Exhibit 10.01

Transaction Restructuring Agreement

     This is a Transaction Restructuring Agreement (this “Agreement”) by and
among (a) Daleen Technologies Inc., a Delaware corporation (“Daleen”), (b)
Daleen Holdings, Inc, a Delaware corporation (“Holdings”), (c) Parallel
Acquisition, Inc, a Delaware corporation, (“Acquisition Sub”), (d) Protek
Telecommunications Solutions Limited, a corporation organized under the laws of
England and Wales, whose principal place of business is located at 1 York Road,
Maidenhead, Berkshire, United Kingdom (“Protek”), (e) Paul A. Beaumont, Geoff
Butcher, Ian Watterson, Michael White, Michael Kersten and Barbara Krystyna
Kalinowska (each, a “Protek Seller”), (f) Quadrangle Capital Partners LP, a
Delaware limited partnership (“QCP”), Quadrangle Select Partners LP, a Delaware
limited partnership (“QSP”), Quadrangle Capital Partners-A LP, a Delaware
limited partnership (“QCP-A” and together with QCP and QSP, the “Quadrangle
Entities”), (g) Behrman Capital II, L.P., a Delaware limited partnership
(“Behrman”), (h) Strategic Entrepreneur Fund II, L.P., a Delaware limited
partnership (“SEF”), (i) Protek Network Management (UK) Limited, a company
formed under the laws of England and Wales, that is a wholly-owned subsidiary of
Protek and (j) Quadrangle Advisors LLC, a Delaware limited liability company.

     Reference is made to the following agreements, each dated as of May 7,
2004: the Stock Purchase Agreement by and among Protek, the Protek Sellers and
Holdings (together with the exhibits and schedules thereto, the “Stock Purchase
Agreement”); the Investment Agreement by and among Holdings, the Quadrangle
Entities, Behrman and SEF (together with the exhibits and schedules thereto, the
“Investment Agreement”); the Agreement and Plan of Merger and Share Exchange by
and among Daleen, Holdings, Acquisition Sub, Behrman and SEF (together with the
exhibits and schedules thereto, the “Merger Agreement”); and the Transaction
Support Agreement by and among the Quadrangle Entities, Behrman, SEF, Daleen,
Holdings, Protek and certain of the Protek Sellers (the "Transaction Support
Agreement” and, together with the Stock Purchase Agreement, the Merger Agreement
and the Investment Agreement, the “Transaction Agreements”). Capitalized terms
used without further definition in this Agreement have the meaning given to them
in the respective Transaction Agreement in respect of which such term is used
below.

     This Agreement is intended to implement the agreed upon amendments to the
Transaction Agreements and related agreements referenced therein collectively
set forth in the Preliminary Proposed Term Sheet, dated as of September 24,
2004, referencing the Investment Agreement, the Merger Agreement and the
Transaction Support Agreement, by and among certain of the parties to this
Agreement (the “Daleen Term Sheet”) and in the Preliminary Proposed Term Sheet,
dated as of September 24, 2004, referencing the Stock Purchase Agreement by and
among certain of the parties to this Agreement (the “Protek Term Sheet,” and
collectively with the Daleen Term Sheet, the “Term Sheets”). Except as expressly
set forth in Section F below, upon execution and delivery of this Agreement by
all parties hereto, the Term Sheets shall be superceded and will be of no
further force or effect.

 

--------------------------------------------------------------------------------

 

          In consideration of the foregoing premises and the mutual promises set
forth below, the undersigned parties hereby agree as follows:

     A. Modification of Stock Purchase Agreement. The Stock Purchase Agreement
is amended as follows:

          1. Section 3.1 of the Stock Purchase Agreement shall be deleted and
replaced in its entirety with the following:

     “Purchase Price. As full payment of the purchase price for (a) the Shares
and (b) the conversion of all options held by the Converting Optionholders (the
“Purchase Price”), Buyer shall, at Closing, (a) deliver to the Selling
Shareholders an aggregate of 166,414 shares of Common Equity of Buyer (the
“Common Equity Consideration”), to be allocated among the Selling Shareholders
and Converting Optionholders as set forth on Exhibit J attached hereto, together
with certificates representing the same, the further transfer of which shall be
restricted under the United States Securities Act of 1933, as amended (the
“Securities Act”), (b) deliver $200,000 in cash to Butcher, and (c) deliver to
the Converting Optionholders fully vested options in respect of an aggregate of
47,120 shares of the Common Equity of Buyer as set forth on Exhibit J attached
hereto. The parties hereto agree that each share of Common Equity of Buyer shall
be deemed, solely for purposes of this Agreement, to have a value per share of
Common Equity of $25.

     Twenty-four thousand (24,000) shares of the Common Equity Consideration and
shares of Common Equity of the Buyer underlying the fully-vested options shall
not be distributed at Closing and shall be held by Daleen Holdings for release
upon receipt of cash under certain arrangements as set forth on Exhibit J-1
attached hereto. Upon receipt of any amounts (as a result of full or partial
payment) referenced on Exhibit J-1, shares of, and options to acquire, Daleen
Holdings’ Common Stock (valued as set forth above) representing the dollar value
of the cash so received (based on the exchange rate at that time) shall be
distributed amongst the Sellers pro rata in accordance with the “Escrow Equity”
set forth beside each such Sellers’ name on Exhibit J. No fractional shares or
options to purchase fractional shares shall be distributed pursuant to the
foregoing and any such fractional shares shall be subject to distribution upon
the next distribution event. Upon receipt of all amounts by September 24, 2005,
all such “Escrow Equity” set forth beside the name of each such Seller on
Exhibit J attached hereto shall be released without regard to aggregate dollar
values of cash so received. If any amounts set forth on Exhibit J-1 attached
hereto are not received by September 24, 2005, Common Equity Consideration and
options to acquire Common Equity of the Buyer with a value equal to the amounts
so not received, pro rata among the Sellers, shall be deemed returned to Daleen
Holdings as indemnification therefor and promptly cancelled and the balance (if
any) of any such shares or options still being held by Daleen Holdings shall be
distributed to the appropriate Sellers.

     In addition to the foregoing, Buyer shall assume, pay and perform the
Company’s obligations (i) set forth on Exhibit K attached hereto, (ii) arising
under all executory contracts and leases, (iii) statutory contributions required
under the laws of the United

2

--------------------------------------------------------------------------------

 

Kingdom to be made by the Company’s optionholders in connection with the
exercise of options upon consummation of the transactions contemplated by this
Agreement, (iv) described in Section 7.1(o)(i) and (v) incurred after
September 24, 2004 and approved by Quadrangle (collectively, the “Assumed
Liabilities”). Notwithstanding the foregoing, the Buyer shall not assume, pay or
discharge any of the Liabilities of the Company, whether fixed, unliquidated,
contingent or otherwise, which arise out of or relate to periods prior to the
Closing other than the Assumed Liabilities (the “Retained Liabilities”) and the
Retained Liabilities shall hereby be assigned to the Sellers concurrent with the
Closing. The Assumed Liabilities shall hereby be assigned to the Buyer
concurrent with the Closing. The Buyer hereby agrees to assume and timely pay
and discharge the Assumed Liabilities and the Sellers hereby agree to assume and
timely pay and discharge the Retained Liabilities on and after the Closing. In
addition to the obligations set forth in Section 11 hereof, each of the Buyer
and the Sellers shall defend, protect, indemnify, and hold harmless the others
and its affiliates from and against any and all loss, cost, liability, expense,
claim, action, damages, and fines (including those arising from the loss of
life, personal injury and/or property damage), including reasonable attorneys’
fees, directly or indirectly arising from or out of any failure by such party to
perform his or its obligations, or any breach or violation of his or its
obligations, with respect to the foregoing assignment and assumption from and
after the Closing Date.”

     Schedule A attached hereto shall be attached to the Stock Purchase
Agreement as Exhibit J thereto, Schedule A-1 attached hereto shall be attached
to the Stock Purchase Agreement as Exhibit J-1 and Schedule B attached hereto
shall be attached to the Stock Purchase Agreement as Exhibit K thereto.

          2. The second sentence of Section 3.8 shall be deleted and replaced
with the following:

     “Of this amount, Protek and the Buyer agree that $500,000 (such amount, the
“Deposit”) shall be treated, and Protek shall cause PNM(UK)L to treat such
amount, as follows: The full amount of the Deposit shall be deemed additional
purchase price payable to the Company under Section 3.1 at Closing.”

          3. Section 6.4 shall be amended by replacing (a) the reference to
“300,000” with “208,000”, (b) the reference to “50,000” with “24,789” and (c)
the reference to “504,000” with “347,257.”

          4. Section 7.1(a) shall be amended by adding the following sentence to
the end of such section:

     “The parties hereby agree and acknowledge that no material business
decision shall be made or effected by Protek or any of its Subsidiaries between
September 24, 2004 and Closing without the prior written consent of the chief
executive officer of Daleen and that any business decision that affects the
revenue, expenses, cash flow and balance sheet (and items comprising the same)
must be subject to prior coordination with the chief executive officer of
Daleen. To better effect this coordination and consent and

3

--------------------------------------------------------------------------------

 

in addition to the obligations set forth in Section 7.1(b) hereof, the
management of Protek shall provide to the chief executive officer of Daleen
current (at least once a week or, more frequently, if similar reports are
produced more frequently by Daleen) and detailed (in accordance with past
practice and custom and containing, at the very least, information which is
equivalent to that similarly included in reports internally by Daleen’s
management) financial reports. The chief executive officer of Daleen shall meet
by teleconference with the chief executive officer and chief financial officer
of Protek no less than once a week to discuss ordinary course business matters
of Protek (such meetings to be in addition to and not in lieu of discussions in
respect of preparations for closing and post-closing combined operations).”

          5. The first sentence of the second paragraph of Section 7.1(d) shall
be amended to replace the reference to “the date hereof” with “September 24,
2004.”

          6. Clause (b) of Section 7.1(n)(ii) shall be deleted and replaced in
its entirety with the following:

     “(b) the Company shall, and the Sellers shall cause the Company to, offer
to pay in cash to each holder of Options, in consideration of the consensual
cancellation thereof, an amount equal to (a) the aggregate value of the Buyer
Common Equity (determined in accordance with Section 3.1) delivered at Closing
in respect of each Non-Voting Ordinary Share held by a Converting Optionholder
times (b) the number of Non-Voting Ordinary Shares subject to such Option;”

          7. Section 7.1(o) shall be deleted and shall be replaced in its
entirety with the following:

     “Liabilities of the Company. At the Closing, the only Liabilities of the
Company and the Company Subs shall be (i) trade payables of an amount and type
consistent with the Ordinary Course of the Company’s and the Company Subs’
business and the Company’s and the Company Subs’ past practice, (ii) Assumed
Liabilities and (iii) such Retained Liabilities as shall have been jointly and
severally assumed by the Sellers pursuant to Section 3.1 hereof.”

          8. Section 7.1(r)(iii)(3) shall be deleted and replaced in its
entirety with the following:

               “waives the application of Article 7 of the Articles of
Association of the Company to the deliveries to be made at Closing;”

          9. Section 7.2(b) shall be amended by deleting the first sentence and
replacing in its entirety with the following:

               “The Sellers and their respective Affiliates and Associates shall
not, from the date of this Agreement until the six-month anniversary of the
Closing (with respect to Butcher and Kalinowska, until the Closing), directly or
indirectly own, manage, operate, join,

4

--------------------------------------------------------------------------------

 

control or participate in the ownership, management, operation or control of, or
be employed or retained by, render services to, provide financing or advice to,
or otherwise be connected in any manner with any Restricted Business.”

          10. Section 8.2 shall be amended by inserting the following
parenthetical “(other than those set forth in Sections 4.13 and 5.3 and without
reference to the term “prospects” in Section 4.7(i))” after the word “Agreement”
and before the words “, or otherwise.”

          11. Section 8.11 shall be amended by replacing the reference to
“February 29, 2004” therein with “September 24, 2004.”

          12. Section 9.5 shall be amended by deleting its title and replacing
the same with “Delivery of Common Equity Consideration and other Consideration”
and deleting the words “the Total Cash Purchase Price and” therein and replacing
them with “the cash payable pursuant to Section 3.1 hereof”.

          13. Section 10 shall be deleted and replaced in its entirety with the
following:

     “None of the representations or warranties in this Agreement (other than
those set forth in Sections 4.1, 4.2, 4.3, 4.4, 4.5, 4.21, 5.1 and 5.2, which
shall survive the Closing indefinitely) shall survive the Closing. Following
consummation of the Closing, any breach of representations or warranties by any
party shall be deemed to be waived by all other parties, and such other parties
shall be deemed to fully release and forever discharge the breaching party on
account of any and all claims, demands or charges, known or unknown with respect
to the same, except that nothing in this Section 10 shall be construed so as to
limit the ability of any party to bring a claim or action against any other
person for fraud committed directly by such person. The foregoing provision
shall not limit any covenant or agreement of any of the parties which by its
terms contemplates performance after the Closing.”

          14. Section 12.1(ii) shall be revised by replacing the reference to
“September 30, 2004” therein with “January 31, 2005.”

          15. Section 12.1(iii) shall be deleted and replaced in its entirety
with the following:

          “by Buyer, if there shall have occurred, on the part of the Company or
the Sellers, a breach of any representation, warranty, covenant or agreement
contained in this Agreement (other than those set forth in Sections 4.13 and 5.3
and without reference to the term “prospects” in Section 4.7(i)) that (x) would
result in a failure of a condition set forth in Section 8.1 or 8.2 and (y) which
is not curable or, if curable, is not cured within thirty (30) calendar days
after written notice of such breach is given by Buyer to the Company;”

          16. The definition of “Company Material Adverse Effect” shall be
amended by adding the following new clauses to the end of such definition:

5

--------------------------------------------------------------------------------

 

     (g) any effect on the Company or its Affiliates as a result of the public
announcement of the Term Sheets or this Agreement and the pendency of the
transactions contemplated by the Transaction Agreements;

     (h) any effects arising out of matters disclosed in the disclosure
schedules delivered by the Company other than those arising out of or related to
the Russian Investigation which have not been disclosed as anticipated or
expected in such schedules; and

     (i) any changes arising out of economic or business conditions generally
applicable to companies in the Company’s and its Subsidiaries’ line of business.

          19. Sections 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.9, 3.10, 7.1(n)(iii),
7.1(h), 7.2(h), 8.18, 9.7 and 11 of the Stock Purchase Agreement shall be
deleted, together with all references thereto. Exhibits B, D and I to the Stock
Purchase Agreement shall be deleted and all references thereto shall be deleted.
The second sentence of Section 7.1(m) and the last sentence of Section 13.6
shall be deleted.

     B. Modifications to the Protek Bridge Agreement. The Protek Bridge
Agreement (as defined in the Stock Purchase Agreement) is hereby amended as
follows:

          1. Clause (c) under the definition of “Repayment Date” shall be
deleted and replaced in its entirety with “31 January 2005.”

          2. “Sub-Facility A Amount” shall be revised to mean and refer to
US$4,000,000.”

          3. Section 5.1 shall be amended by adding the following clause to the
end thereof:

“(g) Quadrangle (as defined in the Definitive Agreement) has consented to such
Advance.”

     C. Modification of Investment Agreement. The Investment Agreement is hereby
amended as follows:

          1. The number of shares of Series A Preferred Stock set forth next to
the name of each Quadrangle Investor and each Behrman Investor shall be amended
to reflect the number of shares of Series A Preferred Stock set forth next to
the names of each Quadrangle Investor and each Behrman Investor on Schedule C to
this Agreement, subject to adjustment as contemplated by Section 1(c) of the
Investment Agreement.

          2. Section 1(a) shall be amended by inserting the words “or by
assignment of the promissory notes made by Daleen in favor of the Quadrangle
Investors” after the word “funds” and before “at the Closing.”

6

--------------------------------------------------------------------------------

 

          3. Section 1(b) shall be amended by adding the following to the end of
such section, “and the right to receive $827,391.59 under Section 1.1(d) of the
Merger Agreement.”

          4. Section 1(c) shall be amended by (a) replacing the reference to
“the date hereof” with “September 24, 2004”, (b) replacing the reference to “ten
(10) days” with “five (5) days” and (c) the term “Additional Investors Maximum
Purchase Amount” shall be amended to mean and refer to an aggregate Offering
Price of $3,428,676.

          5. The penultimate sentence of Section 2 shall be amended by inserting
the words “in a manner permitted by Section 1” after the words “wire transfer”
and before the words “, or any combination thereof.”

          6. The term “Minimum Offering Amount” shall mean and refer to
$20,800,000.

          7. Section 6.1(c) shall be amended by replacing the words “the date
hereof” with “September 24, 2004.”

          8. Sections 6.3(c), 9.3(b) and 9.3(g)(ii) shall be deleted.

          9. Section 9.3(g) shall be amended to replace the reference to
“September 30, 2004” with “January 31, 2005.”

          10. Section 9.3(f) shall be deleted and replaced in its entirety with
the following:

     “may be terminated by the Quadrangle Investors, if, prior to any
termination of the Protek Stock Purchase Agreement or delivery of a termination
notice under the Protek Stock Purchase Agreement, each in accordance with its
terms, there shall have occurred, on the part of Protek or any Seller, a breach
of any representation, warranty, covenant or agreement contained in the Protek
Stock Purchase Agreement (other than those set forth in Sections 4.13 and 5.3
thereof and without reference to the term “prospects” in Section 4.7(i) thereof)
that (x) would result in a failure of a condition set forth in Section 8.1 or
8.2 thereof and (y) which is not curable or, if curable, is not cured within
thirty (30) calendar days after written notice of such breach is given by the
Company to Protek;”

The parties hereto acknowledge and agree that this revision is not intended to
condition the transactions contemplated in the Investment Agreement and the
Merger Agreement upon consummation of the transactions contemplated by the Stock
Purchase Agreement.

          11. “Material Adverse Effect” shall be amended by adding the following
to the end of the definition “, any effect on the Company or its Affiliates as a
result of the public announcement of the Term Sheets or this Agreement and the
pendency of the transactions contemplated by the Transaction Documents, any
effects arising out of matters disclosed in the

7

--------------------------------------------------------------------------------

 

Protek Stock Purchase Agreement and Daleen Merger Agreement (including the
disclosure schedules thereto updated as of September 24, 2004), any changes
arising out of economic or business conditions generally to companies in the
Company’s line of business and any change of effect relating to or arising out
of the Protek Stock Purchase Agreement, including any termination thereof.”

          12. The Certificate of Designations (Exhibit B to the Investment
Agreement) shall be amended by deleting the second, third, penultimate and last
sentences of Section 2(a) thereof and deleting clause (A)(1)(y) of the
definition of “Additional Shares of Common Stock.”

          13. The Stockholders’ Agreement (Exhibit C to the Investment
Agreement) shall be amended by (a) revising the definition of “Exempted
Issuance” by replacing the word “including” in clause (i) thereof with the words
“other than” and adding “Daleen Merger Agreement (as defined in the Investment
Agreement) and” immediately after the words “pursuant to” in clause (i) and (b)
revising Section 3.2 by inserting the parenthetical, “(after taking into
account, and subject to, liquidation preferences set forth in the Certificate of
Designations (as defined in the Investment Agreement) such that amounts
distributed in respect of different classes of stock need not be the same if
such difference arises as a result of observation of the liquidation preferences
reflected therein)” after the words “at the same price per share.”

          14. The Registration Rights Agreement (Exhibit D to the Investment
Agreement) shall be revised by deleting clauses (i) and (ii) of Section 3.1(d)
and replacing the same with “all Registrable Securities requested to be included
in such registration by the Selling Holders holding securities set forth in
clauses (a), (b) and (c) of the definition of “Registrable Securities,” in each
case, allocated pro rata, as nearly as practical, to the respective amounts of
Registrable Securities held by the Selling Holders (with all calculations
pursuant to this sentence to be made excluding any Selling Holders who withdraw
its request for registration as provided in the immediately following
sentence).”

     D. Modifications to the Bridge Loan Agreement (as defined in the Investment
Agreement). The Bridge Loan Agreement is hereby amended as follows:

          1. The Quadrangle Entities shall be added as Lenders under the Bridge
Loan Agreement. The Borrower shall deliver Notes to the Quadrangle Entities in
the amounts set forth herein concurrently with the execution of this Agreement.

          2. Section 1.1 of the Bridge Loan Agreement shall be amended by
replacing the reference to “$5.1 million” to “$14.3 million” and replacing the
reference to “May 25, 2005” with “January 25, 2005.” The maximum principal
amount set forth beneath each Lender’s respective signature shall be amended to
reflect the amounts set forth on Schedule D attached hereto. Section 1.1 shall
be further amended by adding the following sentence to the end of such section:

8

--------------------------------------------------------------------------------

 

          “The Quadrangle Entities agree to fund $7,500,000 on September 24,
2004 and thereafter all additional loans shall be funded 50% by Behrman and SEF
and 50% by the Quadrangle Entities.”

          3. The second sentence of Section 1.2(b) is deleted.

          4. Section 1.2(d) shall be amended be replacing the reference to
“Lenders” therein with “Behrman, on behalf of the Lenders”.

          5. A new Section 1.2(e) shall be inserted to read as follows:

          “Behrman hereby holds the security interest granted in Section 1.2(d)
above under and subject to the terms and conditions set forth in this Section
1.2(e) for the benefit of the Lenders. Behrman shall take such action with
respect to the security interest granted herein as mutually agreed to by the
Lenders. Behrman shall be responsible to disburse all proceeds from the security
interests granted herein to the Lenders, pro rata based on the amounts extended
hereunder, promptly upon receipt. Behrman shall not be personally liable for any
acts, omissions, errors of judgment or mistakes of fact or law made, taken or
omitted to be made or taken by it in accordance with this Agreement in respect
of the security interests granted hereunder (including, without limitation,
acts, omissions, errors or mistakes with respect to the collateral), except for
those arising out of or in connection with Behrman’s gross negligence or willful
misconduct.”

          6. All references to “Lender” or “Lenders” in Section 1.3 shall be
amended to refer instead to “Behrman and/or SEF.”

          7. Section 3(a) shall be amended by replacing the reference to
“$1,500,000” with “$4,000,000” and by adding “; provided, that, any such
advances under the Protek Facility on or after September 24, 2004 shall require
the consent of the Quadrangle Entities.”

          8. The following shall be inserted as new sections under Section 8:

     “8.4 Daleen Merger Agreement. The Borrower shall not take any of the
actions prohibited by (nor omit to take any of the actions required by)
Article V of the Daleen Merger Agreement as in effect as of the date hereof (it
being understood that a termination of the Daleen Merger Agreement shall not
affect this covenant or the terms contained therein).

     8.5 Affirmative Covenants. The Borrower shall (a) timely pay its taxes when
due, (b) maintain its good standing in its jurisdiction or organization and in
all jurisdictions in which it is qualified to do business, and (c) be bound by
Section 9 of the Registration Rights Agreement (Exhibit D to the Investment
Agreement) as if the covenants of Daleen Holdings therein were, mutatis mutandi,
covenants of the Borrower (excluding, however, the covenants in paragraphs (d)
(reservation of stock), (e) (restrictive covenant agreements), (f)
(indemnification agreements), (g) (subsidiary boards), (h) (equity incentive
plan) and (i) (insurance), and the Lenders shall be entitled

9

--------------------------------------------------------------------------------

 

to all of the rights of the Qualified Holders and holders of Registrable
Securities contemplated thereunder.”

          9. Exhibit A to the Bridge Loan Agreement shall be amended by
replacing the reference to “May 1, 2005” in clause (a) of the definition of
“Maturity Date” therein with “January 1, 2005.”

     E. Modifications to the Merger Agreement. The Merger Agreement shall hereby
be amended as follows:

          1. Section 1.01(c) shall be amended by (a) replacing clauses (x) and
(y) thereof with “0.1113 shares of Parent PIK Preferred”, (b) deleting the
proviso after clause (y), (c) amending the definition of “Series F Value” to
mean and refer to “11.13 per share of Daleen Series F Preferred Stock” and
(d) deleting the words “and Common Stock” in the penultimate sentence thereof.
Exhibit A to the Merger Agreement shall be replaced in its entirety with
Exhibit A attached hereto.

          2. Section 2.01(a) shall be amended by deleting clauses (i) and (ii)
therein and the language thereafter and replacing the same with “0.4452 shares
of fully paid and nonassessable shares of Parent Common Stock.”

          3. Sections 2.02, 2.05, 7.02(c)(ii), 7.02(d) and 7.02(e) shall be
deleted.

          4. Section 4.02 shall be amended by deleting the third sentence
therein and replacing the same in its entirety with the following:

     “Immediately after Closing, the issued shares of capital stock of Parent
shall consist solely of (a) the shares of Parent PIK Preferred and Parent Common
Stock to be issued under this Agreement, (b) 208,000 shares of Parent Series A
PIK Preferred to be issued under the Investment Agreement, (c) 246,414 shares of
Parent Common Stock to be issued under the Protek Agreement and the Side
Purchase Agreements referenced therein, (d) shares of Parent Common Stock
subject to options to be granted under the Management Incentive Plan of Parent
and under the Protek Agreement, and (e) 100 shares of Parent’s Junior Preferred
Stock.”

          5. Section 7.03(a) shall be amended by inserting the parenthetical
“(other than Section 3.10)” immediately before clause (i) therein.

          6. Section 7.04(a) shall be amended by inserting the parenthetical
“(other than Section 4.05)” immediately before clause (i) therein.

          7. Section 7.04(e) shall be amended by replacing the reference to “the
date hereof” with “September 24, 2004” and deleting the words after “Company
Material Adverse Effect.”

10

--------------------------------------------------------------------------------

 

          8. Section 8.01(c) shall be amended by replacing the reference to
“September 30, 2004” therein with “January 31, 2005.”

          9. Article IX shall be deleted in its entirety.

          10. The first sentence Section 10.01 shall be deleted and replaced in
its entirety with the following:

     “None of the representations or warranties in this Agreement shall survive
the Closing. Following consummation of the Closing, any breach of
representations or warranties by any party shall be deemed to be waived by all
other parties, and such other parties shall be deemed to fully release and
forever discharge the breaching party on account of any and all claims, demands
or charges, known or unknown with respect to the same, except that nothing in
this Section 10.01 shall be construed so as to limit the ability of any party to
bring a claim or action against any other person for fraud committed directly by
such person. The foregoing provision shall not limit any covenant or agreement
of any of the parties which by its terms contemplates performance after the
Closing.”

          11. The definition of “Company Material Adverse Effect” shall be
amended by inserting the following clauses at the end of such definition:

     “(g) any effect on Company or its Subsidiaries as a result of the public
announcement of the Term Sheets or this Agreement and the pendency of the
transactions contemplated by the Transaction Agreements;

     (h) any effects arising out of matters disclosed in this Agreement and the
schedules hereto;

     (i) any changes arising out of economic or business conditions generally to
companies in the Company’s line of business; or

     (j) any change or effect relating to or arising out of the Protek
Agreement, including any termination thereof.”

     F. Modification to Transaction Support Agreement. Section 1 of the
Transaction Support Agreement is hereby amended by inserting “if not otherwise
terminated prior thereto,” after the words “Daleen Agreement” and immediately
prior to “Sections 8 and 9 of the Protek Agreement.” Section 3 shall be amended
by inserting “(other than the Protek Agreement)” after the first reference to
“Transaction Agreement” therein. A new Section 13 shall be inserted to read as
follows:

          “13. Termination. Upon termination of the Protek Agreement in
accordance with the terms set forth therein, Protek, Beaumont, Butcher and
Watterson shall no longer have any rights or obligations under this Agreement.
In addition, upon any such termination of the Protek Agreement, the remaining
parties hereby agree to use all commercially reasonable efforts

11

--------------------------------------------------------------------------------

 

to amend the Transaction Agreements and related agreements to reflect the terms
set forth in the term sheet among the other parties hereto dated as of
September 24, 2004, in the event of an acquisition of Daleen without Protek.”

     G. Other Corresponding Modifications to Transaction Agreements. The
recitals contained in the Transaction Agreements and cross-references in the
Transaction Agreements are hereby modified in accordance with the amendments to
the Transaction Agreements and the related agreements contemplated herein.
Schedules attached hereto shall be incorporated by reference into the document
in which they are so referenced pursuant to the terms contained in this
Agreement. The Schedules to the Stock Purchase Agreement referenced, and
intended to qualify representations set forth, in Article 4 thereof shall be
modified to reflect the revisions set forth in Schedule E attached hereto (as so
modified, the “Updated Protek Schedules”) and the Company Disclosure Schedules
shall be modified to reflect the revisions set forth in Schedule F attached
hereto (as so modified, the “Updated Daleen Schedules”). Defined terms no longer
used shall be deleted and references to terms defined in sections which have
been deleted shall continue to have the meaning set forth in such deleted
section, such deletion notwithstanding. All references to the Transaction
Agreements and the related agreements herein and therein shall mean and refer to
such agreement, as amended by this Agreement (including amendments to the
schedules and exhibits thereto).

     H. Modifications to Voting Agreements. The parties to this Agreement
acknowledge that the Voting Agreements (as defined in the Merger Agreement) have
been amended as contemplated by the Daleen Term Sheet.

     I. Modifications to Transaction Fee. The side letter by and among Daleen,
Daleen Holdings and Quadrangle Advisors LLC shall be hereby amended by replacing
the reference to “$400,000” therein with “$300,000.”

     I. No Admissions. This Agreement is entered into in order to effect the
premises set forth above, to compromise and settle certain disputed claims and
to avoid litigation, and nothing contained in this Agreement shall constitute or
be deemed an admission of breach, default, liability or fault on the part of any
party hereto, each of which specifically denies any such breach, default,
liability or fault. This Agreement does not constitute a release of any claim
that any party may have under the Transaction Agreements, as amended hereby.
Notwithstanding, the parties agree and acknowledge that upon execution and
delivery of this Agreement, no claims may be made with respect to the provisions
and disclosures which have been superceded specifically hereby. It is understood
and acknowledged by all parties that the settlement and compromise contemplated
by this Agreement shall be effective only upon the consummation of the
transactions contemplated by this Agreement.

     J. Representations and Warranties. Protek and the Sellers hereby make the
representations and warranties set forth in Sections 4 and 5 (without taking
into account the reference to the word “prospects” in Section 4.7(i)) of the
Stock Purchase Agreement, as modified by the Updated Protek Schedules. In
addition, Protek and the Sellers confirm that they have complied to date with
the obligations set forth in Section 7.1(n)(ii) of the Stock Purchase

12

--------------------------------------------------------------------------------

 

Agreement. Daleen hereby makes the representations and warranties set forth in
Article III of the Merger Agreement, as modified by the Updated Daleen
Schedules.

     K. Miscellaneous. Except as modified or amended by this Agreement, each of
the Transaction Agreements shall continue unaltered and in full force and
effect. This Agreement shall be governed by the law of the State of New York
(but, in respect of the amendments made to the Investment Agreement, by the law
of the State of Delaware), without regard to any principles of conflict of laws
that would require the application of the law of another jurisdiction. The
undersigned consent to the jurisdiction of and venue in any state or federal
court located in the City of New York, State of New York in any action relating
to this Agreement. Together with the Transaction Agreements, this Agreement
constitutes the entire understanding of the parties in respect of the subject
matter of this Agreement and may only be amended in writing by a document
signing by each party hereto. This Agreement may be signed in counterparts.

[Remainder of page left blank; signature pages follow]

13

--------------------------------------------------------------------------------

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

                              QUADRANGLE CAPITAL PARTNERS LP         By:  
Quadrangle GP Investors LP, its General Partner             By:   Quadrangle GP
Investors LLC, its General Partner
 
                                        By:   /s/ MICHAEL HUBER                
   

--------------------------------------------------------------------------------

                  Name:   Michael Huber

                     

--------------------------------------------------------------------------------

                  Title:   Managing Principal

                     

--------------------------------------------------------------------------------

 
                       
 
                            QUADRANGLE SELECT PARTNERS LP         By:  
Quadrangle GP Investors LP, its General Partner             By:   Quadrangle GP
Investors LLC, its General Partner
 
                                        By:   /s/ MICHAEL HUBER                
   

--------------------------------------------------------------------------------

                  Name:   Michael Huber

                     

--------------------------------------------------------------------------------

                  Title:   Managing Principal

                     

--------------------------------------------------------------------------------

 
                       
 
                            QUADRANGLE CAPITAL PARTNERS-A LP         By:  
Quadrangle GP Investors LP, its General Partner             By:   Quadrangle GP
Investors LLC, its General Partner
 
                                        By:   /s/ MICHAEL HUBER                
   

--------------------------------------------------------------------------------

                  Name:   Michael Huber

                     

--------------------------------------------------------------------------------

                  Title:   Managing Principal

                     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

              DALEEN TECHNOLOGIES, INC.
 
       

  By:   /s/ GORDON QUICK

     

--------------------------------------------------------------------------------

 

  Name:   Gordon Quick

     

--------------------------------------------------------------------------------

 

  Title:   Pres. & CEO

     

--------------------------------------------------------------------------------

 
 
       
 
            DALEEN HOLDINGS, INC.
 
       

  By:   /s/ GORDON QUICK

     

--------------------------------------------------------------------------------

 

  Name:   Gordon Quick

     

--------------------------------------------------------------------------------

 

  Title:   CEO & Treas.

     

--------------------------------------------------------------------------------

 
 
       
 
            PARALLEL ACQUISITION, INC.
 
       

  By:   /s/ GORDON QUICK

     

--------------------------------------------------------------------------------

 

  Name:   Gordon Quick

     

--------------------------------------------------------------------------------

 

  Title:   CEO & Treas.

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

              BEHRMAN CAPITAL II, L.P.
 
            By: Behrman Brothers, LLC, its General Partner
 
       

  By:   /s/ GRANT G. BEHRMAN

     

--------------------------------------------------------------------------------

  Name:   Grant G. Behrman

     

--------------------------------------------------------------------------------

  Title:   Managing Member

     

--------------------------------------------------------------------------------

 
       
 
            STRATEGIC ENTREPRENEUR FUND II, L.P.
 
       

  By:   /s/ GRANT G. BEHRMAN

     

--------------------------------------------------------------------------------

  Name:   Grant G. Behrman

     

--------------------------------------------------------------------------------

  Title:   General Partner

     

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

              PROTEK TELECOMMUNICATIONS SOLUTIONS LIMITED
 
       

  By:   /s/ P. A. BEAUMONT

     

--------------------------------------------------------------------------------

 

  Name:   P. A. Beaumont

     

--------------------------------------------------------------------------------

 

  Title:   CEO

     

--------------------------------------------------------------------------------

 
 
            PROTEK NETWORK MANAGEMENT (UK) LIMITED
 
       

  By:   /s/ P. A. BEAUMONT

     

--------------------------------------------------------------------------------

 

  Name:   P. A. Beaumont

     

--------------------------------------------------------------------------------

 

  Title:   Director

     

--------------------------------------------------------------------------------

 
 
   

  PAUL A. BEAUMONT
 
   

       /s/ PAUL A. BEAUMONT

 

--------------------------------------------------------------------------------

 
   

  GEOFF BUTCHER
 
   

       /s/ GEOFF BUTCHER

 

--------------------------------------------------------------------------------

 
   

  IAN WATTERSON
 
   

       /s/ IAN WATTERSON

 

--------------------------------------------------------------------------------

 
   

  MICHAEL WHITE
 
   

       /s/ MICHAEL WHITE

 

--------------------------------------------------------------------------------

 
   

  MICHAEL KERSTEN
 
   

       /s/ MICHAEL KERSTEN

 

--------------------------------------------------------------------------------

 
   

  BARBARA KRYSTYNA KALINOWSKA
 
   
     /s/ MARTIN COAKLEY

--------------------------------------------------------------------------------

  Acting by her attorney Martin Coakley

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

              QUADRANGLE ADVISORS LLC
 
       

  By:   /s/ DAVID TANNER

     

--------------------------------------------------------------------------------

 

  Name:   David Tanner

     

--------------------------------------------------------------------------------

 

  Title:   Managing Member

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

EXHIBIT A

Exchanged Shares

                      Daleen Common Stock

--------------------------------------------------------------------------------

  Daleen Series F Preferred Stock

--------------------------------------------------------------------------------

Behrman Capital II, L.P.
    21,258,417       219,744  
Strategic Entrepreneurship Fund II, L.P.
    288,239       2,980