Document:

exv10w1

 

DATED 28 OCTOBER 2005

INTEGRATED STRATEGIC COMMUNICATIONS LIMITED

NOGA CONFINO

(as Sellers)

AND

ACE*COMM CORPORATION

(as Buyer)

 

DEED OF VARIATION AND SETTLEMENT RELATING TO

SALE AND PURCHASE OF THE ENTIRE ISSUED SHARE

CAPITAL OF DOUBLE HELIX SOLUTIONS LIMITED

 

 

 

This DEED is made on the twenty eighth day of October 2005

BETWEEN

	(1)	 	NOGA CONFINO of 1 Drake Road, Brockley, London (the “First Seller”);
	 
	(2)	 	INTEGRATED STRATEGIC COMMUNICATIONS LIMITED (formerly Springreel Limited) (company number
5385794), a private company limited by shares incorporated in England and Wales whose
registered office is at 6 Newbridge Hill, West Bergholt, Colchester, Essex CO6 3ER (the
“Second Seller”); and
	 
	(3)	 	ACE*COMM CORPORATION, a corporation organized under the laws of the State of Maryland, USA
(the “Buyer”).

RECITALS

	(A)	 	Whereas on 24 March 2005 the First Seller, the Second Seller and the Buyer entered into a
share sale and purchase agreement by which the Sellers sold and the Buyer purchased the entire
issued share capital of Double Helix Solutions Limited (the “Share Sale and Purchase
Agreement”).
	 
	(B)	 	Whereas on 12 April 2005 , the First Seller, the Second Seller and the Buyer entered into a
deed of restatement in relation to the Share Sale and Purchase Agreement (the “Deed of
Restatement”).

NOW IT IS AGREED AS FOLLOWS

	1.	 	INTERPRETATION

	 	1.1	 	Words and expressions as defined in the Share Sale and Purchase Agreement shall have the
same meaning in this Deed providing that the following additional expressions shall have the
following meanings:
	 
	 	 	 	“Bank Account” means the client bank account of the First Seller’s and the Second Seller’s
solicitors the details of which are as follows:
	 
	 	 	 	Barclays Bank Plc

Water Street

Liverpool L69 2DU

Account Name: Hill Dickinson Client Account

Account Number: 40429295

Sort Code: 20-51-01;

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	 	 	“Buyer Series 2B Loan Notes” means the loan notes in the form set out in the first schedule
to this Deed issued by the Buyer in favour of each of the Sellers on the Effective Date
pursuant to Clause 4.1(a);
	 
	 	 	“Effective Date” means the date of this Deed;
	 
	 	 	“Joint Written Direction ” means a written direction in the agreed form executed by the
Representatives;
	 
	 	 	“New Retained Shares” means the Exchange Shares to be transferred to the Escrow Agent
in accordance with the terms of this Agreement and to be held by the Escrow Agent in
accordance with the terms of the New Share Escrow Agreement;
	 
	 	 	“New Share Escrow Agreement” means the agreement in the agreed form to be entered into
between the First Seller, the Second Seller, the Buyer and the Escrow Agent relating to the
New Retained Shares;
	 
	 	 	“Representatives” means the representatives referred to in the Retained Share Escrow
Agreement;
	 
	 	 	“Retained Shares” means the 264,044 Exchange Shares held by the Escrow Agent under the terms
of the Retained Share Escrow Agreement; and
	 
	 	 	“Retained Share Escrow Agreement” means the agreement dated 24 March 2005 between the First
Seller, the Second Seller, the Buyer and the Escrow Agent relating to the Retained Shares.
	 
	1.2	 	The rules of interpretation set out in Clause 1.2 of the Share Sale and Purchase
Agreement shall apply mutatis mutandis to this Deed.

	2	 	RETURN OF SHARES

	 	2.1	 	Within 5 Business Days of the Effective Date:

	 	(a)	 	the First Seller shall:

	 	(i)	 	for the consideration set out in Clause 7, transfer 175,000 of
the Exchange Shares issued to her on Completion pursuant to Clause 5.3 (e) of
the Share Sale and Purchase Agreement to the Escrow Agent to be held by
the Escrow Agent in

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	 	 	 	accordance with the terms of the New Share Escrow Agreement; and
	 
	 	(ii)	 	to effect the transfer in the prior paragraph, deliver to the
Buyer Ace*Comm stock certificate AC0578 representing all of the 738,125
Exchange Shares issued to her on Completion pursuant to Clause 5.3(e) of the
Share Sale and Purchase Agreement, so that the Buyer can issue two stock
certificates for such number of shares, one for the number of shares specified
and to be held per the prior paragraph and one for the balance to be returned
to the First Seller; and

	 	(b)	 	the Second Seller shall:

	 	(i)	 	for the consideration set out in Clause 7, transfer 175,000 of
the Exchange Shares issued to it on Completion pursuant to Clause 5.3 (e) of
the Share Sale and Purchase Agreement to the Escrow Agent to be held by
the Escrow Agent in accordance with the terms of the New Share Escrow
Agreement ; and
	 
	 	(ii)	 	to effect the transfer in the prior paragraph, deliver to the
Buyer Ace*Comm stock certificate AC0580 representing all of the 738,125
Exchange Shares issued to it on Completion pursuant to Clause 5.3(e) of the
Share Sale and Purchase Agreement, so that the Buyer can issue two stock
certificates for such number of shares, one for the number of shares specified
and to be held per the prior paragraph and one for the balance to be returned
to the Second Seller.

	 	2.2	 	Within 5 Business Days of receipt of the stock certificates referred to in Clause 2.1,
the Buyer shall procure that the stock certificates contemplated by Clause 2.1 are issued
and delivered to the Escrow Agent and to each of the Sellers.

	3	 	RELEASE OF REATINED SHARES FROM RETAINED SHARE ESCROW AGREEMENT

	 	3.1	 	The parties agree that 75,000 of the Retained Shares registered in the name of the
First Seller and 75,000 of the Retained Shares registered in the name of the Second Seller
and held by the Escrow Agent at the date of this Deed under the terms of the Retained Share
Escrow Agreement shall, with effect from the Effective Date, be transferred out of the
escrow maintained under the Retained Share Escrow Agreement and into the escrow to be
maintained by the Escrow Agent under the terms of the New Share Escrow Agreement.

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	 	3.2	 	The Sellers and the Buyer hereby irrevocably instruct their Representatives to sign a
Joint Written Instruction directing the Escrow Agent to deal with the Retained Shares in
the manner set out in Clause 3.1.
	 
	 	3.3	 	The Buyer agrees that within 5 Business Days following delivery by the Escrow Agent to
the Buyer of Ace*Comm stock certificates AC0579 and AC 0581 it shall procure that such stock
certificates are cancelled and that:

	 	(a)	 	new stock certificates are issued in the name of each of the First Seller and
the Second Seller in respect of their interest in the 75,000 Retained Shares referred
to in Clause 3.1 and that such stock certificates are delivered to the Escrow Agent to
be held in accordance with the terms of the New Share Escrow Agreement; and
	 
	 	(b)	 	new stock certificates are issued in the name of each of the First Seller and
the Second Seller in respect of the Retained Shares referred to in Clause 3.1 which
remain subject to the Retained Share Escrow Agreement and that such stock certificates
are returned to the Escrow Agent.

	4	 	BUYER SERIES B LOAN NOTES

	 	4.1	 	Within 5 Business Days of the Effective Date, each of the First Seller and the Second
Seller shall deliver to the Buyer the Buyer Series B Loan Notes issued to them at Completion
pursuant to Clause 5.3(c) of the Share Sale and Purchase Agreement and the Buyer shall:

	 	(a)	 	issue to each of the Sellers on the Effective Date a Buyer Series 2B Loan Note
dated as of the Effective Date in a principal amount of £100,000 plus interest accrued
on such sum from the date of the Buyer Series B Loan Notes through to the Effective
Date at the rate set forth in the Buyer Series B Loan Notes, and procure that the
Sellers are recorded in the Buyer’s registers as the holders of such Buyer Series 2B
Loan Notes;
	 
	 	(b)	 	issue 59,042 Exchange Shares in the name of each of the Sellers providing that
such Exchange Shares and the stock certificates representing such shares shall be held
by the Escrow Agent pursuant to the terms of the New Share Escrow Agreement. Such
Exchange Shares shall be issued within 5 Business days after the Effective Date; and
	 
	 	(c)	 	in consideration of the issue of the Buyer Series 2B Loan Notes and the issue
of the Exchange Shares referred to in Clause 4.1(b), cancel the Buyer Series B Loan
Notes on the Effective Date.

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	5	 	NEW SHARE ESCROW AGREEMENT

	 	5.1	 	The parties will enter into the New Share Escrow Agreement at the same time as this
Agreement and agree that the New Retained Shares shall be dealt with in accordance with the
terms of the New Share Escrow Agreement.

	6	 	SHARE SALE AGREEMENT

	 	6.1	 	The parties agree that the following substitutions and amendments be made to the Share
Sale and Purchase Agreement:

	 	(a)	 	Schedule 6 shall be deleted and be replaced by the second schedule attached
to this Deed which shall apply in its place; and
	 
	 	(b)	 	Schedule 7 shall be deleted and be replaced by the third schedule attached
to this Deed which shall apply in its place.

	 	6.2	 	Save as provided otherwise in this Deed, all other terms and conditions in the Share Sale and
Purchase Agreement shall continue to apply and remain in full force and effect without
alteration, amendment, substitution, restatement or other change.

	7	 	FULL AND FINAL SETTLEMENT

	 	7.1	 	The parties agree that the entering into of this Deed shall be in full and final
settlement of all claims (if any) which the Buyer may have under or in respect of the Sale
and Purchase Agreement in relation to a breach of Warranty or misrepresentation primarily
directed at the level of future revenues of the Company including, without limitation, those
relating to relationships with customers of the Company at the time of Completion.
	 
	 	7.2	 	For the avoidance of doubt, save as provided in Clause 7.1, the Buyer does not waive:

	 	(a)	 	any claim or other action which it may have pursuant to the Share Sale and
Purchase Agreement in respect of any other breach of Warranty or breach of Tax
Warranty; or
	 
	 	(b)	 	any claim or other action which it may have under the Tax Covenant.

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	8	 	CONFIDENTIALITY AND ANNOUNCEMENTS

	 	8.1	 	Each of the Sellers severally undertakes to the Buyer to keep confidential the terms of
this Deed.
	 
	 	8.2	 	The Buyer undertakes to each of the Sellers to keep confidential the terms of this Deed.
	 
	 	8.3	 	A party does not have to keep confidential or to restrict its use of:

	 	(a)	 	information that is or becomes public knowledge other than as a direct or
indirect result of a breach of this Deed; or
	 
	 	(b)	 	information that it receives from a source not connected with the party to
whom the duty of confidence is owed that it has acquired free from any obligation of
confidence to any other person.

	 	8.4	 	Any party may disclose any information that it is otherwise required to keep confidential
under this Clause 8:

	 	(a)	 	to such professional advisers, consultants and employees or officers of its
Subsidiaries as are reasonably necessary to advise on this Deed, or to facilitate the
Transaction, if the disclosing party procures that the people to whom the information
is disclosed keep it confidential as if they were that party; or
	 
	 	(b)	 	with the written consent of the other parties; or
	 
	 	(c)	 	with the written consent of one party, if such information relates only to
that party; or
	 
	 	(d)	 	to confirm that the sale has taken place and the date of the sale (but
without otherwise revealing any other terms of sale or making any other announcement)
	 
	 	(e)	 	to the extent that the disclosure is required:

	 	(i)	 	by law; or
	 
	 	(ii)	 	by a regulatory body, Taxation Authority or securities
exchange; or
	 
	 	(iii)	 	to make any filing with, or obtain any authorisation from, a
regulatory body, Taxation Authority or securities exchange; or

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	 	(iv)	 	under any arrangements in place under which negotiations
relating to terms and conditions of employment are conducted; or
	 
	 	(v)	 	to protect the disclosing party’s interest in any legal
proceedings,
	 
	 	(vi)	 	but shall use reasonable endeavours to consult the other
parties and to take into account any reasonable requests they may have in
relation to the disclosure before making it.

	 	8.5	 	Each party shall supply any other party with any information about itself, its Group or
this Deed as such other party may reasonably require for the purposes of satisfying the
requirements of a law, regulatory body or securities exchange to which such other party is
subject.

	9	 	FURTHER ASSURANCE
	 
	 	 	Each party shall (at their own expense) promptly execute and deliver all such documents, and
do all such things, as the others may from time to time reasonably require for the purpose
of giving full effect to the provisions of this Deed.

	10	 	VARIATION AND WAIVER

	 	10.1	 	Any variation of this Deed shall be in writing and signed by or on behalf of the parties.
	 
	 	10.2	 	Any waiver of any right under this Deed is only effective if it is in writing and it
applies only to the party to whom the waiver is addressed and to the circumstances for which
it is given and shall not prevent the party who has given the waiver from subsequently
relying on the provision it has waived.
	 
	 	10.3	 	A party that waives a right in relation to one party, or takes or fails to take any
action against that party, does not affect its rights in relation to any other party.
	 
	 	10.4	 	No failure to exercise or delay in exercising any right or remedy provided under this
Deed or by law constitutes a waiver of such right or remedy or shall prevent any future
exercise in whole or in part thereof.
	 
	 	10.5	 	No single or partial exercise of any right or remedy under this Deed shall preclude or
restrict the further exercise of any such right or remedy.

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	 	10.6	 	Unless specifically provided otherwise, rights arising under this Deed are cumulative and
do not exclude rights provided by law.

	11	 	COSTS

	 	11.1	 	On the Effective Date the Buyer shall transfer to the Bank Account the sum of £17,625
sterling in satisfaction of the costs of the Sellers in connection with the negotiation,
drafting, execution and performance of this Deed and the actions contemplated herein
(collectively the “Negotiations”). The Sellers shall be solely responsible for all other
costs incurred by them in connection with the Negotiations.
	 
	 	11.2	 	For the avoidance of doubt, the Buyer shall be responsible for the payment of all its
costs incurred in connection with the Negotiations.

	12	 	NOTICE

	 	12.1	 	A notice given under this Deed:

	 	(a)	 	shall be in writing in the English language (or be accompanied by a properly
prepared translation into English);
	 
	 	(b)	 	shall be sent for the attention of the person, and to the address or fax
number, specified in this Clause 12 (or such other address, fax number or
person as each party may notify to the others in accordance with the provisions of this
Clause 12); and
	 
	 	(c)	 	shall be:

	 	(i)	 	delivered personally; or
	 
	 	(ii)	 	sent by fax; or
	 
	 	(iii)	 	sent by pre-paid first-class post, recorded delivery or
registered post; or
	 
	 	(iv)	 	(if the notice is to be served by post outside the country from
which it is sent) sent by registered airmail.

	 	12.2	 	For the purposes of this Clause 12, the addresses to which notices should be sent
are as follows:

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	 	12.2.1	 	To the Sellers:

	 	 	 	 	 	 	 
	 

	 	(a)
	 	Address:
	 	1 Avenue General Foy
	 

	 	 	 	 	 	Maison-Laffitte
	 

	 	 	 	 	 	Paris
	 

	 	 	 	 	 	France 78600
	 
	 	 	 	 	 	 
	 	 	 	 	Fax number:	 	+33 1 34 93 01 25
	 
	 	 	 	 	 	 
	 

	 	 	 	For the attention of:                   Jean-Francois Jodouin

	 
	 	 	 	 	 	 
	 

	 	(b)
	 	Address:
	 	1 Drake Road
	 

	 	 	 	 	 	Bockley
	 

	 	 	 	 	 	London
	 

	 	 	 	Fax number:
	 	+44 20 86 92 81 14
	 
	 	 	 	 	 	 
	 	 	 	 	For the attention of:             Noga Confino
	 
	 	 	 	 	 	 
	 	 	with a copy for information purposes only to:
	 
	 	 	 	 	 	 
	 	 	Hill Dickinson
	 	 	50 Fountain Street
	 	 	Manchester M2 2AS
	 
	 	 	 	 	 	 
	 	 	Fax number: +44 (161) 817 7201
	 
	 	 	 	 	 	 
	 	 	Attention: Tom Ferns, Esq.
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 	12.2.2	 	To the Buyer:

	 	 	 	 	 
	 

	 	Address:
	 	ACE*COMM CORPORATION
	 

	 	 	 	704 Quince Orchard Road
	 

	 	 	 	Suite 100
	 

	 	 	 	Gaithersburg, MD 20878
	 

	 	 	 	USA
	 
	 	 	 	 
	 	 	Fax number: +1 (301) 208-3759
	 
	 	 	 	 
	 	 	For the attention of: Steven R. Delmar
	 
	 	 	 	 
	 	 	with a copy for information purposes only to:
	 
	 	 	 	 
	 	 	Hogan & Hartson L.L.P.

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Columbia Square

555 Thirteenth Street, N.W.

Washington, DC 20004-1109

USA

Fax number: +1 (202) 637 5910

Attention: Steven Kaufman, Esq.

and

Hogan & Hartson

One Angel Court

London EC2R 7HJ

ENGLAND

Fax number: +44 (207) 367 0220

Attention: Sean P. Harrison, Esq.

	12.3	 	A notice is deemed to have been received:

	 	(a)	 	if delivered personally, at the time of delivery; or
	 
	 	(b)	 	in the case of fax, at the time of transmission; or
	 
	 	(c)	 	in the case of pre-paid first class post, recorded delivery or registered
post, 48 hours from the date of posting; or
	 
	 	(d)	 	in the case of registered airmail, five days from the date of posting; or
	 
	 	(e)	 	if deemed receipt under the previous paragraphs of this Clause 12 is
not within business hours (meaning 9.00 am to 5.30 pm Monday to Friday on a day that is
not a public holiday in the place of receipt), when business next starts in the place
of receipt.

	12.4	 	To prove service, it is sufficient to prove by way of machine generated confirmation that
the notice was transmitted by fax in full to the fax number of the party to which it was
addressed or, in the case of postal service, that the envelope containing the notice was
properly addressed and posted.

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	13	 	SEVERANCE

	 	13.1	 	If any provision of this Deed (or part of a provision) is found by any court or
administrative body of competent jurisdiction to be invalid, unenforceable or illegal, the
other provisions shall remain in force.
	 
	 	13.2	 	If any invalid, unenforceable or illegal provision would be valid, enforceable or legal
if some part of it were deleted, the provision shall apply with whatever modification is
necessary to give effect to the commercial intention of the parties.

	14	 	THIRD PARTY RIGHTS

	 	14.1	 	A person who is not a party to this Deed has no rights under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Deed.
	 
	 	14.2	 	Each of the parties represents to the others that their respective rights to terminate,
rescind or agree any amendment, variation, waiver or settlement under this Deed are not
subject to the consent of any person that is not a party to this Deed.

	15	 	SUCCESSORS
	 
	 	 	The rights and obligations of the Sellers and the Buyer under this Deed shall continue for
the benefit of, and shall be binding on, their respective successors and permitted assigns.

	16	 	COUNTERPARTS; FACSIMILE
	 
	 	 	This Deed may be executed in any number of counterparts, each of which is an original and
which together have the same effect as if each party had signed the same document. This
Deed may be executed and delivered via facsimile.

	17	 	LANGUAGE
	 
	 	 	If this Deed is translated into any language other than English, the English language text
shall prevail.

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	18	 	GOVERNING LAW AND JURISDICTION

	 	18.1	 	This Deed and any disputes or claims arising out of or in connection with its subject
matter are governed by and construed in accordance with the laws of England and Wales.
	 
	 	18.2	 	The parties irrevocably agree that the courts of England shall have exclusive
jurisdiction to settle any dispute or claim that arises out of or in connection with this
Deed.

	19	 	PUBLIC ANNOUNCEMENTS
	 
	 	 	The parties will consult with each other, and agree, before issuing any press release or
otherwise making any public statement with respect to this Deed or the transactions
contemplated hereby and will not issue any such press release or make any such public
statement prior to such consultation, except as may be required by law or any listing
agreement with a national securities exchange or inter-dealer quotation system.

	20	 	SERVICE OF PROCESS

	 	20.1	 	Each party irrevocably agrees with the other that any Service Document may be
sufficiently and effectively served on it in connection with any Proceedings in England and
Wales by service on its process agent.
	 
	 	20.2	 	For the purposes of this Clause, the Buyer appoints as its process agent in connection
with Proceedings in England and Wales, Law Debenture Corporate Services whose address is at
5th Floor, 100 Wood Street, London EC2V 7EX.
	 
	 	20.3	 	For the purposes of this Clause, the First Seller appoints as her process agent in
connection with Proceedings in England and Wales, Integrated Strategic Communications
Limited (company number 5385794) whose registered office is at 6 Newbridge Hill, West
Bergholt, Colchester, Essex C06 3ER.
	 
	 	20.4	 	Each of the First Seller and the Buyer agrees to maintain the appointment of its process
agent (and any replacement process agent appointed pursuant to this Clause) and that it
shall not withdraw the appointment of any such process agent until its replacement shall
have been validly appointed and the name and address of the replacement process agent
notified to the other party.

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	 	20.5	 	If the process agent referred to in Clause 20.2 or 20.3 (or any
replacement process agent appointed pursuant to this Clause) at any time ceases for any
reason to act as such, his appointor shall appoint a replacement process agent with an
address for service in England or Wales, and shall notify the other party of the name and
address of the replacement process agent. If the First Seller or the Buyer (“Defaulting
Party”) fails to appoint a replacement process agent or notify the other parties of the name
and address of a replacement process agent as required by this Clause, the other parties
shall be entitled by notice to the Defaulting Party to appoint such a replacement process
agent to act on the Defaulting Party’s behalf. The Defaulting Party shall bear all the
costs and expenses of replacement process agent appointed by the other party in these
circumstances.
	 
	 	20.6	 	Any Service Document served pursuant to this Clause shall be marked for the attention of
the relevant process agent appointed pursuant to this Clause and addressed to the address
set out in Clause 20.2 or 20.3 (as the case may be) or to his address
notified pursuant to Clause 20.4 or 20.5 (as the case may be).
	 
	 	20.7	 	Any Service Document marked for the attention of the relevant process agent and addressed
to the address set out in Clause 20.2 or 20.3 (as the case may be) or at the
address notified pursuant to Clause 20.4 or 20.5 (as the case may be)
pursuant to Clause 20.6 shall be deemed to have been duly served if:

	 	(a)	 	left at such address, when it is left; or
	 
	 	(b)	 	sent by courier, 2 (two) business days after the date it has been sent.

	 	20.8	 	Each party shall send by post to the other parties a copy of any Service Document served
by it (or on its behalf) on a process agent pursuant to this Clause, but no failure or delay
in doing so shall prejudice the effectiveness of service of the Service Document in
accordance with this Clause.
	 
	 	20.9	 	Each party agrees that failure by any process agent to give notice of any process to it
or give a copy of any Service Document served on it shall not impair the validity of such
service or of any Proceedings based on that process.
	 
	 	20.10	 	Nothing contained in Clauses 20.1 to 20.9 affects the right to serve a Service
Document in another manner permitted by law (excluding by post).

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	21	 	REGISTRATION RIGHTS

	 	21.1	 	In relation to the 563,125 Completion Shares held by the Sellers, the Buyer shall prepare
and file with SEC the Initial Shelf Registration Statement referred to in Clause 15.1 (a) of
the Sale and Purchase Agreement as soon as is reasonably practicable after the execution of
this Deed and completion of the current review being carried out by SEC in relation to the
Buyer.
	 
	 	21.2	 	In relation to the 114,044 Retained Shares held by the Escrow Agent under the Retained
Share Escrow Agreement, the Buyer shall prepare and file with SEC an additional shelf
registration statement in the manner set out in Clause 15.1 (b) of the Sale and Purchase
Agreement as soon as is reasonably practicable after the issuance of such Retained Shares to
the Sellers under the terms of the Retained Share Escrow Agreement.
	 
	 	21.3	 	In relation to the 618,084 New Retained Shares held by the Escrow Agent under the New
Retained Share Escrow Agreement, the Buyer shall prepare and file with SEC another
additional shelf registration statement in the manner set out in Clause 15.1 (b) of the Sale
and Purchase Agreement as soon as is reasonably practicable after the issuance of such New
Retained Shares to the Sellers under the terms of the Retained Share Escrow Agreement.
	 
	 	21.4	 	In relation to any Excess Shares issued under Schedule 6 of the Sale and Purchase
agreement and/or any shares of common stock issued under the terms of Buyer Series 2B Loan
Notes (“Relevant Shares”), the Buyer shall prepare and file with SEC a further additional
shelf registration statement in the manner set out in Clause 15.1 (b) of the Sale and
Purchase Agreement as soon as is reasonably practicable after the issuance of such Relevant
Shares to the Sellers.
	 
	 	21.5	 	The parties acknowledge and agree that the other provisions of Clause 15 relating to the
Initial Registration Statement and the Additional Shelf Registration Statement (as
applicable) shall apply to the Initial Shelf Registration Statement and each additional
shelf registration statement (s) referred to in this Deed.

IN WITNESS WHEREOF this document has been executed as a Deed with the intent that it is
delivered as such as of the day and year first above written.

[Remainder of page left intentionally blank]

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FIRST SCHEDULE

FORM OF BUYER SERIES 2B LOAN NOTE

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SECOND SCHEDULE

[TO REPLACE THE EXISTING SCHEDULE 6 IN THE SHARE SALE AND

PURCHASE AGREEMENT]

SCHEDULE 6

EARN OUT

This Schedule sets forth the terms and conditions of the calculation of the Earn-out pursuant to
the Agreement.

	1.	 	Number of New Retained Shares To be Returned to the Sellers If the Earn-out Revenue is less
than 75 per cent of the Target Revenue then all of the New Retained Shares shall be returned
to the Buyer. If the Earn-Out Revenue is equal to or more than 75 per cent of Target Revenue
but less than 100 per cent of Target Revenue then a portion of the New Retained Shares shall
be returned to the Sellers in accordance with the sliding scale below:

	 	 	 	 	 
	      % of Target Turnover Achieved	 	% of Earn Out Shares to be Returned to Sellers
	      75%
	 	 	20	%
	      Over 75% but less than 80%
	 	 	20	%
	      80%
	 	 	25	%
	      Over 80% but less than 85%
	 	 	25	%
	      85%
	 	 	35	%
	      Over 85% but less than 90%
	 	 	35	%
	      90%
	 	 	65	%
	      Over 90% but less 95%
	 	 	65	%
	      95%
	 	 	80	%
	      Over 95% but less 100%
	 	 	80	%

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Any New Retained Shares not returned to the Sellers under this clause shall be returned to Buyer in
each case in accordance with the terms of the New Share Escrow Agreement.

If the Earn Out Revenue is more than the Target Revenue then all the New Retained Shares shall be
returned to the Sellers in the Agreed Proportions and the Buyer will additionally allot and issue
to the Sellers in the Agreed Proportions 30,904 additional Exchange Shares (“Excess Shares”) for
each 5 per cent excess of Target Revenue.

Adjustments in the Case of Sale

In the event of any sale of any company or business entity in the Buyer Group which is involved in
the sale and/or supply of Network Business Intelligence Products and/or Services of the Company or
in the event of a sale of the proprietary rights in the Network Business Intelligence Products
and/or Services of the Company (other than in the ordinary course of trading):

	 	(a)	 	in the case of a sale of a company or a business entity, the average monthly
revenue for that company or business entity attributable to the sale and/or supply of
Network Business Intelligence Products and/or Services of the Company over the last
three full months prior to the sale date will be determined, and in the
case of the sale of all proprietary rights relating to one or more Network Business
Intelligence Products and/or Services of the Company other than in the ordinary course
of trading (effectively giving the buyer the exclusive right to produce such Products
or provide such Services) the average monthly revenue attributable to the sale and/or
supply of the relevant Network Business Intelligence Products and/or Services of the
Company sold over the last three full months prior to the sale date will be
determined (each, a “Prorated Reduction Amount”);
	 
	 	(b)	 	the average monthly growth rate for the Network Business Intelligence
Products and/or Services of the Company over the last three full months prior to the
sale date will be determined (the “Average Growth Rate”), and the Average Growth
Rate will be applied to the Prorated Reduction Amount for the first month of the
Earn-out Period occurring after the sale date and then to the Prorated Reduction
Amounts as increased by the application of the previous months Average Growth Rate
during each subsequent month of the remainder of the Earn-Out Period (the
“Attributable Growth Amount”);

18

 

	 	(c)	 	the Attributable Growth Amount will then be added to the Prorated Reduction
Amount for each month of the remainder of the Earn-Out Period to determine the revenue
attributable to the Network Business Intelligence Products and/or Services of the
Company sold for the remainder of the Earn-out Period (the “Attributable Revenue
Reduction”); and
	 
	 	(d)	 	the Target Revenue shall be reduced by the Attributable Revenue Reduction.

	 	 	2 Earn-Out Statements. Within 30 days following the end of each month comprising part of the
Earn-out Period, the Buyer shall prepare and deliver to the Sellers a calculation of the Earn-out
Revenue to date (the “Earn-out Statements”). The Earn-out Statements shall be prepared in
accordance with U.S. GAAP. The Sellers shall have 60 days following delivery of each set of
Earn-out Statements to raise in writing to the Buyer any objections regarding such set of Earn-out
Statements. If no objections are raised within such period, the calculation shall become final and
binding upon the parties. Within sixty days following the end of the final month comprising the
Earn-out Period or thirty days following resolution of the last of any disputes concerning any
Earn-out Statements, whichever is the later, the Buyer shall prepare and deliver to the Sellers a
calculation of the Earn-out Revenue for the entire Earn-out Period on the basis of the Earn-out
Statements agreed by the Parties and the according Earn Out Payment to be made.
	 
	 	 	The Buyer will provide the Sellers with such information as the Sellers or their advisors may
reasonably request for the purposes of checking and verifying the Earn-out Statements delivered to
them in accordance with this paragraph 2.
	 
	 	 	3 Dispute Resolution. The parties agree to negotiate in good faith to resolve any dispute in with
respect to the Earn-out. All disputes with respect to the Earn-out which cannot be resolved by
mutual agreement of the Buyer and Sellers within 30 days shall be referred to an independent firm
of accountants (the “Expert”) to be agreed upon by the parties or, failing agreement, to be
selected by the President for the time being of the of the Institute of Chartered accounts in
England and Wales. The Expert shall act as an expert (and not as an arbitrator) in making such
determination. Both Buyer and Sellers shall have an opportunity to submit to such Expert any
materials or information supporting their positions. The determination of the Expert shall (save
in the case of manifest error) be conclusive and binding on each party, and judgment upon any such
determination may be entered in any court having jurisdiction over the matter. The fees of such
firm in rendering a determination on any dispute shall be borne by Buyer.
	 
	 	 	4 New Share Escrow Agreement. Each of the Sellers and the Buyer agree to instruct the
representatives appointed by them under the New Retained Share Escrow Agreement to give a joint

19

 

written direction to the Escrow Agent to distribute the Retained Shares to the Buyer and/or the
Sellers in accordance with the terms of this Schedule 6.

	5	 	Definitions. For purposes of this Schedule, the following terms shall have the meanings set
out below. All other capitalized terms used but not defined herein shall have the meanings
set forth in the Agreement.
	 
	 	 	“Buyer Group” means the Buyer and any entity and/or company over which it has direct or
indirect Control as of the time of execution of this agreement;
	 
	 	 	“Earn-out Period” shall mean the 24 month period ending 30 June 2007.
	 
	 	 	“Earn-out Revenue” shall mean all worldwide revenue relating to sale and/or supply of all
Network Business Intelligence Products and/or Services of the Company by the Buyer, the
Company and/or any entity in the Buyer Group during the Earn-Out Period;
	 
	 	 	“Escrow Agent” means Wachovia Bank, National Association, a national banking association;
	 
	 	 	“Network Business Intelligence Products and/or Services of the Company” means the
following products and services created, produced and supplied by the Company together with
subsequent generations of such products and other products that derive their primary
functionality from the methods and technology contained in the following, as such methods
and technology may be improved or modified over time: Network Inspector, Network Collector,
Scheduler, Network Visualisation, Data Integration Models (network model, customer and
services model), Discrepancy Inspector, Discrepancy Manager and Network Browser, Switch
Migration Tool and Collectors and adapters to external systems comprising Nortel DMS 100
adapter, Nokia DX220 adapter, Marconi System X adapter, Siemens adapter, Cortex adapter,
Cortex extraction and import, Network Managers NMC3000 adapter, Nokia NMS 1000 adapter,
Nortel EC1 adapter and ICMS adapter together with Revenue Assurance services, Asset Recovery
services and Switch migration or other services utilizing such products;
	 
	 	 	“New Share Escrow Agreement” means the agreement in the agreed form to be entered into
between the First Seller, the Second Seller, the Buyer and the Escrow Agent relating to the
New Retained Shares;
	 
	 	 	“New Retained Shares“ means the Exchange Shares to be transferred to the Escrow Agent
in accordance with the terms of this Agreement and the held by the Escrow Agent in
accordance with the terms of the New Share Escrow Agreement; and

20

 

	 	 	“Target Revenue” means Earn Out Revenue of US$11,000,000.

21

 

SECOND SCHEDULE

[TO REPLACE THE EXISTING SCHEDULE 7 IN THE SHARE SALE AND

PURCHASE AGREEMENT]

SCHEDULE 7

FURB RETENTION ACCOUNT

	1.	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	“Cash Retention Account” means an interest bearing solicitor’s reserve account opened by the
Sellers Solicitors and to be operated in accordance with the provisions of this schedule;
	 
	 	 	“Final Determination” means a Revenue Determination:

	 	(a)	 	which is agreed in writing by the Sellers and in respect of which the Company
enters into a contract settlement with the Inland Revenue or such other binding
agreement pursuant to which the Inland Revenue formally brings its enquiry to an end;
or
	 
	 	(b)	 	in respect of which the Inland Revenue issues a closure notice pursuant to
Schedule 18 of the Finance Act 1998 or such other formal notice to the effect that it
has completed its investigation in relation to the Company stating its determination or
conclusion as to the amount of national insurance contributions due and payable by the
Company from which there is no appeal or the Company does not appeal within which such
appeal may be brought; or
	 
	 	(c)	 	in respect of which a court of competent jurisdiction in England from which
there is no further appeal or from whose judgment the Company does not appeal within
the period during which such appeal may properly be brought;

“FURBS” means the Funded Unapproved Retirement Pension Schemes operated by or on behalf
the Second Seller and Mr Jodouin;

“FURB CLAIM” means any claim by the Inland Revenue in relation to the FURBS and/or

22

 

associated employer national insurance contributions;

“Instruction Letter” means the solicitor’s instruction letter in agreed form to be executed
by each of the Sellers and the Buyer;

“Loan Notes” means the Buyer Series 2B Loan Notes issued to the Sellers as may be amended,
restated, substituted or replaced from time to time;

“Loan Note Repayment Date” 30 September 2006 or such earlier date upon which the cash sum
due under such Loan Notes are due to be repaid by the Buyer in accordance with their terms;

“NIC Liability” means a liability on the Company to pay employers national insurance
contributions by reason of the contributions made by the Company to the FURBS;

“NIC Liability Amount” means the NIC Liability less any corresponding saving in corporation
tax which the Company would be entitled to and subject to the NIC Liability Cap;

“NIC Liability Cap” means a maximum sum of £71,406.05;

“Relevant Date” means 30 days following the date of the Revenue Determination;

“Retention” means the cash sum referred to in Clause 2.2 (a); and

“Revenue Determination” means a determination by the Inland Revenue as to whether there is
an NIC Liability.

	2.	 	Final Determination
	 
	2.1	 	If on the Loan Note Repayment Date there has been a Final Determination:

	 	(a)	 	if the Final Determination is that there is an NIC Liability, the NIC Liability
Amount shall be deducted from the amount payable under the Loan Notes to the Sellers
in the Agreed Proportions and the balance of the sum due under the Loan Notes shall be
paid by the Sellers in accordance with the terms of the Loan Notes;
	 
	 	(b)	 	if the Final Determination is that there is not a NIC Liability the sums due to
the Sellers under the Loan Notes shall be paid to the Sellers in full in accordance
with the terms of the Loan Notes.

	2.2	 	If on the Loan Note Repayment Date there has not been a Final Determination:

23

 

	 	(a)	 	if the Loan Notes are redeemed in cash up to a value at least £71,406.05
(seventy one thousand four hundred and six pounds sterling and five pence), the Sellers
shall procure that the sum of £71,406.05 (seventy one thousand four hundred and six
pounds sterling and five pence) is paid by electronic transfer to the Cash Retention
Account in the Agreed Proportions and held in accordance with the terms and conditions
of paragraph 3 below; and
	 
	 	(b)	 	if the Loan Notes are redeemed in Ace*Comm Stock (as defined in the Loan Notes)
the Buyer shall withhold from the issue to the Sellers ACE*Comm Stock (the “Withheld
Stock”) up to a value of £71,406.05 (seventy one thousand four hundred and six pounds
sterling and five pence) in the Agreed Proportions and the following provisions shall
then apply:

	 	(i)	 	if the Final Determination is that there is an NIC Liability,
the Withheld Stock shall not be issued the Sellers in full and final settlement
of the FURB Liability up to the value of £71,406.05 (seventy one thousand four
hundred and six pounds sterling and five pence); and
	 
	 	(ii)	 	if the Final Determination is that there is not an NIC
Liability the Withheld Stock shall forthwith be issued by the Buyer to the
Sellers in the Agreed Proportions.

	3.	 	Cash Retention Account
	 
	3.1	 	The following provisions shall apply in respect of the Cash Retention Account:

	 	(a)	 	all interest earned in respect of the Retention shall be credited to the Cash
Retention Account;
	 
	 	(b)	 	no other credit shall be made to the Cash Retention Account without the joint
instructions of the Buyer and the joint instructions of the Sellers;
	 
	 	(c)	 	no withdrawal shall be made from the Cash Retention Account except in
accordance this clause 3 upon the joint instructions of the Buyer and the Sellers or as
may otherwise be ordered by a court of competent jurisdiction;
	 
	 	(d)	 	neither the Buyer nor the Sellers shall have any entitlement to interest until
payment of the principal to which it relates.

24

 

	3.2	 	On the Relevant Date:

	 	(a)	 	if the Final Determination is that there is an NIC Liability, the NIC Liability
Amount shall be paid out of the Retention Sum to the Buyer together with the related
interest and the balance of the sum due shall be paid to the Sellers in the Agreed
Proportions;
	 
	 	(b)	 	if the Final Determination is that there is not an NIC Liability, the Retention
Sum shall be paid out of the Cash Retention Account in the Agreed Proportions together
with the related interest.

	3.3	 	In consideration of the Sellers’ Solicitors agreeing to open the Cash Retention Account and
act in accordance with the instructions of the Buyer and the Sellers, the Buyer and the
Sellers agree that:

	 	(a)	 	the Sellers’ Solicitors are not obliged to take any action with respect to the
Retention Account except in accordance with the terms of schedule or upon the joint
written instructions of the Buyer and the Sellers;
	 
	 	(b)	 	the Sellers’ Solicitors may place the sums in the Cash Retention Account on
deposit for such period as may be agreed or, failing agreement, on weekly deposit.
	 
	 	(c)	 	the Sellers’ Solicitors shall have no responsibility for the rate or amount of
interest earned;
	 
	 	(d)	 	the Buyer and the Sellers will pay the Sellers’ Solicitors fees and expenses
(including VAT) incurred in connection with establishing and operating the Retention
Account;
	 
	 	(e)	 	the Buyer and the Sellers will indemnify the Sellers’ Solicitors against all
liabilities incurred by the Sellers’ Solicitors in respect of the operation of the
Retention Account and in particular against any costs (on a full indemnity basis) of
defending or being party to any claim arising out of the operation of the Cash
Retention Account;.
	 
	 	(f)	 	the Sellers’ Solicitors shall be entitled to pay out of the Cash Retention
Account:

	 	(I)	 	any taxation which may be payable as a matter of law in
respect of interest accrued on the amount standing from time to time to
the credit of the Retention Account; and
	 
	 	(II)	 	all bank charges payable in respect of the Retention
Account.

25

 

	4.	 	Conduct of Claims for a Contingent Tax Liability
	 
	4.1.1	 	The Sellers, or such advisers as the Sellers may instruct, shall be entitled at the Sellers
own expense to avoid, dispute, appeal, mitigate, resist or compromise the FURB Claim in the
name of the Company and to have the conduct of any appeal, dispute, compromise or defence of
the FURB Claim.
	 
	4.1.2	 	The Sellers shall:

	 	(a)	 	keep the Buyer fully informed of all matters known to the Sellers, or its
advisers, concerning the FURB Claim and provide the Buyer with copies of all material
documents and correspondence relating to the FURB Claim; and
	 
	 	(b)	 	submit to the Buyer drafts of all material communications relating to the FURB
Claim which the Sellers, or its advisers, intends to make to the relevant Tax Authority
at least five Business Days before the communication is made.

26

 

	 	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	/s/Tom Ferns
	INTEGRATED STRATEGIC

	 	 	)	 	 	 
	COMMUNICATIONS LIMITED

	 	 	)	 	 	 
	acting by its duly appointed attorney in

	 	 	)	 	 	 
	the presence of:

	 	 	)	 	 	 

	 	 	 
	Witness’ Signature:

	 	/s/ PB Doyle
	 
	 	 
	Witness’ Name:

	 	Patricial B. Doyle
	 
	 	 
	Witness’ Address:

	 	50 Fountain Street
	 

	 	Manchester M2 2AB

	 	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 
	NOGA CONFINO

	 	 	)	 	 	/s/ Tom Ferns
	Acting by her duly appointed
	 	 	 	 	 	 
	attorney in the presence of:
	 	 	 	 	 	 

	 	 	 
	Witness’ Signature:

	 	/s/ PB Doyle
	 
	 	 
	Witness’ Name:

	 	Patricial B. Doyle
	 
	 	 
	Witness’ Address:

	 	50 Fountain Street
	 

	 	Manchester M2 2AB

	 	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	/s/ Steven S. Delmar
	ACE*COMM CORPORATION

	 	 	)	 	 	 
	acting by its duly authorised representative

	 	 	)	 	 	 
	and in accordance with the laws of its

	 	 	)	 	 	 
	state of incorporation and its Certificate of

	 	 	)	 	 	 
	Incorporation and its Bylaws

	 	 	)	 	 	 

27exv10w2

 

26 September, 2006

Integrated Strategic Communications Limited

6 Newbridge Hill

West Bergholt

Colchester

Essex Co6 3ER

Dear Sirs

We refer to Buyer Series 2B Loan Note issued on 28 October 2005 with a Maturity Date of 30
September 2006 and the Deed of Variation and Settlement relating to the sale and purchase of the
entire issued share capital of Double Helix Solutions Limited dated 28 October 2005 (the “Variation
Deed”). Capitalized terms as used in this letter shall have the same meaning as set out therein.

We note that under the terms of the Buyer Series 2B Loan Note, the sum of £111,714.79 including
interest is due to you on 30 September 2006 and that under the Variation Deed we are entitled to
deduct the sum of £35,703.025 from the sum to be paid to you under the Buyer Series 2B Loan Note in
relation to a FURB claim pending Final Determination of the FURB claim.

We propose that notwithstanding Clause 2(a) of the Note payment of both the principal amount and
all Interest accrued thereon payable under the Note be made by the issue of 101,927 shares of
common stock of the Borrower to the Holder (the “Shares”), which number of Shares was determined
based upon the volume weighted average price of our common stock during the trading hours of 9.30am
to 4pm (Eastern Standard Time) over the preceding ten trading days ending on September 25, 2006 and
using the mid market spot rate for the conversion of pounds sterling into US Dollars on September,
25 2006 as published in the London edition of the Financial Times on September 26, 2006. Such
payment shall be in full satisfaction of all liabilities and obligations of the Borrower to the
Holder under the Note which shall be deemed satisfied and cancelled upon your acceptance of this
proposal, subject to the issuance of the Shares as provided herein.

We propose that 69,352 Shares be issued to you on the date hereof (the “First Shares”) and that
32,575 Shares be withheld (the “Second Shares”) in relation to the FURB claim and be dealt with in
accordance with paragraph 2.2(b) of Schedule 7 of the Share Sale and Purchase Agreement as amended
by the Second Schedule of the Variation Deed.

In consideration of your agreement to receive payment of the Note by way of the Shares in lieu of
cash, we agree to use all reasonable efforts to file a registration statement covering the Shares
promptly after the date of issue (and, in the case of the First Shares, in any event by no later
than 31 October 2006) and to make all other filings required by SEC rules or requested by the SEC
in order for the registration statement to become effective. For the avoidance of doubt, upon such
filings becoming effective, the limitations in respect of the sale of shares held by the Holder in
the Borrower imposed pursuant to Clause 15 of the share sale and purchase agreement dated 24 March
2005 relating to Double Helix Solutions Limited (as amended), will not apply to the sale of the
Shares after the registration statement becomes effective (providing that such limitations shall
continue to apply, to the extent applicable, in all other respects to any other shares held by the
Holder in the Borrower).

 

 

We also have received written instructions from you requesting that the Shares be issued in
certificated form and will procure that you are recorded in the Buyer’s stock registers as the
holder of the shares then issued and the relative stock certificates be issued to you. We note
that we can reissue the shares in uncertificated form following the registration statement becoming
effective if you surrender the certificated shares to the Borrower at that time.

The proposal set out in this letter, if accepted, shall be governed by and construed in accordance
with, and enforced under, the laws of the state of Maryland, without regard to the conflicts of law
principles thereof.

Please confirm your agreement to the proposals set out in this letter by signing where indicated
below.

Yours faithfully

/s/ Steven R. Delmar

Duly authorized signatory

for and on behalf of

ACE*COMM Corporation

 

AGREEMENT

We irrevocably agree to the proposal from ACE**COMM Corporation to us as set out above relating to
the repayment of the Buyer Series 2B Loan Note issued on 28 October 2005.

	 	 	 	 	 
	                 
               /s/ D. Confino
 

Duly authorised director for and on behalf of
Integrated Strategic Communications Limited

	 	 
	 	Dated: 27 September 2006
	 
	 	 	 	 
	/s/ H. L

	 	 	 	Date 27-9-2006
	Company Secretary

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