Document:

Ex-10.1

 

Exhibit 10.01

Transaction Restructuring Agreement

     This is a Transaction Restructuring Agreement (this “Agreement”) by and
among (a) Daleen Technologies Inc., a Delaware corporation (“Daleen”), (b)
Daleen Holdings, Inc, a Delaware corporation (“Holdings”), (c) Parallel
Acquisition, Inc, a Delaware corporation, (“Acquisition Sub”), (d) Protek
Telecommunications Solutions Limited, a corporation organized under the laws of
England and Wales, whose principal place of business is located at 1 York Road,
Maidenhead, Berkshire, United Kingdom (“Protek”), (e) Paul A. Beaumont, Geoff
Butcher, Ian Watterson, Michael White, Michael Kersten and Barbara Krystyna
Kalinowska (each, a “Protek Seller”), (f) Quadrangle Capital Partners LP, a
Delaware limited partnership (“QCP”), Quadrangle Select Partners LP, a Delaware
limited partnership (“QSP”), Quadrangle Capital Partners-A LP, a Delaware
limited partnership (“QCP-A” and together with QCP and QSP, the “Quadrangle
Entities”), (g) Behrman Capital II, L.P., a Delaware limited partnership
(“Behrman”), (h) Strategic Entrepreneur Fund II, L.P., a Delaware limited
partnership (“SEF”), (i) Protek Network Management (UK) Limited, a company
formed under the laws of England and Wales, that is a wholly-owned subsidiary
of Protek and (j) Quadrangle Advisors LLC, a Delaware limited liability
company.

     Reference is made to the following agreements, each dated as of May 7,
2004: the Stock Purchase Agreement by and among Protek, the Protek Sellers and
Holdings (together with the exhibits and schedules thereto, the “Stock Purchase
Agreement”); the Investment Agreement by and among Holdings, the Quadrangle
Entities, Behrman and SEF (together with the exhibits and schedules thereto,
the “Investment Agreement”); the Agreement and Plan of Merger and Share
Exchange by and among Daleen, Holdings, Acquisition Sub, Behrman and SEF
(together with the exhibits and schedules thereto, the “Merger Agreement”); and
the Transaction Support Agreement by and among the Quadrangle Entities,
Behrman, SEF, Daleen, Holdings, Protek and certain of the Protek Sellers (the
"Transaction Support Agreement” and, together with the Stock Purchase
Agreement, the Merger Agreement and the Investment Agreement, the “Transaction
Agreements”). Capitalized terms used without further definition in this
Agreement have the meaning given to them in the respective Transaction
Agreement in respect of which such term is used below.

     This Agreement is intended to implement the agreed upon amendments to the
Transaction Agreements and related agreements referenced therein collectively
set forth in the Preliminary Proposed Term Sheet, dated as of September 24,
2004, referencing the Investment Agreement, the Merger Agreement and the
Transaction Support Agreement, by and among certain of the parties to this
Agreement (the “Daleen Term Sheet”) and in the Preliminary Proposed Term Sheet,
dated as of September 24, 2004, referencing the Stock Purchase Agreement by and
among certain of the parties to this Agreement (the “Protek Term Sheet,” and
collectively with the Daleen Term Sheet, the “Term Sheets”). Except as
expressly set forth in Section F below, upon execution and delivery of this
Agreement by all parties hereto, the Term Sheets shall be superceded and will
be of no further force or effect.

 

 

          In consideration of the foregoing premises and the mutual promises set
forth below, the undersigned parties hereby agree as follows:

     A. Modification of Stock Purchase Agreement. The Stock Purchase Agreement
is amended as follows:

          1. Section 3.1 of the Stock Purchase Agreement shall be deleted and
replaced in its entirety with the following:

     “Purchase Price. As full payment of the purchase price for (a) the
Shares and (b) the conversion of all options held by the Converting
Optionholders (the “Purchase Price”), Buyer shall, at Closing, (a)
deliver to the Selling Shareholders an aggregate of 166,414 shares of
Common Equity of Buyer (the “Common Equity Consideration”), to be
allocated among the Selling Shareholders and Converting Optionholders as
set forth on Exhibit J attached hereto, together with certificates
representing the same, the further transfer of which shall be restricted
under the United States Securities Act of 1933, as amended (the
“Securities Act”), (b) deliver $200,000 in cash to Butcher, and (c)
deliver to the Converting Optionholders fully vested options in respect
of an aggregate of 47,120 shares of the Common Equity of Buyer as set
forth on Exhibit J attached hereto. The parties hereto agree that each
share of Common Equity of Buyer shall be deemed, solely for purposes of
this Agreement, to have a value per share of Common Equity of $25.

     Twenty-four thousand (24,000) shares of the Common Equity Consideration
and shares of Common Equity of the Buyer underlying the fully-vested
options shall not be distributed at Closing and shall be held by Daleen
Holdings for release upon receipt of cash under certain arrangements as
set forth on Exhibit J-1 attached hereto. Upon receipt of any amounts
(as a result of full or partial payment) referenced on Exhibit J-1,
shares of, and options to acquire, Daleen Holdings’ Common Stock (valued
as set forth above) representing the dollar value of the cash so received
(based on the exchange rate at that time) shall be distributed amongst
the Sellers pro rata in accordance with the “Escrow Equity” set forth
beside each such Sellers’ name on Exhibit J. No fractional shares or
options to purchase fractional shares shall be distributed pursuant to
the foregoing and any such fractional shares shall be subject to
distribution upon the next distribution event. Upon receipt of all
amounts by September 24, 2005, all such “Escrow Equity” set forth beside
the name of each such Seller on Exhibit J attached hereto shall be
released without regard to aggregate dollar values of cash so received.
If any amounts set forth on Exhibit J-1 attached hereto are not received
by September 24, 2005, Common Equity Consideration and options to acquire
Common Equity of the Buyer with a value equal to the amounts so not
received, pro rata among the Sellers, shall be deemed returned to Daleen
Holdings as indemnification therefor and promptly cancelled and the
balance (if any) of any such shares or options still being held by Daleen
Holdings shall be distributed to the appropriate Sellers.

     In addition to the foregoing, Buyer shall assume, pay and perform
the Company’s obligations (i) set forth on Exhibit K attached hereto,
(ii) arising under all executory
contracts and leases, (iii) statutory contributions required under
the laws of the United

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Kingdom to be made by the Company’s optionholders
in connection with the exercise of options upon consummation of the
transactions contemplated by this Agreement, (iv) described in Section
7.1(o)(i) and (v) incurred after September 24, 2004 and approved by
Quadrangle (collectively, the “Assumed Liabilities”). Notwithstanding
the foregoing, the Buyer shall not assume, pay or discharge any of the
Liabilities of the Company, whether fixed, unliquidated, contingent or
otherwise, which arise out of or relate to periods prior to the Closing
other than the Assumed Liabilities (the “Retained Liabilities”) and the
Retained Liabilities shall hereby be assigned to the Sellers concurrent
with the Closing. The Assumed Liabilities shall hereby be assigned to
the Buyer concurrent with the Closing. The Buyer hereby agrees to assume
and timely pay and discharge the Assumed Liabilities and the Sellers
hereby agree to assume and timely pay and discharge the Retained
Liabilities on and after the Closing. In addition to the obligations set
forth in Section 11 hereof, each of the Buyer and the Sellers shall
defend, protect, indemnify, and hold harmless the others and its
affiliates from and against any and all loss, cost, liability, expense,
claim, action, damages, and fines (including those arising from the loss
of life, personal injury and/or property damage), including reasonable
attorneys’ fees, directly or indirectly arising from or out of any
failure by such party to perform his or its obligations, or any breach or
violation of his or its obligations, with respect to the foregoing
assignment and assumption from and after the Closing Date.”

     Schedule A attached hereto shall be attached to the Stock Purchase
Agreement as Exhibit J thereto, Schedule A-1 attached hereto shall be
attached to the Stock Purchase Agreement as Exhibit J-1 and Schedule B
attached hereto shall be attached to the Stock Purchase Agreement as
Exhibit K thereto.

          2. The second sentence of Section 3.8 shall be deleted and replaced with
the following:

     “Of this amount, Protek and the Buyer agree that $500,000 (such
amount, the “Deposit”) shall be treated, and Protek shall cause PNM(UK)L
to treat such amount, as follows: The full amount of the Deposit shall
be deemed additional purchase price payable to the Company under Section
3.1 at Closing.”

          3. Section 6.4 shall be amended by replacing (a) the reference to
“300,000” with “208,000”, (b) the reference to “50,000” with “24,789” and (c)
the reference to “504,000” with “347,257.”

          4. Section 7.1(a) shall be amended by adding the following sentence to the
end of such section:

     “The parties hereby agree and acknowledge that no material business
decision shall be made or effected by Protek or any of its Subsidiaries
between September 24, 2004 and Closing without the prior written consent
of the chief executive officer of Daleen and that any business decision
that affects the revenue, expenses, cash flow and balance sheet (and
items comprising the same) must be subject to prior coordination with
the chief executive officer of Daleen. To better effect this
coordination and consent and

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in addition to the obligations set forth in
Section 7.1(b) hereof, the management of Protek shall provide to the
chief executive officer of Daleen current (at least once a week or, more
frequently, if similar reports are produced more frequently by Daleen)
and detailed (in accordance with past practice and custom and containing,
at the very least, information which is equivalent to that similarly
included in reports internally by Daleen’s management) financial reports.
The chief executive officer of Daleen shall meet by teleconference with
the chief executive officer and chief financial officer of Protek no less
than once a week to discuss ordinary course business matters of Protek
(such meetings to be in addition to and not in lieu of discussions in
respect of preparations for closing and post-closing combined
operations).”

          5. The first sentence of the second paragraph of Section 7.1(d) shall be
amended to replace the reference to “the date hereof” with “September 24,
2004.”

          6. Clause (b) of Section 7.1(n)(ii) shall be deleted and replaced in its
entirety with the following:

     “(b) the Company shall, and the Sellers shall cause the Company to,
offer to pay in cash to each holder of Options, in consideration of the
consensual cancellation thereof, an amount equal to (a) the aggregate
value of the Buyer Common Equity (determined in accordance with Section
3.1) delivered at Closing in respect of each Non-Voting Ordinary Share
held by a Converting Optionholder times (b) the number of Non-Voting
Ordinary Shares subject to such Option;”

          7. Section 7.1(o) shall be deleted and shall be replaced in its entirety
with the following:

     “Liabilities of the Company. At the Closing, the only Liabilities
of the Company and the Company Subs shall be (i) trade payables of an
amount and type consistent with the Ordinary Course of the Company’s and
the Company Subs’ business and the Company’s and the Company Subs’ past
practice, (ii) Assumed Liabilities and (iii) such Retained Liabilities as
shall have been jointly and severally assumed by the Sellers pursuant to
Section 3.1 hereof.”

          8. Section 7.1(r)(iii)(3) shall be deleted and replaced in its entirety
with the following:

               “waives the application of Article 7 of the Articles of Association of the
Company to the deliveries to be made at Closing;”

          9. Section 7.2(b) shall be amended by deleting the first sentence and
replacing in its entirety with the following:

               “The Sellers and their respective Affiliates and Associates shall not,
from the date of this Agreement until the six-month anniversary of the Closing
(with respect to
Butcher and Kalinowska, until the Closing), directly or indirectly own, manage,
operate, join,

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control or participate in the ownership, management, operation
or control of, or be employed or retained by, render services to, provide
financing or advice to, or otherwise be connected in any manner with any
Restricted Business.”

          10. Section 8.2 shall be amended by inserting the following parenthetical
“(other than those set forth in Sections 4.13 and 5.3 and without reference to
the term “prospects” in Section 4.7(i))” after the word “Agreement” and before
the words “, or otherwise.”

          11. Section 8.11 shall be amended by replacing the reference to “February
29, 2004” therein with “September 24, 2004.”

          12. Section 9.5 shall be amended by deleting its title and replacing the
same with “Delivery of Common Equity Consideration and other Consideration” and
deleting the words “the Total Cash Purchase Price and” therein and replacing
them with “the cash payable pursuant to Section 3.1 hereof”.

          13. Section 10 shall be deleted and replaced in its entirety with the
following:

     “None of the representations or warranties in this Agreement (other
than those set forth in Sections 4.1, 4.2, 4.3, 4.4, 4.5, 4.21, 5.1 and
5.2, which shall survive the Closing indefinitely) shall survive the
Closing. Following consummation of the Closing, any breach of
representations or warranties by any party shall be deemed to be waived
by all other parties, and such other parties shall be deemed to fully
release and forever discharge the breaching party on account of any and
all claims, demands or charges, known or unknown with respect to the
same, except that nothing in this Section 10 shall be construed so as to
limit the ability of any party to bring a claim or action against any
other person for fraud committed directly by such person. The foregoing
provision shall not limit any covenant or agreement of any of the parties
which by its terms contemplates performance after the Closing.”

          14. Section 12.1(ii) shall be revised by replacing the reference to
“September 30, 2004” therein with “January 31, 2005.”

          15. Section 12.1(iii) shall be deleted and replaced in its entirety with
the following:

          “by Buyer, if there shall have occurred, on the part of the Company or the
Sellers, a breach of any representation, warranty, covenant or agreement
contained in this Agreement (other than those set forth in Sections 4.13 and
5.3 and without reference to the term “prospects” in Section 4.7(i)) that (x)
would result in a failure of a condition set forth in Section 8.1 or 8.2 and
(y) which is not curable or, if curable, is not cured within thirty (30)
calendar days after written notice of such breach is given by Buyer to the
Company;”

          16. The definition of “Company Material Adverse Effect” shall be amended
by adding the following new clauses to the end of such definition:

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     (g) any effect on the Company or its Affiliates as a result of
the public announcement of the Term Sheets or this Agreement and
the pendency of the transactions contemplated by the Transaction
Agreements;

     (h) any effects arising out of matters disclosed in the
disclosure schedules delivered by the Company other than those
arising out of or related to the Russian Investigation which have
not been disclosed as anticipated or expected in such schedules;
and

     (i) any changes arising out of economic or business conditions
generally applicable to companies in the Company’s and its
Subsidiaries’ line of business.

          19. Sections 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.9, 3.10, 7.1(n)(iii), 7.1(h),
7.2(h), 8.18, 9.7 and 11 of the Stock Purchase Agreement shall be deleted,
together with all references thereto. Exhibits B, D and I to the Stock
Purchase Agreement shall be deleted and all references thereto shall be
deleted. The second sentence of Section 7.1(m) and the last sentence of
Section 13.6 shall be deleted.

     B. Modifications to the Protek Bridge Agreement. The Protek Bridge
Agreement (as defined in the Stock Purchase Agreement) is hereby amended as
follows:

          1. Clause (c) under the definition of “Repayment Date” shall be deleted
and replaced in its entirety with “31 January 2005.”

          2. “Sub-Facility A Amount” shall be revised to mean and refer to
US$4,000,000.”

          3. Section 5.1 shall be amended by adding the following clause to the end
thereof:

“(g) Quadrangle (as defined in the Definitive Agreement) has consented to
such Advance.”

     C. Modification of Investment Agreement. The Investment Agreement is
hereby amended as follows:

          1. The number of shares of Series A Preferred Stock set forth next to the
name of each Quadrangle Investor and each Behrman Investor shall be amended to
reflect the number of shares of Series A Preferred Stock set forth next to the
names of each Quadrangle Investor and each Behrman Investor on Schedule C to
this Agreement, subject to adjustment as contemplated by Section 1(c) of the
Investment Agreement.

          2. Section 1(a) shall be amended by inserting the words “or by assignment
of the promissory notes made by Daleen in favor of the Quadrangle Investors”
after the word “funds” and before “at the Closing.”

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          3. Section 1(b) shall be amended by adding the following to the end of
such section, “and the right to receive $827,391.59 under Section 1.1(d) of the
Merger Agreement.”

          4. Section 1(c) shall be amended by (a) replacing the reference to “the
date hereof” with “September 24, 2004”, (b) replacing the reference to “ten
(10) days” with “five (5) days” and (c) the term “Additional Investors Maximum
Purchase Amount” shall be amended to mean and refer to an aggregate Offering
Price of $3,428,676.

          5. The penultimate sentence of Section 2 shall be amended by inserting the
words “in a manner permitted by Section 1” after the words “wire transfer” and
before the words “, or any combination thereof.”

          6. The term “Minimum Offering Amount” shall mean and refer to $20,800,000.

          7. Section 6.1(c) shall be amended by replacing the words “the date
hereof” with “September 24, 2004.”

          8. Sections 6.3(c), 9.3(b) and 9.3(g)(ii) shall be deleted.

          9. Section 9.3(g) shall be amended to replace the reference to “September
30, 2004” with “January 31, 2005.”

          10. Section 9.3(f) shall be deleted and replaced in its entirety with the
following:

     “may be terminated by the Quadrangle Investors, if, prior to
any termination of the Protek Stock Purchase Agreement or delivery
of a termination notice under the Protek Stock Purchase Agreement,
each in accordance with its terms, there shall have occurred, on
the part of Protek or any Seller, a breach of any representation,
warranty, covenant or agreement contained in the Protek Stock
Purchase Agreement (other than those set forth in Sections 4.13 and
5.3 thereof and without reference to the term “prospects” in
Section 4.7(i) thereof) that (x) would result in a failure of a
condition set forth in Section 8.1 or 8.2 thereof and (y) which is
not curable or, if curable, is not cured within thirty (30)
calendar days after written notice of such breach is given by the
Company to Protek;”

The parties hereto acknowledge and agree that this revision is not intended to
condition the transactions contemplated in the Investment Agreement and the
Merger Agreement upon consummation of the transactions contemplated by the
Stock Purchase Agreement.

          11. “Material Adverse Effect” shall be amended by adding the following to
the end of the definition “, any effect on the Company or its Affiliates as a
result of the public announcement of the Term Sheets or this Agreement and the
pendency of the transactions contemplated by the Transaction Documents, any
effects arising out of matters disclosed in the

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Protek Stock Purchase Agreement
and Daleen Merger Agreement (including the disclosure schedules thereto updated
as of September 24, 2004), any changes arising out of economic or business
conditions generally to companies in the Company’s line of business and any
change of effect relating to or arising out of the Protek Stock Purchase
Agreement, including any termination thereof.”

          12. The Certificate of Designations (Exhibit B to the Investment
Agreement) shall be amended by deleting the second, third, penultimate and last
sentences of Section 2(a) thereof and deleting clause (A)(1)(y) of the
definition of “Additional Shares of Common Stock.”

          13. The Stockholders’ Agreement (Exhibit C to the Investment Agreement)
shall be amended by (a) revising the definition of “Exempted Issuance” by
replacing the word “including” in clause (i) thereof with the words “other
than” and adding “Daleen Merger Agreement (as defined in the Investment
Agreement) and” immediately after the words “pursuant to” in clause (i) and (b)
revising Section 3.2 by inserting the parenthetical, “(after taking into
account, and subject to, liquidation preferences set forth in the Certificate
of Designations (as defined in the Investment Agreement) such that amounts
distributed in respect of different classes of stock need not be the same if
such difference arises as a result of observation of the liquidation
preferences reflected therein)” after the words “at the same price per share.”

          14. The Registration Rights Agreement (Exhibit D to the Investment
Agreement) shall be revised by deleting clauses (i) and (ii) of Section 3.1(d)
and replacing the same with “all Registrable Securities requested to be
included in such registration by the Selling Holders holding securities set
forth in clauses (a), (b) and (c) of the definition of “Registrable
Securities,” in each case, allocated pro rata, as nearly as practical, to the
respective amounts of Registrable Securities held by the Selling Holders (with
all calculations pursuant to this sentence to be made excluding any Selling
Holders who withdraw its request for registration as provided in the
immediately following sentence).”

     D. Modifications to the Bridge Loan Agreement (as defined in the
Investment Agreement). The Bridge Loan Agreement is hereby amended as
follows:

          1. The Quadrangle Entities shall be added as Lenders under the Bridge Loan
Agreement. The Borrower shall deliver Notes to the Quadrangle Entities in the
amounts set forth herein concurrently with the execution of this Agreement.

          2. Section 1.1 of the Bridge Loan Agreement shall be amended by replacing
the reference to “$5.1 million” to “$14.3 million” and replacing the reference
to “May 25, 2005” with “January 25, 2005.” The maximum principal amount set
forth beneath each Lender’s respective signature shall be amended to reflect
the amounts set forth on Schedule D attached
hereto. Section 1.1 shall be further amended by adding the following
sentence to the end of such section:

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          “The Quadrangle Entities agree to fund $7,500,000 on September 24, 2004
and thereafter all additional loans shall be funded 50% by Behrman and SEF and
50% by the Quadrangle Entities.”

          3. The second sentence of Section 1.2(b) is deleted.

          4. Section 1.2(d) shall be amended be replacing the reference to “Lenders”
therein with “Behrman, on behalf of the Lenders”.

          5. A new Section 1.2(e) shall be inserted to read as follows:

          “Behrman hereby holds the security interest granted in Section 1.2(d)
above under and subject to the terms and conditions set forth in this Section
1.2(e) for the benefit of the Lenders. Behrman shall take such action with
respect to the security interest granted herein as mutually agreed to by the
Lenders. Behrman shall be responsible to disburse all proceeds from the
security interests granted herein to the Lenders, pro rata based on the amounts
extended hereunder, promptly upon receipt. Behrman shall not be personally
liable for any acts, omissions, errors of judgment or mistakes of fact or law
made, taken or omitted to be made or taken by it in accordance with this
Agreement in respect of the security interests granted hereunder (including,
without limitation, acts, omissions, errors or mistakes with respect to the
collateral), except for those arising out of or in connection with Behrman’s
gross negligence or willful misconduct.”

          6. All references to “Lender” or “Lenders” in Section 1.3 shall be amended
to refer instead to “Behrman and/or SEF.”

          7. Section 3(a) shall be amended by replacing the reference to
“$1,500,000” with “$4,000,000” and by adding “; provided, that, any such
advances under the Protek Facility on or after September 24, 2004 shall require
the consent of the Quadrangle Entities.”

          8. The following shall be inserted as new sections under Section 8:

     “8.4 Daleen Merger Agreement. The Borrower shall not take any of
the actions prohibited by (nor omit to take any of the actions required
by) Article V of the Daleen Merger Agreement as in effect as of the date
hereof (it being understood that a termination of the Daleen Merger
Agreement shall not affect this covenant or the terms contained therein).

     8.5 Affirmative Covenants. The Borrower shall (a) timely pay its
taxes when due, (b) maintain its good standing in its jurisdiction or
organization and in all jurisdictions in which it is qualified to do
business, and (c) be bound by Section 9 of the Registration Rights
Agreement (Exhibit D to the Investment Agreement) as if the covenants of
Daleen Holdings therein were, mutatis mutandi, covenants of the Borrower
(excluding, however, the covenants in paragraphs (d) (reservation of
stock), (e) (restrictive covenant agreements), (f) (indemnification
agreements), (g) (subsidiary boards), (h) (equity incentive plan) and (i)
(insurance),
and the Lenders shall be entitled

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to all of the rights of
the Qualified Holders and holders of Registrable Securities contemplated
thereunder.”

          9. Exhibit A to the Bridge Loan Agreement shall be amended by replacing
the reference to “May 1, 2005” in clause (a) of the definition of “Maturity
Date” therein with “January 1, 2005.”

     E. Modifications to the Merger Agreement. The Merger Agreement shall
hereby be amended as follows:

          1. Section 1.01(c) shall be amended by (a) replacing clauses (x) and (y)
thereof with “0.1113 shares of Parent PIK Preferred”, (b) deleting the proviso
after clause (y), (c) amending the definition of “Series F Value” to mean and
refer to “11.13 per share of Daleen Series F Preferred Stock” and (d) deleting
the words “and Common Stock” in the penultimate sentence thereof. Exhibit A to
the Merger Agreement shall be replaced in its entirety with Exhibit A attached
hereto.

          2. Section 2.01(a) shall be amended by deleting clauses (i) and (ii)
therein and the language thereafter and replacing the same with “0.4452 shares
of fully paid and nonassessable shares of Parent Common Stock.”

          3. Sections 2.02, 2.05, 7.02(c)(ii), 7.02(d) and 7.02(e) shall be deleted.

          4. Section 4.02 shall be amended by deleting the third sentence therein
and replacing the same in its entirety with the following:

     “Immediately after Closing, the issued shares of capital stock of
Parent shall consist solely of (a) the shares of Parent PIK Preferred and
Parent Common Stock to be issued under this Agreement, (b) 208,000 shares
of Parent Series A PIK Preferred to be issued under the Investment
Agreement, (c) 246,414 shares of Parent Common Stock to be issued under
the Protek Agreement and the Side Purchase Agreements referenced therein,
(d) shares of Parent Common Stock subject to options to be granted under
the Management Incentive Plan of Parent and under the Protek Agreement,
and (e) 100 shares of Parent’s Junior Preferred Stock.”

          5. Section 7.03(a) shall be amended by inserting the parenthetical “(other
than Section 3.10)” immediately before clause (i) therein.

          6. Section 7.04(a) shall be amended by inserting the parenthetical “(other
than Section 4.05)” immediately before clause (i) therein.

          7. Section 7.04(e) shall be amended by replacing the reference to “the
date hereof” with “September 24, 2004” and deleting the words after “Company
Material Adverse Effect.”

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          8. Section 8.01(c) shall be amended by replacing the reference to
“September 30, 2004” therein with “January 31, 2005.”

          9. Article IX shall be deleted in its entirety.

          10. The first sentence Section 10.01 shall be deleted and replaced in its
entirety with the following:

     “None of the representations or warranties in this Agreement
shall survive the Closing. Following consummation of the Closing,
any breach of representations or warranties by any party shall be
deemed to be waived by all other parties, and such other parties
shall be deemed to fully release and forever discharge the
breaching party on account of any and all claims, demands or
charges, known or unknown with respect to the same, except that
nothing in this Section 10.01 shall be construed so as to limit the
ability of any party to bring a claim or action against any other
person for fraud committed directly by such person. The foregoing
provision shall not limit any covenant or agreement of any of the
parties which by its terms contemplates performance after the
Closing.”

          11. The definition of “Company Material Adverse Effect” shall be amended
by inserting the following clauses at the end of such definition:

     “(g) any effect on Company or its Subsidiaries as a result of
the public announcement of the Term Sheets or this Agreement and
the pendency of the transactions contemplated by the Transaction
Agreements;

     (h) any effects arising out of matters disclosed in this
Agreement and the schedules hereto;

     (i) any changes arising out of economic or business conditions
generally to companies in the Company’s line of business; or

     (j) any change or effect relating to or arising out of the
Protek Agreement, including any termination thereof.”

     F. Modification to Transaction Support Agreement. Section 1 of the
Transaction Support Agreement is hereby amended by inserting “if not otherwise
terminated prior thereto,” after the words “Daleen Agreement” and immediately
prior to “Sections 8 and 9 of the Protek Agreement.” Section 3 shall be
amended by inserting “(other than the Protek Agreement)” after the first
reference to “Transaction Agreement” therein. A new Section 13 shall be
inserted to read as follows:

          “13. Termination. Upon termination of the Protek Agreement in accordance
with the terms set forth therein, Protek, Beaumont, Butcher and Watterson shall
no longer have any rights or obligations under this Agreement. In addition,
upon any such termination of the Protek Agreement, the remaining parties hereby
agree to use all commercially reasonable efforts

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to amend the Transaction
Agreements and related agreements to reflect the terms set forth in the term
sheet among the other parties hereto dated as of September 24, 2004, in the
event of an acquisition of Daleen without Protek.”

     G. Other Corresponding Modifications to Transaction Agreements. The
recitals contained in the Transaction Agreements and cross-references in the
Transaction Agreements are hereby modified in accordance with the amendments to
the Transaction Agreements and the related agreements contemplated herein.
Schedules attached hereto shall be incorporated by reference into the document
in which they are so referenced pursuant to the terms contained in this
Agreement. The Schedules to the Stock Purchase Agreement referenced, and
intended to qualify representations set forth, in Article 4 thereof shall be
modified to reflect the revisions set forth in Schedule E attached hereto (as
so modified, the “Updated Protek Schedules”) and the Company Disclosure
Schedules shall be modified to reflect the revisions set forth in Schedule F
attached hereto (as so modified, the “Updated Daleen Schedules”). Defined
terms no longer used shall be deleted and references to terms defined in
sections which have been deleted shall continue to have the meaning set forth
in such deleted section, such deletion notwithstanding. All references to the
Transaction Agreements and the related agreements herein and therein shall mean
and refer to such agreement, as amended by this Agreement (including amendments
to the schedules and exhibits thereto).

     H. Modifications to Voting Agreements. The parties to this Agreement
acknowledge that the Voting Agreements (as defined in the Merger Agreement)
have been amended as contemplated by the Daleen Term Sheet.

     I. Modifications to Transaction Fee. The side letter by and among Daleen,
Daleen Holdings and Quadrangle Advisors LLC shall be hereby amended by
replacing the reference to “$400,000” therein with “$300,000.”

     I. No Admissions. This Agreement is entered into in order to effect the
premises set forth above, to compromise and settle certain disputed claims and
to avoid litigation, and nothing contained in this Agreement shall constitute
or be deemed an admission of breach, default, liability or fault on the part of
any party hereto, each of which specifically denies any such breach, default,
liability or fault. This Agreement does not constitute a release of any claim
that any party may have under the Transaction Agreements, as amended hereby.
Notwithstanding, the parties agree and acknowledge that upon execution and
delivery of this Agreement, no claims may be made with respect to the
provisions and disclosures which have been superceded specifically hereby. It
is understood and acknowledged by all parties that the settlement and
compromise contemplated by this Agreement shall be effective only upon the
consummation of the transactions contemplated by this Agreement.

     J. Representations and Warranties. Protek and the Sellers hereby make the
representations and warranties set forth in Sections 4 and 5 (without taking
into account the
reference to the word “prospects” in Section 4.7(i)) of the Stock Purchase
Agreement, as modified by the Updated Protek Schedules. In addition, Protek
and the Sellers confirm that they have complied to date with the obligations
set forth in Section 7.1(n)(ii) of the Stock Purchase

12

 

Agreement. Daleen hereby
makes the representations and warranties set forth in Article III of the Merger
Agreement, as modified by the Updated Daleen Schedules.

     K. Miscellaneous. Except as modified or amended by this Agreement, each
of the Transaction Agreements shall continue unaltered and in full force and
effect. This Agreement shall be governed by the law of the State of New York
(but, in respect of the amendments made to the Investment Agreement, by the law
of the State of Delaware), without regard to any principles of conflict of laws
that would require the application of the law of another jurisdiction. The
undersigned consent to the jurisdiction of and venue in any state or federal
court located in the City of New York, State of New York in any action relating
to this Agreement. Together with the Transaction Agreements, this Agreement
constitutes the entire understanding of the parties in respect of the subject
matter of this Agreement and may only be amended in writing by a document
signing by each party hereto. This Agreement may be signed in counterparts.

[Remainder of page left blank; signature pages follow]

13

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	QUADRANGLE CAPITAL PARTNERS LP
	 	 	 	 	By:	 	Quadrangle GP Investors LP, its General Partner
	 	 	 	 	 	 	By:	 	Quadrangle GP Investors
LLC, its General Partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	/s/ MICHAEL HUBER
	 	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	 	 	Name:
	 	Michael Huber
	

	 	 	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	 	 	Title:
	 	Managing Principal
	

	 	 	 	 	 	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	QUADRANGLE SELECT PARTNERS LP
	 	 	 	 	By:	 	Quadrangle GP Investors LP, its General Partner
	 	 	 	 	 	 	By:	 	Quadrangle GP Investors LLC, its General Partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	/s/ MICHAEL HUBER
	 	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	 	 	Name:
	 	Michael Huber
	

	 	 	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	 	 	Title:
	 	Managing Principal
	

	 	 	 	 	 	 	 	 	 	 	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	QUADRANGLE CAPITAL PARTNERS-A LP
	 	 	 	 	By:	 	Quadrangle GP Investors LP, its General Partner
	 	 	 	 	 	 	By:	 	Quadrangle GP Investors LLC, its General Partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	/s/ MICHAEL HUBER
	 	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	 	 	Name:
	 	Michael Huber
	

	 	 	 	 	 	 	 	 	 	 	 	

	

	 	 	 	 	 	 	 	 	 	Title:
	 	Managing Principal
	

	 	 	 	 	 	 	 	 	 	 	 	

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

	 	 	 	 	 
	 	 	DALEEN TECHNOLOGIES, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ GORDON QUICK
	

	 	 	 	
 
	

	 	Name:
	 	Gordon Quick
	

	 	 	 	
 
	

	 	Title:
	 	Pres. & CEO
	

	 	 	 	
 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	DALEEN HOLDINGS, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ GORDON QUICK
	

	 	 	 	
 
	

	 	Name:
	 	Gordon Quick
	

	 	 	 	
 
	

	 	Title:
	 	CEO & Treas.
	

	 	 	 	
 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	PARALLEL ACQUISITION, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ GORDON QUICK
	

	 	 	 	
 
	

	 	Name:
	 	Gordon Quick
	

	 	 	 	
 
	

	 	Title:
	 	CEO & Treas.
	

	 	 	 	
 

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

	 	 	 	 	 
	 	 	BEHRMAN CAPITAL II, L.P.
	 
	 	 	 	 
	 	 	By: Behrman Brothers, LLC, its General Partner
	 
	 	 	 	 
	

	 	By:
	 	/s/ GRANT G. BEHRMAN
	

	 	 	 	

	

	 	Name:
	 	Grant G. Behrman
	

	 	 	 	

	

	 	Title:
	 	Managing Member
	

	 	 	 	

	 
	 	 	 	 
	 
	 	 	 	 
	 	 	STRATEGIC ENTREPRENEUR FUND II, L.P.
	 
	 	 	 	 
	

	 	By:
	 	/s/ GRANT G. BEHRMAN
	

	 	 	 	

	

	 	Name:
	 	Grant G. Behrman
	

	 	 	 	

	

	 	Title:
	 	General Partner
	

	 	 	 	

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

	 	 	 	 	 
	 	 	PROTEK TELECOMMUNICATIONS SOLUTIONS LIMITED
	 
	 	 	 	 
	

	 	By:
	 	/s/ P. A. BEAUMONT
	

	 	 	 	
 
	

	 	Name:
	 	P. A. Beaumont
	

	 	 	 	
 
	

	 	Title:
	 	CEO
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	PROTEK NETWORK MANAGEMENT (UK) LIMITED
	 
	 	 	 	 
	

	 	By:
	 	/s/ P. A. BEAUMONT
	

	 	 	 	
 
	

	 	Name:
	 	P. A. Beaumont
	

	 	 	 	
 
	

	 	Title:
	 	Director
	

	 	 	 	
 
	 
	 	 
	

	 	PAUL A. BEAUMONT
	 
	 	 
	

	 	     /s/ PAUL A. BEAUMONT
	

	 	

	 
	 	 
	

	 	GEOFF BUTCHER
	 
	 	 
	

	 	     /s/ GEOFF BUTCHER
	

	 	

	 
	 	 
	

	 	IAN WATTERSON
	 
	 	 
	

	 	     /s/ IAN WATTERSON
	

	 	

	 
	 	 
	

	 	MICHAEL WHITE
	 
	 	 
	

	 	     /s/ MICHAEL WHITE
	

	 	

	 
	 	 
	

	 	MICHAEL KERSTEN
	 
	 	 
	

	 	     /s/ MICHAEL KERSTEN
	

	 	

	 
	 	 
	

	 	BARBARA KRYSTYNA KALINOWSKA
	 
	 	 
	     /s/ MARTIN COAKLEY

	 	Acting by her attorney Martin Coakley

 

     Intending to be bound hereby, the undersigned have executed and delivered
this Agreement as of this 24th day of September, 2004.

	 	 	 	 	 
	 	 	QUADRANGLE ADVISORS LLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ DAVID TANNER
	

	 	 	 	
 
	

	 	Name:
	 	David Tanner
	

	 	 	 	
 
	

	 	Title:
	 	Managing Member
	

	 	 	 	
 

 

EXHIBIT A

Exchanged Shares

	 	 	 	 	 	 	 	 	 
	 	 	Daleen Common Stock
	 	Daleen Series F Preferred Stock

	Behrman Capital II, L.P.
	 	 	21,258,417	 	 	 	219,744	 
	Strategic Entrepreneurship
Fund II, L.P.
	 	 	288,239	 	 	 	2,980Exhibit 4.5

                 SPECIALIZED HEALTH PRODUCTS INTERNATIONAL, INC.
                            2004 STOCK INCENTIVE PLAN

1.       Purpose

The purpose of this Specialized Health Products International, Inc. 2004 Stock
Incentive Plan (the "Plan") is to advance the interests of Specialized Health
Products International, Inc., a Delaware corporation, and its Subsidiaries
(hereinafter collectively "SHPI" or the "Corporation"), by stimulating the
efforts of employees and others who are selected to be participants on behalf of
SHPI, aligning the long-term interests of participants with those of
stockholders, heightening the desire of participants to continue in working
toward and contributing to the success of SHPI, assisting SHPI in competing
effectively with other enterprises for the services of new employees necessary
for the continued improvement of operations, and to attract and retain the best
available individuals for service as directors of the Corporation. This Plan
permits the grant of restricted stock and stock units, each of which may be
subject to such conditions based upon continued employment, passage of time or
satisfaction of performance criteria as shall be specified pursuant to the Plan.

2.       Definitions

         (a) "Award" means restricted stock or stock units granted to a
Participant pursuant to the Plan.

         (b) "Board of Directors" means the Board of Directors of the
Corporation.

         (c) "Change in Control" shall occur if, after the date hereof, (i) the
Corporation determines that any person and all other persons who constitute a
group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of
1934 ("Exchange Act")) have acquired direct or indirect beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act) of at least fifty-one
percent (51%) or more of the Corporation's outstanding securities, (ii) the
Corporation is involved in a merger or consolidation or other reorganization in
which the Corporation is not the surviving corporation or (iii) the Corporation
sells or transfers substantially all of the Corporation's assets outside the
ordinary course of business. Notwithstanding the foregoing, a Change in Control
shall not be deemed to have occurred for purposes of this definition if the
Committee determines, in its sole discretion, that no change in control has
occurred under such other definition as it deem appropriate under the Plan or in
connection with a specific circumstance. For example, the Committee may
determine that no Change in Control has occurred in connection with a merger
where the Corporation is not the surviving corporation legally, but is the
surviving corporation functionally.

         (d) "Code" shall mean the Internal Revenue Code of 1986, as such is
amended from time to time, and any reference to a section of the Code shall
include any successor provision of the Code.

         (e) "Committee" shall mean the committee appointed by the Board of
Directors from among its members to administer the Plan pursuant to Section 3.

         (f) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time, and any reference to a section of the Exchange Act
shall include any successor provision of the Exchange Act.

         (g) "Issue Date" has the meaning set forth in Section 8(c).

         (h) "Outside Director" shall mean a member of the Board of Directors
who is not otherwise an employee of the Corporation.

         (i) "Participants" shall mean those individuals to whom Awards have
been granted from time to time and any authorized transferee of such
individuals.

                                       1
<PAGE>

         (j) "Performance Award" means an Award that vests only upon the
satisfaction of one or more of the Qualifying Performance Criteria.

         (k) "Plan" means this Specialized Health Product International, Inc.
2004 Stock Incentive Plan.

         (l) "Qualifying Performance Criteria" shall mean any one or more of the
following performance criteria, either individually, alternatively or in any
combination, applied to either the Corporation as a whole or to a business unit
or Subsidiary, either individually, alternatively or in any combination, and
measured either annually or cumulatively over a period of years, on an absolute
basis or relative to a pre-established target, to previous years' results or to
a designated comparison group, in each case as specified by the Committee in the
Award: (a) cash flow, (b) earnings per share, (c) earnings before interest,
taxes and amortization, (d) return on equity, (e) total stockholder return, (f)
share price performance, (g) return on capital, (h) return on assets or net
assets, (i) revenue, (j) income or net income, (k) operating income or net
operating income, (l) operating profit or net operating profit, (m) operating
margin or profit margin, (n) return on operating revenue, (o) return on invested
capital, (p) market segment share, (q) product release schedules, (r) new
product innovation, (s) product cost reduction through advanced technology, (t)
brand recognition/acceptance, (u) product ship targets, or (v) customer
satisfaction. The Committee may appropriately adjust any evaluation of
performance under a Qualifying Performance Criteria to exclude any of the
following events that occurs during a performance period: (i) asset write-downs,
(ii) litigation or claim judgments or settlements, (iii) the effect of changes
in tax law, accounting principles or other such laws or provisions affecting
reported results, (iv) accruals for reorganization and restructuring programs
and (v) any extraordinary non-recurring items as described in Accounting
Principles Board Opinion No. 30 and/or in management's discussion and analysis
of financial condition and results of operations appearing in the Corporation's
annual report to stockholders for the applicable year. Notwithstanding
satisfaction of any completion of any Qualifying Performance Criteria, to the
extent specified at the time of grant of an Award, the number of Shares, Stock
Units or other benefits granted, issued, retainable and/or vested under an Award
on account of satisfaction of such Qualifying Performance Criteria may be
reduced by the Committee on the basis of such further considerations as the
Committee in its sole discretion shall determine.

         (m) "Restricted Stock Award" and "Restricted Stock Agreement" have the
meanings set forth in Section 7(a)(i).

         (n) "Share" shall mean a share of common stock, $.02 par value, of the
Corporation or the number and kind of shares of stock or other securities which
shall be substituted or adjusted for such shares as provided in Section 10.

         (o) "Stock Unit Award" and "Stock Unit Agreement" have the meanings set
forth in Section 7(a)(ii).

         (p) "Subcommittee" has the meaning set forth in Exhibit 3(b).

         (q) "Subsidiary" means any corporation or entity in which the
Corporation owns or controls, directly or indirectly, fifty percent (50%) or
more of the voting power or economic interests of such corporation or entity.

         (r) "Termination Event" means, with respect to any Participant, any
event that results in such Participant no longer being eligible to participate
in the Plan because the Participant is no longer an employee, Outside Director
or is not otherwise authorized by the Committee to participate in the Plan.

         (s) "Total Award Stock" has the meaning set forth in Section 8(c).

                                       2
<PAGE>

3.       Administration

         (a) Composition of Committee. This Plan shall be administered by the
Committee. The Committee shall consist of two or more Outside Directors who
shall be appointed by the Board of Directors. The Board of Directors shall fill
vacancies on the Committee and may from time to time remove or add members of
the Committee. The Board of Directors, in its sole discretion, may exercise any
authority of the Committee under this Plan in lieu of the Committee's exercise
thereof and in such instances references herein to the Committee shall refer to
the Board of Directors.

         (b) Delegation and Administration. The Committee may delegate to one or
more separate committees (any such committee a "Subcommittee") composed of one
or more directors of the Corporation (who may but need not be members of the
Committee) the ability to grant Awards and take the other actions described in
Section 3(c) with respect to Participants who are not executive officers, and
such actions shall be treated for all purposes as if taken by the Committee. Any
action by any such Subcommittee within the scope of such delegation shall be
deemed for all purposes to have been taken by the Committee and references in
this Plan to the Committee shall include any such Subcommittee. The Committee
may delegate the administration of the Plan to an officer or officers of the
Corporation, and such administrator(s) may have the authority to execute and
distribute agreements or other documents evidencing or relating to Awards
granted by the Committee under this Plan, to maintain records relating to the
grant, vesting, exercise, forfeiture or expiration of Awards, to process or
oversee the issuance of Shares upon the exercise, vesting and/or settlement of
an Award, to interpret the terms of Awards and to take such other actions as the
Committee may specify, provided that in no case shall any such administrator be
authorized to grant Awards under the Plan. Any action by any such administrator
within the scope of its delegation shall be deemed for all purposes to have been
taken by the Committee and references in this Plan to the Committee shall
include any such administrator, provided that the actions and interpretations of
any such administrator shall be subject to review and approval, disapproval or
modification by the Committee.

         (c) Powers of the Committee. Subject to the express provisions and
limitations set forth in this Plan, the Committee shall be authorized and
empowered to do all things necessary or desirable, in its sole discretion, in
connection with the administration of this Plan, including, without limitation,
the following:

                  (i) to prescribe, amend and rescind rules and regulations
         relating to this Plan and to define terms not otherwise defined herein;

                  (ii) to determine which persons are Participants, to which of
         such Participants, if any, Awards shall be granted hereunder and the
         timing of any such Awards, and to grant Awards;

                  (iii) to grant Awards to Participants and determine the terms
         and conditions thereof, including the number of Shares subject to
         Awards and the exercise or purchase price of such Shares and the
         circumstances under which Awards become exercisable or vested or are
         forfeited or expire, which terms may but need not be conditioned upon
         the passage of time, continued employment, the satisfaction of
         performance criteria, the occurrence of certain events, or other
         factors;

                  (iv) to establish or verify the extent of satisfaction of any
         performance goals or other conditions applicable to the grant,
         issuance, exercisability, vesting and/or ability to retain any Award;

                  (v) to prescribe and amend the terms of the agreements or
         other documents evidencing Awards made under this Plan (which need not
         be identical);

                                       3
<PAGE>

                  (vi) to determine whether, and the extent to which,
         adjustments are required pursuant to Section 10;

                  (vii) to interpret and construe this Plan, any rules and
         regulations under this Plan and the terms and conditions of any Award
         granted hereunder, and to make exceptions to any such provisions in
         good faith and for the benefit of the Corporation; and

                  (viii) to make all other determinations deemed necessary or
         advisable for the administration of this Plan.

         (d) Effect of Change in Status. The Committee shall have the discretion
to determine the effect upon an Award and upon an individual's status as an
employee under the Plan (including whether a Participant shall be deemed to have
experienced a Termination Event or other change in status) and upon the vesting,
expiration or forfeiture of an Award in the case of (i) any individual who is
employed by an entity that ceases to be a Subsidiary of the Corporation, (ii)
any leave of absence approved by the Corporation or a Subsidiary, (iii) any
transfer between locations of employment with the Corporation or a Subsidiary or
between the Corporation and any Subsidiary or between any Subsidiaries, (iv) any
change in the Participant's status from an employee to a consultant or member of
the Board of Directors, or vice versa, and (v) at the request of the Corporation
or a Subsidiary any employee who becomes employed by any partnership, joint
venture, corporation or other entity not meeting the requirements of a
Subsidiary.

         (e) Determinations of the Committee. All decisions, determinations and
interpretations by the Committee regarding this Plan shall be final and binding
on all Participants. The Committee shall consider such factors as it deems
relevant to making such decisions, determinations and interpretations including,
without limitation, the recommendations or advice of any director, officer or
employee of the Corporation and such attorneys, consultants and accountants as
it may select. A Participant or other holder of an Award may contest a decision
or action by the Committee with respect to such person or Award only on the
grounds that such decision or action was arbitrary or capricious or was
unlawful, and any review of such decision or action shall be limited to
determining whether the Committee's decision or action was arbitrary or
capricious or was unlawful.

4.       Participants

Awards under the Plan may be granted to any person who is an employee, Outside
Director of the Corporation or otherwise specifically authorized by the
Committee to participate in the Plan. Any person who is not an employee, Outside
Director or otherwise approved by the Committee to participate in the Plan shall
not be eligible for Awards under the Plan.

5.       Effective Date and Expiration of Plan

         (a) Effective Date. This Plan was approved by the Board of Directors on
September 15, 2004 and became effective on that date, provided that this Plan is
approved by the stockholders of the Company (exclude the vote of Shares issued
under this Plan) within six (6) months after September 15, 2004. If this Plan is
not so approved by the stockholders of the Company, any Awards granted under
this Plan will be rescinded and will be void.

         (b) Expiration Date. The Plan shall remain available for the grant of
Awards until terminated by the Board of Directors. The expiration of the
Committee's authority to grant Awards under the Plan will not affect the
operation of the terms of the Plan or the Corporation's and Participants' rights
and obligations with respect to Awards granted on or prior to the expiration
date of the Plan.

                                       4
<PAGE>

6.       Shares Subject to the Plan

         (a) Aggregate Limits. Subject to adjustment as provided in Section 10,
the aggregate number of Shares authorized for issuance as Awards under the Plan
is 6 million Shares. The Shares subject to the Plan may be either Shares
reacquired by the Corporation, including Shares purchased in the open market, or
authorized but unissued Shares. Any Shares subject to an Award which for any
reason expires or is not earned in full may again be made subject to an Award
under the Plan.

         (b) Other Limits. The aggregate number of Shares subject to restricted
stock or stock unit Awards granted under this Plan during any calendar year to
any one Participant shall not exceed 1.5 million. Notwithstanding anything to
the contrary in this Plan, the foregoing limitations shall be subject to
adjustment under Section 10, but only to the extent that such adjustment will
not affect the status of any Award intended to qualify as "performance-based
compensation" under Section 162(m) of the Code.

7.       Plan Awards

         (a) Award Types. The Committee, on behalf of the Corporation, is
authorized under this Plan to grant, award and enter into the following
arrangements or benefits under the Plan provided that their terms and conditions
are not inconsistent with the provisions of the Plan: Restricted Stock and Stock
Units. Such arrangements and benefits are sometimes referred to herein as
"Awards." The Committee, in its discretion, may determine that any Award granted
hereunder shall be a Performance Award.

                  (i) Restricted Stock. A "Restricted Stock Award" is an award
         of Shares, the grant, issuance, retention and/or vesting of which is
         subject to such conditions as are expressed in the document(s)
         evidencing the Award (the "Restricted Stock Agreement").

                  (ii) Stock Unit. A "Stock Unit Award" is an award of a right
         to receive, in cash or stock (as determined by the Committee) the
         market value of one Share, the grant, issuance, retention and/or
         vesting of which is subject to such conditions as are expressed in the
         documents(s) evidencing the Award (the "Stock Unit Agreement").

         (b) Grants of Awards. An Award may consist of one or both of the
foregoing arrangements or benefits in tandem or in the alternative.

8.       Grant, Terms and Conditions of Restricted Stock and Stock Units

The Committee may grant Restricted Stock or Stock Units at any time and from
time to time prior to the expiration of the Plan to eligible Participants
selected by the Committee. A Participant shall have rights as a stockholder with
respect to any Shares subject to a Restricted Stock Award hereunder only to the
extent specified in this Plan or the Restricted Stock Agreement evidencing such
Award. Awards of Restricted Stock or Stock Units shall be evidenced only by such
agreements, notices and/or terms or conditions documented in such form
(including by electronic communications) as may be approved by the Committee.
Awards of Restricted Stock or Stock Units granted pursuant to the Plan need not
be identical but each must contain or be subject to the following terms and
conditions:

                                       5
<PAGE>

         (a) Terms and Conditions. Each Restricted Stock Agreement shall contain
provisions regarding (a) the number of Shares subject to such Award or a formula
for determining such, (b) the purchase price of the Shares, if any, and the
means of payment for the Shares, (c) the performance criteria, if any, and level
of achievement versus these criteria that shall determine the number of Shares
granted, issued, retainable and/or vested, (d) such terms and conditions on the
grant, issuance, vesting and/or forfeiture of the Shares as may be determined
from time to time by the Committee, (e) restrictions on the transferability of
the Shares and (f) such further terms and conditions as may be determined from
time to time by the Committee, in each case not inconsistent with this Plan.

         (b) Sale Price. Subject to the requirements of applicable law, the
Committee shall determine the price, if any, at which Shares of Restricted Stock
or Stock Units shall be sold or awarded to a Participant, which may vary from
time to time and among Participants and which may be below the market value of
such Shares at the date of grant or issuance.

         (c) Share Vesting. Unless the agreement or other document evidencing an
Award expressly states otherwise and except as set forth herein, as of the date
issued, all of the Shares of Restricted Stock and Stock Units issued pursuant to
the agreement (individually and collectively, the "Total Award Stock") will be
deemed unvested and will become vested according to the following schedule: (1)
no portion of the Total Award Stock will be deemed vested prior to the third
anniversary of the date on which the Total Award Stock was issued to the
Participant (the "Issue Date"); (2) the Total Award Stock will become vested in
full on the third anniversary of the Issue Date. Notwithstanding the foregoing,
the Total Award Stock shall immediately vest in full upon a Change in Control.

         (d) Performance Awards. Performance Awards shall be based on
performance over a period of not less than one year. Notwithstanding anything to
the contrary herein, the performance criteria for any Awards that is intended to
satisfy the requirements for "performance-based compensation" under Section
162(m) of the Code shall be a measure based on one or more Qualifying
Performance Criteria selected by the Committee and specified at the time the
Award is granted.

         (e) Termination of Employment. Unless the agreement or other document
evidencing an Award expressly states otherwise, any unvested Restricted Stock
and any unvested Stock Units will be immediately forfeited and cancelled in the
event of the termination of employment or service of the Participant to whom it
was granted. Any vested Restricted Stock remains the ownership of Participant
subject to any restrictions set forth in the agreement or other document
evidencing an Award.

         (f) Stock Units. Except to the extent this Plan or the Committee
specifies otherwise, Stock Units represent an unfunded and unsecured obligation
of the Corporation and do not confer any of the rights of a stockholder until
Shares, if any, are issued thereunder. Settlement of Stock Units upon expiration
of the deferral or vesting period shall be made in Shares or cash as determined
by the Committee. The number of Shares, or other settlement medium, to be so
distributed may be increased by an interest factor or by dividend equivalents.
Until a Stock Unit is so settled, the number of Shares represented by a Stock
Unit shall be subject to adjustment pursuant to Section 10. Any Stock Units that
are settled after the Participant's death shall be distributed to the
Participant's designated beneficiary(ies) or, if none was designated, the
Participant's estate.

                                       6
<PAGE>

9.       Other Provisions Applicable to Awards

         (a) Transferability. Unless the agreement or other document evidencing
an Award (or an amendment thereto authorized by the Committee) expressly states
that the Award is transferable as provided hereunder, no Award granted under
this Plan, nor any interest in such Award, may be sold, assigned, conveyed,
gifted, pledged, hypothecated or otherwise transferred in any manner prior to
the vesting or lapse of any and all restrictions applicable thereto, other than
by will or the laws of descent and distribution. The Committee may, in its sole
discretion, grant an Award or amend an outstanding Award to provide that the
Award is transferable or assignable (1) in the case of a transfer without the
payment of any consideration, to any "family member" as such term is defined in
Section 1(a)(5) of the General Instructions to Form S-8 under the Securities Act
of 1933, as such may be amended from time to time, and (2) in any transfer
described in clause (ii) of Section 1(a)(5) of the General Instructions to Form
S-8 under the 1933 Act as amended from time to time, provided that following any
such transfer or assignment the Award will remain subject to substantially the
same terms applicable to the Award while held by the Participant to whom it was
granted, as modified as the Committee shall determine appropriate, and as a
condition to such transfer the transferee shall execute an agreement agreeing to
be bound by such terms. Any purported assignment, transfer or encumbrance that
does not qualify under this Section 9(a) shall be void and unenforceable against
the Corporation.

         (b) Escrow. To facilitate the enforcement of the restrictions on
transfer set forth in this Plan, the Committee may, at its discretion, require a
holder of unvested Shares of to deliver the certificate(s) for such Shares with
a stock power executed in blank by holder and holder's spouse (if required for
transfer), to the Secretary of the Corporation or his or her designee, to hold
said certificate(s) and stock power(s) in escrow and to take all such actions
and to effectuate all such transfers and/or releases as are in accordance with
the terms of this Plan. The certificates may be held in escrow so long as the
Shares whose ownership they evidence are unvested and/or subject to any right of
repurchase under the Plan or under an agreement or other document evidencing an
Award. Each Participant acknowledges that the Secretary of the Corporation (or
his or her designee) is so appointed as the escrow holder with the foregoing
authorities as a material inducement to the Award, that the appointment is
coupled with an interest, and that it accordingly will be irrevocable. The
escrow holder will not be liable to any party to an agreement or other document
evidencing an Award (or to any other party) for any actions or omissions unless
the escrow holder is grossly negligent relative thereto. The escrow holder may
rely upon any letter, notice or other document executed by any signature
purported to be genuine.

         (c) Dividends. Unless otherwise provided by the Committee, no
adjustment shall be made in Shares issuable under Awards on account of cash
dividends that may be paid or other rights that may be issued to the holders of
Shares prior to their issuance under any Award. The Committee shall specify
whether dividends or dividend equivalent amounts shall be paid to any
Participant with respect to the Shares subject to any Award that have not vested
or been issued or that are subject to any restrictions or conditions on the
record date for dividends.

         (d) Documents Evidencing Awards. The Committee shall, subject to
applicable law, determine the date an Award is deemed to be granted. The
Committee or, except to the extent prohibited under applicable law, its
delegate(s) may establish the terms of agreements or other documents evidencing
Awards under this Plan and may, but need not, require as a condition to any such
agreement's or document's effectiveness that such agreement or document be
executed by the Participant, including by electronic signature or other
electronic indication of acceptance, and that such Participant agree to such
further terms and conditions as specified in such agreement or document. The
grant of an Award under this Plan shall not confer any rights upon the
Participant holding such Award other than such terms, and subject to such
conditions, as are specified in this Plan as being applicable to such type of
Award (or to all Awards) or as are expressly set forth in the agreement or other
document evidencing such Award.

                                       7
<PAGE>

         (e) Additional Restrictions on Awards. Either at the time an Award is
granted or by subsequent action, the Committee may, but need not, impose such
restrictions, conditions or limitations as it determines appropriate as to the
timing and manner of any resales by a Participant or other subsequent transfers
by a Participant of any Shares issued under an Award, including without
limitation (a) restrictions under an insider trading policy, (b) restrictions
designed to delay and/or coordinate the timing and manner of sales by the
Participant or Participants, and (c) restrictions as to the use of a specified
brokerage firm for such resales or other transfers.

         (f) Subsidiary Awards. In the case of a grant of an Award to any
Participant employed by a Subsidiary, such grant may, if the Committee so
directs, be implemented by SHPI issuing any subject Shares to the Subsidiary,
for such lawful consideration as the Committee may determine, upon the condition
or understanding that the Subsidiary will transfer the Shares to the Participant
in accordance with the terms of the Award specified by the Committee pursuant to
the provisions of the Plan. Notwithstanding any other provision hereof, such
Award may be issued by and in the name of the Subsidiary and shall be deemed
granted on such date as the Committee shall determine.

10.      Adjustment of and Changes in the Common Stock

         (a) The existence of outstanding Awards shall not affect in any way the
right or power of the Corporation or its stockholders to make or authorize any
or all adjustments, recapitalizations, reorganizations, exchanges, or other
changes in the Corporation's capital structure or its business, or any merger or
consolidation of the Corporation or any issuance of Shares or other securities
or subscription rights thereto, or any issuance of bonds, debentures, preferred
or prior preference stock ahead of or affecting the Shares or other securities
of the Corporation or the rights thereof, or the dissolution or liquidation of
the Corporation, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar
character or otherwise. Further, except as expressly provided herein or by the
Committee, (i) the issuance by the Corporation of shares of stock or any class
of securities convertible into shares of stock of any class, for cash, property,
labor or services, upon direct sale, upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations of the
Corporation convertible into such shares or other securities, (ii) the payment
of a dividend in property other than Shares, or (iii) the occurrence of any
similar transaction, and in any case whether or not for fair value, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number of Shares subject to Awards theretofore granted or the purchase price per
Share, unless the Committee shall determine, in its sole discretion, that an
adjustment is necessary or appropriate.

         (b) If the outstanding Shares or other securities of the Corporation,
or both, for which the Award is then exercisable or as to which the Award is to
be settled shall at any time be changed or exchanged by declaration of a stock
dividend, stock split, combination of shares, extraordinary dividend of cash
and/or assets, recapitalization, reorganization or any similar event affecting
the Shares or other securities of the Corporation, the Committee may
appropriately and equitably adjust the number and kind of Shares or other
securities which are subject to this Plan or subject to any Awards theretofore
granted, and the exercise or settlement prices of such Awards, so as to maintain
the proportionate number of Shares or other securities without changing the
aggregate exercise or settlement price.

         (c) Any other provision hereof to the contrary notwithstanding (except
Section 10(a)), in the event SHPI is a party to a merger or other
reorganization, outstanding Awards shall be subject to the agreement of merger
or reorganization. Such agreement may provide, without limitation, for the
assumption of outstanding Awards by the surviving corporation or its parent, for
their continuation by SHPI (if SHPI is a surviving corporation), for accelerated
vesting and accelerated expiration, or for settlement in cash.

                                       8
<PAGE>

11.      Listing or Qualification of Common Stock

In the event that the Board of Directors determines in its discretion that the
listing or qualification of the Shares available for issuance under the Plan on
any securities exchange or quotation or trading system or under any applicable
law or governmental regulation is necessary as a condition to the issuance of
such Shares, a Restricted Stock or Stock Unit Award shall not vest unless such
listing, qualification, consent or approval has been unconditionally obtained.

12.      Termination or Amendment of the Plan

The Board of Directors may amend, alter or discontinue the Plan and the Board or
the Committee may to the extent permitted by the Plan amend any agreement or
other document evidencing an Award made under this Plan. No such amendment or
alteration shall be made, however, which would impair the rights of any
Participant, without such Participant's consent, under any Award theretofore
granted, provided that no such consent shall be required with respect to any
amendment or alteration if the Committee determines in its sole discretion that
such amendment or alteration either (i) is required or advisable in order for
the Corporation, the Plan or the Award to satisfy any law or regulation or to
meet the requirements of any accounting standard, or (ii) is not reasonably
likely to significantly diminish the benefits provided under such Award, or that
any such diminishment has been adequately compensated.

13.      Withholding

To the extent required by applicable federal, state, local or foreign law, the
Committee may and/or a Participant shall make arrangements satisfactory to the
Corporation for the satisfaction of any withholding tax obligations that arise
with respect to any Restricted Stock or Stock Unit Award or any sale of Shares.
The Corporation shall not be required to issue Shares, to pay other
consideration or to recognize the disposition of such Shares until such
obligations are satisfied. To the extent permitted or required by the Committee,
these obligations may or shall be satisfied by having the Corporation withhold a
portion of the Shares of stock or cash consideration that otherwise would be
issued or given to a Participant under such Award or by tendering Shares
previously acquired by the Participant.

14. General Provisions

         (a) Employment At Will. Neither the Plan nor the grant of any Award nor
any action by the Corporation, any Subsidiary or the Committee shall be held or
construed to confer upon any person any right to be continued in the employ of
the Corporation or a Subsidiary. The Corporation and each Subsidiary expressly
reserve the right to discharge, without liability but subject to his or her
rights under this Plan, any Participant whenever in the sole discretion of the
Corporation or a Subsidiary, as the case may be, its interest may so require.

         (b) Governing Law. This Plan and any agreements or other documents
hereunder shall be interpreted and construed in accordance with the laws of the
State of Delaware and applicable federal law. The Committee may provide that any
dispute as to any Award shall be presented and determined in such forum as the
Committee may specify, including through binding arbitration. Any reference in
this Plan or in the agreement or other document evidencing any Award to a
provision of law or to a rule or regulation shall be deemed to include any
successor law, rule or regulation of similar effect or applicability.

                                       9
<PAGE>

         (c) Unfunded Plan. Insofar as it provides for Awards, the Plan shall be
unfunded. Although bookkeeping accounts may be established with respect to
Participants who are granted Awards under this Plan, any such accounts will be
used merely as a bookkeeping convenience. The Corporation shall not be required
to segregate any assets which may at any time be represented by Awards, nor
shall this Plan be construed as providing for such segregation, nor shall the
Corporation or the Committee be deemed to be a trustee of stock or cash to be
awarded under the Plan.

         (d) Market Standoff. To the extent requested by the Corporation and any
underwriter of securities of the Corporation in connection with a firm
commitment or other underwriting, no Participant holding Shares will sell or
otherwise transfer any such Shares not included in such underwriting, during the
one hundred eighty (180) day period following the effective date of the
registration statement filed with the Securities and Exchange Commission in
connection with such offering.

         (e) Stock Certificates. Certificates representing the Shares issued
pursuant to Awards will bear all legends required by law and necessary to
effectuate this Plan's provisions. The Corporation may place a "stop transfer"
order against Shares until all restrictions and conditions set forth in this
Plan and in the legends referred to in this Section 14(e) have been complied
with.

         (f) Notices. Any notice to be given to the Corporation under the terms
of the Plan or under any agreement or other document evidencing an Award made
under this Plan will be addressed to the Corporation at its principal executive
office, Attn: Corporate Secretary, or at such other address as the Corporation
may designate in writing. Any notice to be given to a Participant will be
addressed to the Participant at the address provided to the Corporation by the
Participant. Any such notice will be deemed to have been duly given if and when
enclosed in a properly sealed envelope, addressed as aforesaid, registered and
deposited, postage and registry fee prepaid, in a post office or branch post
office regularly maintained by the United States Postal Service.

15.      Non-Exclusivity of Plan

Neither the adoption of this Plan by the Board of Directors nor the submission
of this Plan to the stockholders of the Corporation for approval shall be
construed as creating any limitations on the power of the Board of Directors or
the Committee to adopt such other incentive arrangements as either may deem
desirable, including without limitation, the granting of stock options, stock
appreciation rights, restricted stock or stock units otherwise than under this
Plan, and such arrangements may be either generally applicable or applicable
only in specific cases.

16.      Compliance with Other Laws and Regulations

This Plan, the grant and exercise of Awards thereunder, and the obligation of
the Corporation to sell, issue or deliver Shares under such Awards, shall be
subject to all applicable federal, state and local laws, rules and regulations
and to such approvals by any governmental or regulatory agency as may be
required. The Corporation shall not be required to register in a Participant's
name or deliver any Shares prior to the completion of any registration or
qualification of such Shares under any federal, state or local law or any ruling
or regulation of any government body which the Committee shall determine to be
necessary or advisable. To the extent the Corporation is unable to or the
Committee deems it infeasible to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Corporation's counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, the
Corporation shall be relieved of any liability with respect to the failure to
issue or sell such Shares as to which such requisite authority shall not have
been obtained.

                                       10
<PAGE>

17. Liability of Corporation

The Corporation shall not be liable to a Participant or other persons as to: (a)
the non-issuance or sale of Shares as to which the Corporation has been unable
to obtain from any regulatory body having jurisdiction the authority deemed by
the Corporation's counsel to be necessary to the lawful issuance and sale of any
Shares hereunder; and (b) any tax consequence expected, but not realized, by any
Participant or other person due to the receipt, exercise or settlement of any
Award granted hereunder.

                                       11

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