Document:

exv10w1

 

Exhibit 10.1

Dated as of 22 December, 2006

JANOS SIVO, ALAN STRONG, WILLIAM HILL, AND

JAMES BAKER

BEING ALL OF THE SELLERS OF CARTESIAN LIMITED,

and

THE MANAGEMENT NETWORK GROUP INC.

SHARE PURCHASE AGREEMENT

in respect of the entire issued share

capital of Cartesian Limited

Bingham McCutchen LLP

41 Lothbury

London

EC2R7HF

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	1     INTERPRETATION 
	 	 	1	 
	 
	 	 	 	 
	2     Agreement to Sell the Shares 
	 	 	12	 
	 
	 	 	 	 
	3     Consideration 
	 	 	12	 
	 
	 	 	 	 
	4     Non-Competition; Non-Solicitation 
	 	 	13	 
	 
	 	 	 	 
	5     Pre-Closing obligations of Sellers 
	 	 	14	 
	 
	 	 	 	 
	6     Closing 
	 	 	15	 
	 
	 	 	 	 
	7     Warranties 
	 	 	16	 
	 
	 	 	 	 
	8     Limitation of Sellers’ Warranties Liability 
	 	 	17	 
	 
	 	 	 	 
	9     Miscellaneous 
	 	 	20	 
	 
	 	 	 	 
	Schedule 1       The Company 
	 	 	34	 
	 
	 	 	 	 
	Schedule 2       The Properties 
	 	 	36	 
	 
	 	 	 	 
	Schedule 3       Intellectual Property 
	 	 	38	 
	 
	 	 	 	 
	Schedule 4       Closing Obligations Pursuant to Clause 6 
	 	 	39	 
	 
	 	 	 	 
	Schedule 5       Warranties given by the Sellers under Clause 7.1 
	 	 	41	 
	 
	 	 	 	 
	Schedule 6       Relevant accounts preparation memorandum 
	 	 	65	 
	 
	 	 	 	 
	Schedule 7       Sellers’ protection during the earn out term 
	 	 	69	 
	 
	 	 	 	 
	Schedule 8       Buyer’s warranties 
	 	 	72	 
	 
	 	 	 	 
	Schedule 9       EBITDA calculation memorandum 
	 	 	74	 

 i

 

 

SHARE PURCHASE AGREEMENT

This Agreement is made on 22 December 2006

between:

	(1)	 	Each of Janos Sivo, Alan Strong, William Hill and James Baker, being all of the shareholders of
Cartesian Limited (the “Sellers”); and
	 
	(2)	 	The Management Network Group Inc. a company incorporated in the USA (the “Buyer”) (together
the “Parties”).

Whereas:

	(A)	 	The Sellers have agreed to sell the number of shares set out against their respective names
in Schedule 1 to this Agreement (the “Shares”) and to assume the obligations imposed on the
Sellers under this Agreement;
	 
	(B)	 	The Buyer has agreed to purchase the Shares and to assume the obligations imposed on the
Buyer under this Agreement;
	 
	(C)	 	The Company is engaged in the business of providing independent technical telecommunications
consultancy and revenue assurance products (the “Business”);
	 
	(D)	 	The Sellers collectively own all of the issued and outstanding share capital of the Company
as at the date of this Agreement; and
	 
	(E)	 	The Buyer desires to purchase from the Sellers, and the Sellers desire to sell to the Buyer,
the Shares for the consideration and on the terms of and subject to the conditions set forth
in this Agreement.

It is agreed as follows:

	1	 	INTERPRETATION
	 
	 	 	In this Agreement, unless the context otherwise requires, the provisions in this Clause I apply.
	 
	1.1	 	Definitions
	 
	 	 	“Act” means the Companies Act 1985, as amended from time to time.
	 
	 	 	“Adjusted Earned Cash Test” has the meaning set forth in Clause 3.2.2 of this Agreement.
	 
	 	 	“Affiliate” means, with respect to any Person, any Person directly or indirectly controlling,
controlled by or under direct or indirect common control with such other Person, through the
ownership of all or part of any Person.
	 
	 	 	“Agreed Form” means, in relation to a document, such document in the terms agreed between the
Sellers and the Buyer and initialed as such by the Buyer’s Solicitors and the Sellers’
Solicitors with such alterations as may be agreed in writing between them from time to time.
	 
	 	 	“Agreement” means this Share Purchase Agreement, dated as of 22 December, 2006, by and among
the Sellers and the Buyer.
	 
	 	 	“Applicable Law” means, with respect to any Person, any domestic or foreign, federal, state
or local statute, law, rule, regulation, order, it, injunction, judgment, decree or other
requirement, of any

 

 

	 	 	Governmental Authority (including any Environmental Law) applicable to such Person or any of
their properties or assets.
	 
	 	 	“Articles of Association” means the articles of association of the Company as at the date of
this Agreement.
	 
	 	 	“Associate” or “Associated With” means, when used to indicate a relationship with any Person,
(a) any other Person of which such Person is an officer or partner or is, directly or
indirectly, the beneficial owner of twenty percent (20%) or more of any class of equity
securities issued by such other Person, (b) any trust or other estate in which such Person
has a substantial beneficial interest or as to which such Person serves as trustee or in a
similar fiduciary capacity, and (c) any relative or spouse of such Person, or any relative of
such spouse who has the same home as such Person or who is a director or officer of such
Person or any Affiliate thereof.
	 
	 	 	“Auditor” has the meaning set forth in Clause 3.4.4 of this Agreement.
	 
	 	 	“Audited Statements” means the balance sheets and related statements of operations and
retained earnings and of cash flows for the Company for the year
ended 31st July, 2006,
audited by the Company’s auditors in accordance with the Act.
	 
	 	 	“Business” has the meaning set forth in the Recitals to this Agreement.
	 
	 	 	“Business Day” means a day other than a Saturday, Sunday or other day on which commercial
banks in New York and London, England are authorised or required by law to close.
	 
	 	 	“Buyer” has the meaning set forth in the preamble to this Agreement.
	 
	 	 	“Buyer’s Group” means the Buyer and any Subsidiary of the Buyer.
	 
	 	 	“Buyer’s Solicitors” means Bingham McCutchen LLP of 41 Lothbury, London EC2R 7HF.
	 
	 	 	“Buyer’s Warranties” means the Warranties set out in Schedule 8.
	 
	 	 	“Closing” means the closing of the transactions contemplated by this Agreement, pursuant to
the provisions of Clause 6.
	 
	 	 	“Closing Date” has the meaning set forth in Clause 6.1 of this Agreement.
	 
	 	 	“Closing Net Working Capital” means the aggregate amount of (i) current assets of the Company
as of the Closing Date, less (ii) the sum of current liabilities of the Company as of the
Closing Date, each as determined in accordance with UK GAAP.
	 
	 	 	“Company” means Cartesian Limited, details of which are set out in Schedule 1.
	 
	 	 	“Company Transaction Expenses” means the legal, accounting, financial advisory and other
professional fees and expenses of the Company incurred in connection with the transactions
contemplated herein that accrue on or prior to the Closing Date.
	 
	 	 	“Competition Law” means the national and directly effective legislation of any jurisdiction
which governs the conduct of companies or individuals in relation to restrictive or other
anti-competitive agreements or practices (including, but not limited to, cartels, pricing,
resale pricing, market sharing, bid rigging, terms of trading, purchase or supply and joint
ventures), dominant or monopoly market positions (whether held individually or collectively)
and the control of acquisitions or mergers.
	 
	 	 	“Confidential Information” has the meaning set forth in 9.5.1 of this Agreement.

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	 	 	“Consultancy Agreement” means an agreement other than a contract of employment with the
Company, pursuant to which an individual provides services to the Company.
	 
	 	 	“Consultant” means a Person (whether an individual or otherwise) providing services to the
Company pursuant to a Consultancy Agreement.
	 
	 	 	“Contracts” means all contracts, agreements, options, leases, sales and accepted purchase
orders, commitments and other instruments of any kind to which the Company is a party on the
Closing Date.
	 
	 	 	“Damages” means all demands, claims, actions or causes of action, proceedings, assessments,
losses, damages, properly incurred costs, properly incurred expenses, liabilities, judgments,
awards, fines, sanctions, penalties, charges and amounts paid in settlement, including
(without limitation), the properly incurred costs, fees and expenses of solicitors,
accountants and other agents of the relevant Person incurred in connection with such demands,
etc.
	 
	 	 	“Debt” means (i) any indebtedness of the Company, whether or not contingent, in respect of
borrowed money or evidenced by bonds, notes, debentures or other similar instruments or
letters of credit (or reimbursement agreements in respect thereof) or banker’s acceptances or
representing capitalised lease obligations, (ii) any deferred and unpaid balance of the
purchase price of any property, (iii) all indebtedness of others secured by an Encumbrance on
any asset of the Company (whether or not such indebtedness is assumed by the Company) and,
(iv) to the extent not otherwise included by Clauses (i) through (iii) above, any guarantee
by the Company of any indebtedness of any other Person.
	 
	 	 	“Disclosure Letter” means the letter dated on the same date as this Agreement from the
Sellers to the Buyer disclosing:
	 
	 	 	(a) information constituting exceptions to the Sellers’ Warranties; and
	 
	 	 	(b) details of other matters referred to in this Agreement;
	 
	 	 	“Earned Cash” means one million British pounds (£1,000,000).
	 
	 	 	“Earn-Out Installment Payment” has the meaning set forth in Clause 3.1.5 of this Agreement.
	 
	 	 	“Earn-Out Measurement Date” has the meaning set forth in Clause 3.1.5 of this Agreement.
	 
	 	 	“Earn-Out Period” has the meaning set forth in Clause 3.1.5 of this Agreement.
	 
	 	 	“Earn-Out Term” means the four years ending 31st August 2010 or if earlier the
date on which all Earn-Out Installment Payments and Earned Cash payments have been paid to
the Sellers in accordance with the provisions of this Agreement.
	 
	 	 	“EBITDA” shall mean, for any specified time period, net earnings of the Company during such
time period before any deduction for interest, taxes, depreciation or amortisation, each as
determined in accordance with UK GAAP as adjusted by the provisions of Schedule 6.
	 
	 	 	“Employees” means those employees, directors and officers of the Company, who are immediately
prior to Closing employed by the Company.
	 
	 	 	“Employment Agreements” means any employment, contracting, severance, pay, continuation pay,
termination pay or indemnification agreements or other similar agreements of any nature
whatsoever (including Consultancy Agreements) between the Company and any officer, Employee
or Consultant or any former officer, employee or Consultant of the Company.
	 
	 	 	“Encumbrance” means with respect to any asset, any claim, charge, mortgage, lien, option,
equity, power of sale, hypothecation, retention of title, right of pre-emption, right of
first refusal or other third party right

3

 

	 	 	or security interest of any kind or an agreement, arrangement or obligation to create any of
the foregoing in respect of such asset;
	 
	 	 	“Environment” means the natural and man-made environment, including (without limitation) all
or any of the following media (alone or in combination): air (including the air within
buildings and the air within other natural or man-made structures whether above or below
ground); water (including water under or within land or in drains or sewers); soil and land
and any ecological systems and living organisms supported by these media, including man or
systems supported by these media.
	 
	 	 	“Environmental Law” means all statutes, common law, bye-laws, regulations and subordinate
legislation, judgments, decisions, notices, orders, (including, without limitation, the laws
of the European Union and the Environmental Protection Act 1990, together with any
regulations made thereunder) to the extent that the same are in force concerning (i) the
pollution or protection of, or compensation of damage or harm to, the Environment; (ii)
occupational or public health and safety; (iii) emissions, discharges or releases into, or
the presence in, the Environment of Hazardous Substances and (iv) the use, treatment,
storage, disposal, transportation or handling of Hazardous Substances.
	 
	 	 	“Equity Securities” has the meaning set forth in Sellers’ Warranty 1.5.1 of Schedule 5 of
this Agreement.
	 
	 	 	“Escrow Account” means the joint trust account in the name of the Sellers’ Solicitors and.
the Buyer’s Solicitors maintained by the Escrow Agent operated in accordance with the terms
of the Escrow Agreement.
	 
	 	 	“Escrow Agent” means Barclays Bank plc.
	 
	 	 	“Escrow Agreement” means the agreement between the parties and the Escrow Agent governing the
operation of and release of funds from the Escrow Account, which funds are held on trust for
the Sellers, pursuant to the terms of the Escrow Agreement.
	 
	 	 	“Financial Statements” has the meaning set forth in Sellers’ Warranty 2.1 of Schedule 5 of
this Agreement.
	 
	 	 	“First Anniversary” means 31st August, 2007.
	 
	 	 	“First Year EBITDA” means the EBITDA of the
Company for the period beginning on 1st September
2006 and ending on the First Anniversary.
	 
	 	 	“First Year Revenue” means gross revenues of the Company for the period beginning on 1st
September 2006 and ending on the First Anniversary, determined in accordance with UK GAAP.
	 
	 	 	“Fourth Anniversary” means 31st August, 2010.
	 
	 	 	“Governmental Authority” means any foreign, domestic, federal, territorial, state or local
governmental authority, quasi-governmental authority, instrumentality, court, government or
self-regulatory organisation, commission or tribunal or any regulatory, administrative or
other agency, or any political or other sub-division, department or branch of any of the
foregoing which has competent jurisdiction over the relevant Persons or its business,
property, assets or operations.
	 
	 	 	“Hazardous Substance” means any natural or artificial substance of any nature whatsoever
(whether in the form of a solid, liquid, gas or vapour alone or in combination with any other
substance) which is capable of causing harm or damage to the Environment or to public health
or welfare or capable of causing a nuisance, including but not limited to controlled,
special, hazardous, toxic or dangerous wastes or pollutants.
	 
	 	 	“Health and Safety Laws” means all Applicable Laws, statutes, regulations, secondary
legislation, bye-laws, common law, directives, treaties and other measures, judgments and
decisions of any court or

4

 

	 	 	tribunal, codes of practice and guidance notes which are legally binding and in force as
at the date of this Agreement in so far as they relate to or apply to the health and safety
of any Person, including the Health and Safety at Work Act 1974, the Control of Asbestos at
Work Regulations 2002 and the Construction (Design and Management) Regulations 1994.
	 
	 	 	“IOTA 1988” means the Income & Corporation Taxes Act 1988.
	 
	 	 	“Intellectual Property” means Marks, trade names, domain names, get-up, Patents, Software,
inventions, registered and unregistered design rights, copyrights, semi-conductor topography
rights, database rights and all other similar rights in any part of the world (including
Know-how) including, where such rights are obtained enhanced by registration, any
registration of such rights and applications and rights to apply for such registrations;
	 
	 	 	“Intellectual Property Rights” means intellectual property rights arising from or in respect
of any Intellectual Property whether protected, created or arising under the laws of England
and Wales or any other jurisdiction.
	 
	 	 	“ITEPA” means the Income Tax (Earnings & Pensions) Act 2003.
	 
	 	 	“Know-how” means confidential industrial and commercial information and techniques in any
form including (without limitation) drawings, formulae, test results, reports, project
reports and testing procedures, instruction and training manuals, tables of operating
conditions, market forecasts, lists and particulars of customers and suppliers;
	 
	 	 	“Knowledge” or “so far as the Sellers are aware” or “Awareness of the Sellers” or “Knowledge
of the Sellers,” “Known to the Sellers” and any other phrases of similar import mean, with
respect to any matter in question relating to the Company or the Shares, if the Sellers have
actual knowledge of such matter or would have such knowledge of such matter after having made
such enquiry of the other Sellers and Dermod Ranaghan as is reasonable in the context of the
matter in question.
	 
	 	 	“Leased Real Property” has the meaning set forth in Sellers’ Warranty 3.2.1 in Schedule 5 of
this Agreement.
	 
	 	 	“Leases” has the meaning set forth in Sellers’ Warranty 3.2.1 in Schedule 5 of this
Agreement.
	 
	 	 	“Liability” means, with respect to any Person, any liability or obligation of such Person of
any kind, character or description, absolute or contingent, accrued or unaccrued, secured or
unsecured, joint or several, due or to become due, executory, determined, determinable or
otherwise, whether or not the same is required to be accrued on the financial statements of
such Person and whether or not the same is disclosed in any Schedule to this Agreement.
	 
	 	 	“Marks” means registered and unregistered trademarks and service marks and logos (including
any Internet domain names), and applications thereof.
	 
	 	 	“Material Adverse Effect” means a material adverse change in, or effect on, the Business,
operations, financial condition, results of operations, prospects or any other aspect of the
Company or the Business (which may include the termination of any significant customer
relationships depending on the net decrease in revenue, termination of employment of senior
employees or any other actions or events which would constitute a material adverse change in
the Business or operations of the Company, taken as a whole).
	 
	 	 	“Net Working Capital Deficiency” means the amount, if any, by which the Closing Net Working
Capital, as finally determined in accordance with Clause 3.4 below, is less than one million,
eight hundred and fifty thousand British pounds (£1,850,000).
	 
	 	 	“Net Working Capital Substantiation Date” means the earlier of six months following the
Closing Date or the date on which current assets of not less than one million, eight hundred
and fifty thousand

5

 

	 	 	British pounds (£1,850,000) reflected in the Closing Net Working Capital, as finally
determined in accordance with Clause 3.4 below, have been actually collected (and not just
earned or accrued) by the Company.
	 
	 	 	“New Articles of Association” means the new articles of association of the Company in the
Agreed Form and substantially in the form set out at Exhibit H.
	 
	 	 	“Optionholders” has the meaning set forth in Clause 3.3.2 of this Agreement. “Option Shares”
has the meaning set forth in Clause 3.3.2 of this Agreement.
	 
	 	 	“Patents” means patents, patent rights and all applications thereof, including any and all
continuation, divisional, continuation-in-part, or reissue patent applications or patents
issuing thereon.
	 
	 	 	“Pensionable Employees” means Employees and past officers and employees of the Company.
	 
	 	 	“Pension Schemes” means the Friends Provident Group Personal Pension Scheme commenced in
November 2005 and the Executive Retirement Plan commenced on 19 March 1998.
	 
	 	 	“Permits” has the meaning set forth in Sellers’ Warranty 7.1 of Schedule 5 of this Agreement.
	 
	 	 	“Permitted Encumbrances” means (a) Encumbrances for Taxes or governmental assessments,
charges or claims the payment of which are not yet due, or for Taxes the validity of which is
being contested in good faith by appropriate proceedings; (b) statutory Encumbrances of
landlords and Encumbrances of carriers, warehousemen, mechanics, materialmen and other
similar Persons and other Encumbrances imposed by Applicable Law incurred in the ordinary
course of business for sums not yet delinquent or being contested in good faith; (c)
Encumbrances relating to deposits made to secure the performance of leases, trade contracts
or other similar agreements listed on the Schedules hereto; and (d) Encumbrances fully and
fairly disclosed in the Disclosure Letter; provided, however, that, with
respect to each of Clauses (a) through (c), to the extent that any such Encumbrance arose
prior to the date of the Audited Statements and relates to, or secures the payment of, a
Liability that was required to be accrued under UK GAAP on the Audited Statements, such
Encumbrance shall not be a Permitted Encumbrance unless adequate reserves were maintained in
respect thereof on the Audited Statements in accordance with UK GAAP.
	 
	 	 	“Person” means an individual, corporation, partnership, limited liability company, joint
venture, association, trust, estate or other entity or organisation, including a Governmental
Authority.
	 
	 	 	“Post-Closing Net Losses” means, the sum of the net losses, if any, (exclusive of net income
for any individual period) of the Company incurred during the twelve month period prior to
the First Anniversary, the Second Anniversary, the Third Anniversary or the Fourth
Anniversary (as applicable) for the purposes of Clause 3.2.2.
	 
	 	 	“Pre-Closing EBITDA” means £642,012
	 
	 	 	“Pre-Closing Revenue” means £5,414,465
	 
	 	 	“Prior Year” means, as of the Second Anniversary, Third Anniversary or Fourth Anniversary (as
applicable), the twelve-month period immediately preceding such date.
	 
	 	 	“Prior Year EBITDA” means, as of the Second Anniversary, Third Anniversary or Fourth
Anniversary (as applicable), the EBITDA of the Company for the Prior Year.
	 
	 	 	“Prior Year Revenue” means, as of the Second Anniversary, Third Anniversary or Fourth
Anniversary (as applicable), the gross revenues of the Company for the Prior Year, as
determined in accordance with UK GAAP.
	 
	 	 	“Proceedings” has the meaning set forth in Sellers’ Warranty 5 of Schedule 5 of this
Agreement.

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	 	 	“Properties” means the Leased Real Property and “Property” means any one of them.
	 
	 	 	“Proposed Closing Balance Sheet” has the meaning set forth in Clause 3.4.1 of this Agreement.
	 
	 	 	“Proposed Net Working Capital” has the meaning set forth in Clause 3.4.1 of this Agreement.
	 
	 	 	“Purchase Price” has the meaning set forth in Clause 3.1 of this Agreement.
	 
	 	 	“Relevant Territory” means the United Kingdom, the United States of America, Canada, Mexico,
the Republic of Ireland, France, Germany, Italy, Spain, Austria, Switzerland, the
Netherlands, Belgium, Portugal, Sweden and Norway.
	 
	 	 	“Restrictive Period” has the meaning set forth in Clause 4.1 of this Agreement.
	 
	 	 	“Scheduled Contracts” has the meaning set forth in Sellers’ Warranty 6.1.1 of Schedule 5 of
this Agreement.
	 
	 	 	“Second Anniversary” means 31st August, 2008.
	 
	 	 	“Seller Employment Agreements” means the employment agreements in the Agreed Form to be
entered into by each Seller with the Company attached as Exhibit G to this Agreement.
	 
	 	 	“Sellers” has the meaning set forth in the preamble to this Agreement.
	 
	 	 	“Sellers’ Solicitors” means Nabarro Nathanson of Lacon House, Theobald’s Road, London WC1X
8RW.
	 
	 	 	“Sellers’ Warranties” or “Warranties” means the warranties given severally by the Sellers
pursuant to Clause 8 and Schedule 5 and “Sellers’ Warranty” and “Warranty” means any one of
them.
	 
	 	 	“Shares” has the meaning set forth in the Recitals to this Agreement.
	 
	 	 	“Software” means any and all (a) computer programs, including any and all software
implementations of algorithms, models and methodologies, whether in source code or object
code, (b) databases and compilations, including any and all data and collections of data,
whether machine readable or otherwise, (c) descriptions, flow-charts and other work products
used to design, plan, organise and develop any of the foregoing, and (d) all documentation,
including user manuals and training manuals, relating to any of the foregoing, in each case
developed or licensed by the Company, or used in or necessary for the conduct of its
business, specifically excluding those items prepared for customers in the operation of the
Company’s business for which the Company has assigned all or exclusive title to the customer
and excluding generally available computer programs produced by others which are used by the
Company “as is” or without modification.
	 
	 	 	“Subsidiary” means, with respect to any Person, (a) any corporation as to which more than 50%
of the outstanding shares having ordinary voting rights or power (and excluding shares having
voting rights only upon the occurrence of a contingency unless and until such contingency
occurs and such rights may be exercised) is owned or controlled, directly or indirectly, by
such Person and/or by one or more of such Person’s Subsidiaries, and (b) any partnership,
limited liability company, joint venture or other similar entity of which such Person has the
right to give directions with respect to the operating and financial policies of that entity,
which that entity’s management is obliged to comply or customarily comply with (or any
Subsidiary thereof). When used without reference to a particular Person, “Subsidiary” means a
subsidiary of the Company.
	 
	 	 	“Taxation” or “Tax” shall have the meaning given in the Tax Indemnity.
	 
	 	 	“Tax Indemnity” means the deed of covenant against Taxation in the Agreed Form entered into
between the Buyer and the Sellers at Closing.

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	 	 	“TCGA” means the Taxation of Chargeable Gains Act 1992.
	 
	 	 	“Third Anniversary” means 31st August, 2009.
	 
	 	 	“Trade Secrets” means Know-how, inventions, discoveries, concepts, ideas, methods,
processes, designs, formulae, technical data, drawings, specifications, data bases and
other proprietary and confidential information, in each case to the extent not Marks or
Patents.
	 
	 	 	“UK GAAP” means generally accepted accounting principles in the United Kingdom, as in
effect from time to time, and as consistently applied.
	 
	 	 	“VAT” means value added tax.
	 
	 	 	“VATA” means the Value Added Tax Act 1994.
	 
	 	 	“Working Capital Payment” has the meaning set forth in Clause 3.1.7 of this Agreement.

	1.2	 	Modification etc. of Statutes

	 	 	References to a statute or statutory provision include:

	 	1.2.1	 	that statute or provision as from time to time modified, re-enacted or
consolidated whether before or after the date of this Agreement;
	 
	 	1.2.2	 	any past statute or statutory provision (as from time to time modified,
re-enacted or consolidated) which that statute or provision has directly or
indirectly replaced; and
	 
	 	1.2.3	 	any subordinated legislation made from time to time under that statute or
statutory provision.

	1.3	 	Singular, plural, gender

	 	 	References to one gender include all genders and references to the singular include the
plural and vice versa.

	1.4	 	References to persons and companies

	 	 	References to:

	 	1.4.1	 	a person include any company, partnership or unincorporated association
(whether or not having separate legal personality); and
	 
	 	1.4.2	 	a company shall include any company, corporation or any body corporate,
whether incorporated.

	1.5	 	References to subsidiaries and holding companies

	 	 	The words “holding company”, and “subsidiary undertaking” shall have the same meaning in
this Agreement as their respective definitions in the Act.

	1.6	 	Connected Persons

	 	 	A person shall be deemed to be connected with another if that person is connected with
such other within the meaning of section 839 of the Income and Corporation Taxes Act 1988.

	1.7	 	Accounts

	 	 	Any reference to “accounts” shall include the directors’ and auditors’ reports, relevant
balance sheets and profit and loss accounts and related notes together with all documents
which are or would be required by

8

 

	 	 	law to be annexed to the accounts of the company concerned to be laid before that company
in general meeting in respect of the accounting reference period in question.

	1.8	 	Schedules etc.

	 	 	References to this Agreement shall include any recitals and Schedules to it and references
to Clauses and Schedules are to Clauses of, and Schedules to, this Agreement. References
to paragraphs and Parts are to paragraphs and Parts of the Schedules.

	1.9	 	Headings

	 	 	Headings shall be ignored in interpreting this Agreement.

	1.10	 	Information

	 	 	References to books, records or other information mean books, records or other information
in any form including paper, electronically stored data, magnetic media, film and
microfilm.

	2	 	AGREEMENT TO SELL THE SHARES
	 
	2.1	 	Sale and Purchase

	 	 	On and subject to the terms of this Agreement, the Sellers agree to sell, and the Buyer
agrees to purchase, the Shares.

	2.2	 	Encumbrances

	 	 	The Shares shall be sold by the Sellers with full title guarantee free from Encumbrances
and together with all rights and advantages attaching to them as at Closing (including,
without limitation, the right to receive all dividends or distributions declared, made or
paid on or after Closing).

	2.3	 	Pre-Emption Rights

	 	 	The Sellers shall procure that on or prior to Closing any and all rights of pre-emption
over the Shares are waived irrevocably by the Persons entitled thereto.

	3	 	CONSIDERATION

	3.1	 	Amount

	 	 	The consideration for the purchase of the Shares under this Agreement shall be paid by
Buyer to the Sellers for the Shares as follows (the “Purchase Price”):

	 	3.1.1	 	at Closing, the Buyer shall pay to each of the Sellers the sum of three
hundred and seventy-five thousand British pounds (£375,000) by wire transfer of
immediately available funds, to an account specified by each Seller at least three (3)
days prior to Closing;
	 
	 	3.1.2	 	at Closing, the Buyer shall pay into the Escrow Account the amount of one
million, two hundred and fifty thousand British pounds (£1,250,000) pursuant to the
terms of the Escrow Agreement;
	 
	 	3.1.3	 	subject to the terms of the Escrow Agreement, the parties shall procure that
the Escrow Agent shall pay to the Sellers the sum of :

	 	(a)	 	seven hundred and fifty thousand British pounds (£750,000)
plus all accrued interest in the Escrow Account on the first anniversary of
the Closing Date; and

9

 

	 	(b)	 	five hundred thousand British pounds (£500,000) plus all
accrued interest in the Escrow Account on the second anniversary of the
Closing Date by wire transfer of immediately available funds, to an account
specified by each Seller at least three (3) days prior to each such payment
date, ratably in proportion to their individual Share ownership immediately
prior to the Closing;

	 	3.1.4	 	subject and pursuant to the provisions of Clause 3.2 and Clause 3.1.8, the
Buyer shall pay the Earned Cash to the Sellers by wire transfer of immediately
available funds, to an account specified by each Seller at least five (5) days prior
to the date of the relevant payment;

	 	3.1.5	 	subject to the provisions of Clause 3.1.6 and Clause 3.1.8 below within
thirty (30) days of the last day of each of the first eight (8) six-month periods
following the 31st August, 2006 (each of such six-month periods, an “Earn-Out Period”,
and the last day of each such period, an “Earn-Out Measurement Date”), the Buyer shall
pay to the Sellers an amount (each such payment, an “Earn-Out Installment Payment”)
equal to (i) the lesser of (a) thirty-five percent (35%) of the Company’s EBITDA for
the entire period beginning on 1st September 2006 and ending on such Earn-Out
Measurement Date, (b) the product obtained by multiplying five hundred thousand
British pounds (£500,000) times the number of Earn-Out Periods that have occurred
since 31st August 2006 and (c) £3 million British pounds (£3,000,000), less (ii) the
amount of all Earn-Out Installment Payments previously paid to the Sellers, to an
account specified by each Seller at least three (3) days prior to each Earn-Out
Measurement Date, ratably in proportion to their individual Share ownership
immediately prior to the Closing Date. In the event that any Earn-Out Installment
Payment is zero or a negative amount, no payment shall be made for such Earn-Out
Period. The Buyer and the Sellers agree that the procedures set out in Schedule 9
shall apply to the calculation of EBITDA required in accordance with this Clause
3.1.5. During the Earn-out Term, the Buyer and the Sellers shall procure that the
provisions of Schedule 7 shall apply, subject to the Sellers complying with their
fiduciary duties as Directors of the Company, and the terms of their respective Seller
Employment Agreements. Notwithstanding the provisions of this Clause 3.1.5, the
Sellers shall continue to manage the Business without undue interference from the
Buyer during the Earn-Out Term;
	 
	 	3.1.6	 	the maximum aggregate amount to be paid to the Sellers pursuant to Clause
3.1.5 shall be three million British pounds (£3,000,000). For the avoidance of doubt,
upon an aggregate of three million British pounds (£3,000,000) being paid to the
Sellers pursuant to Clause 3.1.5, together with all payments of Earned Cash being made
to the Sellers pursuant to Clause 3.1.4, the Earn-Out Term shall be terminated;
	 
	 	3.1.7	 	subject to Clause 3.1.9 below, within fifteen (15) days following the later
of (i) the Net Working Capital Substantiation Date, and (ii) the date that is three
(3) months following the Closing Date, the Buyer shall pay to the Sellers the sum of
five hundred thousand British pounds (£500,000) (the “Working Capital Payment”) by
wire transfer of immediately available funds, to an account specified by each Seller
at least three (3) days prior to such payment date, ratably in proportion to their
individual Share ownership immediately prior to the Closing Date;
	 
	 	3.1.8	 	the Working Capital Payment and thereafter the remainder of the Purchase
Price will be reduced by the amount of the Net Working Capital Deficiency, if any;
	 
	 	3.1.9	 	on the Closing Date, the Buyer will pay to the Sellers £200,000 in respect
of the Seller’s costs, and the Sellers will provide the Buyer with copies of
appropriate invoices in respect of such costs within fourteen (14) days of Closing.
Any Company Transaction
Expenses unpaid as of the Closing will reduce the Working Capital Payment, to the
extent that such unpaid amounts contribute to a reduction in the Closing Net
Working Capital.

	3.2	 	Condition to and Method of Payment of Earned Cash

	 	3.2.1	 	If (i) the First Year Revenue equals or exceeds the Pre-Closing Revenue, and
(ii) the First Year EBITDA equals or exceeds the Pre-Closing EBITDA (such
determination, the “Earned Cash Test”),

10

 

	 	 	 	 then the Earned Cash shall be paid by the Buyer to the Sellers in four (4) equal
annual installments within fifteen (15) days of each of the First Anniversary, Second
Anniversary, Third Anniversary and Fourth Anniversary and the remaining paragraphs of
this Clause 3.2 shall not be applicable. Each installment payment of the Earned Cash
shall constitute payment of sixty-two thousand, five hundred pounds (£62,500) to each
Seller by wire transfer of immediately available funds, to an account specified by
each Seller at least five (5) days prior to the date of the relevant payment.

	 	3.2.2	 	If the Company fails the Earned Cash Test, then no payment of Earned Cash
shall be made on the First Anniversary, and the parties shall apply the Adjusted
Earned Cash Test (as described below), on each of the Second Anniversary, Third
Anniversary and Fourth Anniversary, until the Company meets the Adjusted Earned Cash
Test or the Fourth Anniversary has passed. On the Second Anniversary, Third
Anniversary and/or Fourth Anniversary, as applicable, if (i) the Prior Year Revenue
equals or exceeds the Pre-Closing Revenue, and (ii) the Prior Year EBITDA less
any Post-Closing Net Losses equals or exceeds Pre-Closing EBITDA (the “Adjusted Earned
Cash Test”), then any Earned Cash that would have been paid by the Buyer to the
Sellers prior to such date if the Earned Cash Test had been met shall be payable
within fifteen (15) days of the Second Anniversary, Third Anniversary or Fourth
Anniversary (as appropriate) and the remaining outstanding Earned Cash shall be paid
on the dates that such payments would have been paid if the Earned Cash Test had been
met.
	 
	 	3.2.3	 	In the event that the Company fails the Earned Cash Test and the Adjusted
Earned Cash Test on all of the Second Anniversary, Third Anniversary and Fourth
Anniversary (as applicable) then the Earned Cash shall not be paid to the Sellers, who
shall thereafter have no right to claim any amount in respect of Earned Cash from the
Buyer.

	3.3	 	Company Share Options

	 	3.3.1	 	The Buyer and the Sellers acknowledge that, subject to any necessary
thresholds being satisfied, the Purchase Price and any other consideration payable by
the Buyer to the Sellers in accordance with Clause 3.1 represents the total
consideration payable to the Sellers in respect of the Shares and constitutes the full
payment by the Buyer for all of the current issued share capital of the Company.

	 	3.3.2	 	Notwithstanding the foregoing, the Buyer and the Sellers acknowledge that
the Company has granted options to certain of its employees (the “Optionholders”) to
acquire shares in the Company (the “Option Shares”) and that the total consideration
payable by the Buyer to the Sellers pursuant to Clause 3.1 does not include any
consideration due to the Optionholders in respect of the Option Shares. Any
consideration to be paid for the acquisition of the Option Shares by the Buyer, shall
be the responsibility of the Buyer.

	 	3.3.3	 	The Buyer and the Sellers shall procure that, prior to the Closing Date, the
Company’s memorandum and articles of association will be replaced by the New Articles
of Association and thereafter the Buyer and the Sellers will use their reasonable
endeavours to procure that the Company shall (to the extent permitted under applicable
law) manage the sale, purchase and transfer of the Option Shares from the
Optionholders to the Buyer as required in respect of any transfer of Option Shares to
the Buyer under Article 8 of the New Articles of Association.

	3.4	 	Determination of the Closing Net Working Capital

	 	3.4.1	 	Within thirty (30) days following the Closing Date, the Sellers shall
prepare or cause to be prepared (and the Buyers shall co-operate with such preparation
to the extent reasonably required by Sellers), and shall deliver to the Buyer, (i) a
balance sheet of the
Company as of the Closing Date (the “Proposed Closing Balance Sheet”), and (ii)
based on the Proposed Closing Balance Sheet in accordance with the provisions of
Schedule 6, a calculation of the Closing Net Working Capital, which shall exclude
any amounts in respect of Company Transaction Expenses (the “Proposed Net Working
Capital”). The Sellers shall provide to the Buyer and its representatives access to
the

11

 

	 	 	 	personnel and books and records of the Company to the extent related to the
preparation of such balance sheet and the calculation of the Proposed Net Working
Capital. If the Buyer does not object to the Proposed Net Working Capital, in the
manner provided below, the Buyer shall be deemed to have accepted the Proposed
Closing Balance Sheet and the Proposed Net Working Capital, which shall be deemed
to be the Closing Net Working Capital, and which shall be final, binding and
conclusive for all purposes hereunder.

	 	3.4.2	 	At the end of each calendar month between the Closing Date and the Net
Working Capital Substantiation Date, the Sellers shall prepare or cause to be prepared
(and the Buyer shall co-operate with such preparation to the extent reasonably
required by the Sellers) and shall deliver to the Buyer, a listing of the cash
receipts, cash disbursements and liabilities arising which were not included in the
Proposed Closing Balance Sheet, occurring subsequent to the Closing Date (each a
“Statement of Movements in Net Working Capital”) and shall share such Statements of
Movements in Net Working Capital with the Buyers and consult with them in respect of
any reasonable questions or comments they may raise thereon.

	 	3.4.3	 	Within fifteen (15) days following the Net Working Capital Substantiation
Date, the Sellers shall prepare or cause to be prepared (and the Buyer shall
co-operate with such preparation to the extent reasonably required by the Sellers),
and shall deliver to the Buyer, a final Statement of Movements in Net Working Capital
from the Closing Date and through to the Net Working Capital Substantiation Date (the
“Final Statement of Movements in Net Working Capital”). The Sellers shall provide to
the Buyer and its representatives access to the personnel and books and records of the
Company to the extent related to the preparation of such Final Statement of Movements
in Net Working Capital. If the Buyer does not object to the Final Statement of
Movements in Net Working Capital, in the manner provided at Clause 3.4.4 below, the
Buyer shall be deemed to have accepted the Final Statement of Movements in Net Working
Capital, which shall be final, binding and conclusive for all purposes hereunder.

	 	3.4.4	 	If the Buyer disagrees with the Proposed Net Working Capital or Final
Statement of Movements in Net Working Capital, it shall notify the Sellers of such
disagreement in writing within fifteen (15) Business Days after receipt of the
Proposed Closing Balance Sheet, the calculation of the Proposed Net Working Capital
from the Sellers or Final Statement of Movements in Net Working Capital (as the case
may be), and such notice shall set forth in detail the particulars of such
disagreement. In the event any such notice of disagreement is timely provided by the
Buyer, the Sellers and the Buyer shall use their reasonable endeavours for a period of
ten (10) Business Days to resolve any disagreements with respect to the calculation of
the Proposed Net Working Capital or Final Statement of Movements in Net Working
Capital. If, at the end of such period, the Sellers and the Buyer are unable to
resolve such disagreements, then an independent accounting firm of recognised national
standing, other than the Sellers’ or the Company’s independent auditors, mutually
selected by the Sellers and the Buyer (the “Auditor”), shall resolve any remaining
disagreements, acting as expert and not as arbitrator. If the Sellers and the Buyer
cannot agree on the Auditor, either party may request the President of the Institute
of Chartered Accountants of England and Wales to select such independent accounting
firm of recognised national standing as the Auditor, who shall act as expert and not
as arbitrator. The Auditor shall be asked to resolve as promptly as practicable,
preferably within thirty (30) Business Days of the date on which such dispute is
referred to the Auditor, based solely on written submissions forwarded by the Sellers
and the Buyer to the Auditor within ten (10) days following the Auditor’s selection
(unless and to the extent that the Auditor establishes different procedures), the
outstanding disagreements between the Sellers and the Buyer with respect to the
Proposed Closing Balance Sheet, the Proposed Net Working Capital, or Final Statement
of Movements in Net Working Capital and to determine whether and to what extent (if
any) the Proposed Net Working Capital calculation or Final Statement of Movements
in Net Working Capital requires adjustment. If the Auditor’s calculation of the
Closing Net Working Capital or Final Statement of Movements in Net Working Capital
varies by more than five percent (5%) from the Proposed Net Working Capital or
Final Statement of Movements in Net Working Capital calculated by the Sellers (as
the case may be), then the Sellers shall be responsible for all of the costs and
expenses of the Auditor, and shall pay to the Buyer all of the Buyer’s reasonable
legal,

12

 

	 	 	 	accounting and other fees and expenses of participating in such dispute resolution
procedure. Otherwise the Buyer shall pay the fees and expenses of the Auditor. The
Proposed Net Working Capital or Final Statement of Movements in Net Working
Capital, as adjusted for the Auditor’s determination shall be deemed to be the
Closing Net Working Capital or Final Statement of Movements in Net Working Capital
(as the case may be), and shall be final, binding and conclusive for all purposes
hereunder in the absence of manifest error or fraud.

	3.5	 	Buyer Change of Control

	 	 	If there is any change of control of the Buyer, such that any person or persons acting
together obtain directly or indirectly more than 50% of the voting shares of the Buyer at
any time during the Earn-Out Term, then:

	 	(i)	 	if the Earned Cash (or any part of it) has not been paid to the Sellers at
such time, the Buyer shall pay to the Sellers £250,000 each, less any amounts paid to
the Sellers previously pursuant to clause 3.1.4 and clause 3.2, to an account
specified by each Seller to the Buyer in writing, and such payment shall constitute a
full discharge of the Buyer’s obligations under clause 3.1.4 and clause 3.2; and

	 	(ii)	 	any remaining amounts of consideration that have not at that time been paid
to the Sellers pursuant to clauses 3.1.5, 3.1.7 and 3.1.9 and which it is possible may
still be paid to the Sellers pursuant to such clauses shall be paid by the Buyer
promptly following the date of such change of control to an escrow account established
in the name of the Buyer for that purpose and the Buyer shall procure that the terms
under which the escrow account is managed shall include a term that no payments shall
be made out of such escrow account, except that (a) as amounts become due and payable
to the Sellers in accordance with the terms of clauses 3.1.5, 3.1.7 and 3.1.9 of this
Agreement (as adjusted by clauses 3.6.2 and 3.7 if applicable) they are so paid to the
Sellers or (b) once such sums become incapable of payment to the Sellers, pursuant to
the provisions of Clause 3.1.5, 3.1.7 or 3.1.9 (as applicable) the relevant amount
will be released from the escrow account to the Buyer.

	3.6	 	Company Change of Control

	 	 	If there is any change of control of the Company such that the Buyer intends to transfer
or sell more than 50% of its interest in the Shares to persons outside of the Buyer’s
Group at any time during the Earn-Out Period then any remaining amounts of consideration
not previously paid to the Sellers during the Earn-Out Period in accordance with Clause
3.1 of this Agreement shall be accelerated and become due and payable (including all
amounts held in the Escrow Account, plus accrued interest thereon) and the full amount of
the Working Capital Payment and the Earned Cash (if not already paid).

	3.7	 	Termination of Seller Employment Agreements without cause by the Buyer

	 	 	If the Buyer terminates the employment of any of the Sellers without cause, in accordance
with the provisions of Clause 4(c) of the applicable Seller Employment Agreement prior to
the end of the Earn-Out Period, then any remaining amounts of consideration not previously
paid to the Sellers during the Earn-Out Period in accordance with Clause 3.1. of this
Agreement shall be accelerated and become due and payable (including all amounts held in
the Escrow Account, plus accrued interest thereon) and the full amount of the Working
Capital Payment and the Earned Cash (if not already paid).

	4	 	NON-COMPETITION; NON-SOLICITATION

	4.1	 	Subject to Clause 4.2, each of the Sellers severally agrees that, for a period of four (4)
years following the Closing Date (the “Restrictive Period”), such Seller shall not, and shall
not cause, authorise or permit its Affiliates or Subsidiaries, to:

	 	(a)	 	directly or indirectly, own, manage, operate, control or participate in the
ownership, management, operation or control of, or provide any financing to, any
Person (other than the Buyer, the Company or their Subsidiaries or Affiliates) that
engages in any activity, operation or business that competes

13

 

	 	 	 	with the then current business of the Company in the Relevant Territory, except
that each such Seller may hold less than 3% of the share capital of any such
publicly traded Person, and further provided that the Sellers may be employed by a
customer of the Business that is not also a competitor of the Company following
termination of their Employment Agreement, but solely in the capacity as an
employee and not in any consultancy capacity;

	 	(b)	 	take any action that is designed or intended to have the effect of
discouraging any lessor, licensor, customer, employee, or supplier from having a
business relationship or potential business relationship with the Company or from
maintaining business relationships or entering into a new business relationship with
the Company or that may have a Material Adverse Effect on any existing business
relationship;

	 	(c)	 	interfere with, or attempt to interfere with, the employment of any officers,
employees, representatives or agents of the Buyer, the Buyer’s Subsidiaries or any
Person which the Buyer is a subsidiary of, the Company or any of their Subsidiaries or
Affiliates, holding a senior management, administrative sales or operational function,
or solicit, hire or attempt to induce any of them to leave the employ of the Buyer,
the Buyer’s Subsidiaries or any Person which the Buyer is a subsidiary of, the Company
or any such Subsidiary or Affiliate, other than by way of a bona fide recruitment
advertising campaign directed at the market in general and not specifically targeting
any such employees.

	4.2	 	To the extent that a court of competent jurisdiction orders that the Restrictive Period
defined in Clause 4.1 above is neither enforceable nor binding on the Sellers, the parties
agree that the Restrictive Period should be reduced to a period of three (3) years following
the Closing Date.

	4.3	 	Each of the Sellers acknowledges and agrees that the covenants set forth in this Clause 4 are
necessary to protect the goodwill of the Company that is being purchased by the Buyer. Each of
the Sellers further acknowledges and agrees that the Buyer’s willingness to enter into this
Agreement is conditional and dependent upon such Sellers’ promise to be bound by this Clause
4. The parties hereto acknowledge and agree that any breach of the restrictive covenants
contained in this Clause 4 would cause irreparable injury and that the remedy at law for any
such breach would be inadequate, and the parties agree and consent that, in addition to any
other available remedy, temporary and permanent injunctive relief may be granted in any action
or proceeding which may be brought by any party to enforce such restrictive covenants.

	4.4	 	Each of the Sellers acknowledges and agrees that all of the restrictions, covenants and
agreements in Clause 4 hereof are appropriate, reasonable and valid (including with respect to
geographic scope and duration) and fully necessary for the protection of the legitimate
interests of the Buyer or the Buyer’s Subsidiaries or any Person which the Buyer is a
subsidiary of. If any provision contained in this Clause 4 shall for any reason be held
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Clause 4 but this Clause 4
shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein. It is the intention of the parties that if any of the restrictions or
covenants contained herein is held to cover a geographic area or to be for a length of time
which is not permitted by Applicable Law, or in any way construed to be too broad or to any
extent invalid, such provision shall not be construed to be null, void and of no effect, but
to the extent such provision would be valid or enforceable under Applicable Law, a court of
competent jurisdiction shall construe and interpret or reform this Clause 4 to provide for a
covenant having the maximum enforceable geographic area, time period and other provisions (not
greater than those contained herein) as shall be valid and enforceable under such Applicable
Law.

	5	 	PRE-CLOSING OBLIGATIONS OF SELLERS

	5.1	 	Conduct of the Business

	 	 	Each of the Sellers, jointly and severally, hereby agrees that:

14

 

	 	5.1.1	 	from the date hereof until the Closing Date, the Company shall, and the
Sellers shall or shall cause the Company to, conduct the Business as a going concern
in the ordinary course and use its or their commercially reasonable best efforts,
without paying or increasing the compensation, payments, remuneration or fees payable
to any Person, to preserve intact the Business and the Company’s relationships and
goodwill with third parties and keep available the services of the present officers,
Employees, agents, contractors, Consultants and other personnel of the Business.

	 	5.1.2	 	Without limiting the generality of the foregoing, from the date hereof until
the Closing Date and without the Buyer’s prior written consent (such consent shall not
be unreasonably withheld), the Sellers shall not permit the Company to or to agree to
whether through one action or transaction or a series of connected actions or
transactions:

	 	(a)	 	make any change in its accounting methods or in the manner
of keeping its books and records or any change in its current practices with
respect to sales, receivables, payables or accrued expenses;
	 
	 	(b)	 	declare or pay any dividend or make any distribution in
respect of any of its equity securities or, directly or indirectly, redeem,
purchase or otherwise acquire any of its equity securities or the equity
securities of any of its Affiliates or make any other payments of any kind to
the holders of any of its equity securities in respect thereof or to the
holders of any equity securities of any of its Affiliates in respect thereof,
or enter into any commitment or agreement to do any of the foregoing; or
	 
	 	(c)	 	enter into, or commit to enter into, any transaction with
any director, officer, or shareholder, Affiliate or Associate of the Company
or any Affiliate of any director, officer or shareholder;

	5.2	 	Transactions Affecting the Shares

	 	 	During the period from the date of this Agreement until the Shares are transferred to the
Buyer on the Closing Date, the Sellers shall not (whether voluntarily or involuntarily,
and whether currently or prospectively) sell, transfer or otherwise dispose of any of the
Shares or any interest therein or create (or permit the creation of) any Encumbrance on
any of the Shares. Each Seller hereby waives all rights he or it may have under any
agreements between the Sellers relating to the Company (the “Sellers’ Agreements”) in
connection with the sale of the Shares and the other transactions contemplated hereby, and
agrees that effective as of the Closing, any such Sellers’ Agreements shall automatically
terminate.

	6	 	CLOSING

	6.1	 	Date and Place

	 	 	Closing shall take place at the offices of Bingham McCutchen LLP, 41 Lothbury, London EC2R
7HF on 2nd January 2007 (the “Closing Date”), or, if Closing does not take place on the
scheduled date on the immediately following day (which shall then be deemed to be the
Closing Date for the purposes of this Agreement and the provisions of this clause shall
apply to the occurrence of Closing on such date, including the deferral provisions,
mutatis mutandis, provided that the date of Closing shall not be later than 5 pm UK time
on 5th January 2007.

	6.2	 	Closing Events

	 	 	On Closing, the Sellers and the Buyer shall comply with their respective obligations
specified in Schedule 4.

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	6.3	 	Payments on Closing

	 	 	On Closing, the Buyer shall pay the amounts referred to at Clause 3.1.1 and Clause 3.1.9
to the Sellers and the amount referred to at Clause 3.1.2 to the Escrow Account pursuant
to the terms of the Escrow Agreement.

	6.4	 	Breach of Closing Obligations

	 	 	If the Sellers or the Buyer fail to comply with any material obligation in this Clause 6
or Schedule 4 by 5 pm UK time on 5th January 2007, the Buyer, in the case of
non-compliance by the Sellers, or the Sellers, in the case of non-compliance by the Buyer,
shall be entitled (in addition to and without prejudice to all other rights or remedies
available, including the right to claim damages) by written notice to the other:

	 	6.4.1	 	terminate this Agreement (other than Clauses 1, 9.5, 9.10, 9.12 and 9.16)
without liability on its part; or
	 
	 	6.4.2	 	effect Closing so far as practicable having regard to the defaults which
have occurred.

	6.5	 	Long Stop Date

	 	 	If Closing has not occurred by 5 pm UK time on 5th January 2007, this Agreement shall
terminate in any event (other than Clauses 1, 9.5, 9.10, 9.12 and 9.16).

	7	 	WARRANTIES

	7.1	 	The Sellers’ Warranties

	 	7.1.1	 	Subject to Clause 7.2, the Sellers severally warrant to the Buyer that the
statements set out in Schedule 5 are true and accurate and not misleading as of the
date of this Agreement.
	 
	 	7.1.2	 	The Sellers acknowledge that the Buyer has entered into this Agreement in
reliance upon the Sellers’ Warranties.
	 
	 	7.1.3	 	Each of the Sellers’ Warranties shall be separate and independent and shall
not be limited by reference to any other paragraph of Clause 7 or by anything in this
Agreement or in the Tax Indemnity.

	7.2	 	Sellers’ Warranties Disclosures

	 	 	The Sellers’ Warranties are subject to matters fairly disclosed in this Agreement or the
Disclosure Letter.

	7.3	 	Sellers’ Warranties Waiver of Rights against the Company etc

	 	 	Save in the case of fraud, or willful non-disclosure the Sellers undertake to the Company
and to the Buyer for themselves and as trustee for the directors and officers of the
Company to waive any rights, remedies or claims which they may have in respect of any
misrepresentation, inaccuracy or omission in or from any information or advice supplied or
given by the Company or their respective directors or officers in connection with
assisting the Sellers in the giving of any Warranty or the preparation of the Disclosure
Letter and the Tax Indemnity.

	7.4	 	Effect of Closing

	 	 	The Sellers’ Warranties and all other provisions of this Agreement and the Tax Indemnity,
to the extent that they have not been performed by Closing, shall not be extinguished or
affected by Closing.

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	7.5	 	Buyer’s Warranties

	 	 	The Buyer warrants to the Sellers in the terms of the statements and subject to the
limitations on liability set out in Schedule 8.

	8	 	LIMITATION OF SELLERS’ WARRANTIES LIABILITY

	8.1	 	Time Limitation for Claims

	 	 	The Sellers shall not be liable in respect of any claim for breach of any Sellers’
Warranty (“Warranty Claim”) or any claim under the Tax Indemnity (together “Claim”) unless
a notice of the Claim is given by the Buyer to the Sellers:

	 	8.1.1	 	in the case of any Warranty Claim under paragraph 12 of Schedule 5 (Taxes)
or under the Tax Indemnity, within six (6) years of the end of the Company’s financial
year following Closing; and
	 
	 	8.1.2	 	in the case of any other Claim, within 24 months of the date of Closing,
except that there shall be no time limitation for giving notice of any claim under
paragraphs 1.1 and 1.2 of Schedule 5.

	8.2	 	Minimum Claims

	 	8.2.1	 	The Sellers shall not be liable for breach of any Sellers’ Warranty in
respect of any individual claim (or a series of claims arising from substantially
identical facts or circumstances) where the liability agreed or determined
(disregarding the provisions of this Clause 8.2) in respect of any such claim or
series of claims does not exceed £25,000.
	 
	 	8.2.2	 	Where the liability agreed or determined in respect of any such claim or
series of claims exceeds £25,000, the Sellers shall be liable for the amount of the
claim or series of claims as agreed or determined.
	 
	 	8.2.3	 	Notices of Claims shall be given by the Buyer to the Sellers within the time
limits specified in Clause 8.1, specifying in reasonable detail the legal and factual
basis of the claim and the evidence on which the Buyer relies and, if practicable, an
estimate of the amount of Damages which are, or are to be, the subject of the claim
(including any Damages which are contingent on the occurrence of any future event).

	8.3	 	Maximum Liability

	 	8.3.1	 	The individual aggregate maximum liability of each Seller in respect of all
Claims shall not exceed that part of the consideration which he actually receives in
cash under this Agreement whether before or after the date of any Claim and
irrespective of whether any time limitation referred to in Clause 8.1 has expired,
subject to Applicable Law, except that no such limitation shall apply in respect of a
Claim for breach of paragraphs 1.2 or 1.3 of Schedule 5.
	 
	 	8.3.2	 	The individual maximum liability of each Seller in respect of each Claim shall
not exceed the total liability of all the Sellers in respect of such Claim divided by the number of
Sellers liable in respect of such Claim, except that no such limitation shall
apply in respect of a Claim for breach of paragraphs 1.2 or 1.3 of Schedule 5.

	8.4	 	Provisions

	 	 	The Sellers shall not be liable for breach of any Sellers’ Warranty in respect of any
claim if and to the extent that proper allowance, provisions or reserve is made in the
Audited Statements for the matter giving rise to the claim.

17

 

	8.5	 	Matters Arising Subsequent to this Agreement

	 	 	The Sellers shall not be liable for breach of any Sellers’ Warranty in respect of any
matter to the extent that the same would not have occurred but for:

	 	8.5.1	 	the passing of, or any change in, after Closing, any law, rule, regulation
or administrative practice of any government, governmental department, agency or
regulatory body including (without prejudice to the generality of the foregoing) any
increase in the rates of Taxation or any imposition of Taxation or any withdrawal of
relief from Taxation not actually (or prospectively) in effect at the date of Closing;
or
	 
	 	8.5.2	 	any change in accounting policy, bases or practice of the Buyer or the
Company introduced or having effect after Closing.

	8.6	 	Recovery from Third Parties following Recovery from the Sellers

	 	 	If the Sellers have paid an amount in discharge of any Claim and the Buyer or the Company
is entitled to recover (whether by payment, discount, credit, relief, insurance or
otherwise) from a third party a sum which indemnifies or compensates the Buyer or the
Company (in whole or in part) in respect of the Claim, the Buyer shall procure that the
Company shall, on behalf of itself or the Buyer, as applicable, pay to the Sellers as soon
as practicable after receipt an amount equal to (i) any sum recovered from the third party
less any costs and expenses properly incurred in obtaining such recovery less any Taxation
attributable to the recovery after taking account of any tax relief available in respect
of any matter giving rise to the Claim or if less (ii) the amount previously paid by the
Sellers to the Buyer.

	8.7	 	The Buyer acknowledges that in entering into this Agreement it has relied only on the
Sellers’ Warranties and that (in the absence of fraud) it will not have any right or remedy
arising out of any representation, warranty, agreement or statement not set out in this
Agreement.

	8.8	 	The Sellers shall have no liability in respect of any Claim or to the extent arising from any
matter, act, omission or circumstance:

	 	8.8.1	 	expressly contained in this Agreement or which arises from implementation of
this agreement in accordance with its terms;
	 
	 	8.8.2	 	which would not have occurred but for any act, omission or transaction on or
after Closing by or with the consent of the Buyer.

	8.9	 	The Buyer’s rights and remedies in respect of any Claim shall be limited to damages for
breach of contract or, in the case of a claim under the Tax Indemnity, recovery on the basis
provided in the Tax Indemnity. The Buyer shall not (in the absence of fraud) be entitled to
rescind this agreement or to recover damages in tort or for misrepresentation.

	8.10	 	Nothing in this Agreement shall operate to reduce the Buyer’s common law duty to mitigate any
loss giving rise to any Claim (other than a Claim under the Tax Indemnity) and the Buyer shall
be under a duty so to mitigate.

	8.11	 	Where the same facts or circumstances could give rise to more than one Claim, the Buyer shall
not be entitled to recover more than once for the same loss, so that, in calculating the
amount payable for breach of any of the Sellers’ Warranties or under the Tax Indemnity,
account shall be taken of any amount paid under the Sellers’ Warranties and/or the Tax
Indemnity in respect of the same facts or circumstances.

	8.12	 	A Claim (other than a Claim under the Tax Indemnity) in respect of which notice is given in
accordance with Clause 8.2.3 shall, if it has not previously been satisfied, settled or
withdrawn, be deemed to have been withdrawn and be barred and unenforceable unless legal
proceedings have been issued and served on

18

 

	 	 	the Sellers in respect of such Claim within 6 months after the date of such notice or,
where the Claim is based on a contingent liability, within 6 months after such liability
ceases to be contingent.

	8.13	 	The Sellers shall have no liability in respect of any Claim which is based upon a liability
which is contingent only unless and until such contingent liability becomes an actual
liability and is due and payable.

	8.14	 	The Sellers shall have no liability in respect of any Claim to the extent that there is an
understatement of assets or profits in the Audited Statements.

	8.15	 	Any amount recovered by the Buyer from the Sellers pursuant to a Claim shall be treated as a
reduction in the Purchase Price received by the Sellers for the Shares.

8.16

	 	8.16.1	 	If (i) the Company or the Buyer or any member of the Buyer’s Group, or (ii) any of
the Sellers, becomes aware of a matter which could reasonably be expected to give rise
to a Warranty Claim, the Buyer shall give notice in writing of that fact as soon as
reasonably practicable to the Sellers, or, if applicable, the Sellers shall give
notice in writing of that fact as soon as reasonably practicable to the Buyer.
	 
	 	8.16.2	 	If the Company or the Buyer or any member of the Buyer’s Group receives notice of a
claim by a third party (“Third Party Claim”) against the Company or the Buyer or any
member of the Buyer’s Group which might constitute or give rise to a liability
pursuant to this agreement, the Sellers and the Buyer shall consult with each other
regarding the conduct of the Third Party Claim and the Sellers shall within 30 days of
receipt of notice of the Third Party Claim elect either to conduct the Third Party
Claim itself or to leave conduct to the Buyer and the relevant member of the Buyer’s
Group. Whether or not the Sellers elect to conduct the Third Party Claim themselves,
subject to Clause 8.16.3 below, the Buyer shall and shall procure that the relevant
member of the Buyer’s Group shall take such lawful and reasonable action as the
Sellers shall reasonably require to avoid, dispute, resist, appeal, compromise,
settle, contest or raise a counter-claim in relation to the Third Party Claim.
	 
	 	8.16.3	 	The Sellers shall indemnify the Buyer or any relevant member of the Buyer’s Group
against and in respect of all properly incurred costs, charges, expenses, liabilities
and damages for which the Buyer or the relevant member of the Buyer’s Group becomes
liable in respect of any action which is required to be taken by the Buyer or any
member of the Buyer’s Group under Clause 8.16.2.
	 
	 	8.16.4	 	A party having conduct of a Third Party Claim shall keep the other fully informed of
the progress and the defence of any Third Party Claim and shall consult with and have
due regard for the other’s reasonable representation.
	 
	 	8.16.5	 	Where the Buyer has made a Warranty Claim, the Buyer shall use all reasonable
endeavours (subject to the Sellers indemnifying the Buyer for the costs and expenses
incurred by it in so doing) to recover any amounts due from any third party (including
an insurer).

	8.17	 	No right of set-off

	 	 	The Buyer acknowledges that no right of set-off, deduction or withholding shall apply to
any sums payable under this Agreement and that any payments made to the Sellers in
accordance with the terms of this Agreement shall be made without right of set-off, deduction or
withholding against any Claim.

	8.18	 	Fraud

	8.19	 	None of the limitations contained in this Clause 8 shall apply as regards any Seller to any
Claim which arises or is increased, or to the extent to which it arises or is increased, as
the consequence of, or which is delayed as a result of, fraud of that particular Seller.

19

 

	9	 	MISCELLANEOUS

	9.1	 	Further Assurances

	 	 	The Buyer, the Company and the Sellers agree to execute and deliver such other documents,
certificates, agreements and other writings and to take such other actions as may be
reasonably necessary or desirable in order to consummate or implement expeditiously the
transactions contemplated by this Agreement.

	9.2	 	Public Announcements

	 	 	Prior to the Closing Date, the Parties hereto agree to consult with each other before
issuing any press release or making any public statement with respect to this Agreement or
the transactions contemplated herein and, except as may be required by Applicable Law,
will not issue any such public statement, including, without limitation, any notice to any
employees of the Company, without the prior written consent of the other Parties hereto.

	9.3	 	Administration of Accounts

	 	9.3.1	 	All payments and reimbursements received by the Sellers after the Closing
Date from any third party in the name of or to the Company in connection with or
arising out of any business of the Company, including without limitation the Business
shall be held by the Sellers in trust for the benefit of the Company and, immediately
upon receipt by the Sellers of any such payment or reimbursement such Person shall
pay, or cause to be paid, over to the Company the amount of such payment or
reimbursement without right of set off.
	 
	 	9.3.2	 	After the Closing Date, the Company will continue to collect accounts
receivable in the ordinary course of business.

	9.4	 	Tax Matters

	 	9.4.1	 	The terms of the Tax Indemnity are incorporated into this Agreement.
	 
	 	9.4.2	 	The Company shall, and Buyer shall cause the Company to, preserve and keep
all tax records relating to Taxes of the Company for periods ending on or prior to the
Closing Date and any period that includes but does not end on the Closing Date for so
long as the contents thereof may become material to the administration of any
applicable Tax law, but in any event until the later of (i) the expiration of any
applicable statute of limitations and (ii) seven years after the Closing Date;
provided, however, if the Company determines that any such records are no
longer material in the administration of any matter under applicable Tax law, the
Company may dispose of such records upon 90 calendar days prior notice to the Sellers.
Following the Closing, for so long as the such Tax records are retained, as provided
in the preceding sentence, the Buyer shall permit the Sellers and their
representatives and agents to have reasonable access during normal business hours to
such Tax records to the extent that such access may be reasonably required (i) in
connection with the preparation of the Sellers’ Tax and accounting records; (ii) in
connection with the preparation of any Tax returns or with Tax audits; or (iii) in
connection with any Tax-related litigation, investigation or proceeding.

	9.5	 	Confidentiality

	 	9.5.1	 	“Confidential Information" means information, including, without
limitation, certain confidential information of the business and assets of a Party to
this Agreement, including technical, manufacturing, marketing, financial and
commercial information provided to the other Party to facilitate the consideration,
evaluation, approval and consummation of the transactions contemplated by this
Agreement (“Permitted Purposes”). Confidential Information shall also include all
notes, analyses, compilations, studies or other documents prepared by the Buyer, the
Company or the Sellers, as the case may be, and any of their respective Affiliates or
representatives,

20

 

	 	 	 	including solicitors and financial advisors or agents
(“Representatives") thereof, insofar as they contain or reveal the
other’s Confidential Information. In addition, the following shall be deemed
Confidential Information: (i) the nature or content of any provisions of this
Agreement; (ii) the fact that Confidential Information has been made available by
any Party to the other or that any Party has inspected any portion of the other’s
Confidential Information; (iii) the fact that any discussions or negotiations have
taken place pertaining to the transactions contemplated by this Agreement; and (iv)
any of the provisions or facts with respect to the transactions contemplated by
this Agreement, including the status thereof.

	 	9.5.2	 	Confidential Information that is furnished by a Party, its Affiliates or its
Representatives (“Discloser”) to another Party, its Affiliates or its Representatives
(“Recipient"), whether furnished orally, in writing or in graphic, encoded
or other tangible form before or after the date of this Agreement shall be treated
confidentially and with at least the same degree of care that the Recipient uses to
treat its own information of a similar nature.
	 
	 	9.5.3	 	Confidential Information does not include, or shall cease to include, any
information if, or when, and to the extent that, it:

	 	(a)	 	is or becomes generally available to the public, other than
as a result of a disclosure by the Recipient in breach of this Clause 9.5;
	 
	 	(b)	 	was available to the Recipient on a non-confidential basis
prior to its disclosure by the Discloser;
	 
	 	(c)	 	becomes available to the Recipient on a non-confidential
basis from a source other than the Discloser, provided such source is not
bound by a confidentiality agreement with the Discloser, or is otherwise not
prohibited from transmitting the information to the Recipient, by a
contractual, legal or fiduciary obligation of which the Recipient had prior
knowledge or should reasonably have been aware; or
	 
	 	(d)	 	is independently developed by the Recipient and is so
documented or otherwise proved.

	 	9.5.4	 	A Recipient shall be permitted to disclose the Discloser’s Confidential
Information only to those Persons who have a bona fide need to know such Confidential
Information in connection with the Permitted Purposes, provided such Persons shall be
informed of the confidential nature of the Confidential Information, and are obligated
to maintain the confidentiality thereof and to comply with all other obligations
hereunder. Except with the specific prior consent of the Discloser or as expressly
otherwise permitted by the provisions hereof, the Discloser’s Confidential Information
will not be disclosed by the Recipient and the Recipient will not use the deemed duly
given (i) if personally delivered, when so delivered, (ii) if mailed, five (5)
Business Days after having been sent by registered or certified mail (or airmail to an
overseas recipient), return receipt requested, postage prepaid and addressed to the
intended recipient as set forth below, (iii) if given by facsimile, once such notice
or other communication is transmitted to the facsimile number specified below and the
appropriate answer back or telephonic confirmation is received, provided that such
notice or other communication is promptly thereafter mailed in accordance with the
provisions of paragraph (ii) above, or (iv) if given by email communication, once such
notice or communication has been sent and a delivery receipt in respect of such
communication has been received by the sending party or the email is actually received
by the recipient in any event, provided that such notice or communication is promptly
thereafter mailed in accordance with the provisions of
paragraph (ii) above, or (v) if sent through an overnight delivery service in
circumstances in which such service guarantees next day delivery, the day following
being so sent:

21

 

If to the Sellers:

Mr. Janos Sivo

2 Meridian House

3 Upper St. Martin’s Lane
London

WC2H 9NY

Janos.sivo@cartesian.co.uk

Mr. Alan Strong

24 Flanchford Road

London

W12 9ND

Alan.strong@caftesim.co.uk

Mr. William Hill

School House

School Lane

Headbourne Worthy

Winchester

S023 7JX

William.hill@cartesian.co.uk

Mr. James Baker

101 Eastbourne Mews

London

W2 6LQ

Jim.baker@cartesian.co.uk

with a copy to, in each case:

Nabarro Nathanson Lacon House

Theobald’s Road

London WC1X 8RW

Attn: Glyn Taylor

Fax No.: 44-(0)207-868-3357

If to the Buyer or the Company after the Closing Date:

The Management Network Group Inc.

7300 College Boulevard, Suit 302

Overland Park, Kansas 66210

Attn: Don Klumb/Micky Woo

Donald.Klumb@tmng.coicky.Woo@tmg.com

Fax No.: (913) 451-1845

with a copy to:

Bingham McCutchen LLP 41 Lothbury

London EC2R 7HF

Attn: Vance Chapman

Fax No.: 44-(0)207-661-5400

22

 

	 	 	Any Party may give any notice, request, demand, claim or other communication hereunder
using any other means (including ordinary mail), but no such notice, request, demand,
claim or other communication shall be deemed to have been duly given unless and until it
actually is received by the individual for whom it is intended. Any Party may change the
address to which notices, requests, demands, claims and other communications hereunder are
to be delivered by giving the other Parties notice in the manner herein set forth.

	9.7	 	Amendments; No Waivers

	 	9.7.1	 	Any provision of this Agreement may be amended or waived if, and only if,
such amendment or waiver is in writing and signed, in the case of an amendment, by all
Parties hereto, or in the case of a waiver, by the Party against whom the waiver is to
be effective.
	 
	 	9.7.2	 	No waiver by a Party of any default, misrepresentation or breach of warranty
or covenant hereunder, whether intentional or not, shall be deemed to extend to any
prior or subsequent default, misrepresentation or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or subsequent
occurrence. No failure or delay by a Party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies herein provided shall be cumulative
and not exclusive of any rights or remedies provided by law.

	9.8	 	Expenses

	 	9.8.1	 	Subject to the provisions of Clause 9.8.2, all costs and expenses incurred
in connection with this Agreement and in closing and carrying out the transactions
contemplated herein shall be paid by the Party incurring such cost or expense. Without
limiting the generality of the immediately preceding sentence, the fees, costs and
expenses of the accountants, solicitors and other financial advisors, brokers, finders
and other advisors to the Company or the Sellers in connection with the preparation or
negotiation of, or consummation of the transactions contemplated by, this Agreement
shall be borne by the Sellers and none of such fees, costs or expenses shall be paid
by the Company. This Clause shall survive the termination of this Agreement.
	 
	 	9.8.2	 	The Sellers shall be responsible for paying all fees, commissions and
expenses of any investment banker, broker, finder or other intermediary or advisor
engaged by them upon consummation of the transactions contemplated by this Agreement
or otherwise.

	9.9	 	Successors and Assigns

	 	 	This Agreement shall be binding upon and inure to the benefit of the Parties hereto and
their respective successors and permitted assigns. No Party hereto may assign either this
Agreement or any of its rights, interests or obligations hereunder without the prior
written approval of each other Party; provided however, that the Buyer may, without the
consent of the Sellers, assign its rights under this Agreement (i) for security,
including, without limitation, to the Buyer’s financing sources and lenders, (ii) to any
Subsidiary or Affiliate of the Buyer, or (iii) to any successor in title of the Buyer to
the Shares.

	9.10	 	Governing Law; Exclusive Jurisdiction

	 	 	This Agreement shall be governed by and construed in accordance with the laws of England
and Wales. Any action or proceeding seeking to enforce any provision of, or based on any
right arising out of, this Agreement shall be brought against any of the Parties in the courts
of England, and each of the parties consents to the jurisdiction of such courts (and of
the appropriate appellate courts) in any such action or proceeding and waives any
objection to venue laid therein.

23

 

	9.11	 	Counterparts; Effectiveness

	 	 	This Agreement may be signed in any number of counterparts and the signatures delivered by
telecopy, each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument and delivered in person. This Agreement
shall become effective when each party hereto shall have received a counterpart hereof
signed by the other parties hereto.

	9.12	 	Entire Agreement

	 	 	This Agreement (including the Schedules and Exhibits referred to herein which are hereby
incorporated by reference and the other agreements executed simultaneously herewith)
constitutes the entire agreement between the Parties with respect to the subject matter
hereof and supersedes all prior agreements, understandings and negotiations, both written
and oral, between the Parties with respect to the subject matter of this Agreement.

	9.13	 	Captions

	 	 	The captions herein are included for convenience of reference only and shall be ignored in
the construction or interpretation hereof. All references to a Clause or Part include all
subparts thereof.

	9.14	 	Severability

	 	 	If any provision of this Agreement, or the application thereof to any Person, place or
circumstance, shall be held by a court of competent jurisdiction to be invalid,
unenforceable or void, the remainder of this Agreement and such provisions as applied to
other Persons, places and circumstances shall remain in full force and effect only if,
after excluding the portion deemed to be unenforceable, the remaining terms shall provide
for the consummation of the transactions contemplated hereby in substantially the same
manner as originally set forth at the later of the date this Agreement was executed or
last amended.

	9.15	 	Cumulative Remedies

	 	 	Other than as provided for in this Agreement, the rights, remedies, powers and privileges
are cumulative and not exclusive of any rights, remedies, powers and privileges provided
by law.

	9.16	 	Third Party Beneficiaries

	 	 	Other than (i) the Company, the directors and officers of the Company with respect to the
provisions of Clause 7.3, the benefit of which is hereby conferred upon such persons,
nothing in this Agreement shall create or be deemed to create any third party beneficiary
rights in any Person not a party pursuant to the Contracts (Rights of Third Parties) Act
1999 or otherwise.

	9.17	 	Specific Performance

	 	 	The Parties hereby acknowledge and agree that the failure of any Party to perform its
agreements and covenants under this Agreement, including its failure to take all actions
as are necessary on its part to the consummation of the transactions contemplated herein,
will cause irreparable injury to the other Parties, for which damages, even if available,
will not be an adequate remedy. Accordingly, each Party hereby consents to the issuance of
injunctive relief by any court of competent jurisdiction to compel performance of that
Party’s obligations and to the granting by any court of the remedy of specific performance
of its obligations under this Agreement.

[Signatures appear on the following pages]

24

 

IN WITNESS WHEREOF, the parties hereto have caused this Share Purchase Agreement to be duly
executed by their respective authorised officers as of the day and year first above written.

“SELLERS”

	 	 	 
	 

Janos Sivo

	 	 
	 
	 	 
	 
	 	 
	 

Alan Strong

	 	 
	 
	 	 
	 
	 	 
	 

William Hill

	 	 
	 
	 	 
	 
	 	 
	 

James Baker

	 	 

“BUYER”

THE MANAGEMENT NETWORK GROUP, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name: Richard P. Nespola	 	 
	Title: Chairman and Executive Officer	 	 

25exv10w10

 

EXHIBIT 10.10

THIRD AMENDMENT TO LEASE

THIS THIRD AMENDMENT TO LEASE (the “Amendment”) is made this 30thday of
August, 2005, by and between NewTower Trust Company Multi-Employer Property Trust, a trust organized under 12 C.F.R.
Section 9.18 (“Landlord”), and The Management Network Group Inc., a Kansas corporation
(“Tenant”).

RECITALS

     A. Tenant is leasing approximately 4,305 rentable square feet of space in the office
building commonly known as Lighton Plaza I, 7300 College Boulevard, Suite 302, Overland Park, Kansas (the
“Building”), pursuant to an Office Lease Agreement dated April 23, 1998, as amended by and
Certificate of Acceptance dated September 10, 1998, as amended by First Amendment to Lease dated
May 11, 1999, as
amended by Second Amendment to Lease dated May 30, 2000 between Landlord and Tenant (collectively
the “Lease”).

     B. Lighton Plaza L.L.C., subsequently conveyed its interest in the building to ASP Lighton,
L.L.C., which subsequently conveyed its interest in the building to NewTower Trust Company
Multi-Employer Property Trust.

     C. Landlord and Tenant desire to amend the Lease to expand Tenant’s leased premises in the
Building and extend the term of the Lease on the terms and conditions contained herein.

     NOW, THEREFORE, in consideration of the premises, the Lease, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant do
hereby modify and amend the Lease as follows:

     1. Term. Subject to the terms and conditions contained herein, the term shall be
extended to August 31, 2010.

     2. Demise. Subject to the terms and conditions contained herein Landlord agrees to
demise and lease to Tenant, and Tenant agrees to lease from Landlord, the current lease space of approximately
4,305

rentable square feet (“Existing Space”), and, as of the Third Additional Space Commencement
Date, approximately 400 rentable square feet of additional space as shown on Exhibit A
(“Third Additional Space”). All references to the “Leased Premises” after the
Third Additional Space Commencement Date shall be deemed to refer to the Existing Space plus the
Third Additional Space for a total of approximately 4,705 rentable square feet.

     3. Tenant Improvements. Improvements to the Third Additional Space shall be
constructed and paid for in the same manner as described in Article Four and Schedule 6 of the Lease, with the
following modifications:

	 	(a)	 	The phrase “Lease Commencement Date” shall be modified to read “Third Additional
Space Commencement Date.” The Third Additional Space
Commencement Date is scheduled for September 1, 2005.
	 
	 	(b)	 	Landlord’s monetary obligation for construction of Leasehold improvements to the
Third Additional Space shall be $51,755.00 (“Allowance”).
	 
	 	(c)	 	In the event Tenant does not utilize all or any portion of the Allowance, the
Allowance shall be forfeited.
	 
	 	(d)	 	The Tenant acknowledges the Landlord’s agent, Trammell Crow Company, shall be
providing construction management services and a five percent (5%) fee based on the
“hard costs” shall be charged to Tenant.
	 
	 	(e)	 	Tenant plans to be submitted to Landlord for approval and attached to this lease
amendment as Exhibit B.

 

 

All defined terms-in Schedule 6 shall be modified to refer only to the Third Additional Space
and the lease thereof.

     4. Base Rent. Paragraph 1.1f of the Lease is hereby amended so that the Base Rent
for the Leased Premises shall mean:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date	 	Monthly Rent	 	Yearly Rent	 	Approximate Rent
	 	 	 	 	 	 	 	 	 	 	per Square Foot
	7/1/05-8/31/05
	 	$	0.00 	 	 	$	0.00	 	 	$	0.00	 
	9/1/05-8/31/06
	 	$8,233.75 per month
	 	$	98,805.00	 	 	$	21.00	 
	9/1/06-8/31/07
	 	$8,429.79 per month
	 	$	101,157.50	 	 	$	21.50	 
	9/1/07-8/31/08
	 	$8,625.83 per month
	 	$	103,510.00	 	 	$	22.00	 
	9/1/08-8/31/09
	 	$8,821.88 per month
	 	$	105,862.50	 	 	$	22.50	 
	9/1/09-8/31/10
	 	$9,017.92 per month
	 	$	108,215.00	 	 	$	23.00	 

To the extent the Third Additional Space Commencement Date has not occurred on or before September
1, 2005, then the Base Rent shall be reduced by $23.33 per day (equal to 400 sf x the Approximate Rent
per Square Foot/360) for each day that the Third Additional Space Commencement Date is delayed after
September 1, 2005.

     5. Excess Tenant Improvements: In the event the Tenant Improvements exceed the
Tenant Improvement Allowance provided by Landlord, Tenant shall have the right to amortize up to an
additional $30,000.00 over the term of the Lease at eight percent (8%) interest rate, Tenant shall
be required to make the request at the time the plans are completed and the final costs are
submitted to Tenant for approval. In the event Tenant chooses to amortize excess tenant
improvements, Tenant and Landlord shall enter into a Fourth Amendment to Lease amending the Base
Rent within ten days of the Third Additional Space Commencement Date.

     6. Tenant’s Square Footage: Paragraph 1.1d of the Lease is hereby amended as of the
Third Additional Space Commencement Date to increase Tenant’s Square Footage to 4,705 Rentable
Square Feet.

     7. Additional Rent. Paragraph 1.1g of the Lease is hereby amended as of the Third
Additional Space Commencement Date to reflect; (i) the Third Additional Space which increases
Tenant’s Pro Rata Share to 4.00% (4,705 rentable square feet ÷ 117,654 rentable square
feet); (ii) the Operating Cost Stop shall be revised to a 2005 Base Year. Beginning on September
1, 2005 and ending on August 31, 2006, Tenant shall not be responsible for and shall not pay Excess
Operating Costs for such period. For the 2005 Base Year, in the event the Building is not fully
leased during the calendar year, Landlord shall make appropriate adjustments to the Operating
Costs, using reasonable projections, to adjust such costs to an amount that would normally be
expected to be incurred if the Building were 95% leased, and such adjusted costs shall be used for
purposes of paragraph 3.3 of the Lease to establish the Operating Cost Stop for the 2005 Base Year.

     8. Parking. Paragraph 1.1j of the Lease is hereby amended as of the Third Additional
Space Commencement Date to increase the Authorized Number of Parking Spaces from 17 to 19.

     9. Option Period: Tenant shall have one option to renew this Lease for five (5) years
(the “Option Period”). If Tenant desires to exercise its option for renew, Tenant shall
give Landlord written notice (“Renewal Notice”) thereof at least twelve (12) months prior
to the scheduled expiration date. During the thirty (30) day period following Landlord’s receipt
of the Renewal Notice, Landlord and Tenant shall use reasonable efforts to negotiate a mutually
agreeable Base Rent (“Market Base Rent”) for the Option Period. Within fifteen (15) days
of agreement by the parties on the Market Base Rent and other terms of the renewal, Landlord and
Tenant shall execute an amendment to this Lease extending this Lease on such terms.

 

 

     10. Right of First Offer: If Landlord shall desire to lease any space on the Third
floor (3rd) floor of the Building which is contiguous to the Leased Premises (the “ROFO
Space”) to a third party other than the existing tenant in any such space, or any other party
having any pre-existing rights to the ROFO Space, Landlord shall first give Tenant notice
(“Landlord’s ROFO Notice”) of the terms and conditions upon which Landlord is willing to
market the ROFO Space. Tenant shall have the right, exercisable by notice to Landlord within thirty
(30) days after the date of Landlord’s ROFO Notice to lease the ROFO Space upon the terms and
conditions contained therein. Within fifteen (15) business days thereafter, Landlord shall prepare
and deliver to Tenant an amendment to this Lease reflecting the terms set forth in the Landlord’s
ROFO Notice, which Tenant shall in turn execute and deliver back to Landlord within fifteen (15)
days after receipt of such amendment from Landlord. Such amendment shall provide for (a) the
addition of the ROFO Space to the Leased Premises, (b) an increase in the Base Rent by an amount
equal to that specified in Landlord’s Notice, (c) an increase in Tenant’s Pro Rata Share of
Operating Costs to reflect the inclusion of the ROFO Space in the Leased Premises, and (d) the
terms and conditions and amount of any tenant improvement allowance, if any. In all other respects,
the terms and conditions contained in this Lease shall remain unmodified. Time is of the essence in
the exercise of Tenant’s rights pursuant to this section. Should Tenant fail to exercise such
right, fail to execute and deliver the amendment, or fail to perform any of its required
obligations under this section within the time periods set forth above, then Tenant’s rights under
this section shall terminate and be null and void, and Landlord shall have the absolute right to
lease the ROFO Space to any other person or entity upon substantially the same terms and conditions
set forth in the Landlord’s ROFO Notice. The foregoing option and rights may not be assigned to any
party not a Tenant Affiliate or Tenant Agent, and shall be available to and exercisable by the
Tenant only when the original Tenant or any Tenant Affiliate or Tenant Agent is in actual
possession and physical occupancy of the entire Leased Premises. Tenant’s rights pursuant to this
section shall be subject to any existing (as of the date hereof) rights to expand of other tenants
in the Building or Project, the right of the current tenant in the ROFO Space to remain in that
space, and there having been no Event of Default under the Lease during the Term of the Lease which
is continuing at the time of the Landlord’s ROFO Notice. All rights of first offer contained in
this section shall expire upon the date which is 24 months prior to the Lease Expiration Date.

     11. Paragraph 5.1 of the Lease is amended by the addition of the following as subparagraph (d)
thereof:

     “d. Security Services. Landlord shall provide not less than the following security services (collectively “Security Services”)
to the Building, Tenant and Leased
Premises: (i) access controlled by electronic security cards for after-hours entry to the
Building; (ii) access to Tenant’s floor after regular Building hours shall be restricted by
programming of Building elevators to allow access only upon application of an electronic
security device or code; and (iii) security guard monitoring after regular Building hours
of the adjacent parking lot and checking of interior and exterior doors of the Building and
the Leased Premises on a regular basis. Landlord has provided such Security Services
prior to the Third Additional Space Commencement Date and such Security Services
shall be included in the term “Project Services”.

     12. Landlord has the responsibility to maintain the Building, parking lots and all other
public spaces associated with the Leased Premises in compliance with the Americans With Disabilities Act
(“ADA”) and any and all other statutes, laws, ordinances or regulations relating thereto.

     13. Landlord Notice Address: The notice address for the Landlord is; c/o Kennedy
Associates Real Estate Counsel, Inc., Attention: Executive Vice President – Asset Management, 1215
Fourth Avenue, Suite 2400, Seattle, WA 98161 Facsimile: (206) 682-4769 and to NewTower Trust
Company Multi-Employer Property Trust c/o NewTower Trust Company, Attention President/MEPT or
Patrick O. Mayberry, Three Bethesda Metro Center, Suite 1600, Bethesda, MD 20814 Facsimile: (240)
235-9961.

     14. Ratification. Except as is explicitly amended hereby, the demised premises
described herein shall be leased to Tenant on the terms and conditions contained in the Lease. The
Lease shall remain in full force and effect and is hereby restated, ratified, and confirmed in
accordance with its original terms, as

 

 

amended hereby. All capitalized terms not defined herein shall have the meaning ascribed to such
terms in the Lease.

     IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to Lease on the date
indicated above.

	 	 	 
	Landlord:	 	Tenant:
	 
	NEWTOWER TRUST COMPANY
	 	 
	MULTI-EMPLOYER PROPERTY TRUST, a
	 	 
	trust organized under 12 C.F.R. Section 9.18

	 	The Network Management Group, Inc.
	 
	 	 
	BY: Kennedy Associates Real Estate Counsel, Inc.,
	 	 
	Authorized Signatory
	 	 

	 	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Mark D. Reinikka
	 	 	 	By	 	 /s/ Don Klumb 	 	 
	Name:

	 	 

Mark D. Reinikka
	 	 
	 	Name:
	 	 

Don Klumb
	 	 
	Title:

	 	V.P.
	 	 	 	Its:
	 	CFO	 	 

 

 

Exhibit A

Existing Premises and Expansion Premises

The Management Network Group Inc.

Lighton Plaza I

7300 College Boulevard

Suite 302

Overland Park, Kansas

Approximately 4,705 rentable square feet

 

 

Exhibit B

Plan to be attached

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