When running the CMN Directory Connector GUI, at the part where we chose the Target destination, an error message appears warning that an OU can not be found to sync.
To resolve this issue, manually edit the configuration.xml file for the Directory Connector.
After a brief pause, the connector will move forward, for Target OU: just manually add the destination you would like the Exchange contacts to show up in.
This will allow you to proceed past the Target location information page.