (7) calendar days have
expired since I executed the above-mentioned Agreement and General
Release.  I have at no time revoked my
acceptance or execution of that Agreement and General Release and hereby
reaffirm my acceptance of it.  Therefore,
in accordance with the terms of our Agreement and General Release, I request
payment of the monies and benefits described in the Employment Agreement (as
defined in the Agreement and General Release).

 

	
   

  	
  Regards,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
  Leonard
  Purkis

  

 

 

Exhibit B

to

Virtual Radiologic Corporation

Employment Agreement

 

Executive has
indicated on this Exhibit all Inventions (as defined in the Employment
Agreement) in which Executive owned any right or interest prior to time
Executive became an employee
of the Corporation.  Executive agrees
that any present or future Inventions not listed in this Appendix are subject
to assignment under the attached Employment Agreement.

 

	
  Brief Description of

  	
   

  	
  Right, Title or Interest

  
	
  Inventions

  	
   

  	
  and Date AcquiredEXHIBIT 4.5

 

STATEMENT
REGARDING RESTRICTIONS ON

TRANSFERABILITY
OF SHARES OF COMMON STOCK

 

(To Appear
on Stock Certificate or to Be Sent upon Request

and without
Charge to Stockholders Issued Shares without Certificates)

 

The
securities of Behringer Harvard REIT II, Inc. are subject to restrictions
on Beneficial and Constructive Ownership and Transfer for the purpose of the
Company’s maintenance of its status as a real estate investment trust under the
Internal Revenue Code of 1986, as amended. 
Subject to certain further restrictions and except as expressly provided
in this Charter, (i) no Person may Beneficially or Constructively Own
Common Shares of the Company in excess of 9.8% (in value or number of Shares)
of the outstanding Common Shares of the Company unless the Person is an
Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (ii) no
Person may Beneficially or Constructively Own Preferred Shares of the Company
in excess of 9.8% (in value or number of Shares) of the outstanding Preferred
Shares of the Company unless the Person is an Excepted Holder (in which case
the Excepted Holder Limit shall be applicable); (iii) no Person may
Beneficially or Constructively Own Shares that would result in the Company
being “closely held” under Section 856(h) of the Code or otherwise
cause the Company to fail to qualify as a REIT; and (iv) no Person may
Transfer Shares if the Transfer would result in the Shares of the Company being
owned by fewer than 100 Persons.  Any
Person who Beneficially or Constructively Owns or attempts to Beneficially or
Constructively Own Shares that cause or will cause a Person to Beneficially or
Constructively Own Shares in excess or in violation of the above limitations
must immediately notify the Company.  If
any of the restrictions on transfer or ownership are or would be violated, the
Shares will be deemed to have automatically transferred to a Trustee of a Trust
for the benefit of one or more Charitable Beneficiaries upon such transfer.  In addition, the Company may redeem Shares
upon the terms and conditions specified by the Board in its sole discretion if
the Board determines that ownership or a Transfer or other event may violate
the restrictions described above.  Furthermore,
upon the occurrence of certain events, attempted Transfers in violation of the
restrictions described above may be void ab initio.

 

Until
the Common Shares are Listed, to purchase Common Shares, the purchaser must
represent to the Company:  (i) that
the purchaser (or, in the case of sales to fiduciary accounts, that the
beneficiary, fiduciary account or grantor or donor who directly or indirectly
supplies the funds to purchase the shares if the grantor or donor is the
fiduciary) has a minimum annual gross income of $70,000 and a net worth
(excluding home, furnishings and automobiles) of not less than $70,000; or (ii) that
the purchaser (or, in the case of sales to 
fiduciary accounts, that the beneficiary, fiduciary account or grantor
or donor who directly or indirectly supplies the funds to purchase the shares
if the grantor or donor is the fiduciary) has a net worth (excluding home,
furnishings and automobiles) of not less than $250,000.  Until the Common Shares are Listed, each
transfer of Common Shares shall comply with the requirements regarding minimum
initial and subsequent cash investment amounts set forth in Company’s
registration statement filed under the Securities Act for the Initial Public
Offering as such registration statement has been amended or supplemented as of
the date of such issuance or transfer.

 

 

All
capitalized terms in this notice have the meanings defined in the Charter of
the Company, as the same may be amended from time to time, a copy of which,
including the restrictions on transfer and ownership, will be furnished to each
holder of Shares of the Company on request and without charge.

 

Note: Instead of the foregoing legend, the certificate may
state that state that the Company will furnish information about the
restrictions on transfer to the Stockholder on request and without charge.

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]