Document:

exv10w1

 

Execution Version

ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (this “Agreement”), is entered into as May 11, 2007, by and
between WQN, INC., a Delaware corporation (“Buyer”), and CLEVERBYTE, INC., an association
incorporated under the laws of the State of Queensland, Australia (“Seller”).

W I T N E S S E T H

     WHEREAS, Seller is the owner of assets, intellectual property, products, services, and general
intangibles related to the software program “My Nabyoo” (the “Business”).

     WHEREAS, Seller desires to sell to Buyer, and Buyer desires to acquire from the Seller, the
Purchased Assets (as defined below), all subject to the terms and conditions hereinafter set forth;
and

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

ARTICLE I

PURCHASE AND SALE OF ASSETS

1.1 Purchased Assets To Be Transferred. Subject to the terms and conditions of this
Agreement, at the Closing (as defined below), Seller shall sell, transfer, convey, assign, and
deliver to Buyer, and Buyer shall purchase and accept, the Purchased Assets, free and clear of any
mortgage, security interest, pledge, lien, charge or other encumbrance (each, an “Encumbrance”).
The Seller expressly agrees that the sale of the Purchased Assets constitutes a transfer of all of
the Seller’s rights with respect to the Purchased Assets, and that the Seller neither reserves, nor
has granted, nor is aware of, any rights to market or otherwise transfer the Purchased Assets. The
"Purchased Assets” shall mean, and consist of, all source and object code versions of the My Nabyoo
software, the content of the website www.mynabyoo.com, and any code, modules, libraries, routines,
functions, applications, databases, interfaces, filters, and components included or related to any
of the foregoing, including, without limitation, the software identified in Schedule 1.1(a) (the
"Software”), the Uniform Resource Locator on the world wide web for My Nabyoo (the “URL”), and all
of the rights, claims and assets (of every kind, nature, character and description, whether real,
personal or mixed, whether tangible or intangible, whether accrued, contingent or otherwise, and
wherever situated) that relate to the Software, including the following:

          (a) Documentation. All right, title and interest in or to any end user or design
documentation, specification, or description of the Software, including, without limitation, the
documentation identified in Schedule 1.1(a) hereto (the “Documentation”).

          (b) Intellectual Property Rights. All right, title and interest in or to any of
Seller’s (a) United States patents, patent applications, continuations, continuations-in-part,
divisions, reissues, patent disclosures, inventions (whether or not patentable) and improvements
thereto, (b) United States trademarks, service marks, logos, trade dress and trade names or other

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source-identifying designations or devices, (c) United States copyrights, works of authorship and
design rights, whether registered or unregistered, and pending applications to register the same,
(d) Internet domain names and registrations thereof, and (e) confidential ideas, trade secrets,
computer software, including source code, know-how, works-in-progress, concepts, methods,
processes, inventions, invention disclosures, formulae, reports, data, customer lists, mailing
lists, business plans or other proprietary information relating to the Software or the Business
(the “Intellectual Property Rights”).

          (c) Records And Files. All records, files, invoices, copies of accounting records,
copies of business records, and other data related to the Business, Software, or the Contracts.

1.2 Liabilities Not Assumed. Except as set forth on Schedule 1.3, Buyer is not assuming,
and will not assume or perform any liabilities or obligations of Seller.

ARTICLE II

PURCHASE PRICE AND INVENTORY COUNT

2.1 Purchase Price. At the Closing (as defined below), Buyer shall (a) pay to the Seller
an aggregate amount equal to (i) $700,000.00 USD in the form of an issue of 2,692,308 shares of
Buyer’s unregistered and restricted common stock, par value $0.01 USD per share (the “Common
Stock”) (such amount as it may be increased or decreased pursuant to the terms hereof, being, the
"Purchase Price”).

ARTICLE III

CLOSING

3.1 Closing Date. The closing (“Closing”) of the transactions contemplated hereby shall
occur on May 15, 2007 (the “Closing Date”).

3.2 Deliveries by Seller. At the Closing, Seller shall deliver the following to Buyer:

     A. This fully executed Asset Purchase Agreement;

     B. A fully executed Bill of Sale in the form of Exhibit A;

     C. Fully executed third party consents and/or approvals, as may be necessary; and

     D. Title to and possession of the Purchased Assets.

3.3 Deliveries by Buyer. At the Closing, Buyer shall deliver the following to Seller:

     A. The Purchase Price, constituting certificates representing the shares of common stock in
the Buyer described in Section 2.1; and

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     B. Such other agreements, documents, certificates and instruments as Buyer may reasonably
request as being necessary in order to effectuate the transactions contemplated by this Agreement.

ARTICLE IV

CONDITIONS TO CLOSING

     The obligations of the parties to effect the transactions contemplated hereby are subject to
the satisfaction at or prior to the Closing of the following conditions:

4.1 Fairness Opinion. Buyer shall have received a written opinion supporting the terms and
fairness of the transaction contemplated by this Agreement, satisfactory to Buyer.

4.2 Board Approval. Buyer shall have obtained all board of director approval necessary to
consummate the transactions contemplated by this Agreement.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF SELLER

5.1 Representations and Warranties of Seller. As of the Closing Date, Seller represents
and warrants to Buyer as follows: (a) Seller is duly organized, validly existing and (if
applicable) in good standing under the laws of its jurisdiction of organization and Seller has all
requisite corporate power and authority to own and operate the Purchased Assets, to carry on its
business as now conducted and to enter into this Agreement and any other agreement to which it is a
party; (b) this Agreement is, and the other agreements when executed and delivered will be, the
legal, valid and binding obligations of Seller, each enforceable against Seller in accordance with
their respective terms, except to the extent that the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally
affecting creditors’ rights and by equitable principles; (c) Seller has taken all action and
obtained all consents necessary to authorize the execution, delivery and performance of this
Agreement; (d) Seller has good and marketable title to the Purchased Assets, free and clear of all
liens, claims, and encumbrances of any kind; (e) the execution and performance of this Agreement
and the other agreements to which it is a party do not conflict with, or constitute a default
under, any agreement to which Seller is party or by which Seller is bound; (f) except as disclosed
to Buyer in writing, Seller is not party to any litigation related to the Purchased Assets and is
not, to its knowledge, the subject of any government investigation, and Seller has no knowledge of
any pending litigation or investigation or the existence of circumstances that reasonably could be
expected to give rise to such litigation or investigation related to the Purchased Assets; (g)
Seller does not have any obligation or liability (whether accrued, absolute, contingent,
unliquidated or otherwise, whether due or to become due and regardless of when asserted) required
to be disclosed in a balance sheet prepared in accordance with GAAP (including the notes thereto)
arising out of transactions entered into at or prior to the Closing Date, or any action or inaction
at or prior to the Closing Date, or any state of facts existing at or prior to the Closing Date in
any way related to the Purchased Assets other than: (A) liabilities set forth on the latest
financial statements (including any notes thereto) provided to the Buyer (the “Financial
Statements”) and (B) liabilities and obligations which have arisen after the date of the Financial
Statements in the ordinary course of business (none of which is a liability resulting from breach
of contract, breach

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of warranty, tort, infringement, claim or lawsuit, unless such liability is either fully covered by
insurance (subject to normal deductibles or retentions) or is not, individually or in the aggregate
with all such other liabilities, material); (h) all of the Purchased Assets are in good operating
condition; and (i) no representation or other statement made by Seller to Buyer in this Agreement
or any certificate or instrument delivered by Seller to Buyer in connection herewith (taken
together with all such representations, statements, certificates and instruments delivered by
Seller) contains any untrue statement of a material fact or omits to state a material fact
necessary to make any statements made to Buyer not misleading.

5.2 Intellectual Property Rights.

     (a) No Intellectual Property Rights of any third party are necessary to conduct the business
of Seller as it has been conducted, is currently conducted, or is currently proposed to be
conducted. All of the Seller’s Intellectual Property Rights are subsisting, valid, and
enforceable.

     (b) Neither the Seller, nor the conduct of the business of Seller as it has been conducted, is
currently conducted, or is currently proposed to be conducted, infringes, misappropriates or
otherwise violates the Intellectual Property Rights of any third party and, to the knowledge of
Seller, no Person has asserted any claim of the foregoing or challenging the ownership, validity,
or enforceability of any Intellectual Property Rights owned, licensed, or used by the Seller.
Immediately subsequent to the Closing, any Intellectual Property Rights owned or used by the Seller
immediately prior to the execution hereof will be owned by or available for use by such Seller on
terms and conditions identical to those under which such Seller owned or used the Intellectual
Property Rights immediately prior to the execution hereof. The Closing hereof shall not terminate
or alter (or give rise to any right to terminate or alter) any Contract granting rights to any
Intellectual Property Rights or give rise to or allow any third party to exercise any additional
right or impose any additional restriction on Seller under any Contract granting rights to any
Intellectual Property Rights.

     (c) Seller does not license, use, or distribute any open source software, free source
software, freeware, or any other software copied, downloaded, licensed, or otherwise obtained
pursuant to terms, notices, or other commitments or understandings that would: (i) prevent Seller
from obtaining a patent on any Proprietary Software; or (ii) require Seller to disclose, license,
distribute or otherwise make available any Proprietary Software, without material consideration, or
the source code of any Proprietary Software, whether with or without consideration, to any third
party. “Proprietary Software” shall mean software developed by or for Seller or for which a Seller
owns or holds an exclusive license to the copyright or any patentable invention embodied by such
software, in each case whether or not such copyright or patentable invention is registered or
perfected.

     (d) Seller owns and possesses the entire and exclusive right, title and interest in and to any
Intellectual Property Rights free and clear of any encumbrance or restriction.

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ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF BUYER

6.1 Representations and Warranties of Buyer. Buyer represents and warrants to Seller as
follows:

     A. Organization. Buyer is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has all requisite corporate power and
authority to carry on its business as presently conducted, to own and operate the properties owned
by it and to enter into this Agreement and perform its obligations hereunder.

     B. Authority Relative to Agreement. The execution, delivery and performance by Buyer
of this Agreement have been duly and effectively authorized by all necessary corporate action.
This Agreement has been duly executed and delivered by Buyer and is a legal, valid and binding
obligation of Buyer enforceable against it in accordance with its terms.

     C. Brokers, Finders, Etc. All negotiations relating to this Agreement and the
transactions contemplated hereby and thereby have been carried on without the intervention of any
person acting on behalf of Buyer in such manner as to give rise to any valid claim against Seller
for any brokerage of finder’s commission, fee or similar compensation.

ARTICLE VII

COVENANTS OF SELLER

7.1 Use of Names. Seller covenants that as of the Closing Date, Seller shall abandon and
cease use of the name “My Nabyoo.” Notwithstanding anything herein to the contrary in this
Agreement, Seller retains all rights to the name “CleverByte” and Buyer agrees that it will not use
the name “CleverByte” at any time. Additionally, Seller covenants to perform such actions and
execute such documents as shall be required or requested to immediately transfer the URL to Buyer
after Closing.

7.2 Confidentiality, Non-Compete and Non-Solicitation. The Seller, each principal of
Seller, and any Affiliate of Seller (individually, each a “Security Holder”) acknowledges that it
has or may have access to Confidential Information (as defined) and that such Confidential
Information does and will constitute valuable, special and unique property of Buyer from and after
the Closing Date. The Seller and each Security Holder agrees that (a) for a period of three (3)
years after the Closing Date, in the case of the Seller, and (b) for a period of the later of (i)
three (3) years after the Closing Date or (ii) two (2) years after the last day of employment with
the Buyer, in the case of the Security Holders, neither it nor any of its affiliates, will,
directly or indirectly (i) own, manage, operate, control or participate in the ownership,
management, operation or control of any business, whether in corporate, proprietorship or
partnership form or otherwise, engaged in the design, manufacturing or marketing of products that
are competitive with the Business or that otherwise competes with Buyer, (ii) solicit, influence or
attempt to influence any employee, customer, supplier, vendor or referral source of Buyer to
terminate his or her employment or other contractual relationship with Buyer for any reason or
(iii) disclose, reveal, divulge or communicate to any person other than authorized officers,
directors, partners, and employees of Buyer, or use or otherwise exploit for its own benefit or for
the benefit of

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anyone other than Buyer, any Confidential Information. Neither the Seller nor any Security Holder
shall have any obligation to keep confidential any Confidential Information if and to the extent
disclosure thereof is specifically required by law; provided, however, that in the event disclosure
is required by applicable law, such person shall, to the extent reasonably possible, provide Buyer
with prompt notice of such requirement prior to making any disclosure so that Buyer may seek an
appropriate protective order. After the Closing, the parties to this Agreement agree that they
will not publicly disparage Buyer, its business or any activity related thereto. For purposes of
this Section 7.2, “Confidential Information” shall mean any confidential information with respect
to the Business, including, without limitation, methods of operation and manufacture, referral
sources, customers and customer lists, terms of the Seller’s relationships with its senior fellow,
products or services, proposed products or services, former products or services, proposed, pending
or completed acquisitions of any Seller, division, product line or other business unit, prices,
fees, costs, plans, designs, technology, inventions, trade secrets, know-how, software, marketing
methods, policies, plans, personnel, suppliers, competitors, markets or other specialized
information or proprietary matters. The term “Confidential Information” does not include, and
there shall be no obligation hereunder with respect to, information that (a) is generally available
to the public on the date of this Agreement, or (b) becomes generally available to the public other
than as a result of a disclosure by the Seller, the Seller Representative or a Security Holder not
otherwise permissible thereunder, or (c) the Seller, the Seller Representative or a Security Holder
learns from other sources where such sources have not violated their confidentiality obligation to
Buyer. The parties hereto specifically acknowledge and agree that the remedy at law for any breach
of the foregoing will be inadequate and that Buyer, in addition to any other relief available to
it, shall be entitled to temporary and permanent injunctive relief without the necessity of proving
actual damage or posting any bond whatsoever. In the event that the provisions of this Section 7.2
should ever be deemed to exceed the limitation provided by applicable law, then the parties hereto
agree that such provisions shall be reformed to set forth the maximum limitations permitted.

7.3 Conduct of Business. Prior to the Closing Date, except as otherwise expressly
contemplated by this Agreement, Seller shall operate its business in a reasonable and prudent
manner only in the usual and ordinary course of business consistent with past custom and practice
and in accordance with all applicable laws and to maintain the Purchased Assets in good working
order. Seller shall preserve the goodwill and organization of the Business and the relationships
with its customers, suppliers, referral sources, employees and other persons having business
relations with Seller. Without limiting the generality of the foregoing and subject thereto, prior
to the Closing Date or the termination of this Agreement, Seller shall not, without the written
consent of Buyer:

     A. sell, lease, license or dispose of any of its assets or properties, but excluding Excluded
Assets other than in the ordinary course of the business and subject to the obligation to maintain
proper inventory levels; or

     B. mortgage, pledge or otherwise encumber any of the Purchased Assets or subject any such
Purchased Assets to any lien or encumbrance.

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ARTICLE VIII

NON-SOLICITATION

8.1 Seller and any Affiliate of Seller hereby agree that they will not contact any Customer (as
defined below) for purposes of soliciting the sale of any products or services competing in any
manner with the Business for a period of two (2) years following the date hereof. “Customer”
means any individual, business, corporation, organization, group, entity or other person who has
utilized or will utilize within the next three years any of the Intellectual Property Rights
associated with the Purchased Assets.

ARTICLE IX

INDEMNIFICATION

9.1 Survival of Representations and Warranties.

     (a) The representations and warranties of the Seller and Buyer contained in this Agreement,
any agreement or any other certificate or other document delivered in connection herewith or
therewith shall survive for a period of twelve (12) months after Closing. Any claim for
indemnification with respect to any of such matters which is not asserted by notice given as herein
provided relating thereto within such specified period of survival may not be pursued and is hereby
irrevocably waived after such time. Any claim for an Indemnifiable Loss asserted within such
period of survival as herein provided will be timely made for purposes hereof.

     (b) Unless a specified period is set forth in this Agreement (in which event such specified
period will control), the covenants in this Agreement will survive the Closing and remain in effect
indefinitely.

9.2 Limitations on Liability.

     (a) For purposes of this Agreement, (i) “Indemnity Payment” means any amount of Indemnifiable
Losses required to be paid pursuant to this Agreement, (ii) “Indemnitee” means any person entitled
to indemnification under this Agreement, (iii) “Indemnifying Party” means any person required to
provide indemnification under this Agreement, (iv) “Indemnifiable Losses” means any and all
damages, losses, liabilities, obligations, costs and expenses, and any and all claims, demands or
suits (by any person, including without limitation any governmental entity), including without
limitation the costs and expenses of any and all actions, suits, proceedings, demands, assessments,
judgments, settlements and compromises relating thereto and including reasonable attorneys’ fees
and expenses in connection therewith, and (v) “Third Party Claim” means any claim, action or
proceeding made or brought by any person who or which is not a party to this Agreement or an
affiliate of a party to this Agreement.

     (b) With respect to Buyer’s Indemnifiable Losses relating to, or incurred as a result of, (i)
a breach of the representations and warranties of the Seller set forth in Sections 5.1(a), 5.1(b),
5.1(c), 5.1(d), and 5.2, the maximum amount for which Buyer shall be indemnified pursuant to the
terms of this Article IX shall be the Purchase Price. The maximum amount that Buyer shall be
indemnified hereunder for Indemnifiable Losses arising out of or related to a

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claim for indemnification pursuant to Section 9.3(a)(i) for a breach of any other
representation in Article V shall be $350,000.00.

     (c) Buyer may not seek payment for its Indemnifiable Losses pursuant to claims for
indemnification under Section 9.3(a)(i) unless and until such losses have exceeded $25,000. Upon
the occurrence of such Indemnifiable Losses exceeding $25,000, Buyer is entitled to seek payment
directly from the Seller as provided herein, for the entire amount of such excess.

     (d) The parties will, to the extent permitted by law, treat any payment or receipt of
Indemnifiable Losses or indemnification under this Article IX as an adjustment to the Purchase
Price on all Tax Returns.

     (e) The amount of any Indemnifiable Losses or Indemnity Payments payable pursuant to this
Article IX will be net of any insurance proceeds actually received by the Indemnitee in connection
with the circumstances giving rise to the claim but less the amount of any increase in the premiums
for the insurance policy or policies under which the payment of insurance proceeds was made and
which is attributable to the payment of such Indemnifiable Losses or Indemnity Payments.

     (f) Notwithstanding anything contained herein to the contrary, Seller shall be entitled to
satisfy any Indemnity Payment owed by it arising out of an Indemnifiable Loss pursuant to this
Article IX by delivering to Buyer an amount of Seller’s Common Stock equal to such Indemnity
Payment. For purposes of this Section 9.2(f), the computation of a share of Common Stock shall be
calculated as the greater of (x) $0.26 per share or (y) the average, for the five trading days
immediately preceding the date of the Indemnity Payment, of the daily mean of (a) the highest bid
price and (b) the highest ask price of the Common Stock.

9.3 Indemnification.

     (a) Subject to Sections 9.1 and 9.2, the Seller and each Security Holder, jointly and
severally, agrees to indemnify, defend and hold harmless Buyer and its directors, officers,
partners, employees, agents and representatives from and against any and all Indemnifiable Losses
actually suffered or incurred to the extent relating to, resulting from or arising out of:

     (i) any breach of representation or warranty of the Seller in Article V of this
Agreement or under any agreement, certificate or other document delivered pursuant hereto;

     (ii) any breach or nonfulfillment of any agreement or covenant of the Seller under the
terms of this Agreement or any other agreement delivered pursuant hereto;

     (iii) the ownership, operation, maintenance or utilization of the Purchased Assets or
the Business prior to the Closing Date; and

     (iv) the payment and performance of any Excluded Liabilities.

     (b) Buyer agrees to indemnify, defend and hold harmless the Seller and its directors,
officers, partners, employees, agents or representatives from and against any and all

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Indemnifiable Losses to the extent relating to, resulting from or arising out of any breach of
representation or warranty of Buyer under Article VI this Agreement or under any agreement,
certificate or other document delivered pursuant hereto.

9.4 Defense of Claims.

     (a) If any Indemnitee receives notice of assertion or commencement of any Third Party Claim
against such Indemnitee with respect to which an Indemnifying Party is obligated to provide
indemnification under this Agreement, the Indemnitee will give such Indemnifying Party reasonably
prompt written notice thereof, but in any event not later than thirty (30) calendar days after
receipt of such notice of such Third Party Claim. Such notice will describe the Third Party Claim
in reasonable detail, will include copies of all material written evidence thereof and will
indicate the estimated amount, if reasonably practicable, of the Indemnifiable Loss that has been
or may be sustained by the Indemnitee. The Indemnifying Party will have the right to participate
in, or, by giving written notice to the Indemnitee, to assume, the defense of any Third Party Claim
at such Indemnifying Party’s own expense and by such Indemnifying Party’s own counsel (reasonably
satisfactory to the Indemnitee), and the Indemnitee will cooperate in good faith in such defense.

     (b) If, within ten (10) calendar days after giving notice of a Third Party Claim to an
Indemnifying Party pursuant to Section 9.4(a), an Indemnitee receives written notice from the
Indemnifying Party that the Indemnifying Party has elected to assume the defense of such Third
Party Claim as provided in the last sentence of Section 9.4(a), the Indemnifying Party will not be
liable for any legal expenses subsequently incurred by the Indemnitee in connection with the
defense thereof; provided, however, that if the Indemnifying Party fails to take reasonable steps
necessary to defend diligently such Third Party Claim within ten (10) calendar days after receiving
written notice from the Indemnitee that the Indemnitee believes the Indemnifying Party has failed
to take such steps or if the Indemnifying Party has not undertaken fully to indemnify the
Indemnitee in respect of all Indemnifiable Losses relating to the matter, the Indemnitee may assume
its own defense, and the Indemnifying Party will be liable for all reasonable costs or expenses
paid or incurred in connection therewith. Without the prior written consent of the Indemnitee, the
Indemnifying Party will not enter into any settlement of any Third Party Claim which would lead to
liability or create any financial or other obligation on the part of the Indemnitee for which the
Indemnitee is not entitled to indemnification hereunder. If a firm offer is made to settle a Third
Party Claim without leading to liability or the creation of a financial or other obligation on the
part of the Indemnitee for which the Indemnitee is not entitled to indemnification hereunder and
the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party will give
written notice to the Indemnitee to that effect. If the Indemnitee fails to consent to such firm
offer within ten (10) calendar days after its receipt of such notice, the Indemnitee may continue
to contest or defend such Third Party Claim and, in such event, the maximum liability of the
Indemnifying Party as to such Third Party Claim will not exceed the amount of such settlement
offer, plus costs and expenses paid or incurred by the Indemnitee through the end of such ten
calendar day period.

     (c) A failure to give timely notice or to include any specified information in any notice as
provided in Sections 9.4(a) or 9.4(b) will not affect the rights or obligations of any party
hereunder except and only to the extent that, as a result of such failure, any party which

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was entitled to receive such notice was deprived of its right to recover any payment under its
applicable insurance coverage or was otherwise damaged as a result of such failure.

     (d) The Indemnifying Party will have a period of thirty (30) calendar days within which to
respond in writing to any claim by an Indemnitee on account of an Indemnifiable Loss which does not
result from a Third Party Claim (a “Direct Claim”). If the Indemnifying Party does not so respond
within such thirty (30) calendar day period, the Indemnifying Party will be deemed to have rejected
such claim, in which event the Indemnitee will be free to pursue such remedies as may be available
to the Indemnitee on the terms and subject to the provisions of this Article IX.

ARTICLE X

EMPLOYMENT MATTERS

10.1 Russell Spiesser shall execute an employment agreement with WQN in substantially the same form
as attached hereto as Exhibit B dated as of even date herewith that contains customary
terms and conditions, including compensation equal to $7,000 per month and an annual bonus based on
the number of software licenses licensed by WQN during such period.

10.2 After the Closing, Buyer may, in its sole discretion, offer to employ former employees of the
Business, on terms that are mutually agreeable to Buyer and such employees.

ARTICLE XI

MISCELLANEOUS

11.1 Notices. Any notice, request, instruction, correspondence or other document to be
given hereunder by either party to the other (herein collectively called “Notice”) shall be in
writing and delivered in person or by courier service requiring acknowledgment of receipt of
delivery or mailed by certified mail, postage prepaid and return receipt requested, or by
telecopier, as follows:

          If to Seller, addressed to:

CleverByte, Inc.

Attn: Russell Spiesser

cleverbyte@internode.on.net

          If to Buyer, addressed to:

WQN, Inc.

Attn: B. Michael Adler

14911 Quorum Drive, Suite 140

Dallas, Texas 775254

Facsimile: 972.980.3739

          with a copy to:

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Patton Boggs LLP

Attn: David McLean

2001 Ross Avenue, Suite 3000

Dallas, Texas 75201

Facsimile: 214.758.1550

Notice given by personal delivery, courier service or mail shall be effective upon actual receipt.
Notice given by telecopier shall be confirmed by appropriate answer back and shall be effective
upon actual receipt if received during the recipient’s normal business hours, or at the beginning
of the recipient’s next business day after receipt if not received during the recipient’s normal
business hours. All Notices by telecopier shall be confirmed promptly after transmission in
writing by certified mail or personal delivery. Any party may change any address to which Notice
is to be given to it by giving Notice as provided above of such change of address.

11.2 Further Assurances. After the Closing, Seller shall execute, deliver and acknowledge
all such further instruments of transfer and conveyance, obtain such other releases and do and
perform all such other acts and things as Buyer may reasonably require to vest more effectively in
Buyer, and to put Buyer in possession of, the Assets, free and clear of any liens, claims, charges
or encumbrances.

11.3 Fees and Expenses. Each party hereto shall bear and pay all costs and expenses
(including, without limitation, finder’s or broker’s fees or commissions) incurred by it in
connection with the transactions contemplated by this Agreement.

11.4 Complete Agreement. This Agreement constitutes the entire agreement of the parties
relating to the transactions contemplated by this Agreement and supersedes all prior contracts or
agreements with respect to those matters, whether oral or written.

11.5 Assignment. This Agreement and any rights or duties hereunder shall not be assigned
by any party hereto without the consent of the other party hereto.

11.6 Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be deemed to be an original, and all of such counterparts together shall constitute but one
and the same instrument. This Agreement shall be effective upon receipt of each party of a duly
executed facsimile hereof. For purposes of this Agreement, facsimile, scanned, or digitally
transmitted signatures shall be deemed to be original signatures. In addition, if any of the
parties sign facsimile or scanned copies of this Agreement, such copies shall be deemed originals.

11.7 Governing Law. The provisions of this Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware (excluding any conflicts of law or other rule or
principle that might refer to the laws of another jurisdiction).

(The rest of this page is intentionally left blank. Signatures to follow.)

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     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its
authorized representative on its behalf as of the date first above written.

	 	 	 	 	 
	 	SELLER:

CLEVERBYTE, INC.

 	 
	 	By:  	/s/ Russell Spiesser	 
	 	 	Russell Spiesser, 	 
	 	 	Chief Executive Officer 	 
	 
	 	BUYER:

WQN, INC.

 	 
	 	By:  	/s/ B. Michael Adler 	 
	 	 	B. Michael Adler, 	 
	 	 	Chief Executive Officer 	 
	 

- 12 -exv10w2

 

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”), entered into this 11th day of May, 2007, by and
between WQN, INC., a Delaware corporation (the “Employer”), and RUSSELL SPIESSER (“Employee”).

WITNESSETH

     WHEREAS, the Employer desires to employ, and Employee desires to work for Employer;

     WHEREAS, the Employer desires to provide fair and reasonable benefits to Employee on the terms
and subject to the conditions set forth in this Agreement; and

     WHEREAS, the Employer desires reasonable protection of their confidential business and
customer information which they will develop over the years at substantial expense and assurance
that Employee will not compete with the Employer for a reasonable period of time after termination
of his employment with the Employer, except as otherwise provided herein.

     NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants and
undertakings herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, each intending to be legally bound,
covenant and agree as follows:

     1. Employment. Upon the terms and subject to the conditions set forth in this
Agreement, the Employer employs Employee as the Employer’s Chief Technology Officer and Employee
accepts such employment.

     2. Positions. Employee agrees to serve as the Employer’s Chief Technology Officer and
to perform such duties in those offices as may reasonably be assigned to him by the Employer’s
Board of Directors not inconsistent with the nature of Employee’s position and such duties which
are of the character as those generally associated with such officer’s title.

     3. Term. The term of this Agreement shall begin on May 10, 2007 (the “Effective
Date”) and shall end on the date which is one (1) year following such date; provided, however, that
such term shall be extended automatically for an additional year on each anniversary of the
Effective Date, unless either party hereto gives sixty (60) days written notice to the other party
not to so extend prior to an anniversary (such term, including any extension thereof shall herein
be referred to as the “Term”). Notwithstanding the foregoing, this Agreement shall automatically
terminate (and the Term of this Agreement shall thereupon end) without notice when Employee attains
65 years of age.

     4. Salary. Employee shall receive a monthly minimum salary of Seven Thousand Dollars
($7,000.00) (“Base Compensation”) payable at regular intervals in accordance with the

 

 

Employer’s
normal payroll practices in effect from time to time. Employee shall be entitled to
receive a bonus of Twenty-Five Thousand Dollars U.S. ($25,000.00) per every One Million
Dollars U.S. ($1,000,000.00) up to a total of Five Million Dollars U.S. ($5,000,000.00) of annual
gross revenue generated by Employer as a result of software licenses related to the software
program “My Nabyoo” that Employer licenses during such period (the “Software Revenue”), and a bonus
of Fifty Thousand Dollars U.S. ($50,000.00) per every One Million Dollars U.S. ($1,000,000.00) of
Software Revenue in excess of Five Million Dollars U.S. ($5,000,000.00) of Software Revenue up to
total of Ten Million Dollars U.S. ($10,000,000.00) of Software Revenue. Additionally, Employee
will be eligible to participate in Employer’s stock option plan to the same extent as other
executives, officers and employees of Employer, and to receive stock options thereunder in such
amounts and at such times as the Board of Directors may determine in its discretion.

     5. Benefit Programs. During the term of this Agreement, Employee shall be entitled to
participate in or receive benefits (collectively, the “Benefits”) comparable to the other employees
of the Employer, if such benefits are offered by the Employer. The foregoing does not obligate the
Employer to provide benefits of any type.

     6. General Policies. All matters relating to the employment of Employee by the
Employer not specifically addressed in this Agreement shall be subject to the general policies
regarding employees of the Employer in effect from time to time.

     7. Termination. Subject to the respective continuing obligations of the parties,
Employee’s employment by the Employer may be terminated prior to the expiration of the Term of this
Agreement as follows:

     (a) The Employer, by action of its Board of Directors and upon written notice to Employee, may
terminate Employee’s employment with the Employer for cause. For purposes of this subsection
7(a), “cause” shall be defined as (i) Employee’s personal dishonesty of a material nature
affecting Employee’s ability to perform his duties under this Agreement, (ii) Employee’s
incompetence in the performance of his duties and obligations under this Agreement, (iii)
Employee’s willful misconduct or gross negligence, (iv) Employee’s breach of fiduciary duty
involving personal profit, (v) Employee’s intentional failure to perform stated duties, (vi)
Employee’s conviction of any criminal offense which involves dishonesty or breach of trust or
conviction of any felony, (vii) any requirement of a government agency or authority having
jurisdiction over the Employer, or (viii) any material violation by Employee of any material
provision or covenant of this Agreement not cured by Employee within thirty (30) days of Employee’s
receipt of notice from the Employer of such material violation.

     (b) The Employer, by action of its Board of Directors, may terminate Employee’s employment
with the Employer without cause at any time; provided, however, that the “date of termination” for
purposes of determining benefits payable to Employee under subsection 8(b) hereof shall be
the date 30 days after Employee receives written notice of such termination.

     (c) Employee, by written notice to the Employer, may terminate his employment with

WQN — Employment Agreement

2

 

the
Employer immediately for good reason. For purposes of this subsection 7(c), “good reason”
shall be defined as any material violation by the Employer of any material provision or covenant
of this Agreement.

     (d) Employee’s employment with Employer shall terminate in the event of Employee’s death or
disability. For purposes hereof, “disability” shall mean the physical or mental inability of
Employee to perform his obligations hereunder, provided that notice of any termination by the
Employer because of Employee’s “disability” shall have been given to Employee prior to the full
resumption by him of the performance of such duties.

     (e) Nothing contained in this Agreement shall impair, affect or change any requirements
otherwise imposed upon the Employer or Employee by applicable statute, law, rule, regulation or
other legal requirement, including, without limitation, Employee’s COBRA rights upon termination of
employment.

     8. Termination Payments. In the event of termination of Employee’s employment
pursuant to Section 7 hereof, compensation shall continue to be paid to Employee as
follows:

     (a) In the event of termination pursuant to subsection 7(a), compensation provided for
herein (including Base Compensation) shall continue to be paid, and Employee shall continue to
participate in the benefit, retirement, and compensation plans and other perquisites as provided in
Sections 5 and 6 hereof, for the lesser of (i) for a period of 3 months after the date set
forth in the notice of termination, or (ii) for a period up to the remaining Term. Any benefits
payable under insurance, health, retirement and bonus plans as a result of Employee’s participation
in such plans through such date shall be paid when due under those plans.

     (b) In the event of termination pursuant to subsection 7(b) or 7(c), compensation
provided for herein (including Base Compensation) at the rate in effect at the time of termination
shall continue to be paid to Employee and Employee shall continue to participate in the benefit,
retirement and compensation plans and other perquisites as provided in Sections 5 and 6
hereof, through the date of termination. Throughout the period during which Employee’s
compensation shall continue hereunder, the Employer shall continue to contribute the employer
portion toward the cost of such benefits and other perquisites in a manner consistent with the
applicable terms of the governing plan documents and if applicable, insurance contracts, and
otherwise in accordance with the procedures and policies in place prior to such termination through
the date such payments, benefit coverages and perquisites are to be continued hereunder. Payment
of compensation during this period, including Base Compensation, shall be made pursuant to the
applicable payroll practices then utilized by the Employer, and shall commence on the first payroll
payment date occurring after the date of termination of Employee’s employment.

     (c) In the event of termination pursuant to subsection 7(d), compensation provided for
herein (including Base Compensation) shall continue to be paid and Employee shall continue to
participate in the benefit, retirement, and compensation plans and other perquisites as provided in
Sections 5 and 6 hereof in a manner consistent with the applicable terms of the governing
plan documents, (i) in the event of Employee’s death, through the date of death, or (ii) in the
event of

WQN — Employment Agreement

3

 

Employee’s disability, through the date of proper notice of disability as required by
subsection 7(d). Any benefits payable under insurance, health, retirement and bonus plans
as a result of the Employer’s participation in such plans through such date shall be paid when due
under those
plans.

     9. Notice of Termination. Any termination of Employee’s employment with Employer as
contemplated by Section 7 hereof, except in the circumstances of Employee’s death, shall be
communicated by written “Notice of Termination” by the terminating party to the other party hereto.
Any “Notice of Termination” pursuant to subsections 7(a), 7(c) or 7(d) shall indicate the
specific provisions of this Agreement relied upon and shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for such termination.

     10. Regulatory Oversight. All obligations under this Agreement may be terminated
except to the extent determined that the continuation of the Agreement is necessary for the
continued operation of the Employer by order of any state or federal regulatory agency with
supervision of the Employer, unless stayed by appropriate proceedings, and the Employer shall be
under no obligation to perform any of its obligations hereunder if it is informed in writing by any
state or federal regulatory agency with supervision of the Employer that performance of its
obligations would constitute an unsafe or unsound business practice.

     11. Death. Should Employee die after termination of his employment with the Employer
while any amounts are payable to him hereunder, this Agreement shall inure to the benefit of and be
enforceable by Employee’s executors, administrators, heirs, distributees, devisees and legatees and
all amounts payable hereunder shall be paid in accordance with the terms of this Agreement to
Employee’s devisee, legatee or other designee or, if there is no such designee, to his estate.

     12. Notices. For purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have been given when delivered or
mailed by United States registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

	 	 	 	 	 
	 

	 	If to Employee:
	 	Russell Spiesser
	 

	 	 	 	cleverbyte@internode.on.net
	 
	 	 	 	 
	 

	 	If to the Employer:
	 	WQN, Inc.
	 

	 	 	 	Attn: B. Michael Adler
	 

	 	 	 	14911 Quorum Drive, Suite 140
	 

	 	 	 	Dallas, TX 75254
	 

	 	 	 	Facsimile: 972.980.3739

or to such other address as either party hereto may have furnished to the other party in writing in

WQN — Employment Agreement

4

 

accordance herewith, except that notices of change of address shall be effective only upon receipt.

     13. Governing Law. The validity, interpretation, and performance of this Agreement
shall be governed by the laws of the State of Texas, without reference to the choice of law
principles or rules thereof, except to the extent that federal law shall be deemed to apply.

     14. Modification. No provision of this agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing signed by the
Employer and Employee. No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a wavier of dissimilar provisions or conditions at the same or
any prior subsequent time. No agreements or representation, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.

     15. Validity. The invalidity or unenforceability of any provisions of this Agreement
shall not affect the validity or enforceability of any other provisions of this Agreement which
shall remain in full force and effect.

     16. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
agreement.

     17. Assignment. This Agreement is personal in nature and neither party hereto shall,
without consent of the other, assign or transfer this Agreement or any rights or obligations
hereunder except as provided in Section 11 above. Without limiting the foregoing,
Employee’s right to receive compensation hereunder shall not be assignable or transferable, whether
by pledge, creation of a security interest or otherwise, other than a transfer by his will or by
the laws of descent or distribution as set forth in Section 11 hereof, and in the event of
any attempted assignment or transfer contrary to this paragraph, Employer shall have no liability
to pay any amounts so attempted to be assigned or transferred.

     18. Enforcement. If any provision of this Agreement is invalid in part or in whole,
it will be deemed to have been amended, whether as to time, area covered or otherwise, as and to
the extent required for its validity under applicable law and, as so amended, will be enforceable.
The parties will execute all documents necessary to evidence such amendment.

     19. Arbitration. Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled by arbitration in accordance with the rules then
in effect of the district office of the American Arbitration Association (“AAA”) nearest to the
home office of the Employer, and judgment upon the award rendered may be entered in any court
having jurisdiction thereof, except to the extent that the parties may otherwise reach a mutual
settlement of such issue.

WQN — Employment Agreement

5

 

     20. Document Review. Employer and Employee hereby acknowledge and agree that each (i)
has read this Agreement in its entirety prior to executing it, (ii) understands the provisions and
effects of this Agreement, (iii) has consulted with such attorneys, accountants and financial and
other advisors as it or he has deemed appropriate in connection with their respective execution of
this Agreement, and (iv) has executed this Agreement voluntarily and knowingly. EMPLOYEE HEREBY
UNDERSTANDS, ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT HAS BEEN PREPARED BY LEGAL COUNSEL TO THE EMPLOYER AND THAT HE HAS
NOT RECEIVED ANY ADVICE, COUNSEL OR RECOMMENDATION WITH RESPECT TO THIS AGREEMENT FROM SUCH
COUNSEL.

     21. Entire Agreement This Agreement and the Employee Proprietary Information and
Inventions Agreement dated as of the date hereof together with any understanding or modifications
thereof as agreed to in writing by the parties, shall constitute the entire agreement between the
parties hereto.

[Signature page follows]

 WQN — Employment Agreement

6

 

     IN WITNESS WHEREOF, the parties have caused the Agreement to be executed and delivered as of
the date first written above.

	 	 	 	 	 	 	 
	 	 	EMPLOYER:	 	 
	 
	 	 	 	 	 	 
	 	 	WQN, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ B. Michael Adler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	B. Michael Adler,	 	 
	 

	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE:	 	 
	 
	 	 	 	 	 	 
	 
	 	/s/ Russell Spiesser	 	 
	 	 	 	 	 
	 	 	Russell Spiesser	 	 

[Signature Page to WQN Employment Agreement]

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