----

----

----

| (a)   | any      environmental, health, or safety matters or conditions (including on-site      or off- site contamination, occupational safety and health, and regulation      of chemical substances orproducts); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | fines,      penalties, judgments, awards, settlements, legal or administrative      proceedings, damages, losses, claims, demands and response, investigative,      remedial, or inspection costs and expenses arising under Environmental Law      or Occupational Safety and HealthLaw; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | financial      responsibility under Environmental Law or Occupational Safety and Health      Law for cleanup costs or corrective action, including any investigation,      cleanup, removal, containment, or other remediation or response actions      (“Cleanup”) required by applicable Environmental Law or Occupational      Safety and Health Law (whether or not such Cleanup has been required or      requested by any Governmental Body or any other Person) and for any      natural resource damages; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | any      other compliance, corrective, investigative, or remedial measures required      under Environmental Law or Occupational Safety and Health    Law. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | advising      appropriate authorities, employees, and the public of intended or actual      releases of pollutants or hazardous substances or materials, violations of      discharge limits, or other prohibitions and of the commencements of      activities, such as resource extraction or construction, that could have      significant impact on theEnvironment; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | preventing      or reducing to acceptable levels the release of pollutants or hazardous      substances or materials into theEnvironment; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | reducing      the quantities, preventing the release, or minimizing the hazardous      characteristics of wastes that aregenerated; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | assuring      that products are designed, formulated, packaged, and used so that they do      not present unreasonable risks to human health or the Environment when      used or disposed of; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | protecting      resources, species, or ecologicalamenities; |
|-----------------|-------------------------------------------------------------|

| (f)   | reducing      to acceptable levels the risks inherent in the transportation of hazardous      substances, pollutants, oil, or other potentially harmful      substances; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | cleaning      up pollutants that have been released, preventing the threat of release,      or paying the costs of such clean up or prevention;  or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | making      responsible parties pay private parties, or groups of them, for damages      done to their health or the Environment, or permitting self-appointed      representatives of the public interest to recover for injuries done to      public assets. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)   | nation,      state, county, city, town, village, district, or other jurisdiction of any      nature; |
|-----------------|------------------------------------------------------------------------------------------------------|

| (b)   | federal,      state, local, municipal, foreign, or other  government; |
|-----------------|-----------------------------------------------------------------------|

| (c)   | governmental      or quasi-governmental authority of any nature (including any governmental      agency, branch, department, official, or entity and any court or other      tribunal); |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | multi-national      organization or body; or |
|-----------------|----------------------------------------------|

| (e)   | body      exercising, or entitled to exercise, any administrative, executive,      judicial, legislative, police, regulatory, or taxing authority or power of      any nature. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| 2   | SALE AND TRANSFER OF      SHARES; CLOSING |
|---------------|-------------------------------------------|

|   | 2.5 | Closing      Obligations. | At      the Closing: |
|--------|-----|---------------------------|----------------------|

| (i)   |    A      certificate or certificates representing the Shares, duly endorsed (or      accompanied by duly executed stock powers) in blank for transfer to      Buyer; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (ii)   | a      certificate executed by Seller representing and warranting to Buyer that      each of Seller’s representations and warranties in this Agreement was      accurate in all respects as of the date of this Agreement and is accurate      in all respects as of the Closing Date as if made on the Closing Date      (giving full effect to any supplements to the Disclosure Statement that      were delivered by Seller to Buyer prior to the Closing Date in accordance      with Section 5.5); and |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Buyer      will deliver or cause to be delivered to Seller and to the Escrow      Agent: |
|--------|-----|------------------------------------------------------------------------------------------|

| (i)   | the      Closing Payment by wire transfer or cashiers check to    Seller; |
|-----------------|---------------------------------------------------------------------------|

| (ii)   | the      Escrow Deposit by wire transfer or cashiers check to Escrow Agent;      and |
|------------------|--------------------------------------------------------------------------------------|

|   | (iii) | a      certificate executed by Buyer to the effect that, except as otherwise      stated in such certificate, each of Buyer’s representations and warranties      in this Agreement was accurate in all respects as of the date of this      Agreement and is accurate in all respects as of the Closing Date as if      made on the Closing Date. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | REPRESENTATIONS      AND WARRANTIES OF SELLER AND CDT |
|---------------|-------------------------------------------------------|

|   | 3.1 | Organization and Good      Standing. |
|--------|-----|--------------------------------------|

| (a)   | CDT      is a corporation organized, validly existing, and in good standing under      the laws of the State of Minnesota, with full corporate power and      authority to conduct its business as it is now being conducted, to own or      use the properties and assets that it purports to own or use, and to      perform all its obligations under Applicable Contracts.  CDT is      duly qualified to do business as a foreign corporation and is in good      standing under the laws of each state or other jurisdiction in which      either the ownership or use of the properties owned or used by it, or the      nature of the activities conducted by it, requires such      qualification. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Seller      has delivered or made available to Buyer copies of the Organizational      Documents of CDT, as currently ineffect. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3.2 | Authority; No      Conflict. |
|--------|-----|------------------------------|

| (a)   | This      Agreement constitutes the legal, valid, and binding obligation of Seller      and CDT, enforceable against Seller and CDT in accordance with its      terms.  Seller and CDT have the right, power, authority, and      capacity to execute and deliver this Agreement and to perform their      obligations hereunder. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Neither      the execution and delivery of this Agreement nor the consummation or      performance of any of the transactions contemplated hereby will, directly      or indirectly (with or without notice or lapse of  time): |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | contravene,      conflict with, or result in a violation of (A) any provision of the      Organizational Documents of CDT, or (B) any resolution adopted by the      board of directors or the stockholders of either CDT or the      Seller; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | contravene,      conflict with, or result in a violation of, or give any Governmental Body      or other Person the right to challenge any of the Contemplated      Transactions or to exercise any remedy or obtain any relief under, any      Legal Requirement or any Order to which CDT or Seller, or any of the      assets owned or used by CDT, may besubject; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | contravene,      conflict with, or result in a violation of any of the terms or      requirements of, or give any Governmental Body the right to revoke,      withdraw, suspend, cancel, terminate, or modify, any      Governmental  Authorization that is held by CDT or that      otherwise relates to the business of, or any of the assets owned or used      by, CDT; |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | cause      Buyer or CDT to become subject to, or to become liable for the payment of,      any Tax; |
|------------------|-----------------------------------------------------------------------------------------------------|

| (v)   | cause      any of the assets owned by CDT to be reassessed or revalued by any taxing      authority or other GovernmentalBody; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

----

| (vi)   | contravene,      conflict with, or result in a violation or breach of any provision of, or      give any Person the right to declare a default or exercise any remedy      under, or to accelerate the maturity or performance of, or to cancel,      terminate, or modify, any Applicable Contract;  or |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | result      in the imposition or creation of any Encumbrance upon or with respect to      any of the assets owned or used byCDT. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the      authorized capital stock of CDT consists of 2,500,000 shares of Common      Stock, $.01 par value per share, of which 955,162.5 shares are issued and      outstanding (the “Shares”). Seller is and will be on the Closing Date the      record and beneficial owner and holder of the Shares, free and clear of      all Encumbrances.  No legend or other reference to any purported      Encumbrance appears upon any certificate representing the Shares, and all      of the Shares have been duly authorized and validly issued and are fully      paid and nonassessable.  There are no Contracts relating to the      issuance, sale, or transfer of any equity securities or other securities      of CDT.  None of the Shares was issued in violation of the      Securities Act or any other Legal Requirement.  CDT neither      owns, nor has any Contract to acquire, any equity securities or other      securities of any Person or any direct or indirect equity or ownership      interest in any other business. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | CDT      has no outstanding, or has had outstanding any securities registered (or      required to be registered) under the Securities Act of 1933 or the      Securities Exchange Act of 1934 or has or has had any reporting obligation      thereunder. CDT is not subject to any filing or reporting requirements      under the Securities Act of 1933 or the Securities Exchange Act of      1934. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Seller      has delivered to Buyer: (a) the unaudited balance sheet of CDT as at      March 31, 2007 (the “Balance Sheet”)      and as at March 31, 2006, and the related statements of operations and      cash flow for each of the fiscal years then ended, (b) the unaudited      balance sheet of CDT as at December 31, 2007 (the “Interim Balance      Sheet”), and the related statements of operations and cash flow for      the nine months then ended.  Such financial statements fairly      present the financial condition and the results of operations and cash      flow of CDT as at the respective dates of and for the periods referred to      in such financial statements, all in accordance with GAAP, subject, in the      case of interim financial statements, to normal recurring year-end      adjustments (the effect of which will not, individually or in the      aggregate, be materially adverse) and the absence of notes.  The      financial statements referred to in this Section 3.4 reflect the      consistent application of such accounting principles throughout the      periods involved.  Within 105 days following the Closing Date,      Seller will deliver to Buyer an unaudited balance sheet and related      statements of operations and cash flow for CDT as of the Closing Date, in      which all income and costs, from whatever source, relating to CDT will be      fully and properly included in accordance with  GAAP. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | CDT      has no liabilities or obligations of any nature (absolute, accrued,      contingent or otherwise) of the type required to be reflected or disclosed      on a balance sheet (or the notes thereto) in accordance with GAAP that      were not fully reflected or reserved against in the Balance Sheet and the      Interim Balance Sheet, except for liabilities and obligations incurred in      the Ordinary Course of Business since the respective dates thereof as set      forth in the Disclosure Schedule hereto; the reserves reflected in the      Balance Sheet and the Interim Balance Sheet are adequate, appropriate and      reasonable under GAAP, and consistent with past practice with regard to      CDT. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Part      3.6 of the Disclosure Schedule contains a complete and accurate list of      all real property, leaseholds, or other interests therein owned by CDT as      at the Interim Balance Sheet date.  CDT owns (with good and      marketable title in the case of real property, subject only to the matters      permitted by the following sentence) all the properties and assets      (whether real, personal, or mixed and whether tangible or intangible) that      it purports to own, including all of the properties and assets reflected      in the Balance Sheet and the Interim Balance Sheet (except for assets held      under capitalized leases disclosed or not required to be disclosed in Part      3.6 of the Disclosure Schedule and personal property sold since the date      of the Balance Sheet and the Interim Balance Sheet, as the case may be, in      the Ordinary Course of Business), and all of the properties and assets      purchased or otherwise acquired by CDT since the date of the Balance Sheet      (except for personal property acquired and sold since the date of the      Balance Sheet in the Ordinary Course of Business and consistent with past      practice), other than Inventory and short-term investments, are listed in      Part 3.6 of the Disclosure Schedule.  All properties and assets      reflected in the Balance Sheet and the Interim Balance Sheet are free and      clear of all Encumbrances and are not, in the case of real property,      subject to any rights of way, building use restrictions, exceptions,      variances, reservations, or limitations of any nature except, with respect      to all such properties and assets, (a) mortgages or security      interests shown on the Balance Sheet or the Interim Balance Sheet as      securing specified liabilities or obligations, with respect to which no      default (or event that, with notice or lapse of time or both, would      constitute a default) exists, (b) mortgages or security interests      incurred in connection with the purchase of property or assets after the      date of the Interim Balance Sheet (such mortgages and security interests      being limited to the property or assets so acquired), with respect to      which no default (or event that, with notice or lapse of time or both,      would constitute a default) exists, (c) liens for current taxes not      yet due, and (d) with respect to real property, (i) minor      imperfections of title, if any, none of which is substantial in amount,      detracts from the value or impairs the use of the property subject      thereto, or impairs the operations of CDT, and (ii) zoning laws and      other land use restrictions that do not impair the present or anticipated      use of the property subjectthereto. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Neither      Seller nor CDT has received notice that the whole nor any portion of the      property or leaseholds owned or held by CDT is subject to any governmental      decree or order to be sold or is being condemned, expropriated or      otherwise taken by any Governmental Body or other Person with or without      payment of compensation therfor, nor to the knowledge of Seller and CDT,      has any such condemnation, expropriation or taking been      proposed. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | All      Inventory, whether or not reflected in the Balance Sheet or the Interim      Balance Sheet, consists of a quality and quantity usable and salable in      the Ordinary Course of Business, except for obsolete items and items of      below-standard quality, which have been written off or written down to net      realizable value in the Balance Sheet or the Interim Balance Sheet or the      accounting records of CDT as of the Closing Date, as the case may be, in      each case consistent with GAAP.  All inventories not written off      have been priced at the lower of cost or net realizable      value.  The quantities of each item of inventory are reasonable      in the present circumstances ofCDT. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      aggregate of all agreements or commitments for the purchase of inventory,      materials and supplies by CDT as of the date of this Agreement does not      exceed $200,000, all of which orders, agreements and commitments were made      in the Ordinary Course of Business. There are no claims against CDT to      return in excess of an aggregate of $10,000 of merchandise by reason of      alleged over shipments, defective merchandise or otherwise, or of      merchandise in the hands of customers under an understanding that such      merchandise would be returnable. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.10 | Taxes |
|--------|------|-------|

| (a)   | CDT      has filed or caused to be filed (on a timely basis since April 30, 2001)      all Tax Returns that are or were required to be filed by or with respect      to it pursuant to applicable Legal Requirements.  Seller has      delivered or made available to Buyer copies of all such Tax      Returns.  The Seller and/or CDT have paid, or made provision for      the payment of, all Taxes that have or may have become due pursuant to      those Tax Returns or otherwise, or pursuant to any assessment received by      Seller or CDT, except such Taxes, if any, as are listed in Part 3.10 of      the Disclosure Schedule and are being contested in good faith and as to      which adequate reserves (determined in accordance with GAAP) have been      provided in the Balance Sheet and the Interim Balance    Sheet. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | Part      3.10 of the Disclosure Schedule contains a complete and accurate list of      all audits, if any, of all such Tax Returns, including a reasonably      detailed description of the nature and outcome of each      audit.  All deficiencies proposed as a result of such audits      have been paid, reserved against, settled, or, as described in Part 3.10      of the Disclosure Schedule, are being contested in good faith by      appropriate proceedings.  Neither Seller nor CDT has given or      been requested to give waivers or extensions (or is or would be subject to      a waiver or extension given by any other Person) of any statute of      limitations relating to the payment of Taxes of CDT or for which CDT may      be liable. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | The      charges, accruals, and reserves with respect to Taxes on the books of CDT      are adequate (determined in accordance with GAAP) and are at least equal      to CDT’s liability for Taxes.  There exists no proposed tax      assessment against CDT except as disclosed in the Balance Sheet or in Part      3.10 of the Disclosure Schedule.  All Taxes that CDT is or was      required by Legal Requirements to withhold or collect have been duly      withheld or collected and, to the extent required, have been paid to the      proper Governmental Body or otherPerson. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | All      Tax Returns filed by or on behalf of CDT are true, correct, and      complete.  There is no tax sharing agreement that will require      any payment by CDT after the date of this Agreement.  CDT is      not, or within the five-year period preceding the Closing Date has been,      an “S” corporation. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | CDT      has paid and discharged all liabilities with respect to Taxes and has      provided cash reserves for the payment of any contingent liabilities with      respect to Taxes for the period up to and including the Closing      Date.  CDT confirms that on the Closing Date it has no      outstanding liability for Taxes and no unpaid contingent liability for      Taxes. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | CDT      is in compliance in all material respects with all applicable laws,      agreements and contracts relating to employment, employment practices,      immigration, wages, hours, and terms and conditions of employment,      including, but not limited to, employee compensation matters, and has      correctly classified employees as exempt employees and non-exempt      employees under the Fair Labor Standards Act and applicable state laws. A      list of all employees, officers and consultants of CDT and their current      title and/or job description, current compensation rates, bonuses paid      during the last fiscal year, and accrued vacation and sick leave for all      employees is set forth in Part 3.12 of the Disclosure      Schedule.  Except as set forth in Part 3.12 of the Disclosure      Schedule, CDT does not have any employment contracts or consulting      agreements currently in effect that are not terminable at will (other than      agreements with the sole purpose of providing for the confidentiality of      proprietary information or assignment of  inventions). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | CDT      (a) is not now, nor has it ever been, subject to a union organizing      effort, (b) is not subject to any collective bargaining agreement      with respect to any of its employees, (c) is not subject to any other      contract, written or oral, with any trade or labor union, employees’      association or similar organization, and (d) has no current labor      disputes.  Neither Seller nor CDT has knowledge (a) of any      facts indicating that the consummation of the transactions contemplated by      this Agreement will have a Material Adverse Effect on the employment      relations of CDT, or (b) that any of CDT’s employees intends to leave      CDT’s employ.  All of CDT’s employees are legally permitted to      be employed by CDT in the United States in their current job capacities      under applicable laws. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | Part      3.12 of the      Disclosure Schedule lists (i) all “employee benefit plans” within the      meaning of Section 3(3) of ERISA, and (ii) all other employee      benefit, bonus or other incentive compensation, stock option, stock      purchase, stock appreciation, severance pay, lay-off or reduction in      force, change in control, sick pay, vacation pay, salary continuation,      retainer, leave of absence, educational assistance, service award,      employee discount, fringe benefit plans, arrangements, policies or      practices, to which CDT contributes to or has any obligation to or      liability for (collectively, the “Employee      Plans”).  Each Employee Plan provides that it may be      amended or terminated at any time and, except for benefits protected under      Section 411(d) of the IRC or Section 204(g) of ERISA or benefits to      which a plan participant or beneficiary has accrued a vested right, all      benefits payable to current or terminated employees or any beneficiary may      be amended or terminated by CDT at any time without      liability.  None of the Employee Plans is subject to Section 302      or Title IV of ERISA or Section 412 of the Code (a “Defined Benefit      Plan”) or is a “multiemployer plan” within the meaning of Section      3(37) of ERISA (a “Multiemployer      Plan”) and CDT has never (i) sponsored, maintained or      contributed to, or been obligated to contribute to, a Defined Benefit Plan      or (ii) contributed to, or been obligated to contribute to, a      Multiemployer Plan.  The Employee Plans are based only on      employee contributions and CDT has no obligation to make any contribution      to and of the Employee Plans.  CDT does not maintain or      contribute to any welfare benefit plan that provides health benefits to an      employee after the employee’s termination of employment or retirement      except as required under Section 4980B of the IRC and      Sections 601 through 608 of ERISA (“COBRA”) or other applicable legal      requirements. All expenses and liabilities relating to all of the Employee      Plans described in Part 3.12 of the Disclosure Schedule have been, and      will on the Closing be, fully and properly accrued on CDT’s books and      records and are disclosed on the Balance Sheet or Interim Balance Sheet      and such Employee Plans have no unfunded liabilities not reflected on the      Balance Sheet or Interim BalanceSheet. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | Persons      performing or, who in the past have performed, contract labor for CDT, are      not subject to written agreements with CDT, all such services being the      subject of invoices submitted to CDT for payment by agencies which provide      such contract labor.  All such contract laborers and/or the      agencies who have provided such contract labor have been fully paid all      amounts owing to them by CDT through the date hereof, and there are no      disputes or controversies between any such contract laborer (or agency)      and CDT whatsoever, including without limitation, disputes regarding      amounts owed or ownership of CDT intellectual      property.    |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | There      is no agreement, plan, arrangement or other Contract covering any employee      that, considered individually or considered collectively with any other      such agreements, plans, arrangements or other Contracts, will, or could      reasonably be expected to, give rise directly or indirectly to the payment      of any amount that would be characterized as a “parachute payment” within      the meaning of Section 280G(b)(1) of the IRC.  There is no      agreement, plan, arrangement or other Contract by which CDT is bound to      compensate any employee for excise taxes paid pursuant to      Section 4999 of theCode.   |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | No      “nonqualified deferred compensation plan” (as such term is defined in      Section 409A(d)(1) of the IRC) is sponsored or maintained by      CDT. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.13 | Compliance with Legal      Requirements; GovernmentalAuthorizations |
|--------|------|---------------------------------------------------------------------|

| (i)   |    CDT      is, and at all times has been, in compliance with each Legal Requirement      that is or was applicable to it or to the conduct or operation of its      business or the ownership or use of any of its  assets; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |    no      event has occurred or circumstance exists that (with or without      notice  or lapse of time) (A) may constitute or result in a      violation by CDT of, or a failure on the part of CDT to comply with, any      Legal Requirement, or (B) may give rise to any obligation on the part of      CDT to undertake, or to bear all or any portion of the cost of, any      remedial action of any nature; and |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iii)   |   CDT      has not received, at any time since April 30, 2001, any notice or other      communication (whether oral or written) from any Governmental Body or any      other Person regarding (A) any actual, alleged, possible, or potential      violation of, or failure to comply with, any Legal Requirement, or (B) any      actual, alleged, possible, or potential obligation on the part of CDT to      undertake, or to bear all or any portion of the cost of, any remedial      action of any nature. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Part      3.13 of the Disclosure Schedule contains a complete and accurate list of      each Governmental Authorization that is held by CDT or that otherwise      relates to the Business, or to any of the assets owned or used by,      CDT.  Each Governmental Authorization listed or required to be      listed in Part 3.13 of the Disclosure Schedule is valid and in full force      and effect.  Except as set forth in Part 3.13 of the Disclosure      Schedule: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   |    CDT      is, and at all times has been, in full compliance with all of the terms      and requirements of each Governmental Authorization identified or required      to be identified in Part 3.13 of the Disclosure  Schedule; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |    no      event has occurred or circumstance exists that may (with or without notice      or lapse of time) (A) constitute or result directly or indirectly in a      violation of or a failure to comply with any term or requirement of any      Governmental Authorization listed or required to be listed in Part 3.13 of      the Disclosure Schedule, or (B) result directly or indirectly in the      revocation, withdrawal, suspension, cancellation, or termination of, or      any modification to, any Governmental Authorization listed or required to      be listed in Part 3.13 of the Disclosure  Schedule; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   |    CDT      has not received, at any time since April 30, 2001, any notice or other      communication (whether oral or written) from any Governmental Body or any      other Person regarding (A) any actual, alleged, possible, or potential      violation of or failure to comply with any term or requirement of any      Governmental Authorization, or (B) any actual, proposed, possible, or      potential revocation, withdrawal, suspension, cancellation, termination      of, or modification to any Governmental Authorization;  and |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iv)   |    all      applications required to have been filed for the renewal of the      Governmental Authorizations listed or required to be listed in Part 3.13      of the Disclosure Schedule have been duly filed on a timely basis with the      appropriate Governmental Bodies, and all other filings required to have      been made with respect to such Governmental Authorizations have been duly      made on a timely basis with the appropriate Governmental      Bodies. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.14 | Legal Proceedings;      Orders |
|--------|------|--------------------------------|

| (a)   | Except      as set forth in Part 3.14 of the Disclosure Schedule, there is no pending      or Threatened Proceeding: |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (i)   |    that      has been commenced by or against CDT or that otherwise relates to or may      affect the business of, or any of the assets owned or used by, CDT;      or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |    that      challenges, or that may have the effect of preventing, delaying, making      illegal, or otherwise interfering with, any of the Contemplated      Transactions. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   |    there      is no Order to which CDT, or any of the assets owned or used by CDT, is      subject; |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| (ii)   |    neither      CDT nor Seller is subject to any Order that relates to the business of, or      any of the assets owned or used by, CDT;and |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iii)   |    to      the Knowledge of Seller and CDT, no officer, director, agent, or employee      of CDT is subject to any Order that prohibits such officer, director,      agent, or employee from engaging in or continuing any conduct, activity,      or practice relating to the business ofCDT. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | CDT      is, and at all times since April 30, 2001 has been, in full compliance      with all of the terms and requirements of each Order to which it, or any      of the assets owned or used by it, is or has been  subject; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | no      event has occurred or circumstance exists that may constitute or result in      (with or without notice or lapse of time) a violation of or failure to      comply with any term or requirement of any Order to which Seller, CDT, or      any of the assets owned or used by CDT, is subject;  and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | CDT      has not received, at any time since April 30, 2001, any notice or other      communication (whether oral or written) from any Governmental Body or any      other Person regarding any actual, alleged, possible, or potential      violation of, or failure to comply with, any term or requirement of any      Order to which CDT, or any of the assets owned or used by CDT, is or has      been subject. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.15 | Absence of Certain      Changes and Events |
|--------|------|--------------------------------------------|

| (a)   | change      in CDT’s authorized or issued capital stock; grant of any stock option or      right to purchase shares of capital stock of  CDT; issuance of      any security convertible into such capital stock; grant of any      registration rights; purchase, redemption, retirement, or other      acquisition by CDT of any shares of any such capital stock; or declaration      or payment of any dividend or other distribution or payment in respect of      shares of capital stock; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | amendment      to the Organizational Documents ofCDT; |
|-----------------|-------------------------------------------------------|

|   | (c) | payment      of any bonuses, salaries, or other compensation to any stockholder,      director, officer, or (except in the Ordinary Course of Business) employee      or entry into any employment, severance, or similar Contract with any      director, officer, or employee; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | adoption      of, or increase in the payments to or benefits under, any profit sharing,      bonus, deferred compensation, savings, insurance, pension, retirement, or      other employee benefit plan for or with any employees of    CDT; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | damage      to or destruction or loss of any asset or property of CDT, whether or not      covered by insurance, materially and adversely affecting the properties,      assets, business, financial condition, or prospects of the CDT, taken as a      whole; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | entry      into, termination of, or receipt of notice of termination of (i) any      material license, distributorship, dealer, sales representative, joint      venture, credit, or similar agreement, or (ii) any Contract or transaction      involving a total remaining commitment by or to CDT of at least      $5,000; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | sale      (other than sales of inventory in the Ordinary Course of Business), lease,      or other disposition of any material asset or property of CDT or mortgage,      pledge, or imposition of any lien or other encumbrance on any material      asset or property of  CDT, including the sale, lease, or other      disposition of any of the Intellectual Property  Assets; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | cancellation      or waiver of any claims or rights with a value to CDT in excess of      $5,000; |
|-----------------|---------------------------------------------------------------------------------------------------|

| (j)   | agreement,      whether oral or written, by CDT to do any of the  foregoing. |
|-----------------|------------------------------------------------------------------------------|

----

|   | 3.16 | Contracts; No      Defaults |
|--------|------|-----------------------------|

| (a)   | Part      3.16(a) of the Disclosure Schedule contains a complete and accurate list,      and Seller and CDT have delivered to Buyer true and complete copies,      of: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   |    each      Applicable Contract that involves performance of services or delivery of      goods or materials by CDT of an amount or value in excess of      $25,000; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |    each      Applicable Contract that involves performance of services or delivery of      goods or materials to CDT of an amount or value in excess of      $25,000; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   |    each      Applicable Contract that was not entered into in the Ordinary Course of      Business and that involves expenditures or receipts of CDT in excess of      $25,000; |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   |    each      lease, rental or occupancy agreement, license, installment and conditional      sale agreement, and other Applicable Contract affecting the ownership of,      leasing of, title to, use of, or any leasehold or other interest in, any      real or personal property (except personal property leases and installment      and conditional sales agreements having a value per item or aggregate      payments of less than $5,000 and with terms of less than one      year); |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   |    each      licensing agreement or other Applicable Contract with respect to patents,      trademarks, copyrights, or other intellectual property, including      agreements with current or former employees, consultants, or contractors      regarding the appropriation or the non-disclosure of any of the      Intellectual Property Assets; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   |    each      collective bargaining agreement and other Applicable Contract to or with      any labor union or other employee representative of a group of      employees; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   |    each      joint venture, partnership, and other Applicable Contract (however named)      involving a sharing of profits, losses, costs, or liabilities by CDT with      any other Person; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (viii)   |    each      Applicable Contract containing covenants that in any way purport to      restrict the business activity of CDT or limit the freedom of CDT to      engage in any line of business or to compete with any    Person; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix)   |    each      Applicable Contract providing for payments to or by any Person based on      sales, purchases, or profits, other than direct payments for      goods; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (x)   |    each      power of attorney that is currently effective and    outstanding; |
|-----------------|-----------------------------------------------------------------------------------------------|

| (xi)   |    each      Applicable Contract entered into other than in the Ordinary Course of      Business that contains or provides for an express undertaking by CDT to be      responsible for consequentialdamages; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xii)   |    each      Applicable Contract for capital expenditures in excess of      $50,000; |
|-------------------|-----------------------------------------------------------------------------------------------------|

| (xiii)   |    each      written warranty, guaranty, and or other similar undertaking with respect      to contractual performance extended by CDT other than in the Ordinary      Course of Business; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xiv)   |    each      amendment, supplement, and modification (whether oral or written) in      respect of any of the foregoing. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | 3.17 | Insurance |
|--------|------|-----------|

| (i)   |    true      and complete copies of all policies of insurance to which CDT is a party      or under which CDT, or any director of CDT, is or has been covered at any      time within the three (3) years preceding the date of this Agreement;      and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |    true      and complete copies of all pending applications for policies of      insurance. |
|------------------|-------------------------------------------------------------------------------------------------------------|

| (i)   |    any      self-insurance arrangement by or affecting CDT, including any reserves      established thereunder; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |    any      contract or arrangement, other than a policy of insurance, for the      transfer or sharing of any risk by CDT;and |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   |    all      obligations of CDT to third parties with respect to insurance (including      such obligations under leases and service agreements) and identifies the      policy under which such coverage isprovided. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Neither      Seller nor CDT has received (A) any refusal of coverage or any notice that      a defense will be afforded with reservation of rights, or (B) any notice      of cancellation or any other indication that any insurance policy is no      longer in full force or effect or will not be renewed or that the issuer      of any policy is not willing or able to perform its obligations      thereunder. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | CDT      and/or Seller have paid all premiums due, and have otherwise performed its      obligations, under each policy to which CDT is a party or that provides      coverage to CDT or any director or officer of  CDT. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | CDT      has given timely notice to the insurer of all claims that may      be  insured thereby. |
|-----------------|------------------------------------------------------------------------------------------------------------|

----

|   | 3.18 | Environmental      Matters |
|--------|------|----------------------------|

|   | Except      as set forth in part 3.18 of the Disclosure  Schedule: |
|--------|--------------------------------------------------------------------|

| (a)   | To      the Knowledge of Seller and CDT’s management team, CDT is, and at all      times has been, in full compliance with, and has not been and is not in      violation of or liable under, any Environmental Law.  Neither      Seller nor CDT has any basis to expect, nor has any of them or any other      Person for whose conduct they are or may be held to be responsible      received, any actual or Threatened order, notice, or other communication      from (i) any Governmental Body or private citizen acting in the public      interest, or (ii) the current or prior owner or operator of any      Facilities, of any actual or potential violation or failure to comply with      any Environmental Law, or of any actual or Threatened obligation to      undertake or bear the cost of any Environmental, Health, and Safety      Liabilities with respect to any of the Facilities or any other properties      or assets (whether real, personal, or mixed) in which Seller or CDT has      had an interest, or with respect to any property or Facility at or to      which Hazardous Materials were generated, manufactured, refined,      transferred, imported, used, or processed by Seller, CDT, or any other      Person for whose conduct they are or may be held responsible, or from      which Hazardous Materials have been transported, treated, stored, handled,      transferred, disposed, recycled, orreceived. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | There      are no pending or, to the Knowledge of Seller and CDT, Threatened claims,      Encumbrances, or other restrictions of any nature, resulting from any      Environmental, Health, and Safety Liabilities or arising under or pursuant      to any Environmental Law, with respect to or affecting any of the      Facilities or any other properties and assets (whether real, personal, or      mixed) in which Seller or CDT has or had an  interest. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Neither      Seller nor CDT has Knowledge of any basis to expect, nor has any of them      or any other Person for whose conduct they are or may be held responsible,      received, any citation, directive, inquiry, notice, Order, summons,      warning, or other communication that relates to Hazardous Activity,      Hazardous Materials, or any alleged, actual, or potential violation or      failure to comply with any Environmental Law, or of any alleged, actual,      or potential obligation to undertake or bear the cost of any      Environmental, Health, and Safety Liabilities with respect to any of the      Facilities or any other properties or assets (whether real, personal, or      mixed) in which Seller or CDT had an interest, or with respect to any      property or facility to which Hazardous Materials generated, manufactured,      refined, transferred, imported, used, or processed by Seller, CDT, or any      other Person for whose conduct they are or may be held responsible, have      been transported, treated, stored, handled, transferred, disposed,      recycled, or received. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d)       Neither      Seller nor CDT, or any other Person for whose conduct they are or may be      held responsible, has any Environmental, Health, and Safety Liabilities      with respect to the Facilities or, to the Knowledge of Seller and CDT,      with respect to any other properties and assets (whether real, personal,      or mixed) in which Seller or CDT, has or had an  interest. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | There      are no Hazardous Materials present on or in the Environment at the      Facilities, including any Hazardous Materials contained in barrels, above      or underground storage tanks, landfills, land deposits, dumps, equipment      (whether moveable or fixed) or other containers, either temporary or      permanent, and deposited or located in land, water, sumps, or any other      part of the Facilities, or incorporated into any structure therein or      thereon.  Neither Seller, CDT, or any other Person for whose      conduct they are or may be held responsible, or to the Knowledge of Seller      and CDT, any other Person, has permitted or conducted, or is aware of, any      Hazardous Activity conducted with respect to the Facilities or any other      properties or assets (whether real, personal, or mixed) in which Seller or      CDT has or had an interest except in full compliance with all applicable      Environmental Laws. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | There      has been no Release or, to the Knowledge of Sellers and CDT, Threat of      Release, of any Hazardous Materials at or from the Facilities or at any      other locations where any Hazardous Materials were generated,      manufactured, refined, transferred, produced, imported, used, or processed      from or by the Facilities, or from or by any other properties and assets      (whether real, personal, or mixed) in which CDT has an      interest. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Neither      Seller nor CDT is aware of any report, study, analysis, test, or      monitoring possessed or initiated by Seller or CDT pertaining to Hazardous      Materials or Hazardous Activities in, on, or under the Facilities, or      concerning compliance by CDT or any other Person for whose conduct CDT is      responsible, with EnvironmentalLaws. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3.19 | Employees |
|--------|------|-----------|

| (a)   | Part      3.19 of the Disclosure Schedule contains a complete and accurate list of      the following information for each CDT employee, including each employee      on leave of absence or layoff status: name; job title; current      compensation paid or payable and any change in compensation since December      31, 2007; vacation accrued; and service credited for purposes of vesting      and eligibility to participate under CDT’s pension, retirement,      profit-sharing, thrift-savings, deferred compensation, stock bonus, stock      option, cash bonus, employee stock ownership (including investment credit      or payroll stock ownership), severance pay, insurance, medical, welfare,      or vacation plan, other Employee Pension Benefit Plan or Employee Welfare      Benefit Plan, or any other employee benefit plan or any Director      Plan. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | No      employee or director of CDT is a party to, or is otherwise bound by, any      agreement or arrangement, including any confidentiality, noncompetition,      or proprietary rights agreement, between such employee or director and any      other Person (“Proprietary Rights      Agreement”) that in any way adversely affects or will affect (i)      the performance of his duties as an employee or director of CDT, or (ii)      the ability of CDT to conduct its business.  To Seller’s      Knowledge, no officer or other key employee of CDT intends to terminate      his employment with CDT. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Part      3.19 of the of Disclosure Schedule identifies the stock options granted by      Seller to the employees of CDT (the “CDT Optionees”).  From and      after the Closing Date, neither CDT nor Buyer will have any financial or      other obligation to compensate the CDT Optionees in respect of the loss of      any actual or potential value of such stock options based upon the      expiration of such stock options as a consequence of the acquisition of      CDT by Buyer or otherwise. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3.20 | Labor Relations;      Compliance |
|--------|------|----------------------------------|

|   | 3.21 | Intellectual      Property |
|--------|------|----------------------------|

| (i)   |    all      patents, patent applications, and inventions and discoveries that may be      patentable (collectively, “Patents”) |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |    fictional      business names, trading names, registered and unregistered trademarks,      service marks, and applications (collectively, “Marks”); |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   |    all      copyrights in both published works and unpublished works (collectively,      “Copyrights”); |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   |    all      URLs, including without limitation www.cdt-inc.com/engineering.html,      www.cdt-inc.com/manufacturing.html, and  www.cdt-inc.com. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (v)   |    all      know-how, trade secrets, confidential information, customer lists,      software, technical information, data, process technology, plans,      drawings, and blue prints (collectively, “Trade      Secrets”); owned, used, or licensed by CDT as licensee or      licensor. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Part      3.21(b) of the Disclosure Schedule contains a complete and accurate list      and summary description, including any royalties paid or received by the      CDT, of all Contracts relating to the Intellectual Property Assets to      which CDT is a party or by which CDT is bound, except for any license      implied by the sale of a product and perpetual, paid-up licenses for      commonly available software programs under which CDT is the      licensee.  There are no outstanding and, to Seller’s Knowledge,      no Threatened disputes or disagreements with respect to any such      agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   |    The      Intellectual Property Assets are those necessary for the operation of the      Business as it is currently conducted.  Except as set forth in      Part 3.21(c) of the Disclosure Schedule, CDT is the owner of all right,      title, and interest in and to each of the Intellectual Property Assets,      free and clear of all liens, security interests, charges, encumbrances,      equities, and other adverse claims, and has the right to use without      payment to a third party all of the Intellectual Property      Assets. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   |    Except      as set forth in Part 3.21(c) of the Disclosure Schedule,      all  employees of CDT have executed written Contracts with CDT      that assign to CDT all rights to any inventions, improvements,      discoveries, or information relating to the Business.  No      employee of CDT has entered into any Contract that restricts or limits in      any way the scope or type of work in which the employee may be engaged or      requires the employee to transfer, assign, or disclose information      concerning his work to anyone other than the  CDT. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (i)   | Part      3.21(f) of the Disclosure Schedule contains a complete and accurate list      and summary description of all Copyrights.  CDT is the owner of      all right, title, and interest in and to each of the Copyrights, free and      clear of all liens, security interests, charges, Encumbrances, equities,      and other adverse claims. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | All      the Copyrights have been registered and are currently in compliance with      formal legal requirements, are valid and enforceable, and are not subject      to any maintenance fees or taxes or actions falling due within ninety (90)      days after the date of thisAgreement. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | To      Seller’s’ Knowledge, no Copyright is infringed or has been challenged or      threatened in any way.  None of the subject matter of any of the      Copyrights  infringes or is alleged to infringe any copyright of      any third party or is a derivative work based on the work of a third      party. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | All      works encompassed by the Copyrights have been marked with the proper      copyright notice. |
|------------------|------------------------------------------------------------------------------------------------------|

| (i)   | With      respect to each Trade Secret, the documentation relating to such Trade      Secret is current, accurate, and sufficient in detail and content to      identify and explain it and to allow its full and proper use without      reliance on the knowledge or memory of any  individual. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | To      Seller’s Knowledge, CDT has taken reasonable precautions to protect the      secrecy, confidentiality, and value of its Trade  Secrets. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | CDT      has good title and (not necessarily exclusive) right to use the Trade      Secrets.  The Trade Secrets are not part of the public knowledge      or literature, and, to Seller’s Knowledge, have not been used, divulged,      or appropriated either for the benefit of any Person (other      than  CDT) or to the detriment of CDT.  No Trade      Secret is subject to any adverse claim or, to the Knowledge of the      Sellers, has been challenged or threatened in any  way. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | CDT      has taken reasonable steps and customary measures and precautions      necessary to protect the Intellectual Property Assets.  All      current and to the Seller’s and CDT’s Knowledge, former employees and      consultants of CDT have executed an agreement regarding confidentiality      and proprietary information and copies of such agreements for current      employees have been delivered to Buyer.  To the Knowledge of      Seller and CDT, no employee or consultant of CDT is in violation thereof,      any Intellectual Property Assets of any of the CDT’s employees made prior      to their employment by CDT, which are necessary or useful in the Business,      have been assigned to CDT.  To the Seller’s and CDT’s Knowledge,      CDT is not infringing and has not at any time infringed or received any      notice or other communication (in writing or otherwise) of any actual,      alleged, possible or potential infringement of any registered US Patent or      Trade Mark.  To the Knowledge of CDT no person is infringing or      no proprietary asset owned or used by any other Person infringes or      conflicts with, any Intellectual Property Asset owned or used by      CDT. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (a) | CDT's      Liabilities as of the date of this Agreement shall not exceed $450,000.      For purposes of this Section 3.25, "Liabilities" means the aggregate of      (i) trade accounts payable, (ii) purchases clearing, (iii) all accruals,      and (iv) customer deposits.  Notwithstanding the foregoing,      Liabilities shall not be deemed to include intercompany obligations of CDT      or any other accruals for (i) income, franchise and sales and use taxes,      (ii) audit fees and (iii) legal fees (collectively, “Intercompany      Obligations”).  Further, the Buyer has no obligation or      responsibility for the “Investment in CDT” account balance identified in      the stockholder’s equity section of CDT’s balance      sheet.  Neither CDT nor Buyer shall have any obligation to pay      or reimburse Seller, and Seller shall have no right to collect, any of the      Intercompany Obligations or the Investment in CDT, as the same may      increase or decrease between December 31, 2007 and the Closing Date and      from and after the Closing no such Intercompany Obligations and Investment      in CDT shall be deemed liabilities of CDT or  Buyer. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Part      3.25 of the Disclosure Schedule sets forth (i) a breakdown and aging of      CDT’s existing accounts payable as of February 29, 2008, (ii) a breakdown      of all customer deposits and other deposits held by CDT as of the date of      this Agreement, and (iii) a breakdown of CDT’s long term      indebtedness. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3.28 | Disclosure |
|--------|------|------------|

| (a)   | No      representation or warranty of Seller or CDT in this Agreement and no      statement in the Disclosure Schedule omits to state a material fact      necessary to make the statements herein or therein, in light of the      circumstances in which they were made, not  misleading. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | No      notice given pursuant to Section 5.5 will contain any untrue statement or      omit to state a material fact necessary to make the statements therein or      in this Agreement, in light of the circumstances in which they were made,      not misleading. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | There      is no fact known to Seller that has specific application to CDT (other      than general economic or industry conditions) and that materially      adversely affects or, as far as Seller can reasonably foresee, materially      threatens, the assets, business, prospects, financial condition, or      results of operations of CDT that has not been set forth in this Agreement      or the Disclosure Schedule. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4   | REPRESENTATIONS      AND WARRANTIES OF BUYER |
|---------------|----------------------------------------------|

|   | 4.1 | Organization and Good      Standing |
|--------|-----|-------------------------------------|

|   | 4.2 | Authority; No      Conflict |
|--------|-----|-----------------------------|

| (a)   | This      Agreement constitutes the legal, valid, and binding obligation of Buyer,      enforceable against Buyer in accordance with its terms.  Upon      the execution and delivery by Buyer of this Agreement and the agreements      contemplated hereby,  this Agreement (and such other agreements)      will constitute the legal, valid, and binding obligations of Buyer,      enforceable against Buyer in accordance with their respective      terms.  Buyer has the absolute and unrestricted right, power,      and authority to execute and deliver this Agreement and to perform its      obligations under this Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | Neither      the execution and delivery of this Agreement by Buyer nor the consummation      or performance by Buyer of any of the transactions contemplated hereby      will give any Person the right to prevent, delay, or otherwise interfere      with the performance of the transactions contemplated hereby pursuant      to: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   |    any      provision of Buyer’s OrganizationalDocuments; |
|-----------------|--------------------------------------------------------------------------------|

| (ii)   |    any      resolution adopted by the board of directors or the stockholders of      Buyer; |
|------------------|------------------------------------------------------------------------------------------------------------|

| (iii)   |    any      Legal Requirement or Order to which Buyer may be subject;    or |
|-------------------|--------------------------------------------------------------------------------------------|

| (iv)   |    any      Contract to which Buyer is a party or by which Buyer may be      bound. |
|------------------|----------------------------------------------------------------------------------------------------|

| 5   | NOT      APPLICABLE |
|---------------|---------------------|

----

| 6   | COVENANTS      OF BUYER |
|---------------|-------------------------|

|   | 6.1 | Covenants Prior to      Closing Date |
|--------|-----|--------------------------------------|

|   | (a) | As      promptly as practicable after the date of this Agreement, Buyer will, and      will cause each of its Affiliates to, make all filings required by Legal      Requirements to be made by them to consummate this Agreement and the      transactions contemplated hereby.  Between the date of this      Agreement and the Closing Date, Buyer will, and will cause each Affiliate      to, cooperate with Seller and CDT with respect to all filings that Seller      or CDT is required by Legal Requirements to make in connection with the      execution, delivery and performance of this Agreement, and (ii) cooperate      with Seller in obtaining all consents identified in Part 3.2 of the      Disclosure Schedule; provided that this Agreement will not require Buyer      to dispose of or make any change in any portion of its business or to      incur any other burden to obtain a Governmental    Authorization. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Except      as set forth in the proviso to Section 6.1(a), between the date of this      Agreement and the Closing Date, Buyer will use its Best Efforts to cause      the conditions in Sections 7 and 8 to be  satisfied. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7   | CONDITIONS      PRECEDENT TO BUYER’S OBLIGATION TOCLOSE |
|---------------|---------------------------------------------------------------|

----

| (a)   | All      of the covenants and obligations that Seller is required to perform or to      comply with pursuant to this Agreement at or prior to the Closing      (considered collectively), and each of these covenants and obligations      (considered individually), must have been duly performed and complied with      in all material respects. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Each      document required to be delivered pursuant to Section 2.5 must have been      delivered, and each of the other covenants and obligations in Section 5      must have been performed and complied with in all material      respects. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.3 | Consents |
|--------|-----|----------|

|   | 7.4 | Additional      Documents |
|--------|-----|---------------------------|

| (a)   | an      opinion of counsel to the Seller, dated the Closing Date, as to such      matters as customarily are the subjects of opinions of Seller’s counsel      in  transactions of the type contemplated by this Agreement,      such opinion to be subject to the reasonable expectations of Buyer and its      counsel; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | such      other documents as Buyer may reasonably request for the purpose of      (i)  evidencing the accuracy of any of Sellers’ representations      and warranties, (ii) evidencing the performance by Seller or CDT of, or      the compliance by Seller or CDT with, any covenant or obligation required      to be performed or complied with by Seller or CDT, (iii) evidencing the      satisfaction of any condition referred to in this Section 7, or (iv)      otherwise facilitating the consummation or performance of any of the      transactions contemplated by thisAgreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8   | CONDITIONS      PRECEDENT TO SELLER’S OBLIGATION TOCLOSE |
|---------------|----------------------------------------------------------------|

|   | 8.2 | Buyer’s      Performance |
|--------|-----|--------------------------------|

----

| (a)   | All      of the covenants and obligations that Buyer is required to perform or to      comply with pursuant to this Agreement at or prior to the Closing      (considered collectively), and each of these covenants and obligations      (considered individually), must have been performed and complied with in      all material respects. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Buyer      must have delivered each of the documents required to be delivered by      Buyer pursuant to Section 2.5 and must have made the cash      payments  required to be made pursuant to Section      2.5(b). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9   | TERMINATION |
|---------------|-------------|

----

|   | 9.1 | Termination      Events |
|--------|-----|-------------------------|

| (a)   | by      either Buyer or Seller if a material Breach of any provision of this      Agreement has been committed by the other party and such Breach has not      been waived; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | (i)      by Buyer if any of the conditions in Section 7 has not been satisfied as      of the Closing Date or if satisfaction of such a condition is or becomes      impossible (other than through the failure of Buyer to comply with its      obligations under this Agreement) and Buyer has not waived such condition      on or before the Closing Date; or (ii) by Seller, if any of the conditions      in Section 8 has not been satisfied of the Closing Date or if satisfaction      of such a condition is or becomes impossible (other than through the      failure of Seller or CDT to comply with their      respective  obligations under this Agreement) and Seller has not      waived such condition on or before the Closing  Date; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | by      either Buyer or Seller if the Closing has not occurred (other than through      the failure of any party seeking to terminate this Agreement to comply      fully with its obligations under this Agreement) on or before March 31,      2008, or such later date as the parties may agree  upon. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | INDEMNIFICATION;      REMEDIES |
|----------------|--------------------------------|

----

|   | 10.1 | Survival; Right to      Indemnification Not Affected byKnowledge |
|--------|------|------------------------------------------------------------------|

|   | 10.2 | Indemnification And      Payment Of Damages By Seller |
|--------|------|-------------------------------------------------------|

| (a)   | any      Breach of any representation or warranty made by Seller or CDT in this      Agreement, the Disclosure Schedule, the supplements to the Disclosure      Schedule, or any other certificate or document delivered by Seller or CDT      pursuant to this Agreement; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | any      Breach of any representation or warranty made by Seller or CDT in this      Agreement as if such representation or warranty were made on and as of the      Closing Date without giving effect to any supplement to the Disclosure      Schedule, other than any such Breach that is disclosed in a supplement to      the Disclosure Schedule and is expressly identified in the certificate      delivered pursuant to Section 2.5(a)(ii) as having caused the condition      specified in Section 7.1 not to besatisfied; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | any      Breach by Seller of any of its covenants or obligations in this      Agreement; |
|-----------------|------------------------------------------------------------------------------------------|

----

| (d)   | any      claim by any Person for brokerage or finder’s fees or commissions or      similar payments based upon any agreement or understanding alleged to have      been made by any such Person with Seller (or any Person acting on its      behalf) in connection with this Agreement or the transactions contemplated      hereby. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 | Time      Limitations |
|--------|------|-----------------------|

|   | 10.5 | Limitations On      Amount--Seller |
|--------|------|------------------------------------|

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|   | 10.6 | Limitations On      Amount--Buyer |
|--------|------|-----------------------------------|

|   | 10.7 | Procedure For      Indemnification--Third PartyClaims |
|--------|------|-------------------------------------------------------|

| (a)   | Promptly      after receipt by an indemnified party under Section 10.2 or 10.3 of notice      of the commencement of any Proceeding against it, such indemnified party      will, if a claim is to be made against an indemnifying party under such      Section, give notice to the indemnifying party of the commencement of such      claim, but the failure to notify the indemnifying party will not relieve      the indemnifying party of any liability that it may have to any      indemnified party, except to the extent that the indemnifying party      demonstrates that the defense of such action is prejudiced by the      indemnifying party’s failure to give such  notice. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (b)   | If      any Proceeding referred to in Section 10.7(a) is brought against an      indemnified party and it gives notice to the indemnifying party of the      commencement of such Proceeding, the indemnifying party will, unless the      claim involves Taxes, be entitled to participate in such Proceeding and,      to the extent that it wishes (unless (i) the indemnifying party is also a      party to such Proceeding and the indemnified party determines in good      faith that joint representation would be inappropriate, or (ii) the      indemnifying party fails to provide reasonable assurance to the      indemnified party of its financial capacity to defend such Proceeding and      provide indemnification with respect to such Proceeding), to assume the      defense of such Proceeding with counsel reasonably satisfactory to the      indemnified party and, after notice from the indemnifying party to the      indemnified party of its election to assume the defense of such      Proceeding, the indemnifying party will not, as long as it diligently      conducts such defense, be liable to the indemnified party under this      Section 10 for any fees of other counsel or any other expenses with      respect to the defense of such Proceeding, in each case subsequently      incurred by the indemnified party in connection with the defense of such      Proceeding, other than reasonable costs of investigation.  If      the indemnifying party assumes the defense of a Proceeding, (i) it will be      conclusively established for purposes of this Agreement that the claims      made in that Proceeding are within the scope of and subject to      indemnification; (ii) no compromise or settlement of such      claims  may be effected by the indemnifying party without the      indemnified party’s consent unless (A) there is no finding or admission of      any violation of Legal Requirements or any violation of the rights of any      Person and no effect on any other claims that may be made against the      indemnified party, and (B) the sole relief provided is monetary damages      that are paid in full by the indemnifying party; and (iii) the indemnified      party will have no liability with respect to any compromise or settlement      of such claims effected without its consent.  If notice is given      to an indemnifying party of the commencement of any Proceeding and the      indemnifying party does not, within ten (10) days after the indemnified      party’s notice is received by the indemnifying party, give notice to the      indemnified party of its election to assume the defense of such      Proceeding, the indemnifying party will be bound by any determination made      in such Proceeding or any compromise or settlement effected by the      indemnified party. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (c)   | Notwithstanding      the foregoing, if an indemnified party determines in good faith that there      is a reasonable probability that a Proceeding may adversely affect it or      its affiliates other than as a result of monetary damages for which it      would be entitled to indemnification under this Agreement, the indemnified      party may, by notice to the indemnifying party, assume the exclusive right      to defend, compromise, or settle such Proceeding, but the indemnifying      party will not be bound by any determination of a Proceeding so defended      or any compromise or settlement effected without its consent (which may      not be unreasonably withheld). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | GENERAL      PROVISIONS |
|----------------|-------------------------|

|   | 11.1 | Expenses |
|--------|------|----------|

|   | 11.2 | Public      Announcements |
|--------|------|---------------------------|

|   | 11.3 | Confidentiality |
|--------|------|-----------------|

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|   | 11.4 | Notices |
|--------|------|---------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| BUYER:TACPRO,INC.By:  /s/      Nitin P.      Matani                                                          Name:      Nitin P. Matani      Title:      President/CEO | SELLER:CARDIOTECH      INTERNATIONAL INC.By:      /s/ Eric G. Walters       Name: Eric      G. Walters       Title: VP      & CFO                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | CATHETER      AND DISPOSABLE TECHNOLOGY, INC.By:  /s/      Michael F.      Adams                                                           Name:      Michael F. Adams       Title:      President & Treasurer   |

| BO1      15903178.5 |
|---------------------|

| BO1      15903178.4 |
|---------------------|

| BO1      15903178.3 |
|---------------------|

| BO1      15903178.2 |
|---------------------|

| BO1      15903178.1 |
|---------------------|

|   |
|--------|

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