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Exhibit 10.48    
  

WARRANT  

        NEITHER THIS WARRANT NOR ANY SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED UNLESS (A) SUBSEQUENTLY REGISTERED PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS OR (B) THE HOLDER HEREOF SHALL HAVE DELIVERED TO THE COMPANY A WRITTEN OPINION OF COUNSEL, IN FORM,
SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY, TO THE EFFECT THAT THE SHARES TO BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED ARE BEING OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION. 

ELECTRIC CITY CORP.  

 WARRANT TO PURCHASE COMMON STOCK  

	Warrant No.: 33	 	Number of Shares: 50,000
	Original Date of Issuance: February 27, 2003	 	 

        Electric
City Corp., a Delaware corporation (the "Company"), hereby certifies that, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, CapStone Investments, the registered holder hereof or its permitted assigns registered on the books of the Company (the  "Holder"), is entitled, subject to
the terms and conditions set forth below, to purchase from the Company upon surrender of this Warrant, at any time or
times on or after the date hereof, but not after 5:00 P.M. Eastern Standard Time on February 26, 2006 (the "Expiration Date"), Fifty
Thousand (50,000) fully paid and nonassessable shares (the "Warrant Shares") of the Company's common stock, par value $0.0001 per share (the  "Common Stock"), at the exercise price per share equal to $1.37, subject to adjustment as hereinafter provided (the "Warrant
Exercise Price"). 

        Section 1.    Definitions.    In addition to the capitalized terms defined elsewhere herein, the following
terms as used in this Warrant shall have the following meanings: 

          (i)  "Business Day" means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York
are authorized or required by law to remain closed. 

        (ii)  "Person" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization or a government or any department or agency thereof. 

        (iii)  "Securities Act" means the Securities Act of 1933, as amended. 

        Section 2.    Exercise of Warrant.    

        (a)  Subject
to the terms and conditions hereof, this Warrant may be exercised by the Holder, in whole or in part, during normal business hours on any Business Day on or
after the date hereof and prior to 5:00 P.M. Eastern Standard Time on the Expiration Date by (i) delivery of a duly executed written notice, in the form of the subscription notice
attached as Exhibit A hereto (the "Exercise Notice"), of such Holder's election to exercise this
Warrant, which notice shall specify the number of Warrant Shares to be purchased, (ii) payment to the Company of an amount equal 

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to the Warrant Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the "Aggregate Exercise Price")
in cash or by certified check or wire transfer of immediately available funds, and (iii) delivery to the Company of this Warrant (or an indemnity and evidence with respect to this Warrant in
the case of its loss, theft, mutilation or destruction as provided in Section 11). In the event of any exercise of the rights represented by this Warrant in compliance with this
Section 2(a), the Company shall, on or before the tenth (10th) Business Day following the date of its receipt of the Exercise Notice, the Aggregate Exercise Price and this Warrant
(or an indemnity and evidence with respect to this Warrant in the case of its loss, theft, mutilation or destruction as provided in Section 11) (the "Exercise Delivery
Documents"), deliver at the Company's expense to the Holder, a certificate or certificates for the Warrant Shares so purchased, in such denominations as may be requested by
Holder and registered in the name of Holder. Upon the Company's receipt of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of
the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of certificates evidencing such Warrant Shares. 

        (b)  Unless
the rights represented by this Warrant shall have expired or shall have been fully exercised, the Company shall, as soon as practicable and in no event later than
ten (10) Business Days after any exercise and at its own expense, issue a new Warrant identical in all respects to this Warrant exercised, except it shall represent rights to purchase the
number of Warrant Shares purchasable immediately prior to such exercise under this Warrant exercised, less the number of Warrant Shares with respect to which this Warrant is exercised. 

        (c)  No
fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock issued upon exercise of this
Warrant shall be rounded up or down to the nearest whole number. 

        Section 3.    Covenants.    The Company hereby represents, covenants and agrees as follows: 

        (a)  This
Warrant is, and any Warrants issued in substitution for or replacement of this Warrant will upon issuance be, duly authorized and validly issued. 

        (b)  All
Warrant Shares which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued, fully paid and nonassessable
and free from all taxes, liens and charges with respect to the issue thereof. 

        (c)  Prior
to exercise of this Warrant, the Company shall secure the listing of the Warrant Shares upon each national securities exchange or market, if any, upon which shares
of Common Stock are then listed (subject to official notice of issuance upon exercise of this Warrant) and shall maintain such listing of the Warrant Shares so long as any other shares of Common Stock
shall be so listed. 

        (d)  The
Company has full power and authority to enter into this Warrant, and to issue and deliver this Warrant and the Warrant Shares, and to incur and perform fully the
obligations provided herein, all of which have been duly authorized by all necessary corporate action. 

        (e)  This
Warrant has been duly executed and delivered and is the valid and binding obligation of the Company enforceable in accordance with its terms. 

        Section 4.    Taxes.    The Company shall pay any and all taxes, except income taxes, which may be payable with
respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant. 

        Section 5.    Holder Not Deemed a Stockholder.    Except as otherwise specifically provided herein, this
Warrant shall not entitle Holder to vote or receive dividends or any other rights of a stockholder of the Company, including, without limitation, any right to vote, give or withhold consent to any
corporate 

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action (whether a reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings or receive subscription rights. 

        Section 6.    Representations of Holder.    The Holder, by the acceptance hereof, represents and warrants that
it (a) is acquiring this Warrant and the Warrant Shares solely for its own account, for investment and not with a view towards the distribution or resale thereof in violation of the Securities
Act or any applicable state securities laws, (b) has received such documents, materials and information as Holder deems necessary or appropriate for evaluation of the acquisition of the Warrant
and the Warrant Shares, (c) is an "accredited investor" as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act and has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the Warrant and the Warrant Shares, (d) understands that no U.S. federal,
state or regulatory agency has recommended, approved or endorsed, or passed upon the fairness or suitability of, an investment in the Warrant or Warrant Shares or passed up on the accuracy or adequacy
of the information provided to Holder, and (e) recognizes that an investment in the Warrant Shares involves a high degree of financial risk, can bear the economic risk of losing its entire
investment in the Warrant Shares and has sought, or will seek, such accounting, legal and tax advice as it has considered, or will consider, necessary to make an informed investment decision with
respect to its acquisition of this Warrant and Warrant Shares. If Holder cannot make any of the foregoing representations at the time of exercising this Warrant because it would be factually
incorrect, Holder shall so notify the Company, and it shall be a condition to Holder's exercise of this Warrant that the Company receive such other assurances as the Company considers reasonably
necessary to assure the Company that the issuance of the Warrant Shares upon exercise of this Warrant shall not violate the Securities Act or any state securities laws. 

        Section 7.    Restriction on Transfer.    

        (a)  This
Warrant and the rights granted to Holder are transferable, in whole or in part, upon surrender of this Warrant, together with a properly executed warrant power in
the form of Exhibit B attached hereto; provided, however, that any transfer or assignment shall be subject to the approval of the Company, such
approval not to be unreasonably withheld and the conditions set forth in Section 7(b) below. 

        (b)  Holder
represents and warrants that it understands that the Company is under no obligation to register this Warrant or the Warrant Shares under the Securities Act and
that the Warrant and Warrant Shares will be characterized as "restricted securities" under the Securities Act because they are being acquired from the Company in a transaction not involving a public
offering. Holder also represents and warrants that it understands that neither the Warrant nor the Warrant Shares may be offered for sale, sold, assigned or transferred unless (a) subsequently
registered pursuant to an effective registration statement under the Securities Act and applicable state securities laws or (b) Holder shall have delivered to the Company a written opinion of
counsel, in form, substance and scope reasonably acceptable to the Company, to the effect that the securities to be offered for sale, sold, assigned or transferred are being offered for sale, sold,
assigned or transferred pursuant to an exemption from such registration. 

        (c)  Unless
upon their issuance such Warrant Shares are then registered under the Securities Act pursuant to an effective registration statement, any certificates
representing Warrant Shares issued in accordance with this Warrant shall bear a legend substantially in the following form: 

        THE
SHARES OF COMMON STOCK OF ELECTRIC CITY CORP. (THE "COMPANY") REPRESENTED BY THIS CERTIFICATE (THE "SHARES") HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED UNLESS (A) SUBSEQUENTLY REGISTERED PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 

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SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (B) THE HOLDER HEREOF SHALL HAVE DELIVERED TO THE COMPANY A WRITTEN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE REASONABLY
ACCEPTABLE TO THE COMPANY, TO THE EFFECT THAT THE SHARES TO BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED ARE BEING OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO AN EXEMPTION FROM
SUCH REGISTRATION. 

        Section 8.    This Section has been left blank intentionally.    

        Section 9.

        (a)    Adjustment of Warrant Exercise Price and Number of Warrant Shares upon Subdivision or Combination of Company
Stock.    If the Company at any time after the date of issuance of this Warrant subdivides (by any stock split or stock dividend of its Common Stock) its outstanding
shares of Common Stock into a greater number of shares of Common Stock, the Warrant Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of
Warrant Shares obtainable upon exercise of this Warrant will be proportionately increased. If the Company at any time after the date of issuance of this Warrant combines (by reverse stock split or
otherwise) its outstanding shares of Common Stock into a smaller number of shares of Common Stock, the Warrant Exercise Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Shares obtainable upon exercise of this Warrant will be proportionately decreased. Any adjustment under this Section 9(a) shall become effective at the close
of business on the date the subdivision or combination becomes effective. 

        (b)    Notices.    Upon any adjustment of the Warrant Exercise Price or number of issuable Warrant Shares pursuant to
Section 9(a), the Company will give written notice thereof to the Holder, setting forth in reasonable detail the calculation of such adjustment. 

        Section 10.    Reorganization, Reclassification, Consolidation, Merger or Sale.    If at any time, as a result
of: 

          (i)  a
capital reorganization or reclassification (other than a subdivision or combination provided for in Section 9), or 

        (ii)  a
merger or consolidation of the Company with another corporation (whether or not the Company is the surviving corporation) or sale of substantially all of the
Company's stock, the Common Stock issuable upon exercise of this Warrant shall be changed into or exchanged for the same or a different number of shares of any class or classes of capital stock of the
Company or any other Person, or other securities convertible into such shares, then, as a part of such reorganization, reclassification, merger, consolidation or sale, appropriate adjustments shall be
made in the terms of this Warrant (or of any securities into which this Warrant is exercised or for which this Warrant is exchanged), so that Holder shall thereafter be entitled to receive, upon
exercise of this Warrant or of such substitute securities, the kind and amount of shares of stock, other securities, money and property which Holder would have received at the time of such capital
reorganization, reclassification, merger, consolidation or sale, if Holder had exercised this Warrant immediately prior to such capital reorganization, reclassification, merger, consolidation or sale.
This Warrant, including, without limitation, the provisions of this Section 10 will be binding upon any entity succeeding to the Company by merger, consolidation or acquisition of all or
substantially all of the Company's assets. The provisions of this Section 10 shall similarly apply to (x) successive capital reorganizations, reclassifications, mergers, consolidations
and sale and (y) the securities of any other Person that are at the time receivable upon the exercise of this Warrant. 

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        Section 11.    Lost, Stolen, Mutilated or Destroyed Warrant.    If this Warrant is lost, stolen, mutilated or
destroyed, the Company shall promptly, on receipt of evidence reasonably satisfactory to the Company of the ownership of, and the loss, theft, mutilation or destruction of, this Warrant, and an
indemnity reasonably satisfactory to the Company (or in the case of a mutilated Warrant, the Warrant), issue in lieu thereof a new Warrant of like denomination and tenor as this Warrant so lost,
stolen, mutilated or destroyed. 

        Section 12.    Notice.    Any notices, consents, waivers or other communications required or permitted to be
given under the terms of this Warrant must be in writing and will be deemed to have been made upon receipt when delivered personally, via pre-paid overnight courier or by certified mail,
postage pre-paid, return receipt requested. The addresses for such communications shall be: 

If
to the Company: 

Electric
City Corp.

1280 Landmeier Road

Elk Grove Village, IL 60007

Attention: General Counsel

If
to the Holder: 

CapStone
Investments

4660 La Jolla Village Drive

Suite 1040

San Diego, CA 92122

Attention: President

or
such other address as the Company or Holder, as applicable, may specify in written notice given to the other party in accordance with this Section 12. 

        Section 13.    Amendments.    This Warrant and any term hereof may be changed, waived, discharged, or
terminated only by an instrument in writing signed by the party hereto against which enforcement of such change, waiver, discharge or termination is sought. 

        Section 14.    Expiration.    This Warrant, in all events, shall be wholly void and of no effect after
5:00 P.M. Eastern Standard Time on the Expiration Date, except that notwithstanding any other provisions hereof, the provisions of Section 7 shall continue in full force and effect after
such date as to any Warrant Shares or other securities issued upon the exercise of this Warrant. 

        Section 15.    Successors and Assigns.    The terms and provisions of this Warrant shall inure to the benefit
of, and be binding upon, the Company and the Holder and their respective successors and permitted assigns. 

        Section 16.    Descriptive Headings; Governing Law; Arbitration.    The descriptive headings of the several
sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant. All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois. 

        In
the event of any and all disagreements and controversies arising from this Warrant, such disagreements and controversies shall be subject to binding arbitration as arbitrated in
accordance with the then current Commercial Arbitration Rules of the American Arbitration Association in Chicago, Illinois before one neutral arbitrator. Either party may apply to the arbitrator
seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Without waiving any 

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remedy under this Warrant, either party may also seek from any court having jurisdiction any interim or provisional relief that is necessary to protect the rights or property of that party, pending
the establishment of the arbitral tribunal (or pending the arbitral tribunal's determination of the merits of the controversy). In the event of any such disagreement or controversy, neither party
shall directly or indirectly reveal, report, publish or disclose any information relating to such disagreement or controversy to any person, firm or corporation not expressly authorized by the other
party to receive such information or use such information or assist any other person in doing so, except to comply with actual legal obligations of such party, or unless such disclosure is directly
related to an arbitration proceeding as provided herein, including, but not limited to, the prosecution or defense of any claim in such arbitration. The costs and expenses of the arbitration
(excluding attorneys' fees) shall be paid by the non-prevailing party or as determined by the arbitrator. 

        IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by a duly authorized officer, as of the 27th day of
February 2003. 

	 	 	ELECTRIC CITY CORP.
	

 	
 	
By:	

 
	 	 	 	

	

 	
 	

Name: John Mitola
	

 	
 	

Title: Chief Executive Officer

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EXHIBIT A TO WARRANT  

SUBSCRIPTION FORM  

 TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT  

 ELECTRIC CITY CORP.  

        The undersigned Holder hereby exercises the right to
purchase                        of the shares of Common Stock ("Warrant
Shares") of Electric City Corp., a Delaware corporation (the "Company"), evidenced by the attached Warrant (the  "Warrant"). The
Holder tenders herewith payment of the Aggregate Exercise Price in full in the amount of $                        in the form of
cash, certified
check or wire transfer of immediately available funds with respect to                        Warrant Shares. Capitalized terms
used herein and not otherwise defined shall have the respective meanings set
forth in the Warrant. 

Date:                            ,
200            

Name
of Holder 

	By:	 	 	 	 
	 	 	
	 	 
	 	 	Name:	 	 	 
	 	 	 	
	 	 
	 	 	Title:	 	 	 
	 	 	 	
	 	 

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EXHIBIT B TO WARRANT  

FORM OF WARRANT POWER  

        FOR VALUE RECEIVED, the undersigned does hereby assign and transfer
to                        , a warrant to
purchase                        shares of the Common Stock of
Electric City Corp., a Delaware corporation, represented by warrant certificate no.            , standing in the name of the undersigned on the books of said corporation. The undersigned
does
hereby irrevocably constitute and appoint                        , to transfer the warrants of said corporation, with full power
of substitution in the premises. 

Dated:                        ,
200            

	 	 	

	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	 	

	 	 	Its:	 
	 	 	 	

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Exhibit 10.49    
  

EMPLOYMENT AGREEMENT  

        This Employment Agreement ("Agreement"), dated as of January 13, 2003 (the "Effective Date"), is made by and among John P. Mitola
("Mr. Mitola") and Electric City Corp., a Delaware corporation (the "Company"). 

        WHEREAS, Mr. Mitola is currently employed by the Company as its Chief Executive Officer; and 

        WHEREAS, Mr. Mitola's employment with the Company has been governed pursuant to an employment agreement dated as of the
18th day of November 1999, under which Mr. Mitola commenced his employment with the Company on January 1, 2000 and which employment agreement expires on December 31,
2002; and 

        WHEREAS, the members of the Board of Directors of the Company desire to enter into an employment agreement with Mr. Mitola, which
employment agreement will continue the term of Mr. Mitola's employment from January 1, 2003 through December 31, 2005; and 

        WHEREAS, the Compensation Committee of the Board of Directors has entered into negotiations with Mr. Mitola in order to mutually
agree on the terms and conditions of such continuation of employment; and 

        WHEREAS, the agreed upon terms and conditions of Mr. Mitola's continued employment are embodied in this Agreement. 

        NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and
Mr. Mitola do hereby agree as follows: 

        Section 1.    Employment and Duties.    On the terms and subject to the conditions set forth in this Agreement,
subject to the approval and ratification of the Compensation Committee of the Board of Directors and subject to the approval and ratification of the Board of Directors, including the approval and
ratification of a majority of the independent directors of the Board of Directors, such approvals to be obtained prior to the Effective Date, the Company agrees to employ Mr. Mitola as its
Chief Executive Officer to render such services as would be customary for a chief executive officer and to render such other services and discharge such other responsibilities as the Board of
Directors of the Company may, from time to time, stipulate and which shall not be inconsistent with the position of Chief Executive Officer. Mr. Mitola's employment pursuant to this Agreement
shall commence on January 1, 2003 and terminate on December 31, 2005, unless earlier terminated pursuant to the termination provisions of this Agreement. 

        Section 2.    Performance.    (a) Mr. Mitola accepts the employment as set forth in
Section 1 herein and agrees to concentrate all of his professional time and efforts to the performance of the services described therein, including the performance of such other services and
responsibilities as the Board of Directors of the Company may from time to time stipulate and which shall not be inconsistent with the position of Chief Executive Officer. 

        (b)  Without
limiting the generality of the foregoing, Mr. Mitola ordinarily shall devote not less than five (5) days per week (except for vacations and regular
business holidays observed by the Company) on a full-time basis, during normal business hours Monday through Friday. Mr. Mitola further agrees that when the performance of his
duties reasonably requires, he shall be present on the Company's premises or engaged in service to or on behalf of the Company at such times except during vacations, regular business holidays or
weekends. 

        (c)  Notwithstanding
the foregoing, the Company agrees that Mr. Mitola has the right to participate in outside activities, including but not limited to serving on
boards of directors for civic, charitable or business organizations, in a paid or unpaid capacity, so long as such activities are not in 

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direct conflict with Mr. Mitola's obligations as outlined herein. Further, Mr. Mitola will have reasonable, limited use of the Company's resources and reasonable time during the
Company's business hours to pursue such activities so long as such activities do not unreasonably interfere with his obligations as Chief Executive Officer. When reasonable and consistent with the
objectives of the Company, the Company agrees to provide modest financial support to those organizations in which Mr. Mitola becomes involved, subject to prior approval by the Audit Committee
of the Board of Directors. Upon request by the Company, Mr. Mitola agrees to furnish to the Company a list of organizations in which he is involved, including a description of his involvement
in such organizations and the amount of remuneration received or expected to be received from such involvement. 

        Section 3.    Term/Termination.    

        3.1    Term.    The term of employment under this Agreement (the "Employment Period") shall commence on
January 1, 2003 and shall terminate on December 31, 2005 unless earlier terminated pursuant to the termination provisions set forth herein. Notwithstanding anything to the contrary
herein, the parties acknowledge and agree that Mr. Mitola's employment may be terminated only for Due Cause (as hereinafter defined). At the end of the Employment Period, the continuation of
Mitola's employment with the Company shall be at the will of the Company and Mr. Mitola on terms and conditions agreed to by the Company and Mr. Mitola and there shall be no obligation
on the part of the Company or Mr. Mitola to continue such employment, provided, however, that not later than September 1, 2005, the Company and Mr. Mitola shall provide to each
other reasonably specific notice of their respective intentions with regard to continuation of Mr. Mitola's employment subsequent to the Employment Period. 

        3.2    Termination for Due Cause.    The Employment Period may be terminated for Due Cause only for the following
reasons and upon the terms and conditions set forth in this Section 3.2. The Company, by a vote of a majority of the Board of Directors, including a majority of the independent directors (a
"Termination Vote") and upon the consent of the holders of the Company's Series A Convertible Preferred Stock pursuant to Section 2.5(c) of the Stockholders Agreement between such
holders and the Company, may terminate the Employment Period, effective upon written notice of such termination to Mr. Mitola, such notice made pursuant to Section 6 herein, in the event
of (i) a material breach by Mr. Mitola of his covenants under this Agreement if such material breach is not remedied within fifteen (15) calendar days following written notice by
the Company; (ii) commission by Mr. Mitola of theft or embezzlement of property of the Company or other acts of dishonesty of a material nature; (iii) commission by
Mr. Mitola of a crime resulting in a material injury to the businesses, properties or reputations of the Company or any of its affiliates; (iv) commission of an act by Mr. Mitola
in the performance of his duties hereunder reasonably determined by a majority of the board of directors of the Company to constitute gross, willful or wanton negligence; (v) willful refusal to
perform or substantial neglect of the duties assigned to Mr. Mitola pursuant to Section 1 of this Agreement if such refusal or neglect is not remedied within fifteen (15) calendar
days following written notice by the Company; or (vi) any significant violation of any statutory or common law duty of loyalty to the Company or its affiliates. All compensation paid to
Mr. Mitola shall immediately cease upon termination for Due Cause hereunder except accrued and unpaid compensation and all unvested Stock Options shall immediately expire. 

        3.3    Termination Due to Death.    The Employment Period shall be terminated upon the death of Mr. Mitola. All
compensation paid to Mr. Mitola shall immediately cease upon such termination except for accrued and unpaid compensation pursuant to Section 4.1 herein and earned but unpaid bonus
payments pursuant to Section 4.2 herein. All unvested Stock Options shall immediately become vested. 

        3.4    Termination Due to Permanent Total Disability.    The Employment Period shall be terminated upon the Permanent
Total Disability (as defined in this Section 3.4) of Mr. Mitola following written notice from the Company. Permanent Total Disability is defined as an inability by Mr. Mitola to 

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perform substantially all of the services required pursuant to this Agreement for a continuous period of one-hundred eighty (180) days or for a period aggregating at least
one-hundred eighty (180) days in any consecutive twelve (12) month period when such inability is caused by illness or a physical or mental disability. Such Permanent Total
Disability shall be determined by a physician selected jointly by the parties hereto. 

        3.5    Termination Other Than Due Cause, Death, Disability or Resignation.    In the event that Mr. Mitola's
employment is terminated for reasons other than Due Cause, death, Permanent Total Disability or resignation, then all Stock Options scheduled to vest within one year of the date of such termination
shall vest immediately and the Company shall pay as severance compensation to Mr. Mitola the greater of (i) the balance due under the terms of this Agreement or (ii) six
(6) months salary compensation at his then annual salary compensation rate, including bonus earned as of the termination date. Any severance compensation paid to Mr. Mitola shall be paid
ratably over the remaining payment period following termination. Any bonus compensation earned as of the termination date shall be paid to Mr. Mitola pursuant to the bonus payment schedule set
forth in Section 4.2 herein. 

        3.6    Termination by Mr. Mitola.    Mr. Mitola may terminate the Employment Period (i) in the
event the Company has breached a material term or condition of this Agreement which is not cured or remedied within fifteen (15) days following such breach or (ii) at Mr. Mitola's
convenience. In the event that Mr. Mitola's resignation is due to an uncured breach by the Company, such resignation shall be deemed a termination by the Company as without Due Cause for
purposes of vesting of Stock Options pursuant to Section 4.3 herein and for payments of salary and bonus compensation as set forth in Sections 4.1 and 4.2, respectively, herein. In the event
that the Employment Period is terminated by Mr. Mitola at his convenience, then Mr. Mitola will be due any earned but unpaid salary, vacation and bonus compensation as set forth in
Sections 4.1 and 4.3, respectively, herein. All vested stock options not exercised by Mr. Mitola within ninty (90) days following the termination date shall be cancelled. Any unvested
Stock Options shall be cancelled as of this termination date. 

        3.7    Surrender of Properties.    Upon termination of Mr. Mitola's employment with the Company, regardless of
the cause therefore, Mr. Mitola shall promptly be deemed to have resigned from the Company's Board of Directors and as an officer and director of any of the Company's affiliates, if serving as
such at that time, and shall surrender to the Company or its affiliates all property provided to him by the Company or its affiliates, as applicable, for use in relation to his employment and further,
Mr. Mitola shall surrender to the Company or its affiliates, as applicable, any and all sales materials, lists of customers and prospective customers, price lists, files, patent applications,
records, models or other materials and information of or pertaining to the Company or its affiliates or their customers or prospective customers or the products, businesses and operations of the
Company or its affiliates. 

        3.8    Survival of Covenants.    The covenants of Mr. Mitola set forth in Section 5 herein shall survive
the termination of the Employment Period or termination of this Agreement. 

        Section 4.    Compensation/Expenses.    

        4.1    Salary.    In exchange for the services to be rendered by Mr. Mitola hereunder, the Company agrees to
pay, during the Employment Period, a salary at an annual rate of Two-Hundred Fifty-Thousand dollars ($250,000) which salary shall be payable in equal semi-monthly installments,
beginning not later than January 15, 2003, or at such other intervals, but not less than once per month, as may be consistent with the Company's normal compensation schedule. 

        4.2    Bonus.    (a) Mr. Mitola shall be entitled to a one-time bonus which shall be awarded
upon the achievement by the Company of two consecutive calendar quarter periods of positive net income (such net income to be that as reflected in the Company's quarterly reports filed with the
Securities 

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and Exchange Commission for such quarterly periods and such quarterly reports to be reviewed by the Company's independent auditors and Audit Committee prior to such filings) (the "Financial
Performance Bonus"). The amount of such Financial Performance Bonus shall be Two-Hundred Fifty-Thousand dollars ($250,000), which amount shall be paid to Mr. Mitola in ten
(10) equal monthly installments beginning on the first calendar month following the recommendation and approval of payment of the bonus award by the Compensation Committee of the Board of
Directors and approval by the Board of Directors, including approval by a majority of the independent directors with respect to the approval by the Board of Directors. 

        (b)  The
Company shall establish an annual bonus plan of which certain management employees of the Company shall be eligible to participate, which annual bonus plan shall
comprise a calendar year (the "Plan Year"). Mr. Mitola will be eligible to participate in such annual bonus plan during the term of this Agreement with goals (the "Annual Goals") established
and approved by the Compensation Committee of the Board of Directors and subject to approval of the Board of Directors. Pursuant to this annual bonus plan, Mr. Mitola shall be eligible to earn
a bonus equal to 100% of his then current annual base compensation as set forth in Section 4.1 herein. The goals that shall serve as the basis of evaluation for any payments awarded pursuant to
the Company's annual bonus plan shall be established and approved by the Compensation Committee of the Board of Directors and approved by the Board of Directors. At the conclusion of the Plan Year,
the Compensation Committee of the Board of Directors shall determine the level of success achieved by Mr. Mitola against the Annual Goals and recommend the amount of the annual bonus plan
payment to the Board of Directors. If Mr. Mitola's employment is terminated for reasons other than Due Cause or his voluntary resignation, he will be entitled to receive any bonus earned up to
the date of termination as reasonably determined by the Compensation Committee. All payments related to the annual bonus plan are subject to the prior approval by the Board of Directors. 

        4.3    Stock Options.    (a) The Company hereby grants to Mr. Mitola stock options (the "Stock Options")
to purchase Seven-Hundred Fifty-Thousand (750,000) shares of the Company's common stock at a price per share that is equal to the average closing price of the Company's common stock as measured over
the thirty (30) trading day period prior to the Effective Date but such price to be not less than the
closing price per share of the Company's common stock on the Effective Date (the "Exercise Price"). Such Stock Options shall vest in accordance with the following schedule: 

	•
	On
December 31, 2003, so long as Mr. Mitola is employed by the Company as its Chief Executive Officer on such date, Mr. Mitola shall
become immediately vested in Stock Options to purchase Two-Hundred Fifty-Thousand (250,000) shares of the Company's common stock at the Exercise Price;

	•
	On
December 31, 2004, so long as Mr. Mitola is employed by the Company as its Chief Executive Officer on such date, Mr. Mitola shall
become immediately vested in Stock Options to purchase Two-Hundred Fifty-Thousand (250,000) shares of the Company's common stock at the Exercise Price;

	•
	On
December 31, 2005, so long as Mr. Mitola is employed by the Company as its Chief Executive Officer on such date, Mr. Mitola shall
become immediately vested in Stock Options to purchase Two-Hundred Fifty-Thousand (250,000) shares of the Company's common stock at the Exercise Price. 

        (b)    Registration Rights.    Mr. Mitola shall have piggy-back registration rights for all shares
of the Company's common stock obtained through the exercise of any Stock Options granted pursuant to this Section 4.3 for any registration statement filed by the Company with the Securities and
Exchange Commission, except that Mr. Mitola agrees to waive his registration rights for any registration undertaken at the request of, or registration that includes, the holders of the
Company's Series A Convertible Preferred Stock and/or the Company's Series C Convertible Preferred Stock and/or the 

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rights of any other holders of the Company's preferred stock to the extent that such waiver is requested by such holders. In addition, Mr. Mitola agrees that his registration rights shall be
subject to underwriter cutbacks as may be requested by an underwriter with respect to a registration of the Company's common stock. The Company shall bear the cost of registering the shares pursuant
to this Section 4.3.1. 

        (c)    Sale of Assets: Change in Control.    For all purposes of this Agreement, a "Change in Control" shall be deemed
to have occurred when (i) the Company is merged or consolidated with another entity which is not then controlled by the Company and, as a result, such merger or consolidation results in at
least fifty-one percent (51%) or greater of the Company's common stock being controlled or owned by another entity, or (ii) a majority of the Company's assets are sold or otherwise
transferred to another entity that is not then controlled by or affiliated with the Company. Upon the occurrence of a Change in Control, the Stock Options granted pursuant to this Section 4.3
shall be automatically and immediately vested and become exercisable by Mr. Mitola subject to the terms of this Agreement. 

        (d)    Terms Governing Stock Options.    Unless otherwise provided herein, the terms of the Stock Options granted
pursuant to this Section 4.3 shall be governed in accordance with the provisions of the Company's 2001 Employee Stock Incentive Plan. The Stock Options issued pursuant to this agreement
shall be incentive stock options to the extent permitted by law and the terms of the Plan, and the balance shall be non-qualified options. If Mr. Mitola's employment with the
Company is terminated for Due Cause (as hereinafter defined) or voluntary resignation, such Stock Options not vested as of such termination date shall terminate. If Mr. Mitola's employment with
the Company is terminated for reasons other than Due Cause (except a voluntary resignation) or upon his death or Permanent Total Disability, then any Stock Options vested as of such date shall survive
under the terms of this Agreement and any unvested Stock Options as of such date shall then vest pursuant to the terms of this Section 4.3. All granted but unexercised Stock Options shall
terminate ten years from the Effective Date of this agreement. 

        4.4    Insurance.    During the Employment Period, the Company shall continue to provide, at its expense and if
Mr. Mitola continues to be eligible and qualifies for such benefits, (i) long-term disability insurance providing for disability benefits substantially equivalent to such
benefits currently provided to him, (ii) term life insurance benefits substantially equivalent to such benefits currently provided to him, (iii) medical and dental (if offered by the
Company) insurance for Mr. Mitola and his family substantially equivalent to such benefits provided to other employees of the Company, (iv) directors and officers liability insurance, in
such amount as may be determined by the board of directors of the Company, but not in an amount that may be inconsistent with the statutory limitations of such insurance under the laws of the State of
Delaware and (v) any other benefits offered from time-to-time to other executives of the Company. Mr. Mitola agrees to submit to any medical or other examination
and to execute and deliver any application or other instrument in writing, reasonably necessary to effectuate such insurance. 

        4.5    Automobile Allowance.    Mr. Mitola shall be entitled to an automobile allowance of $550.00 per month. 

        4.6    Business Expenses.    Mr. Mitola shall be reimbursed for business-related expenses that he incurs
pursuant to his employment with the Company, such expenses to be timely submitted and reasonable, and subject to review and approval by the Audit Committee of the Board of Directors. Mr. Mitola
shall provide the Company with expense reports detailing business-related expenses and supporting documentation and other substantiation of such expenses that conform to the reporting requirements of
the Company and requirements of the Internal Revenue Service. Mr. Mitola may request reimbursement advances equal to the amounts of business-related expenses submitted but such advances may be
subject to subsequent adjustment following review and approval by the Audit Committee. 

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        4.7    Vacation.    Mr. Mistarz shall be entitled to twenty (20) paid vacation days per calendar year.
Any unused vacation time may not be accumulated and carried over to the next calendar year. 

        Section 5.    Covenants of Mr. Mitola.    

        5.1    Confidentiality.    During the Employment Period and following the termination thereof for any reason,
Mr. Mitola shall not disclose or make any use of, for his own benefit or for the benefit of a business or entity other than the Company or its affiliates, any secret or confidential
information, lists of customers and prospective customers or any other information of or pertaining to the Company or its affiliates that is not generally known within the trade of the Company or its
affiliates or which is not publicly available. 

        5.2    Inventions and Secrecy.    Except as otherwise provided in this Section 5.2, Mr. Mitola
(i) shall hold in a fiduciary capacity for the benefit of the Company and its affiliates, all secret and confidential information, knowledge, or data of the Company and its affiliates obtained
by Mr. Mitola during his employment by the Company, which is not generally know to the public or recognized as standard practice (whether or not developed by Mr. Mitola) and shall not,
during his employment by the Company and following the termination of such employment for any reason, communicate or divulge any such information, knowledge or data to any person or entity other than
the Company or its affiliates or persons or entities designated by the Company; (ii) shall promptly disclose to the Company all inventions, ideas, devices and processes made or conceived by him
along or jointly with others, from the time of entering the Company's employ and until such employment is terminated and for a one (1) year period following such termination, relevant or
pertinent in any way, whether directly or indirectly, to the Company or its affiliates or resulting from or suggested by any work which he may have done for or at the request of the Company or its
affiliates; (iii) shall at all times during his employment with the Company, assist the Company and its affiliates in every proper way (at the expense of the Company) to obtain and develop for
the benefit of the Company patents on such inventions, ideas, devices and processes, whether or not patented; and (iv) shall doe all such acts and execute, acknowledge and deliver all such
instruments as may be necessary or desirable in the opinion of the Company to vest in the Company, the entire interest in such inventions, ideas, devices and processes referred to in this
Section 5.2. 

        5.3    Competition Following Termination.    Within the two (2) year period following termination, for any
reason, of Mr. Mitola's employment with the Company, Mr. Mitola shall not, without the prior written consent of the Company, which consent may be withheld at the sole discretion of the
Company, (i) engage directly or indirectly, whether as an officer, director, stockholder (of 10% or more of such entity), partner, majority owner, managerial employee, creditor, or otherwise
with the operation, management or conduct of any business that competes with the businesses of the Company or its affiliates being conducted at the time of such termination; (ii) solicit,
contact, interfere with, or divert any customer served by the Company or its affiliates, or any prospective customer identified by or on behalf of the Company or its affiliates (such customers and
prospective customers existing or identified by the Company as of the date of Mr. Mitola's termination) if such intention is to divert business from or compete with the Company; or
(iii) solicit any person then or previously employed by the Company or its affiliates to join Mr. Mitola, whether as a partner, agent, employee or otherwise, in any enterprise engaged in
a business similar to the businesses of the Company or its affiliates being conducted at the time of such termination. 

        5.4    Acknowledgement.    Mr. Mitola acknowledges that the restrictions set forth in this Section 5 are
reasonable in scope and essential to the preservation of the businesses and proprietary properties of the Company and its affiliates and that the enforcement thereof will not in any manner preclude
Mr. Mitola, in the event of his termination of employment with the Company, from becoming gainfully employed in such manner and to such extent as to provide a reasonable standard of living for
himself, 

6

 

the members of his family and those dependent upon him of at least the sort and fashion to which he and they have become accustomed and may expect. 

        5.5    Severability—Covenants.    The covenants of Mr. Mitola contained in this Section 5
shall each be construed as any agreement independent of any other provision in this Agreement and the existence of any claim or cause of action of Mr. Mitola against the Company or its
affiliates, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company or its affiliates of such covenants. The parties hereto expressly agree
and contract that it is not the intention of any party to violate any public policy, statutory or common law, and that if any sentence, paragraph, clause or combination of the same of this Agreement
is in violation o the law of any state where applicable, such sentence, paragraph, clause or combination of the same shall be void in the jurisdictions where it is unlawful and the remainder of such
provision and this Agreement shall remain binding on the parties to make the covenants of this Agreement binding only to the extent that it may be lawfully done under existing applicable laws. In the
event that any part of any covenant of this Agreement is determined by a court of law to be overly broad thereby making the covenant unenforceable, the parties hereto agree, and it is their desire,
that such court shall substitute a judicially enforceable limitation in its place, and that as so modified the covenant shall be binding upon the parties as if originally set forth herein. 

        Section 6.    Indemnification.    In addition to any rights Executive may have under the Company's charter or
by-laws, the Company agrees to indemnify Executive and hold Executive harmless, both during the Term and thereafter, against all costs, expenses (including, without limitation, fines,
excise taxes and attorneys' and accountants' fees) and liabilities (other than settlements to which the Company does not consent, which consent shall not be unreasonably withheld) (collectively,
"Losses") reasonably incurred by Executive in connection with any claim, action, proceeding or investigation brought against or involving Executive with respect to, arising out of or in any way
relating to Executive's employment with the Company or Executive's service as a director of the Company; provided, however, that the Company shall not be required to indemnify Executive for Losses
incurred as a result of Executive's intentional misconduct or gross negligence (other than matters where Executive acted in good faith and in a manner he reasonably believed to be in and not opposed
to the Company's best interests). Executive shall promptly notify the Company of any claim, action, proceeding or investigation under this paragraph and the Company shall be entitled to participate in
the defense of any such claim, action, proceeding or investigation and, if it so chooses, to assume the defense with counsel selected by the Company; provided that Executive shall have the right to
employ counsel to represent him (at the Company's expense) if Company counsel would have a "conflict of interest" in representing both the Company and Executive. The Company shall not settle or
compromise any claim, action, proceeding or investigation without Executive's consent, which consent shall not be unreasonably withheld; provided, however, that such consent shall not be required if
the settlement entails only the payment of money and the Company fully indemnifies Executive in connection therewith. The Company further agrees to advance any and all expenses (including, without
limitation, the fees and expenses of counsel) reasonably incurred by the Executive in connection with any such claim, action, proceeding or investigation. The Company currently maintains a policy of
directors' and officers' liability insurance covering Executive and, nothwithstanding the expiration or earlier termination of this Agreement, the Company shall maintain a directors' and officers'
liability insurance policy covering Executive for a period of time following such expiration or earlier termination equal to the statute of limitations for any claim that may be asserted against
Executive for which coverage is available under such directors'
and officers' liability insurance policy. The provisions of this paragraph shall survive the termination of this Agreement for any reason. 

        Section 7.    Notice.    Any notice required or permitted hereunder shall be made in writing (i) either
by actual delivery of the notice into the hands of the party hereunder entitled, or (ii) by the mailing of the notice in the United States mail, certified mail, return receipt requested, all
postage 

7

 

prepaid and addressed to the party to whom the notice is to be given at the party's respective address set forth below, or such other address as the parties may from time to time designate by written
notice as provided herein. 

If to the Company:

Attn:
General Counsel

Electric City Corp.

1280 Landmeier Road

Elk Grove Village, IL 60007 

If to Mr. Mitola:

Mr. John
Mitola 

        The
notice shall be deemed to be received in case (i) on the date of actual receipt by the party and in case (ii) three days following the date of the mailing. 

        Section 8.    Amendment and Waiver.    No amendment or modification of this Agreement shall be valid or binding
upon: (i) the Company unless made in writing and signed by an officer of the Company, duly authorized by the Board of Directors of the Company or; (ii) Mr. Mitola unless made in
writing and signed by him. The waiver by the Company or Mr. Mitola of the breach of any Provision of this Agreement by the other party shall not operate or be construed as a waiver of any
subsequent breach of such party. 

        Section 9.    Governing Law/Arbitration.    (a) The validity and effect of this Agreement and the rights
and obligations of the parties hereto shall be governed by, and construed in accordance with, the laws of the State of Illinois, without giving effect to the principles of conflicts of laws thereof. 

        (b)  The
parties hereto agree that in the event of any and all disagreements and controversies arising from this Agreement or any other agreements between the Company and
Mr. Mitola the breach, termination or validity thereof or the past, present and future dealings between the parties, such disagreements and controversies shall be subject to binding arbitration
as arbitrated in accordance wit the then current Commercial Arbitration Rules of the American Arbitration Association (the "AAA") in Chicago, Illinois before one neutral arbitrator. Such arbitrator
shall be selected by mutual agreement of the parties within thirty (30) days of written notice of said disagreement or controversy. If the parties cannot mutually agree to an arbitrator within
thirty (30) days, then the AAA shall designate the arbitrator. Either party may apply to the arbitrator seeking injunctive relief until the arbitration award is rendered or the controversy is
otherwise resolved. Without waiving any remedy under this Agreement, either party may also seek from any court having jurisdiction any interim or provisional relief that is necessary to protect the
rights or property of that party, pending the establishment of the arbitral tribunal (or pending the arbitral tribunal's determination of the merits of the controversy). In the event of any such
disagreement or controversy, neither party shall directly or indirectly reveal, report, publish or disclose any information relating to such disagreement or controversy to any person, firm or
corporation not expressly authorized by the other party to receive such information or use such information or assist any other person in doing so, except to comply with actual legal obligations of
such party or unless such disclosure is directly related to an arbitration proceeding as provided herein, including, but not limited to, the prosecution or defense of any claim in such arbitration.
The costs and expenses of the arbitration (excluding attorneys' fees) shall be paid by the non-prevailing Party or as determined by the arbitrator. This paragraph shall survive the
termination of this Agreement. 

        Section 10.    Entire Agreement.    This Agreement contains all of the terms agreed upon by the parties with
respect to the subject matter hereof and supersedes all prior agreements, arrangements and communications between the parties dealing with such subject matter, whether oral or written, but limited to
the Employment Period. 

8

 

        Section 11.    Binding Effect.    This Agreement shall be binding upon and shall inure to the benefit of the
transferees, successors and assigns of the Company, including any company or entity with which the Company may merge or consolidate. 

        Section 12.    Remedies for Breach.    Mr. Mitola acknowledges that his services pursuant to this
Agreement are unique and extraordinary and that irreparable injury will result to the Company and its businesses and properties in the event of a material breach of the terms and conditions of this
Agreement to be performed by him, the Company shall be entitled, if it so elects, to institute and prosecute proceedings in any court of competent jurisdiction, either at law or in equity, to enjoin
him from performing services for any other person or entity in violation of any of the terms of this Agreement, and to obtain damages for any breach of this Agreement. In the event of a material
breach by the Company of any of
the terms and conditions of this Agreement to be performed by it, Mr. Mitola shall have all remedies, legal or equitable, available to him under the laws of the State of Illinois. The remedies
provided herein shall be cumulative and in addition to any and all other remedies which either party may have at law or in equity. 

        Section 13.    Costs of Enforcement.    In the event of any suit or proceeding seeking to enforce the terms,
covenants or conditions of this Agreement, the prevailing party shall, in addition to all other remedies and relief that may be available pursuant to this Agreement or applicable law, recover his or
its reasonable attorneys' fees and costs as shall be determined and awarded by an arbitrator or court, as the case may be. 

        Section 14.    Headings.    Numbers and titles to paragraphs hereof are for information purposes only and,
where inconsistent with the text, are to be disregarded. 

        Section 15.    Severability—General.    If any provision of this Agreement or the application of
any such provision to any person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other provision hereof. 

        Section 16.    Counterparts.    This Agreement may be executed in any number of counterparts, each of which
when so executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement. 

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first set forth above. 

	ELECTRIC CITY CORP.	 	JOHN P. MITOLA
	

By:	
 	

/s/  ROBERT MANNING      
	
 	

/s/  JOHN P. MITOLA      

	Printed:	 	Robert Manning
	 	 
	Title:	 	Chairman of the Board
	 	 

9

QuickLinks

Exhibit 10.49

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