Document:

Exhibit
10.1

EXECUTION COPY

PURCHASE AGREEMENT

Among

HAWAIIAN TELCOM
COMMUNICATIONS, INC.

HAWAIIAN TELCOM
SERVICES COMPANY, INC.

And

CBD INVESTOR, INC.

Dated as of April
29, 2007

Table of Contents

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  1.2

  	
   

  	
  Other Definitional Provisions

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II PURCHASE AND SALE; CONTRIBUTION; CLOSING

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Purchase and Sale

  	
   

  	
  9

  
	
  2.2

  	
   

  	
  Purchase Price

  	
   

  	
  9

  
	
  2.3

  	
   

  	
  Purchase Price Adjustment

  	
   

  	
  10

  
	
  2.4

  	
   

  	
  The Contribution

  	
   

  	
  12

  
	
  2.5

  	
   

  	
  The Closing

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATIONS AND WARRANTIES OF PARENT
  AND SELLER

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Organization and Related Matters

  	
   

  	
  12

  
	
  3.2

  	
   

  	
  Authorization; No Conflicts

  	
   

  	
  13

  
	
  3.3

  	
   

  	
  Capitalization

  	
   

  	
  14

  
	
  3.4

  	
   

  	
  Financial Statements; Changes; No Other Liabilities

  	
   

  	
  14

  
	
  3.5

  	
   

  	
  Tax Matters

  	
   

  	
  15

  
	
  3.6

  	
   

  	
  Contracts

  	
   

  	
  15

  
	
  3.7

  	
   

  	
  Actions

  	
   

  	
  16

  
	
  3.8

  	
   

  	
  Insurance

  	
   

  	
  16

  
	
  3.9

  	
   

  	
  Compliance with Laws

  	
   

  	
  16

  
	
  3.10

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  16

  
	
  3.11

  	
   

  	
  No Brokers or Finders

  	
   

  	
  16

  
	
  3.12

  	
   

  	
  Bank Accounts

  	
   

  	
  17

  
	
  3.13

  	
   

  	
  Permits

  	
   

  	
  17

  
	
  3.14

  	
   

  	
  Intercompany Transactions

  	
   

  	
  17

  
	
  3.15

  	
   

  	
  Intellectual Property

  	
   

  	
  17

  
	
  3.16

  	
   

  	
  Sufficiency of Assets

  	
   

  	
  18

  
	
  3.17

  	
   

  	
  Environmental Matters

  	
   

  	
  18

  
	
  3.18

  	
   

  	
  Personal Property

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Organization and Related Matters

  	
   

  	
  19

  
	
  4.2

  	
   

  	
  Authorization; No Conflicts

  	
   

  	
  19

  
	
  4.3

  	
   

  	
  No Brokers or Finders

  	
   

  	
  19

  
	
  4.4

  	
   

  	
  Actions

  	
   

  	
  19

  
	
  4.5

  	
   

  	
  Compliance with Law

  	
   

  	
  19

  
	
  4.6

  	
   

  	
  Financial Capabilities

  	
   

  	
  20

  
	
  4.7

  	
   

  	
  Insurance Matters

  	
   

  	
  20

  
	
  4.8

  	
   

  	
  Investment Representation

  	
   

  	
  20

  
	
  4.9

  	
   

  	
  Investigation; No Other Representations or
  Warranties

  	
   

  	
  20

  

 

 i
 

 

	
  ARTICLE V COVENANTS

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Conduct of Business

  	
   

  	
  22

  
	
  5.2

  	
   

  	
  Access

  	
   

  	
  24

  
	
  5.3

  	
   

  	
  Efforts; No Inconsistent Action

  	
   

  	
  24

  
	
  5.4

  	
   

  	
  Insurance Coverage

  	
   

  	
  26

  
	
  5.5

  	
   

  	
  Supplemental Disclosure

  	
   

  	
  27

  
	
  5.6

  	
   

  	
  Cooperation

  	
   

  	
  27

  
	
  5.7

  	
   

  	
  Confidentiality

  	
   

  	
  28

  
	
  5.8

  	
   

  	
  Ancillary Agreements

  	
   

  	
  28

  
	
  5.9

  	
   

  	
  Prior Knowledge

  	
   

  	
  28

  
	
  5.10

  	
   

  	
  Certain Notices

  	
   

  	
  28

  
	
  5.11

  	
   

  	
  No Negotiation

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI CONDITIONS OF PURCHASE

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  General Conditions

  	
   

  	
  28

  
	
  6.2

  	
   

  	
  Conditions Precedent to Obligations of Buyer

  	
   

  	
  29

  
	
  6.3

  	
   

  	
  Conditions Precedent to Obligations of Parent and
  Seller

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII INDEMNIFICATION

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Survival Period

  	
   

  	
  31

  
	
  7.2

  	
   

  	
  Period for Claims

  	
   

  	
  31

  
	
  7.3

  	
   

  	
  Indemnification Obligation of Seller

  	
   

  	
  31

  
	
  7.4

  	
   

  	
  Indemnification Obligation of Buyer and the Company

  	
   

  	
  32

  
	
  7.5

  	
   

  	
  Definitions for Purposes of this Article

  	
   

  	
  32

  
	
  7.6

  	
   

  	
  Limitation on Claims for Indemnifiable Losses

  	
   

  	
  33

  
	
  7.7

  	
   

  	
  Defense of Claims

  	
   

  	
  33

  
	
  7.8

  	
   

  	
  Subrogation

  	
   

  	
  34

  
	
  7.9

  	
   

  	
  Remedies Exclusive

  	
   

  	
  35

  
	
  7.10

  	
   

  	
  Mitigation

  	
   

  	
  35

  
	
  7.11

  	
   

  	
  Tax Treatment

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII TAX MATTERS

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Certain Taxes and Fees

  	
   

  	
  35

  
	
  8.2

  	
   

  	
  Allocation of Purchase Price

  	
   

  	
  36

  
	
  8.3

  	
   

  	
  FIRPTA Certificate

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX TERMINATION

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Termination of Agreement

  	
   

  	
  37

  
	
  9.2

  	
   

  	
  Good Faith Performance

  	
   

  	
  37

  
	
  9.3

  	
   

  	
  Effect of Termination

  	
   

  	
  37

  
	
  9.4

  	
   

  	
  Compliance with Non-Disclosure Agreement

  	
   

  	
  38

  

 

 ii
 

 

	
  ARTICLE X MISCELLANEOUS

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Notices

  	
   

  	
  38

  
	
  10.2

  	
   

  	
  Information Releases

  	
   

  	
  39

  
	
  10.3

  	
   

  	
  Expenses

  	
   

  	
  40

  
	
  10.4

  	
   

  	
  Successors and Assigns

  	
   

  	
  40

  
	
  10.5

  	
   

  	
  Amendments

  	
   

  	
  40

  
	
  10.6

  	
   

  	
  Captions

  	
   

  	
  40

  
	
  10.7

  	
   

  	
  Entire Agreement

  	
   

  	
  40

  
	
  10.8

  	
   

  	
  Waiver

  	
   

  	
  41

  
	
  10.9

  	
   

  	
  Third Parties

  	
   

  	
  41

  
	
  10.10

  	
   

  	
  Counterparts

  	
   

  	
  41

  
	
  10.11

  	
   

  	
  Governing Law

  	
   

  	
  41

  
	
  10.12

  	
   

  	
  Further Assurances

  	
   

  	
  42

  
	
  10.13

  	
   

  	
  Severability

  	
   

  	
  42

  
	
  10.14

  	
   

  	
  Schedules; Exhibits

  	
   

  	
  42

  
	
  10.15

  	
   

  	
  Knowledge Convention

  	
   

  	
  43

  

 

Exhibit A:                                            Working
Capital Policies and Principles

Exhibit B:                                              Form
of Contribution Agreement

Exhibit C:                                              Form
of Publishing Agreement

Exhibit D:                                             Form
of Billing and Collection Services Agreement

Exhibit E:                                               Form
of List License Agreement

Seller Disclosure
Schedule

 iii

PURCHASE AGREEMENT

This Purchase
Agreement (this “Agreement”) is entered into as of April 29, 2007, by
and among Hawaiian Telcom Communications, Inc., a Delaware corporation (“Parent”), Hawaiian Telcom Services
Company, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Seller”), and  CBD Investor, Inc., a Delaware corporation
(“Buyer”); and, together
with Parent and Seller, the “Parties”).

RECITALS

WHEREAS, Seller is the sole member of Directory Co.,
LLC, a Delaware limited liability company (the “Company”), and Seller
owns all of the outstanding limited liability company membership interests (the
“Membership Interests”) in the Company;

WHEREAS, immediately prior to the Closing, Seller
shall contribute all of the assets exclusively related to the Business (as
defined herein) to the Company, and the Company shall assume the liabilities
relating to the Business, in each case, pursuant to the terms of the
Contribution Agreement (as defined herein);

WHEREAS, the Parties intend to treat the transfers
pursuant to the Contribution Agreement as, together with the transactions
contemplated by this Agreement, a taxable disposition of the assets related to
the Business for U.S. federal and applicable state income tax purposes; and

WHEREAS, Seller desires to sell, and Buyer desires to
purchase, all of Membership Interests for the consideration and on the terms
and conditions described herein.

AGREEMENT

NOW, THEREFORE, IT IS AGREED that in consideration of
the mutual promises contained herein and intending to be legally bound, the
Parties agree as follows:

ARTICLE I

DEFINITIONS

1.1           Definitions.  For all purposes of this Agreement, the
Exhibits and the Seller Disclosure Schedule, except as otherwise expressly
provided, the following definitions shall apply:

“Accounting Firm” means PricewaterhouseCoopers,
or another nationally recognized accounting firm mutually acceptable to Seller
and Buyer.

“Action” means any action, complaint, petition,
investigation, suit or other proceeding before any Governmental Authority.

“Adjusted Working Capital” means as of any date
of determination an amount equal to the current assets of Seller (other than
any cash and cash equivalents held by Seller or any of its Affiliates or any
agents on behalf of Seller or any of its Affiliates) less the current
liabilities of Seller, in each case, exclusively arising out of the conduct of
the Business, and all determined in accordance with GAAP as adjusted, and in a
manner consistent with, the policies and principles set forth on Exhibit A.

“Affiliate” or “Affiliates” means, with
respect to a specified Person, a Person that directly, or indirectly through
one or more intermediaries, controls, or is controlled by, or is under common
control with, the specified Person.

“Ancillary Agreements” means the Contribution
Agreement, the Publishing Agreement, the Billing and Collection Services
Agreement and the List License Agreement and other agreements, certificates and
documents required hereunder to consummate the Closing.

“Beneficially Own” or “Beneficial Ownership”
shall have the meaning set forth in Rule 13d-3 of the rules and regulations
promulgated under the Securities Exchange Act of 1934, as amended.

“Berry Agreement” means that certain Directory
Services Agreement, dated as of February 4, 2005, between Hawaiian Telcom
Communications, Inc., as successor in interest of Hawaiian Telcom Merger Sub,
Inc., and L.M. Berry Company, as amended.

“Billing and Collection Services Agreement”
means the Billing and Collection Services Agreement to be entered into at
Closing between HT and the Company substantially in the form of Exhibit D
attached hereto.

“Business” means, solely for the purposes of
this Agreement, the business of publishing and providing telephone directory
products in the State of Hawaii consisting principally of searchable (e.g., by
alphabet letter or category) multiple telephone listings and classified
advertisements primarily of Persons located in the State of Hawaii, that are
directed to end users primarily in the State of Hawaii in tangible media (e.g.,
paper directories, CD-ROM) or electronic media (e.g., Internet), and generating
revenue principally through the sale of such classified advertisements, as
presently conducted by Seller; provided that Business does not include the
business of (i) marketing, selling or distributing Telecommunications Services
or (ii) operating any Operator-Assisted Directories.

“Business Audited Financial Statements” means
the audited balance sheets of the Business as at December 31, 2004,
December 31, 2005 (it being understood that the presentation of the
balance sheets for the year ended December 31, 2005 includes separate
presentations of the balance sheets of the four month period ended May 1, 2005
and the eight month period ended December 31, 2005) and December 31, 2006,
and audited

 2
 

statements of income and cash flows of the Business
for the twelve month period ended December 31, 2004, the four month period
ended May 1, 2005, the eight month period ended December 31, 2005 and the
twelve month period ended December 31, 2006, in each case prepared in
accordance with GAAP.

“Business Day” means any day other than a
Saturday, a Sunday or a day on which banks in the city of New York or the State
of Hawaii are authorized or required to be closed.

“Buyer” has the meaning set forth in the
Preamble hereto.

“Buyer Indemnitees” has the meaning set forth
in Section 7.3.

“Closing” has the meaning set forth in
Section 2.5(a).

“Closing Date” has the meaning set forth in
Section 2.5(b).

“Closing Date Statement” has the meaning set
forth in Section 2.3(b).

“Code” means the Internal Revenue Code of 1986,
as amended.

“Company” has the meaning set forth in the
Recitals hereto.

“Commission” means the Public Utilities
Commission of the State of Hawaii.

“Contract” means any contract, agreement,
arrangement (excluding any regulatory tariff), note, bond, mortgage, lease or
other agreement legally binding on any of the Parties hereto.

“Contributed Assets” has the meaning set forth
in the Contribution Agreement.

“Contribution” has the meaning set forth in
Section 2.4.

“Contribution Agreement” means the Contribution
Agreement to be entered into prior to the Closing in the form of Exhibit B
attached hereto.

“Control” (including the correlative terms “Controls,”
“Controlled by,” “Controlled,” “Controlling” and “under common Control with”)
means, with respect to any Person, possession of the power, directly or
indirectly, either to (i) vote a majority of the voting shares or other
voting interests in such Person for the election of directors of such Person or
(ii) direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities or by contract.

“Credit Agreement” means the Credit Agreement
dated May 2, 2005, as amended, restated, supplemented, waived, replaced
(whether or not upon termination, and whether

 3
 

with the original lenders or otherwise), refinanced
(including through the issuance of debt securities), restructured or otherwise
modified from time to time, among Parent, Hawaiian Telcom Holdco, Inc., a
Delaware corporation and the direct parent of Parent, JPMorgan Chase Bank, as
administrative agent, J.P. Morgan Securities Inc. and Goldman Sachs Credit
Partners L.P., as joint lead arrangers, J.P. Morgan Securities Inc., Goldman Sachs
Credit Partners L.P., and Lehman Brothers Inc., as Joint Bookrunners, Goldman
Sachs Credit Partners L.P., as Syndication Agent, and Lehman Commercial Paper
Inc., as Documentation Agent.

“Decision and Order” means the March 16, 2005
Decision and Order number 21696 issued by the Commission.

“Direct Claim” has the meaning set forth in
Section 7.7(b).

“Encumbrance” means any claim, charge,
mortgage, indenture, easement, encumbrance, covenant, security interest, lien,
option, pledge, rights of others, license or restriction (whether on voting,
sale, transfer, disposition or otherwise), except for any restrictions on
transfer generally arising under any applicable federal or state securities
Law; provided, however, that, “Encumbrance” shall not include any matter
that:  (i) constitutes a statutory
lien arising in the ordinary course of business consistent with past practice
for sums not yet due and payable; (ii) is in respect of current Taxes not
yet due and payable or being contested in good faith; (iii) leases and
subleases to any third party tenant; (iv) arises as a result of any zoning,
entitlement or other land use or environmental regulation promulgated by a
Governmental Authority; or (v) with respect to the properties or assets of
Seller relating to the Business or the Company does not singly or in the
aggregate with other such items materially detract from the value of the
property or materially detract from or interfere with the use of property in
the ordinary conduct of business as presently conducted.

“Equity Securities” means any capital stock or
limited liability company membership interest, any other equity interest or
other securities which have the right to vote, any securities convertible into
or exchangeable for capital stock, any other equity interests or other
securities which have the right to vote or any other rights, warrants or
options of any Person to purchase or acquire any of the foregoing securities.

“ERISA Plan” has the meaning set forth in
Section 3.10.

“Estimated Working Capital” has the meaning set
forth in Section 2.3(a).

“Estimated Working Capital Statement” has the
meaning set forth in Section 2.3(a).

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 4
 

“FCC Act” means the Federal Communications Act
of 1934, as amended (47 U.S.C. ss 151 et seq.).

“Final Working Capital” has the meaning set
forth in Section 2.3(c).

“GAAP” means generally accepted accounting
principles in the United States.

“Governmental Authority” means any government
or any agency, bureau, board, commission, court, department, official,
political subdivision, tribunal or other instrumentality of any government in
the United States, whether federal, interstate, state or local.

“Hart-Scott-Rodino Act” means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the
related regulations and published interpretations.

“Hawaii Regulatory
Approvals” has the meaning set forth in Section 5.3(b).

“High Target Working Capital” has the meaning
set forth in Section 2.3(a).

“HT” means Hawaiian Telcom, Inc., a Hawaii
corporation and wholly-owned subsidiary of Parent.

“Indebtedness” means at a particular time,
without duplication, (i) any indebtedness for borrowed money or issued in
substitution for or exchange of indebtedness for borrowed money, (ii) any
indebtedness evidenced by any note, bond, debenture or other debt security,
(iii) any indebtedness guaranteed in any manner by a Person and
(iv) any obligations under capitalized leases or purchase money financing
with respect to which a Person is liable, contingently or otherwise, as
obligor, guarantor or otherwise, including, with respect to any indebtedness
for which prepayment is permitted, any pre-payment penalties and costs
associated with the pre-payment of any such indebtedness.

“Indemnifiable Claim” means any Loss for or
against which any Party is entitled to indemnification under this Agreement.

“Indemnification Payment” has the meaning set
forth in Section 7.5(a).

“Indemnitee” has the meaning set forth in
Section 7.5(b).

“Indemnitor” has the meaning set forth in
Section 7.5(c).

“Intellectual Property” means all intellectual
property or proprietary rights, including without limitation (i) all
inventions, all improvements thereto, and all patents and patent applications
(ii) all trademarks, service marks, trade dress, logos, brand names, trade
names, and domain names, and all applications and registrations in connection
therewith (iii) all copyrightable works and other works of authorship, all
copyrights, and all applications and registrations in connection therewith, and
(iv) all trade secrets, know how, and other confidential or proprietary
information.

 5
 

“IRS” means the Internal Revenue Service or any
successor entity.

“Knowledge of Buyer”
has the meaning set forth in Section 10.15.

“Knowledge of Seller”
has the meaning set forth in Section 10.15.

“Law” means any constitutional provision,
statute or other law, rule, regulation, ordinance, judgment, decree, award,
ruling, requirement, license, permit or code of any Governmental Authority.

“List License Agreement” means the List License
Agreement to be entered into at Closing between HT and the Company
substantially in the form of Exhibit E attached hereto.

“Losses” has the meaning set forth in
Section 7.5(d).

“Low Target Working Capital” has the meaning
set forth in Section 2.3(a).

“Material Adverse Effect” means any change or
effect that is materially adverse to the operations, assets or financial
condition of the Company and the Business, taken as a whole, but excluding any
such effect caused by, resulting from or arising as a result of, any fact,
circumstance or condition that (i) is generally applicable to the industry in
which Seller or the Business operates, (ii) is generally applicable to the
economy or securities markets of the State of Hawaii or the United States,
(iii) is set forth in the Seller Disclosure Schedule to the extent disclosed or
(iv) results from the execution of this Agreement, the announcement of this
Agreement, the consummation of the transactions contemplated hereby or in the
Ancillary Agreements, the identity of Buyer or any breach by Buyer of any
provision hereof.

“Material Contract” means each Contract to
which Seller or Parent is (or, following the consummation of the Contribution,
the Company will be) a party or to which Seller, Parent or any properties of
either is subject or by which any thereof is bound (or, following the
consummation of the Contribution, the Company or any of its properties will be
subject or by which any thereof will be bound) and, in each case, that is set
forth on Section 1.1 of the Seller Disclosure Schedule.

“Membership Interests” has the meaning set
forth in the Recitals.

“Non-Disclosure Agreement” has the meaning set
forth in Section 5.2.

“Order” means any decree, injunction, judgment,
order, ruling, assessment or writ.

 6
 

“Operator-Assisted Directories” means
operator-assisted telephone directories (e.g., 411 directory assistance or
similar service) that deliver information in the form of a voice response (live
or automated) and include residential, business and/or Governmental Authority
telephone listings.

“Permit” means any license, permit, franchise
or certificate and any extension, modification, amendment or waiver of the
foregoing, required to be issued by any Governmental Authority.

“Person” means an association, a corporation,
an individual, a partnership, a limited liability company, a trust or any other
entity or organization, including a Governmental Authority.

“Proposed Final Working Capital” has the
meaning set forth in Section 2.3(b).

“Publishing Agreement” means the Publishing
Agreement (including all Exhibits attached thereto) to be entered into at
Closing between HT and the Company substantially in the form of Exhibit C
attached hereto.

“Purchase Price” has the meaning set forth in
Section 2.2.

“Purchase Price Allocation” has the meaning set
forth in Section 8.2(a).

“Representatives” has the meaning set forth in
the Non-Disclosure Agreement.

“Securities Act” means the Securities Act of
1933, as amended.

“Seller” has the meaning set forth in the
Preamble hereto.

“Seller Corporate Policies” has the meaning set
forth in Section 4.7.

“Seller Disclosure Schedule” means the
disclosure schedule delivered by Seller to Buyer on the date hereof, as it may
be amended from time to time in accordance with Section 5.5 hereof.

“Seller Execution Party” means any of Parent,
Seller, the Company or HT.

“Seller Indemnification Limit” has the meaning
set forth in Section 7.6(a).

“Seller Indemnitees” has the meaning set forth
in Section 7.4.

“Seller Threshold” has the meaning set forth in
Section 7.6(a).

“Settlement Requirements” has the meaning set
forth in Section 7.7(a).

 7
 

“subsidiary” means, with respect to any Person,
any Person in which such Person has a direct or indirect equity or ownership
interest in excess of 50%.

“Target Working Capital” means the amount equal
to (i) the sum of the positive or negative Adjusted Working Capital amounts set
forth on the Target Working Capital Statement for each of the six calendar
months ending on the last day of the second calendar month prior to the month
in which the Closing occurs divided by (ii) six (6).

“Target Working Capital Statement” means a
statement setting forth the Target Working Capital, the calculation of Target
Working Capital, the unaudited balance sheet of the Business as of the end of
each calendar month relevant to the calculation of Target Working Capital and
the calculation of Adjusted Working Capital derived from each such balance
sheet, all prepared in accordance with GAAP as adjusted, and in a manner
consistent with, the policies and principles set forth on Exhibit A.

“Tax”
or “Taxes” means any federal, state, local or foreign income, gross
receipts, franchise, estimated, alternative minimum, add-on minimum,
sales, use, transfer, real property gains, registration, value added, excise,
natural resources, severance, stamp, occupation, premium, windfall profit,
environmental, customs, duties, real property, special assessment, personal
property, capital stock, social security, unemployment, disability, payroll,
license, employee or other withholding, or other tax, of any kind whatsoever,
including any interest, penalties or additions to tax or additional amounts in
respect of the foregoing; the foregoing shall include any transferee or
secondary liability for a Tax and any liability assumed by agreement or arising
as a result of being (or ceasing to be) a member of any affiliated group of
corporations filing a consolidated Tax Return (or by being included (or
required to be included) in any Tax Return relating thereto).

“Tax Returns” means any return, report, information return or
other document (including schedules or any related or supporting information)
filed or required to be filed with any Governmental Authority in connection
with the determination, assessment or collection of any Tax or the
administration of any Laws, regulations or administrative requirements relating
to any Tax.

“Telecommunications Services” means all
communications services and products, including (i) any telecommunications
services set forth in the FCC Act and the rules, regulations, published orders
and policies of the Federal Communications Commission thereunder, or the
equivalent thereof as may be adopted by the Commission for intrastate purposes,
in either case as may be modified from time to time, (ii) other voice, video
and data transmission services, information services (as defined in the FCC Act
and the rules, regulations, published orders, and policies of the Federal
Communications Commission thereunder, each as may be modified from time to
time), and (iii) internet connectivity, 
wireless communications, cable, Internet Protocol Television, satellite,
web hosting, and any and all extensions or replacements thereof using technology
now known or hereafter developed, or any other comparable or successor products
or services.

 8
 

“Termination Date” has the meaning set forth in
Section 9.1(b).

“Third Party Consent” means any approval,
consent or other waiver required to be obtained from or any any notice required
to be delivered to any Person other than a Governmental Authority.

“Third Party Claim” has the meaning set forth
in Section 7.7(a).

“Transaction Taxes” has the meaning set forth
in Section 8.1(a).

1.2           Other
Definitional Provisions.

(a)           The
words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and “Article”, “Section”, and “Exhibit” references are to this
Agreement unless otherwise specified.

(b)           The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

(c)           The
words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation” whether or not they are in fact followed by
such words or words of like import.

ARTICLE II

PURCHASE AND SALE;
CONTRIBUTION; CLOSING

2.1           Purchase and Sale.  Upon the terms and subject to the conditions
hereinafter set forth, Seller agrees to sell, free and clear of any
Encumbrances, all of Seller’s rights, title and interest in and to the
Membership Interests to Buyer, and Buyer agrees to purchase all of the
Membership Interests from Seller, for the consideration and on the terms and
conditions hereinafter set forth.  The
transfer of the Membership Interests from Seller to Buyer shall be in a form
acceptable for transfer on the books of the Company.

2.2           Purchase Price.  Subject to the terms and conditions of this
Agreement, the aggregate purchase price for the Membership Interests shall be
an amount equal to $435,000,000 (the “Purchase Price”).  At the Closing, the Purchase Price shall be
adjusted as provided in Section 2.3(a) to reflect certain differences
between the Target Working Capital and the Estimated Working Capital.  The Purchase Price shall be subject to
further adjustment as provided in Section 2.3(d).  Any payments under this Section 2.2 made on
the Closing Date shall be made by wire transfer of immediately available funds
in U.S. Dollars on the Closing Date to an account designated by Seller to Buyer
at least one Business Day prior to the Closing Date.

 9
 

2.3           Purchase
Price Adjustment.

(a)           Not
less than two Business Days prior to the Closing Date, Seller will deliver to
Buyer the Target Working Capital Statement and a good faith estimate of the
Adjusted Working Capital as of the Closing Date (the “Estimated Working
Capital”) and submit to Buyer a written statement (the “Estimated
Working Capital Statement”) setting forth, in reasonable detail, Seller’s
calculation of the Estimated Working Capital. 
The Estimated Working Capital Statement shall be prepared in accordance
with GAAP as adjusted, and in a manner consistent with, the policies and
principles set forth on Exhibit A. 
If (i) the Estimated Working Capital is greater than one hundred five
percent (105%) of Target Working Capital (the “High Target Working Capital”),
the Purchase Price payable at the Closing will be increased by the difference
between the Estimated Working Capital and the High Target Working Capital, (ii)
the Estimated Working Capital is less than ninety five percent (95%) of Target
Working Capital (the “Low Target Working Capital”), the Purchase Price
payable at the Closing will be decreased by the difference between the Estimated
Working Capital and the Low Target Working Capital and (iii) the Estimated
Working Capital is less than or equal to the High Target Working Capital but
greater than or equal to the Low Target Working Capital, the Purchase Price
payable at Closing will not be adjusted pursuant to this Section 2.3(a).

(b)           Promptly
following the Closing Date, but in no event later than forty-five (45) days
after the Closing Date, Seller shall provide to Buyer the proposed Adjusted
Working Capital of Seller as of the Closing Date (the “Proposed Final
Working Capital”) and submit to Buyer a written statement (the “Closing
Date Statement”) setting forth, in reasonable detail, Seller’s calculation
thereof.  The Closing Date Statement
shall be prepared in accordance with GAAP as adjusted, and in a manner
consistent with, the policies and principles set forth on Exhibit A.  The Closing Date Statement shall clearly
identify all differences between the Proposed Final Working Capital and the
Estimated Working Capital and shall include a reasonably detailed explanation
of the basis for each such difference. 
Buyer shall fully cooperate with and assist, and shall cause the Company
and its employees and agents to fully cooperate with and assist Seller and its
employees and representatives in its preparation of the Closing Date Statement
and shall provide Seller and its employees and representatives access at all
reasonable times to the personnel, properties, books, records and work papers
of Buyer and the Company for such purpose and for the other purposes set forth
in this Section 2.3, in each case without cost to Seller.

(c)           In
the event Buyer disputes the correctness of the Proposed Final Working Capital,
Buyer shall notify Seller in writing of its objections within thirty (30) days
after receipt of the Closing Date Statement and shall set forth, in writing and
in reasonable detail, the reasons for Buyer’s objections.  If Buyer fails to deliver its notice of
objections within thirty (30) days after receipt of the Closing Date Statement,
Buyer shall be deemed to have accepted Seller’s calculation.  Seller and Buyer shall endeavor in good faith
to resolve any disputed matters within fifteen (15) days after receipt of Buyer’s
notice of

 10
 

objections.  If Seller and Buyer
are unable to resolve the disputed matters, Seller and Buyer shall promptly
refer the disputed matters to the Accounting Firm.  The Accounting Firm shall offer Seller and
Buyer (and their respective employees and Representatives) the opportunity to
provide written submissions regarding their positions on the disputed matters,
which opportunity shall not extend more than fifteen (15) days after the
submission of the disputed matters to the Accounting Firm.  The Accounting  Firm shall deliver a written report resolving
all disputed matters and setting forth the basis for such resolution within
thirty (30) days after Seller and Buyer have submitted in writing (or have had
the opportunity to submit in writing but have not submitted) their positions as
to the disputed items.  The determination
of the Accounting Firm in respect of the correctness of each matter remaining
in dispute shall be conclusive and binding on Seller and Buyer.  The determination of the Accounting Firm
shall be based solely on the written submissions by Seller and Buyer and shall
not be based upon any independent review (it being understood that the
Accounting Firm need not accept in its entirety the submission of either one
Party or the other).  The Adjusted
Working Capital as of the Closing Date, as finally determined pursuant to this
Section 2.3(c) (whether by failure of Buyer to deliver notice of objection, by
agreement of Seller and Buyer or by determination of the Accounting Firm), is
referred to herein as the “Final Working Capital.”

(d)           Not
later than two Business Days after the determination of Final Working Capital,
Buyer or Seller, as applicable, will make such payments to the other Party as
are necessary such that, after giving effect to the increase or decrease in
Purchase Price made at Closing pursuant to Section 2.3(a), (i) if Final Working
Capital is greater than the High Target Working Capital, Seller shall have
received an aggregate amount equal to the amount by which Final Working Capital
is greater than the High Target Working Capital and Buyer shall not have
received any amount in respect of a working capital adjustment, (ii) if Final
Working Capital is less than the Low Target Working Capital, Buyer shall have
received an aggregate amount equal to the amount by which Final Working Capital
is less than the Low Target Working Capital and Seller shall not have received
any amount in respect of a working capital adjustment or (iii) if Final Working
Capital is greater than or equal to the Low Target Working Capital but less
than or equal to the High Target Working Capital, neither Party shall have
received any amount in respect of a working capital adjustment pursuant to this
Section 2.3.   Any such payment shall be
made by wire transfer of immediately available funds in U.S. Dollars not later
than ten Business Days after the determination of the Final Working Capital to
a bank account designated in writing to the Party entitled to receive the
payment.

(e)           The
fees and expenses, if any, of the Accounting Firm retained in accordance with
Section 2.3(c) to resolve any dispute shall be paid one-half by Buyer and
one-half by Seller.

(f)            In
the event the Accounting Firm is requested to resolve any dispute pursuant to
this Section 2.3, any meetings or proceedings involving the Accounting Firm in connection
with such dispute resolution shall be held in Honolulu, Hawaii or another
location that is mutually agreeable to the Parties.

 11
 

2.4           The Contribution.  Immediately prior to the Closing and pursuant
to the Contribution Agreement, Seller shall contribute to the Company (the “Contribution”)
any and all of its right, title and interest in and to the assets exclusively
relating to the Business and shall cause the Company to assume the liabilities
relating to the Business, all on the terms and conditions set forth in the Contribution
Agreement.  The Parties acknowledge that
nothing in this Agreement shall be deemed to prohibit the consummation of the
Contribution and that the consummation of the Contribution shall not constitute
a breach of any provision of this Agreement, including Section 5.1.

2.5           The
Closing.

(a)           Unless
this Agreement shall have been terminated and the transactions herein have been
abandoned pursuant to Article IX of this Agreement, the closing of the
transactions contemplated by this Agreement and the Ancillary Agreements shall
take place at a closing (the “Closing”) to be held at the offices of Latham & Watkins
LLP, counsel to Seller, located at 885 Third Avenue, New York, NY 10022 or at
such other location as may be agreed upon by Buyer and Seller.

(b)           The
Closing shall take place on the third Business Day following the satisfaction
or waiver of the conditions contained in Article VI of this Agreement (other
than conditions that, by their nature, are to be satisfied on the Closing
Date), or on such later date as may be agreed upon by Buyer and Seller (the
date on which the Closing occurs is herein referred to as the “Closing Date”).

ARTICLE III

REPRESENTATIONS AND
WARRANTIES OF PARENT AND SELLER

Except as otherwise indicated on the Seller Disclosure
Schedules hereto, Parent and Seller represent and warrant as follows:

3.1           Organization
and Related Matters.  Each of the
Seller Execution Parties is a corporation or limited liability company, as
applicable, duly incorporated or organized, as applicable, validly existing and
in good standing under the Laws of the state of its incorporation or formation,
as applicable, and has all necessary power and authority to own, lease and
operate its assets and properties and carry on its business as now conducted
and, except as otherwise indicated on Section 3.1 of the Seller Disclosure
Schedule, is duly qualified or licensed to do business as a foreign corporation
or foreign limited liability company, as applicable, in good standing in all
jurisdictions in which the nature of its business requires such licensing or
qualification, except where the failure to be so qualified or licensed would
not, individually or in the aggregate, reasonably be expected to result in a

 12
 

Material Adverse Effect.  True, correct and complete copies of the
Certificate of Incorporation or Certificate of Formation, as applicable and the
By-Laws or Limited Liability Company Agreement of each applicable Seller
Execution Party have been furnished to Buyer. 
Each Seller Execution Party has all necessary power and authority to
execute, deliver and perform this Agreement, if applicable, and the Ancillary Agreements to which it is or
will be a party, to consummate the transactions contemplated hereby and
thereby, as applicable, and to perform its obligations hereunder and
thereunder, as applicable.

3.2           Authorization;
No Conflicts.

(a)           The
execution, delivery and performance by the Seller Execution Parties of this
Agreement, if applicable, and the Ancillary Agreements executed or to be
executed by the Seller Execution Parties, as applicable, and the consummation
of the transactions contemplated hereby and thereby, as applicable, have been
duly and validly authorized by all necessary action on the part of each Seller
Execution Party, and no other action or approval on the part of any such Seller
Execution Party is necessary to authorize this Agreement or the Ancillary
Agreements, as applicable, or perform the obligations under this Agreement or
the Ancillary Agreements, as applicable, or to consummate the transactions
contemplated hereby or thereby, as applicable.

(b)           This
Agreement has been duly executed and delivered by Parent and Seller, and the
Ancillary Agreements to which any Seller Execution Party will be a party will
be duly executed and delivered by such Seller Execution Party, as applicable,
and constitute or will constitute, when executed and delivered, the legal,
valid and binding obligations of such Seller Execution Party, as applicable,
enforceable against such Seller Execution Party, as applicable, in accordance
with their respective terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar Laws affecting creditors’ rights generally, and
subject, as to enforceability, to the exercise of judicial discretion in
accordance with principles of equity.

(c)           The
Seller Execution Parties’ respective execution, delivery and performance of
this Agreement, as applicable, and the Ancillary Agreements to which any of
them is or will be a party will not (i) violate, or constitute a breach or
default under, (A) such Seller Execution Parties’ respective Certificate of
Incorporation or Certificate of Formation, as applicable, or By-Laws or Limited
Liability Company Agreement, as applicable, or (B) except as set forth on
Section 3.2(c) of the Seller Disclosure Schedule, any Material Contract to
which any of them is a party or under which any of their material assets are
bound, except for any violations of or breaches or defaults under any Material
Contract that would not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect, or (ii) result in the
imposition of any material Encumbrance against all or any portion of the
Business.  Subject to obtaining the
Hawaii Regulatory Approvals and the expiration or termination of the waiting
period (and any extensions thereof) applicable to the consummation of the
transactions contemplated by this Agreement under  the Hart-Scott-Rodino Act, the Seller
Execution Parties’ respective execution, delivery and performance of this
Agreement, as applicable, and the Ancillary Agreements to which any of them is
or will be a party will not violate any Law in any material respect.

 13
 

3.3           Capitalization.  Section 3.3 of the Seller Disclosure Schedule
sets forth the capitalization of the Company. 
Seller is the sole member of the Company and owns all of the Membership
Interests, beneficially and of record, free and clear of any Encumbrance other
than any Encumbrance existing under the Credit Agreement.  Other than the Membership Interests, there
are no issued and outstanding Equity Securities of the Company.  Except as contemplated hereby or in the
Contribution Agreement, there are no outstanding Contracts or other rights to
subscribe for or purchase, or Contracts or other obligations to issue, sell,
purchase, exchange or grant any rights to acquire, any Equity Securities of the
Company, and no securities or obligations evidencing such rights are
authorized, issued or outstanding. 
Except as contemplated hereby or in the Contribution Agreement, there
are no outstanding Contracts of Parent, Seller or the Company to repurchase,
redeem or otherwise acquire any Equity Securities of the Company.  The Membership Interests are duly authorized,
validly issued, fully paid and nonassesable and are not subject to, and have
not been issued in violation of, any preemptive rights.  The Company does not have any subsidiaries,
nor does it own any direct or indirect equity or debt interest in any other
Person, nor is it obligated to acquire any such interest.

3.4           Financial
Statements; Changes; No Other Liabilities.

(a)           Financial
Statements.  The Business Audited
Financial Statements that are attached hereto as Section 3.4(a) of the Seller
Disclosure Schedule were prepared from the books and records of Seller in
accordance with GAAP applied on a consistent basis throughout the periods
involved (other than as set forth therein or disclosed in Section 3.4(a) of the
Seller Disclosure Schedule) and present fairly, in all material respects, the
financial condition and results of operations of the Business as of the dates
thereof and for the respective periods therein indicated.

(b)           Certain
Changes.  Except as set forth on
Section 3.4(b) of the Seller Disclosure Schedule, from December 31, 2006
through the date hereof, there has not been, occurred or arisen any change in
or event, fact or circumstance with respect to the Business or the Company that
has had a Material Adverse Effect.

(c)           No
Other Liabilities.  Seller has not
incurred any liabilities with respect to the Business that would be required in
accordance with GAAP to be disclosed in a balance sheet of the Business except
liabilities (i) that are reflected in the Business Audited Financial
Statements, (ii) that are set forth on Section 3.4(c) of the Seller Disclosure
Schedule, or (iii) that were incurred since December 31, 2006 in the ordinary
course of business.

 14
 

3.5           Tax
Matters.  Except as set forth on
Section 3.5 of the Seller Disclosure Schedule:

(a)           Seller,
with respect to the Business, and the Company have timely filed all material Tax
Returns that they were required to file. 
All such Tax Returns were correct and complete in all material
respects.  All material Taxes of Seller,
with respect to the Business, and the Company (whether or not shown on any Tax
Return) have been timely paid.  All material
Taxes which have been collected from third parties by Seller, with respect to
the Business, or the Company have been properly remitted to the appropriate
taxing authorities.  There are no
material Encumbrances for Taxes upon any of the assets of the Company or the
Business.

(b)           There is no material dispute, claim or audit
concerning any Tax liability of the Company or Seller that relates to the
Business ongoing, pending or proposed in writing by any taxing authority.  Seller has not executed or entered
into (or prior to the close of business on the Closing Date will not execute or
enter into) with any taxing authority (i) any agreement, waiver or other
document extending or having the effect of extending or waiving the period for
assessments or collection of any material Taxes for which the Seller would or
could be liable or (ii) any closing agreement pursuant to Section 7121 of the
Code, or any predecessor provision thereof or any similar provision of state,
local or foreign Tax law that relates to the assets or operations of the
Seller.

(c)           None of the assets of the Company is property
required to be treated as being owned by any other person pursuant to the “safe
harbor lease” provisions of former Section 168(f)(8) of the Code.

(d)           None of the assets of the Company directly or
indirectly secures any debt the interest on which is tax-exempt under
Section 103(a) of the Code.

(e)           None of the assets of the Company is “tax-exempt use
property” within the meaning of Section 168(h) of the Code.

(f)            Notwithstanding the foregoing, the representations
and warranties set forth in Sections 3.5(a) and (b), as such
representations and warranties relate to Seller, shall not be applicable to the
extent that the assets to be owned at Closing by the Company cannot be subject
to Tax liens and Buyer and the Company cannot be held liable for Taxes relating
to matters constituting any breach of such representations and warranties.

3.6           Contracts.  True copies of each Material Contract,
including all amendments, modifications and supplements thereof, have been made
available to Buyer.  As of the date
hereof, each Material Contract is valid and in full force and effect according
to its terms, and Seller or Parent, as applicable, has performed its
obligations thereunder in all material respects (to the extent such obligations
have accrued) and is not in default or breach under, any such Material
Contract, except, in the case each Material Contract other

 15
 

than the Berry
Agreement, where such failure to be in full force and effect or default or
breach, has not had a Material Adverse Effect, and in the case of the Berry
Agreement, where such failure to be in full force and effect or default or
breach would have a material and adverse effect on the Business.

3.7           Actions.  There is no Order or Action served and
pending or, to the Knowledge of Seller, threatened or filed but not served,
against Seller or the Company that questions the validity of this Agreement or
the Ancillary Agreements or any action taken or to be taken by Seller or the
Company in connection herewith, or which seeks to enjoin the consummation of
the transactions contemplated herein or therein.  Section 3.7 of the Seller Disclosure Schedule
sets forth a list as of the date hereof of all served and pending or, to the
Knowledge of Seller, threatened or filed but not served, Actions in which
Seller or the Company is a party which would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

3.8           Insurance.  Section 3.8 of the Seller Disclosure Schedule
contains a summary description of all policies of property, fire and casualty,
product liability, workers’ compensation, and other forms of insurance held by
Seller (to the extent relating to the Business) as of the date hereof.  True, correct and complete copies of such
insurance policies have been made available to Buyer.

3.9           Compliance with Laws.  Except as set forth on Section 3.9 of the
Seller Disclosure Schedule, Seller and the Company in the conduct of the
Business have complied with all applicable Laws, and neither the Seller nor the
Company has received any claim or notice that the Company or the Business is
not in compliance with, all Laws applicable to the Company, the Business, the
Membership Interests or any assets of the Business. It is the intent of the
Parties that this representation and warranty is not applicable to matters
relating to Taxes, which are the subject of Section 3.5.

3.10         Employee Benefit Plans.  The Company does not have any employees, and
it does not maintain, participate in or contribute, and is not required to
contribute, to any “employee benefit plan” (within the meaning of Section 3(3)
of the Employee Retirement Income Security Act of 1974, as amended), or any
other severance, change-in-control, retention, incentive, deferred compensation
or equity based employment plan, policy, program or agreement, whether written
or unwritten. (any such plan, program or policy, an “ERISA Plan”).

3.11         No
Brokers or Finders.  Other than
Lehman Brothers Inc. whose fees will be paid by Parent, no agent, broker,
finder, or investment or commercial banker, or other Person or firm engaged by
or acting on behalf of Parent, Seller, the Company or any of their respective
Affiliates in connection with the negotiation, execution or performance of this
Agreement or the Ancillary Agreements, or the transactions contemplated by this
Agreement or the Ancillary Agreements, is or will be entitled to any broker’s
or finder’s or similar fee or other commission as a result of this Agreement or
such transactions.

 16
 

3.12         Bank
Accounts.  Section 3.12 of the
Seller Disclosure Schedule contains a complete and correct list of the names
and locations of all banks in which Seller (to the extent relating to the
operation of the Business) has (and, at Closing the Company will have) accounts
(including checking accounts and cash contribution accounts) or safe deposit
boxes and the names of all Persons authorized to draw thereon or to have access
thereto.

3.13         Permits.  Except as set forth on Section 3.13 of the
Seller Disclosure Schedule, Seller holds and, subject to obtaining the Hawaii
Regulatory Approvals, as of the Closing, the Company will hold all Permits that
are required by any Governmental Authority to conduct the Business as now
conducted and possess the assets to be contributed in the Contribution
immediately after Closing, except where the failure to hold any such Permit or
for such Permit to be in full force and effect has not had and would not be
reasonably expected to have, individually or in the aggregate, a Material
Adverse Effect.  To the Knowledge of
Seller, as of the date hereof, no suspension, cancellation or termination of
any of such material Permits is threatened that would be reasonably likely to
materially and adversely affect the ability of the Company or Buyer after the
Closing to conduct the Business as it is currently conducted.

3.14         Intercompany
Transactions.  Except for the
Contribution Agreement and the transactions contemplated by the other Ancillary
Agreements be executed at Closing, Seller has not engaged in any material transaction
with Parent or HT or any Affiliate of either for which any liabilities or
obligations relating to the Company or the Business will remain to be satisfied
after the Closing.

3.15         Intellectual Property.

(a)           Section 3.15(a)
of the Seller Disclosure Schedule lists all (a) patents and patent
applications, (b) trademark and service mark registrations and applications for
registration thereof, (c) copyright registrations and applications for
registration thereof, and (d) internet domain name registrations, in each case
that are owned by Seller or HT, that are used by the Business, and that will be
owned by the Company as of the Closing (the “Company Intellectual Property”).  With respect to each item of Intellectual Property listed on Section
3.15(a) of the Seller Disclosure Schedule, neither the Seller nor HT has received written notice
of any pending or threatened action, suit, proceeding, hearing, investigation,
charge, complaint, claim, or demand that challenges the legality, validity,
enforceability, registration, use, or ownership of the item.

(b)           Except
as disclosed in Section 3.15(b) of the Seller Disclosure Schedule, neither
Seller nor HT has received during the past three (3) years any written charge,
complaint, claim, demand or notice alleging that the use of the Company
Intellectual Property by Seller in the Business infringes, misappropriates,
dilutes or otherwise violates any Intellectual Property right of any
Person.  To the Knowledge of Seller, no
Person is currently infringing, misappropriating, diluting or otherwise
violating any Company Intellectual Property.

 17
 

(c)           Subject
to the terms and conditions of the Publishing Agreement, including without
limitation the Branding Exhibit attached thereto, and assuming the consummation
of the transactions contemplated by the Contribution Agreement, the rights of
Seller under the Berry Agreement and the Intellectual Property rights to be
assigned and licensed to Buyer under the Ancillary Agreements consist of all
the Intellectual Property rights owned or used by Seller that are sufficient to
permit Buyer to carry on the operation of the Business as it is conducted by
Seller immediately prior to the Closing Date in all material respects.

3.16         Sufficiency of Assets.  Except as set forth in Section 3.16 of the
Seller Disclosure Schedule and subject to Section 3.15, the Contributed Assets
(as defined in the Contribution Agreement), as of the Closing Date (assuming
the consummation of the transactions contemplated by the Contribution
Agreement) will be sufficient to permit Buyer to carry on the operation of the
Business as it is conducted by Seller immediately prior to the Closing Date in
all material respects.  Notwithstanding
the foregoing, it is understood and agreed that the immediately preceding
sentence assumes (i) that Buyer will assume the Berry Agreement (pursuant to
which Parent and Seller outsource the functional operation of the Business) without
material modification to the terms thereof and take all of the services being
performed by L.M. Berry Company immediately prior to the Closing Date, (ii)
does not purport to address the existence or sufficiency of any rights in or
licenses to any Company Intellectual Property (which is exclusively addressed
in Section 3.15), (iii) shall not be deemed a representation or warranty as to
any revenue, costs or expenses associated with the conduct of the Business
immediately following the Closing Date and (iv) assumes the receipt of all
necessary authorizations, approvals, consents or waivers required by Law, by
Governmental Authorities or other third parties pursuant to their Contract
rights in connection with the transactions contemplated hereby and pursuant to
the Ancillary Agreements.

3.17         Environmental
Matters.  To the Knowledge of Seller,
there are no served and pending or threatened environmental remediation
activities, or requests for information or notices of violation of any nature
or other Action seeking to impose on the Business or the Company any liability
pursuant to any Law, in each case, relating to the protection of the natural
environment, including the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, which liability could reasonably be
expected to have a Material Adverse Effect.

3.18         Personal
Property.  Seller has (and at
Closing, the Company will have) good and marketable title, free of all
Encumbrances, to the tangible assets included in the Contributed Assets.

 18
 

ARTICLE IV

REPRESENTATIONS AND
WARRANTIES OF BUYER

Buyer represents and warrants as follows:

4.1           Organization and Related
Matters.  Buyer is a limited
liability company duly organized, validly existing and in good standing under
the Laws of the jurisdiction of its incorporation.  Buyer has all necessary corporate power and
authority to carry on its business as now conducted.  Buyer has the necessary corporate power and
authority to execute, deliver and perform this Agreement.  The execution, delivery and performance of
this Agreement by Buyer have been duly and validly authorized by the Board of
Directors of Buyer and by all other necessary corporate action on the part of
Buyer.  This Agreement constitutes a
legally valid and binding obligation of Buyer, enforceable against Buyer in
accordance with its terms except as such enforceability may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar Laws affecting credtiors’ rights generally and subject, as to
enforceability, to the exercise of judicial discretion in accordance with
principles of equity.

4.2           Authorization; No Conflicts.  The execution, delivery and performance of
this Agreement by Buyer will not violate, or constitute a breach or default
under, (a) Buyer’s Certificate of Incorporation or By-Laws or (b) any Contract
to which Buyer is a party.  Subject to
obtaining the Hawaii Regulatory Approvals and the expiration or termination of
the waiting period (and any extensions thereof) applicable to the consummation
of the transactions contemplated by this Agreement under the Hart-Scott-Rodino
Act, Buyer’s execution, delivery and performance of this Agreement will not
violate any Law in any material respect.

4.3           No Brokers or Finders.  No agent, broker, finder or investment or
commercial banker, or other Person or firms engaged by or acting on behalf of
Buyer, or its Affiliates in connection with the negotiation, execution or
performance of this Agreement or the Ancillary Agreements or the transactions
contemplated hereby or thereby, is or will be entitled to any broker’s or
finder’s or similar fees or other commissions as a result of this Agreement or
such transactions.

4.4           Actions.  There is no Order or Action pending or, to
the Knowledge of Buyer, threatened against or affecting Buyer that individually
or when aggregated with one or more other Orders or Actions has or could
reasonably be expected to have a material adverse effect on Buyer’s ability to
perform this Agreement.

4.5           Compliance with Law.  Buyer is operating its businesses in
compliance with all applicable Laws, except for violations of applicable Laws
which (i) have not and would not, individually or in the aggregate, reasonably
be expected to have a material adverse effect on the business, operations,
assets or financial condition of Buyer or (ii) have not and could not
reasonably be expected to have a material adverse effect on Buyer’s ability to
perform this Agreement.

 19

4.6           Financial Capabilities.  Buyer has prior to the date hereof delivered
to Seller a true, correct and complete copy of an executed commitment letter from
Welsh, Carson, Anderson & Stowe X, L.P. committing it to provide to Buyer
the necessary financing for, subject to the terms and conditions therein, the
transactions contemplated by this Agreement. 
As of the date hereof, the commitment letter described in the preceding
sentence is in full force and effect, has not been withdrawn nor terminated,
and Buyer has no reason to believe that such letter will not lead to the
financing contemplated thereunder.  The
financing contemplated by such letter constitutes all of the financing required
to be provided by Buyer for the consummation of the transactions contemplated
by this Agreement, including the payment of the Purchase Price and the payment
of all fees and expenses incurred by Buyer in connection therewith.  Seller shall be entitled to rely upon the
financing commitment provided by Welsh, Carson, Anderson & Stowe X, L.P. in
such letter as a third party beneficiary.

4.7           Insurance Matters.  Buyer acknowledges that all or substantially
all of the policies and insurance coverage maintained on behalf of the entities
comprising the Business are part of the corporate insurance program maintained
by Seller or its Affiliates (the “Seller
Corporate Policies”).

4.8           Investment Representation.  Buyer acknowledges that the Membership
Interests are not registered under the Securities Act.  Buyer is an “accredited investor” as defined
under the Securities Act and possesses such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of its investments hereunder. 
Buyer is acquiring beneficial ownership of the Membership Interests for
its own account, for investment purposes only and not with a view to the
distribution thereof (other than in compliance with all applicable federal and
state securities Laws).  Buyer agrees
that the Membership Interests will not be sold, transferred, offered for sale,
pledged, hypothecated or otherwise disposed of, directly or indirectly, without
registration under the Securities Act, except pursuant to a valid exemption
from registration under the Securities Act.

4.9           Investigation;
No Other Representations or Warranties.

(a)           Buyer
hereby acknowledges that it:

(1)           is an informed and
sophisticated participant in the transactions contemplated hereby and by the
Ancillary Agreements;

(2)           has conducted a
thorough review and analysis of the operations, assets, liabilities, results of
operations, financial condition, software, technology and prospects of the
Business and the Company;

 20
 

(3)           has been provided
access to the agents, personnel, properties, premises and records of each of
Seller, the Business and the Company that it considered sufficient for purposes
of enabling it to give this acknowledgement; and

(4)           has, as of the date
hereof, no knowledge of any disagreements or concerns with respect to the
Business Audited Financial Statements based on diligence performed by Buyer and
its Affiliates on the Business to date.

(b)           Except
for the representations and warranties expressly set forth in Article III of
this Agreement,  Buyer
acknowledges that none of Parent, Seller, the Company or any of their Affiliates
or any other Person makes any other express or implied representation or
warranty with respect to the Membership Interests, the Company, the Business or
otherwise or with respect to any other information provided to Buyer or its
respective Affiliates, agents or Representatives, whether on behalf of Parent,
Seller, any Affiliate of either or the Company or such other Persons, including
as to (1) the operation of the Business by Buyer or the Company after the
Closing in any manner other than operated by Seller or Seller’s Affiliates or
(2) the probable success or profitability of the ownership or operation of
the Business by Buyer or the Company after the Closing, including the
profitability of the Material Contracts, either individually or in the aggregate.  FOR THE AVOIDANCE OF DOUBT, BUYER HEREBY
AGREES THAT EXCEPT AS EXPRESSLY SET FORTH IN ARTICLE III OF THIS AGREEMENT, THE
MEMBERSHIP INTERESTS, THE BUSINESS AND THE ASSETS AND LIABILITIES OF THE
BUSINESS ARE TRANSFERRED “AS IS,” “WHERE
IS” AND, SUBJECT ONLY TO THE REPRESENTATIONS AND WARRANTIES CONTAINED IN
ARTICLE III, WITH ALL FAULTS AND WITHOUT ANY OTHER REPRESENTATION OR WARRANTY
OF ANY KIND OR NATURE WHATSOEVER, EXPRESS OR IMPLIED, ORAL OR WRITTEN, AND IN
PARTICULAR, WITHOUT ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY
WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR USE OR PURPOSE AS
TO ANY OF THE ASSETS OF THE BUSINESS.

(c)           In
furtherance of the foregoing, Buyer acknowledges and agrees that except for an
Action based on the representations and warranties contained in Article III of
this Agreement, no Action may be brought by or on behalf of Buyer or any other
Person against Parent, Seller or any other Person, and neither Parent, Seller
nor any other Person will have or be subject to any liability or
indemnification obligation to Buyer or any other Person, based on any
representations and warranties or resulting from the distribution to Buyer, or
Buyer’s use of, any information, including the Confidential Descriptive
Memorandum dated January 2007 or any information, projections, documents or
material made available to Buyer at any time in certain “data rooms,”
management presentations, “break-out” discussions, responses to questions
submitted by or on behalf of Buyer, whether orally or in writing, or in any
other form in expectation or furtherance of the transactions contemplated by
this Agreement or the Ancillary Agreements.

 21
 

ARTICLE V

COVENANTS

5.1           Conduct of Business.  During the period from the date of this
Agreement to the earlier of (x) the termination of this Agreement pursuant to
Article IX or (y) the Closing Date, except as set forth in Section 5.1 of
the Seller Disclosure Schedule and except as expressly contemplated by this
Agreement, the Contribution Agreement or any other Ancillary Agreement or as
required by any Law, Order (including the Decision and Order and any other
Order of the Commission) or Permit or as consented to in writing by Buyer,
which consent shall not be unreasonably conditioned, delayed or withheld, Seller
shall and shall cause the Company to:

(a)           operate the Business in the ordinary course and
substantially the same manner as it is currently being conducted;

(b)           maintain the tangible personal property of the Business in
good repair, order and condition, reasonable wear and tear excepted;

(c)           maintain the Seller Corporate Policies with respect to the
Business consistent with past practice; provided the Parties acknowledge that
Parent or Seller may at any time cancel prospectively or not renew any of the
Seller Corporate Policies as to coverage relating to events after the Closing
Date or insured risks other than those associated with the Business on or prior
to the Closing Date;

(d)           maintain the books and records of the Business
substantially in accordance with prior practice, except as changes are mandated
by Governmental Authorities or required by GAAP or to comply with applicable
requirements of Law;

(e)           maintain its corporate existence and the limited liability
company existence of the Company;

(f)            not make any material change in the general lines of
business of the Business;

(g)           not sell, lease, license, mortgage, pledge, encumber or
dispose of, or make any contract for the sale, lease, licensing, mortgage,
pledge, encumbrance or disposition (including by way of any non-cash dividend)
of any asset exclusively used in the conduct of the Business, other than
(i) in the ordinary course of business, (ii)  the disposition of the
securities, property or other assets listed in Section 5.1(g) of the
Seller Disclosure Schedule, (iii) pursuant to any Contracts of Seller or Parent
or any Affiliate of either relating to the Business and in effect on the date
hereof or set forth on Section 5.1(g) of the Seller Disclosure Schedule or
entered into in compliance with this Section 5.1 or (iv) as expressly
contemplated by this Agreement or the Contribution Agreement;

 22
 

(h)           except as required by its terms, not materially amend,
modify or terminate any Material Contract other than in the ordinary course of
business, provided the foregoing shall not prohibit allowing a Material
Contract to lapse at the end of the initial term thereof;

(i)            not
establish, adopt or enter into any ERISA Plan of the Business or the Company or
any plan, agreement, program, policy, trust, fund or other arrangement that
would be an ERISA Plan of the Business or the Company if it were in existence
as of the date of this Agreement;

(j)            except
as otherwise permitted herein or in the Contribution Agreement, not issue
(other than to the Company), sell, redeem or acquire for value any Membership
Interests of the Company;

(k)           not
effect any recapitalization, reclassification or like change in the
capitalization of the Company;

(l)            not
amend the Certificate of Incorporation or other organizational document of
Seller or the Company;

(m)          not
subject any of the properties exclusively used in the conduct of the Business
to any Encumbrance other than any Encumbrance required by the Credit Agreement;

(n)           not
make any new, or change any existing, material Tax elections, in each case,
that would impose a liability on Buyer or the Company after the Closing;

(o)           comply
in all material respects with all Laws and all Orders of any Governmental
Authorities applicable to its assets and the Business;

(p)           not
enter into or guarantee any new or additional Indebtedness other than (i)
Indebtedness incurred in the ordinary course of business or (ii) Indebtedness
that will not be direct or indirect obligations of the Company as of the
Closing Date, including, without limitation, Indebtedness under the Credit
Agreement;

(q)           not
invoice for accounts receivable outside of the ordinary course of business
consistent with past practice, including by accelerating the timing of such
invoice;

(r)            pay
accounts payable in the ordinary course of business consistent with past
practice;

(s)           settle
any material Action relating exclusively to the Business;

(t)            except
(i) in the ordinary course of business or (ii) as may be required pursuant to
any Contract in effect on the date hereof, adopt, enter into, or materially
amend or increase the benefits or obligations under, any Contract or
arrangement with Ron Montgomery with respect to his employment with Seller or
any of its Affiliates; and

 23
 

(u)          
not agree or commit to do any of the foregoing items that are prohibitions.

Nothing contained in this Agreement shall give Buyer,
directly or indirectly, rights to control or direct the operation of the
Business or the Company prior to the Closing. 
Prior to the Closing, Seller shall exercise, consistent with the terms
and conditions of this Agreement and subject to the express limitations of this
Section 5.1, complete control and supervision of the Business.

5.2           Access.  Subject to applicable Laws and except as
reasonably necessary to preserve attorney-client privilege, Seller shall and
shall cause the Company to authorize and permit Buyer and its Representatives
to have reasonable access during normal business hours, upon reasonable notice
and in such manner as will not unreasonably interfere with the conduct of the
Business or the other businesses of Seller or its Affiliates, to (a) Seller’s,
and, after the consummation of the Contribution, the Company’s, properties,
books and records, in each case, relating to the Business and (b) the
management personnel of the Business employed by Seller, in each case as Buyer
may from time to time reasonably request for the purpose of (i) familiarizing
itself with the Business and (ii) obtaining any necessary approvals of, or
Permits for, the transactions contemplated by this Agreement.  All requests for access to such properties,
books and records and other information shall be made to such of Seller’s
representatives as Seller shall designate, who shall be solely responsible for
coordinating and shall coordinate all such requests and all access permitted
hereunder.  Any information provided to
Buyer or its Representatives in accordance with this Section shall be subject
to the terms of the Non-Disclosure Agreement between Buyer or its Affiliates
and Parent (the “Non-Disclosure Agreement”).

5.3           Efforts;
No Inconsistent Action.

(a)           Subject
to the terms and conditions hereof, Buyer and Seller shall cooperate and use
their commercially reasonable efforts to take, or cause to be taken, all
actions and to do, or cause to be done, all things necessary, proper or
advisable to cause the conditions to each other’s obligation to close the
transactions contemplated hereby as set forth in Article VI to be satisfied.

(b)           Hawaii
Regulatory Approvals.  In furtherance
of the foregoing, the Parties and their Affiliates shall use their commercially
reasonable efforts to file as promptly as practicable following the date hereof
and in any event no later than fourteen (14) days following the date hereof an
application requesting the approval of the Commission to consummate the
transactions contemplated by this Agreement and the Ancillary Agreements and to
complete the performance of the obligations of this Agreement including,
without limitation, payment of the Purchase Price.  Such application shall include, without
limitation, requests that the Commission: (i) approve, in contemplation of

 24
 

the Closing, the Contribution and (ii) approve the
proposed purchase and sale of the Membership Interests contemplated hereby
(collectively, the “Hawaii Regulatory
Approvals”).  Each of Buyer,
Seller and the Company shall use commercially reasonable efforts to obtain the
Hawaii Regulatory Approvals and shall cooperate fully with each other and with
the Commission to obtain the Hawaii Regulatory Approvals at the earliest practicable
date.  Notwithstanding the foregoing, in
the event the Commission imposes any unacceptable condition, term or
restriction as more particularly described in Section 6.1(c), each of
Buyer and Seller shall use commercially reasonable efforts to seek modification
or removal of such condition, term or restriction such that the Hawaii
Regulatory Approvals shall conform to the standards set forth in
Section 6.1(c).

(c)           Hart-Scott-Rodino
Act.  In furtherance of the covenant
set forth in Section 5.3(a) above, the Parties shall use their commercially
reasonable efforts to file as promptly as practicable following the date hereof
and in any event no later than ten (10) Business Days following the date hereof
all reports or other documents required or requested by the U.S. Federal Trade
Commission or the U.S. Department of Justice pursuant to the Hart-Scott-Rodino
Act or otherwise including requests for additional information concerning such
transactions.  Buyer and Seller shall
cooperate and use their respective commercially reasonable efforts to obtain
any approvals required for the Closing (including the approval of the U.S.
Federal Trade Commission or the U.S. Department of Justice pursuant to the
Hart-Scott-Rodino Act), to respond to any requests for information from a
Governmental Authority, and to contest and resist any Action and to have
vacated, lifted, reversed or overturned any Order (whether temporary,
preliminary or permanent) that restricts, prevents or prohibits the
consummation of the transactions contemplated by this Agreement or the
Ancillary Agreements.  Buyer agrees to
use commercially reasonable efforts to promptly secure clearance under the
Hart-Scott-Rodino Act with respect to the transactions contemplated hereby,
(i) including divesting or otherwise disposing of assets or businesses of
Buyer and its Affiliates or transferring the same to a trust or similar vehicle
pending disposition or divestiture and (ii) agreeing to such non-material
amendments of this Agreement, in each case as may be requested by the U.S.
Federal Trade Commission or the U.S. Department of Justice pursuant to the
Hart-Scott-Rodino Act (according to the time periods requested by such
Governmental Authorities) in order to facilitate such approval process.  Except for documents filed pursuant to Item
4(c) of the Hart-Scott-Rodino Notification and Report Form or communications
regarding the same or documents or information submitted in response to any
request for additional information or documents pursuant to the Hart-Scott-Rodino
Act that reveal Seller’s or Buyer’s negotiating objectives or strategies or
purchase price expectations, to the extent permitted by applicable Law, Buyer
and Seller shall provide the other the opportunity to make copies of all
material correspondence, filings or communications (or memoranda setting forth
the substance thereof) between such Party or its Representatives, on the one
hand, and U.S. Federal Trade Commission or the U.S. Department of Justice
pursuant to the Hart-Scott-Rodino Act, on the other hand, with respect to this
Agreement or the transactions contemplated by this Agreement.  Buyer and Seller acknowledge that all such
information provided pursuant to the foregoing sentence shall be subject to the
terms of the Non-Disclosure Agreement.   Buyer agrees to pay all application fees
required in connection with any filings under the Hart-Scott-Rodino Act.

 25
 

(d)           Buyer
and Seller shall notify and keep the other advised as to (i) any material
communication from any Governmental Authority, including the Commission,
regarding any of the transactions contemplated hereby and (ii) any Action
pending and known to such Party or, to its knowledge, threatened, which
challenges the transactions contemplated hereby.  Buyer and Seller shall not take any action
inconsistent with their obligations under this Agreement that would materially
hinder or delay the consummation of the transactions contemplated by this
Agreement.

(e)           Prior
to the Closing, the Parties shall use commercially reasonable efforts to obtain
(and cooperate with the other Party hereto in obtaining) all Third Party
Consents that may be necessary to consummate the transactions contemplated
hereby.  Seller and Buyer shall furnish
each other such necessary information and reasonable assistance as the other
may reasonably request in connection with obtaining such Third Party Consents.

(f)            All
documents required to be filed by any of the Parties or any of their Affiliates
with any Governmental Authority in connection with this Agreement or the
transactions contemplated by this Agreement will comply in all material
respects with the provisions of applicable Law.

5.4           Insurance Coverage.  On the Closing Date, all Seller Corporate
Policies that relate exclusively to the Business will be terminated and no Seller
Corporate Policy will be available (except for matters arising from activities
on or prior to the Closing Date) to Buyer or the Company or transferred to
Buyer or the Company at or after the Closing. 
It is understood that Seller shall be free at its discretion at any time
to cancel prospectively or not renew any of the Seller Corporate Policies
relating to the Business as to coverage relating to events subsequent to the
Closing Date or insured risks so long as such cancellation has no effect on
coverage associated with the Business prior to the Closing Date.  Without limiting the rights of Buyer
elsewhere in this Agreement, if any claims by third Persons are made, or losses
occur prior to the Closing Date, that relate to the Business, and claims may be
made against third-Person insurance policies (other than directors’ and
officers’ liability insurance policy that is one of the Seller Corporate
Policies) retained by the Company or its Affiliates after the Closing (and
after the termination of coverage of the Company thereunder in accordance with
this Section 5.4), then Seller shall use its commercially reasonable
efforts to ensure that the Company or its Affiliates can file, notice and
otherwise continue to pursue such claims and recover proceeds under the terms
of such policies and Seller agrees to otherwise cooperate with the Company or
its Affiliates to make the benefits of any third-party insurance policies
available to the Company or its Affiliates, provided, that (i) all of
Sellers’ and their Affiliates’ costs and expenses incurred in connection with
the foregoing are promptly paid by the Company and (ii) such claims will be subject to
(and recovery thereon will be reduced by the amount of) any applicable
deductibles, retentions, self-insurance provisions or any payment or
reimbursement obligations of Seller or any of its Affiliates in respect
thereof.

 26
 

5.5           Supplemental Disclosure.  Seller shall have the right, from time to
time prior to the Closing, to supplement any section of the Seller
Disclosure Schedule with respect to any matter that arises or becomes known by
Seller after the date hereof that would have been required or permitted to
be set forth or described in the Seller Disclosure Schedule had such matter
existed or been known as of the date of this Agreement, (a “Supplemental
Disclosure Matter”). Any such supplemental disclosure will be deemed to
have cured any inaccuracy of any representation or warranty made in this
Agreement for all purposes hereunder (it being understood that the consummation
of the Closing will be deemed to constitute a waiver of any such breach).  Notwithstanding the foregoing, Seller’s right
to supplement the Seller Disclosure Schedule shall not apply to the extent that
the Supplemental Disclosure Matters proposed to be disclosed in such
supplements, in the aggregate, either have or would reasonably be anticipated
to result in Losses to the Company in excess of $500,000.00 unless Seller, in a
written notice to Buyer, grants Buyer the right, within five Business Days of such
notice, to terminate this Agreement pursuant to Section 9.1(a) (and such notice
expressly states that Seller shall mutually agree to so terminate this
Agreement pursuant to Section 9.1(a) if Buyer chooses to do so).  In the event Buyer chooses not to terminate
this Agreement as provided in the proviso of the preceding sentence, such
supplement to the Seller Disclosure Schedule shall be permitted and any such
supplemental disclosure permitted by this Section 5.5 will be deemed to
have cured any inaccuracy of the representation and warranty made in the Seller
Disclosure Schedule for all purposes hereunder.

5.6           Cooperation.  After the Closing Date, upon Seller’s request
(and at Seller’s expense for out-of-pocket expenses incurred by Buyer or the
Company, but without any fees or charges being imposed by Buyer or the Company)
and without necessity of subpoena or any other legal process, Buyer shall cause
the Company and its representatives and counsel to, subject to procedures and
other limitations set forth in Article VII, use commercially reasonable efforts
to cooperate fully with Seller and its representatives and counsel for purposes
of permitting Seller to address and respond to any matters involving Seller
that arise as a result of Seller’s prior ownership of the Membership Interests
or operation of the Business, whether or not related to this Agreement,
including claims made by or against Parent, Seller or the Company and involving
any Governmental Authority or third party. 
Such cooperation shall include (subject to customary obligations of
confidentiality) (a) reasonable access during normal business hours and
upon reasonable notice to, without limitation, Buyer’s and its Affiliates’
officers, directors, employees, auditors, counsel, Representatives, properties,
books, records and operating instructions and procedures and (b) the right to make and retain
copies of all pertinent documents and records relating to any such
matters.  Buyer’s obligations under this
Section 5.6 are in addition to Buyer’s other obligations to cooperate with
Seller contained in this Agreement.

 27
 

5.7           Confidentiality.  If the Closing does not occur and this
Agreement is terminated, the Parties and their respective Affiliates, officers,
directors, employees and Representatives shall comply with the Non-Disclosure
Agreement and such agreement shall remain in full force and effect, the
provisions of which are expressly incorporated herein in their entirety by this
reference.

5.8           Ancillary Agreements.  On the Closing Date, Parent shall cause HT,
and Seller shall cause the Company, to enter into each of the Ancillary
Agreements to be executed at Closing.

5.9           Prior Knowledge.  If Buyer had knowledge prior to the execution
of this Agreement that any representation or warranty of any Seller Execution
Party contained in this Agreement was not true and correct as of the date
hereof, Buyer may not assert such breach of a representation and warranty (a)
as a basis not to consummate the transactions contemplated by this Agreement
and the Ancillary Agreements, or (b) as a basis for an indemnification claim
under Article VII.

5.10         Certain Notices.  Seller shall give notice to Buyer, and Buyer
shall give notice to Seller, of any occurrence or non-occurrence of any fact or
event that would reasonably be expected to cause the failure of Seller or its
Affiliates or Buyer or its Affiliates, as the case may be, to comply with or
satisfy any closing condition pursuant to Article VI.

5.11         No
Negotiation.  Unless and until this
Agreement is terminated, Parent, Seller and the Company shall not, and shall
cause their respective directors, officers, employees, representatives, agents,
advisors, accountants and attorneys not to, initiate or solicit, directly or
indirectly, any inquiries or the making of any proposal with respect to, or
engage in negotiations concerning, or provide any confidential information or
data to any Person with respect to, or have any discussions with any Person
relating to, the Business, the Company or the Company Subsidiaries, and shall
immediately cease and cause to be terminated any existing activities,
discussions or negotiations with any parties conducted heretofore with respect
to any of the foregoing.

ARTICLE VI

CONDITIONS OF PURCHASE

6.1           General Conditions.  The obligations of Buyer and Seller to effect
the Closing shall be subject to the following conditions, unless waived in
writing by each of the Parties:

(a)           No Orders; Actions.  At the Closing Date, (i) no Law or Order
shall have been enacted, entered, issued, promulgated or enforced by any
Governmental Authority that prohibits any of the transactions contemplated
hereby or by the Ancillary Agreements and (ii) no Action shall have been
commenced by any Governmental Authority that seeks to prohibit or enjoin the
transactions contemplated hereby.

 28
 

(b)           Hart-Scott-Rodino
Act.  All required waiting periods
under the Hart-Scott-Rodino Act relating to the transactions contemplated by
this Agreement shall have expired or been earlier terminated.

(c)           Hawaii
Regulatory Approvals.  The Hawaii Regulatory
Approvals shall have been received or obtained; provided that the Hawaii Regulatory Approvals
shall not impose or be conditioned upon Seller’s or any of its Affiliates’
agreement to or compliance with any term, condition or restriction on Seller or
any of its Affiliates or result in the waiver of rights asserted by any of the
foregoing that would reasonably be likely to be materially adverse to Seller or
any of its Affiliates in the reasonable judgment of Seller.

6.2           Conditions Precedent to
Obligations of Buyer.  The
obligations of Buyer to effect the Closing shall be subject to the following
conditions, except to the extent waived in writing by Buyer:

(a)           Representations
and Warranties of Parent, Seller and the Company.  The representations and warranties of Parent,
Seller and the Company contained herein shall be true and correct as of the
Closing Date as though made on the Closing Date (without regard to any
materiality or Material Adverse Effect qualifiers set forth therein), except to
the extent such representations and warranties by their terms speak as of an
earlier date, in which case they shall be true and correct as of such earlier
date (without regard to any materiality or Material Adverse Effect qualifiers
set forth therein), except in each case to the extent that the failure of such
representations and warranties to be true and correct, individually or in the
aggregate, has not had and would not reasonably be expected to have a Material
Adverse Effect.

(b)           Compliance
with Agreement.  Parent, Seller,
their Affiliates and the Company shall have performed and complied in all
material respects (or shall have cured any material nonperformance or
noncompliance) with all covenants, agreements and conditions required by this
Agreement to be performed or complied with by Seller, Parent, their Affiliates
and the Company prior to or at the Closing.

(c)           Closing
Certificate.  Buyer shall have
received a certificate from an authorized officer of Seller, dated the Closing
Date, certifying that the conditions specified in Sections 6.2(a) and 6.2(b)
above have been fulfilled.

(d)           Other
Agreements.  The applicable Seller Execution
Party shall have tendered an executed version of each of the Ancillary
Agreements, in the forms attached hereto.

 29
 

(e)           Contribution.  The Contribution shall have been effectuated not
later than the Closing Date in accordance with the Contribution Agreement.

(f)            Deliverables.  Buyer shall have received: (i) a
certificate executed by the Secretary of the Company, certifying as of the Closing
a true and correct copy of the organizational documents and all amendments
thereto, of the Company; (ii)  evidence reasonably satisfactory to
Buyer that Seller has obtained resignations or terminations provided for by
Section 5.11; and (iii)  the Ancillary Agreements to be delivered to
Buyer pursuant to the terms of this Agreement.

6.3           Conditions Precedent to
Obligations of Parent and Seller. 
The obligations of Parent and Seller to effect the Closing shall be
subject to the following conditions, except to the extent waived in writing by
Seller:

(a)           Representations
and Warranties of Buyer.  The
representations and warranties of Buyer contained herein shall be true and
correct as of the Closing Date as though made on the Closing Date (without
regard to any materiality qualifiers set forth therein), except to the extent
such representations and warranties by their terms speak as of an earlier date,
in which case they shall be true and correct as of such earlier date (without
regard to any materiality qualifiers set forth therein), except to the extent
that the failure of such representations and warranties to be true and correct,
individually or in the aggregate, has not had and would not reasonably be
expected to have a material adverse effect on Buyer’s ability to perform this
Agreement.

(b)           Compliance
with Agreement.  Buyer shall have
performed and complied in all material respects (or shall have cured any
material nonperformance or noncompliance) with all covenants, agreements and
conditions required by this Agreement to be performed or complied with by Buyer
prior to or at the Closing.

(c)           Closing
Certificate.  Seller shall have received a certificate from
an authorized officer of Buyer, dated the Closing Date, certifying that the
conditions specified in Sections 6.3(a) and 6.3(b) above have been fulfilled.

(d)           Consent
Under the Credit Agreement.  The
lenders and agents under the Credit Agreement shall have consented to the
consummation of the transactions contemplated by this Agreement and the
Contribution Agreement.

(e)           Closing
Date Payment.  Buyer shall have
tendered to Seller the Purchase Price in the manner specified in
Section 2.2.

(f)            Other
Agreements.  Buyer or any of its Affiliates
shall have tendered an executed version of each of the Ancillary Agreements to
which it is a party.

 30
 

ARTICLE VII

INDEMNIFICATION

7.1           Survival Period.

(a)           All
representations and warranties made by the Parties in this Agreement shall
survive the Closing and expire on the eighteen (18) month anniversary of the
Closing Date, except that the representations and warranties in Section 3.3
shall remain in full force and effect indefinitely.

(b)           The
covenants and agreements of the Parties to be performed prior to the Closing
shall terminate on the Closing Date (unless otherwise specified therein).

7.2           Period for Claims.  The indemnification contained in this Article
VII shall survive the Closing and shall remain in effect with respect to any
claim related to the breach of any representation, warranty or covenant, until
the expiration of the applicable survival period set forth in
Section 7.1.  Unless a claim for
indemnification with respect to any alleged breach of any representation,
warranty or covenant is asserted by notice given as herein, provided that such
notice specifically identifies in reasonable detail a particular breach and the
underlying facts relating thereto, to the extent practicable, which notice is
given within the applicable period of survival for such representation,
warranty or covenant, such claim may not be pursued and is irrevocably waived
after such time. Without limiting the generality or effect of the foregoing, no
claim for indemnification with respect to any representation, warranty or
covenant will be deemed to have been properly made, except to the extent the
Indemnitee provides notice to the Indemnitor prior to the expiration of the
survival period for such representation, warranty or covenant indicating that
(i) Losses have actually been incurred by the Indemnitee in respect of the
indemnifiable matter and (ii) setting forth in reasonable detail, to the
extent practicable, the basis for reasonably believing that additional Losses
may be incurred in connection with such indemnifiable matter (and in such
event, any such additional Losses may be claimed by Indemnitee even if not
actually incurred until after the expiration of the survival period).

7.3           Indemnification Obligation
of Seller.  From and after the
Closing, and subject to the other provisions of this Article VII, Seller shall
indemnify, defend and hold harmless Buyer, the Company and their Affiliates and
their respective directors, officers, agents and employees (each, a “Buyer Indemnitee” and
collectively, the “Buyer Indemnitees”)
from and against all Losses incurred or suffered by any Buyer Indemnitee
relating to, resulting from or arising out of:

(a)           any
inaccuracy, as of the date hereof or as of the Closing Date, in any of the
representations and warranties made by any Seller Execution Party in this
Agreement (except to the extent such representations and warranties by their
terms speak as of a specified date, in which case this Section 7.3(a) shall be
limited to any inaccuracy as of such date);

 31
 

(b)           any
failure to perform in any material respect any covenant or agreement of any
Seller Execution Party contained in this Agreement; or

(c)           assets
and liabilities of the Seller not transferred pursuant to the Contribution
Agreement.

7.4           Indemnification Obligation
of Buyer and the Company.  From and
after the Closing and subject to the other provisions of this Article VII,
Buyer and the Company shall, jointly and severally, indemnify, defend and hold
harmless Seller, Parent and their Affiliates and their respective directors,
officers, agents and employees (each, a “Seller Indemnitee” and collectively, the “Seller Indemnitees”) from and
against all Losses incurred or suffered by any Seller Indemnitee relating to,
resulting from or arising out of:

(a)           any
inaccuracy, as of the date hereof or as of the Closing Date, in any of the
representations and warranties made by Buyer in this Agreement (except to the
extent such representations and warranties by their terms speak as of a
specified date, in which case this Section 7.4(a) shall be limited to any
inaccuracy as of such date);

(b)           any
failure to perform in any material respect any covenant or agreement of Buyer
contained in this Agreement; or

(c)           any
claim arising on or after the Closing Date relating to the conduct of the
Business or any action of the Company on or after the Closing Date.

7.5           Definitions
for Purposes of this Article.

(a)           “Indemnification
Payment” means any amount of Losses required to be paid pursuant to this
Agreement;

(b)           “Indemnitee”
means any Person entitled to indemnification under this Agreement, either a
Seller Indemnitee or a Buyer Indemnitee as the case may be;

(c)           “Indemnitor”
means any person or entity required to provide indemnification under this
Agreement; and

(d)           “Losses”
means any losses, liabilities, damages, deficiencies, costs and expenses
(including reasonable out-of-pocket attorneys’ and consultants’ fees and
expenses and including the reasonable costs and expenses of investigating and
defending any indemnification claim), excluding any such losses, liabilities,
damages, costs and expenses to the extent that the underlying liability or
obligation is the result of any action taken or omitted to be taken by any
Indemnitee.

 32
 

7.6           Limitation on Claims for
Indemnifiable Losses. 
Notwithstanding anything to the contrary contained herein:

(a)           Seller
shall not be liable for any Losses with respect to any claims by a Buyer
Indemnitee under Section 7.3(a) unless and until the total of all such
claims for indemnity or damages with respect thereto exceeds 0.5% of the
Purchase Price (the “Seller Threshold”), and then Seller shall be liable for all
such claims in excess of the Seller Threshold. 
The aggregate liability of Seller for indemnifiable Losses with respect
to any claims under Section 7.3(a) hereof shall not exceed the amount
which is 10% of the Purchase Price (the “Seller Indemnification Limit”).

(b)           No
Indemnitor shall be liable to or obligated to indemnify any Indemnitee
hereunder for any consequential, indirect, incidental, special, multiple,
punitive or exemplary damages including, but not limited to, damages arising
from loss or interruption of business, revenues, profits, business
opportunities or goodwill, or any cost or expense related thereto, except to
the extent such damages are payable to or have been recovered by a third person
and are the subject of a Third Party Claim for which indemnification is
available under the express terms of this Article VII.

(c)           Seller
and Buyer shall cooperate with each other with respect to resolving any claim
or liability with respect to which one Party is obligated to indemnify the
other Party (or its Affiliates) hereunder, including by making commercially
reasonable efforts to mitigate the Losses and resolve any such claim or
liability prior to initiating litigation.

(d)           Notwithstanding
anything to the contrary contained herein, no Party shall, after the date on
which the Final Working Capital is determined pursuant to Section 2.3,
make any claim for indemnification with respect to the breach of any
representation or warranty of Seller if the facts underlying such claim were
fully and completely accounted for in the Final Working Capital.

7.7           Defense
of Claims.

(a)           Third
Party Claims.  Subject to Section 7.7(b), if any
Indemnitee receives notice of the assertion of any claim or of the commencement
of any action or proceeding by any entity that is not either a Buyer Indemnitee
or a Seller Indemnitee (each, a “Third
Party Claim”) against such Indemnitee, with respect to which an
Indemnitor is obligated to provide indemnification under this Agreement, the
Indemnitee will give such Indemnitor prompt written notice thereof, but in any
event not later than ten (10) calendar days after receipt of notice of such
Third Party Claim, provided, however, that the failure of an Indemnitee to
notify the Indemnitor within the time period set forth herein shall only
relieve the Indemnitor from its obligation to indemnify to the extent that the
Indemnitor is materially prejudiced by such failure or delay (whether as a
result of the forfeiture of substantive rights or defenses or otherwise).  The Indemnitor shall be entitled, upon
written notice to the Indemnitee, to assume the investigation and defense
thereof.  Whether or not

 33
 

the Indemnitor elects to assume the investigation and defense of any
Third Party Claim, the Indemnitee shall have the right to employ separate
counsel and to participate in the investigation and defense thereof at its own
expense. Without the prior written consent of an Indemnitee, which shall not be
unreasonably conditioned, withheld or delayed, the Indemnitor will not enter
into any settlement of or consent to the entry of judgment in connection with
any Third Party Claim that (i) does not contain, as an unconditional term
thereof, the release of the Indemnitee from all liability in respect of such
Third Party Claim or such Third Party Claim is not dismissed against the
Indemnitee with prejudice and without the imposition of any financial or other
obligation on the Indemnitee or (ii) admits the liability or fault of the
Indemnitee (the “Settlement Requirements”).  If a settlement offer solely for money
damages (and otherwise satisfying the Settlement Requirements) is made to
resolve a Third Party Claim and the Indemnitor notifies the Indemnitee in
writing of the Indemnitor’s willingness to accept the settlement offer and pay
the amount called for by such offer without reservation of any rights or
defenses against the Indemnitee, the Indemnitee may continue to contest such
claim, free of any participation by the Indemnitor, and the amount of any
ultimate liability with respect to such Third Party Claim that the Indemnitor
has an obligation to pay hereunder shall be limited to the lesser of
(x) the amount of the settlement offer that the Indemnitee declined to
accept plus the difference, if any, between (1) such settlement amount and (2)
the aggregate amount of the Losses of the Indemnitee relating to such Third
Party Claim through the date of its rejection of the settlement offer or
(y) the aggregate Losses of the Indemnitee with respect to such
claim.  The Party controlling any defense
shall keep the other Party advised of the status of such action, suit,
proceeding or claim and the defense thereof and shall consider in good faith
all reasonable recommendations made by the other Party with respect thereto.

(b)           Direct
Claims.
Any claim by an Indemnitee for Losses that do not result from a Third Party
Claim (each, a “Direct Claim”)
shall be asserted by giving the Indemnitor prompt written notice thereof, but
in any event not later than thirty (30) calendar days after the incurrence
thereof or such Indemnitee’s knowledge of such event (whichever is later),
provided, however, that the failure of an Indemnitee to notify the Indemnitor
within the time period set forth herein shall only relieve the Indemnitor from
its obligation to indemnify to the extent that the Indemnitor is materially
prejudiced by such failure or delay (whether as a result of the forfeiture of
substantive rights or defenses or otherwise), and the Indemnitor will have a
period of thirty (30) calendar days within which to respond in writing to such
Direct Claim.  If the Indemnitor does not
so respond within such thirty (30) calendar day period, the Indemnitor will be
deemed to have accepted such claim.  If
the Indemnitor rejects such claim, the Indemnitee will be free to pursue such
remedies as may be available to the Indemnitee on the terms and subject to the
provisions of this Article VII.

7.8           Subrogation.  If after the making of any Indemnification
Payment, the amount of the Losses to which such payment relates is reduced by
recovery, settlement or otherwise under any insurance coverage, or pursuant to
any claim, recovery, settlement or

 34
 

payment by or
against any other Person, the amount of such reduction as and when actually
received by the Indemnitee will promptly be repaid by the Indemnitee to the
Indemnitor.  Upon making any
Indemnification Payment, the Indemnitor will, to the extent of such
Indemnification Payment, be subrogated to all rights of the Indemnitee against
any third party that is not an Affiliate of the Indemnitee in respect of the
Losses to which the Indemnification Payment relates.  Without limiting the generality or effect of
any other provision of this Article VII, each such Indemnitee and Indemnitor
will duly execute upon request all instruments reasonably necessary to evidence
and perfect the above-described subrogation and subordination rights.

7.9           Remedies Exclusive.  Following the Closing, the sole and exclusive
remedy at law for Seller or Buyer for any claim (whether such claim is framed
in tort, contract or otherwise), arising out of a breach of any representation,
warranty, covenant or other agreement in this Agreement other than a claim for
fraud, shall be a claim by Seller or Buyer for indemnification pursuant to this
Article VII and with respect to matters relating to Taxes, Article VIII.

7.10         Mitigation.  The Parties shall cooperate with each other
with respect to resolving any claim or liability with respect to which one
Party is obligated to indemnify the other Party hereunder, including by making
commercially reasonable efforts to mitigate or resolve any such claim or
liability.  Each Party shall use
commercially reasonable efforts to address any claims or liabilities that may
provide a basis for indemnification pursuant to this Article VII such that each
Party shall respond to any claims or liabilities in the same manner it would
respond to such claims or liabilities in the absence of the indemnification
provisions of this Article VII.  In the
event that any Party shall willfully fail to make such commercially reasonable
efforts to mitigate or resolve any claim or liability, then notwithstanding
anything else to the contrary contained herein, the other Party shall not be
required to indemnify any Person for any Loss that could reasonably be expected
to have been avoided if such Party, as the case may be, had made such efforts.

7.11         Tax Treatment.  Unless otherwise required by Law, the Parties
agree to treat any indemnification paid pursuant to this Article VII or Article
VIII as an adjustment to the Purchase Price for United States federal and
applicable state income Tax purposes.

ARTICLE VIII

TAX MATTERS

8.1           Certain Taxes and Fees.

(a)           Buyer shall bear and be
responsible for all excise, transfer, documentary, sales, use, stamp
registration and other such taxes, and all conveyance fees, recording charges
and other fees and charges (including any penalties and interest) incurred in
connection with the consummation of the transactions contemplated hereby or in
the

 35

Ancillary Agreements regardless of whether a Governmental Authority
would (or does) seek to collect such Taxes from Seller, the Parent or their
Affiliates or Buyer or its Affiliates (“Transaction Taxes”).  Buyer shall also be responsible for
(i) administering the payment of such Transaction Taxes, to the extent
permitted by Law, (ii) defending or pursuing any proceedings related
thereto and (iii) paying any expenses related thereto.  If Seller is required by Law to administer
the payment of any such Transaction Tax, Seller shall consult with Buyer with
respect to the preparation and filing of the relevant Tax Return(s) and Buyer
shall pay the amount of such Transaction Tax to Seller at least ten (10) days
prior to the due date for the Transaction Tax Return.

(b)           If Seller is required
by Law to administer the payment of any such Transaction Tax, Seller shall
consult with Buyer with respect to the preparation and filing of the relevant
Tax Return(s) and Buyer shall pay the amount of such Transaction Tax to Seller
at least ten (10) days prior to the due date for the Transaction Tax Return.

(c)           Notwithstanding
anything in this document to the contrary, Seller shall bear and be responsible
for all Transaction Taxes incurred in connection with the Contribution and shall
also be responsible for (i) administering the payment of such Transaction
Taxes, to the extent permitted by Law, (ii) defending or pursuing any
proceedings related thereto and (iii) paying any expenses related thereto.

8.2           Allocation of Purchase
Price.

(a)           The Parties to this
Agreement agree that the Purchase Price and the liabilities contributed to the
Company will be allocated to the assets of the Company for all purposes
(including Tax purposes) in a manner consistent with Code Section 1060 and the Treasury
Regulations thereunder.  Within 60 days
after the Closing Date, Seller shall provide to Buyer a draft allocation of the
balance of the Purchase Price (and the aforementioned liabilities) among the
assets of the Company (“Purchase
Price Allocation”).  Buyer
shall propose to Seller any changes in the draft Purchase Price Allocation
within 30 days of the receipt thereof. 
In the event that no changes are proposed in writing to Seller within
such time, Buyer shall be deemed to have agreed to the Purchase Price
Allocation.

(b)           If any changes are
proposed, Seller and Buyer shall negotiate in good faith and shall use
reasonable efforts to agree upon a final Purchase Price Allocation.

8.3           FIRPTA Certificate.  Seller shall furnish to Buyer an affidavit,
stating under penalty of perjury, that the indicated number is the transferor’s
United States taxpayer identification number and that the transferor is not a
foreign person, within the meaning of section 1445 of the Code.

 36
 

ARTICLE IX

TERMINATION

9.1           Termination of Agreement.  Anything herein or elsewhere notwithstanding,
this Agreement and the Contribution Agreement may be terminated at any time
prior to the Closing Date only as follows:

(a)           Mutual
Consent.  By mutual consent in
writing of Buyer and Seller.

(b)           Closing
Not Consummated by Earlier Date.  By
Seller or Buyer at any time after the date occurring nine months from the date
hereof, if the Closing shall not have occurred by such date (the “Termination
Date”), unless extended by mutual consent in writing of Buyer and Seller; provided
that in the event the condition provided in Section 6.1(c) is the sole
condition (other than any condition that by its nature is due or capable of
being satisfied only at Closing) that remains unsatisfied as of the Termination
Date, either Buyer or Seller shall be entitled (but not required) unilaterally
to extend the Termination Date for a period not to exceed 90 days.

(c)           Conditions
to Buyer’s Performance Not Met.  By
Buyer upon written notice to Seller if any event occurs or condition exists
which would render impossible the satisfaction of one or more conditions to the
obligations of Buyer to consummate the Closing contemplated by this Agreement
as set forth in Article VI.

(d)           Conditions
to Seller’s Performance Not Met.  By Seller
upon written notice to Buyer if any event occurs or condition exists which
would render impossible the satisfaction of one or more conditions to the
obligation of Seller to consummate the Closing contemplated by this Agreement
as set forth in Article VI.

9.2           Good Faith Performance.  Neither Party shall be entitled to exercise
any right of termination pursuant to Section 9.1 above if such Party shall
not have performed diligently and in good faith the obligations required to be
performed by such Party hereunder prior to the date of termination.

9.3           Effect of Termination.  In the event that this Agreement and the
Contribution Agreement shall be terminated pursuant to Section 9.1, all
obligations of the Parties under this Agreement and the Contribution Agreement
shall terminate without further liability of any Party to another; provided
that (a) the obligations of the Parties contained in this Section 9.3 and
Sections 10.2 and 10.3, (b) all provisions of this Agreement necessary for
the interpretation and enforcement thereof and (c) the Non-Disclosure Agreement
shall in each case survive any such termination.  A termination under Section 9.1 shall not
relieve any Party of any liability for fraud or a willful breach of any
covenant or agreement under this Agreement or be deemed to constitute a waiver
of any available remedy (including specific performance if available) for any
such breach.  If

 37
 

this Agreement
is terminated for any reason, no representative of Buyer will directly or
indirectly attempt to influence any employee of Seller or any agent of the Business to seek
employment with Buyer or any of its Affiliates for a period of one year after
this Agreement is terminated other than general solicitations not specifically
targeting employees of Seller, the Company or any agent of the Business.

9.4           Compliance with
Non-Disclosure Agreement.  Upon any
termination of the Agreement, each of the Parties shall promptly comply with
the obligations of the Non-Disclosure Agreement regarding return or destruction
of Confidential Information of the other Party.

ARTICLE X

MISCELLANEOUS

10.1         Notices.  All notices
and other communications required or permitted hereunder shall be in writing
and, unless otherwise provided in this Agreement, will be deemed to have been
given when delivered in person or dispatched by electronic facsimile transfer
(confirmed in writing by certified mail, concurrently dispatched) or one
Business Day after having been dispatched for next-day delivery by a nationally
recognized overnight courier service to the appropriate Party at the address
specified below:

(a)           If
to Buyer, to:

CBD Investor,
Inc.

188 Inverness
Drive West

Suite 800

Englewood, CO
80112

Facsimile No.: 
(303) 867-1604

Attention:  John S. Fischer, General Counsel

Email: 
john.fischer@localinsightmedia.com

 38
 

And with a copy (which shall not constitute notice) to:

Hogan &
Hartson LLP

One Tabor
Center

1200
Seventeenth Street, Suite 1500

Denver,
Colorado  80202

Facsimile No.: 
(303) 899-7333

Attention: 
Paul Hilton

Email:  philton@hhlaw.com

(b)           If
to Seller and Parent, to:

Hawaiian Telcom
Communications, Inc.

1177 Bishop Street

Honolulu, Hawaii 96813

Attention:  General Counsel

Facsimile No.:  (808) 546-8956

And

The Carlyle Group

520 Madison Avenue, 42nd
Floor

New York, New York 10022

Facsimile No.:  (212) 381-4901

Attention:  Matthew P. Boyer

Email:  Matthew.Boyer@carlyle.com

And with a copy
(which shall not constitute notice) to:

Latham &
Watkins LLP

885 Third
Avenue

Suite 1000

New York, NY
10022

Facsimile No.:
(212) 754-4864

Attention:  R. Ronald Hopkinson

Email: 
ron.hopkinson@lw.com

or to such other address or addresses as such Party
may from time to time designate by like notice.

10.2         Information Releases.  The Parties shall consult with each other
(and allow the other Party notice, and a reasonable time to comment) in
preparing any employee announcement, press release, public announcement, news
media response or other form of release of information concerning this
Agreement or the transactions contemplated hereby

 39
 

that is
intended to provide such information to the employees generally, news media or
the public.  Neither Party shall issue or
cause the publication of any press release, public announcement or media
response without the prior written consent of the other Party; provided, however,
that, after allowing the other Party notice and a reasonable time to comment
prior to issuance, nothing herein will prohibit either Party from making an
employee announcement, or issuing or causing publication of any press release,
public announcement or media response to the extent that such action is
required by applicable Law.

10.3         Expenses.  Whether or not the transactions contemplated
hereby are consummated, and except as otherwise expressly provided herein, each
Party shall pay any expenses (including attorneys’ fees) incurred by it
incidental to this Agreement and the Ancillary Agreements and in consummating
the transactions provided for herein and therein.

10.4         Successors and Assigns.  This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by and against the Parties and their
respective successors and permitted assigns, but is not assignable or delegable
by any Party without the prior written consent of the other Party, which may be
withheld in its sole discretion and any attempt to assign this Agreement
without such consent shall be null and void and of no effect, provided, that
(i) Seller may assign its right to receive the Purchase Price to an
Affiliate of Seller without the consent of Buyer and (ii) Buyer may, without
the consent of Seller (A) collaterally assign, in whole or in part, any of its
rights hereunder as security to one or more lenders and (B) assign its rights
and obligations hereunder in whole or in part to a wholly-owned subsidiary of
Buyer which shall assume Buyer’s obligations and liabilities hereunder.  Assignment by any Party in accordance with
the terms of this Section 10.4 shall not relieve such assignor of any
liability or other obligation under this Agreement.

10.5         Amendments.  This Agreement may be amended, modified or
waived only by a subsequent writing signed by authorized representatives of all
Parties.

10.6         Captions.  The captions set forth in this Agreement are
for convenience only and shall not be considered as part of this Agreement, nor
as in any way limiting or amplifying the terms and provisions hereof.

10.7         Entire Agreement.  Other than the Non-Disclosure Agreement, this
Agreement (including the Schedules and Exhibits referred to in or delivered
under this Agreement) and the Ancillary Agreements (including the Schedules,
Exhibits and Annexes referred to in or delivered under any Ancillary Agreement)
supersedes and revokes any prior discussions and representations, other
agreements, commitments, arrangements or understandings of any sort whatsoever,
whether written or oral, that may have been made or entered into by the Parties
relating to the matters contemplated hereby. 
This Agreement (including the Schedules and Exhibits referred to in or
delivered under this Agreement), the

 40
 

Non Disclosure
Agreement and the Ancillary Agreements (including the Schedules, Exhibits and
Annexes referred to in or delivered under any Ancillary Agreement) constitute
the entire agreement by and among the Parties with respect to the subject
matter hereof, and there are no representations, warranties, agreements,
commitments, arrangements or
understandings except as expressly set forth herein or therein.

10.8         Waiver.  Except as otherwise expressly provided in
this Agreement, neither the failure nor any delay on the part of any Party to
exercise any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise or waiver of any such right,
power or privilege preclude any other or further exercise thereof, or the exercise
of any other right, power or privilege available to each Party at law or in
equity.

10.9         Third Parties.  Except as expressly provided herein, nothing
contained in this Agreement is intended to confer upon any Person, other than
the Parties hereto and their successors and permitted assigns, any rights or
remedies under or by reason of this Agreement and no Person other than the
Parties, their successors and permitted assigns, is entitled to rely on any
representation, warranty, agreement or covenant contained herein.

10.10       Counterparts.  This Agreement may be executed in one or more
counterparts, each of which when executed and delivered shall be deemed to be
an original and any or all of which shall constitute one and the same
instrument.

10.11       Governing Law.  This Agreement and the Contribution Agreement
shall be governed by and construed in accordance with the Laws of the State of
New York (except that no effect shall be given to any conflicts of law
principles of the State of New York that would require the application of the
Laws of any other jurisdiction). The Parties irrevocably submit to the
exclusive jurisdiction of any New York State Court or any Federal Court located
in the borough of Manhattan in the City of New York for purposes of any suit, action
or other proceeding arising out of this Agreement, the Contribution Agreement
or any transaction contemplated hereby or thereby.  The Parties agree that service of process,
summons or notice or document by U.S. registered mail to such Party’s respective
address set forth in Section 10.1 shall be effective service of process
for any action, suit or proceeding in New York with respect to any matters to
which it has submitted to jurisdiction as set forth above in the immediately
preceding sentence.  THE PARTIES
HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT, THE ANCILLARY AGREEMENTS OR ANY OTHER
AGREEMENT ENTERED INTO IN CONNECTION HEREWITH AND FOR ANY COUNTERCLAIM WITH
RESPECT HERETO.  In the event
of any breach of the provisions of this Agreement, the Contribution Agreement
or any other agreement entered into in connection therewith, the non-breaching
Party shall be entitled to equitable relief, including in the form of
injunctions and orders for specific performance, where the applicable legal
standards for such relief in such courts are met, in addition to all other
remedies available to the non-breaching Party with respect thereto at law or in
equity.

 41
 

10.12       Further Assurances.  Each Party shall use its commercially
reasonable efforts to cause all conditions to its and the other Party’s
obligations hereunder to be timely satisfied and to perform and fulfill all
obligations on its part to be performed and fulfilled under this Agreement and
the Ancillary Agreements, to the end that the transactions contemplated hereby
and thereby shall be effected substantially in accordance with their terms as
soon as reasonably practicable.  Without
limiting the generality of the foregoing, (a) the Parties shall use
commercially reasonable efforts to cooperate with each other in such actions
and in securing any requisite approvals under the Hart-Scott-Rodino Act and the
Hawaii Regulatory Approvals and any requisite Permits and (b) each Party shall
use commercially reasonable efforts to execute and deliver, both before and
after the Closing, such further certificates, agreements and other documents
and take such other actions as the other party may reasonably request to
consummate or implement the transactions contemplated by this Agreement and the
Ancillary Agreements or to evidence such events or matters; provided, that such
additional documents and instruments shall not (i) provide for additional
representations or warranties by any Person, (ii) impose additional obligations or liabilities upon the other
Party or (iii) be inconsistent with the express terms of this Agreement.

10.13       Severability.  If any provision of this Agreement is
determined to be invalid, illegal or unenforceable by any Governmental
Authority for any reason, the remaining provisions of this Agreement to the
extent permitted by Law shall remain in full force and effect provided that the
essential terms and conditions of this Agreement for both Parties remain valid,
binding and enforceable and provided that the essential terms and conditions of
this Agreement for both Parties remain valid, binding and enforceable and
provided that the economic and legal substance of the transactions contemplated
is not affected in any manner materially adverse to any Party.  In the event of any such determination, the
Parties agree to negotiate in good faith to modify this Agreement to fulfill as
closely as possible the original intents and purposes hereof.  To the extent permitted by Law, the Parties
hereby to the same extent waive any provision of Law that renders any provision
hereof prohibited or unenforceable in any respect.

10.14       Schedules; Exhibits.  The Seller Disclosure Schedule and each
Exhibit delivered pursuant to the terms of this Agreement shall be in writing
and shall qualify this Agreement, although schedules shall not be attached to
each copy of this Agreement.  The mere
inclusion of an item or information in the Seller Disclosure Schedule as an exception
to a representation or warranty shall not be deemed an admission by Seller that
such item or information represents an exception or material fact, event or
circumstance or an admission of liability to any third Person or that such item
has or would reasonably be expected to have a Material Adverse Effect.  Further, any fact or item which is clearly
disclosed on any schedule or in the Business Audited Financial Statements in
such a way as

 42
 

to make its
relevance or applicability to information called for by another schedule or
other schedules to this Agreement reasonably apparent shall be deemed to be
disclosed on such other schedule or schedules, as the case may be,
notwithstanding the omission of a reference or cross-reference thereto.

10.15       Knowledge Convention.  As used herein, the phrase “Knowledge of
Seller” and similar phrases shall mean all matters actually known, after
due inquiry, to the following individuals: 
Ron Montgomery, Henry Ellis and Francis Mukai.  The phrase “Knowledge of Buyer” and
similar phrases shall mean all matters actually known to Scott Pomeroy, Wayne
Graham and John Fischer.

 43

IN WITNESS WHEREOF, the Parties, acting through their
duly authorized agents, have caused this Agreement to be duly executed and
delivered as of the date first above written.

 

	
  

  	
  HAWAIIAN TELCOM 

  
	
   

  	
  COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Michael S. Ruley

  
	
   

  	
   

  	
   Name: Michael Ruley

  
	
   

  	
   

  	
   Title:  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HAWAIIAN TELCOM SERVICES 

  
	
   

  	
  COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Michael S. Ruley

  
	
   

  	
   

  	
   Name: Michael Ruley

  
	
   

  	
   

  	
   Title:  Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CBD INVESTOR, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ John S. Fischer

  	
   

  	
   

  
	
   

  	
   

  	
   Name: John S. Fischer

  	
   

  	
   

  
	
   

  	
   

  	
   Title: General Counsel

  	
   

  	
   

  

Purchase AgreementExhibit
10.1

	
  Lawson Software Operations AB

  	
  2006-5

  
	
  Member of the Lawson Group

  	
  Reseller Agreement

  

 

This RESELLER AGREEMENT
is made on April 27, 2007 by and between

Lawson International AB,
Swedish Corp. Reg. No. 556387-8148, Vendevägen 89, Box 596, 

S-182 15 Danderyd, Sweden hereinafter referred to as the “Supplier”

and

Symphony Service Corp.
(India) Pvt Ltd, a company incorporated as per the provisions of the Indian
Companies Act, 1956, with its registered office at No. 13, Magrath Road, ‘Embassy
Heights’, Bangalore 560 025, India hereinafter referred to as the “Reseller”.

Recitals

WHEREAS the
Supplier is a member of the Lawson Group;

WHEREAS the Lawson
Group is engaged in the business of creating, developing and/or marketing a standard
software product known as Lawson including software developed by third parties
however delivered by the Supplier) and the documentation and manuals therefore
(the “Software”) and supporting, implementing, developing and enhancing the
Software (“Maintenance”);

WHEREAS, under the terms
of the Business Transfer Agreement dated March 11, 2005, between the Supplier
and Intentia South Asia Pvt. Ltd. [of which the Franchise Agreement dated March
4, 1999, between the Supplier (then under the name of Intentia International AB
and Intentia South Asia Pvt. Ltc. (the “Franchise Agreement”) forms a part],
the Reseller was granted an exclusive right to, market and distribute the
Software in India;

WHEREAS the
Business Transfer Agreement envisaged that the Franchise Agreement be
superseded and replaced by an agreement entered into between the Supplier and
the Reseller. The Parties have now agreed that under this Agreement, this
Reseller Agreement, the Reseller is hereby granted a non-exclusive right to
grant licenses, market, distribute and perform support of the Software (as
defined herein) to existing and future end users within India (the “Territory”),
in accordance with the terms and conditions herein contained.

Now, therefore, it is
agreed by and between the parties hereto as follows:

As of the effective date
above, this Reseller Agreement fully replaces and supersedes, the Franchise
Agreement, mentioned above. The relationship between the parties in relation to
the Lawson Software sales and implementation in the Territory shall hereinafter
be governed solely by this Reseller Agreement.

 1
 

Definitions

1                                          “Customer”
means an existing and future Software end user customer of the Reseller within
the Territory and/or customers head quartered in the Territory with global operations
outside of the Territory.

2                                          “Customer
Agreement” means the agreement between the Reseller and the Customer for
ordering by the Customer of licenses and Maintenance for all or part of the
Licensed Software.

3                                          “Lawson
Certification” means a validation of a person’s Lawson Software implementation
or consulting skills, granted by the Lawson Group upon completion of the
relevant training and/or passing the relevant examination, as determined by the
Lawson Group from time to time.

4                                          “Lawson
Group” means Lawson Software Inc., a company incorporated under the laws of the
state of Delaware, U.S., and its direct and indirect subsidiaries, including
the Supplier;

5                                          “Lawson
Learning” means the service line within the Lawson Group which provides
training related to the Software.

6                                          “Lawson
Software” means the from time to time existing offering of software products
and the documentation and manuals therefore developed, owned and/or licensed by
the Lawson Group.

7                                          “Lawson
Support” means the Lawson support organization through which the Supplier will
provide support services to the Reseller, as described in section 7 below and
in Appendix 5.

8                                          “Licensed
Software” means the scope of Software and Third Party Software, if any, defined
in Appendix 2, as amended from time to time, which is included in the
license granted to the Reseller to grant licenses, market and distribute, as
set out in section 1.1.

9                                           “Maintenance” means the maintenance and
support services (including any upgrades, releases, updates, bug fixes, patches
or workarounds) described in the then-current Support Operations Handbook and
purchased by Customer under an order form or Customer Agreement, excluding any
Limited Offering maintenance or support that is listed in an order form as not
being “Maintenance”.

10                                    “Net
License Revenue” means the license fee less any commission fee payable to any
suppliers of Third Party Software or any applicable taxes.

11                                    “Partner
Alliance Services” means the services made available by the Supplier which the
Reseller upon signing this Agreement is entitled to utilize. Information on the
Partner Alliance Services made available by the Supplier from time to time can
be found at www.lawson.com.

12                                    “Reseller
Support Requirements” means the required support services to be provided by the
Reseller to Customers, and the requirements on the Reseller for use of Lawson
Support, as described in section 7 below and in Appendix 5.

13                                    “Software”
means the Lawson Software and Third Party Software, if any.

14                                    “Source
Code” means the source code for any software in human-readable form.

15                                    “Territory”
means the industry and/or region and/or city within India as specified under
the Recitals. All industries or geographical areas not included within the
Territory are exclusively reserved for Supplier or for other resellers.

16                                    “Third
Party Software” means software program(s) developed, licensed and/or owned by
third parties however delivered by the Lawson Group or by that Third Party, if
any, provided that the Lawson Group has the right to sub-license such third
party software through third party Resellers.

17                                    “Training”
means training based on Lawson Learning’s training courses designed for the
Lawson Group’s customers, partners and employees, as performed by or approved
by Lawson Learning.

 2
 

1.              Grant

1.1.           Subject to the terms and conditions of this
Agreement, the Supplier hereby affirms the continuation of the Reseller as a
distributor of the Licensed Software in the Territory and in connection
therewith grants to the Reseller the non-exclusive,  non-transferable right to grant licenses, market, provide
Maintenance and distribute the Licensed Software, as the Licensed Software may
be amended, revised or changed from time to time, to Customers within the
Territory The Reseller hereby accepts the appointment and license rights.
Supplier reserves all rights not otherwise granted herein.

1.2.           However the Supplier grants the Reseller the
right to appoint its own network of co-marketing partners for increasing its
customer base within the Territory. Reseller will request in writing and
provide to Supplier a copy of each contract prior to entering into a
co-marketing partnership around the Software, including Maintenance and
services. Reseller shall be liable for any and all actions taken by its
co-marketing partners in marketing and promoting the Software and shall require
each co-marketing partner to sign and conform with an agreement that is no less
restrictive than this Reseller Agreement and the Lawson Branding Guidelines as
set forth Lawson partner community.

1.3.           The Reseller agrees not to solicit Customers
outside the Territory without the consent of the Supplier, and the Reseller
shall not establish any branch or maintain any distribution facility in
relation to the Software outside the Territory. The Reseller shall inform the
Supplier in the event of inquiries or orders from Customers outside the
Territory or for shipment outside the Territory. The Supplier agrees that the
existing Customer base of the Reseller and its existing pipeline as listed in Appendix
“7”  will be registered according to its “Lead
Registration Process” as mentioned in Section 11.1 below in the name of the
Reseller registered with Supplier at the time of execution of this Agreement
and will grant the Reseller all rights as per the “Lead Registration Process”

1.4.           The Reseller may market the Software to
multinational Customers whose headquarters are based in the Territory but the
delivery of which, may take place outside the Territory so long as delivery
complies with the applicable export rules and regulations described in Section 11.1
below and is not in conflict with any existing exclusive distribution
agreement. Delivery outside of the Territory may entail additional fees to be
paid for a country version developed by another Lawson partner or as a result
of exclusive rights or other contract terms granting such partner a right to
receive a commission for any sales within its Territory.

1.4.1.       It is the mutual intention of the parties to
create as strong a market position as possible for the Licensed Software in the
Territory. The Reseller shall use its commercially reasonable efforts to
market, license, distribute and support the Licensed Software in the Territory.

1.5.           The Supplier reserves the right to
discontinue developing, producing, licensing, marketing or distributing any of
the Licensed Software and to modify, replace or add to the Licensed Software in
its discretion at any time. Amended
or revised, modified or enhanced versions of the Licensed Software shall
automatically be included in this Agreement but other software which may serve
the same or similar functions as the Licensed Software will be included herein
only upon mutual agreement of the parties. The Supplier is under no obligation
to appoint the Reseller its distributor

 3
 

for any new or additional software and the Reseller is under no
obligation to accept the appointment from the Supplier as the franchisee/
distributor for such new software.

Before the Supplier discontinue(s) developing, producing, licensing or
distributing the Licensed Software or before any new or additional software is
added to this Agreement the Supplier shall have communicated these changes to
the Reseller.

2.              Term

2.1.           This Agreement shall be
effective as of the date first written above and shall continue, unless sooner
terminated as provided in Section 177, for an initial term of two (2) years.
This Agreement shall thereafter be automatically renewed for successive two (2)
year periods, unless either party gives the other party not less than three (3)
months written notice of its intention to terminate the Agreement or the
Agreement is terminated as provided in Section 177.

2.2.           In the event of
termination of this Agreement, and notwithstanding any provisions to the
contrary, the Supplier acknowledges that sales pending before the termination
of the Agreement will be credited to the Reseller.

3.              Technical and
Commercial Information

3.1.           The Supplier shall
furnish the Reseller with one reproducible copy of all written information
which the Supplier deems necessary for the Reseller to use in marketing,
licensing, distributing, implementing and supporting the Software within the
Territory together with an initial supply of promotional material in English
and, subject to availability, a local language of the Territory.

3.2.           Upon the Reseller’s
request and at the Reseller’s expense, the Supplier shall furnish the Reseller
with additional supplies of its promotional material in English and, subject to
availability, a local language of the Territory.

3.3.           On all copies made of
the above information the Reseller shall faithfully reproduce the copyright
legend or, in the absence of the same, insert notice of the Lawson Group’s or
the applicable Third Party’s copyright and confidentiality legend.

4.              Shipment of a
Reseller copy of the Licensed Software

4.1.           The Supplier will
deliver copies of the then current version of the Licensed Software in English
and, subject to availability, a local language of the Territory, on relevant
data media to the Reseller within fourteen (14) days from the date of this
Agreement. The license rights granted herein shall include the right to use the
Licensed Software for demonstrations, testing, provide Maintenance and other
purposes directly connected with this Agreement. This license shall terminate
in accordance with Section 17 hereof.

4.2.           By signing this
Agreement, the Reseller will get access to all reseller connected information
on the Supplier’s partner portal Web site. Information about new versions,
releases and/or service packs will be published through the partner portal Web
site and upon receipt of information of the same; the Reseller is responsible
for ordering such new versions, releases and/or service packs in order to
ensure that Reseller has the most up to date version of the Licensed Software.

 4
 

4.3.           The Reseller agrees and
undertakes not to market, sell, sub-license or distribute any Lawson Software
provided under this Section 4, or any copies thereof, to any Customer or third
party or any copies thereof, to provide or offer any training or other services
for Customers or third parties.

4.4.           Subject to Section 8,
the Reseller shall not modify, copy, amend, reverse engineer, disassemble,
decompile, add to or in any way alter the Software as supplied under this
Agreement,

5.              Customer Agreements

5.1.           The Reseller is
entitled to resell and distribute licenses to the Licensed Software, and
related Maintenance, under the terms of the Supplier’s standard customer
agreement which shall be in the same form as that set forth in Appendix 1.
The Supplier reserves the right to add to, subtract from or otherwise modify
the terms and conditions in the Customer Agreement. The Reseller is hereby
authorized to sign and execute the Customer Agreement with the Customer.

5.2.           The Reseller is not
entitled to license Licensed Software to a Customer without including the
related Maintenance in the Customer Agreement, with the Maintenance period
beginning upon execution of the Software license agreement.

5.3.           Where the Reseller in
accordance with Appendix 2 has the right to sub-license Third Party
Software, such Third Party Software may only be licensed together with the
Software and on the terms and conditions designated by the Lawson Group or by
the supplier of that Third Party Software.

6.              Ordering and
Shipment of Licensed Software to Customers

6.1.           Upon receipt of two (2)
originals of the Customer Agreement, signed by the Customer and Reseller, the
Reseller shall within five (5) working days thereof, send to the Supplier a
copy of such signed Customer Agreement.

6.2.           To fulfill accepted
customer orders, the Supplier will deliver copies of the then current version
of the Licensed Software, as ordered by the Customer, including country
modifications distributed by the Supplier, directly to the Customer within
seven (7) business days from receipt of the copy of the signed Customer
Agreement.

6.3.           All shipments by the
Supplier will be made FOB place of shipment (generally Lawson Group’s premises
in Linköping, Sweden, or St Paul, Minnesota, US, as applicable).

7.              Maintenance

7.1.           The Reseller shall
develop and maintain the infrastructure and trained personnel required to
fulfill the Reseller Support Requirements.

7.2.           The Reseller shall
ensure that the Customer complies with all regulations of Lawson’s Support
Operations Handbook and other requirements necessary to successfully deliver
support, as described in Appendix 5. The Support Operations Handbook shall be
made available by the Supplier as and when there are any changes made, it, so
that the Reseller may comply with the same, by posting the amended handbook on
the Partner Community website.

 5
 

7.3.           The Reseller is
responsible to provide for Tier 2 support (as defined in the Lawson Support
Operations Handbook) to all Reseller Customers for all Lawson Software and any
Third Party products designated as supported by Lawson in the applicable
Product Order Form.

7.4.           The Reseller is
entitled to utilize Lawson Support for Tier 3 support (as defined in the Lawson
Support Operations Handbook). All communication with Lawson Support, whether
oral, electronic, or otherwise, and all accompanying documentation shall be in
English.

7.5.           The complete support
process between the Customer, the Reseller, and Lawson is governed by Lawson’s
Support Operations Handbook and the additional regulations set out in 

Appendix 5.

7.6.           The Reseller shall not
deviate from the above or offer non-standard Maintenance offerings, including
but not limited to multi-year Maintenance agreements without prior written
approval from Supplier. However for all existing Maintenance Agreements that
the Reseller has entered into with its Customers will continue to be honored by
the Supplier so long as each existing Customer continues to be current on
maintenance and Reseller continues to pay Supplier for such maintenance.

7.7.           Notwithstanding
anything to the contrary herein, Reseller may on occasion offer to Customers or
potential Customers a free initial support period (“ISP”). The Reseller will
request Supplier to approve any ISP in writing prior to offering such to the
specific Customer or potential Customer. Supplier reserves the right in its
sole discretion to reject any request from Reseller for an ISP.

8.              Further developments

8.1.           The Reseller shall be
entitled, free of charge, to all new versions and releases of the Lawson
Software made available by the Supplier, upon their official release, and
provided the Reseller is current on any applicable Third Party Product
maintenance fees.

8.2.           Subject to a separate
agreement only, and on the terms and conditions of such separate agreement, the
Reseller will create and apply translation and legal and local market
modification of new versions and releases for the Territory, which shall be
sold to the Reseller’s Customers within the Territory at an additional cost of
license and maintenance to such Customers. This is exclusive of implementation,
training and any customer specific modifications.

8.3.           Upon execution of this
Agreement, Reseller will provide to the Supplier the local and market
modifications and translation of the Software, and any documentation related
thereto. The Reseller modifications and enhancements for the localization of
the Supplier Software shall be provided inclusive of the source code and
considered confidential information under the terms of this Agreement.

8.4.           The Parties agree that
where the Supplier identifies a Customer or potential Customer who desires to
purchase the Software, Supplier may request the Reseller, to sell and ship the
localized version of the Software to the Customer or potential Customer at an
agreed price to be pre-determined in advance at the beginning of every fiscal
year.

 6
 

9.              Lawson Certification

9.1.           The training necessary
to obtain a Lawson Certification for providing consulting and implementation
services will be provided on the general terms and at the subsidized fees
applied by the Lawson Group. Lawson reserves the right to amend such terms and
fees upon provision of sufficient notice in advance of its intention to do so.
The requirements for Lawson Certification are set out in Appendix 3. Any sales
or pre-sales training will be provided through supplier training programs and
additionally made available by Supplier on the Lawson Partner Community.

9.2.           Reseller will, within
six (6) months from the effective date of this Agreement and for the term of
this Agreement, meet the following training requirements:  At a minimum one (1) trained and/or Certified
employee to provide support services for the M3 Software,

i)                 At
a minimum two (2) trained and/or Certified employees to provide implementation
and consulting services in relation to the M3 Software, and

ii)              At
a minimum one (1) trained and/or Certified employee to provide installation
services in relation to the M3 Software,

Nothing stated
herein shall restrict Reseller employees from being trained and certified in
more then one of the areas set forth above. Should Reseller fail to meet the
requirements of this Section 9.2, Reseller shall be in material breach of this
Agreement.

9.3.           The Reseller is only entitled
to provide services for the Lawson Software within the scope of the Lawson
Certification(s) held by its individual employees. The parties shall agree upon
within which fields of competence the Reseller, from time to time, shall be
entitled to certify personnel. Any and all services for the Lawson Software
under this Agreement must be performed exclusively by such employee(s) of the
Reseller, or employee(s) of a Lawson partner, whose employees hold a valid
Lawson Certification to perform such services.

9.4.           Reseller may create
modifications or enhancements to the Lawson Software so long as such
modifications or enhancements are created by a Lawson Certified individual and
are made in accordance with the Supplier’s programming standards for the Lawson
Software, and the Source Code and object code for any such changes to the
Lawson Software shall be stored in the Customer’s environment together with any
related documentation. A copy of the Source Code and object code for such
changes to the Lawson Software shall be kept in safe custody by the Customer
and provided to Supplier.

10.       Payment conditions

10.1.            The
Supplier will, on an annual basis, provide Reseller with the then current price
configurator including the International Base Price (IBP) which will set forth
the Supplier’s list price for licenses and Maintenance. Reseller may not sell
Maintenance for less then the price as set forth in the price configurator
unless otherwise agreed to by the Supplier.

10.2.            The
Supplier reserves the right to revise the price configurator / IBP at any time
by giving thirty (30) days written notice to the Reseller. Such revised prices
shall be effective on the date specified in the notice and shall apply to all
orders received thereafter. All orders received prior to said effective date
shall be shipped at prices in effect at the time of receipt of such order,
provided that the shipment for such is within thirty (30) calendar days from
the date of the signed Customer Agreement.

 7
 

10.3.            The
Reseller will charge the Customer directly for license and maintenance fees and
will effect payment to the Supplier as specified under Appendix 8 relating to
Pricing Terms.

10.3.1      All payments under this
Agreement shall be made to the Supplier in US Dollars (USD), if not otherwise
agreed upon between the parties.

10.3.2.   For invoicing purposes all fees under this Agreement
are to be invoiced by Lawson Software Asia Pacific Pte. Ltd. which company is
authorized by the Supplier to collect payment under this agreement.

11.       Reseller’s obligations

11.1.            The
Reseller shall at all times during the term of this Agreement and, where
applicable, following termination hereof, observe and perform in accordance
with the terms and conditions set out in this Agreement and in particular:

a)              shall
at all times use its reasonable endeavors to promote and extend the market for
the Licensed Software to all potential Customers in the Territory and work
diligently to obtain orders therefore;

b)             shall
regularly approach companies, to which they have already licensed Software, and
to visit or contact them, investigate the possibility of supplying them with a
solution incorporating further Licensed Software products, and to make every
effort to encourage them to implement said solution and to order additional
licenses.

c)              shall,
in all correspondence and other dealings relating directly or indirectly to the
licensing or other transaction relating to the Licensed Software, clearly
indicate that it is acting as an independent distributor of the Licensed
Software and that the Supplier or an affiliate of the Supplier, is the owner of
the Lawson Software;

d)             shall
not incur any liability on behalf of the Supplier or in any way pledge or
purport to pledge the Supplier’s credit or purport to make any contract binding
upon the Supplier;

e)              shall
not alter, obscure, remove, conceal or otherwise interfere with any eye-readable
or machine-readable marking on the Software or its packaging which refers to
the Supplier or any of its affiliates or Third Parties as the owner, author or
developer of the Lawson Software or otherwise refers to the Supplier’s or Third
Party’s copyright or other intellectual property rights in the Lawson Software
or Third Party Software;

f)                shall
permit any duly authorized representative of the Supplier, upon reasonable
prior notice, to enter into any of its premises where any Software or any
materials relating thereto are stored for the purpose of ascertaining that the
Reseller is complying with the provisions of this Agreement;

g)             shall
immediately bring to the attention of the Supplier any improper or wrongful use
of the Software or the Lawson Group trademarks, emblems, designs, models or
other similar industrial, intellectual or commercial property rights which come
to the notice of the Reseller and shall in the performance of its duties under
this Agreement use every effort to safeguard the property rights and interests
of the Lawson Group and shall at the request and cost of the Lawson Group  take all steps required by the Lawson Group
to defend such rights;

h)             shall
promptly bring to the attention of the Supplier any information received by the
Reseller which is likely to be of interest, use or benefit to the Supplier in
relation to the marketing and/or support of the Software;

i)                 shall
every month or upon the Supplier’s request submit to the Supplier a report on
outstanding quotations, orders received and signed agreements.

 8
 

j)                 shall
every three months or upon Suppliers request, prepare and submit to the Supplier,
in a standardized form, reports on its marketing activities such as forecasts
for potential sales, returns and other information relating to the
distributorship and the marketing of the Software;

k)              shall
at the Supplier’s request or no later than thirty (30) days before renewal of
maintenance submit to the Supplier a report on maintenance agreements in force
and their renewal;

l)                 shall
immediately after a Customer Agreement has been signed submit to the Supplier,
in the format requested by the Supplier, a report on such Customer Agreement as
well as copies of the complete license and maintenance agreements;

m)           shall,
in cases where the Customer Agreement signed with a Customer is not in the
English language, provide the Supplier with an English translation as concerns
such parts of the Agreement(s) or the Agreement(s) as such, as the Supplier may
request.

n)             shall
always use the latest version of the Supplier’s standard terms as published by
the Supplier on the partner portal Web site and may furthermore only use the,
for the Territory, published language and local versions of such terms.

o)             shall
deal fairly and openly with potential customers as well as Customers, and shall
maintain a sales-organization, trained with sufficient knowledge of the
Licensed Software to provide competent assistance, advice to Customers in the
selection, use and application of the Software;

p)             shall
not make any representation or give any assurance that exceeds or differs from
the scope of the Supplier’s written limited warranty, disclaimers and
limitations;

q)             shall
comply with the Lawson Group’s policies on IT security and IT infrastructure
applicable to resellers or partners of the Lawson Group, as amended from time
to time;

r)                shall
comply with the Lawson Group’s Code of Conduct, applicable to resellers or
partners of the Lawson Group, as amended from time to time;

s)              shall
not conduct any business in breach of any export restrictions, trade embargoes
or similar applicable to the Lawson Group , or otherwise in breach of the Lawson
Group ‘s Export Control Policy, as amended from time to time.

11.2.            Within
thirty (30) days after the date of this Agreement, the Supplier shall provide
the Reseller instructions for complying with the Supplier lead registration
process for India. After the Reseller receives those instructions, the Reseller
shall comply with such lead registration process for the remaining duration of
this Agreement.

12.       Audit

12.1.            The
Reseller shall maintain a complete audit trail of all Customer Agreements.

12.2.            Supplier
reserves the right to audit, as it deems necessary, Reseller for the accuracy
of commission and invoices along with all product sales and other commitments
made by Reseller in regards to this Agreement. Any invoicing and/or commission
that are incorrect will without delay be corrected by the Supplier.

12.3.            The
Reseller will provide the Supplier with reasonable access to its facilities,
audit reports, financial data repositories, work in progress, documents,
materials and personnel for the purpose of performing the audits described in
this Section 12.3.

The Supplier may use external and/or internal auditors in order to
execute the audit only upon informing the Reseller in advance of its intention
to do so. The Supplier shall ensure that any such

 9
 

external auditors are subject to the same obligation of confidentiality
as the Supplier under this Agreement.

13.       Liability

13.1.            Except
as expressly stated herein, the Supplier makes no warranty or representation of
any type, including without limitation warranties of merchantability or fitness
for a particular purpose or for use under any specific conditions,
notwithstanding any statements made and notwithstanding that such purpose or
conditions may be or may have been known to the Supplier. Except for express
warranties in this Agreement, Reseller makes no further representation or
warranty.

13.2.            Notwithstanding
any provision herein to the contrary, loss or damage recoverable from the
Supplier or the Lawson Group for all causes of action based upon or relating to
this Agreement or its subject matter, whether in contract, tort or otherwise,
shall be limited to the amount of compensation paid by the Reseller to the
Supplier in the twelve (12) months period immediately preceding the assertion
of a claim, whether the same arises from defects in the Software, loss of use
of the Software, incorrect or spoiled data, advice, or otherwise whatsoever.

13.3.            The
Supplier or the Lawson Group shall not be liable for loss of profits, or for
any indirect, consequential or punitive damages, save and except for any claims
made by a third party against the Reseller, which claims relate to infringement
of intellectual property rights and which claim arises from the Lawson
Software, more specifically mentioned in Clause 13.5 below. Damages shall not
include loss of profit or anticipated saving, loss of agreements, loss of
goodwill, consequential loss or indirect loss, whether the same arises from
defects in the Software, loss of use of the Software, incorrect or spoiled
data, advice or otherwise.

13.4.            In
no event shall the Supplier or the Lawson Group assume any liability with
respect to the relations between the Reseller and third parties, including
Customers.

13.5.            Except
for the Reseller’s gross negligence or willful misconduct, Supplier shall
defend, indemnify, and hold harmless Reseller and its respective employees,
officers and/or agents (herein “Indemnified Persons”), from and against any
loss, liabilities, damages, penalties, claims, suits, costs, expenses and
disbursements at law or equity, including reasonable attorney’s fees and costs,
imposed on, incurred by or asserted against the Indemnified Persons arising out
of the ownership, use, licensing, sublicensing, possession, control,
maintenance, operation, and transportation of the Licensed Software, including
but not limited to, claims for patent, trademark, copyright infringement and
claims for property damage, personal injury or wrongful death arising in strict
liability or negligence. All indemnities shall survive the expiration or other
termination of this Agreement and are expressly made for the benefit of, and
shall be enforceable by any or all of the Indemnified Persons

13.6.            Except
for the Supplier’s gross negligence or willful misconduct, the Reseller shall defend,
indemnify, and hold harmless the Supplier, its affiliates and their respective
employees, officers and/or agents (herein “Indemnified Persons”) from and
against any loss, liabilities, damages, penalties, claims, suits, costs,
expenses and disbursements at law or equity, including reasonable attorney’s
fees and costs, imposed on, incurred by or asserted against the Indemnified
Persons arising out of the ownership, use, licensing, sublicensing, possession,
control, maintenance, operation, and transportation of the services or
deliverables as provided by the Reseller, including but not limited to,
claims for patent, trademark, copyright infringement and claims for property

 10
 

damage, personal injury or wrongful death arising in
strict liability or negligence. All indemnities shall survive the expiration or
other termination of this Agreement and are expressly made for the benefit of,
and shall be enforceable by any or all of the Indemnified Persons. The Reseller
shall have no liability under this paragraph if any suit or claim
of infringement is based upon the use of the services or deliverables: (a) in a
modified state not authorized by the Reseller; or (b) in a manner other than
for which it was designed.

14.       Force majeure

14.1.            Neither
party shall be liable by reason of failure in the performance of this Agreement
in accordance with its terms if such failure arises out of causes beyond the reasonable
control and without fault and negligence of such party (“Force Majeure
Circumstances”). Such Force Majeure Circumstances may include but are not
limited to acts of the other party, unavailability of communication facilities,
acts of civil or military authorities, strikes, unavailability of raw
materials, delays in transportation, riots or war.

14.2.            In
the event that Force Majeure Circumstances continue for a period greater than
three months, the non-claiming party shall be entitled to terminate this
Agreement, by giving the claiming party thirty (30) days notice of such
termination in writing. Such termination shall be without prejudice to the
accrued rights and liabilities of the parties at the date of the termination,
excepting for those specific Force majeure events including and not limited to
natural calamities like earthquakes, etc. which renders performance difficult /
impossible or delays  the performance of
the affected party hereunder

15.       Copyrights, Patents,
Trademarks and other Intellectual Property Rights

15.1.            The
Supplier warrants that – to the best of its knowledge Supplier is not aware of
third parties valid industrial property rights or similar protection, which
would be infringed by the use of the Lawson Software.

15.2.            The
Reseller undertakes to market and license the Licensed Software solely under
the trademark(s) designated by the Supplier.

15.3.            The
Reseller acknowledges that any and all of the copyrights, trademarks and other
intellectual property rights used or embodied in or in connection with the
Lawson Software or the Third Party Software including all documentation and
manuals relating thereto is and shall remain the property of the Lawson Group
and the Reseller shall not during or at any time after the expiration or
termination of this Agreement in any way question or dispute the Supplier’s
exclusive ownership of all right, title and interest in and to the Lawson
Software, all related manuals and documentation, and all products or materials
derived there from.

15.4.            The
Reseller acknowledges that all trademarks, copyrights and other intellectual
property rights of the Supplier are used by the Reseller and its Third Parties
with the consent of the Supplier and pursuant to the terms and conditions of
this Agreement. Upon expiration or termination of this Agreement, the Reseller
shall forthwith discontinue all such uses, without receipt of compensation for
such discontinuation, provided however that the Reseller may continue to use
such trademarks with the Supplier’s consent solely for the purpose of
continuing the Software support required to be provided by the Reseller
hereunder for a period of one year following termination of this Agreement.

 11
 

15.5.            The
Reseller shall not during or after the expiration or termination of this
Agreement, without the prior written consent of the Supplier or the applicable
Third Party, use or adopt any name, trade name, trademark, trading style or
commercial designation that includes or is similar to or may be mistaken for
the whole or any part of any trademark, trade name, trading style or commercial
designation used by the Supplier.

15.6.            Quality
standards. With regard to the marketing of the Software, the Supplier shall
have the right to establish, and to require the Reseller’s adherence to
standards regarding nature and quality of any trademark use. The software as it
exists on the effective date meets such standards. The Reseller shall in all
material respects conduct all its business in connection with any trademark or
service mark of the Supplier in accordance with all local laws.

15.7.            Inspection.
From time to time, the Supplier shall have the right to inspect any
customizations, modifications or enhancements to the Software made by the
Reseller to determine whether the same conforms to the quality standards
established by the Supplier.

15.8.            Trademark
use. All use of any trademark or service mark of the Supplier pursuant to
this Agreement shall be in accordance with the Supplier’s reasonable standards
for such use. Each future edition of the Software as marketed (but not the
Software as its exists on the effective date of this Agreement), each item of
the Software promotional or advertising material that bears such a mark and
each item of stationary, and each business card, that bears such a mark shall,
prior to use or distribution and to the extent reasonably practical, be
submitted to the Supplier for its approval of conformity with such standards.

16.       Confidentiality

16.1.            The
parties shall protect the confidentiality of any proprietary information of the
other party disclosed pursuant to this Agreement in the same manner as it
protects its own proprietary information and shall take the appropriate
measures to ensure that such confidentiality is preserved. Confidential
Information shall be used only for the purposes of this Agreement.

16.2.            The
Reseller shall return all proprietary information of the Supplier or its Third
Parties upon the earlier of a request by the Supplier or upon expiration or
termination of this Agreement. Neither party shall reproduce, disclose or use
the proprietary information of the other without written authorization of the
other except in performing its obligations under this Agreement or as required
by law.

16.3.            The
Reseller has in particular been informed about and is aware of that, according
to Lawson Software Inc.’s listing at the NASDAQ stock market and the Stockholm
Stock Exchange, information which might influence the evaluation of the
publicly listed shares may not be divulged to the general public by other means
than through public statements made by Lawson Software Inc. Use of such
information in violation with these rules may a criminal offence according to
Swedish and/or U.S. law.

16.4.            The
provisions of this Section 16 shall survive termination of this Agreement.

17.       Termination and Expiration

17.1.            This
Agreement may be terminated forthwith by either party by notice in writing from
the party not at fault if any of the following events shall occur:

 12
 

a)              if
there shall be an assignment for the benefit of creditors of the other party,
or any insolvency, bankruptcy or receivership proceeding on the part of the other
party, or it shall be unable to pay its debts, or shall cease to carry on
business;

b)             if
the other party shall be in material breach under this Agreement and shall fail
to remedy such breach within thirty (30) days from receipt of notice in writing
from the non-defaulting party specifying such default;

c)              if
either party is for any reason (other than one directly attributable to the
other party), whether due to a force majeure event under Section 14 or
otherwise, prevented from performing its obligations hereunder for a period of
three (3) consecutive months or for a total period of six (6) months in any
period of twelve (12) consecutive months.

d)             In
the event the Reseller does not meet the agreed upon sales volumes
consecutively for two years, or if the Reseller does not comply with the agreed
upon personnel and financial requirements during any two consecutive calendar
fiscal year.

e)              In
the case of the Supplier, if all or substantially all of Reseller’s assets or
capital stock is acquired by a developer, licensor or provider of software or
services that directly competes with the Lawson Software and/or related
services (a “Lawson Competitor”).

f)                In
the case of the Supplier, if the Reseller has not fully complied with its
obligations according to Section 11.1 e), p), q) or s) and/or 11.2).

g)             If
either party violates section 26 or 27.

17.2.            This
Agreement shall automatically terminate if, for whatever reason, the Supplier’s
rights to license, market, distribute and support the Software are terminated,
or if, and to the extent, the Lawson Group should be prohibited from conducting
business with the Reseller due to any applicable export restrictions or trade
embargo. If however such rights to license, market, distribute and support are
terminated only as concern certain sub-licensed Third Party Software, the
termination will only apply to the Resellers right to continue to distribute
such third party software.

17.3.            For
purposes of this Agreement, non-payment beyond the stipulated date and any
extensions 

thereof shall always be deemed a material breach.

17.4.            The
expiration or termination of this Agreement shall be without prejudice to the
rights of the parties accrued up to the date of such expiration or termination.

17.5.            Upon
expiration or termination (for whatever reason) of this Agreement, the Reseller
shall immediately cease all marketing activities with respect to the Software
and discontinue any Maintenance services to customers except to the extent
required by the Supplier. The Supplier shall fulfill all orders accepted prior
to termination and shall assume or cause a third party to assume support
obligations to customers not retained by the Reseller. The Reseller shall also
return or destroy (as the Supplier shall instruct) no later than fourteen (14)
days thereafter, all Software, documentation, technical information and any
other data supplied to the Reseller during the term of this Agreement and any
copies made of the whole or any part of the same and the Reseller shall furnish
the Supplier with a Certification, certifying that the same has been done. The
Reseller shall also cease all usage of or reference to the Lawson Group’s, Lawson’s customers’ or its third parties’ name(s) or trademark(s)
(or any name under which the Lawson Group, its customers or third parties do
business) for any purpose including but not limited to, any marketing, public
relations, advertising, display or other business purpose.

 13
 

18.       Relationship of the
Reseller to the Supplier

Notwithstanding anything else
that may be implied elsewhere in this Agreement it is agreed and understood
that the Reseller is not the agent or representative of the Supplier and has no
authority or power to bind or contract in the name of or to create any liability
against the Supplier in any way or for any purpose. It is understood that the
Reseller is an independent contractor with non-exclusive rights confirmed by
this Agreement to license, market and distribute the Software on its own accord
and responsibility in the Territory.

19.       Waiver

Failure or
neglect by the Supplier to enforce at any time any of the provisions hereof
shall not be construed as or deemed to be a waiver of the Supplier’s rights
hereunder or in any way affect the validity of the whole or any other provision
of this Agreement prejudice the Supplier’s rights to take subsequent action.
Any waiver of the provisions of this Agreement must be in writing and signed by
the party making the waiver.

20.       Assignment

20.1.            This
Agreement and the rights and licenses granted hereunder are not transferable.
This Agreement shall not be assigned by the Reseller whether voluntarily or
involuntarily or by operation of law, in whole or in part, to any party without
the prior written consent of the Supplier.

20.2.            The
Supplier may transfer to any third party whatsoever the right to receive
payments due under the Agreement without the Reseller’s consent.

20.3.            The
Supplier may, without need for the consent of the Reseller, transfer this
Agreement to another company within the Lawson Group.

21.       Notices

	
  Lawson

  	
  Partner:

  
	
   

  	
   

  
	
  Attn.: General Counsel

  	
  Attn.: Director-Legal

  
	
  380 St. Peter Street

  	
  Sy. No. 12/1 & 13/1,

  
	
   

  	
  Kadubeesanahalli, Outer Ring

  
	
   

  	
  Road

  
	
  St. Paul, MN 55102

  	
  Bangalore - 560 087

  
	
   

  	
   India

  
	
  Telephone: 651-767-4827

  	
  Telephone:  +91-80-30271000

  
	
  Fax:

  	
  Fax:           
  +91-80-30272000

  

 

Notices and other communications
to be exchanged between the parties may be sent by courier, first class post,
fax or via electronic mail, to the receiving party’s last know address or its
registered offices. Communications sent by courier shall be deemed received by
the receiving party when proof of receipt has been signed, communications sent
via first class post shall be deemed received seven days after the date of
posting, communications sent via fax or electronic mail shall be considered
received immediately after receipt of the fax or (as the case may be)
electronic mail confirmation report. The Supplier reserves the right to deliver
messages of general interest as concerns the Software and which affect also
other than the Reseller, e.g. other Resellers, sub-

 14
 

consultants and /or all
licensees of the Software, by use of any of electronic addresses which the
Supplier from time to time may specify to the Reseller.

22.       Public announcements

22.1.            Each
party may issue an agreed upon press release after receiving the other party’s
written approval of the exact wording, which shall not be unreasonably
withheld.

22.2.            Neither
of the parties shall otherwise use any name, logo or trademark/service mark of
the other party in any way without prior written authorization of such other
party. Lawson is however entitled to issue a public notice announcing that the
parties have entered into the Agreement including information as regards the
scope, provided such public notice is mandatory in accordance with Lawson’s
listing contract with the Stockholm or NASDAQ Stock Exchange, or other stock
exchange regulations, and provided the Reseller is first provided with a copy
of such notice.

23.       Choice of law

This Agreement shall be governed
by the laws of Minnesota, without reference to the conflict of laws and shall
be construed in accordance therewith excluding the law on conflict of laws.

24.       Settlement of Disputes

24.1.            Subject
to section 24.4, all disputes arising in relation to this Agreement (including,
without limitation, its validity, interpretation and applicability) shall be
finally determined by binding arbitration in accordance with the Rules of the
American Arbitration Association. The arbitration committee shall be comprised
of three arbitrators, of which the Reseller and Supplier shall appoint one
each. The appointed arbitrators shall jointly appoint a third arbitrator who
shall be the chairman of the arbitration committee.

24.2.            The
arbitration shall take place in Minnesota, USA.

24.3.            The
language to be used in the arbitral proceedings shall be English.

24.4.            Notwithstanding
the above, the parties agree that the ordinary courts, including, for the
avoidance of doubt, the Enforcement Authorities, of Minnesota, USA shall have
jurisdiction over actions relating to non-payment of undisputed claims.

25.       Amendment

25.1.            No
provision of this Agreement may be modified or amended except by an instrument
in writing signed by both parties.

25.2.            To the extent any provision or part
thereof, of this Agreement is held invalid under any present or future
applicable statute or rule of law, the remainder of the Agreement shall be
valid and enforceable to the maximum extent possible.

 15
 

26.       Representations and
Warranties

Each of the parties represents
and warrants that:

a)              It
is a corporation duly organized and in good standing under the laws of its
jurisdiction and has the full power and authority to execute and deliver this
Agreement, and to perform its obligations hereunder

b)             This
Agreement constitutes its legal, valid and binding obligation, enforceable in
accordance with its terms.

c)              All
consents, approvals and authorizations necessary for the due execution,
delivery and performance of this Agreement have been obtained or effected and
remain in full force and effect as of the date hereof.

d)             The
execution and delivery of this Agreement, and the performance of its
obligations hereunder, do not and will not violate any applicable laws or
regulations of the jurisdiction of its incorporations and will not conflict
with or result in a breach of any contract, agreement or other obligation to
which it is a party or for which any of its properties may be bound or its
articles of incorporation and by-laws or the equivalent constitutive documents
of such party.

27.       Non-Solicitation

27.1.            During
the Term of this Agreement and for a period of eighteen (18) months thereafter:

(a)          The
Reseller shall not either itself, or on behalf of or through any third party,
hire, employ, retain (directly or indirectly), or contract for services
(directly or indirectly) with, any current or future employee of the Lawson
Group  including twelve (12) months from
such employment has terminated; and

(b)         The
Supplier shall not either itself, or on behalf of or through any third party,
hire, employ, retain (directly or indirectly), or contract for services
(directly or indirectly) with, any current or future employee of Reseller,
including twelve (12) months from such employment has terminated.

27.2.            If
Reseller violates this Section 27, Reseller agrees to pay to Supplier as
liquidated damages a fee of 100% of such Lawson Group employee’s annual
compensation in effect at the time of such employee’s severance of employment
with Lawson, as evidenced by a copy of such employee’s most recent payroll
record.

27.3.            If
Supplier violates this Section 27, Supplier agrees to pay to Reseller as
liquidated damages a fee of 100% of such Reseller employee’s annual
compensation in effect at the time of such employee’s severance of employment
with Reseller, as evidenced by a copy of such employee’s most recent payroll
record.

27.4.            If
any part of this Section 27 should be determined by a court of competent
jurisdiction to be unreasonable in duration, or scope, then this Section 27 is
intended to and shall extend only for such period of time and with respect to
such activity as is determined to be reasonable.

28.       Miscellaneous

28.1.            This
Agreement has been prepared and executed in duplicate counterparts each of
which shall constitute an original copy of this Agreement.

 16
 

28.2.            This
Agreement consists of this document including the appendices attached hereto,
to which reference is made in this Agreement.

28.3.            In
case of inconsistencies between this document and an appendix, this document
will prevail over the appendix unless specifically stated therein. In case of
inconsistencies between appendices, an appendix with a lower number will
prevail over an appendix with a higher number.

28.4.            Headings
set out in this Agreement are for ease of reference only and shall not affect
the interpretation hereof.

28.5.            The
Agreement contains the complete agreement with Reseller and supersedes all
prior agreements, representations, statements, requests for proposal,
proposals, negotiations, understandings and undertakings between the parties in
relation to the subject-matter of this Agreement.

IN WITNESS WHEREOF the
parties have signed this Agreement as of the date stated below.

	
  /s/ H Debes

  	
   

  	
  /s/ PA Ananthanarayanan

  
	
  Date and Place

  	
   

  	
  Date and Place April 27, 2007

  
	
   

  	
   

  	
   

  
	
  St. Paul, MN USA

  	
   

  	
  Bangalore, India

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Lawson International AB

  	
   

  	
  Symphony Service Corp. (India) Private Limited

  
	
   

  	
   

  	
   

  
	
  Name of Signatory

  	
   

  	
  Name of Signatory

  
	
   

  	
   

  	
   

  
	
  H Debes

  	
   

  	
  PA Ananthanarayanan

  
	
   

  	
   

  	
   

  
	
  Address

  P.O. Box 596

  SE-182 15 Danderyd

  SWEDEN

  Telephone +46 8 5552 5000

  Fax +46 8 5552 5999

  	
   

  	
  Address:

            Sy. Nos 12/1
  & 13/1, Kadubeesanahalli,

  Outer Ring Road, Bangalore – 560 087, India

  

  Telephone +91-80-30271000

  Fax + 91-80-30272000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Appendices:

  	
   

  	
   

  
	
  1              Lawson standard Customer Agreement

  2              Specification
  / POF Licensed Software

  3              Certification

  4              Business
  planTemplate

  5              Reseller
  Support Requirements

  6              Lead
  Registration Process

  7              Reseller’s
  Customers and pipeline

  8              Pricing
  Terms and Revenue Quota’s

  	
   

  	
   

  

 

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]