Consulting Agreement - NCT Group Inc. and SpringerRun Inc.
[NCT Letter Head]
Dated as of July 2, 2003
SpringerRun, Inc.
313 Stanwich Rd
Greenwich, CT 06830
Attention: Mr. John J. McCloy II
RE: CONSULTING AGREEMENT
Dear Mr. McCloy:
This will confirm the arrangements, terms and conditions pursuant to which
SpringerRun, Inc. ("Consultant"), has been retained to serve as a consultant and
advisor to NCT Group, Inc. (the "Company," as further defined in Paragraph 13(c)
hereof). The undersigned hereby agree to the following terms and conditions:
1. Duties of Consultant: Consultant will provide such consulting services and
advice pertaining to the Company's business affairs as the Company may from
time to time reasonably request. Without limiting the generality of the
foregoing, Consultant will assist the Company in finding licensing and
distribution agreements, equity capital, debt financing and joint venture
partners. "Distribution agreements," as used in this Agreement, includes
master distributor agreements, master reseller agreements, reseller
agreements and direct end user agreements. The services described herein
shall be rendered by Consultant under the direction of the Company and at
such time, place and in such manner (whether by conference, telephone,
letter or otherwise) as the Company and Consultant may mutually determine.
2. Term of Agreement: The initial term of this Agreement shall begin as of the
date hereof and be for a one-year period, but will automatically be
extended beyond the expiration of such initial term for additional
consecutive one-year terms upon the anniversary of the commencement of each
one-year term unless terminated by either party upon written notice to the
other no less than 30 days prior to the expiration of each respective term.
3. Available Time: Consultant shall make available such time as it, in its
sole discretion, shall deem appropriate for the performance of its
obligations under this Agreement. Consultant may perform consulting or
other services for other companies, except that, during the term of this
Agreement, it may not do so for companies that directly compete with the
Company.
4. Compensation: As compensation for Consultant's services hereunder, the
Company shall promptly pay to Consultant the following:
(a) Raising Capital and Debt: A finder's fee shall be paid to Consultant
of six percent (6%) of any Equity Capital (as defined below) and one
percent (1%) of any debt financing raised for the Company from those
parties listed as "Business Targets" on Schedule A hereto. Consultant
shall also be issued warrants exercisable two years after issuance to
purchase an amount of equity in the Company equal to 5% of any Equity
Capital sold to Business Targets, at the same price as the Equity
Capital sold. "Equity Capital," as used in this provision, shall
include funds used to
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2
NCT Group, Inc.
purchase (i) debt instruments that are convertible into equity, (ii)
"put" options to acquire equity, (iii) preferred stock of any nature
and (iv) any other Company obligations in which the holder has rights
to acquire Company equity of any kind, even if in addition to a right
of repayment of debt. In the case of debt combined with a right to
acquire Company equity (e.g., convertible debt), the finder's fee
shall be 1% of the debt financing raised and, if the right to acquire
Company equity is subsequently exercised (e.g., the debt is
converted), an additional 5% of the original debt financing raised,
for a total of 6%.
(b) Licensing and Distribution Revenues: A finder's fee shall be paid to
Consultant of seven per cent (7%) of the Contract Revenues (as defined
below) received by the Company, when received, under any licensing
and/or distribution agreements between the Company and those parties
listed on Schedule A hereto as Business Targets. For purposes of this
Agreement, "Contract Revenues" are defined as all revenues received by
the Company under a licensing and/or distribution agreement between
the Company and a Business Target, less verifiable direct costs
incurred by the Company in delivery of the license, services or
products required by such agreement. The 7% finder's fee, as discussed
above, shall be paid for a period of three years from the date that
Contract Revenues are first received by the Company from each Business
Target listed on Schedule A, and thereafter, the fee shall be 5% of
Contract Revenues from such Business Target.
(c) Joint Ventures, etc.: In the event the Company enters into a joint
venture, partnership or other business relationship with any Business
Target that results in gross revenues being paid to the Company,
Consultant shall receive a fee of seven percent (7%) of such gross
revenues, when received by the Company, that result from the
aforementioned, less verifiable direct costs incurred by the Company
in delivery of any license, services or products required by such
business relationship. The 7% finder's fee, as discussed above, shall
be paid for a period of three years from the date that gross revenues
are first received from each Business Target listed on Schedule A, and
thereafter, the fee shall be 5% of Gross Revenues from such Business
Target.
For purposes of this Agreement, Consultant's compensation shall be based on
amounts raised or revenues received in connection with the applicable
transaction by the Company, of any nature, including any legal, beneficial
or equitable interest in a business such as stock, stock options,
partnership interests, membership interests, beneficial trust interests and
similar types of interests, as well as any deferred compensation.
Consultant may request that any cash fee described above be given as equity
in the Company instead of cash. The Company at its sole discretion may
decide to honor the request. If the Company decides to honor the request,
the price of the equity will be mutually agreed upon by the parties at the
time of the request but in no event will such price be greater than the
price attributed by the then most recent sale of equity by the Company.
Consultant and the Company may, on a comparable basis, agree that
Consultant will receive equity in any joint venture or similar entity
referred to in Paragraph 4(c) above in lieu of all or part of a cash fee
provided for herein.
5. Nature of Schedule A: A person or entity may be added as a Business Target
in Schedule A only upon the prior written consent of the Company, which
consent shall not be unreasonably withheld. Any Business Target may be
removed from Schedule A by the Company via written notice to Consultant if
such Business Target does not enter into a business relationship with the
Company within six months of its inclusion on Schedule A. If, in the
Company's opinion at the end of such six-month period, (a) reasonable
progress is being made towards entering into a business relationship or (b)
the lack of a business relationship is the result solely of factors outside
Consultant's and the Business Target's control, the Company shall refrain
from effecting such removal until such time as these two conditions are no
longer the case. Consultant's rights with respect to Business Targets shall
<PAGE>
3
NCT Group, Inc.
be exclusive during the period in which they are on Schedule A.
6. Expenses: If Consultant uses other persons or entities to assist it in
performing its duties under this Agreement (e.g., co-finders or agents),
Consultant shall be responsible for any compensation to such persons or
entities, unless otherwise agreed in advance in writing by the Company.
Expenses incurred by Consultant in performing its duties under this
Agreement will be paid by Consultant; provided, however, that the Company
may at its sole discretion advance Consultant reasonable out-of-pocket
expenses, which expenses shall be repaid as setoffs against compensation to
Consultant hereunder and shall be documented by Consultant.
7. Relationship: Nothing herein shall constitute Consultant as an employee or
agent of the Company, it being understood that Consultant will be an
independent contractor with respect to the Company. Except to such extent
as might hereinafter be expressly agreed in writing in advance for a
particular purpose, Consultant shall not have the authority to obligate or
commit the Company in any manner whatsoever.
8. Information: The Company acknowledges that, in providing services under
this Agreement Consultant will rely on information furnished by the Company
concerning the Company's business affairs without independent certification
and represents that such information will be materially complete and
correct.
9. Confidentiality: Except as necessary in the course of performing its duties
hereunder, Consultant shall not disclose any trade secrets, know-how or
other proprietary information of the Company learned as a result of this
Agreement or Consultant's performance hereunder (collectively,
"Information"), unless such Information has become generally known to the
public through no fault of Consultant. Upon request from the Company,
Consultant shall promptly return to the Company all originals and copies of
Information in its possession, custody or control following the expiration
or any termination of this Agreement. This Paragraph 9 shall survive the
expiration or any termination of this Agreement.
10. Company Agreements: Nothing in this Agreement shall obligate the Company to
enter into any agreement or business relationship with any third party;
provided, however, that the Company will exert reasonable commercial
efforts to execute agreements and consummate the creation of business
relationships with Business Targets if negotiations between the Company and
the applicable Business Target have begun. Consultant acknowledges that the
Company may, as a result of contractual restrictions (e.g., rights of
exclusivity of third parties) now existing or hereafter arising, be (a)
prohibited from entering into certain agreements or business relationships
with Business Targets or (b) permitted to enter into certain agreements or
business relationships with Business Targets only with the participation of
third parties thereby potentially reducing the amounts received by the
Company and hence Consultant's compensation hereunder.
11. Assignment: This Agreement shall not be assignable by either party except
(a) with the other party's prior written consent or (b) to an affiliate of
the assigning party with prior written notice to the other party. This
Agreement shall be binding upon the parties and their respective
successors-in-interest and permitted assigns.
12. Governing Law: This Agreement shall be deemed to be a contract made under
the laws of the State of Connecticut and for all purposes shall be
construed in accordance with the laws of such State.
<PAGE>
4
NCT Group, Inc.
13. Miscellaneous:
(a) The Company shall provide Consultant, in regard to any transaction for
which compensation is due to Consultant hereunder, with timely copies
of all letters of intent, offers, counter-offers, final agreements,
closing statements and any other information or materials that are
pertinent to calculating such compensation, including copies of
payments and the dates thereof.
(b) Each of the undersigned signatories, individually and on behalf of
Company and Consultant, respectively, represents and warrants that he
or she has the authority to enter into this Agreement.
(c) The "Company," as used in this Agreement, shall mean NCT Group, Inc.
and any of its affiliates.
(d) No communications, consents and other notices hereunder shall be
effective unless in writing and delivered in person, by recognized
commercial courier, by telecopy, by certified mail (postage prepaid,
return receipt requested) or by e-mail, properly directed to the
intended recipient at its last known address, telecopy number or
e-mail address (in the case of the Company, Attn: Michael J. Parrella;
in the case of Consultant, Attn: John J. McCloy II and/or John J.
McCloy III).
(e) This Agreement sets forth the entire agreement between the parties
with respect to the subject matter hereof and supersedes any and all
other prior or contemporaneous agreements or understandings with
respect to such subject matter.
Please evidence your agreement to and acceptance of all of the foregoing by
signing where indicated below, whereupon this Agreement shall become binding
between us.
Very truly yours,
NCT GROUP, INC.
By: /s/ Michael J. Parrella
-----------------------------------------
Name: Michael J. Parrella
Title: Chairman & Chief Executive Officer
AGREED AND ACCEPTED:
SpringerRun, Inc.
By: /s/ John J. McCloy II
-----------------------------------------
John J. McCloy II
Chief Executive Officer
-- and --
By: /s/ John J. McCloy III
-----------------------------------------
John J. McCloy III
President
<PAGE>
5
NCT Group, Inc.
Schedule A
----------
BUSINESS TARGETS
----------------
(Entries in the "Headquarter Country" column are noted below for
reference only and are not intended as a geographical
limitation on the rights of Consultant under this Agreement.)
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
@ YoInternet Solutions 7/21/2003 UK
--------------------------------------------------------------------------------
1&1 Internet Limited 7/21/2003 UK
--------------------------------------------------------------------------------
1st Easy Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
3 10/21/2003 UK
--------------------------------------------------------------------------------
8el (Aggregated Telecom) 7/2/2003 UK
--------------------------------------------------------------------------------
9 Telecom 8/1/2003 France
--------------------------------------------------------------------------------
A L Digital Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
AA 11/17/2003 USA
--------------------------------------------------------------------------------
Aabel Web Design Services 7/21/2003 UK
--------------------------------------------------------------------------------
Abel Internet 7/21/2003 UK
--------------------------------------------------------------------------------
Ace Internet 7/21/2003 UK
--------------------------------------------------------------------------------
AdeptWeb Ltd 7/21/2003 UK
--------------------------------------------------------------------------------
ADSL-Now! 7/21/2003 UK
--------------------------------------------------------------------------------
Affinity E-Commerce Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Affinity Wireless 7/2/2003 UK
--------------------------------------------------------------------------------
Aflex Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Air India 7/25/2003 India
--------------------------------------------------------------------------------
Airtel 10/21/2003 India
--------------------------------------------------------------------------------
Akhter 11/17/2003 India
--------------------------------------------------------------------------------
Albion.NET 7/21/2003 UK
--------------------------------------------------------------------------------
All Online Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Allianz/Dresdener Bank 7/2/2003 Germany
--------------------------------------------------------------------------------
Altaire Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Altitude Telecom 8/1/2003 France
--------------------------------------------------------------------------------
Altohiway Limited 7/21/2003 UK
--------------------------------------------------------------------------------
Ambrit Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Andrews & Arnold 7/21/2003 UK
--------------------------------------------------------------------------------
Applica Broadband 7/21/2003 UK
--------------------------------------------------------------------------------
Aria 7/5/2003 Turkey
--------------------------------------------------------------------------------
Arrange It 2000 Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Ashbury (U K) Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Askalix Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Astra Associates Ltd 7/21/2003 UK
--------------------------------------------------------------------------------
Atlas Telecom 8/1/2003 France
--------------------------------------------------------------------------------
Audi 7/2/2003 Germany
--------------------------------------------------------------------------------
AVC Mobility 11/17/2003 UK
--------------------------------------------------------------------------------
Avenir Telecom 10/1/2003 France
--------------------------------------------------------------------------------
Banco di Roma 8/1/2003 Italy
--------------------------------------------------------------------------------
Bank March - Spain 11/17/2003 Spain
--------------------------------------------------------------------------------
Banque Eduard Constant 11/17/2003 Spain
--------------------------------------------------------------------------------
<PAGE>
6
NCT Group. Inc.
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
Barthy 11/17/2003 UK
--------------------------------------------------------------------------------
Base 7/25/2003 Belgium
--------------------------------------------------------------------------------
Belgacom 7/25/2003 Belgium
--------------------------------------------------------------------------------
Bewrlusconi 8/1/2003 Italy
--------------------------------------------------------------------------------
Bhahti Teelcom 10/21/2003 India
--------------------------------------------------------------------------------
BISCit 7/21/2003 UK
--------------------------------------------------------------------------------
Blah Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Blue Sky 11/17/2003 UK
--------------------------------------------------------------------------------
BMW 7/2/2003 Germany
--------------------------------------------------------------------------------
Boltblue broadband 7/21/2003 UK
--------------------------------------------------------------------------------
Bouygues Telecom 8/1/2003 France
--------------------------------------------------------------------------------
BPL 10/21/2003 India
--------------------------------------------------------------------------------
breathe.com 7/21/2003 UK
--------------------------------------------------------------------------------
British Airways 11/17/2003 UK
--------------------------------------------------------------------------------
British Gas 11/17/2003 UK
--------------------------------------------------------------------------------
British Military 7/2/2003 UK
--------------------------------------------------------------------------------
British Premier Soccer League 7/2/2003 UK
--------------------------------------------------------------------------------
BSNL 10/21/2003 India
--------------------------------------------------------------------------------
Bulgaria - nementschek 11/17/2003 Bulgaria
--------------------------------------------------------------------------------
Bulgaria Telecom 11/17/2003 Bulgaria
--------------------------------------------------------------------------------
Bulldog Communications1 7/21/2003 UK
--------------------------------------------------------------------------------
Bulletin Board Systems Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Business Serve plc 7/21/2003 UK
--------------------------------------------------------------------------------
Bytel Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
C & A 7/25/2003 Switzerland
--------------------------------------------------------------------------------
C 2 Internet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Cable & Wireless Jamaica 7/2/2003 Jamaica
--------------------------------------------------------------------------------
Cairn-Systems 7/21/2003 UK
--------------------------------------------------------------------------------
Canal 10/1/2003 France
--------------------------------------------------------------------------------
Canal Satellite 10/1/2003 France
--------------------------------------------------------------------------------
CannonsLA Fitness 11/17/2003 UK
--------------------------------------------------------------------------------
Caparo 11/17/2003 UK
--------------------------------------------------------------------------------
Cardtetck 11/17/2003 UK
--------------------------------------------------------------------------------
Cardwell Communicatios 11/17/2003 UK
--------------------------------------------------------------------------------
Carphone Warehouse 10/21/2003 UK
--------------------------------------------------------------------------------
Catalyst Internet Design 7/21/2003 UK
--------------------------------------------------------------------------------
Cegetel Group 8/1/2003 France
--------------------------------------------------------------------------------
Centrenet 7/21/2003 UK
--------------------------------------------------------------------------------
Centrica 11/17/2003 Spain
--------------------------------------------------------------------------------
City Netgates Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Clara.net 7/21/2003 UK
--------------------------------------------------------------------------------
Club Internet 8/1/2003 France
--------------------------------------------------------------------------------
Coca Cola EMEA 7/25/2003 UK
--------------------------------------------------------------------------------
Codinet 7/25/2003 Belgium
--------------------------------------------------------------------------------
----------------
1 Not related to Bulldog Communications, Inc., the Delaware corporation.
<PAGE>
7
NCT Group, Inc.
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
Cogent UK 7/25/2003 UK
--------------------------------------------------------------------------------
COLT Telecommunications 7/21/2003 UK
--------------------------------------------------------------------------------
Comag Computers 7/21/2003 UK
--------------------------------------------------------------------------------
Commercial Internet Services Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Commerzbank 7/2/2003 Germany
--------------------------------------------------------------------------------
Community Internet Plc 7/21/2003 UK
--------------------------------------------------------------------------------
Completel 8/1/2003 France
--------------------------------------------------------------------------------
Conference on the Web Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Custom Access 7/21/2003 UK
--------------------------------------------------------------------------------
Cybase Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Cyberquest U K 7/21/2003 UK
--------------------------------------------------------------------------------
Daimler Chrysler 7/21/2003 UK
--------------------------------------------------------------------------------
Data 7/25/2003 India
--------------------------------------------------------------------------------
Data Link Information Systems 7/21/2003 UK
--------------------------------------------------------------------------------
DataComms Europe Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Datatrial Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Deloite & Touche 11/17/2003 UK
--------------------------------------------------------------------------------
Demon 7/21/2003 UK
--------------------------------------------------------------------------------
Dentalserve Net Professional
Services Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Deutsche Bank 7/2/2003 Germany
--------------------------------------------------------------------------------
Deutsche Telekom 7/21/2003 Germany
--------------------------------------------------------------------------------
Die Zeit 7/2/2003 Germany
--------------------------------------------------------------------------------
Digital Residence Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Dimension Data 11/17/2003 UK
--------------------------------------------------------------------------------
Dogan Online 7/5/2003 Turkey
--------------------------------------------------------------------------------
Dogus Holdings 7/5/2003 Turkey
--------------------------------------------------------------------------------
Draco Computer Systems 7/21/2003 UK
--------------------------------------------------------------------------------
Dutchtone 7/25/2003 UK
--------------------------------------------------------------------------------
East Midlands Network Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Easynet 10/1/2003 France
--------------------------------------------------------------------------------
Easynet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Eclipse Internet 7/21/2003 UK
--------------------------------------------------------------------------------
Eclipse Networking Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Edinburgh Network Technologies
Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
edNET 7/21/2003 UK
--------------------------------------------------------------------------------
Einstein.Net 7/2/2003 USA
--------------------------------------------------------------------------------
Element 11/17/2003 UK
--------------------------------------------------------------------------------
Ember Media Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
ENI 11/17/2003 UK
--------------------------------------------------------------------------------
Entanet 7/21/2003 UK
--------------------------------------------------------------------------------
Eplus 11/17/2003 UK
--------------------------------------------------------------------------------
Equant 7/2/2003 France
--------------------------------------------------------------------------------
Ericsson 11/17/2003 Sweden
--------------------------------------------------------------------------------
Ethos Personnel Training
Consultancy 7/21/2003 UK
--------------------------------------------------------------------------------
Etisalat 11/17/2003 UK
--------------------------------------------------------------------------------
Eurospot 10/1/2003 France
--------------------------------------------------------------------------------
<PAGE>
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NCT Goup, Inc.
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
Eutelsat 10/1/2003 France
--------------------------------------------------------------------------------
Evisor 11/17/2003 UK
--------------------------------------------------------------------------------
Exnet Systems Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Exponential-E Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Fastnet International Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
FIAT 11/17/2003 Italy
--------------------------------------------------------------------------------
Firstnet 7/21/2003 UK
--------------------------------------------------------------------------------
Football Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Force Bureautique 10/1/2003 France
--------------------------------------------------------------------------------
France Television 10/1/2003 France
--------------------------------------------------------------------------------
Frankfurter Allgemineine 7/2/2003 Germany
--------------------------------------------------------------------------------
Free 8/1/2003 France
--------------------------------------------------------------------------------
Freecom Net G B Plc 7/21/2003 UK
--------------------------------------------------------------------------------
Freedom to Surf Plc 7/21/2003 UK
--------------------------------------------------------------------------------
Freedom2 Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
FreeUK 7/21/2003 UK
--------------------------------------------------------------------------------
Frontier Internet Services Ltd 7/21/2003 UK
--------------------------------------------------------------------------------
Gen-PA Turkey 7/2/2003 Turkey
--------------------------------------------------------------------------------
Geolink 8/1/2003 France
--------------------------------------------------------------------------------
German Bundesliga 7/2/2003 Germany
--------------------------------------------------------------------------------
Get Online Broadband 7/21/2003 UK
--------------------------------------------------------------------------------
Global Secure Systems Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Go Holidaybreaks Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Godsweb Europe Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Goldfish 11/17/2003 UK
--------------------------------------------------------------------------------
Goldline Media Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Griffin Information Systems Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Griffin Internet 7/21/2003 UK
--------------------------------------------------------------------------------
GX Networks 7/21/2003 UK
--------------------------------------------------------------------------------
Harleyr Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
HBOC 7/21/2003 UK
--------------------------------------------------------------------------------
HDFC 10/21/2003 India
--------------------------------------------------------------------------------
Headstart Enterprises Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Henkel AG 11/17/2003 Germany
--------------------------------------------------------------------------------
Holmes Place 11/17/2003 UK
--------------------------------------------------------------------------------
Host 365 7/21/2003 UK
--------------------------------------------------------------------------------
Houxou.com 7/21/2003 UK
--------------------------------------------------------------------------------
Hutchinson 3G 7/2/2003 UK
--------------------------------------------------------------------------------
Hypo Vereins Bank 7/2/2003 Germany
--------------------------------------------------------------------------------
ICICI 7/25/2003 India
--------------------------------------------------------------------------------
ICL Fujitsu UK 7/25/2003 UK
--------------------------------------------------------------------------------
ICM NetServ Solutions plc 7/21/2003 UK
--------------------------------------------------------------------------------
Icom Innovations Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Ics&M Net Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Inca Europe Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Indo Suez 11/17/2003 UK
--------------------------------------------------------------------------------
<PAGE>
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NCT Group, Inc.
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
Indx (U K) Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Info Channel Jamaica 7/2/2003 Jamaica
--------------------------------------------------------------------------------
Infonet 10/1/2003 France
--------------------------------------------------------------------------------
Inline Sales 7/2/20032 UK
--------------------------------------------------------------------------------
Intelsat 10/1/2003 France
--------------------------------------------------------------------------------
Internet Central Limited 7/21/2003 UK
--------------------------------------------------------------------------------
Internet For Business Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Interoute 10/1/2003 France
--------------------------------------------------------------------------------
Interspoutnik 10/1/2003 France
--------------------------------------------------------------------------------
Intonet (UK) Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
InWeb 7/21/2003 UK
--------------------------------------------------------------------------------
Iomart Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Ip Support Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
It2 Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
ITC Group 7/25/2003 India
--------------------------------------------------------------------------------
izR Solutions Ltd 7/21/2003 UK
--------------------------------------------------------------------------------
Jippii U K Plc 7/21/2003 UK
--------------------------------------------------------------------------------
Julius Baer 7/25/2003 Germany
--------------------------------------------------------------------------------
Jupiter Holland 7/5/2003 UK
--------------------------------------------------------------------------------
Jupiter UK 7/5/2003 UK
--------------------------------------------------------------------------------
Kabel Deutschland 8/1/2003 Germany
--------------------------------------------------------------------------------
Kast Telecom 8/1/2003 France
--------------------------------------------------------------------------------
Ke-Connect Systems Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Kencell 7/25/2003 Kenya
--------------------------------------------------------------------------------
Kington Connected Community Co.
Ltd 7/21/2003 UK
--------------------------------------------------------------------------------
Kitbag Sports Group Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Koc Holdings 7/5/2003 Turkey
--------------------------------------------------------------------------------
KPMG 11/17/2003 UK
--------------------------------------------------------------------------------
Lamdanet 10/1/2003 France
--------------------------------------------------------------------------------
Lavron Technologies (UK) Ltd 7/21/2003 UK
--------------------------------------------------------------------------------
Lawyers Online Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
LD Com 8/1/2003 France
--------------------------------------------------------------------------------
LEA 10/1/2003 France
--------------------------------------------------------------------------------
Legend 7/21/2003 UK
--------------------------------------------------------------------------------
Link-London Com 7/21/2003 UK
--------------------------------------------------------------------------------
Lombard Odier 8/1/2003 Switzerland
--------------------------------------------------------------------------------
London Web Communications 7/21/2003 UK
--------------------------------------------------------------------------------
Lucent UK 7/25/2003 UK
--------------------------------------------------------------------------------
Lycos U K Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
M & G Financial Services Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Macif 10/1/2003 France
--------------------------------------------------------------------------------
Maif 10/1/2003 France
--------------------------------------------------------------------------------
Mailbox Internet 7/21/2003 UK
--------------------------------------------------------------------------------
MAN 7/2/2003 Germany
--------------------------------------------------------------------------------
----------------
2 Includes the agreement between Artera Group, Inc. and Inline Sales dated as of
June 17, 2003, with respect to which Consultant had performed consulting
services.
<PAGE>
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NCT Group Inc.
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
Manornet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Mantra Online 10/21/2003 India
--------------------------------------------------------------------------------
MBNA 11/17/2003 India
--------------------------------------------------------------------------------
Medisend Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Mercedes Benz 7/2/2003 Germany
--------------------------------------------------------------------------------
Merula Limited 7/21/2003 UK
--------------------------------------------------------------------------------
MetroNet Internet Services 7/21/2003 UK
--------------------------------------------------------------------------------
Mistral 7/21/2003 UK
--------------------------------------------------------------------------------
Mistral Internet Group Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Monaco Telecom 8/1/2003 Monaco
--------------------------------------------------------------------------------
Morac Telecom 8/1/2003 Morocco
--------------------------------------------------------------------------------
Muenchener Rundschau 7/2/2003 Germany
--------------------------------------------------------------------------------
Munich Re 7/2/2003 Germany
--------------------------------------------------------------------------------
NATO 7/2/2003 UK
--------------------------------------------------------------------------------
NDO 7/21/2003 UK
--------------------------------------------------------------------------------
Net Village Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Netdecisions Holdings Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Netforce Group Plc 7/21/2003 UK
--------------------------------------------------------------------------------
Netkonect Communications Plc 7/21/2003 UK
--------------------------------------------------------------------------------
Netpresto Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Netscalibur U K Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Netservices PLC 7/21/2003 UK
--------------------------------------------------------------------------------
New York Times 7/2/2003 USA
--------------------------------------------------------------------------------
NewNet 7/21/2003 UK
--------------------------------------------------------------------------------
NHS 7/25/2003 UK
--------------------------------------------------------------------------------
Nildram Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Nokia 11/17/2003 Finland
--------------------------------------------------------------------------------
Noos 8/1/2003 France
--------------------------------------------------------------------------------
Nortel 7/25/2003 USA
--------------------------------------------------------------------------------
Northwest Net 7/21/2003 UK
--------------------------------------------------------------------------------
Novartis 7/25/2003 UK
--------------------------------------------------------------------------------
NTL 7/25/2003 UK
--------------------------------------------------------------------------------
O2 7/25/2003 UK
--------------------------------------------------------------------------------
Onetel 10/1/2003 France
--------------------------------------------------------------------------------
ONO 8/1/2003 Spain
--------------------------------------------------------------------------------
Onyx Internet 7/21/2003 UK
--------------------------------------------------------------------------------
Orange India 10/21/2003 India
--------------------------------------------------------------------------------
Orange Thailand 10/21/2003 Thailand
--------------------------------------------------------------------------------
Orbital Net Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Orbix International Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Otago Internet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Othello Technology Systems
Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Otstores Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Oxford University 11/17/2003 UK
--------------------------------------------------------------------------------
Pacific Dunlap 11/17/2003 UK
--------------------------------------------------------------------------------
Payco Net 7/21/2003 UK
--------------------------------------------------------------------------------
<PAGE>
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NCT Group, Inc.
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
Phone House 10/1/2003 France
--------------------------------------------------------------------------------
Phone World 11/17/2003 UK
--------------------------------------------------------------------------------
Phoneme Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Pictay 8/1/2003 France
--------------------------------------------------------------------------------
Pinnacle Internet Services Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Pipemedia OnLine 7/21/2003 UK
--------------------------------------------------------------------------------
PIPEX Internet Limited 7/21/2003 UK
--------------------------------------------------------------------------------
Piroth Heinz 8/1/2003 Germany
--------------------------------------------------------------------------------
PlusNet 7/21/2003 UK
--------------------------------------------------------------------------------
Poptel Ltd. 7/21/2003 UK
-------------------------------------------------------------------------------
Portland Communications Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Power Internet Ltd 7/21/2003 UK
-------------------------------------------------------------------------------
PrimaCom 8/1/2003 Germany
--------------------------------------------------------------------------------
Productive Computer
Multi-Media Ltd 7/21/2003 UK
--------------------------------------------------------------------------------
Project Telecom 7/21/2003 UK
--------------------------------------------------------------------------------
Prontoserve Broadband 7/21/2003 UK
--------------------------------------------------------------------------------
Prosodie 10/1/2003 France
--------------------------------------------------------------------------------
Puegot 10/1/2003 France
--------------------------------------------------------------------------------
Purple Squared Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
REDNET Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Reliance 11/17/2003 UK
--------------------------------------------------------------------------------
Reliance Infocom 7/25/2003 India
--------------------------------------------------------------------------------
Renault 10/1/2003 France
--------------------------------------------------------------------------------
Richemont Group 10/21/2003 Switzerland
--------------------------------------------------------------------------------
RM Internet for Learning 7/21/2003 UK
--------------------------------------------------------------------------------
Rogers Canada 7/25/2003 USA
--------------------------------------------------------------------------------
Rogers Communications 7/25/2003 Canada
--------------------------------------------------------------------------------
Rosebank Internet Services
Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Royal Bank of Scotland 7/21/2003 UK
--------------------------------------------------------------------------------
Sabanci Holdings 7/5/2003 Turkey
--------------------------------------------------------------------------------
Safaricom 7/25/2003 Kenya
--------------------------------------------------------------------------------
Sahara 7/25/2003 India
--------------------------------------------------------------------------------
Satellite Sponsorship
International Ltd 7/21/2003 UK
--------------------------------------------------------------------------------
Satyam 10/21/2003 India
--------------------------------------------------------------------------------
Sci-Teq Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Scotnet 7/21/2003 UK
--------------------------------------------------------------------------------
Scottish Development Agency 7/2/2003 UK
--------------------------------------------------------------------------------
Searley Data Services 7/21/2003 UK
--------------------------------------------------------------------------------
Secpay Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Selcom Broadband 7/21/2003 UK
--------------------------------------------------------------------------------
SFR 8/1/2003 France
--------------------------------------------------------------------------------
Sheikh Walid - UAE 11/17/2003 UAE
--------------------------------------------------------------------------------
Shopcreator Plc 7/21/2003 UK
--------------------------------------------------------------------------------
Siemens 7/21/2003 Germany
--------------------------------------------------------------------------------
Simply Internet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Sita 7/25/2003 UK
--------------------------------------------------------------------------------
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NCT Group, Inc.
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
Skycross Computer Services
Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Solidrock U K Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Standard Life 7/21/2003 UK
--------------------------------------------------------------------------------
Star Internet 7/21/2003 UK
--------------------------------------------------------------------------------
supanet 7/21/2003 UK
--------------------------------------------------------------------------------
SuperOnline 7/5/2003 Turkey
--------------------------------------------------------------------------------
Swisscom 7/25/2003 Switzerland
--------------------------------------------------------------------------------
Synergynet 7/21/2003 UK
--------------------------------------------------------------------------------
Talk Internet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Tata Group 10/21/2003 India
--------------------------------------------------------------------------------
Technocom Plc 7/21/2003 UK
--------------------------------------------------------------------------------
Tele 2 8/1/2003 France
--------------------------------------------------------------------------------
Telecom Plus 7/21/2003 UK
--------------------------------------------------------------------------------
Telecomplete 7/21/2003 UK
--------------------------------------------------------------------------------
Teleconect 10/1/2003 Germany
--------------------------------------------------------------------------------
Telefonica 7/2/2003 Spain
--------------------------------------------------------------------------------
Telekom Italia 11/17/2003 Italy
--------------------------------------------------------------------------------
Telenor 7/2/2003 Norway
--------------------------------------------------------------------------------
Telenor Group 7/25/2003 Norway
--------------------------------------------------------------------------------
Telenor Moble 7/25/2003 Norway
--------------------------------------------------------------------------------
Telsim 7/5/2003 Turkey
--------------------------------------------------------------------------------
Tenovis 11/17/2003 UK
--------------------------------------------------------------------------------
TF1 10/1/2003 France
--------------------------------------------------------------------------------
The Global Email Co. Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
The Internet in Nottingham
Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
The Internexus Group Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
The Market Site 7/21/2003 UK
--------------------------------------------------------------------------------
Timewarp Internet 7/21/2003 UK
--------------------------------------------------------------------------------
Tiscali 7/21/2003 UK
--------------------------------------------------------------------------------
TNT Express 11/17/2003 UK
--------------------------------------------------------------------------------
T-online 10/1/2003 France
--------------------------------------------------------------------------------
Total I T Services Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
TPS 8/1/2003 France
--------------------------------------------------------------------------------
Trident Net 7/21/2003 UK
--------------------------------------------------------------------------------
Triple Play 10/21/2003 UK
--------------------------------------------------------------------------------
TurboNet Turkey 7/2/2003 Turkey
--------------------------------------------------------------------------------
Turk Telekom 7/5/2003 Turkey
--------------------------------------------------------------------------------
Turkcell 7/5/2003 Turkey
--------------------------------------------------------------------------------
Twang.net 7/21/2003 UK
--------------------------------------------------------------------------------
UBS AG 7/25/2003 Switzerland
--------------------------------------------------------------------------------
UK Fastlinks Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Unite Solutions Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Universal Kiosks Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
UPC/UGC 7/25/2003 Hollaand
--------------------------------------------------------------------------------
Update Ltd 10/21/2003 UK
--------------------------------------------------------------------------------
Utv Internet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
<PAGE>
13
NCT Group, Inc.
--------------------------------------------------------------------------------
Company Name Dep't or Division Start Date Headquarter Country
--------------------------------------------------------------------------------
Vestelnet 7/5/2003 Turkey
--------------------------------------------------------------------------------
Via Net Works U K Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
VIAG AG 11/17/2003 UK
------------------------------------------ -------------------------------------
Virgin Holdings 7/2/2003 UK
--------------------------------------------------------------------------------
Vispa Internet Limited 7/21/2003 UK
--------------------------------------------------------------------------------
Vodafone Group 11/17/2003 UK
--------------------------------------------------------------------------------
Volkswagen 7/2/2003 Germany
--------------------------------------------------------------------------------
Washington Post 7/2/2003 USA
--------------------------------------------------------------------------------
Webcom 7/2/2003 Jamaica
--------------------------------------------------------------------------------
Webleicester 7/21/2003 UK
--------------------------------------------------------------------------------
Weblife Tv 7/21/2003 UK
--------------------------------------------------------------------------------
Webnet2000 Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Webscape Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Western NY Computing Systems 7/2/2003 USA
--------------------------------------------------------------------------------
Wi-Fi Spot 8/1/2003 France
--------------------------------------------------------------------------------
Wordmap Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Worldwide Web Services Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Xisos Organisation 7/21/2003 UK
--------------------------------------------------------------------------------
York Multimedia Network Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Yorkshirenet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Your Communications 7/21/2003 UK
--------------------------------------------------------------------------------
Zen Internet 7/21/2003 UK
--------------------------------------------------------------------------------
Zetnet Services Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------
Zorlu Holdings 7/5/2003 Turkey
--------------------------------------------------------------------------------
Zynet Ltd. 7/21/2003 UK
--------------------------------------------------------------------------------