Document:

EX-10.1

Exhibit 10.1

AMENDMENT TO CREDIT AGREEMENT

This AMENDMENT TO CREDIT AGREEMENT (“Amendment”) is entered into as of January 31,
2006, among METHODE ELECTRONICS, INC., a Delaware corporation (the “Borrower”), each lender
party hereto (collectively, the “Lenders” and individually, a “Lender”), and BANK
OF AMERICA, N.A., as Administrative Agent, and L/C Issuer.

WHEREAS, the Borrower, the Lenders and Bank of America, N.A., as Administration Agent and L/C
Issuer are parties to that certain Credit Agreement, dated as of December 19, 2002 as amended (the
“Credit Agreement”) (terms defined in the Credit Agreement shall have the same respective meanings
when used herein);

WHEREAS, the Borrower has requested that the Lenders agree to amend the Credit Agreement in
certain respects, all as more fully hereinafter set forth; and

WHEREAS, the Lenders are willing to amend the Credit Agreement on the terms and conditions
contained herein;

In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I

AMENDMENT

1.01. Section 1.1 of the Credit Agreement is amended so that the definition of “Applicable
Rate” shall read in its entirety as follows:

“Applicable Rate” as to any Eurodollar Rate Loan, Letter of Credit or
Commitment Fee, means a margin per annum based on the Consolidated Debt to EBITDA
Ratio, as follows:

	 	 	 	 	 	 	 	 	 	 	 
	Pricing Level

	 	Consolidated Debt to EBITDA

Ratio
	 	Margin for

Eurodollar Rate

Loans and Letters

of Credit
	 	

Margin for

Commitment Fee

	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1

	 	> 2.00:1
	 	 	0.625	%	 	 	0.150	%
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	2

	 	> 1.00:1 but <= 2.00:1
	 	 	0.500	%	 	 	0.120	%
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	3

	 	<= 1.00:1
	 	 	0.375	%	 	 	0.080	%
	 

	 	 
	 	 	 	 	 	 	 	 

The Applicable Rate will be adjusted, based on the Consolidated Debt to EBITDA Ratio as of
the last day of each fiscal quarter, as reflected in the Compliance Certificate furnished
pursuant to subsection 6.02(b), such adjustment to occur on the first Business Day
immediately following the date such Compliance Certificate is delivered to the
Administrative Agent; provided, that if the Borrower fails to deliver a Compliance
Certificate by the date required pursuant to subsection 6.02(b), the margin in the top row
shall apply until such Compliance Certificate is delivered. Subject to the preceding
sentence, the Applicable Rate in effect from January 31, 2006 through the date of delivery
of the Compliance Certificate required by Section 6.02 for the fiscal quarter ending January
31, 2006 shall be determined based upon Pricing Level 3.

1.02. Section 1.1 of the Credit Agreement is amended so that the definition of “Audited
Financial Statements” shall read in its entirety as follows:

“Audited Financial Statements” means the audited consolidated balance sheet of
the Borrower and its Subsidiaries for the fiscal year ended April 30, 2005, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for
such fiscal year of the Borrower and its Subsidiaries.

1.03. Section 1.1 of the Credit Agreement is amended by adding a definition of Equity
Issuance, as follows:

“Equity Issuance” means any issuance or sale by any Borrower or any Subsidiary
of any shares of capital stock or other equity securities of any such person or any
obligations convertible into or exchangeable for, or giving any person a right, option or
warrant to acquire such securities or such convertible or exchangeable obligations, except
in each case for (a) any issuance or sale to any Borrower or any Subsidiary, (b) any
issuance of directors’ qualifying shares, and (c) sales or issuance of common stock to
management or employees of any Borrower or any Subsidiary under any employee stock option
plan, restricted stock plan, stock purchase plan, retirement plan, deferred compensation
plan or other employee benefit plan in existence from time to time.

1.04. Section 1.1 of the Credit Agreement is amended so that the definition of “Maturity Date”
shall read in its entirety as follows:

“Maturity Date” means (a) January 31, 2011, or (b) such earlier date
upon which the Aggregate Commitments may be terminated in accordance with the terms
hereof.

1.05. Section 1.1 of the Credit Agreement is amended by adding a definition of “Consolidated
Debt to EBITDA Ratio” as follows:

“Consolidated Debt to EBITDA Ratio” means as of any date of
determination, the ratio of (i) total consolidated Indebtedness of the Borrower on
such date to (ii) Consolidated EBITDA for the most recent period of four consecutive
fiscal quarters then ended.

1.06. Section 1.1 of the Credit Agreement is amended so that the definition of “Consolidated
Fixed Charge Coverage Ratio” shall read in its entirety as follows:

"Consolidated Fixed Charge Coverage Ratio” means as of any date of
determination, the ratio of:

(a) Consolidated EBITDA for the period of the four fiscal quarters then most
recently ended, less (i) Consolidated Capital Expenditures for such period, less
(ii) income and franchise taxes paid or required to be paid in cash by the Borrower
and its Subsidiaries on a consolidated basis during such period, less (iii) the
aggregate of all dividends of the Borrower paid during such period, less (iv) the
aggregate purchase price paid during such period for all Share Repurchases pursuant
to Section 7.07(e), to

(b) Consolidated Interest Charges paid or required to be paid in respect of
such period, plus all scheduled payments of principal made or required to be made
with respect to all Indebtedness (including the principal portion of capital leases)
of the Borrower and its Subsidiaries on a consolidated basis during such period.

1.07. Section 1.1 of the Credit Agreement is amended by deleting the definition of “Class B
Share Repurchase.”

1.08. Section 2.08(a) of the Credit Agreement is amended to read in its entirety as follows:

(a) “Commitment Fee”. The Borrower shall pay to the Administrative Agent for
the account of each Lender in accordance with its Pro Rata Share, a commitment fee equal to
the Applicable Rate per annum times the actual daily amount by which the Aggregate
Commitments exceed the sum of (i) the Outstanding Amount of Loans and (ii) the Outstanding
Amount of L/C Obligations. The commitment fee shall accrue at all times from the Closing
Date until the Maturity Date and shall be due and payable quarterly in arrears on the last
Business Day of each March, June, September and December, commencing with the first such
date to occur after the Closing Date, and on the Maturity Date. The commitment fee shall be
calculated quarterly in arrears. The commitment fee shall accrue at all times, including at
any time during which one or more of the conditions in Article IV is not met.

1.09. Section 7.01 of the Credit Agreement is amended so that Section 7.01(i) shall read in
its entirety as follows:

(i) liens securing Indebtedness in respect of capital leases, Synthetic Lease
Obligations and purchase money obligations for fixed or capital assets, provided that (i)
such Liens do not at any time encumber any property other than the property financed by such
Indebtedness, (ii) the Indebtedness secured thereby does not exceed the cost or fair market
value, whichever is lower, of the property being acquired on the date of acquisition, and
(ii) such Indebtedness shall not exceed the limit specified in Section 7.03(e)(i).

1.10. Section 7.01 of the Credit Agreement is amended by substituting “, and” for the period
at the end of clause (j) and adding a new clause (k) as follows:

(k) liens on the assets of Foreign Subsidiaries of the Borrower securing Indebtedness
of such Foreign Subsidiaries, provided that the aggregate Indebtedness secured thereby does
not exceed the limit specified in Section 7.03(e)(ii).

1.11. Section 7.03(e) of the Credit Agreement is amended to read in its entirety as follows:

(e) Indebtedness not exceeding $50,000,000 in the aggregate, provided, however, that
(i) the aggregate Indebtedness which is represented by capital leases, Synthetic Leases or
purchase money obligations and secured by Liens permitted under Section 7.01(i) shall not
exceed $5,000,000, and (ii) the aggregate Indebtedness of Foreign Subsidiaries which is
secured by Liens permitted under Section 7.01(k) shall not exceed $25,000,000;

1.12. Section 7.07(e) of the Credit Agreement is amended to read in its entirety as follows:

(e) the Borrower may purchase or otherwise acquire shares of its capital stock or
warrants, rights or options to acquire any such shares for cash (individually, a “Share
Repurchase” and collectively, the “Share Repurchases”), provided that (1) any shares
of the Borrower’s capital stock, warrants, rights or options so purchased or acquired shall
be retired concurrently with such purchase or acquisition (or held by the Borrower
thereafter as treasury shares), and (2) immediately before and after giving effect to any
such Share Repurchase pursuant to this Section 7.07(e), no Default or Event of Default would
exist.

1.13. Section 7.13 of the Credit Agreement is amended to read in its entirety as follows:

7.13 Financial Covenants.

(a) Consolidated Net Worth. Permit Consolidated Net Worth as of the
end of any fiscal quarter of the Borrower to be less than the sum of (a)
$241,000,000, plus (b) an amount equal to 50% of the Consolidated Net Income earned
in each fiscal quarter ending after October 31, 2005 (with no deduction for a net
loss in any such fiscal quarter), plus (c) an amount equal to 100% of the aggregate
cumulative net proceeds of any Equity Issuance after October 31, 2005.

(b) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated
Fixed charge Coverage Ratio as of the end of any fiscal quarter of the Borrower to
be less than 1.50:1.00.

(c) Consolidated Debt to EBITDA Ratio. Not permit its Consolidated
Debt to EBITDA Ratio to exceed 2.50:1.

1.14. The Credit Agreement is further amended so that Schedules 2.01, 5.06, 5.09, 5.13, 5.16,
7.01, 7.02, 7.03 and 7.06 shall read in their entirety as set forth in the corresponding Schedules
attached hereto.

1.15. The Credit Agreement is further amended so that Exhibit C, Schedule 2 shall read in its
entirety as set forth in Schedule 2 attached hereto:

ARTICLE II

REPRESENTATIONS AND WARRANTIES

The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that:

2.01. The representations and warranties of the Borrower set forth in Article V of the Credit
Agreement are true and correct as of the date hereof as though made on the date hereof and as
though applied to the Credit Agreement as amended by this Amendment (except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this Section 2.01, the
representations and warranties contained in Section 5.05(a) and (b) of the Credit Agreement shall
be deemed to refer to the most recent statements furnished pursuant to Section 6.01 (a) and (b) of
the Credit Agreement).

2.02. No Default or Event of Default has occurred and is continuing.

ARTICLE III

CONDITIONS PRECEDENT

This Amendment shall become effective as of the date (the “Effective Date”), of receipt by the
Administrative Agent of all of the following in form and substance satisfactory to the
Administrative Agent:

3.01. counterparts of this Amendment (or an executed facsimile copy hereof), executed by the
Borrower and the Banks;

3.02. a replacement Note in the form attached to this Amendment;

3.03. a Guaranty Supplement in the form attached to this Amendment;

3.04. evidence of the payment to the Administrative Agent in immediately available funds of
all reasonable legal fees and expenses of the Administrative Agent to the extent theretofore
invoiced;

3.05. a certificate of the Secretary or the Assistant Secretary each of the Borrower and its
Domestic Subsidiaries as to resolutions, and the signatures and incumbency of officers authorized
to sign this Amendment; and

3.06. an opinion of counsel to the Borrower confirming matters previously addressed in the
opinion furnished pursuant to Section 4.01(a)(vi) of the Credit Agreement as modified by this
Amendment; and

3.07. such other documents as the Administrative Agent shall require.

ARTICLE IV

GENERAL

4.01. As amended or modified by this Amendment, the Loan Documents shall remain in full force
and effect. References to the Credit Agreement in any of the Loan Documents shall be deemed to
include a reference to the Credit Agreement as amended or modified hereby, whether or not reference
is made to this Amendment. Section headings used in this Amendment are for convenience of
reference only, and shall not affect the construction of this Amendment.

4.02. This Amendment may be executed in any number of counterparts (each of which shall be
deemed an original, but all such counterparts together shall constitute but one and the same
instrument).

4.03. The Borrower agrees to pay to or reimburse the Administrative Agent, upon demand, for
all reasonable costs and expenses incurred (including legal expenses) in connection with the
development, preparation, negotiation, execution and delivery of this Amendment.

4.04. All obligations of the Borrower and rights of the Administrative Agent and the Lenders,
that are expressed herein, shall be in addition to and not in limitation to those provided by
applicable law. This Amendment shall be a contract made under and governed by the internal laws of
the State of Illinois, without giving effect to principles of conflicts of laws. Whenever
possible, each provision of this Amendment shall be interpreted in such manner as to be effective
and valid under applicable law; but if any provision of this Amendment shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the remaining provisions of
this Amendment.

4.05. The Borrower acknowledges and agrees that the execution and delivery by the
Administrative Agent and the Lenders of this Amendment shall not be deemed to create a course of
dealing or otherwise obligate the Lenders to forbear or execute similar amendments under the same
or similar circumstances in the future.

4.06. This Amendment shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. No third party beneficiaries are intended in connection
with this Amendment.

4.07. This Amendment, together with the Credit Agreement, contains the entire and exclusive
agreement of the parties hereto with reference to the matters discussed herein and therein. This
Amendment supercedes all prior drafts and communications with respect hereto. This Amendment may
not be amended except in accordance with the provisions of Section 10.1 of the Credit Agreement.

[Signature Page Follows]

1

IN WITNESS WHEREOF, each parties hereto have caused this Agreement to be duly executed
as of the date first above written.

METHODE ELECTRONICS, INC.

By: /s/ Douglas A. Koman

Name: Douglas A. Koman

Title: Vice President

        .

BANK OF AMERICA, N.A., as Administrative Agent

By: /s/ David A. Johanson

Name: David A. Johanson

Title: Vice President

        .

BANK OF AMERICA, N.A., as a Lender, and L/C Issuer

By: /s/ Chris D. Buckner

Name: Chris D. Buckner

Title: Senior Vice President

2

ACKNOWLEDGEMENT

The undersigned hereby acknowledges and agrees to the foregoing Amendment and confirms that
its Loan Documents remain in full force and effect and are hereby reaffirmed.

ABAS, INC.

By: /s/ Douglas A. Koman

Name: Douglas A. Koman

Title: Vice President

AUTOMOTIVE SAFETY TECHNOLOGIES, INC.

By: /s/ Douglas A. Koman

Name Douglas A. Koman

Title: Vice President

CABLECO TECHNOLOGIES, INC.

By: /s/ Douglas A. Koman

Name: Douglas A. Koman

Title: Vice President

DUEL SYSTEMS, INC.

By: /s/ Douglas A. Koman

Name:  Douglas A. Koman

Title: Vice President

KBA, INC.

By: /s/ Douglas A. Koman

Name: Douglas A. Koman

Title: Vice President

MAGNA-LASTIC DEVICES, INC.

By: /s/ Douglas A. Koman

Name: Douglas A. Koman

Title: Vice President

METHODE DELAWARE HOLDINGS, INC.

By: /s/ Douglas A. Koman

Name: Douglas A. Koman

Title: Vice President

3

METHODE DEVELOPMENT COMPANY

By: /s/ Douglas A. Koman

Name: Douglas A. Koman

Title: Vice President

METHODE ELECTRONICS CONNECTIVITY TECHNOLOGIES, INC.

By: /s/ Douglas A. Koman

Name: Douglas A. Koman

Title: Vice President

4EX-10.1

Exhibit 10.1

CHIEF EXECUTIVE EMPLOYMENT AGREEMENT

THIS CHIEF EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is entered into effective as of
September 13, 2005 by and between CTI GROUP (HOLDINGS), INC., a Delaware corporation (the
“Corporation”), having its principal place of business at 333 N. Alabama Street, Suite 240,
Indianapolis, Indiana 46204 and JOHN BIRBECK (“Employee”), whose address is 64 Frieth Road, Marlow
Bucks, SL7 2QU UK.

Background

The Corporation desires to employ the Employee and Employee desires to be employed by the
Corporation on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
hereinafter set forth, the parties hereto, intending to be legally bound hereby, agree as follows:

Section 1. Employment and Duties.

(a) Upon the terms and conditions set forth herein, the Corporation hereby agrees to employ
the Employee, and the Employee agrees to accept such employment and to perform his duties and
responsibilities hereunder. Employee shall serve as the President and Chief Executive Officer of
the Corporation and in such positions as reasonably may be assigned by the Board of Directors of
the Corporation (the “Board”) or the Executive Committee of the Board (the “Executive Committee”).
In the performance of services hereunder, Employee shall devote his best efforts and essentially
all of his time during normal business hours to the business of the Corporation, subject to
vacations and sick leave. Employee shall, subject to the direction of the Board or the Executive
Committee, have, such authority and perform such duties and functions incidental to the position
that he holds with the Corporation or such other duties and functions as may from time to time be
assigned to him by the Board. Employee’s responsibilities will include, without limitation, the
duties and responsibilities customarily associated with a Chief Executive Officer and Executive
Committee. Employee shall cooperate fully with the Board, the Executive Committee and the other
executive officers of the Corporation. Employee shall also be available to assist subsidiaries and
affiliates of the Corporation. Employee shall not engage in any other business activity during the
term of this Agreement which may interfere with his ability to discharge his duties and
responsibilities to the Corporation.

(b) Employee represents to the Corporation that he is not subject or a party to any employment
agreement, non-competition covenant, non-disclosure agreement or other agreement, covenant,
understanding or restriction which would prohibit Employee from executing this Agreement and
performing fully his duties and responsibilities hereunder, or which would in any manner, directly
or indirectly, limit or affect the duties and responsibilities which may now or in the future be
assigned to Employee by the Corporation.

Section 2. Employment Term. Unless sooner terminated in accordance with the
provisions of this Agreement, the term of this Agreement shall commence on September 13, 2005 and
shall continue for one year and thereafter shall continue for additional one-year periods unless
either party gives the other party written notice of non-renewal at least 90 days prior to any
anniversary date of this Agreement. As used herein, the term “Employment Term” shall refer to the
foregoing period.

Section 3. Compensation. For all services rendered by the Employee under this
Agreement, the Corporation shall pay Employee an annual salary (the “Salary”) at the rate of
$275,000 for the Employment Term, less withholding required by law or agreed to by Employee,
payable in accordance with the Corporation’s customary and usual payroll practice for its
employees. The Corporation agrees that the Salary will be reviewed at least annually by the Board
to determine if an increase is appropriate, which increase shall be in the sole discretion of the
Board. The Salary shall not be decreased during the Employment Term. Employee agrees that he will
waive any fee payable to him for his services as Chairman of the Board of Directors.

Section 4. Bonus and Additional Benefits.

(a) Bonus. No later than January 31 of each calendar year that Employee is employed by the
Corporation pursuant to this Agreement, beginning January 1, 2006, Employee and the Corporation’s
Board of Directors will confer and agree on targets and/or goals to be achieved for that calendar
year and the amount of bonus to be paid to Employee depending on the extent of attainment of such
targets and/or goals. The agreement reached by Employee and the Board shall be attached as an
addendum to this Agreement each calendar year. The parties agree that the amount of bonus payable
to Employee for full achievement of all targets and/or goals in any calendar year shall be no less
than $250,000 and may exceed that amount if deemed appropriate by the Board in its sole discretion.
In the event that Employee’s employment with the Corporation ends during the course of a calendar
year, Employee shall be eligible for a pro rata amount of the bonus he would have received (if any)
if he had remained employed for the full calendar year. For the period September 13, 2005 through
December 31, 2005, the Corporation shall pay Employee a bonus in the amount of $62,500. All bonus
payments shall be made to Employee by the end of January of the year following the year for which
the bonus is payable. Any such Bonus shall be in lieu of any cash or other bonuses provided by the
Corporation to its employees or senior executives generally, and Employee shall not be entitled to
any such cash or other bonuses.

(b) Additional Benefits. Employee shall be entitled to five (5) weeks (25 working days) of
paid vacation per year, with no right to carry over vacation to the next year, but unused vacation
may be sold back to the Corporation.

Employee shall be paid a non-accountable automobile allowance of $500 per month for each full
month during the Employment Term, payable in accordance with the Corporation’s customary and usual
payroll practices for its employees.

During the period that Employee is employed by the Corporation pursuant to this Agreement, the
Corporation will provide Ms. Amanda Powell with economy class air fare for up to 12 round trips
from the United States to the United Kingdom each full calendar year (and a pro rata number of such
trips for any partial calendar year of such employment), and will reimburse her for the amount she
pays to obtain health insurance coverage for herself (up to the amount the Corporation pays for
individual coverage for the Corporation’s employees).

The Corporation will reimburse Employee for the amount he pays for temporary apartment rental
(not to exceed $1,800.00 per month without the prior approval of the Corporation) until such time
as Employee has made arrangements for permanent housing or for six months, whichever is less.
Employee shall also be paid a furnishing and household goods allowance in the amount of $12,000.
In the event that Employee moves his household goods from the United Kingdom to the United States,
he will be reimbursed for the lesser of his actual reasonable relocation expenses associated with
such move or $80,000.

Section 5. Fringe Benefits. Except as set forth in Section 4, Employee shall be
entitled to all normal and usual benefits (including health insurance) provided by the Corporation
to its senior executives generally, including, but not limited to reimbursement for reasonable
expenses incurred in connection with performing services for the Corporation upon presentation of
an itemized account and written proof of such expenses in accordance with policies established by
the Corporation and participation in any health or hospitalization plans. This provision shall not
obligate the Corporation to provide any specific benefits and shall not prohibit the Corporation
from changing such benefits. Employee alone shall be responsible for the payment of all federal,
state and local taxes in respect of payments to be made and benefits to be provided under this
Agreement.

Section 6. Stock Options. The Corporation shall grant to Employee, no later than 30
days after the effective date of this Agreement, a stock option to purchase 500,000 shares of Class
A common stock of the Corporation on the date of the grant, which shares of such grant shall vest
on the date of the grant. The Corporation shall grant to Employee a stock option to purchase an
additional 250,000 shares of Class A common stock of the Corporation on September 13, 2006 and
another 250,000 shares of Class A common stock of the Corporation on September 13, 2007, which
shares of such grants shall vest on the dates of the grants (provided that Employee is employed as
Chief Executive Officer and President of the Corporation on each of said vesting dates). The
exercise price per share for each such option shall be the fair market value of the common stock of
the Corporation on the dates of each of the grants.

Section 7. Confidential Information. For purposes of this Section 7, Confidential
Information shall mean all confidential and proprietary technical, business and financial
information of the Corporation and its affiliates, including, but not limited to, marketing and
financial information, personnel, sales and statistical data, plans for future development,
computer programs, information and knowledge pertaining to products and services offered,
inventions, innovations, designs, ideas, plans, trade secrets, proprietary information,
construction, advertising, sales methods and systems, sales and profit figures, customer and client
lists, and relationships between the Corporation and its affiliates, customers, clients, suppliers
and others who have business dealings with the Corporation and its affiliates, information with
respect to various techniques, procedures, processes and methods and any other information
acquired, learned, used or developed by Employee or others during his employment by the
Corporation. Employee recognizes and acknowledges that by reason of his employment by and service
to the Corporation (both during the Employment Term and before or after it), he has had and will
continue to have access to Confidential Information. Employee acknowledges that such Confidential
Information is a valuable and unique asset and Employee agrees that he will not, either during or
after his employment by the corporation, use any Confidential Information for his own commercial
benefit or the benefit of others nor disclose any Confidential Information to any person, firm or
corporation not connected with the Corporation for any reason whatsoever except as his duties
hereunder may require or as authorized in writing by the Board or the Executive Committee.
However, Employee shall be relieved of his responsibilities under this Section 7 with respect to
any Confidential Information which is in the public domain through no fault of Employee. All
documents, magnetic media and other materials containing Confidential Information made or compiled
by or made available to Employee during the course of his employment, and all copies thereof, are
and shall be the property of the Corporation and shall be delivered to the Corporation by Employee
immediately upon the conclusion of his employment.

Section 8. Inventions and Ideas; Ownership of Work Product.

(a) All work produced by Employee in the course of his employment under this Agreement
including, without limitation, all inventions, creations, expressions, improvements, computer
programs, specifications, operating instructions and all other documentation, whether copyrightable
or uncopyrightable, or patentable or unpatentable, which are first conceived, made or otherwise
originated or acquired, or first actually or constructively reduced to practice during his
employment by the Corporation or within six (6) months following expiration or termination hereof,
whether preliminary or final, and on whatever media rendered (collectively, the “Work Product”),
shall be deemed work made for hire and made in the course of services rendered for the Corporation
and shall be the sole and exclusive property of the Corporation. The Corporation shall have the
sole, absolute and unlimited right throughout the world to protect by patent or copyright, and to
make, have made, use, reconstruct, repair, modify, reproduce, publish, distribute and sell the Work
Product, in whole or in part, or combine the Work Product with other matter, or not use the Work
Product at all, as it sees fit.

(b) To the extent that title to the Work Product may not, by operation of law, vest in the
Corporation, or such Work Product may not be considered to be work made for hire, the Employee
hereby irrevocably agrees to transfer and assign to the Corporation in perpetuity all worldwide
right, title and interest in and to the patent rights, copyrights, trade secrets and other
proprietary rights (including, without limitation, applications for registration thereof, and all
priority rights therein under applicable international conventions for the protection of such
rights) in, and ownership of, the Work Product that the Employee may have, as and when such rights
arise.

(c) Employee hereby agrees, without cost to the Corporation other than reimbursement of
reasonable expenses, to cooperate fully with the Corporation in executing all applications for
patents, copyrights, assignments and other documents, papers and writing and to perform all acts
and do all things necessary to protect or vest the Corporation’s rights in or to the Work Product,
whether during the term of his employment or at anytime thereafter. If the Corporation is unable,
after reasonable effort, to secure Employee’s signature on any documents or documents needed to
apply for or prosecute any patent, copyright, or right or protection relating to any Work Product,
whether because of Employee’s physical or mental incapacity or for, any other reason whatsoever,
Employee hereby irrevocably designates and appoints the Corporation and its duly authorized
officers and agents as Employee’s agent and attorney-in-fact, to act for and in his behalf and
stead to execute and file any such application or applications and to do all other lawfully
permitted acts to further the prosecution and issuance of patents, copyrights, or similar
protections thereon with the same legal force and effect as if executed by Employee.

Section 9. Non-Competition.

(a) During his employment by the Corporation and for a period of 90 days after the employment
of Employee by the Corporation or any of its affiliates has ended (whether or not such employment
is pursuant to this Agreement), Employee will not, directly or indirectly: (i) anywhere in the
world own, manage, operate, join, control, finance or participate in the ownership, management,
operation, control or financing of, render financial assistance to, or be connected as an officer,
director, employee, partner, principal, agent, representative, consultant or otherwise with or use
or permit his name to be used in connection with, any competing business; (ii) contact or attempt
to persuade any agents or employees of the Corporation or any of its affiliates to terminate their
relationship with the Corporation or any of its affiliates, nor do any act which may result in the
impairment of the relationship between the Corporation or any of its affiliates and its agents or
employees; or (iii) in anyway, for his own account, or for the account of any person, firm,
corporation or enterprise engaged in a competing business, directly or indirectly through others,
sell to, solicit, contact, serve, or cater to any person, firm, corporation or other enterprise
which is or was a customer of the Corporation during his employment by the Corporation, regardless
of the time when, or the person by or through whom, said customer became a customer of the
Corporation; provided, however, that nothing in this Section 9 shall prohibit Employee from owning
interests of less than one percent (1%) in companies with securities traded on a national
securities exchange or quoted on the National Association of Securities Dealers, Inc. Automated
Quotation System.

(b) The parties acknowledge and agree that, for purposes of this Section 9, a “competing
business”, on the date hereof is the development, marketing, support and sale of data processing
software (which data processing software directly competes with Corporation’s data processing
software) and telecommunication systems management, traditional paper billing, electronic billing,
rating, printing and mailing services.

(c) Employee acknowledges and agrees that the geographical area in which the Corporation
conducts its business is worldwide.

Section 10. Equitable Relief.

(a) Employee acknowledges that the restrictions contained in Sections 7, 8 and 9 hereof are
reasonable and necessary to protect the legitimate interests of the Corporation and its affiliates,
that the Corporation would not have entered into this Agreement in the absence of such
restrictions, and that any violation of any provision of those Sections will result in irreparable
injury to the Corporation. Employee represents that his experience and capabilities are such that
the restrictions contained in Section 9 hereof will not prevent Employee from obtaining employment
or otherwise earning a living at the same general level of economic benefit as anticipated by this
Agreement. Employee further represents and acknowledges that (i) he has been advised by his own
independent legal counsel in respect of this Agreement, and (ii) that he has had full opportunity,
prior to execution of this Agreement, to review thoroughly this Agreement with his counsel.

(b) Employee agrees that the Corporation shall be entitled to preliminary and permanent
injunctive relief, without the necessity of proving actual damages, as well as an equitable
accounting of all earnings, profits and other benefits arising from any violation of Sections 7, 8
and 9 hereof, which rights shall be cumulative and in addition to any other rights or remedies to
which the Corporation may be entitled. In the event that any of the provisions of Sections 7, 8
and 9 hereof should ever be adjudicated to exceed the time, geographic, product or service, or
other limitations permitted by applicable law in any jurisdiction; then such provisions shall be
deemed reformed in such jurisdiction to the maximum time, geographic, product or service, or other
limitations permitted by applicable law.

Section 11. Termination.

(a) The Employee’s employment pursuant to this Agreement shall be terminated during the
Employment Term only as follows:

(i) at anytime by Employee, by Employee giving written notice of his voluntary
resignation to the Board at least 90 days before the resignation is to be effective;

(ii) at Will (as defined below) by the Corporation, by Corporation giving written
notice to the Employee at least 90 days before the termination is to be effective; or

(iii) immediately upon the Employee’s death or Disability (as defined below) or upon
mutual agreement of Employee and Corporation.

(b) “at Will” shall mean for any reason upon the majority vote of the Board or Executive
Committee at a duly constituted meeting of the Board or Executive Committee.

(c) “Disability” shall mean either the total and permanent disability or partial and permanent
disability of Employee due to illness or incapacity which prevents him from performing all or
substantially all of his duties and responsibilities hereunder for six months in any twelve month
period as determined by the Board of Directors or Executive Committee of the Corporation.

(d) In the event of the termination of this Agreement for any reason, Sections 7, 8 and 9
shall survive.

Section 12. Rights After Termination; Separation Pay.

(a) If Employee’s employment terminates pursuant to Section 11(a) or pursuant to notice by
either party pursuant to Section 2, the Corporation shall pay Employee all accrued and unpaid
Salary and benefits through the date of termination of employment (“Termination Date”) and unpaid
business expenses previously paid and reimbursable pursuant to Section 5 through the Termination
Date. Unless set forth in the remainder of this Section 12, Employee shall not be entitled to any
separation pay.

(b) If Employee’s employment terminates pursuant to Section 11(a)(ii), the Corporation shall
pay Employee as separation pay three months’ salary at Employee’s then current base annual salary
and an additional amount of the greater of $62,500 or 25% of the maximum annual bonus. As a
condition to receiving such separation pay under this Agreement, Employee shall execute a release
in a form satisfactory to the Corporation.

Section 13. Notices. All notices or other communications which may be or are required
to be given pursuant to this Agreement shall be in writing and shall be deemed to have been given,
if delivered personally, upon delivery, if sent by registered or certified mail postage prepaid,
two business days after mailing, or if sent by overnight mail, one business day after mailing, to
the other party at the address stated above, or such other address as either party may supply in
the future.

Section 14. Survival. Notwithstanding the expiration or termination of this Agreement
or his employment by the Corporation, the obligations of the Employee under Sections 7, 8 and 9
hereof shall survive and remain in full force and effect for the periods therein provided, and the
obligations of the Corporation to make all required payments hereunder shall survive and remain in
full force and effect.

Section 15. Governing Law. This Agreement shall be governed by and interpreted under
the laws of the State of Indiana without giving effect to any conflict of laws provisions.

Section 16. Contents of Agreement; Amendment and Assignment.

(a) This Agreement supersedes all prior agreements, letters or term sheets and sets forth the
entire understanding among the parties hereto with respect to the subject matter hereof and cannot
be changed, modified, extended or terminated except upon written amendment approved by the Board
and executed on its behalf by a duly authorized officer(s). Without limitation, nothing in this
Agreement shall be construed as giving Employee any right to be retained in the employ of the
Corporation beyond the expiration of the Employment Term, and Employee specifically acknowledges
that he shall be subject to discharge by the Corporation pursuant to the terms and conditions of
this Agreement.

(b) Employee acknowledges that from time to time, the Corporation may establish, maintain and
distribute employee manuals or handbooks or personnel policy manuals, and officers or other
representatives of the Corporation may make written or oral statements relating to personnel
policies and procedures. Such manuals, handbooks and statements are intended only for general
guidance. No policies, procedures or statements of any nature by or on behalf of the Corporation
(whether written or oral, and whether or not contained in any employee manual or handbook or
personnel policy manual), and no acts or practices of any nature, shall be construed to modify this
Agreement or to create express or implied obligations of any nature to Employee.

(c) All of the terms and provisions of this Agreement shall be binding upon and inure to the
benefit of and be enforceable by the respective heirs, executors, administrators, legal
representatives, successors and assigns of the parties hereto, except that the duties and
responsibilities of Employee hereunder are of a personal nature and shall not be assignable or
delegatable in whole or in part by Employee.

Section 17. Severability. If any provision of this Agreement or application thereof
to anyone or under any circumstances is adjudicated to be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect any other provision or
application of this Agreement which can be given effect without the invalid or unenforceable
provision or application and shall not invalidate or render unenforceable such provision or
application in any other jurisdiction.

Section 18. Remedies, Cumulative; No Waiver. No remedy conferred upon either party
hereto by this Agreement is intended to be exclusive of any other remedy, and each and every such
remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or
hereafter existing at law or in equity. No delay or omission by the Corporation in exercising any
right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver
thereof, and any such right, remedy or power may be exercised by the Corporation from time to time
and as often as maybe deemed expedient or necessary by the Corporation in its sole discretion.

Section 19. Miscellaneous. All section headings are for convenience only. This
Agreement may be executed in several counterparts, each of which is an original. It shall not be
necessary in making proof of this Agreement or any counterpart hereof to produce or account for any
of the other counterparts.

Section 20. Dispute Resolution; Arbitration. In the event a dispute between the
parties arises under this Agreement, the parties shall submit the dispute to binding arbitration
before a single arbitrator knowledgeable of the software industry in Indianapolis, Indiana, under
the Commercial Arbitration Rules of the American Arbitration Association, except that temporary
restraining orders or preliminary injunctions, or their equivalent, may be obtained from any court
of competent jurisdiction. The hearing proceedings in the arbitration shall be generally governed
by the Federal Rules of Civil Procedure, the Federal Rules of Evidence and the judicial precedent
interpreting those rules as the same may or may not be determined to be applicable and appropriate
by the arbitrator. The decision of the arbitrator shall be final and binding with respect to the
dispute subject to the arbitration and shall be enforceable in any court of competent jurisdiction.
Each party shall bear its own expenses, attorneys’ fees and costs incurred in such arbitration.
The arbitrator shall be required to provide written reasons for the arbitrator’s decision.

IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed
this Agreement.

/s/John Birbeck

John Birbeck, Employee

CTI GROUP (HOLDINGS), INC.

By: /s/ Rupert Armitage, 

Rupert Armitage, Director

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