1
Exhibit 10.18
ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS AGREEMENT is entered into as of November 15, 1996 by and between
Grant & Partners Limited Partnership, a Delaware limited partnership ("GPLP"),
and Exchange Applications, Inc., a Delaware corporation ("EA").
1. ASSIGNMENT OF ASSETS. GPLP, for good and valuable
consideration, including the assumption of liabilities pursuant to Section 2 and
the issuance by EA to GPLP of 2,300,000 shares of Series A Convertible Preferred
Stock of EA pursuant to Section 4, the receipt and sufficiency of which is
hereby acknowledged, does hereby grant, sell, assign, transfer and deliver unto
EA all of GPLP's right, title and interest in and to the assets described below:
(a) all funds held in the following accounts: (i) Bank of Montreal
account number 000000, (ii) Bank of Boston account number
532-71680, and (iii) Xxxxxxx Xxxxx account number 820-07892;
(b) the accounts receivable and the accrued but unbilled accounts
receivable listed on SCHEDULE A hereto, together with all
other accounts receivable and accrued but unbilled accounts
receivable generated by the Exchange Applications division of
GPLP (the "Division") in the ordinary course of business after
October 31, 1996;
(c) the fixed assets listed on SCHEDULE B hereto;
(d) the computer software and documentation listed on SCHEDULE C
hereto, together with all associated know-how and patent,
copyright and trademark rights; and
(e) all rights of GPLP under the contracts listed on SCHEDULE D
hereto (the "Assumed Contracts").
2. ASSUMPTION OF LIABILITIES. EA, in consideration of the
transfer to it by GPLP of the assets referred to above, does hereby assume the
following obligations and liabilities of GPLP (the "Assumed Liabilities);
(a) the accounts payable listed on SCHEDULE E hereto, together
with all other accounts payable incurred by the Division in
the ordinary course of business after October 31, 1996;
2
(b) $2,560,000 of the principal amount and $18,000 of accrued
interest (through 10/31/96) owed by GPLP to Cyrk, Inc. under
that certain Revolving Credit Agreement dated March 28, 1995,
together will all interest accruing on such principal amount
from and after November 1, 1996 (the "Cyrk Debt");
(c) all amounts owed by GPLP to UST Leasing Corporation under that
certain Agreement of Lease, dated October 12, 1995, between
GLPL and UST Leasing Corporation (lease number 199586);
(d) all accrued bonuses owed by GPLP to the persons listed on
SCHEDULE F hereto;
(e) all obligations and liabilities under the assumed Contracts;
(f) $87,025 owed to GPLP for shared facilities and personnel
during the period January 1, 1996 through October 31, 1996;
(g) all amounts due under that certain promissory note of GPLP,
dated November 15, 1996, in favor of Cyrk, Inc. and in the
original principal amount of $301,260;
(h) all obligations under that certain promissory note of EA,
dated the date hereof, in favor of GPLP and in the original
principal amount of $301,260;
(i) 50% of GPLP's 1996 independent audit expenses; and
(j) all obligations of GPLP to the current and former employees of
the Division.
3. FURTHER ASSURANCES. The parties will execute such deeds, bills
of sale, assignments, consents, agreements and other documents and will take
such other actions, as are necessary to (a) transfer more fully and effectively
(and confirm the transfer of) the assets intended to be transferred hereby, and
(b) assume more fully and effectively (and confirm the assumption of) the
Assumed Liabilities. Without limiting the generality of the foregoing, in
connection with the assumption of the Cyrk Debt, EA will execute documentation
with Cyrk, Inc., substantially the same as of the documentation relating to the
current revolving credit facility between GPLP and Cyrk, Inc.
3
4. ISSUANCE OF STOCK. Concurrently with the execution of this
Agreement, EA will issue to GPLP 2,300,000 shares (the "Shares") of EA's Series
A Convertible Preferred Stock, $.001 par value per share. GPLP represents that
it is acquiring the Shares for its own account for investment and not with a
view to resale in connection with any distribution thereof. GPLP understands and
acknowledges that the shares have not been registered under the Securities Act
of 1933, as amended (the "Act"), and may not be sold unless subsequently
registered under the Act or an exemption from such registration is available..
5 INDEMNIFICATION. EA will indemnify and hold harmless GPLP and
each of its partners against all claims, losses, damages and liabilities (or
actions in respect thereof) arising out of or based on the Assumed Liabilities,
and will reimburse GPLP and each such partner for any legal or any other
expenses incurred in connection with investigating or defending any such claim,
loss, damage, liability or action. GPLP will indemnify and hold harmless EA
against all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of the operations of GPLP (other than Assumed Liabilities),
and will reimburse EA for any legal or any other expenses incurred in connection
with investigating or defending any such claim, loss, damages, liability or
action.
6. MISCELLANEOUS. This Agreement shall be governed by the law of
The Commonwealth of Massachusetts. This Agreement shall inure to the benefit of
and shall bind the parties hereto and their respective successors and assigns.
This Agreement only may by modified by a written agreement executed by each
party hereto, and by no other means. This invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, and each other provision of this
Agreement shall be severable and enforceable to the extent permitted by law.
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.
4
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date first above written.
GRANT & PARTNERS LIMITED PARTNERSHIP
By: Grant & Partners, Inc.,
its general partner
By: /s/ Xxxx Xxxxx
-----------------------------------
Xxxx Xxxxx, President
EXCHANGE APPLICATIONS, INC.
By: /s/ Xxxxxx X. Xxxxxxx
--------------------------------------
Title: President
5
SCHEDULE A
account rec
----------------------------------------------------------------------------------------------------------
Billing Status by Client 10/31/96
----------------------------------------------------------------------------------------------------------
TOTAL 00-0000-00 00-0000-00 Exchange Exchange
----------------------------------------------------------------------------------------------------------
CLIENT A/R BILLED A/R ACCRUED A/R Partners Applications
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
FEDEX $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------
FEDEX-EA $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------
Fedex-Europe $ (1,932) $ (1,932) $ (1,932)
----------------------------------------------------------------------------------------------------------
Fedex-Services $ 41,000 $ 41,000 $ 0 $ 41,000
----------------------------------------------------------------------------------------------------------
Safecard $ 666 $ 666 $ 666
----------------------------------------------------------------------------------------------------------
Xxxxxx Xxxxxxx $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------
Sears $ 45,052 $ 33,500 $ 11,552 $ 45,052
----------------------------------------------------------------------------------------------------------
Sears - Phase I $ 33 $ 33 $ 33
----------------------------------------------------------------------------------------------------------
TNT $ (0) $ (0) $ (0)
----------------------------------------------------------------------------------------------------------
Xxxxxxx Xxxxxx $ 1,525 $ 1,525 $ 1,525
----------------------------------------------------------------------------------------------------------
Ivesco $ 35,000 $ 15,000 $ 20,000 $ 35,000
----------------------------------------------------------------------------------------------------------
Ivesco 3 $ 33,250 $ 20,000 $ 13,250 $ 33,250
----------------------------------------------------------------------------------------------------------
Invesco C $ 197,288 $106,917 $ 90,370 $ 197,288
----------------------------------------------------------------------------------------------------------
FUSA $ 2,179 $ 1,613 $ 566 $ 2,179
----------------------------------------------------------------------------------------------------------
Tandem $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------
IRM $ 13 $ 13 $ 13
----------------------------------------------------------------------------------------------------------
USAir $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------
Nynex $ 1,705 $ 1,705 $ 1,705
----------------------------------------------------------------------------------------------------------
Xxxxx XX $ 6,790 $ 1,213 $ 5,577 $ 6,790
----------------------------------------------------------------------------------------------------------
Chubb Claims $ 5,821 $ 5,821 $ 0 $ 5,821
----------------------------------------------------------------------------------------------------------
Chubb L&D $ 13,181 $ 13,181 $ 13,181
----------------------------------------------------------------------------------------------------------
Chubb Casualty $ 608 $ 608 $ 608
----------------------------------------------------------------------------------------------------------
Xxxxx XX Retainer $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------
Chubb Leadership $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------
Chubb Eastern Zone $ 8,751 $ 8,391 $ 360 $ 8,751
----------------------------------------------------------------------------------------------------------
BNS $ 85,220 $ 85,221 $ (0) $ 85,221
----------------------------------------------------------------------------------------------------------
Axciom $ 166,666 $166,666 $ 0 $ 166,666
----------------------------------------------------------------------------------------------------------
AM-RE $ 67,902 $ 36,270 $ 31,632 $ 67,902
----------------------------------------------------------------------------------------------------------
USAA $ 1,569 $ 1,569 $ 1,569
----------------------------------------------------------------------------------------------------------
Old Guard Insurance $ 6,250 $ 6,250 $ 0 $ 6,250
----------------------------------------------------------------------------------------------------------
Oxford $ (113) $ 956 $ (1,069) $ (113)
----------------------------------------------------------------------------------------------------------
Oxford - software $ 163,150 $163,150 $ 0 $ 163,150
----------------------------------------------------------------------------------------------------------
Fleet $ 337,291 $258,071 $ 79,220 $ 337,291
----------------------------------------------------------------------------------------------------------
Direct Partners $ 0 $ 0 $ 0
----------------------------------------------------------------------------------------------------------
Boston Group $ 6,250 $ 6,250 $ 6,250
----------------------------------------------------------------------------------------------------------
Loblaws-New Co $ 177 $ 177 $ 177
----------------------------------------------------------------------------------------------------------
National Foods $ 15,000 $ 0 $ 15,000 $ 15,000
----------------------------------------------------------------------------------------------------------
Key $ 33,334 $ 33,334 $ 33,334
----------------------------------------------------------------------------------------------------------
National City-Mktg $ 25,000 $ 25,000 $ 25,000
----------------------------------------------------------------------------------------------------------
National City-Sl $ 10,000 $ 10,000 $ 10,000
----------------------------------------------------------------------------------------------------------
Sprint $ 11,300 $ 11,300 $ 11,300
----------------------------------------------------------------------------------------------------------
Loblaws - EA $ 10,000 $ 10,000 $ 10,000
----------------------------------------------------------------------------------------------------------
Xxxxx Fargo $ 19,585 $ 11,761 $ 7,824 $ 19,585
----------------------------------------------------------------------------------------------------------
TOTAL $1,349,513 $961,800 $ 387,713 $0 $1,349,513
----------------------------------------------------------------------------------------------------------
Employee Receivables:
----------------------------------------------------------------------------------------------------------
EA 16,000 16,000
----------------------------------------------------------------------------------------------------------
Allowance for Bad Debt
----------------------------------------------------------------------------------------------------------
Total GPI Receivables $1,365,513 $0 $1,365,513
----------------------------------------------------------------------------------------------------------
6
SCHEDULE A
Aging
Accounts Receivable Aging Report 10/31/96
Exchange Applications
Client Invoice # Date Amount 0-30 31-60 61-90 Over 90 Total Invoiced
----------------------------------------------------------------------------------------------------------------------------------
FUSA 10130 4/1/96 1,612.63 1,612.63 1,612.63
Xxxxx - Xxxxxx 00000 4/23/96 33,500.00 33,500.00 33,500.00
Xxxxx Xxxxx 00000 6/6/96 11,761.46 11,761.46 11,761.46
Xxxxx Xxxxxxx Xxxx 00000 6/24/96 8,390.83 8,390.83 8,390.83
Old Guard 10303 7/3/96 6,250.00 6,250.00 6,250.00
Bank of Xxxx Xxxxxx 00000 8/5/96 56,056.44 56,056.44 56,056.44
Axciom 10322 9/3/96 166,666.00 166,666.00 166,666.00
Bank of Xxxx Xxxxxx 00000 9/3/96 29,164.19 29,164.19 29,164.19
Fleet 10329 9/10/96 55,960.50 55,960.50 55,960.50
Oxford 10315 9/17/96 956.23 956.23 956.23
Oxford 10317 9/25/96 163,150.00 163,150.00 163,150.00
Fleet 10333 9/26/96 62,622.57 62,622.57 62,622.57
Xxxxxxx 00000 10/3/96 141,917.31 141,917.31 141,917.31
AMRE 10337 10/8/96 36,270.29 36,270.29 36,270.29
Fleet 10338 10/9/96 67,118.75 67,118.75 67,118.75
Chubb Claims 10340 10/17/96 7,033.62 7,033.62 7,033.62
Federal Express 10339 10/17/96 41,000.00 41,000.00 41,000.00
Fleet 10342 10/28/96 72,368.75 72,368.75 72,368.75
---------------------------------------------------------------------------------
Total Exchange Applications A/R 961,799.57 365,708.72 478,519.49 56,056.44 61,514.92 961,799.57
Accrued A/R 387,713.43
------------
1,349,513.00
Empl. Receivable 16,000.00
------------
1,365,513.00
7
SCHEDULE B
Great & Partners Limited Partnership
Financial Statement Depreciation Schedule
Straight line method - Half year convention
Dep Exp
1993 1994 1995 1996 Depr Accumulated
Inventory Asset User Acq. Date Cost Life Depr. Depr. Depr. Depr. 10/31/96 10/31/96
Exchange Applications
Capital Equipment
10-0013 Powerbook AF 29-Mar-94 1,399.99 4 175.00 350.00 350.00 29.16 816.66
30-0016 MAC Powerbook 180c SK 23-May-94 3,053.37 4 381.67 763.33 763.33 63.61 1,781.11
30-0018 Memory upgrade MP 29-Jun-94 1,000.00 4 125.00 250.00 250.00 20.83 583.33
30-0019 Laserwriter 320 SK 21-Jul-94 1,075.54 4 134.44 268.89 268.89 22.41 627.40
30-0026 Keyboard MP 21-Jul-94 219.24 4 27.41 54.81 54.81 4.57 127.89
30-0020 Mac Powerbook 7100 MP 15-Sep-94 5,970.76 6 497.56 995.13 995.13 82.93 2,321.96
30-0024 Personal Printer AS 02-Nov-94 627.95 4 78.49 156.99 156.99 13.08 366.30
20-0023 Powerbook 520 MF 14-Dec-94 2,857.02 4 357.13 714.26 714.26 59.52 1,666.60
30-0025 Macintosh 520C-Fax/mod AS 21-Dec-94 4,457.34 4 557.17 1,114.34 1,114.34 92.86 2,600.12
Praxis computers EA 31-Dec-94 76,955.00 2 38,477.50 38,477.50 3,206.46 70,542.08
10-0043 GPIS Clibrary Network sys MM 01-Feb-95 1,312.50 4 164.06 328.13 27.34 437.50
10-0044 GPIS Intersolve Tracking sys MM 01-Feb-95 6,535.97 4 817.00 1,633.99 136.17 2,178.66
10-0045 GPIS Networking system MM 27-Feb-95 1,267.23 4 158.40 316.81 26.40 422.41
2 Seagate Hard Drives MM 03-Mar-95 2,133.60 4 266.70 533.40 44.45 711.20
Modem SM 21-Mar-95 753.44 4 94.18 188.36 15.70 251.15
Memory Upgrade MP 23-Mar-95 429.00 4 53.63 107.25 8.94 143.00
Network system MM 29-Mar-95 483.00 4 60.38 120.75 10.06 161.00
Network (intersolve) EA 31-Mar-95 4,238.82 4 529.85 1,059.71 88.31 1,412.94
486PX4100 Motherboard RA 31-Mar-95 1,177.20 4 147.15 294.30 24.53 392.40
16 Seagate HD RA 31-Mar-95 405.00 4 50.63 101.25 8.44 135.00
MP Scanjet Ilex SF 31-Mar-95 1,129.98 4 141.25 282.50 23.54 376.66
Dell Latitude M Notebook MF 31-Mar-95 3,496.85 4 437.11 874.21 72.85 1,165.62
Ether Modem MM 01-Apr-95 535.48 4 66.94 133.87 11.16 178.49
Xxxxxx Laptop MM 01-Apr-95 3,409.96 4 426.25 852.49 71.04 1,136.65
Network (NDPS) EA 10-Apr-95 6,707.40 4 838.43 1,676.85 139.74 2,235.80
Gateway 2000 Laptop AF 30-Apr-95 4,172.00 4 521.50 1,043.00 86.92 1,390.67
800 Dual Scan Color Book AF 01-May-95 3,859.00 4 482.38 964.75 80.40 1,286.33
MS SQL Network System EA 08-May-95 3,168.76 4 396.10 792.19 66.02 1,056.25
Unitel Telephones RW 09-May-95 588.00 4 73.50 147.00 12.25 196.00
Telephone system TB 18-May-95 3,296.42 4 412.05 824.11 68.68 1,098.81
Auto Desk / Animator EA 19-May-95 509.38 4 63.67 127.35 10.61 169.79
Network system setup EA 25-May-95 656.00 4 82.00 164.00 13.67 218.67
Seagate HD w/ adapter & adobe EA 25-May-95 1,478.00 4 184.75 369.50 30.79 492.67
Networking System EA 26-May-95 1,010.25 4 126.28 252.56 21.05 336.75
4X32 16MP Modual JP 31-May-95 525.00 4 65.63 131.25 10.94 175.00
Maxtor R2G13 JP 31-May-95 326.00 4 40.75 81.50 6.79 108.67
2 Pentium 120 PC EA 31-May-95 8,056.00 4 1,007.00 2,014.00 167.83 2,685.33
NDPS EA 13-Jun-95 1,418.05 4 177.26 354.51 29.54 472.68
Networking (intersolve) EA 20-Jun095 326.80 4 40.85 81.70 6.81 108.93
Gateway 2000 EA 27-Jun-95 14,319.00 4 1,789.88 3,579.75 298.31 4,773.00
NDPS EA 05-Jul-95 332.85 4 41.61 83.21 6.93 110.95
PC Computer SK 11-Jul-95 4,207.70 4 525.96 1,051.93 87.66 1,402.57
8
Great & Partners Limited Partnership Page 2
Financial Statement Depreciation Schedule
Straight line method - Half year convention
Dep Exp
1993 1994 1995 1996 Depr Accumulated
Inventory Asset User Acq. Date Cost Life Depr. Depr. Depr. Depr. 10/31/96 10/31/96
8 MM data sort EA 12-Jul-95 87.84 4 10.98 21.96 1.83 29.28
Computer RA 13-Jul-95 5,521.35 4 690.17 1,380.34 115.03 1,840.45
NDPS EA 19-Jul-95 661.07 4 82.63 165.27 13.77 220.36
2 16MB 70ns 72 pin EA 19-Jul-95 1,235.00 4 154.38 308.75 25.73 411.67
Dell EA 27-Jul-95 4,363.80 4 545.48 1,090.95 90.91 1,454.60
HP Printer RW 08-Aug-95 1,146.24 4 143.28 286.56 23.88 382.08
Dell RW 22-Aug-95 5,691.88 4 711.49 1,422.97 118.58 1,897.29
TVCS tracker license EA 31-Aug-95 3,300.89 4 412.61 825.22 68.77 1,100.30
PVCS Tracker EA 06-Sep-95 1,074.75 4 134.34 268.69 22.39 358.25
Phoenix Networking EA 12-Sep-95 1,150.78 4 143.85 287.70 23.97 383.59
Networking EA 21-Sep-95 1,455.00 4 181.88 363.75 30.31 485.00
Pentium PC DA 26-Sep-95 4,568.55 4 571.07 1,142.14 95.18 1,522.85
Mac Computer MP 28-Sep-95 6,770.20 4 846.28 1,692.55 141.05 2,256.73
Phoenix Networking EA 13-Oct-95 2,789.69 4 348.71 697.42 58.12 929.90
Dell Computer & Monitor EA 16-Oct-95 4,568.55 4 571.07 1,142.14 95.18 1,522.85
Modem/upgrade MP 13-Nov-95 1,297.00 4 162.13 324.25 27.02 432.33
3 Micron Computers EA 26-Nov-95 12,504.00 4 1,563.00 3,126.00 260.50 4,168.00
Sun System EA 27-Nov-95 34,067.00 4 4,258.38 8,516.75 709.73 11,355.67
Dell Powerbook TK 30-Nov-95 5,330.85 4 666.36 1,332.71 111.06 1,776.95
Dell Notebook LR 01-Dec-95 4,229.40 4 528.68 1,057.35 88.11 1,409.80
Gateway computer EA 04-Dec-95 4,356.45 4 544.56 1,089.11 90.76 1,452.15
Gateway computer EA 04-Dec-95 4,429.95 4 553.74 1,107.49 92.29 1,476.65
HP CD Writer EA 15-Dec-95 1,043.40 4 130.43 10.87 108.69
Zip drives MM 31-Dec-95 1,134.31 4 141.79 283.58 23.63 378.10
2 monitors, port floppy EA 31-Dec-95 918.95 4 114.87 229.74 19.14 306.32
Nikon Coolscan Scanner EA 31 Dec-95 1,213.80 4 151.73 303.45 25.29 404.60
4 HP upgrade EA 01-Jan-96 1,936.20 4 242.03 20.17 201.69
nview infinity/video EA 18-Jan-96 4,739.75 4 592.47 49.37 493.72
NDPS EA 05-Feb-96 1,268.30 4 158.54 13.21 132.11
NDPS EA 07-Feb-96 1,085.00 4 135.63 11.30 113.02
NDPS EA 08-Feb 96 1,748.00 4 218.50 18.21 182.08
Powerbook MF 11-Mar-96 3,202.95 4 400.37 33.36 333.64
seagate 9gb elite drive EA 23-Feb-96 2,563.30 4 320.41 26.70 267.01
Gateway 2000 computer JM 07-Mar-96 4,879.65 4 609.96 50.83 508.30
2&4 Gig Banawda RA 01-Apr-96 1,968.71 4 246.09 20.51 205.07
Toshiba PC/cd rom MF 15-Apr-96 4,355.94 4 544.49 45.37 453.74
4 Toshiba laptops (RW BM KC HA) 30-Apr-96 18,317.12 4 2,289.64 190.80 1,908.03
8VC Development Tools EA 28-Mar-96 4,011.00 4 501.38 41.78 417.81
Xircom network port EA 09-Apr-96 2,564.10 4 320.51 26.71 267.09
2VC 4.0 Renewal EA 09-Apr-96 548.00 4 68.50 5.71 57.08
home PC MR 15-Apr-96 500.00 4 62.50 5.21 52.08
2 PC computers NPC EA 18-Apr-96 8,495.00 4 1,061.88 88.49 884.90
PC Computer Dell EA 07-Feb-96 6,248.55 4 781.07 65.09 650.89
1 Zyxol Model EA 18-Apr-96 618.45 4 77.31 6.44 64.42
3 Toshiba PC Desktops MC 12-Apr-96 21,917.43 4 2,739.68 228.31 2,283.07
1 Orange PC board EA 26-Apr-96 2,520.55 4 315.07 26.26 262.56
setup stations for PC's MC 30-Apr-96 1,178.69 4 147.34 12.28 122.78
xircom ethernet AD AD 13-May-96 753.90 4 94.24 7.85 78.53
Connor Ext4/gb G/dd 50Pin SM 21-May-96 1,465.50 4 183.19 15.27 152.66
9
Great & Partners Limited Partnership Page 3
Financial Statement Depreciation Schedule
Straight line method - Half year convention
Dep Exp
1993 1994 1995 1996 Depr Accumulated
Inventory Asset User Acq. Date Cost Life Depr. Depr. Depr. Depr. 10/31/96 10/31/96
2 Toshiba Satellite Pro 15CS AG, AB 31-May-96 6,737.00 4 842.13 70.18 701.77
Forge Printer, 2 monitors EA 29-Apr-96 1,251.83 4 156.48 13.04 130.40
3 laptop w/upgrade RW, MC, 15-May-96 17,007.47 4 2,125.93 177.16 1,771.61
HA
2 compaq, 2 nokia monitors TK, JP, 15-May-96 13,834.75 4 1,729.34 144.11 1,441.12
BS
G6-200 PC & monitors EA 23-May-96 5,173.65 4 646.71 53.89 538.92
mobile web server for R&D MM 30-May-96 5,838.00 4 729.75 60.81 608.13
2 Dell latitude notebook DA, PM 26-Apr-96 12,007.80 4 1,500.98 125.08 1,250.81
Hard drive 1.2G, 17MM IBM SR 04-Jun-96 932.40 4 116.55 9.71 97.13
Computer City Memory Upgrade AG, AB 12-Jun-96 3,033.23 4 379.15 31.60 315.96
2 gateway PC MB, RA 23-Apr-96 9,991.80 4 1,248.98 104.08 1,040.81
1 gateway PC MD 31-May-96 4,485.90 4 560.74 46.73 467.28
upgrade memory MM 19-Jun-96 849.50 4 106.19 8.85 88.49
seagate external HD 4.3 TB 19-Jun-96 1,356.35 4 169.54 14.13 141.29
additional memory HD AG 24-Jun-96 604.36 4 75.55 6.30 62.95
LTE 5200 M1350 computer AB 24-Jun-96 5,153.19 4 644.15 53.68 536.79
Monitor BV 24-Jun-96 735.45 4 91.93 7.66 76.61
0 XX Xxxxxxx Xxxxxx JP 24-Jun-96 1,461.87 4 182.73 15.23 152.28
windows network server EA 24-Jun-96 733.50 4 91.69 7.64 76.41
windows network server EA 24-Jun-96 733.50 4 91.69 7.64 76.41
LTE 5200 M1350 computer oxford 24-Jun-96 5,187.74 4 648.47 54.04 540.39
dome for Velex modem TK 26-Jun-96 541.85 4 67.73 5.64 56.44
additional memory MC 26-Jun-96 621.75 4 77.72 6.48 64.77
2 compaq proliant 4500 EA 06-Jul-96 13,859.85 4 1,732.48 144.37 1,443.73
Wind/U 72 Bit solaris EA 24-Apr-96 12,010.00 4 1,501.25 125.10 1,251.04
credit 2 computers PF 09-Jul-96 (6,168.05) 4 (771.01) (64.25) (642.51)
Toshiba 425CDS P100 JD 13-Aug-96 4,189.80 4 523.73 43.64 436.44
2 HP printers w/accessories EA 23-Aug-96 7,124.98 4 890.62 74.22 742.19
Seagate 4.3 ext. sunsystem EA 12-Aug-96 2,857.25 4 357.16 29.76 297.63
Toshiba PA 122SU-S6C GBarlow 14-Aug-96 5,609.10 4 701.14 58.43 584.28
compaq prosigna 5/120 printer EA 28-Aug-96 4,861.40 4 607.68 50.64 506.40
NDPS Inc EA 10-Spe-96 3,037.00 4 379.63 31.64 316.35
Dell CUS hard drive IBM MM 05-Sep-96 691.95 4 86.49 7.21 72.08
color printer for cd rom EA 10-Sep096 3,037.00 4 379.63 31.64 316.35
PC w/ monitor MM 04-Sep-96 3,950.40 4 493.80 41.15 411.50
Mac powerbook 5300cc MP 19-Sep-96 4,299.00 4 537.38 44.78 447.81
Hard drive, NDPS TBaker 21-Oct-96 884.00 4 110.50 92.08 92.08
Nokia Monitor, NDPS Jswind 17-Oct-96 710.67 4 88.83 74.03 74.03
MS Sql server, NDPS TBaker 17-Oct-96 1,959.30 4 244.91 204.09 204.09
Compaq 2.1 HDD TBaker 25-Oct-96 1,541.59 4 192.70 160.58 160.58
PC&Monitor, Gateway RAlor 08-Aug-96 4,018.65 4 502.33 418.61 418.61
---------- ------------------------------------------------------------
571,030.12 0.00 2,333.85 67,561.72 126,838.47 11,424.33 175,694.31
Leasehold Improvements
Xxxxxx Associates EA 01-Sep-96 1,237.50 5 123.75 10.31 103.13
Furniture
10
Great & Partners Limited Partnership Page 4
Financial Statement Depreciation Schedule
Straight line method - Half year convention
Dep Exp
1993 1994 1995 1996 Depr Accumulated
Inventory Asset User Acq. Date Cost Life Depr. Depr. Depr. Depr. 10/31/96 10/31/96
Office Furniture EA 01-May-95 1,376.55 10 68.83 137.66 11.47 183.54
Office Furniture ED 01-May-95 916.70 10 18.19 91.67 7.64 94.59
Furniture MP 01-Jul-95 1,655.60 10 82.78 165.56 13.80 220.75
Telephone EA 22-Nov-95 690.00 10 34.50 69.00 5.75 92.00
Furniture MP 31-Dec-95 1,653.90 10 82.70 165.39 13.78 220.52
Office Furniture-chair MP 18-Mar-96 262.50 10 26.25 2.19 21.88
Telephone EA 15-Apr-96 787.88 10 78.79 6.57 65.66
Telephone EA 19-Apr-96 762.00 10 76.20 6.35 63.50
Office Furniture MP 10-May-96 569.70 10 56.97 4.75 47.48
Telephone EA 31-May-96 1,990.59 10 99.53 8.29 82.94
Furniture:Xxxxxx XX 01-Jul-96 40,000.00 10 2,000.00 166.67 1,666.67
Furniture DK 20-Sep-96 724.45 10 36.22 3.02 30.19
Telephone cabinet/ports EA 16-Sep-96 2,395.85 10 119.79 9.98 99.83
Furniture EA 18-Sep-96 60,000.00 10 3,000.00 250.00 2,500.00
Furniture:Xxxxxx XX 17-Sep-96 6,050.00 10 302.50 25.21 252.08
5 Tables, Xxxxxx XX 26-Sep-96 525.00 10 26.25 21.88 21.88
------------------------------------------------------
120,360.72 0.00 0.00 287.00 655.53 557.34 5,641.60
----------
Capital Software
Oracle License EA 15-Dec-95 13,665.75 3 2,277.63 4,555.25 379.60 6,073.67
20 SQL server license EA 06-Feb-96 1,134.00 3 189.00 15.75 157.50
meeting maker w/10 servers EA 13-May-96 3,329.55 3 554.93 46.24 462.44
NDPS licenses EA 07-May-96 4,831.05 3 805.18 67.10 675.98
NDPS licenses EA 21-May-96 3,521.41 3 586.90 48.91 491.08
Pilot Software EA 23-Jul-96 5,400.00 3 900.00 75.00 755.00
Oracle workgroup server EA 28-Aug-96 1,218.00 3 203.00 16.92 174.17
support contract w/ PVCS
license EA 30-Aug-96 3,616.90 3 602.82 50.23 502.35
Dynamo 2.1.1 Web server EA 25-Sep-96 5,000.00 3 833.33 69.44 699.44
Software support contract, EA 23-Oct-96 3,023.25 3 503.88 419.90 424.90
Visignia
------------------------------------------------------
44,739.91 1,189.10 10,416.52
---------
Capital Equipment 571,030.12
Furniture & Fixtures 120,360.72
Leasehold Improvements 1,237.50
Capital Software 44,739.91
-----------
Gross Fixed Assets 737,368.25
Less: Accum Depreciation (191,855.56)
------------
Total Long-Term Assets 545,512.69 ------------------------------------------------------
11
SCHEDULE C
ValEX
The ValEX software developed by Exchange Applications automates the planning and
execution of database marketing efforts, marketing investment planning, and
marketing program evaluation in an Open Systems environment. It also supports
the Value Exchange Optimization (TM) methodology.
At October 31, 1996 certain capitalized costs associated with the development of
the software have been transferred to Exchange Applications. These costs
included salaries, labor, employee benefits, payroll taxes, and contractor
expenses for those people involved in the development of the software. These
costs were capitalized after technological feasibility of the product, as
defined in Statement of Financial Accounting Standards No. 86, had been
established. The costs are being amortized over three years beginning in June
1996. The balance of these costs at October 31, 1996 total $1,673,653, net of
$249,265 amortization.
12
SCHEDULE D
Lease between Xxxxxxx Omnibus V Limited Partnership and GPLP executed July 9,
1996*
Agreement dated October 14, 1996 between Federal Express and Grant & Partners,
Inc.
Agreement dated April 9, 1996 between Invesco and GPLP.
Agreement dated July 30, 1996 between Key Corp. and Exchange Applications.
Agreement dated September 3, 1996 between Oxford License and Exchange
Applications.
Agreement dated July 1, 1996 between Pilot Software and GPLP, d/b/a "Exchange
Applications".
Agreement dated November 5, 1996 between NCC and Exchange Applications.
Agreement under negotiations between Sprint and Exchange Applications.
------------
* = consent required
13
SCHEDULE E
APayable
Accounts Payable - Exchange Applications
31-Oct-96
Greater
Less than than
Vendor Invoice Date Amount 30 days 30-60 days 60-90 days 90 days Total
------------------------------------------------------------------------------------------------------------------------------
Xxxxxx 4/10/96 5,000.00 5,000.00 5,000.00
Fedex 5/14/96 203.00 203.00 203.00
Xxxxxx 7/24/96 2,696.40 2,696.40 2,696.40
Winter Wyman 7/30/96 2,625.00 2,625.00 2,625.00
Winter Wyman 8/5/96 1,240.00 1,240.00 1,240.00
Winter Wyman 8/5/96 2,550.00 2,550.00 2,550.00
Xxxxxx 8/7/96 7,980.00 7,980.00 7,980.00
Fifth Business 8/8/96 7,420.00 7,420.00 7,420.00
Gateway 8/8/96 4,018.65 4,018.65 4,018.65
Gartner Group 8/12/96 3,300.00 3,300.00 3,300.00
Xxxxx 8/14/96 2,867.70 2,867.70 2,867.70
Computer City 8/15/96 5,764.50 5,764.50 5,764.50
Computer City 8/16/96 2,820.59 2,820.59 2,820.59
Winter Wyman 8/19/96 1,940.00 1,940.00 1,940.00
Winter Wyman 8/19/96 2,480.00 2,480.00 2,480.00
NDPS 8/23/96 7,124.98 7,124.98 7,124.98
NDPS 8/23/96 38.50 38.50 38.50
NDPS 8/23/96 568.93 568.93 568.93
Computer City 8/26/96 692.50 692.50 692.50
Computer City 8/27/96 10.00 10.00 10.00
CYRK 8/28/96 17,804.40 17,804.40 17,804.40
Fedex 8/28/96 113.00 113.00 113.00
NDPS 8/28/96 4,861.40 4,861.40 4,861.40
Winter Wyman 8/28/96 2,000.00 2,000.00 2,000.00
Fedex 8/30/96 39.00 39.00 39.00
Fedex 8/30/96 33.00 33.00 33.00
Intersoleve 8/30/96 3,616.90 3,616.90 3,616.90
Contract Solutions 8/31/96 1,440.00 1,440.00 1,440.00
Disclosure 8/31/96 33.60 33.60 33.60
Globe tech 8/31/96 4,400.00 4,400.00 4,400.00
Seek 9/3/96 20,250.00 20,250.00 20,250.00
Gateway 9/4/96 3,950.40 3,950.40 3,950.40
Computer City 9/5/96 1.00 1.00 1.00
Dell 9/5/96 691.95 691.95 691.95
Fedex 9/5/96 165.50 165.50 165.50
Rush 9/5/96 262.50 262.50 262.50
Fedex 9/6/96 22.50 22.50 22.50
Contract Solutions 9/7/96 1,440.00 1,440.00 1,440.00
HBS 9/7/96 4,950.00 4,950.00 4,950.00
ProSource 9/7/96 2,240.00 2,240.00 2,240.00
Dining In 9/9/96 155.79 155.79 155.79
Peachtree 9/9/96 122.81 122.81 122.81
rush 9/9/96 78.75 78.75 78.75
Winter Wyman 9/9/96 1,240.00 1,240.00 1,240.00
Xxxxx Assoc 9/10/96 3,037.00 3,037.00 3,037.00
NDPS 9/10/96 2,159.85 2,159.85 2,159.85
Winter Wyman 9/10/96 315.00 315.00 315.00
Winter Wyman 9/10/96 630.00 630.00 630.00
Winter Wyman 9/10/96 1,225.00 1,225.00 1,225.00
Fedex 9/11/96 253.75 253.75 253.75
Seek 9/11/96 10,000.00 10,000.00 10,000.00
Seek 9/11/96 9,000.00 9,000.00 9,000.00
NDPS 9/12/96 50.50 50.50 50.50
Winter Wyman 9/12/96 1,700.00 1,700.00 1,700.00
Bank Admin 9/13/96 125.00 125.00 125.00
Contract Solutions 9/14/96 1,755.00 1,755.00 1,755.00
ProSource 9/14/96 2,660.00 2,660.00 2,660.00
Dining In 9/15/96 526.37 526.37 526.37
14
Greater
Less than than
Vendor Invoice Date Amount 30 days 30-60 days 60-90 days 90 days Total
---------------------------------------------------------------------------------------------------------------------------
Fifth Business 9/15/96 6,368.51 6,368.51 6,368.51
NDPS 9/16/96 56.60 56.60 56.60
NDPS 9/16/96 973.35 973.35 973.35
Xxxxxx 9/17/96 6,050.00 6,050.00 6,050.00
Multimedia 9/17/96 355.58 355.58 355.58
NDPS 9/17/96 195.93 195.93 195.93
NDPS 9/17/96 143.91 143.91 143.91
Sir Speedy 9/17/96 556.96 556.96 556.96
Winter Wyman 9/17/96 2,680.00 2,680.00 2,680.00
Pilot 9/18/96 1,500.00 1,500.00 1,500.00
BBN Planet 9/19/96 450.00 450.00 450.00
NDPS 9/19/96 634.38 634.38 634.38
Computer City 9/20/96 772.60 772.60 772.60
Xxxxxx 9/20/96 3,000.00 3,000.00 3,000.00
Fedex 9/20/96 61.00 61.00 61.00
NDPS 9/20/96 151.86 151.86 151.86
Sir Speedy 9/20/96 3,209.96 3,209.96 3,209.96
Sir Speedy 9/20/96 496.84 496.84 496.84
Contract Solutions 9/21/96 2,698.00 2,698.00 2,698.00
Contract Solutions 9/21/96 1,785.00 1,785.00 1,785.00
ProSource 9/21/96 2,100.00 2,100.00 2,100.00
Dining In 9/22/96 251.45 251.45 251.45
Kinkos 9/22/96 41.83 41.83 41.83
Nynex 9/24/96 932.59 932.59 932.59
Seek 9/24/96 10,500.00 10,500.00 10,500.00
Art Tech 9/25/96 5,000.00 5,000.00 5,000.00
Xxxxx 9/25/96 210.00 210.00 210.00
Crimson Tech 9/25/96 70.50 70.50 70.50
Crimson Tech 9/25/96 64.93 64.93 64.93
Fedex 9/25/96 428.00 428.00 428.00
Rentokil 9/25/96 54.78 54.78 54.78
Rentokil 9/25/96 14.57 14.57 14.57
Winter Wyman 9/25/96 2,300.00 2,300.00 2,300.00
Winter Wyman 9/25/96 3,140.00 3,140.00 3,140.00
Xxxxxx 9/26/96 525.00 525.00 525.00
Data Securities 9/26/96 3,600.00 3,600.00 3,600.00
Pilot 9/26/96 25,968.75 25,968.75 25,968.75
Xxxxx 9/26/96 35.16 35.16 35.16
Fedex 9/27/96 103.50 103.50 103.50
NDPS 9/27/96 1,537.20 1,537.20 1,537.20
Xxxxxxx Xxxxx 9/27/96 1,000.00 1,000.00 1,000.00
Contract Solutions 9/28/96 2,840.00 2,840.00 2,840.00
Contract Solutions 9/28/96 2,840.00 2,840.00 2,840.00
Contract Solutions 9/28/96 2,400.00 2,400.00 2,400.00
Contract Solutions 9/28/96 2,400.00 2,400.00 2,400.00
Pro Source 9/28/96 2,800.00 2,800.00 2,800.00
Dining In 9/29/96 151.17 151.17 151.17
Bertuchis 9/30/96 127.99 127.99 127.99
CMP 9/30/96 49.38 49.38 49.38
CYRK 9/30/96 17,230.07 17,230.07 17,230.07
Rebeccas 9/30/96 263.53 263.53 263.53
Rentokil 9/30/96 14.36 14.36 14.36
Winter Wyman 9/30/96 2,400.00 2,400.00 2,400.00
Winter Wyman 9/30/96 2,962.50 2,962.50 2,962.50
Winter Wyman 9/30/96 2,587.50 2,587.50 2,587.50
Winter Wyman 9/30/96 2,250.00 2,250.00 2,250.00
Rentokil 10/1/96 331.07 331.07 331.07
Ryder 10/1/96 456.34 456.34 456.34
Wellbridge 10/1/96 1,484.00 1,484.00 1,484.00
Fedex 10/2/96 623.00 623.00 623.00
NDPS 10/2/96 1,433.25 1,433.25 1,433.25
Milk St Cafe 10/3/96 111.98 111.98 111.98
Rush 10/3/96 262.50 262.50 262.50
Xxxxxx 10/4/96 6,337.66 6,337.66 6,337.66
Globe tech 10/5/96 3,040.00 3,040.00 3,040.00
Pro Source 10/5/96 3,010.00 3,010.00 3,010.00
Page 2
15
Greater
Less than than
Vendor Invoice Date Amount 30 days 30-60 days 60-90 days 90 days Total
---------------------------------------------------------------------------------------------------------------------------
Nynex 10/6/96 444.74 444.74 444.74
Global 10/7/96 6.78 6.78 6.78
Sir Speedy 10/7/96 70.25 70.25 70.25
Winter Wyman 10/7/96 2,260.00 2,260.00 2,260.00
NDPS 10/8/96 99.60 99.60 99.60
Xxxxxxxx 10/8/96 1,864.84 1,864.84 1,864.84
Fedex 10/9/96 367.25 367.25 367.25
Rush 10/9/96 78.75 78.75 78.75
UST 10/9/96 1,198.74 1,198.74 1,198.74
Sir Speedy 10/10/96 504.09 504.09 504.09
Fedex 10/11/96 29.14 29.14 29.14
Contract Solutions 10/12/96 3,408.00 3,408.00 3,408.00
Pro Source 10/12/96 2,800.00 2,800.00 2,800.00
CYRK 10/14/96 1,489.00 1,489.00 1,489.00
XxXxxxxxx 10/14/96 764.14 764.14 764.14
Xxxxxxxx 10/14/96 2,170.77 2,170.77 2,170.77
Database 10/15/96 34.00 34.00 34.00
XxXxxxx 10/15/96 1,478.29 1,478.29 1,478.29
Unitel 10/15/96 612.50 612.50 612.50
Xxxxxx 10/15/96 2,008.52 2,008.52 2,008.52
Fedex 10/16/96 431.00 431.00 431.00
Frontier 10/16/96 2,961.32 2,961.32 2,961.32
Xxxxxxxx 10/16/96 161.55 161.55 161.55
Account Pros 10/17/96 16,250.00 16,250.00 16,250.00
Xxxxxxx 10/17/96 20.88 20.88 20.88
Xxxxxxxxx 10/17/96 462.51 462.51 462.51
NDPS 10/17/96 750.67 750.67 750.67
NDPS 10/17/96 1,959.30 1,959.30 1,959.30
Sir Speedy 10/17/96 38.24 38.24 38.24
Xxxxx 10/17/96 1,255.62 1,255.62 1,255.62
Fedex 10/18/96 60.17 60.17 60.17
Xxxxxxx 10/18/96 465.00 465.00 465.00
Kasida 10/18/96 1,935.70 1,935.70 1,935.70
Ryder 10/18/96 338.27 338.27 338.27
Xxxxxxxx 10/18/96 3,981.10 3,981.10 3,981.10
Xxxxxxxx 10/18/96 1,441.38 1,441.38 1,441.38
Contract Solutions 10/19/96 2,840.00 2,840.00 2,840.00
Cox 10/20/96 1,372.50 1,372.50 1,372.50
Xxxxxxxxx 10/21/96 1,133.35 1,133.35 1,133.35
NDPS 10/21/96 844.00 844.00 844.00
NDPS 10/21/96 811.65 811.65 811.65
Sir Speedy 10/21/96 102.01 102.01 102.01
Greenfield 10/22/96 1,258.80 1,258.80 1,258.80
Nynex 10/22/96 218.46 218.46 218.46
Xxxx 10/22/96 69.00 69.00 69.00
Trust Consultants 10/22/96 330.00 330.00 330.00
Winter Wyman 10/22/96 1,200.00 1,200.00 1,200.00
Xxxxxxxxx 10/23/96 937.50 937.50 937.50
Xxxxxxx 10/23/96 39.81 39.81 39.81
NDPS 10/23/96 403.07 403.07 403.07
Visignic 10/23/96 3,023.25 3,023.25 3,023.25
Fedex 10/24/96 262.75 262.75 262.75
Nynex 10/24/96 651.07 651.07 651.07
Nynex 10/24/96 244.77 244.77 244.77
Winter Wyman 10/24/96 1,860.00 1,860.00 1,860.00
NDPS 10/25/96 1,541.59 1,541.59 1,541.59
Unitel 10/25/96 96.16 96.16 96.16
Contract Solutions 10/26/96 2,840.00 2,840.00 2,840.00
Pro Source 10/26/96 1,960.00 1,960.00 1,960.00
Pro Source 10/26/96 16,000.00 16,000.00 16,000.00
XxXxxxxxx 10/27/96 1,390.55 1,390.55 1,390.55
XxXxxxxxx 10/27/96 924.50 924.50 924.50
Xxxxxxx 10/28/96 80.52 80.52 80.52
Kasida 10/28/96 2,147.85 2,147.85 2,147.85
NDPS 10/28/96 214.00 214.00 214.00
Papaiaounou 10/28/96 160.54 160.54 160.54
Page 3
16
Greater
Less than than
Vendor Invoice Date Amount 30 days 30-60 days 60-90 days 90 days Total
---------------------------------------------------------------------------------------------------------------------------
Xxxxxxxx 10/28/96 908.79 908.79 908.79
Xxxxxxxxx 10/28/96 7,354.31 7,354.31 7,354.31
Xxxxxxx 10/28/96 5.19 5.19 5.19
Sir Speedy 10/29/96 48.00 48.00 48.00
Winter Wyman 10/30/96 2,060.00 2,060.00 2,060.00
Winter Wyman 10/30/96 2,662.50 2,662.50 2,662.50
Winter Wyman 10/30/96 2,475.00 2,475.00 2,475.00
Winter Wyman 10/30/96 2,737.50 2,737.50 2,737.50
Winter Wyman 10/30/96 1,987.50 1,987.50 1,987.50
Winter Wyman 10/30/96 1,912.50 1,912.50 1,912.50
Winter Wyman 10/30/96 2,662.50 2,662.50 2,662.50
Boston Edison 10/31/96 1,810.49 1,810.49 1,810.49
Fedex 10/31/96 344.25 344.25 344.25
Kasida 10/31/96 1,330.95 1,330.95 1,330.95
Xxxxx 10/31/96 32.00 32.00 32.00
Marathon Messenger 10/31/96 61.50 61.50 61.50
NDPS 10/31/96 129.12 129.12 129.12
Xxxxxxxxxx 10/31/96 311.10 311.10 311.10
Ryder 11/1/96 58.73 58.73 58.73
Xxxxx 11/1/96 26.00 26.00 26.00
Xxxxxxx 11/4/96 119.70 119.70 119.70
Winter Wyman 10/16/09 1,960.00 1,960.00 1,960.00
Accrued A/P
DMA 4,942.50 4,942.50 4,942.50
Gartner Group 25.00 25.00 25.00
National PC Systems (297.16) (297.16) (297.16)
-------------------------------------------------------------------------------
Total Accounts Payable 447,943.54 151,917.58 200,343.91 85,157.65 10,524.40 447,943.54
Page 4
17
SCHEDULE F
Bonus sch
--------------------------------------------------------------------------------------------------------------------
Exchange Applications
--------------------------------------------------------------------------------------------------------------------
Current Employ. Actual Target Target 10/31/96
Employee Salary Factor 96 Salary Bonus % Bonus $ Bonus
-------- ------- ------ --------- ------- -------- --------
--------------------------------------------------------------------------------------------------------------------
A. SOFTWARE
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxx, Xxxxxxx 83,500 1.00 83,500 0.10 8,350 6,930.50
--------------------------------------------------------------------------------------------------------------------
Xxxxxxx, Xxx 85,000 1.00 85,000 0.10 8,500 7,055.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxxx 54,000 1.00 54,000 0.10 5,400 4,482.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxx, Xxxxxxx 52,000 1.00 52,000 0.13 6,760 5,610.80
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxxx, Xxxx 85,000 1.00 85,000 0.15 12,750 10,582.50
--------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxxxxx 75,000 0.83 62,250 0.13 8,093 6,716.78
--------------------------------------------------------------------------------------------------------------------
XxXxxxx, Xxxxxxxx 65,000 1.00 65,000 0.10 6,500 5,395.00
--------------------------------------------------------------------------------------------------------------------
XxXxxxxxx, Xxxx 115,500 1.00 115,500 0.16 18,480 15,338.40
--------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxxxxxxxx 75,000 1.00 75,000 0.18 13,500 11,205.00
--------------------------------------------------------------------------------------------------------------------
Xxxxx, Xxx 64,000 1.00 64,000 0.10 6,400 5,312.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxx, Xxx 96,717 1.00 96,717 0.10 9,672 8,027.51
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxxx, Xxxxxx 44,800 1.00 44,800 0.00 0 000
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxxxx, Xxxxxxx 50,400 1.00 50,400 0.12 6,048 5,019.84
--------- ------- ---- ------- ----------
--------------------------------------------------------------------------------------------------------------------
945,917 933,167 0.12 110,452 91,675.33
--------------------------------------------------------------------------------------------------------------------
B. SOFTWARE OPERATIONS
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxxx, Xxxxx 120,000 1.00 120,000 0.00 0 0.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxx 75,000 1.00 75,000 0.20 15,000 12,450.00
--------------------------------------------------------------------------------------------------------------------
XxXxxx, Xxx 110,000 0.92 100,833 0.82 82,683 68,627.17
--------------------------------------------------------------------------------------------------------------------
New salesman 80,000 0.25 20,000 0.00 0 0.00
--------------------------------------------------------------------------------------------------------------------
Xxxx, Xxxxx 37,000 0.75 27,750 0.15 4,163 3,454.88
--------- ------- ---- ------- ----------
--------------------------------------------------------------------------------------------------------------------
422,000 343,583 0.30 101,846 84,532.04
--------------------------------------------------------------------------------------------------------------------
C. DATABASE SERVICES
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxxx, Xxxxxxx 125,000 0.75 93,750 0.60 56,250 46,687.50
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxx, Xxxx 86,000 0.75 64,500 0.30 19,350 16,060.50
--------------------------------------------------------------------------------------------------------------------
Paul's Assistant 55,000 0.33 18,150 0.20 3,630 3,012.90
--------------------------------------------------------------------------------------------------------------------
Xxxx, Xxxxx 34,000 0.33 11,220 0.15 1,683 1,396.89
--------------------------------------------------------------------------------------------------------------------
Grinder #1 55,000 0.33 18,150 0.20 3,630 3,012.90
--------------------------------------------------------------------------------------------------------------------
Grinders #2,3 @85k + 20% 170,000 0.33 56,100 0.00 0 0.00
--------------------------------------------------------------------------------------------------------------------
Grinders #4-9 @85k + 20% 510,000 0.30 153,000 0.00 0 0.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxx, Xxxxx 98,000 1.00 98,000 0.25 24,500 20,335.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxx, Xxxxx 90,000 1.00 90,000 0.33 29,700 24,651.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxx, Xxxxx 125,000 0.60 75,000 0.60 45,000 37,350.00
--------------------------------------------------------------------------------------------------------------------
Xxxx, Xxx 67,000 0.60 40,200 0.20 8,040 6,673.20
--------------------------------------------------------------------------------------------------------------------
Xxxxx, Xxx 105,000 0.50 52,500 0.25 13,125 10,893.75
--------------------------------------------------------------------------------------------------------------------
Xxxxxxx, Xxxxxxx 48,000 0.60 28,800 0.10 2,880 2,390.40
--------------------------------------------------------------------------------------------------------------------
Wai, Barney 48,000 0.60 28,800 0.10 2,880 2,390.40
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxxxx, Xxxx 75,000 0.60 45,000 0.20 9,000 7,470.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxx, Xxxx 73,500 0.50 36,750 0.20 7,350 6,100.50
--------- ------- ---- ------- ----------
--------------------------------------------------------------------------------------------------------------------
1,764,500 909,920 0.25 227,018 188,424.94
--------------------------------------------------------------------------------------------------------------------
D. MARKETING
--------------------------------------------------------------------------------------------------------------------
Xxx, Xxxx 150,000 0.70 105,000 0.67 70,000 58,100.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxx 80,000 1.00 80,000 0.38 30,000 24,900.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxx, Xxx 160,000 0.70 112,000 0.40 44,800 37,184.00
--------------------------------------------------------------------------------------------------------------------
Xxxxx, Xxxxxxx 80,000 0.38 30,400 0.15 4,560 3,784.80
--------------------------------------------------------------------------------------------------------------------
Xxxxxxx, Xxx 37,500 1.00 37,500 0.15 5,625 4,668.75
--------------------------------------------------------------------------------------------------------------------
Xxxxx, Xxx 155,000 0.63 96,875 0.80 77,500 64,325.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxx 120,000 1.00 120,000 0.67 80,040 66,433.20
--------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxxx 65,000 0.43 27,950 0.15 4,193 3,479.78
--------------------------------------------------------------------------------------------------------------------
Dankosek, Xxxxx 37,000 0.50 18,500 0.00 0 0.00
--------- ------- ---- ------- ----------
--------------------------------------------------------------------------------------------------------------------
884,500 628,225 0.50 316,718 262,875.53
--------------------------------------------------------------------------------------------------------------------
18
--------------------------------------------------------------------------------------------------------------------
Current Employ. Actual Target Target 10/31/96
Employee Salary Factor 96 Salary Bonus % Bonus $ Bonus
-------- ------- ------ --------- ------- -------- --------
--------------------------------------------------------------------------------------------------------------------
E. MANAGEMENT
--------------------------------------------------------------------------------------------------------------------
Xxxxxxx, Xxxx 300,000 1.00 300,000 0.33 100,000 83,000.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxx, Xxxx 200,000 1.00 200,000 0.50 100,000 83,000.00
--------------------------------------------------------------------------------------------------------------------
Xxxxxxxxx, Xxxx (3 people) 225,000 1.00 225,000 0.52 116,663 96,829.88
--------------------------------------------------------------------------------------------------------------------
Xxxxxx, Xxxxxxxx 32,000 0.50 16,000 0.00 0 0.00
--------- --------- ---- --------- ----------
--------------------------------------------------------------------------------------------------------------------
757,000 741,000 0.43 316,663 262,829.88
--------------------------------------------------------------------------------------------------------------------
Totals 4,773,917 3,555,895 0.30 1,072,696 890,338
--------------------------------------------------------------------------------------------------------------------
Less advanced -104,666 -104,666
--------------------------------------------------------------------------------------------------------------------
Total cash needed (3-97) 968,030 785,672
--------------------------------------------------------------------------------------------------------------------
Share of Xxxx and Xxxxxxx 8,300
--------------------------------------------------------------------------------------------------------------------
793,972
--------------------------------------------------------------------------------------------------------------------
Page 2
