Carasent

Legal Proceedings Report • Aug 3, 2017

Claim from Fusion fully settled

Claim from Fusion fully settled

CLAIM FROM FUSION FULLY SETTLED

In May 2017, Fusion filed a fraud claim for USD 2.9 million

against Apptix ASA related to a software license audit claim,

plus an additional claim for USD 15.9 million in compensatory

damages.

In the Share Purchase Agreement signed with Fusion, all

representations and warranties made by Apptix ASA were

discharged at the time of closing (November 2016). Under US

law only a claim for fraud could be made post-closing.

Although the Company regarded the claim as speculative and

totally unfounded, the claim was carefully reviewed by the

Company and its legal advisors, and the Company's belief after

such review was that the claim was tenuous and groundless.

Today, Apptix ASA has reached a settlement with Fusion whereby

all claims against Apptix are withdrawn effective

immediately. While, both the Board and Apptix' legal advisors

still believe any such claim is groundless, as long as Fusion

upheld the claim it would impede any further strategic

initiatives for Apptix.

The settlement consists of a cash payment to Fusion of USD

150,000 and the return of 300,000 shares of Fusion stock,

which based on Fusion's closing price (as of August 2),

amounts to approximately USD 375,000. The aggregate settlement

amount will be approximately USD 525,000. Additionally, Apptix

incurred legal fees related to the case estimated at USD

150,000. As part of the settlement, the delivery of the

remaining 2,700,000 Fusion shares will be postponed from

November 2017 to February 2018. The settlement structure

includes a total release by Fusion of Apptix, so no further

claims can be presented in the future.

Of the total settlement costs, including legal fees, of

approximately USD 675,000, Apptix' insurance company will

reimburse approximately USD 400,000, resulting in a net

settlement cost for Apptix of approximately USD 275,000.

However, due to the reimbursement of by the Company's

insurance provider, there will not be a negative cash impact

on the company's cash reserves.

With this case now settled, the Board will regain and evaluate

new strategic initiatives for Apptix ASA.

Asker, August 3, 2017