ENTERTAINMENT DISTRIBUTION CO INC
LETTER AGREEMENT
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ex10-2.htm
<DESCRIPTION>LETTER AGREEMENT
<TEXT>
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    <title>ex10-2.htm</title>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      10.2</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
      27, 2007</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Matthew K. Behrent</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19
      Pierrepont St., #3</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brooklyn,
      NY 11201</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dear
      Matt,</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      letter confirms certain terms and conditions of your continued employment in
      consideration of, among other things, your new title and duties in the position
      of Executive Vice President, Corporate Development of Entertainment Distribution
      Company, Inc. (the &#8220;Company&#8221;) and your relinquishing any right to receive
      options upon future acquisitions or dispositions and supersedes your offer
      letter dated July 6, 2005 from our subsidiary, Glenayre Electronics,
      Inc.&#160;&#160;This position is located in New York, New York and reports
      directly to the Chairman of the Board of Directors of the Company.&#160;&#160;In
      this position, you are responsible for:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                development of the Company&#8217;s business strategy,
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                identification, pursuit and project management of new opportunities
                on a
                global basis, including, without limitation, divestitures, mergers,
                acquisitions, investments, strategic partnerships, alliances and
                joint
                ventures, relating to both the current operating business of the
                Company
                as well as future opportunities to maximize the Company&#8217;s other assets,
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Review
                and approval of all key business development and customer development
                activities and </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top">
            <td style="WIDTH: 18pt">
              <div>&#160;</div>
            </td>
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Symbol, serif">&#183;</font></font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">such
                duties and services as normally are associated with such position,
                which
                may be assigned to you from time to time.
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Your
      base
      compensation is $260,000 per annum (the &#8220;Base Salary&#8221;), which shall be paid in
      bi-weekly installments for 26 pay periods per year in accordance with the
      Company&#8217;s normal payroll practices.&#160;&#160;Your Base Salary and performance
      will be reviewed on an annual basis each year and your Base Salary may be
      increased (but not decreased) in the manner determined by the Company in
      consultation with the Company&#8217;s Board of Directors (the &#8220;Board&#8221;) or the
      Compensation Committee of the Board.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
      will
      be eligible to participate in the Company&#8217;s Incentive Bonus Plan and other bonus
      plans or programs as shall be established by the Board upon recommendations
      from
      management of the Company from time to time for senior executives of the
      Company.&#160;&#160;In addition, you will be eligible to receive discretionary
      bonus awards as the Board may determine in its sole discretion from time to
      time.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the term of your employment, you will be entitled to four (4) weeks of vacation
      in each calendar year at such times as shall be mutually convenient to you
      and
      the Company.&#160;&#160;Your vacation will be prorated for each partial calendar
      year during the term of your employment.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
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        </div>
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          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the term of your employment, you will receive a monthly car allowance of $700,
      which will cover local driving and parking expenses incurred in connection
      with
      the performance of your duties hereunder.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the term of your employment, you may participate in all retirement plans, life,
      medical/dental insurance plans and disability insurance plans of the Company,
      as
      in effect from time to time, to the extent that you qualify under the
      eligibility requirements of each plan or program.&#160;&#160;Details of our
      current benefits plan have previously been provided to you.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;In
      addition, you will be entitled to a &#8220;stay bonus&#8221; in an amount equal to your Base
      Salary payable in a lump sum if you remain employed by the Company through
      September 1, 2008 or, in the event a Change in Control (as defined below) occurs
      prior to September 1, 2008, you remain employed by the Company or any successor
      to the Company following a Change in Control, through the 90 day anniversary
      of
      any such Change in Control..&#160;&#160;If earned, the Company will pay you the
      stay bonus within two days after September 1, 2008.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">In
      the event your employment is
      terminated by the Company without Cause (as defined below) or by you with Good
      Reason (as defined below), the Company will pay you, subject to the limitations
      set forth below, a lump sum severance payment equal to the amount of your Base
      Salary </font><font style="DISPLAY: inline; COLOR: #000000">in effect on such
      termination date</font><font style="DISPLAY: inline; COLOR: #000000">.&#160;&#160;You also shall</font><font style="DISPLAY: inline; COLOR: #000000">be
      entitled to </font><font style="DISPLAY: inline; COLOR: #000000">receive </font><font style="DISPLAY: inline; COLOR: #000000">the
      sum of (1)</font><font style="DISPLAY: inline; COLOR: #000000">your accrued but unpaid
      B</font><font style="DISPLAY: inline; COLOR: #000000">ase </font><font style="DISPLAY: inline; COLOR: #000000">S</font><font style="DISPLAY: inline; COLOR: #000000">alary
      through the date of
      such</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">termination,</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">plus
      (2) </font><font style="DISPLAY: inline; COLOR: #000000">your </font><font style="DISPLAY: inline; COLOR: #000000">accrued
      but unpaid vacation pay through
      such date</font><font style="DISPLAY: inline; COLOR: #000000">of
      termination</font><font style="DISPLAY: inline; COLOR: #000000">,</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">plus</font><font style="DISPLAY: inline; COLOR: #000000">(3)
      if you are then participating in the
      Company&#8217;s annual bonus plan, a pro-rated annual bonus for the bonus year in
      which you are terminated, which shall be calculated and paid in accordance
      with
      the Company&#8217;s normal practices at the end of such bonus year, </font><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">provided</font><font style="DISPLAY: inline; COLOR: #000000">that
      you have been employed by the
      Company for at least six months of such bonus year, plus </font><font style="DISPLAY: inline; COLOR: #000000">(</font><font style="DISPLAY: inline; COLOR: #000000">4</font><font style="DISPLAY: inline; COLOR: #000000">)
      any other compensation payments or
      benefits which have accrued and are</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">payable
      in connection with such
      termination.</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">In
      addition, the Company
      shall</font><font style="DISPLAY: inline; COLOR: #000000">continue to
</font><font style="DISPLAY: inline; COLOR: #000000">provide
      medical and dental
      benefits to </font><font style="DISPLAY: inline; COLOR: #000000">you and your
</font><font style="DISPLAY: inline; COLOR: #000000">dependents
      for a period of
      12 months following such</font><font style="DISPLAY: inline; COLOR: #000000">date of termination </font><font style="DISPLAY: inline; COLOR: #000000">at
      the same</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">levels</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">of
      coverage </font><font style="DISPLAY: inline; COLOR: #000000">and in the same manner
</font><font style="DISPLAY: inline; COLOR: #000000">as
      such benefits are </font><font style="DISPLAY: inline; COLOR: #000000">available</font><font style="DISPLAY: inline; COLOR: #000000">to
</font><font style="DISPLAY: inline; COLOR: #000000">you
      and your dependents immediately
      prior to such Change in Control</font><font style="DISPLAY: inline; COLOR: #000000">.</font><font style="DISPLAY: inline; COLOR: #000000">&#160;&#160;Your
      right to </font><font style="DISPLAY: inline; COLOR: #000000">continue medical and
      dental coverage
      under the</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Consolidated
      Omnibus Budget
      Reconciliation Act of 1995 (</font><font style="DISPLAY: inline; COLOR: #000000">&#8220;</font><font style="DISPLAY: inline; COLOR: #000000">COBRA</font><font style="DISPLAY: inline; COLOR: #000000">&#8221;</font><font style="DISPLAY: inline; COLOR: #000000">)
      shall begin</font><font style="DISPLAY: inline; COLOR: #000000">after </font><font style="DISPLAY: inline; COLOR: #000000">the
      expiration of the one-year period
      described in the foregoing sentence.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">I</font><font style="DISPLAY: inline; COLOR: #000000">f
</font><font style="DISPLAY: inline; COLOR: #000000">a
      Change in Control</font><font style="DISPLAY: inline; COLOR: #000000">(as defined below) occurs
      and if your
      employment is terminated within three years after such </font><font style="DISPLAY: inline; COLOR: #000000">Change</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">in
      Control</font><font style="DISPLAY: inline; COLOR: #000000">for any reason other
      than </font><font style="DISPLAY: inline; COLOR: #000000">Cause</font><font style="DISPLAY: inline; COLOR: #000000">(as
      defined below)</font><font style="DISPLAY: inline; COLOR: #000000">, the Company shal</font><font style="DISPLAY: inline; COLOR: #000000">l
      pay you</font><font style="DISPLAY: inline; COLOR: #000000">, within 10 days after</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">such</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">termination,
      in cash or
      equivalent</font><font style="DISPLAY: inline; COLOR: #000000">,</font><font style="DISPLAY: inline; COLOR: #000000">a
      lump sum severance benefit equal
      to</font><font style="DISPLAY: inline; COLOR: #000000">2</font><font style="DISPLAY: inline; COLOR: #000000">50%
      of</font><font style="DISPLAY: inline; COLOR: #000000">your Base S</font><font style="DISPLAY: inline; COLOR: #000000">alary
      in effect on such termination date
      (or if the</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">base</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">salary
      was greater</font><font style="DISPLAY: inline; COLOR: #000000">prior to such Change
      in
      Control</font><font style="DISPLAY: inline; COLOR: #000000">, </font><font style="DISPLAY: inline; COLOR: #000000">250%
      of your Base Salary in effect
</font><font style="DISPLAY: inline; COLOR: #000000">on the date immediately
      preceding </font><font style="DISPLAY: inline; COLOR: #000000">such </font><font style="DISPLAY: inline; COLOR: #000000">Change
      in Control</font><font style="DISPLAY: inline; COLOR: #000000">), provided that, in
      the event you have
      received the &#8220;stay bonus&#8221;</font></font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">payment
      above in the calendar year in
      which such severance benefit becomes payable, the amount of the severance
      benefit paid to you shall be reduced by the amount of such &#8220;stay
      bonus&#8221;</font><font style="DISPLAY: inline; COLOR: #000000">. </font><font style="DISPLAY: inline; COLOR: #000000">You
      also shall</font><font style="DISPLAY: inline; COLOR: #000000">be entitled to </font><font style="DISPLAY: inline; COLOR: #000000">receive
</font><font style="DISPLAY: inline; COLOR: #000000">the
      sum of (1)</font><font style="DISPLAY: inline; COLOR: #000000">your accrued but unpaid
      B</font><font style="DISPLAY: inline; COLOR: #000000">ase </font><font style="DISPLAY: inline; COLOR: #000000">S</font><font style="DISPLAY: inline; COLOR: #000000">alary
      through the date of
      such</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">termination,</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">plus
      (2) </font><font style="DISPLAY: inline; COLOR: #000000">your </font><font style="DISPLAY: inline; COLOR: #000000">accrued
      but unpaid vacation pay through
      such date</font><font style="DISPLAY: inline; COLOR: #000000">of
      termination</font><font style="DISPLAY: inline; COLOR: #000000">,</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">plus</font><font style="DISPLAY: inline; COLOR: #000000">(3)
      if you are then participating in the
      Company&#8217;s annual bonus plan, a pro-rated annual bonus for the bonus year in
      which you are terminated, which shall be calculated and paid in accordance
      with
      the Company&#8217;s normal practices at the end of such bonus year, </font><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">provided</font><font style="DISPLAY: inline; COLOR: #000000">that
      you have been employed by the
      Company for at least six months of such bonus year, plus</font><font style="DISPLAY: inline; COLOR: #000000">(</font><font style="DISPLAY: inline; COLOR: #000000">4</font><font style="DISPLAY: inline; COLOR: #000000">)
      any other compensation payments or
      benefits which have accrued and are</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">payable
      in connection with such
      termination.</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">In
      addition, the Company
      shall</font><font style="DISPLAY: inline; COLOR: #000000">continue to
</font><font style="DISPLAY: inline; COLOR: #000000">provide
      medical and dental
      benefits to </font><font style="DISPLAY: inline; COLOR: #000000">you and your
</font><font style="DISPLAY: inline; COLOR: #000000">dependents
      for a period of
      12 months following such</font><font style="DISPLAY: inline; COLOR: #000000">date of termination </font><font style="DISPLAY: inline; COLOR: #000000">at
      the same</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">levels</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">of
      coverage </font><font style="DISPLAY: inline; COLOR: #000000">and in the same manner
</font><font style="DISPLAY: inline; COLOR: #000000">as
      such benefits are </font><font style="DISPLAY: inline; COLOR: #000000">available</font><font style="DISPLAY: inline; COLOR: #000000">to
</font><font style="DISPLAY: inline; COLOR: #000000">you
      and your dependents immediately
      prior to such Change in Control</font><font style="DISPLAY: inline; COLOR: #000000">.</font><font style="DISPLAY: inline; COLOR: #000000">&#160;&#160;Your
      right to </font><font style="DISPLAY: inline; COLOR: #000000">continue medical and
      dental coverage
      under COBRA shall begin</font><font style="DISPLAY: inline; COLOR: #000000">after </font><font style="DISPLAY: inline; COLOR: #000000">the
      expiration of the one-year period
      described in the foregoing sentence.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">Notwithstanding
      any</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">terms</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">to</font><font style="DISPLAY: inline; COLOR: #000000">the
      contrary contained in the Company&#8217;s
</font>Stock Option Agreement and the Glenayre Long Term Incentive Plan or
      any
      successor plan<font style="DISPLAY: inline; COLOR: #000000">, upon </font><font style="DISPLAY: inline; COLOR: #000000">termination
      of </font><font style="DISPLAY: inline; COLOR: #000000">your </font><font style="DISPLAY: inline; COLOR: #000000">employ</font><font style="DISPLAY: inline; COLOR: #000000">ment
      (i) for any reason other than
</font><font style="DISPLAY: inline; COLOR: #000000">Cause </font><font style="DISPLAY: inline; COLOR: #000000">within
      three years after </font><font style="DISPLAY: inline; COLOR: #000000">a Change</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">in</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Control,</font><font style="DISPLAY: inline; COLOR: #000000">
      (ii) by the Company without
      Cause</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">or
      (iii) by you for Good Reason,
</font><font style="DISPLAY: inline; COLOR: #000000">all </font><font style="DISPLAY: inline; COLOR: #000000">o</font><font style="DISPLAY: inline; COLOR: #000000">ptions
</font><font style="DISPLAY: inline; COLOR: #000000">granted
      to you under such option plans
</font><font style="DISPLAY: inline; COLOR: #000000">shall become immediately
      vested </font><font style="DISPLAY: inline; COLOR: #000000">and </font><font style="DISPLAY: inline; COLOR: #000000">immediately
      exercisable and shall
      remain</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">exercisable
      for a period </font><font style="DISPLAY: inline; COLOR: #000000">equal to the lesser </font><font style="DISPLAY: inline; COLOR: #000000">of
      12 months f</font><font style="DISPLAY: inline; COLOR: #000000">ollowing such date of
      termination or the
      remaining maximum term of the option.&#160;&#160;Further, upon termination of
      your employment by reason of your voluntary resignation, all options granted
      to
      you by the Company pursuant to such option plans which have vested as of the
      date of such voluntary resignation shall remain exercisable for a period equal
      to the lesser of six months following such date of termination or the remaining
      maximum term of the option.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notwithstanding
      the foregoing, if any benefit or amount payable to you under this letter on
      account of your termination of employment constitutes &#8220;nonqualified deferred
      compensation&#8221; (&#8220;Deferred Compensation&#8221;) within the meaning of Section 409A of
      the Internal Revenue Code (&#8220;409A&#8221;), payment of such Deferred Compensation shall
      commence when you incur a &#8220;separation from service&#8221; within the meaning of
      Treasury Regulation Section 1.409A-1(h) (&#8220;Separation from
      Service&#8221;).&#160;&#160;However, if you are a &#8220;specified employee&#8221; within the
      meaning of 409A at the time of your Separation from Service, any Deferred
      Compensation payable to you under this letter on account of your termination
      of
      employment shall be delayed until the first day of the seventh month following
      your Separation from Service (the &#8220;409A Suspension Period&#8221;).&#160;&#160;Within
      14 calendar days after the end of the 409A Suspension Period, the Company shall
      pay to you a lump sum payment in cash equal to any payments (including interest
      on any such payments, at an interest rate of not less than the average prime
      interest rate, as published in the Wall Street Journal, over the 409A Suspension
      Period) that the Company would otherwise have been required to provide under
      this letter but for the imposition of the 409A Suspension
      Period.&#160;&#160;Thereafter, you shall receive any remaining payments
      due</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">under
      this letter in accordance with its terms as if there had not been any suspension
      period beforehand.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">For
      purposes of this letter</font><font style="DISPLAY: inline; COLOR: #000000">agreement:</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">(1)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; COLOR: #000000">&#8220;</font><font style="DISPLAY: inline; COLOR: #000000">Cause</font><font style="DISPLAY: inline; COLOR: #000000">&#8221;
means
      (1) your resignation, except for
      Good Reason, from the office of Executive Vice President, Corporate Development
      of the Company; (2</font><font style="DISPLAY: inline; COLOR: #000000">)
      dishonesty or fr</font><font style="DISPLAY: inline; COLOR: #000000">aud on the
      part of the employee </font><font style="DISPLAY: inline; COLOR: #000000">which
      is intended to result in the </font><font style="DISPLAY: inline; COLOR: #000000">employee&#8217;</font><font style="DISPLAY: inline; COLOR: #000000">s
      substantial personal</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">enrichment</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">at
      the expense of the Company or its
      affiliates; (</font><font style="DISPLAY: inline; COLOR: #000000">3</font><font style="DISPLAY: inline; COLOR: #000000">)
      a material violation of</font><font style="DISPLAY: inline; COLOR: #000000">the employee&#8217;s</font><font style="DISPLAY: inline; COLOR: #000000">responsibilities
      as an executive of the
      Company or its</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">subsidiaries</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">which
      is willful and deliberate; or
      (</font><font style="DISPLAY: inline; COLOR: #000000">4</font><font style="DISPLAY: inline; COLOR: #000000">)
      the conviction (after the
      exhaustion</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">of</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">all
      appeals) of the </font><font style="DISPLAY: inline; COLOR: #000000">employee</font><font style="DISPLAY: inline; COLOR: #000000">of
      a felony involving moral turpitude or
      the</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">entry</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">of
      a plea of nol</font><font style="DISPLAY: inline; COLOR: #000000">o contendere for such
      a felony;
</font><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">provided</font><font style="DISPLAY: inline; COLOR: #000000">,
      that in no event shall
&#8220;Cause&#8221;</font><font style="DISPLAY: inline; COLOR: #000000">include (i) any
      personal or policy disagreement between the </font><font style="DISPLAY: inline; COLOR: #000000">employee</font><font style="DISPLAY: inline; COLOR: #000000">and</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">the</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Company
      or any member of the
</font><font style="DISPLAY: inline; COLOR: #000000">b</font><font style="DISPLAY: inline; COLOR: #000000">oard</font><font style="DISPLAY: inline; COLOR: #000000">of
      directors of the Company</font><font style="DISPLAY: inline; COLOR: #000000">or (ii) any action taken
      by
      the</font><font style="DISPLAY: inline; COLOR: #000000">employee </font><font style="DISPLAY: inline; COLOR: #000000">in</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">connection
      with the </font><font style="DISPLAY: inline; COLOR: #000000">employee&#8217;</font><font style="DISPLAY: inline; COLOR: #000000">s
      duties if the </font><font style="DISPLAY: inline; COLOR: #000000">employee</font><font style="DISPLAY: inline; COLOR: #000000">acted
      in good faith</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">and</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">in
      a manner the </font><font style="DISPLAY: inline; COLOR: #000000">employee</font><font style="DISPLAY: inline; COLOR: #000000">reasonably
      believed to be in the best
      interest of</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">the</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Company
      and had no reasonable cause to
      believe the </font><font style="DISPLAY: inline; COLOR: #000000">employee&#8217;</font><font style="DISPLAY: inline; COLOR: #000000">s
      conduct was</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">unlawful</font><font style="DISPLAY: inline; COLOR: #000000">.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">(2)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; COLOR: #000000">&#8220;</font><font style="DISPLAY: inline; COLOR: #000000">Change
      in Control</font><font style="DISPLAY: inline; COLOR: #000000">&#8221;</font><font style="DISPLAY: inline; COLOR: #000000">means
      any of the following:</font><font style="DISPLAY: inline; COLOR: #000000">(a)</font><font style="DISPLAY: inline; COLOR: #000000">the
      acquisition, directly or indirectly
      after the date of</font><font style="DISPLAY: inline; COLOR: #000000">this
      letter agreement</font><font style="DISPLAY: inline; COLOR: #000000">, in one or
      a series of transactions, of 25% or more of</font><font style="DISPLAY: inline; COLOR: #000000">the Company&#8217;s common stock by any
      &#8220;</font><font style="DISPLAY: inline; COLOR: #000000">person</font><font style="DISPLAY: inline; COLOR: #000000">&#8221;</font><font style="DISPLAY: inline; COLOR: #000000">as
      that term is defined in</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Section
      13(d)(3) of the </font><font style="DISPLAY: inline; COLOR: #000000">Securities </font><font style="DISPLAY: inline; COLOR: #000000">Exchange
      Act</font><font style="DISPLAY: inline; COLOR: #000000">of 1934, as amended</font><font style="DISPLAY: inline; COLOR: #000000">;</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">(</font><font style="DISPLAY: inline; COLOR: #000000">b</font><font style="DISPLAY: inline; COLOR: #000000">)
      the consummation of a merger,
      consolidation, share</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">exchange
      or similar transaction of the
      Company with any other</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">corporation,
      entity or group, as a
      result of which the holders of the</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">voting
      capital stock of the
      Company</font><font style="DISPLAY: inline; COLOR: #000000">immediately prior to
      such merger, consolidation, share exchange or similar transaction,</font><font style="DISPLAY: inline; COLOR: #000000">as a group</font><font style="DISPLAY: inline; COLOR: #000000">,</font><font style="DISPLAY: inline; COLOR: #000000">would
      receive less than</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">50%
      of the voting capital stock of the
      surviving or resulting</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">corporation;</font><font style="DISPLAY: inline; COLOR: #000000">(c)</font><font style="DISPLAY: inline; COLOR: #000000">the
      consummation of an agreement
      providing for the sale or</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">transfer
      (other than a security for
      obligations of the Company) of</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; COLOR: #000000">substantially
      all the </font><font style="DISPLAY: inline; COLOR: #000000">operating </font><font style="DISPLAY: inline; COLOR: #000000">assets
      of the Company;</font><font style="DISPLAY: inline; COLOR: #000000">(d)</font><font style="DISPLAY: inline; COLOR: #000000">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt">i</font>ndividuals
      who, as of the date
      hereof, constitute the Board (the &#8220;Incumbent Board&#8221;) cease for any reason to
      constitute at least a majority of the Board; provided, however, that any
      individual becoming a director subsequent to the date hereof whose election,
      or
      nomination for election by the Company&#8217;s stockholders, was approved by a vote of
      at least a majority of the directors then comprising the Incumbent Board shall
      be considered as though such individual were a member of the Incumbent Board,
      but excluding, for this purpose, any such individual whose initial assumption
      of
      office occurs as a result of an actual or threatened election contest with
      respect to the election or removal of directors or other actual or threatened
      solicitation of proxies or consents by or on behalf of a Person other than
      the
      Board or pursuant to a negotiated settlement with any such Person to avoid
      the
      threat of any such contest or solicitation<font style="DISPLAY: inline; COLOR: #000000">.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">(3)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; COLOR: #000000">&#8220;Good Reason&#8221; means the occurrence
      of any of the following events provided you (A) notify the Board in writing
      within 90 days following the initial occurrence of the events that are alleged
      to constitute good reason and specifying the events that are alleged to
      constitute good reason and (B) terminate your employment within 90 days of
      the
      date</font></font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; COLOR: #000000">of
      your notice if the Company does not
      cure said events within 30 days after the date of your notice: (i) any material
      breach by the Company of the terms of this letter agreement or any material
      diminution by the Company of your authority, duties or responsibilities with
      the
      Company as specified in the first paragraph of this letter agreement;; (ii)
      any
      relocation of your principal office to a location which is more than 25 miles
      outside of New York, New York; or (iii) any request by the Company for you
      to
      report to someone other than the Chairman of the Company&#8217;s Board of Directors,
      except where such request is specifically approved by you</font><font style="DISPLAY: inline; COLOR: #000000">.&#160;&#160;For the avoidance of
      doubt,
      the parties hereto confirm that a sale of the assets or equity of Entertainment
      Distribution Company, LLC, a wholly-owned subsidiary of the Company, shall
      constitute a sale of substantially all the operating assets, but shall not
      alone
      constitute a material diminution by the Company of your duties or
      responsibilities.</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      letter agreement may not be modified or amended in any way unless in a writing
      signed by each of the parties hereto.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Please
      confirm the terms and conditions set forth herein by countersigning this letter
      in the space provided below.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sincerely,</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">/s/ <font size="2">Clarke
      Bailey</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Clarke
      Bailey</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chairman
      of the Board</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <div>
        <table cellpadding="0" cellspacing="0" width="81%">

            <tr>
              <td valign="bottom" width="7%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" colspan="2" nowrap valign="top" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Accepted
                by:&#160;&#160; </font></td>
              <td align="left" valign="bottom" width="23%" style="BORDER-BOTTOM: black 1px solid">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
                  Matthew K. Behrent</font></div>
              </td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" nowrap valign="bottom" width="4%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font size="2">Date:&#160;&#160;&#160;
</font></div>
              </td>
              <td align="left" valign="bottom" width="22%" style="BORDER-BOTTOM: black 1px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">December
                27, 2007&#160;</font></td>
            </tr>
            <tr>
              <td valign="top" width="7%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="bottom" width="23%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Matthew
                  K. Behrent</font></div>
              </td>
              <td valign="bottom" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="bottom" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div align="center">&#160;</div>
    <div align="center">&#160;</div>
    <div align="center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
    <div align="center">&#160;</div>
    <div align="center">
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