Document:

AGREEMENT

Exhibit 10.38

 

 

AGREEMENT

 

THIS SUPPLEMENTAL

AGREEMENT is made the 16th day of October 1994

 

BY AND BETWEEN

 

UNILEVER PLC, of Unilever

House, Blackfriars, London, EC4P 4BQ, England, and

 

UNILEVER NV, of Weena

455, 3013 AL, Rotterdam, The Netherlands, previously at Burgermeester

s’Jacobplain 1, Rotterdam, (hereinafter collectively called “Unilever”) of the

one part,

 

AND

 

BEHRINGWERKE AG, of

Postfach 11 40, D-3550 Marburg 1, Germany, (hereinafter called “Behringwerke”)

of the other part.

 

WHEREAS the parties

hereto executed a cross-licence agreement of 14 March 1988 (the “Prior

Agreement”) relating to immunoassay technology, and the parties desire to amend

the Prior Agreement as hereinafter set forth;

 

WHEREBY IT IS AGREED as

follows:

 

1.                                       Clause 4(I) of the Prior Agreement is

amended to read as follows:

“Subject to clause 4(2)

and 4(3) each licence granted in accordance with this Agreement is personal to

the Licensee thereof and such Licensee may not assign any licence or any

benefit granted hereunder nor grant any sublicence in respect thereof without

the written consent of the other party hereto, except as permitted according to

clause 4(4) hereof”.

2.                                       Add new clause 4(4) to the Prior

Agreement as follows:

“If either Licensee

hereto transfers to any third party all or a material and discrete portion of

its business relating to the respective Licensed Patents, that party may

transfer to such third party the licence rights granted under this Agreement

which relate solely to the business or part thereof which is so transferred,

provided that such third party previously accepts in writing to the

corresponding licensor party hereunder all relevant rights and

 

 

 

obligations in relation to the transferred business

under this Agreement.  Any licence

rights which are transferred by virtue of this clause shall be exercisable by

the third party only in connection with the business or part hereof which is so

transferred from the Licensee, and shall not extend to any existing or to any

future activities of such third party except to the strict extend that they are

derived directly from the business so transferred”.

3.                                       The foregoing amendments are effective as

of the date first above mentioned, and subject to such amendments, the Prior

Agreement remains in full force and effect.

AS WITNESS the hands of the signatories duly

authorized to execute this Supplemental Agreement on behalf of the parties

hereto:

 

For and on behalf of UNILEVER PLC:

 

 

	

  /s/ R.V. Tate

  
	

  R.V. Tate

  
	

  (authorised signatory)

  

 

For and on behalf of UNILEVER NW:

 

	

  /s/ [illegible]

  

 

 

	

  /s/ J.P. van Gent

  
	

  J.P. van Gent

  
	

  (authorized signatory)

  

 

For and on behalf of BEHRINGWERKE AG:

 

 

	

  /s/ Veith

  	

   

  	

  /s/ Dr. Bug

  
	

  Veith

  	

   

  	

  Dr. Bug

  

 

	

   

  
	

  1 September 1994

  

 

2Clifford Chance

Exhibit 10.39

 

 

	

   

  	

  The Royal Bank

  
	

   

  	

  of Scotland

  
	

   

  	

   

  
	

   

  	

  Leveraged Finance

  
	

   

  	

  Level 7

  
	

   

  	

  135 Bishopsgate

  
	

   

  	

  London EC2M 3UR

  
	

   

  	

   

  
	

   

  	

  Telephone:   020 7375 5000

  
	

   

  	

  Facsimile:    020 7375 4003

  
	

   

  	

  Website:      www.rbs.co.uk

  

 

 

	

  To:

  	

   

  	

  Inverness Medical Innovations, Inc. (the “Parent

  Guarantor”)

  
	

   

  	

   

  	

  as agent of each Borrower (as defined in

  the Senior Credit Agreement as defined below)

  
	

   

  	

   

  	

   

  	

  28 March, 2002

  

 

Dear

Sirs

Credit agreement (as

amended from time to time) (the “Senior Credit Agreement”) dated 20 December

2001 made between the Parent Guarantor, Inverness Medical Switzerland GmbH,

certain banks and The Royal Bank of Scotland plc as lead arranger, facility

agent, issuing bank and overdraft bank.

Unless

otherwise defined herein capitalised terms used in this letter shall have the

meaning specified in the Senior Credit Agreement.

We, The

Royal Bank of Scotland plc, write to you in our capacity as Facility Agent for

and on behalf of the Finance Parties.

The

Parent Guarantor has requested that the Facility Agent consent to certain

amendments to the Senior Credit Agreement and we are writing to confirm the

terms upon which the Facility Agent, on behalf of all of the Finance Parties,

has agreed to such amendments.

1.                                 Amendments

Upon countersignature by you of this letter, the

Senior Credit Agreement shall be amended as set out below:-

1.1                           Clause 14.4.1 shall be amended

by:

1.1.1                            in paragraph (a), on the first

line under the heading ‘Column A Period’, deleting the words “1 January 2002 to

31 March 2002” and under the heading ‘Column B Ratio’, deleting the ratio

“3.90:1”;

1.1.2                            in paragraph (b) deleting, in

the third line, the words “31 March 2002” and replacing them with the words “30

June 2002”; and

1.1.3                             in paragraph (c), on the first

line under the heading ‘Column A Period’ deleting the words “31 March 2002”,

and under the heading ‘Column B Ratio’, deleting the ratio “3.60:1”.

 

 

2.                                 Effectiveness of the Senior Credit

Agreement

Save as expressly amended hereby, the Senior Credit

Agreement shall remain in full force and effect in accordance with its terms

and nothing contained herein shall prejudice any of the rights of the Finance

Parties under the Financing Documents nor shall be deemed to be a waiver of any

breach or potential breach by the Parent Guarantor or the Borrower under the

Senior Credit Agreement.

3.                                 Costs and Expenses

The

Parent Guarantor shall reimburse the Facility Agent from time to time for all

costs and expenses (including reasonable legal fees and value added tax

thereon) incurred by it in the preparation, negotiation, execution and

enforcement of this letter and in connection with the preservation of its

rights hereunder.

4.                                 Financing Document

Upon execution

by the Parent Guarantor this letter shall be a Financing Document as defined in

the Senior Credit Agreement.

5.                                 Incorporation of Terms

The

provisions of Clause 25 (Law and Jurisdiction) of the Senior Credit

Agreement shall be incorporated into this letter as if set out in full in this

letter and as if references in those clauses to “this Agreement” or “the

Financing Documents” are references to this letter.

6.                                 Counterparts

This

letter may be executed in any number of counterparts, and this has the same

effect as if the signatures on the counterparts were on a single copy of this

letter.

 

Yours faithfully

 

	

  /s/ Denise

  Hepworth

  	

   

  
	

  for and on

  behalf of

  
	

  THE ROYAL BANK OF

  SCOTLAND plc

  
	

  for and on

  behalf of

  
	

  the Finance

  Parties

  

 

 

 

 

We

hereby accept and agree to the terms and conditions of this letter of which

this is a duplicate.

 

2

 

	

  /s/ Ron Zwanziger

  	

   

  
	

  for and on behalf of

  	

   

  
	

  INVERNESS MEDICAL INNOVATIONS, INC.

  	

   

  
	

  for and on behalf of itself and

  	

   

  
	

  INVERNESS MEDICAL SWITZERLAND GmbH

  	

   

  
	

   

  	

   

  
	

  Date:

  	

  March 28, 2002<PAGE>

                                                                   Exhibit 10.65

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.
THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF REGISTRATION, OR THE AVAILABILITY OF EXEMPTION FROM REGISTRATION,
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, BASED ON AN OPINION LETTER OF
COUNSEL SATISFACTORY TO THE COMPANY OR A NO-ACTION LETTER FROM THE SECURITIES
AND EXCHANGE COMMISSION.

                                                               Option No. 2001-1

                         OPTION TO PURCHASE COMMON STOCK
                                       OF
                        AQUIS COMMUNICATIONS GROUP, INC.

         This certifies that, for value received, JOHN B. FRIELING ("Holder"),
is entitled, subject to the terms set forth below, to purchase from AQUIS
COMMUNICATIONS GROUP, INC., a Delaware corporation (the "Company"), that number
of shares of the Common Stock of the Company (the "Shares") as are set forth in
Section 2 below, commencing on the Option Issue Date identified on Schedule A
hereto (the "Option Issue Date"), with the Notice of Exercise attached hereto
duly executed, and simultaneous payment therefore in lawful money of the United
States or for other consideration permitted herein, at the Exercise Price as set
forth in Section 2 below. The number, character and Exercise Price of the Shares
are subject to adjustment as provided below.

         1. Term of Option. Subject to compliance with the vesting provisions
identified at Section 2.3 hereafter, this Option shall be exercisable, in whole
or in part, during the term (the "Term") commencing on the Option Issue Date and
ending on the Option Termination Date identified on Schedule A hereto (the
"Option Termination Date") and shall be void thereafter.

         2. Exercise Price, Number of Shares and Vesting Provisions.

         2.1 Exercise Price. The Exercise Price at which this Option may be
exercised and pursuant to which Shares of the Company's Common Stock may be
purchased shall, on a per Share basis, be identified on Schedule A hereto, as
adjusted pursuant to Section 11 hereof.

         2.2 Number of Shares. The number of shares of the Company's Common
Stock $.01 par value per share ("Common Stock") which may be purchased pursuant
to this Option shall be as identified on Schedule A hereto, as adjusted pursuant
to Section 11 hereof.

         2.3 Vesting. The Options granted hereunder shall vest in the manner
identified on Schedule A attached hereto.

<PAGE>

         2.4 Acceleration of Vesting. Notwithstanding the provisions of Section
2.3 above, in the event of a "Change in Control" (as defined herein), all
unvested Options then outstanding at the time shall vest.

         2.5 Death of Holder and Termination.

                  (a) If during the Term the Holder shall cease to perform
"Service" (as hereafter defined) to the Company as a result of such Holder's
death, then, notwithstanding any provisions otherwise contained in this Option
Agreement, any Options then exercisable shall be exercisable until the earlier
to occur of the one year anniversary of the Holder's death or the expiration of
the Term and only by the Holder's personal representative or persons entitled
thereto under the Holder's will or the laws of descent and distribution.

                  (b) If during the Term the Holder shall cease to perform
Service to the Company as a result of a termination other than for Cause or the
Holder voluntarily terminates his or her Service to the Company, then any
Options then exercisable shall be exercisable until the expiration of the Term.
Notwithstanding the foregoing, in the event that any termination of Service
shall be for "Cause" (as defined herein), then any and all Options held by such
Holder shall forthwith terminate.

         2.6 Definitions. As used in this Option Agreement, the following terms
shall be defined as set forth hereafter:

                  (a) A "Change in Control" shall be deemed to have occurred if:
(i) any "person" (as such term is used in Section 13(d) and 14(d) of the
Securities Exchange Act of 1934 (the "Exchange Act")) acquires "beneficial
ownership" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or
more of the voting power of the then outstanding securities of the Company
except where the acquisition is approved by the Board; or (ii) if the Company is
to be consolidated with or acquired by another entity in a merger or other
reorganization in which the holders of the outstanding voting stock of the
Company immediately preceding the consummation of such event, shall, immediately
following such event, hold, as a group, less than a majority of the voting
securities of the surviving or successor entity or in the event of a sale of all
or substantially all of the Company's assets or otherwise.

                  (b) "Cause" means (a) with respect to a Holder who is party to
a written employment or consulting agreement with the Company which contains a
definition of "cause" or "for cause" or words of similar import for purposes of
termination of Service thereunder by the Company, "cause" or "for cause" as
defined in such agreement; (b) in all other cases (i) any violation of a law,
rule or regulation other than minor traffic violations, including without
limitation, any violation of the Foreign Corrupt Practices Act; (ii) a breach of
fiduciary duty for personal profit; (iii) fraud, dishonesty or other acts of
misconduct in the rendering of services on behalf of the Company or relating to
the Holder's employment; (iv) misconduct by the Holder which would cause the
Company to violate any state or federal law relating to sexual harassment or
age, sex or other prohibited discrimination or any violation of written policy
of the Company or any successor entity adopted in respect to such law; (v)
failure to follow Company

                                       2
<PAGE>

work rules or the lawful instructions (written or otherwise) of the Board of
Directors of the Company or a responsible executive to whom the employee
directly or indirectly reports, provided compliance with such directive was
reasonably within the scope of the Holder's duties and the Holder was given
notice that his or her conduct could give rise to termination and such conduct
is not, or could not be cured, within ten (10) days thereafter; or (vi) any
violation by the Holder of a confidentiality or non-competition agreement or
patent assignment agreement or any agreement relating to the Company's
protection of intellectual property rights.

                  (c) "Service" means a Holder's employment or services rendered
to the Company, whether in the capacity of an employee, officer, director or a
consultant. The Holder's Service shall not be deemed to have terminated merely
because of a change in the Company for which the Holder renders such Service,
provided that there is no interruption or termination of the Holder's Service.
Furthermore, a Holder's Service with the Company shall not be deemed to have
terminated if the Holder takes any military leave, sick leave, or other bona
fide leave of absence approved by the Company; provided, however, that if any
such leave exceeds ninety (90) days, on the ninety-first (91st) day of such
leave the Holder's Service shall be deemed to have terminated unless the
Holder's right to return to Service with the Company is guaranteed by statute or
contract.

                  (d) "Retirement" means the termination of Service with the
Company, other than for Cause, at any time under circumstances which would
entitle such Holder to other retirement benefits provided by the Company to whom
the Holder was providing Service immediately prior to the termination of Service
or such other circumstances that the Chairman of the Company's Compensation
Committee, or in lieu thereof, the Company's Board of Directors in the
alternative, (the "Administrator") concludes should be deemed a retirement.

                  (e) "Disability" means that Holder, at the time notice of
termination is given, has been unable to substantially perform his/her
employment duties to the Company for a period of not less than four (4)
consecutive months as the result of his/her incapacity due to physical or mental
illness.

         3. Exercise of Option.

                  (a) The Option exercise price of each share purchased pursuant
to an Option shall be paid in full at the time of each exercise (the "Payment
Date") of the Option (i) in cash; (ii) by delivering to the Company a notice of
exercise with an irrevocable direction to a broker-dealer registered under the
Securities Act of 1933, as amended (the "Securities Act") to sell a sufficient
portion of the Shares and deliver the sale proceeds directly to the Company to
pay the exercise price; (iii) in the discretion of the Administrator, through
the delivery to the Company of previously-owned shares of Common Stock having an
aggregate "Fair Market Value" (as defined) equal to the Option exercise price
of the Shares being purchased pursuant to the exercise of the Option; provided,
however, that Shares of Common Stock delivered in payment of the Option price
must have been held by the Holder for at least six (6) months in order to be
utilized to pay the Option price; (iv) in the discretion of the Administrator,
by an election to have the Company withhold Shares otherwise issuable to the
Holder having a Fair Market Value equal to

                                       3
<PAGE>

the Option exercise price of the Shares being purchased pursuant to the exercise
of the Option; or (v) in the discretion of the Administrator, through any
combination of the payment procedures set forth in subsections (i)-(iv) above.

                (i) the "Fair Market Value" of the Shares shall be (i) if the
Company's Common Stock is listed on any established stock exchange or a national
market system, including without limitation the National Market or SmallCap
Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing
sales price for such stock (or the closing bid, if no sales were reported) as
quoted on such exchange or system for the last market trading day prior to the
time of determination, as reported in The Wall Street Journal or such other
source as the Administrator deems reliable; (ii) if the Common Stock is
regularly traded on the Nasdaq OTC Bulletin Board, or a comparable automated
quotation system, its Fair Market Value shall be the mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the day of determination; or (iii) in the absence of an established market
for the Common Stock, the Fair Market Value thereof shall be determined in good
faith by the Administrator.

            (b) The purchase rights represented by this Option are exercisable
by the Holder in whole or in part, at any time, or from time to time, by the
surrender of this Option and the Notice of Exercise annexed hereto duly
completed and executed on behalf of the Holder, at the office of the Company (or
such other office or agency of the Company as it may designate by notice in
writing to the Holder at the address of the Holder appearing on the books of the
Company).

            (c) This Option shall be deemed to have been exercised immediately
prior to the close of business on the date of its surrender for exercise as
provided above, and the person entitled to receive the shares of Common Stock
issuable upon such exercise shall be treated for all purposes as the holder of
record of such Shares as of the close of business on such date. As promptly as
practicable on or after such date and in any event within ten (10) days
thereafter, the Company at its expense shall issue and deliver to the person or
persons entitled to receive the same a certificate or certificates for the
number of Shares issuable upon such exercise. In the event that this Option is
exercised in part, the Company at its expense will execute and deliver a new
Option of like tenor exercisable for the number of Shares for which this Option
may then be exercised.

         4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this Option.
In lieu of any fractional share to which the Holder would otherwise be entitled,
the Company shall make a cash payment equal to the Exercise Price multiplied by
such fraction.

         5. Replacement of Option. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Option and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and substance to the Company
or, in the case of mutilation, on surrender and cancellation of this

                                       4
<PAGE>

Option, the Company at its expense shall execute and deliver, in lieu of this
Option, a new Option of like tenor and amount.

         6. Rights of Stockholder. Except as otherwise contemplated herein, the
Holder shall not be entitled to vote or receive dividends or be deemed the
holder of Common Stock or any other securities of the Company that may at any
time be issuable on the exercise hereof for any purpose, nor shall anything
contained herein be construed to confer upon the Holder, as such, any of the
rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par
value, or change of stock to no par value, consolidation, merger, conveyance or
otherwise) or to receive notice of meetings, or to receive dividends or
subscription rights or otherwise until the Option shall have been exercised as
provided herein.

         7. Transfer of Option.

            7.1 Non-Transferability. No Option shall be assignable or
transferable other than by the laws of descent and distribution. During the
lifetime of the Holder, an Option shall be exercisable only by the Holder or, in
the event of the Holder's incapacity, by the Holder's legal guardian or legal
representative.

            7.2 Exchange of Option Upon a Transfer. On surrender of this Option
for exchange, properly endorsed, the Company at its expense shall issue to or on
the order of the Holder a new Option or Options of like tenor, in the name of
the Molder or as the Holder (on payment by the Holder of any applicable transfer
taxes) may direct, of the number of shares issuable upon exercise hereof.

            7.3 Compliance with Securities Laws; Restrictions on Transfers.

                (a) The Holder of this Option, by acceptance hereof,
acknowledges that this Option and the Shares to be issued upon exercise hereof
arc being acquired solely for the Holder's own account and not as a nominee for
any other party, and for investment (unless such Shares are subject to resale
pursuant to an effective prospectus), and that the Holder will not offer, sell
or otherwise dispose of this Option or any Shares to be issued upon exercise
hereof except under circumstances that will not result in a violation of
applicable federal and state securities laws. Upon exercise of this Option, the
Holder shall, if requested by the Company, confirm in writing, in a form
satisfactory to the Company, that the shares of Common Stock so purchased are
being acquired solely for the Holder's own account and not as a nominee for any
other party, for investment (unless such shares are subject to resale pursuant
to an effective prospectus), and not with a view toward distribution or resale.

                (b) Neither this Option nor any share of Common Stock issued
upon exercise of this Option may be offered for sale or sold, or otherwise
transferred or sold in any transaction which would constitute a sale thereof
within the meaning of the Securities Act, unless (i) such security has been
registered for sale under the Securities Act and registered or qualified under
applicable state securities laws relating to the offer an sale of securitics, or
(ii) exemptions

                                       5
<PAGE>

from the registration requirements of the Securities Act and the registration or
qualification requirements of all such state securities laws are available and
the Company shall have received an opinion of counsel satisfactory to the
Company that the proposed sale or other disposition of such securities may be
effected without registration under the Securities Act and would not result in
any violation of any applicable state securities laws relating to the
registration or qualification of securities for sale, such counsel and such
opinion to be satisfactory to the Company.

                (c) All Shares issued upon exercise hereof shall be stamped or
imprinted with a legend in substantially the following form (in addition to any
legend required by state securities laws).

"THE SECURITIES REPRESENTED BY THIS CERTWICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY APPLICABLE STATE
SECURITIES LAWS. THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF REGISTRATION, OR THE AVAILABILITY OF EXEMPTION
FROM REGISTRATION, UNDER THE SECURITIES ACT OF 1933, AS AMENDED, BASED ON AN
OPINION LETTER OF COUNSEL SATISFACTORY TO THE COMPANY OR A NO-ACTION LETTER FROM
THE SECURITIES AND EXCHANGE COMMISSION."

         8. Reservation and issuance of Stock; Payment of Taxes.

            (a) The Company covenants that during the term that this Option is
cxercisable, the Company will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Shares
upon the exercise of this Option, and from time to time will take all steps
necessary to amend its Certificate of Incorporation to provide sufficient
reserves of Shares of Common Stock issuable upon the exercise of the Option.

            (b) The Company further covenants that all Shares of Common Stock
issuable upon the due exercise of this Option will be free and clear from all
taxes or liens, charges and security interests created by the Company with
respect to the issuance thereof, however, the Company shall not be obligated or
liable for the payment of any taxes, liens or charges of Holder, or any other
party contemplated by Section 7, incurred in connection with the issuance of
this Option or the Common Stock upon the due exercise of this Option. The
Company agrees that its issuance of this Option shall constitute full authority
to its officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Shares of Common Stock upon
the exercise of this Option. The Common Stock issuable upon the due exercise of
this Option, will, upon issuance in accordance with the terms hereof, be duly
authorized, validly issued, fully paid and non-assessable.

            (c) Whenever Options are to be issued or exercised under this
Agreement, under circumstances in which the Administrator believes that any
federal, state or local tax withholding may be imposed, the Company shall have
the right to rcquire the Holder to promptly remit to the Company an amount
sufficient to satisfy the minimum federal, state and local tax withholding
requirements prior to the delivery of any Options or certificate for Shares or
any proceeds.

                                       6
<PAGE>

            (d) A Holder who is obligated to pay the Company an amount required
to be withheld under applicable tax withholding requirements may pay such amount
(i) in cash; (ii) in the discretion of the Administrator, through the delivery
to the Company of previously-owned Shares of Common Stock having an aggregate
Fair Market Value on the date payment is requested by the Administrator equal to
the tax obligation provided that the previously owned shares delivered in
satisfaction of the withholding obligations must have been held by the Holder
for at least six (6) months; (iii) in the discretion of the Administrator,
through an election to have the Company withhold shares of Stock otherwise
issuable to the Holder having a Fair Market Value on such date equal to the
amount of tax required to be withheld, or (iv) in the discretion of the
Administrator, through a combination of the procedures set forth in subsections
(i), (ii) and (iii) of this Section 8(d).

            (e) An election by a Holder to have shares of Stock withheld to
satisfy federal, state and local tax withholding requirements pursuant to
Section 8(d) must be in writing and delivered to the Company prior to the date
when such payment is due.

        9.  Notices.

            (a) All notices, advices and communications under this Option shall
be deemed to have been given, (i) in the case of personal delivery, on the date
of such delivery and (ii) in the case of mailing, on the third business day
following the date of such mailing, addressed as follows:

                If to the Company:

                Aquis Communications Group, Inc.
                l7l9A Route 10, Suite 300
                Parsippany, New Jersey 08054
                Attention:    Cathy Spagnolo

                and to the Holder:

                at the address of the Holder appearing on the books of the
                Company or the Company's transfer agent, if any.

            Either of the Company or the Holder may from time to time change the
address to which notices to it are to be mailed hereunder by notice in
accordance with the provisions of this Section 9.

            10. Amendments.

                                       7
<PAGE>

            (a) Any term of this Option may be amended with the written consent
of the Company and the Holder. Any amendment effected in accordance with this
Section 10 shall be binding upon the Holder, each future Holder and the Company.

            (b) No waivers of or exceptions to, any term, condition or
provision of this Option, in any one or more instances, shall be deemed to be,
or construed as, a further or continuing waiver of any such term, condition or
provision.

         11. Adjustments. The number of Shares of Common Stock purchasable
hereunder and the Exercise Price is subject to adjustment from time to time upon
the occurrence of certain events, as follows:

            (a) If through or as a result of any merger, consolidation, sale of
all or substantially all of the assets of the Company, reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar transaction, the outstanding shares of Stock are
increased or decreased or are exchanged for a different number or kind of shares
or other securities of the Company, or additional shares or new or different
shares or other securities of the Company or other non-cash assets are
distributed with respect to such shares of Stock or other securities, the
Administrator shall make an appropriate or proportionate adjustment in (i) the
number of Stock Options subject to this Option Agreement, and (ii) the exercise
price for each Share subject to any then outstanding Stock Options under this
Agreement, without changing the aggregate exercise price (i.e., the exercise
price multiplied by the number of shares) as to which such Stock Options remain
exercisable. The adjustment by the Administrator shall be final, binding and
conclusive.

            (b) In the event that, by reason of a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization or
liquidation, the Board of Directors shall authorize the issuance or assumption
of a stock Option or stock Options in a transaction to which Section 424(a) of
the Code applies, then, notwithstanding any other provision of the Plan, the
Administrator may grant an Option or Options upon such terms and conditions as
it may deem appropriate for the purpose of assumption of the old Option, or
substitution of a new Option for the old Option, in conformity with the
provisions of Code Section 424(a) and the rules and regulations thereunder, as
they may be amended from time to time.

            (c) No adjustment or substitution provided for in this Section 11
shall require the Company to issue or to sell a fractional share under any
Option Agreement or share award agreement and the total adjustment or
substitution with respect to each stock Option and share award agreement shall
be limited accordingly.

            (d) In the case of (i) the dissolution or liquidation of the
Company, (ii) a merger, reorganization or consolidation in which the Company is
acquired by another person or entity (other than a holding company formed by the
Company), (iii) the sale of all or substantially all of the assets of the
Company to an unrelated person or entity, or (iv) the sale of all of the stock
of the Company to a unrelated person or entity (in each case, a "Fundamental
Transaction"), this Option may be terminated by the Administrator, unless
provision is made in connection with the Fundamental Transaction for the
assumption of this Option, or the substitution of such New Options of the
successor entity, with appropriate adjustment as to the number and kind of
shares and, if appropriate, the per share exercise price as provided in
Subsections (a) and (b) of this Section 11. in the event of such termination and
in the event the Administrator does not provide for the Cash Payment described
in Subsection (e) of this Section, the Holder shall be notified of such proposed
termination and permitted to exercise for a period of at least thirty (30) days
prior to the date of such termination all Options held by such Holder which are
then exercisable.

                                       8
<PAGE>

            (e) In the event that the Company shall be merged or consolidated
with another corporation or entity, other than a corporation or entity which is
an "affiliate" of the Company under the terms of which holders of Stock of the
Company will receive upon consummation thereof a cash payment for each share of
Stock of the Company surrendered pursuant to such Business Combination (the
"Cash Purchase Price"), the Administrator may provide that this Option shall
terminate upon consummation of such transaction and the Holder shall receive, in
exchange therefor, a cash payment equal to the amount (if any) by which (i) the
Cash Purchase Price multiplied by the number of shares of Stock of the Company
subject to this Option held by such Holder exceeds (ii) the aggregate exercise
price of such Options.

            (f) Whenever the Exercise Price or number of shares purchasable
hereunder shall be adjusted pursuant to Section 11 hereof, the Company shall
issue a certificate signed by its Chief Financial Officer setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the Exercise
Price and number of shares purchasable hereunder after giving effect to such
adjustment, and shall cause a copy of such certificate to be mailed (by first
class mail, postage prepaid) to the Holder of this Option.

            12. Severability. Whenever possible, each provision of this Option
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Option is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
the validity, legality or enforceability of any other provision of this Option
in such jurisdiction or affect the validity, legality or enforceability of any
provision in any other jurisdiction, but this Option shall be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein.

            13. Governing Law. The corporate law of the State of Delaware shall
govern all issues and questions concerning the relative rights of the Company
and its stockholders. All other questions concerning the construction, validity,
interpretation and enforceability of this Option and the exhibits and schedules
hereto shall be governed by, and construed in accordance with, the laws of the
State of Delaware, without giving effect to any choice of law or conflict of law
rules or provisions (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the
State of Delaware.

            14. Jurisdiction. The Holder and the Company agree to submit to
personal jurisdiction and to waive any objection as to venue in the federal or
state courts in the City in which the headquarters of the Company is located,
which as of the date hereof is Parsippany, New Jersey. Service of process on the
Company or the Holder in any action arising out of or relating to this Option
shall be effective if mailed to such party at the address listed in Section 9
hereof.

                                       9
<PAGE>

            15. Corporate Power; Authorization; Enforceable Obligations. The
execution, delivery and performance by the Company of this Agreement: (i) are
within the Company's corporate power (ii) have been duly authorized by all
necessary or proper corporate action; (iii) are not in contravention of the
Company's certificate of incorporation or by-laws; (iv) will not violate in any
material respect, any law or regulation, including any and all Federal and state
securities laws, or any order or decree of any court or governmental
instrumentality; and (v) will not, in any material respect, conflict with or
result in the breach or termination of, or constitute a default under any
agreement or other material instrument to which the Company is a party or by
which the Company is bound.

            16. Successors and Assigns. This Option shall inure to the benefit
of and be binding on the respective successors, assigns and legal
representatives of the Holder and the Company.

            17. Entire Agreement; Supercedes Any Prior Arrangements. This
Agreement, together with all schedules hereto, constitutes the entire agreement
and understanding of the parties with respect to the subject matter hereof,
Furthermore, the delivery of this Option Agreement satisfies in full the
Company's obligations to grant options to the Holder under any outstanding
arrangements, letters or agreements regarding employment between the Company and
the Holder, and shall supercede in its entirety the terms of such outstanding
arrangements, letters, agreements or discussions regarding the granting and
terms of Options between the Company and the Holder.

                                       10
<PAGE>

            IN WITNESS WHEREOF, the Company has caused this Option to be
executed by its officers thereunto duly authorized.

Dated:   November 21, 2001

ATTEST:                                     AQUIS COMMUNiCATIONS GROUP, INC.

By: /s/ Catherine M. Spagnolo               By: /s/  D. Brian Plunkett
    ------------------------------          --------------------------
                                            D. Brian Plunkett, Chief
                                             Financial Officer

WITNESS:

By: /s/ Catherine M. Spagnolo               By: /s/  John B. Frieling
    ------------------------------              ---------------------
                                                John B. Frieling

                                       11
<PAGE>

                               NOTICE OF EXERCISE

TO: Aquis Communications Group, Inc.

         (1) The undersigned hereby elects to purchase______ shares of Common
Stock of AQUIS COMMUNICATIONS GROUP, INC. pursuant to the terms of the attached
Option, and tenders herewith payment of the purchase price for such shares in
full.

         (2) In exercising this Option, the undersigned hereby confirms and
acknowledges that the shares of Common Stock to be issued upon conversion
thereof are being acquired solely for the account of the undersigned and not as
a nominee for any other party, and for investment (unless such shares are
subject to resale pursuant to an effective prospectus), and that the undersigned
will not offer, sell or otherwise dispose of any such shares of Common Stock
except under circumstances that will not result in a violation of the Securities
Act of 1933, as amended, or any state securities laws.

         (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned or in such other name as is
specified below:

                                             ----------------------------------
                                             (Name)

                                             ----------------------------------
                                             (Name)

----------------------------                 ----------------------------------
(Date)                                       (Signature)

                                       12
<PAGE>

                                   Schedule A

         1.       Optionee: John B. Frieling

         2.       Grant Date: November 21, 2001

         3.       Termination Date: November 21, 2011

         4.       Number of Shares of Common Stock covered by the Option:
                  300,000

         5.       Exercise Price (Fair Market Value of Common Stock on the Grant
                  Date): $0.03

         6.       The Option shall vest in accordance with the following
                  schedule:

                  (i)     Options to purchase shall vest immediately; 150,000

                  (ii)    Commencing January 1, 2001, options to purchase 25,000
                          Shares shall vest on a monthly basis, at the end of
                          each month, for a period of 6 consecutive months for
                          as long, during that 6-month period, that Optionee
                          remains continuously employed by the Corporation; and
                          once Optionee is no longer employed by the Corporation
                          additional unvested Options shall no longer continue
                          to vest beyond the end of the month preceding the
                          month in which Optionee's employment with the
                          Corporation ceases, and thereafter Optionee forfeits
                          any and all rights to any Options not yet vested; or

                  (iii)   upon whatever earlier dates as are permitted by the
                          Corporation in its sole discretion.

                  The terms of this Schedule A have been agreed to by the
                  following parties:

                                                 AQUIS COMMUMCATIONS GROUP, INC.

                                                 By: /s/  D. Brian Plunkett
                                                 --------------------------
                                                 D. Brian Plunkett, Chief
                                                  Financial Officer

                                                HOLDER

                                                 By: /s/  John B. Frieling
                                                     ---------------------
                                                     John B. Frieling

                                       13

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