Document:

ASSET PURCHASE AND SALE AGREEMENT

                                     between

                              Briggs New York Corp.

                                 ("the Seller")

                                       and

                                Newkell II, Inc.

                                  ("the Buyer")

                                February 4, 2003

<PAGE>

                                Table Of Contents

                                                                            Page
                                                                            ----

ARTICLE I         ASSET PURCHASE..............................................1

     1.1      Purchase and Sale of Assets; Assumption of Liabilities..........1
     1.2      Purchase Price..................................................6
     1.3      The Closing.....................................................6
     1.4      Post-Closing Adjustment.........................................8
     1.5      Consents to Assignment.........................................11
     1.6      Further Assurances.............................................11
     1.7      Allocation of Purchase Price...................................12
     1.8      Contingent Purchase Price......................................12

ARTICLE II        REPRESENTATIONS AND WARRANTIES OF THE SELLER...............12

     2.1      Organization, Qualification and Corporate Power................13
     2.2      Capitalization.................................................13
     2.3      Authority......................................................14
     2.4      Noncontravention...............................................14
     2.5      Financial Statements...........................................15
     2.6      Absence of Certain Changes.....................................15
     2.7      Undisclosed Liabilities........................................16
     2.8      Tax Matters....................................................16
     2.9      Tangible Personal Property.....................................17
     2.10     Owned Real Property............................................17
     2.11     Leased Real Property...........................................17
     2.12     Intellectual Property..........................................18
     2.13     Contracts......................................................18
     2.14     Entire Business................................................19
     2.15     Litigation.....................................................19
     2.16     Employment Matters.............................................19
     2.17     Employee Benefits..............................................20
     2.18     Environmental Matters..........................................22
     2.19     Legal Compliance...............................................23
     2.20     Permits23
     2.21     Accounts Receivable............................................23
     2.22     Banking Relationships and Investments..........................23
     2.23     Inventory......................................................23
     2.24     Transactions with Affiliates...................................24
     2.25     Insurance......................................................24
     2.26     Customers and Suppliers........................................24
     2.27     Product Warranty...............................................25

<PAGE>

                               Table of Contents
                               -----------------

                                  (continued)

                                                                            Page
                                                                            ----

     2.28     Product Liability..............................................25
     2.29     No Broker......................................................25

ARTICLE III       REPRESENTATIONS AND WARRANTIES OF THE BUYER................25

     3.1      Organization...................................................25
     3.2      Authority......................................................25
     3.3      Capitalization of Guarantor....................................26
     3.4      Noncontravention...............................................26
     3.5      Compliance.....................................................27
     3.6      SEC Reports and Financial Statements...........................28
     3.7      Information Supplied...........................................29
     3.8      Litigation.....................................................29
     3.9      Financing......................................................29
     3.10     Solvency.......................................................29
     3.11     Measurement Period.............................................29
     3.12     Due Diligence by the Buyer.....................................30

ARTICLE IV        PRE-CLOSING COVENANTS......................................30

     4.1      Closing Efforts; Hart-Scott-Rodino Act.........................30
     4.2      Operation of Seller............................................31
     4.3      Access.32
     4.4      Exclusivity....................................................33
     4.5      Schedules......................................................33
     4.6      Related Entity.................................................34
     4.7      Certain Tax Certifications.....................................34
     4.8      NYSE Listing...................................................34

ARTICLE V         CONDITIONS PRECEDENT TO CLOSING............................34

     5.1      Conditions to Obligations of the Buyer.........................34
     5.2      Conditions to Obligations of the Seller........................35

ARTICLE VI        INDEMNIFICATION............................................37

     6.1      Indemnification by the Seller..................................37
     6.2      Indemnification by the Buyer...................................37
     6.3      Claims for Indemnification.....................................38
     6.4      Survival.......................................................39
     6.5      Limitations....................................................39
     6.6      Treatment of Indemnification Payments..........................41

ARTICLE VII       TERMINATION 41

     7.1      Termination of Agreement.......................................41
     7.2      Effect of Termination..........................................42

<PAGE>

                               Table of Contents
                               -----------------

                                  (continued)

                                                                            Page
                                                                            ----

ARTICLE VIII      EMPLOYEE MATTERS...........................................42

     8.1      Offer of Employment; Continuation of Employment................42
     8.2      Cessation of Business Benefit Plan Participation;
              401(k) Plan Matters............................................42
     8.3      Employment Related Liabilities.................................42
     8.4      Compensation; Employee Benefits; Severance Plans...............43
     8.5      Welfare Plans..................................................43
     8.6      Accrued Personal, Sick or Vacation Time........................43
     8.7      U.S. WARN Act..................................................43
     8.8      U.S. COBRA.....................................................44
     8.9      Payroll Withholding Matters....................................44

ARTICLE IX        OTHER POST-CLOSING COVENANTS...............................45

     9.1      Access to Information; Record Retention; Cooperation...........45
     9.2      Collection of Accounts Receivable..............................46
     9.3      Payment of Assumed Liabilities.................................46
     9.4      [INTENTIONALLY OMITTED]........................................46
     9.5      Covenant Not To Compete........................................46
     9.6      No Disparagement by the Buyer..................................47
     9.7      Limited Guaranty...............................................47

ARTICLE X         MISCELLANEOUS..............................................48

     10.1     Press Releases and Announcements...............................48
     10.2     No Third Party Beneficiaries...................................48
     10.3     Action to be Taken by Affiliates...............................48
     10.4     Entire Agreement...............................................48
     10.5     Succession and Assignment......................................48
     10.6     Notices48
     10.7     Amendments and Waivers.........................................49
     10.8     Severability...................................................49
     10.9     Expenses.......................................................49
     10.10    Specific Performance...........................................50
     10.11    Governing Law..................................................50
     10.12    Submission to Jurisdiction.....................................50
     10.13    Bulk Transfer Laws.............................................50
     10.14    Construction...................................................50
     10.15    Waiver of Jury Trial...........................................51
     10.16    Incorporation of Exhibits and Schedules........................51
     10.17    Counterparts and Facsimile Signature...........................51

<PAGE>

                                Table Of Contents
                                -----------------

                                   (continued)

         Disclosure Schedule

Schedules:

         Schedule 1.1(a)(iv)                Real Estate Leases
         Schedule 1.1(a) (vi)               Patents and Patent Applications
         Schedule 1.1(b)(ii)                Excluded Assets
         Schedule 1.1(d)(iii)               Excluded Liabilities
         Schedule 1.4(b)                    Accounting Policies
         Schedule 1.7                       Allocation of Purchase Price

Exhibits:

         Exhibit A         Form of Guaranty
         Exhibit B         Determination of Earnout Payments
         Exhibit C         Form of Escrow Agreement
         Exhibit D         Form of Bill of Sale
         Exhibit E         Form of Trademark Assignment
         Exhibit F         Form of Assumption Agreement
         Exhibit G         Form of Employment Agreement
         Exhibit H         Form of Opinion of Seller's Counsel
         Exhibit I         Form of Opinion of Buyer's Counsel
         Exhibit J-1       Form of Seller Guaranty
         Exhibit J-2       Form of Collection Guaranty
         Exhibit K-1       Form of Lease for Brainerd Road Facility
         Exhibit K-2       Form of Lease for Everett Street Facility

<PAGE>

                             TABLE OF DEFINED TERMS

        DEFINED TERM                                       SECTION
        ------------                                       -------

        Accounts Receivable                                2.21
        Acquired Assets                                    1.1(a)
        Adjusted Purchase Price                            1.2
        Affiliate                                          2.24
        Agreed Amount                                      6.3(b)
        Agreement                                          Preliminary Statement
        Allocation Schedule                                1.7(a)
        Ancillary Agreements                               1.3(b)
        Assigned Contracts                                 1.1(a)(v)
        Assumed Liabilities                                1.1(c)
        Atgo                                               4.6
        Balance Sheet Date                                 2.5
        Base Prospectus                                    3.7
        Beneficial Owners                                  2.2(c)
        Business                                           Introduction
        Business Day                                       1.3(a)
        Buyer                                              Preliminary Statement
        Buyer Certificate                                  5.2(e)
        Buyer Material Adverse Effect                      3.4(d)
        Buyer Plans                                        8.4
        Cash Portion of the Purchase Price                 1.2
        CERCLA                                             2.18(a)(iii)
        Claim Notice                                       6.3(b)
        Claimed Amount                                     6.3(b)
        Closing                                            1.3(a)
        Closing Date                                       1.3(a)
        Closing Statement                                  1.4(b)
        COBRA                                              8.8
        Code                                               1.7(a)
        Confidentiality Agreement                          4.3(a)
        Consideration Shares                               3.3(b)
        Contingent Purchase Price Amount                   1.2
        Damages                                            6.1
        Deferred Consent                                   1.5
        Deferred Item                                      1.5
        Disclosure Schedule                                Article II
        Employee Benefit Plan                              2.17(a)
        Employees                                          8.1
        Environment                                        2.18(a)(ii)
        Employment Contracts                               2.16(a)
        Environmental Law                                  2.18(a)(iv)
        Environmental Matters                              2.18(a)(v)
        ERISA                                              2.17(a)

<PAGE>

        DEFINED TERM                                       SECTION
        ------------                                       -------

        ERISA Affiliate                                    2.17(a)
        Escrow Account                                     1.2
        Exchange Act                                       3.6(a)
        Excluded Assets                                    1.1(b)
        Excluded Liabilities                               1.1(d)
        Final Closing Statement                            1.4(d)(v)
        Financial Statements                               2.5
        Form S-4                                           3.6(d)
        GAAP                                               1.1(c)(i)
        Governmental Entity                                1.1(a)(viii)
        Governmental Filings                               4.1(a)
        Guarantor                                          Preliminary Statement
        Guaranty                                           Introduction
        Hart-Scott-Rodino Act                              2.4
        Indemnified Party                                  6.3(a)
        Indemnifying Party                                 6.3(a)
        Information                                        9.1(a)
        Insurance                                          2.25
        Intellectual Property                              1.1(a)(vi)
        Kellwood Closing Net Worth Amount                  1.4(a)
        Kellwood Common Stock                              3.3(a)
        Leased Facilities                                  1.1(a)(iv)
        Leased Real Property                               2.11
        Leases                                             2.11
        Legal Permits                                      1.1(a)(viii)
        Material Contracts                                 2.13(b)
        Materials of Environmental Concern                 2.18(a)(iii)
        Measurement Period                                 1.2
        Most Recent Balance Sheet                          2.5
        Multiemployer Plan                                 2.17(a)
        Net Worth Amount                                   1.4(b)
        Neutral Accountant                                 1.4(d)(iii)
        New Buyer Employees                                8.4
        New Leases                                         5.2(l)
        NYSE                                               1.2
        Off-Site Liabilities                               2.18(a)(vi)
        Parties                                            Preliminary Statement
        Permits                                            2.20
        Preferred Stock                                    3.3(a)
        PSV Policies                                       8.6
        Purchase Price                                     1.2
        Real Estate Leases                                 1.1(a)(iv)
        Release                                            2.18(a)(i)
        SEC                                                3.6(a)

<PAGE>

        DEFINED TERM                                       SECTION
        ------------                                       -------

        SEC Reports                                        3.6(a)
        Securities Act                                     2.2(a)
        Security Interest                                  2.4(d)
        Seller                                             Preliminary Statement
        Seller Benefit Plans                               2.17(a)
        Seller Certificate                                 5.1(e)
        Seller Closing Net Worth Amount                    1.4(a)
        Seller Historical Accounting Policies              1.4(a)
        Seller Material Adverse Effect                     2.1(a)
        Seller's 401(k) Plan                               8.2
        Stock Portion of the Purchase Price                1.2
        Target Net Worth Amount                            1.4(a)
        Tax Returns                                        2.8(a)
        Taxes                                              2.8(a)
        Territory                                          9.5(a)
        Third Party Consents                               4.1(a)
        Unresolved Objections                              1.4(d)(iii)
        Vacation Accrual                                   1.4(a)
        WARN Act                                           2.27(e)
        1060 Forms                                         1.7(b)

<PAGE>

                        ASSET PURCHASE AND SALE AGREEMENT

         This ASSET PURCHASE AND SALE AGREEMENT (the "Agreement") is entered
into as of February 4, 2003 between Briggs New York Corp., a Massachusetts
corporation (the "Seller"), Newkell II, Inc., a Delaware corporation (the
"Buyer"), and Kellwood Company, a Delaware corporation and the sole stockholder
of the Buyer (the "Guarantor"). The Seller and the Buyer are referred to
collectively herein as the "Parties."

                                  INTRODUCTION

         1. The Seller is engaged in the business of designing, developing,
manufacturing, marketing, distributing and selling moderately priced women's
apparel, including pants, skirts and shorts, as well as jackets and vests (the
"Business");

         2. Guarantor is the parent company of the Buyer, will receive benefits
under this Agreement and will guarantee all of the obligations of the Buyer
arising under this Agreement and any Ancillary Agreements executed in
contemplation hereof pursuant to that certain Guaranty of even date herewith
(the "Guaranty") in substantially the form attached hereto as Exhibit A; and

         3. The Buyer desires to purchase from the Seller, and the Seller
desires to sell to the Buyer, substantially all of the assets of the Seller,
subject to certain liabilities, upon the terms and subject to the conditions set
forth herein.

         NOW, THEREFORE, in consideration of the representations, warranties,
covenants and agreements contained in this Agreement and other good and valuable
consideration, the receipt of which is hereby acknowledged, the Parties agree as
follows:

                                   ARTICLE I
                                 ASSET PURCHASE

         1.1 Purchase and Sale of Assets; Assumption of Liabilities.

             (a) Transfer of Assets. On the basis of the representations,
warranties, covenants and agreements and subject to the satisfaction or waiver
of the conditions set forth in this Agreement, at the Closing, the Seller shall
sell, convey, assign, transfer and deliver to the Buyer, and the Buyer shall
purchase and acquire from the Seller, all of the Seller's right, title and
interest in and to the assets, properties, rights and claims of the Seller of
every kind, nature, character and description, tangible and intangible, real,
personal or mixed, wherever located, existing as of the Closing (the "Acquired
Assets"), including, but not limited to, the following assets, in each case to
the extent owned by the Seller as of the Closing:

                 (i) all accounts receivable and other receivables, whether or
not billed;

                 (ii) all inventory of raw materials, piece goods, trim, hang
tags, labels, samples, work in process, finished goods, office supplies,
maintenance supplies and packaging materials, together with spare parts,
supplies, promotional materials and inventory (whether located at the Seller's

<PAGE>

facilities, in transit to or from the Seller's facilities, or held by the
Seller, its contractors, or vendors on consignment);

                 (iii) all computers, equipment, furniture, furnishings,
fixtures, machinery, vehicles, tools and tooling and other tangible personal
property and all warranties and guarantees, if any, express or implied, existing
for the benefit of an Asset Seller in connection therewith to the extent
transferable;

                 (iv) the leasehold interests to the facilities (the "Leased
Facilities") covered by the real property leases or subleases described on
Schedule 1.1(a)(iv) (the "Real Estate Leases"), except as provided in Section
1.5;

                 (v) the rights under all contracts or agreements to which the
Seller is a party (excluding the Real Estate Leases), including those listed in
Section 2.11 of the Disclosure Schedule (as defined in Article II) (the
"Assigned Contracts"), except as provided in Section 1.5

                 (vi) all patents and patent applications listed on Schedule
1.1(a)(vi), any patent applications that are filed based on the invention
disclosures listed on Schedule 1.1(a)(vi), all copyrights and copyright
registrations, all trademark registrations and trademark applications, all trade
names, trade styles, logos and service marks and all applications and
registrations therefore and licenses thereof, all rights in and to the name
"Briggs", and all computer software and management information systems
("Intellectual Property"), including all rights to sue for past infringement;

                 (vii) all technical information, trade secrets, technology,
know-how, specifications, designs, drawings and processes and quality control
data, and other confidential business information, including customer lists and
vendor lists;

                 (viii) all licenses, permits or franchises issued by any
Governmental Entity (as defined below) (collectively, "Legal Permits") relating
to the development, use, maintenance or occupation of the Leased Facilities, to
the extent that such Legal Permits are transferable (for purposes of this
Agreement, "Governmental Entity" means any court, arbitrational tribunal,
administrative agency or commission or other governmental or regulatory
authority or agency);

                 (ix) all goods and services and all other economic benefits to
be received subsequent to the Closing arising out of prepayments and payments by
the Seller prior to the Closing to the extent such prepayments and payments are
reflected in the determination of the Kellwood Closing Net Worth Amount;

                 (x) all books (other than stock record books), records,
accounts, ledgers, files, documents, correspondence, studies, reports and other
printed or written materials, subject to any restrictions imposed by applicable
law on the transfer of employee files and other materials related to classified
programs;

                 (xi) all goodwill;

<PAGE>

                 (xii) all vehicles used in the business (other than any
vehicles that constitute Excluded Assets pursuant to Section 1.1(b)) and rights
under vehicle leases, except as provided in Section 1.5;

                 (xiii) all bank accounts, lock boxes and safe deposit boxes
(including the contents thereof) which are maintained for use in the conduct of
the Business or which contain any assets of the Business;

                 (xiv) all performance and other bonds, security and other
deposits, and advances maintained for use in the conduct of the Business;

                 (xv) the right to make claims under and other benefits of the
contracts of Insurance listed in Section 2.25 of the Disclosure Schedule;

                 (xvi) all documents and records relating to the Acquired
Assets, or the operations or products of the Business;

                 (xvii) rights under agreements with employees concerning
confidentiality and the assignment of inventions;

                 (xviii) all information systems, programs, software and
documentation thereof (including all electronic data processing systems, program
specifications, source codes, logs, input data and report layouts and formats,
record file layouts, diagrams, functional specifications and narrative
descriptions, flow charts and other related material) owned by the Seller and
which are used or intended to be used in the conduct of the Business;

                 (xix) all telephone and telecopy numbers, web sites, domain
names, e-mail addresses and other technologies and communication systems used in
the conduct of the Business; and

                 (xx) prepaid expenses and deferred charges and rights to volume
rebates due from suppliers to the extent reflected in the determination of the
Kellwood Closing Net Worth Amount.

             (b) Excluded Assets. Notwithstanding anything to the contrary in
this Agreement, the Acquired Assets shall not include any of the following
(each, an "Excluded Asset"):

                 (i) all cash and cash equivalents or similar investments, bank
accounts, commercial paper, certificates of deposit, Treasury bills and other
marketable securities, except in any case to the extent not taken out of the
Business by the Seller on or prior to the Closing Date;

                 (ii) all assets, properties or rights listed on, or arising
under any contracts or agreements listed on, Schedule 1.1(b)(ii);

<PAGE>

                 (iii) all rights to insurance claims, related refunds and
proceeds to the extent they arise from or relate to the Excluded Assets and
Excluded Liabilities (as defined in Section 1.1(d));

                 (iv) all rights which accrue or will accrue to the benefit of
the Seller or its affiliates under this Agreement or the Ancillary Agreements
(as defined in Section 1.3(b));

                 (v) all rights relating to refunds or recoupment of Taxes (as
defined in Section 2.8(a)) of the Seller, including rights under any legal or
administrative proceedings relating thereto, whether or not yet commenced, and
all Tax deposits and prepayments of the Seller;

                 (vi) all actions, claims, causes of action, rights of recovery,
choses in action and rights of setoff of any kind arising before, on or after
the Closing relating to the items set forth above in this Section 1.1(b) or to
any Excluded Liabilities; and

                 (vii) all books, records, accounts, ledgers, files, documents,
correspondence, studies, reports and other printed or written materials related
exclusively or primarily to any Excluded Assets or Excluded Liabilities.

             (c) Assumed Liabilities. On the basis of the representations,
warranties, covenants and agreements and subject to the satisfaction or waiver
of the conditions set forth in this Agreement, at the Closing, the Buyer shall
assume and agree to pay, perform and discharge when due the following Business
liabilities and obligations of the Seller (the "Assumed Liabilities"):

                 (i) all liabilities reflected on the Most Recent Balance Sheet
(as defined in Section 2.5) to the extent so reflected and any other liabilities
as of the Balance Sheet Date (as defined in Section 2.5) which are not required
to be reflected thereon according to United States generally accepted accounting
principles as in effect as of the Balance Sheet Date ("GAAP"), except to the
extent satisfied prior to the Closing;

                 (ii) all liabilities in existence as of the Closing Date that
arose in the ordinary course of the business of the Seller, except to the extent
satisfied prior to the Closing;

                 (iii) all liabilities and obligations under the Assigned
Contracts and under the Real Estate Leases, except as provided in Section 1.5;

                 (iv) all liabilities and obligations under the Legal Permits
transferred pursuant to Section 1.1(a)(viii);

                 (v) all liabilities and obligations in respect of the Business
or the Acquired Assets arising or incurred by the Buyer on and after the Closing
Date;

                 (vi) all liabilities and obligations which arise on account of
the sale of any products manufactured and/or sold by the Buyer on and after the
Closing Date;

<PAGE>

                 (vii) all liabilities and obligations arising out of the
ownership, leasing or operation of any Leased Facility on or after the Closing;

                 (viii) all liabilities and obligations for Environmental
Matters (as defined in Section 2.18(a)(v)) or liability under common law with
respect to Materials of Environmental Concern (as defined in Section
2.18(a)(iii)) which arise on or after the Closing Date;

                 (ix) all liabilities and obligations in respect of employees or
employee benefits which are assumed by the Buyer pursuant to Article VIII;

                 (x) all liabilities and obligations arising out of or relating
to Deferred Items (as defined in Section 1.5) under Section 1.5;

                 (xi) all liabilities with respect to all actions, suits,
proceedings, disputes, claims or investigations listed in Section 2.15 of the
Disclosure Schedule;

                 (xii) all liabilities and obligations arising out of or
relating to the repair, rework, replacement or return of, or any claim for
breach of warranty in respect of or refund of the purchase price of, products or
goods (it being understood that a reserve for such liabilities may be included
in the determination of the Kellwood Closing Net Worth Amount based on
historical experience);

                 (xiii) all liabilities and obligations arising out of or
relating to any product liability claim arising on or after the Closing Date,
including without limitation injury to or death of persons, damage to or
destruction of property or any worker's compensation claim; and

                 (xiv) all liabilities for claims which are covered by
insurance, if any.

             (d) Excluded Liabilities. Notwithstanding anything to the contrary
in this Agreement, the Assumed Liabilities shall not include the following
(collectively, the "Excluded Liabilities"):

                 (i) all liabilities and obligations relating exclusively or
primarily to the Excluded Assets;

                 (ii) all liabilities and obligations of the Seller in respect
of employees or employee benefits retained by the Seller pursuant to Article
VIII;

                 (iii) all liabilities and obligations of the Seller under the
agreements listed on Schedule 1.1(d)(iii);

                 (iv) all liabilities and obligations of the Seller under this
Agreement and the Ancillary Agreements;

                 (v) all liabilities and obligations of the Seller for costs and
expenses incurred in connection with this Agreement or the consummation of the

<PAGE>

transactions contemplated by this Agreement (including without limitation any
fees for financial advisors engaged by or on behalf of the Seller);

                 (vi) all liabilities and obligations for Environmental Matters
(as defined in Section 2.18(a)(v)) or liability under common law with respect to
Materials of Environmental Concern (as defined in Section 2.18(a)(iii)) in
existence prior to the Closing Date; and

                 (vii) all liabilities and obligations for any income Taxes of
the Seller.

         1.2 Purchase Price. The purchase price to be paid by the Buyer to the
Seller for the Acquired Assets shall be (a) $140,000,000 consisting of (i) a
minimum of U.S. $120,000,000 in cash in immediately available funds (the "Cash
Portion of the Purchase Price") and (ii) a maximum of $20,000,000 payable in
common stock of the Guarantor (the "Stock Portion of the Purchase Price") to be
valued as equal to the 5-day average of the daily closing prices of the shares
of the Guarantor's common stock on The New York Stock Exchange (the "NYSE") as
reported in The Wall Street Journal, for the 5 consecutive trading days previous
to and including as the last day the day that is two days prior to the Closing
Date (the "Measurement Period"), provided that the Buyer shall not be entitled
to allocate more than 500,000 shares of common stock of the Guarantor to the
Stock Portion of the Purchase Price, plus (b) deferred cash payments as set
forth in Exhibit B attached hereto, "Determination of Earnout Payments" (the
"Contingent Purchase Price Amount"), plus (c) the assumption of the Assumed
Liabilities (collectively, the "Purchase Price"). Subject to the limitations set
forth in clause (a) above, the Buyer shall determine the Cash Portion of the
Purchase Price and the Stock Portion of the Purchase Price to be paid at Closing
and shall provide the Seller with written notice of such determination at least
6 trading days prior to the Closing. Notwithstanding anything to the contrary
contained in the foregoing, at the Closing, $3,000,000 of the Cash Portion of
the Purchase Price shall be paid by Buyer to a mutually agreed upon Escrow Agent
pursuant to the terms and conditions of an Escrow Agreement between Buyer and
Seller in substantially the form attached hereto as Exhibit C (the "Escrow
Account"). The Purchase Price is subject to adjustment as provided in Section
1.4. The Purchase Price, as adjusted pursuant to Section 1.4, is referred to
herein as the "Adjusted Purchase Price."

         1.3 The Closing.

             (a) Time and Location. The closing of the transactions contemplated
by this Agreement (the "Closing") shall take place at the offices of Hale and
Dorr LLP in Boston, Massachusetts, commencing at 9:30 a.m., local time, on
February 4, 2003, or, if all of the conditions to the obligations of the Parties
to consummate the transactions contemplated hereby (excluding the delivery of
any documents to be delivered at the Closing by any of the Parties, it being
understood that the occurrence of the Closing shall remain subject to the
delivery of such documents) have not been satisfied in full or waived by such
date, on such mutually agreeable later date as soon as practicable (but in no
event more than three Business Days (as defined below)) after the first date on
which the conditions to the obligations of the Parties to consummate the
transactions contemplated hereby (excluding the delivery of any documents to be
delivered at the Closing by any of the Parties, it being understood that the
occurrence of the Closing shall remain subject to the delivery of such
documents) have been satisfied or waived (the "Closing Date"). For purposes of
this Agreement, a "Business Day" shall be any day other than (i) a Saturday or

<PAGE>

Sunday or (ii) a day on which banking institutions located in New York, New York
are permitted or required by law, executive order or governmental decree to
remain closed. Upon consummation, the Closing shall be deemed to have taken
place as of the opening of business on the Closing Date.

             (b) Actions at the Closing.

                 At the Closing:

                 (i) the Seller shall deliver (or cause to be delivered) to the
Buyer the various certificates, instruments and documents required to be
delivered under Section 5.1;

                 (ii) the Buyer shall deliver (or cause to be delivered) to the
Seller the various certificates, instruments and documents required to be
delivered under Section 5.2;

                 (iii) the Seller shall execute and deliver a Bill of Sale in
substantially the form attached hereto as Exhibit D;

                 (iv) the Seller shall execute and deliver a Trademark
Assignment in substantially the form attached hereto as Exhibit E;

                 (v) the Seller and the Buyer shall execute and deliver such
other instruments of conveyance as the Buyer may reasonably request in order to
effect the sale, transfer, conveyance and assignment to the Buyer of valid
ownership of the Acquired Assets;

                 (vi) the Buyer shall execute and deliver to the Seller an
Assumption Agreement in substantially the form attached hereto as Exhibit F;

                 (vii) the Seller and the Buyer shall execute and deliver the
Escrow Agreement in substantially the form attached as Exhibit C;

                 (viii) the Buyer and each executive selected by Buyer shall
execute and deliver the respective Employment Agreement in substantially the
form attached as Exhibit G;

                 (ix) the Buyer and the Seller shall execute and deliver such
other instruments as the Seller may reasonably request in order to effect the
assumption by the Buyer of the Assumed Liabilities;

                 (x) the Seller shall transfer to the Buyer all the books,
records, files and other data (or copies thereof) within the possession of the
Seller relating to the Acquired Assets and reasonably necessary for the
continued operation of the Business by the Buyer;

                 (xi) the Seller shall deliver an executed opinion of the
Seller's counsel in substantially the form attached as Exhibit H;

                 (xii) the Buyer shall deliver an executed opinion of the
Buyer's counsel in substantially the form attached as Exhibit I;

<PAGE>

                 (xiii) the Buyer shall pay to the Seller (A) the Cash Portion
of the Purchase Price in cash by wire transfer of immediately available funds
into an account designated by the Seller in writing, and (B) the Stock Portion
of the Purchase Price by the delivery of stock certificates representing shares
of common stock of the Guarantor; and

                 (xiv) the Parties shall execute and deliver to each other a
cross-receipt evidencing the transactions referred to above.

         The agreements and instruments referred to in clauses (iii) through
(xii) above are referred to here in as the "Ancillary Agreements."

         1.4 Post-Closing Adjustment. The Purchase Price set forth in Section
1.2 shall be subject to adjustment after the Closing Date as follows:

                 (a) For purposes of this Agreement, the "Target Net Worth
Amount" shall be determined according to the following formula:

         Target Net Worth Amount      =                     (  X - (X1 + V)    )
                                          $18,931,978   -                  + V
                                                               -----------
                                                                    2
         Where:                    X  =   the Net Worth Amount (as defined
                                          below) as determined in accordance
                                          with the accounting policies,
                                          practices, procedures, policies and
                                          methods that were employed in the
                                          preparation of the Most Recent Balance
                                          Sheet (the "Seller Historical
                                          Accounting Policies") (such Net Worth
                                          Amount to be referred to herein as the
                                          "Seller Closing Net Worth Amount");

                                   X1 =   the Net Worth Amount as determined in
                                          accordance with the Seller Historical
                                          Accounting Policies, as adjusted by
                                          the accounting policies set forth on
                                          Schedule 1.4(b) attached hereto under
                                          the column heading "Policies For
                                          Determining Kellwood Closing Net Worth
                                          Amount" and, to the extent not
                                          inconsistent therewith, in accordance
                                          with GAAP (such Net Worth Amount to be
                                          referred to herein as "Kellwood
                                          Closing Net Worth Amount");

                                   V  =   the amount for vacation and sick pay
                                          earned by employees of the Business
                                          for the year ending December 31, 2003
                                          not yet paid ("Vacation Accrual").

             (b) Within 75 days after the Closing Date, the employees employed
by the Seller prior to the Closing who are responsible for the preparation of

<PAGE>

the Seller's financial statements shall prepare and deliver to the Buyer a
statement (the "Closing Statement") calculating the Seller Closing Net Worth
Amount, the Kellwood Closing Net Worth Amount and the Vacation Accrual. The
Buyer will enable such employees (who will then be employed by the Buyer) to
take directions from the Seller and permit such employees to spend such time as
may be necessary to prepare the Closing Statement. For purposes of this
Agreement, the "Net Worth Amount" shall mean the total assets of the Seller
(other than the Excluded Assets) as of 11:59 p.m. on the day prior to the
Closing Date less the total liabilities of the Seller (other than the Excluded
Liabilities) as of such time. In determining the Seller Closing Net Worth Amount
and the Kellwood Closing Net Worth Amount, all year-end adjustments historically
reflected on the Financial Statements (as defined in Section 2.5) shall be
included and the day prior to the Closing Date will be treated as the end of a
fiscal year.

             (c) The Buyer shall deliver to the Seller, within 60 days after
delivery by the Seller to the Buyer of the Closing Statement, either a notice
indicating that the Buyer accepts the Closing Statement or a statement
describing the Buyer's objections to the Closing Statement, which statement of
objections shall describe in detail the specific nature and amount of each
objection and shall state in detail all bases upon which the Buyer believes the
Closing Statement is not in conformity with the requirements set forth in this
Section 1.4. If the Buyer delivers to the Seller a notice accepting the Closing
Statement, or the Buyer does not deliver a written objection to the Closing
Statement within such 30-day period, then, effective as of either the date of
delivery of such notice of acceptance or as of the close of business on such
60th day, the Closing Statement shall be deemed to be accepted by the Buyer.

             (d) If the Buyer timely objects to the Closing Statement, such
objections shall be resolved as follows:

                 (i) The Buyer and the Seller shall first use reasonable efforts
to resolve such objections.

                 (ii) If the Buyer and the Seller are able to resolve such
objections within 30 days after delivery to the Seller of such statement of
objections, the Buyer and the Seller shall, within 45 days after delivery of
such statement of objections, jointly prepare and sign a statement setting forth
the Seller Closing Net Worth Amount, the Kellwood Closing Net Worth Amount and
the Vacation Accrual, which amounts shall reflect the resolution of objections
agreed to by the Buyer and the Seller.

                 (iii) If the Buyer and the Seller do not reach a resolution of
all objections set forth on the Buyer's statement of objections within 30 days
after delivery of such statement of objections, the Buyer and the Seller shall,
within 30 days after the expiration of such 30-day period, (A) jointly prepare
and sign a statement setting forth (1) those objections (if any) that the Buyer
and the Seller have resolved and the resolution of such objections and (2) those
objections that the Buyer and the Seller did not resolve (the "Unresolved
Objections") and (B) engage a mutually agreeable accounting firm, with Grant
Thornton LLP as the first choice (provided it is available and the Parties agree
that it has reasonable rates) (the "Neutral Accountant") to resolve the
Unresolved Objections.

<PAGE>

                 (iv) The Buyer and the Seller shall jointly submit to the
Neutral Accountant, within 10 days after the date of the engagement of the
Neutral Accountant (as evidenced by the date of the engagement agreement), a
copy of the Closing Statement, a copy of the statement of objections delivered
by the Buyer to the Seller, and the joint statement referred to in Section
1.4(d)(iii)(A) above. Each of the Buyer and the Seller shall submit to the
Neutral Accountant (with a copy delivered to the other Party on the same day),
within 30 days after the date of the engagement of the Neutral Accountant, a
memorandum (which may include supporting exhibits) setting forth their
respective positions on the Unresolved Objections. Each of the Buyer and the
Seller may (but shall not be required to) submit to the Neutral Accountant (with
a copy delivered to the other Party on the same day), within 60 days after the
date of the engagement of the Neutral Accountant, a memorandum responding to the
initial memorandum submitted to the Neutral Accountant by the other Party.
Unless requested by the Neutral Accountant in writing, neither the Buyer nor the
Seller may present any additional information or arguments to the Neutral
Accountant, either orally or in writing.

                 (v) The Buyer and the Seller shall instruct the Neutral
Accountant that (A) the scope of its review and authority shall be limited to
resolving the Unresolved Objections, and (B) issue a ruling which sets forth the
resolution of each Unresolved Objection (in which case its resolution of each
Unresolved Objection shall consist of the determination of an appropriate value
for each Closing Statement item that is the subject of an Unresolved Objection,
which value shall be equal to one of, or between, the values proposed by the
Seller in the Closing Statement and by the Buyer in its statement of objections)
and includes a statement setting forth the Seller Closing Net Worth Amount, the
Kellwood Closing Net Amount and the Vacation Accrual, reflecting the Neutral
Accountant's resolution of the Unresolved Objections. The "Final Closing
Statement" shall be the statement accepted (or deemed accepted) by the Buyer
pursuant to Section 1.4(c), prepared and signed pursuant to Section 1.4(d)(ii)
or delivered by the Neutral Accountant pursuant to this Section 1.4(d)(v), as
the case may be.

                 (vi) The resolution by the Neutral Accountant of the Unresolved
Objections shall be conclusive and binding upon the Buyer and the Seller. The
Buyer and the Seller agree that the procedure set forth in this Section 1.4(d)
for resolving disputes with respect to the Closing Statement shall be the sole
and exclusive method for resolving any such disputes; provided that this
provision shall not prohibit any Party from instituting litigation to enforce
the ruling of the Neutral Accountant.

                 (vii) The Buyer and the Seller shall share equally the fees and
expenses of the Neutral Accountant for its services under this Section 1.4(d).

             (e) If the Kellwood Closing Net Worth Amount as shown on the Final
Closing Statement is less than the Target Net Worth Amount, the Purchase Price
shall be reduced by such deficiency and the Seller shall pay to the Buyer, by
wire transfer or other delivery of immediately available funds, within three
Business Days after the date on which the Final Closing Statement is finally
determined pursuant to this Section 1.4, an amount equal to such deficiency
(plus interest thereon at the rate of 8% per annum, compounded monthly, from the
Closing Date). Should the Seller fail to make such payment, the Buyer shall have
the option to recover such amount from the Escrow Account. If the Kellwood
Closing Net Worth Amount as shown on the Final Closing Statement exceeds the
Target Net Worth Amount, the Purchase Price shall be increased by such excess

<PAGE>

amount and the Buyer shall pay to the Seller, by wire transfer or other delivery
of immediately available funds, within three Business Days after the date on
which the Final Closing Statement is finally determined pursuant to this Section
1.4, an amount equal to such excess (plus interest thereon at the rate of 8% per
annum, compounded monthly, from the Closing Date).

             (f) Notwithstanding anything to the contrary contained herein, (i)
in determining the Kellwood Closing Net Worth Amount and the Seller Closing Net
Worth Amount, there shall be no reserves for any Excluded Liabilities, (ii) in
determining the Kellwood Closing Net Worth Amount and the Seller Closing Net
Worth Amount, to the extent any amounts are reserved (specifically or generally)
relating to any Damages for which the Buyer is entitled to indemnification
pursuant to Article VI hereof, the Buyer shall only be entitled to
indemnification for those Damages in excess of such reserve amount (subject to
all other limitations set forth in Section 6.5), and (iii) the Buyer agrees to
pay any and all liabilities taken into account in determining the Kellwood
Closing Net Worth Amount and any and all liabilities for which a reserve (either
specifically or generally) has been taken into account in determining the
Kellwood Closing Net Worth Amount.

         1.5 Consents to Assignment. Anything in this Agreement to the contrary
notwithstanding, this Agreement shall not constitute an agreement to assign or
transfer any contract, lease, authorization, license or permit, or any claim,
right or benefit arising thereunder or resulting therefrom, if an attempted
assignment or transfer thereof, without the consent of a third party thereto or
of the issuing Governmental Entity, as the case may be, would constitute a
breach thereof. If such consent (a "Deferred Consent") is not obtained, or if an
attempted assignment or transfer thereof would be ineffective or would affect
the rights thereunder so that the Buyer would not receive all such rights, then,
in each such case, (a) the contract, lease, authorization, license or permit to
which such Deferred Consent relates (a "Deferred Item") shall be withheld from
sale pursuant to this Agreement without any reduction in the Purchase Price, (b)
from and after the Closing, the Seller and the Buyer will cooperate, in all
reasonable respects, to obtain such Deferred Consent as soon as practicable
after the Closing, provided that the Seller shall not be required to make any
payments or agree to any material undertakings in connection therewith, and (c)
until such Deferred Consent is obtained, the Seller and the Buyer will
cooperate, in all reasonable respects, to provide to the Buyer the benefits
under the Deferred Item to which such Deferred Consent relates (with the Buyer
entitled to all the gains and responsible for all the losses, Taxes, liabilities
and/or obligations thereunder). In particular, in the event that any such
Deferred Consent is not obtained prior to the Closing, then the Buyer and the
Seller shall enter into such arrangements (including subleasing or
subcontracting if permitted) to provide to the Parties the economic and
operational equivalent of obtaining such Deferred Consent and assigning or
transferring such contract, lease, authorization, license or permit, including
enforcement for the benefit of the Buyer of all claims or rights arising
thereunder, and the performance by the Buyer of the obligations thereunder on a
prompt and punctual basis.

         1.6 Further Assurances. At any time and from time to time after the
Closing Date, as and when requested by any Party hereto and at such Party's
expense, the other Party or Parties shall promptly execute and deliver, or cause
to be executed and delivered, all such documents, instruments and certificates
and shall take, or cause to be taken, all such further or other actions as are
necessary to evidence and effectuate the transactions contemplated by this
Agreement.

<PAGE>

         1.7 Allocation of Purchase Price.

             (a) The Adjusted Purchase Price will be allocated among the
Acquired Assets and the covenant not to compete contained in Article IX for Tax
purposes in accordance with the guidelines specified in Schedule 1.7 which the
Buyer and the Seller acknowledge are in compliance with Section 1060 of the
Internal Revenue Code of 1986, as amended, and the Treasury Regulations
promulgated thereunder (collectively, the "Code") and any comparable provisions
of state, local or other Tax law and in accordance with GAAP (to the extent, if
any, that GAAP is applicable to allocations under Section 1060 of the Code). As
soon as practicable after the Closing Date, the Seller shall prepare and deliver
to the Buyer a final allocation schedule (the "Allocation Schedule"), prepared
in accordance with Schedule 1.7, allocating the Adjusted Purchase Price. The
Buyer and the Seller acknowledge that the Allocation Schedule will reflect the
fair market value of the Acquired Assets and the covenant not to compete
contained in Article IX as of the Closing Date.

             (b) The Parties agree to act in accordance with the allocations
contained in the Allocation Schedule in any Tax Returns or filings (including
any forms or reports required to be filed pursuant to Section 1060 of the Code
or any provisions of local, state, foreign or other Tax law ("1060 Forms")) or
during the course of any Tax audit or litigation proceedings, and to cooperate
in the preparation of any 1060 Forms and to file such 1060 Forms in the manner
required by applicable law.

         1.8 Contingent Purchase Price. The Contingent Purchase Price Amount
shall be determined in accordance with the provisions set forth in Exhibit B
attached hereto, which provisions are incorporated by reference into this
Agreement in their entirety. References to any covenants or agreements in this
Agreement shall include any covenants or agreements set forth in Exhibit B. The
Buyer and the Seller each agree to their respective obligations set forth in
Exhibit B. The Buyer and the Seller agree that, to the maximum extent permitted
by law, the Contingent Purchase Price Amount and any payments to the Seller from
the Escrow Account, including any interest or other income earned on the Escrow
Account, shall be treated for all Tax purposes as contingent payments reportable
under the installment sale method, subject to an interest component determined
under applicable provisions of the Code, and will be allocable solely to Class
VII assets in accordance with Schedule 1.7.

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

         The Seller represents and warrants to the Buyer that the statements
contained in this Article II are true and correct as of the date hereof, except
as set forth in the Disclosure Schedule provided by the Seller to the Buyer on
the date hereof (the "Disclosure Schedule"). The Disclosure Schedule shall be
arranged in sections and subsections corresponding to the numbered and lettered
sections and subsections contained in this Article II. The disclosures in any
section or subsection of the Disclosure Schedule shall qualify other sections
and subsections in this Article II to the extent it is clear from a reading of
the disclosure that such disclosure is applicable to such other sections and
subsections. The inclusion of any information in the Disclosure Schedule (or any
update thereto) shall not be deemed to be an admission or acknowledgment, in and
of itself, that such information is required by the terms hereof to be

<PAGE>

disclosed, is material to the Seller, has resulted in or would result in a
Seller Material Adverse Effect (as defined in Section 2.1), or is outside the
ordinary course of business. For purposes of this Agreement, the phrase "to the
knowledge of the Seller" or any phrase of similar import shall mean and be
limited to the knowledge of the individuals listed in the Disclosure Schedule
after inquiry by such individuals of their direct reports listed in the
Disclosure Schedule.

         2.1 Organization, Qualification and Corporate Power.

             (a) The Seller is a corporation duly organized, validly existing
and in good standing under the laws of the Commonwealth of Massachusetts and is
duly qualified to conduct business under the laws of each jurisdiction where the
character of the properties owned, leased or operated by it or the nature of its
activities makes such qualification necessary, except for any such failure that
is not material to the Seller. The Seller has all requisite corporate power and
authority to carry on the business in which it is now engaged and to own and use
the properties now owned and used by it. For purposes of this Agreement, "Seller
Material Adverse Effect" means any change, effect or circumstance that (i) is
materially adverse to the financial condition or results of operations of the
Seller as a whole (other than changes, effects or circumstances that are the
result of economic factors affecting the economy as a whole or that are the
result of factors generally affecting the industry or specific markets in which
the Seller competes), or (ii) materially impairs the ability of the Seller to
consummate the transactions contemplated by this Agreement; provided, however,
that a "Seller Material Adverse Effect" shall not include any adverse change,
effect or circumstance (I) arising out of or resulting primarily from actions
contemplated by the Parties in connection with this Agreement, or (II) that is
attributable to the announcement or performance of this Agreement or the
transactions contemplated by this Agreement.

             (b) The Seller has made available to the Buyer correct and complete
copies of its corporate charter and bylaws (each as amended to date). The minute
books (containing the records of meetings of the stockholders and the board of
directors) and the stock record books of the Seller are correct and complete in
all material respects. The Seller is not in default under or in violation of any
provision of its corporate charter or bylaws.

         2.2 Capitalization.

             (a) The capitalization of the Seller is set forth in Section 2.2 of
the Disclosure Schedule. There are no outstanding or authorized options,
warrants, rights, agreements or commitments to which the Seller is a party or
which are binding upon the Seller providing for the issuance, disposition or
acquisition of any shares of capital stock of the Seller. There are no
outstanding or authorized stock appreciation, phantom stock or similar rights
with respect to the Seller. There are no agreements, voting trusts or proxies
with respect to the voting, or registration under the Securities Act of 1933, as
amended (the "Securities Act"), of the Seller.

             (b) The Seller has no subsidiaries.

             (c) The sole shareholder of the Seller is indirectly beneficially
owned by three individuals (one-third each) listed in Section 2.2(c) of the
Disclosure Schedule (the "Beneficial Owners").

<PAGE>

         2.3 Authority. The Seller has all requisite corporate power and
authority to execute and deliver this Agreement and the Ancillary Agreements to
which it will be a party and to perform its obligations hereunder and
thereunder. The execution and delivery by the Seller of this Agreement and such
Ancillary Agreements the consummation by the Seller of the transactions
contemplated hereby and thereby have been validly authorized by all necessary
corporate action on the part of the Seller. This Agreement has been, and all
such Ancillary Agreements will be, validly executed and delivered by the Seller
and, assuming this Agreement and each such Ancillary Agreement constitutes the
valid and binding obligation of the Buyer, constitutes or will constitute a
valid and binding obligation of the Seller, enforceable against the Seller in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other
similar laws relating to or affecting the rights of creditors generally and by
equitable principles, including those limiting the availability of specific
performance, injunctive relief and other equitable remedies and those providing
for equitable defenses.

         2.4 Noncontravention. Subject to compliance with the applicable
requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended (the "Hart-Scott-Rodino Act"), and applicable foreign antitrust or trade
regulation laws, neither the execution and delivery by the Seller of this
Agreement or the Ancillary Agreements to which the Seller will be a party, nor
the consummation by the Seller of the transactions contemplated hereby or
thereby, will:

             (a) conflict with or violate any provision of the charter or bylaws
of the Seller;

             (b) require on the part of the Seller any filing with, or any
permit, authorization, consent or approval of, any Governmental Entity, except
for any filing, permit, authorization, consent or approval which if not obtained
would not be material to the Business;

             (c) conflict with, result in a breach of, constitute (with or
without due notice or lapse of time or both) a default under, result in the
acceleration of obligations under, create in any party the right to terminate or
modify, or require any notice, consent or waiver under, any material contract,
lease, sublease, license, sublicense, franchise, permit, indenture, agreement or
mortgage for borrowed money, instrument of indebtedness or Security Interest (as
defined below) to which the Seller is a party or by which the Seller is bound or
to which any of its assets is subject; or

             (d) violate in any material respect any material order, writ,
injunction or decree specifically naming, or statute, rule or regulation
applicable to, the Seller or any of the Seller's properties or assets.

For purposes of this Agreement, "Security Interest" means any mortgage, pledge,
security interest, encumbrance, charge or other lien (whether arising by
contract or by operation of law), other than (i) mechanic's, materialmen's,
landlord's and similar liens, (ii) liens arising under worker's compensation,
unemployment insurance, social security, retirement and similar legislation,
(iii) liens on goods in transit incurred pursuant to documentary letters of
credit, in each case arising in the ordinary course of business, (iv) liens for

<PAGE>

Taxes not yet due and payable, (v) liens for Taxes which are being contested in
good faith and by appropriate proceedings, (vi) liens relating to capitalized
lease financings that have been entered into in the ordinary course of business,
(vii) liens arising solely by action of the Buyer, and (viii) with respect to
real property only, liens which do not materially and adversely impair the use
or value of the Acquired Assets.

         2.5 Financial Statements. Section 2.5 of the Disclosure Schedule
includes copies of the following financial statements with respect to the
Seller: (a) the audited balance sheet and consolidated statements of income,
cash flows and stockholders' equity as of and for the fiscal years ended
December 31, 2001 and 2000 and (b) the unaudited balance sheet (the "Most Recent
Balance Sheet") and consolidated statement of operations for the eight-month
period ended August 31, 2002 (the "Balance Sheet Date") (collectively, the
"Financial Statements"). The Financial Statements are accurate and complete in
accordance with the books and accounts of the Seller and have been prepared in
accordance with GAAP and the methodologies described in the footnotes thereto
and fairly present, in all material respects, the financial condition and
results of operations and cash flows of the Seller as of the respective dates
thereof and for the periods referred to therein in accordance with such
methodologies; provided, however, that the Financial Statements referred to in
clauses (a) and (b) above value certain fixed assets at their depreciated value
for tax purposes and not at the lower of cost or market, and the Financial
Statements referred to in clause (b) above are subject to year-end adjustments
and do not include footnotes.

         2.6 Absence of Certain Changes. Except as contemplated by this
Agreement, between the Balance Sheet Date and the date of this Agreement, there
have not been any changes in the financial condition or results of operations of
the Seller, except for any changes that would not reasonably be expected to be
material to the Business. Except as contemplated by this Agreement, between the
Balance Sheet Date and the date of this Agreement, the Seller has not taken any
of the following actions (or permitted any of the following events to occur)
with respect to the Seller:

             (a) sold, assigned or transferred any portion of the Acquired
Assets in a single transaction or series of related transactions in an amount in
excess of $50,000, except in the ordinary course of business;

             (b) suffered any extraordinary losses (whether or not covered by
insurance) material to the Seller;

             (c) declared or paid any dividends or made any distributions on the
capital stock or other equity securities of the Seller or redeemed or purchased
any shares of its capital stock or other equity securities of the Seller, except
for dividends, distributions or redemptions paid solely in cash, cash
equivalents and/or other short term liquid investments;

             (d) granted or amended any rights to severance benefits, "stay pay"
or termination pay to any director, officer or other employee of the Seller or
increased benefits payable or potentially payable to any such director, officer
or other employee of the Seller under any previously existing severance
benefits, "stay-pay" or termination pay arrangements, in each case (i) except as
required by law and (ii) except as disclosed and agreed to by the Buyer;

<PAGE>

             (e) made any capital expenditures or commitments therefor in an
amount in excess of $500,000, except in the ordinary course of business or in
accordance with the Seller's capital budget included in Section 2.6(e) of the
Disclosure Schedule;

             (f) acquired any operating business, whether by merger, stock
purchase or asset purchase;

             (g) incurred or guaranteed any indebtedness for borrowed money,
except in the ordinary course of business;

             (h) entered into any employment, compensation or deferred
compensation agreement (or any amendment to any such existing agreement) with
any officer or other employee of the Seller whose annual base salary exceeds
$100,000, except in the ordinary course of business;

             (i) materially amended the terms of any existing Seller Benefit
Plan (as defined in Section 2.17(a)), except as required by law;

             (j) changed its accounting principles, methods or practices, except
in each case to conform to changes in GAAP or applicable local generally
accepted accounting principles; or

             (k) entered into any agreement or commitment with respect to any of
the matters referred to in paragraphs (a) through (j) of this Section 2.6.

         2.7 Undisclosed Liabilities. To the knowledge of the Seller, the Seller
does not have any material liability, except for (a) liabilities shown on the
Most Recent Balance Sheet, (b) liabilities which have arisen since the Balance
Sheet Date in the ordinary course of business, and (c) (i) contractual
liabilities and (ii) other liabilities which arose in the ordinary course, in
each case which are not required by GAAP to be reflected on a balance sheet.

         2.8 Tax Matters.

             (a) The Seller has filed or had filed on its behalf all material
Tax Returns (as defined below) that it was required to file (separately or as
part of a consolidated, combined or unitary group) and all such Tax Returns were
correct and complete in all material respects. The Seller has paid (or had paid
on its behalf) all Taxes (as defined below) that are shown to be due and payable
on any such Tax Returns. The unpaid Taxes (other than any Taxes that constitute
Excluded Liabilities) of the Seller for Tax periods through the Closing Date
will not exceed the amount of Taxes included in the computation of the Kellwood
Closing Net Worth Amount as shown in the Final Closing Statement. All Taxes
(other than any Taxes that constitute Excluded Liabilities) that the Seller is
or was required by law to withhold or collect have been duly withheld or
collected and, to the extent required, have been paid to the proper Governmental
Entity. For purposes of this Agreement, "Taxes" means all taxes, including
without limitation income, gross receipts, ad valorem, value-added, excise, real
property, personal property, sales, use, transfer, withholding, employment,
social security charges and franchise taxes imposed by the United States of
America or any state, local or foreign government, or any agency thereof, or
other political subdivision of the United States or any such government, and any

<PAGE>

interest, penalties, assessments or additions to tax resulting from,
attributable to or incurred in connection with any tax or any contest or dispute
thereof. For purposes of this Agreement, "Tax Returns" means all reports,
returns, declarations, statements, forms or other information required to be
supplied to any local, state, federal or foreign taxing authority in connection
with Taxes.

             (b) No examination or audit of any Tax Return of the Seller (or of
any consolidated, combined or unitary group for a period for which the
activities of the Seller were included on the Tax Return of such group) by any
Governmental Entity is currently in progress. Neither the Seller (nor the
members of any consolidated, combined or unitary group with which the Seller has
filed group Tax Returns) has been notified in writing by any jurisdiction that
the jurisdiction believes that the Seller was required to file any Tax Return
(or the consolidated, combined or unity group with respect to which the Seller
filed Tax Returns for any period was required to file any Tax Return for such
period) that was not filed.

             (c) None of the Acquired Assets is subject to any lien for Taxes
that would constitute a Security Interest.

             (d) At all times during the period commencing June 1, 1983 and
continuing through December 29, 1999, for federal income tax purposes, the
Seller was validly treated as an "S" corporation within the meaning of Section
1361(a) of the Code and was validly treated in a similar manner for purposes of
the income tax laws of all states (other than Massachusetts) in which it has
been subject to taxation.

             (e) At all times on and after December 30, 1999, for federal income
tax purposes, the Seller has been validly treated as a "qualified subchapter S
subsidiary" within the meaning of Section 1361(b)(3)(B) of the Code.

         2.9 Tangible Personal Property. The Seller has good title to, a valid
leasehold interest in or a valid license or right to use, all of the tangible
personal property reflected on the Most Recent Balance Sheet (other than
property sold, consumed or otherwise disposed of in the ordinary course of
business since the Balance Sheet Date), free and clear of all Security
Interests. No equipment or tooling owned by the Seller is in the possession of
any of the Seller's suppliers.

         2.10 Owned Real Property. The Seller does not own any real property.

         2.11 Leased Real Property. Section 2.11 of the Disclosure Schedule
lists all real property leased or subleased to the Seller (the "Leased Real
Property"). The Seller has made available to the Buyer complete and accurate
copies of the leases and subleases (as amended to date) listed therein (the
"Leases"). With respect to each such Lease:

             (a) the Lease is a valid and binding obligation of the Seller and,
to the knowledge of the Seller, each other party to such Lease;

             (b) neither the Seller nor, to the knowledge of the Seller, any
other party to the Lease is in material breach or default and, to the knowledge
of the Seller, no event has occurred which, with notice or lapse of time or
both, would constitute a material breach or default or permit termination,
modification or acceleration thereunder; and

<PAGE>

             (c) the Seller has not assigned, transferred, conveyed, mortgaged,
deeded in trust or encumbered any interest in the leasehold or subleasehold of
the Lease.

         2.12 Intellectual Property.

             (a) Section 2.12(a) of the Disclosure Schedule lists all patents,
patent applications, registered trademarks, trademark applications, domain names
and copyright registrations that are owned by the Seller (the "Intellectual
Property"). To the knowledge of the Seller, the Seller owns, or is licensed or
otherwise possesses valid rights to use, the Intellectual Property.

             (b) The Seller has not been named in any pending suit, action or
proceeding which involves a claim of infringement of any patents, trademarks,
trade names, service marks or copyrights of any third party. To the knowledge of
the Seller, the business of the Seller as presently conducted does not infringe
any valid patents, trademarks, trade names, service marks or copyrights of any
third party.

             (c) The Seller has performed in all material respects the
obligations required to be performed by it under the terms of any agreement
pursuant to which the Seller has rights in any Intellectual Property, and
neither the Seller nor, to the knowledge of the Seller, any third party is in
material default under any such agreement.

             (d) Other than rights and licenses granted in the ordinary course
of business, the Seller has not granted to any third party any license or right
to the commercial use of any of the Intellectual Property.

         2.13 Contracts.

             (a) Section 2.13(a) of the Disclosure Schedule lists all of the
following contracts or agreements to which the Seller is a party as of the date
of this Agreement (excluding Leases):

                 (i) any agreement (or group of related agreements with the same
party) for the lease of personal property from or to third parties providing for
lease payments the remaining unpaid balance of which is in excess of $50,000;

                 (ii) any agreement (or group of related agreements with the
same party) for the purchase of products or services under which the undelivered
balance of such products and services is in excess of $50,000, other than
agreements executed in the ordinary course of business;

                 (iii) any agreement (or group of related agreements with the
same party) which involves a payment to be made to the Seller in excess of
$50,000, either pursuant to a contract with a customer of the Seller or pursuant
to any other contract or agreement for the sale of goods and services outside of
the ordinary course of business;

                 (iv) any agreement for the acquisition by the Seller of any
operating business, whether by merger, stock purchase or asset purchase;

<PAGE>

                 (v) any agreement establishing a partnership or joint venture;

                 (vi) any agreement (or group of related agreements with the
same party) under which it has created, incurred, assumed or guaranteed (or may
create, incur, assume or guarantee) indebtedness the outstanding balance of
which is more than $50,000 or under which it has imposed a Security Interest on
any of its material assets, tangible or intangible, except for Security
Interests relating to any capitalized lease financing;

                 (vii) any agreement that prohibits the Seller from freely
engaging in business anywhere in the world;

                 (viii) any agreement involving the Seller's executive officers,
directors or employees providing annual base annual compensation at a rate in
excess of $100,000; and

                 (ix) any severance, "stay pay" or termination agreement with
any officer or other employee of the Seller;

provided, however, that no agreement referred to in clauses (i) through (ix)
above need be disclosed unless the Seller currently has, or may in the future
have, any rights or obligations thereunder.

             (b) The Seller has made available to the Buyer a complete and
accurate copy of each contract and agreement listed in Section 2.13 of the
Disclosure Schedule (the "Material Contracts"). Each Material Contract is a
valid and binding obligation of the Seller and, to the knowledge of the Seller,
of each other party thereto, except for any such failure that is not material.

         2.14 Entire Business. Except for the Excluded Assets and any Deferred
Items, the Acquired Assets are, when utilized by a labor force substantially
similar to that employed by the Seller on the date hereof, adequate to conduct
the business of the Seller in all material respects as currently conducted.

         2.15 Litigation. Section 2.15 of the Disclosure Schedule lists, as of
the date of this Agreement, each (a) judgment, order, decree, stipulation or
injunction of any Governmental Entity specifically naming the Seller and (b)
action, suit or proceeding by or before any Governmental Entity to which the
Seller is a party.

         2.16 Employment Matters.

             (a) Contracts. Section 2.16(a) of the Disclosure Schedule contains
an accurate and complete list of all material agreements, arrangements or
understandings, written or oral, with officers, directors and employees (having
an annual salary in excess of $100,000) of Seller, regarding services to be
rendered, terms and conditions of employment, and compensation (the "Employment
Contracts").

             (b) Compensation. Section 2.16(b) of the Disclosure Schedule
contains an accurate and complete list of all employees of Seller, including
name, title or position (with respect to those employees earning in excess of
$80,000 per year), the present annual compensation (including bonuses,

<PAGE>

commissions and deferred compensation), years of service and any interests in
any incentive compensation plan (other than the Seller's 401(k) Plan). Section
2.16(b) of the Disclosure Schedule contains an accurate and complete list of
each employee who may become entitled to receive supplementary retirement
benefits or allowances, whether pursuant to a contractual obligation or
otherwise, and the estimated amounts of the payments. Since December 31, 2001,
except as disclosed in Section 2.16(b) of the Disclosure Schedule, the Seller
has not (i) approved, paid, or made any accrual or arrangement for the payment
of any material amount of bonuses or special compensation of any kind, including
any severance or termination pay, to any present or former officer or employee,
(ii) made any general wage or salary increases (other than any increases in
connection with annual reviews) or (iii) materially increased or altered any
other benefits or insurance provided to any employee.

             (c) Disputes. There are no claims pending or threatened in writing
involving any group of employees, on the one hand, and the Seller, on the other
hand. Since January 1, 2002, the Seller has not suffered or sustained any work
stoppage and no work stoppage is threatened in writing. To the Seller's
knowledge, no union organizing or election activities involving any nonunion
employees of Seller are in progress or threatened.

             (d) Compliance. The Seller has complied in all material respects
with all applicable laws, statutes, codes, ordinances, licensing requirements,
rules and regulations relating to the employment of labor, including provisions
relating to wages, hours, equal opportunity, record keeping, occupational health
and safety, severance, collective bargaining and the payment of social security
and other taxes.

             (e) WARN Act. The Seller is in material compliance with the Worker
Adjustment and Retraining Notification Act (the "WARN Act", codified at 29 USC
ss.2101 et seq.), including the prompt and correct furnishing of all notices
required to be given thereunder in connection with any "plant closing" or "mass
layoff" to "affected employees", "representatives" and any state dislocated
worker unit and local government officials. No reduction in the notification
period under the WARN Act is being relied upon by the Seller. Section 2.16(e) of
the Disclosure Schedule contains an accurate and complete list of all employees
terminated (except for cause, voluntarily departure or normal retirement), laid
off or subjected to a reduction of more than 50% in hours or work during the two
full months and the partial month preceding the date of this Agreement.

             (f) Officers, Director and Key Employees. Section 2.16(f) of the
Disclosure Schedule contains (i) all wage and salary increases above 8%, bonuses
and increases above 5% in any other direct or indirect compensation received by
officers, directors or the Controller of the Seller since December 31, 2001,
(ii) any payments or commitments of the Seller to pay any severance or
termination pay to any such persons, (iii) any accrual for, or any commitment or
agreement by the Seller to pay, such increases, bonuses or pay, and (iv) any
bonuses or payment that would be payable to any employee, consultant, agent or
other representative of the Seller (A) as an inducement for such person to not
terminate his or her relationship with the Business or (B) as a result of the
transactions contemplated hereby.

         2.17    Employee Benefits.

<PAGE>

             (a) Section 2.17(a) of the Disclosure Schedule contains a complete
and accurate list of all Employee Benefit Plans (as defined below) maintained,
or contributed to, by the Seller (the "Seller Benefit Plans") . For purposes of
this Agreement, "Employee Benefit Plan" means (i) any "employee pension benefit
plan" (as defined in Section 3(2) of the Employee Retirement Income Security Act
of 1974, as amended ("ERISA")) other than a "multiemployer plan" (as defined in
Section 4001(a)(3) of ERISA) (a "Multiemployer Plan"), (ii) any "employee
welfare benefit plan" (as defined in Section 3(1) of ERISA), and (iii) to the
extent applicable to more than one employee, any other written or oral plan,
agreement or arrangement involving compensation, including without limitation
insurance coverage, severance benefits, disability benefits, deferred
compensation, bonuses, stock options, stock purchase, phantom stock, stock
appreciation or other forms of incentive compensation or post-retirement
compensation, or fringe benefits, but excluding any Employee Benefit Plan
required to be maintained or contributed to under foreign law. For purposes of
this Agreement, "ERISA Affiliate" means any entity which is a member of (i) a
controlled group of corporations (as defined in Section 414(b) of the Code),
(ii) a group of trades or businesses under common control (as defined in Section
414(c) of the Code), or (iii) an affiliated service group (as defined under
Section 414(m) of the Code or the regulations under Section 414(o) of the Code),
any of which includes the Seller. Complete and accurate copies of all Seller
Benefit Plans and all material related trust agreements, insurance contracts and
summary plan descriptions have been made available to the Buyer.

             (b) The Seller Benefit Plans that are intended to be qualified
under Section 401(a) of the Code have received determination letters from the
Internal Revenue Service to the effect that such Seller Benefit Plans are
qualified and the plans and the trusts related thereto are exempt from federal
income Taxes under Sections 401(a) and 501(a), respectively, of the Code, or the
period for obtaining such a determination letter has not yet closed.

             (c) Neither the Seller nor any ERISA Affiliate has ever maintained
or been required to contribute to any Employee Benefit Plan subject to Title IV
of ERISA or to any Multiemployer Plan.

             (d) No act or omission has occurred and no condition exists with
respect to any Seller Benefit Plan maintained by the Seller or any ERISA
Affiliate that would subject the Seller or the Buyer to any material fine,
penalty, Tax or liability of any kind imposed under ERISA or the Code (other
than liabilities for benefits accrued under Seller Benefit Plans for Employees).

             (e) There are no material unfunded obligations under any Seller
Benefit Plan providing welfare benefits after termination of employment to any
Employee (or to any beneficiary of any such employee), excluding continuation of
health coverage required to be continued under Section 4980B of the Code or
other similar applicable laws.

<PAGE>

         2.18    Environmental Matters.

             (a) For purposes of this Agreement, the following terms have the
meanings provided below.

                 (i) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping, or
disposing into the Environment (including the abandonment or discarding of
barrels, containers, and other closed receptacles containing any Materials of
Environmental Concern).

                 (ii) "Environment" means any surface water, ground water,
drinking water supply, land surface or subsurface strata, or ambient air.

                 (iii) "Materials of Environmental Concern" means any hazardous
substance, pollutant or contaminant, as those terms are defined under the
federal Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended ("CERCLA"), solid waste and hazardous waste, as those terms are
defined in the Federal Resource Conservation and Recovery Act (as in effect on
the date of this Agreement) and oil, petroleum and petroleum products.

                 (iv) "Environmental Law" means any foreign, federal, state,
provincial, or municipal statute, rule or regulation as in effect on the Closing
Date relating to the protection of the Environment or occupational health and
safety, including, without limitation, any statute or regulation pertaining to
(A) the presence, manufacture, processing, use, treatment, storage, disposal,
transportation, handling or generation of Materials of Environmental Concern;
(B) air, water and noise pollution; (C) groundwater and soil contamination; or
(D) the Release or threatened Release of Materials of Environmental Concern to
the Environment.

                 (v) "Environmental Matters" means any legal obligation or
liability arising under Environmental Law.

                 (vi) "Off-Site Liabilities" means Environmental Matters
resulting from any transportation, treatment, storage, disposal or Release, or
the arrangement therefor, in connection with the Seller of any Materials of
Environmental Concern, to or at any property, location, site or facility other
than a Leased Real Property.

             (b) To the knowledge of the Seller, except as described or
identified in Section 2.18(b) of the Disclosure Schedule or in a document listed
in Section 2.18(b) of the Disclosure Schedule:

                 (i) the Seller's operations at the Leased Real Property are in
compliance in all material respects with applicable Environmental Laws;

                 (ii) there is no pending civil or criminal litigation, written
notice of violation or formal administrative proceeding, investigation or claim
that is material relating to any Environmental Law involving any of the Leased
Real Property or any property formerly owned or operated by the Seller; and

<PAGE>

                 (iii) the Seller has those material permits, licenses and
approvals required under Environmental Law to operate the Leased Real Property
as currently operated by the Seller; and

                 (iv) no Materials of Environmental Concern have been Released
by the Seller at any Leased Real Property in violation of applicable
Environmental Law, except for any such Release that that is not material.

             (c) The Parties agree that the only representations and warranties
of the Seller herein as to any Environmental Matters or any other obligation or
liability with respect to Matters of Environmental Concern are those contained
in this Section 2.18. Without limiting the generality of the foregoing, the
Buyer specifically acknowledges that the representations and warranties
contained in Sections 2.15, 2.19 and 2.20 do not relate to Environmental
Matters.

         2.19 Legal Compliance. The Seller is in compliance in all material
respects with all applicable laws (including rules and regulations thereunder)
of any federal, state or foreign government, or any Governmental Entity,
currently in effect. The Seller has not received written notice of any pending
material action, suit, proceeding, hearing, investigation, claim, demand or
notice alleging any failure to so comply.

         2.20 Permits. Section 2.20 of the Disclosure Schedule lists all
material permits, licenses, franchises or authorizations from any Governmental
Entity issued to or held by the Seller (collectively, the "Permits"). To the
knowledge of the Seller, (a) each Permit listed in Section 2.20 of the
Disclosure Schedule is in full force and effect and the Seller is not in
material violation of or material default under any Permit and (b) no suspension
or cancellation of any such Permit has been threatened in writing.

         2.21 Accounts Receivable. Section 2.21 of the Disclosure Schedule
contains an accurate and complete aging of all outstanding accounts receivable
of the Seller as of November 30, 2002 (the "Accounts Receivable"). All
outstanding accounts receivable reflected on the Financial Statements arose in
the ordinary course of business as a result of bonafide transactions and will be
collectible (or insured) in full, net of appropriate reserves. Except as set
forth in Section 2.21 of the Disclosure Schedule, no receivables are subject to
prior assignment, claim, lien or security interest.

         2.22 Banking Relationships and Investments. Section 2.22 of the
Disclosure Schedule contains an accurate and complete list of all banks and
financial institutions in which the Seller has an account, deposit, safe-deposit
box, or lock box related to the Business, including the names of all persons
authorized to draw on those accounts or deposits, or to obtain access to such
boxes. Section 2.22 of the Disclosure Schedule contains an accurate and complete
list of all certificates of deposit, debt or equity securities and other
investments owned, beneficially or of record, by the Seller.

         2.23 Inventory. All inventories reflected on the Financial Statements
delivered to Buyer are properly valued at the lower of cost or market value in
accordance with GAAP as consistently applied with the Seller's prior annual
financial statements.

<PAGE>

         2.24 Transactions with Affiliates. Except as set forth in Section 2.24
of the Disclosure Schedule, since January 1, 2002, there has not been any
dividend or other distribution of assets by the Seller. Except as set forth in
Section 2.24 of the Disclosure Schedule, no Affiliate of the Seller:

             (a) owns, directly or indirectly, any debt, equity or other
interest or investment in any corporation, association or other entity which is
a competitor, lessor, lessee, customer, supplier or distribution sales agent of
the Business;

             (b) has any cause of action or other claim whatsoever against or
owes any material amount to the Seller, or is owed any material amount by the
Seller;

             (c) has any interest in or owns any property or right used in the
conduct of the Business;

             (d) is a party to any contract, lease, agreement, arrangement or
commitment used in the Business; or

             (e) has received from or furnished to the Seller any goods or
services (with or without consideration) since December 31, 2001.

         The term "Affiliate" shall mean, with respect to any person, any
individual or entity which controls, or is controlled by, or is under common
control with such person.

         2.25 Insurance. Section 2.25 of the Disclosure Schedule contains an
accurate and complete list of all binders, policies of insurance, self insurance
programs or fidelity bonds ("Insurance") maintained by the Seller or in which
the Seller is a named insured. To the Seller's knowledge, there are no pending
or asserted claims against any Insurance as to which any insurer has denied
liability and there are no claims under any Insurance that have been disallowed
or improperly filed. Section 2.25 of the Disclosure Schedule sets forth the
claims experience for the last two full fiscal years and the interim period
through the date hereof with respect to the Business (both insured and
self-insured). No notice of cancellation or non-renewal with respect to, or
material increase of premium for, any insurance has been received by the Seller.

         2.26 Customers and Suppliers.

             (a) All sales contracts and orders with customers and suppliers
existing as of the Closing Date were entered into by or on behalf of the Seller
and were entered into in the ordinary course of business for usual quantities.
Section 2.26 of the Disclosure Schedule sets forth an accurate and complete list
of the 10 largest customers and 10 largest vendors of the Business, determined
on the basis of revenues from items sold (with respect to customers) or costs of
items purchased (with respect to suppliers) for each of the fiscal years ended
December 31, 2001 and December 31, 2000. The Seller is not aware that any
customer or supplier listed in Section 2.26 of the Disclosure Schedule will
cease to do business with the Buyer after the consummation of any transactions
contemplated hereby. Since December 31, 2001, there has been no cancellation of
backlogged orders in excess of the average rate of cancellation prior to that
date.

<PAGE>

             (b) Neither the Seller nor any of its officers or employees has,
directly or indirectly, given or agreed to give any rebate, gift or similar
benefit to any supplier, customer, distributor, broker, governmental employee or
other person, who was, is or may be in a position to help or hinder the business
(or assist in connection with any actual or proposed transaction) which could
subject the Seller or the Buyer to any material damage or penalty in any civil,
criminal or governmental litigation or proceeding.

             (c) Except as set forth in Section 2.26(c) of the Disclosure
Schedule, prior to the announcement of the transactions contemplated by this
Agreement, (i) no person listed therein has threatened in writing to cancel or
otherwise terminate the relationship of the person with Seller within the last
12 months, and (ii) no person during the last twelve months has decreased
materially or threatened in writing to decrease or limit materially, its
supplies to the Seller or its purchase of the Seller's products. Except as set
forth in Section 2.26(c) of the Disclosure Schedule, there is no purchase
commitment which provides that any supplier will be the exclusive supplier of
the Seller. There is no material purchase commitment requiring the Seller to
purchase the entire output of a supplier.

         2.27 Product Warranty. The Seller manufactured, marketed, distributed,
shipped and sold its product in material compliance with all applicable laws.
The Seller's products are not subject to any express warranties. The annual
dollar value of product warranty experience for each of the last three (3) years
was under $10,000 per year.

         2.28 Product Liability. Section 2.28 of the Disclosure Schedule
contains an accurate and complete list of all existing claims, for the three (3)
years prior to the date hereof, arising from or alleged to arise from any injury
to person or property or economic damage as a result of the ownership,
possession or use of any product manufactured, marketed, distributed, shipped or
sold prior to the Closing Date. There have been no product recalls, and none has
been threatened in writing or is pending, and to the knowledge of the Seller, no
report has been filed or is required to have been filed with respect to any
products of the Business under the Consumer Products Safety Act, as amended, or
under any other law, rule or regulation.

         2.29 No Broker. The Seller has not retained any broker, finder or agent
or incurred any liability or obligation for any brokerage fees, commissions, or
finders fees with respect to this Agreement or the transaction contemplated
hereby.

                                  ARTICLE III
                   REPRESENTATIONS AND WARRANTIES OF THE BUYER

         The Buyer represents and warrants to the Seller that the statements
contained in this Article III are true and correct as of the date hereof. For
purposes of this Agreement, the phrase, "to the knowledge of the Buyer" or any
phrase of similar import shall mean and be limited to the actual knowledge of
executive officers of the Guarantor after inquiry of their direct reports.

         3.1 Organization. The Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the state of Delaware.

         3.2 Authority. The Buyer has all requisite corporate power and
authority to execute and deliver this Agreement and the Ancillary Agreements to

<PAGE>

which it will be a party and to perform its obligations hereunder and
thereunder. The execution and delivery by the Buyer of this Agreement and such
Ancillary Agreements and the consummation by the Buyer of the transactions
contemplated hereby and thereby have been validly authorized by all necessary
corporate action on the part of the Buyer. This Agreement has been, and such
Ancillary Agreements will be, validly executed and delivered by the Buyer and,
assuming this Agreement and each such Ancillary Agreement constitutes the valid
and binding obligation of the Seller, constitutes or will constitute a valid and
binding obligation of the Buyer, enforceable against the Buyer in accordance
with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, fraudulent transfer, moratorium or other similar
laws relating to or affecting the rights of creditors generally and by equitable
principles, including those limiting the availability of specific performance,
injunctive relief and other equitable remedies and those providing for equitable
defenses.

         3.3 Capitalization of Guarantor.

             (a) The authorized capital stock of the Guarantor consists of
50,000,000 shares of common stock, par value $.01 per share (the "Kellwood
Common Stock"), and 500,000 shares of preferred stock, par value $.01 per share
(the "Preferred Stock"). As of January 21, 2003, there were (i) 25,575,144
shares of Kellwood Common Stock issued and outstanding, all of which are validly
issued, fully paid and nonassessable and free of preemptive rights, (ii)
2,032,053 shares of Kellwood Common Stock reserved for issuance in connection
with equity awards granted or permitted to be granted pursuant to the
Guarantor's stock option plans or upon the exercise of stock options granted or
permitted to be granted pursuant to the Guarantor's stock option plans, and
(iii) 6,666,697 shares of Kellwood Common Stock are held in treasury. As of the
date hereof, no shares of Preferred Stock were issued and outstanding. The
Guarantor owns directly all of the authorized and outstanding shares of capital
stock of the Buyer and there are no options, warrants, convertible securities,
subscriptions, stock appreciation rights, phantom stock plans or stock
equivalents or other rights, agreements, arrangements or commitments (contingent
or otherwise) of any character issued or authorized by the Buyer relating to the
issued or unissued capital stock of the Buyer.

             (b) The shares of Kellwood Common Stock to be issued to the Seller
pursuant to Section 1.2 (the "Consideration Shares") will, when issued in
accordance with the provisions of this Agreement, be validly issued, fully paid
and nonassessable and will have been issued in compliance with all applicable
securities laws and regulations and applicable contracts.

             (c) When issued in accordance with this Agreement, (i) all of the
Consideration Shares shall be free from any restriction on transfer other than
restrictions arising under the Securities Act and any similar state securities
laws, (ii) none of the certificates representing ownership of the Consideration
Shares shall bear any restrictive legends, and (iii) neither the Guarantor nor
the Buyer shall issue instructions to the transfer agent for the Kellwood Common
Stock contrary to the foregoing, subject, in the case of the preceding clauses
(ii) and (iii), to any legends required pursuant to Rule 145 under the
Securities Act.

         3.4 Noncontravention. Subject to compliance with the applicable
requirements of the Hart-Scott-Rodino Act and applicable foreign antitrust or
trade regulation laws, neither the execution and delivery by the Buyer of this
Agreement or the Ancillary Agreements to which the Buyer will be a party, nor

<PAGE>

the consummation by the Buyer of the transactions contemplated hereby or
thereby, will:

             (a) conflict with or violate any provision of the charter or bylaws
of the Buyer;

             (b) require on the part of the Buyer or the Guarantor any filing
with, or permit, authorization, consent or approval of, any Governmental Entity,
except for any filing, permit, authorization, consent or approval which if not
obtained or made would not reasonably be expected to result in a Buyer Material
Adverse Effect (as defined below);

             (c) conflict with, result in a breach of, constitute (with or
without due notice or lapse of time or both) a default under, result in the
acceleration of obligations under, create in any party any right to terminate or
modify, or require any notice, consent or waiver under, any contract or
agreement to which the Buyer is a party or by which the Buyer is bound, except
for (i) any conflict, breach, default, acceleration or right to terminate or
modify that would not reasonably be expected to result in a Buyer Material
Adverse Effect, (ii) any notice, consent or waiver the absence of which would
not reasonably be expected to result in a Buyer Material Adverse Effect, or
(iii) the Buyer's Credit Facility, which approval thereunder has been obtained
and delivered to the Seller; or

             (d) violate any order, writ, injunction or decree specifically
naming, or statute, rule or regulation applicable to, the Buyer or any of its
properties or assets, except for any violation that would not reasonably be
expected to result in a Buyer Material Adverse Effect.

For purposes of this Agreement, "Buyer Material Adverse Effect" means any
change, effect or circumstance that (i) is materially adverse to the financial
condition or results of operations of the Guarantor as a whole (other than
changes, effects or circumstances that are the result of economic factors
affecting the economy as a whole or that are the result of factors generally
affecting the industry or specific markets in which the Guarantor competes) or
(ii) materially impairs the ability of the Buyer or the Guarantor to consummate
the transactions contemplated by this Agreement; provided, however, that a
"Buyer Material Adverse Effect" shall not include any adverse change, effect or
circumstance (I) arising out of or resulting primarily from actions contemplated
by the Parties in connection with this Agreement, or (II) that is attributable
to the announcement or performance of this Agreement or the transactions
contemplated by this Agreement.

         3.5 Compliance. Except as set forth in the SEC Reports (as defined in
Section 3.6), each of the Guarantor and its subsidiaries (i) is in compliance
with all laws applicable to the Guarantor or any of its subsidiaries or by which
any property or asset of the Guarantor or any of its subsidiaries is bound or
affected, and (ii) is not in default or violation of any notes, bonds,
mortgages, indentures, contracts, agreements, leases, licenses, permits,
franchises, or other instruments or obligations to which the Guarantor or any of
its subsidiaries is a party or by which the Guarantor or any of its subsidiaries
or any property or asset of the Guarantor or any of its subsidiaries is bound or
affected, except for any such noncompliance, conflicts, defaults or violations
pursuant to (i) or (ii) above that would not, individually or in the aggregate,
reasonably be expected to have a Buyer Material Adverse Effect.

<PAGE>

         3.6 SEC Reports and Financial Statements.

             (a) The Guarantor has filed all forms, reports and documents
required to be filed by it with the Securities and Exchange Commission (the
"SEC") since January 30, 2002 (collectively, together with all financial
statements included or incorporated by reference therein, the "SEC Reports").
All SEC Reports (other than the "Statements Under Oath of Principal Executive
Officer and Principal Financial Officer Regarding Facts and Circumstances
Relating to Exchange Act Filings" filed with the SEC on August 29, 2002) have
been filed electronically via the SEC's EDGAR filing system. The SEC Reports (i)
were prepared, in all material respects, in accordance with the applicable
requirements of the Securities Act and the Exchange Act of 1934, as amended (the
"Exchange Act"), as the case may be, and the rules and regulations thereunder
and (ii) did not at the time they were filed contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. None of the
Guarantor's subsidiaries is required to file any form, report or other document
with the SEC.

             (b) Each of the consolidated financial statements (including, in
each case, any notes thereto) contained in the SEC Reports complies as to form
in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto and was prepared
in accordance with GAAP applied on a consistent basis throughout the periods
indicated (except as may be indicated in the notes thereto or, in the case of
unaudited statements, as permitted by Rule 10-01 of Regulation S-X promulgated
by the SEC) and each fairly presented in all material respects (subject to, in
the case of the unaudited statements, to normal, recurring audit adjustments,
none of which are material) the consolidated financial position, results of
operations, stockholders' equity and cash flows of the Guarantor and its
subsidiaries at the respective dates thereof and for the respective periods
indicated therein.

             (c) At the date of the most recent audited financial statements of
the Guarantor included in the SEC Reports, neither the Guarantor nor any of its
subsidiaries had, and since such date neither the Guarantor nor any of its
subsidiaries has incurred, any liabilities or obligations of any nature (whether
accrued, absolute, contingent, determinable or otherwise) which, individually or
in the aggregate, would be required to be disclosed in a balance sheet (or the
footnotes thereto) of the Guarantor prepared in accordance with GAAP except
liabilities expressly incurred in connection with the transactions contemplated
by this Agreement and liabilities that have not had and would not reasonably be
expected to have, individually or in the aggregate, a Buyer Material Adverse
Effect. Except as set forth in the SEC Reports, since January 30, 2002, there
has not been any material change in accounting methods, principles or practices
(or any disagreement with the Company's independent public accountants with
respect to such methods, principles or practices) employed by the Guarantor
(except insofar as such change may be required by a change in GAAP).

             (d) The Guarantor's registration statement on Form S-4 filed with
the SEC on October 3, 2002 (Commission File No. 333-100297) (the "Form S-4") has
been declared effective by the SEC and no stop order suspending the
effectiveness of the Form S-4 has been issued and no proceeding for that purpose
has been initiated or threatened in writing by the SEC or its staff.

<PAGE>

             (e) Since January 1, 2003, the Guarantor has not announced publicly
or declared any dividends payable with respect to the Kellwood Common Stock or
set any record dates with respect to any such dividends.

             (f) Neither the Buyer nor any affiliates of the Buyer has provided
to the Seller or any affiliates of the Seller any material, non-public
information relating to the Buyer and/or any of its affiliates.

         3.7 Information Supplied. None of the information supplied by or on
behalf of the Guarantor or the Buyer specifically for inclusion or incorporation
by reference in the Form S-4 or the prospectus included in the Form S-4 (the
"Base Prospectus") contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in order to
make the statements made therein, in light of the circumstances under which they
were made, not misleading.

         3.8 Litigation. Except in each case as disclosed in the SEC Reports,
there are no investigations, actions, suits, claims or legal, administrative or
arbitratorial proceedings pending or, to the knowledge of the Buyer, threatened
against the Guarantor or any of its subsidiaries and there are no judgments,
orders, injunctions, decrees, stipulations or awards (whether entered by a
court, administrative agency, or by arbitration), against or relating to the
Guarantor or any of its subsidiaries, which, if adversely determined, would
reasonably be expected to have a Buyer Material Adverse Effect.

         3.9 Financing. The Buyer has, and at the Closing will have, sufficient
sources of financing in order to consummate the transactions contemplated by the
Agreement and to fulfill its obligations hereunder, including without limitation
payment to the Seller of the Purchase Price at the Closing.

         3.10 Solvency. Immediately after giving effect to the transactions
contemplated by this Agreement and the closing of any financing to be obtained
by the Guarantor or the Buyer or any of their Affiliates in order to effect the
transactions contemplated by this Agreement, each of the Guarantor and the Buyer
shall be able to pay its debts as they become due and shall own property having
a fair saleable value greater than the amounts required to pay its debts
(including a reasonable estimate of the amount of all contingent liabilities).
Immediately after giving effect to the transactions contemplated by this
Agreement and the closing of any financing to be obtained by the Guarantor or
the Buyer or any of their Affiliates in order to effect the transactions
contemplated by this Agreement, each of the Guarantor and the Buyer shall have
adequate capital to carry on its business. No transfer of property is being made
and no obligation is being incurred in connection with the transactions
contemplated by this Agreement and the closing of any financing to be obtained
by the Guarantor or the Buyer or any of their Affiliates in order to effect the
transactions contemplated by this Agreement with the intent to hinder, delay or
defraud either present or future creditors of the Buyer.

         3.11 Measurement Period. At all times from the period covering five (5)
trading days prior to the first day of the Measurement Period through the
Closing Date, all of the representations and warranties of the Buyer set forth
in Sections 3.3 through 3.10 hereof shall be true and correct without taking
into account any SEC Reports filed during the Measurement Period, the 5-day

<PAGE>

period preceding the Measurement Period and the period after the Measurement
Period through the Closing Date.

         3.12 Due Diligence by the Buyer. The Buyer acknowledges that it has
conducted to its satisfaction an independent investigation of the financial
condition, results of operations, assets, liabilities, properties and projected
operations of the Seller and, in making its determination to proceed with the
transactions contemplated by this Agreement, the Buyer has relied solely on the
results of its own independent investigation and the representations and
warranties of the Seller set forth in Article II, including the Disclosure
Schedule and other Schedules hereto (and any updates thereto). Such
representations and warranties by the Seller constitute the sole and exclusive
representations and warranties of the Seller to the Buyer in connection with the
transactions contemplated hereby, and the Buyer acknowledges and agrees that the
Seller is not making any representation or warranty whatsoever, express or
implied, beyond those expressly given in this Agreement, including any implied
warranty as to condition, merchantability, or suitability as to any of the
Acquired Assets and it is understood that the Buyer takes the Acquired Assets as
is and where is (subject to the benefit of the representations warranties set
forth in this Agreement). The Buyer further acknowledges and agrees that, except
as expressly set forth in Article II hereof, any cost estimates, projections or
other predictions that may have been provided to the Buyer or any of its
employees, agents or representatives are not representations or warranties of
the Seller or any of its Affiliates. The Buyer has no knowledge that any of the
representations and warranties of the Seller in this Agreement is not true and
correct, and the Buyer has no knowledge of any errors in, or omissions from, the
Disclosure Schedule or other Schedules.

                                   ARTICLE IV
                              PRE-CLOSING COVENANTS

                  4.1 Closing Efforts; Hart-Scott-Rodino Act.

             (a) Subject to the terms hereof, including Section 4.1(b), each of
the Parties shall use reasonable commercial efforts to take all actions and to
do all things reasonably necessary or advisable to consummate the transactions
contemplated by this Agreement, including using reasonable commercial efforts
to: (i) obtain all waivers, permits, consents, approvals or other authorizations
from Governmental Entities and other third parties (the "Third Party Consents"),
(ii) effect all registrations, filings and notices with or to Governmental
Entities (the "Governmental Filings") and (iii) otherwise comply in all material
respects with all applicable laws and regulations in connection with the
consummation of the transactions contemplated by this Agreement. The Buyer shall
bear any out-of-pocket costs associated with obtaining such Third Party
Consents. Each Party shall promptly notify the other Party of any fact,
condition or event known to it that would reasonably be expected to prohibit,
make unlawful or delay the consummation of the transactions contemplated by this
Agreement.

             (b) Without limiting the generality of the foregoing, each Party
shall (or shall cause the appropriate Affiliate thereof to) (i) promptly file
any Notification and Report Forms and related material that it may be required
to file with the Federal Trade Commission and the Antitrust Division of the
United States Department of Justice under the Hart-Scott-Rodino Act, (ii) use
reasonable commercial efforts to obtain an early termination of the applicable

<PAGE>

waiting period under the Hart-Scott-Rodino Act, (iii) make any further filings
or information submissions pursuant thereto that may be reasonably necessary or
advisable and (iv) promptly make any filings or submissions required under any
applicable foreign antitrust or trade regulation law. Each Party shall use
reasonable commercial efforts to resolve any objections that may be asserted by
any Governmental Entity with respect to the transactions contemplated hereby,
and shall cooperate with each other to contest any challenges to the
transactions contemplated hereby by any Governmental Entity. Each Party shall
promptly inform the other of any material communication received by such Party
from the Federal Trade Commission, the Antitrust Division of the Department of
Justice or any other Governmental Entity regarding any of the transactions
contemplated hereby (unless the provision of such information would (i) violate
the provisions of any applicable laws or regulations (including without
limitation those relating to security clearance or export controls) or any
confidentiality agreement or (ii) cause the loss of the attorney-client
privilege with respect thereto).

         4.2 Operation of Seller.

             (a) Except as contemplated by this Agreement, during the period
from the date of this Agreement until the Closing Date, the Seller shall use
reasonable commercial efforts to, conduct its operations in the ordinary course,
and preserve the Business, the Acquired Assets and the reputation of the
Business. Without limiting the generality of the foregoing, prior to the
Closing, the Seller shall not, without the written consent of the Buyer:

                 (i) authorize, issue, sell or transfer any capital stock of the
Seller or any other securities of the Seller, including any securities
convertible or exercisable into or exchangeable for any capital stock or other
securities of, or any warrants, options or other rights to acquire any capital
stock or other securities of the Seller;

                 (ii) change or authorize any change in the charter or by-laws
of the Seller;

                 (iii) merge or consolidate the Seller with any other person or
entity;

                 (iv) sell, assign or transfer any portion of the Acquired
Assets in a single transaction or series of related transactions in an amount in
excess of $50,000, except for sales in the ordinary course of business;

                 (v) incur or guarantee any indebtedness for borrowed money,
except in the ordinary course of business;

                 (vi) grant any rights to severance benefits, "stay pay" or
termination pay to any Employee or increase by more than eight percent (8%) the
compensation or other benefits payable or potentially payable to any Employee
under any previously existing severance benefits, "stay-pay" or termination pay
arrangements;

                 (vii) make any capital expenditures or commitments therefor in
an amount in excess of $500,000 in the aggregate, except in the ordinary course
of business or in accordance with the Seller's capital expenditure budget
included in the Disclosure Schedule;

<PAGE>

                 (viii) acquire any operating business, whether by merger, stock
purchase or asset purchase (except as provided in Section 4.6);

                 (ix) enter into any employment, compensation or deferred
compensation agreement (or any amendment to any such existing agreement) with
any Employee whose annual base salary exceeds $100,000, except in the ordinary
course of business;

                 (x) materially amend the terms of any existing Seller Benefit
Plan, except as required by law;

                 (xi) change its accounting principles, methods or practices
except in each case to conform to changes in GAAP;

                 (xii) enter into any contract or agreement outside the ordinary
course of business;

                 (xiii) materially amend or terminate a Material Contract,
except in the ordinary course of business;

                 (xiv) cancel or fail to renew any insurance policies on the
Acquired Assets or the Business;

                 (xv) fail to maintain its books, accounts and records in the
usual, regular and ordinary manner on a basis consistent with prior years;

                 (xvi) declare, set aside or pay any dividend or make any other
distribution with respect to the capital stock of the Seller; or

                 (xvii) agree in writing or otherwise to take any of the
foregoing actions.

             (b) Notwithstanding the limitations set forth in paragraph (a)
above, the Seller shall be permitted to (i) accept capital contributions and
loans from any of the Seller's Affiliates and (ii) use any and all cash, cash
equivalents and other short term liquid investments to make dividends,
distributions or other payments to the sole shareholder of the Seller or any of
the Seller's Affiliates. The Buyer agrees that prior to the Closing, the Seller
shall be permitted to pay a dividend to the sole shareholder of the Seller of
all of the Seller's cash, cash equivalents and other short-term liquid
investments, which dividend shall not be a breach of any representation,
warranty, covenant or other agreement of the Seller contained in this Agreement.
The permitted dividends and distributions in the prior two sentences may not
exceed an amount equal to the Seller's year 2002 earnings plus the Seller's
earnings from January 1, 2003 through the Closing Date.

         4.3 Access.

             (a) Prior to the Closing, the Seller shall permit the
representatives of the Buyer to have access (at reasonable times, on reasonable
prior written notice and in a manner so as not to interfere with the normal
business operations of the Seller) to the premises, properties, financial and
accounting records, contracts, and other records and documents, of or pertaining

<PAGE>

to the Seller. Notwithstanding the foregoing, the Seller shall not be obligated
(i) to provide any information, documents or access to any person unless the
Buyer is responsible, pursuant to the terms of the confidentiality letter
agreement dated March 22, 2002 between the Buyer and the Seller (the
"Confidentiality Agreement"), for the use and disclosure of any information
obtained by such person from the Seller, or such person enters into a
confidentiality agreement with the Seller on the terms that are substantially
the same as those set forth in the Confidentiality Agreement or (ii) to provide
any information, documents or access that would (A) violate the provisions of
any applicable laws or regulations (including without limitation those relating
to security clearance or export controls) or any confidentiality agreement to
which it is a party or (B) cause the loss of the attorney-client privilege with
respect thereto. Prior to the Closing, the Buyer and its representatives shall
not contact or communicate with the employees, customers and suppliers of the
Seller in connection with the transactions contemplated by this Agreement,
except with the prior consent of the Seller.

             (b) The Buyer and the Seller acknowledge and agree that the
Confidentiality Agreement remains in full force and effect and that information
provided by the Seller or any of the Seller's Affiliates to the Buyer pursuant
to this Agreement prior to the Closing shall be treated in accordance with the
Confidentiality Agreement. If this Agreement is terminated prior to the Closing,
the Confidentiality Agreement shall remain in full force and effect in
accordance with its terms. If the Closing occurs, the Confidentiality Agreement
shall terminate effective as of the Closing.

             (c) Notwithstanding any provision of this Agreement to the
contrary, the Buyer and its representatives shall not have any access at any
time prior to the Closing to any information regarding pending or proposed bids
for new contracts or subcontracts or any related information where the Buyer or
an Affiliate of the Buyer also has submitted or intends to submit a bid for such
contract or subcontract.

         4.4 Exclusivity. The Seller shall not, and shall use its best efforts
to cause its Affiliates and each of their respective officers, directors,
employees, representatives and agents not to, (i) initiate, solicit or encourage
any proposal, offer or discussion with any party (other than the Buyer)
concerning any merger, business combination, sale of stock or sale of assets
(other than sales of assets in the ordinary course of business) involving the
Business, or (ii) engage in discussions or negotiations with any party (other
than the Buyer) concerning any such transaction.

         4.5 Schedules. The Seller shall be entitled to submit to the Buyer,
from time to time between the date hereof and the Closing Date, written updates
to the Disclosure Schedule and other Schedules hereto disclosing any events or
developments that occurred or any information learned between the date of this
Agreement and the Closing Date. The Seller's representations and warranties
contained in this Agreement shall be construed for all purposes of this
Agreement (including without limitation Section 5.1, Article VI and Article VII)
in accordance with the Disclosure Schedule and other Schedules hereto, as so
updated; provided that the Buyer shall have the right to terminate this
Agreement as a result of any such update to the Disclosure Schedule and other
Schedules hereto to the extent provided in Section 7.1(c).

<PAGE>

         4.6 Related Entity. The sole shareholder of the Seller owns all of the
outstanding capital stock of Atgo, Inc. ("Atgo"), a single purpose entity formed
solely to place newspaper advertisements for the Seller. The Seller has made
payments to Atgo solely for purposes of satisfying Atgo's obligations for such
newspaper advertisements. Payments to Atgo have been less than $50,000 in each
of the last two years. The sole shareholder of the Seller will retain or
dissolve Atgo and, in any event, will cause Atgo to cease doing business with
the Business.

         4.7 Certain Tax Certifications. Prior to the Closing, the Buyer shall
provide the Seller with appropriate resale exemption certificates, exempt use
certificates, and other similar Tax documentation relating to the Business or
the Acquired Assets.

         4.8 NYSE Listing. The Guarantor shall cause the Consideration Shares to
be listed on the NYSE, subject to official notice of issuance, on or prior to
the Closing Date.

                                   ARTICLE V
                         CONDITIONS PRECEDENT TO CLOSING

         5.1 Conditions to Obligations of the Buyer. The obligation of the Buyer
to consummate the transactions to be consummated at the Closing is subject to
the satisfaction (or waiver by the Buyer) of the following conditions:

             (a) the representations and warranties of the Seller set forth in
Article II shall be true and correct as of the Closing Date as if made as of the
Closing Date, except (i) for changes contemplated or permitted by this
Agreement, (ii) for those representations and warranties that address matters
only as of a particular date (which shall be true and correct as of such date,
subject to clause (iii) below), and (iii) where the failure of the
representations and warranties to be true and correct would not reasonably be
expected to result, in the aggregate, in a Seller Material Adverse Effect (it
being agreed that any materiality qualification in a representation and warranty
shall be disregarded in determining whether any such failure would reasonably be
expected to result in a Seller Material Adverse Effect for purposes of this
clause (iii));

             (b) the Seller shall have performed or complied with the agreements
and covenants required to be performed or complied with by it under this
Agreement as of or prior to the Closing, except where the failure to so perform
or comply would not reasonably be expected to result in a Seller Material
Adverse Effect;

             (c) there shall not have occurred any change, effect, event,
occurrence, condition or development that is, or is reasonably likely to be,
materially adverse to the Business or to the Seller's results of operations,
financial condition or assets, taken as a whole; other than any change, effect,
event, occurrence, condition or development relating to or arising out of (i)
economic factors affecting the economy as a whole, (ii) factors generally
affecting the industry or specific markets in which the Seller competes or (iii)
this Agreement or the transaction contemplated hereby or the announcement
thereof;

             (d) no action, suit or proceeding shall be pending by or before any
Governmental Entity seeking to prevent consummation of the transactions

<PAGE>

contemplated by this Agreement and no judgment, order, decree, stipulation or
injunction enjoining or preventing the consummation of the transactions
contemplated by this Agreement shall be in effect;

             (e) the Seller shall have delivered to the Buyer a certificate (the
"Seller Certificate") to the effect that each of the conditions specified in
clauses (a) through (d) (insofar as clause (d) relates to an action, suit or
proceeding involving, or a judgment, order, decree, stipulation or injunction
against, the Seller) of this Section 5.1 is satisfied;

             (f) all applicable waiting periods (and any extensions thereof)
under the Hart-Scott-Rodino Act and applicable foreign antitrust or trade
regulation laws shall have expired or otherwise been terminated, except (in the
case of foreign antitrust or trade regulation laws) where the consummation of
the transactions contemplated by this Agreement before the expiration or other
termination of any such waiting period under applicable foreign antitrust or
trade regulation law would not reasonably be expected to result in a Seller
Material Adverse Effect;

             (g) the Seller shall have obtained (or caused to be obtained) all
of the Third Party Consents and effected all of the Governmental Filings which
are required on the part of the Seller to consummate the transactions
contemplated by this Agreement, except for those Third Party Consents and
Governmental Filings, which, if not obtained or effected would not in the
aggregate reasonably be expected to result in a Seller Material Adverse Effect;

             (h) each Beneficial Owner shall have executed and delivered a
guaranty agreement in substantially the form attached as Exhibit J-1, and the
sole shareholder of the Seller and its beneficial owners shall have executed and
delivered a collection guaranty in substantially the form attached as Exhibit
J-2;

             (i) the Seller shall have delivered to the Buyer an opinion of the
Seller's counsel in substantially the form attached as Exhibit H;

             (j) the Seller shall have executed and delivered each of the
Ancillary Agreements to which it is a party; and

             (k) the Seller shall have delivered to the Buyer such other
customary certificates as the Buyer shall reasonably request in connection with
the Closing.

         5.2 Conditions to Obligations of the Seller. The obligation of the
Seller to consummate the transactions to be consummated at the Closing is
subject to the satisfaction (or waiver by the Seller) of the following
conditions:

             (a) the representations and warranties of the Buyer set forth in
Article III shall be true and correct as of the Closing Date as if made as of
the Closing Date, except (i) for changes contemplated or permitted by this
Agreement, (ii) for those representations and warranties that address matters
only as of a particular date (which shall be true and correct as of such date,
subject to clause (iii) below), and (iii) where the failure of the
representations and warranties to be true and correct would not reasonably be
expected to result, in the aggregate, in a Buyer Material Adverse Effect (it
being agreed that any materiality qualification in a representation and warranty

<PAGE>

shall be disregarded in determining whether any such failure would reasonably be
expected to result in a Buyer Material Adverse Effect for purposes of this
clause (iii));

             (b) the Buyer shall have performed or complied with its agreements
and covenants required to be performed or complied with by it under this
Agreement as of or prior to the Closing, except where the failure to so perform
or comply would not reasonably be expected to result in a Buyer Material Adverse
Effect;

             (c) there shall not have occurred any change, effect, event,
occurrence, condition or development that is, or is reasonably likely to be,
materially adverse to the business of the Guarantor or to the Guarantor's
results of operations, financial condition or assets, taken as a whole; other
than any change, effect, event, occurrence, condition or development relating to
or arising out of (i) economic factors affecting the economy as a whole, (ii)
factors generally affecting the industry or specific markets in which the
Guarantor competes or (iii) this Agreement or the transaction contemplated
hereby or the announcement thereof;

             (d) no action, suit or proceeding shall be pending by or before any
Governmental Entity seeking to prevent consummation of the transactions
contemplated by this Agreement and no judgment, order, decree, stipulation or
injunction enjoining or preventing consummation of the transactions contemplated
by this Agreement shall be in effect;

             (e) the Buyer shall have delivered to the Seller a certificate (the
"Buyer Certificate") to the effect that each of the conditions specified in
clauses (a) through (d) (insofar as clause (d) relates to an action, suit or
proceeding involving, or a judgment, order, decree, stipulation or injunction
against, the Buyer) of this Section 5.2 is satisfied;

             (f) each of the Beneficial Owners and the Buyer shall have entered
into an Employment Agreement in substantially the form of Exhibit G attached
hereto;

             (g) all applicable waiting periods (and any extensions thereof)
under the Hart-Scott-Rodino Act and applicable foreign antitrust or trade
regulation laws shall have expired or otherwise been terminated, except (in the
case of foreign antitrust or trade regulation laws) where the consummation of
the transactions contemplated by this Agreement before the expiration or other
termination of any such waiting period under applicable foreign antitrust or
trade regulation law would not reasonably be expected to result in a material
adverse effect on the business, financial condition or results of operations of
the Seller or the ability of the Seller to consummate the transactions
contemplated by this Agreement;

             (h) the Buyer shall have obtained (or caused to be obtained) all of
the Third Party Consents and effected all of the Governmental Filings which are
required on the part of the Buyer to consummate the transactions contemplated by
this Agreement, except for those Third Party Consents and Governmental Filings,
which, if not obtained or effected, would not reasonably be expected to result
in a material adverse effect on the business, financial condition or results of
operations of the Seller or the ability of the Seller to consummate the
transactions contemplated by this Agreement;

             (i) the Buyer shall have delivered to the Seller an executed
opinion of the Buyer's counsel in substantially the form attached as Exhibit I;

<PAGE>

             (j) the Buyer shall have executed and delivered each of the
Ancillary Agreements to which it is a party;

             (k) the Guarantor shall have executed and delivered to the Seller
the Guaranty in substantially the form attached as Exhibit A;

             (l) the Buyer shall have executed and delivered two lease
agreements with affiliates of the Seller relating to the Seller's leased
facilities located at 60-66 Brainerd Road, Allston, Massachusetts and 52 Everett
Street, Brighton, Massachusetts, in substantially the forms attached hereto as
Exhibit K-1 and K-2 (collectively, the "New Leases");

             (m) no stop order suspending the effectiveness of the Form S-4
shall have been issued and no proceeding for that purpose, and no similar
proceeding with respect to the Base Prospectus, shall have been initiated or
threatened in writing by the SEC or its staff; and

             (n) the Buyer shall have delivered to the Seller such other
customary certificates (such as a certificate of good standing of the Buyer in
its jurisdiction of incorporation and certificates as to the incumbency of
officers and the adoption of authorizing resolutions) as the Seller shall
reasonably request in connection with the Closing.

                                   ARTICLE VI
                                 INDEMNIFICATION

         6.1 Indemnification by the Seller. Subject to the terms and conditions
of this Article VI, from and after the Closing, the Seller shall indemnify the
Buyer in respect of, and hold the Buyer harmless against, any and all
liabilities, monetary damages, fines, fees, penalties, costs and expenses
(including without limitation reasonable attorneys' fees and expenses)
(collectively, "Damages") incurred or suffered by the Buyer or any Affiliate
thereof resulting from or constituting:

             (a) any breach of a representation or warranty of the Seller
contained in this Agreement;

             (b) any failure by the Seller to perform any covenant or agreement
contained in this Agreement; or

             (c) any Excluded Liabilities;

provided that, to the extent a breach of a representation or warranty resulting
in Damages involves a payment of money by an Indemnified Person to an unrelated
third party, such amount shall bear interest at a rate of 8% per annum
commencing as of the date of such payment.

         6.2 Indemnification by the Buyer. Subject to the terms and conditions
of this Article VI, from and after the Closing, the Buyer shall indemnify the
Seller in respect of, and hold the Seller harmless against, any and all Damages
incurred or suffered by the Seller or any Affiliate thereof resulting from or
constituting:

<PAGE>

             (a) any breach of a representation or warranty of the Buyer
contained in this Agreement;

             (b) any failure by the Buyer to perform any covenant or agreement
contained in this Agreement;

             (c) any breach of any obligations of the Buyer under the New
Leases; or

             (d) any Assumed Liabilities.

         6.3 Claims for Indemnification.

             (a) Third-Party Claims. All claims for indemnification made under
this Agreement resulting from, related to or arising out of a third-party claim
against an Indemnified Party (as defined below) shall be made in accordance with
the following procedures. A person entitled to indemnification under this
Article VI (an "Indemnified Party") shall give prompt written notification to
the person from whom indemnification is sought (the "Indemnifying Party") of the
commencement of any action, suit or proceeding relating to a third-party claim
for which indemnification may be sought or, if earlier, upon the written
assertion of any such claim by a third party. Such notification shall include a
description in reasonable detail (to the extent known by the Indemnified Party)
of the facts constituting the basis for such third-party claim and the amount of
the Damages claimed. Within 30 days after delivery of such notification, the
Indemnifying Party may, upon written notice thereof to the Indemnified Party,
assume control of the defense of such action, suit, proceeding or claim with
counsel reasonably satisfactory to the Indemnified Party. If the Indemnifying
Party does not assume control of such defense, the Indemnified Party shall
control such defense. The Party not controlling such defense may participate
therein at its own expense; provided that if the Indemnifying Party assumes
control of such defense and the Indemnified Party reasonably concludes, based on
advice from counsel, that the Indemnifying Party and the Indemnified Party have
conflicting interests with respect to such action, suit, proceeding or claim,
the reasonable fees and expenses of counsel to the Indemnified Party solely in
connection therewith shall be considered "Damages" for purposes of this
Agreement; provided, however, that in no event shall the Indemnifying Party be
responsible for the fees and expenses of more than one counsel for all
Indemnified Parties. The Party controlling such defense shall keep the other
Party advised of the status of such action, suit, proceeding or claim and the
defense thereof and shall consider recommendations made by the other Party with
respect thereto. The Indemnified Party shall not agree to any settlement of such
action, suit, proceeding or claim without the prior written consent of the
Indemnifying Party, which consent shall not be unreasonably withheld. The
Indemnifying Party shall not agree to any settlement of such action, suit,
proceeding or claim that does not include a complete release of the Indemnified
Party from all liability with respect thereto or that imposes any liability or
obligation on the Indemnified Party without the prior written consent of the
Indemnified Party.

             (b) Procedure for Other Claims. An Indemnified Party wishing to
assert a claim for indemnification under this Article VI which is not subject to
Section 6.3(a) shall deliver to the Indemnifying Party a written notice (a
"Claim Notice") which contains (i) a description and the amount (the "Claimed
Amount") of any Damages incurred by the Indemnified Party, (ii) a statement that
the Indemnified Party is entitled to indemnification under this Article VI and a

<PAGE>

reasonable explanation of the basis therefor, and (iii) a demand for payment in
the amount of such Damages. Within 30 days after delivery of a Claim Notice, the
Indemnifying Party shall deliver to the Indemnified Party a written response in
which the Indemnifying Party shall: (I) agree that the Indemnified Party is
entitled to receive all of the Claimed Amount (in which case such response shall
be accompanied by a payment by the Indemnifying Party to the Indemnified Party
of the Claimed Amount, by check or by wire transfer), (II) agree that the
Indemnified Party is entitled to receive part, but not all, of the Claimed
Amount (the "Agreed Amount") (in which case such response shall be accompanied
by a payment by the Indemnifying Party to the Indemnified Party of the Agreed
Amount, by check or by wire transfer), or (III) contest that the Indemnified
Party is entitled to receive any of the Claimed Amount. If the Indemnifying
Party in such response contests the payment of all or part of the Claimed
Amount, the Indemnifying Party and the Indemnified Party shall use good faith
efforts to resolve such dispute. If such dispute is not resolved within 60 days
following the delivery by the Indemnifying Party of such response, the
Indemnifying Party and the Indemnified Party shall each have the right to submit
such dispute to a court of competent jurisdiction in accordance with the
provisions of Section 10.12.

         6.4 Survival.

             (a) The representations and warranties of the Seller and the Buyer
set forth in this Agreement, the Seller Certificate and the Buyer Certificate
shall survive the Closing and the consummation of the transactions contemplated
hereby and continue until the date which is eighteen (18) months after the
Closing Date, at which time they shall expire; provided, however, the
representations and warranties of the Seller contained in Sections 2.1, 2.2 and
2.3 and of the Buyer contained in Sections 3.1 and 3.2 shall survive the Closing
and the consummation of the transactions contemplated hereby indefinitely;
provided further, however, the representations and warranties of the Seller
contained in Sections 2.8 and 2.18 shall survive the Closing and the
consummation of the transactions contemplated hereby and continue until the
expiration of the applicable statute of limitations.

             (b) If an indemnification claim is properly asserted in writing
pursuant to Section 6.3 prior to the expiration as provided in Section 6.4(a) of
the representation or warranty that is the basis for such claim, then such
representation or warranty shall survive until, but only for the purpose of, the
resolution of such claim.

         6.5 Limitations.

             (a) Notwithstanding anything to the contrary contained in this
Agreement, the following limitations shall apply to indemnification claims under
this Agreement:

                 (i) the Seller shall be liable with respect to claims under
Section 6.1(a) for only that portion of the aggregate Damages related to such
claims, considered together, which exceeds $1,000,000;

                 (ii) the aggregate liability of the Seller for all Damages
under this Article VI shall not exceed an amount equal to $28,000,000; and

<PAGE>

                 (iii) the Buyer shall not be entitled to make any claim for
indemnification with respect to any matter to the extent the Purchase Price has
been adjusted to reflect such matter pursuant to Section 1.4, and the amount of
any Damages for which a Party is entitled to indemnification as provided under
this Article VI, shall be calculated net of any accruals, reserves or provisions
therefor reflected in the determination of the Kellwood Closing Net Worth Amount
shown in the Final Closing Statement.

             (b) In no event shall any Indemnifying Party be responsible or
liable for any Damages or other amounts under this Article VI that are
consequential, in the nature of lost profits, diminution in the value of
property, special or punitive or otherwise not actual damages. Each Party shall
(and shall cause its Affiliates to) use reasonable commercial efforts to pursue
all legal rights and remedies available in order to minimize the Damages for
which indemnification is provided to it under this Article VI.

             (c) The amount of Damages recoverable by an Indemnified Party under
this Article VI with respect to an indemnity claim shall be reduced by (i) the
amount of any payment received by such Indemnified Party (or an Affiliate
thereof), with respect to the Damages to which such indemnity claim relates,
from an insurance carrier, and (ii) the amount of any Tax benefit realized or
realizable by such Indemnified Party (or an Affiliate thereof) which is
attributable to the Damages to which such indemnity claim relates. For purposes
of this Section 6.5(c), the Tax benefit realized by any Indemnified Party (or an
Affiliate thereof) shall be determined as of the date of the receipt of payment
from the Indemnifying Party by calculating the present value of all expected
reductions in Tax payments attributable to any expected deductions or decreases
in income associated with the Damages to which such indemnity claim relates,
assuming that the Indemnified Party is always subject to a total combined Tax
rate of 45% and using a discount rate of 8% (compounded monthly). An Indemnified
Party shall use reasonable commercial efforts to pursue, and to cause its
Affiliates to pursue, all insurance claims and Tax benefits to which it may be
entitled in connection with any Damages it incurs, and the Parties shall
cooperate with each other in pursuing insurance claims with respect to any
Damages or any indemnification obligations with respect to Damages. If an
Indemnified Party (or an Affiliate) receives any insurance payment in connection
with any claim for Damages for which it has already received an indemnification
payment from the Indemnifying Party, it shall pay to the Indemnifying Party,
within 30 days of receiving such insurance payment, an amount equal to the
excess of (A) the amount previously received by the Indemnified Party under this
Article VI with respect to such claim plus the amount of the insurance payments
received, over (B) the amount of Damages with respect to such claim which the
Indemnified Party has become entitled to receive under this Article VI.

             (d) To the extent any representation or warranty of the Seller in
Article II is, to the knowledge of the Buyer on or prior to the Closing Date,
untrue or incorrect, the Buyer shall have no rights to indemnification under
this Article VI by reason of such untruth or inaccuracy.

             (e) Except with respect to claims for equitable relief, including
specific performance, made with respect to breaches of any covenant or agreement
contained in this Agreement, the rights of the Indemnified Parties under this
Article VI shall be the sole and exclusive remedies of the Indemnified Parties
and their respective Affiliates with respect to claims covered by Section 6.1 or

<PAGE>

Section 6.2 or otherwise relating to the transactions that are the subject of
this Agreement. Without limiting the generality of the foregoing, in no event
shall any Party, its successors or permitted assigns be entitled to claim or
seek rescission of the transactions consummated by this Agreement.

             (f) The Buyer shall be entitled to recover any Damages due it
hereunder (x) by recovering from the Escrow Account and/or (y) by setting off
any such amount that is (i) agreed to by the Seller or (ii) set forth in a
final, non-appealable judgment rendered by a court of competent jurisdiction,
against any amount otherwise due from the Buyer to the Seller under this
Agreement, including the Contingent Purchase Price Amount. The Buyer agrees not
to set off any amounts other than as provided in this Section 6.5(f).

         6.6 Treatment of Indemnification Payments. All indemnification payments
made under this Agreement shall be treated by the Parties as an adjustment to
the Adjusted Purchase Price to the maximum extent allowable under applicable
law.

                                   ARTICLE VII
                                   TERMINATION

         7.1 Termination of Agreement. The Parties may terminate this Agreement
prior to the Closing as provided below:

             (a) the Parties may terminate this Agreement by mutual written
consent;

             (b) the Buyer may terminate this Agreement by giving written notice
to the Seller in the event the Seller is in material breach, and such breach,
individually or in combination with any other such breach, (i) would cause the
conditions set forth in Section 5.1(a) or Section 5.1(b) not to be satisfied and
(ii) is not cured within 30 days following delivery by the Buyer to the Seller
of written notice of such breach;

             (c) the Buyer may terminate this Agreement by giving written notice
to the Seller in the event the Seller provides an update to the Disclosure
Schedule or other Schedule hereto pursuant to Section 4.5 which contains
information that, absent such disclosure and the provisions of Section 4.5
permitting the update of representations and warranties, would have the effect
of causing the condition set forth in Section 5.1(a) not to be satisfied, and
the Seller fails to cure the event or condition causing the failure of such
condition within 30 days following delivery by the Buyer to the Seller of
written notice under this Section 7.1(c);

             (d) the Seller may terminate this Agreement by giving written
notice to the Buyer in the event the Buyer is in breach of any representation,
warranty, covenant or agreement contained in this Agreement, and such breach,
individually or in combination with any other such breach, (i) would cause the
conditions set forth in Section 5.2(a) or Section 5.2(b) not to be satisfied and
(ii) is not cured within 30 days following delivery by the Seller to the Buyer
of written notice of such breach;

             (e) the Buyer may terminate this Agreement by giving written notice
to the Seller if the Closing shall not have occurred on or before February 5,
2003 by reason of the failure of any condition precedent under Section 5.1
(unless the failure results exclusively or primarily from a breach by the Buyer

<PAGE>

of any representation, warranty, covenant or agreement contained in this
Agreement); and

             (f) the Seller may terminate this Agreement by giving written
notice to the Buyer if the Closing shall not have occurred on or before February
5, 2003 by reason of the failure of any condition precedent under Section 5.2
(unless the failure results exclusively or primarily from a breach by the Seller
of any representation, warranty, covenant or agreement contained in this
Agreement).

         7.2 Effect of Termination. If any Party terminates this Agreement
pursuant to Section 7.1, all obligations of the Parties hereunder shall
terminate without any liability of any Party to the other Party. Notwithstanding
the foregoing, termination of this Agreement shall not relieve any Party for any
breach by such Party, prior to the termination of this Agreement, of any
covenant or agreement (but not any representation or warranty) contained in this
Agreement or impair the right of any Party to obtain such remedies as may be
available to it in law or equity with respect to such a breach by any other
Party.

                                  ARTICLE VIII
                                EMPLOYEE MATTERS

         8.1 Offer of Employment; Continuation of Employment. The Parties hereto
intend that there shall be continuity of employment with respect to all
employees of the Seller (other than those employees specifically identified in
writing by the Seller (the "Employees"). The Buyer shall offer employment
commencing on the Closing Date to all Employees, including those on vacation,
military leave, leave of absence (whether paid or unpaid), disability or layoff,
on substantially similar terms to those in effect for such Employee immediately
prior to Closing.

         8.2 Cessation of Business Benefit Plan Participation; 401(k) Plan
Matters. Except as otherwise provided in this Article VIII or as otherwise
required by applicable law, the Employees shall cease to participate in or
accrue further benefits under the Seller Benefit Plans immediately prior to the
Closing. Effective as of the Closing, all Employees who participate in the
defined contribution plan qualified under Section 401 of the Code sponsored by
the Seller (the "Seller's 401(k) Plan") shall cease to participate in said plan.
The Buyer shall establish, if it does not already maintain, a defined
contribution plan qualified under Section 401 of the Code which shall accept
direct or indirect rollovers by Employees of their vested interest in the
Seller's 401(k) Plan.

         8.3 Employment Related Liabilities. The Buyer shall assume liability
for and shall pay directly to the appropriate Employee (or reimburse the Seller
for amounts that it pays to any such Employee) any amounts to which any Employee
becomes entitled under any Seller Benefit Plan or individual arrangement
disclosed to the Buyer, applicable law or otherwise that exists or arises (or
may be deemed to exist or arise) as a result of, or in connection with (i) the
sale of the Seller hereunder, (ii) the Buyer's failure to offer employment or to
employ Employees in accordance with Section 8.1 or applicable local law, (iii)
the employment of any Employee on or after the Closing Date, (iv) any change or
proposed change to the remuneration, benefits, terms and conditions of
employment, or the working conditions of any Employee after the Closing Date and
(v) the termination of employment of any Employee on or after the Closing Date.

<PAGE>

         8.4 Compensation; Employee Benefits; Severance Plans. Beginning on the
Closing Date, the Buyer shall provide each Employee who accepts the Buyer's
offer of employment and who commences working with the Buyer on the Closing Date
(other than the employees who sign an Employment Agreement) (collectively, the
"New Buyer Employees") with total cash compensation (including base salary and
bonus opportunity) that is substantially similar to such New Buyer Employee's
total cash compensation immediately prior to the Closing Date. Beginning on the
Closing Date, the Buyer shall also maintain (or cause its Affiliates to
maintain) employee benefit plans, agreements, programs, policies and
arrangements for the benefit of each New Buyer Employee that are substantially
similar to the Employee Benefit Plans in effect immediately prior to the Closing
Date with respect to employees of the Buyer (the "Buyer Plans"). The Buyer will
give credit for past service with the Seller under all the Buyer Plans
including, without limitation, severance pay plans, to all New Buyer Employees,
to the same extent such service was credited under similar plans of the Seller
in which the New Buyer Employees participated prior to the Closing Date.
Notwithstanding anything to the contrary in this Agreement, beginning on the
Closing Date, the Buyer shall maintain (or cause its Affiliates to maintain) a
severance pay plan, program or practice for the benefit of each New Buyer
Employee that is substantially similar to the plan, program or practice in
effect immediately prior to the Closing Date with respect to such New Buyer
Employee.

         8.5 Welfare Plans. With respect to any Buyer Plan that is an "employee
welfare benefit plan" (as defined in Section 3(1) of ERISA) or any plan directly
or indirectly maintained or contributed to by the Buyer providing similar
benefits to an "employee welfare benefit plan" (as defined in Section 3(1) of
ERISA), the Buyer shall (a) cause to be waived any pre-existing condition
limitations or actively-at-work requirements and (b) give effect, in determining
any deductible and maximum out-of-pocket limitations, to claims incurred and
amounts paid by, and amounts reimbursed to, such New Buyer Employees with
respect to similar plans maintained by the Seller for such New Buyer Employees
immediately prior to the Closing Date. The Buyer shall make appropriate
arrangements to allow the use by New Buyer Employees of any amounts available
under any cafeteria plan or flexible spending account (as defined in Section 125
of the Code) which was maintained by the Seller for such New Buyer Employees.

         8.6 Accrued Personal, Sick or Vacation Time. With respect to any
accrued but unused personal, sick or vacation time to which any New Buyer
Employee is entitled pursuant to the personal, sick or vacation policies
applicable to such New Buyer Employee immediately prior to the Closing Date (the
"PSV Policies"), the Buyer shall assume but only to the extent accrued in the
determination of the Kellwood Closing Net Worth Amount the liability for such
accrued personal, sick or vacation time and allow such New Buyer Employee to use
such accrued personal, sick or vacation time; provided, however, that if the
Buyer deems it necessary to disallow any such New Buyer Employee from taking
such accrued personal, sick or vacation time, the Buyer shall be liable for and
pay in cash to each such New Buyer Employee an amount equal to such personal,
sick or vacation time in accordance with the terms of the PSV Policies; and
provided, further, that the Buyer shall be liable for and pay in cash an amount
equal to such accrued personal, sick or vacation time to any New Buyer Employee
whose employment terminates for any reason subsequent to the Closing Date.

         8.7 U.S. WARN Act. The Buyer agrees to provide any required notice
under the WARN Act and any other similar applicable law and to otherwise comply
with any such law with respect to any "plant closing" or "mass layoff" (as

<PAGE>

defined in the WARN Act) or similar event affecting employees and occurring on
or after the Closing Date or arising as a result of the transactions
contemplated hereby. The Buyer shall assume sole responsibility for any
liabilities or obligations arising under the WARN Act or other applicable law
resulting from the actions (or inactions) of the Buyer or its Affiliates on or
after the Closing Date or from the transactions contemplated hereby.

         8.8 U.S. COBRA. The Buyer agrees to provide any required notice under
the Consolidated Omnibus Budget Reconciliation Act of 1986 ("COBRA") and any
other similar applicable law on or after the Closing Date. The Buyer shall
assume sole responsibility for any liabilities or obligations arising under
COBRA or other similar applicable law resulting from the actions (or inactions)
of the Buyer or its Affiliates on or after the Closing Date or from the
transactions contemplated hereby.

         8.9 Payroll Withholding Matters. The Buyer and the Seller agree to
utilize the Alternate Procedure described in Section 5 of IRS Revenue Procedure
96-60 with respect to each Employee who accepts the Buyer's offer of employment
and who commences working with the Buyer on the Closing Date. Pursuant to such
agreement, the Buyer will assume responsibility for filing and providing to such
Employees Forms W-2 and other required Tax forms for the calendar year in which
the Closing Date occurs. The Seller shall provide information and data to the
Buyer with respect to wages and payroll taxes for the period of such calendar
year ending on the Closing Date, and the Buyer shall report such information and
data, as provided, on the Forms W-2 and other required Tax forms for the
calendar year in which the Closing Date occurs.

                                   ARTICLE IX
                          OTHER POST-CLOSING COVENANTS

         9.1 Access to Information; Record Retention; Cooperation.

             (a) Access to Information. Subject to compliance with contractual
obligations and applicable laws and regulations regarding classified information
and security clearance, following the Closing, each Party shall afford to each
other Party and to such Party's authorized accountants, counsel and other
designated representatives during normal business hours in a manner so as to not
unreasonably interfere with the conduct of business (i) reasonable access and
duplicating rights to all non-privileged records, books, contracts, instruments,
documents, correspondence, computer data and other data and information
(collectively, "Information") within the possession or control of such Party
relating to the Business and (ii) reasonable access to the personnel of such
Party. Requests may be made under this Section 9.1(a) for financial reporting
and accounting matters, preparing financial statements, preparing, reviewing and
analyzing the Closing Statement, resolving any differences between the Parties
with respect to the Closing Statement, preparing and filing of any Tax Returns,
prosecuting any claims for refund, defending any Tax claim or assessment,
preparing securities law or securities exchange filings, prosecuting, defending
or settling any litigation, Environmental Matter or insurance claim, performing
obligations under this Agreement, and all other proper business purposes.

             (b) Preparation of the Seller Financial Statements. Without
limitation of the provisions of Section 9.1(a), following the Closing, the Buyer

<PAGE>

shall provide to the Seller all information reasonably required for the Seller
to prepare the Closing Statement. In connection with the preparation of the
Closing Statement, the Buyer shall provide the Seller (and its auditors) with
full access to the Business, its financial management and any accountant's work
papers, and all financial books, accounts and records relating to the Business.

             (c) Reimbursement. A Party making Information or personnel
available to another Party under Section 9.1 shall be entitled to receive from
such other Party, upon the presentation of invoices therefor, payments for such
amounts relating to supplies, disbursements and other out-of-pocket expenses, as
may reasonably be incurred in making such Information or personnel available;
provided, however, that no such reimbursements shall be required for the salary
or cost of fringe benefits or similar expenses pertaining to employees of the
providing Party.

             (d) Retention of Records. Except as may otherwise be required by
law or agreed to in writing by the Parties, each Party shall use reasonable
commercial efforts to preserve, until six years after the Closing Date, all
Information in its possession or control pertaining to the Seller prior to the
Closing. Notwithstanding the foregoing, in lieu of retaining any specific
Information, any Party may offer in writing to the other Party or Parties to
deliver such Information to the other Party or Parties, and if such offer is not
accepted within 90 days, the offered Information may be disposed of at any time.

             (e) Confidentiality. Each Party shall hold, and shall use
reasonable commercial efforts to cause their respective Affiliates, consultants
and advisors to hold, in strict confidence all Information concerning the other
furnished to it by the other Party or Parties or their representatives pursuant
to this Section 9.1 (except to the extent that such Information (i) is or
becomes generally available to the public other than as a result of any action
or inaction by the receiving Party, (ii) was within the possession of the
receiving Party prior to it being furnished to the receiving Party by or on
behalf of the disclosing Party pursuant hereto, provided that the source of such
information was not bound by a confidentiality agreement with or other
contractual, legal or fiduciary obligation of confidentiality to any person or
entity with respect to such information, or (iii) is or becomes available on a
non-confidential basis to the receiving Party from a source other than the
disclosing Party, provided that the source of such information was not bound by
a confidentiality agreement with or other contractual, legal or fiduciary
obligation of confidentiality to any person or entity with respect to such
information), and each Party shall not release or disclose such Information to
any other person, except its auditors, attorneys, financial advisors, bankers
and other consultants and advisors, unless compelled to disclose such
Information by judicial or administrative process or by other requirements of
law or so as not to violate the rules of any stock exchange; provided, however,
that in the case of disclosure compelled by judicial or administrative process,
the receiving Party shall (to the extent permitted by applicable law) notify the
disclosing Party promptly of the request and the documents requested thereby so
that the disclosing Party may seek an appropriate protective order or other
appropriate remedy. If, in the absence of a protective order or other remedy or
the receipt of a waiver hereunder, a Party is, in the written opinion of its
counsel, compelled to disclose any Information to any tribunal or other entity
or else stand liable for contempt or suffer other censure or penalty, such Party
may so disclose the Information without liability hereunder; provided, however,
that, such Party gives written notice to the other Party of the information to
be disclosed (including copies of the relevant portions of the relevant

<PAGE>

documents) as far in advance of its disclosure as is practicable, uses all
reasonable efforts to limit any such disclosure to the precise terms of such
requirement and cooperates with the disclosing Party to obtain an appropriate
protective order or other reliable assurance that confidential treatment will be
accorded to such information by the tribunal or other entity.

         9.2 Collection of Accounts Receivable. The Seller agrees that it shall
forward promptly to the Buyer any monies, checks or instruments received by it
after the Closing with respect to the accounts receivable purchased by the Buyer
from the Seller pursuant to this Agreement. The Seller hereby authorizes the
Buyer to endorse and cash any checks or instruments payable or endorsed to the
Seller or its order which are received by the Buyer and which relate to accounts
receivable purchased by the Buyer from the Seller.

         9.3 Payment of Assumed Liabilities. In the event that the Seller (or an
Affiliate thereof) inadvertently pays or discharges, after the Closing, any
Assumed Liabilities, the Buyer shall reimburse the Seller or Affiliate for the
amount so paid or discharged within 30 days of being presented with written
evidence of such payment or discharge.

         9.4 [INTENTIONALLY OMITTED].

         9.5 Covenant Not To Compete. For a period of four (4) years from the
Closing Date, each Beneficial Owner shall not, directly or indirectly, by or for
himself or herself or as the agent of another or through others as his or her
agent, except for or in connection with the performance of his or her duties
under his Employment Agreement:

             (a) promote, sell, license, distribute or service anywhere in the
United States (the "Territory") products which are in competition with those of
the Business;

             (b) operate any facility for the design, manufacture, marketing or
distribution of products in competition with those of the Business anywhere in
the Territory;

             (c) own, manage, operate, control, participate in, provide
consulting services to or be employed by any other business directly or
indirectly engaged in the design, manufacture, marketing or distribution of
products competitive with the Business anywhere in the Territory, other than
through ownership of shares representing less than four percent (4%) of the
outstanding stock of any publicly traded company;

             (d) interfere with the business relationships or publicly disparage
the good name or reputation of the Business, or intentionally engage in any
conduct which brings the Buyer, the Business or the Guarantor into public
ridicule or disrepute; or

             (e) solicit for employment or employ any employee of the Business
or request, induce or advise any employee to leave the employ of the Business or
the Guarantor;

provided, however, that the obligations under this Section 9.5 shall terminate
and be of no further force and effect upon (i) the voluntary or involuntary
filing of any petition seeking the appointment of a trustee, receivor or
liquidator, in bankruptcy or otherwise, of the Buyer or all or a substantial
portion of its assets, (ii) the termination of employment of any Beneficial
Owner by the Buyer without "cause" or by such Beneficial Owner for "good reason"

<PAGE>

(as such terms are defined in such Beneficial Owners Employment Agreement), and
(iii) the default by the Buyer in the payment of any Contingent Purchase Price
Amount that has become due and payable.

The parties agree and acknowledge that the duration, scope and geographic areas
applicable to the covenants described in this Section are reasonable and that
the Purchase Price for the Acquired Assets includes adequate compensation for
such obligations. If, however, any court determines that any of the restrictions
are not reasonable, the parties hereby give the court the right and power to
interpret, alter, amend or modify any or all of the terms contained herein to
include as much of the scope, time period and geographic area as will render
such restrictions enforceable. The Beneficial Owners agree that in the event of
a breach or violation or attempted breach or violation of this Section, said
provisions, or any of them, may be enforced by an injunction in a suit in
equity, and that a temporary or preliminary injunction or restraining order may
be granted immediately upon the commencement of any such suit and without
notice.

         9.6 No Disparagement by the Buyer. For a period of four (4) years from
the Closing Date, each of the Buyer and the Guarantor (and their respective
affiliates) shall not, directly or indirectly, publicly disparage the good name
or reputation of any Beneficial Owner or any family member of any Beneficial
Owner, or intentionally engage in any conduct which brings any Beneficial Owner
or any family member of any Beneficial Owner into public ridicule or disrepute.

         9.7 Limited Guaranty. Subject to the limitations set forth in Sections
6.4 and 6.5, each of the Beneficial Owners hereby guarantees the obligations of
the Seller under Article VI of this Agreement for a period of five (5) years
after the Closing Date; provided, however, if an indemnification claim is
properly asserted in writing pursuant to Section 6.3 prior to the fifth
anniversary of the Closing Date, then the provisions of this Section 9.7 shall,
subject to the limitations set forth in Sections 6.4 and 6.5, survive until, but
only for the purposes of, the resolution of such claim.

                                   ARTICLE X
                                  MISCELLANEOUS

         10.1 Press Releases and Announcements. No Party shall issue (and each
Party shall cause its Affiliates not to issue) any press release or public
disclosure relating to the subject matter of this Agreement without the prior
written approval of the other Party; provided, however, that any Party may make
any public disclosure it believes in good faith is required by law, regulation
or stock exchange rule (in which case the disclosing Party shall advise the
other Party and the other Party shall, if practicable, have the right to review
such press release or announcement prior to its publication).

         10.2 No Third Party Beneficiaries. This Agreement shall not confer any
rights or remedies upon any person other than the Parties and the Beneficial
Owners and their respective successors and permitted assigns and, to the extent
specified herein, their respective Affiliates. The Beneficial Owners shall be
third party beneficiaries under this Agreement.

<PAGE>

         10.3 Action to be Taken by Affiliates. The Parties shall cause their
respective Affiliates to comply with all of the obligations specified in this
Agreement to be performed by such Affiliates.

         10.4 Entire Agreement. This Agreement (including the documents referred
to herein) and the Confidentiality Agreement constitute the entire agreement
between the Buyer and the Seller. This Agreement supersedes any prior agreements
or understandings between the Buyer and the Seller, and any representations or
statements made by or on behalf of the Seller or any of its Affiliates to the
Buyer, whether written or oral, with respect to the subject matter hereof, other
than the Confidentiality Agreement. The Confidentiality Agreement shall
terminate effective as of the Closing.

         10.5 Succession and Assignment. No Party may assign either this
Agreement or any of its rights, interests, or obligations hereunder without the
prior written approval of the Seller (in the case of an assignment by the Buyer)
or the Buyer (in the case of an assignment by the Seller), which written
approval shall not be unreasonably withheld or delayed. Notwithstanding the
foregoing, this Agreement, and all rights, interests and obligations hereunder,
may be assigned, without such consent, to any entity that acquires all or
substantially all of a Party's business or assets. This Agreement shall be
binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns.

         10.6 Notices. All notices, requests, demands, claims and other
communications hereunder shall be in writing. Any notice, request, demand, claim
or other communication hereunder shall be deemed duly delivered four Business
Days after it is sent by registered or certified mail, return receipt requested,
postage prepaid, or one Business Day after it is sent for next Business Day
delivery via a reputable nationwide overnight courier service, in each case to
the intended recipient as set forth below:

     If to the Buyer:
     ----------------

     c/o Kellwood Company
     600 Kellwood Parkway
     Chesterfield, MO  63017

     Telecopy:  (314) 576-3388
     Attention:   Thomas H. Pollihan

Notices to the Seller shall be sent to such persons (with copies to such
persons) as are designated in writing by the Seller from time to time on or
after the Closing Date.

Any Party may give any notice, request, demand, claim, or other communication
hereunder using any other means (including personal delivery, expedited courier,
messenger service, telecopy, telex, ordinary mail, or electronic mail), but no
such notice, request, demand, claim or other communication shall be deemed to
have been duly given unless and until it actually is received by the party for
whom it is intended. Any Party may change the address to which notices,
requests, demands, claims and other communications hereunder are to be delivered
by giving the other Parties notice in the manner herein set forth.

<PAGE>

         10.7 Amendments and Waivers. The Parties may mutually amend or waive
any provision of this Agreement at any time. No amendment or waiver of any
provision of this Agreement shall be valid unless the same shall be in writing
and signed by all of the Parties. No waiver by any Party of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation or breach of warranty or covenant hereunder or affect
in any way any rights arising by virtue of any prior or subsequent such
occurrence.

         10.8 Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. If the final judgment of a court of
competent jurisdiction declares that any term or provision hereof is invalid or
unenforceable, the Parties agree that the body making the determination of
invalidity or unenforceability shall have the power to reduce the scope,
duration or area of the term or provision, to delete specific words or phrases,
or to replace any invalid or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing the
intention of the invalid or unenforceable term or provision, and this Agreement
shall be enforceable as so modified.

         10.9 Expenses. Except as otherwise specifically provided to the
contrary in this Agreement, each of the Parties shall bear its own costs and
expenses (including legal fees and expenses) incurred in connection with this
Agreement and the transactions contemplated hereby.

         10.10 Specific Performance. Each Party acknowledges and agrees that the
other Party would be damaged irreparably in the event any of the provisions of
this Agreement are not performed in accordance with their specific terms or
otherwise are breached. Accordingly, each Party agrees that the other Party may
be entitled to an injunction or injunctions to prevent breaches of the
provisions of this Agreement and to enforce specifically this Agreement and the
terms and provisions hereof in any action instituted in any court of the United
States or any state thereof having jurisdiction over the Parties and the matter.

         10.11 Governing Law. This Agreement and any disputes hereunder shall be
governed by and construed in accordance with the internal laws of the
Commonwealth of Massachusetts without giving effect to any choice or conflict of
law provision or rule (whether of the Commonwealth of Massachusetts or any other
jurisdiction) that would cause the application of laws of any jurisdiction other
than those of the Commonwealth of Massachusetts.

         10.12 Submission to Jurisdiction. Each Party (a) submits to the
exclusive jurisdiction of any state or federal court sitting in the Commonwealth
of Massachusetts in any action or proceeding arising out of or relating to this
Agreement, (b) agrees that all claims in respect of such action or proceeding
may be heard and determined only in any such court, (c) waives any claim of
inconvenient forum or other challenge to venue in such court, and (d) agrees not
to bring any action or proceeding arising out of or relating to this Agreement
in any other court. Each Party agrees to accept service of any summons,
complaint or other initial pleading made in the manner provided for the giving
of notices in Section 10.6. Nothing in this Section 10.12 however, shall affect
the right of any Party to serve such summons, complaint or initial pleading in
any other manner permitted by law.

<PAGE>

         10.13 Bulk Transfer Laws. The Buyer acknowledges that the Seller will
not comply with the provisions of the bulk transfer laws of any jurisdiction in
connection with the transactions contemplated by this Agreement.

         10.14 Construction.

             (a) The language used in this Agreement shall be deemed to be the
language chosen by the Parties to express their mutual intent, and no rule of
strict construction shall be applied against any Party.

             (b) Any reference to any federal, state, local, or foreign statute
or law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise.

             (c) The section headings contained in this Agreement are inserted
for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

             (d) Any reference herein to an Article, section or clause shall be
deemed to refer to an Article, section or clause of this Agreement, unless the
context clearly indicates otherwise.

             (e) All references to "$", "Dollars" or "US$" refer to currency of
the United States of America.

         10.15 Waiver of Jury Trial. To the extent permitted by applicable law,
each Party hereby irrevocably waives all rights to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Agreement or the transactions contemplated
hereby or the actions of any Party in the negotiation, administration,
performance and enforcement of this Agreement.

         10.16 Incorporation of Exhibits and Schedules. The Exhibits and
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof.

         10.17 Counterparts and Facsimile Signature. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument. This
Agreement may be executed by facsimile signature.

                  [Remainder of page intentionally left blank]

<PAGE>

         IN WITNESS WHEREOF, the Parties have executed this Agreement under seal
as of the date first above written.

                                             BRIGGS NEW YORK CORP.

                                             By: /s/ Richard Rosenberg
                                                 -------------------------------
                                             Name:  Richard Rosenberg
                                             Title:    President

                                             NEWKELL II, INC.

                                             By:  /s/ Thomas H. Pollihan
                                                  ------------------------------
                                             Name:  Thomas H. Pollihan
                                             Title:    Vice President

                                             KELLWOOD COMPANY

                                             By:  /s/ Thomas H. Pollihan
                                                  ------------------------------
                                             Name:  Thomas H. Pollihan
                                             Title:    Senior Vice President

              [Signature page to Asset Purchase and Sale Agreement]<PAGE>

                                                                    EXHIBIT 10.1

                           PURCHASE AND SALE AGREEMENT

               4 Stanley Tucker Drive, Newburyport, Massachusetts

     This Purchase and Sale Agreement (this "Agreement") is made as of the
Effective Date (defined below), by and between BERKSHIRE-NEWBURYPORT LIMITED
PARTNERSHIP, a Massachusetts limited partnership ("Seller") and VARIAN
SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC., a Delaware corporation ("Buyer").

                                 R E C I T A L S

     Seller is the owner of the Property (as defined below) and Seller desires
to sell, and Buyer desires to purchase the Property upon and subject to the
terms and conditions hereinafter set forth.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows:

                ARTICLE 1: SCHEDULE; DEFINITIONS; PURCHASE PRICE

     1.1  Schedule. The following basic terms are made a part of this Agreement:

     Purchase Price:               $9,052,182.75, which is comprised of (i)
                                   immediately available funds to be wire
                                   transferred to Seller at Closing in the
                                   amount of $3,400,000.00, (ii) assumption of
                                   the Assumed Debt (defined below) in the
                                   amount of $5,152,182.75 (assuming a Closing
                                   Date of January 1, 2003) and (iii) forfeiture
                                   of the $500,000.00 prepayment of rent made by
                                   Buyer, as tenant, under Section 19 of the
                                   Lease ("Rent Prepayment"), plus or minus
                                   prorations and other adjustments as provided
                                   herein, including without limitation
                                   adjustments on account of the Assumed Debt.
                                   In the event the Closing Date occurs after
                                   January 1, 2003, the Purchase Price shall be
                                   reduced to reflect the reduction in the
                                   amount of the Assumed Debt, as set forth in
                                   Section 5.1(g) below.

     Earnest Money:                $50,000.00, plus interest thereon.

     Effective Date:               The latest date of execution of this
                                   Agreement by Seller and Buyer, as indicated
                                   on the signature page.

<PAGE>

     Escrow Agent:                 First American Title Insurance Company.

     Due Diligence Period:         The period from the Effective Date through
                                   the 5:00 p.m. (Boston time) on the date that
                                   is forty (40) days after the Effective Date.

     Closing Date:                 As designated by Buyer upon not less than
                                   five (5) days' prior notice to Seller, but
                                   not later than ten (10) days after the later
                                   of (i) the expiration of the Due Diligence
                                   Period, and (ii) receipt of the written
                                   consent of the Lender (defined below) to the
                                   conveyance of the Property, subject to the
                                   Assumed Debt and the assumption of the
                                   Assumed Debt by Buyer. Notwithstanding the
                                   foregoing, Buyer shall have the right to
                                   extend the Closing Date as set forth in
                                   Section 2.9(c) below. In no event shall the
                                   Closing Date occur prior to January 3, 2003.

     Broker:                       The Chiofaro Company, LLC

     Notice Addresses:             See Appendix 9.11 attached hereto.

     1.2  Definitions. Certain terms, capitalized but not defined in the body of
this Agreement or otherwise designated in Section 1.1 hereof, shall have the
meanings ascribed to them on Appendix 2.2 attached hereto or as set forth below:

     "Accepted Service Contracts" shall have the meaning set forth in Section
2.5.

     "Affiliate" shall mean: (a) an entity that directly or indirectly controls,
is controlled by or is under common control with the party in question; or (b)
an entity at least a majority of whose economic interest is owned by the party
in question; and the term "control" means the power to direct the management of
such entity through voting rights, ownership or contractual obligations.

     "Endorsements" shall mean, to the extent such endorsements are available
under the laws of the state in which the Property is located, (i) extended
coverage, (ii) owner's comprehensive, (ii) access, (iv) creditors' rights, (v)
survey (accuracy of survey), (vi) location (survey legal matches title legal),
(vii) separate tax lot, (viii) plat act/subdivision or legal lot, (ix) zoning
3.1 (with parking and loading docks), (x) contiguity (if applicable), (xi)
restrictions (if applicable), (xii) utility facility endorsement, and (xiii)
such other endorsements as Buyer may require during the Due Diligence Period
based upon its review of the Title Commitment and Survey.

                                      -2-

<PAGE>

     "Environmental Laws" shall mean, without limitation, the Resource
Conservation and Recovery Act and the Comprehensive Environmental Response
Compensation and Liability Act and other federal, state, county, municipal and
other local laws governing or relating to Hazardous Materials or the environment
together with their implementing regulations, ordinances and guidelines.

     "Hazardous Materials" shall mean, without limitation, polychlorinated
biphenyls, urea formaldehyde, radon gas, lead paint, radioactive matter, medical
waste, asbestos, petroleum products, including crude oil or any fraction
thereof, natural gas, natural gas liquids, liquefied natural gas, or synthetic
gas usable for fuel (or mixtures of natural gas or such synthetic gas), and any
substance, material, waste, pollutant or contaminant listed or defined as
hazardous, infectious or toxic under any Environmental Law.

     "Improvements" shall mean, all buildings, improvements, fixtures,
structures, parking areas and landscaping located on the Land.

     "Intangible Property" shall mean, all right, title and interest of Seller
in and to all intangible personal property owned by Seller and now or hereafter
used in connection with the operation, ownership, maintenance, management, or
occupancy of the Real Property, including, without limitation, any and all of
the following: trade names and trademarks associated with the Real Property; the
plans and specifications for the Improvements, including as-built plans;
unexpired warranties, guarantees, indemnities and claims against third parties;
contract rights related to the construction, operation, repair, renovation,
ownership or management of the Real Property that are expressly assumed by Buyer
pursuant to this Agreement; pending permit or approval applications as well as
existing permits, approvals and licenses (to the extent assignable); insurance
proceeds and condemnation awards to the extent provided in Sections 3.2 or 3.3
of this Agreement; and books and records relating to the Property.

     "Land" shall mean, the land described in Exhibit A attached hereto (the
legal description of the land set forth in the Survey [defined below] for the
Property shall control to the extent of any inconsistency) and all and singular
the rights, benefits, privileges, easements, tenements, hereditaments, and
appurtenances thereon or in anywise appertaining to the Land, including any and
all mineral rights, development rights, water rights and the like; and all
right, title, and interest of Seller in and to all strips and gores and any land
lying in the bed of any street, road or alley, open or proposed, adjoining the
Land.

     "Lease" shall mean that certain Lease dated as of October 30, 1995 between
Seller, as landlord, and Genus, Inc., as tenant ("Original Tenant"), as amended
by a First Amendment to Lease dated as of November 8, 1995 between Seller and
Original Tenant, and a Second Amendment to Lease dated as of October 30, 1996
between Seller and Original Tenant, and assigned pursuant to that certain
Agreement Regarding Assignment and Transfer of Letter of Credit dated as of
April 12, 1999, between Varian Medical Systems, Inc., Varian Semiconductor
Equipment Associates, Inc. and Seller.

     "Permitted Exceptions" shall mean, exceptions approved by Buyer pursuant to
this Agreement, real estate taxes not yet due and payable and tenants in
possession as tenants only

                                      -3-

<PAGE>

under the Lease without any option to purchase or right of first refusal with
respect to the Property.

     "Personal Property" shall mean, all right, title and interest of Seller in
and to all tangible personal property owned by Seller and now or hereafter used
in connection with the operation, ownership, maintenance, management, or
occupancy of the Real Property, including, without limitation, all equipment,
machinery, heating, ventilating and air conditioning units, furniture, art work,
furnishings, trade fixtures, office equipment and supplies, and, whether stored
on or off-site, all tools and maintenance equipment, supplies, and construction
and finish materials not yet incorporated in the Improvements but held for
repairs and replacements.

     "Property" shall mean, the Real Property, the Lease, the Rents, the
Personal Property, the Intangible Property and the Accepted Service Contracts.

     "Real Property" shall mean, the Land and the Improvements.

     "Rents" shall mean all income from the Real Property, including without
limitation, all fixed or base rent, percentage rent, additional rent or other
amounts payable by the tenant under the Lease with respect to operating
expenses, taxes or other charges under the Lease.

     "Service Contracts" shall mean, all service contracts and other contracts,
agreements or instruments relating to the ownership, use, management or
operation of the Property, including equipment leases or any other lease in
which Seller is lessee, but excluding the Lease.

     "Survey" shall mean, a current survey of the Real Property prepared by a
surveyor licensed in the jurisdiction in which the Real Property is located and
reasonably acceptable to Buyer, certified to Buyer and the Title Company as
having been prepared in accordance with the ALTA/ACSM 1998 Minimum Standard
Detail Requirements, containing Table A Items 2, 3, 4, 5, 6 , 7(a), 7(c), 8, 10,
11 and 13 and meeting the accuracy requirements of an, as applicable, "urban" or
"suburban" survey.

     "Title Commitment" shall mean, a commitment for an ALTA Form B (1992)
owner's title insurance policy for the Real Property in the full amount of the
Purchase Price covering title to the Real Property on or after the date of this
Agreement, showing Seller as the owner of the Property.

     "Title Company" shall mean First American Title Insurance Company.

     "Title Policy" shall mean, an ALTA Owner's Policy (1992) of title
insurance, with extended coverage, issued by the Title Company as of the date
and time of the recording of the Deed for the Property, in the amount of the
Purchase Price, containing the Endorsements, insuring Buyer as the owner of fee
simple title to the Property, subject only to the Permitted Exceptions.

     1.3  Earnest Money. Within two (2) business days after the Effective Date,
Buyer shall deposit the Earnest Money with the Escrow Agent. Contemporaneously
with the execution of this Agreement, Seller, Buyer and the Escrow Agent shall
execute the escrow agreement

                                      -4-

<PAGE>

substantially in the form of Appendix 1.3 attached hereto (the "Escrow
Agreement"). The Earnest Money shall be held and disbursed as provided in the
Escrow Agreement.

                             ARTICLE 2: INSPECTION

     2.1  Due Diligence; Indemnity. Buyer shall have the Due Diligence Period in
which to examine, inspect, and investigate the Property and, in Buyer's sole and
absolute judgment and discretion, to determine whether the Property is
satisfactory to Buyer.

     Upon reasonable advance notice to Seller, Buyer and its agents, employees
and representatives, contractors, architects and other parties designated by
Buyer ("Buyer's Representative") shall, during the term of this Agreement, have
reasonable access to the Property and all books and records for the Property
that are in Seller's or its property manager's possession or control for the
purpose of conducting analyses, surveys, architectural, engineering,
geotechnical and environmental inspections and tests (including reasonable
intrusive inspection and sampling), and any other inspections, studies, or tests
reasonably required by Buyer. In the course of its investigations, Buyer may
make inquiries to third parties, including, without limitation, tenants,
lenders, contractors, property managers, parties to Service Contracts and
municipal, local and other government officials and representatives. The parties
acknowledge that Buyer is in possession of the Property and Seller will not
require that Seller accompany Buyer during Buyer's inspection and investigation
of the Property.

     Buyer shall keep the Property free and clear of any liens arising out of
such entry and inspection and will indemnify, defend, and hold Seller harmless
from all such liens and any claims asserted by third parties against Seller
(other than those arising out of Seller's negligence or willful misconduct) to
recover for personal injury or property damage as a result of Buyer's
Representative's entry onto the Property. If any inspection or test damages the
Property, Buyer will restore the Property to its condition immediately prior to
any such inspection or test. Buyer's obligations under this Section 2.1 shall
survive the termination of this Agreement.

     2.2  Seller's Delivery of Specified Documents. In order to assist Buyer
with its inspection and review of the Property, Seller hereby certifies that
Seller has delivered to Buyer true, correct and complete copies of the items set
forth on Appendix 2.2 to this Agreement with respect to each Property
(collectively, the "Property Information"). If any such item is not in Seller's
or its property manager's possession or control or reasonably capable of being
generated by Seller or its property manager, Seller hereby certifies that
Appendix 2.2 accurately states "None" with respect to such items. During the
term of this Agreement, Seller shall provide Buyer with any document described
above as and when it comes into Seller's or its property manager's possession or
control or is produced by Seller or its property manager after the initial
delivery of the Property Information. Without limiting the foregoing, Seller
shall make all other documents, files and information concerning the Property in
Seller's possession or control available for Buyer's inspection at the Property
or such other location as shall be mutually agreed by the parties.

     2.3  Title and Survey. Buyer shall, at its cost and expense, cause to be
prepared and delivered to Buyer with respect to the Property (i) the Title
Commitment, (ii) true, complete and legible copies of all documents referenced
in the Title Commitment, and (iii) the Survey

                                      -5-

<PAGE>

     2.4  Objection Notice. If Buyer is not satisfied in its sole discretion
with any of its inspections, reviews or with any other matter concerning the
Property, Buyer may, on or prior to the expiration of the Due Diligence Period,
either (i) terminate this Agreement by notice to Seller, in which event the
Earnest Money shall be immediately returned to Buyer and neither party shall
have further obligations hereunder, except as specifically set forth herein or
(ii) accept the Property by providing written notice to Seller of such
acceptance or (iii) raise certain objections by providing notice in writing (the
"Objection Notice"), which Objection Notice may, at Buyer's option, specify
which matters (the "Objections") Buyer does not find satisfactory with respect
to the Property. If Buyer does not timely provide an Objection Notice or an
acceptance notice, Buyer shall be deemed to have terminated this Agreement as
provided above.

     If Buyer timely provides an Objection Notice, Seller shall have ten (10)
days after delivery of such Objection Notice to remove or cause to be corrected
to Buyer's satisfaction, all of such Objections. In all cases, Seller shall be
obligated at Closing to fully discharge all liens of a definite and
ascertainable amount that are not specifically assumed or accepted by Buyer in
writing as well as those exceptions or encumbrances to title which arise after
the date of the Title Commitment. If the aggregate amount of such liens or
encumbrances exceeds the Purchase Price for the Property (plus or minus
prorations), Seller shall, during such ten (10) day period, provide evidence
reasonably satisfactory to Buyer of Seller's financial ability to fully
discharge such excess amounts.

     If Seller fails or refuses to cause the Objections to be removed and
corrected to Buyer's satisfaction within such ten (10) day period, or fail to
present evidence of its financial ability to satisfy such excess liens by such
date, then Buyer shall elect, on or prior to the date and time that is twenty
(20) days after the delivery of the Objection Notice, at 5:00 p.m., Boston time,
to (i) terminate this Agreement, in which event the Earnest Money shall be
immediately returned to Buyer and neither party shall have any further
obligations hereunder, except as specifically set forth herein or (ii) accept
the Property subject to any Objections and proceed to close, with the further
right to deduct from the Purchase Price amounts secured by liens of a definite
or ascertainable amount which Seller has not removed as provided herein as well
as amounts required to remove any exceptions or encumbrances which arise after
the date of the Title Commitment. If Buyer makes no such election, Buyer shall
be deemed to have elected to terminate this Agreement as provided above.

     If after the expiration of the Due Diligence Period, the Title Company
revises the Title Commitment or the surveyor revises the Survey to add or modify
exceptions, or to add or modify the conditions to obtain any of the
Endorsements, then, unless Buyer elects by notice to Seller to accept such
exceptions or conditions within ten (10) days after being notified thereof, then
this Agreement shall be deemed terminated as provided above. If, within such ten
(10) day period, Buyer notifies Seller that it objects to such new matters (the
"Post-Commitment Objection Notice") then Seller will have ten (10) days after
delivery of such Post-Commitment Objection Notice to remove or cause to be
corrected to Buyer's satisfaction, all of such new matters. If Seller fails or
refuses to cause such new matters to be removed or corrected to Buyer's
satisfaction within such ten (10) day period, then Buyer shall elect, on or
prior to the date and time that is twenty (20) days after the delivery of the
Post-Commitment Objection Notice, at 5:00 p.m., Boston time, to (i) terminate
this Agreement or (ii) accept the Property subject to such new

                                      -6-

<PAGE>

matters and proceed to close, with the further right to deduct from the Purchase
Price amounts secured by liens of a definite or ascertainable amount which
Seller has not removed as provided herein as well as amounts required to remove
such new matters. If Buyer makes no such election, Buyer shall be deemed to have
elected to terminate this Agreement as provided above.

     If necessary, the Closing Date shall be extended the number of days
necessary to give effect to the notice and cure periods set forth in this
Section 2.4.

     2.5  Service Contracts. During the Due Diligence Period, Buyer shall notify
Seller as to which Service Contracts Buyer will assume (the "Accepted Service
Contracts"). Buyer will assume the obligations arising from and after the
Closing Date under the Accepted Service Contracts that are not in default as of
the Closing Date. Seller shall terminate at Closing all Service Contracts that
are not so assumed and if Buyer fails to timely provide notice of acceptance,
Buyer shall be deemed to not have assumed any Service Contracts.

     2.6  Intentionally Omitted.

     2.7  Intentionally Omitted.

     2.8  CCRs. If the Property is subject to a declaration of covenants,
conditions and restrictions or similar instrument ("CCRs") governing or
affecting the use, operation, maintenance, management or improvement of such
Property, then as a condition to Buyer's obligation to close, at Closing, Seller
shall deliver into the escrow: (i) estoppel certificates, in form and substance
satisfactory to Buyer, from the declarant, association, committee, agent and/or
other person or entity having governing or approval rights under the CCRs, and
(ii) a recordable assignment, in form and substance satisfactory to Buyer,
assigning any and all developer, declarant or other related rights or interests
of Seller (or any Affiliate of Seller) in or under the CCRs.

     2.9  Assumed Debt. The Property is to be conveyed without release of, and
the Buyer shall accept title to the Property subject to, the lien of the
existing mortgage and related security instruments and documents listed on
Appendix 2.9 attached hereto in favor of Wachovia Securities ("Lender") with
respect to the Property, which mortgage and related documents secures
indebtedness evidenced by a promissory note in favor of Lender in the original
principal amount of $6,623,019.00 (the "Assumed Debt") (herein, such mortgage,
promissory note and related documents are sometimes collectively referred to as
the "Loan Documents"). Such acceptance of the Assumed Debt shall be made in
accordance with the following:

(a)  Conditions to Assumption. It shall be a condition precedent to the
obligations of the Buyer to close this transaction subject to the Loan Documents
that (i) any required consent of Lender to the conveyance of the Property
subject to the Assumed Debt and the assumption of the Assumed Debt by the Buyer
shall have been obtained from Lender; (ii) any terms and conditions imposed by
Lender in connection with issuing such consent shall be satisfactory to the
Buyer in its sole discretion; (iii) the Buyer shall not be obligated to assume
any personal liability for any of the undertakings under the Loan Documents,
other than the exceptions to non-recourse provisions in the Loan Documents that
relate to events, acts or omissions first arising on or after the Closing Date;
(iv) as of the Closing Date there shall not exist any uncured default under the

                                      -7-

<PAGE>

Loan Documents and Seller shall have paid in full all interest and other amounts
(including, without limitation, installments of principal and interest and any
applicable fees, charges or penalties) which are due and payable under the Loan
Documents at or prior to Closing; (v) the form of agreement pursuant to which
the Buyer shall assume the borrower's obligations under the Loan Documents from
and after the Closing shall be satisfactory to the Buyer in its sole discretion
shall have been executed by Lender, shall contain such modifications to the Loan
Documents as Buyer reasonably requires and shall contain an acknowledgment from
the Lender that it has no knowledge of any uncured defaults under the Loan
Documents and (vi) as of the Closing Date the principal balance of the Assumed
Debt shall not exceed $5,152,182.75, which is the projected principal balance of
the Assumed Debt as of January 1, 2003.

(b)  Assumption Costs. All transfer or other fees charged by Lender and any
costs and expenses charged by Lender in connection with the transfer of the
Property subject to the Assumed Debt, recording costs and expenses relating to
the recordation of any mortgage assignment agreement or other documentation
relating to the transfer of the Property subject to the Assumed Debt, attorneys'
fees incurred by Lender, any title insurance premiums or costs for endorsements
required by Lender, and any other costs and expenses relating to the transfer of
the Property subject to the Assumed Debt shall be paid by Buyer, with the
exception that Seller shall pay all assumption fees required by Lender.

(c)  Cooperation. The parties shall cooperate in good faith and with reasonable
diligence to secure the approval of the Lender to the conveyance of the Property
subject to the Assumed Debt to the Buyer. The Buyer shall have the right to
negotiate directly with Lender concerning Lender's consent. The Buyer and Seller
shall promptly provide to Lender all information they may reasonably require in
order to obtain Lender's consent. If the conditions set forth in this Section
2.9 have not been satisfied by February 1, 2003, then Buyer may, by delivering
written notice to the Seller on or before February 1, 2003, (i) extend the
Closing Date for up to three (3) periods of thirty (30) days each (each an
"Extension Period"), (ii) terminate this Agreement, whereupon the Earnest Money
shall be returned to the Buyer and the parties will have no further obligations
under this Agreement, except as expressly stated herein or (iii) waive such
requirement. If the Buyer fails to make a timely election, Buyer shall be deemed
to have elected to terminate this Agreement. In the event Buyer elects to extend
the Closing Date pursuant to this Section 2.9(c) and the conditions set forth in
this Section 2.9 have not been satisfied by the end of the final Extension
Period, Buyer may by delivering written notice to Seller on or before the last
day of the final Extension Period, terminate this Agreement, whereupon the
Earnest Money shall be returned to the Buyer and the parties will have no
further obligations under this Agreement, except as expressly stated herein, or
waiver such requirement. If the Buyer fails to make a timely election, Buyer
shall be deemed to have elected to terminate this Agreement.

                     ARTICLE 3: OPERATIONS AND RISK OF LOSS

     3.1  Ongoing Operations. From the Effective Date through the Closing Date.

(a)  Operation of Property. Seller shall maintain the Property in substantially
its current condition and in compliance with all applicable laws and
regulations. Except as necessary to comply with the preceding sentence, Seller
shall not make any material alterations to the

                                      -8-

<PAGE>

Property or any portion thereof without Buyer's prior written consent. Seller
will perform its obligations under the Lease, Service Contracts and other
agreements that may affect the Property.

(b)  New Contracts. Seller shall not, without Buyer's prior written consent in
each instance, amend, terminate, exercise any rights or options under, grant
concessions regarding, or enter into any contract or agreement that will be an
obligation affecting the Property or binding on Buyer after Closing, except
contracts entered into in the ordinary course of business that are terminable
without cause or penalty on 30-days' notice (and Seller shall terminate any such
contracts on the Closing Date, unless such contracts are Accepted Service
Contracts).

(c)  Listings and Other Offers. Seller will not list the Property with any
broker or otherwise solicit or make or accept any offers to sell all or any part
of the Property, engage in any discussions or negotiations with any third party
with respect to the sale or other disposition of the Property, or enter into any
contracts or agreements (whether binding or not) regarding any disposition of
all or any part of the Property, except as set forth in Section 3.1(b) and (g).
Notwithstanding the foregoing, Seller shall be permitted to enter into a back-up
offer with respect to the Property, provided (i) Seller discloses the existence
of this Agreement to such party offering to buy the Property, and (ii) such
back-up offer does not in any way impede the transaction contemplated by this
Agreement.

(d)  Removal and Replacement of Tangible Personal Property. Seller will not
remove any Personal Property except as may be required for necessary repair or
replacement, and repair and replacement shall be of equal quality and quantity
as existed as of the time of its removal.

(e)  Maintenance of Insurance. Seller shall carry its existing insurance through
the Closing Date, and shall not allow any breach, default, termination or
cancellation of such insurance policies or agreements to occur or exist.

(f)  Maintenance of Permits. Seller shall maintain in existence all licenses,
permits and approvals necessary or reasonably appropriate to the ownership,
operation or improvement of the Property.

(g)  Leasing. Not amend, terminate or grant concessions regarding the Lease, or
enter into any lease without Buyer's prior written consent which Buyer may grant
or withhold in its sole discretion. In the event Buyer consents to such
amendment, termination, grant of concession or new lease, the definition of
"Lease" set forth in Section 1.2 hereof shall be modified accordingly. If Buyer
fails to object or otherwise reply to Seller's request for consent within five
(5) business days after receipt of Seller's request and all information
reasonably required in order to make an informed decision, Buyer shall be deemed
to have objected to such proposed action.

(h)  Other Actions. Neither Seller, nor its employees, agents or contractors,
shall take or fail to take any action that causes Seller's representations or
warranties to become untrue or that causes one or more of Buyer's conditions to
Closing to be unsatisfied.

(i)  Loan Documents. Seller will timely comply with all of the terms and
conditions of the Loan Documents. Seller shall not amend or terminate the Loan
Documents without Buyer's

                                      -9-

<PAGE>

prior written consent (which may be withheld in Buyer's reasonable discretion
prior to the expiration of the Due Diligence Period and in the Buyer's sole
discretion after the end of the Due Diligence Period).

     3.2  Damage. Risk of loss up to and including the Closing Date shall be
borne by Seller. Seller shall promptly give Buyer written notice of any damage
to the Property, describing such damage, stating whether such damage and loss of
rents is covered by insurance and the estimated cost of repairing such damage.
In the event of any material damage (described below) to or destruction of the
Property or any portion thereof, Buyer may, at its option, by notice to Seller
given within ten (10) business days after Seller has provided the above
described notice to Buyer together with all relevant information concerning the
nature and extent of such damage (and if necessary the Closing Date shall be
extended to give Buyer the full ten (10) business day period to make such
election): (i) terminate this Agreement and the Earnest Money shall be
immediately returned to Buyer, or (ii) proceed under this Agreement, receive any
insurance proceeds (including any rent loss insurance applicable to any period
on and after the Closing Date) due Seller or Buyer under the insurance carried
by Buyer as tenant of the Property as a result of such damage or destruction and
assume responsibility for such repair, and Buyer shall receive a credit at
Closing for any deductible, uninsured or coinsured amount under said insurance
policies. If Buyer fails to timely make such election, Buyer shall be deemed to
have elected to terminate this Agreement as provided above. If Buyer elects (ii)
above, Buyer may extend the Closing Date for the Property for up to an
additional thirty (30) day period in which to obtain insurance settlement
agreements with Buyer's insurers, and Seller will cooperate with Buyer in
obtaining the insurance proceeds and such agreements from Seller's insurers. If
the Property is not materially damaged, then (i) Buyer shall not have the right
to terminate this Agreement, (ii) Seller shall, to the extent requested and
directed by Buyer, repair the damage before the Closing in a manner reasonably
satisfactory to Buyer, and (iii) at Closing, Buyer shall receive any insurance
proceeds (including any rent loss insurance applicable to any period on and
after the Closing Date) due Seller as a result of such damage or destruction and
Buyer shall receive a credit at Closing for any deductible, uninsured or
co-insured amount under said insurance policies. To the extent Seller has
incurred reasonable market based costs in effecting the repairs requested and
directed by Buyer (which costs have not been assumed by Buyer), Seller shall be
paid a portion of such insurance proceeds in an amount equal to such costs.
"Material damage" and "Materially damaged" means, with respect to the Property,
damage in Buyer's reasonable estimation exceeds $100,000.

     3.3  Condemnation. In the event any proceedings in eminent domain are
contemplated, threatened or instituted by any body having the power of eminent
domain that materially effect the use of the Property or any portion thereof,
Buyer may, at its option, by notice to Seller given within ten (10) business
days after Seller provides written notice to Buyer of such proceedings together
with all relevant information concerning such proceedings (and if necessary the
Closing Date shall be extended to give Buyer the full ten (10) business day
period to make such election): (i) terminate this Agreement and the Earnest
Money shall be immediately returned to Buyer, or (ii) proceed under this
Agreement, in which event Seller shall, at the Closing, assign to Buyer its
entire right, title and interest in and to any condemnation award, and Buyer
shall have the sole right during the pendency of this Agreement to negotiate and
otherwise deal with the condemning authority in respect of such matter. If Buyer
fails to

                                      -10-

<PAGE>

timely make such election, Buyer shall be deemed to have elected to terminate
this Agreement as provided above.

                               ARTICLE 4: CLOSING

      4.1  Closing. The consummation of the transaction contemplated herein
("Closing") shall occur on the Closing Date through an escrow with the Escrow
Agent at the offices of the Escrow Agent. Buyer and Seller shall execute
supplemental escrow instructions as may be appropriate to enable Escrow Agent to
comply with the terms of this Agreement, so long as such instructions are not in
conflict with this Agreement. The transactions described herein shall be closed
by means of concurrent delivery of the documents of title, transfer of interest,
delivery of Title Policy and the Purchase Price, customarily referred to as a
"New York Style" closing.

      4.2  Conditions to the Parties' Obligations to Close.

(a)   Mutual Conditions. In addition to all other conditions set forth herein,
the obligation of Seller, on the one hand, and Buyer, on the other hand, to
consummate the transactions contemplated hereunder shall be contingent upon the
following:

(i)   The other party's representations and warranties contained herein shall be
true and correct in all material respects as of the date of this Agreement and
the Closing Date, without giving effect to any knowledge based qualifications.

(ii)  As of the Closing Date, the other party shall have performed its
obligations hereunder and all deliveries to be made at Closing have been
tendered;

(iii) There shall exist no pending or threatened actions, suits, arbitrations,
claims, attachments, proceedings, assignments for the benefit of creditors,
insolvency, bankruptcy, reorganization or other proceedings, pending or
threatened against the other party that would materially and adversely affect
the operation or value of the Property or the other party's ability to perform
its obligations under this Agreement or that seeks to restrain or prohibit, or
obtain damages on a discovery order; and

(iv)  All other conditions set forth in this Agreement to the other party's
obligation to close shall have been satisfied.

(b)   Buyer Conditions.  As a condition to Buyer's obligation to close:

(i)   there shall be no notice issued after the expiration of the Due Diligence
Period of any material violation or alleged violation of any law, rule,
regulation or code, including building code, with respect to the Property, which
has not been corrected to the satisfaction of the issuer of the notice; and

(ii)  at Closing, Seller shall not be in default under any agreement to be
assigned to, or obligation to be assumed by, Buyer under this Agreement
including without limitation the Loan Documents; and

                                      -11-

<PAGE>

(iii) the Lease shall be in full force and effect and no material default or
claim by landlord shall exist or have arisen under the Lease.

(c)   Failure of Condition. So long as a party is not in default hereunder, if
any condition to such party's obligation to proceed with the Closing set forth
in this Agreement has not been satisfied as of the Closing Date, such party may,
in its sole discretion, (i) terminate this Agreement with respect to the
Property, by delivering written notice to the other party on or before the
Closing Date; provided, however, the other party shall have the right to elect,
by delivering written notice to the party terminating this Agreement, to extend
the Closing Date for up to a total of 10 business days to satisfy such
condition, (ii) elect to extend the time available for the satisfaction of such
condition by up to a total of 10 business days or (iii) elect on or before the
Closing Date to close, notwithstanding the non-satisfaction of such condition,
in which event such party shall be deemed to have waived any such condition. If
such party elects (a) to proceed pursuant to clause (ii) above, or (b) to
proceed pursuant to clause (i) above and the other party elects to extend the
Closing Date to attempt to satisfy the condition, and in either case such
condition remains unsatisfied after the end of such extension period, then, at
such time, such party may elect to proceed pursuant to either clause (i) (with
the other party having no further right to extend the Closing Date) or (iii)
above. Any failure to timely elect to proceed under clauses (i), (ii) or (iii)
above, shall be deemed an election to proceed under clause (i) above.

      4.3  Seller's Deliveries in Escrow. At least one business day prior to the
Closing Date, Seller shall deliver in escrow to the Escrow Agent or outside of
escrow to Buyer the following, each duly executed and, where appropriate, in
recordable form and notarized:

(a)   Deed. A Massachusetts quitclaim deed substantially in the form attached
hereto as Appendix 4.3(a), modified to conform with the laws of the state where
the Property is located, executed and acknowledged by Seller, conveying to Buyer
good, indefeasible and marketable fee simple title to the Real Property, subject
only to the Permitted Exceptions (the "Deed");

(b)   Bill of Sale and Omnibus Agreement. A Bill of Sale and Omnibus Agreement
in the form of Appendix 4.3(b) attached hereto (the "Omnibus Agreement"),
executed and acknowledged by Seller, vesting in Buyer good title to the property
described therein free of any claims, except for the Permitted Exceptions and
including without limitation, the Accepted Service Contracts;

(c)   Assignment of Lease. An assignment of lease in the form of Appendix 4.3(c)
attached hereto (the "Assignment"), executed and acknowledged by Seller, vesting
in Buyer good title to the Lease.

(d)   Intentionally Omitted.

(e)   State Law Disclosures. Such disclosures and reports as are required by
applicable state and local law in connection with the conveyance of real
property;

(f)   FIRPTA. An affidavit of Seller (the "FIRPTA Affidavit") substantially in
the form of Appendix 4.3(f) attached hereto. If Seller fail to provide the
necessary affidavit and/or

                                      -12-

<PAGE>

documentation of exemption on the Closing Date, Buyer may proceed in accordance
with the withholding provisions imposed by Section 1445 of the Internal Revenue
Code of 1986, as amended;

(g)  Intentionally Omitted;

(h)  Terminations. Terminations, effective no later than Closing, of those
Service Contracts which are not Accepted Service Contracts;

(i)  CCRs. The estoppels and assignments concerning the CCRs, as provided in
Section 2.8;

(j)  Authority. Evidence of the existence, organization and authority of Seller
and of the authority of the persons executing documents on behalf of Seller
reasonably satisfactory to the Escrow Agent, the Title Company and Buyer;

(k)  Title Documents. Affidavits required by the Title Company sufficient to
have the general exceptions deleted, together with "gap" indemnities in the form
customarily required by such Title Company, together with such other documents
and instruments required by the Title Company in order to issue the Title
Policy;

(l)  Intentionally Omitted.

(m)  Other Deliveries. Such other documents, certificates and instruments
reasonably necessary in order to effectuate the transaction described herein,
including without limitation, transfer tax declarations, broker lien waivers,
bulk sale clearances and any documents or representations necessary to comply
with any applicable environmental transfer disclosure laws and any other Closing
deliveries required to be made by or on behalf of Seller.

(n)  Permits and Approvals. All licenses, permits and approvals related to the
ownership, operation and use of the Property, including without limitation,
certificate(s) of occupancy.

(o)  Letter of Credit Security Deposit. Reissued or amended letter of credit for
the letter of credit security deposit held under the Lease, naming Buyer as
beneficiary.

(p)  Assumed Debt Documents. Such documents and deliveries from or on behalf of
Seller as may be required by the Lender to effect the conveyance of the Property
subject to the Loan Documents pursuant to Section 2.9;

     4.4  Buyer's Deliveries in Escrow. Except as specified below, at least one
business day prior to the Closing Date, Buyer shall deliver in escrow to the
Escrow Agent or outside of escrow to Seller the following, each duly executed
and, where appropriate, in recordable form and notarized:

(a)  Purchase Price. The cash portion of the Purchase Price (i.e. $3,400,000),
plus or minus applicable prorations, deposited by Buyer with the Escrow Agent in
immediate, same-day federal funds wired for credit into the Escrow Agent's
escrow account;

(b)  Bill of Sale and Omnibus Agreement. The Omnibus Agreement, executed by
Buyer;

                                      -13-

<PAGE>

(c)  Assignment of Lease.  The Assignment, executed by Buyer.

(d)  State Law Disclosures. Such disclosures and reports as are required by
applicable state and local law in connection with the conveyance of real
property;

(e)  Other Deliveries. Such other documents, certificates and instruments
reasonably necessary in order to effectuate the transactions described herein.

(f)  Assumed Debt Documents. Such documents and deliveries from or on behalf of
the Buyer as may be required by the Lender and is acceptable to the Buyer to
effect the conveyance of the Property subject to the Loan Documents pursuant to
Section 2.9;

     4.5  Closing Statements. At least one business day prior to the Closing
Date, Seller and Buyer shall deposit with the Escrow Agent executed closing
statements for the Property consistent with this Agreement.

     4.6  Possession. Seller shall deliver possession of the Property to Buyer
at the Closing subject only to the Permitted Exceptions.

     4.7  Delivery of Books and Records. Immediately after the Closing, Seller
shall deliver to the offices of Buyer or the parties shall arrange for delivery
at the Property: the original documents and instruments assigned to Buyer
pursuant to the Assignment; copies or originals of all books and records of
account, receipts for deposits, unpaid bills and other papers or documents which
pertain to the Property; and other items, if any, pertaining to the Property;
and, if in Seller's possession or control, the original "as-built" plans and
specifications and all other available plans and specifications. Seller shall
cooperate with Buyer after Closing to transfer to Buyer any such information
stored electronically. The obligations of Seller under this Section 4.7 shall
survive Closing.

                          ARTICLE 5: PRORATIONS; COSTS

     5.1  Prorations. Not less than three (3) business days prior to Closing,
Seller shall provide to Buyer such information and verification reasonably
necessary to support the prorations under this Article 5. The items in this
Section 5.1 shall be prorated between Seller and Buyer as of the close of
business on the day immediately preceding the Closing Date, the Closing Date
being a day of income and expense to Buyer. Credits to Buyer shall be credited
against the Purchase Price to be paid as provided in Section 1.3 and, if such
amount is exhausted, shall be paid in cash by Seller to Buyer at the Closing.
Post-closing re-prorations and adjustments shall be paid in cash.

(a)  Taxes and Assessments. The parties acknowledge that the tenant under the
Lease pays real estate taxes and assessments ("Taxes") directly to the taxing
authority and there will be no adjustment for Taxes between Buyer and Seller at
the Closing. Any other special assessments which are not the responsibility of
the tenant under the Lease shall be prorated only for the year of Closing.

                                      -14-

<PAGE>

(b)  Collected Rent. Buyer shall receive from Seller a credit for any rent and
other income (and any applicable state or local tax on rent) under the Lease
collected by Seller before Closing that applies to any period after Closing,
except for the Rent Prepayment which shall be retained by Seller as a portion of
the Purchase Price. Any rent or other income received by Seller after Closing
which are owed to Buyer shall be held in trust and remitted to Buyer promptly
after receipt for allocation and disbursement as provided in this Section
5.1(b).

(c)  Loan Reserve. At Closing, either (i) the reserve held by Lender pursuant to
the Loan Documents (the "Reserve"), which amount is currently approximately
$63,000.00, will remain with the Lender with Buyer having all rights of the
borrower to the Reserve pursuant to the terms of the Loan Documents and Seller
will receive a credit in the amount of the Reserve, or (ii) the amount of the
Reserve will be refunded to Seller.

(d)  Tenant Deposits. All tenant security deposits (and interest thereon if
required by law or contract to be earned thereon) shall be transferred or
credited to Buyer at Closing. As of Closing, Buyer shall assume Seller's
obligations related to tenant security deposits, but only to the extent they are
properly credited and transferred to Buyer. On or before the Closing Date,
Seller shall cause Buyer to be named as the beneficiary under the letter of
credit held by Seller under the Lease (the "Letter or Credit") and shall deliver
to Buyer the original of the Letter of Credit.

(e)  Leasing Commissions. On or before the Closing Date, Seller shall pay in
full all leasing commissions due to leasing or other agents for the current
remaining term of the Lease (determined without regard to any unexercised
termination or cancellation right); provided, however, that if any leasing agent
will not accept such payment, then Buyer shall receive a credit against the
Purchase Price at Closing in an amount equal to the then-unpaid leasing
commissions and Buyer shall assume, in writing, the obligation to pay any such
leasing commissions due thereunder after the Closing Date up to the amount of
such credit. Leasing commissions arising in connection with any renewal or
expansion rights under the Lease that are properly exercisable after the date of
this Agreement and disclosed in the Commission Schedule shall be Buyer's
obligation to pay as and when due.

(f)  Other Revenues and Income. At Closing, Seller shall pay to or at the
direction of Buyer any and all revenues and income in connection with the
operation at the Property not covered above and collected by or on behalf of
Seller before the Closing and applicable to Buyer's period of ownership, and if
such amount cannot be determined at Closing, such payment shall be based upon an
estimate. If applicable, interest and impounds or other tax, insurance or other
reserves with respect to the Assumed Debt shall also be prorated. The parties
shall use reasonable efforts to make a final determination of such amount and
make an appropriate adjusting payment within 30 days after Closing. In addition,
each party shall promptly remit or cause to be remitted to the other any such
revenues and income collected by such party after Closing and applicable to the
other party's period of ownership.

(g)  Assumed Debt. Buyer shall receive a credit for (i) unpaid principal balance
of the Assumed Debt, (ii) the prorated portion of the monthly principal payment,
if Closing occurs on a day other than the first of the month, and (iii) all
accrued and unpaid interest and other amounts

                                      -15-

<PAGE>

due and payable with respect to such Assumed Debt as of the Closing Date. For
example, if the Closing Date occurs on January 26, 2003, pursuant to Section
5.1(b) and this Section 5.1(g), Seller shall be (i) entitled to 25 of the 31
days of January 2003 with respect to rent due under the Lease for the period of
January 2003 and (ii) responsible for 25 of the 31 days of January 2003 for
principal and interest on the Assumed Debt based on fixed payments for the month
of January 2003, divided over 31 days.

     5.2  Post-Closing Corrections. Either party shall be entitled to a
post-Closing adjustment for any incorrect proration or adjustment, provided such
adjustment is claimed by such party within one year after Closing. No other
expense related to the ownership or operation of the Property shall be charged
to or paid or assumed by Buyer under this Agreement, other than those
obligations expressly assumed by Buyer.

     5.3  Utilities. Except for utilities which are in the name of and billed
directly to tenants, Seller shall cause the meters, if any, for utilities to be
read the day on which the Closing Date occurs and to pay the bills rendered on
the basis of such readings. If any such meter reading for any utility is not
available, then adjustment therefor shall be made on the basis of the most
recently issued bills therefor which are based on meter readings no earlier than
30 days before the Closing Date; and such adjustment shall be reprorated when
the next utility bills are received. The credit received under this Section 5.3
shall not be duplicative of any credit received under Section 5.1(c) which is
specifically allocable to such items.

     5.4  Service Contracts. Seller or Buyer, as the case may be, shall receive
a credit for regular charges under Accepted Service Contracts paid and
applicable to Buyer's period of ownership or payable and applicable to Seller's
period of ownership, respectively. Seller shall pay at Closing all amounts owing
under those Service Contracts that are not Accepted Service Contracts.

     5.5  Costs. Buyer shall pay (i) one-half of the Escrow Agent's escrow fee,
closing charges and any cancellation fee, (ii) the costs associated with Buyer's
due diligence activities, (iii) the cost of the Title Commitment, extended
coverage, Survey and the Title Policy, including all Endorsements, and (iv) all
fees and charges relating to the loan assumption that are described in Section
2.9 as Buyer's responsibility. Seller shall pay (i) one-half of the Escrow
Agent's escrow fee, closing charges and any cancellation fee, (ii) all recording
fees or other charges incurred in connection with clearing title and (iii) the
loan assumption fee described in Section 2.9 as Seller's responsibility. Each
party shall be responsible for their own attorney's and other professional fees.

     5.6  Sales, Transfer, and Documentary Taxes. All sales, gross receipts,
compensating, stamp, excise, documentary, transfer, deed or similar taxes and
fees imposed in connection with this transaction under applicable state or
county law or local ordinance shall be paid by Seller. Seller and Buyer shall
execute any applicable city, county and state transfer tax or other
declarations.

     5.7  Utility Deposits. Seller shall receive a credit for the amount of
deposits, if any, with utility companies that are transferable and that are
assigned to Buyer at the Closing.

                                      -16-

<PAGE>

     5.8  Sales Commissions. Seller and Buyer represent and warrant each to the
other that they have not dealt with any real estate broker, sales person or
finder in connection with this transaction other than Broker. If this
transaction is closed, Buyer shall pay Broker in accordance with their separate
agreement. Except as expressly set forth above, in the event of any claim for
broker's or finder's fees or commissions in connection with the negotiation,
execution or consummation of this Agreement or the transactions contemplated
hereby, each party shall indemnify, defend and hold harmless the other party
from and against any such claim based upon any actual or alleged statement,
representation or agreement of the indemnifying party. This provision shall
survive any termination of this Agreement.

     5.9  Intentionally Omitted.

     5.10 Intentionally Omitted.

                   ARTICLE 6: REPRESENTATIONS AND WARRANTIES

     6.1  Seller's Representations and Warranties. As a material inducement to
Buyer to execute this Agreement and consummate this transaction, Seller
represents and warrants to Buyer that:

(a)  Organization and Authority. Seller has been duly organized, is validly
existing, and is in good standing and is qualified to do business in the state
in which the Real Property is located. Seller has the full right, power and
authority and has obtained any and all consents required to enter into this
Agreement, all of the documents to be delivered by Seller at the Closing and to
consummate or cause to be consummated the transactions contemplated hereby. This
Agreement has been, and all of the documents to be delivered by Seller at the
Closing will be, authorized and properly executed and constitutes, or will
constitute, as appropriate, the valid and binding obligation of Seller,
enforceable in accordance with their terms.

(b)  Conflicts and Pending Actions or Proceedings. There is no agreement to
which Seller is a party or, to Seller's knowledge, binding on Seller which is in
conflict with this Agreement. Except as disclosed in the Property Information,
there is no action or proceeding pending or, to Seller's knowledge, threatened
against Seller or relating to the Property. To Seller's knowledge, no
condemnation, eminent domain or similar proceedings are pending or threatened
with regard to the Property. Except as set forth in the Title Commitment, Seller
has not received any notice and has no knowledge of any pending or threatened
liens, special assessments, impositions or increases in assessed valuations to
be made against the Property.

(c)  Lease. The documents constituting the Lease that are delivered to Buyer
pursuant to Section 2.2 are true, correct and complete copies of the Lease
affecting the Property, including any and all amendments and guarantees, and the
Lease listed on Appendix 6.1(c) (the "Lease") is the only Lease affecting the
Property. Except for the tenant under the Lease, there are no parties holding
any right to occupy the Property or any portion thereof. There are no leasing or
other fees or commissions due, nor will any become due, in connection with the
Lease or any renewal or extension or expansion of the Lease, and no
understanding or agreement with any party exists as to payment of any leasing
commissions or fees regarding future leases or as to the procuring of tenants.
The Lease is in full force and effect and neither Seller nor, to Seller's best

                                      -17-

<PAGE>

knowledge, the tenant is in default. Except in connection with the Assumed Debt,
Seller has not assigned or pledged the Lease or Rents or any interest therein.

(d)  Service Contracts. The list of Service Contracts attached hereto as
Appendix 6.1(d) is a true, correct and complete list of all contracts affecting
the Property. The documents constituting the Service Contracts that are
delivered to Buyer as a part of the initial Property Information are true,
correct and complete copies of all the Service Contracts affecting the Property.
Neither Seller nor, to Seller's knowledge, any other party is in default under
any Service Contract. There are no contracts affecting the Property other than
the Service Contracts and this Agreement.

(e)  Operating Statements. The Operating Statements, if any, delivered to Buyer
pursuant to this Agreement show all items of income and expense (operating and
capital) incurred in connection with the ownership, operation, and management of
the Property for the periods indicated and are true, correct, and complete in
all material respects. No material adverse change has occurred from the
respective dates of such Operating Statements to the date hereof.

(f)  Permits, Legal Compliance, and Notice of Defects. Seller has all licenses,
permits and certificates necessary for the use and operation of the Property,
including, without limitation, all certificates of occupancy necessary for the
occupancy of the Property, all of which are in full force and effect, and Seller
has not taken or failed to take any action that would result in its revocation,
and has not received any written notice of an intention to revoke any of them.
To Seller's knowledge, neither the Property nor the use thereof violates any
governmental law or regulation or any covenants or restrictions encumbering the
Property. To Seller's knowledge there are no material physical defects in the
Improvements. Seller has not received any written notice from any insurance
company or underwriter, nor is it aware, of any defects that would materially
adversely affect the insurability of the Property or cause an increase in
insurance premiums. Seller has received no written notice from any governmental
authority or other person of, and has no knowledge of any violation of zoning,
building, fire, health, environmental, or other statutes, ordinances,
regulations or orders (including those respecting the Americans with
Disabilities Act), or any restriction, condition, covenant or consent in regard
to the Property or any part thereof which have not been corrected to the
satisfaction of the issuer.

(g)  Environmental. Seller has no knowledge of any violation of Environmental
Laws related to the Property or the presence or release of Hazardous Materials
on or from the Property except as disclosed in the initially delivered Property
Information. Except for de minimis amounts of Hazardous Materials used, stored
and disposed of in accordance with Environmental Laws, and used in connection
with the ordinary maintenance and operation of the Property, and except as
disclosed in the Property Information, neither Seller nor, to Seller's
knowledge, any tenant or other occupant has manufactured, introduced, released
or discharged from or onto the Property any Hazardous Materials or any toxic
wastes, substances or materials (including, without limitation, asbestos), and
neither Seller, nor to Seller's knowledge any tenant or other occupant has used
the Property or any part thereof for the generation, treatment, storage,
handling or disposal of any Hazardous Materials. There are no underground
storage tanks located on the Property. Seller is aware that the Environmental
Assessments and/or studies listed on attached Appendix 6.1(g) pertaining to the
Property have been made and has furnished to Buyer a true,

                                      -18-

<PAGE>

correct and complete copy of each of them. Seller is not aware of any additional
environmental assessments or studies which exist with respect to the Property.

(h)  Disclosure. Other than this Agreement, the documents delivered at Closing
pursuant hereto, the Permitted Exceptions, and the Accepted Service Contracts,
there are no contracts or agreements of any kind relating to the Property to
which Seller or its agents is a party and which would be binding on Buyer after
closing. Seller has delivered to Buyer all written materials in Seller's
possession or control which contain information or disclose facts or conditions
that would have a material adverse impact on the use, operation or marketability
of the Property. Copies of Property Information delivered to Buyer pursuant to
Section 2.2 hereof are or will be true, correct and complete copies; and Seller
is not aware of any material inaccuracy or omission in the Property Information
delivered pursuant to Section 2.2.

(i)  Loan Documents. The documents delivered to the Buyer pursuant to Section
2.2 include true, accurate and complete copies of all of the documents and
instruments in effect with respect to the Loan Documents. The documents listed
in Appendix 2.9 constitute a complete list of all of the Loan Documents and have
not been amended or modified except as set forth on Appendix 2.9. Seller has not
received any notice that Seller is in default under the Loan Documents, nor does
any default or breach exist beyond any applicable cure period nor, to Seller's
knowledge, does any default or breach exist, or any event or circumstance,
which, with the giving of notice or passage of time, or both, would constitute a
default or breach by Seller under the Loan Documents.

     6.2 Buyer's Representations and Warranties. As a material inducement to
Seller to execute this Agreement and consummate this transaction, Buyer
represents and warrants to Seller that:

(a)  Organization and Authority. Buyer has been duly organized and is validly
existing as a Delaware corporation. Subject only to obtaining certain Board and
other internal approvals on or before the expiration of the Due Diligence
Period, Buyer has the full right and authority and has obtained any and all
consents required to enter into this Agreement and to consummate or cause to be
consummated the transactions contemplated hereby. This Agreement has been, and
all of the documents to be delivered by Buyer at the Closing will be, authorized
and properly executed and constitutes, or will constitute, as appropriate, the
valid and binding obligation of Buyer, enforceable in accordance with their
terms.

(b)  Conflicts and Pending Action. There is no agreement to which Buyer is a
party or to Buyer's knowledge binding on Buyer which is in conflict with this
Agreement. There is no action or proceeding pending or, to Buyer's knowledge,
threatened against Buyer which challenges or impairs Buyer's ability to execute
or perform its obligations under this Agreement.

(c)  Tenant of the Property. Varian Semiconductor Equipment Associates, Inc. is
the tenant of the Property under the Lease and is in possession of the entire
Property pursuant to the Lease. Varian Semiconductor Equipment Associates, Inc.
has not sublet any portion of the Property.

     6.3 Survival of Representations and Warranties. The representations and
warranties set forth in this Article 6 are made as of the date of this Agreement
and each of Seller

                                      -19-

<PAGE>

and Buyer shall be deemed to have remade all of their respective representations
and warranties as of the Closing Date. Such representations and warranties and
shall not be deemed to be merged into or waived by the instruments of Closing,
but shall survive the Closing for a period of two (2) years. Seller and Buyer
shall have the right to bring an action for breach of such representations and
warranties if they give the other party written notice of the circumstances
giving rise to the alleged breach within such two (2) year period and have
brought an action thereon within six (6) months of the expiration of such
period.

                        ARTICLE 7: DEFAULT AND REMEDIES

     7.1 Seller's Default. If this transaction fails to close as a result of
Seller's default (all conditions to Seller's obligations having been satisfied
or waived), the Earnest Money shall be returned to Buyer. In addition, Buyer
shall be entitled to such remedies for breach of contract as may be available at
law and in equity, including without limitation, the remedy of specific
performance. If, after Seller's default, Buyer elects not to proceed with the
Closing, then Seller will, on demand, reimburse Buyer for all expenses incurred
by Buyer in connection with this Agreement, including all due diligence
expenses.

     7.2 Buyer's Default. If this transaction fails to close due to the default
of Buyer (all conditions to Buyer's obligations having been satisfied or
waived), then Seller's sole remedy in such event shall be to terminate this
Agreement and to retain the Earnest Money as liquidated damages, Seller waiving
all other rights or remedies in the event of such default by Buyer. The parties
acknowledge that Seller's actual damages in the event of a default by Buyer
under this Agreement will be difficult to ascertain, and that such liquidated
damages represent the parties' best estimate of such damages.

     7.3 Other Expenses. If this Agreement is terminated due to the default of a
party, then the defaulting party shall pay any fees due to the Escrow Agent for
holding the Earnest Money and any fees due to the Title Company for cancellation
of the Title Commitment.

                           ARTICLE 8: INDEMNIFICATION

     8.1 Seller's Indemnity. Seller shall indemnify, defend and hold Buyer
harmless from any liability, claim, demand, loss, expense or damage
(collectively, "loss") that is: (a) suffered by, or asserted by any person or
entity against Buyer arising from any act or omission of Seller, its agents,
employees or contractors or otherwise arising out of the ownership or operation
of the Property first arising or occurring prior to the Closing; or (b) arising
out of the breach or inaccuracy of any of Seller's representations and
warranties set forth herein or (c) arising from any breach by Seller of any
obligation related to the Property other than those obligations which by this
Agreement, or any closing delivery, specifically becomes the obligation of
Buyer.

     8.2 Buyer's Indemnity. Buyer shall indemnify, defend and hold Seller
harmless of and from any loss that is: (a) suffered by, or asserted by any
person or entity against, Seller arising from any act or omission of Buyer, its
agents, employees or contractors or otherwise arising out of the ownership or
operation of the Property first arising or occurring on or after the Closing; or
(b) arising out of the breach or inaccuracy of any of Buyer's representations or

                                      -20-

<PAGE>

warranties set forth herein or (c) arising from any breach by Buyer of any
obligation of Buyer related to the Property which by this Agreement, or any
closing delivery, specifically becomes the obligation of Buyer.

     8.3 Procedure. The following provisions govern all actions for indemnity
under this Article 8 and any other provision of this Agreement. Promptly after
receipt by an indemnitee of notice of any claim, such indemnitee will, if a
claim in respect thereof is to be made against the indemnitor, deliver to the
indemnitor written notice thereof and the indemnitor shall have the right to
participate in and, if the indemnitor agrees in writing that it will be
responsible for any costs, expenses, judgments, damages, and losses incurred by
the indemnitee with respect to such claim, to assume the defense thereof, with
counsel mutually satisfactory to the parties; provided, however, that an
indemnitee shall have the right to retain its own counsel, with the fees and
expenses to be paid by the indemnitee, if the indemnitee reasonably believes
that representation of such indemnitee by the counsel retained by the indemnitor
would be inappropriate due to actual or potential differing interests between
such indemnitee and any other party represented by such counsel in such
proceeding. The failure of indemnitee to deliver written notice to the
indemnitor within a reasonable time after indemnitee receives notice of any such
claim shall relieve such indemnitor of any liability to the indemnitee under
this indemnity only if and to the extent that such failure is prejudicial to the
indemnitor's ability to defend such action, and the omission so to deliver
written notice to the indemnitor will not relieve it of any liability that it
may have to any indemnitee other than under this indemnity. If an indemnitee
settles a claim without the prior written consent of the indemnitor, then the
indemnitor shall be released from liability with respect to such claim unless
the indemnitor has unreasonably withheld such consent.

     8.4 Survivability. The obligations of the parties under this Article 8
shall survive the Closing.

                            ARTICLE 9: MISCELLANEOUS

     9.1 Parties Bound. Neither party may assign this Agreement without the
prior written consent of the other, and any such prohibited assignment shall be
void; provided, however, that Buyer may assign this Agreement without Seller's
consent to an Affiliate. Buyer shall not be relieved of its obligations under
this Agreement in the event of such assignment. Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the respective legal
representatives, successors, assigns, heirs, and devises of the parties.

     9.2 Headings. The article and paragraph headings of this Agreement are for
convenience only and in no way limit or enlarge the scope or meaning of the
language hereof.

     9.3 Invalidity and Waiver. If any portion of this Agreement is held invalid
or inoperative, then so far as is reasonable and possible the remainder of this
Agreement shall be deemed valid and operative, and, to the greatest extent
legally possible, effect shall be given to the intent manifested by the portion
held invalid or inoperative. The failure by either party to enforce against the
other any term or provision of this Agreement shall not be deemed to be a waiver
of such party's right to enforce against the other party the same or any other
such term or provision in the future.

                                      -21-

<PAGE>

     9.4  Governing Law. This Agreement shall, in all respects, be governed,
construed, applied, and enforced in accordance with the law of the state in
which the Real Property is located.

     9.5  Survival. The provisions of this Agreement that contemplate
performance after the Closing, the obligations of the parties not fully
performed at the Closing, and all indemnities set forth in this Agreement shall
survive the Closing and shall not be deemed to be merged into or waived by the
instruments of Closing.

     9.6  No Third Party Beneficiary. This Agreement is not intended to give or
confer any benefits, rights, privileges, claims, actions, or remedies to any
person or entity as a third party beneficiary, decree, or otherwise.

     9.7  Entirety and Amendments. This Agreement embodies the entire agreement
between the parties and supersedes all prior agreements and understandings
relating to the Property. This Agreement may be amended or supplemented only by
an instrument in writing executed by the party against whom enforcement is
sought.

     9.8  Time. Time is of the essence in the performance of this Agreement.

     9.9  Confidentiality. Seller shall make no public announcement or other
disclosure of this Agreement or any information related to this Agreement to
outside brokers or third parties, before or after the Closing, without the prior
written specific consent of Buyer; provided, however, that Seller may make
disclosure of this Agreement to its lenders, creditors, officers, employees and
agents as necessary to perform its obligations hereunder.

     9.10 Enforcement Expenses. Should either party employ attorneys to enforce
any of the provisions hereof, the party against whom any final judgment is
entered agrees to pay the prevailing party all reasonable costs, charges, and
expenses, including attorneys' fees and costs, expended or incurred in
connection therewith.

     9.11 Notices. All notices required or permitted hereunder shall be in
writing and shall be served on the parties at the addresses set forth in
Appendix 9.11. Any such notices shall be either (a) sent by overnight delivery
using a nationally recognized overnight courier, in which case notice shall be
deemed delivered one business day after deposit with such courier, (b) sent by
certified or regular U.S. mail, postage prepaid, in which case notice shall be
deemed delivered two business days after deposit in such mails, (c) sent by
facsimile, in which case notice shall be deemed delivered upon the mechanical
confirmation of delivery, or (d) sent by personal delivery, in which case notice
shall be deemed delivered upon receipt or refusal of delivery. A party's address
may be changed by written notice to the other party; provided, however, that no
notice of a change of address shall be effective until actual receipt of such
notice. Copies of notices are for informational purposes only, and a failure to
give or receive copies of any notice shall not be deemed a failure to give
notice. Notices given by counsel to Buyer shall be deemed given by Buyer and
notices given by counsel to Seller shall be deemed given by Seller.

     9.12 Construction. The parties acknowledge that the parties and their
counsel have reviewed and revised this Agreement and the documents to be
executed at the Closing and agree

                                      -22-

<PAGE>

that the normal rule of construction to the effect that any ambiguities are to
be resolved against the drafting party shall not be employed in the
interpretation of this Agreement, the documents to be delivered at Closing or
any exhibits or amendments thereto.

     9.13 Calculation of Time Periods. Unless otherwise specified, in computing
any period of time described herein, the day of the act or event after which the
designated period of time begins to run is not to be included and the last day
of the period so computed is to be included at, unless such last day is a
Saturday, Sunday or legal holiday for national banks in the location where the
Property is located, in which event the period shall run until the end of the
next day which is neither a Saturday, Sunday, or legal holiday. The last day of
any period of time described herein shall be deemed to end at 5 p.m. E.S.T.

     9.14 Intentionally Omitted.

     9.15 Execution in Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original, and all
of such counterparts shall constitute one Agreement. To facilitate execution of
this Agreement, the parties may execute and exchange by telephone facsimile
counterparts of the signature pages.

     9.16 Intentionally Omitted.

     9.17 Further Assurances. In addition to the acts and deeds recited herein
and contemplated to be performed, executed and/or delivered by either party at
Closing, each party agrees to perform, execute and deliver, but without any
obligation to incur any additional liability or expense, on or after the Closing
any further deliveries and assurances as may be reasonably necessary to
consummate the transactions contemplated hereby or to further perfect the
conveyance, transfer and assignment of the Property to Buyer.

     9.18 Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE
PARTIES HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

     9.19 Intentionally Omitted.

     9.20 1031 Exchange. Buyer may consummate the purchase of the Property as
part of a so-called like kind exchange (the "Buyer's Exchange") pursuant to
Section 1031 of the Code, provided that: (1) the Closing shall not be delayed or
affected by reason of the Buyer's Exchange nor shall the consummation or
accomplishment of the Buyer's Exchange be a condition precedent or condition
subsequent to Buyer's obligations under this Agreement; (2) Buyer shall effect
the Buyer's Exchange through an assignment of this Agreement, or its rights
under this Agreement, to a qualified intermediary; (3) Seller shall not be
required to take an assignment of the purchase agreement for the relinquished
property or be required to acquire or hold title to any real property for
purposes of consummating the Buyer's Exchange;(4) Buyer shall pay any additional
costs that would not otherwise have been incurred by Buyer or Seller had Buyer
not consummated its purchase through the Buyer's Exchange. Seller's acquiescence
to the Buyer's Exchange shall not affect or diminish in any manner its rights
hereunder nor shall

                                      -23-

<PAGE>

Seller be responsible for compliance with or be deemed to have warranted to
Buyer that the Buyer's Exchange in fact complies with ss. 1031 of the Code; and
(5) Buyer shall indemnify, defend, and hold Seller harmless from or against all
claims, losses, costs, damages, liabilities (including reasonable attorneys'
fees) in connection therewith.

     Seller may consummate the purchase of the Property as part of a so-called
like kind exchange (the "Seller's Exchange") pursuant to Section 1031 of the
Code, provided that: (1) the Closing shall not be delayed or affected by reason
of the Seller's Exchange nor shall the consummation or accomplishment of the
Seller's Exchange be a condition precedent or condition subsequent to Buyer's
obligations under this Agreement; (2) Buyer shall effect the Seller's Exchange
through an assignment of this Agreement, or its rights under this Agreement, to
a qualified intermediary; (3) Seller shall not be required to take an assignment
of the purchase agreement for the relinquished property or be required to
acquire or hold title to any real property for purposes of consummating the
Seller's Exchange;(4) Buyer shall pay any additional costs that would not
otherwise have been incurred by Buyer or Seller had Buyer not consummated its
purchase through the Seller's Exchange. Seller's acquiescence to the Seller's
Exchange shall not affect or diminish in any manner its rights hereunder nor
shall Seller be responsible for compliance with or be deemed to have warranted
to Buyer that the Seller's Exchange in fact complies with ss. 1031 of the Code;
and (5) Buyer shall indemnify, defend, and hold Seller harmless from or against
all claims, losses, costs, damages, liabilities (including reasonable attorneys'
fees) in connection therewith.

     9.21 Mutual Execution. Until this Agreement has been duly executed by both
Buyer and Seller and a fully executed copy has been delivered to each of Buyer
and Seller (which may occur by facsimile transmission), this Agreement shall not
be legally binding against the parties. Execution of this Agreement by Buyer
shall constitute an offer to acquire the Property on the terms and conditions
set forth herein but, if not executed by Seller within five (5) days after
delivery by Buyer, it may be withdrawn by Buyer in its discretion at any time
thereafter.

                            [Signature Page Follows]

                                      -24-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Agreement on the day and year written below.

                                        SELLER:

                                        BERKSHIRE-NEWBURYPORT LIMITED
                                        PARTNERSHIP
                                        a Massachusetts limited partnership

                                        By:  /s/ OSCAR H.PLOTKIN
                                           -------------------------------------
                                        Name:    Oscar H. Plotkin
                                             -----------------------------------
                                        Title:   President
                                              ----------------------------------

Dated: November 27, 2002

                                        BUYER:

                                        VARIAN SEMICONDUCTOR EQUIPMENT
                                        ASSOCIATES, INC.
                                        a Delaware corporation

                                        By:  /s/ ROBERT J. HALLIDAY
                                           -------------------------------------
                                        Name:    Robert J. Halliday
                                             -----------------------------------
                                        Title:   Vice President and Chief
                                              ----------------------------------
                                                 Financial Officer
                                              ----------------------------------

Dated: November 27, 2002

                                      -25-

<PAGE>

                                    Exhibit A

                       Legal Description of Real Property

     That certain real property located at 4 Stanley Tucker Drive, Newburyport,
MA, and more particularly described as follows:

     A certain parcel of land in Newburyport, Massachusetts, being shown as lot
62 on a plan entitled "Site Survey Plan of Land in Newburyport, Massachusetts",
prepared by Port Engineering Associates, Inc., dated October 27, 1995," which
plan is recorded with the deed at Book 13275, Page 483.

<PAGE>

                                  APPENDIX 1.3

                                Escrow Agreement

     This Escrow Agreement (this "Agreement") is made as of the ___ day of
________________________, 2002 by and among Berkshire-Newburyport Limited
Partnership ("Seller"), Varian Semiconductor Equipment Associates, Inc.
("Buyer") and First American Title Insurance Company ("Escrow Agent").

                                 R E C I T A L S

     A. Seller and Buyer have entered into that certain Purchase and Sale
Agreement (the "Purchase and Sale Agreement") dated as of even date herewith,
with respect to certain property (the "Property") described therein.

     B. All terms capitalized but not defined herein, shall have the respective
meanings ascribed to them in the Purchase and Sale Agreement.

     C. Pursuant to the Purchase and Sale Agreement, among other things, Buyer
has and will make deposits of Earnest Money to be held, invested and disbursed
as provided herein.

     NOW, THEREFORE, for good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged the parties hereto agree as
follows:

     1. Recitals. The recitals set forth above are true and correct and are
incorporated herein by reference.

     2. Investment and Use of Funds. The Escrow Agent shall invest the Earnest
Money in investments directed by Buyer, shall not commingle the Earnest Money
with any funds of the Escrow Agent or others except as provided herein, and
shall promptly provide Buyer and Seller with confirmation of the investments
made.

     3. Termination before Expiration of Due Diligence Period. Buyer shall
notify the Escrow Agent of the date that the Due Diligence Period ends promptly
after such date is established under the Purchase and Sale Agreement, and Escrow
Agent may rely upon such notice. If Buyer elects (or is deemed to have elected)
to terminate the Purchase and Sale Agreement on or prior to the expiration of
the Due Diligence Period, Escrow Agent shall, upon written direction from Buyer,
pay the entire Earnest Money to Buyer one business day following receipt of such
direction (as long as the current investment can be liquidated in one day),
despite any contrary instructions from Seller. Seller agrees it shall have no
right to bring any action against Escrow Agent which would have the effect of
delaying, preventing, or in any way interrupting Escrow Agent's delivery of the
Earnest Money to Buyer pursuant to this paragraph, any remedy of Seller being
against Buyer, not Escrow Agent.

     4. Termination after Expiration of Due Diligence Period. At any time after
the expiration of the Due Diligence Period, Escrow Agent shall retain the
Earnest Money until it receives written instructions executed by both Seller and
Buyer as to the disposition and disbursement of the Earnest Money, or until
ordered by final court order, decree or judgment,

<PAGE>

which is not subject to appeal, to deliver the Earnest Money to a particular
party, in which event the Earnest Money shall be delivered in accordance with
such notice, instruction, order, decree or judgment.

     5. Interpleader. Seller and Buyer mutually agree that in the event of any
controversy regarding the Earnest Money after the expiration of the Due
Diligence Period, unless mutual written instructions are received by the Escrow
Agent directing the Earnest Money's disposition, the Escrow Agent shall not take
any action, but instead shall await the disposition of any proceeding relating
to the Earnest Money or, at the Escrow Agent's option, the Escrow Agent may
interplead all parties and deposit the Earnest Money with a court of competent
jurisdiction in which event the Escrow Agent may recover all of its court costs
and reasonable attorneys' fees. Seller or Buyer, whichever loses in any such
interpleader action, shall be solely obligated to pay such costs and fees of the
Escrow Agent, as well as the reasonable attorneys' fees of the prevailing party
in accordance with the other provisions of the Purchase and Sale Agreement.

     6. Liability of Escrow Agent. The parties acknowledge that the Escrow Agent
is acting solely as a stakeholder at their request and for their convenience,
that the Escrow Agent shall not be deemed to be the agent of either of the
parties, and that the Escrow Agent shall not be liable to either of the parties
for any action or omission on its part taken or made in good faith, and not in
disregard of this Agreement, but shall be liable for its willful misconduct and
negligent acts and for any loss, cost or expense incurred by Seller or Buyer
resulting from the Escrow Agent's mistake of law respecting the Escrow Agent's
scope or nature of its duties. Seller and Buyer shall jointly and severally
indemnify and hold the Escrow Agent harmless from and against all costs, claims
and expenses, including reasonable attorneys' fees, incurred in connection with
the performance of the Escrow Agent's duties hereunder, except with respect to
actions or omissions taken or made by the Escrow Agent in bad faith, in
disregard of this Agreement or involving willful misconduct or negligence on the
part of the Escrow Agent. In the event the Escrow Agent is directed to invest
the Earnest Money, the Escrow Agent shall not be held responsible for any loss
of principal or interest which may be incurred as a result of making the
directed investments or redeeming said investments at the direction of the
parties hereto.

     7. Commingling. The Escrow Agent may commingle the Earnest Money with other
deposits or with its own funds in the manner provided for the administration of
funds pursuant to applicable law; provided, however, that nothing herein shall
diminish the Escrow Agent's obligation to apply the full amount of the Earnest
Money in accordance with the terms of this Agreement.

     8. Closing. At Closing, the Escrow Agent shall fund the Earnest Money into
the closing escrow, to be delivered to Seller and applied as a credit against
the Purchase Price.

     9. Execution in Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, and all of
such counterparts shall constitute one Agreement. To facilitate execution of
this Agreement, the parties may execute and exchange by telephone facsimile
counterparts of the signature pages.

                                      -2-

<PAGE>

     10. Governing Law. This Agreement shall, in all respects, be governed,
construed, applied, and enforced in accordance with the law of the state in
which the Real Property is located.

                                      -3-

<PAGE>

     IN WITNESS WHEREOF, the undersigned have duly executed and delivered this
Agreement as of the day and year first set forth above.

SELLER:                                Buyer:

BERKSHIRE-NEWBURYPORT LIMITED          VARIAN SEMICONDUCTOR EQUIPMENT
PARTNERSHIP                            ASSOCIATES, INC., a Delaware limited
                                       partnership
By:________________________
   ______________, its attorney        By:________________________________
                                          __________________, its attorney

ESCROW AGENT:

FIRST AMERICAN TITLE INSURANCE
COMPANY

By:____________________________
Name:__________________________
Title:_________________________

                                      -4-

<PAGE>

                                  APPENDIX 2.2

                              Property Information

1.     Operating Statements. Operating statements of the Property for the 5
       years preceding the date of this Agreement and the current year-to-date
       ("Operating Statements").

2.     Management and/or Leasing Agreements. Copies of any management and/or
       leasing agreements under which the Property are managed and/or leased, if
       any. None.

3.     Tax Statements. Copies or a summary of ad valorem tax statements for the
       current or most recently available tax period and for the prior 36 months
       including the Property's tax identification number(s); and latest value
       renditions. Previously delivered to tenant under the Lease.

4.     Insurance. Copies of Seller's certificate of insurance for the Property,
       all insurance policies, a loss history, a list of any current claims
       relating to the Property, and any notices received by insurance carriers.
       None.

5.     Service Contracts. A list together with copies of all security,
       maintenance, service, supply, equipment rental and other contracts
       related to the operation of the Property ("Service Contracts"). None.

6.     Proceedings. Copies of any documents or materials relating to any current
       litigation, investigation, condemnation, or other proceeding pending or
       threatened against Seller or affecting the Property. None.

7.     Tangible Personal Property. A current inventory of all tangible personal
       property and fixtures. None.

8.     Maintenance Records. All maintenance work orders for the prior 12 months.
       Maintained by tenant under the Lease.

9.     List of Capital Improvements. A list of all capital improvements
       performed on the Property within the prior 24 months. Maintained by
       tenant under the Lease.

10.    Reports. Any environmental, geotechnical, soil, engineering and drainage
       reports, assessments, audits and surveys, in Seller's possession.

11.    As-Built Survey; Title Policy. All existing as-built surveys of the
       Property; and all existing title policies related to the Property, in
       Seller's possession.

12.    Site Plans. All site plans relating to the Property in Seller's
       possession.

<PAGE>

13.    As-Built Plans and Specifications. All as-built construction,
       architectural, mechanical, electrical, plumbing, landscaping and grading
       plans and specifications relating to the Property, in Seller's
       possession.

14.    Permits and Warranties. Copies of all warranties and guaranties, permits,
       certificates of occupancy, licenses and other approvals, in Seller's
       possession.

15.    General. Any other documents or information pertaining to the Property in
       Seller's possession or control or in the possession or control of
       Seller's agents or independent contractors.

16.    Financial Statements. Copies of financial statements reflecting the
       operation of the Property for the prior 5 calendar years, including
       statements of cash flow and year-end balance sheets, and statements of
       income, expense, accounts payable and accounts receivable for each such
       year, each prepared in accordance with generally accepted accounting
       principles consistently applied, and fairly presenting the financial
       position of Seller with respect to the Property at the end of each such
       year and the results of the operations thereof for such year.

17.    Lease. Copy of the Lease

                                       -2-

<PAGE>

                                  APPENDIX 2.9

                                 Loan Documents

     1. Promissory Note dated November 5, 1996, executed by
Berkshire-Newburyport Limited Partnership, in favor of CS First Boston

     2. Mortgage and Security Agreement dated as of November 5, 1996, executed
by Berkshire-Newburyport Limited Partnership, in favor of CS First Boston

     3. Assignment of Leases and Rents dated as of November 5, 1996, executed by
Berkshire-Newburyport Limited Partnership, in favor of CS First Boston

     4. UCC-1 Financing Statement filed November 5, 1996 in Book 13833, Page
213, executed by Berkshire-Newburyport Limited Partnership, as debtor, in favor
of CS First Boston, as secured party

     5. UCC-1 Financing Statement filed November 5, 1996 in Book 13893 Page 427,
executed by Berkshire-Newburyport Limited Partnership, as debtor, in favor of CS
First Boston, as secured party

     6. Subordination, Non-Disturbance and Attornment Agreement dated as of
October 31, 1996 by and among CS First Boston Mortgage Capital Corp., Genus,
Inc. and Berkshire-Newburyport Limited Partnership

     7. Consent dated July 29, 1998, executed by The Chase Manhattan Bank,
consenting to the assignment of the Lease to Varian Associates, Inc.

     8. Assignment of Mortgage and Security Agreement dated as of June 30, 1997
by CS First Boston Mortgage Capital Corp., in favor of The Chase Manhattan Bank,
as Trustee

     9. Assignment of Assignment of Leases and Rents dated as of June 30, 1997
by CS First Boston Mortgage Capital Corp., in favor of The Chase Manhattan Bank,
as Trustee

     10. Irrevocable Standby Letter of Credit issued by First Union in favor of
Chase Manhattan Bank, as beneficiary, for the account of Varian Associates, Inc.
in the amount of $2,800,000.00

     11. Pledge and Custodial Agreement dated as of October 31, 1996 among
Berkshire-Newburyport Limited Partnership, Genus, Inc., CS First Boston Mortgage
Capital Corp., and Fleet Bank, N.A.

     12. Assignment and Assumption of Pledge and Custodial Agreement dated July
29, 1998 between Genus, Inc., Varian Associates, Inc., Berkshire-Newburyport
Limited Partnership, The Chase Manhattan Bank, as Trustee for Credit Suisse
First Boston Mortgage Securities Corp.

<PAGE>

     13. Collateral Assignment made as of October 31, 1996, by
Berkshire-Newburyport Limited Partnership to CS First Boston Mortgage Capital
Corp.

     14. Estoppel Certificate dated October 31, 1996 executed by Genus, Inc. in
favor of CS First Boston Mortgage Capital Corp.

     15. Estoppel Certificate dated July 29, 1998, executed by Genus, Inc. in
favor of The Chase Manhattan Bank, as Trustee

                                       -2-

<PAGE>

        APPENDIX 4.3(a)

            DEED

After recording return to:

         QUITCLAIM
            DEED                                 (Recorder's Stamp)

     THIS QUITCLAIM DEED is made as of the ___ day of _____________, 2003, by
__________________________________________ (the "Grantor"), having an address of
___________________________________, to _____________________ (the "Grantee"),
having an address of ___________________________________.

     Grantor, for and in consideration of the sum of _______________ ($_______),
receipt whereof is hereby acknowledged, and pursuant to proper authority, hereby
Grants with QUITCLAIM COVENANTS to Grantee, and its successors, heirs and
assigns, all right, title and interest of Grantor in the following described
property (collectively the "Property"):

     1.   The real property described on Exhibit A attached hereto and made a
          part hereof (the "Land");

     2.   All buildings, improvements, fixtures, structures, parking areas and
          landscaping on the Land;

     3.   All and singular the rights, benefits, privileges, easements,
          tenements, hereditaments and appurtenances thereon or in any matter
          appertaining to such Land, including any and all mineral rights,
          development rights, water rights and the like; and

     4.   All right, title and interest of Grantor in and to all strips and
          gores and any land lying in the bed of any street, road or alley, open
          or proposed, adjoining such Land.

     Hereby conveying the same premises conveyed to the Grantor by deed dated
__________ and recorded ____________ with the _____________ Registry of Deeds in
Book __________, Page ____________.

     TO HAVE AND TO HOLD the Property in fee simple unto Grantee and its
successors, heirs and assigns, forever.

<PAGE>

     AND Grantor hereby covenants with Grantee, and its successors, heirs and
assigns, that Grantor will defend the same against the lawful claims of all
persons claiming by, through or under Grantor, but not otherwise, subject to the
exceptions listed on Exhibit B attached hereto.

                                       -2-

<PAGE>

     IN WITNESS WHEREOF, said Grantor has caused this instrument to be duly
executed and delivered by its duly authorized officer, as of the day and year
first above written.

                                          GRANTOR:

                                          By:___________________________________
                                          Name:_________________________________
                                          Title:________________________________

THIS INSTRUMENT WAS PREPARED BY
AND AFTER RECORDING RETURN TO:

                                          SEND SUBSEQUENT TAX BILLS TO:

                                          ______________________________________
                                          ______________________________________
                                          ______________________________________
                                          ______________________________________
                                          ______________________________________

                                      -3-

<PAGE>

STATE OF ___________  )
                      )  SS.
COUNTY OF __________  )

     I, _______, a notary public in and for said County, in the State aforesaid,
DO HEREBY CERTIFY that ______________________ personally known to me to be the
_________________________ of _________________________, a ___________, and
personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person and acknowledged
that as such _____________, he/she signed and delivered the said instrument,
pursuant to authority properly given, as his/her free and voluntary act, and as
the free and voluntary act of said limited partnership, for the uses and
purposes therein set forth.

     GIVEN under my hand and official seal this _________ day of ______________,
2003.

                                           _____________________________________
                                           Notary Public

                                           My Commission Expires:_______________

                                       -4-

<PAGE>

                                EXHIBIT A TO DEED

                                LEGAL DESCRIPTION

PIN:
Common Address:

<PAGE>

                                EXHIBIT B TO DEED

                              PERMITTED EXCEPTIONS

<PAGE>

                                 APPENDIX 4.3(b)

                       Bill of Sale and Omnibus Agreement

     This Bill of Sale and Omnibus Agreement (this "Agreement") is made as of
the ___ day of _____________, 2003 by and between _____________________________
("Seller") and _______________________________ ("Buyer").

                                 R E C I T A L S

     A.   This Agreement is executed and delivered pursuant to that certain
Purchase and Sale Agreement (as the same may have been amended, the "Purchase
and Sale Agreement") dated as of ____________________, 2002, by and between
Seller and Buyer in which Seller agreed to sell and Buyer agreed to purchase,
among other things, the real property described in Schedule 1 attached hereto
(the "Land").

     B.   All capitalized terms that are used but not defined herein shall have
the same meanings ascribed to such terms in the Purchase and Sale Agreement.

     NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Seller and Buyer hereby agree as
follows:

     1.   Assignment and Assumption. For good and valuable consideration Seller
hereby sells, assigns, conveys and contributes to Buyer, and Buyer hereby
accepts:

          (a)  Personal Property. All right, title and interest of Seller in and
to all Personal Property now owned by Seller and used in connection with the
operation, ownership, maintenance, management, or occupancy of the Real
Property, including, without limitation, all equipment, machinery, heating,
ventilating and air conditioning units, furniture, art work, furnishings, trade
fixtures, office equipment and supplies, and whether stored on or off-site, all
tools and maintenance equipment, supplies and construction and finish materials
not yet incorporated in the Improvements but held for repairs and replacements,
all as identified on Schedule 2 attached hereto;

          (b)  Intangible Property. All right, title and interest of Seller in
and to all Intangible Property now owned by Seller and used in connection with
the operation, ownership, maintenance, management, or occupancy of the Real
Property, including, without limitation, any and all of the following: trade
names and trade marks associated with the Real Property; the plans and
specifications for the Improvements relating to the Land, including as-built
plans; unexpired warranties, guarantees, indemnities and claims against third
parties; contract rights related to the construction, operation, repair,
renovation, ownership or management of the Real Property that are expressly
assumed by Buyer pursuant to this Agreement; pending permit or approval
applications as well as existing permits, approvals and licenses (to the extent
assignable); insurance proceeds and condemnation awards to the extent provided
in the Purchase and Sale Agreement; and books and records relating to the Real
Property related to the Land; and

          (c)  Accepted Service Contracts. All of Seller's right, title and
interest in and to the Accepted Service Contracts described in Schedule 3
attached hereto, and Buyer hereby

<PAGE>

assumes the obligations of Seller under such Accepted Service Contracts first
arising or accruing from and after Closing Date.

     2.   Warranty. Seller represents and warrants to Buyer that it is the owner
of the property and interests described above, that such property is free and
clear of all liens, charges and encumbrances other than the Permitted Exceptions
(as defined in the Purchase and Sale Agreement), and Seller warrants and defends
title to the above-described property unto Buyer, its successors and assigns,
against any person or entity claiming, or to claim, the same or any part
thereof, subject only to the Permitted Exceptions as defined in the Purchase and
Sale Agreement.

     3.   Indemnification. Seller shall defend, indemnify and hold harmless
Buyer from and against any liability, damages, causes of action, expenses, and
attorneys' fees incurred by Buyer by reason of the failure of Seller to fulfill,
perform, discharge, and observe its obligations with respect to the Accepted
Service Contracts arising or accruing before the Closing Date. Buyer shall
defend, indemnify and hold harmless Seller from and against any liability,
damages, causes of action, expenses, and attorneys' fees incurred by Seller by
reason of the failure of Buyer to fulfill, perform, discharge, and observe the
obligations assumed by it under this instrument with respect to the Accepted
Service Contracts first arising or accruing from and after the Closing Date.

     4.   Counterparts; Facsimile. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, and all of
such counterparts shall constitute one Agreement. To facilitate execution of
this Agreement, the parties may execute and exchange by telephone facsimile
counterparts of the signature pages.

                                       -2-

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as
of the day and year set forth above.

                                         SELLER:

                                         ______________________________________

                                         By:___________________________________
                                         Name:_________________________________
                                         Title:________________________________

Dated:________________________________

                                         BUYER:

                                         ______________________________________

                                         By:___________________________________
                                         Name:_________________________________
                                         Title:________________________________

Dated:________________________________

                                       -3-

<PAGE>

                                 APPENDIX 4.3(C)

                               Assignment of Lease

                       ASSIGNMENT AND ASSUMPTION OF LEASE

         This Assignment and Assumption of Lease (this "Assignment") is made as
of the ___ day of _____________, 2003 by and between ______________ ("Seller")
and _________________________________ ("Buyer").

                                    RECITALS

         A.   This Assignment is executed and delivered pursuant to that certain
Purchase and Sale Agreement (as the same may have been amended, the "Purchase
and Sale Agreement") dated as of _____ ___, 2002, by and between Seller and
Buyer in which Seller agreed to sell and Buyer agreed to purchase, among other
things, the real property described in Schedule 1 attached hereto (the "Land").

         B.   All capitalized terms that are used but not defined herein shall
have the same meanings ascribed to such terms in the Purchase and Sale
Agreement.

         NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Seller and Buyer hereby agree as
follows:

         1.   Assignment and Assumption. For good and valuable consideration
Seller hereby sells, assigns, conveys and contributes to Buyer, and Buyer hereby
accepts all of Seller's right, title and interest in and to that certain Lease
dated as of October 30, 1995 between Seller, as landlord, and Genus, Inc., as
tenant ("Original Tenant"), as amended by a First Amendment to Lease dated as of
November 8, 1995 between Seller and Original Tenant, and a Second Amendment to
Lease dated as of October 30, 1996 between Seller and Original Tenant, and
assigned pursuant to that certain Agreement Regarding Assignment and Transfer of
Letter of Credit dated as of April 12, 1999, between Varian Medical Systems,
Inc., Varian Semiconductor Equipment Associates, Inc., and Seller, and Buyer
hereby assumes all of Seller's obligations under the Lease first arising or
accruing from and after Closing Date but as to Seller's obligations with regard
to security deposits and other deposits, only to the extent the security
deposits have been transferred or credited to Buyer.

         2.   Warranty. Seller represents and warrants to Buyer that it is the
owner of the property and interests described above, that such property is free
and clear of all liens, charges and encumbrances other than the Permitted
Exceptions (as defined in the Purchase and Sale Agreement), and Seller warrants
and defends title to the above-described property unto Buyer, its successors and
assigns, against any person or entity claiming, or to claim, the same or any
part thereof, subject only to the Permitted Exceptions as defined in the
Purchase and Sale Agreement.

         3.   Indemnification. Seller shall defend, indemnify and hold harmless
Buyer from and against any liability, damages, causes of action, expenses, and
attorneys' fees incurred by

<PAGE>

Buyer by reason of the failure of Seller to fulfill, perform, discharge, and
observe its obligations with respect to the Lease arising or accruing before the
Closing Date. Buyer shall defend, indemnify and hold harmless Seller from and
against any liability, damages, causes of action, expenses, and attorneys' fees
incurred by Seller by reason of the failure of Buyer to fulfill, perform,
discharge, and observe the obligations assumed by it under this instrument with
respect to the Lease first arising or accruing from and after the Closing Date.

         4.   Counterparts; Facsimile. This Assignment may be executed in any
number of counterparts, each of which shall be deemed to be an original, and all
of such counterparts shall constitute one Assignment. To facilitate execution of
this Agreement, the parties may execute and exchange by telephone facsimile
counterparts of the signature pages.

                            [signature page follows]

                                      -2-

<PAGE>

         IN WITNESS WHEREOF, this Assignment and Assumption of Lease has been
duly executed and delivered as of the day and year set forth above.

                                              SELLER:

                                              __________________________________

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                              BUYER:

                                              __________________________________

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                      -3-

<PAGE>

STATE OF  )
                  ) SS.
COUNTY OF )

         I, ____________, a notary public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY that _________________________ personally known to
me to be the _________________________ of
________________________________________, and personally known to me to be the
same person whose name is subscribed to the foregoing instrument, appeared
before me this day in person and acknowledged that as such
__________________________, he/she signed and delivered the said instrument,
pursuant to authority properly given, as his/her free and voluntary act, and as
the free and voluntary act of said corporation and said limited partnerships,
for the uses and purposes therein set forth.

         GIVEN under my hand and official seal this __________ day of _________,
2003.

                                 ___________________________________
                                 Notary Public

                                 My Commission Expires:_____________

                                      -4-

<PAGE>

STATE OF      )
                         ) SS.
COUNTY OF         )

         I, _____________, a notary public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY that _________________________ personally known to
me to be the _________________________ of __________________________ and
personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person and acknowledged
that as such __________________________, he/she signed and delivered the said
instrument, pursuant to authority properly given, as his/her free and voluntary
act, and as the free and voluntary act of said trust and said limited
partnerships, for the uses and purposes therein set forth.

         GIVEN under my hand and official seal this _____ day of ____________,
2003.

                                 __________________________________
                                 Notary Public

                                 My Commission Expires:____________

                                      -5-

<PAGE>

                                 Appendix 4.3(f)

                                FIRPTA Affidavit

         Section 1445 of the Internal Revenue Code of 1986, as amended, provides
that a transferee of a United States real property interest must withhold tax if
the transferor is a foreign person. To inform the Transferee (hereinafter
defined) that withholding of tax is not required upon the disposition of a
United States real property interest by_______________________________________,
a _________ (the "Transferor") to ___________________________________, a
___________ (the "Transferee"), the undersigned, being first duly sworn upon
oath, does hereby depose and say, and does hereby certify the following on
behalf of the Transferor:

         1.   The undersigned is the ____________________ of the Transferor and
is familiar with the business of the Transferor;

         2.   The Transferor is not a foreign person; that is, the Transferor is
not a nonresident alien, a foreign corporation, foreign partnership, foreign
trust or foreign estate (as all such terms are defined in the Internal Revenue
Code of 1986, as amended, and United States Treasury Department Income Tax
Regulations in effect as of the date hereof);

         3.   The Transferor is a corporation duly organized, validly existing
and in good standing under the laws of the State of ___________;

         4.   The Transferor's United States employer identification number is
__________;

         5.   The Transferor's office address and principal place of business is
______________________________________; and

         6.   This certificate and affidavit is made to induce the Transferee to
consummate the transactions contemplated by the Transferor and Transferee.

         The Transferor understands that this affidavit and certification may be
disclosed to the United States Internal Revenue Service by the Transferee and
that any false statement contained herein could be punished by fine,
imprisonment, or both.

         Under penalties of perjury, the undersigned declares that he has
examined this affidavit and certificate, and to the best of the undersigned's
knowledge and belief, it is true, correct and complete. The undersigned further
declares that he has authority to sign this affidavit and certificate on behalf
of the Transferor.

<PAGE>

         This affidavit and certificate is executed and delivered as of the ____
day of _______________, 2003.

                                               By:______________________________
                                               Name:____________________________
                                               Title:___________________________

                                      -2-

<PAGE>

                                 APPENDIX 6.1(c)

          List of Leases, including all guaranties, letters of credit,
                       amendments, side letter agreements

         That certain Lease dated as of October 30, 1995 between
Berkshire-Newburyport Limited Partnership, as landlord ("Landlord"), and Genus,
Inc., as tenant ("Original Tenant"), as amended by a First Amendment to Lease
dated as of November 8, 1995 between Landlord and Original Tenant, and a Second
Amendment to Lease dated as of October 30, 1996 between Landlord and Original
Tenant, and assigned pursuant to that certain Agreement Regarding Assignment and
Transfer of Letter of Credit dated as of April 12, 1999, between Varian Medical
Systems, Inc, Varian Semiconductor Equipment Associates, Inc. and Landlord.
Landlord holds a letter of credit in the amount of $1,850,000 pursuant to the
foregoing Lease.

                                      -3-

<PAGE>

                                 APPENDIX 6.1(d)

                            List of Service Contracts

         None.

                                      -4-

<PAGE>

                                 APPENDIX 6.1(g)

                        List of Environmental Assessments

         Preliminary Environmental Site Assessment from Ransom Environmental
Consultants, Inc. dated June 5, 1995, and related correspondence from
Environmental Compliances Services, Inc. dated September 11, 1995.

<PAGE>

                                  APPENDIX 9.11

                                Notice Addresses

<TABLE>
<S>                                                          <C>
(a)      Seller:                                             With copy to:  Robert P. Cunningham, Esq.

         Berkshire Newburyport Limited                       Robinson Donovan Madden & Barry P.C.
         Partnership                                         1500 Main Street, Suite 1600
         c/o Berkshire Development LLC                       Post Office Box 15609
         1500 Main Street, Suite 1400                        Springfield, MA  01111-5609
         Springfield, MA  01115                              Phone:  (413) 732-2301
         Phone:  (413) 781-2800                              Fax:  (413) 785-4658
         Fax:  (413) 781-8888

(b)      Buyer:

         Varian Semiconductor                                With a copy to:  Paul Jakubowski, Esq.
         Equipment Associates, Inc.
         35 Dory Road                                                         Hale and Dorr LLP
         Gloucester, Massachusetts  01930                                     60 State Street
         Attn:  Richard T. Johnson                                            Boston, MA  02109
         Phone:  (978) 282-2794                                               Fax:  (617) 526-5000
         Fax:  (978) 283-0857

(c)      Escrow Agent:

         First American Title Insurance
         Company
         101 Huntington Avenue
         Boston, MA  02199
         Attn:  Annette M. Labrecque
         Phone: (617) 345-0088
         Fax:  (617) 247-8648

(d)      Title Company:

         First American Title Insurance
         Company
         101 Huntington Avenue
         Boston, MA  02199
         Attn:  Annette M. Labrecque
         Phone: (617) 345-0088
         Fax:  (617) 247-8648
</TABLE>

<PAGE>

                           PURCHASE AND SALE AGREEMENT

                                      FROM

                    BERKSHIRE-NEWBURYPORT LIMITED PARTNERSHIP

                                       TO

                 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
ARTICLE 1: SCHEDULE; DEFINITIONS; PURCHASE PRICE ............................  1

 1.1      Schedule ..........................................................  1
 1.2      Definitions .......................................................  2
 1.3      Earnest Money .....................................................  4

ARTICLE 2: INSPECTION .......................................................  5

 2.1      Due Diligence; Indemnity ..........................................  5
 2.2      Seller's Delivery of Specified Documents ..........................  5
 2.3      Title and Survey ..................................................  5
 2.4      Objection Notice ..................................................  6
 2.5      Service Contracts .................................................  7
 2.6      Intentionally Omitted .............................................  7
 2.7      Intentionally Omitted .............................................  7
 2.8      CCRs ..............................................................  7
 2.9      Assumed Debt ......................................................  7

ARTICLE 3: OPERATIONS AND RISK OF LOSS ......................................  8

 3.1      Ongoing Operations ................................................  8
 3.2      Damage ............................................................ 10
 3.3      Condemnation ...................................................... 10

ARTICLE 4: CLOSING .......................................................... 11

 4.1      Closing ........................................................... 11
 4.2      Conditions to the Parties' Obligations to Close ................... 11
 4.3      Seller's Deliveries in Escrow ..................................... 12
 4.4      Buyer's Deliveries in Escrow ...................................... 13
 4.5      Closing Statements ................................................ 14
 4.6      Possession ........................................................ 14
 4.7      Delivery of Books and Records ..................................... 14

ARTICLE 5: PRORATIONS; COSTS ................................................ 14

 5.1      Prorations ........................................................ 14
 5.2      Post-Closing Corrections .......................................... 16
 5.3      Utilities ......................................................... 16
 5.4      Service Contracts ................................................. 16
 5.5      Costs ............................................................. 16
 5.6      Sales, Transfer, and Documentary Taxes ............................ 16
 5.7      Utility Deposits .................................................. 16
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                           <C>
 5.8   Sales Commissions .................................................... 17
 5.9   Intentionally Omitted ................................................ 17
 5.10  Intentionally Omitted ................................................ 17

ARTICLE 6: REPRESENTATIONS AND WARRANTIES ................................... 17

 6.1   Seller's Representations and Warranties .............................. 17
 6.2   Buyer's Representations and Warranties ............................... 19
 6.3   Survival of Representations and Warranties ........................... 19

ARTICLE 7: DEFAULT AND REMEDIES ............................................. 20

 7.1   Seller's Default ..................................................... 20
 7.2   Buyer's Default ...................................................... 20
 7.3   Other Expenses ....................................................... 20

ARTICLE 8: INDEMNIFICATION .................................................. 20

 8.1   Seller's Indemnity ................................................... 20
 8.2   Buyer's Indemnity .................................................... 20
 8.3   Procedure ............................................................ 21
 8.4   Survivability ........................................................ 21

ARTICLE 9: MISCELLANEOUS .................................................... 21

 9.1   Parties Bound ........................................................ 21
 9.2   Headings ............................................................. 21
 9.3   Invalidity and Waiver ................................................ 21
 9.4   Governing Law ........................................................ 22
 9.5   Survival ............................................................. 22
 9.6   No Third Party Beneficiary ........................................... 22
 9.7   Entirety and Amendments .............................................. 22
 9.8   Time ................................................................. 22
 9.9   Confidentiality ...................................................... 22
 9.10  Enforcement Expenses ................................................. 22
 9.11  Notices .............................................................. 22
 9.12  Construction ......................................................... 22
 9.13  Calculation of Time Periods .......................................... 23
 9.14  Intentionally Omitted ................................................ 23
 9.15  Execution in Counterparts ............................................ 23
 9.16  Intentionally Omitted ................................................ 23
 9.17  Further Assurances ................................................... 23
 9.18  Waiver of Jury Trial ................................................. 23
 9.19  Intentionally Omitted ................................................ 23
 9.20  1031 Exchange ........................................................ 23
 9.21  Mutual Execution ..................................................... 24
</TABLE>

                                      -ii-

<PAGE>

                           PURCHASE AND SALE AGREEMENT
                       SCHEDULE OF EXHIBITS AND APPENDICES

Exhibit A           -     Legal Description

Appendix 1.3        -     Escrow Agreement

Appendix 2.2        -     Property Information

Appendix 2.9        -     Loan Documents

Appendix 4.3(a)     -     Deed

Appendix 4.3(b)     -     Omnibus Agreement

Appendix 4.3(c)     -     Assignment

Appendix 4.3(f)     -     FIRPTA

Appendix 6.1(c)     -     List of Leases

Appendix 6.1(d)     -     List of Service Contracts

Appendix 6.1(g)     -     List of Environmental Assessments

Appendix 9.11       -     Notice Addresses

                                     -iii-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]