Document:

exv10w19

 

Exhibit 10.19

February 20, 2003

Dear Frank Joanlanne:

This Letter Agreement will confirm our offer of employment with Video Network
Communications, Inc. (the “Company”) on the following terms and conditions:

	1.	 	Employment. This Letter Agreement will govern the terms and conditions
of your employment commencing on the date hereof (the “Effective
Date”) until your employment is terminated pursuant to paragraph 7 below.
The period during which you are actually employed by the Company is
referred to as the “Employment Period”.
	 
	2.	 	Position; Duties. You will be employed by the Company as its Senior
Vice-President Webcasting. You will report to the President of the Company
and such other persons as are designated by the Board of Directors of the
Company (the “Board”), and shall perform the customary duties of a Senior
Vice-President and such other duties that may from time to time be
assigned to the you. You agree to use your best efforts to perform such
duties faithfully, to devote all of your working time, attention and
energies to the businesses of the Company, and while you remain employed,
not to engage in any other business activity that is in conflict with your
duties and obligations to the Company.
	 
	3.	 	Base Salary. You will be paid a base salary (“Base Salary”) at an annual
rate of $165,000, payable in accordance with the Company’s normal payroll
practices. Your Base Salary will be reviewed at least annually, and may be
subject to upward adjustment at the discretion of the Board (or a
committee thereof). Your Base Salary shall not be decreased unless there
are proportional decreases in salary imposed on the Company’s executive
employees because the Company’s financial performance dictates such
decreases.
	 
	4.	 	Annual Bonus. In addition to the Base Salary, you shall have the
opportunity to earn an annual bonus for each fiscal year of the Company
that ends during the Employment Period (the “Bonus Award”) of up to 50% of
your Base Salary paid during such year based on achievement of targeted
level of performance, as established in advance by the Board or a
committee thereof. The Board, in its discretion, may award a higher bonus
for any year for performance that exceeds target levels. To the extent
performance goals are based on the achievement of financial targets, the
Board (or a committee thereof) shall determine whether such targets are
satisfied based on the audited consolidated financial statements of the
Company, and the determination by the Board (or a committee thereof) shall
be final and binding. In making such determination, the Board (or a
committee thereof) may make adjustments to the audited numbers or to the
targets

 

 

	 	 	themselves to take into account unusual or non-recurring events,
including, without limitation, acquisitions and divestitures. In
connection with the Bonus Award described above, you and the Company may
agree on a variable compensation plan to establish targets and better
define your Bonus Award opportunity. Such plan will include a facility
for paying Employee a pro-rata share of any Bonus Award due on a
quarterly basis.
	 
	5.	 	Stock Options. You shall be granted the option to purchase 400,000
shares of VNCI common stock at an exercise price based upon the market
price on the date of issuance pursuant to VNCI’s Stock Option Plan.
	 
	6.	 	Benefits. You will be provided with such retirement benefits, fringe
benefits and insurance coverages as are made available to officers of the
Company generally. In addition, you will be provided with supplemental
disability insurance as mutually agreed by you and the Company. You shall
be entitled to vacation at the rate of three (3) weeks per year in
accordance with the Company’s vacation policy.
	 
	7.	 	Termination.

		
	 	        (a) General. You will be free to resign from the Company at any
time, and the Company will be free to terminate your employment at any
time.

		
	 	        (b) Termination Without Severance Benefits. In the event your
employment with the Company is terminated by reason of (i) your
resignation without “Good Reason” (as defined below), (ii) your death,
(iii) your “Disability” (as defined below), or (iv) your discharge by the
Company for “Cause” (as defined below), this Letter Agreement shall
terminate including, without limitation, the Company’s obligations to
provide any compensation, benefits or severance to you under this Letter
Agreement, other than any amounts earned and payable to you but not yet
paid.

		
	 	        (c) Termination With Severance Benefits. In the event the Company
terminates your employment other than for Cause, or you terminate this
Letter Agreement for Good Reason, then in lieu of any other severance
benefits otherwise payable under any Company policy, or any other damages
payable in connection with such termination, you will receive those
severance benefits to which you are entitled under the Williams
Communications Group, Inc. Change in Control Severance Protection Plan 2,
as Amended and Restated on April 18, 2002 (the “Plan”), provided,
however, that the amount of severance payable to you under the Plan shall
be capped at a maximum of 26 weeks benefit. Notwithstanding Section 3.02
of the Plan, you shall remain eligible for participation in the Plan with
regard to severance for so long as you are employed by the Company. No
other term or clause in the Plan, other than the clause regarding the
calculation and payment schedule of the amount of any severance

 

 

		
	 	benefits, shall apply, and the provisions of this Letter Agreement
shall control instead.

		
	 	        (d) Compliance and Release. Your right to the payments in paragraph
7(c) hereof shall be conditional upon (i) your continuing compliance with
the restrictive covenants and provisions contained in paragraph 8, and
(ii) your execution of a customary and reasonable release of claims in
favor of the Company and its Affiliates, in a form prescribed by the
Company.

		
	 	        (e) Liquidated Damages. The Company and you hereby stipulate that
the damages which may be incurred by you as a consequence of any
termination of employment are not capable of accurate measurement as of
the date first written above and that the liquidated damages payments
provided for in this Letter Agreement constitute a reasonable estimate
under the circumstances of and are in full satisfaction of, all damages
sustained as a consequence of any termination of employment.

		
	 	        (f) Definition of “Cause”. For purposes of this Letter Agreement,
“Cause” means an omission, act or action or series of omissions, acts or
actions by you which, in the determination of the Company, constitute(s),
cause(s) or result(s) in (i) your material dishonesty including, without
limitation, theft, fraud, embezzlement, financial misrepresentation or
other similar behavior or action in your dealings with or with respect to
the Company or any Affiliate thereof or entity with which the Company or
any Affiliate thereof, shall be engaged in or be attempting to engage in
commerce; (ii) your conviction for, or the your entry of a plea of guilty
or nolo contendere to, the commission of a felony; (iii) your willful
refusal to follow the lawful directives of the Company with respect to
your duties hereunder, which directives shall be consistent with your
duties and position as an officer of the Company, as set forth in this
Letter Agreement, and which refusal is not cured by you within thirty
(30) calendar days after written notice from the Board to you setting
forth with reasonable specificity the nature thereof; or (iv) the
material breach of any provision of this Letter Agreement which is not
cured by you within thirty (30) calendar days after written notice from
the Company to you setting forth with reasonable specificity the nature
of such breach. For purposes of this Letter Agreement, “Affiliate” shall
have the meaning assigned to it in the Stockholders Agreement, dated as
of May 16, 2002, by and among VNCI, Moneyline Telerate Holdings and the
other signatories thereto (the “Stockholders Agreement”).

		
	 	        (g) Definition of “Good Reason”. For purposes of this Letter
Agreement, “Good Reason” may only be claimed by you following a “Sale of
the Company,” and means either (i) the assignment to you, without your
written approval, of duties or responsibilities materially inconsistent
with your position as President, (ii) any material reduction in your
duties, responsibilities or authority from those in effect on the date
hereof, or (iii) a demand by the Company to relocate your principal
place of employment to a location greater than fifty (50) miles from your
current principal place of employment; provided, however, that

 

 

		
	 	the occurrence of any of (i), (ii) or (iii) shall not constitute
Good Reason unless written notice from you to the Board setting forth
with reasonable specificity the nature of such assignment or reduction is
given within 60 calendar days after the date on which such assignment,
reduction, or change in location first occurs and such assignment or
reduction is not cured or otherwise mutually resolved within 30 calendar
days after such written notice is delivered to the Board. For purposes
of this Letter Agreement, “Sale of the Company” shall mean a change in
control of VNCI exceeding 50% of the voting rights of the Company.

		
	 	        (h) Definition of “Disability”. For purposes of this Letter
Agreement, “Disability” means any physical or mental condition which
renders you incapable of performing your essential functions and duties
hereunder for a period of 90 consecutive days or any 90 days within a
period of 180 consecutive days, as determined in good faith by the
Company.

	8.	 	Restrictive Covenants.

		
	 	        (a) Confidential Information. You acknowledge and agree that the
information, observations, and data obtained by you while employed by the
Company or any of its subsidiaries or any of its Affiliates concerning
the business affairs of the Company or any subsidiary or Affiliate of the
Company (“Confidential Information”) are the property of the Company,
such subsidiary or such Affiliate. Consequently, you agree that, except
to the extent required by applicable law, statute, ordinance, rule,
regulation or orders of courts or regulatory authorities, you shall not
at any time (whether during or after the Employment Period) disclose to
any unauthorized person or use for your own account any Confidential
Information without the prior written consent of the Board, unless and to
the extent that the aforementioned matters become generally known to and
available for use by the public other than as a result of your acts or
omissions to act or as required by law. You shall deliver to the Company
at the termination of your employment, or at any other time the Company
may request, all memoranda, notes, plans, records, reports, computer
tapes and software and other documents and data (and copies thereof)
relating to the Confidential Information, Work Product (as defined below)
and the business of the Company or any subsidiary or Affiliate of the
Company which you may then possess or have under your control.

		
	 	        (b) Inventions and Patents. You agree that all inventions,
innovations, improvements, developments, methods, designs, analyses,
drawings, reports, and all similar or related information which relates
to the Company’s or any of its subsidiaries’ or Affiliates’ actual or
anticipated business, research and development or existing or future
products or services and which are conceived, developed or made by you
prior to the date hereof or while employed by the Company or any of its
subsidiaries or Affiliates (“Work Product”) belong to the Company or such
subsidiary or Affiliate. You will promptly disclose such Work Product to
the Board or its designee and perform all actions reasonably requested by
the Board or its designee (whether during or after the Employment Period)
to

 

 

		
	 	establish and confirm such ownership (including, without limitation,
assignments, consents, powers of attorney and other instruments).

		
	 	        (c) Non-competition. You acknowledge that in the course of your
employment with the Company and its subsidiaries and Affiliates you have
become familiar, and you will become familiar, with the Company’s and its
subsidiaries’ and Affiliates’ trade secrets and with other Confidential
Information and that your services have been and will be of special,
unique and extraordinary value to the Company and its subsidiaries and
Affiliates. Therefore, you agree that unless you are terminated by the
Company without Cause, or you terminate your employment with the Company
for Good Reason, you shall not, during the Restricted Period, directly or
indirectly own, operate, manage, control, participate in, consult with,
advise, engage in services for any competitor of the Company, its
subsidiaries or Affiliates, or in any manner engage in any start up of a
business (including by yourself or in association with any person, firm,
corporate or other business organization or through any other entity) in
competition with the businesses of the Company or its subsidiaries or
Affiliates as in existence or in process on the date of termination of
your employment (the “Businesses”). Nothing herein shall prohibit you
from being a passive owner of not more than 2% of the outstanding stock
or equity of an entity which is publicly traded, so long as you have no
active participation in the business of such entity. For purposes of
this paragraph 8, the Restricted Period means the period during which you
are employed by the Company or any of its subsidiaries and the 12-month
period following such termination.

		
	 	        (d) Non-solicitation. During the Restricted Period, you shall not
directly, or indirectly through another person or entity use proprietary
knowledge or information relating to the Company, its subsidiaries or its
Affiliates obtained during the course of your employment with the Company
with the intention to, or which a reasonable person would construe to (i)
induce or attempt to induce any employee of the Company or any of its
subsidiaries or Affiliates to leave the employ of the Company or such
subsidiary or Affiliate, or in any way interfere with the relationship
between the Company or any of its subsidiaries and Affiliates and any
employee thereat, including, without limitation, inducing or attempting
to induce any union, employee or group of employees to interfere with the
Business or operations of the Company or its subsidiaries or Affiliates,
(ii) hire any person who was an employee of the Company or any subsidiary
or Affiliate of the Company at any time within the six-month period prior
to the date you employ or seek to employ such person, or (iii) induce or
attempt to induce any customer, supplier, distributor, franchisee,
licensee or other business relation of the Company or any subsidiary or
Affiliate of the Company to cease doing business with the Company or such
subsidiary or Affiliate, or in any way interfere with the relationship
between any such customer, supplier, distributor, franchisee, licensee or
business relation and the Company or any subsidiary or Affiliate of the
Company.

 

 

		
	 	        (e) Non-disparagement. You shall not at any time during or after
the Employment Period whether in writing or orally, criticize, disparage,
or otherwise demean in any way the Company or its subsidiaries or
Affiliates or their respective products, officers, directors, employees
or shareholders.

		
	 	        (f) Future Cooperation. You agree that upon the Company’s
reasonable request following your termination of employment, you will use
reasonable efforts to assist and cooperate with the Company in connection
with the defense or prosecution of any claim that may be made against or
by the Company or its Affiliates, or in connection with any ongoing or
future investigation or dispute or claim of any kind involving the
Company or its Affiliates, including any proceeding before any arbitral,
administrative, regulatory, self-regulatory, judicial, legislative, or
other body or agency. You will be entitled only to reimbursement for
reasonable out-of-pocket expenses (including travel expenses) incurred in
connection with providing such assistance.

		
	 	        (g) Enforcement. You agree that: (i) the covenants set forth in
this paragraph 8 are reasonable in all respects, including, where
applicable, geographical and temporal scope, and (ii) the Company would
not have entered into this Letter Agreement but for your covenants
contained herein, and (iii) the covenants contained herein have been made
in order to induce the Company to enter into this Letter Agreement. If,
at the time of enforcement of this paragraph 8, a court shall hold that
the duration, scope or area restrictions stated herein are unreasonable
under circumstances then existing, the parties agree that the maximum
duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that the court
shall be allowed to revise the restrictions contained herein to cover the
maximum period, scope and area permitted by law. You recognize and
affirm that in the event of your breach of any provision of this
paragraph 8, money damages would be inadequate and the Company would have
no adequate remedy at law. Accordingly, you agree that in the event of a
breach or a threatened breach by you of any of the provisions of this
paragraph 8, the Company, in addition and supplementary to other rights
and remedies granted by law existing in its favor (including recovery of
damages and costs (including reasonable attorneys’ fees)), may apply to
any court of law or equity of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce or
prevent any violations of the provisions hereof (without posting a bond
or other security).

	9.	 	Insurance and Indemnification.

		
	 	        (a) D&O Insurance. The Company shall cause you to be covered by and
named as an insured under any policy or contract of insurance obtained by
it to insure its directors and officers against personal liability for
acts or omissions in connection with service as an officer or director of
the Company or service in other capacities at its request. Any coverage
provided to you pursuant to this paragraph 9 shall be of the same scope
and on the same terms and conditions as the coverage (if any) provided to
other officers or directors of the Company and

 

 

		
	 	shall continue for so long as you shall be subject to personal
liability relating to such service.

		
	 	        (b) Indemnification. The Company will indemnify and hold you
harmless from and against any and all liabilities, suits, claims,
actions, causes of actions, and debts arising from and in connection with
your employment by the Company and in the performance of your duties for
the Company in accordance with the terms of this Letter Agreement. Such
indemnification shall not apply to any such liabilities, suits, claims,
actions, causes of actions or debts resulting from: (i) any action by you
constituting fraud or criminal conduct, (ii) any action by you which is a
material violation of the terms of this Letter Agreement or in violation
of any written direction given to you, pertaining to any action within
the scope of your duties, by the Board, such persons designated by the
Board or the Company’s Chief Executive Officer, or (iii) any action which
is in violation of any laws, rules or regulations applicable to the
Company and/or the business of the Company, except to the extent such
violation of laws, rules or regulations was unintentional and was
performed by you while acting within the scope of your employment.

	10.	 	Key Man Insurance. During the Employment Period, the Company may at any
time effect insurance on your life and/or health in such amounts and in
such form as the Company may in its sole discretion decide. You will not
have any interest in such insurance, but shall, if the Company requests,
submit to such medical examinations, supply such information and execute
such documents as may be required in connection with, or so as to enable
the Company to effect, such insurance.
	 
	11.	 	Withholding. The Company shall have the right to withhold from any
amount payable to you hereunder an amount necessary in order for the
Company to satisfy any withholding tax obligation it may have under
applicable law.
	 
	12.	 	Governing Law. The terms of this Letter Agreement, and any action
arising thereunder, shall be governed by and construed in accordance with
the domestic laws of the State of New York, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State
of New York or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of New York.
	 
	13.	 	Waiver. This Letter Agreement may not be released, changed or modified
in any manner, except by an instrument in writing signed by you and the
Company. The failure of either party to enforce any of the provisions of
this Letter Agreement shall in no way be construed to be a waiver of any
such provision. No waiver of any breach of this Letter Agreement shall be
held to be a waiver of any other or subsequent breach.
	 
	14.	 	Assignment. This Letter Agreement is personal to you. You shall not
assign this Letter Agreement or any of your rights and/or obligations
under this Letter

 

 

	 	 	Agreement to any other person. The Company may, without your consent,
assign this Letter Agreement to any successor to its business.
	 
	15.	 	Dispute Resolution. To benefit mutually from the time and cost savings
of arbitration over the delay and expense of the use of the federal and
state court systems, all disputes involving this Letter Agreement (except,
at the election of the Company, for injunctive relief with respect to
disputes arising out of an alleged breach or threatened breach of the
covenants contained in paragraph 8), including claims of violations of
federal or state discrimination statutes or public policy, shall be
resolved pursuant to binding arbitration in New York, New York. In the
event of a dispute, a written request for arbitration shall be submitted
to the New York office of the American Arbitration Association. The award
of the arbitrators shall be final and binding and judgment upon the award
may be entered in any court having jurisdiction thereof. Except as
otherwise provided above, this procedure shall be the exclusive means of
settling any disputes that may arise under this Letter Agreement. All
fees and expenses of the arbitrators and all other expenses of the
arbitration, except for attorneys’ fees and witness expenses, shall be
shared equally by you and the Company. Each party shall bear its own
witness expenses and attorneys’ fees.
	 
	16.	 	Survival. Notwithstanding anything contained herein to the contrary, the
provisions of paragraphs 8, 9, 12, 15 and 16 shall survive termination of
your employment with the Company and its subsidiaries.
	 
	17.	 	Entire Agreement. This Letter Agreement supersedes all previous and
contemporaneous communications, agreements and understandings, whether
oral or written, between you, on the one hand, and the Company or any of
its Affiliates, on the other hand, and constitutes the sole and entire
agreement between you and the Company pertaining to the subject matter
hereof.
	 
	18.	 	Counterparts. This Letter Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement,
and shall become a binding agreement when one or more counterparts have
been signed by each party and delivered to the other party.

* * * *

 

 

If the foregoing is acceptable to you, kindly sign and return to us one copy of
this letter.

	 	 	 
	 	Sincerely yours,
	 
	 	VNCI
	 
	 	By:	
   /s/ Alexander Russo

Name: Alexander Russo

	 
	AGREED TO AND ACCEPTED BY:
	 
	   /s/ Frank Joanlanne

Frank Joanlanneexv10w24

 

Exhibit 10.24

STOCKHOLDERS AGREEMENT,

dated as of May 16, 2002

by and among

MONEYLINE NETWORKS, LLC,

VIDEO NETWORK COMMUNICATIONS, INC.

and

THE MANAGEMENT STOCKHOLDERS

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	

	ARTICLE I CERTAIN DEFINITIONS
	 	 	2	 
	 	1.1	Defined Terms
	 	 	2	 
	ARTICLE II TRANSFERS OF RESTRICTED SECURITIES
	 	 	5	 
	 	2.1	Restrictions Generally; Securities Act
	 	 	5	 
	 	2.2	Legend
	 	 	6	 
	 	2.3	Sale of the Company
	 	 	7	 
	ARTICLE III PREEMPTIVE RIGHTS
	 	 	7	 
	 	3.1	Preemptive Rights
	 	 	7	 
	 	3.2	Notice
	 	 	7	 
	 	3.3	Exercise
	 	 	7	 
	 	3.4	Limitations
	 	 	8	 
	ARTICLE IV CORPORATE GOVERNANCE
	 	 	8	 
	 	4.1	Significant Transactions
	 	 	8	 
	 	4.2	Board of Directors
	 	 	8	 
	 	4.3	Removal
	 	 	10	 
	 	4.4	Vacancies
	 	 	10	 
	 	4.5	By-Laws
	 	 	11	 
	ARTICLE V CERTAIN COVENANTS OF THE PARTIES
	 	 	11	 
	 	5.1	Holdback Obligations
	 	 	11	 
	ARTICLE VI MISCELLANEOUS
	 	 	11	 
	 	6.1	Governing Law
	 	 	11	 
	 	6.2	Entire Agreement; Amendments
	 	 	11	 
	 	6.3	Term
	 	 	12	 
	 	6.4	Certain Actions
	 	 	12	 
	 	6.5	Inspection
	 	 	12	 
	 	6.6	Recapitalization, Exchanges, Etc., Affecting Restricted Securities
	 	 	13	 
	 	6.7	Waiver
	 	 	13	 
	 	6.8	Successors and Assigns
	 	 	13	 
	 	6.9	Remedies
	 	 	13	 
	 	6.10	Invalid Provisions
	 	 	13	 
	 	6.11	Headings
	 	 	14	 
	 	6.12	Further Assurances
	 	 	14	 
	 	6.13	Gender
	 	 	14	 
	 	6.14	Counterparts
	 	 	14	 
	 	6.15	Notices
	 	 	14	 

i

 

EXHIBITS

Exhibit A – Form of Joinder Agreement

Exhibit B – Form of Amended and Restated By-Laws

ii

 

     STOCKHOLDERS AGREEMENT, dated as of May 16, 2002 (the “Effective Date”),
by and among MONEYLINE NETWORKS, LLC, a Delaware limited liability company
(“Moneyline”), and Video Network Communications, Inc., a Delaware corporation
(the “Company”). Capitalized terms used and not otherwise defined herein have
the respective meanings ascribed thereto in Article I.

RECITALS

     WHEREAS, Moneyline, B2BVideo Network Corp. (“B2B”) and the Company are
parties to a Stock Purchase Agreement dated May 16, 2002 (the “Stock Purchase
Agreement”), and the Company and B2B are parties to an Agreement and Plan of
Merger dated May 16, 2002 (the “Merger Agreement”) and, concurrently with this
Agreement, have consummated the transactions contemplated therein (the
“Transactions”), whereby (i) B2B Merger Sub Inc., a Delaware corporation and a
wholly-owned subsidiary of the Company, has merged with and into B2B with B2B
surviving; and (ii) Moneyline beneficially owns 36,250,000 shares of Common
Stock (as defined below);

     WHEREAS, OEP has provided the funding to Moneyline in connection with the
Transactions;

     WHEREAS, pursuant to the Stock Purchase Agreement, the Board (as defined
below), as of the date hereof, consists of six (6) individuals, 3 of whom are
Affiliates (as defined below) of Moneyline or OEP;

     WHEREAS, the Company will file within one day of the date of this
Agreement all filings required by Rule 14f-1 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), with the Commission (as defined below),
and upon the expiration of the ten day period from such filing, will appoint
Charles Auster to the Board;

     WHEREAS, the parties hereto wish to further establish the nature of their
relationship and set forth their agreement concerning the governance of the
Company following consummation of the Transactions as well as certain matters
relating to the ownership of Common Stock by Moneyline.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

1

 

ARTICLE I
CERTAIN DEFINITIONS

                 1.1    Defined
Terms  The following capitalized terms, when used in
this Agreement, have the respective meanings set forth below:

		
	 	        “Affiliate” means, with respect to any Person, any other
Person that controls, is controlled by or is under common control with
such Person. For the purposes of this definition, “control” (including,
with its correlative meanings, the terms “controlled by” and “under
common control with”), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through
the ownership of securities, by contract or otherwise.

		
	 	        “Agreement” means this Stockholders Agreement and the
exhibits hereto, as the same may be amended, modified, supplemented or
restated from time to time in accordance with the terms hereof.

		
	 	        “Board” means the Board of Directors of the Company.

		
	 	        “Closing Date” means the date of the closing of the purchase
and sale of shares of Common Stock pursuant to the Stock Purchase
Agreement.

		
	 	        “Commission” means the Securities and Exchange Commission.

		
	 	        “Common Stock” means the Common Stock, par value $.01 per
share, of the Company, any securities into which such Common Stock shall
have been changed or any securities resulting from any reclassification
or recapitalization of such Common Stock, and all other securities of any
class or classes (however designated), other than any participating
preferred stock, of the Company the holders of which have the right,
without limitation as to amount, after payment on any securities entitled
to a preference on dividends or other distributions upon any dissolution,
liquidation or winding-up, either to all or to a share of the balance of
payments upon such dissolution, liquidation or winding-up.

		
	 	        “Diluted Basis” means, with respect to the calculation of the
number of shares of Common Stock, all shares of Common Stock outstanding
at the time of determination and all shares issuable upon the exercise,
conversion or exchange, as applicable, of all outstanding securities
exercisable, convertible or exchangeable for or into shares of Common
Stock.

		
	 	        “Independent Director” means a director of the Company who is
not a Moneyline Nominee and who (i) is not an officer, employee or
director of any of Moneyline or its Affiliates, and (ii) has no
affiliation or compensation, consulting or contractual relationship with
Moneyline or its Affiliates such that a reasonable person would regard
such director as likely to be unduly influenced by any of such Persons.

2

 

		
	 	        “Joinder Agreement” means a Joinder Agreement substantially
in the form attached hereto as Exhibit A.

		
	 	        “Management Stockholders” means any director, officer,
employee, consultant or agent of the Company or any of its subsidiaries
which has executed a Stock Option Purchase Agreement and a Joinder
Agreement, so long as any such Person shall hold Restricted Securities.

		
	 	        “Moneyline Stockholders” means Moneyline and each Person to
whom Moneyline Transfers any Restricted Securities, so long as any such
Person shall hold Restricted Securities.

		
	 	        “OEP” means One Equity Partners LLC, a Delaware limited
liability company.

		
	 	        “Person” means an individual, partnership, corporation,
limited liability company or partnership, trust, unincorporated
organization, joint venture, government (or agency or political
subdivision thereof) or any other entity of any kind.

		
	 	        “Pro Rata” means, with respect to one or more Stockholders,
in proportion to the number of shares of Common Stock on a Diluted Basis
owned by such Stockholder or Stockholders.

		
	 	        “Restricted Securities” means (i) with respect to Moneyline
and OEP, the Common Stock, any other securities exercisable, exchangeable
or convertible for or into Common Stock and any securities issued with
respect to any of the foregoing as a result of any stock dividend, stock
split, reclassification, recapitalization, reorganization, merger,
consolidation or similar event or upon the conversion, exchange or
exercise thereof and any other securities designated as such by the
Board; and (ii) with respect to the Management Group, any shares of
Common Stock issued pursuant to a Stock Option Purchase Agreement.

		
	 	        “Sale of the Company” means the sale of the Company (whether
by merger, consolidation, recapitalization, reorganization, sale of
securities, sale of assets or otherwise) in one transaction or series of
related transactions to a Person or Persons not an Affiliate, directly or
indirectly, of any Moneyline Stockholder pursuant to which such Person or
Persons (together with its Affiliates) acquires (i) securities
representing at least a majority of the voting power of all securities of
the Company, assuming the conversion, exchange or exercise of all
securities convertible, exchangeable or exercisable for or into voting
securities, or (ii) all or substantially all of the Company’s assets on a
consolidated basis.

		
	 	        “Securities Act” means the Securities Act of 1933, as
amended, and the rules and regulations of the Commission thereunder.

		
	 	        “Significant Transaction” means:

3

 

                                             (i) the

authorization, issuance or sale of any capital stock or debt
securities or securities exercisable, convertible or exchangeable for or into
capital stock or debt
securities or any option, warrant or other right to acquire the same, of,
or any other interest in, the Company or any subsidiary of the Company, other
than securities issued pursuant to existing option plans, securities issued
upon exercise of convertible securities existing as of the date hereof, or any
amendment or modification of any security of the Company or any subsidiary of
the Company, whether or not outstanding as of the date hereof;

                                             (ii) the

redemption, purchase or other acquisition of any securities of
the Company or any subsidiary of the Company;

                                             (iii) any

amendment to, or modification, repeal or waiver of any provision
of, the Certificate of Incorporation or By-laws of the Company or any
subsidiary of the Company;

                                             (iv) the

declaration or payment of any dividend or other distribution by
the Company with respect to the capital stock of the Company;

                                             (v) the

entering into, or the adoption of any amendment to or
modification, repeal or waiver of, any provision of any compensation plan,
arrangement, contract or agreement relating to the compensation of, or other
benefits arrangements for, any employee of the Company or any subsidiary of the
Company, in each case, other than ordinary course salary arrangements for
non-executive officers;

                                             (vi) the

dissolution, liquidation or winding-up of the Company or any
subsidiary of the Company;

                                             (vii) the

commencement, initiation, continuation or settlement of any
suit, action or proceeding before any court, governmental or regulatory agency
or arbitral body, relating to the Company or any subsidiary of the Company and
involving amounts in excess of $250,000;

                                             (viii) the

appointment or removal of the independent auditors of the
Company or any subsidiary of the Company or modification of significant
accounting methods or policies of the Company or any subsidiary of the Company;

                                             (ix) the

adoption of any significant change to the business plan and
budget of the Company;

                                             (x) the

filing of a voluntary petition in bankruptcy or commencement of a
voluntary legal procedure for reorganization, arrangement, adjustment, relief
or composition of indebtedness or other similar law now or hereafter in effect,
the consent to the entry of an order for relief in an involuntary case under
such law or the application for or consent to the appointment of a receiver,
liquidator, assignee, custodian or trustee (or similar official) of the Company
or any subsidiary of the Company;

4

 

                                             (xi) any

merger, consolidation, recapitalization or other business
combination to which the Company or any subsidiary of the Company is a party or
any sale of all or substantially all of the assets of the Company or any
subsidiary of the Company;

                                             (xii) the

appointment or removal of any executive officer of the Company
or any subsidiary of the Company;

                                             (xiii) the

establishment of any committee of the Board;

                                             (xiv) the

acquisition by the Company or any subsidiary of the Company of
any equity securities of any Person or securities convertible into or
exercisable or exchangeable for an equity interest in any Person, including,
without limitation, any other instrument of Indebtedness issued by any Person,
where the aggregate purchase price of such securities, whether in one or a
series of related transactions, is greater than $250,000;

                                             (xv) the

acquisition of any assets by the Company or any subsidiary of the
Company in a single transaction or series of related transactions having a
value in excess of $250,000 in the aggregate; and

                                             (xvi) taking

any action, directly or indirectly, in contemplation of any
of the foregoing.

		
	 	        “Stockholders” means each of the Moneyline Stockholders and
the Management Stockholders.

		
	 	        “Stock Option Purchase Agreements” means the Stock Option
Purchase Agreements entered into, at any time or from time to time on or
after the date hereof, by the Company and any Management Stockholder, as
any such agreement may be amended, restated or modified from time to
time, and any other agreement designated as such by the Company.

		
	 	        Transfer” means, directly or indirectly, any sale, transfer,
assignment, hypothecation, pledge or other disposition of any Restricted
Securities or any interests therein.

                              (b) Unless

otherwise provided herein, all accounting terms used in this
Agreement shall be interpreted in accordance with United States generally
accepted accounting principles as in effect from time to time, applied on a
consistent basis.

ARTICLE II 
TRANSFERS OF RESTRICTED SECURITIES

                 2.1
    
Restrictions Generally; Securities Act  Each Management
Stockholder agrees that it will not, directly or indirectly, Transfer any
Restricted Securities in violation of this Agreement. Any attempt by any
Management Stockholder to Transfer any Restricted Securities in violation of

5

 

this Agreement shall be null and void and neither the issuer of such securities
nor any transfer agent of such securities shall give any effect to such
attempted Transfer in its stock records.

                              (b) Each

Management Stockholder agrees that it will not Transfer any
Restricted Securities except pursuant to an effective registration statement
under the Securities Act, or, unless waived by the Board, upon receipt by the
Company of an opinion of counsel to the Stockholder reasonably satisfactory to
the Company or, if agreed by the Board, counsel to the Company, or a no-action
letter from the Commission addressed to the Company, to the effect that no
registration statement is required because of the availability of an exemption
from registration under the Securities Act.

                 2.2    Legend
Each certificate representing Restricted Securities
shall be endorsed with the following legends and such other legends as may be
required by applicable state securities laws:

		
	 	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT
TO A STOCKHOLDERS AGREEMENT, DATED AS OF MAY 16, 2002, AS
SUCH AGREEMENT MAY BE AMENDED, RESTATED OR MODIFIED FROM
TIME TO TIME, AND MAY NOT BE TRANSFERRED, SOLD, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT IN
ACCORDANCE WITH THE PROVISIONS THEREOF AND ANY TRANSFEREE OF
THESE SECURITIES SHALL BE SUBJECT TO THE TERMS OF SUCH
AGREEMENT. COPIES OF THE FOREGOING AGREEMENT ARE MAINTAINED
WITH THE CORPORATE RECORDS OF THE ISSUER AND ARE AVAILABLE
FOR INSPECTION AT THE PRINCIPAL OFFICES OF THE ISSUER.”

		
	 	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED, SOLD OR TRANSFERRED EXCEPT PURSUANT TO (I) AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND IN COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS OR (II) AN APPLICABLE EXEMPTION FROM
REGISTRATION THEREUNDER OR UNDER APPLICABLE STATE SECURITIES
LAWS.”

                              (b) Any

certificate issued at any time in exchange or substitution for any
certificate bearing such legends (except a new certificate issued upon the
completion of a Transfer
pursuant to a registered public offering under the Securities Act and made
in accordance with the Securities Act) shall also bear such legends, unless in
the opinion of counsel for the Company, the Restricted Securities represented
thereby are no longer subject to the provisions of this Agreement or the
restrictions imposed under the Securities Act or state securities laws, in
which case the applicable legend (or legends) may be removed.

6

 

                 2.3    Sale

of the Company If the Moneyline Stockholders desire to
effect a Sale of the Company, such Moneyline Stockholders shall notify each the
Management Stockholders, in writing, of such desire and the terms and
conditions of such proposed sale. Notwithstanding any other provision of this
Agreement, each such Management Stockholder shall take all necessary and
desirable actions reasonably requested by such Moneyline Stockholders in
connection with the consummation of such Sale of the Company, and if such
transaction is structured as a sale of Restricted Securities, within ten (10)
business days of the receipt of such notice (or such longer period of time as
such Moneyline Stockholders shall designate in such notice) such other
Stockholders shall cause all of their respective Restricted Securities to be
sold to the designated purchaser on the same terms and conditions, for the same
per share consideration and at the same time as the Restricted Securities being
sold by such Moneyline Stockholders. In furtherance of, and not in limitation
of the foregoing, in connection with a Sale of the Company, each Management
Stockholder will, (a) consent to and raise no objections against the Sale of
the Company or the process pursuant to which it was arranged, (b) waive any
dissenter’s rights and other similar rights and (c) execute all documents
containing such terms and conditions as those executed by such Moneyline
Stockholders as directed by such Moneyline Stockholders. All Management
Stockholders will bear their Pro Rata share of the costs and expenses incurred
for the benefit of all Stockholders and not otherwise paid by the Company or
the purchaser in connection with a Sale of the Company. Costs incurred by any
Management Stockholder on its own behalf will not be shared by the Moneyline
Stockholders.

ARTICLE III 
PREEMPTIVE RIGHTS

                 3.1    Preemptive

Rights If, at any time after the Closing Date for so
long as the Moneyline Stockholders shall be entitled to designate at least one
Moneyline Nominee (as defined below) for election to the Board, the Company
proposes to issue and sell shares of Common Stock or any other voting
securities of the Company to any Person, the Moneyline Stockholders shall have
the right to purchase from the Company a number of shares of Common Stock or
any other voting securities of the Company sufficient to maintain following
such transaction the same Pro Rata interest in the shares of Common Stock or
any other voting securities of the Company as immediately prior to such
transaction. Such purchase by the Moneyline Stockholders shall be on the same
terms and conditions as such purchase by such Person. Each such issuance and
sale to any Person shall be subject to the rights set forth in this Article
III.

                 3.2    Notice

If the Company proposes to issue shares of Common Stock
or any other voting securities of the Company in accordance with this Article
III, it shall give the Moneyline Stockholders written notice of such issuance,
describing the price and terms upon
which the Company intends to issue the same and the amount eligible to be
purchased by the Moneyline Stockholders.

                 3.3    Exercise

Upon receipt by the Moneyline Stockholders of the
written notice of the Company pursuant to Section 3.2 above, the Moneyline
Stockholders shall have ten (10)

7

 

business days during which to exercise the
right pursuant to Section 3.1 above to purchase the proportionate share of
Common Stock or any other voting securities of the Company proposed to be
issued and sold for the price and upon the terms specified in such notice. If
the Money Stockholders fail to notify the Company of its exercise of such
rights within such twenty (20) business day period, the Money Stockholders
shall have no further rights with regard to such purchase by such Person at the
price and upon the terms specified in the notice, subject to Section 3.4 below.

                 3.4    Limitations

If the Company has not sold the shares of Common
Stock or any other voting securities of the Company identified in the notice
given pursuant to Section 3.2 within ninety (90) days following the expiration
of the twenty (20) business day period referred to in Section 3.3 above, the
Company shall not thereafter issue or sell any such shares to such Person
without also offering the same to the Money Stockholders in the manner provided
above.

ARTICLE IV 
CORPORATE GOVERNANCE

                 4.1    Significant

Transactions For so long as the Moneyline
Stockholders own 25% or more of the shares of Common Stock of the Company, the
consent of Moneyline shall be required prior to entering into any Significant
Transaction.

                 4.2    Board
of Directors Number of Directors. From and after the
date hereof, each Stockholder shall vote or cause to be voted all shares of
Common Stock and any other voting securities of the Company over which such
Stockholder has voting control, or execute a written consent in lieu of such a
meeting of stockholders, and shall take all actions necessary, to ensure the
election to the Board of at least seven (7) individuals. For so long as the
Moneyline Stockholders own 25% or more of the shares of Common Stock of the
Company, if the Moneyline Stockholders request that the number of individuals
constituting the Board be changed, by written notice delivered to the Company,
the size of the Board shall be changed to such number and each Stockholder
hereby agrees to vote all shares of Common Stock owned by such Stockholder and
other securities over which such Stockholder has voting control to effect such
change in the size of the Board or to consent in writing to effect such change
in the size of the Board upon such request.

                              (b)

Election of Moneyline Directors.

                                             (i) For

so long as the Moneyline Stockholders own 50% or more of the
shares of Common Stock or any other voting securities of the Company owned by
Moneyline on the date hereof, each Stockholder shall vote or cause to be voted
all shares of Common Stock and any other voting securities of the Company over
which such Stockholder has voting control, at any regular or special meeting of
stockholders called for the purpose of filling
positions on the Board, or execute a written consent in lieu of such a
meeting of stockholders for the purpose of filling positions on the Board, and
shall take all actions necessary, to ensure the election to the Board of four
(4) individuals to be designated by Moneyline (each, a “Moneyline

8

 

     Nominee”, and collectively, the “Moneyline Nominees”), the Chief
Executive Officer of the Company (the “CEO”) and two (2) Independent Directors.

                                             (ii) For

so long as the Moneyline Stockholders own less than 50% but at
least 25% of the shares of Common Stock or any other voting securities of the
Company owned by Moneyline on the date hereof, each Stockholder shall vote or
cause to be voted all shares of Common Stock and any other voting securities of
the Company over which such Stockholder has voting control, at any regular or
special meeting of stockholders called for the purpose of filling positions on
the Board, or execute a written consent in lieu of such a meeting of
stockholders for the purpose of filling positions on the Board, and shall take
all actions necessary, to ensure the election to the Board of three (3)
Moneyline Nominees, the CEO and three (3) Independent Directors.

                                             (iii) For

so long as the Moneyline Stockholders own less than 25% of the
shares of Common Stock or any other voting securities of the Company owned by
Moneyline on the date hereof, each Stockholder shall vote or cause to be voted
all shares of Common Stock and any other voting securities of the Company over
which such Stockholder has voting control, at any regular or special meeting of
stockholders called for the purpose of filling positions on the Board, or
execute a written consent in lieu of such a meeting of stockholders for the
purpose of filling positions on the Board, and shall take all actions
necessary, to ensure the election to the Board of a number of Moneyline
Nominees that is proportionate to the number of shares of Common Stock or any
other voting securities of the Company held by the Moneyline Stockholder, the
CEO and such number of Independent Directors as is necessary to fill any
remaining position on the Board.

                              (c)

Replacements. If prior to his or her election to the Board
pursuant to Section 3.2(b), any Moneyline Nominee shall be unable or unwilling
to serve as a director of the Company, the Moneyline Stockholders that
nominated such Moneyline Nominee shall nominate a replacement who shall then be
a Moneyline Nominee for purposes of Section 3.2(b).

                              (d)

Committees.

                                             (i) For

so long as a Moneyline Nominee shall be a member of the Board,
each committee of the Board, including the executive, audit, nominating and
compensation committees, shall include at least one Moneyline Nominee at all
times.

                                             (ii) From

and after the date hereof and until the appointment of Charles
Auster to the Board in accordance with Section 4.2(e), no committee of the
Board shall take any action and the consent of the majority of the Board (other
than Charles Auster) shall be required to approve and adopt any action for or
on behalf of the Company.

                                   (e)

Composition of Board as of the Date Hereof. Pursuant to the
Stock Purchase Agreement and contemporaneously with the date hereof, the Board
consists of the following six (6) individuals (i) David Walsh, (ii) Alexander
Russo, (iii) Jonathan Robson, (iv) Carl Muscari, (v) Richard S. Friedland, and
(vi) Eugene R. Cacciamani. Upon the expiration of

9

 

the ten day period following
the date of filing of all forms required by Rule 14f-1 of the Exchange Act with
the Commission, the Company, the Board and each Stockholder shall take all
action necessary to appoint Charles Auster to the Board.

                 4.3    Removal

(a) If the Moneyline Stockholders that designated a
Moneyline Nominee pursuant to Section 4.2(b) request, by written notice to the
other Stockholders, that such Moneyline Nominee elected as a director be
removed (with or without cause), such director shall be removed and each
Stockholder hereby agrees to vote all shares of Common Stock owned by such
Stockholder and other securities over which such Stockholder has voting control
to effect such removal or to consent in writing to effect such removal upon
such request. No director that is a Moneyline Nominee shall be removed without
cause except as provided in this Section 4.3.

                 (b) If

at any time a member of the Board resigns or is removed (in
accordance with this Section 4.3 or otherwise), a new member of the Board shall
be designated to replace such member until the next election of directors. If
consistent with Section 4.2(b), the replacement director is to be a Moneyline
Nominee, the Moneyline Stockholders shall designate the replacement Moneyline
Nominee. If the former member was the CEO, the replacement CEO shall be the
replacement. Except as set forth in Section 4.3(d) below, if consistent with
Section 4.2(b), the replacement director is to be an Independent Director, the
remaining members of the Board shall designate the replacement Independent
Director.

                 (c) Subject

to Section 4.3(d) below, if at any time the number of
Moneyline Nominees entitled to be nominated to the Board in accordance with
this Agreement in an election of directors presented to stockholders would
decrease, within 10 days thereafter the Moneyline Stockholders shall cause a
sufficient number of Moneyline Nominees to resign from the Board so that the
number of Moneyline Nominees on the Board after such resignation(s) equals the
number of Moneyline Nominees that the Moneyline Stockholders would have been
entitled to designate had an election of directors taken place at such time.
The Moneyline Stockholders shall also cause a sufficient number of Moneyline
Nominees to resign from any relevant committees of the Board so that such
committees are comprised in the manner contemplated by Section 4.02(d) after
giving effect to such resignations. Any vacancies created by the resignations
required by this Section 4.3(c) shall be filled by Independent Directors.

                 (d) If

at any time the percentage of Common Stock or other voting
securities of the Company held by the Moneyline Stockholders decreases as a
result of an issuance of Common Stock or other voting securities of the
Company, the Moneyline Stockholders may notify the Company that the Moneyline
Stockholders intend to acquire a sufficient amount of additional shares of
Common Stock or other voting securities of the Company necessary to maintain
the Moneyline Stockholders then current level of Board representation within
twenty (20) business days. In such event, until the end of such period (and
thereafter if the Moneyline Stockholders in fact restore their percentage of
Common Stock or other voting securities of the Company during
such period to maintain the requisite level of ownership of Common Stock
or other voting securities in accordance with Section 4.2(b)), the Board shall
continue to have the number of Moneyline Nominees as prior to such issuance of
Common Stock or other voting securities of the

10

 

Company.

                 
4.4    Vacancies

In the event that a vacancy is created on the Board at
any time by the death, disability, retirement, resignation or removal (with or
without cause) of a director who is a Moneyline Nominee, the Moneyline
Stockholders may designate a new Moneyline Nominee to fill the vacancy.

                 
4.5    By-Laws

The Company shall cause the amendment of its by-laws
(the “By-Laws”) to reflect the provisions of Article IV of this
Agreement (other than Section 4.2(d)(ii)) and such other matters as the parties
hereto may reasonably agree. The form of such amended By-Laws is attached
hereto as Exhibit B. Those provisions of the By-Laws reflecting the
terms of Article IV of this Agreement shall not be amended during the term of
this Agreement without the express written consent of the Moneyline
Stockholders. The Company and the Moneyline Stockholders shall each take or
cause to be taken all lawful action necessary to ensure at all times that the
Company’s certificate of incorporation and the By-Laws are not at ant times
inconsistent with the provisions of this Agreement.

ARTICLE V 
CERTAIN COVENANTS OF THE PARTIES

                 5.1    Holdback

Obligations Unless otherwise agreed to by the Moneyline
Stockholders, each Management Stockholder agrees (a) not to effect any sale or
distribution of equity securities of the Company, or any securities
convertible, exchangeable or exercisable for or into such securities, during
the seven (7) days prior to, and the 180-day period beginning on, the effective
date of any underwritten public offering of Common Stock registered under the
Securities Act (except as part of such underwritten registration), unless the
managing underwriters of the registered public offering otherwise agree and (b)
to enter into such standstill agreements and related agreements as such
managing underwriters may request.

ARTICLE VI 
MISCELLANEOUS

                 6.1    Governing

Law The corporate laws of the State of Delaware will
govern all questions concerning the relative rights of the Company and its
stockholders hereunder. All other questions concerning the construction,
validity and interpretation of this Agreement shall be governed and construed
in accordance with the domestic laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of
the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York.

                 6.2    Entire

Agreement; Amendments This Agreement constitutes the
entire agreement of the parties with respect to the subject matter hereof and
may be amended, modified or supplemented only by a written instrument duly
executed by the Company and the Moneyline
Stockholders, except that any amendment, modification or supplement that
materially, adversely and disproportionately affects, as a group, the
Management Stockholders shall require the

11

 

consent of the holders representing
more than fifty percent (50%) of the total number of shares of Restricted
Securities on a Diluted Basis then held by the Management Stockholders. In the
event of an amendment, modification or supplement of this Agreement in
accordance with its terms, the Stockholders hereby agree to vote their shares
of Common Stock to approve any necessary amendments to the Certificate of
Incorporation and By-Laws of the Company resulting therefrom.

                 6.3    Term

This Agreement shall terminate upon the earliest to occur
of (a) the tenth anniversary of the Closing Date and (b) a Sale of the Company.

                 6.4    Certain

Actions Unless otherwise expressly provided herein,
whenever any action is required under this Agreement by: the Moneyline
Stockholders, it shall be by the affirmative vote of the holders representing
more than fifty percent (50%) of the total number of shares of Restricted
Securities on a Diluted Basis then held by the Moneyline Stockholders as a
group, or as otherwise agreed in writing by the Moneyline Stockholders as a
group.

                 6.5    Inspection

For so long as this Agreement shall remain in effect,
this Agreement shall be made available for inspection by any Stockholder at the
principal executive offices of the Company.

12

 

                 6.6    
Recapitalization, Exchanges, Etc., Affecting Restricted Securities The
provisions of this Agreement shall apply, to the full extent set forth herein
with respect to the Restricted Securities, to any and all shares of the Company
capital stock or any successor or assign of the Company (whether by merger,
consolidation, sale of assets, or otherwise, including shares issued by a
parent corporation in connection with a triangular merger) which may be issued
in respect of, in exchange for, or in substitution of, Restricted Securities
and shall be appropriately adjusted for any stock dividends, splits, reverse
splits, combinations, reclassifications and the like occurring after the date
hereof.

                 6.7    Waiver

No waiver by any party of any term or condition of this
Agreement, in one or more instances, shall be valid unless in writing, and no
such waiver shall be deemed to be construed as a waiver of any subsequent
breach or default of the same or similar nature.

                 6.8    Successors

and Assigns Except as otherwise expressly provided
herein, this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors
and assigns (including, without limitation, transferees of Restricted
Securities); provided, however, that (a) nothing contained herein
shall be construed as granting any Management Stockholder the right to Transfer
any Restricted Securities except in accordance with this Agreement, and (b)
unless otherwise provided in the terms of the Transfer, none of the provisions
of this Agreement, other than those set forth in Sections 2.1 and 2.2 to the
extent those Sections require compliance with the Securities Act, delivery of
opinions of counsel and placement of Securities Act (or state securities laws)
legends or other legends, shall apply to any Transfer of Restricted Securities
(or to the transferee thereof) subsequent to a Transfer of those securities
pursuant to a registered public offering under the Securities Act made in
accordance with the Securities Act.

                 6.9    Remedies

In the event of a breach by any party to this Agreement
of its obligations under this Agreement, any party injured by such breach, in
addition to being entitled to exercise all rights granted by law, including
recovery of damages and costs (including reasonable attorneys’ fees), will be
entitled to specific performance of its rights under this Agreement. The
parties agree that the provisions of this Agreement shall be specifically
enforceable, it being agreed by the parties that the remedy at law, including
monetary damages, for breach of any such provision will be inadequate
compensation for any loss and that any defense in any action for specific
performance that a remedy at law would be adequate is waived.

                 6.10    Invalid

Provisions If any provision of this Agreement is held
to be illegal, invalid or unenforceable under any present or future law, and if
the rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (a) such provision will be fully
severable, (b) this Agreement will be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part hereof,
(c) the remaining provisions of this Agreement will remain in full force and
effect and will not be affected by the illegal, invalid or unenforceable
provision or by its severance herefrom and (d) in lieu of such illegal, invalid
or unenforceable provision, there will be added automatically as a part of this

13

 

Agreement a legal, valid and enforceable provision as similar in terms to such
illegal, invalid or unenforceable provision as may be possible.

                 6.11    Headings

The headings used in this Agreement have been inserted
for convenience of reference only and do not define or limit the provisions
hereof.

                 6.12    Further

Assurances Each party hereto shall cooperate and shall
take such further action and shall execute and deliver such further documents
as may be reasonably requested by any other party in order to carry out the
provisions and purposes of this Agreement.

                 6.13    Gender

Whenever the pronouns “he” or “his” are used herein they
shall also be deemed to mean “she” or “hers” or “it” or “its” whenever
applicable. Words in the singular shall be read and construed as though in the
plural and words in the plural shall be construed as though in the singular in
all cases where they would so apply.

                 6.14    Counterparts

This Agreement may be executed in any number of
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

                 6.15    Notices

All notices, requests and other communications
hereunder must be in writing and will be deemed to have been duly given only if
delivered personally against written receipt or by facsimile transmission or
mailed by prepaid first class mail, return receipt requested, or mailed by
overnight courier prepaid to the parties at the following addresses or
facsimile numbers:

	 	(a) If to Moneyline:

	 	Moneyline Networks, LLC

233 Broadway

New York, NY 10279

Facsimile No.: 212-553-2598

Attn: Alexander Russo

	 	with a copy to:

	 	Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, NY 10036

Facsimile No.: 917-777-3050

Attn: Joseph A. Coco, Esq.

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	 	(b) If to OEP, to:

	 	One Equity Partners LLC

320 Park Avenue, 18th Floor

New York, NY 10022

Attn: Richard M. Cashin, Jr.

	 	(c) If to the Company, to:

	 	Video Network Communications, Inc.

50 International Drive

Portsmouth, New Hampshire 03801

Facsimile No.: (603) 334-6742

Attn: Robert Emery, Chief Financial Officer

	 	with a copy to:

	 	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

666 Third Avenue, 25th Floor

New York, NY 101017

Facsimile No.: 212-983-3115

Attn: Kenneth Koch, Esq.

                                                     (d) If

to a Stockholder other than a Moneyline Stockholder, to the address
of such Person set forth in the stock records of the Company.

All such notices, requests and other communications will (w) if delivered
personally to the address as provided in this Section 6.15 be deemed given upon
delivery, (x) if delivered by facsimile transmission to the facsimile number as
provided in this Section 6.15 be deemed given upon facsimile confirmation, and
(y) if delivered by mail in the manner described above to the address as
provided in this Section 6.15 upon the earlier of the third business day
following mailing or upon receipt and (z) if delivered by overnight courier to
the address as provided in this Section 6.15, be deemed given on the earlier of
the first business day following the date sent by such overnight courier or
upon receipt (in each case regardless of whether such notice, request or other
communication is received by any other Person to whom a copy of such notice is
to be delivered pursuant to this Section 6.15). Any party from time to time
may change its address, facsimile number or other information for the purpose
of notices to that party by giving notice specifying such change to the other
parties hereto.

15

 

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

	 	 	 	 	 
	 	 	COMPANY:	 
	 
	 	 	VIDEO NETWORK COMMUNICATIONS, INC	 
	 
	 	 	By:	 	 
	 	 	 	
	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 
	 	 	MONEYLINE STOCKHOLDERS:	 
	 
	 	 	MONEYLINE NETWORKS, LLC	 
	 	 	By:	 	 
	 	 	 	
	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

Exhibit A

Form of Joinder Agreement

Video Network Communications, Inc.

50 International Drive

Portsmouth, New Hampshire 03801

Attn: President

Gentlemen:

In consideration of the issuance to the undersigned of ______shares of Common
Stock, par value $0.01 per share, of Video Network Communications, Inc., a
Delaware corporation (the “Company”), the undersigned agrees that, as of the
date written below, [he] [she] [it] shall become a party to that certain
Stockholders Agreement dated as of May 16, 2002, as such agreement may have
been or may be amended from time to time (the “Agreement”), among the Company
and the persons named therein, and shall be fully bound by, and subject to, the
provisions of the Agreement as though an original party thereto and shall be
deemed a Management Stockholder for purposes thereof.

     Executed as of the    day of          ,        .

	 	 	 	 
	 	NAME:	 	 
	 
	 	Address:	 	 
	 	 	
	 
	 	 	
	 

 

Exhibit B

Form of Amended and Restated By-Laws

[Attached hereto]

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