Document:

exv10w16

 

Exhibit 10.16

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into effective as of June 1, 2004 between
K12 INC., a Delaware corporation (“Company”), and HOWARD D. POLSKY (“Executive”), on the following
terms and conditions:

SECTION 1. EMPLOYMENT.

     1.1 Responsibilities. Company agrees to employ Executive on the terms and
conditions set forth in this Agreement and Executive accepts such employment. Executive shall
serve as Senior Vice President and General Counsel of Company. Executive shall report to the
President/Chief Operating Officer of Company. If a Chief Executive Officer of Company is
appointed by the Board of Directors of Company, then at the discretion of the Board of
Directors or the Executive Committee of the Board of Directors Executive shall report to the Chief
Executive Officer of Company. Executive shall perform such duties and responsibilities
commensurate with Executive’s position as may be reasonably requested by Company from time
to time. Executive shall carry out all of his employment responsibilities in an efficient,
trustworthy, effective and businesslike manner.

     1.2 Place of Employment. Executive’s place of employment will be at the
Company’s headquarters, currently located in McLean, Virginia. Executive recognizes that he
will be required to travel in the ordinary course of performing his responsibilities.

     1.3 Exclusive Employment. Executive shall devote Executive’s full business
time to Executive’s responsibilities under this Agreement. Without limiting the generality of
the foregoing, Executive shall not render services of a business, professional or commercial
nature to any other person, firm or corporation, whether for compensation or otherwise, except that
Executive may engage in civic, philanthropic and community service activities so long as such
activities do not interfere with Executive’s ability to comply with this Agreement and are not
otherwise in conflict with the policies or interests of Company.

SECTION 2. COMPENSATION AND OTHER BENEFITS.

     2.1 Compensation/Deductions. In consideration of Executive’s employment,
Executive shall receive from Company while Executive is employed with Company the compensation and
benefits described in this Section 2 as full and complete satisfaction of all of Company’s
obligations to Executive arising from Executive’s employment. The compensation and employee
benefits made available to Executive pursuant to this Agreement may be changed only by the written
agreement of the parties. Executive authorizes Company to deduct and withhold from all compensation
to be paid to Executive any and all sums required to be deducted or withheld by Company (including,
but not limited to, income tax withholding and payroll taxes) pursuant to the provisions of all
applicable laws, regulations, rulings or ordinances of the United States and any other applicable
jurisdiction.

 

 

     2.2 Compensation. Executive shall receive, as a fixed base salary for
the full time employment referred to in Section 1 hereof and all other obligations of
Executive hereunder, compensation at the rate of One Hundred Seventy-Five Thousand Dollars
($175,000) per year payable not less frequently than semi-monthly in accordance with
Company’s standard payroll practices as in effect from time to time (“Compensation”). Company
agrees to review Executive’s Compensation for a potential increase in the sole and absolute discretion of
Company based upon performance of Executive and Company after Executive has been employed with Company for six months, and annually thereafter.

     2.3 Bonus. Executive shall be eligible to receive a cash bonus each year
in
accordance with Company bonus policy in effect from time to time. Depending on
the
performance of Executive and Company, the amount of bonus may range up to twenty
five
percent (25%) of Executive’s Compensation. The amount of bonus will be
determined in the
sole and absolute discretion of Company’s Compensation Committee and/or Board of Directors.

     2.4 Stock Options. Concurrently with the execution of this Agreement,
Company and Executive are entering into a Stock Option Agreement pursuant to which the
Company is granting to Executive (subject to certain vesting and other conditions) stock
options
to purchase up to 88,000 shares of Common Stock of the Company at an exercise price of $1.34
per share.

     2.5 Expense Reimbursement. Company shall reimburse Executive for
reasonable and necessary out-of-pocket business expenses incurred by
Executive in the
performance of Executive’s responsibilities hereunder and within the
operating budget of
Company, subject to Company’s business expense reimbursement policies in effect from time to
time, including submission to Company of a written accounting of such expenses, which
accounting shall include an itemized list of the expenses incurred, the business purposes for
which such expenses were incurred, and appropriate receipts and supporting documentation.
Reimbursable expenses shall include Executive’s state bar dues and mandatory CLE expenses
required by the State of Virginia for in-house corporate counsel.

     2.6 Vacation. Executive shall be entitled to the maximum allowed paid
vacation in accordance with Company vacation policy in effect from time to time for senior
executives, which is currently twenty (20) days per calendar year. Executive’s vacation shall
be planned consistent with Executive’s duties and obligations hereunder.

     2.7 Other Benefits. Executive shall be entitled to participate in all group
employment benefits that are offered by Company to Company’s senior executives in general
from time to time, subject to the terms and conditions of such benefit plans including any eligibility requirements.

SECTION 3. AT WILL EMPLOYMENT.

     3.1 At Will Employment. Executive’s employment with Company shall be on
an “at will” basis and may be terminated by either party at any time by notice to the other party.
Except as otherwise provided in Section 3.2 below, upon termination of employment with

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Company, Executive shall not be entitled to receive any compensation, payments or
benefits of
any nature whatsoever, except that Company shall pay to Executive any unpaid
Compensation to the extent earned and payable as of the date of such termination.

     3.2 Severance. In the event that Executive resigns for “Good Reason”
or
Company terminates Executive’s employment with Company for other than “Cause,”
death or
disability, Company shall (a) continue to pay to Executive, as severance pay,
Executive’s
Compensation in accordance with Section 2.2 for the Severance Period (as defined
below), and
(b) if permitted by the terms of Company’s group medical and dental insurance
plans, continue
to provide Executive coverage thereunder at no additional cost to Executive for
the Severance
Period or until Executive is eligible for coverage with a new employer if earlier,
or if not
permitted by the terms of Company’s group medical and dental plans, reimburse
Executive the
cost of premiums if he elects to continue coverage under such plans as permitted
by COBRA for
the Severance Period or until Executive is eligible for coverage with a new
employer if earlier.
Executive shall have the right to continue coverage under the Company’s group
medical and
dental plans thereafter at his option and expense to the extent COBRA may continue
to apply.
As used herein, the “Severance Period” means the period commencing on the date of
termination
of employment and ending on the earlier of: (a) one hundred eighty (180) days
thereafter if
Executive has been employed by Company for three years or less, or (b) three hundred
sixty-five (365) days if Executive has been employed by Company for more than three
years. Executive agrees to promptly notify Company when Executive has obtained new
employment or another engagement during the Severance Period and any compensation
received by Executive from any such employment and/or engagement during the Severance
Period shall reduce on a dollar-for-dollar basis the amount of Compensation otherwise
payable by Company to Executive during the Severance Period. For purposes of this
Agreement, a resignation shall be for “Good Reason” if Executive resigns because
Company materially reduces Executive’s Compensation or assigns Executive a materially
different title and responsibilities such that Executive has been demoted, or Company
otherwise materially breaches this Agreement. For purposes of this Agreement, a
termination shall be for “Cause” if Executive shall: (i) commit an act of fraud,
dishonesty, embezzlement or misappropriation involving Company, (ii) be convicted of,
or enter a plea of guilty or no contest to, any crime involving moral turpitude or
dishonesty, (iii) commit an act, or fail to commit an act, involving Company which
amounts to, or with the passage of time would amount to, willful misconduct, gross
negligence or a breach of this Agreement, (iv) willfully fail or habitually neglect to
perform Executive’s responsibilities under this Agreement and such failure or neglect
is not cured within fifteen (15) days after written notice to Executive specifying such
failure or neglect, (v) engage in any illegal or unprofessional conduct which may
adversely affect the reputation of Company and/or its relationship with its employees,
customers, or suppliers, or (vi) no longer be authorized to practice law in the State
of Virginia pursuant to the in-house corporate counsel rules.

SECTION 4. COVENANTS OF EXECUTIVE.

     4.1 Confidential Information. Executive acknowledges that
Executive’s services to be rendered to Company will place Executive in a position
of confidence and trust with Company and will allow Executive access to
Confidential Information (as defined below). Executive agrees that at all times
during and after the term of Executive’s employment

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hereunder, Executive will maintain the Confidential Information in strictest confidence and
will not, unless required to do so in the ordinary course of Company’s operations, disclose to any
person, or use for Executive’s own personal use or financial gain, whether individually or on
behalf of another person, any Confidential Information. Without limiting the generality of the
foregoing, Executive acknowledges that Company’s agreements and/or relationships with other persons
may impose obligations or restrictions regarding the confidential nature of work or information
relating to such persons, and Executive agrees to be bound by all such obligations and
restrictions. As used herein, “Confidential Information” shall mean information and compilations of
information relating to Company and/or its business including, but not limited to, information
regarding any trade secrets, proprietary knowledge, operating procedures, finances, financial
condition, ownership, organization, employees, customers, clients, suppliers, distributors, agents,
and other personnel, business activities, budgets, strategic or financial plans, objectives,
marketing plans, products, services, price and price lists, operating and training materials, data
bases and analyses and all other documents relating thereto or strategies of Company;
provided, however, that Confidential Information shall not include information that
is or becomes generally known to the public through no unauthorized act or omission of Executive.

     4.2 Intellectual Property Rights. Executive shall assign and transfer to
Company, and does hereby assign and transfer to Company, all right, title and interest in and
to
all Company IP (as defined below). All Company IP is and shall be the sole property of
Company. Executive shall disclose all Company IP promptly in writing to Company. Upon the
request of Company, Executive shall promptly execute a written assignment of title to Company
for all Company IP, and Executive will preserve all such Company IP as Confidential
Information. As used herein, “Company IP” shall mean all inventions and intellectual property
rights (including, but not limited to, designs, discoveries, inventions, improvements, ideas,
devices, techniques, processes, writings, trade secrets, trademarks, patents, copyrights and
all
other intellectual property rights including, without limitation, notes, records, reports,
software,
plans, memoranda and other tangible information relating to such intellectual property,
whether
or not subject to protection under applicable laws) that Executive solely or jointly with
others
conceives, makes, acquires, suggests or participates in at any time during Executive’s
employment with Company and that relate to the actual or demonstrably anticipated business,
products, processes, work, operations, research and development or other activities of
Company.

     4.3 Non-interference. During the Restricted Period (as defined below),
Executive shall not directly or indirectly, individually, or together with, or through any
other
person: (i) in any manner discourage any person which is or has been a customer or supplier of
Company from continuing its relationship with Company, (ii) approach, counsel, or attempt to
induce any person who is then in the employ of or an independent contractor of Company, to
leave their employment or engagement, or employ, engage or attempt to employ or engage any
such person, or (iii) aid or counsel any other person to do any of the above. As used herein,
the
“Restricted Period” means the period beginning on the date of this Agreement and ending one
(1) year after Executive is no longer receiving any compensation from Company (including any
severance pay).

     4.4
Exclusivity. Executive shall be exclusive to Company with respect to
Company’s principal activities and business, and during the period beginning on the date of
this

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Agreement and ending when Executive is no longer receiving any compensation from Company
(including any severance pay) and, if applicable, during any “Additional Period” (as defined
below), Executive shall not directly or indirectly on Executive’s own behalf or on behalf of any
other person: (a) engage in; (b) own or control any interest in (except as a passive investor of
less than 1 % of the publicly traded stock of a publicly held company); (c) act as a director,
officer, manager, employee, trustee, agent, partner, joint venturer, participant, consultant of or
be obligated to, or be connected in any advisory, business or ownership capacity with; (d) lend
credit or money for the purpose of the establishing or operating; or (e) allow Executive’s name or
reputation to be used by or in, any business, venture, activity or organization (including any
non-profit organization) whose principal purposes are similar to or competitive with Company or it
business. As used herein, the “Additional Period” shall be the period beginning on the date
Executive’s employment is terminated by the Company for Cause or by Executive without Good Reason
and ending one (1) year thereafter.

     4.5 Return of Records, Equipment and Confidential Information. Upon the
earlier of termination of Executive’s employment hereunder or request by Company, Executive
shall promptly return to Company: (i) all Confidential Information and all documents, records,
procedures, books, notebooks, and any other documentation in any form whatsoever (including,
but not limited to, written, audio, video or electronic) containing any information pertaining
to
Company which includes Confidential Information, including any and all copies of such
documentation then in Executive’s possession or control regardless of whether such
documentation was prepared or compiled by Executive, Company, other employees of Company,
representatives, agents, or independent contractors, and (ii) all equipment or tangible
personal
property entrusted to Executive by Company. Executive will not retain any original, copy,
description, document, data base or other form of media that contains or relates to any
Confidential Information whether produced by Executive or otherwise. Without limiting the
generality of the foregoing, Executive shall permanently delete all Confidential Information
from
all computers, disks, CD-ROMS, tapes, and other media owned or used by or accessible to
Executive, other than from any of the foregoing owned, used or controlled by Company.
Executive acknowledges that all Confidential Information and all such documentation, copies of
such documentation, equipment, and tangible personal property are and shall at all times
remain
the sole and exclusive property of Company.

     4.6
Post-Employment Cooperation. Executive agrees that following
Executive’s termination of employment with Company, Executive shall cooperate and assist
Company at Company’s expense in any dispute, controversy, or litigation in which Company
may be involved and with respect to which Executive obtained knowledge while employed by
Company or any of its affiliates, successors, or assigns, including, but not limited to,
Executive’s
participation in any court or arbitration proceedings, giving of testimony, signing of
affidavits, or
such other personal cooperation as counsel for Company shall reasonably request.

SECTION 5. REPRESENTATIONS BY EXECUTIVE. Executive represents and warrants that:

     (a) Executive is free to enter into and perform each of the terms and conditions
of this Agreement. Executive is not subject to any agreement, judgment, order or

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restriction that would be violated by Executive being employed by Company or that in any way
restricts the services that may be rendered by Executive for Company. Executive’s execution of this
Agreement and performance of Executive’s obligations under this Agreement does not and will not
violate or breach any other agreement between Executive and any other person or entity.

     (b) Executive has carefully considered the nature and extent of the restrictions
and covenants in this Agreement and Executive agrees that they will not prevent Executive from
earning a livelihood after employment with Company and that they are fair, reasonable and
necessary to protect and maintain the proprietary interests, goodwill and other legitimate
business interests of Company in view of the following facts: (i) Executive will hold a
position
of confidence and trust with Company as a result of Executive’s employment with Company,
access to confidential financial and other information, and relationship with the customers,
suppliers and other employees of Company, (ii) it would be impossible for Executive to be
employed or engaged in business similar to Company’s business without inevitably using
Company’s proprietary information and trade secrets, and (iii) Executive has broad skills that
will permit gainful employment in many areas and businesses outside the scope of Company’s
business.

     (c) Executive acknowledges that but for the above representations and
warranties of Executive, Company would not employ Executive or enter into this Agreement.

SECTION 6 NOTICES.

     All notices, requests, demands or other communications hereunder shall be deemed to have been
duly given when delivered, addressed as follows (or at such other address as the addressed party
may have substituted by notice pursuant to this Section 6):

	 	 	 	 	 
	 
	 	If to Executive:	 	At Executive’s address as it appears

	 
	 	 	 	in the records of Company
	 
	 	 	 	 
	 
	 	If to Company:	 	Kl2 INC.

	 
	 	 	 	8000 Westpark Drive, Suite 500

	 
	 	 	 	McLean, Virginia 22102

	 
	 	 	 	Attention: President and Chief Operating Officer
	 
	 	 	 	 
	 
	 	 	 	with a copy (not itself

	 
	 	 	 	constituting notice) to:
	 
	 	 	 	 
	 
	 	 	 	Maron & Sandler 

	 
	 	 	 	1250 Fourth Street, Suite 550 

	 
	 	 	 	 Santa Monica, California 90401

	 
	 	 	 	 Attn: David S. Kyman, Esq.

	 
	 	 	 	Fax: (310) 570-4901

SECTION 7. MISCELLANEOUS.

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     7.1 Entire Agreement. This Agreement embodies the entire representations,
warranties, covenants and agreements in relation to the subject matter hereof. No other
representations, warranties, covenants, understandings or agreements in relation hereto exist
between the parties except as otherwise expressly provided herein.

     7.2
Amendment. This Agreement may not be amended except by an
instrument in writing duly executed by the parties hereto.

     7.3 Applicable Law. This Agreement has been made and executed under, and
will be construed and interpreted in accordance with, the laws of the State of Delaware
excluding
conflict of law principles.

     7.4 Provisions Severable. Every provision of this Agreement is intended to be
severable from every other provision of this Agreement. If any provision of this Agreement is
held to be void or unenforceable, in whole or in part, or unreasonable or excessive in scope
or
duration with the result that such provision (or portion thereof) as drafted is void or
unenforceable, such provision shall be deemed to be reformed to the minimum extent necessary
so that such provision as reformed may and shall be legally enforceable. If any provision of
this
Agreement is held to be void or unenforceable, in whole or in part, and cannot be reformed and
made enforceable as provided in the immediately preceding sentence, the remaining provisions
will remain in full force and effect.

     7.5 Non-Waiver of Rights and Breaches. Any waiver by a party of any breach
of any provision of this Agreement will not be deemed to be a waiver of any subsequent breach
of that provision, or of any breach of any other provision of this Agreement. Except as
otherwise
provided in Section 7.6 below, no failure or delay in exercising any right, power, or
privilege
granted to a party under any provision of this Agreement will be deemed a waiver of that or
any
other right, power, or privilege. No single or partial exercise of any right, power, or
privilege
granted to a party under any provision of this Agreement will preclude any other or further
exercise of that or any other right, power, or privilege.

     7.6
Expiration of Claims. All claims that any party has against the other must
be presented in writing within one year of the date the claiming party knew or should have
known of the facts giving rise to the claim, or, with respect to claims related to termination
of
Executive’s employment, within one year of the date of termination of employment. Any claim
not brought within said time period shall be waived and forever barred unless the party
against
whom such claim is made agrees to waive such time period.

     7.7
Remedies. Executive acknowledges that (i) it would be difficult to
calculate damages to Company from any breach of Executive’s obligations under this
Agreement, (ii) that injury to Company from any such breach would be irreparable and
impracticable to measure, and (iii) that the remedy at law for any breach or threatened breach
of
this Agreement would therefore be an inadequate remedy and, accordingly, Company shall, in
addition to all other available remedies (including without limitation seeking such damages as
it
can show it has sustained by reason of such breach and/or the exercise of all other rights and

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remedies it has under this Agreement or at law or in equity), be entitled to specific
performance, injunctive and other similar equitable remedies without posting bond.

     7.8 Interpretation of Agreement. Each of the parties has had the opportunity
to be represented by counsel in the negotiation and preparation of this Agreement. The parties
agree that this Agreement is to be construed as jointly drafted. Accordingly, this Agreement
will
be construed according to the fair meaning of its language, and the rule of construction that
ambiguities are to be resolved against the drafting party will not be employed in the
interpretation of this Agreement.

     7.9 Survival of Provisions. The provisions of Sections 3.2, 4, 5, 6 and 7 of
this Agreement shall survive any termination of Executive’s employment in accordance with
their respective terms.

     7.10 Assignment. This Agreement is binding upon and inures to the benefit of
the parties and their respective heirs, executors, administrators, personal representatives,
successors, and permitted assigns. Company may assign its rights or delegate its duties under
this Agreement at any time and from time to time. The parties acknowledge that this Agreement
is personal to Executive and that the availability of Executive to perform services and the
covenants provided by Executive hereunder have been a material consideration for Company to
enter into this Agreement. Accordingly, Executive may not assign any of Executive’s rights or
delegate any of Executive’s duties under this Agreement, either voluntarily or by operation of
law, without the prior written consent of Company, which may be given or withheld by
Company in its sole and absolute discretion.

     7.11 Gender and Number. Concerning the words used in this Agreement, the
singular form shall include the plural form, the masculine gender shall include the feminine
or
neuter gender, and vice versa, as the context requires, and the word “person” shall include
any
natural person, partnership, corporation, limited liability company, association, trust,
estate or
other legal entity.

     7.12
Headings. The headings of the Sections and Paragraphs of this
Agreement are inserted for ease of reference only, and will have no effect in the construction or
interpretation of this Agreement.

     7.13 Counterparts. This Agreement and any amendment or supplement to this
Agreement may be executed in two or more counterparts, each of which will constitute an
original but all of which will together constitute a single instrument. Transmission by
facsimile
of an executed counterpart signature page hereof by a party hereto shall constitute due
execution
and delivery of this Agreement by such party.

     7.14
Arbitration. Any disputes arising under this Agreement or the
interpretation or applicability of any provision hereof shall be subject to and resolved pursuant
to the K12, Inc. Agreement to Arbitrate which has been entered into by Company and the Executive on
the date hereof and is incorporated herein by reference.

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

	 	 	 	 	 
	 	“Company”

K12 INC.

a Delaware corporation

 	 
	 	By:  	
 	 
	 	 	Richard Rasmus,      	 
	 	 	President and Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	“Executive”

 	 
	 	
 	 
	 	HOWARD D. POLSKY 	 
	 	 	 
	 

9exv10w1

 

Exhibit 10.1

AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 23rd day of August,
2007, by and between ACE*COMM Corporation, a Maryland corporation (the “Company”), having an
address at 704 Quince Orchard Road, Gaithersburg, Maryland 20878 and James Greenwell (the
“Executive”), currently residing at 11534 Hemingway Drive, Reston, VA 20191.

     WHEREAS, the Executive desires to enter into an agreement of employment with the Company in
accordance with the terms and conditions set forth herein; and

     WHEREAS, the Company desires to employ the Executive as its Chief Executive Officer and
President in accordance with the terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises and mutual agreements herein contained, the
parties hereto, intending legally to be bound, hereby agree as follows:

	1.	 	Term of Employment. The initial term of employment shall begin on the date set forth
above (the “Effective Date”) and shall continue in effect until the first anniversary of the
Effective Date (such period being the “Initial Term”). On the first anniversary of the
Effective Date and on subsequent anniversaries, the term of employment shall automatically
renew for successive one year periods, unless at least thirty (30) days prior to the end of
such renewal date either party hereto gives written notice to the other party of its intention
not to renew the term of employment. As provided below, this Agreement shall remain in effect
following a Change in Control. The Executive’s employment may be terminated at any time
during the Initial Term or during any renewal term solely in accordance with the terms and
conditions of Section 5 hereof.
	 
	2.	 	Duties.

	 	2.1	 	Position. The Company hereby employs the Executive in an executive
capacity with the title of Chief Executive Officer and President, and the Executive
hereby accepts such employment and undertakes and agrees to serve in such capacity. In
such capacity, the Executive shall have such powers, perform such duties and fulfill
such responsibilities typically associated with such positions in other publicly held
companies. The Executive shall devote substantially all of his working time and
efforts to the performance of his duties hereunder. The Executive shall report
directly to the Board of Directors (the “Board”) of the Company and have the authority
to hire and discharge any employee within his area of responsibility.
	 
	 	2.2	 	Limitation on Other Employment. During the term of his employment
hereunder, the Executive will not engage in any other occupation for gain, profit or
pecuniary advantage, without the consent of the Board of Directors of the Company;
provided, however, that this limitation shall not be construed as preventing him from
(a) serving on the board of directors of any corporation not directly competitive with
the Company (provided that the Executive has obtained the approval of the Board prior
to commencing such service), and (b) investing or

 

 

	 	 	 	trading in securities or other forms of investment, in each case so long as such
activities do not materially interfere with the performance of his duties hereunder
and such investments do not represent the ownership of 5% or more of the capital
stock of publicly traded entities.

	3.	 	Compensation.

	 	3.1	 	Base Salary. In consideration of the services rendered hereunder, the
Company shall pay the Executive during the Initial Term of this Agreement a base salary
at the rate of Two Hundred Fifty Thousand ($250,000) per annum or such higher rate as
the Board may in their discretion determine (“Base Salary”), which amount will be
payable to him in bi-weekly installments (or at such intervals as other salaried
employees of the Company are paid). The amount of the Executive’s Base Salary shall be
reviewed annually by the Board but shall not be reduced without written consent of the
Executive.
	 
	 	3.2	 	Incentive Compensation.

	 	(a)	 	The Executive will be eligible to participate in the ACE*COMM
Incentive Compensation Plan (“ICP”) at a level commensurate with his position.
Specific annual entitlements to bonus awards shall be predicated on the
Executive’s performance and subject to the Company achieving its operating
targets, consistent with the rules set forth in the ICP.
	 
	 	(b)	 	The Executive shall participate in all other Bonus, Long-Term
Capital Accumulation and/or Stock-Based Programs that the Company may adopt
from time to time for senior executives.

	4.	 	Benefits.

	 	4.1	 	Benefit Program. The Executive will be eligible to participate in the
group insurance plans (“Insurance Plans”), retirement plans, and other benefits plans
and arrangements (such retirement and other benefit plans and arrangements, together
with the Insurance Plans, the “Benefit Program”) available to executives of the
Company, as such plans may be or have been adopted from time to time in the Company’s
discretion. Nothing in this Agreement shall affect the Company’s right to change
insurance carriers and to adopt, amend, or terminate such plans and arrangements at any
time. The Company will provide to the Executive the specific benefits listed on
Schedule A hereto.
	 
	 	4.2	 	Employee Time Off. Employee Time Off will be provided as customary for
executives when necessary and convenient for both ACE*COMM and the Executive; and no
Employee Time Off will be accrued or paid out at any time.
	 
	 	4.3	 	Automobile Allowance. In accordance with Company policy as established
from time to time, the Company will provide the Executive with a monthly automobile
allowance at a rate mutually agreed upon by Executive and the Board.

 

 

	 	4.4	 	Expense Reimbursement. In accordance with the policies and procedures
which may be adopted from time to time by the Company and upon presentation by the
Executive of sufficient documentation and substantiation of such expenses, the Company
will reimburse the Executive for his ordinary and customary business expenses incurred
in the performance of his duties hereunder.

	5.	 	Termination.

	 	5.1	 	Termination by the Company for Cause.

	 	(a)	 	Definition. The Company may terminate the Executive’s
employment hereunder for “Cause” which shall be limited to:

	 	(i)	 	Neglect or dereliction in the performance of
the Executive’s duties or other similar misconduct by him and the
failure to cure such situation within ten (10) days after receipt of a
notice thereof from the Board of Directors,
	 
	 	(ii)	 	The Executive’s engaging in conduct which has
caused material injury to the Company, monetary or otherwise, as
determined by the Board of Directors,
	 
	 	(iii)	 	The Executive’s engaging in conduct
constituting a breach of fiduciary duty to the Company, or the
Executive’s commission of an act of dishonesty, disloyalty, or fraud
with respect to the Company,
	 
	 	(iv)	 	The Executive’s breach of this Agreement,
	 
	 	(v)	 	The Executive’s material violation of the code
of conduct adopted by the Board of Directors or any other written
Company policy of similar significance, or
	 
	 	(vi)	 	The Executive’s conviction of, or plea of
guilty or nolo contendere to, any felony or any crime which involves
the property of the Company or dishonesty, disloyalty, or fraud with
respect to the Company.

	 	(b)	 	Compensation upon Termination for Cause. Upon the
termination of the Executive’s employment for Cause, the Company shall pay the
Executive his Base Salary and prorated target incentive compensation, if any,
and shall permit his continued participation in the Benefit Program through the
effective date of such termination.

	 	5.2	 	Termination for Disability or Death.

	 	(a)	 	Disability. The Company may terminate the Executive’s
employment hereunder in the event of the Executive’s permanent disability. For
the

 

 

	 	 	 	purposes of this Agreement, permanent disability shall mean the Executive’s
inability, whether mental or physical, to perform the regular duties of his
employment on a full-time continuous basis for six (6) consecutive months
(the “Disability Period”). If a policy of disability insurance maintained
by the Company is in effect insuring the Executive, then in no event shall
Executive be deemed to be disabled until he is determined to be entitled to
receive disability income payments pursuant to such disability policy.
During the Disability Period the Company shall (i) pay the Executive his
full Base Salary then in effect, as well as any ICP benefit to which he
would otherwise be entitled, reduced by any amounts which he actually
received under any disability plan maintained by the Company during the
Disability Period, and (ii) shall continue his participation in the Benefit
Program subject to the terms and conditions of the plans and arrangements.
The Company shall notify the Executive in writing of its determination that
he has a permanent disability. If the Executive disputes the Company’s
determination that he has a permanent disability, then the question shall be
decided by a panel of three physicians, one to be designated by the Company,
one by the Executive and one by the first two so designated. The
determination of the panel shall be final and binding upon the parties with
costs of the panel to be paid by the Company.

	 	(b)	 	Death. The Executive’s employment hereunder will
terminate upon the Executive’s death without any further notice or action
required by the Company.
	 
	 	(c)	 	Compensation Upon Termination For Disability or Death.

	 	(i)	 	If the Company terminates the Executive’s
employment due to permanent disability, pursuant to Subsection 5.2(a)
herein, the Company shall pay the Executive his monthly Base Salary
then in effect for one (1) year after his termination, reduced by any
amounts which he actually receives under any disability plan maintained
by the Company and shall pay the Executive when due, a pro-rata portion
of the bonus determined pursuant to (iii) below corresponding to the
period of his active employment during the termination year.
	 
	 	(ii)	 	If the Executive’s employment is terminated due
to his death, pursuant to Subsection 5.2(b) herein, the Company shall
pay the Executive’s estate or designated beneficiary (A) the
Executive’s Base Salary and any other amounts due or earned through the
date of death, (B) until the end of the fiscal year in which the date
of death occurred, or, if greater, for three months following the date
of death, the Executive’s Base Salary as in effect (offset by any
proceeds paid to the Executive from any Company-maintained life
insurance policy), and (C) a pro-rata portion of the bonus

 

 

	 	 	 	determined pursuant to (iii) below corresponding to the period of his
employment during the termination year.
	 
	 	(iii)	 	For purposes of determining the bonus payable
in the year of termination, the Company shall pay a bonus equal to the
amount of the current year’s target bonus which could have been paid to
Executive for the year of termination, pro-rated for the period of his
employment during the termination year.

	 	(d)	 	Insurance Plans upon Termination for Death or
Disability.

	 	(i)	 	If the Company terminates the Executive’s
employment due to his permanent disability, pursuant to Subsection
5.2(a) herein, the Company shall continue to provide him and his
dependents coverage under the Insurance Plans, at his option, for the
longer of one year or the period required by applicable law. The
Company shall provide such coverage at its expense (except with respect
to those costs for which the Executive was responsible prior to the
termination of employment).
	 
	 	(ii)	 	If the Executive’s employment is terminated due
to his death, pursuant to Subsection 5.2(b) herein, the Company shall
continue to provide the Executive’s dependents medical insurance
coverage, at their option, for the longer of one (1) year after his
death or the period required by applicable law. The Company shall
provide such coverage at its expense (except for those costs for which
the Executive was responsible prior to his death).
	 
	 	(iii)	 	In the event the continued coverage
contemplated by Subsections 5.2(d)(i) and (ii) is not permitted by the
Insurance Plans, then the Company for the period specified above will
instead pay the Executive or the Executive’s dependents (in the event
of the Executive’s death) the monetary value of the premium(s) that it
would have paid on the Executive’s behalf if such continued coverage
were permitted.

	 	5.3	 	Termination By The Executive.

	 	(a)	 	Good Reason. The Executive may terminate his
employment hereunder for “Good Reason,” which shall be limited to: (i) the
failure by the Company (or its stockholders as the case may be) to elect or
reelect or to appoint or reappoint the Executive to the offices of Chief
Executive Officer and President (ii) the occurrence, without the written
consent of the Executive, of an event constituting a material breach of this
Agreement by the Company, or (iii) a Change in Control (as defined in Section
5.3(c) herein) and any one of the following events occurring within one (1)
year after such Change in Control:

 

 

	 	(A)	 	the assignment to the Executive of any material
duties inconsistent with the Executive’s then status as an executive
officer of the Company or a substantial adverse alteration in the
nature of the Executive’s responsibilities from those in effect
immediately prior to the Change in Control;

	 	(B)	 	a reduction by the Company in the Executive’s
Base Salary as in effect immediately prior to the Change in Control;

	 	(C)	 	a reduction in the aggregate percentage upon
which the Executive’s Incentive Compensation is determined unless
equivalent reductions are made generally for other executives of the
Company;

	 	(D)	 	the relocation of Executive’s principal place
of employment, without his consent, to a location more than twenty (20)
miles from the place of such employment immediately prior to the Change
in Control;

	 	(E)	 	The failure by the Company to provide the
Executive with benefits substantially similar to those enjoyed by the
Executive under the Benefit Program immediately prior to the Change in
Control, any action by the Company which materially reduces the Benefit
Program (other than general reductions that are applicable to other
executives too), or the failure by the Company to provide the Executive
with paid Employee Time Off as provided to Executive immediately prior
to Change in Control;

	 	(F)	 	The failure of a successor to the Company to
expressly assume and agree to perform this Agreement pursuant to
Section 5.5 herein.

	 	 	 	The Executive understands and agrees that none of the foregoing events shall
constitute Good Reason unless and until the Executive provides written
notice to the Company identifying the asserted grounds for Good Reason and
such notice is provided to the Company within ninety (90) days of such
event. The Executive further understands and agrees that the events
described above shall not constitute Good Reason unless and until the
Company fails to cure such asserted grounds for Good Reason within twenty
(20) days of its receipt of such notice from the Executive.
	 
	 	(b)	 	Compensation and Benefits upon Termination By The
Executive.

	 	(i)	 	In the event of a termination of this Agreement
by the Executive without Good Reason, the Company shall pay him his
Base Salary and the prorated portion of the target bonus, if any,
determined pursuant to Section 5.2(c)(iii) and shall permit his
continued participation in the Benefit Program through the effective
date of such termination.

 

 

	 	(ii)	 	If the Executive terminates his employment
hereunder for Good Reason, (A) if there has not occurred a Change in
Control, the Company shall also pay him a severance payment equal to
twelve (12) months of his Base Salary then in effect (paid as salary
continuation for the twelve months following the notice of
termination), plus the pro-rata portion of the target bonus determined
pursuant to Section 5.2(c)(iii); (B) if there has occurred a Change in
Control, the Company shall pay him a severance payment in a lump sum
equal to the sum of the target bonus plus 200% of his annual Base
Salary then in effect, and (C) in either case, the Executive’s
employment shall be deemed to continue for the balance of the term
identified in Section 1 above for purposes of determining his
participation in the Company’s medical and dental insurance plans;
provided, however, that if such participation by him after termination
of employment is not permitted under such plans, the Company will
instead pay the Executive the monetary value of the premium(s) that it
would have paid on the Executive’s behalf if such continued coverage
were permitted. The Company will pay the total costs of the
Executive’s participation in such plans or the equivalent thereof. If
during the period the Executive would have received an automobile
allowance, the Company shall pay him a lump sum pro-rata portion of the
allowance, equal to the amount it would have paid had employment
continued under the current term of the Agreement. The Executive also
will be provided out-placement assistance utilizing a consultation
service designated and paid for by the Company. Furthermore, all stock
options granted to Executive shall immediately vest and be exercisable
for a period of 12 months following termination. .

	 	(c)	 	Definition of Change in Control. A “Change in Control”
shall mean the occurrence of an event set forth in any one of the following
paragraphs:

	 	(i)	 	any Person is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company (not including in
the securities beneficially owned by such Person any securities
acquired directly from the Company or its affiliates) representing 20%
or more of the combined voting power of the Company’s then outstanding
securities, excluding any Person who becomes such Beneficial Owner in
connection with a transaction described in clause (A) of paragraph
(iii) below and excluding a transaction whereby a person becomes the
Beneficial Owner of 20% or more of the combined voting power of the
Company’s then outstanding securities, but such transaction does not
transfer the power to control the management or the policies of the
Company; or

 

 

	 	(ii)	 	the following individuals cease for any reason
to constitute a majority of the number of directors then serving:
individuals who, on the Effective Date, constitute the Board and any
new director (other than a director whose initial assumption of office
is in connection with an actual or threatened election contest,
including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by
the Board or nomination for election by the Company’s stockholders was
approved or recommended by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors on the
Effective Date or whose appointment, election or nomination for
election was previously so approved or recommended; or

	 	(iii)	 	there is consummated a merger or consolidation
of the Company or any direct or indirect subsidiary of the company with
any other corporation, other than (A) a merger or consolidation which
would result in the voting securities of the Company outstanding
immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity or any parent thereof) at
least 60% of the combined voting power of the securities of the Company
or such surviving entity or any parent thereof outstanding immediately
after such merger or consolidation, or (B) a merger or consolidation
effected to implement a recapitalization of the Company (or similar
transaction) in which no Person is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company (not including in
the securities Beneficially Owned by such Person any securities
acquired directly from the Company or its Affiliates other than in
connection with the acquisition by the Company or its Affiliates of a
business) representing 20% ore more of the combined voting power of the
Company’s then outstanding securities; or

	 	(iv)	 	the stockholders of the Company approve a plan
of complete liquidation or dissolution of the Company or there is
consummated an agreement for the sale or disposition by the Company of
all or substantially all of the Company’s assets, other than a sale or
disposition by the Company of all or substantially all of the Company’s
assets to an entity, at least 60% of the combined voting power of the
voting securities of which are owned by the stockholders of the Company
in substantially the same proportions as their ownership of the Company
immediately prior to such sale.

	 	 	 	For purposes of this Section 5.3(c), the following definitions shall apply: “Person” shall
have the meaning given in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended
(the “Act”), as modified and used in Section 13(d) thereof, except that such term shall not
include (i) the Company or any of its subsidiaries, (ii) a trustee or other

 

 

	 	fiduciary holding securities under an employee benefit plan of the Company or any of its
Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of
such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of stock of the
Company. “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Act.
“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
the Act.

	 	5.4	 	Termination by the Company other than for Cause.

	 	(a)	 	Compensation Upon Termination by the Company other than for
Cause. If the Company terminates the Executive’s employment hereunder
without “Cause,” the Company shall pay the Executive a severance payment equal
to twelve (12) months of his Base Salary then in effect (paid as salary
continuation for the twelve months following the notice of termination), plus
the pro-rata portion of the target bonus determined pursuant to Section
5.2(c)(iii).
	 
	 	(b)	 	Benefits Upon Termination by the Company other than for
Cause. If the Company terminates the Executive’s employment hereunder
without “Cause,” the Executive’s employment shall be deemed to continue for the
balance of the term identified in Section 1 above for purposes of determining
his participation in the Company’s medical and dental insurance plans;
provided, however, that if such participation by him after termination of
employment is not permitted under such plans, the Company will pay for
equivalent coverage. The Company will pay the total costs of the Executive’s
participation in such plans or the equivalent thereof. If during the period
the Executive would have received an automobile allowance, the Company shall
pay him a lump sum pro-rata portion of the allowance, equal to the amount it
would have paid had employment continued under the current term of the
Agreement. The Executive also will be provided out-placement assistance
utilizing a consultation service designated and paid for by the Company.
Furthermore, all stock options granted to Executive shall immediately vest and
be exercisable for a period of 12 months following termination.

	 	5.5	 	Successor. The Company, or any entity which controls the Company,
shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business assets of the
Company by written agreement expressly to assume and agree to perform this Agreement in
the same manner and to the same extent as the Company would be required to perform if
no such succession had occurred. As used in this Agreement, “Company” shall mean the
Company as defined above and any successor to all or substantially all of its business
or assets which becomes bound by all of the terms and conditions of this Agreement.

	 	5.6	 	Requirement of a General Release. The Executive agrees that, as a
condition to receiving the compensation and benefits described in Sections 5.3(b),
5.4(a), or

 

 

	 	 	 	5.4(b), the Executive will first execute a general release of claims in a form
acceptable to the Employer. The compensation and benefits shall begin within ten
(10) business days following the later of the Company’s receipt of the general
release of claims or the expiration of the revocation period (to the extent that
there is a revocation period) without the general release of claims being revoked by
the Executive.

	6.	 	Restrictions.

	 	6.1	 	Confidential Information. The Executive agrees that during and after
the period of his employment he will not, without authorization from the Company,
divulge, disclose or otherwise communicate to any person or company any confidential or
proprietary information pertaining to the Company’s business, functions or operations,
products, services, plans strategies, financial performance, customers, employees, or
contracts (collectively, “Confidential Information”), except in connection with the
discharge of his duties hereunder, or pursuant to the order of a court of competent
jurisdiction. The Executive and the Company agree that the term “Confidential
Information” shall have the broadest possible meaning permitted by law and shall
include any and all information described in the Company’s standard confidentiality
agreement with employees. The Executive further agrees that, upon termination of his
employment with the Company for any reason, he will promptly return to the Company all
books and records of or pertaining to the Company’s business, and all other property
belonging to the Company which is in his custody or possession.

	 	6.2	 	Non-Compete. During his employment by the Company and for twelve (12)
months thereafter regardless of how his employment ends, subject to Section 2.2 above,
the Executive shall not anywhere in the United States or in any other country in which
the Company markets or sells its products or services: (i) solicit or encourage any
client or customer of the Company to terminate, reduce or alter in a manner adverse to
the Company any existing business arrangements with it; (ii) provide services to any
entity as an employee, consultant, contractor, partner, director, officer, agent, or
contractor if the entity competes with the Company by engaging in the Business and the
services to be provided by the Executive are substantially similar to or otherwise
competitive with those previously provided by the Executive to the Company; or (iii)
own an interest in any entity that competes with the Company by engaging in the
Business, provided, however, that the Executive may own, as a passive investor,
securities of any such entity that has outstanding publicly traded securities so long
as the Executive’s direct holdings in any such entity shall not in the aggregate
constitute more than 5% of the voting power of such entity. For the purposes of
Section 6.2, the “Business” shall mean the matters described in the Company’s Annual
Report on Form 10-K filed immediately prior to the end of the Executive’s employment,
and the entities that “compete with the Company” shall include without limitation those
companies listed as competing with the Company in the Company’s Annual Report on Form
10-K filed immediately prior to the end of the Executive’s employment. Without the
prior written approval of the Board, the Executive further agrees that during the
twelve (12) month period following the termination

 

 

	 	 	 	of his employment for any reason, he will not solicit for employment any employee of
the Company or any person who was employed by the Company within three (3) months of
such solicitation. It is further agreed and understood that the Executive shall not
engage in any conduct or communication which shall disparage the Company or
interfere with its current or prospective business relationships.

	 	6.3	 	Cause of Action. The parties hereby declare that the rights of the
Company are of a unique nature, the loss of which may cause irreparable harm, and it
may be impossible to measure in money the damages which will accrue to the Company by
reason of the loss of such rights or a failure by the Executive to perform or adhere to
any of the obligations under Sections 6.1 or 6.2 hereof. The Executive expressly
acknowledges that remedies at law alone will be inadequate to compensate the Company
for any breach or violation of any of the provisions of Sections 6.1 or 6.2 hereof, and
that the Company, in addition to all other remedies hereunder or thereunder, shall be
entitled, as a matter of right, to seek injunctive relief, including specific
performance, with respect to any such breach of violation, in any court of competent
jurisdiction.

	 	6.4	 	Modification/Severability. If any of the restrictions contained in
Section 6 are determined by any court of competent jurisdiction or other adjudicator to
be unenforceable by reason of their extending for too great a period of time or over
too great a geographical area or by reason of their being too extensive in any other
respect, then the Executive and the Company agree that the court or adjudicator shall
interpret and modify such restriction(s) to be effective for the maximum period of time
for which it/they may be enforceable and over the maximum geographical area as to which
it/they may be enforceable and to the maximum extent in all other respects as to which
it/they may be enforceable. The Executive and the Company further agree that such
modified restriction(s) shall be enforced by the court or adjudicator. In the event
that modification is not possible, then the Executive and the Company agree that,
because each of the Executive’s obligations in Section 6 is a separate and independent
covenant, any unenforceable obligation shall be severed and all remaining obligations
shall be enforced.

	7.	 	Legal Matters.

	 	7.1	 	Resolutions of Conflict. Other than for any claims or causes of action
which, in whole or in part, assert any violation by the Executive of Section 6, any and
all disputes, claims and controversies between the parties hereto concerning the
validity, interpretation, performance, termination or breach of this Agreement, which
cannot be resolved by the parties within ninety (90) days after such dispute, claim or
controversy arises shall, at the option of either party, be referred to and finally
settled by arbitration. Such arbitration shall be initiated by the initiating party
giving notice (the “Arbitration Notice”) to the other party (the “Respondent”) that it
intends to submit such dispute, claim or controversy to arbitration. Each party shall,
within thirty (30) days of the date of the Arbitration Notice is received by the
Respondent, designate a person who is approved as an

 

 

	 	 	 	American Arbitration Association arbitrator to act as an arbitrator, if either party
fails to designate a person to Act as an arbitrator within the time specified herein
the arbitration shall be conducted by the sole designated arbitrator. The two
arbitrators appointed by the parties shall, within thirty (30) days after their
designation appoint a third arbitrator who shall act as presiding arbitrator (the
“Presiding Arbitrator”). If the two arbitrators designated by the parties are
unable to appoint a Presiding Arbitrator, the Presiding Arbitrator shall be
appointed according to the rules of the American Arbitration Association as in
effect on the date the notice of submission to arbitration is given (the “Rules”).
	 
	 	 	 	Such arbitration shall be held in the Gaithersburg, Maryland area in accordance with
the Rules except as otherwise expressly provided herein. The arbitrators shall, by
majority vote, render a written decision stating reasons therefore in reasonable
detail within three (3) months after the appointment of all the arbitrators. Each
party shall bear its own costs and attorneys fees. All other costs and expenses of
arbitration shall be apportioned between the parties by the arbitrators. The award
of the arbitrators shall be final and binding, and judgment thereon may be rendered
by any court having jurisdiction thereof, or application may be made to such court
for the judicial acceptance of the award and an order of enforcement as the case may
be.

	 	7.2	 	Notices. All notices, requests, consents and other communications,
required or permitted to be given hereunder, shall be in writing and shall be deemed to
have been duly given if delivered personally or mailed first class, postage prepaid, by
registered or certified mail, addressed to either party at the address first written
above (or to such other address as either party shall designate by notice in writing to
the other party in accordance herewith).

	8.	 	Miscellaneous.

	 	8.1	 	Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Maryland applicable to agreements
made and to be performed within Maryland, without regard to the principles of conflict
of laws.
	 
	 	8.2	 	Headings. The section headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of this
Agreement.
	 
	 	8.3	 	Entire Agreement. This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject matter hereof, and from and after
the date hereof supersedes all prior agreements, arrangements and understandings,
written or oral, relating to the subject matter hereof provided, however, that the
benefits conferred under this Agreement are in addition to, and not in lieu of, any and
all benefits conferred under plans and arrangements currently in effect for the
Executive.

 

 

	 	8.4	 	Assignment. This Agreement is binding upon and shall inure to the
benefits of the Executive and his estate, but the Executive’s rights and obligations
hereunder may not be assigned or pledged by him.
	 
	 	8.5	 	Modification. This Agreement may be amended, modified, superseded,
canceled, renewed or extended, and the terms or covenants hereof may be waived, only by
written instrument executed by both of the parties hereto or in the case of a waiver,
by the party waiving compliance.
	 
	 	8.6	 	Section 162(m). In the event compensation payable to the Executive
hereunder in any single tax year would result in the non-deductibility of a portion of
such compensation by the Company solely by reason of Section 162(m) of the Internal
Revenue Code of 1986, as amended, then, and in such event, the Company shall be
permitted to defer payment of such non-deductible amount to the Executive to be paid to
him on the first day of the succeeding tax year of the Company.

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement with legal and
binding effect as of the day and year first above written.

	 	 	 	 	 
	 

	 	ACE*COMM CORPORATION	 	 
	 
	 	 	 	 
	 
	 	/s/ George T. Jimenez	 	 
	 

	 	 

By: George T. Jimenez, Chairman
	 	 
	 
	 	 	 	 
	 

	 	THE EXECUTIVE	 	 
	 
	 	 	 	 
	 
	 	/s/ James Greenwell	 	 
	 

	 	 

James Greenwell
	 	 

 

 

SCHEDULE A

	 	 	 
	Group Plans	 	Benefit
	 	 	 
	ACE*COMM Group Medical Plan

	 	Varies
	ACE*COMM Group Life Insurance Plan

	 	Two times annual salary
	ACE*COMM Group Short-Term Disability Plan

	 	70% of weekly earnings after 14
Days, continuing up to 11 weeks.
Maximum weekly benefit is
$1,000, with reduction in
benefit depending on age at time
of disability.
	ACE*COMM Group Long-Term Disability Plan

	 	60% of monthly earnings after 90
days. Maximum monthly benefit
is $10,000, with reduction in
benefit depending on age at time
of disability. Benefit is
reduced at retirement age.

Executive Plans/Benefits

Incentive Compensation Plan

Amended and Restated Omnibus Stock Plan

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