Document:

ex10-47.htm

    
      

      

    

     

    SUPERIOR
INDUSTRIES INTERNATIONAL, INC.

    ANNUAL
REPORT OF FORM 10-K

    
 

    Exhibit
10.47

    

    AMENDMENT
TO STOCK OPTION AGREEMENT

    

    On this
9th
day of October, 2007, Superior Industries International, Inc. (“Company”) and
[NAME] (“Employee”) hereby enter into this Amendment to Stock Option Agreement
(“Agreement”) and hereby agree to have the exercise price of certain options
amended, as listed on the attached Schedule of Amended Options (the
“Options”).  These Options are now exercisable, subject to vesting and
the other terms thereof, at the amended exercise price as listed on the attached
Schedule of Amended Options.

     

    This
agreement acts as an amendment to each of your Options.  To the extent
not amended by this agreement, your Options will continue to be subject to the
terms and conditions of the Superior Industries International, Inc. 1993 Stock
Option Plan or 2003 Equity Incentive Plan, as applicable, under which the
original options were granted.

    

    This is
an enforceable agreement.  The consideration that Employee has given
for it is agreeing to correct the exercise price of the listed options to the
amended exercise price.  The consideration the Company has given is
helping Employee to avoid additional taxes under Internal Revenue Code Section
409A by agreeing to the exercise price correction.  The Company has no
obligation to pay Employee anything to compensate Employee for entering into
this Agreement even though it reduces the value of the Options.

    

    This
agreement reflects the entire agreement between Employee and Superior concerning
this transaction.  Neither party has relied on any representations
that are not in this Agreement.  This Agreement may be amended only by
means of a writing signed by Employee and an authorized officer of
Company.

    

     

    

    
      	 
      	
              EMPLOYEE

            
	 
      	 
      
	 
      	
              ____________________________________

            
	 
      	
              By:           [NAME]

            
	 
      	
               [TITLE]

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              SUPERIOR
      INDUSTRIES INTERNATIONAL, INC.

            
	 
      	 
      
	 
      	
              ____________________________________

            
	 
      	
              By:           Steven
      J. Borick

            
	 
      	
               Chairman, Chief Executive
      Officer and Presidentanderson.htm

    
      

      

    

    Exhibit
10.46 

    

    

     

    
    

     

    
      	                             DATED:	
               August 13th
      2001

               

              Amended March 1st
      2005

            

    

     

     

     Teltronics
Limited

     

    - and
-

     

     Duncan
Anderson

     

     

     

     

    __________________________________

     

    EMPLOYMENT
AGREEMENT

     

    __________________________________

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THIS
AGREEMENT is made on the  13th  day
of  August
2001.      

     

    B
E T W E E N:

     

    
      	 	
               
      (1)

            	
              Teltronics
      Limited a company registered in England and Wales with
      registered company number 04248637, whose registered
      office is at England  (the
“Company”);

            

    

    and

    
      	 	
               
      (2)

            	
              Duncan
      J. Anderson,
      27 Weston Road, Olney, Buckinghamshire MK465BD (the
      “Employee”)

            

    

     

    IT IS
HEREBY AGREED as follows:

     

    
      	
              1.  

            	
              Appointment

            

    

     

    The
Company appoints the Employee and the Employee agrees to serve the Company as in
the position of Managing Director on and subject to the terms and conditions
specified herein (the “Employment”).

     

    
      	
              2.  

            	
              Commencement
      of Employment

            

    

     

    
      	
              2.1  

            	
              The
      Employment will commence with effect from August 13, 2001 (the
      "Commencement Date") and, subject to Clause 20 below, shall continue
      thereafter until terminated by not less than twelve (12) months’ prior
      written notice given by either party to the
  other.

            

    

     

    
      	
              2.2  

            	
              The
      Employee’s period of continuous employment with the Company began on
      August 13, 2001.

            

    

     

    
      	
              3.  

            	
              Duties

            

    

     

    
      	
              3.1  

            	
              The
      Employee shall be employed in the post of Managing Director or in such
      other capacity as the Company may from time to time reasonably
      require.  The Employee will report directly to the President and
      CEO of the Company.  The Employee’s responsibilities will
      include such duties as are in the reasonable opinion of the Company
      appropriate to and consistent with the post of Managing Director or in the
      event of a change in the capacity in which the Employee is employed by the
      Company pursuant to this Clause 3.1, such new capacity.  The
      Employee will be expected to carry out the duties assigned under this
      Employment Agreement in a proper, loyal and efficient manner and to use
      best endeavours to promote the interests and reputation of the Company and
      to do nothing which could be considered as harmful to the Company. The
      Employee shall obey the reasonable and lawful orders of the Company, given
      by or with the authority of the Company’s Board of Directors, and shall
      comply with all the Company’s rules, regulations, policies and procedures
      from time to time in force.

            

    

     

    
      	
              3.2  

            	
              The
      Employee accepts that the Company may, at its discretion, assign to the
      Employee other duties or tasks not within the scope of the Employee’s
      normal duties, (including, without limitation, the carrying out of
      specific projects unrelated to the Employee’s normal duties), in addition
      to, or in place of, the Employee’s 

            

    

     

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    
      	 	 normal duties,
      it being understood that no duties will be assigned to the Employee which
      the Employee cannot reasonably perform.

    

     

    
      	
              3.3  

            	
              The
      Employee may be required in pursuance of the duties assigned under this
      Employment Agreement to perform services for any Associated Company and,
      without further remuneration (except as otherwise agreed), to accept any
      such position in any Associated Company which is consistent with the
      Employee’s position with the Company, as the Company may from time to time
      reasonably require.  The Company may at its sole discretion
      assign the Employment to any Associated Company on the same terms and
      conditions as set out herein.

            

    

     

    
      	
              3.4  

            	
              The
      Company hereby reserves the right, from time to time, to appoint any other
      person or persons to act jointly with the Employee in this appointment and
      to appoint any other person or persons to act in a capacity senior to the
      Employee.

            

    

     

    
      	
              4.  

            	
              Hours
      of Work

            

    

     

    
      	
              4.1  

            	
              The
      Employee will normally be required to work forty (40) hours per week on an
      eight (8) hours per day basis Monday to Friday.  However, in
      accordance with the provisions of Clause 20.4, the Company has the right
      to require the Employee to remain away from work on full pay and on such
      conditions as the Company may
specify.

            

    

     

    
      	
              4.2  

            	
              When
      deemed necessary by the Company, the Employee will also be expected to
      work outside and beyond normal hours, including weekends and/or holidays,
      and no extra payment will be made for such work.  The Employee
      hereby agrees that the forty-eight (48) hour limit under the Working Time
      Regulations 1998 (as amended) will not apply to the Employee unless or
      until the expiry of three (3) months’ written notice from the Employee to
      the Company to terminate this
arrangement.

            

    

     

    
      	
              5.  

            	
              Exclusivity
      of Service

            

    

     

    
      	
              5.1  

            	
              During
      the Employment, the Employee will be expected to devote the Employee’s
      full time and attention to carrying out the duties assigned under this
      Employment Agreement and the Employee shall not (without the prior written
      consent of the Company) during the Employment directly or indirectly
      engage or be interested in, be concerned with, or provide services to, any
      other person, company, business entity or other organisation whatsoever
      (whether as an employee, officer, director, agent, partner, consultant or
      otherwise) SAVE AS provided in Clause 3.3 above, and SAVE FURTHER THAT the
      Employee may hold up to 5% of any securities in a company which is quoted
      on any Recognised Investment Exchange (as defined in Section 207 of the
      Financial Services Act 1986 or any equivalent provision under any
      superseding legislation).

            

    

     

    
      	
              5.2  

            	
              The
      Employee hereby warrants that the Employee has fully disclosed in writing
      to the Company as set forth in Schedule II all circumstances in respect of
      which there is, or might be, a conflict of interest between the Company
      and/or any Associated Company and the Employee and/or the Employee’s
      Immediate Relatives, and the Employee further agrees to disclose fully in
      writing to the Company any such circumstances which may arise during the
      Employment.

            

    

     

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	
              6.  

            	
              Remuneration

            

    

     

    As
compensation for the services to be provided by the Employee under this
Employment Agreement, the Employee will be remunerated as follows:

     

    
      	
              6.1  

            	
              The
      Employee’s basic salary will be £UK 90,000 per annum. This will be paid in
      equal monthly instalments in arrears by credit transfer into the
      Employee’s bank or building society account on or about the 28th day of
      each month.  The Company will review the Employee’s salary
      annually with effect from the anniversary of the Commencement Date each
      year without any undertaking by the Company that the Employee’s salary
      will be automatically increased as a consequence of such
      review.

            

    

     

    
      	
              6.2  

            	
              The
      Employee will be entitled to participate in the Company’s Sales
      Compensation Plan (“the Plan”) in accordance with the terms of the Plan as
      from time to time apply.  The Employee will be entitled to a
      maximum target remuneration of £UK 60,000 Amount under the Plan
      conditional upon individual and EMEA region sales objectives being
      met.  The terms of participation in the Plan shall be determined
      by the Company in its sole discretion and are available on request from
      the Company.  The Company reserves the right to amend or
      terminate the Plan without notice at any time or to exclude the Employee
      from participation in the Plan without giving any
  reason.

            

    

     

    
      	
              7.  

            	
              Expenses

            

    

     

    The
Company shall reimburse to the Employee all reasonable business expenses
properly incurred and defrayed by the Employee in the proper performance of the
Employee’s duties in accordance with the Company’s rules and policies relating
to expenses provided that, on request, the Employee will provide the Company
with such vouchers, receipts or other satisfactory evidence of actual payment of
such expenses as the Company may, in its sole discretion, reasonably
require.

     

    
      	
              8.  

            	
              Deductions

            

    

     

    The
Company shall be entitled at any time during the Employment, and in any event on
termination thereof (howsoever arising) to deduct from any payment owed to the
Employee by the Company (including, without limitation, salary, payment in lieu
of notice, any bonus or the like) any monies due from the Employee to the
Company, including but not limited to any outstanding loans, advances,
relocation expenses, overpayments, training costs, the cost of repairing any
damage to the Company’s property caused by the Employee and any loss suffered by
the Company as a result of the Employee’s negligence or breach of Company rules
(including the cost of recovering the same), excess holiday, any sums due under
Clause 11 below and any other monies from time to time owed by the Employee to
the Company.

     

    
      	
              9.  

            	
              Stock
      Options

            

    

     

    The
Employee shall be granted 20,000 stock options in accordance with the terms of
Teltronics, Inc.’s stock option plan.

    
      
        
           

        

          -3-

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              10.  

            	
              Place
      of Work

            

    

     

    
      	
              10.1  

            	
              The
      Employee’s normal place of work will be home based at the address above,
      although the Company reserves the right to change the Employee’s normal
      place of work upon one (1) month’s notice to any place in the
      United Kingdom.

            

    

     

    
      	
              10.2  

            	
              The
      Employee may be required to work at any of the Company’s premises or at
      the premises of its customers, clients, suppliers or of any Associated
      Company within the United Kingdom from time to time.  The
      Employee will be reimbursed for any expenses properly incurred in
      connection with such duties in accordance with the Company’s rules and
      policies relating to expenses from time to
time.

            

    

     

    
      	
              10.3  

            	
              In
      the performance of the Employee’s duties hereunder, the Employee may be
      required to travel both within and outside the
      United Kingdom.  The Employee’s duties will not ordinarily
      require the Employee to work outside the United Kingdom for a period of
      more than one month.

            

    

     

    
      	
              11.  

            	
              Sickness
      Benefits

            

    

     

    
      	
              11.1  

            	
              In
      case of sickness or other incapacity for work, the Employee must comply
      with the Company’s rules, from time to time in force, regarding sickness
      notification and the provision of doctor’s certificates, details of which
      can be obtained from the Company.

            

    

     

    
      	
              11.2  

            	
              The
      Company reserves the right to require the Employee, at the Company’s
      expense, to undergo a medical examination by a doctor or consultant
      nominated by the Company and to cease payment of Company Sick Pay if it is
      advised by such doctor that the Employee is fit to return to
      work.

            

    

     

    
      	
              11.3  

            	
              On
      condition that the Employee has complied with the Company’s rules referred
      to at Clause 11.1 above and that the payment of Company Sick Pay has not
      been ceased in accordance with Clause 11.2, the Employee will be entitled
      to Company Sick Pay up to a maximum of three (3) months’
      full pay per annum and subject to review by the Company
      thereafter.

            

    

     

    
      	
              11.4  

            	
              When
      calculating the Employee’s pay for the purpose of Company Sick Pay,
      deductions will be made for any State sickness or other benefits
      recoverable by the Employee in connection with such sickness or
      incapacity, as well as normal deductions for tax and National
      Insurance.

            

    

     

    
      	
              11.5  

            	
              In
      addition to Company Sick Pay, the Employee will be paid Statutory Sick Pay
      (“SSP”) when eligible to receive it in accordance with current
      legislation.  Where Company Sick Pay and SSP fail to be paid for
      the same day(s) of absence, the Employee will receive the higher of the
      two sums.  Further details regarding SSP can be obtained from
      the Company.

            

    

     

    
      	
              11.6  

            	
              In
      the event that, during the Employment, the Employee is absent from work on
      grounds of sickness or other medical incapacity the Employee’s entitlement
      to the payment by the Company of pension contributions, participation in
      any incentive or bonus scheme and (to the extent permitted by law) accrual
      of holiday entitlement, 

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    
    

     

    
      	 	 shall cease on
      the expiry of the relevant period of the Employee’s entitlement to Company
      Sick Pay as set out in Clause 11.3 above.

    

     

    
      	
              11.7  

            	
              Any
      outstanding or prospective entitlement to Company Sick Pay shall not
      prevent the Company from exercising its right to terminate the Employment
      in accordance with Clauses 2 or 20
hereof.

            

    

     

    
      	
              11.8  

            	
              If
      any illness, accident or other incapacity of the Employee is, or appears
      to be, caused by the actionable negligence of a third party in respect of
      which damages are or may be recoverable, the Employee shall immediately
      notify the Company of that fact and of any claim, compromise, settlement
      or judgement made or awarded in connection with it.  The
      Employee hereby agrees to provide to the Company all particulars which the
      Company may reasonably request in relation to the same and will, if
      requested by the Company, refund all or such part of the sums paid to or
      for the benefit of the Employee by the Company by way of salary, bonus or
      benefits during the period of the Employee’s illness, accident or
      incapacity as the Company may reasonably determine.  Any such
      amount to be refunded by the Employee shall not exceed the amount of
      damages or compensation (and interest thereon) recovered by the Employee,
      less any unrecovered costs borne by the Employee in connection with the
      recovery of such damages or compensation, and shall not exceed the total
      remuneration paid to the Employee by way of salary, bonus and benefits in
      respect of the period of such illness, accident or other
      incapacity.  Any rights of the Company pursuant to this Clause
      11.8 shall be without prejudice to the Employee’s entitlement to SSP in
      accordance with current
legislation.

            

    

     

    
      	
              12.  

            	
              Holidays

            

    

     

    
      	
              12.1  

            	
              The
      Company’s holiday year runs from 1st January to 31st
      December.  In each holiday year the Employee will be entitled to
      twenty five (25) days’ paid holiday. The Employee must give at least one
      month’s notice of proposed holiday dates and these must then be agreed
      with the person to whom the Employee immediately reports.  The
      Employee must not without the prior consent of the Company carry any
      unused Company holiday entitlement forward to a subsequent holiday
      year.  The Employee will not be entitled to receive pay in lieu
      of any unused holiday entitlement except in accordance with the following
      Clause.

            

    

     

    
      	
              12.2  

            	
              If
      the Employee starts or leaves the Employment during a Company holiday
      year, the Employee’s Company holiday entitlement in respect of that
      Company holiday year shall be 2 days for each complete month of service in
      that Company holiday year.  Upon termination of the Employment,
      the Employee will be:

            

    

     

    
      	 	
              12.2.1  

            	
              entitled
      to pay in lieu of any unused Company holiday entitlement, save to the
      extent permitted by law where the Employment is terminated by the Company
      in accordance with Clause 20; or

            

    

     

    
      	 	
              12.2.2  

            	
              required
      to pay to the Company pay received for holiday taken in excess of the
      Employee’s accrued company holiday entitlement.  Any sums so due
      may be deducted from any money owing to the
  Employee.

            

    

     

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      	
              12.3  

            	
              The
      Company reserves the right to require the Employee to take any unused
      holiday entitlement during the Employee’s notice period, even if booked to
      be taken after the end of the notice
period.

            

    

     

    
      	
              12.4  

            	
              For
      the purpose of calculating any pay due to the Employee or owed by the
      Employee to the Company in accordance with this Clause 12, one (1) day’s
      pay shall be 1/253
      of the Employee’s basic annual
salary.

            

    

     

    
      	
              12.5  

            	
              In
      addition to the Employee’s Company holiday entitlement, the Employee is
      entitled to all public holidays normally observed in the United Kingdom
      and will be paid for each such public holiday.  The Company
      reserves the right to require the Employee to work on a public holiday if
      necessary for the proper performance of the Employee’s
    duties.

            

    

     

    
      	
              13.  

            	
              Acceptance
      of Gifts

            

    

     

    
      	
               
      

            	
              The
      Employee may not, without the prior written consent of the Company, accept
      any gift and/or favour of whatever kind from any customer, client or
      supplier of the Company or any prospective customer, client or supplier of
      the Company.

            

    

     

    
      	
              14.  

            	
              Pension
      and Other Benefits

            

    

     

    
      	
              14.1  

            	
              The
      Employee will be eligible to participate in the Company’s pension scheme,
      subject to the applicable taxation laws.  Full details of such
      scheme, will be available from the
Company.

            

    

     

    
      	
              14.2  

            	
              There
      is currently not in force a contracting-out certificate (issued in
      accordance with Chapter I of Part III of the Pension Schemes Act 1993)
      stating that the Employment is contracted out
  employment.

            

    

     

    
      	
              14.3  

            	
              The
      Employee will have the benefit of a mobile telephone for use in connection
      with the Employment.  The Company will bear all expenses
      incurred in connection with such telephone except for expenses incurred in
      connection with the private use of the
same.

            

    

     

    
      	
              15.  

            	
              Reasonableness
      of Restrictions

            

    

     

    
      	 	
              The Employee hereby
      acknowledges that, in the course of performing the duties assigned under
      this Employment Agreement, the Employee will have access to, and come into
      contact with, trade secrets and confidential information belonging to the
      Company and/or to Associated Companies and will obtain personal knowledge
      of and influence over the customers and/or employees of the
      same.  The Employee accordingly agrees that the restrictions
      contained or referred to in Clauses 16 and 19 and Schedule I are
      reasonable and necessary to protect the legitimate business interests of
      the Company and its Associated Companies, both during and after the
      termination of the Employment.

            

    

     

    
      	
              16.  

            	
              Confidentiality

            

    

     

    
    

     

    
      	 16.1	
              During
      the Employment and at any time following the Termination Date, the
      Employee hereby agrees:

            

    

     

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    
    

    
      	 	
              16.1.1  

            	
              not
      without the prior written authorisation of the Company, to disclose the
      Confidential Information directly or indirectly to any person, firm,
      company or organisation, except as may be expressly required in performing
      services for the Company, any Associated Company or any client or customer
      of the Company or any Associated Company, and then only to persons within
      the Company, the Associated Company or any client or customer of the
      Company or any Associated Company who have a need to know the Confidential
      Information;

            

    

     

    
      	 	
              16.1.2  

            	
              not
      to use or exploit the Confidential Information in any way other than as
      expressly required in performing services for the Company or any
      Associated Company;

            

    

     

    
      	 	
              16.1.3  

            	
              not
      without the prior written authority of the Company to remove from the
      Company’s premises or copy or allow others to copy the contents of any
      document, computer disk, tape or other tangible item which contains any
      Confidential Information or which belongs to the Company or any Associated
      Company;

            

    

     

    
      	 	
              16.1.4  

            	
              to
      return to the Company upon request and, in any event, at the Termination
      Date, all documents, computer disks and tapes and other tangible items in
      the Employee’s possession or under the Employee’s control which belong to
      the Company or any Associated Company or which contain or refer to any
      Confidential Information.

            

    

     

    
      	
              16.2  

            	
              The
      Employee shall not at any time during the continuance of the Employment
      make any notes or memoranda relating to any matter within the scope of the
      Company’s business, dealings or affairs otherwise than for the benefit of
      the Company or any Associated
Company.

            

    

     

    
      	
              16.3  

            	
              The
      obligations contained in Clause 16.1 will not apply to any disclosures
      required by law, and such disclosure obligations shall cease to apply in
      respect of any information or knowledge which may come into the public
      domain, other than by way of unauthorised disclosure, following
      termination of the Employment.

            

    

     

    
      	
              16.4  

            	
              The
      Employee shall not make or communicate any statement (whether written or
      oral) to any representative of the press, television, radio or other media
      and shall not write any article for the press or otherwise for publication
      on any matter connected with or relating to the business of the Company or
      any Associated Company without obtaining the written approval of the
      Company.

            

    

     

    
      	
              17.  

            	
              Copyright,
      Inventions and Patents

            

    

     

    
      	
              17.1  

            	
              The
      Employee shall promptly disclose to the Company all copyright works or
      designs originated (including, without limitation, laboratory or
      production reports, manuals and related materials) conceived, written or
      made by the Employee alone or with others during the Employment (the
      “Works”) and shall hold them in trust for the Company until such rights
      shall be fully and absolutely vested in the
  Company.

            

    

     

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    
      	
              17.2  

            	
              The
      Employee hereby assigns to the Company by way of future assignment all
      copyright, design right and other proprietary rights (if any) for the full
      terms thereof throughout the world in respect of all
  Works.

            

    

     

    
      	
              17.3  

            	
              The
      Employee hereby irrevocably and unconditionally waives in favour of the
      Company any and all rights conferred on the Employee (whether before, on
      or after the date hereof) by Chapter IV of Part I of the Copyright,
      Designs and Patents Act 1988 in connection with the authorship of any
      Works during the course of the Employment, wherever in the world
      enforceable, including without limitation the right to be identified as
      the author of such Works and the right not to have such Works subjected to
      derogatory treatment.

            

    

     

    
      	
              17.4  

            	
              The
      Employee acknowledges that, for the purpose of the proviso to section 2
      (1) of the Registered Designs Act 1949 (as amended), the covenants on the
      part of the Employee and the Company will be treated as good consideration
      and the Company will be the proprietor of any design which forms part of
      the Works.

            

    

     

    
      	
              17.5  

            	
              The
      Employee shall, at the request and expense of the Company, do all things
      necessary or desirable to substantiate the rights of the Company to or in
      respect of any Works.

            

    

     

    
      	
              17.6  

            	
              The
      Company and the Employee acknowledge and accept the provisions of Sections
      39 to 42 of the Patents Act 1977 (the “Act”) relating to the ownership of
      employees’ inventions and the compensation of employees for certain
      inventions.

            

    

     

    
      	
              17.7  

            	
              The
      Employee acknowledges and agrees that, by virtue of the nature of the
      Employee’s duties and responsibilities under this Employment Agreement,
      the Employee has a special obligation to further the interests of the
      Company within the meaning of Section 39(1)(b) of the
  Act.

            

    

     

    
      	
              17.8  

            	
              If
      at any time during the Employment the Employee (whether alone or with any
      other person or persons) makes any improvement, invention or discovery
      which relates either directly or indirectly to the business of the Company
      or any Associated Company (“Invention”), the Employee shall promptly
      disclose to the Company full details, including drawings and models, of
      such Invention to enable the Company to determine whether or not it is a
      Company Invention.

            

    

     

    
      	
              17.9  

            	
              If
      the Invention is a Company Invention, the Employee shall hold it in trust
      for the Company and, at the request and expense of the Company, do all
      things necessary or desirable to enable the Company or its nominee to
      obtain for itself the full benefit of and to secure patent, registered
      design or other appropriate forms of protection for the Company Invention
      throughout the world and when so obtained or vested, to renew and maintain
      the same.

            

    

     

    
      	
              17.10

            	
              With
      respect to any rights in any Invention which is not a Company Invention
      (collectively “Employee Rights”), the Employee will, at the request and
      expense of the Company (and notwithstanding the termination of the
      Employment) forthwith license or assign (as determined by the Company) to
      the Company on an exclusive basis the Employee Rights and shall deliver
      to the Company all documents and other materials relating to any such
      Invention and, where appropriate, do all things necessary or desirable to
      enable the Company or its nominee to obtain for itself
  the

            

    

     

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    
      	 	full benefit
      of and to secure patent, registered design or other appropriate forms of
      protection for the Company in respect of the same throughout the world and
      when so obtained or vested, to renew and maintain the same.  The
      Company shall pay to the Employee such compensation for any such licence
      or assignment as the Company shall determine in its sole discretion,
      subject to Section 40 of the
Act. 

    

     

    
      	
              17.11  

            	
              The
      Employee irrevocably appoints the Company as attorney in the Employee’s
      name and on the Employee’s behalf (and notwithstanding the termination of
      the Employment) to execute documents, to use the Employee’s name and to do
      all things which may be necessary or desirable for the Company to obtain,
      renew and maintain for itself or its nominee the full benefit of the
      provisions of Clauses 17.9 and 17.10 above and a certificate in writing
      signed by any officer of the Company that any instrument or act falls
      within the authority hereby conferred shall be conclusive evidence that
      such is the case so far as any third party is
  concerned.

            

    

     

    
      	
              17.12  

            	
              The
      Employee shall at the request and expense of the Company (and
      notwithstanding the termination of the Employment) sign and execute all
      such documents and do all such acts as the Company may reasonably
      require:

            

    

     

    
      	 	
              17.12.1  

            	
              to
      contest any objection or opposition to the Company obtaining, and any
      petitions or applications for revocation of any Company Invention or other
      Invention licensed or assigned to the Company under this Clause
      17;

            

    

     

    
      	 	
              17.12.2  

            	
              to
      bring any proceedings for infringement of any Company Invention or other
      Invention licensed or assigned to the Company under this Clause 17;
      and

            

    

     

    
      	 	
              17.12.3  

            	
              otherwise
      to give effect to the assignments, waivers or licences contemplated under
      this Clause 17.

            

    

     

    
      	
              17.13  

            	
              Decisions
      as to the patenting and exploitation of any Company Invention or other
      Invention licensed or assigned to the Company under this Clause 17 shall
      be at the sole discretion of the Company and the Company hereby reserves
      the right to work any of such Inventions as a secret process in which
      event the Employee shall observe the obligations relating to Confidential
      Information which are contained in Clause 16 of this Employment
      Agreement.

            

    

     

    
      	
              18.  

            	
              Data
      Protection

            

    

     

    
      	
              18.1  

            	
              The
      Employee acknowledges that the Company will hold personal data relating to
      the Employee.  Such data will include the Employee’s name,
      employment application, address, references, bank details, performance
      appraisals, work, holiday and sickness records, next of kin, salary
      reviews, remuneration details and other records (which may, where
      necessary, include sensitive data relating to the Employee’s health, and
      data held for equal opportunities purposes).  The Company will
      hold such personal data for personnel administration and management
      purposes and to comply with its obligations regarding the retention of
      employee/worker records.  The Employee’s right of access to such
      data is as prescribed by law.

            

    

     

    
      	
              18.2  

            	
              The
      Employee hereby undertakes and agrees that the Company may process
      personal data relating to the Employee for personnel administration and
      

            

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    
      	 	
               management
      purposes, and may, when necessary for those purposes, make such data
      available to its advisors, to third parties providing products and/or
      services to the Company, (such as IT systems suppliers, pension, benefits
      and payroll administrators), to regulatory authorities (including the
      Inland Revenue), and as required by law. Further, the Employee hereby
      agrees that the Company may transfer such data to and from its Associated
      Companies, both in the United Kingdom and in the United States of
      America.  By signing this Employment Agreement, the Employee
      expressly consents to the collection, transfer and use of such data in
      accordance with this Clause 18.

            

    

     

    
      	
              19.  

            	
              Post-Termination
      Obligations

            

    

     

    
      	
              19.1  

            	
              The
      Employee agrees to observe the post-termination obligations set out in
      Schedule I hereto.

            

    

     

    
      	
              19.2  

            	
              The
      Employee agrees that in the event of the Employee receiving from any
      person, company, business entity or other organisation an offer of
      employment either during the continuance of this Employment Agreement or
      during the continuance in force of any of the restrictions set out in
      Schedule I hereto, the Employee will forthwith provide to such person,
      company, business entity or other organisation making such offer of
      employment a full and accurate copy of this Employment
      Agreement.

            

    

     

    
      	
              20.  

            	
              Termination

            

    

     

    
      	
              20.1  

            	
              Notwithstanding
      Clause 2 above, the Company may terminate the Employment without notice
      and without pay in lieu of notice in the event that the Employee is guilty
      of serious misconduct.  Conduct which justifies such termination
      of the Employment shall include, but will not be limited to, the
      following:

            

    

     

    
      	 	
              20.1.1  

            	
              the
      Employee being guilty of dishonesty, gross misconduct, gross incompetence,
      gross negligence, wilful neglect of duty or any other serious breach of
      this Employment Agreement; or

            

    

     

    
      	 	
              20.1.2  

            	
              conduct
      by the Employee (whether in the course of the Employee’s duties or
      otherwise) which is likely to bring the Employee, the Company or any
      Associated Company into disrepute or prejudice the interests of the
      Company or of any Associated Company;
or

            

    

     

    
      	 	
              20.1.3  

            	
              the
      Employee being, for an aggregate period of one hundred and twenty (120)
      days or more in any period of twelve (12) consecutive months, incapable of
      performing the Employee’s duties hereunder by reason of ill health or
      other incapacity whether accidental or otherwise;
  or

            

    

     

    
      	 	
              20.1.4  

            	
              below
      standard performance by the Employee of the Employee’s duties, following a
      written warning from the Company relating to the same;
  or

            

    

     

    
      	 	
              20.1.5  

            	
              the
      Employee being convicted of an indictable offence;
  or

            

    

     

    
      	 	
              20.1.6  

            	
              the
      Employee being guilty of indecent and/or immoral acts, including
      victimisation or sexual harassment of colleagues or others;
    or

            

    

     

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              20.1.7  

            	
              the
      Employee, directly or indirectly, advising, participating or acting in
      concert (within the meaning of the City Code on Take-Overs and Mergers)
      with any person who makes, or is considering making, any offer for the
      issued share capital of the
Company.

            

    

     

    
      	 	 Any
      delay by the Company in exercising any right of termination under this
      Clause 20 shall not constitute a waiver
  thereof.

    

     

    
      	
              20.2  

            	
              The
      normal retirement age for men and women employees of the Company is
      sixty-five.  Subject to earlier termination pursuant to the
      terms of this Employment Agreement, the Employment shall be deemed to have
      terminated automatically and by mutual consent on the date the Employee
      reaches that age.  For the avoidance of doubt, if the Employment
      terminates pursuant to this Clause 20.2, the Company shall pay the
      Employee’s remuneration and benefits up to and including the date of the
      Employee’s sixty-fifth birthday and thereafter no amounts shall be due and
      owing from the Company to the
Employee.

            

    

     

    
      	
              20.3  

            	
              On
      termination of the Employment, the Employee shall forthwith return to the
      Company in accordance with the Company’s instructions all equipment,
      correspondence, records, specifications, software, models, notes, reports
      and other documents and any copies thereof and any other property
      belonging to the Company and/or its Associated Companies (including, but
      not limited to, any mobile telephone , keys, credit cards and passes)
      which are in the Employee’s possession or control.  The Employee
      shall, if so required by the Company, confirm in writing compliance with
      the obligations under this Clause
20.3.

            

    

     

    
      	
              20.4  

            	
              The
      Employee hereby agrees that the Company may in its absolute
      discretion:

            

    

     

    
      	 	
              20.4.1  

            	
              pay
      to the Employee a Compensation Payment in lieu of all or any part of any
      notice of termination of employment (irrespective of whether such notice
      of termination is given by the Employee or the Company) (to which, for the
      avoidance of doubt, the Employee shall have no entitlement unless and
      until the Company notifies the Employee in writing of its decision to make
      such Compensation Payment to the Employee);
or

            

    

     

    
      	 	
              20.4.2  

            	
              require
      the Employee not to attend work and/or not to undertake all or any of the
      Employee’s normal duties under this Employment Agreement during all or any
      part of any period of notice (irrespective of whether such notice is given
      by the Employee or the Company), PROVIDED ALWAYS that the Company shall
      continue to pay the Employee’s salary and contractual
      benefits  during any such
period.

            

    

     

    
      	
              20.5  

            	
              The
      Company shall have the right to suspend the Employee on full pay
      pending  any investigation into any potential dishonesty, gross
      misconduct or any other circumstances which may give rise to a right for
      the Company to terminate the Employment pursuant to Clause 20.1
      above.  Any such suspension will not be considered as
      disciplinary action by the Company.

            

    

     

    
      	
              20.6  

            	
              The
      termination of the Employment shall be without prejudice to any right of
      the Company in respect of any breach by the Employee of any of the
      provisions of this Employment Agreement which may have occurred prior to
      such termination.

            

    

     

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    
      	
              21.  

            	
              Grievance
      and Disciplinary Procedures

            

    

     

    
      	
              21.1  

            	
              If
      the Employee has any grievance relating to the Employment, the Employee
      should proceed in accordance with the Company’s grievance procedures in
      force from time to time details of which can be obtained from the
      Company.  If the matter remains unresolved, the Employee should
      raise the matter in writing with
  the  President.

            

    

     

    
      	
              21.2  

            	
              In
      the event of any disciplinary action relating to the Employee, the
      Employee should proceed in accordance with the Company’s disciplinary
      procedures in force from time to time details of which can be obtained
      from the Company.  If the Employee is dissatisfied with any
      disciplinary decision relating to the Employee, the matter should be
      raised with the President

            

    

     

    
      	
              21.3  

            	
              Neither
      the grievance procedure nor the disciplinary procedure are contractually
      binding on the Company and it may, at its discretion, omit all or any of
      the stages of either or both
procedures.

            

    

     

    
      	
              22.  

            	
              Prescribed
      Information

            

    

     

    
      	
               
      

            	
              There
      are no collective agreements which directly affect the terms and
      conditions of the Employment.

            

    

     

    
      	
              23.  

            	
              Severability

            

    

     

    
      	 	
              The various
      provisions and sub-provisions of this Employment Agreement and the
      Schedules attached hereto are independent and severable and if any
      provision, sub-provision, Schedule or identifiable part thereof is held to
      be invalid or unenforceable by any court of competent jurisdiction then
      such invalidity or unenforceability shall not affect the validity or
      enforceability of the remaining provisions, sub-provisions, Schedules or
      identifiable parts thereof of this Employment Agreement or the Schedules
      attached hereto.

            

    

     

    
      	
              24.  

            	
              Notices

            

    

     

    
      	
              24.1  

            	
              Any
      notice to be given hereunder shall be delivered (i) in the case of the
      Company by first class post addressed to the Company’s Registered Office
      for the time being and (ii) in the case of the Employee, either to the
      Employee personally or by first class post to the Employee’s last known
      address.  The Employee shall from time to time promptly furnish
      the Company with details of any change in the Employee’s current
      address.

            

    

     

    
      	
              24.2  

            	
              Notices
      served personally shall be deemed delivered on such service and notices
      served by post shall be deemed delivered on the second business day after
      the date of posting.  For the purposes of this Clause, “business
      day” means a day on which banks are open for business in the place of both
      the posting and the address of the
notice.

            

    

    
      
        
           

        

         

      

      
        -12- 

        
          

        

      

      
         

      

    

     

    
      	
              25.  

            	
              Definitions

            

    

     

    
      	 	 In
      this Employment Agreement the following terms and expressions shall have
      the meanings set out below:

    

     

    
      	
              25.1  

            	
              an
      “Associated Company” includes, without limitation, Teltronics, Inc. and
      its subsidiaries, and any firm, company, corporation or other
      organisation:

            

    

     

    
      	 	
              25.1.1  

            	
              which
      is directly or indirectly controlled by the Company;
  or

            

    

     

    
      	 	
              25.1.2  

            	
              which
      directly or indirectly controls the Company;
or

            

    

     

    
      	 	
              25.1.3  

            	
              which
      is under direct or indirect common control with the Company;
      or

            

    

     

    
      	 	
              25.1.4  

            	
              of
      which the Company or any other Associated Company owns or has a beneficial
      interest in 20% or more of the issued share capital or 20% or more of its
      capital assets; or

            

    

     

    
      	 	
              25.1.5  

            	
              is
      the successor in title or assigns of the firms, companies, corporations or
      other organisations referred to
above.

            

    

     

    
      	
               
      

            	
              For
      the purpose of this Clause 25, a Company shall be regarded as in control
      of another company if it owns directly or indirectly more than 50% of the
      voting stock or other ownership or economic interest of the other company
      or if it directly or indirectly possesses the power to direct or cause the
      direction of the management and policies of the other company by any means
      whatsoever.

            

    

     

    
      	
              25.2  

            	
              “Company
      Invention” means any improvement, invention or discovery made by the
      Employee which, applying the provisions of Section 39 of the Patents Act
      1977 in the determination of ownership is, as between the parties, the
      property of the Company.

            

    

     

    
      	
              25.3  

            	
              “Compensation
      Payment” means a sum calculated as follows:

               

            
	 	 	
              
                
                  A
      x £B

                  253 

                

              

            

    

     

    
      	 	
               
      “A”

            	
              is
      the number of days of the Employee’s notice of termination of employment
      (i) to which the Employee is entitled under Clause 2.1 above; or (ii)
      where the notice period has already commenced, the number of days of such
      notice period which remain
outstanding;

            

    

     

    
      	 	
               
      “B”

            	
              is
      the Employee’s annual basic salary referred to in Clause 6.1 above on the
      date when the Employee is notified in writing by the Company that it will
      be making a Compensation Payment.  For the avoidance of doubt,
      this shall not include the value of any benefits, bonus/incentive,
      commission, or holiday entitlement which would have accrued to the
      Employee had the Employee been employed until the expiry of the notice
      period under Clause 2.1 above.

            

    

     

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    
      	
              25.4  

            	
              “Confidential
      Information” means all and any Corporate Information, Marketing
      Information, Technical Information and other information (whether or not
      recorded in documentary form) to which the Company or any Associated
      Company attaches an equivalent level of confidentiality or in respect of
      which it owes an obligation of confidentiality to any third party (i)
      which the Employee shall acquire at any time during the Employment, but
      which does not form part of the Employee’s stock in trade; and (ii) which
      is not readily ascertainable by persons not connected with the Company or
      any Associated Company.

            

    

     

    
      	
              25.5  

            	
              “Corporate
      Information” means all and any information (whether or not recorded in
      documentary form or on computer disk or tape) relating to the business
      methods, corporate plans, strategic plans and forecasts, management
      systems, organisation and management of the Company, or any Associated
      Company, its finances and any maturing new business opportunities or
      research and development projects of the Company or any Associated
      Company.

            

    

     

    
      	
              25.6  

            	
              “Immediate
      Relatives” shall include any grandparent, spouse, child, step-child,
      adopted child, grandchild, parent or spouse’s parent; or any child,
      step-child, adopted child, grandchild of any such person; or any spouse of
      any of the foregoing and for the purposes of this definition “spouse”
      includes de
      facto spouses or
co-habitees.

            

    

     

    
      	
              25.7  

            	
              “Marketing
      Information” means all and any information (whether or not recorded in
      documentary form or on computer disk or tape) relating to the marketing or
      sales of any past, present or future service of the Company or any
      Associated Company, including, without limitation, sales targets and
      statistics, market share and pricing statistics, marketing surveys and
      plans, market research reports, sales techniques, price lists, discount
      structures, advertising and promotional material, buying habits, the
      names, addresses, telephone numbers, contact names and identities of
      customers and potential customers of and suppliers and potential suppliers
      to the Company or any Associated Company, the nature of their business
      operations, products, services, programs and processes sold, licensed and
      developed by the Company or any Associated Company, their requirements for
      any service sold to or purchased by the Company or any Associated Company
      and all confidential aspects of their business relationship with the
      Company or any Associated Company.

            

    

     

    
      	
              25.8  

            	
              “Technical
      Information” means all and any trade secrets, secret formulae, processes,
      inventions, improvements, designs, know-how discoveries, computer
      programs, systems and/or software, source materials, integrated systems,
      ideas, trademarks, technical specifications and other technical
      information (whether or not recorded in documentary form or on computer
      disk or tape) relating to the supply of any past, present or future
      service of the Company or any Associated
  Company.

            

    

     

    
      	
              25.9  

            	
              “Termination
      Date” shall mean the date upon which the Employment
      terminates.

            

    

     

    
      	
              26.  

            	
              Construction

            

    

     

    
      	
              26.1  

            	
              The
      provisions of Schedule I and Schedule II hereto and any additional terms
      endorsed in writing by or on behalf of the parties hereto shall be read
      and construed as part of this Employment Agreement and shall be
      enforceable accordingly.

            

    

     

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    
      	
              26.2  

            	
              The
      benefit of each agreement and obligation of the Employee under
      Clause 16 and Schedule I of this Employment Agreement may be assigned
      to and enforced by all successors and assigns of the Company from time to
      time and such agreements and obligations shall operate and remain binding
      notwithstanding the termination of this Employment Agreement, howsoever
      arising.

            

    

     

    
      	
              27.  

            	
              Prior
      Agreements 

               

              
                This Employment
      Agreement supersedes all previous letters of engagement, agreements and
      arrangements (whether oral or in writing) relating to the subject-matter
      hereof between the Company and the Employee, all of which will be deemed
      to have been terminated by mutual consent.  This Employment
      Agreement constitutes the entire terms and conditions relating to the
      Employment and no waiver or modification hereof shall be valid unless in
      writing, signed by the parties hereto and only to the extent therein set
      forth.

              

            

    

     

    
      	
              28.  

            	
              Governing
      Law

               

              This Employment Agreement is governed by and
      construed in accordance with the laws of England and the parties hereby
      submit to the exclusive jurisdiction of the English
  Courts.

            

    

     

     

     

    IN
WITNESS WHEREOF
the parties hereto have executed this Employment Agreement as a Deed.

     

     

    
    

     

    
      	 /s/ DUNCAN J. ANDERSON	 
	SIGNED by Duncan J.
      Anderson	 )
	and delivered as a
      Deed	 )
	in the presence
      of:   /s/ R.
      Powell          	 )

    

     

    
    

     

    
      	 /s/ EWEN R. CAMERON	 
	SIGNED and DELIVERED
      for and	 )
	on behalf of
      Teltronics Limited	 )
	by Ewen R.
      Cameron,  Chairman	 )
	of the said
      Company	 )

    

     

    
      
        
           

        

         

      

      
        -15- 

        
          

        

      

      
         

      

    

     

    SCHEDULE
I

     

     

    
      	
              1.  

            	
              Non-Solicitation
      of Customers

            

    

     

    As a
material term of this Employment Agreement and in order to protect the goodwill,
the client and vendor relations, the Confidential Information, the competitive
business advantage of the Company and the Company’s investment in the training
and education of its employees, the Employee hereby agrees that, during the
Employment and for a
period of six (6) months immediately following the Termination Date, the
Employee shall not, within the Restricted Area, directly or indirectly, either
individually or on behalf of or with any person, organization or entity and so
as to be in competition with the Business: 

     

    
      	
              1.1  

            	
              in
      any capacity whatsoever, solicit or facilitate the solicitation of, any
      business, orders or custom for any service which competes with the
      Restricted Services from any Customer;
or

            

    

     

    
      	
              1.2  

            	
              in
      any capacity whatsoever, accept or facilitate the acceptance of, orders
      for any service which competes with the Restricted Services from any
      Customer;

            

    

     

    in each
case unless first obtaining the prior written permission of the
Company.

     

    
      	
              2.  

            	
              Non-Competition

            

    

     

    The
Employee hereby agrees that the Employee will not, directly or indirectly, for a
period of six (6) months following the Termination Date:

     

    
      	
              2.1  

            	
              hold
      any Material Interest in any business which is or shall be wholly or
      partly in competition within the Restricted Area with any of the
      Businesses; or

            

    

     

    
      	
              2.2  

            	
              hold
      any Material Interest in any person, firm or company which requires or
      might reasonably be thought by the Company to require the Employee to
      disclose or make use of any Confidential Information in order properly to
      discharge the Employee’s duties or to further the Employee’s interest in
      such person, firm or company.

            

    

     

    
      	
              3.  

            	
              Non-Solicitation
      of Employees

            

    

     

    The
Employee hereby agrees that the Employee will not for a
period of six (6)  months immediately following the Termination Date
either on the Employee’s own behalf or in conjunction with or on behalf of any
other person, company, business entity, or other organisation (and whether as an
employee, director, principal, agent, consultant or in any other capacity
whatsoever), directly or indirectly:

     

    
      	
              3.1  

            	
              induce,
      solicit, entice, or procure any person who is a Company Employee to leave
      the Company’s employment where that person is a Company Employee as at the
      Termination Date; or

            

    

     

    
      	
              3.2  

            	
              be
      personally involved to a material extent in accepting into employment or
      otherwise engaging or using the services of, any person who is a Company
      Employee as at the Termination
Date.

            

    

     

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    
      	
              4.  

            	
              Associated
      Companies

            

    

     

    
      	
              4.1  

            	
              The
      provisions of paragraphs 4.2 and 4.3 below shall apply solely in respect
      of those Associated Companies (i) to whom the Employee provided services
      under the terms of this Employment Agreement or (ii) for whom the Employee
      was responsible, or (iii) with whom the Employee was otherwise concerned,
      during the period of one year immediately preceding the Termination
      Date.

            

    

     

    
      	
              4.2  

            	
              Save
      in the case of this paragraph 4, the paragraphs and defined terms in this
      Schedule I shall, in addition to their application to the Company, apply
      as though references to the “Associated Company” were substituted for
      references to the “Company”.  The obligations undertaken by the
      Employee pursuant to this Schedule I shall, with respect to each
      Associated Company, constitute a separate and distinct covenant and the
      invalidity or unenforceability of any such covenant shall not affect the
      validity or enforceability of the covenants in favour of the Company or
      any other Associated Company.

            

    

     

    
      	
              4.3  

            	
              In
      relation to each Associated Company referred to in paragraphs 4.1 and 4.2
      above, the Company contracts as trustee and agent for the benefit of each
      such Associated Company. The Employee agrees that, if required to do so by
      the Company, the Employee will enter into express covenants on the same
      terms as those set out in paragraphs 1, 2 and 3 hereof directly with all
      or any of such Associated Companies, mutatis
      mutandis. If the Employee fails, within seven (7) days of receiving
      such a request from the Company, to sign the necessary documents to give
      effect to the foregoing, the Company shall be entitled, and is hereby
      irrevocably and unconditionally authorised by the Employee, to execute all
      such documents as are required to give effect to the foregoing on the
      Employee’s behalf.

            

    

     

    
      	
              5.  

            	
              Definitions

            

    

     

    For the
purposes of this Schedule I, the following terms and expressions shall have the
meanings set out below:

     

    
      	
              5.1  

            	
              “Businesses”
      means all and any trades or other commercial activities of the
      Company:

            

    

     

    
      	 	 (a)	
               
      

            	
              with
      which the Employee shall have been concerned or involved to any material
      extent at any time during the final two years of the Employment which the
      Company shall carry on with a view to profit;
or

            

    

     

    
      	 	
               
      (b)

            	
              which
      the Company shall at the Termination Date carry on with a view to profit
      or have determined to carry on with a view to profit in the immediate or
      foreseeable future and in relation to which the Employee shall at the
      Termination Date possess any Confidential
  Information.

            

    

     

    
      	
              5.2  

            	
              “Company”
      and “Associated Company” shall be as defined in the Employment Agreement,
      and shall include their successors in title and
  assigns.

            

    

     

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    
      	
              5.3  

            	
              “Company
      Employee” means any person who was employed by the Company for at least
      three (3) months prior to and on the Termination Date and with whom the
      Employee had material contact or dealings in performing the duties of the
      Employment.

            

    

     

    
      	
              5.4  

            	
              “Customer”
      means any person, firm or company:

            

    

     

    
      	 	
              5.4.1  

            	
              with
      whom or which the Employee or anyone working under the Employee’s control
      or supervision has had material contact or dealings on behalf of the
      Company during the period of one year prior to the Termination Date;
      or

            

    

     

    
      	 	
              5.4.2  

            	
              for
      whom the Employee was directly responsible in a client management capacity
      on behalf of the Company during the period of one year prior to the
      Termination Date and who or which shall at the Termination Date be
      negotiating with the Company for the provision of any Restricted Services
      or to whom or which the Company has provided any Restricted
      Services.

            

    

     

    
      	
              5.5  

            	
              "Material
      Interest" means:

            

    

     

    
      	 	
              5.5.1  

            	
              the
      holding of any position as director, officer, employee, consultant,
      partner, principal or agent;

            

    

     

    
      	 	
              5.5.2  

            	
              the
      direct or indirect control or ownership (whether jointly or alone) of any
      shares (or any voting rights attached to them) or debentures save for the
      ownership for investment purposes only of up to 5% of any securities in a
      company which is quoted on any Recognised Investment Exchange (as defined
      in Section 207 of the Financial Services Act 1986 or any equivalent
      provision under any superseding legislation);
or

            

    

     

    
      	 	
              5.5.3  

            	
              the
      direct or indirect provision of any financial
  assistance.

            

    

     

    
      	
              5.6  

            	
              “Restricted
      Area” means the United Kingdom and any country in which the Company
      carries on or intends to carry on any of the Businesses as at the
      Termination Date.

            

    

     

    
      	
              5.7  

            	
              “Restricted
      Services" means the provision, support and servicing of software for
      telecommunications account management as carried on by the Company in the
      ordinary course of business.

            

    

     

    
      	
              5.8  

            	
              “Termination
      Date” shall have the meaning set out in Clause 25 of the Employment
      Agreement.

            

    

    
      
        
           

        

         

      

      
        -18-

        
          

        

      

      
         

      

    

    SCHEDULE
II

     

    Conflict
of Interest

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      -19-

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