Exhibit 99.2
ASSIGNMENT AND ASSUMPTION AGREEMENT (US)
This ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Agreement"), dated as of
January 21, 2005, is entered into by and between Citel Technologies, Inc., a
Delaware corporation ("Purchaser"), and Verso Technologies, Inc., a Minnesota
corporation, MCK Communications, Inc., a Nevada corporation, MCK Communications,
Inc., a Delaware corporation, MCK Telecommunications Inc., a Yukon Territory
corporation, and Digital Techniques, Inc., a Texas corporation (collectively,
"Sellers"), pursuant to the Asset Purchase Agreement (as amended, supplemented
or otherwise modified from time to time in accordance with its terms, the "Asset
Purchase Agreement"), dated as of January 21, 2005, by and among Purchaser,
Sellers, Citel Technologies Limited, company number 02459517, a corporation
organized under the laws of England and Wales, and MCK Canada Operations Inc., a
corporation organized under the laws of British Columbia. Each of the Purchaser
and Sellers is referred to herein individually as a "Party" and together as the
"Parties." Capitalized terms used herein but not defined herein shall have the
meanings set forth in the Asset Purchase Agreement.
RECITALS:
WHEREAS, pursuant to Section 2.1(j) of the Asset Purchase Agreement,
Sellers and Purchaser have agreed that the Purchaser shall purchase, acquire,
accept and assume from Sellers, all of each Seller's right, title and interest
in, to and under, and all obligations under or relating to, the Contracts set
forth on Annex A hereto (the "Assigned Contracts"); and
WHEREAS, pursuant to Section 3.1 of the Asset Purchase Agreement and
subject to Section 3.2 thereto, Sellers and Purchaser have agreed that the
Purchaser shall assume and become liable for each of the Liabilities set forth
on Annex B hereto (the "Assumed Liabilities").
NOW THEREFORE, in consideration of the mutual promises and covenants set
forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged and accepted, each Party
hereby agrees as follows:
1. Assignment and Assumption of Assigned Contracts. Upon the terms and
subject to the condition set forth in the Asset Purchase Agreement from and
after the Closing, (a) each Seller does hereby assign and delegate to Purchaser
all of such Seller's right, title and interest in, to and under, and all
obligations under or relating to, the Assigned Contracts and (b) Purchaser does
hereby assume and agrees to pay, defend, discharge and perform as and when due
all Liabilities and obligations to perform arising under or relating to each of
the Assigned Contracts, except Liabilities, even if arising post-Closing, for
performance under the Assigned Contracts prior to Closing.
2. Assumption of Assumed Liabilities. Upon the terms and subject to the
condition set forth in the Asset Purchase Agreement, Purchaser does hereby
assume, and from and after the Closing shall be obligated to pay, perform and
discharge when due the Assumed Liabilities. Purchaser assumes no Excluded
Liabilities, and the parties hereto agree that all such Excluded Liabilities
shall remain the sole responsibility of Sellers.
Assignment and Assumption Agreement (US)
1
3. Relationship to Asset Purchase Agreement. Sellers make no express or
implied representations or warranties in this Agreement of any kind whatsoever
with respect to the Assigned Contracts. This Agreement in no way defeats,
limits, alters, impairs, enhances or enlarges any right, obligation, claim or
remedy under the Asset Purchase Agreement, including any rights the Parties may
have under the representations, warranties and indemnities set forth therein. If
any provision of this Agreement is construed to conflict with a provision of the
Asset Purchase Agreement, the provision in the Asset Purchase Agreement shall be
deemed controlling.
4. Governing Law; Waiver of Jury Trial. This Agreement shall be governed
by, and interpreted in accordance with, the laws of the State of New York
applicable to contracts made and to be performed entirely within that State,
without reference to its conflict of laws rules. Each of the Sellers and
Purchaser irrevocably consents to the service of process in any action or
proceeding hereunder by the mailing of copies thereof by registered or certified
airmail, postage prepaid, to the address specified in Section 15.4 of the Asset
Purchase Agreement. The foregoing shall not limit the rights of any Party to
serve process in any other manner permitted by applicable law or regulation or
to obtain execution of judgment in any other jurisdiction.
5. Binding Effect; Assignment: No Third Party Beneficiary. Except as
otherwise expressly provided herein, the provisions hereof shall inure to the
benefit of, and be binding upon, each of the Sellers and Purchaser and its
respective successors and assigns. Neither this Agreement nor any rights
hereunder shall be assignable by any Party without the prior written consent of
the other Party. This Agreement is for the sole benefit of the Parties and their
respective successors and permitted assigns and nothing herein, express or
implied, is intended or shall confer upon any other person or entity any legal
or equitable right, benefit or remedy of any nature whatsoever under or by
reason of this Agreement.
6. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to constitute an original, but all
of which together shall constitute one and the same document.
[Remainder of Page Intentionally Left Blank]
Assignment and Assumption Agreement (US)
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IN WITNESS WHEREOF, the Parties have caused this Assignment and Assumption
Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.
SELLERS:
Verso Technologies, Inc. MCK Communications, Inc. (NV)
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-------------------------------- ------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
------------------------------ ----------------------------
Title: Executive Vice President Title: Vice President
and Chief Financial Officer ---------------------------
-----------------------------
MCK Communications, Inc. (DE) MCK Telecommunications Inc.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-------------------------------- ------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
------------------------------ ----------------------------
Title: Vice President Title: President
----------------------------- ---------------------------
Digital Techniques, Inc.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
------------------------------
Title: Vice President
-----------------------------
PURCHASER:
Citel Technologies, Inc.
By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
------------------------------
Title: Chief Executive Officer,
President and Secretary
-----------------------------
Assignment and Assumption Agreement (US)
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ANNEX A
ASSIGNED CONTRACTS
SCHEDULE 2.1(j): CONTRACTS - The Assigned Contracts are those identified with an
X in the Purchased Asset column.
ACTIVE (NON-DTI)
ACCOUNT MCK
TYPE NUMBER PARTY COUNTERPARTY
---- ------ ----- ------------
Development/manufacturing MCK-NV ABS Business Systems (Alcatel)
OEM ALC003 MCK-? Alcatel Business Systems
Distributor ANI006 MCK-NV Anixter Canada
Distributor ANI010 MCK-NV Anixter Europe Holdings B.V.
Reseller BCS001 MCK-NE BellSouth Communication Systems, LLC
Value Add Distributor MCK-▇▇ ▇▇▇▇▇ Electronics Plc
Distributor MCK-NV Dacon Electronics Plc
OEM MCK-NV Dictaphone Corporation
Value Add Distributor DIG013 MCK-DE Digital Techniques (Asia) Limited
OEM MCK-DE Ericsson Business Networks AB
Distributor GBH002 MCK-DE GBH Distributing, Inc.
Value Add Distributor IME001 MCK-DE Imeco Telecom Inc.
Distributor MCK-DE Iwatsu America, Inc.
Distributor NEC001 MCK-DE NEC America, Inc.
Distributor MCK-NV NEC America, Inc.
Product Development MCK-NV NEC Corporation and NEC America, Inc.
AGREEMENT PURCHASED EXCLUDED CONSENT
ACCOUNT DATE ASSET ASSET REQUIRED
TYPE NUMBER MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
---- ------ -------- --------------- ------------ ------------
Development/manufacturing 04/27/99 X Yes
OEM ALC003 11/14/00 X Yes
Distributor ANI006 06/10/99 X No
Distributor ANI010 06/3/01,05/12/04 X No
amendment
Reseller BCS001 09/11/98 X Yes
Value Add Distributor 03/05/02 X No
Distributor 01/14/99 X No
OEM 03/03/98 X Yes
Value Add Distributor DIG013 07/02/02 X No
OEM 08/01/00 X No
Distributor GBH002 10/26/01 X No
Value Add Distributor IME001 07/31/02 X No
Distributor 07/31/00 X Yes
Distributor NEC001 01/25/00 X Yes
Distributor 01/22/99 X Yes
Product Development 01/31/97 See note below* See note below* Yes
Assignment and Assumption Agreement (US)
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ACCOUNT MCK
TYPE NUMBER PARTY COUNTERPARTY
---- ------ ----- ------------
OEM MCK-DE Nitsuko America
Distributor SPR005 MCK-NV North Supply Company (Sprint)
Manufacturer MCK- ? OEM Worldwide LLC
Distributor MCK-DE Optus, Inc.
Distributor PAN002 Verso Panasonic Communications Company (UK) Ltd. and Panasonic
Business Systems
Distributor Verso Panasonic Communications Company (UK) Ltd. and Panasonic
Marketing Europe GmbH
OEM POS002 MCK-DE Positron Public Safety Systems, Inc.
Distributor SBC002 MCK-DE SBC Services, Inc.
Distribution CAT005 MCK-? ScanSource, Inc. d/b/a Catalyst Telecom
Distributor TEL119 MCK-DE TeleCorp, Inc.
Value Add Distributor TEL122 MCK-DE Teleswitch Communications, Inc.
Distributor TOS001 MCK-DE Toshiba America Information Systems, Inc.
Distributor VER012 MCK-? Verizon Network Integration Corp.
Master Support Agreement MCK- ? Vital Network Services, L.L.C.
Distributor VOD002 MCK-DE Voda One Corp.(nka Westcon Group Inc.)
Distributor WHI003 MCK-DE White Radio, a division of Cygnal Technologies Ltd.
Value Add Distributor WIL012 MCK-▇▇ ▇▇▇▇▇▇▇▇ Telecommunications Systems
AGREEMENT PURCHASED EXCLUDED CONSENT
ACCOUNT DATE ASSET ASSET REQUIRED
TYPE NUMBER MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
---- ------ -------- --------------- ------------ ------------
OEM 07/26/00 See note below* See note below* Yes
Distributor SPR005 02/01/99 X Yes
Manufacturer 08/29/03 X No
Distributor 02/01/02 X No
Distributor PAN002 04/15/04 X Yes
Distributor 04/15/04 X Yes
OEM POS002 01/31/01 X Positron has termination
right
Distributor SBC002 08/10/01 X Yes
Distribution CAT005 12/10/99 X Yes
Distributor TEL119 12/03/03 X No
Value Add Distributor TEL122 10/26/02 X No
Distributor TOS001 04/17/00 X Yes
Distributor VER012 03/11/02 X Yes
Master Support Agreement No date X No
Distributor VOD002 01/22/01 X Yes
Distributor WHI003 07/30/01 X No
Value Add Distributor WIL012 04/14/03 X No
Assignment and Assumption Agreement (US)
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INACTIVE (NON-DTI)
CONSENT
ACCOUNT MCK AGREEMENT DATE PURCHASED ASSET EXCLUDED ASSET REQUIRED
TYPE NUMBER PARTY COUNTERPARTY MM/DD/YY SCHEDULE 2.1(J) SCHEDULE 2.2 SCHEDULE 5.3
---- ------ ----- ------------ -------- --------------- ------------ ------------
Distributor NOR014 MCK-CA Northern Telecom Limited 07/17/95 See note below* See note below* Yes
REAL ESTATE LEASES
PURCHASED EXCLUDED CONSENT
MCK ASSET ASSET REQUIRED
AGREEMENT ADDRESS PARTY COUNTERPARTY DATE SCHEDULE 2.1(J) SCHEDULE 2.2 SCHEDULE 5.3
--------- ------- ----- ------------ ---- --------------- ------------ ------------
Phone switch letter ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ MCK-DE Upromise, Inc. X ?
agreement
DTI ACTIVE DISTRIBUTION AGREEMENTS (* SIGNIFIES NON-STANDARD AGREEMENT)
PURCHASED EXCLUDED CONSENT
ACCOUNT AGREEMENT ASSET ASSET REQUIRED
COUNTERPARTY NUMBER DATE MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
------------ ------ ------------- --------------- ------------ ------------
BellSouth Services Incorporated 05/01/94 X Yes
Canadian Communications Products, Inc. 07/12/93 X Yes
▇▇▇▇▇▇▇ Communications Systems Co. 08/01/93 X Yes
Dictaphone Corporation 01/12/98 X Yes
DTI Asia 10/04/99 X Yes
DTI Asia 04/21/98 X Yes
Goserco Inc. 08/08/00 X Yes
GTE Communication Systems Corporation* 10/01/96 X Yes
Oscar Communications, Pty. Ltd. 06/30/95 X Yes
Assignment and Assumption Agreement (US)
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PURCHASED EXCLUDED CONSENT
ACCOUNT AGREEMENT ASSET ASSET REQUIRED
COUNTERPARTY NUMBER DATE MM/DD/YY SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
------------ ------ ------------- --------------- ------------ ------------
Oscar Communications, Pty. Ltd. 07/15/94 X Yes
Southwestern ▇▇▇▇ (SBC) 05/01/94 X Yes
Sprint* 04/01/97 X Yes
Tanta Communication Systems 04/10/97 X Yes
Teleswitch Telecommunications 04/25/96 X Yes
Teleswitch Telecommunications 10/05/94 X Yes
▇▇▇▇▇▇▇▇ Telecommunications Systems, Inc. 07/11/96 X Yes
DTI ACTIVE OEM AGREEMENTS
AGREEMENT PURCHASED ASSET EXCLUDED ASSET CONSENT REQUIRED
COUNTERPARTY DATE SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
------------ ---- --------------- ------------ ------------
OEM Agreement between MCK-DE and Ascom
Wireless Solutions Inc. 08/21/00 X Yes
OEM Agreement between DTI and Dialogic 04/29/92 X Yes
Manufacturing and Supply Agreement
between DTI and Northern Telecom Limited 07/98 See note below* See note below* Yes
Manufacturing and Supply Agreement between
DTI and Northern Telecom Inc. 03/30/99 See note below* See note below* Yes
DTI INACTIVE OEM AGREEMENTS
AGREEMENT PURCHASED ASSET EXCLUDED ASSET CONSENT REQUIRED
COUNTERPARTY DATE SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
------------ ---- --------------- ------------ ------------
OEM Agreement between MCK-DE and Brooktrout
Technology, Inc. 10/25/00 X No
OEM Agreement between DTI and E/O Networks 11/18/95 X No
Development Agreement between DTI and
Northern Telecom Inc. 02/01/99 See note below* See note below* Yes
DTI Development Agreement between DTI and
Northern Telecom Ltd 07/15/97 See note below* See note below* Yes
OEM Agreement between DTI and Security
Dynamics 03/20/90 X Yes
Assignment and Assumption Agreement (US)
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DTI ACTIVE RESELLER AGREEMENTS
AGREEMENT PURCHASED ASSET EXCLUDED ASSET CONSENT REQUIRED
COUNTERPARTY DATE SCHEDULE 2.1(j) SCHEDULE 2.2 SCHEDULE 5.3
------------ ---- --------------- ------------ ------------
Anixter Inc. 03/11/99 X No
* Contracts marked with "*" denote agreements for which Buyers have up to 90
days after closing of the Purchase to request assignment of the contracts from
Sellers. Buyers shall notify Sellers in writing of their determination no later
than 90 days after closing of the Purchase. Sellers agree not to terminate these
contracts until the earlier of receipt of notification from Buyers or expiration
of the 90 day period. Notwithstanding the foregoing in this note, Buyers shall
have until January 27, 2005 to determine whether to assume the Manufacturing and
Supply Agreement between DTI and Northern Telecom Inc. dated March 30, 1999.
SCHEDULE 2.1(i): RIGHTS OF INDEMNITY
Certain contracts between certain of the Sellers and their customers and
vendors contain indemnity provisions. Purchaser will obtain the rights to such
indemnity provisions for contracts that are duly assigned to or assumed by
Purchaser.
Assignment and Assumption Agreement (US)
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ANNEX B
ASSUMED LIABILITIES
1. Any Liability arising after the Closing Date under the Contracts that are
included among the Assets in Annex A, other than any Liability arising out of or
relating to a Seller's breach of such Contract that occurred on or before the
Closing Date.
2. Accrued warranty obligations and deferred service revenue for the following
Contracts:
2.1 CUSTOMER DETAIL FOR ACCRUED WARRANTY OBLIGATIONS (SCHEDULE 3.1(b)
ESTIMATED
NET ▇▇▇▇▇▇▇▇
CUSTOMER ▇▇ ▇▇-▇▇-▇▇
-------- -----------
1099 PRO $ 29
A-1 TELETRONICS INC. $ 26,118
ABRIVO COMMUNICATIONS $ 28,030
ADVANCED BUSINESS COMMUNICATION $ 400
ADVANCED TELECOMMUNICATIONS $ 9,369
AFFILIATED TELEPHONE INC. $ 7,948
ALCATEL BUSINESS SYSTEMS $ 14,500
ALLIANCE TELECOM, LTD $ 620
ALL-MODE COMMUNICATIONS INC. $ 156
AMERICAN COMMUNICATIONS SUPPLY $ 1,617
AMERICAN HORIZONS BANK $ 1,275
AMG TECHNOLOGY LTD $ 4,225
AMTEC COMMUNICATIONS $ 520
ANIXTER CANADA, INC. $ 3,650
ANIXTER EUROPE $ 45,650
ANIXTER EUROPE (BE) $ 3,997
ANIXTER EUROPE (UK) $ 84,774
ANIXTER INC. $ 218,906
APPLIED BIOSYSTEMS $ 10,424
ARCOMM, INC $ 1,040
ASCOM WIRELESS SOLUTIONS INC $ 60,110
A-TECK TELECOM, INC $ 105
AUTOMATED TELECOM INC. $ (500)
AVAYA $ 18,770
AVAYA - ACCOUNTS PAYABLE PO $ 80,285
AVAYA INC. $ 809
AXESS COMMUNICATIONS $ 605
BADGER COMMUNICATIONS $ 1,900
▇▇▇▇▇ COMMUNICATIONS $ 68,705
▇▇▇▇▇▇ SYSTEMS $ ▇▇▇
▇▇▇ ▇▇▇▇ RAPID TRANSIT $ 1,000
BCS $ 166,573
BCS NETWORKS, INC. $ 1,250
▇▇▇▇ CANADA $ 23,084
Assignment and Assumption Agreement (US)
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▇▇▇▇ CANADA (CAD$) $ 5,869
▇▇▇▇ CANADA (U$ FUND$) $ 18,291
▇▇▇▇ WEST, INC $ 4,720
BENNETRENDS CONSULTING, LLC $ 750
▇▇▇▇▇ TELECOM INC $ 1,224
▇▇▇▇▇▇ MEMORIAL HOSPITAL $ 13,790
BOSTON WIRELESS INC $ 124
▇▇▇▇▇ TELEPHONE $ 1,530
BRASIL TELECOM $ 1,275
BROADBASED COMMUNICATIONS INC $ 1,718
BUBBLES ENTERPRISES LTD $ 1,016
BUSINESS COMPUTER PRODUCTS $ 405
BUSINESS ELECTRONICS INC $ 1,032
CANADIAN COMMUNICATION PRODUCT $ 40,523
CAPISTRANO FORD $ 1,275
CARTEL COMMUNICATIONS SYSTEMS $ 4,678
CATALYST $ 1,490
CATALYST TELECOM $ 1,200,791
CENTURY TEL SUPPLY GROUP, INC. $ ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇▇ $ 1,541
CIRCLE OF LIFE, LLC $ 30
CITY OF AUBURN $ 824
CITY OF VINELAND $ 4,740
CITY YEAR $ 1,300
COASTCOM $ 15,811
COLGATE-PALMOLIVE CO. $ 1,681
COLPEPER HOSPITAL $ 2,002
COMMERCIAL TELECOM GROUP $ 325
COMMUNICATIONS TEST DESIGN INC $ 507
COMMWORLD OF ▇▇▇▇▇▇▇▇▇▇ $ 1,225
COMP CAMS $ 725
COMPUSYSTEMS $ 2,475
CONVERGENCE COMMUNICATONS $ 2,575
CONXTS $ 1,560
CORPORATE COMMUNICATIONS $ 832
CORPORATE TELE CONSULTANTS $ 1,476
CORUS PHARMA $ ▇▇▇
▇▇▇▇▇▇ ▇▇ ▇▇ ▇▇▇▇▇▇ $ 2,905
CREATIVE SWITCHING DESIGNS $ 6,364
CREDIT UNION OF SOUTHERN CALIFORNIA $ 215
CRM LEARNING $ 380
CROSS TELECOM CORPORATION $ 700
CSSA $ 16,577
CTAP L.L.C. $ 53
CTDI NETHOUSE $ 2,732
CVDS INC $ 6,319
DACON ELECTRONICS PLC $ 47,174
DATAPULSE LTD $ 3,103
DATAVOX $ 4,714
DEPT OF NATIONAL DEFENSE $ 772
Assignment and Assumption Agreement (US)
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DICTAPHONE CORPORATION $ 66,322
DIGITAL TECHNIQUES/ASIA PTY LT $ 306,125
DIGITAL TELECOM, INC. $ 2,173
DIRECT TELECOM SOLUTIONS $ 1,000
▇▇▇▇▇▇▇ EMPLOYMENT GROUP $ 950
DTEL COMMUNICATIONS $ 775
DYNAMETRIC, INC. $ 1,386
ELIXIR INDUSTRIES $ 1,664
ESL POWER SYSTEMS $ 520
ESSEX COUNTY CORRECTIONAL FACILITY $ 938
ESSEX CTY CORRECTIONAL FACILITY $ 2,916
ETRALI NORTH AMERICA, INC $ 1,015
EVENTIDE $ 16,161
EXCEL SYSTEMS INC $ 800
EXCEL TELECOM INC $ 1,100
EXTEL COMMUNICATIONS $ 1,050
F5 NETWORKS $ 120
FANEUIL GROUP $ 840
FARMSTEAD TELEPHONE GROUP $ (2,400)
FEDERAL RESERVE BANK OF KANSAS CITY $ 3,007
FIRST FUTURE CREDIT UNION $ 5,668
FIRST TEACHERS CREDIT UNION $ 1,275
FORERUNNER NETWORK SYSTEMS $ 506
FRONTIER ALUMINUM $ 125
FRONTRUNNER NETWORK SYSTEMS $ 100
FROST NATIONAL BANK $ 1,569
FUTURE TECH ENTERPRISES $ 3,554
▇▇▇▇▇▇▇ COMMUNICATIONS $ 1,264
▇▇▇▇▇▇ BAKERY $ 1,375
GBH $ 1,015
GBH DISTRIBUTING $ 1,070,729
GEOTRONICS $ 975
GIFT ▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ $ (1,002)
GLOBENET BRASIL TELECOM $ 300
GOSERCO, INC. $ 4,487
GOVERNMENT OF CANADA $ 317
GRAYBAR ELECTRIC COMPANY INC. $ 7,463
GULFCOAST $ 15
▇▇▇▇▇▇▇ TELECOM $ 230
HEALTHLINK, INC. $ 2,220
HENRYS INSURANCE AGENCY $ 3,075
HIGH SPEED COMMUNICATIONS INC. $ ▇▇▇
▇▇▇▇▇ & ▇▇▇▇▇▇▇, ▇▇▇ $ 4,746
HOME SHOPPING NETWORK $ 4,814
HORIZON TELEPHONE SYSTEMS $ 225
▇▇▇▇▇▇ BUSINESS TELEPHONE $ 1,015
IMECO CABLES (US FUND$) $ 4,590
IMECO CABLES INC $ 251,634
IN TRANSIT $ 100
INNOVATEL $ 900
Assignment and Assumption Agreement (US)
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INNOVATIVE SURVEILLANCE TECHNOLOGY $ 1,235
INTEL CORPORATION $ 41,980
INTERNATIONAL TELEPHONE SOLUTIONS $ 3,150
IPC INFORMATION SYSTEMS $ 26,272
JABIL CIRCUIT SAS $ 96,182
▇▇▇▇▇▇▇▇ COMMUNICATIONS $ 1,220
▇▇▇▇▇▇ PERMANENTE/TECH SVC CTR $ 606
KAMO POWER $ 830
KEMIN INDUSTRIES $ 1,250
KUDU INDUSTRIES INC. $ (761)
LECO CORPORATION $ 750
LEXSYS NETWORKS INC $ 510
LIBERTY COMMUNICATIONS INC $ 505
LKQ CORPORATION $ 380
LOFFLER COMPANIES INC $ 246
LOFFLER COMPANIES, INC. $ 200
LORD AECK SARGENT ARCHITECTURE $ 5,164
LWCC $ 1,075
MARATHON OIL COMPANY $ 510
MARWOOD METAL FABRICATORS $ 1,100
META GROUP - VA $ 450
METROCOMM, INC. $ 1,623
MID-ATLANTIC BUSINESS COMM $ 250
MIDWEST TELECOM RESELLERS $ 255
MIDWESTERN TELEPHONE $ 4,547
▇▇▇▇ MANAGEMENT $ 1,020
MMG INSURANCE COMPANY $ 1,275
MOCK ENGINEERING, INC $ 120
MODULAR COMPONENTS $ 800
MOHAWK LIMITED $ 790
MULTINET COMMUNICATIONS $ 1,142
NEC AMERICA $ 135,182
NEC BUSINESS COMM. SYSTEM INC $ 3,617
NEC BUSINESS NETWORK SOLUTIONS $ 11,857
NEC INFRONTIA INC $ 4,015
NEC UNIFIED SOLUTIONS INC $ 84,443
▇▇▇▇▇▇ SYSTEMS $ 1,026
NETWORK BUSINESS CO ENGRG. GRP $ 25,000
NEW DIRECTIONS BEHAVIORAL HEALTH $ ▇▇▇
▇▇▇ ▇▇▇▇ COMMUNICATIONS $ 525
NEXTIRA ONE LLC $ 1,235
NEXXTWORKS $ 771
NICE SYSTEMS INC $ 5,966
NORTH AMERICAN COM. RESOURCES $ ▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ COMMUNICATIONS $ 2,926
NORTH DAKOTA TELEPHONE CO $ 1,544
NORTHERN TELECOM $ 31,843
NORTHWEST GEORGIA ONCOLOGY $ 2,064
NYC STOCK/ ETRALI NA $ 1,688
O.N. TELECOM $ 773
Assignment and Assumption Agreement (US)
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OPTUS TELEQUIP $ 597
OSPREY CORP $ 600
OWENOKE CAPITAL $ 520
PALATINE FIRE DEPARTMENT $ 1,050
PANASONIC $ 234,079
PARTNERS HEALTHCARE SYSTEM INC $ 56,633
PB EXCHANGE $ 2,079
PENN STATE ALTOONA $ 2,490
PERMANENT GENERAL $ 1,996
PHONEAMERICA CORP $ 1,330
PINE INSTRUMENT COMPANY $ 996
PLATINUM COMMUNICATIONS $ 1,220
POSITRON $ 9,351
POSITRON TECHNOLOGIES INC $ 8,996
PREMIUM STANDARD FARMS $ 125
PRICE MODERN LLC $ 515
PRINCETEL $ 1,200
PRINTER WORKS $ 600
PRO PEST PRODUCTS $ 1,162
PROSPECT COMPUTER & COMMUNICATION INC $ 2,364
REPLAY SYSTEMS $ 1,179
RIMROCK TECHNOLOGIES $ 57
RONCO $ 2,456
SBC $ 98,210
SBC SERVICES INC $ 10,445
SBC/ AMERITECH PAYMENT CENTER $ 117,376
SBC/ SOUTHWESTERN ▇▇▇▇ $ 7,917
SBC/SOUTHWESTERN ▇▇▇▇ TELECOM $ 523
SCANA SERVICES INC $ 510
SHARED TECHNOLOGIES ▇▇▇▇▇▇▇▇▇ $ 1,805
SHARED TECHNOLOGIES INC $ 8,656
▇▇▇▇▇▇▇ ELECTRIC SERVICE $ 1,380
SKYDEALS $ 20,000
SOLIST TECHNOLOGIES $ 1,150
SOUND COMMUNICATIONS $ 1,535
SOURCE INC $ 56
SOUTHWESTERN ▇▇▇▇ TELECOM $ 15,695
SPRINT DOCUMENT $ 765
SPRINT NORTH SUPPLY $ 546,893
SPRINT/UNITED $ 999
SPRINT/UTD REF TO SPRINT NORTH $ (689)
ST ▇▇▇▇▇▇ CAPITAL BANK $ 800
STARS & STRIPES TELECOM $ 506
SUNLAND FORD INC. $ 1,019
SWIFT COMPUTER INC $ 802
SYMON COMMUNICATIONS INC. $ 2,388
SYSCOM USA INC $ 1,203
SYSTEME TELEPHONIQUE DE L'ESTRINE $ 650
TANTACOMM SYSTEMS $ 10,000
TAYLORED SYSTEMS, INC $ 977
Assignment and Assumption Agreement (US)
13
TCI, TEL CONTROL INC. $ 1,006
TD WATERHOUSE $ 9,955
TD WATERHOUSE - HARBORSIDE $ 56,220
TECH II BUSINESS SERVICES $ 279
TECHTELE COMMUNICATIONS LLC $ 3,243
TEL ASSIST $ 3,050
TELEBEC S E C $ 515
TELECO OF THE ROCKIES $ 1,052
TELECORP INC $ 196,669
TELECORP PRODUCTS $ 2,843
TELEPERFORMANCE-NORWAY $ 3,200
TELEPHASE COMMUNICATION TECH $ 200
TELEPHONE CONNECTION $ 111
TELESWITCH $ 285,873
TELUS $ ▇▇▇
▇▇▇▇▇ ▇. ▇. ▇▇▇▇▇▇▇ $ ▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇ $ 520
TEXAS DIGITAL $ 3,008
THE LIMITED $ ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ INFORMATION SY $ 19,337
TOSHIBA OF CANADA $ 125
TRANSCOM SERVICES $ 2,553
TRENDWOOD, INC $ 1,685
▇▇▇▇▇▇▇▇▇▇▇.▇▇ $ 6,250
TRISTATE TELECOM $ 4,450
UCI COMMUNIATIONS $ 310
UNIFIED TELDATA INC $ ▇▇▇
▇▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇ $ 12,245
US VOICE & DATA LLC $ 120
USEC $ 825
UTILITY VAULT $ 1,275
VERINT SYSTEMS, INC. $ 1,337
VERINT SYSTEMS, LTD $ 19,211
VERIZON MC: TXD01401 $ 2,161
VERIZON HAWAII 9WH $ 129
VERIZON LOGISTICS $ 152,189
VERIZON NORTH INC $ 2,422
VOICE CONNECT PLUS, INC $ 140
VOICE DATA SYSTEMS $ 750
VOICE LOGGER, INC. $ 13,964
VOLT INFORMATION SCIENCES INC $ ▇▇▇
▇▇▇▇▇▇▇▇▇▇ TELECOM $ 120
WASECA COUNTY $ 773
▇▇▇▇▇▇▇ FIRST FEDERAL CREDIT U $ 4,950
WELDING SERVICES INC. $ 406
▇▇▇▇▇▇▇ ▇ ▇▇▇ $ 680
WESTCON GROUP NORTH AMER, INC. $ 329,980
WESTERN NRG, INC $ 6,771
WESTGATE COMMUNICATIONS $ 607
WHITE RADIO $ 1,481
Assignment and Assumption Agreement (US)
14
▇▇▇▇▇▇▇▇ TELECOMMUNICATIONS CO $ 78,736
▇▇▇▇▇▇▇ HEIGHTS MEDICAL CENTER $ 607
XIT COMMUNICATION $ 610
YOUNG'S WORLDWIDE AMEX TRAVEL $ 100
-----------
Total $ 7,030,687
===========
Assignment and Assumption Agreement (US)
15
2.2 DEFERRED SERVICE REVENUE (SCHEDULE 3.1(b))
ORDER LIFE ORIGINAL RECOGNIZED UNRECOGNIZED
DATE INVOICE ORDER CUSTOMER DESCRIPTION (MTHS) CONTRACT REVENUE REVENUE
---- ------- ----- -------------------- ------ -------- ------- -------
12/31/04
5X8 ON SITE MAINTENANCE CONTRACTS
Feb-04 7000096 Westcon Group North 12 4,665.60 4,276.80 388.80
Feb-04 7000116 Springs Window Fashion 12 1,850.00 1,695.83 154.17
Mar-04 7000225 Paychex 12 2,520.00 2,100.00 420.00
Mar-04 7000335 Kaiser Electronic 12 4,284.00 3,570.00 714.00
Mar-04 7000349 Catalyst Telecom 12 2,413.00 2,010.83 402.17
Mar-04 7000348 Resa III 12 3,700.00 3,083.33 616.67
May-04 7000529 Catalyst Telecom 12 648.00 432.00 216.00
Apr-04 7000530 Catalyst Telecom 12 648.00 432.00 216.00
Jul-04 7000835 SNS 12 833.00 416.50 416.50
Starts in March
Dec-04 7001466 Paychex 3 1,279.00 - 1,279.00 05
Dec-04 7001467 Paychex 12 2,592.00 648.00 1,944.00 Starts 9/30/04
---------- ---------- ---------
TOTALS $25,432.60 $18,665.30 $6,767.30
========== ========== =========
24X7 ON SITE MAINTENANCE CONTRACTS
Jul-04 7000884 University of Michigan 12 12,245.00 6,122.50 6,122.50
Nov-04 7001338 Springs Window Fashio 12 716.66
Assignment and Assumption Agreement (US)
16
860.00 143.34
---------- --------- -----------
TOTALS $13,105.00 $6,265.84 $ 6,839.16
========== ========= ===========
5X8 PHONE SUPPORT
Realcom Office (through
Sep-01 26586 S25573 Worldcom) 60 4,400.00 2,933.34 1,466.66
Feb-04 7000092 GBH Distributing 12 1,082.00 991.83 90.17
Feb-04 7000093 GBH Distributing 12 12,760.20 11,696.85 1,063.35
Feb-04 7000095 Catalyst Telecom 12 298.00 273.17 24.83
Feb-04 7000116 Spring Window Fashions LP 12 1,309.00 1,199.92 109.08
Feb-04 7000094 Catalyst Telecom 12 280.00 256.67 23.33
Feb-04 7000161 GBH Distributing 12 1,916.00 1,756.33 159.67
Mar-04 7000361 New York State Senate 12 546.00 455.00 91.00
Apr-04 7000412 Catalyst Telecom 12 665.00 498.75 166.25
Apr-04 7000413 Catalyst Telecom 12 665.00 498.75 166.25
Apr-04 7000447 Catalyst Telecom 12 417.00 312.75 104.25
May-04 7000509 Catalyst Telecom 12 1,190.00 793.33 396.67
May-04 7000571 Catalyst Telecom 12 298.00 198.67 99.33
Nova Electronics Data,
06/0/104 7000607 Inc. 12 952.00 555.33 396.67
Jun-04 7000606 Westcon Group 12 1,330.00 775.83 554.17
Jun-04 7000608 Catalyst Telecom 12 417.00 243.25 173.75
Assignment and Assumption Agreement (US)
17
06/30/0/4 7000609 Catalyst Telecom 12 417.00 243.25 173.75
Nova Electronics Data,
Jun-04 7000675 Inc. 12 952.00 555.33 396.67
Aug-04 7000998 Westcon Group 12 1,177.00 490.42 686.58
Jun-04 7000758 Teleswitch 12 1,913.00 1,115.92 797.08
Aug-05 7000997 Sunland 12 1,019.00 424.58 594.42
Jun-04 7000655 GBH Distributing 12 2,632.00 1,535.33 1,096.67
Jul-04 7000815 Essex County 12 1,040.00 520.00 520.00
Jul-04 7000814 Essex County 12 1,876.00 938.00 938.00
Jul-04 7000813 Essex County 12 938.00 469.00 469.00
Jul-04 7000880 Catalyst Telecom 12 834.00 417.00 417.00
Jul-04 7000881 Catalyst Telecom 12 560.00 280.00 280.00
Jul-04 7000882 Catalyst Telecom 12 417.00 208.50 208.50
Jul-04 7000879 Catalyst Telecom 12 2,660.00 1,330.00 1,330.00
Jul-04 7000878 Catalyst Telecom 12 417.00 208.50 208.50
Mar-04 7000877 Catalyst Telecom 12 834.00 695.00 139.00
Jun-04 7000710 ▇▇▇▇▇▇ Memorial 12 13,790.00 8,044.17 5,745.83
Apr-04 7000916 Colgage Palmolive 12 1,681.00 1,260.75 420.25
Sep-04 7E+07 ▇▇▇▇▇▇ Bakery 12 1,375.00 458.33 916.67
Oct-04 7001212 Temple Inland 12 1,664.00 416.00 1,248.00
Nov-04 7E+07 Spring Window Fashions LP 12 3,328.00 554.66 2,773.34
Assignment and Assumption Agreement (US)
18
Dec-04 7001507 Sprint North Supply 12 416.50 34.71 381.79
---------- ---------- ----------
TOTALS $68,465.70 $43,639.22 $24,826.48
========== ========== ==========
7X24 PHONE SUPPORT
Feb-04 7000100 ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ 12 640.00 586.67 53.33
Aug-04 7000915 Penn State 12 2,490.00 1,037.50 1,452.50
Jul-04 7000846 Pro Pest 12 662.00 331.00 331.00
Jul-04 700883 Lord Aeck 12 5,164.00 2,582.00 2,582.00
Jun-04 7000823 Healthlink 12 2,220.00 1,295.00 925.00
Jun-04 7000708 Eltair 12 1,664.00 970.67 693.33
Jul-04 7000966 County of El Dorado 12 2,905.00 968.33 1,936.67
Sep-04 7001191 Port Blakel Communities 12 1,600.00 533.33 1,066.67
Sep-04 7001173 G-111 Apparel Group 12 1,428.00 476.00 952.00
Sep-04 7001192 County of El Dorado 12 2,905.00 968.33 1,936.67
Sep-04 7001188 Catalyst Telecom 12 2,332.00 777.33 1,554.67
Sep-04 7001193 Antietam Cable Co 12 2,496.00 1,872.00 624.00
Sep-04 7001190 Advanced Call Center Tech 12 797.00 265.67 531.33
Oct-04 7001238 Catalyst Telecom 12 1,177.00 294.25 882.75
Oct-04 7001210 New Horizons Credit ▇▇▇▇▇▇ ▇▇ 5,855.00 1,756.50 4,098.50
Oct-04 7001204 Catalyst Telecom 12 1,664.30 416.08 1,248.23
Assignment and Assumption Agreement (US)
19
Dec-04 7001485 LKG Corporation 12 11,392.00 949.33 10,442.67
Dec-04 7001469 Frankenmuth Credit 2 years start
Union 24 6,382.00 531.83 5,850.17 date 11/01
---------- ---------- ----------
TOTALS $53,773.30 $16,611.83 $37,161.48
========== ========== ==========
----------- ---------- ----------
GRAND TOTALS $160,776.60 $85,182.19 $75,594.41
=========== ========== ==========
ORIG. RECGN UNRECOG
CONTRACT REVENUE REVENUE
ACCOUNT 2550 BALANCE $75,594.41 $75,594.41
Assignment and Assumption Agreement (US)
20
3. Stock rotation obligations under the following Contracts, where the amount of
such obligation is determined by reference to the historical product cost for
the inventory required to satisfy such stock rotation obligation):
INVENTORY STOCK ROTATION AS OF 12/31/04 (SCHEDULE 3.1(c))
CUSTOMER PERIOD COVERED Q4 REV ROTATION % ROTATION $
-------- -------------- ------ ---------- ----------
(,000) (,000)
Catalyst 90 days $ 364 15% $ 55
Westcon 90 days $ 6 15% $ 1
SNS(Sprint) 90 days $ 167 20% $ 33
GBH 120 days $ 372(1) 15% $ 56
GTE/Verizon 90 days $ 35 15% $ 5
▇▇▇▇ Canada 90 days $ 7 20% $ 1
White Radio 90 days $ 3 20% $ 1
Anixter, Inc 120 days $ 135(1) 20% $ 27
Anixter Europe 90 days $ 36 20% $ 7
------
Total $ 186
======
(1) Includes September 04 Revenue
4. All Liabilities arising out of or relating to the OEMW Open Orders included
among the Contracts in Annex A.
Assignment and Assumption Agreement (US)
21