Document:

Exhibit 10.20

 

SENIOR EXECUTIVE

EMPLOYMENT AGREEMENT

 

THIS SENIOR EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”)
by and between CREATIVE COMPUTER APPLICATIONS, INC., (CCA) a California corporation (the “Company”),
and William W. Peterson (the “Executive”).  The effective date of this agreement shall be
the date that the merger between CCA and StorCOMM is consummated.

 

ARTICLE I

DUTIES AND TERM

 

1.1           EMPLOYMENT.  In
consideration of their mutual covenants, Executive’s continued employment with
the Company and other good and valuable consideration, the receipt, adequacy,
and sufficiency of which is hereby acknowledged, the Company agrees to enter
into this Agreement with the Executive, who is currently an employee of
StorCOMM, Inc. on an “at will” basis, and the Executive agrees to enter
into this Agreement as an employee of the Company upon the terms and conditions
herein provided and in accordance with all applicable employment rules of
the Company.

 

1.2           POSITION AND
RESPONSIBILITIES.  The Executive’s position will be Chief Sales, Marketing and Product
Management Executive of the Company.  The
Executives responsibilities will include overall responsibility for the Company’s
sales, marketing and product management activities of the company.  He will be responsible for the strategic
positioning and execution of the marketing and sales plan of the companies
products, and other duties that he may be directed to undertake from time to
time.  He will report to the CEO and be a
member of the Executive Management Committee. 
His office will be located in the Company’s facilities in Jacksonville,
Florida.

 

1.3           TERM.  The term
of the Executive’s employment under this Agreement will commence on the
effective date of this Agreement as first written above and will continue,
unless sooner terminated, for a period of twenty-four (24) months.  Employment of the Executive is at will and
will continue until such time as written notice of termination is given by the
Company or written notice is given by the Executive.

 

1.4           AT-WILL EMPLOYMENT.  Executive
will continue to be employed as an at-will employee of the Company.  Subject to the provisions of Articles III and
IV, as an at-will employee, Executive is free to terminate his employment with
the Company at any time, for any reason, and the Company has the similar right
to terminate Executive’s employment at any time, for any reason.  Although the Company may choose to terminate
Executive’s employment for cause, Executive’s employment is at-will and cause
is not required.

 

ARTICLE II

COMPENSATION

 

For all services rendered by the Executive in any
capacity during the Executive’s employment under this Agreement, the Company
will compensate the Executive as follows:

 

1

 

2.1           BASE SALARY.  Effective
as of the date of this agreement, and for a period of two (2) years
thereafter, the Company will pay to the Executive an annual base salary of ONE
HUNDRED FIFTY THOUSAND DOLLARS ($150,000) to be paid in equal installments in
accordance with the Company’s general payment policies in effect during the
term hereof (the “Base Salary”). 
Executive’s annual base salary may be adjusted, from time to time, by
the Company’s Compensation Committee.  
In addition  the Executive will
receive an accountable relocation expense allowance of $20,000.00 payable as
needed for his relocation to Jacksonville, Florida.  The Executive agrees to complete the
relocation within 180 days of the effective date of this agreement.

 

2.2           MANAGEMENT INCENTIVE
BONUS PLAN.  The Executive shall be eligible to receive a targeted annual bonus based
on performance criteria established annually by the Compensation Committee
pursuant to the Management Incentive Bonus Plan (the “Incentive Bonus”).

 

2.3           STOCK OPTIONS.  Executive
may be granted options to purchase shares of Company Common Stock pursuant to
the Company’s Stock Option Plan.  Any
stock option must be approved by the Compensation Committee.

 

2.4           ADDITIONAL BENEFITS.  The
Executive will be entitled to participate in all benefit and welfare programs,
plans, and arrangements that are from time to time made available to the
Company’s like-level executive employees.

 

ARTICLE III

TERMINATION OF EMPLOYMENT

 

3.1           GENERAL.  While Executive is an at-will
employee as provided at Section 1.3 above, the follow conditions
for termination of employment are set forth in order to determine the nature of
Executive compensation entitlement upon termination of employment as discussed
in Article IV below.  Neither the
provisions of Article III or Article IV of this Agreement shall alter
the at-will nature of Executive’s employment with the Company.

 

3.2           DEATH OR RETIREMENT
OF EXECUTIVE.  The Executive’s employment under this Agreement will automatically
terminate upon the death or Retirement (as defined in Section 6.1)
of the Executive.

 

3.3           BY EXECUTIVE.  The
Executive may terminate the Executive’s employment under this Agreement by
giving Notice of Termination (as defined in Section 6.1 hereof) to
the Company:

 

(a)           for Good
Reason (as defined in Section 6.1 hereof); and

 

(b)           at any
time without Good Reason.

 

2

 

3.4           BY COMPANY.  The
Company may terminate the Executive’s employment under this Agreement by giving
Notice of Termination to the Executive:

 

(a)           in the
event of Executive’s Total Disability (as defined in Section 6.1 hereof);

 

(b)           for
Cause (as defined in Section 6.1 hereof); and

 

(c)           at any
time without Cause.

 

ARTICLE IV

COMPENSATION UPON TERMINATION OF EMPLOYMENT

 

If the Executive’s employment hereunder is terminated,
in accordance with the provisions of Article III hereof, and except
for any other rights or benefits specifically provided for herein to be
effective following the Executive’s period of employment, the Company will
provide compensation and benefits to the Executive only as follows:

 

4.1           UPON TERMINATION FOR DEATH OR
DISABILITY.  If the Executive’s employment hereunder is terminated by reason of the
Executive’s death or Total Disability, the Company will:

 

(a)           pay the
Executive (or the Executive’s estate) or beneficiaries any Base Salary that has
accrued but was not paid as of the termination date (the “Accrued Base
Salary”);

 

(b)           pay the
Executive (or the Executive’s estate) or beneficiaries for unused vacation days
accrued as of the termination date in an amount equal to the Executive’s Base
Salary multiplied by a fraction the numerator of which is the number of accrued
unused vacation days and the denominator of which is 260 (the “Accrued
Vacation Payment”);

 

(c)           reimburse
the Executive (or the Executive’s estate) or beneficiaries for expenses
incurred by him prior to the date of termination that are subject to
reimbursement pursuant to this Agreement (the “Accrued Reimbursable Expenses”);

 

(d)           provide
to the Executive (or the Executive’s estate) or beneficiaries any accrued and
vested benefits required to be provided by the terms of any Company-sponsored
benefit plans or programs (the “Accrued Benefits”), together with any
benefits required to be paid or provided in the event of the Executive’s death
or Total Disability under applicable law;

 

(e)           pay the
Executive (or the Executive’s estate) or beneficiaries any Incentive Bonus with
respect to a prior fiscal year that has accrued but has not been paid (the “Accrued
Incentive Bonus”); and

 

(f)            the
Executive (or the Executive’s estate) or beneficiaries shall have the right to
exercise all vested unexercised stock options and warrants outstanding at the
termination date in accordance with terms of the plans and agreements pursuant
to which such options or warrants were issued.

 

3

 

4.2           UPON TERMINATION BY COMPANY FOR
CAUSE OR BY EXECUTIVE WITHOUT GOOD REASON. 
If the Executive’s employment is terminated by the
Company for Cause, or if the Executive terminates the Executive’s employment
with the Company other than (x) upon the Executive’s death or Total Disability
or (y) for Good Reason, the Company will:

 

(a)           pay the
Executive the Accrued Base Salary;

 

(b)           pay the
Executive the Accrued Vacation Payment;

 

(c)           pay the
Executive the Accrued Reimbursable Expenses;

 

(d)           pay the
Executive the Accrued Benefits, together with any benefits required to be paid
or provided under applicable law;

 

(e)           pay the
Executive any Accrued Incentive Bonus; and

 

(f)            the Executive
will have the right to exercise vested options and warrants in accordance with Section 4.1(f) hereof.

 

4.3           UPON TERMINATION BY THE COMPANY
WITHOUT CAUSE OR BY EXECUTIVE FOR GOOD REASON. 
If the Executive’s employment is terminated by the
Company without Cause or by the Executive for Good Reason, the Company will:

 

(a)           pay the
Executive the Accrued Base Salary;

 

(b)           pay the
Executive the Accrued Vacation Payment;

 

(c)           pay the
Executive the Accrued Reimbursable Expenses;

 

(d)           pay the
Executive the Accrued Benefits, together with any benefits required to be paid
or provided under applicable law;

 

(e)           pay the
Executive any Accrued Incentive Bonus;

 

(f)            pay the
Executive severance, commencing on the thirtieth (30th) day
following the termination date, of six (6) monthly payments equal to his
Monthly Base Salary in effect immediately prior to the time such termination
occurs of six (6) monthly payments equal to his Monthly Base Salary in
effect immediately prior to the time such termination occurs.  Executive will also continue to receive
healthcare benefits during the 6-month period. Severance will be mitigated on a
dollar for dollar basis for any income received by Executive for duties
performed for Company or any third party affiliate during the six (6) months
following termination. The severance payment required under this subsection shall
be conditioned upon the Executive confirming the release in Section 5.2
hereof; and the Executive shall have the right to exercise vested options and
warrants in accordance with Section 4.1(f).

 

4

 

ARTICLE V

ADDITIONAL AGREEMENTS

 

5.1           OTHER AGREEMENTS.  As
further material consideration for the Company entering into this Agreement,
the Executive will also execute the Company’s standard employee confidentially
agreement, inventions assignment agreement, employee business and ethic
policies, securities trading policies, human resource policies, and any other
agreements required to be executed by all like level executives of the Company EMPLOYEE’S
RESTRICTIVE COVENANTS UPON TERMINATION. 
If the Executive’s employment is terminated for any
reason, Executive agrees:

 

(a)           To keep
all of the Company’s Confidential Information confidential in perpetuity in
accordance with the Company’s policy;

 

(b)           To not
hire or solicit for hire or consultation employees of the Company for a period
of one and one-half  (1 1/2) years after
termination of employment; and

 

(c)           To
release the Company from any and all claims, whether known or unknown, except
for those based upon this Agreement. 
Such release shall include the rights of Section 1542 of the
California Civil Code, which provides:

 

“A general release does
not extend to claims which the creditor does not know or suspect to exist in
the Executive’s favor at the time of executing the release, which if known by
him must have materially affected the Executive’s settlement with the debtor.”

 

ARTICLE VI

MISCELLANEOUS

 

6.1           DEFINITIONS.  For
purposes of this Agreement, the following terms will have the following
meanings:

 

(a)           “Accrued
Base Salary” - as defined in Section 4.1(a) hereof.

 

(b)           “Accrued
Benefits” - as defined in Section 4.1(d) hereof.

 

(c)           “Accrued
Incentive Bonus” - as defined in Section 4.1(e) hereof.

 

(d)           “Accrued
Reimbursable Expenses” - as defined in Section 4.1(c) hereof.

 

(e)           “Accrued
Vacation Payment” - as defined in Section 4.1(b) hereof.

 

(f)            “Affiliate”
of a Person means a Person that directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with,
the first Person. “Control” (including the terms “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities, by contract or
credit arrangement, as trustee or executor, or otherwise.

 

5

 

(g)           “Incentive
Bonus” as defined in Section 2.2 hereof.

 

(h)           “Base
Salary” as defined in Section 2.1 hereof.

 

(i)            “Cause”
will mean any willful breach of duty by the Executive in the course of the
Executive’s employment, continued violation of written Company employment
policies after written notice of such violation, violation of the Company’s
Insider Trading Policies, conviction of a felony or any crime involving fraud,
theft, embezzlement, dishonesty or moral turpitude, engaging in activities
which materially defame the Company, engaging in conduct which is material
injurious to the Company or its Affiliates, or any of their respective customer
or supplier relationships, financially or otherwise, or the Executive’s gross
negligence or continued failure to Executive’s duties or his continued
incapacity to perform such duties.

 

(j)            “Compensation
Committee” means the Compensation Committee of the Company’s Board of
Directors.

 

(k)           “Continued
Benefits” as defined in Section 4.3(g) hereof.

 

(l)            “Good
Reason” will mean the occurrence of material breach of this Agreement by
the Company, which breach is not cured within fifteen (15) calendar days after
written notice thereof is received by the Company, or in the event of a Change
of Control, a reduction of total compensation, benefits, and perquisites,
relocation greater than 50 miles, or material change in position or duties.

 

(m)          “Notice
of Termination” will mean a notice which shall indicate the specific
termination provision of this Agreement relied upon and shall generally set
forth the basis for termination of the Executive’s employment under the
provision so indicated.

 

(n)           “Person”
means any natural person, firm, partnership, association, corporation, company,
limited liability company, limited partnership, trust, business trust,
governmental authority, or other entity.

 

(o)           “Retirement”
will mean normal retirement at age 65.

 

(p)           “Severance”
will mean payments after termination of Executive’s employment.

 

(q)           “Total
Disability” will mean the Executive’s failure substantially to perform the
Executive’s duties hereunder on a full-time basis for a period exceeding one
hundred eighty (180) consecutive days or for periods aggregating more than one
hundred eighty (180) days during any twelve (12) month period as a result of
incapacity due to physical or mental illness. 
If there is a dispute as to whether the Executive is or 

 

6

 

was physically or mentally
unable to perform the Executive’s duties under this Agreement, such dispute
will be submitted for resolution to a licensed physician agreed upon by the
Company and the Executive, or if an agreement cannot be promptly reached, the
Company and the Executive will promptly each select a physician, and if these
physicians cannot agree, the physicians will promptly select a third physician
whose decision will be binding on all parties. 
If such a dispute arises, the Executive will submit to such examinations
and will provide such information as such physician(s) may request, and the
determination of the physician(s) as to the Executive’s physical or mental
condition will be binding and conclusive. 
Notwithstanding the foregoing, if the Executive participates in any
group disability plan provided by the Company, which offers long-term
disability benefits, “Total Disability” will mean total disability as
defined therein.

 

6.2           KEY MAN INSURANCE.  The
Company will have the right, in its sole discretion, to purchase “key man”
insurance on the life of the Executive. 
The Company shall be the owner and beneficiary of any such policy.  If the Company elects to purchase such a
policy, the Executive will take such physical examinations and supply such
information as may be reasonably requested by the insurer.

 

6.3           SUCCESSORS; BINDING
AGREEMENT.  This Agreement will be binding upon any successor to the Company and will
inure to the benefit of and be enforceable by the Executive’s personal or legal
representatives, beneficiaries, designees, executors, administrators, heirs,
distributees, devisees and legatees.

 

6.4           MODIFICATION; NO
WAIVER.  This
Agreement may not be modified or amended except by an instrument in writing
signed by the parties hereto.  No term or
condition of this Agreement will be deemed to have been waived, nor will there
be any estoppel against the enforcement of any provision of this Agreement,
except by written instrument by the party charged with such waiver or
estoppel.  No such written waiver will be
deemed a continuing waiver unless specifically stated therein, and each such
waiver will operate only as to the specific term or condition waived and will
not constitute a waiver of such term or condition for the future or as to any
other term or condition.

 

6.5           SEVERABILITY.  The
covenants and agreements contained herein are separate and severable and the
invalidity or unenforceability of any one or more of such covenants or
agreements, if not material to the employment arrangement that is the basis for
this Agreement, will not affect the validity or enforceability of any other
covenant or agreement contained herein.

 

6.6           FORM OF NOTICE TO PARTIES.  All
notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been duly given if (a) delivered personally, (b) mailed
by first-class, registered or certified mail, return receipt requested, postage
prepaid, or (c) sent by next-day or overnight mail or delivery or (d) sent
by telecopy or telegram, to the following address:

 

If to Executive:

 

 

7

 

If to Company:      Creative
Computer Applications, Inc.

26115-A Mureau Road

Calabasas, CA  91302

Attn:  Steven M. Besbeck

Facsimile #818-880-4398

 

or, in each case, at such
other address as may be specified in writing to the other parties hereto.

 

All such notices, requests, demands, waivers and other
communications shall be deemed to have been received (w) if by personal
delivery on the day after such delivery, (x) if by certified or registered
mail, on the seventh (7th) business day after the mailing thereof, (y) if by next-day
or overnight mail or delivery, on the day delivered, (z) if by telecopy or
telegram, on the next day following the day on which such telecopy or telegram
was sent, provided that a copy is also sent by certified or registered mail.

 

6.7           ASSIGNMENT.  This
Agreement and any rights hereunder will not be assignable by either party
without the prior written consent of the other party except as otherwise
specifically provided for herein.

 

6.8           ENTIRE UNDERSTANDING.  This
Agreement constitutes the entire understanding between the parties hereto and
no agreement, representation, warranty or covenant has been made by either
party except as expressly set forth herein.

 

6.9           EXECUTIVE’S REPRESENTATIONS.  The
Executive represents and warrants that neither the execution and delivery of
this Agreement nor the performance of the Executive’s duties hereunder violates
the provisions of any other agreement to which he is a party or by which he is
bound.

 

6.10         GOVERNING LAW .  This
Agreement will be construed in accordance with the laws of the State of
California, without regard to the conflict of laws provisions thereof, with
venue proper only in the County of Los Angeles, California.

 

6.11         ARBITRATION.

 

(a)           Except
as provided in Section 6.11(c) below, the parties hereto agree
that any dispute or controversy arising out of, relating to, or in connection
with this Agreement, or the interpretation, validity, construction,
performance, breach, or termination thereof, shall be finally settled by
binding arbitration, unless otherwise required by law, to be held in Los
Angeles, California under the National Rules for the Resolution of
Employment Disputes of the American Arbitration Association as then in effect
(the “Rules”). The arbitrator(s) may grant injunctions or other relief in such
dispute or controversy. The decision of the arbitrator(s) shall be final,
conclusive and binding on the parties to the arbitration, and judgment may be
entered on the decision of the arbitrator(s) in any court having jurisdiction.

 

(b)           The
arbitrator(s) shall apply California law to the merits of any dispute or claim,
without reference to rules of conflicts of law.

 

8

 

(c)           The
parties may apply to any court of competent jurisdiction for a temporary restraining
order, preliminary injunction, or other interim or conservatory relief, as
necessary, without breach of this arbitration agreement and without abridgement
of the powers of the arbitrator.

 

(d)           EMPLOYEE
HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION. EMPLOYEE
UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EMPLOYEE AGREES TO SUBMIT ANY
CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR
THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION
THEREOF TO BINDING ARBITRATION, UNLESS OTHERWISE REQUIRED BY LAW, AND THAT THIS
ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE’S RIGHT TO A JURY TRIAL AND
RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO EMPLOYEE’S RELATIONSHIP
WITH THE COMPANY, INCLUDING BUT NOT LIMITED TO, CLAIMS OF HARASSMENT,
DISCRIMINATION, WRONGFUL TERMINATION AND ANY STATUTORY CLAIMS.

 

[Signatures on next page]

 

9

 

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

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CREATIVE COMPUTER APPLICATIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Steven M. Besbeck

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Steven M. Besbeck

  	
  Date:

  	
  10/01/05

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ 
  William W. Peterson

  
	
   

  	
  Name: William W. Peterson

  	
  Date:

  	
  10/01/05

  
							

 

10Exhibit
10.21

 

SHAREHOLDER
SUPPORT AGREEMENT

 

This SHAREHOLDER
SUPPORT AGREEMENT (this “Agreement”) is made as of September 29,
2005, by and among StorCOMM, Inc., a Delaware corporation (“StorCOMM”)
and the Shareholders named on Exhibit A hereto (each a “Shareholder”).

 

WHEREAS, each Shareholder
is, as of the date hereof, the record and beneficial owner of the shares of
Common Stock, no par value per share (the “Common Stock”), of Creative
Computer Applications, Inc., a California corporation (“CCA”), set
forth next to such Shareholder’s name on Exhibit A hereto (with respect to
each Shareholder, such “Shareholder’s Shares”); and

 

WHEREAS, CCA, Xymed.com, Inc.,
a wholly owned subsidiary of CCA (“Merger Sub”), and StorCOMM
concurrently herewith are entering into an Agreement and Plan of
Reorganization, dated as of the date hereof (the “Merger Agreement”),
which provides, among other things, for the merger of Merger Sub and StorCOMM
upon the terms and subject to the conditions set forth in the Merger Agreement (the
“Merger”) (all capitalized terms used herein but not defined have the
respective meanings as set forth in the Merger Agreement); and

 

WHEREAS, as a
condition to the willingness of StorCOMM to enter into the Merger Agreement,
and in order to induce StorCOMM to enter into the Merger Agreement, each Shareholder
has agreed to enter into this Agreement.

 

NOW,
THEREFORE, in consideration of the execution and delivery by StorCOMM of the
Merger Agreement and the foregoing and the mutual representations, warranties,
covenants and agreements set forth herein and therein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

SECTION 1.    Representations
and Warranties. Each Shareholder hereby severally but not jointly
represents and warrants, to StorCOMM as follows:

 

(a)           Such
Shareholder is the record and the direct or indirect beneficial owner of such Shareholder’s
Shares.

 

(b)           This
Agreement has been duly authorized, executed and delivered by such Shareholder
and constitutes the legal, valid and binding obligation of such Shareholder,
enforceable against such Shareholder in accordance with its terms, except (i) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors’ rights
generally, and (ii) the availability of the remedy of specific performance
or injunctive or other forms of equitable relief may be subject to equitable
defenses and would be subject to the discretion of the court before which any
proceeding therefor may be brought.

 

(c)           Neither
the execution and delivery of this Agreement nor the consummation by such Shareholder
of the transactions contemplated hereby will result in a violation

 

1

 

of, or a default (with or without notice or lapse of time, or both) under,
or conflict with, any contract, trust, commitment, agreement, understanding,
arrangement or restriction of any kind to which such Shareholder is a party or
bound or to which any of such Shareholder’s Shares are subject. Consummation by
such Shareholder of the transactions contemplated hereby will not violate, or
require any consent, approval, or notice under, any provision of any judgment,
order, decree, statute, law, rule or regulation applicable to such Shareholder
or such Shareholder’s Shares.

 

(d)           Such
Shareholder’s Shares and the certificates representing such Shareholder’s
Shares are now and at all times during the term hereof will be held by such Shareholder,
or by a nominee or custodian for the benefit of such Shareholder, free and
clear of all liens, claims, security interests, proxies, voting trusts or
agreements, understandings or arrangements or any other encumbrances
whatsoever, except for any such encumbrances arising hereunder.

 

(e)           Such
Shareholder represents that such Shareholder has received and reviewed a
complete copy of the Merger Agreement.

 

SECTION 2.    Voting
of Shares; Waiver of Appraisal Rights.

 

(a)           Each
Shareholder hereby agrees that, during the term of this Agreement, at any
meeting (whether annual or special and whether or not an adjourned or postponed
meeting) of the holders of Common Stock, however called, or in connection with
any written consent of the holders of Common Stock, such Shareholder will
appear at the meeting or otherwise cause all of such Shareholder’s Shares, plus
any shares of Common Stock acquired by such Shareholder after the date hereof,
to be counted as present thereat for purposes of establishing a quorum and vote
or consent (or cause to be voted or consented) all of such Shareholder’s
Shares, plus any shares of Common Stock acquired by such Shareholder after the
date hereof, to be voted (i) in favor of adoption of the Merger Agreement
and (ii) against any action or agreement which would impede, interfere,
with or prevent the Merger, including any other extraordinary corporate
transaction, such as a merger, sale of assets, issuance of capital stock,
reorganization or liquidation involving CCA and a third party or any other
proposal of a third party to acquire CCA.

 

(b)           Each
Shareholder hereby waives, and agrees not to exercise or assert, any applicable
dissenters’ rights under California Corporations Code Section 1304 in connection with the Merger.

 

SECTION3.    Transfer
of Shares. Prior to the termination of this Agreement, no Shareholder
shall: (i) transfer (which term shall include, without limitation, for the
purposes of this Agreement, any sale, gift, pledge, transfer by testamentary
disposition or interspousal disposition pursuant to a domestic relations
proceeding, or other disposition including but not limited to a merger,
consolidation or other transfer by operation of law), or consent to any
transfer of, any or all of such Shareholder’s Shares or any interest therein; (ii) enter
into any

 

2

 

contract,
option or other agreement or understanding with respect to any transfer of any
or all of such Shareholder’s Shares or any interest therein; (iii) grant
any proxy other than to vote in favor of the Merger, power-of-attorney or other
authorization or consent in or with respect to such Shareholder’s Shares; or (iv) deposit
such Shareholder’s Shares into a voting trust or enter into a voting agreement
or arrangement with respect to such Shareholder’s Shares.

 

SECTION 4.    Acquisition
Proposal. Each Shareholder agrees that it will immediately cease and cause
to be terminated any existing activities, discussions or negotiations with any
parties conducted heretofore with respect to any proposed Acquisition Proposal.
Each Shareholder agrees that it will not, and will use its best efforts to
ensure that its officers, directors, employees, attorneys, accountants and
other agents do not, directly or indirectly: (i) initiate, solicit or
encourage, or take any action to facilitate the making of, any offer or
proposal which constitutes or is reasonably likely to lead to any Acquisition
Proposal, (ii) enter into any agreement with respect to any Acquisition
Proposal, or (iii) in the event of an unsolicited written proposed Acquisition
Proposal, engage in negotiations or discussions with, or provide any
information or data to, any person (other than StorCOMM, and any of its
affiliates or representatives) relating to any proposed Acquisition Proposal.

 

SECTION 5.    Further
Assurances; Shareholder Capacity.

 

(a)           Each
Shareholder shall, upon request of StorCOMM, execute and deliver any additional
documents and take such further actions as may reasonably be deemed by StorCOMM
to be necessary or desirable to carry out the provisions hereof.

 

(b)           Nothing
in this Agreement shall be construed to prohibit any Shareholder or any
affiliate of any Shareholder who is a member of the Board of Directors of CCA
from taking any action solely in his capacity as a member of the Board of
Directors of CCA to the extent specifically permitted by the Merger Agreement.

 

SECTION 6.    Termination.
This Agreement, and all rights and obligations of the parties hereunder, shall
terminate immediately upon the earlier of (a) the date that the Merger
Agreement is terminated in accordance with its terms or (b) the Effective
Time (as defined in the Merger Agreement).

 

SECTION 7.    Expenses.
All fees and expenses incurred by any one party hereto shall be borne by the
party incurring such fees and expenses.

 

SECTION 8.    Public
Announcements. StorCOMM and each Shareholder agrees that it will not issue
any press release or otherwise make any public statement with respect to this
Agreement or the transactions contemplated hereby without the prior consent of
the other party, which consent shall not be unreasonably withheld or delayed; provided, however, that such disclosure
can be made without obtaining such prior consent if the disclosure is required
by law or by obligations imposed pursuant to any listing agreement with the American
Stock Exchange.

 

3

 

SECTION 9.    Miscellaneous.

 

(a)           All
notices and other communications hereunder shall be in writing and shall be
deemed duly given (a) on the date of delivery if delivered personally, or
by telecopy or telefacsimile, upon confirmation of receipt, (b) on the
first Business Day following the date of dispatch if delivered by a recognized
next-day courier service, or (c) on the fifth Business Day following the
date of mailing if delivered by registered or certified mail, return receipt
requested, postage prepaid.  All notices
hereunder shall be delivered as set forth below, or pursuant to such other
instructions as may be designated in writing by the party to receive such
notice:

 

(A)  if to any Shareholder, to the
address set forth next to such Shareholder’s name on Exhibit A hereto;

 

and

 

(B)  if to StorCOMM, to:

 

StorCOMM, Inc.

7 Corporate Plaza

8649 Baypine Road

Jacksonville, Florida 32256 

Fax:  904.730.8537

Attention:       Samuel G. Elliott

 

(b)           The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

 

(c)           This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the
other parties, it being understood that the parties need not sign the same
counterpart.

 

(d)           This
Agreement constitutes the entire agreement, and supersedes all prior agreements
and understandings, whether written and oral, among the parties hereto with
respect to the subject matter hereof.

 

(e)           This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of Delaware without giving effect to the principles of conflicts of
laws thereof.

 

(f)            This
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by any of the parties hereto (whether by operation of law or
otherwise) without the prior written consent of the other parties. Subject to
the preceding sentence, this Agreement will be binding upon, inure to the
benefit of and be

 

4

 

enforceable by, the parties and their respective heirs, executors,
administrators, successors and assigns, and the provisions of this Agreement
are not intended to confer upon any person other than the parties hereto any
rights or remedies hereunder.

 

(g)           If
any term, provision, covenant or restriction herein is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable
or against its regulatory policy, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

 

(h)           Each
of the parties hereto acknowledges and agrees that in the event of any breach
of this Agreement, each non-breaching party would be irreparably and
immediately harmed and could not be made whole by monetary damages. It is
accordingly agreed that the parties hereto will waive, in any action for
specific performance, the defense of adequacy of a remedy at law and or in
equity, to compel specific performance of this Agreement in any action
instituted in any state or federal court.

 

(i)            No
amendment, modification or waiver in respect of this Agreement shall be effective
against any party unless it shall be in writing and signed by such party.

 

 

[Remainder of Page Intentionally Left Blank]

 

5

 

IN WITNESS
WHEREOF, StorCOMM and each Shareholder has executed and delivered or caused
this Agreement to be duly executed and delivered as of the date first written
above.

 

	
   

  	
  STORCOMM

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Sam Elliott

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SHAREHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:  Steven M. Besbeck, an
  individual

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Bruce M. Miller, an individual

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: James R. Helms, an individual

  
					

 

6

 

EXHIBIT A

 

	
  SHAREHOLDERS

  	
   

  	
  SHARES OWNED

  	
   

  
	
  Steven M. Besbeck

  25769 Vista Verde Dr.

  Calabasas, CA 91302

  	
   

  	
  280,700

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bruce M. Miller

  27806 Blythedale Rd.

  Agoura Hills, CA 91301

  	
   

  	
  350,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  James R. Helms

  2126 Bridgegate Ct.

  Westlake Village, CA

  91361

  	
   

  	
  111,800

  	
   

  

 

7

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