Document:

exhibit101.htm

    EXHIBIT
10.1

     

    EXECUTIVE
EMPLOYMENT AGREEMENT

     

    (AMENDED
AND RESTATED CHANGE OF CONTROL AGREEMENT)

     

    This
Amended and Restated Executive Employment Agreement (this “Agreement”), by and
between Puget Sound Energy, Inc., a Washington corporation (the “Company”), and [Executive Name] (the “Executive” and,
together with the Company, the “Parties”), is dated
as of March [__], 2009, with employment
effective as of the Effective Date (as defined in Section 1).

     

    WHEREAS,
pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”),
dated as of October 25, 2007, by and among Puget Energy, Inc., a Washington
corporation (“Puget”), Padua
Holdings LLC (now Puget Holdings LLC), a Delaware limited liability company (the
“Parent”),
Padua Intermediate Holdings Inc. (now Puget Intermediate Holdings Inc.), a
Washington corporation and wholly owned subsidiary of the Parent, and Padua
Merger Sub Inc. (which later changed its name to Puget Merger Sub Inc.), a
Washington corporation and a wholly owned subsidiary of Padua Intermediate
Holdings Inc (“Merger
Sub”), Merger Sub shall merge with and into Puget, and Puget will become
a wholly owned indirect subsidiary of the Parent (the “Merger”);

     

    WHEREAS,
the Company and the Executive are parties to a Change of Control Agreement,
dated as of [__________] [, as amended and restated
on [__________] ] (the “Original Agreement”);
and

     

    WHEREAS,
in connection with the Merger, the Company and the Executive desire to amend and
restate the Original Agreement so that the Original Agreement will be replaced
in its entirety with this Agreement;

     

    WHEREAS,
the Parties hereby agree to amend and restate the Original Agreement in its
entirety pursuant to the terms and conditions herein provided;-

     

    NOW,
THEREFORE, THE PARTIES AGREE AS FOLLOWS:

     

    1.           Certain
Definitions

     

    (a)           “Accrued Obligations”
is defined in Section 5(a)(i)(A).

     

    (b)           “Annual Base Salary”
is defined in Section 3(b)(i).

     

    (c)           “Annual Bonus” is
defined in Section 3(b)(ii).

     

    (d)           “Board” means the
Board of Directors of the Company.

     

    (e)           “Cause” is defined in
Section 4(b)

     

    (f)           “Change in Control”
means, following the Effective Date, a change in beneficial ownership or control
of the Company effected through a transaction or series of transactions (other
than an offering of Common Stock to the general public through a registration
statement filed with the Securities and Exchange Commission) whereby any
“person” or related “group” of “persons” (as such terms are used in Sections
13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its
subsidiaries, an employee benefit plan maintained by the Company or any of its
subsidiaries, any Member (as defined in that certain Amended and Restated
Limited Liability Company Agreement of Puget Holdings LLC, dated as of February
6, 2009) or a “person” that, prior to such transaction, directly or indirectly
controls, is controlled by, or is under common control with, the Company or a
Member) directly or indirectly acquires (x) beneficial ownership (within the
meaning of Rule 13d-3 under the Exchange Act) of securities of the Company
possessing more than 55% of the total combined voting power of the Company’s
securities outstanding immediately after such acquisition or (y) all or
substantially all of the assets of the Company.  For the avoidance of
doubt, the Merger shall not constitute a Change in Control for purposes of this
Agreement.

     

    (g)           “Code” means the
Internal Revenue Code of 1986, as amended.

     

    (h)           “Date of Termination”
is defined in Section 4(f).

     

    (i)           “Disability” is
defined in Section 4(a).

     

    (j)           “Disability Effective
Date” is defined in Section 4(a).

     

    (k)           “Effective Date” means
the date on which occurs the “Effective Time” as defined in the Merger
Agreement.

     

    (l)           “Employment Period” is
defined in Section 2.

     

    (m)           “Exchange Act” means
the Securities Exchange Act of 1934, as amended.

     

    (n)           “Good Reason” is
defined in Section 4(d).

     

    (o)           “Incentive Plan” means
the Long Term Incentive Plan to be established by the Company, or any successor
plan, as defined in Section 3(b)(iii).

     

    (p)           “Notice of
Termination” is defined in Section 4(e).

     

    (q)           “Other Benefits” is
defined in Section 5(a)(iii).

     

    (r)           “Retirement Plan”
means the Company’s qualified pension plan or any successor plan
thereto.

     

    (s)           “SERP” means the
Company’s Supplemental Executive Retirement Plan or any other supplemental
and/or excess retirement plan or agreement of the Company and its affiliated
companies providing benefits for the Executive.

     

    (t)           “Welfare Benefit
Continuation” is defined in Section 5(a)(ii).

     

    2.           Employment
Period

     

    The
Company hereby agrees to continue the Executive in its employ, and the Executive
hereby agrees to remain in the employ of the Company, in accordance with the
terms and provisions of this Agreement, for the period commencing on the
Effective Date and ending on the second anniversary of such date (the “Employment Period”),
in the executive capacity of
[Title/Position] or in another officer-level position of the Company and,
subject to the general supervision of the Board as required by the Washington
Business Corporation Act, such other duties and responsibilities as are not
inconsistent with the express terms of this Agreement.  The Company
agrees that it will not take any action, or make any demands on the Executive,
that may be deemed to arbitrarily, unreasonably or unnecessarily interfere with
the performance of the services to be rendered by the Executive
hereunder.  In the event that the Merger does not occur, this
Agreement shall be void ab
initio.  Notwithstanding the foregoing, if a Change in Control
occurs at any time following the Employment Period, during which the Executive
remains employed by the Company, the Company shall cause the purchaser of or
successor to the Company to assume the provisions set forth in Sections 3, 4 and
5, including corresponding definitions (or to substitute substantially identical
provisions), subject to the other terms and conditions therein other than with
respect to the Employment Period, and to honor such provisions for a period of
not less than two years following the date of such Change in
Control.

     

    3.           Terms
of Employment

     

    (a)           Position and
Duties.

     

    (i)           During
the Employment Period, (A) the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties and responsibilities shall
be in accordance with Section 2 and (B) the Executive’s services shall be
performed within the Seattle/Bellevue metropolitan area, except for required
travel on the Company’s business to the extent consistent with the Executive’s
duties as set forth in Section 2.

     

    (ii)           During
the Employment Period, and excluding any periods of paid time off to which the
Executive is entitled, the Executive agrees to devote reasonable attention and
time during normal business hours to the business and affairs of the Company
and, to the extent necessary to discharge the responsibilities assigned to the
Executive hereunder, to use the Executive’s reasonable best efforts to perform
faithfully and efficiently such responsibilities.  During the
Employment Period, it shall not be a violation of this Agreement for the
Executive to (A) serve on corporate, civic or charitable boards or committees,
(B) deliver lectures, fulfill speaking engagements or teach at educational
institutions, or (C) manage personal investments, so long as such
activities do not significantly interfere with the performance of the
Executive’s responsibilities as an employee of the Company in accordance with
this Agreement.  It is expressly understood and agreed that to the
extent that any such activities have been conducted by the Executive prior to
the Effective Date, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) subsequent to the Effective Date
shall not thereafter be deemed to interfere with the performance of the
Executive’s responsibilities to the Company.

     

    (b)           Compensation.

     

    (i)           Base
Salary.  During the Employment Period, the Executive shall
receive an annual base salary (“Annual Base Salary”),
which shall be paid in equal installments on a monthly basis, at least equal to
12 times the highest monthly base salary paid or payable to the Executive by the
Company and its affiliated companies with respect to the 12-month period
immediately preceding the month in which the Effective Date
occurs.  For purposes of this Agreement, Annual Base Salary shall not
include any payments by the Company on the Executive’s behalf pursuant to any
incentive, savings or retirement plans, any welfare benefit plans or any fringe
benefit plans, in each case, of the Company or any affiliated company, of the
type identified in paragraph (iii), (v), (vi) or (viii) of this Section 3(b),
any reimbursement of expenses by the Company or any affiliated company in
accordance with paragraph (vii) of this Section 3(b), or any other amounts
paid under paragraph (iv), (ix) or (x) of this Section 3(b).  During
the Employment Period, the Annual Base Salary shall be reviewed at least
annually and shall be increased at any time and from time to time as shall be
substantially consistent with increases in base salary generally awarded in the
ordinary course of business to other peer executives of the Company and its
affiliated companies.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such
increase, and the term Annual Base Salary as utilized in this Agreement shall
refer to Annual Base Salary as so increased.

     

    (ii)           Annual
Bonus.  In addition to Annual Base Salary, the Executive shall
be eligible to receive, for each fiscal year ending during the Employment
Period, a performance-based annual bonus (the “Annual Bonus”)
payable in cash based on achievement of performance measures to be determined by
the Board consistent with past practice.  The target-level Annual
Bonus for each fiscal year ending during the Employment Period shall be at least
equal to the greater of (A) the Executive’s target annual bonus in effect on the
Effective Date and (B) the average (annualized for any fiscal year in which the
Executive has been employed by the Company for less than 12 full months) target
bonus for which the Executive was eligible in the three fiscal years immediately
preceding the fiscal year in which the Effective Date occurs.  Each
such Annual Bonus earned shall be paid no later than the 15th day of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is earned unless the Executive shall have timely elected to defer the
receipt of such Annual Bonus in accordance with the terms of the Company’s then
applicable deferred compensation plan.  Notwithstanding the foregoing,
except as set forth in Section 5, no such Annual Bonus shall be payable with
respect to any fiscal year unless the Executive remains continuously employed
with the Company during the period beginning on the Effective Date and ending on
the last day of such fiscal year; provided that if the Executive voluntarily
retires in good standing after having attained age 55 with a minimum of five
years of service with the Company, the Executive shall, at the time the bonus
would otherwise be payable pursuant to this Section 3(b)(ii), be eligible to
receive a bonus in an amount, if any, equal to the product of (C) the amount of
bonus the Executive would have received for such year based on the Company’s
achievement of the applicable performance goals and (D) the ratio of (1)
the number of days elapsed in the calendar year prior to such retirement and (2)
365.

     

    (iii)           Incentive, Savings and
Retirement Plans.  During the Employment Period, the Executive
shall be entitled to participate in the Long Term Incentive Plan to be
established by the Company (the “Incentive Plan”) and
all other incentive, savings and retirement plans, practices, policies and
programs applicable generally to other peer executives of the Company and its
affiliated companies (including, without limitation, the plans in effect on the
date of this Agreement or any successor plans), but in no event shall such
plans, practices, policies and programs (except the Company’s qualified pension
plans) provide the Executive with incentive opportunities (measured with respect
to both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities that are less favorable, in the aggregate, than the most favorable
of those provided by the Company and its affiliated companies for the Executive
under such plans, practices, policies and programs as in effect at any time
during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Executive, those provided generally at any time after the
Effective Date to other executives of the Company and its affiliated
companies.

     

    (iv)           Performance
Bonuses.  Subject to the terms and conditions of this Section
3(b)(iv), the Executive shall be eligible to receive performance bonuses (the
“Merger Performance
Bonuses”) from the Company within 30 days following the first and second
anniversaries of the Effective Date.  Each Merger Performance Bonus
shall be an amount equal to 100% of the Executive’s then current Annual Base
Salary, and shall be payable if (A) the Company achieves specified minimum
Service Quality Index performance goals established with respect to each of 2009
and 2010 by the Compensation and Leadership Development Committee of the Board
(the “Compensation
Committee”) in its sole discretion, and (B) the Executive remains in
continuous employment with the Company through the first and second
anniversaries of the Effective Date, as applicable.  Notwithstanding
the foregoing (x) if the Executive’s employment is terminated without Cause or
for Good Reason prior to the first anniversary of the Effective Date, the
Executive shall be eligible to receive any Merger Performance Bonuses that would
have been payable on the first and second anniversaries of the Effective Date
based on the Company’s actual performance had the Executive continued in
employment with the Company through such dates, and (y) if the Executive’s
employment is terminated without Cause or for Good Reason during the period
beginning on the first anniversary of the Effective Date and ending on the last
day of the Employment Period, the Executive shall be eligible to receive any
Merger Performance Bonuses that would have been payable on the second
anniversary of the Effective Date based on the Company’s actual performance had
the Executive continued in employment with the Company through such
date.

     

    (v)           Long Term Incentive
Plan.  During the Employment Period, the Executive shall be
eligible to participate in the Incentive Plan with a target award at least equal
to the target award that applied for the comparable performance period
immediately preceding the Effective Date, and pursuant to such terms as shall be
determined by the Board or the Compensation Committee.

     

    (vi)           Welfare Benefit
Plans.  During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible for participation in
and shall receive all benefits under welfare benefit plans, practices, policies
and programs provided by the Company and its affiliated companies (including,
without limitation, medical, dental, disability, salary continuance, life, group
life, accidental death and travel accident insurance plans and programs) to the
extent applicable generally to other peer executives of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and
programs provide the Executive with benefits that are less favorable, in the
aggregate, than the most favorable of such plans, practices, policies and
programs in effect for the Executive at any time during the 90-day period
immediately preceding the Effective Date or, if more favorable to the Executive,
those provided generally at any time after the Effective Date to other peer
executives of the Company and its affiliated companies.

     

    (vii)           Expenses.  Subject
to Section 5(e), during the Employment Period, the Executive shall be entitled
to receive prompt reimbursement for all reasonable business expenses incurred by
the Executive in accordance with the most favorable policies, practices and
procedures of the Company and its affiliated companies in effect for the
Executive at any time during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally at
any time thereafter with respect to other peer executives of the Company and its
affiliated companies.

     

    (viii)           Fringe
Benefits.  Subject to Section 5(e), during the Employment
Period, the Executive shall be entitled to fringe benefits in accordance with
the most favorable plans, practices, policies and programs of the Company and
its affiliated companies in effect for the Executive at any time during the
90-day period immediately preceding the Effective Date or, if more favorable to
the Executive, as in effect generally at any time thereafter with respect to
other peer executives of the Company and its affiliated companies.

     

    (ix)           Office and Support
Staff.  During the Employment Period, the Executive shall be
entitled to an office or offices of a size and with furnishings and other
appointments, and to personal secretarial and other assistance, at least equal
to the most favorable of the foregoing provided to the Executive by the Company
and its affiliated companies at any time during the 90-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as provided
generally at any time thereafter with respect to other peer executives of the
Company and its affiliated companies.

     

    (x)           Vacation.  During
the Employment Period, the Executive shall be entitled to paid vacation in
accordance with the most favorable plans, practices, policies and programs of
the Company and its affiliated companies as in effect for the Executive at any
time during the 90-day period immediately preceding the Effective Date or, if
more favorable to the Executive, as in effect generally at any time thereafter
with respect to other peer executives of the Company and its affiliated
companies.

     

    4.           Termination
of Employment

     

    (a)           Death or
Disability.  The Executive’s employment shall terminate
automatically upon the Executive’s death during the Employment
Period.  If the Company determines in good faith that the Disability
of the Executive has occurred during the Employment Period (pursuant to the
definition of Disability set forth below), it may give to the Executive written
notice in accordance with Section 12(b) of its intention to terminate the
Executive’s employment.  In such event, the Executive’s employment
with the Company shall terminate effective on the 30th day after receipt of such
notice by the Executive (the “Disability Effective
Date”), provided that, within the 30 days after such receipt, the
Executive shall not have returned to full-time performance of the Executive’s
duties.  For purposes of this Agreement, “Disability” means a
physical or mental condition that renders the Executive unable or incompetent to
carry out the Executive’s material job responsibilities or the material duties
to which the Executive was assigned at the time the disability was incurred,
which has lasted for at least three months and which, in the opinion of a
physician mutually agreed upon by the Company and Executive (provided that
neither party shall unreasonably withhold agreement), is expected to last for an
indefinite duration or a continuous duration in excess of 12
months.

     

    (b)           Cause.  The
Company may terminate the Executive’s employment during the Employment Period
for Cause.  For purposes of this Agreement, “Cause” means (i) the
willful and continued failure by the Executive to substantially perform the
Executive’s duties with the Company (other than any such failure resulting from
incapacity due to physical or mental illness), for a period of 30 days after
written notice of demand for substantial performance has been delivered to the
Executive by the Board, which specifically identifies the manner in which the
Board believes that the Executive has not substantially performed the
Executive’s duties, or (ii) the willful engaging by the Executive in gross
misconduct materially and demonstrably injurious to the Company, as determined
by the Board after notice to the Executive and an opportunity for a
hearing.  No act or failure to act on the Executive’s part shall be
considered “willful” unless the Executive has acted or failed to act with an
absence of good faith and without a reasonable belief that the Executive’s
action or failure to act was in the best interests of the Company.

     

    (c)           Without
Cause.  The Company may terminate the Executive’s employment at
any time during the Employment Period without Cause.

     

    (d)           Good
Reason.  The Executive’s employment may be terminated during
the Employment Period by the Executive for Good Reason.  For purposes
of this Agreement, “Good Reason”
means:

     

    (i)           the
assignment of the Executive to a nonofficer position with the Company, which the
Parties acknowledge and agree would constitute a material reduction in the
Executive’s authority, duties or responsibilities;

     

    (ii)           a
material diminution in the Executive’s total compensation opportunities
hereunder;

     

    (iii)           the
Company’s requiring the Executive to be based at any location other than that
described in Section 3(a)(i)(B), which represents a material change from such
location, unless the Executive consents to such relocation; or

     

    (iv)           any
material breach of this Agreement by the Company, including, without limitation,
a failure of the Company to comply with and satisfy Section 11(c);

     

    provided
that none of the foregoing conditions or events shall constitute Good Reason
unless the Company has not remedied the alleged violation(s) within 60 days
following the Company’s receipt of written notice from the Executive, in
accordance with Section 4(e), that the Executive believes in good faith that
such condition constitutes Good Reason.

     

    For the
avoidance of doubt, the Executive acknowledges and agrees that the Parties’
entering into this Agreement and the Executive’s employment pursuant to the
terms hereof shall not constitute Good Reason for purposes of the Original
Agreement.

     

    (e)           Notice of
Termination.  Any termination by the Company for Cause or
without Cause or by the Executive for Good Reason must be communicated by Notice
of Termination to the other party hereto given in accordance with Section
12(b).  For purposes of this Agreement, a “Notice of
Termination” means a written notice by the Executive that (i) indicates
the specific termination provision in this Agreement relied on, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated, and (iii) if the Date of Termination is other than
the date of receipt of such notice, specifies the termination date (which date
shall be no later than 15 days after the giving of such notice).  The
failure by the Executive or the Company to set forth in the Notice of
Termination any fact or circumstance that contributes to a showing of Good
Reason or Cause shall not waive any right of the Executive or the Company
hereunder or preclude the Executive or the Company from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights
hereunder.  Notwithstanding anything herein to the contrary, in the
event of the Executive’s termination of employment for Good Reason, the
Executive shall provide the Notice of Termination no later than 90 days
following the initial existence of the condition or occurrence of the event
purported to constitute Good Reason, and such Notice of Termination shall
specify a Date of Termination that is no later than 15 days after the date of
such Notice of Termination (and in no event later than two years following the
initial existence of such condition or occurrence of such event).

     

    (f)           Date of
Termination.  “Date of Termination”
means (i) if the Executive’s employment is terminated by the Company, whether
for Cause or without Cause, or by the Executive for Good Reason, the date of
receipt of the Notice of Termination or any later date specified therein, as the
case may be, and (ii) if the Executive’s employment is terminated by reason of
death or Disability, the date of death of the Executive or the Disability
Effective Date, as the case may be.

     

    5.           Obligations
of the Company Upon Termination

     

    (a)           Good Reason; Without
Cause.  If, during the Employment Period, the Company shall
terminate the Executive’s employment without Cause or the Executive shall
terminate employment for Good Reason, subject to Section 4(e):

     

    (i)           The
Company shall pay to the Executive in a lump sum in cash within 30 days after
the Date of Termination the aggregate of the following amounts:

     

    (A)           the
sum of (1) the accrued but unpaid amount of the Executive’s Annual Base Salary
through the Date of Termination, and (2) a pro rata portion of the Executive’s
Annual Bonus for the year in which the Date of Termination occurs, based on the
number of days of employment that year up to the Date of Termination divided by
365 days (the sum of the amounts described in clauses (1) and (2) shall be
hereinafter referred to as the “Accrued
Obligations”); and

     

    (B)           the
amount equal to three times the sum of (x) Annual Base Salary and (y) the Annual
Bonus for which the Executive was eligible for the year in which the Date of
Termination occurs; and

     

    (C)           a
separate lump-sum supplemental retirement benefit equal to the difference
between (1) the actuarial equivalent (utilizing for this purpose the actuarial
assumptions utilized with respect to the Retirement Plan during the 90-day
period immediately preceding the Effective Date) of the benefit payable under
the Retirement Plan and any SERP providing benefits for the Executive that the
Executive would receive if the Executive’s employment continued at the
compensation level provided for in Section 3(b)(i) and Section 3(b)(ii) for the
remainder of the Employment Period, assuming for this purpose that all accrued
normal and early retirement benefits are fully vested and that benefit accrual
formulas are no less advantageous to the Executive than those in effect during
the 90-day period immediately preceding the Effective Date, and (2) the
actuarial equivalent (utilizing for this purpose the actuarial assumptions
utilized with respect to the Retirement Plan during the 90-day period
immediately preceding the Effective Date) of the Executive’s actual benefit
(paid or payable), if any, under the Retirement Plan and the SERP;
and

     

    (D)           any
amounts payable pursuant to the third sentence of Section 3(b)(iv);
and

     

    (ii)           For
the remainder of the Employment Period, or such longer period as any plan,
practice, policy or program may provide, the Company shall continue group
medical, dental, disability and life insurance benefits to the Executive and/or
the Executive’s family at least equal to those that would have been provided to
them in accordance with the plans, practices, policies and programs described in
Section 3(b)(vi) if the Executive’s employment had not been terminated in
accordance with the most favorable plans, practices, policies or programs of the
Company and its affiliated companies as in effect and applicable generally to
other executives and their families during the 90-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives of
the Company and its affiliated companies and their families; provided, however,
that if the Executive becomes re-employed with another employer and is eligible
to receive group medical or dental benefits under another employer-provided
plan, the group medical or dental benefits described herein shall be secondary
to those provided under such other plan during such applicable period of
eligibility (such continuation of such benefits for the applicable period herein
set forth shall be hereinafter referred to as “Welfare Benefit
Continuation”).  During the period the Executive and/or the
Executive’s family is eligible to receive continued medical or dental
continuation coverage under the Company’s group medical and dental benefit plans
in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended (“COBRA”), the Company
shall pay the portion of the Executive’s premium payments necessary to satisfy
the requirements of the first sentence of this Section 5(a)(ii).  With
respect to any period afterward in which the Executive and/or the Executive’s
family ceases to be eligible for COBRA coverage, and with respect to disability
and life insurance benefits for the remainder of the Employment Period, the
Executive and/or the Executive’s family shall pay to the Company, on an
after-tax basis, an amount equal to the full premium cost of medical, dental,
disability and life insurance benefits coverage.  Within 30 days of
such payment, subject to Section 5(e), the Company shall pay to the Executive or
the Executive’s family in cash (less required withholding) an amount equal to
(A) the portion of the Executive’s premium payments necessary to satisfy the
requirements of the first sentence of this Section 5(a)(ii), less any premium
amount that would have been payable by the Executive or the Executive’s family
if the Executive or the Executive’s family were participants in the plans,
practices, policies and programs, plus (B) an additional amount equal to the
federal, state and local income and payroll taxes that the Executive incurs on
each with respect to such payment.  For purposes of determining
eligibility of the Executive for retiree benefits Pursuant to such plans,
practices, policies and programs, the Executive shall be considered to have
remained employed until the end of the Employment Period and to have retired on
the last day of such period; provided, however, that the Executive shall be
entitled to the more favorable of the retiree benefits in effect on the Date of
Termination or the retiree benefits in effect on the date that would have been
the last date of the Employment Period if the Executive had remained employed;
and

     

    (iii)           To
the extent due and not theretofore paid or provided through the Date of
Termination, the Company shall timely pay or provide to the Executive and/or the
Executive’s family any other amounts or benefits required to be paid or provided
or which the Executive and/or the Executive’s family is eligible to receive
pursuant to this Agreement and under any plan, practice, policy or program or
contract or agreement of the Company and its affiliated companies as in effect
and applicable generally to other peer executives and their families during the
90-day period immediately preceding the Effective Date or, if more favorable to
the Executive, as in effect generally thereafter with respect to other peer
executives of the Company and its affiliated companies and their families (such
other amounts and benefits shall be hereinafter referred to as the “Other
Benefits”).

     

    (b)           Death.  If
the Executive’s employment is terminated by reason of the Executive’s death
during the Employment Period, this Agreement shall terminate without further
obligations to the Executive’s legal representatives under this Agreement, other
than for payment of Accrued Obligations (which shall be paid to the Executive’s
estate or beneficiary, as applicable, in a lump sum in cash within 30 days of
the Date of Termination) and the timely payment or provision of the Welfare
Benefit Continuation and Other Benefits.

     

    (c)           Disability or
Retirement.  If the Executive’s employment is terminated during
the Employment Period by reason of the Executive’s Disability or the Executive’s
retirement under the conditions described in Section 3(b)(ii), this Agreement
shall terminate without further obligations to the Executive, other than for
payment of Accrued Obligations (which shall be paid to the Executive in a lump
sum in cash within 30 days of the Date of Termination) and the timely payment or
provision of the Welfare Benefit Continuation (except in the case of retirement
as described above) and Other Benefits.

     

    (d)           Cause; Other Than for Good
Reason.  If the Executive’s employment shall be terminated for
Cause during the Employment Period, this Agreement shall terminate without
further obligations to the Executive other than the obligation to pay the
Executive’s Annual Base Salary through the Date of Termination, plus the amount
of any compensation previously deferred by the Executive, in each case to the
extent theretofore unpaid.  If the Executive terminates employment
during the Employment Period, other than (i) for Good Reason or (ii) by reason
of the Executive’s retirement under the conditions described in Section
3(b)(ii), then this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay the Executive’s Annual Base Salary
through the Date of Termination, plus the amount of any compensation previously
deferred by the Executive, in each case to the extent theretofore unpaid (which
shall be paid to the Executive in a lump sum in cash within 30 days of the Date
of Termination) and the timely payment or provision of Other
Benefits.

     

    (e)           Payment
Procedures.  Notwithstanding anything herein to the contrary,
(A) no amount shall be payable pursuant to this Section 5 unless the Executive’s
termination of employment constitutes a “separation from service” within the
meaning of Treasury Regulation Section 1.409A-1(h), (B) no portion of the
payments and benefits provided under Sections 5(a)(i)(B)-(C) and Section
5(a)(ii) shall be paid or provided unless, on or prior to the 60th day following
the Date of Termination, the Executive timely executes a general waiver and
release of claims agreement substantially in the form attached hereto as Annex A (which waiver
and release of claims agreement shall be provided by the Company to the
Executive on or prior to the seventh day following termination), such release
shall not have been revoked by the Executive (and the applicable revocation
period shall have expired) prior to such sixtieth (60th) day, and (C) as of the
first date on which the Executive violates any covenant contained in Section 8,
any remaining unpaid portion of the payments and benefits provided under
Sections 5(a)(i)(B)-(C) and Section 5(a)(ii) shall thereupon be
forfeited.  To the extent that any reimbursement of any expense under
this Section 5 or in-kind benefits provided under this Agreement are deemed
to constitute taxable compensation to the Executive, such amounts will be
reimbursed or provided no later than December 31 of the year following the year
in which the expense was incurred.  The amount of any such expenses
reimbursed or in-kind benefits provided in one year shall not affect the
expenses or in-kind benefits eligible for reimbursement or payment in any
subsequent year, and the Executive’s right to such reimbursement or payment of
any such expenses will not be subject to liquidation or exchange for any other
benefit.

     

    6.           Nonexclusively
of Rights

     

    Nothing
in this Agreement shall prevent or limit the Executive’s continuing or future
participation in any written plan provided by the Company or any of its
affiliated companies for executives generally and for which the Executive may
qualify, nor shall anything herein limit or otherwise affect such rights as the
Executive may have under any written contract with the Company or any of its
affiliated companies.  Amounts that are vested benefits or that the
Executive is otherwise entitled to receive under any such plan or contract with
the Company or any of its affiliated companies at or subsequent to the Date of
Termination shall be payable in accordance with such plan or contract except as
explicitly modified by this Agreement.

     

    7.           Full
Settlement; Resolution of Disputes

     

    (a)           The
Company’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action that
the Company may have against the Executive or others.  In no event
shall the Executive be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to the Executive under any of
the provisions of this Agreement, and, except as provided in Section 5(a)(ii),
such amounts shall not be reduced whether or not the Executive obtains other
employment.  Subject to Section 5(e) of this Agreement, the Company
agrees to pay promptly upon invoice, to the full extent permitted by law, all
legal fees and expenses that the Executive may incur as a result of any contest
(regardless of the outcome thereof) by the Company, the Executive or others of
the validity or enforceability of, or liability under, any provision of this
Agreement or any guarantee of performance thereof (including as a result of any
contest by the Executive about the amount of any payment pursuant to this
Agreement).

     

    (b)           If
there shall be any dispute between the Company and the Executive (i) in the
event of any termination of the Executive’s employment by the Company, whether
such termination was for Cause, or (ii) in the event of any termination of
employment by the Executive, whether Good Reason existed, then, unless and until
there is a final, nonappealable judgment by a court of competent jurisdiction
declaring that such termination was not for Cause or that the determination by
the Executive of the existence of Good Reason was not made in good faith, the
Company shall pay all amounts (other than, to the extent the payment is a
disputed payment within the meaning of Treasury Regulation Section 1.409A-2(g),
the amounts provided under Section 5(a)(i)(A)), and provide all benefits, to the
Executive and/or the Executive’s family or other beneficiaries, as the case may
be, that the Company would be required to pay or provide pursuant to Section
5(a) as though such termination were by the Company without Cause or by the
Executive with Good Reason; provided, however, that the Company shall not be
required to pay any disputed amounts pursuant to this Section 7(b) except upon
receipt of an undertaking by or on behalf of the Executive to repay all such
amounts to which the Executive is ultimately adjudged by such court not to be
entitled.

     

    8.           Restrictive
Covenants

     

    (a)           The
Executive shall not, at any time during the Employment Period or during the
12-month period immediately following the Date of Termination (the “Restricted Period”),
directly or indirectly engage in, have any equity interest in, or manage or
operate any person, firm, corporation, partnership, business or entity (whether
as director, officer, employee, agent, representative, partner, security holder,
consultant or otherwise) that engages in (either directly or through any
subsidiary or affiliate thereof) any business or activity relating to selling or
distributing electric power or natural gas in the state of Washington in
competition with the Company.  Notwithstanding the foregoing, the
Executive shall be permitted to acquire a passive stock or equity interest in
such a business; provided that such stock or other equity interest acquired is
not more than 5% of the outstanding interest in such business.

     

    (b)           The
Executive shall not, at any time during the Employment Period or the Restricted
Period, (i) directly or indirectly, either for himself or on behalf of any other
entity, recruit or otherwise solicit or induce any employee, customer,
subscriber or supplier of the Company to terminate his, her or its employment or
arrangement with the Company, or otherwise change his, her or its relationship
with the Company, or (ii) either for himself or on behalf of any other entity,
hire, or cause to be hired, any person who was employed by the Company at any
time during the 12-month period immediately prior to the Date of Termination or
who thereafter becomes employed by the Company.

     

    (c)           The
provisions contained in Section 8(a) and Section 8(b) may be altered and/or
waived with the prior written consent of the Board.

     

    (d)           The
Executive shall hold in a fiduciary capacity for the benefit of the Company all
secret or confidential information, knowledge or data relating to the Company or
any of its affiliated companies, and their respective businesses, that shall
have been obtained by the Executive during the Executive’s employment by the
Company or any of its affiliated companies and that shall not be or become
public knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement).  After termination of the
Executive’s employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it.

     

    (e)           Upon
termination of the Executive’s employment with the Company for any reason, the
Executive will promptly deliver to the Company all correspondence, electronic
data, drawings, manuals, letters, notes, notebooks, reports, programs, plans,
proposals, financial documents or any other documents concerning the Company’s
customers, business plans, marketing strategies, products or
processes.

     

    (f)           The
Executive may respond to a lawful and valid subpoena or other legal process but
shall give the Company the earliest possible notice thereof, and shall, as much
in advance of the return date as possible, make available to the Company and its
counsel the documents and other information sought, and shall assist such
counsel in resisting or otherwise responding to such process.

     

    (g)           The
Executive agrees not to disparage the Company, any of its products or practices,
or any of its directors, officers, agents, representatives, shareholders or
affiliates, either orally or in writing, at any time; provided that the
Executive may confer in confidence with the Executive’s legal representatives
and make truthful statements as required by law.

     

    (h)           In
the event the terms of this Section 8 shall be determined by any court of
competent jurisdiction to be unenforceable by reason of its extending for too
great a period of time or over too great a geographical area or by reason of its
being too extensive in any other respect, it will be interpreted to extend only
over the maximum period of time for which it may be enforceable, over the
maximum geographical area as to which it may be enforceable, or to the maximum
extent in all other respects as to which it may be enforceable, all as
determined by such court in such action.

     

    (i)           As
used in this Section 8, the term “Company” shall include the Company, its
parents, related entities, and any of its direct or indirect
subsidiaries.

     

    (j)           The
Executive recognizes and acknowledges that a breach of the covenants contained
in this Section 8 will cause irreparable damage to the Company and its goodwill,
the exact amount of which will be difficult or impossible to ascertain, and that
the remedies at law for any such breach will be
inadequate.  Accordingly, the Executive agrees that in the event of a
breach of any of the covenants contained in this Section 8, in addition to any
other remedy which may be available at law or in equity, the Company will be
entitled to specific performance and injunctive relief.  In addition,
in the event that the Executive violates any of the covenants set forth in this
Section 8, (i) the Executive shall be required to pay to the Company in a single
lump sum an amount equal to the aggregate total of the amounts the Executive has
received pursuant to Sections 5(a)(i)(A)-(C) within 30 days following the date
of such violation, and (ii) the Company shall no longer be required to continue
benefits to the Executive and/or the Executive’s family pursuant to Section
5(a)(ii).

     

    9.           Excise
Taxes

     

    Notwithstanding
any other provisions of this Agreement, if any payments or distributions in the
nature of compensation are made to or for the benefit of the Executive in
connection with the Merger or any other transaction contemplated under the
Merger Agreement, whether paid or payable pursuant to this Agreement or
otherwise (including the vesting of stock options, the lapse of restrictions on
restricted stock and any other events that result in a “payment in the nature of
compensation” within the meaning of Section 280G of the Code), that are
characterized as “excess parachute payments” (as defined in Section 280G(b)(1)
of the Code or any successor provision), then the Company shall pay to the
Executive an additional amount (the “Gross-Up Payment”)
equal to the excise taxes imposed by Section 4999 of the Code, or any successor
provision, on the Executive’s excess parachute payments (the “Parachute Tax”) plus
an amount equal to the federal and (if applicable) state income and excise
taxes, including, without limitation, FICA and Medicare taxes or other taxes
that will be payable by the Executive as a result of this additional
payment.  Notwithstanding anything to the contrary in this Agreement,
the Company shall pay the Gross-Up Payment to the Executive no later than the
end of the calendar year following the calendar year in which the related
Parachute Tax is remitted to the relevant taxing authorities.  In the
event a Change in Control occurs after the Effective Date and no stock of the
Company is tradable on an established securities market or otherwise immediately
before such Change in Control (within the meaning of Section 280G(b)(5)(A)(ii)
of the Code), then to the extent that the Executive would otherwise be eligible
to receive any excess parachute payment that would be subject to the Parachute
Tax in connection with such Change in Control, the Executive shall agree to
execute a waiver of a portion of the excess parachute payments such that all
nonwaived payments would not be subject to the Parachute Tax; provided that the
Company agrees to seek, but shall not be required to obtain, approval from its
shareholders in a manner that complies with Section 280G(b)(5)(B) of the Code
and Treasury Regulation Section 1.280G-1 such that if such shareholder approval
is obtained the waived payments shall be restored.

     

    10.           Section
409A

     

    (a)           The
Parties hereto acknowledge and agree that, to the extent applicable, this
Agreement shall be interpreted in accordance with, and incorporate the terms and
conditions required by, Section 409A of the Code and the Department of Treasury
regulations and other interpretive guidance issued thereunder, including,
without limitation, any such regulations or other guidance that may be issued
after the Effective Date.  Notwithstanding any provision of this
Agreement to the contrary, in the event that the Company determines that any
amounts payable hereunder will be immediately taxable to the Executive under
Section 409A of the Code and related Department of Treasury guidance, the
Company reserves the right (without any obligation to do so or to indemnify the
Executive for failure to do so) to adopt such limited amendments to this
Agreement and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Company reasonably determines are
necessary or appropriate to (i) exempt the compensation and benefits payable
under this Agreement from Section 409A of the Code and/or preserve the intended
tax treatment of the compensation and benefits provided with respect to this
Agreement or (ii) comply with the requirements of Section 409A of the Code, and
to the maximum extent possible payments and benefits made hereunder shall be
considered short-term deferrals within the meaning of Treasury Regulation
Section 1.409A-1(b)(4) or subject to the exception from Section 409A of the Code
set forth in Treasury Regulation Section
1.409A-1(b)(9)(iii).  Notwithstanding the foregoing, no provision of
this Agreement shall be interpreted or construed to transfer any liability for
failure to comply with the requirements of Section 409A of the Code from the
Executive or any other individual to the Company or any of its affiliates,
employees or agents.

     

    (b)           Notwithstanding
any provision to the contrary in this Agreement, if the Executive is deemed at
the time of the Executive’s separation from service to be a “specified employee”
for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed
commencement of any portion of the termination benefits to which the Executive
is entitled under this Agreement is required in order to avoid a prohibited
distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of the
Executive’s termination benefits shall not be provided to the Executive prior to
the earlier of (i) the expiration of the six-month period measured from the date
of the Executive’s “separation from service” with the Company (as such term is
defined in the Treasury Regulations issued under Section 409A of the Code) or
(ii) the date of the Executive’s death.  Upon the earlier of such
dates, all payments deferred pursuant to this Section 10(b) shall be paid in a
lump sum to the Executive, and any remaining payments due under this Agreement
shall be paid as otherwise provided herein.

     

    (c)           For
purposes of Section 409A of the Code, the Executive’s right to receive
installment payments pursuant to Sections 5(a)(i)(A)-(C) shall be treated as a
right to receive a series of separate and distinct payments.  The
determination of whether the Executive is a “specified employee” for purposes of
Section 409A(a)(2)(B)(i) of the Code as of the time of the Executive’s
separation from service shall be made by the Company in accordance with the
terms of Section 409A of the Code and applicable guidance thereunder (including,
without limitation, Treasury Regulation Section 1.409A-1(i) and any successor
provision thereto).

     

    11.           Successors

     

    (a)           This
Agreement is personal to the Executive and without the prior written consent of
the Company shall not be assignable by the Executive otherwise than by will or
the laws of descent and distribution.  This Agreement shall inure to
the benefit of and be enforceable by the Executive’s legal
representatives.

     

    (b)           This
Agreement shall inure to the benefit of and be binding on the Company and its
successors and assigns.

     

    (c)           The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place.  The
Company shall provide such successor with at least ten days’ prior written
notice of the requirements of this Section 11(c).  As used in this
Agreement, the term “Company” shall mean
the Company as hereinbefore defined and any successor to its business and/or
assets as aforesaid that assumes and agrees to perform this Agreement by
operation of law, or otherwise.

     

    12.           Miscellaneous

     

    (a)           This
Agreement shall be governed by and construed in accordance with the laws of the
state of Washington, without reference to principles of conflict of
laws.  The captions of this Agreement are not part of the provisions
hereof and shall have no force or effect.  This Agreement contains the
entire understanding of the Parties with regard to the subject matter of this
Agreement and fully supersedes any and all prior discussions, negotiations,
commitments and understandings related thereto (including the Original
Agreement).  This Agreement may not be amended or modified otherwise
than by a written agreement executed by the Parties hereto or their respective
successors and legal representatives.

     

    (b)           All
notices and other communications hereunder shall be in writing and shall be
given by hand delivered to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

     

    If to the
Executive:

     

    [Executive
Name]

     

    [Title/Position]

     

    Puget
Sound Energy, Inc., PSE-12

     

    P.O. Box
97034

     

    Bellevue,
WA 98009-9734

     

    If to the
Company:

     

    Puget
Sound Energy, Inc.

     

    P.O. Box
97034

     

    Bellevue,
WA 98009-9734

     

    or to
such other address as either party shall have furnished to the other in writing
in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

     

    (c)           The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this
Agreement.

     

    (d)           The
Company may withhold from any amounts payable under this Agreement such federal,
state or local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

     

    (e)           The
Executive’s or the Company’s failure to insist on strict compliance with any
provision hereof or any other provision of this Agreement or the failure to
assert any right the Executive or the Company may have hereunder, including,
without limitation, the right of the Executive to terminate employment for Good
Reason pursuant to Section 4(d)(i)-(iv), shall not be deemed to be a waiver of
such provision or right or any other provision or right of this
Agreement.

     

    (f)           The
Executive and the Company acknowledge that, except as may otherwise be provided
under any other written agreement between the Executive and the Company, the
employment of the Executive by the Company is “at will” and may be terminated by
either the Executive or the Company at any time.

     

    (g)           This
Agreement may be executed in counterparts, each of which counterparts shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    [Signature Page
Follows]

     

    IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and,
pursuant to authorization from the Board, the Company has caused this Agreement
to be executed in its name and on its behalf, all as of the day and year first
above written.

     

    
      	 
      	 
      	
              PUGET
      SOUND ENERGY, INC.

               

               

               

              /s/                                                               

              By:  Stephen
      P. Reynolds

              Its
      President and Chief Executive Officer

            
	 
      	 
      	
               

               

               

              /s/                                                               

              By:
      [Executive
      Name]

              [Title/Position]

            

    

    

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    ANNEX
A

     

    Form
of Release

     

    ______________________
(the “Executive”)
represents that the Executive has not filed any complaints, charges or lawsuits
against Puget Sound Energy, Inc. (“PSE”) or any of its
parents, affiliates or related and subsidiary entities (collectively, the “Company”), with any
governmental agency or any court.  The Executive expressly waives all
claims against the Company and releases the Company, and any of its past,
present or future parents, and affiliated, related and/or subsidiary entities,
and all of the past and present directors, shareholders, officers, general or
limited partners, employees, agents and attorneys, and agents and
representatives of such entities, and employee benefit plans in which the
Executive is or has been a participant by virtue of the Executive’s employment
with the Company (collectively, the “Releasees”), from any
claims that the Executive may have against the Company, or the former Puget
Sound Power & Light Company, Washington Natural Gas Company or Washington
Energy Company.  It is understood that this release includes, but is
not limited to, any claims arising directly or indirectly out of, relating to,
or in any other way involving in any manner whatsoever, (a) the Executive’s
employment with the Company or its subsidiaries or the termination thereof or
(b) the Executive’s status at any time as a holder of any securities of the
Company, including any claims for wages, employment benefits or damages of any
kind whatsoever arising out of any contract, express or implied, any covenant of
good faith and fair dealing, express or implied, any legal restriction on the
Company’s right to terminate employment, or any federal, state or other
governmental statute or ordinance, including, without limitation, Title VII of
the Civil Rights Act of 1964, the federal Age Discrimination in Employment Act,
the Americans with Disabilities Act, the Family and Medical Leave Act, the
Employee Retirement Income Security Act of 1974, the Washington Law Against
Discrimination, the Washington Family and Parental Leave Acts, or any other
legal limitation on the employment relationship (this “Release”);provided,
however, notwithstanding anything to the contrary set forth herein, that this
general release shall not extend (x) to benefit claims under employee pension
benefit plans in which the Executive is a participant by virtue of the
Executive’s employment with the Company or its subsidiaries or to benefit claims
under employee welfare benefit plans for occurrences (e.g., medical care, death
or onset of disability) arising after the execution of this Release by the
Executive, and (y) to any executory obligations assumed by the Company under
that certain Executive Employment Agreement (Amended and Restated Change of
Control Agreement), dated as of January [__], 2009, by and between the
Company and the Executive.

     

    The
Executive understands that this Release includes a release of claims arising
under the Age Discrimination in Employment Act (ADEA).  The Executive
understands and warrants that he/she has been given a period of [21 + 7][45 + 7] days to
review and consider this Release.  The Executive further warrants that
the Executive understands that, with respect to the release of age
discrimination claims only, the Executive has a period of seven (7) days after
execution of this Release to revoke the release of age discrimination claims by
notice in writing to the Company.

     

    The
Executive is hereby advised to consult with an attorney prior to executing this
Release.  By the Executive’s signature below, the Executive warrants
that the Executive has had the opportunity to do so and to be fully and fairly
advised by that legal counsel as to the terms of this Release.prgf10qa1103108ex10-23.htm

    
      

      

    

    Exhibit
10.23

    FINAL

    REDACTED
COPY

    

     

    

     

    

     

    

     

    ASSET
EXCHANGE AGREEMENT

     

    between

     

    BETA
SYSTEMS SOFTWARE OF NORTH AMERICA, INC.,

     

    BETA
SYSTEMS SOFTWARE OF CANADA LTD.

     

    and

     

    PROGINET
CORPORATION

     

    dated
effective as of

     

    October
1, 2008

     

    

    

    

    
 

    

    

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      
        
          
            	 
      	
                    TABLE
      OF CONTENTS

                  	
                    REDACTED
      COPY

                  

          

        

         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 
      	 
      	
                                                Page

                                              
	 
      	 
      	 
      
	
                                                ARTICLE
      1

                                              
	
                                                INTERPRETATION

                                              
	
                                                1.1

                                              	
                                                Definitions

                                              	
                                                1

                                              
	
                                                1.2

                                              	
                                                Schedules

                                              	
                                                8

                                              
	
                                                1.3

                                              	
                                                Exhibits

                                              	
                                                8

                                              
	
                                                1.4

                                              	
                                                Conflicts

                                              	
                                                8

                                              
	
                                                1.5

                                              	
                                                References

                                              	
                                                8

                                              
	
                                                1.6

                                              	
                                                Headings

                                              	
                                                9

                                              
	
                                                1.7

                                              	
                                                Singular/Plural;
      Derivatives

                                              	
                                                9

                                              
	
                                                1.8

                                              	
                                                Business
      Day

                                              	
                                                9

                                              
	
                                                1.9

                                              	
                                                Beta's
      Knowledge

                                              	
                                                9

                                              
	
                                                1.10

                                              	
                                                Proginet's
      Knowledge

                                              	
                                                9

                                              
	 
	
                                                ARTICLE
      2

                                              
	
                                                ASSET
      EXCHANGE

                                              
	
                                                2.1

                                              	
                                                Asset
      Exchange

                                              	
                                                10

                                              
	
                                                2.2

                                              	
                                                Acquisition
      Price

                                              	
                                                10

                                              
	
                                                2.3

                                              	
                                                Sales
      Taxes

                                              	
                                                10

                                              
	
                                                2.4

                                              	
                                                Trade
      Accounts Receivable

                                              	
                                                11

                                              
	 
	
                                                ARTICLE
      3

                                              
	
                                                CLOSING

                                              
	
                                                3.1

                                              	
                                                Place
      and Time of Closing

                                              	
                                                11

                                              
	
                                                3.2

                                              	
                                                Deliveries
      at Closing

                                              	
                                                11

                                              
	
                                                3.3

                                              	
                                                Contract
      Lists

                                              	
                                                13

                                              
	
                                                3.4

                                              	
                                                Physical
      Deliveries

                                              	
                                                13

                                              
	 
	
                                                ARTICLE
      4

                                              
	
                                                CONVEYANCES

                                              
	
                                                4.1

                                              	
                                                Conveyances

                                              	
                                                13

                                              
	 
	
                                                ARTICLE
      5

                                              
	
                                                REPRESENTATIONS
      AND WARRANTIES OF PARTIES

                                              
	
                                                5.1

                                              	
                                                Each
      Party's Representations and Warranties

                                              	
                                                14

                                              
	
                                                5.2

                                              	
                                                Beta
      Canada's Representations and Warranties

                                              	
                                                15

                                              
	
                                                5.3

                                              	
                                                Beta
      America's Representations and Warranties

                                              	
                                                17

                                              
	
                                                5.4

                                              	
                                                Proginet's
      Representations and Warranties

                                              	
                                                18

                                              
	
                                                5.5

                                              	
                                                Survival
      of Representations and Warranties

                                              	
                                                20

                                              
	
                                                5.6

                                              	
                                                No
      Additional Representations or Warranties by any Party

                                              	
                                                21

                                              
	 
	
                                                ARTICLE
      6

                                              
	
                                                LIABILITIES
      AND INDEMNITIES

                                              
	
                                                6.1

                                              	
                                                Responsibility
      of Beta Canada

                                              	
                                                21

                                              
	
                                                6.2

                                              	
                                                Responsibility
      of Beta America

                                              	
                                                21

                                              
	
                                                6.3

                                              	
                                                Responsibility
      of Proginet

                                              	
                                                21

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
 

    
 

    
 

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          - i
-

          
            

          

        

        
           

        

      

    

    

    
      
        	 
      	
                TABLE
      OF CONTENTS

              	
                REDACTED
      COPY

              
	 
      	
                (continued)

              	 
      

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	 
      	
                                  Page

                                
	 
      	 
      	 
      
	
                                  6.4

                                	
                                  Limit
      on Responsibility

                                	
                                  22

                                
	
                                  6.5

                                	
                                  Insurance

                                	
                                  22

                                
	
                                  6.6

                                	
                                  Sole
      Right and Remedy

                                	
                                  22

                                
	
                                  6.7

                                	
                                  Procedure
      - Indemnities

                                	
                                  22

                                
	
                                  6.8

                                	
                                  No
      Limitation

                                	
                                  23

                                
	 
	
                                  ARTICLE
      7

                                
	
                                  POST-CLOSING
      OBLIGATIONS

                                
	
                                  7.1

                                	
                                  Post-Closing

                                	
                                  23

                                
	
                                  7.2

                                	
                                  Further
      Assurances

                                	
                                  24

                                
	
                                  7.3

                                	
                                  Transition
      Services

                                	
                                  24

                                
	 
	
                                  ARTICLE
      8

                                
	
                                  GOVERNING
      LAW AND DISPUTE RESOLUTION

                                
	
                                  8.1

                                	
                                  Governing
      Law

                                	
                                  25

                                
	
                                  8.2

                                	
                                  Dispute
      Resolution

                                	
                                  25

                                
	
                                  8.3

                                	
                                  Consent
      to Jurisdiction; Waiver of Jury Trial

                                	
                                  26

                                
	 
	
                                  ARTICLE
      9

                                
	
                                  NOTICES

                                
	
                                  9.1

                                	
                                  Addresses
      for Service

                                	
                                  27

                                
	
                                  9.2

                                	
                                  Service
      of Notice

                                	
                                  27

                                
	
                                  9.3

                                	
                                  Change
      of Address for Service

                                	
                                  28

                                
	 
	
                                  ARTICLE
      10

                                
	
                                  MISCELLANEOUS

                                
	
                                  10.1

                                	
                                  Supersedes
      Previous Agreements; Amendment

                                	
                                  28

                                
	
                                  10.2

                                	
                                  Entire
      Agreement

                                	
                                  28

                                
	
                                  10.3

                                	
                                  Assignment

                                	
                                  28

                                
	
                                  10.4

                                	
                                  Time
      of the Essence

                                	
                                  28

                                
	
                                  10.5

                                	
                                  Enurement

                                	
                                  28

                                
	
                                  10.6

                                	
                                  Counterpart
      Execution

                                	
                                  29

                                
	
                                  10.7

                                	
                                  Public
      Securities Filings

                                	
                                  29

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    
 

    
      
        
          [***]
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          Confidential
portion omitted and filed separately with the Commission

           

        

        
          - ii
-

          
            

          

        

        
           

        

      

    

    REDACTED
COPY

    

     

    ASSET EXCHANGE
AGREEMENT

     

    THIS
AGREEMENT is dated effective as of October 1, 2008.

     

    BETWEEN:

     

    BETA SYSTEMS SOFTWARE OF NORTH
AMERICA, INC., a Delaware corporation, having an office in the City of
Herndon, in the State of Virginia ("Beta America"),

     

    BETA SYSTEMS SOFTWARE OF CANADA
LTD., a body corporate having an office in the City of Calgary in the
Province of Alberta ("Beta
Canada") and

     

    PROGINET CORPORATION, a
Delaware corporation, having an office in Garden City, in the State of New York
("Proginet").

     

    WHEREAS:

     

    The
Parties are desirous of exchanging certain assets and taking other actions all
in accordance with the terms and conditions contained herein.

     

    AGREEMENT:

     

    NOW
THEREFORE in consideration of the premises hereto and of the covenants,
warranties, representations and agreements herein set forth and provided for,
the Parties covenant and agree as follows:

     

    ARTICLE
1

    INTERPRETATION

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In this
Agreement, the words and phrases set forth below shall have the meaning ascribed
thereto, namely:

     

    
      	
               
      

            	
              (a)

            	
              "AAA" has the meaning
      attributed to it in Section
      8.2(b);

            

    

     

    
      	
               
      

            	
              (b)

            	
              "Additional Indemnitees"
      means, with respect to any Person to which indemnification is granted
      pursuant to Article
      6, its Affiliates and the respective directors, officers, servants,
      agents, advisors and employees of that Person and its
      Affiliates;

            

    

     

    
      	
               
      

            	
              (c)

            	
              "Affiliate" means, in
      respect of a Person, any other Person or group of Persons acting in
      concert, directly or indirectly, that controls, is controlled by or under
      common control with the first mentioned Person, and for the purposes of
      this definition "control" means the
      possession, directly or indirectly, by such Person or group of Persons
      acting in concert of the power to direct or cause the direction of the
      management and policies of the first mentioned Person, whether through the
      ownership of voting securities or
otherwise;

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 2
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (d)

            	
              "Agreement" means this
      document, together with the Schedules attached hereto and made a part
      hereof, all as amended, supplemented or modified from time to time in
      accordance with the provisions
hereof;

            

    

     

    
      	
               
      

            	
              (e)

            	
              "Agreement Default" means
      any material breach of a representation or warranty made by a Party, or
      the failure of a Party to perform or observe in any material respect any
      of the covenants or agreements to be performed by such Party under this
      Agreement;

            

    

     

    
      	
               
      

            	
              (f)

            	
              "Applicable Law" means,
      in relation to any Person, transaction or event, all applicable provisions
      of laws, statutes, rules, regulations, official directives and orders of
      all federal, provincial, municipal and local governmental bodies (whether
      administrative, legislative, executive or otherwise) and final,
      non-appealable judgements, orders and decrees of all courts, arbitrators,
      commissions or bodies exercising similar functions in actions or
      proceedings in which the Person in question is a party, by which it is
      bound or having application to the transaction or event in
      question;

            

    

     

    
      	
               
      

            	
              (g)

            	
              "Assets" means the Beta
      Canada Assets or Proginet Assets, as the case may
  be;

            

    

     

    
      	
               
      

            	
              (h)

            	
              "Beta" means Beta America
      and Beta Canada;

            

    

     

    
      	
               
      

            	
              (i)

            	
              "Beta America" means Beta
      Systems Software of North America,
Inc.;

            

    

     

    
      	
               
      

            	
              (j)

            	
              "Beta America Contract
      Assignment" means the assignment and assumption agreement whereby
      Beta America conveys the Beta America Contracts to Proginet and Proginet
      assumes certain obligations related to the Beta America
      Contracts;

            

    

     

    
      	
               
      

            	
              (k)

            	
              "Beta America Contracts"
      means all contracts, agreements and arrangements related to the Beta
      Products by which Beta or its Affiliates, on the one hand, and the
      customers listed in Schedule 5.3(d), on the other
      hand, are bound;

            

    

     

    
      	
               
      

            	
              (l)

            	
              "Beta Canada" means Beta
      Systems Software of Canada Ltd.;

            

    

     

    
      	
               
      

            	
              (m)

            	
              "Beta Canada Asset
      Assignment" means the assignment agreement whereby Beta Canada
      conveys the Beta Canada Assets to
Proginet;

            

    

     

    
      	
               
      

            	
              (n)

            	
              "Beta Canada Assets"
      means all the properties, assets, interests and rights of Beta Canada
      which are related to the Beta Products including the
      following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Beta Canada Intellectual Property and Beta Canada
    Technology;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Beta Canada Books and Records; and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              all
      proceeds of any or all of the foregoing received or receivable after the
      Effective Time;

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 3
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (o)

            	
              "Beta Canada Books and
      Records" means all books, records, files and papers related to the
      Beta Products including drawings, engineering information, manuals and
      data, sales and advertising materials, sales and purchases correspondence,
      trade association files, research and development records, lists of
      present and former customers, distributors and suppliers and all copies
      and recordings of the foregoing;

            

    

     

    
      	
               
      

            	
              (p)

            	
              "Beta Canada Intellectual
      Property" means all rights to and interests
  in:

            

    

     

    
      	
               
      

            	
              (i)

            	
              all
      trade dress and brand names, logos, slogans, domain names, trade-marks
      (whether used with wares or services and including the goodwill attaching
      to such trade marks) and all registrations and applications for trade
      marks (all future income from such trade marks) related to the Beta
      Products, all of which are listed in Schedule
      5.2(a);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              all
      inventions, patents, patent rights, patent applications (including all
      reissues, divisions, continuations, continuations-in-part and extensions
      of any patent or patent application), industrial designs and applications
      for registration of industrial designs related to the Beta Products, all
      of the registrations or applications for registration of which are listed
      in Schedule
      5.2(a);

            

    

     

    
      	
               
      

            	
              (iii)

            	
              all
      copyrights, registrations and applications for copyrights (and all future
      income from such copyrights) related to the Beta Products, all of the
      registrations or applications for registration of which are listed in
      Schedule
      5.2(a);

            

    

     

    
      	
               
      

            	
              (iv)

            	
              all
      rights and interests in and processes, lab journals, notebooks, data,
      trade secrets, designs, know-how, product formula and information,
      manufacturing, engineering and other drawings and manuals, technology,
      blue prints, research and development reports, agency agreements,
      technical information, technical assistance, engineering data, design and
      engineering specifications, and similar materials recording or evidencing
      expertise, information or technology related to the
      Beta  Business;

            

    

     

    
      	
               
      

            	
              (v)

            	
              all
      of the intellectual property affected by the registrations and
      applications for registration listed in Schedule 5.2(a) and the
      permissions and licenses listed in Schedule
      5.2(a);

            

    

     

    
      	
               
      

            	
              (vi)

            	
              all
      other intellectual and industrial property rights throughout the world
      related to the Beta Products;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              all
      licenses of the intellectual property granted by Beta Canada to third
      persons and listed in items (i) to (vi)
above;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              all
      future income and proceeds from any of the intellectual property listed in
      items (i) to (vi) above and the licenses listed in item (vii)
      above;

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 4
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (ix)

            	
              all
      documentation, packaging and media relating to the intellectual property
      described in items (i) to (viii) above, including all computer disks, CD
      ROMs and other storage media containing any such intellectual property and
      all inventory, boxes, wrapping and other packaging material;
      and

            

    

     

    
      	
               
      

            	
              (x)

            	
              all
      rights to damages, royalties and profits by reason of the past, present or
      future infringement or other misuse of any of the intellectual property
      listed in items (i) to (vii) above.

            

    

     

    
      	
               
      

            	
              (q)

            	
              "Beta Canada Technology"
      means all computer software (including source code and object code),
      operating systems, browsers, user interfaces, algorithms, architecture,
      structure, display screens, layouts, development tools, instructions,
      templates, servers, hardware, technical information, engineering data or
      reports or other technology or related information all of which are
      developed, licensed or owned by Beta Canada and whether completed or in
      the course of development all as related to the Beta
    Products;

            

    

     

    
      	
               
      

            	
              (r)

            	
              "Beta Products" means the
      products of Beta related to the Harbor NSM and Harbor HFT product
      lines;

            

    

     

    
      	
               
      

            	
              (s)

            	
              "Business Day" means a
      week day (other than a Saturday or Sunday), excluding all statutory
      holidays under Applicable Law;

            

    

     

    
      	
               
      

            	
              (t)

            	
              "Closing" means the
      transfer of (i) the Proginet Assets (other than the Proginet Contracts) by
      Proginet to Beta Canada, (ii) the Proginet Contracts by Proginet to Beta
      America, (iii) the Beta Canada Assets by Beta Canada and the Beta America
      Contracts by Beta America to Proginet, and the completion of all matters
      incidental thereto, all as contemplated by this
  Agreement;

            

    

     

    
      	
               
      

            	
              (u)

            	
              "Closing Date" means the
      date of this Agreement;

            

    

     

    
      	
               
      

            	
              (v)

            	
              "Effective Time" means
      12:01 a.m. Eastern Time on October 1,
2008;

            

    

     

    
      	
               
      

            	
              (w)

            	
              "include" and "including" mean
      "include, without limitation" and "including, without limitation",
      respectively;

            

    

     

    
      	
               
      

            	
              (x)

            	
              "Indemnifiable Losses"
      means all losses, costs, damages, expenses, charges, fines, penalties,
      assessments or other liabilities whatsoever (including reasonable
      attorneys fees and expenses), but does not (except to the extent claimed
      by a third Person) include consequential, incidental, economic or punitive
      losses, damages or claims;

            

    

     

    
      	
               
      

            	
              (y)

            	
              "Indemnified Party" has
      the meaning attributed to it in Section
      6.7;

            

    

     

    
      	
               
      

            	
              (z)

            	
              "Indemnifying Party" has
      the meaning attributed to it in Section
      6.7;

            

    

     

    
      	
               
      

            	
              (aa)

            	
              "License Agreement" means
      the agreement whereby Proginet will grant an exclusive license to Beta
      America to sell, maintain and modify Proginet’s Secure-Line Products (as
      such term is defined in the License Agreement), in the form attached
      hereto as Exhibit
      A;

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 5
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (bb)

            	
              "Maintenance and Support
      Agreement" means the agreement whereby Beta Canada will provide
      maintenance and support services for the Harbor products to Proginet, in
      the form attached hereto as Exhibit
    B;

            

    

     

    
      	
               
      

            	
              (cc)

            	
              "Master Distributor
      Agreement" means the agreement whereby Beta Systems Software AG or
      any of its distributors, subsidiaries or associated companies, will become
      the master distributor for Proginet's CFI Suite in Europe, in the form
      attached hereto as Exhibit
    C;

            

    

     

    
      	
               
      

            	
              (dd)

            	
              "Notice of Claim" means a
      notice by a Party on behalf of itself or one or more Additional
      Indemnities (if applicable) of a claim for Indemnifiable Losses pursuant
      to Sections 6.1, 6.2 or
      6.3, as applicable, together with detailed particulars as to the
      nature and amount of the claim, the basis which it is sought and the
      provisions of this Agreement applicable to such
  claim;

            

    

     

    
      	
               
      

            	
              (ee)

            	
              "Parties" means Beta
      Canada, Beta America and Proginet and "Party" means one of
      them, as the context may indicate;

            

    

     

    
      	
               
      

            	
              (ff)

            	
              "Permitted Security
      Interests" means (a) mechanic’s, materialman’s, warehouseman’s,
      carrier’s and similar liens for labor, materials or supplies incurred in
      the ordinary course of business, (b) purchase money security interests
      arising in the ordinary course of business, and (c) liens for taxes,
      assessments and other governmental charges not yet due and
      payable;

            

    

     

    
      	
               
      

            	
              (gg)

            	
              "Person" includes an
      individual, a partnership (limited or general), a corporation, a limited
      liability company, a trust, a joint venture, an unincorporated
      organization, a union, a government or any department or agency thereof
      and the heirs, executors, administrators or other legal representatives of
      an individual;

            

    

     

    
      	
               
      

            	
              (hh)

            	
              "Place of Closing" means
      the offices of Beta Systems Software AG, or such other place as may be
      agreed by the Parties;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              "Proginet" means Proginet
      Corporation;

            

    

     

    
      	
               
      

            	
              (jj)

            	
              "Proginet Asset
      Assignment" means the assignment agreement whereby Proginet conveys
      the Proginet Assets to Beta Canada;

            

    

     

    
      	
               
      

            	
              (kk)

            	
              "Proginet Assets" means
      all the properties, assets, interests and rights of Proginet which are
      related to the Proginet Products including the
  following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Proginet Intellectual Property and the Proginet
  Technology;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Proginet Books and Records;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Proginet Contracts; and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              all
      proceeds of any or all of the foregoing received or receivable after the
      Effective Time.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 6
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (ll)

            	
              "Proginet Books and
      Records" means all books, records, files and papers related to the
      Proginet Products including drawings, engineering information, manuals and
      data, sales and advertising materials, sales and purchases correspondence,
      trade association files, research and development records, lists of
      present and former customers, distributors and suppliers and all copies
      and recordings of the foregoing;

            

    

     

    
      	
            	
              (mm)

            	
              "Proginet Contract
      Assignment" means the assignment and assumption agreement whereby
      Proginet conveys the Proginet Contracts to Beta America and Beta America
      assumes certain obligations related to the Proginet
    Contracts;

            

    

     

    
      	
               
      

            	
              (nn)

            	
              "Proginet Contracts"
      means all contracts, agreements and arrangements related to the Proginet
      Products, by which Proginet, on the one hand, and the customers listed in
      Schedule 5.4(f),
      on the other hand, are bound;

            

    

     

    
      	
               
      

            	
              (oo)

            	
              "Proginet Intellectual
      Property" means all rights to and interests
  in:

            

    

     

    
      	
               
      

            	
              (i)

            	
              all
      trade dress and brand names, logos, slogans, domain names, trade-marks
      (whether used with wares or services and including the goodwill attaching
      to such trade marks) and all registrations and applications for trade
      marks (all future income from such trade marks) related to the Proginet
      Products, all of which are listed in Schedule
      5.4(a);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              all
      inventions, patents, patent rights, patent applications (including all
      reissues, divisions, continuations, continuations-in-part and extensions
      of any patent or patent application), industrial designs and applications
      for registration of industrial designs related to the Proginet Products,
      all of the registrations or applications for registration of which are
      listed in Schedule
      5.4(a);

            

    

     

    
      	
               
      

            	
              (iii)

            	
              all
      copyrights, registrations and applications for copyrights (and all future
      income from such copyrights) related to the Proginet Products, all of the
      registrations or applications for registration of which are listed in
      Schedule
      5.4(a);

            

    

     

    
      	
               
      

            	
              (iv)

            	
              all
      rights and interests in and processes, lab journals, notebooks, data,
      trade secrets, designs, know-how, product formula and information,
      manufacturing, engineering and other drawings and manuals, technology,
      blue prints, research and development reports, agency agreements,
      technical information, technical assistance, engineering data, design and
      engineering specifications, and similar materials recording or evidencing
      expertise, information or technology related to the Proginet
      Products;

            

    

     

    
      	
               
      

            	
              (v)

            	
              all
      of the intellectual property affected by the registrations and
      applications for registration listed in Schedule 5.4(a) and the
      permissions and licenses listed in Schedule
      5.4(a);

            

    

     

    
      	
               
      

            	
              (vi)

            	
              all
      other intellectual and industrial property rights throughout the world
      related to the Proginet Products;

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 7
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (vii)

            	
              all
      licenses of the intellectual property granted by Proginet to third persons
      and listed in items (i) to (vi)
above;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              all
      future income and proceeds from any of the intellectual property listed in
      items (i) to (vi) above and the licenses listed in item (vii)
      above;

            

    

     

    
      	
               
      

            	
              (ix)

            	
              all
      documentation, packaging and media relating to the intellectual property
      described in items (i) to (viii) above, including all computer disks, CD
      ROMs and other storage media containing any such intellectual property and
      all inventory, boxes, wrapping and other packaging
    material;

            

    

     

    
      	
               
      

            	
              (x)

            	
              all
      rights to damages, royalties and profits by reason of the past, present or
      future infringement or other misuse of any of the intellectual property
      listed in items (i) to (vii) above;

            

    

     

    
      	
               
      

            	
              (pp)

            	
              "Proginet Products" means the
      products of Proginet related to the SecurPass product
  line;

            

    

     

    
      	
               
      

            	
              (qq)

            	
              "Proginet Technology"
      means all computer software (including source code and object code),
      operating systems, browsers, user interfaces, algorithms, architecture,
      structure, display screens, layouts, development tools, instructions,
      templates, servers, hardware, technical information, engineering data or
      reports or other technology or related information all of which are
      developed, licensed or owned by Proginet and are related to the Proginet
      Products and whether completed or in the course of development, all as
      related to the Proginet Products;

            

    

     

    
      	
               
      

            	
              (rr)

            	
              "Sales Taxes" has the
      meaning attributed to it in Section
      2.3;

            

    

     

    
      	
               
      

            	
              (ss)

            	
              "SEC" has the meaning
      attributed to it in Section
      10.7;

            

    

     

    
      	
               
      

            	
              (tt)

            	
              "Security Interest" means
      any mortgage, pledge, hypothecation, lien (statutory or otherwise),
      preference, priority, security agreement or other encumbrance affecting
      title to such asset;

            

    

     

    
      	
               
      

            	
              (uu)

            	
              "Secur-Line Contract
      Assignment" means the assignment and assumption agreement whereby
      Proginet conveys the Secur-Line Contracts to Beta America and Beta America
      assumes certain obligations related to the Secur-Line
      Contracts;

            

    

     

    
      	
               
      

            	
              (vv)

            	
              "Secur-Line Contracts"
      means all contracts, agreements and arrangements related to the SecurForce
      product line and the SecurAccess product line, by which Proginet, on the
      one hand, and the customers listed in Schedule 5.4(f), on the
      other hand, are bound;

            

    

     

    
      	
            	
              (ww)

            	
              "Survival Period" means,
      other than for claims related to Taxes (including Sales Taxes), a period
      beginning on the Closing Date and ending 12 months after the Closing
      Date;

            

    

     

    

    
      
        
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portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
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              (xx)

            	
              "Tax Survival Period"
      means, for claims related to Taxes (including Sales Taxes) a period
      beginning on the Closing Date and ending 24 months after the Closing
      Date;

            

    

     

    
      	
               
      

            	
              (yy)

            	
              "Taxes" means all taxes,
      charges, fees, levies, imposts and other assessments, including all
      income, sales, use, goods and services, value added, capital, capital
      gains, alternative, net worth, transfer, profits, withholding, payroll,
      employment, government pension, employer health, excise, franchise, real
      property and personal property taxes, and any other taxes, customs duties,
      fees, assessments or similar charges in the nature of a tax, together with
      any instalments with respect thereto, and any interest, fines and
      penalties, imposed by any governmental authority (including federal,
      state, provincial, municipal and foreign governmental authorities), and
      whether disputed or not.

            

    

     

    
      	
              1.2

            	
              Schedules

            

    

     

    Appended
hereto are the following Schedules:

     

    
      	
               
      

            	
              (a)

            	
              Schedule
      5.2(a)

            	
              -

            	
              Beta
      Canada Intellectual Property

            

    

     

    
      	
               
      

            	
              (b)

            	
              Schedule
      5.3(b)

            	
              -

            	
              Beta
      America Consents and Approvals

            

    

     

    
      	
               
      

            	
              (c)

            	
              Schedule
      5.3(d)

            	
              -

            	
              Beta
      America Customers and Distributors

            

    

     

    
      	
               
      

            	
              (d)

            	
              Schedule
      5.4(a)

            	
              -

            	
              Proginet
      Intellectual Property

            

    

     

    
      	
               
      

            	
              (e)

            	
              Schedule
      5.4(d)

            	
              -

            	
              Proginet
      Consents and Approvals

            

    

     

    
      	
               
      

            	
              (f)

            	
              Schedule
      5.4(f)

            	
              -

            	
              Proginet
      Customers and Distributors

            

    

     

    all of
which are incorporated into and form part of this Agreement by this reference as
fully as though contained in the body of this Agreement.

     

    
      	
              1.3

            	
              Exhibits

            

    

     

    Appended
hereto are the following Exhibits:

     

    
      	
               
      

            	
              (a)

            	
              Exhibit
    A

            	
              -

            	
              Form
      of License Agreement

            

    

     

    
      	
               
      

            	
              (b)

            	
              Exhibit
    B

            	
              -

            	
              Form
      of Maintenance and Support
Agreement

            

    

     

    
      	
               
      

            	
              (c)

            	
              Exhibit
    C

            	
              -

            	
              Form
      of Master Distributor Agreement

            

    

     

    
      	
              1.4

            	
              Conflicts

            

    

     

    Wherever
any provision of any Exhibit or Schedule to this Agreement conflicts with any
provision in the body of this Agreement, the provisions of the body of this
Agreement shall prevail.

     

    

    
      
        
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              1.5

            	
              References

            

    

     

    The terms
"hereof", "herein", "hereunder", and similar expressions refer to this
Agreement, including any Schedules hereto, taken as a whole and not to any
particular Article, Section, subsection or other subdivision thereof and include
any agreement or instrument which amends, modifies, or is supplementary to this
Agreement.  References herein to an Exhibit or Schedule shall mean a
reference to the applicable Exhibit or Schedule to this
Agreement.  References in any Exhibit or Schedule to the "Agreement"
shall mean a reference to this Agreement.  References in any Exhibit
or Schedule to another Exhibit or Schedule shall mean a reference to an Exhibit
or Schedule to this Agreement.

     

    
      	
              1.6

            	
              Headings

            

    

     

    The
headings of Articles, Sections and subsections herein and in the Exhibits and
Schedules are inserted for convenience of reference only and shall not affect or
be considered to affect the construction of the provisions hereof.

     

    
      	
              1.7

            	
              Singular/Plural;
      Derivatives

            

    

     

    In this
Agreement words importing the masculine gender include the feminine and neuter
genders and vice versa, and words importing the singular include the plural and
vice versa.  Where a term is defined herein, a capitalized derivative
of such term shall have a corresponding meaning unless the context
requires.

     

    
      	
              1.8

            	
              Business
      Day

            

    

     

    Whenever
any payment to be made or action to be taken under this Agreement is required to
be made or taken on a day other than a Business Day, such payment shall be made
or action taken on the next Business Day following.

     

    
      	
              1.9

            	
              Beta's
      Knowledge

            

    

     

    Where in
this Agreement, or in any certificate or document delivered in connection
herewith or to effect any of the transactions contemplated hereby, any
statement, representation or warranty is made as to, or as being based on, the
awareness, knowledge, information or belief of Beta, such awareness, knowledge,
information or belief, as applicable, is limited to the actual knowledge of the
following persons based on information obtained by them in the course of
performing their duties for Beta and inquires made by them in connection with
their roles in implementing the transactions contemplated hereby:

     

    
      
        
          
            	
                    Name

                  	
                    Title

                  
	 	 
	
                    Harald
      Podzuweit

                  	
                    General
      Manager

                  
	
                    Kamyar
      Niroumand

                  	
                    President
      and Chief Executive Officer

                  
	
                    Scott
      Dimond

                  	
                    Director
      of Systems
Engineering

                  

          

        

      

    

     

    For these
purposes, knowledge does not include the knowledge of any other
Person.

     

    

    
      
        
          [***]
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portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
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              1.10

            	
              Proginet's
      Knowledge

            

    

     

    Where in
this Agreement, or in any certificate or document delivered in connection
herewith or to effect any of the transactions contemplated hereby, any
statement, representation or warranty is made as to, or as being based on, the
awareness, knowledge, information or belief of Proginet, such awareness,
knowledge, information or belief, as applicable, is limited to the actual
knowledge of the following persons based on information obtained by them in the
course of performing their duties for Proginet and inquires made by them in
connection with their roles in implementing the transactions contemplated
hereby:

     

    
      
        
          
            	
                    Name

                  	
                    Title

                  
	 	 
	
                    Sandy
      Weil

                  	
                    President
      and Chief Executive Officer

                  
	
                    Arne
      Johnson

                  	
                    Consultant
      to Proginet

                  
	
                    Kevin
      Bohan

                  	
                    Chief
      Information
Officer

                  

          

        

      

    

     

    For these
purposes, knowledge does not include the knowledge of any other
Person.

     

    ARTICLE
2

    ASSET
EXCHANGE

     

    
      	
              2.1

            	
              Asset
      Exchange

            

    

     

    Effective
as of the Effective Time, each of Beta Canada and Beta America hereby
respectively sells, conveys, and assigns the Beta Canada Assets and the Beta
America Contracts to Proginet and Proginet hereby purchases and receives such
Beta Canada Assets from Beta Canada and such Beta America Contracts from Beta
America, all in accordance with and subject to the terms and conditions set
forth in this Agreement.  Effective as of the Effective Time, Proginet
hereby sells and conveys the Proginet Assets to Beta Canada, except the Proginet
Contracts and the Secur-Line Contracts, which are hereby assigned by Proginet to
Beta America, and Beta Canada hereby purchases and receives such Proginet Assets
from Proginet and Beta America hereby receives the Proginet Contracts and the
Secur-Line Contracts, all in accordance with and subject to the terms and
conditions set forth in this Agreement.

     

    
      	
              2.2

            	
              Acquisition
      Consideration

            

    

     

    The
Parties hereby agree that the deemed value of the Beta Canada Assets and the
Beta America Contracts shall collectively be US$800,000.  The Parties
further agree that the deemed value of the Proginet Assets and the Proginet
Contracts shall collectively be US$800,000.  In addition, the Parties
acknowledge and agree that the consideration for transfer of the Secur-Line
Contracts from Proginet to Beta America shall be the Royalty Fees payable by
Beta America pursuant to the License Agreement.

     

    
      	
              2.3

            	
              Sales
      Taxes

            

    

     

    Proginet
shall be liable for and shall pay any and all federal, provincial, state,
municipal and other sales taxes, value added taxes, transfer taxes, duties,
registration fees or other like charges (collectively, together with any
interest, penalties, fees, additions to tax or other additional amounts imposed
thereon, the "Sales
Taxes") properly payable upon or in connection with the conveyance or
transfer of the Beta Canada Assets and the Beta America
Contracts.  Proginet shall indemnify Beta Canada and Beta America, as
applicable, for any amounts (including penalties and interest) for which Beta
Canada and Beta America may become liable as a result of any failure by Proginet
to pay any such Sales Taxes.  Beta Canada shall be liable for and
shall pay any and all Sales Taxes properly payable upon or in connection with
the conveyance or transfer of the Proginet Assets.  Beta Canada shall
indemnify Proginet for any amounts (including penalties and interest) for which
Proginet may become liable as a result of any failure by Beta Canada to pay any
such Sales Taxes.  Beta America shall be liable for and shall pay any
and all Sales Taxes properly payable upon or in connection with the conveyance
or transfer of the Proginet Contracts and the Secur-Line
Contracts.  Beta America shall indemnify Proginet for any amounts
(including penalties and interest) for which Proginet may become liable as a
result of any failure by Beta America to pay any such Sales
Taxes.  The Parties agree to take all commercially reasonable steps to
minimize the Sales Taxes that may payable on the transactions contemplated by
this Agreement.

     

    

    
      
        
          [***]
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              2.4

            	
              Trade Accounts
      Receivable

            

    

     

    Each
Party will retain all collected payments from end-customers, even if such
payments were collected in advance for services, which will be performed after
September 30, 2008 by the other Party.  Each Party also retains the
right to collect any accounts receivable from customers outstanding immediately
prior to the Effective Time.  All other accounts receivable shall
transfer with the applicable contracts.

     

    ARTICLE
3

    CLOSING

     

    
      	
              3.1

            	
              Place and Time of
      Closing

            

    

     

    Closing
shall take place at the Place of Closing on the Closing Date.

     

    
      	
              3.2

            	
              Deliveries at
      Closing

            

    

     

    
      	
               
      

            	
              (a)

            	
              Beta Canada
      Deliveries.  At the Closing, Beta Canada shall deliver,
      or shall cause to be delivered, the following to
  Proginet:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Beta Canada Assets;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Beta Canada Asset Assignment executed by Beta
  Canada;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Proginet Asset Assignment executed by Beta
  Canada;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any
      other conveyances required by Section
      4.1(a);

            

    

     

    
      	
               
      

            	
              (v)

            	
              an
      officer-certified copy of resolutions of the board of directors of Beta
      Canada which resolutions authorize the execution and delivery of this
      Agreement and the completion of the transfer of the Beta Canada Assets and
      the other transactions contemplated by this
  Agreement;

            

    

     

    

    
      
        
          [***]
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portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
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              (vi)

            	
              certificates
      of status from appropriate authorities, dated as of or within three
      Business Days of the Closing Date, as to the legal existence of Beta
      Canada and its qualification to do business in the jurisdiction in which
      it is organized;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              the
      Master Distributor Agreement executed by Beta Systems Software
      AG;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              the
      Maintenance and Support Agreement executed by Beta Canada;
    and

            

    

     

    
      	
               
      

            	
              (ix)

            	
              such
      other documents reasonably requested by Proginet to be delivered by Beta
      Canada at the Closing.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Beta America
      Deliveries.  At Closing, Beta America shall deliver, or
      cause to be delivered, the following to
  Proginet:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Beta America Contracts and all consents set forth on Schedule 5.3(b) (other
      than those Beta America Contracts for which third-party consents have not
      been received, to which Section 7.1 shall
      apply);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Beta America Contract Assignment executed by Beta
  America;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Proginet Contract Assignment executed by Beta
  America;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      Secur-Line Contract Assignment executed by Beta
  America;

            

    

     

    
      	
               
      

            	
              (v)

            	
              any
      other conveyances required by Section
      4.1(a);

            

    

     

    
      	
               
      

            	
              (vi)

            	
              an
      officer-certified copy of resolutions of the board of directors of Beta
      America which resolutions authorize the execution and delivery of this
      Agreement and the completion of the transfer of the Beta America Contracts
      and the other transactions contemplated by this
  Agreement;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              certificates
      of status from appropriate authorities, dated as of or within three
      Business Days of the Closing Date, as to the legal existence of Beta
      America and its qualification to do business in the jurisdiction in which
      it is organized;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              the
      License Agreement executed by Beta America;
and

            

    

     

    
      	
               
      

            	
              (ix)

            	
              such
      other documents reasonably requested by Proginet to be delivered by Beta
      America at the Closing.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Proginet
      Deliveries.  At the Closing, Proginet shall deliver, or
      cause to be delivered, the following to Beta
  Canada:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Proginet Assets, except the Proginet
Contracts;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Proginet Asset Assignment executed by
Proginet;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Beta Canada Asset Assignment executed by
  Proginet;

            

    

     

    

    
      
        
          [***]
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              (iv)

            	
              any
      other conveyances required by Section
      4.1(b);

            

    

     

    
      	
               
      

            	
              (v)

            	
              an
      officer-certified copy of resolutions of the board of directors of
      Proginet which resolutions authorize the execution and delivery of this
      Agreement and the completion of the transfer of the Proginet Assets and
      the other transactions contemplated by this
  Agreement;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              a
      certificate of status from the appropriate authority, dated as of or
      within three Business Days of the Closing Date, as to the legal existence
      of Proginet and its qualification to do business in the jurisdiction in
      which it is organized;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              the
      Master Distributor Agreement executed by
  Proginet;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              the
      Maintenance and Support Agreement executed by
  Proginet;

            

    

     

    
      	
               
      

            	
              (ix)

            	
              such
      other documents reasonably requested by Beta to be delivered by Proginet
      at the Closing.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Proginet Deliveries to
      Beta America.  At the Closing, Proginet shall deliver, or
      cause to be delivered, the following to Beta
  America:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Proginet Contracts and the Secur-Line Contracts and all consents set forth
      on Schedule
      5.4(d) (other than those Proginet Contracts and Secur-Line
      Contracts for which third-party consents have not been received, to which
      Section 7.1 shall
      apply);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Proginet Contract Assignment executed by
  Proginet;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Secur-Line Contract Assignment executed by
  Proginet;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      Beta America Contract Assignment executed by
  Proginet;

            

    

     

    
      	
               
      

            	
              (v)

            	
              any
      other conveyances required by Section
      4.1(b);

            

    

     

    
      	
               
      

            	
              (vi)

            	
              the
      License Agreement executed by Proginet;
and

            

    

     

    
      	
               
      

            	
              (vii)

            	
              such
      other documents reasonably requested by Beta to be delivered by Proginet
      at the Closing.

            

    

     

    
      	
              3.3

            	
              Contract
      Lists

            

    

     

    The
Parties agree that, within 30 days of the Closing Date, Proginet shall deliver
to Beta North America a list of all the Proginet Contracts and Secur-Line
Contracts and Beta America shall deliver to Proginet a list of all the Beta
America Contracts.

     

    
      	
              3.4

            	
              Physical
      Deliveries

            

    

     

    The
Parties agree that the physical delivery of the tangible portions of the Beta
Canada Assets, the Beta America Contracts, the Proginet Assets, the Proginet
Contracts and the Secur-Line Contracts to the applicable Party shall occur
within 30 days of the Closing Date.

     

    

    
      
        
          [***]
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portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
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    ARTICLE
4

    CONVEYANCES

     

    
      	
              4.1

            	
              Conveyances

            

    

     

    
      	
               
      

            	
              (a)

            	
              Prior
      to or at Closing, each of Beta Canada and Beta America shall prepare and
      deliver (or cause to be prepared and delivered) to Proginet (i) the Beta
      Canada Asset Assignment, (ii) the Beta America Contract Assignment and
      (iii) all such other deeds, assignments, transfers, conveyances,
      novations, notices and other documents and assurances (including
      conveyances of registered Beta Canada Intellectual Property) as may be
      reasonably necessary to convey the Beta Canada Assets and the Beta America
      Contracts to Proginet.  Any such Closing documents and
      assurances shall be in such form and shall be of such content as to be
      reasonably satisfactory to Proginet.  After Closing, each of
      Beta Canada and Beta America shall cooperate with Proginet to secure
      execution of such documents and assurances by the parties thereto other
      than Proginet.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Prior
      to or at Closing, Proginet shall prepare and deliver (or cause to be
      prepared or delivered) to Beta Canada or Beta America, as applicable, (i)
      the Proginet Asset Assignment, (ii) the Proginet Contract Assignment,
      (iii) the Secur-Line Contract Assignment and (iv) all such deeds,
      assignments, transfers, conveyances, novations, notices and other
      documents and assurances (including conveyances of registered Proginet
      Intellectual Property) as may be reasonably necessary to convey the
      Proginet Assets to Beta Canada or Beta America, as the case may
      be.  Any such closing documents and assurances shall be in such
      form and shall be of such content as to be reasonably satisfactory to Beta
      Canada.  After Closing, Proginet shall cooperate with Beta
      Canada to secure execution of such documents and assurances by parties
      thereto other than Beta Canada.

            

    

     

    
      	
               
      

            	
              (c)

            	
              All
      such documents and assurances executed and delivered pursuant to this
      Agreement are subordinate to the provisions of this Agreement and the
      provisions of this Agreement shall govern and prevail in the event of any
      conflict between the provisions of this Agreement and any such document or
      assurance.

            

    

     

    ARTICLE
5

    REPRESENTATIONS
AND WARRANTIES OF PARTIES

     

    
      	
              5.1

            	
              Each Party's
      Representations and
Warranties

            

    

     

    Each
Party hereby represents and warrants to each other Party as of the Closing Date,
that:

     

    
      	
               
      

            	
              (a)

            	
              such
      Party is a corporation duly incorporated, validly existing and in good
      standing under the laws of the jurisdiction of its
      incorporation;

            

    

     

    
      	
               
      

            	
              (b)

            	
              such
      Party has all requisite corporate power and authority to enter into this
      Agreement and to perform its obligations under this
    Agreement;

            

    

     

    

    
      
        
          [***]
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              (c)

            	
              all
      necessary corporate action has been taken by such Party to authorize the
      execution and delivery by it of this Agreement and all other agreements
      and instruments contemplated by this
Agreement;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      execution and delivery of this Agreement and the consummation of the
      transactions contemplated herein by such Party will not violate nor be in
      conflict with any provision of (i) any judgment, decree, order, statute,
      rule or regulation (including export regulations) applicable to it or (ii)
      its governing documents;

            

    

     

    
      	
               
      

            	
              (e)

            	
              this
      Agreement has been duly executed and delivered by such Party and all
      documents required hereunder to be executed and delivered by it will
      constitute legal, valid and binding obligations of it enforceable in
      accordance with their respective terms, subject to equitable remedies of
      the courts and bankruptcy and insolvency laws;
  and

            

    

     

    
      	
               
      

            	
              (f)

            	
              such
      Party has not incurred any obligation or liability contingent or otherwise
      for brokers' or finders' fees in respect of this transaction for which any
      other Party shall have any obligation or
  liability;

            

    

     

    
      	
              5.2

            	
              Beta Canada's
      Representations and
Warranties

            

    

     

    Beta
Canada represents and warrants to Proginet that:

     

    
      	
               
      

            	
              (a)

            	
              Intellectual
      Property.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Schedule 5.2(a) lists
      all the registrations and applications for registration of the Beta Canada
      Intellectual Property and all unregistered trade-marks. Except as
      disclosed in Schedule
      5.2(a) all the registrations and applications for registration of
      the Beta Canada Intellectual Property are valid and subsisting in good
      standing and are recorded in the name of Beta
  Canada.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Except
      as disclosed in Schedule
      5.2(a), Beta Canada is owner of the Beta Canada Intellectual
      Property and the Beta Canada Technology and is entitled to uninterrupted
      use of the Beta Canada Intellectual Property and the Beta Canada
      Technology without payment of any royalty or other fees. No shareholder,
      officer, director or employee of Beta Canada or any third party has any
      right, title or interest in any of the Beta Canada Intellectual Property.
      Beta Canada has exercised good judgment in order to protect its legal
      rights to the exclusive use of the Beta Canada Intellectual
      Property.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              There
      is no current litigation relating to the Beta Canada Intellectual
      Property.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Except
      as disclosed in Schedule
      5.2(a), all employees of Beta Canada who have had access to
      confidential Beta Canada Intellectual Property and Beta Canada Technology
      have agreed to maintain the confidentiality of confidential Beta Canada
      Intellectual Property and the Beta Canada Technology.  Beta
      Canada has taken reasonable steps, consistent with its practices and
      policies, to protect its rights in confidential information and trade
      secrets owned by Beta Canada..

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      16 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (v)

            	
              All
      of Beta Canada's permissions and licenses to use the industrial or
      intellectual property of other Persons related to the Beta Products are
      disclosed in Schedule
      5.2(a). Beta Canada has not permitted or licensed any Person to use
      any of the Beta Canada Intellectual Property except as disclosed in Schedule
      5.2(a).  All licenses referred to in Schedule 5.2(a) are in
      full force and effect and neither the Beta Canada and its Affiliates nor,
      to the best knowledge of Beta Canada, the other parties thereto, are in
      default of their obligations.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              No
      Person has challenged (i) the validity of any registrations of the Beta
      Canada Intellectual Property or (ii) Beta Canada's rights to any of the
      Beta Canada Intellectual Property.

            

    

     

    
      	
               
      

            	
              (vii)

            	
              Beta
      Canada is not aware, after reasonable due inquiry, of any infringement of
      Beta Canada's rights to the Beta Canada Intellectual Property, except as
      set out in Schedule
      5.2(a).

            

    

     

    
      	
               
      

            	
              (viii)

            	
              Except
      as disclosed in Schedule
      5.2(a), Beta Canada has the
right:

            

    

     

    
      	
               
      

            	
              (A)

            	
              to
      use, sell, license, modify, copy, distribute and dispose of the Beta
      Canada Intellectual Property and Beta Canada
  Technology;

            

    

     

    
      	
               
      

            	
              (B)

            	
              to
      bring actions for infringement or other misuse of the Beta Canada
      Intellectual Property; and

            

    

     

    
      	
               
      

            	
              (C)

            	
              to
      assign the Beta Canada Intellectual Property and Beta Canada Technology to
      Proginet, subject to obtaining all consents and approvals listed in Schedule
      5.2(a).

            

    

     

    
      	
               
      

            	
              (ix)

            	
              Except
      as disclosed in Schedule
      5.2(a), all employees of Beta Canada involved in the development of
      the Beta Canada Intellectual Property and Beta Canada Technology related
      to the Beta Products have entered into
      nondisclosure agreements pursuant to which they have agreed to maintain
      the confidentiality of Beta Canada Intellectual Property and Beta Canada
      Technology and have assigned all rights they may have in the Beta Canada
      Intellectual Property and Beta Canada Technology to Beta Canada, and have
      waived any moral rights they may have for the benefit of Beta Canada and
      anyone claiming through Beta Canada, and except for the licenses referred
      to in Schedule
      5.2(a), no shareholder, officer, partner, director or employee of
      Beta Canada or any third party has any right, title or interest in any of
      the Beta Canada Intellectual Property and Beta Canada
      Technology.

            

    

     

    
      	
               
      

            	
              (x)

            	
              Except
      as disclosed in Schedule
      5.2(a), the Beta Canada Technology neither contains nor embodies
      nor uses nor requires any third party industrial or intellectual property
      or confidential or other proprietary rights, including software
      development tools and utilities, and the Beta Canada Technology contains
      all software necessary for the continued operation, maintenance and
      development of the Beta Canada
Technology.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      17 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (xi)

            	
              Neither
      the manufacture, marketing, distribution, license, sale, modification,
      copying or use of any products currently manufactured, marketed,
      distributed, modified, copied, licensed sold or used by Beta Canada
      including the Beta Canada Technology, nor the Beta Canada Assets, the Beta
      Canada Intellectual Property nor the conduct of the Beta
      Products:

            

    

     

    
      	
               
      

            	
              (A)

            	
              violates
      any license or agreement of Beta Canada with any Person;
  or

            

    

     

    
      	
               
      

            	
              (B)

            	
              after
      reasonable due inquiry, has infringed or currently infringes upon the
      industrial, intellectual property trade secret or proprietary rights of
      any Person, whether pursuant to common law or statutory law, including
      rights relating to defamation, rights of confidentiality, privacy or
      publicity and contractual rights; or except for the licenses referred to
      in Schedule 5.2(a), requires the
      payment of any royalty, honoraria, fees or other payments to any other
      Person.

            

    

     

    
      	
               
      

            	
              (xii)

            	
              All
      source code for the computer software comprising part of the Beta Canada
      Technology is sufficiently documented to enable the maintenance and
      support of the Beta Canada Technology in the same manner as conducted
      immediately prior to the Effective
Time.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Title to
      Assets.  Beta Canada has good and marketable title to all
      the Beta Canada Assets, free and clear of any and all Security Interests,
      except for Permitted Security Interests.  Other than this
      Agreement, there is no agreement, option or other right or privilege
      outstanding in favour of any Person for the purchase from Beta Canada of
      any of the Beta Canada Assets out of the ordinary course of
      business.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Litigation.  There
      is no action, suit, proceeding, claim, application, complaint or
      investigation in any court or before any arbitrator or before or by any
      regulatory body or governmental or non-governmental body pending or, to
      the knowledge of Beta, threatened by or against Beta Canada related to the
      Beta Products or the transactions contemplated by this
      Agreement.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Payment of
      Taxes.  There are no unpaid Taxes or assessments which
      are or could result in a lien or charge on the Beta Canada
      Assets.

            

    

     

    
      	
              5.3

            	
              Beta America's
      Representations and
Warranties

            

    

     

    
      	
               
      

            	
              (a)

            	
              Contracts.  Beta
      America has not received any notice of default and Beta America is not in
      default, under any Beta America Contract which default would have a
      material adverse effect upon the condition of the Beta Products and there
      has not occurred any event which, with a lapse of time or giving of
      notice, or both, would constitute such a default.  Each Beta
      America Contract is in full force and effect, unamended by written or oral
      agreement, and Beta America is entitled to the full benefit and advantage
      of each Beta America Contract in accordance with the terms of each such
      Beta America Contract.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      18 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (b)

            	
              Consents and
      Approvals.  All the consents and approvals required to
      assign the Beta America Contracts are listed in Schedule
      5.3(b).  Except for such consents and approvals, no
      consent or approval of any Person is required in connection with the
      execution and delivery of this Agreement and the completion of the
      transactions contemplated by this
Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Litigation.  There
      is no action, suit, proceeding, claim, application, complaint or
      investigation in any court or before any arbitrator or before or by any
      regulatory body or governmental or non-governmental body pending or
      threatened by or against Beta America related to the Beta Products or the
      transactions contemplated by this
Agreement.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Customers and
      Distributors.  Schedule 5.3(d) lists
      the customers and the distributors of the Beta Products.  Beta
      America has no knowledge of, nor has it received notice of, any intention
      on the part of any such customer or distributor to cease doing business
      with Beta or to modify or change in any material manner any existing
      arrangement with Beta America related to the Beta Products for the
      purchase or distribution of any products or
  services.

            

    

     

    
      	
              5.4

            	
              Proginet's
      Representations and
Warranties

            

    

     

    Proginet
represents and warrants to each of Beta Canada and Beta America
that:

     

    
      	
               
      

            	
              (a)

            	
              Intellectual
      Property.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Schedule 5.4(a) lists
      all the registrations and applications for registration of the Proginet
      Intellectual Property and all unregistered trade-marks. Except as
      disclosed in Schedule
      5.4(a) all the registrations and applications for registration of
      the Proginet Intellectual Property are valid and subsisting in good
      standing and are recorded in the name of Proginet.  No
      application for registration of any of the Proginet Intellectual Property
      has been rejected.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Except
      as disclosed in Schedule
      5.4(a), Proginet is owner of the Proginet Intellectual Property and
      the Proginet Technology and is entitled to uninterrupted use of the
      Proginet Intellectual Property and Proginet Technology without payment of
      any royalty or other fees. No shareholder, officer, director or employee
      of Proginet or any third party has any right, title or interest in any of
      the Proginet Intellectual Property. Proginet has exercised good judgment
      in order to protect its legal rights to the exclusive use of the Proginet
      Intellectual Property.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              There
      is no current litigation relating to the Proginet Intellectual
      Property.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Except
      as disclosed in Schedule
      5.4(a), all employees of Proginet who have had access to
      confidential Proginet Intellectual Property and Proginet Technology have
      agreed to maintain the confidentiality of confidential Proginet
      Intellectual Property and the Proginet Technology.  Proginet has
      taken reasonable steps, consistent with its practices and policies, to
      protect its rights in confidential information and trade secrets owned by
      Proginet.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      19 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (v)

            	
              All
      of Proginet's permissions and licenses to use the industrial or
      intellectual property of other Persons related to the Proginet Products
      are disclosed in Schedule
      5.4(a).  Proginet has not permitted or licensed any
      Person to use any of the Proginet Intellectual Property except as
      disclosed in Schedule
      5.4(a).  All licenses referred to in Schedule 5.4(a) are in
      full force and effect and neither Proginet and its Affiliates nor, to the
      best knowledge of Proginet, the other parties thereto, are in default of
      their respective obligations.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              No
      Person has challenged (i) the validity of any registrations of the
      Proginet Intellectual Property or (ii) Proginet's rights to any of the
      Proginet Intellectual Property.

            

    

     

    
      	
               
      

            	
              (vii)

            	
              Proginet
      is not aware, after reasonable due inquiry, of any infringement of
      Proginet's rights to the Proginet Intellectual Property, except as set out
      in Schedule
      5.4(a).

            

    

     

    
      	
               
      

            	
              (viii)

            	
              Except
      as disclosed in Schedule
      5.4(a), Proginet has the
right:

            

    

     

    
      	
               
      

            	
              (A)

            	
              to
      use, sell, license, modify, copy, distribute and dispose of the Proginet
      Intellectual Property and Proginet
Technology;

            

    

     

    
      	
               
      

            	
              (B)

            	
              bring
      actions for infringement or other misuse of the Proginet Intellectual
      Property; and

            

    

     

    
      	
               
      

            	
              (C)

            	
              to
      assign the Proginet Intellectual Property and Proginet Technology to Beta
      Canada, subject to obtaining all consents and approvals listed in Schedule
      5.4(a).

            

    

     

    
      	
               
      

            	
              (ix)

            	
              Except
      as disclosed in Schedule
      5.4(a), all employees of Proginet involved in the development of
      the Proginet Intellectual Property and Proginet Technology related to the
      Proginet Products have entered into nondisclosure agreements pursuant to
      which they have agreed to maintain the confidentiality of Proginet
      Intellectual Property and Proginet Technology and have assigned all rights
      they may have in the Proginet Intellectual Property and Proginet
      Technology to Proginet, and have waived any moral rights they may have for
      the benefit of Proginet and anyone claiming through Proginet, and except
      for the licenses referred to in Schedule 5.4(a), no
      shareholder, officer, partner, director or employee of Proginet or any
      third party has any right, title or interest in any of the Proginet
      Intellectual Property and Proginet
Technology.

            

    

     

    
      	
               
      

            	
              (x)

            	
              Except
      as disclosed in Schedule
      5.4(a), the Proginet Technology neither contains nor embodies nor
      uses nor requires any third party industrial or intellectual property or
      confidential or other proprietary rights, including software development
      tools and utilities, and the Proginet Technology contains all software
      necessary for the continued operation, maintenance and development of the
      Proginet Technology.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      20 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (xi)

            	
              Neither
      the manufacture, marketing, distribution, license, sale, modification,
      copying or use of any products currently manufactured, marketed,
      distributed, modified, copied, licensed sold or used by Proginet including
      the Proginet Technology, nor the Proginet Assets, the Proginet
      Intellectual Property nor the conduct of the Proginet
      Products:

            

    

     

    
      	
               
      

            	
              (A)

            	
              violates
      any license or agreement of Proginet with any Person;
  or

            

    

     

    
      	
               
      

            	
              (B)

            	
              after
      reasonable due inquiry, has infringed or currently infringes upon the
      industrial, intellectual property trade secret or proprietary rights of
      any Person, whether pursuant to common law or statutory law, including
      rights relating to defamation, rights of confidentiality, privacy or
      publicity and contractual rights; or, except for the licenses referred to
      in Schedule
      5.4(a), requires the payment of any royalty, honoraria, fees or
      other payments to any other Person.

            

    

     

    
      	
               
      

            	
              (xii)

            	
              All
      source code for the computer software comprising part of the Proginet
      Technology is sufficiently documented to enable the maintenance and
      support of the Proginet Technology in the same manner as conducted
      immediately prior to the Effective
Time.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Title to
      Assets.  Proginet has good and marketable title to all
      the Proginet Assets, free and clear of any and all Security Interests,
      except for Permitted Security Interests.  Other than this
      Agreement, there is no agreement, option or other right or privilege
      outstanding in favour of any Person for the purchase from Proginet of any
      of the Proginet Assets out of the ordinary course of
    business.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Contracts.  Proginet
      has not received any notice of default and Proginet is not in default
      under any Proginet Contract or Secur-Line Contract which default would
      have a material adverse effect upon the condition of the Proginet Products
      and there has not occurred any event which, with a lapse of time or giving
      of notice, or both, would constitute such a default.  Each
      Proginet Contract and Secur-Line Contract is in full force and effect,
      unamended by written or oral agreement, and Proginet is entitled to the
      full benefit and advantage of each Proginet Contract and Secur-Line
      Contract in accordance with the terms of each such Proginet Contract or
      Secur-Line Contract.  

            

    

     

    
      	
               
      

            	
              (d)

            	
              Consents and
      Approvals.  All the consents and approvals required to
      assign the Proginet Contracts and Secur-Line Contracts are listed in Schedule
      5.4(d).  Except for the Proginet Consents and Approvals,
      no consent or approval of any Person is required in connection with the
      execution and delivery of this Agreement and the completion of the
      transactions contemplated by this
Agreement.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      21 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (e)

            	
              Litigation.  There
      is no action, suit, proceeding, claim, application, complaint or
      investigation in any court or before any arbitrator or before or by any
      regulatory body or governmental or non-governmental body pending or, to
      the knowledge of Proginet, threatened by or against Proginet related to
      the Proginet Products or the transactions contemplated by this
      Agreement.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Customers and
      Distributors.  Schedule 5.4(f) lists
      the customers and the distributors of the Proginet
      Products.  Proginet has no knowledge of, nor has it received
      notice of, any intention on the part of any such customer or distributor
      to cease doing business with Proginet or to modify or change in any
      material manner any existing arrangement with Proginet related to the
      Proginet Products for the purchase or distribution of any products or
      services.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Payment of
      Taxes.  There are no unpaid Taxes or assessments which
      are or could result in a lien or charge on the Proginet
      Assets.

            

    

     

    
      	
              5.5

            	
              Survival of
      Representations and
Warranties

            

    

     

    Each
Party acknowledges that each other Party may rely on the representations and
warranties made by such Party pursuant to Sections 5.1, 5.2, 5.3 or
5.4, as the case may be.  The representations and warranties in
Sections 5.1, 5.2, 5.3 or
5.4 shall be true on the Closing Date, and such representations and
warranties shall survive the Closing Date for the Survival Period or the Tax
Survival Period, as applicable, for the benefit of the Party for which such
representations and warranties were made.

     

    
      	
              5.6

            	
              No Additional
      Representations or Warranties by any
  Party

            

    

     

    EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NO PARTY MAKES ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING ANY MATTER,
INCLUDING FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, INFORMATIONAL
CONTENT, SYSTEMS, INTEGRATION, NON-INFRINGEMENT, INTERFERENCE WITH ENJOYMENT, OR
RESULTS TO BE DERIVED FROM THE USE OF ANY SERVICE, SOFTWARE, HARDWARE,
DELIVERABLES, WORK PRODUCT OR OTHER MATERIALS PROVIDED UNDER THIS
AGREEMENT.  EXCEPT AS EXPRESSLY SET FORTH HEREIN, ALL CONVEYANCES ARE
MADE ON AN “AS IS” BASIS.

     

    ARTICLE
6

    LIABILITIES
AND INDEMNITIES

     

    
      	
              6.1

            	
              Responsibility of
      Beta
      Canada

            

    

     

    Subject
to the limitations set forth herein, Beta Canada:

     

    
      	
               
      

            	
              (a)

            	
              shall
      be liable to Proginet and its Additional Indemnitees for all Indemnifiable
      Losses which any one or more of them may suffer, sustain, pay or incur;
      and

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      22 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (b)

            	
              shall
      indemnify and save harmless Proginet and its Additional Indemnitees from
      and against all Indemnifiable Losses which may be brought against or
      suffered by any one or more of them or which any one or more of them may
      sustain, pay or incur;

            

    

     

    as a
direct result of any act, omission, circumstance or other matter arising out of,
resulting from, attributable to or connected with any Agreement Default made by
Beta Canada herein.

     

    
      	
              6.2

            	
              Responsibility of Beta
      America

            

    

     

    Subject
to the limitations set forth herein, Beta America:

     

    
      	
               
      

            	
              (a)

            	
              shall
      be liable to Proginet and its Additional Indemnitees for all Indemnifiable
      Losses which any one or more of them may suffer, sustain, pay or incur;
      and

            

    

     

    
      	
               
      

            	
              (b)

            	
              shall
      indemnify and save harmless Proginet and its Additional Indemnitees from
      and against all Indemnifiable Losses which may be brought against or
      suffered by any one or more of them or which any one or more of them may
      sustain, pay or incur;

            

    

     

    as a
direct result of any act, omission, circumstance or other matter arising out of,
resulting from, attributable to or connected with any Agreement Default made by
Beta America herein.

     

    
      	
              6.3

            	
              Responsibility of
      Proginet

            

    

     

    Subject
to the limitations set forth herein, Proginet:

     

    
      	
               
      

            	
              (a)

            	
              shall
      be liable to each of Beta Canada and Beta America and its Additional
      Indemnitees for all Indemnifiable Losses which any one or more of them may
      suffer, sustain, pay or incur; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              shall
      indemnify and save harmless each of Beta Canada and Beta America and its
      Additional Indemnitees from and against all Indemnifiable Losses which may
      be brought against or suffered by any one or more of them or which any one
      or more of them may sustain, pay or
incur;

            

    

     

    as a
direct result of any act, omission, circumstance or other matter arising out of,
resulting from, attributable to or connected with any Agreement Default made by
Proginet herein.

     

    
      	
              6.4

            	
              Limit on
      Responsibility

            

    

     

    Each
Party's obligations and liability under this Agreement shall be subject to the
following limitations:

     

    
      	
               
      

            	
              (a)

            	
              no
      Party shall have any liability in connection with any Indemnifiable Losses
      until the aggregate of such claims exceeds US$[***] and upon the
      aggregate of such Indemnifiable Losses exceeding US$[***], the
      indemnifying Party shall be required to indemnify in respect of the amount
      of all such Indemnifiable Losses.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      23 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (b)

            	
              No
      Party shall have liability in connection with Indemnifiable Losses unless
      the affected Party shall, prior to the expiry of the Survival Period or
      the Tax Survival Period, as applicable, have provided the other Party with
      a Notice of Claim.

            

    

     

    
      	
              6.5

            	
              Insurance

            

    

     

    Notwithstanding
anything herein to the contrary, the indemnities provided in Sections 6.1, 6.2 and 6.3 and
shall not apply to the extent that claims for Indemnifiable Losses are
reimbursed to the Person to be indemnified by insurance.

     

    
      	
              6.6

            	
              Sole Right and
      Remedy

            

    

     

    This
Article 6 sets forth
the sole rights and remedies of each Party and its Additional Indemnitees in
connection with (i) the transactions contemplated herein, and (ii) any act,
omission, circumstance or other matter arising out of, resulting from,
attributable to or connected with any Agreement Default made by the other Party,
and such first mentioned Party and its Additional Indemnitees shall have no
further right or remedy (whether legal, equitable, fiduciary or in tort)
whatsoever, against the other Party, or its Affiliates or their respective
directors, officers, servants, agents, advisors or employees.

     

    
      	
              6.7

            	
              Procedure -
      Indemnities

            

    

     

    If either
Party (the "Indemnified
Party") shall receive notice of an action asserting a liability for which
it is indemnified under this Article 6, it shall promptly
notify the Party against whom indemnity is sought (the "Indemnifying
Party").  The failure to notify the Indemnifying Party shall
not relieve the Indemnifying Party from its obligations to provide
indemnification hereunder, except to the extent its defense of the action is
materially prejudiced thereby.  The Indemnifying Party may participate
in the defense of such action and may assume the defense with counsel
satisfactory to the Indemnified Party if the Indemnifying Party shall have
confirmed in writing its obligation to provide indemnification for the liability
asserted in such action.  If the Indemnified Party shall reasonably
conclude that its interests in such action are materially different from those
of the Indemnifying Party or that it may have defenses that are different from
or in addition to those available to the Indemnifying Party, the Indemnified
Party, at its own expense, may use separate counsel to assert such defenses and
otherwise participate in the defense of such action.  If the
Indemnifying Party shall assume the defense with counsel satisfactory to the
Indemnified Party, the Indemnifying Party shall not be liable for any legal
expenses (other than investigation expenses) subsequently incurred by the
Indemnified Party, unless the Indemnified Party shall have employed separate
counsel in accordance with the preceding sentence.

     

    
      	
              6.8

            	
              No
      Limitation

            

    

     

    Closing
of the transactions contemplated herein shall not in any way whatsoever limit,
impact or derogate from the indemnities provided for herein.

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      24 -

              	
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      COPY

              

      

    

    

     

    ARTICLE
7

    POST-CLOSING
OBLIGATIONS

     

    
      	
              7.1

            	
              Post-Closing

            

    

     

    
      	
               
      

            	
              (a)

            	
              Notwithstanding
      anything to the contrary contained in this Agreement, to the extent the
      sale, assignment, transfer or conveyance to Proginet of Beta America’s
      right, title and interest in and to the Beta America Contracts would
      result in a breach of said Beta America Contracts or would require any
      third-party consents which shall not have been obtained prior to the
      sixtieth (60th) day following the Closing Date (after Beta America’s
      commercially reasonable efforts to obtain them), this Agreement shall not
      constitute a sale, assignment, transfer or conveyance
      thereof.  If consents are not obtained from third-parties prior
      to such time, Beta America shall use commercially reasonable efforts to
      cooperate with Proginet in obtaining any commercially reasonable and
      lawful arrangements designed to provide to Proginet the full benefits of
      use of the respective Beta America Contracts and, provided that Proginet
      receives such benefit of use thereof, Proginet shall satisfy all
      contractual obligations, if any, corresponding thereto.  Once
      such third-party consents are obtained, Beta America shall promptly
      assign, transfer, convey and deliver such Beta America Contracts to
      Proginet for no additional consideration.  To the extent that
      any such Beta America Contracts cannot be transferred or the full benefits
      of use of any such Beta America Contracts cannot be provided to Proginet
      following the Closing Date, then (i) Proginet and Beta America shall enter
      into such arrangements for no additional consideration from Proginet
      (including sublicensing, subleasing or subcontracting to the extent
      permitted) to provide Proginet the economic (taking into account tax costs
      and benefits) and operational equivalent of obtaining such consents or
      (ii) for customers based in Europe, the Parties may mutually agree in
      writing to have such agreements governed by the Master Distributor
      Agreement. In such event, any such retained Beta America Contracts shall
      no longer be considered assigned pursuant to this
    Agreement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      anything to the contrary contained in this Agreement, to the extent the
      sale, assignment, transfer or conveyance to Beta America of Proginet’s
      right, title and interest in and to the Proginet Contracts or the
      Secur-Line Contracts would result in a breach of said Proginet Contracts
      or Secur-Line Contracts or would require any third-party consents which
      shall not have been obtained prior to the sixtieth (60th) day following
      the Closing Date (after Proginet’s commercially reasonable efforts to
      obtain them), this Agreement shall not constitute a sale, assignment,
      transfer or conveyance thereof.  If consents are not obtained
      from third-parties prior to such time, Proginet shall use commercially
      reasonable efforts to cooperate with Beta America in obtaining any
      commercially reasonable and lawful arrangements designed to provide to
      Beta America the full benefits of use of the respective Proginet Contracts
      or Secur-Line Contracts and, provided that Beta America receives such
      benefit of use thereof, Beta America shall satisfy all contractual
      obligations, if any, corresponding thereto.  Once such
      third-party consents are obtained, Proginet shall promptly assign,
      transfer, convey and deliver such Proginet Contracts or Secur-Line
      Contracts to Beta America for no additional consideration.  To
      the extent that any such Proginet Contracts or Secur-Line Contracts cannot
      be transferred or the full benefits of use of any such Proginet Contracts
      or Secur-Line Contracts cannot be provided to Beta America following the
      Closing Date, then Beta America and Proginet shall enter into such
      arrangements for no additional consideration from Beta America (including
      sublicensing, subleasing or subcontracting to the extent permitted) to
      provide Beta America the economic (taking into account tax costs and
      benefits) and operational equivalent of obtaining such
      consents.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      25 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (c)

            	
              Each
      Party will use commercially reasonable efforts to obtain consents from
      third-parties where such are required in accordance with the terms of the
      Beta America Contracts, the Proginet Contracts or the Secur-Line
      Contracts.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Upon
      the direction of Beta America, in lieu of assigning any Proginet Contract
      or Secur-Line Contract to Beta America pursuant to Section 2.1, Proginet
      shall assign, unless otherwise prohibited by Applicable Law, such Proginet
      Contract or Secur-Line Contract to one or more Affiliates of Beta America;
      provided, however, that Beta America shall remain subject to the terms and
      conditions set forth in this Agreement, including indemnification for any
      Agreement Default in respect of any such
  assignment.

            

    

     

    
      	
              7.2

            	
              Further
      Assurances

            

    

     

    At
Closing and thereafter, as may be necessary or desirable and without further
consideration, the Parties hereto shall execute, acknowledge and deliver such
other instruments and shall take such other action as may be reasonably
necessary to carry out their respective obligations under this
Agreement.

     

    
      	
              7.3

            	
              Transition
      Services

            

    

     

    
      	
               
      

            	
              (a)

            	
              For
      up to 90 days following the Closing, Beta shall provide to Proginet in
      connection with the transfer of the Beta Canada Assets and Beta America
      Contracts such reasonable transition assistance services as shall be
      reasonably requested by Proginet.  Any out-of-pocket expenses
      incurred by Beta in connection with the foregoing transition assistance
      shall be promptly reimbursed to Beta by Proginet upon presentation of
      supporting documentation.

            

    

     

    
      	
               
      

            	
              (b)

            	
              For
      up to 90 days following the Closing, Proginet shall provide to Beta in
      connection with the transfer of the Proginet Assets, Proginet Contracts
      and Secur-Line Contracts such reasonable transition assistance services as
      shall be reasonably requested by Beta.  Any out-of-pocket
      expenses incurred by Proginet in connection with the foregoing transition
      assistance shall be promptly reimbursed to Proginet by Beta upon
      presentation of supporting
documentation.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
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                REDACTED
      COPY

              

      

    

    

     

    ARTICLE
8

    GOVERNING
LAW AND DISPUTE RESOLUTION

     

    
      	
              8.1

            	
              Governing
      Law

            

    

     

    This
Agreement will be governed by the laws of the United States and the Commonwealth
of Virginia, without giving effect to principles of conflicts of law thereof;
provided, however, that
the Parties agree that the Uniform Computer Information Transactions Act (UCITA)
as adopted by the Commonwealth of Virginia or as otherwise applicable shall not
apply to this Agreement or any of the transactions contemplated
hereby.  In addition, this Agreement shall not be governed by the
United Nations Convention on Contracts for the International Sale of
Goods.

     

    
      	
              8.2

            	
              Dispute
      Resolution

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Parties will make good faith efforts to first resolve internally any
      dispute under this Agreement by escalating it to higher levels of
      management.  A request for arbitration under Section 8.2(b) may not
      be filed until 30 days have elapsed from the initiation of such good faith
      efforts.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Any
      dispute, controversy, or claim arising out of, relating to, involving, or
      having any connection with this Agreement or any of the transactions
      contemplated hereby, including any question regarding the validity,
      interpretation, scope, performance, or enforceability of this dispute
      resolution provision, shall be exclusively and finally settled by binding
      arbitration in accordance with the Commercial Arbitration Rules of the
      American Arbitration Association (“AAA”) and the AAA
      Optional Procedures for Large, Complex Commercial Disputes.  Any
      arbitration will be conducted on an individual, rather than a class-wide,
      basis.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      arbitration will be conducted in Herndon, Virginia unless the Parties
      agree on another location.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      arbitration will be conducted by three arbitrators.  Each Party
      will appoint an arbitrator, obtain its appointee’s acceptance of such
      appointment, and deliver written notification of such appointment and
      acceptance to the other Party within 15 days after the due date of the
      respondent’s answering statement.  The two Party-appointed
      arbitrators will jointly agree upon and appoint a third arbitrator who
      will serve as the chairperson of the arbitral panel.  The
      Party-appointed arbitrators will obtain the chairperson’s acceptance of
      such appointment and notify the Parties in writing of said appointment and
      acceptance within 30 days after their appointment and acceptance as
      Party-appointed arbitrators.  If the two Party-appointed
      arbitrators are unable to agree upon the selection and appointment of the
      chairperson within that time frame, they will so notify the Parties in
      writing.  Upon such notice, one or both of the Parties may
      request in writing that the chairperson be appointed by AAA in accordance
      with the AAA Rules.  The AAA will notify the Parties in writing
      of the appointment and acceptance of the chairperson within 21 days after
      receiving such request.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
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                REDACTED
      COPY

              

      

    

    

     

    
      	
               
      

            	
              (e)

            	
              The
      Parties will be entitled to engage in reasonable discovery, including
      requests for production of relevant non-privileged
      documents.  Depositions and interrogatories may be ordered by
      the arbitral panel upon a showing of need.  It is the Parties’
      intent that the discovery proceedings be conducted in a cost-effective
      manner.

            

    

     

    
      	
               
      

            	
              (f)

            	
              All
      decisions, rulings, and awards of the arbitral panel will be made pursuant
      to majority vote of the three arbitrators.  The award will be in
      accordance with the applicable law, will be in writing, and will state the
      reasons upon which it is based.  The arbitrators will have no
      power to modify or abridge the terms of this Agreement.  The
      award of the arbitrators will be final, and judgment on the award may be
      entered by any court having jurisdiction to do
  so.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Costs
      incurred in the arbitration proceeding, including attorneys’ fees and
      expenses, will be borne in the manner determined by the arbitral
      panel.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Nothing
      in this Agreement will prevent the Parties, prior to the formation of the
      arbitral panel, from applying to a court of competent jurisdiction for
      provisional or interim measures or injunctive relief as may be necessary
      to safeguard the property or rights that are the subject matter of the
      arbitration.  Once the arbitral panel is in place, it will have
      exclusive jurisdiction to hear applications for such relief, except that
      any interim measures or injunctive relief ordered by the arbitral panel
      may be immediately and specifically enforced by a court of competent
      jurisdiction.

            

    

     

    
      	
               
      

            	
              (i)

            	
              This
      Section 8.2 will
      not apply to any claim arising from any patent or registered
      trademark.  Such claims will not be subject to arbitration and
      instead will be subject to judicial resolution.  In addition,
      any issue regarding the enforceability of the prohibition against
      class-wide arbitration will be decided by a court of competent
      jurisdiction and not by an
arbitrator.

            

    

     

    
      	
               
      

            	
              (j)

            	
              Unless
      otherwise agreed by the Parties or required by law, the Parties, the
      arbitrators, and AAA will maintain the confidentiality of all documents,
      communications, proceedings, and awards provided, produced or exchanged
      pursuant to an arbitration conducted under this Section
      8.2.

            

    

     

    
      	
              8.3

            	
              Consent to
      Jurisdiction; Waiver of Jury
Trial

            

    

     

    Subject
to Section 8.2, each
Party irrevocably submits to the exclusive jurisdiction of the United States
District Court for the Eastern District of Virginia, or any court of the
Commonwealth of Virginia in any action or proceeding arising out of or relating
to this Agreement or any of the transactions contemplated hereby, and agrees
that any such action or proceeding will be brought only in such courts;
provided, however, that such consent to jurisdiction is solely for the purpose
referred to in this Section and will not be deemed to be a general submission to
the jurisdiction of such courts other than for such purpose.  Subject
to Section 8.2, each
Party irrevocably waives, to the fullest extent permitted by law, any objection
that it may now or hereafter have to the laying of the venue of any such action
or proceeding brought in such courts and any claim that any such action or
proceeding brought in such courts has been brought in an inconvenient
forum.  Subject to Section 8.2, nothing
contained herein will preclude a Party against which an action or proceeding is
brought as aforesaid in any court of the Commonwealth of Virginia from seeking
to remove such action or proceeding, pursuant to applicable Federal law, to the
United States District Court for the Eastern District of
Virginia.  Subject to Section 8.2, nothing
contained herein will preclude a Party from enforcing an order in the courts of
another jurisdiction.  Each Party waives any right to a jury trial in
any action or proceeding arising out of or related to this
Agreement.

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
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      COPY

              

      

    

    

     

    ARTICLE
9

    NOTICES

     

    
      	
              9.1

            	
              Addresses for
      Service

            

    

     

    All
notices and other communications given in connection with this Agreement shall
be in writing and may be given by delivering them or by sending them by
facsimile or mail to the Parties at the following addresses:

     

    
      
        
          	
                  Beta
      America:

                	
                  Beta
      Systems Software of North America Inc.

                
	 
      	
                  2201
      Cooperative Way, 3rd Floor

                
	 
      	
                  Herndon,
      VA 20171

                
	 
      	
                  Attention:  President

                
	 
      	
                  Fax:     (703)
      889-1241

                
	 
      	 
      
	
                  Beta
      Canada:

                	
                  Beta
      Systems Software of Canada Ltd.

                
	 
      	
                  736
      8th
      Avenue SW, Suite 600

                
	 
      	
                  Calgary,
      AB, Canada

                
	 
      	
                  Attention:  President

                
	 
      	
                  Fax:     (403)
      266-6767

                
	 	 
	
                  Proginet:

                	
                  Proginet
      Corporation

                
	 
      	
                  200
      Garden City Plaza

                
	 
      	
                  Garden
      City, NY, USA 11530

                
	 
      	
                  Attention:  President

                
	 
      	
                  Fax:     (516)
      535-3601

                

        

      

       

    

    
      	
              9.2

            	
              Service of
      Notice

            

    

     

    Any
notice shall:

     

    
      	
               
      

            	
              (a)

            	
              if
      delivered, be deemed to have been given or made at the time of delivery;
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      sent by facsimile, be deemed to have been given or made on the Business
      Day following the day on which it was sent;
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              if
      sent by mail, by mailing the same prepaid post in a properly addressed
      envelope to the Party at its address for service hereunder, be deemed to
      have been given or made on the fifth (5th)
      Business Day following the date on which it was
  mailed.

            

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      29 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
              9.3

            	
              Change of Address for
      Service

            

    

     

    Either of
the Parties may from time to time change its address for service herein by
giving written notice to the other Party in accordance with this
Agreement.

     

    ARTICLE
10

    MISCELLANEOUS

     

    
      	
              10.1

            	
              Supersedes Previous
      Agreements; Amendment

            

    

     

    This
Agreement shall supersede and replace any and all prior agreements,
correspondence and documentation between the Parties relating to the
transactions contemplated hereby and may be amended only by written instrument
signed by all Parties.

     

    
      	
              10.2

            	
              Entire
      Agreement

            

    

     

    This
Agreement comprises the entire agreement between the Parties relating to the
transactions contemplated hereby.  There is no representation,
warranty or collateral agreement relating to the asset exchange, except as
described herein, and there are no implied terms hereunder, statutory or
otherwise.

     

    
      	
              10.3

            	
              Assignment

            

    

     

    Except as
provided in the following sentence, no Party may assign this Agreement or any
part hereof or any benefit or interest herein without the prior written consent
of each other Party.  Upon 10 business days’ notice to the other
Parties (or, such shorter period as may be practicable if confidentiality or
other concerns prevent the giving of such advance notice), a Party may assign
this Agreement (and the rights and obligations hereunder) to (i) any Affiliate
of such Party that expressly assumes the assigning Party’s obligations and
responsibilities under this Agreement (provided that the assigning Party shall
remain fully liable for, and not be relieved from, the full performance of all
obligations under this Agreement), (ii) any third party that acquires all or
substantially all of the assigning Party’s assets, or (iii) or the assigning
Party’s successor by way of merger or acquisition.  Any attempted
assignment that does not comply with the terms of this Section 10.3 shall be null
and void.  A transaction that does not cause this Agreement, or its
rights or obligations, to be transferred to a different entity shall not be
deemed an assignment.

     

    
      	
              10.4

            	
              Time of the
      Essence

            

    

     

    Time
shall in all respects be of the essence in this Agreement.

     

    
      	
              10.5

            	
              Enurement

            

    

     

    This
Agreement shall be binding upon and shall enure to the benefit of the Parties
and their respective successors, receivers, receiver-managers, trustees and
permitted assigns.

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                -
      30 -

              	
                REDACTED
      COPY

              

      

    

    

     

    
      	
              10.6

            	
              Counterpart
      Execution

            

    

     

    This
Agreement may be executed in counterparts and all executed and delivered
counterparts together shall constitute a fully executed agreement.

     

    
      	
              10.7

            	
              Public Securities
      Filings

            

    

     

    The
Parties acknowledge that this Agreement, or portions thereof, and schedules
thereto, and descriptions of any of the foregoing, may be required under
applicable law to be disclosed in required public disclosure documents, or
exhibits thereto, of Proginet filed with the United States Securities and
Exchange Commission (the “SEC”) or any securities
exchange on which its securities are listed for trading.  Prior to
such disclosure, and subject to the next sentence, Proginet will inform Beta and
will use commercially reasonable efforts to seek approval from the SEC or other
applicable regulatory authority for the confidential treatment of certain
confidential information identified by the Parties.  Prior to such
disclosure, Proginet shall request redaction of such portions of the Agreement
or disclosure that Beta reasonably requests to be redacted, unless, in
Proginet’s judgment based on the advice of counsel, Proginet concludes that such
redaction request is inconsistent with Proginet’s obligations under applicable
law.

     

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    REDACTED
COPY

    

     

    IN
WITNESS WHEREOF the Parties have executed this Agreement as of the date set
forth upon each signature block below.

     

    
      	
              BETA
      SYSTEMS SOFTWARE OF CANADA LTD.

               

              Per:                                                                

              Name:  Kamyar
      Niroumand

              Title:    Member of
      Board of Directors

              Date:    October 31,
      2008

               

              Per:                                                                

              Name:  Harald
      Podzuweit

              Title:    Member of
      Board of Directors

              Date:    October 31,
      2008

               

            	
              PROGINET
      CORPORATION

               

              Per:                                                                    

              Name:  Sandy
      Weil

              Title:    President
      & CEO

              Date:    October
      31, 2008

               

               

            
	
              BETA
      SYSTEMS SOFTWARE OF NORTH AMERICA INC.

               

              Per:                                                                

              Name:  Kamyar
      Niroumand

              Title:    Member of
      Board of Directors

              Date:    October 31,
      2008

               

              Per:                                                                

              Name:  Harald
      Podzuweit

              Title:    Member of
      Board of Directors

              Date:    October 31,
      2008

               

            	 
      

    

    

    

    

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    REDACTED
COPY

    

     

    DISCLOSURE
SCHEDULES TO

     

    ASSET
EXCHANGE AGREEMENT

     

    by
and between

     

    BETA
SYSTEMS SOFTWARE OF NORTH AMERICA, INC.,

     

    BETA
SYSTEMS SOFTWARE OF CANADA LTD.,

     

    and

     

    PROGINET
CORPORATION

     

    Dated
effective as of October 1, 2008

     

    The attached constitutes the Schedules
referred to in the Asset Exchange Agreement, dated effective as of October 1,
2008 (the “Agreement”)
by and between Beta Systems Software of North America, Inc., a Delaware
corporation (“Beta
America”) and Beta Systems Software of Canada LTD, a body corporate
(“Beta
Canada”), and Proginet Corporation, a Delaware corporation (“Proginet”).  Capitalized
terms used in these Schedules without definition have the respective meanings
assigned to them in the Agreement.  All references to section numbers
contained in these Schedules refer to sections of the Agreement, unless the
context otherwise requires.

     

    These Schedules are incorporated into
the Agreement and are hereby made a part of the Agreement as if set out in full
in the Agreement.  For purposes of the representations and warranties
of any Party contained in the Agreement, disclosure in any of the Schedules
delivered by such Party of any facts or circumstances shall be deemed to be
adequate disclosure of such facts or circumstances with respect to all other
representations or warranties made by the Party, whether or not such disclosure
specifically identifies or purports to respond to (whether by specific
cross-reference or otherwise) one or more of such other representations and
warranties, if a reasonable person would be reasonably likely to conclude that a
matter disclosed on any Schedule is responsive to the subject matter of other
representations and warranties.  Matters reflected in the Schedules
are not necessarily limited to matters required by the Agreement to be reflected
in the Schedules.  To the extent any matter reflected in the Schedules
is not required by the Agreement to be reflected herein, such disclosure shall
not be deemed to enlarge or enhance any of the representations or warranties of
the party providing the Schedule pursuant to the Agreement, or otherwise alter
in any way the terms of the Agreement.  The inclusion of any
information in any of the Schedules or other documents delivered by the Parties
pursuant to the Agreement shall not be deemed to be an admission or evidence of
the materiality of such item, nor shall it establish a standard of materiality
for any purpose whatsoever.

     

    

     

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 2
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    Schedule
5.2(a)

     

    Beta
Canada Intellectual Property

     

    5.2(a)(i) - Registrations
and Applications for Registration

     

    “Harbor”
is only trademark for Beta Canada IP.  Trademark form from USPTO
website as follows:

     

     

    Typed Drawing

     

    
    

    
      
        	
                Word
      Mark

              	 	
                HARBOR

              
	
                Goods
      and Services

              	 	
                IC
      009. US 038. G & S: computer programs for automatic workstation
      backup, file/disk recovery, and workstation and network security, and user
      manuals sold therewith. FIRST USE: 19911217. FIRST USE IN COMMERCE:
      19920302

              
	
                Mark
      Drawing Code

              	 	
                (1)
      TYPED DRAWING

              
	
                Serial
      Number

              	 	
                74288557

              
	
                Filing
      Date

              	 	
                June
      23, 1992

              
	
                Current
      Filing Basis

              	 	
                1A

              
	
                Original
      Filing Basis

              	 	
                1A

              
	
                Published
      for Opposition

              	 	
                August
      3, 1993

              
	
                Registration
      Number

              	 	
                1800502

              
	
                Registration
      Date

              	 	
                October
      26, 1993

              
	
                Owner

              	 	
                (REGISTRANT)
      New Era Systems
      Services Ltd. CORPORATION CANADA 710 Esso Plaza East Tower 425 First
      Street SW Calgary, Alberta CANADA T2P 3L8

                 

                (LAST
      LISTED OWNER) BETA
      SYSTEMS SOFTWARE AG CORPORATION BY ASSIGNMENT, BY MERGER, BY
      ASSIGNMENT, BY ASSIGNMENT, BY ASSIGNMENT, BY ASSIGNMENT FED REP GERMANY
      840 SEVENTH AVENUE S.W SUITE 1900 CALGARY, ALBERTA CANADA T2P
      3G2

              
	
                Assignment
      Recorded

              	 	
                ASSIGNMENT
      RECORDED

              
	
                Attorney
      of Record

              	 	
                Jay
      F. Moldovanyi

              
	
                Type
      of Mark

              	 	
                TRADEMARK

              
	
                Register

              	 	
                PRINCIPAL

              
	
                Affidavit
      Text

              	 	
                SECT
      15. SECT 8 (6-YR). SECTION 8(10-YR) 20030527.

              
	
                Renewal

              	 	
                1ST
      RENEWAL 20030527

              
	
                Live/Dead
      Indicator

              	 	
                LIVE

              

      

    

    

    Full
listing is at:

    http://tess2.uspto.gov/bin/showfield?f=doc&state=jacnak.2.18

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 
      	
                - 3
      -

              	
                REDACTED
      COPY

              

      

    

    

     

     5.2(a)(ii) - Ownership
[***
omitted 2 pages]

     

    5.2(a)(iv) - Employees Who
Have Not Agreed to Maintain Confidentiality

     

    None

     

    5.2(a)(v) - Licenses Granted
to Third Parties [***]

     

    5.2(a)(vii) - Known
Infringement

     

    None

     

    5.2(a)(viii) - Required
Consents and Approvals

     

    None

     

    5.2(a)(ix) - Employees With
No Executed Nondisclosure and Assignment of Rights

     

    None

     

    5.2(a)(x) - Use of Third
Party Components [***omitted
2 pages]

     

    

     

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 4
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    Schedule
5.3(b)

     

    Beta
America Consents and Approvals [***omitted]

     

    

     

    

     

    

     

    

     

    

     

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 5
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    Schedule
5.3(d)

     

    Beta
America Customers and Distributors [***- omitted 2 pages]

     

    

     

    

     

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 6
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    Schedule
5.4(a)

     

    Proginet
Intellectual Property

     

    5.4(a)(i) - Registrations
and Applications for Registration

     

    SecurPass

     

    SecurAccess

     

    SecurForce

     

    5.4(a)(ii) – Ownership
[***]

     

    5.4(a)(iv) - Employees Who
Have Not Agreed to Maintain Confidentiality

     

    None

     

    5.4(a)(v) - Licenses Granted
to Third Parties [***]

     

    5.4(a)(vii) - Known
Infringement

     

    None

     

    5.4(a)(viii) - Required
Consents and Approvals

     

    None

     

    5.4(a)(ix) - Employees With
No Executed Nondisclosure and Assignment of Rights

     

    None

     

    5.4(a)(x) - Use of Third
Party Components [***]

     

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 7
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    Schedule
5.4(d)

     

    Proginet
Consents and Approvals

     

    The
Proginet standard license agreement does not require customer consent in order
to be transferred.  All customers licensed directly by Proginet
utilize the standard license agreement with the following
exceptions:

     

    1.           [***]

     

    Proginet’s
distributor agreements mandate that distributors follow the constraints and
requirements on the standard Proginet SLA, however they are free to utilize
their own contracts.  Some of these distributor originated contracts
may require formal assignment to Beta:

     

    

     

    

     

    

     

    

    
      
        
          [***]
Confidential Treatment Requested

          Confidential
portion omitted and filed separately with the Commission

           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      
        	 
      	
                - 8
      -

              	
                REDACTED
      COPY

              

      

    

    

     

    Schedule
5.4(f)

     

    Proginet
Customers and Distributors [*** omitted 3 pages]

     

    

     

     

     

    

      [***]
Confidential Treatment Requested

    

    
      Confidential
portion omitted and filed separately with the Commission

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]