Document:

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                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                          REGISTRATION RIGHTS AGREEMENT

                                  BY AND AMONG

                           STEWART ENTERPRISES, INC.,

                                 THE GUARANTORS
                          LISTED ON SCHEDULE A HERETO,

                                       AND

                         BANC OF AMERICA SECURITIES LLC

                            BEAR, STEARNS & CO. INC.

               MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

                          CALYON SECURITIES (USA) INC.

                         SUNTRUST CAPITAL MARKETS, INC.

                          DATED AS OF FEBRUARY 11, 2005

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                          REGISTRATION RIGHTS AGREEMENT

            This Registration Rights Agreement (this "Agreement") is made and
entered into as of February 11, 2005, by and among Stewart Enterprises, Inc., a
Louisiana corporation (the "Company"), the Guarantors listed on Schedule A
hereto (the "Guarantors"), and Banc of America Securities LLC, Bear, Stearns &
Co. Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Calyon Securities
(USA) Inc. and SunTrust Capital Markets, Inc. (each an "Initial Purchaser" and,
collectively, the "Initial Purchasers"), each of whom has agreed to purchase the
Company's 6.25% Senior Notes due 2013 (the "Initial Notes") pursuant to the
Purchase Agreement (as defined below).

            This Agreement is made pursuant to the Purchase Agreement, dated as
of February 2, 2005 (the "Purchase Agreement"), by and among the Company, the
Guarantors and the Initial Purchasers (i) for your benefit and for the benefit
of each other Initial Purchaser and (ii) for the benefit of the holders from
time to time of the Notes (including you and each other Initial Purchaser). In
order to induce the Initial Purchasers to purchase the Initial Notes, the
Company has agreed to provide the registration rights set forth in this
Agreement. The execution and delivery of this Agreement is a condition to the
obligations of the Initial Purchasers set forth in Section 5(i) of the Purchase
Agreement.

            The parties hereby agree as follows:

            Section 1. Definitions

            As used in this Agreement, the following capitalized terms shall
have the following meanings:

      Broker-Dealer: Any broker or dealer registered under the Exchange Act.

      Closing Date: The date of this Agreement.

      Commission: The Securities and Exchange Commission.

      Consummate: A Registered Exchange Offer shall be deemed "Consummated" for
      purposes of this Agreement upon the occurrence of (i) the filing and
      effectiveness under the Securities Act of the Exchange Offer Registration
      Statement relating to the Exchange Notes to be issued in the Exchange
      Offer, (ii) the maintenance of such Registration Statement continuously
      effective and the keeping of the Exchange Offer open for a period not less
      than the minimum period required pursuant to Section 3(b) hereof, and
      (iii) the delivery by the Company to the Registrar under the Indenture of
      Exchange Notes in the same aggregate principal amount as the aggregate
      principal amount of Initial Notes that were tendered by Holders thereof
      pursuant to the Exchange Offer.

      Effectiveness Target Date: As defined in Section 5.

      Exchange Act: The Securities Exchange Act of 1934, as amended.

      Exchange Notes: The 6.25% Senior Notes due 2013, of the same series under
      the Indenture as the Initial Notes, to be issued to Holders in exchange
      for Transfer Restricted Securities pursuant to this Agreement.

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      Exchange Offer: The registration by the Company under the Securities Act
      of the Exchange Notes pursuant to a Registration Statement pursuant to
      which the Company offers the Holders of all outstanding Transfer
      Restricted Securities the opportunity to exchange all such outstanding
      Transfer Restricted Securities held by such Holders for Exchange Notes in
      an aggregate principal amount equal to the aggregate principal amount of
      the Transfer Restricted Securities tendered in such exchange offer by such
      Holders.

      Exchange Offer Registration Statement: The Registration Statement relating
      to the Exchange Offer, including the related Prospectus.

      Exempt Resales: The transactions in which the Initial Purchasers propose
      to sell the Initial Notes to certain "qualified institutional buyers," as
      such term is defined in Rule 144A under the Securities Act, and to certain
      non-U.S. persons, in accordance with such Rule 144A and Regulation S under
      the Securities Act, respectively

      Holders: As defined in Section 2(b) hereof.

      Indemnified Holder: As defined in Section 8(a) hereof.

      Indenture: The Indenture, dated as of February 11, 2005, among the Company
      and U.S. Bank National Association, as trustee (the "Trustee"), pursuant
      to which the Notes are to be issued, as such Indenture is amended or
      supplemented from time to time in accordance with the terms thereof.

      Initial Purchaser: As defined in the preamble hereto.

      Initial Notes: The 6.25% Senior Notes due 2013, of the same series under
      the Indenture as the Exchange Notes, for so long as such securities
      constitute Transfer Restricted Securities.

      Initial Placement: The issuance and sale by the Company of the Initial
      Notes to the Initial Purchasers pursuant to the Purchase Agreement.

      Interest Payment Date: As defined in the Indenture and the Notes.

      NASD: National Association of Securities Dealers, Inc.

      Notes: The Initial Notes and the Exchange Notes.

      Person: An individual, partnership, corporation, trust or unincorporated
      organization, or a government or agency or political subdivision thereof.

      Prospectus: The prospectus included in a Registration Statement, as
      amended or supplemented by any prospectus supplement and by all other
      amendments thereto, including post-effective amendments, and all material
      incorporated by reference into such Prospectus.

      Record Holder: With respect to any Damages Payment Date relating to the
      Notes, each Person who is a Holder of Notes on the record date with
      respect to the Interest Payment Date on which such Damages Payment Date
      shall occur.

      Registration Default: As defined in Section 5 hereof.

      Registration Statement: Any registration statement of the Company relating
      to (a) an offering of Exchange Notes pursuant to an Exchange Offer or (b)
      the registration for resale of Transfer Restricted Securities pursuant to
      the Shelf Registration Statement, which is filed pursuant to the
      provisions of this Agreement, in each case, including the Prospectus
      included

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      therein, all amendments and supplements thereto (including post-effective
      amendments) and all exhibits and material incorporated by reference
      therein.

      Securities Act: The Securities Act of 1933, as amended.

      Shelf Filing Deadline:  As defined in Section 4 hereof.

      Shelf Registration Statement: As defined in Section 4 hereof.

      Trust Indenture Act: The Trust Indenture Act of 1939 as in effect on the
      date of the Indenture.

      Transfer Restricted Securities: Each Initial Note, until the earliest to
      occur of (a) the date on which such Initial Note is exchanged in the
      Exchange Offer and entitled to be resold to the public by the Holder
      thereof without complying with the prospectus delivery requirements of the
      Securities Act, (b) the date on which such Initial Note has been
      effectively registered under the Securities Act and disposed of in
      accordance with a Shelf Registration Statement and (c) the date on which
      such Initial Note is distributed to the public pursuant to Rule 144 under
      the Securities Act or by a Broker-Dealer pursuant to the "Plan of
      Distribution" contemplated by the Exchange Offer Registration Statement
      (including delivery of the Prospectus contained therein).

      Underwritten Registration or Underwritten Offering: A registration in
      which securities of the Company are sold to an underwriter for reoffering
      to the public.

            Section 2. Securities Subject To This Agreement

            (a) Transfer Restricted Securities. The securities entitled to the
benefits of this Agreement are the Transfer Restricted Securities.

            (b) Holders of Transfer Restricted Securities. A Person is deemed to
be a holder of Transfer Restricted Securities (each, a "Holder") whenever such
Person owns Transfer Restricted Securities.

            Section 3. Registered Exchange Offer

            (a) Unless the Exchange Offer shall not be permissible under
applicable law or Commission policy (after the procedures set forth in Section
6(a) below have been complied with), the Company and the Guarantors shall (i)
cause to be filed with the Commission as soon as practicable after the Closing
Date, but in no event later than 90 days after the Closing Date, a Registration
Statement under the Securities Act relating to the Exchange Notes and the
Exchange Offer, (ii) use their reasonable best efforts to cause such
Registration Statement to become effective at the earliest possible time, but in
no event later than 120 days after the Closing Date, (iii) in connection with
the foregoing, file (A) all pre-effective amendments to such Registration
Statement as may be necessary in order to cause such Registration Statement to
become effective, (B) if applicable, a post-effective amendment to such
Registration Statement pursuant to Rule 430A under the Securities Act and (C)
cause all necessary filings in connection with the registration and
qualification of the Exchange Notes to be made under the Blue Sky laws of such
jurisdictions as are necessary to permit Consummation of the Exchange Offer, and
(iv) upon the effectiveness of such Registration Statement, commence the
Exchange Offer. The Exchange Offer shall be on the appropriate form permitting
registration of the Exchange Notes to be

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offered in exchange for the Transfer Restricted Securities and to permit resales
of Notes held by Broker-Dealers as contemplated by Section 3(c) below.

            (b) The Company shall cause the Exchange Offer Registration
Statement to be effective continuously and shall keep the Exchange Offer open
for a period of not less than the minimum period required under applicable
federal and state securities laws to Consummate the Exchange Offer; provided,
however, that in no event shall such period be less than 20 days after the date
notice of the Exchange Offer is mailed to the Holders. The Company shall cause
the Exchange Offer to comply with all applicable federal and state securities
laws. No securities other than the Notes shall be included in the Exchange Offer
Registration Statement. The Company shall use its best efforts to cause the
Exchange Offer to be Consummated on the earliest practicable date after the
Exchange Offer Registration Statement has become effective, but in no event
later than 30 days after the Effectiveness Target Date.

            (c) The Company shall indicate in a "Plan of Distribution" section
contained in the Prospectus forming a part of the Exchange Offer Registration
Statement that any Broker-Dealer who holds Initial Notes that are Transfer
Restricted Securities and that were acquired for its own account as a result of
market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from the Company), may exchange such
Initial Notes pursuant to the Exchange Offer; however, such Broker-Dealer may be
deemed to be an "underwriter" within the meaning of the Securities Act and must,
therefore, deliver a prospectus meeting the requirements of the Securities Act
in connection with any resales of the Exchange Notes received by such
Broker-Dealer in the Exchange Offer, which prospectus delivery requirement may
be satisfied by the delivery by such Broker-Dealer of the Prospectus contained
in the Exchange Offer Registration Statement. Such "Plan of Distribution"
section shall also contain all other information with respect to such resales by
Broker-Dealers that the Commission may require in order to permit such resales
pursuant thereto, but such "Plan of Distribution" shall not name any such
Broker-Dealer or disclose the amount of Notes held by any such Broker-Dealer
except to the extent required by the Commission as a result of a change in
policy after the date of this Agreement.

            The Company and the Guarantors shall use their best efforts to keep
the Exchange Offer Registration Statement continuously effective, supplemented
and amended as required by the provisions of Section 6(c) below to the extent
necessary to ensure that it is available for resales of Notes acquired by
Broker-Dealers for their own accounts as a result of market-making activities or
other trading activities, and to ensure that it conforms with the requirements
of this Agreement, the Securities Act and the policies, rules and regulations of
the Commission as announced from time to time, for a period ending on the
earlier of (i) 180 days from the date on which the Exchange Offer Registration
Statement is declared effective and (ii) the date on which a Broker-Dealer is no
longer required to deliver a prospectus in connection with market-making or
other trading activities.

            The Company shall provide sufficient copies of the latest version of
such Prospectus to Broker-Dealers promptly upon request at any time during such
180-day (or shorter as provided in the foregoing sentence) period in order to
facilitate such resales.

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            Section 4. Shelf Registration

            (a) If (i) the Company is not required to file an Exchange Offer
Registration Statement or to consummate the Exchange Offer because the Exchange
Offer is not permitted by applicable law or Commission policy (after the
procedures set forth in Section 6(a) below have been complied with), (ii) for
any reason the Exchange Offer is not Consummated within 30 days after the
Effectiveness Target Date, or (iii) any Holder of Transfer Restricted Securities
shall have notified the Company in writing within 20 Business Days following the
Closing Date that (A) such Holder is prohibited by applicable law or Commission
policy from participating in the Exchange Offer, or (B) such Holder may not
resell the Exchange Notes acquired by it in the Exchange Offer to the public
without delivering a prospectus and that the Prospectus contained in the
Exchange Offer Registration Statement is not appropriate or available for such
resales by such Holder, or (C) such Holder is a Broker-Dealer and holds Initial
Notes acquired directly from the Company or one of its affiliates, then, upon
such Holder's request, the Company and the Guarantors shall (x) cause to be
filed a shelf registration statement pursuant to Rule 415 under the Securities
Act, which may be an amendment to the Exchange Offer Registration Statement (in
either event, the "Shelf Registration Statement") on or prior to the earliest to
occur of (1) the 60th day after the date on which the Company determines that it
is not required to file the Exchange Offer Registration Statement, (2) the 60th
day after the date on which the Company receives notice from a Holder of
Transfer Restricted Securities as contemplated by clause (iii) above, and (3)
the 30th day after the Effectiveness Target Date (such earliest date being the
"Shelf Filing Deadline"), which Shelf Registration Statement shall provide for
resales of all Transfer Restricted Securities the Holders of which shall have
provided the information required pursuant to Section 4(c) hereof; and (y) use
their reasonable best efforts to cause such Shelf Registration Statement to be
declared effective by the Commission on or before the 30th day after the Shelf
Filing Deadline.

            (b) The Company and the Guarantors shall use their best efforts to
keep such Shelf Registration Statement continuously effective, supplemented and
amended as required by the provisions of Sections 6(b) and (c) hereof to the
extent necessary to ensure that it is available for resales of Notes by the
Holders of Transfer Restricted Securities entitled to the benefit of this
Section 4(a), and to ensure that it conforms with the requirements of this
Agreement, the Securities Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period of at least two years
following the effective date of such Shelf Registration Statement (or shorter
period that will terminate when all the Notes covered by such Shelf Registration
Statement have been sold pursuant to such Shelf Registration Statement).

            (c) No Holder of Transfer Restricted Securities may include any of
its Transfer Restricted Securities in any Shelf Registration Statement pursuant
to this Agreement unless and until such Holder furnishes to the Company in
writing, within 20 business days after receipt of a request therefor, such
information as the Company may reasonably request for use in connection with any
Shelf Registration Statement or Prospectus or preliminary Prospectus included
therein. Each Holder as to which any Shelf Registration Statement is being
effected agrees to furnish promptly to the Company all information required to
be disclosed in order to make the information previously furnished to the
Company by such Holder not materially misleading.

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            Section 5. Additional Interest

            If (i) any of the Registration Statements required by this Agreement
is not filed with the Commission on or prior to the date specified for such
filing in this Agreement, (ii) any of such Registration Statements has not been
declared effective by the Commission on or prior to the date specified for such
effectiveness in this Agreement (the "Effectiveness Target Date"), (iii) the
Exchange Offer has not been Consummated within 30 business days after the
Effectiveness Target Date with respect to the Exchange Offer Registration
Statement or (iv) any Registration Statement required by this Agreement is filed
and declared effective but shall thereafter cease to be effective or fail to be
usable for its intended purpose without being succeeded within three business
days by a post-effective amendment to such Registration Statement that cures
such failure and that is itself promptly declared effective (each such event
referred to in clauses (i) through (iv), a "Registration Default"), the Company
and the Guarantors hereby jointly and severally agree to pay to each Holder of
Transfer Restricted Securities affected thereby additional interest ("Additional
Interest") in an amount equal to one half of one percent (0.50%) per annum on
the principal amounts of the Transfer Restricted Securities held by such Holder
during the 90-day period immediately following the occurrence of any
Registration Default and shall increase by an additional one half of one percent
(0.50%) per annum on the principal amounts of such Transfer Restricted
Securities at the end of each subsequent 90-day period, but in no event shall
such increase exceed 1.50% per annum. Following the cure of all Registration
Defaults relating to any particular Transfer Restricted Securities, the
Additional Interest payable with respect to the Transfer Restricted Securities
as a result of the provisions of this paragraph shall cease.

            All obligations of the Company and the Guarantors set forth in the
preceding paragraph that are outstanding with respect to any Transfer Restricted
Security at the time such security ceases to be a Transfer Restricted Security
shall survive until such time as all such obligations with respect to such Note
shall have been satisfied in full.

            Section 6. Registration Procedures

            (a) Exchange Offer Registration Statement. In connection with the
Exchange Offer, the Company and the Guarantors shall comply with all of the
provisions of Section 6(c) below, shall use their best efforts to effect such
exchange to permit the sale of Transfer Restricted Securities being sold in
accordance with the intended method or methods of distribution thereof, and
shall comply with all of the following provisions:

            (i)   If in the reasonable opinion of counsel to the Company there
      is a question as to whether the Exchange Offer is permitted by applicable
      law, the Company and the Guarantors hereby agree to seek a no-action
      letter or other favorable decision from the Commission allowing the
      Company and the Guarantors to Consummate an Exchange Offer for such
      Initial Notes. The Company and the Guarantors each hereby agrees to pursue
      the issuance of such a decision to the Commission staff level but shall
      not be required to take commercially unreasonable action to effect a
      change of Commission policy. The Company and the Guarantors each hereby
      agrees, however, to (A) participate in telephonic conferences with the
      Commission, (B) deliver to the Commission staff an analysis prepared by
      counsel to the Company setting forth the legal bases, if any, upon

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      which such counsel has concluded that such an Exchange Offer should be
      permitted and (C) diligently pursue a favorable resolution by the
      Commission staff of such submission.

            (ii)  As a condition to its participation in the Exchange Offer
      pursuant to the terms of this Agreement, each Holder of Transfer
      Restricted Securities shall furnish, upon the request of the Company,
      prior to the Consummation thereof, a written representation to the Company
      (which may be contained in the letter of transmittal contemplated by the
      Exchange Offer Registration Statement) to the effect that (A) it is not an
      affiliate of the Company, (B) it is not engaged in, and does not intend to
      engage in, and has no arrangement or understanding with any person to
      participate in, a distribution of the Exchange Notes to be issued in the
      Exchange Offer and (C) it is acquiring the Exchange Notes in its ordinary
      course of business. In addition, all such Holders of Transfer Restricted
      Securities shall otherwise cooperate in the Company's preparations for the
      Exchange Offer. Each Holder hereby acknowledges and agrees that any
      Broker-Dealer and any such Holder using the Exchange Offer to participate
      in a distribution of the securities to be acquired in the Exchange Offer
      (1) could not under Commission policy as in effect on the date of this
      Agreement rely on the position of the Commission enunciated in Morgan
      Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings
      Corporation (available May 13, 1988), as interpreted in the Commission's
      letter to Shearman & Sterling dated July 2, 1993, and similar no-action
      letters (which may include any no-action letter obtained pursuant to
      clause (i) above), and (2) must comply with the registration and
      prospectus delivery requirements of the Securities Act in connection with
      a secondary resale transaction and that such a secondary resale
      transaction should be covered by an effective registration statement
      containing the selling security holder information required by Item 507 or
      508, as applicable, of Regulation S-K if the resales are of Exchange Notes
      obtained by such Holder in exchange for Initial Notes acquired by such
      Holder directly from the Company.

            (b) Shelf Registration Statement. In connection with the Shelf
Registration Statement, the Company and the Guarantors shall comply with all the
provisions of Section 6(c) below and shall use their reasonable best efforts to
effect such registration to permit the sale of the Transfer Restricted
Securities being sold in accordance with the intended method or methods of
distribution thereof, and pursuant thereto the Company will as expeditiously as
possible prepare and file with the Commission a Registration Statement relating
to the registration on any appropriate form under the Securities Act, which form
shall be available for the sale of the Transfer Restricted Securities in
accordance with the intended method or methods of distribution thereof.

            (c) General Provisions. In connection with any Registration
Statement and any Prospectus required by this Agreement to permit the sale or
resale of Transfer Restricted Securities (including, without limitation, any
Registration Statement and the related Prospectus required to permit resales of
Notes by Broker-Dealers), the Company shall:

            (i)   use its best efforts to keep such Registration Statement
      continuously effective and provide all requisite financial statements
      (including, if required by the Securities Act or any regulation
      thereunder, financial statements of the Guarantors) for the period
      specified in Section 3 or 4 of this Agreement, as applicable; upon the

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      occurrence of any event that would cause any such Registration Statement
      or the Prospectus contained therein (A) to contain a material misstatement
      or omission or (B) not to be effective and usable for resale of Transfer
      Restricted Securities during the period required by this Agreement, the
      Company shall file promptly an appropriate amendment to such Registration
      Statement, in the case of clause (A), correcting any such misstatement or
      omission, and, in the case of either clause (A) or (B), use its reasonable
      best efforts to cause such amendment to be declared effective and such
      Registration Statement and the related Prospectus to become usable for
      their intended purpose(s) as soon as practicable thereafter;

            (ii)  prepare and file with the Commission such amendments and
      post-effective amendments to the Registration Statement as may be
      necessary to keep the Registration Statement effective for the applicable
      period set forth in Section 3 or 4 hereof, as applicable, or such shorter
      period as will terminate when all Transfer Restricted Securities covered
      by such Registration Statement have been sold; cause the Prospectus to be
      supplemented by any required Prospectus supplement, and as so supplemented
      to be filed pursuant to Rule 424 under the Securities Act, and to comply
      fully with the applicable provisions of Rules 424 and 430A under the
      Securities Act in a timely manner; and comply with the provisions of the
      Securities Act with respect to the disposition of all securities covered
      by such Registration Statement during the applicable period in accordance
      with the intended method or methods of distribution by the sellers thereof
      set forth in such Registration Statement or supplement to the Prospectus;

            (iii) advise the underwriter(s), if any, and selling Holders
      promptly and, if requested by such Persons, to confirm such advice in
      writing, (A) when the Prospectus or any Prospectus supplement or
      post-effective amendment has been filed, and, with respect to any
      Registration Statement or any post-effective amendment thereto, when the
      same has become effective, (B) of any request by the Commission for
      amendments to the Registration Statement or amendments or supplements to
      the Prospectus or for additional information relating thereto, (C) of the
      issuance by the Commission of any stop order suspending the effectiveness
      of the Registration Statement under the Securities Act or of the
      suspension by any state securities commission of the qualification of the
      Transfer Restricted Securities for offering or sale in any jurisdiction,
      or the initiation of any proceeding for any of the preceding purposes, (D)
      of the existence of any fact or the happening of any event that makes any
      statement of a material fact made in the Registration Statement, the
      Prospectus, any amendment or supplement thereto, or any document
      incorporated by reference therein untrue, or that requires the making of
      any additions to or changes in the Registration Statement or the
      Prospectus in order to make the statements therein not misleading. If at
      any time the Commission shall issue any stop order suspending the
      effectiveness of the Registration Statement, or any state securities
      commission or other regulatory authority shall issue an order suspending
      the qualification or exemption from qualification of the Transfer
      Restricted Securities under state securities or Blue Sky laws, the Company
      and the Guarantors shall use their best efforts to obtain the withdrawal
      or lifting of such order at the earliest possible time;

            (iv)  furnish without charge to each of the Initial Purchasers, each
      selling Holder named in any Registration Statement, and each of the
      underwriter(s), if any,

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      before filing with the Commission, copies of any Registration Statement or
      any Prospectus included therein or any amendments or supplements to any
      such Registration Statement or Prospectus (including all documents
      incorporated by reference after the initial filing of such Registration
      Statement), which documents (excluding documents incorporated by reference
      as a result of requirements for periodic reporting under the Exchange Act
      prior to the initial filing of the Registration Statement) will be subject
      to the review of such Holders and underwriter(s) in connection with such
      sale, if any, for a period of at least three business days, and the
      Company will not file any such Registration Statement or Prospectus or any
      amendment or supplement to any such Registration Statement or Prospectus
      (excluding all such documents incorporated by reference as a result of
      requirements for periodic reporting under the Exchange Act) to which an
      Initial Purchaser of Transfer Restricted Securities covered by such
      Registration Statement or the underwriter(s), if any, shall reasonably
      object in writing within three business days after the receipt thereof
      (such objection to be deemed timely made upon confirmation of telecopy
      transmission within such period). The objection of an Initial Purchaser or
      underwriter, if any, shall be deemed to be reasonable if such Registration
      Statement, amendment, Prospectus or supplement, as applicable, as proposed
      to be filed, contains a material misstatement or omission;

            (v)   promptly prior to the filing of any document that is to be
      incorporated by reference into a Registration Statement or Prospectus,
      provide copies of such document to the Initial Purchasers, each selling
      Holder named in any Registration Statement, and to the underwriter(s), if
      any, make the Company's representatives and representatives of the
      Guarantors available for discussion of such document and other customary
      due diligence matters, and include such information in such document prior
      to the filing thereof as such selling Holders or underwriter(s), if any,
      reasonably may request;

            (vi)  make available at reasonable times for inspection by each
      selling Holder, the Initial Purchasers, any managing underwriter
      participating in any disposition pursuant to such Registration Statement
      and any attorney or accountant retained by such Initial Purchasers or any
      of the underwriter(s), all financial and other records, pertinent
      corporate documents and properties of the Company and the Guarantors and
      cause the Company's and the Guarantors' officers, directors and employees
      to supply all information reasonably requested by any such Holder,
      underwriter, attorney or accountant in connection with such Registration
      Statement subsequent to the filing thereof and prior to its effectiveness;
      provided, however, that the foregoing information gathering (i) shall be
      coordinated on behalf of the selling Holders, Initial Purchasers, managing
      underwriter or any representative thereof, by one counsel, who shall be
      Shearman & Sterling LLP, or such other counsel as may be chosen by the
      Holders of a majority in principal amount of Transfer Restricted
      Securities and (ii) shall not be available for any such Holder who does
      not agree in writing to hold such information in confidence;

            (vii) if requested by any selling Holders or the underwriter(s), if
      any, promptly incorporate in any Registration Statement or Prospectus,
      pursuant to a supplement or post-effective amendment if necessary, such
      information as such selling Holders and underwriter(s), if any, may
      reasonably request to have included therein, including,

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      without limitation, information relating to the "Plan of Distribution" of
      the Transfer Restricted Securities, information with respect to the
      principal amount of Transfer Restricted Securities being sold to such
      underwriter(s), the purchase price being paid therefor and any other terms
      of the offering of the Transfer Restricted Securities to be sold in such
      offering; and make all required filings of such Prospectus supplement or
      post-effective amendment as soon as practicable after the Company is
      notified of the matters to be incorporated in such Prospectus supplement
      or post-effective amendment;

            (viii) cause the Transfer Restricted Securities covered by the
      Registration Statement to be rated with at least one rating agency,
      acceptable to the underwriter(s), if any, if so requested by the Holders
      of a majority in aggregate principal amount of Notes covered thereby or
      the underwriter(s), if any;

            (ix)  furnish to each selling Holder and each of the underwriter(s),
      if any, without charge, at least one copy of the Registration Statement,
      as first filed with the Commission, and of each amendment thereto,
      including financial statements and schedules, all documents incorporated
      by reference therein and all exhibits (including exhibits incorporated
      therein by reference);

            (x)   deliver to each selling Holder and each of the underwriter(s),
      if any, without charge, as many copies of the Prospectus (including each
      preliminary prospectus) and any amendment or supplement thereto as such
      Persons reasonably may request; the Company and the Guarantors hereby
      consent to the use of the Prospectus and any amendment or supplement
      thereto by each of the selling Holders and each of the underwriter(s), if
      any, in connection with the offering and the sale of the Transfer
      Restricted Securities covered by the Prospectus or any amendment or
      supplement thereto, subject to compliance by such Holder with the final
      paragraph of this Section;

            (xi)  enter into, and cause the Guarantors to enter into, such
      customary agreements (including an underwriting agreement), and make, and
      cause the Guarantors to make, such customary representations and
      warranties, and take all such other customary actions in connection
      therewith in order to expedite or facilitate the disposition of the
      Transfer Restricted Securities pursuant to any Registration Statement
      contemplated by this Agreement, all to such extent as may be reasonably
      requested by any Initial Purchaser or by any Holder of Transfer Restricted
      Securities or underwriter in connection with any sale or resale pursuant
      to any Registration Statement contemplated by this Agreement; and whether
      or not an underwriting agreement is entered into and whether or not the
      registration is an Underwritten Registration, the Company and the
      Guarantors shall:

                  (A)   furnish to each Initial Purchaser, each selling Holder
            and each underwriter, if any, in such substance and scope as they
            may reasonably request and as are customarily made by issuers to
            underwriters in primary underwritten offerings, upon the date of the
            Consummation of the Exchange Offer and, if applicable, the
            effectiveness of the Shelf Registration Statement:

                                       10

<PAGE>

                        (1)   a certificate, dated the date of Consummation of
                  the Exchange Offer or the date of effectiveness of the Shelf
                  Registration Statement, as the case may be, signed by (y) the
                  President or any Vice President and (z) a principal financial
                  or accounting officer, treasurer, assistant treasurer,
                  secretary or assistant secretary of each of the Company and
                  the Guarantors, confirming, as of the date thereof, the
                  matters set forth in paragraphs (i), (ii) and (iii) of Section
                  5(f) of the Purchase Agreement and such other matters as such
                  parties may reasonably request;

                        (2)   an opinion, dated the date of Consummation of the
                  Exchange Offer or the date of effectiveness of the Shelf
                  Registration Statement, as the case may be, of counsel for the
                  Company and the Guarantors, covering the matters set forth in
                  paragraph (c) of Section 5 of the Purchase Agreement and such
                  other matters as such parties may reasonably request, and in
                  any event including a statement to the effect that such
                  counsel has participated in conferences with officers and
                  other representatives of the Company, representatives of the
                  independent public accountants for the Company, the Initial
                  Purchasers' representatives and the Initial Purchasers'
                  counsel in connection with the preparation of such
                  Registration Statement and the related Prospectus and have
                  considered the matters required to be stated therein and the
                  statements contained therein, although such counsel has not
                  independently verified the accuracy, completeness or fairness
                  of such statements; and that such counsel advises that, on the
                  basis of the foregoing (relying as to materiality to a large
                  extent upon facts provided to such counsel by officers and
                  other representatives of the Company and without independent
                  check or verification), no facts came to such counsel's
                  attention that caused such counsel to believe that the
                  applicable Registration Statement, at the time such
                  Registration Statement or any post-effective amendment thereto
                  became effective, and, in the case of the Exchange Offer
                  Registration Statement, as of the date of Consummation,
                  contained an untrue statement of a material fact or omitted to
                  state a material fact required to be stated therein or
                  necessary to make the statements therein not misleading, or
                  that the Prospectus contained in such Registration Statement
                  as of its date and, in the case of the opinion dated the date
                  of Consummation of the Exchange Offer, as of the date of
                  Consummation, contained an untrue statement of a material fact
                  or omitted to state a material fact necessary in order to make
                  the statements therein, in light of the circumstances under
                  which they were made, not misleading. Without limiting the
                  foregoing, such counsel may state further that such counsel
                  assumes no responsibility for, and has not independently
                  verified, the accuracy, completeness or fairness of the
                  financial statements, notes and schedules and other financial
                  data included in any Registration Statement contemplated by
                  this Agreement or the related Prospectus; and

                        (3)   a customary comfort letter, dated as of the date
                  of Consummation of the Exchange Offer or the date of
                  effectiveness of the

                                       11

<PAGE>

                  Shelf Registration Statement, as the case may be, from the
                  Company's independent accountants, in the customary form and
                  covering matters of the type customarily covered in comfort
                  letters by underwriters in connection with primary
                  underwritten offerings, and affirming the matters set forth in
                  the comfort letters delivered pursuant to Section 5(a) of the
                  Purchase Agreement, without exception;

                  (B)   set forth in full or incorporate by reference in the
            underwriting agreement, if any, the indemnification provisions and
            procedures of Section 8 hereof with respect to all parties to be
            indemnified pursuant to said Section; and

                  (C)   deliver such other documents and certificates as may be
            reasonably requested by such parties to evidence compliance with
            clause (A) above and with any customary conditions contained in the
            underwriting agreement or other agreement entered into by the
            Company or the Guarantors pursuant to this clause (xi), if any.

            If at any time the representations and warranties of the Company and
the Guarantors contemplated in clause (A)(1) above cease to be true and correct,
the Company or the Guarantors shall so advise the Initial Purchasers and the
underwriter(s), if any, and each selling Holder promptly and, if requested by
such Persons, shall confirm such advice in writing;

            (xii) prior to any public offering of Transfer Restricted
      Securities, cooperate with, and cause the Guarantors to cooperate with,
      the selling Holders, the underwriter(s), if any, and their respective
      counsel in connection with the registration and qualification of the
      Transfer Restricted Securities under the securities or Blue Sky laws of
      such jurisdictions as the selling Holders or underwriter(s) may request
      and do any and all other acts or things necessary or reasonably advisable
      to enable the disposition in such jurisdictions of the Transfer Restricted
      Securities covered by the Shelf Registration Statement; provided, however,
      that neither the Company nor the Guarantors shall be required to register
      or qualify as a foreign corporation where it is not then so qualified or
      to take any action that would subject it to the service of process in
      suits or to taxation, other than as to matters and transactions relating
      to the Registration Statement, in any jurisdiction where it is not then so
      subject;

            (xiii) shall issue, upon the request of any Holder of Initial Notes
      covered by the Shelf Registration Statement, Exchange Notes, having an
      aggregate principal amount equal to the aggregate principal amount of
      Initial Notes surrendered to the Company by such Holder in exchange
      therefor or being sold by such Holder; such Exchange Notes to be
      registered in the name of such Holder or in the name of the purchaser(s)
      of such Notes, as the case may be; in return, the Initial Notes held by
      such Holder shall be surrendered to the Company for cancellation;

            (xiv) cooperate with, and cause the Guarantors to cooperate with,
      the selling Holders and the underwriter(s), if any, to facilitate the
      timely preparation and delivery of certificates representing Transfer
      Restricted Securities to be sold and not bearing any restrictive legends;
      and enable such Transfer Restricted Securities to be in such

                                       12
<PAGE>

      denominations and registered in such names as the Holders or the
      underwriter(s), if any, may request at least two business days prior to
      any sale of Transfer Restricted Securities made by such underwriter(s);

            (xv) use its best efforts to cause the Transfer Restricted
      Securities covered by the Registration Statement to be registered with or
      approved by such other governmental agencies or authorities as may be
      necessary to enable the seller or sellers thereof or the underwriter(s),
      if any, to consummate the disposition of such Transfer Restricted
      Securities, subject to the proviso contained in clause (xii) above;

            (xvi) if any fact or event contemplated by clause (c)(iii)(D) above
      shall exist or have occurred, prepare a supplement or post-effective
      amendment to the Registration Statement or related Prospectus or any
      document incorporated therein by reference or file any other required
      document so that, as thereafter delivered to the purchasers of Transfer
      Restricted Securities, the Prospectus will not contain an untrue statement
      of a material fact or omit to state any material fact necessary to make
      the statements therein not misleading;

            (xvii) provide a CUSIP number for all Transfer Restricted Securities
      not later than the effective date of the Registration Statement and
      provide the Trustee under the Indenture with printed certificates for the
      Transfer Restricted Securities which are in a form eligible for deposit
      with the Depositary Trust Company;

            (xviii) cooperate and assist in any filings required to be made with
      the NASD and in the performance of any due diligence investigation by any
      underwriter (including any "qualified independent underwriter") that is
      required to be retained in accordance with the rules and regulations of
      the NASD, and use its reasonable best efforts to cause such Registration
      Statement to become effective and approved by such governmental agencies
      or authorities as may be necessary to enable the Holders selling Transfer
      Restricted Securities to consummate the disposition of such Transfer
      Restricted Securities;

            (xix) otherwise use its best efforts to comply with all applicable
      rules and regulations of the Commission, and make generally available to
      its security holders, as soon as practicable, a consolidated earnings
      statement meeting the requirements of Rule 158 (which need not be audited)
      for the twelve-month period (A) commencing at the end of any fiscal
      quarter in which Transfer Restricted Securities are sold to underwriters
      in a firm or best efforts Underwritten Offering or (B) if not sold to
      underwriters in such an offering, beginning with the first month of the
      Company's first fiscal quarter commencing after the effective date of the
      Registration Statement;

            (xx) cause the Indenture to be qualified under the Trust Indenture
      Act not later than the effective date of the first Registration Statement
      required by this Agreement, and, in connection therewith, cooperate, and
      cause the Guarantors to cooperate, with the Trustee and the Holders of
      Notes to effect such changes to the Indenture as may be required for such
      Indenture to be so qualified in accordance with the terms of the Trust
      Indenture Act; and to execute, and cause the Guarantors to execute, and
      use its best efforts to cause the Trustee to execute, all documents that
      may be required to effect such

                                      13
<PAGE>

      changes and all other forms and documents required to be filed with the
      Commission to enable such Indenture to be so qualified in a timely manner;

            (xxi) cause all Transfer Restricted Securities covered by the
      Registration Statement to be listed on each securities exchange on which
      similar securities issued by the Company are then listed if requested by
      the Holders of a majority in aggregate principal amount of Initial Notes
      or the managing underwriter(s), if any; and

            (xxii) provide promptly to each Holder upon request each document
      filed with the Commission pursuant to the requirements of Section 13 and
      Section 15 of the Exchange Act.

            Each Holder agrees by acquisition of a Transfer Restricted Security
that, upon receipt of any notice from the Company of the existence of any fact
of the kind described in Section 6(c)(iii)(D) hereof, such Holder will keep such
notice confidential and forthwith discontinue disposition of Transfer Restricted
Securities pursuant to the applicable Registration Statement until such Holder's
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 6(c)(xvi) hereof, or until it is advised in writing (the "Advice") by
the Company that the use of the Prospectus may be resumed, and has received
copies of any additional or supplemental filings that are incorporated by
reference in the Prospectus. If so directed by the Company, each Holder will
deliver to the Company (at the Company's expense) all copies, other than
permanent file copies then in such Holder's possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of
receipt of such notice. In the event the Company shall give any such notice, the
time period regarding the effectiveness of such Registration Statement set forth
in Section 3 or 4 hereof, as applicable, shall be extended by the number of days
during the period from and including the date of the giving of such notice
pursuant to Section 6(c)(iii)(D) hereof to and including the date when each
selling Holder covered by such Registration Statement shall have received the
copies of the supplemented or amended Prospectus contemplated by Section
6(c)(xvi) hereof or shall have received the Advice; however, no such extension
shall be taken into account in determining whether Additional Interest are due
pursuant to Section 5 hereof or the amount of such Additional Interest. It is
agreed that the Company's option to suspend use of a Registration Statement
pursuant to this paragraph for more than three business days shall be treated as
a Registration Default for purposes of Section 5. Each Holder agrees to deliver
the Prospectus, if required by the Securities Act, and, if so required, in the
manner and at the time required by the Securities Act. Each Holder further
agrees that it will use the Prospectus and any amendment or supplement thereto,
and make any offer and sale of the Notes, only in compliance with the terms of
this Agreement and all laws and regulations applicable to it, and will conform
its offering and sale of Notes to the plan of distribution set forth in the
Prospectus.

            Section 7. Registration Expenses

            (a) All expenses incident to the Company's or the Guarantors'
performance of or compliance with this Agreement will be borne by the Company
and/or the Guarantors, regardless of whether a Registration Statement becomes
effective, including without limitation: (i) all registration and filing fees
and expenses (including filings made by any Initial Purchaser or Holder with the
NASD (and, if applicable, the reasonable fees and expenses of any "qualified

                                      14
<PAGE>

independent underwriter" and its counsel that may be required by the rules and
regulations of the NASD)); (ii) all fees and expenses of compliance with federal
securities and state Blue Sky or securities laws; (iii) all expenses of printing
(including printing certificates for the Exchange Notes to be issued in the
Exchange Offer and printing of Prospectuses), messenger and delivery services
and telephone; (iv) all fees and disbursements of counsel for the Company, the
Guarantors and, subject to Section 7(b) below, the Holders of Transfer
Restricted Securities; (v) all application and filing fees in connection with
listing the Exchange Notes on a national securities exchange or automated
quotation system pursuant to the requirements thereof, if such listing is
required pursuant to Section 6(c)(xxi) hereof; and (vi) all fees and
disbursements of independent certified public accountants of the Company and the
Guarantors (including the expenses of any special audit and comfort letters
required by or incident to such performance).

            The Company will, in any event, bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expenses of any annual
audit and the fees and expenses of any Person, including special experts,
retained by the Company. Notwithstanding any requirement to the contrary set
forth in this Agreement, the Purchase Agreement or the Indenture, the Company
shall not be responsible for any costs, included but not limited to commissions,
fees, discounts of underwriter(s), brokers, dealers or agents.

            (b) In connection with any Registration Statement required by this
Agreement (including, without limitation, the Exchange Offer Registration
Statement and the Shelf Registration Statement), the Company will reimburse the
Initial Purchasers and the Holders of Transfer Restricted Securities being
tendered in the Exchange Offer and/or resold pursuant to the "Plan of
Distribution" contained in the Exchange Offer Registration Statement or
registered pursuant to the Shelf Registration Statement, as applicable, for the
reasonable fees and disbursements of not more than one counsel, who shall be
Shearman & Sterling LLP unless another firm shall be chosen by the Holders of a
majority in principal amount of the Transfer Restricted Securities for whose
benefit such Registration Statement is being prepared.

            Section 8. Indemnification

            (a) The Company agrees and the Guarantors, jointly and severally,
agree to indemnify and hold harmless (i) each Holder and (ii) each person, if
any, who controls (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) any Holder (any of the persons referred to in
this clause (ii) being hereinafter referred to as a "controlling person") and
(iii) the respective officers, directors, partners, employees, representatives
and agents of any Holder or any controlling person (any person referred to in
clause (i), (ii) or (iii) may hereinafter be referred to as an "Indemnified
Holder"), to the fullest extent lawful, from and against any and all losses,
claims, damages, liabilities, judgments, actions and expenses (including without
limitation and as incurred, reimbursement of all reasonable costs of
investigating, preparing, pursuing, settling, compromising, paying or defending
any claim or action, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, including the reasonable fees and
expenses of counsel to any Indemnified Holder), joint or several, directly or
indirectly caused by, related to, based upon, arising out of or in connection
with any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or Prospectus (or any amendment or
supplement thereto), or any

                                      15
<PAGE>

omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading,
except insofar as such losses, claims, damages, liabilities or expenses are
caused by an untrue statement or omission or alleged untrue statement or
omission that is made in reliance upon and in conformity with information
relating to any of the Holders furnished in writing to the Company by any of the
Holders expressly for use therein. This indemnity agreement shall be in addition
to any liability which the Company may otherwise have.

            In case any action or proceeding (including any governmental or
regulatory investigation or proceeding) shall be brought or asserted against any
of the Indemnified Holders with respect to which indemnity may be sought against
the Company or the Guarantors, such Indemnified Holder (or the Indemnified
Holder controlled by such controlling person) shall promptly notify the Company
and the Guarantors in writing (provided, that the failure to give such notice
shall not relieve the Company or the Guarantors of their respective obligations
pursuant to this Agreement). The Company shall be liable for any settlement of
any such action or proceeding effected with the Company's prior written consent,
which consent shall not be withheld unreasonably, and the Company agrees to
indemnify and hold harmless any Indemnified Holder from and against any loss,
claim, damage, liability or expense by reason of any settlement of any action
effected with the written consent of the Company. The Company shall not, without
the prior written consent of each Indemnified Holder, settle or compromise or
consent to the entry of judgment in or otherwise seek to terminate any pending
or threatened action, claim, litigation or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not any
Indemnified Holder is a party thereto), unless such settlement, compromise,
consent or termination includes an unconditional release of each Indemnified
Holder from all liability arising out of such action, claim, litigation or
proceeding. This indemnity will be in addition to any liability that the Company
and the Guarantors may otherwise have under this Agreement.

            (b) Each Holder of Transfer Restricted Securities agrees, severally
and not jointly, to indemnify and hold harmless the Company and the Guarantors
and any person controlling (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) the Company, or any Guarantor, and the
respective officers, directors, partners, employees, representatives and agents
of each such person (collectively, the "Company Indemnitees"), to the same
extent as the foregoing indemnity from the Company and the Guarantors to each of
the Indemnified Holders, but only with respect to claims and actions based on
information relating to such Holder furnished in writing by such Holder
expressly for use in any Registration Statement. In case any action or
proceeding shall be brought against the Company or its directors or officers or
any such controlling person in respect of which indemnity may be sought against
a Holder of Transfer Restricted Securities, such Holder shall have the rights
and duties given the Company by the preceding paragraph. In no event shall the
liability of any selling Holder hereunder be greater in amount than the dollar
amount of the proceeds received by such Holder upon the sale of the Securities
giving rise to such indemnification obligation. This indemnity will be in
addition to any liability that the Holders may otherwise have under this
Agreement.

            (c) In case any action is brought against any indemnified party and
such indemnified party seeks or intends to seek indemnity from an indemnifying
party, the indemnifying party will be entitled to participate in and, to the
extent that it shall elect, jointly

                                      16
<PAGE>

with all other indemnifying parties similarly notified, by written notice
delivered to the indemnified party promptly after receiving the aforesaid notice
from such indemnified party, to assume the defense thereof with counsel
reasonably satisfactory to such indemnified party; provided, however, if the
defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that a conflict may arise between the positions of the indemnifying party and
the indemnified party in conducting the defense of any such action or that there
may be legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the indemnifying party, the
indemnified party or parties shall have the right to select separate counsel to
assume such legal defenses and to otherwise participate in the defense of such
action on behalf of such indemnified party or parties. Upon receipt of notice
from the indemnifying party to such indemnified party of such indemnifying
party's election so to assume the defense of such action and approval by the
indemnified party of counsel, the indemnifying party will not be liable to such
indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the next preceding sentence (it being understood,
however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel (together with local counsel), approved by the
indemnifying party, representing the indemnified parties who are parties to such
action) or (ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of commencement of the action, in
each of which cases the fees and expenses of counsel shall be at the expense of
the indemnifying party.

            (d) If the indemnification provided for in this Section 8 is
unavailable to an indemnified party under Section 8(a) or Section 8(b) hereof
(other than by reason of exceptions provided in those Sections) in respect of
any losses, claims, damages, liabilities, judgments, actions or expenses
referred to therein, then each applicable indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages,
liabilities or expenses in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Guarantors, on the one hand,
and the Holders, on the other hand, from the Initial Placement (which in the
case of the Issuer shall be deemed to be equal to the total net proceeds from
the Initial Placement as set forth on the cover page of the Offering
Memorandum), the amount of Additional Interest which did not become payable as a
result of the filing of the Registration Statement resulting in such losses,
claims, damages, liabilities, judgments actions or expenses, and such
Registration Statement, or if such allocation is not permitted by applicable
law, the relative fault of the Company and the Guarantors on the one hand, and
of the Indemnified Holder, on the other hand, in connection with the statements
or omissions which resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The relative
fault of the Company on the one hand and of the Indemnified Holder on the other
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company or by
the Indemnified Holder and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include,

                                      17
<PAGE>

subject to the limitations set forth in the second paragraph of Section 8(a),
any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim.

            The Company, the Guarantors and each Holder of Transfer Restricted
Securities agree that it would not be just and equitable if contribution
pursuant to this Section 8(c) were determined by pro rata allocation (even if
the Holders were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations
referred to in the immediately preceding paragraph. The amount paid or payable
by an indemnified party as a result of the losses, claims, damages, liabilities
or expenses referred to in the immediately preceding paragraph shall be deemed
to include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8, none of the Holders (and its related Indemnified
Holders) shall be required to contribute, in the aggregate, any amount in excess
of the amount by which the total proceeds received by such Holder with respect
to the Initial Notes exceeds the amount of any damages which such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Holders' obligations to contribute pursuant to
this Section 8(c) are several in proportion to the respective principal amount
of Initial Notes held by each of the Holders hereunder and not joint.

            Section 9. Rule 144A

            The Company and the Guarantors each hereby agrees with each Holder,
for so long as any Transfer Restricted Securities remain outstanding, to make
available to any Holder or beneficial owner of Transfer Restricted Securities in
connection with any sale thereof and any prospective purchaser of such Transfer
Restricted Securities from such Holder or beneficial owner, the information
required by Rule 144A(d)(4) under the Securities Act in order to permit resales
of such Transfer Restricted Securities pursuant to Rule 144A.

            Section 10. Participation In Underwritten Registrations

            No Holder may participate in any Underwritten Registration hereunder
unless such Holder (a) agrees to sell such Holder's Transfer Restricted
Securities on the basis provided in any underwriting arrangements approved by
the terms hereof and (b) completes and executes all reasonable questionnaires,
powers of attorney, indemnities, underwriting agreements, lock-up letters and
other documents required under the terms of such underwriting arrangements.

            Section 11. Selection Of Underwriters

            The Holders of Transfer Restricted Securities covered by the Shelf
Registration Statement who desire to do so may sell such Transfer Restricted
Securities in an Underwritten Offering. In any such Underwritten Offering, the
investment banker or investment bankers and manager or managers that will
administer the offering will be selected by the Holders of a majority in
aggregate principal amount of the Transfer Restricted Securities included in
such

                                      18
<PAGE>

offering; provided, that such investment bankers and managers must be reasonably
satisfactory to the Company.

            Section 12. Miscellaneous

            (a) Remedies. The Company and the Guarantors each hereby agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of the provisions of this Agreement and hereby agree to
waive the defense in any action for specific performance that a remedy at law
would be adequate; provided, that the Additional Interest contemplated hereunder
shall be the exclusive remedy for any breach of Section 3 or 4 of the Agreement.

            (b) No Inconsistent Agreements. The Company will not, and will cause
the Guarantors not to, on or after the date of this Agreement enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof. Other than this Agreement, neither the Company nor the
Guarantors has entered into any agreement granting any registration rights with
respect to its debt securities to any Person. The rights granted to the Holders
hereunder do not in any way conflict with and are not inconsistent with the
rights granted to the holders of the Company's securities under any agreement in
effect on the date hereof.

            (c) Adjustments Affecting the Notes. The Company will not take any
action, and will use its reasonable best efforts to prevent any change from
occuring, with respect to the Notes that would materially and adversely affect
the ability of the Holders to Consummate any Exchange Offer.

            (d) Amendments and Waivers. The provisions of this Agreement may not
be amended, modified or supplemented, and waivers or consents to or departures
from the provisions hereof may not be given unless the Company has obtained the
written consent of Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities. Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the
rights of Holders whose securities are being tendered pursuant to the Exchange
Offer and that does not affect directly or indirectly the rights of other
Holders whose securities are not being tendered pursuant to such Exchange Offer
may be given by the Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities being tendered or registered; provided that, with
respect to any matter that directly or indirectly affects the rights of any
Initial Purchaser hereunder, the Company shall obtain the written consent of
each such Initial Purchaser with respect to which such amendment, qualification,
supplement, waiver, consent or departure is to be effective.

            (e) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier, or air
courier guaranteeing overnight delivery:

            (i) if to a Holder, at the address set forth on the records of the
      Registrar under the Indenture, with a copy to the Registrar under the
      Indenture; and

            (ii) if to the Company:

                                      19
<PAGE>

                  Stewart Enterprises, Inc.
                  1333 S. Clearview Parkway
                  Jefferson, LA 70121
                  Facsimile: 504-729-1407
                  Attention: Thomas M. Kitchen, Chief Financial Officer

                  With a copy to:

                  Jones, Walker, Waechter, Poitevent,
                  Carrere and Denegre, L.L.P.
                  201 St. Charles Avenue
                  New Orleans, LA 70170-5100
                  Telecopier No.: (504) 582-8012
                  Attention: L. Richards McMillan, Esq.

            All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five
business days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if telecopied; and on
the next business day, if timely delivered to an air courier guaranteeing
overnight delivery.

            Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.

            (f) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that this Agreement shall not inure to the benefit of or be binding
upon a successor or assign of a Holder unless and to the extent such successor
or assign acquired Transfer Restricted Securities from such Holder.

            (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

            (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

            (I) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICT OF LAW RULES THEREOF.

            (j) Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                                      20
<PAGE>

            (k) Entire Agreement. This Agreement together with the other
Operative Documents (as defined in the Purchase Agreement) is intended by the
parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with
respect to the Transfer Restricted Securities. This Agreement supersedes all
prior agreements and understandings between the parties with respect to such
subject matter.

                                      21
<PAGE>

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

                    STEWART ENTERPRISES, INC.

                    By: /s/ Loralice A. Trahan
                        Name:  Loralice A. Trahan
                        Title: Vice President, Treasurer and Secretary

                    GUARANTORS:

                    KILGORE-GREEN FUNERAL HOME, INC.
                    S.E. CEMETERIES OF ALABAMA, INC.
                    S.E. COMBINED SERVICES OF ALABAMA, INC.
                    S.E. FUNERAL HOMES OF ALABAMA, INC.
                    FOREST HILLS CEMETERY, INC.
                    GRIFFIN-LEGGETT INSURANCE AGENCY, INC.
                    GRIFFIN-LEGGETT, INC.
                    GROSS FUNERAL HOME, INC.
                    REST HILLS MEMORIAL PARK, INC.
                    S.E. FUNERAL HOMES OF ARKANSAS, INC.
                    ALL SOULS MORTUARY, INC.
                    ASHES TO ASHES, INC.
                    ASSUMPTION MORTUARY, INC.
                    BARSTOW FUNERAL HOMES, INC.
                    BUCHHEIM FAMILY, INC.
                    CALVARY MORTUARY OF LOS ANGELES, CALIFORNIA, INC.
                    CATALINA CHANNEL CREMATION SOCIETY
                    CATHOLIC MORTUARY SERVICES, INC.
                    DeYOUNG MEMORIAL CHAPEL, INC.
                    DILDAY BROTHERS HUNTINGTON VALLEY MORTUARY
                    HOLY CROSS MORTUARY OF CULVER CITY, CALIFORNIA, INC.
                    HOLY CROSS MORTUARY OF POMONA, CALIFORNIA, INC.
                    HOPSON MORTUARY, INC.
                    LASSILA FUNERAL CHAPELS, INC.
                    LOMBARD & CO.
                    N.D. DAVIS & ASSOCIATES, INC.
                    QUEEN OF HEAVEN MORTUARY, INC.
                    RESURRECTION MORTUARY, INC.
                    RIVER CITIES FUNERAL CHAPEL, INC.
                    S.E. ACQUISITION OF CALIFORNIA, INC.

                               22
<PAGE>

                    S.E. ACQUISITION OF DELANO, CALIFORNIA, INC.
                    S.E. ACQUISITION OF GLENDALE, CALIFORNIA, INC.
                    S.E. ACQUISITION OF LANCASTER, CALIFORNIA, INC.
                    S.E. ACQUISITION OF LOS OSOS MORTUARY AND MEMORIAL PARK,
                      INC.
                    S.E. ACQUISITION OF OAKHURST, CALIFORNIA, INC.
                    S.E. ACQUISITION OF OROVILLE, CALIFORNIA, INC.
                    SAN DIEGO CEMETERY ASSOCIATION
                    SAN FERNANDO MISSION MORTUARY, INC.
                    SANTA BARBARA FUNERAL SERVICES, INC.
                    SANTA CLARA MORTUARY, INC.
                    SCOVERN MORTUARY, A CALIFORNIA CORPORATION
                    SDCA HOLDINGS, INC.
                    SIMPLICITY PLAN OF CALIFORNIA, INC.
                    STEWART PRE-NEED SERVICES, INC.
                    STRICKLIN/SNIVELY MORTUARY
                    VICTOR V. DESROSIER, INC.
                    WALLACE E. WHITE & HOWARD J. CALLANAN, INC.
                    SENTINEL CREMATION SOCIETIES, INC.
                    A.P. BOZA FUNERAL HOME, INC.
                    ALL FAITHS MEMORIAL PARK, INC.
                    ARLINGTON MEMORIAL PARK CEMETERY AND FUNERAL HOME, INC.
                    BALDWIN-FAIRCHILD FUNERAL HOMES, INC.
                    BAY AREA CREMATORY, INC.
                    BETH DAVID MEMORIAL CHAPEL, INC.
                    BRUCE OCALA FUNERAL HOME, INC.
                    CEMETERY MANAGEMENT, INC.
                    CHAPEL HILL CEMETERY, INC.
                    CURRY & SON FUNERAL HOME, INC.
                    DAVID C. GROSS FUNERAL HOME, INC.
                    FLORIDA HILLS MEMORIAL GARDENS, INC.
                    GARDEN OF MEMORIES, INC.
                    GLEN HAVEN MEMORIAL PARK, INC.
                    GOOD SHEPHERD MEMORIAL GARDENS, INC.
                    HIGHLAND MEMORY GARDENS, INC.
                    HUBBELL FUNERAL HOME AND CREMATORY, INC.
                    KENT R. PALMER, INC.
                    KICLITER FUNERAL HOME, INC.
                    MADCEM OF FLORIDA, INC.

                               23
<PAGE>

                    MEMORIAL PARK CEMETERY, INC.
                    MEMORIAL SUNSET PARK, INC.
                    OAKLAWN PARK CEMETERY AND FUNERAL HOME, INC.
                    ROBERTS FUNERAL HOME, INC.
                    ROYAL PALM MEMORIAL GARDENS, INC.
                    SEMORAN FUNERAL HOME, INC.
                    SOUTH DADE-PALMS MEMORIAL PARK, INC.
                    SYLVAN ABBEY MEMORIAL PARK, INC.
                    THE SIMPLICITY PLAN, INC.
                    TRINITY MEMORIAL GARDENS OF LAKELAND, INC.
                    TURNER CREMATORY, INC.
                    TURNER FUNERAL HOMES, INC.
                    WALSH & WOOD FUNERAL HOME, INC.
                    WOODLAWN MEMORY GARDENS, INC.
                    WOODLAWN PARK CEMETERY COMPANY
                    CHEATHAM HILL MEMORIAL PARK, INC.
                    EASTLAWN CORPORATION
                    GARNER FAMILY FUNERAL HOME, INC.
                    HAISTEN FUNERAL HOME OF HENRY COUNTY, INC.
                    HAISTEN FUNERAL HOMES, INC.
                    HIGGINS AND SON FUNERAL HOME, INC.
                    HOLLY HILL MEMORIAL PARK, INC.
                    ROSEHAVEN FUNERAL HOME & CEMETERY, INC.
                    S.E. ACQUISITION OF LITHONIA, GEORGIA, INC.
                    S.E. ACQUISITION OF BLUE ISLAND, ILLINOIS, INC.
                    S.E. ACQUISITION OF OAK LAWN AND ORLAND PARK, ILLINOIS, INC.
                    ANDREW J. MCGANN & SON FUNERAL HOME, INC.
                    S.E. FUNERAL HOMES OF ILLINOIS, INC.
                    KNUTSON FUNERAL HOMES, INC.
                    PAULEY FUNERAL HOME, INC.
                    RUNYAN MANGOLD, INC.
                    ACME MAUSOLEUM CORPORATION
                    EMPRESAS STEWART - CEMENTERIOS, INC.
                    EMPRESAS STEWART - FUNERARIAS, INC.
                    LAKE LAWN METAIRIE FUNERAL HOME (JOINT VENTURE)
                    LAKE LAWN PARK, INC.
                    S.E. AUSTRALIA, INC.
                    S.E. CEMETERIES OF LOUISIANA, INC.
                    S.E. FUNERAL HOMES OF LOUISIANA, INC.

                               24
<PAGE>

                    S.E. SOUTH-CENTRAL, INC.
                    STEWART ENTERPRISES (EUROPE) INC.
                    STEWART RESOURCE CENTER, INC.
                    STEWART SERVICES, INC.
                    BOUNDS FUNERAL HOME, INC.
                    CEDAR HILL CEMETERY COMPANY, INC.
                    CREST LAWN MEMORIAL GARDENS, INC.
                    DRUID RIDGE CEMETERY COMPANY
                    FORT LINCOLN CEMETERY, INC.
                    FORT LINCOLN FUNERAL HOME, INC.
                    GALLERY GRANITE CORPORATION
                    HILLCREST MEMORIAL CEMETERY, INC.
                    HINES-RINALDI FUNERAL HOME, INC.
                    JOHN M. TAYLOR FUNERAL HOME, INC.
                    LOUDON PARK CEMETERY COMPANY
                    LOUDON PARK FUNERAL HOME, INC.
                    NATIONAL HARMONY MEMORIAL PARK, INC.
                    PARKLAWN, INC.
                    PARKWOOD MANAGEMENT COMPANY
                    S.E. MID-ATLANTIC, INC.
                    SIMPLE TRIBUTE OF MARYLAND, INC.
                    THE PARKWOOD CEMETERY COMPANY
                    WILLIAM W. CHAMBERS, INC.
                    LAKEWOOD MEMORIAL PARK, INC.
                    D.W. NEWCOMER'S SONS, INC.
                    DWN PROPERTIES, INC.
                    FUNERAL SECURITY PLANS, INC.
                    NEPTUNE SOCIETY OF NEVADA, INC.
                    RENO MEMORIAL, INC.
                    S.E. ACQUISITION OF NEVADA, INC.
                    S.E. ACQUISITION OF RENO, NEVADA, INC.
                    GORNY & GORNY PATERSON-CLIFTON MORTUARY
                    S.E. ACQUISITION OF CLIFTON, NEW JERSEY, INC.
                    S.E. ACQUISITION OF SANTA FE, NEW MEXICO, INC.
                    C.J. APPLEGATE AND SONS, INC.
                    CORNELL & DAGGETT, INC.
                    GARDINIER COLLETTI MEMORIAL HOME, INC.
                    MURPHY FUNERAL SERVICE, INC.
                    OTTO REDANZ FUNERAL HOME, INC.
                    S.E. ACQUISITION OF FREDONIA, NEW YORK, INC.
                    STRONG & BURNS FUNERAL HOME, INC.
                    CATAWBA MEMORIAL PARK, INC.
                    EVANS FUNERAL HOME, INC.

                                      25
<PAGE>

                            GARRETT - HILLCREST, INC.
                            MCLAURIN'S FUNERAL HOME, INC.
                            MONTLAWN MEMORIAL PARK, INC.
                            S.E. CEMETERIES OF NORTH CAROLINA, INC.
                            S.E. FUNERAL HOMES OF NORTH CAROLINA, INC.
                            AMLING/SCHROEDER FUNERAL SERVICE, INC.
                            CASCADE CREMATORY, INC.
                            CHAPEL OF THE ROSES, INC.
                            CHAPEL OF THE VALLEY FUNERAL HOME, INC.
                            DUTTON, INC.
                            S.E. GREENWOOD, INC.
                            J.P. FINLEY AND SON MORTUARY, INC.
                            S.E. BEND NR, INC.
                            S.E. ACQUISITION OF MYRTLE CREEK, OREGON, INC.
                            S.E. ACQUISITION OF OREGON, INC.
                            S.E. ACQUISITION OF REEDSPORT, OREGON, INC.
                            SUNSET HILLS MEMORIAL PARK
                            S.E. BEND TDHM, INC.
                            BENJAMIN FRANKLIN P. M., INC.
                            GEORGE WASHINGTON MEMORIAL PARK, INC.
                            KIRK & NICE SUBURBAN CHAPEL, INC.
                            KIRK & NICE, INC.
                            PET HAVEN, INC.
                            S.E. ACQUISITION OF PENNSYLVANIA, INC.
                            SUNSET MEMORIAL PARK COMPANY
                            DUNBAR FUNERAL HOME
                            S.E. CEMETERIES OF SOUTH CAROLINA, INC.
                            S.E. COMBINED SERVICES OF SOUTH CAROLINA, INC.
                            S.E. FUNERAL HOMES OF SOUTH CAROLINA, INC.
                            MONTE VISTA BURIAL PARK, INC.
                            MT. JULIET MEMORIAL GARDENS, INC.
                            NAVE FUNERAL HOME OF LEBANON, INC.
                            S.E. COMBINED SERVICES OF TENNESSEE, INC.
                            S.E. FUNERAL HOMES OF TENNESSEE, INC.
                            THE NASHVILLE HISTORIC CEMETERY ASSOCIATION, INC.
                            ABBEY PLAN OF TEXAS, INC.
                            BELEW FUNERAL HOME, INC.
                            EMERALD HILLS FUNERAL CORPORATION

                                       26

<PAGE>

                            GUARDIAN CREMATION SOCIETY, INC.
                            LYONS FUNERAL HOME, INC.
                            PASADENA FUNERAL HOME, INC.
                            S.E. FUNERAL HOMES OF TEXAS, INC.
                            S.E. CEMETERIES OF TEXAS, INC.
                            SIMPLICITY PLAN OF TEXAS, INC.
                            CLINCH VALLEY MEMORIAL CEMETERY, INC.
                            EVERLY FUNERAL HOMES, INCORPORATED
                            EVERLY PFP, INC.
                            MONTICELLO MEMORY GARDENS, INC.
                            S.E. CEMETERIES OF VIRGINIA, INC.
                            S.E. FUNERAL HOMES OF VIRGINIA, INC.
                            CREMATION SOCIETY NORTHWEST, INC.
                            E.R. BUTTERWORTH & SONS
                            S.E.E.S. OF VANCOUVER, INC.
                            S.E. ACQUISITION OF WASHINGTON, INC.
                            BARTLETT-BURDETTE-COX FUNERAL HOME, INC.
                            CASDORPH & CURRY FUNERAL HOME, INC.
                            EASTERN CEMETERY ASSOCIATES, INC.
                            KANAWHA PLAZA PARTNERSHIP
                            KLINGEL-CARPENTER MORTUARY, INC.
                            LOI CHARLESTON, INC.
                            NATIONAL EXCHANGE TRUST, LTD.
                            NATIONAL FUNERAL SERVICES, INCORPORATED
                            S.E. ACQUISITION OF MALDEN, WEST VIRGINIA, INC.
                            S.E. CEMETERIES OF WEST VIRGINIA, INC.
                            S.E. FUNERAL HOMES OF WEST VIRGINIA, INC.
                            WILSON FUNERAL HOME, INC.
                            CEMETERY SERVICES, INC.
                            WISCONSIN MEMORIAL PARK COMPANY, INC.
                            S.E. CEMETERIES OF WISCONSIN, INC.

                            By: /s/ Loralice A. Trahan
                                  Name: Loralice A. Trahan
                                  Title: Authorized Signatory

                                       27

<PAGE>

The foregoing Registration Rights Agreement is hereby confirmed and accepted as
of the date first above written.

BANC OF AMERICA SECURITIES LLC
BEAR, STEARNS & CO. INC.
MERRILL LYNCH, PIERCE, FENNER & SMITH
                INCORPORATED
CALYON SECURITIES (USA) INC.
SUNTRUST CAPITAL MARKETS, INC.

BY: BANC OF AMERICA SECURITIES LLC

By: /s/ James G. Rose
Name: James G. Rose
Title: Managing Director

<PAGE>

                                                                      SCHEDULE A

                                   GUARANTORS

<TABLE>
<CAPTION>
                                                               JURISDICTION OF
               GUARANTOR                                         ORGANIZATION
               ---------                                         ------------
<S>                                                            <C>
KILGORE-GREEN FUNERAL HOME, INC.                                   ALABAMA
S.E. CEMETERIES OF ALABAMA, INC.                                   ALABAMA
S.E. COMBINED SERVICES OF ALABAMA, INC.                            ALABAMA
S.E. FUNERAL HOMES OF ALABAMA, INC.                                ALABAMA
FOREST HILLS CEMETERY, INC.                                        ARKANSAS
GRIFFIN-LEGGETT INSURANCE AGENCY, INC.                             ARKANSAS
GRIFFIN-LEGGETT, INC.                                              ARKANSAS
GROSS FUNERAL HOME, INC.                                           ARKANSAS
REST HILLS MEMORIAL PARK, INC.                                     ARKANSAS
S.E. FUNERAL HOMES OF ARKANSAS, INC.                               ARKANSAS
ALL SOULS MORTUARY, INC.                                          CALIFORNIA
ASHES TO ASHES, INC.                                              CALIFORNIA
ASSUMPTION MORTUARY, INC.                                         CALIFORNIA
BARSTOW FUNERAL HOMES, INC.                                       CALIFORNIA
BUCHHEIM FAMILY, INC.                                             CALIFORNIA
CALVARY MORTUARY OF LOS ANGELES, CALIFORNIA, INC.                 CALIFORNIA
CATALINA CHANNEL CREMATION SOCIETY                                CALIFORNIA
CATHOLIC MORTUARY SERVICES, INC.                                  CALIFORNIA
DeYOUNG MEMORIAL CHAPEL, INC.                                     CALIFORNIA
DILDAY BROTHERS HUNTINGTON VALLEY MORTUARY                        CALIFORNIA
HOLY CROSS MORTUARY OF CULVER CITY, CALIFORNIA, INC.              CALIFORNIA
HOLY CROSS MORTUARY OF POMONA, CALIFORNIA, INC.                   CALIFORNIA
HOPSON MORTUARY, INC.                                             CALIFORNIA
LASSILA FUNERAL CHAPELS, INC.                                     CALIFORNIA
LOMBARD & CO.                                                     CALIFORNIA
N.D. DAVIS & ASSOCIATES, INC.                                     CALIFORNIA
QUEEN OF HEAVEN MORTUARY, INC.                                    CALIFORNIA
RESURRECTION MORTUARY, INC.                                       CALIFORNIA
RIVER CITIES FUNERAL CHAPEL, INC.                                 CALIFORNIA
S.E. ACQUISITION OF CALIFORNIA, INC.                              CALIFORNIA
S.E. ACQUISITION OF DELANO, CALIFORNIA, INC.                      CALIFORNIA
S.E. ACQUISITION OF GLENDALE, CALIFORNIA, INC.                    CALIFORNIA
S.E. ACQUISITION OF LANCASTER, CALIFORNIA, INC.                   CALIFORNIA
S.E. ACQUISITION OF LOS OSOS MORTUARY AND MEMORIAL PARK, INC.     CALIFORNIA
S.E. ACQUISITION OF OAKHURST, CALIFORNIA, INC.                    CALIFORNIA
S.E. ACQUISITION OF OROVILLE, CALIFORNIA, INC.                    CALIFORNIA
SAN DIEGO CEMETERY ASSOCIATION                                    CALIFORNIA
SAN FERNANDO MISSION MORTUARY, INC.                               CALIFORNIA
SANTA BARBARA FUNERAL SERVICES, INC.                              CALIFORNIA
SANTA CLARA MORTUARY, INC.                                        CALIFORNIA
SCOVERN MORTUARY, A CALIFORNIA CORPORATION                        CALIFORNIA
SDCA HOLDINGS, INC.                                               CALIFORNIA
SIMPLICITY PLAN OF CALIFORNIA, INC.                               CALIFORNIA
STEWART PRE-NEED SERVICES, INC.                                   CALIFORNIA
STRICKLIN/SNIVELY MORTUARY                                        CALIFORNIA
VICTOR V. DESROSIER, INC.                                         CALIFORNIA
WALLACE E. WHITE & HOWARD J. CALLANAN, INC.                       CALIFORNIA
SENTINEL CREMATION SOCIETIES, INC.                                 DELAWARE
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                               JURISDICTION OF
               GUARANTOR                                         ORGANIZATION
               ---------                                         ------------
<S>                                                            <C>
A.P. BOZA FUNERAL HOME, INC.                                       FLORIDA
ALL FAITHS MEMORIAL PARK, INC.                                     FLORIDA
ARLINGTON MEMORIAL PARK CEMETERY AND FUNERAL HOME, INC.            FLORIDA
BALDWIN-FAIRCHILD FUNERAL HOMES, INC.                              FLORIDA
BAY AREA CREMATORY, INC.                                           FLORIDA
BETH DAVID MEMORIAL CHAPEL, INC.                                   FLORIDA
BRUCE OCALA FUNERAL HOME, INC.                                     FLORIDA
CEMETERY MANAGEMENT, INC.                                          FLORIDA
CHAPEL HILL CEMETERY, INC.                                         FLORIDA
CURRY & SON FUNERAL HOME, INC.                                     FLORIDA
DAVID C. GROSS FUNERAL HOME, INC.                                  FLORIDA
FLORIDA HILLS MEMORIAL GARDENS, INC.                               FLORIDA
GARDEN OF MEMORIES, INC.                                           FLORIDA
GLEN HAVEN MEMORIAL PARK, INC.                                     FLORIDA
GOOD SHEPHERD MEMORIAL GARDENS, INC.                               FLORIDA
HIGHLAND MEMORY GARDENS, INC.                                      FLORIDA
HUBBELL FUNERAL HOME AND CREMATORY, INC.                           FLORIDA
KENT R. PALMER, INC.                                               FLORIDA
KICLITER FUNERAL HOME, INC.                                        FLORIDA
MADCEM OF FLORIDA, INC.                                            FLORIDA
MEMORIAL PARK CEMETERY, INC.                                       FLORIDA
MEMORIAL SUNSET PARK, INC.                                         FLORIDA
OAKLAWN PARK CEMETERY AND FUNERAL HOME, INC.                       FLORIDA
ROBERTS FUNERAL HOME, INC.                                         FLORIDA
ROYAL PALM MEMORIAL GARDENS, INC.                                  FLORIDA
SEMORAN FUNERAL HOME, INC.                                         FLORIDA
SOUTH DADE-PALMS MEMORIAL PARK, INC.                               FLORIDA
SYLVAN ABBEY MEMORIAL PARK, INC.                                   FLORIDA
THE SIMPLICITY PLAN, INC.                                          FLORIDA
TRINITY MEMORIAL GARDENS OF LAKELAND, INC.                         FLORIDA
TURNER CREMATORY, INC.                                             FLORIDA
TURNER FUNERAL HOMES, INC.                                         FLORIDA
WALSH & WOOD FUNERAL HOME, INC.                                    FLORIDA
WOODLAWN MEMORY GARDENS, INC.                                      FLORIDA
WOODLAWN PARK CEMETERY COMPANY                                     FLORIDA
CHEATHAM HILL MEMORIAL PARK, INC.                                  GEORGIA
EASTLAWN CORPORATION                                               GEORGIA
GARNER FAMILY FUNERAL HOME, INC.                                   GEORGIA
HAISTEN FUNERAL HOME OF HENRY COUNTY, INC.                         GEORGIA
HAISTEN FUNERAL HOMES, INC.                                        GEORGIA
HIGGINS AND SON FUNERAL HOME, INC.                                 GEORGIA
HOLLY HILL MEMORIAL PARK, INC.                                     GEORGIA
ROSEHAVEN FUNERAL HOME & CEMETERY, INC.                            GEORGIA
S.E. ACQUISITION OF LITHONIA, GEORGIA, INC.                        GEORGIA
S.E. ACQUISITION OF BLUE ISLAND, ILLINOIS, INC.                    ILLINOIS
S.E. ACQUISITION OF OAK LAWN AND ORLAND PARK, ILLINOIS, INC.       ILLINOIS
ANDREW J. MCGANN & SON FUNERAL HOME, INC.                          ILLINOIS
S.E. FUNERAL HOMES OF ILLINOIS, INC.                               ILLINOIS
KNUTSON FUNERAL HOMES, INC.                                          IOWA
PAULEY FUNERAL HOME, INC.                                            IOWA
RUNYAN MANGOLD, INC.                                                KANSAS
ACME MAUSOLEUM CORPORATION                                        LOUISIANA
EMPRESAS STEWART - CEMENTERIOS, INC.                              LOUISIANA
</TABLE>

                                        2

<PAGE>

<TABLE>
<CAPTION>
                                                               JURISDICTION OF
               GUARANTOR                                         ORGANIZATION
               ---------                                        --------------
<S>                                                            <C>
EMPRESAS STEWART - FUNERARIAS, INC.                               LOUISIANA
LAKE LAWN METAIRIE FUNERAL HOME (JOINT VENTURE)                   LOUISIANA
LAKE LAWN PARK, INC.                                              LOUISIANA
S.E. AUSTRALIA, INC.                                              LOUISIANA
S.E. CEMETERIES OF LOUISIANA, INC.                                LOUISIANA
S.E. FUNERAL HOMES OF LOUISIANA, INC.                             LOUISIANA
S.E. SOUTH-CENTRAL, INC.                                          LOUISIANA
STEWART ENTERPRISES (EUROPE) INC.                                 LOUISIANA
STEWART RESOURCE CENTER, INC.                                     LOUISIANA
STEWART SERVICES, INC.                                            LOUISIANA
BOUNDS FUNERAL HOME, INC.                                          MARYLAND
CEDAR HILL CEMETERY COMPANY, INC.                                  MARYLAND
CREST LAWN MEMORIAL GARDENS, INC.                                  MARYLAND
DRUID RIDGE CEMETERY COMPANY                                       MARYLAND
FORT LINCOLN CEMETERY, INC.                                        MARYLAND
FORT LINCOLN FUNERAL HOME, INC.                                    MARYLAND
GALLERY GRANITE CORPORATION                                        MARYLAND
HILLCREST MEMORIAL CEMETERY, INC.                                  MARYLAND
HINES-RINALDI FUNERAL HOME, INC.                                   MARYLAND
JOHN M. TAYLOR FUNERAL HOME, INC.                                  MARYLAND
LOUDON PARK CEMETERY COMPANY                                       MARYLAND
LOUDON PARK FUNERAL HOME, INC.                                     MARYLAND
NATIONAL HARMONY MEMORIAL PARK, INC.                               MARYLAND
PARKLAWN, INC.                                                     MARYLAND
PARKWOOD MANAGEMENT COMPANY                                        MARYLAND
S.E. MID-ATLANTIC, INC.                                            MARYLAND
SIMPLE TRIBUTE OF MARYLAND, INC.                                   MARYLAND
THE PARKWOOD CEMETERY COMPANY                                      MARYLAND
WILLIAM W. CHAMBERS, INC.                                          MARYLAND
LAKEWOOD MEMORIAL PARK, INC.                                     MISSISSIPPI
D.W. NEWCOMER'S SONS, INC.                                         MISSOURI
DWN PROPERTIES, INC.                                               MISSOURI
FUNERAL SECURITY PLANS, INC.                                       MISSOURI
NEPTUNE SOCIETY OF NEVADA, INC.                                     NEVADA
RENO MEMORIAL, INC.                                                 NEVADA
S.E. ACQUISITION OF NEVADA, INC.                                    NEVADA
S.E. ACQUISITION OF RENO, NEVADA, INC.                              NEVADA
GORNY & GORNY PATERSON-CLIFTON MORTUARY                           NEW JERSEY
S.E. ACQUISITION OF CLIFTON, NEW JERSEY, INC.                     NEW JERSEY
S.E. ACQUISITION OF SANTA FE, NEW MEXICO, INC.                    NEW MEXICO
C.J. APPLEGATE AND SONS, INC.                                      NEW YORK
CORNELL & DAGGETT, INC.                                            NEW YORK
GARDINIER COLLETTI MEMORIAL HOME, INC.                             NEW YORK
MURPHY FUNERAL SERVICE, INC.                                       NEW YORK
OTTO REDANZ FUNERAL HOME, INC.                                     NEW YORK
S.E. ACQUISITION OF FREDONIA, NEW YORK, INC.                       NEW YORK
STRONG & BURNS FUNERAL HOME, INC.                                  NEW YORK
CATAWBA MEMORIAL PARK, INC.                                     NORTH CAROLINA
EVANS FUNERAL HOME, INC.                                        NORTH CAROLINA
GARRETT - HILLCREST, INC.                                       NORTH CAROLINA
MCLAURIN'S FUNERAL HOME, INC.                                   NORTH CAROLINA
MONTLAWN MEMORIAL PARK, INC.                                    NORTH CAROLINA
S.E. CEMETERIES OF NORTH CAROLINA, INC.                         NORTH CAROLINA
</TABLE>

                                        3

<PAGE>

<TABLE>
<CAPTION>
                                                               JURISDICTION OF
               GUARANTOR                                         ORGANIZATION
               ---------                                        --------------
<S>                                                            <C>
S.E. FUNERAL HOMES OF NORTH CAROLINA, INC.                      NORTH CAROLINA
AMLING/SCHROEDER FUNERAL SERVICE, INC.                              OREGON
CASCADE CREMATORY, INC.                                             OREGON
CHAPEL OF THE ROSES, INC.                                           OREGON
CHAPEL OF THE VALLEY FUNERAL HOME, INC.                             OREGON
DUTTON, INC.                                                        OREGON
S.E. GREENWOOD, INC.                                                OREGON
J.P. FINLEY AND SON MORTUARY, INC.                                  OREGON
S.E. BEND NR, INC.                                                  OREGON
S.E. ACQUISITION OF MYRTLE CREEK, OREGON, INC.                      OREGON
S.E. ACQUISITION OF OREGON, INC.                                    OREGON
S.E. ACQUISITION OF REEDSPORT, OREGON, INC.                         OREGON
SUNSET HILLS MEMORIAL PARK                                          OREGON
S.E. BEND TDHM, INC.                                                OREGON
BENJAMIN FRANKLIN  P. M., INC.                                   PENNSYLVANIA
GEORGE WASHINGTON MEMORIAL PARK, INC.                            PENNSYLVANIA
KIRK & NICE SUBURBAN CHAPEL, INC.                                PENNSYLVANIA
KIRK & NICE, INC.                                                PENNSYLVANIA
PET HAVEN, INC.                                                  PENNSYLVANIA
S.E. ACQUISITION OF PENNSYLVANIA, INC.                           PENNSYLVANIA
SUNSET MEMORIAL PARK COMPANY                                     PENNSYLVANIA
DUNBAR FUNERAL HOME                                             SOUTH CAROLINA
S.E. CEMETERIES OF SOUTH CAROLINA, INC.                         SOUTH CAROLINA
S.E. COMBINED SERVICES OF SOUTH CAROLINA, INC.                  SOUTH CAROLINA
S.E. FUNERAL HOMES OF SOUTH CAROLINA, INC.                      SOUTH CAROLINA
MONTE VISTA BURIAL PARK, INC.                                     TENNESSEE
MT. JULIET MEMORIAL GARDENS, INC.                                 TENNESSEE
NAVE FUNERAL HOME OF LEBANON, INC.                                TENNESSEE
S.E. COMBINED SERVICES OF TENNESSEE, INC.                         TENNESSEE
S.E. FUNERAL HOMES OF TENNESSEE, INC.                             TENNESSEE
THE NASHVILLE HISTORIC CEMETERY ASSOCIATION, INC.                 TENNESSEE
ABBEY PLAN OF TEXAS, INC.                                           TEXAS
BELEW FUNERAL HOME, INC.                                            TEXAS
EMERALD HILLS FUNERAL CORPORATION                                   TEXAS
GUARDIAN CREMATION SOCIETY, INC.                                    TEXAS
LYONS FUNERAL HOME, INC.                                            TEXAS
PASADENA FUNERAL HOME, INC.                                         TEXAS
S.E. FUNERAL HOMES OF TEXAS, INC.                                   TEXAS
S.E. CEMETERIES OF TEXAS, INC.                                      TEXAS
SIMPLICITY PLAN OF TEXAS, INC.                                      TEXAS
CLINCH VALLEY MEMORIAL CEMETERY, INC.                              VIRGINIA
EVERLY FUNERAL HOMES, INCORPORATED                                 VIRGINIA
EVERLY PFP, INC.                                                   VIRGINIA
MONTICELLO MEMORY GARDENS, INC.                                    VIRGINIA
S.E. CEMETERIES OF VIRGINIA, INC.                                  VIRGINIA
S.E. FUNERAL HOMES OF VIRGINIA, INC.                               VIRGINIA
CREMATION SOCIETY NORTHWEST, INC.                                 WASHINGTON
E.R. BUTTERWORTH & SONS                                           WASHINGTON
S.E.E.S. OF VANCOUVER, INC.                                       WASHINGTON
S.E. ACQUISITION OF WASHINGTON, INC.                              WASHINGTON
BARTLETT-BURDETTE-COX FUNERAL HOME, INC.                        WEST VIRGINIA
CASDORPH & CURRY FUNERAL HOME, INC.                             WEST VIRGINIA
EASTERN CEMETERY ASSOCIATES, INC.                               WEST VIRGINIA
</TABLE>

                                        4

<PAGE>

<TABLE>
<CAPTION>
                                                               JURISDICTION OF
               GUARANTOR                                         ORGANIZATION
               ---------                                        --------------
<S>                                                            <C>
KANAWHA PLAZA PARTNERSHIP                                       WEST VIRGINIA
KLINGEL-CARPENTER MORTUARY, INC.                                WEST VIRGINIA
LOI CHARLESTON, INC.                                            WEST VIRGINIA
NATIONAL EXCHANGE TRUST, LTD.                                   WEST VIRGINIA
NATIONAL FUNERAL SERVICES, INCORPORATED                         WEST VIRGINIA
S.E. ACQUISITION OF MALDEN, WEST VIRGINIA, INC.                 WEST VIRGINIA
S.E. CEMETERIES OF WEST VIRGINIA, INC.                          WEST VIRGINIA
S.E. FUNERAL HOMES OF WEST VIRGINIA, INC.                       WEST VIRGINIA
WILSON FUNERAL HOME, INC.                                       WEST VIRGINIA
CEMETERY SERVICES, INC.                                           WISCONSIN
WISCONSIN MEMORIAL PARK COMPANY, INC.                             WISCONSIN
S.E. CEMETERIES OF WISCONSIN, INC.                                WISCONSIN
</TABLE>

                                        5exv10w45

 

Exhibit 10.45

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into to be effective as of
October 1, 2004, by and among Viablelinks, Inc., an Oregon corporation (the “Company” or
“Seller”), and En Pointe Technologies Sales, Inc., a Delaware corporation (the “Purchaser”).

RECITALS

WHEREAS, the Company is in the business of selling personal computer products to corporate end
users (the “Business”); and

WHEREAS, due to various, primarily financial, circumstances the Company has recently sought to sell
various of its assets, and has entertained various prior offers for same or portions of same, and
has determined that Purchaser has made a fair offer for certain assets of the Company, which offer
is the best of the offers Company has previously received; and

WHEREAS, Seller therefore desires to sell to the Purchaser, and the Purchaser desires to purchase
from Seller, substantially all of the Intangible Assets, as set forth in Article I, 1.1, of the
Company and certain Tangible Assets all as forth on Schedule 1.1 (h), attached hereto, of Seller
but excluding any and all liabilities of Seller, except as otherwise expressly set forth in Section
1.4 hereof.

NOW, THEREFORE, for and in consideration of the premises and mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged by each of the parties, and intending to be legally bound, the parties agree
as follows:

AGREEMENT

ARTICLE I

PURCHASE AND SALE OF ASSETS AND PURCHASE PRICE

1.1 Purchase and Sale of Assets. Subject to the terms and conditions of this Agreement, on the
Closing Date (as defined in Section 2.1 below), Seller shall sell, convey, transfer, assign and
deliver to Purchaser, and Purchaser agrees to purchase, accept and assume, all of Seller’s right,
title and interest in and to, substantially all of the intangible assets owned by Seller and used
or useful in the operation of the Business (except for the Excluded Liabilities (as defined in
Section 1.5 below)) and certain Tangible Assets of Seller set forth on Schedule 1.1 (h) , attached
hereto, free and clear of

1

 

some Liens (as defined in Section 3.10(d) below, but subject to the Liens scheduled in Attachment
1.1, subject to Sections 2.3(a)(x) and 2.3(a)(xi) below), including, without limitation, the
following and, in any case, excluding the Excluded Assets (as defined in Section 1.6 below)
(collectively, the “Purchased Assets”):

(a) All customer lists and other customer information (including, without limitation, addresses,
telephone numbers, web site addresses, contact person, etc.), all purchase agreements, all service
and customer contracts and all rights associated therewith;

(b) All vendor lists and other vendor information (including, without limitation, addresses,
telephone numbers, web site addresses, contact person, etc.), all supply agreements, all vendor
contracts, all warranty and service contracts and documentation, rights and authorizations and all
rights associated therewith;

(c) All copyrights, patents, trademarks, trade names, service names, service marks, trade secrets,
know-how, processes, methods and procedures used in or otherwise associated with the Business and
all rights and good will associated therewith, including without limitation (i) all telephone
numbers (including without limitation all 1-800, 1-866, 1-877 and 1-888 numbers); and (ii) the
Intellectual Property set forth on Schedule 3.12 attached hereto and all other patentable material,
patent applications and issued patents, copyrightable material, copyright applications and issued
copyright registrations, and all electronic and magnetic media and other documents with respect
thereto, whether finished or work-in-process, and all documentation with respect thereto, and all
other intellectual property materials related to the Business; and all other intellectual property
rights associated with the Business (collectively, the “Company IP”);but not the content of
Company’s web site pages, sub-pages and IP addresses;

(d) To the extent assignable and subject to applicable regulatory approvals, each of the Company’s
valid authorizations, permits and licenses necessary to operate the Business;

(e) If requested by Purchaser, copies of all of the Company’s books, records and financial records
(whether in hard copy or computer format) relating to the Business and the Purchased Assets
purchased hereunder; and

(f) Any and all other intangible assets of whatever type or description, including those intangible
assets that are (i) reflected in the balance sheet contained in the July 31, 2004 , financial
statements described in Section 3.7 below, or (ii) used or useful in the operation of the Business,
except to the extent such assets have been disposed of in the ordinary course of business since the
date of such balance sheet or include any Excluded Liabilities;

(g) All insurance policies, insurance proceeds, except the possible insurance proceeds from the
theft of computer hardware, and bank accounts of the Company as of the Closing Date and all
accounts receivable of the Company that were invoiced prior to the Closing Date or which relate to
orders in process prior to the Closing Date, including, but

2

 

not limited to marketing funds, rebates, agent fees, “big deal” fees, “select” fees, and the like.;
and

(h) The Tangible Assets listed on Schedule 1.1(h) attached hereto, but excluding the items
specified therein.

1.2 Purchase Price and Use; . (a) The aggregate initial purchase price to be paid for the
Purchased Assets (the _Purchase Price_) to the Company shall be equal to the sum of: (x) $447,592
for intangible assets; and (y) $57,416 for the tangible fixed assets and (z) $87,997 for the cash
balances and (zz) $451,226 for the Accounts Receivable described on Schedule 1.1(g); attached
hereto, to be paid as follows: (I) the sum of $1,044,231 (h) attached hereto shall be paid in cash
by bank cashiers check or certified check or by wire transfer to the Company at the Closing (as
defined in Section 2.1 below); provided, however, that Seller is required to immediately use such
portion of the cash component of the Purchase Price received at Closing as is necessary to purchase
in full all indebtedness owed to (i) Albina Bank; and (ii) that portion of the indebtedness to
Ingram Micro with regard to the Ingram Trade Account, but not the Ingram Select account, (iii)
those items listed on Schedule 1.2(iii) (all of which items may, at Purchaser’s option, be paid
directly by Purchaser out of the cash component of the Purchase Price to be paid to Seller at
Closing, as contemplated pursuant to Section 2.3(vii) below, with the remainder, if any, paid to
Seller). The items listed on Schedule 1.2(iii) may be paid by Purchaser to Purchaser’s attorney’s
trust account for disbursement in accord with said schedule. Company shall also deliver to
Purchaser lien releases or other documentation acceptable to Purchaser to cause the release by each
of such unsecured or other secured creditors of all claims, obligations, liens, encumbrances and
security interests of each of such unsecured or secured creditors against any of the Purchased
Assets or any other liability, subject to the exceptions described above.

1.3 Assumed Contracts. Purchaser shall assume on the Closing Date, in respect of liabilities of
the Company, only (i) the performance of the obligations of the Company under those contracts,
documents and agreements identified on Schedule 1.3 attached hereto (the “Assumed Contracts”)
(subject to obtaining the prior written consent to such assumption by the third parties to such
contracts and agreements, if required), except to the extent any such obligations are in default
that has occurred as of or is continuing on the Closing Date, and (ii) the performance obligations
of the Company with respect to deferred revenue balances which represent retainers paid by
customers on current service revenue engagements (but only those with respect to Purchased Assets)
identified on Schedule 1.3 attached hereto.

1.4 Excluded Liabilities. Except as specifically set forth in Section 1.4, Seller retains, and
Purchaser shall not assume, any Liabilities (as defined in Section 3.8 below) directly or
indirectly arising out of or related to the Business or the Purchased Assets (the “Excluded
Liabilities”), including, but not limited to, (i) the items listed on Schedule 1.4

3

 

attached hereto, (ii) any Liabilities that are not disclosed to Purchaser on the schedules hereto,
and (iii) any failure by the Company to collect any and all sales, use and other similar taxes
incurred as a result of the Company’s operation of the Business or ownership of the Purchased
Assets prior to the Closing Date and/or pay such sales, use and other similar taxes to the
appropriate tax depositories or collecting authorities when due, or withhold or collect from each
payment to each of the Company’s employees prior to the Closing Date the amount of all taxes
required to be withheld or collected therefrom and/or pay such taxes to the appropriate tax
depositories or collecting authorities when due.

1.5 Allocation; Cooperation with Respect to Tax and Legal Impact. The allocation of the Purchase
Price shall be as follows: (1) intangible assets $447,591 and (2) other Tangible Assets $596,640
as set forth on Schedule 1.1 (g) ; .for a total of $1,044,231 The allocation of the Purchase Price
shall comply with the requirements of Section 1060 of the Internal Revenue Code of 1986, as amended
(the “Code”). Purchaser and the Company each agrees to file IRS Form 8594, and all federal, state,
local and foreign tax returns and filings, in accordance with the allocation set forth on Schedule
1.1(h). Without in any way limiting the foregoing and subject to the requirements of applicable
law, Purchaser and the Company agree to otherwise cooperate in good faith to mitigate income tax
consequences and negative legal consequences to the parties arising from the consummation of this
transaction, provided that there is no impact to the Purchase Price or adverse impact on any of the
parties.

1.6 Consulting Agreement with Casey Daly. Purchaser requests Casey Daly to provide consulting
services to Purchaser for a period of a month from the Closing Date. Purchaser will pay Daly
$15,333 for said month. He is to be paid an additional $15,333 at the end of the month but only if
he performs his duties in a reasonably acceptable manner and only if he remains available for the
entire month. . Additionally, Casey Daly agrees not to compete with Purchaser for a period of
twenty-six months of the Closing Date, within 50 miles of any former customer of Company or of any
customer of Purchaser, and agrees to execute the form attached hereto as Exhibit 1.6 and agrees to
pay to Purchaser any amounts received by him under this paragraph 1.6 in the event any provision of
said non-compete agreement is found to be invalid or unenforceable. Daly also agrees not to
voluntarily cooperate with any party asserting any claim or allegation, including, but not limited
to, any allegation of insolvency, against Company or its agents, employees, consultants and
attorneys and against Purchaser or its agents, employees, consultants and attorneys.

1.7 Non-Competition of Marcee Daly. In consideration of the release of Marcee Daly from certain
guarantee obligations, Ms. Daly agrees not to compete with Purchaser for a period of two years of
the Closing Date within 50 miles of any former customer of Company or any customer of Purchaser,
and agrees to execute the form attached hereto as Exhibit 1.7 and agrees to pay to Purchaser the
value of the release of guarantee obligations in the event any provision of said non-compete
agreement is found to be invalid or unenforceable. Ms. Daly also agrees not to voluntarily
cooperate with any

4

 

party asserting any claim or allegation, including, but not limited to, any allegation of
insolvency, against Company or its agents, employees, consultants and attorneys and against
Purchaser or its agents, employees, consultants and attorneys.

ARTICLE II

CLOSING

2.1 Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement will be
held on or prior to October 1, 2004 (the “Closing Date”) at 10:00 a.m. via electronic closing in
Los Angeles, California, or at such other time, date or location as the parties hereto may mutually
agree upon.

2.2 Purchaser Deliveries. At the Closing, the Purchaser shall deliver to the Company:

     (i) cash, or by cashier’s or certified check or by wire transfer to an account which the
Company has identified in writing to the Purchaser prior to the Closing Date or to the accounts
authorized in 1.2 above, an amount equal to $1,044,231;

     (ii) evidence that the persons set forth on Schedule 2.2(v) attached hereto have accepted
employment with Purchaser;

     (iii) a copy of the resolutions adopted by the Board of Directors of Purchaser (or its parent
company, En Pointe Technologies, Inc.) approving, authorizing and directing the execution of this
Agreement and the consummation of the transactions contemplated thereby, each certified by the
Chief Financial Officer of Purchaser (who is also the Chief Financial Officer of En Pointe
Technologies, Inc.) as being in full force and effect on and as of the Closing Date; and

2.3 Seller Deliveries and Actions.

(a) At the Closing, the Seller shall deliver to the Purchaser:

     (i) physical possession of all of the Purchased Assets, at such place and in such manner as
the Purchaser and the Company shall agree, except for any laptop or desktop personal computers and
related peripheral equipment that are in the personal possession of employees of Seller that will
be hired by Purchaser;

     (ii) a Non-Competition and Non-Solicitation Agreement from the Company and its
Shareholders/owners and Bruce Wood ,duly executed by the Company and its shareholders/owners, and
Bruce Wood in the form attached hereto as Exhibit 2.3(a)ii;

     (iii) the Bill of Sale, attached as Exhibit C hereto, duly executed by Seller;

5

 

     (iv) copies of all of the Company’s books, records and financial records (whether in hard copy
or computer format) relating to the Business and the Purchased Assets purchased hereunder;

     (v) any and all consents, approvals, notices, filings, terminations or recordation of third
parties required with respect to the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby or by any of the agreements, documents or instruments
referred to herein.;

     (vi) all Company IP, including all relevant documentation with respect thereto and all other
documents, electronic and magnetic media and other materials with respect thereto, whether finished
or work-in-process;

     (vii) evidence satisfactory to Purchaser that the liens, encumbrances and security interests
of each of (i) Albina Bank; (ii) Ingram Micro, and (iii) any other secured creditors with respect
to any of the Purchased Assets evidenced by UCC Financing Statements filed in any and all
jurisdictions, together with any security agreements and other documents and instruments related
thereto, and all indebtedness, obligations and liabilities of any kind or nature whatsoever
associated with such liens, encumbrances and security interests and such security agreements and
other documents and instruments related thereto are fully and forever either assigned to Purchaser
or released and terminated (which evidence at Closing shall include, at a minimum, irrevocable
letters of direction entered into by Seller with such lien holders delivered to Purchaser in which
wire transfer information and pay-off amounts for such lien holders and confirmation of assignment
or release of liens upon receipt of pay-off amount by such lien holders is indicated in order to
permit Purchaser to pay directly to such lien holders a portion of the cash component of the
Purchase Price at Closing, except to the extent that any of such lien holders has already delivered
proper documentation evidencing a full release of its liens, encumbrances and security interests at
or prior to the Closing Date), except that the security interest of Ingram Micro in the “Select”
receivables will not be released at closing;

     (viii) evidence satisfactory to Purchaser that the persons set forth on Schedule 2.2(v)
attached hereto have been properly terminated by Seller and delivery of letters (in form and
substance mutually agreed upon by Purchaser) ) from each of the each of the persons listed on said
Schedule 2.2(v) indicating that he or she is aware of this acquisition transaction and intends to
become employed by the Purchaser upon consummation of the Closing and which letters includes those
sales and service personnel of Seller who are collectively responsible for at least ninety percent
(90%) (by revenue) of the existing customers of the Company based on sales of the Company for the
twelve (12) months ended July 31, 2004, The letters must also include a statement that all sums
owed to the persons by the Company have been paid in full.

6

 

     (ix) evidence satisfactory to Purchaser that any and all remaining payments with respect to
any and all lease agreements, understandings or commitments pertaining to any of the Purchased
Assets (including without limitation those listed on Schedule 3.11 hereto) have been made by Seller
and that the purchase price therefore has been paid in full by Seller (other than with respect to
any real property lease).

     (x) a copy of the Articles of Incorporation, as amended, and Bylaws of the Company, as
amended, and the resolutions adopted by the Board of Directors of the Company approving,
authorizing and directing the execution of this Agreement and the consummation of the transactions
contemplated thereby, each certified by the Secretary of the Company as being in full force and
effect on and as of the Closing Date;

     (xi) evidence satisfactory to Purchaser that all of the shareholders of the Company have
approved the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby;

     (xii) a certificate of each of the Secretaries of States of Oregon, Idaho, and Washington to
the effect that the Company is a validly existing corporation in good standing and duly qualified
to do business under the laws of the States of Oregon, Idaho, and Washington;

     (xiii) a copy of the duly executed Mutual Release Agreement between Viablelinks, Inc. and 3
MD Technologies, Inc.

     (xiv) a copy of the duly executed Release Agreement between Viablelinks, Inc., En Pointe
Technologies, Inc and En Pointe Technologies Sales, Inc.,

(b) Simultaneously with such deliveries, the Company shall take such other steps and actions as may
be necessary to put the Purchaser in actual possession and operating control of the Purchased
Assets the Company IP and the Business, as may be reasonably requested by Purchaser.

2.4 Further Assurances. From time to time after the Closing, and without further consideration,
the Company shall execute and deliver such other instruments of conveyance, assignment, transfer
and delivery, and take such other actions as the Purchaser may reasonably request in order more
effectively to transfer to the Purchaser, and to place the Purchaser in possession or control of,
the Purchased Assets, including without limitation the Company IP, intended to be transferred
hereunder, to reasonably assist in the collection of any and all such Purchased Assets and all
rights associated therewith, and to enable the Purchaser to exercise and enjoy all of the rights
and benefits with respect thereto.

7

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company and each of Casey Daly, Marcee Daly and Tom Scoggin hereby represents and warrants to
the Purchaser that the following representations and warranties are true and correct on and as of
the date hereof:

3.1 Corporate Existence. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the States of Oregon, Idaho, and Washington and has full corporate power
and authority to conduct its business as it is now being conducted and to own or lease all of its
properties and assets. The Company acknowledges that it is not qualified to do business in the
State of Texas. The Company is not required to be qualified or licensed to do business as a foreign
corporation in any other jurisdiction where the ownership of its property or assets or the conduct
or nature of the Business would require such qualification or license, except where the failure to
so qualify will not result in a material adverse effect on the Business or the Company’s financial
condition. The Company has previously delivered to Purchaser true and complete copies of its
Articles of Incorporation, as amended, and Bylaws, as amended, as in effect on the date hereof.

3.2 Capitalization; Share Ownership. The authorized capital stock of the Company consists solely of
1,000,000 shares of Common Stock, with par value of zero, of which 600,000 shares are currently
issued and outstanding, all of which shares are owned of record and beneficially by Marcee Daly
(200,000 shares), Casey Daly (200,000 shares) and Thomas Scoggin (200,000 shares), which shares
constitute all of the issued and outstanding capital stock of the Company. All of such shares are
validly issued, fully paid and nonassessable, and such shares have been so issued in material
compliance with all federal and applicable state securities laws. Except as set forth on Schedule
3.2, there are no outstanding subscriptions, options, rights, warrants, convertible securities or
other agreements or commitments obligating the Company to issue or to transfer from treasury any
additional shares of its capital stock of any class. Except as set forth on Schedule 3.2, there are
no outstanding stock appreciation rights or any similar rights entitling any person to any payment
based on the value of the Company or its capital stock. Except as set forth on Schedule 3.2, no
other entity or person has any right, title or interest, beneficially or of record, in or to any
securities of the Company.

3.3 Authority. The Company has full power and authority to enter into this Agreement and the other
agreements referred to herein to which it is a party (collectively, the “Related Agreements”), to
perform its obligations hereunder and thereunder and to carry out the transactions contemplated
hereby and thereby. The execution and delivery of this Agreement and the Related Agreements, the
performance by the Company of its obligations hereunder and thereunder and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by all corporate,
shareholder and other actions on the part of the Company required by applicable law, the Company’s
Articles of Incorporation, as amended, or Bylaws, as amended, or otherwise. This

8

 

Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against
it in accordance with its terms, except (i) as the same may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws now or hereafter in effect relating to creditors’ rights
generally and (ii) that the remedy of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the discretion of the court before
which any proceeding therefore may be brought.

3.4 No Violation. Neither the execution and delivery of this Agreement nor the performance by the
Company of its obligations hereunder or under any of the Related Agreements nor the consummation of
the transactions contemplated hereby will (a) contravene any provision of the Articles of
Incorporation or Bylaws of the Company; (b) violate, be in conflict with, constitute a default
under, permit the termination of, cause the acceleration of the maturity of any debt or obligation
of the Company under, require (except as disclosed on Schedule 3.5 hereto) the consent of any other
party to, constitute a breach of, create a loss of a material benefit under, or result in the
creation or imposition of any Lien, upon any property or assets of the Company under, any mortgage,
indenture, lease, contract, agreement, instrument or commitment to which the Company is a party or
by which it or any of its assets or properties may be bound; (c) to the knowledge of the Company,
after due inquiry and reasonable investigation, violate any statute or law or any judgment, decree,
order, regulation or rule of any court or governmental authority to which the Company or the
Business is subject or by which the Company or any of its assets or properties are bound; or (d)
create a claim of diversion of corporate opportunity against any director of the Company that could
reasonably be expected to have a material adverse effect on the Company or the Business.

3.5 Consents and Approvals. Except as set forth on Schedule 3.5 hereto, no consent, approval or
authorization of, or declaration, filing or registration with, any governmental or regulatory
authority or any other third party is required to be made or obtained by the Company in connection
with the execution, delivery or performance of this Agreement or any of the Related Agreements by
the Company.

3.6 Subsidiaries. Except as set forth on Schedule 3.6 hereto, the Company does not own, either
directly or indirectly, any interest or investment (whether equity or debt) in any corporation,
partnership, limited liability company, business, trust, or other entity.

3.7 Financial Statements. The Company has delivered to the Purchaser the unaudited balance sheet
of the Company as of July 31, 2004 and the related statements of revenues, profit and loss and
Gross Profit Dollars for the month and seven (7) months then ended, and the unaudited balance
sheets of the Company as of December 31, 2003 and 2002 and the related statements of revenues,
profit and loss and Gross Profit Dollars for the fiscal years of Seller then ended, and the
preliminary unaudited balance sheet of the Company as of August 31, 2004 and the related statements
of revenues, profit and loss and Gross Profit Dollars, all of which have been internally prepared
or compiled by an outside accounting firm reasonably acceptable to Purchaser (all such financial
statements are hereinafter collectively referred to as the “Financial Statements”). The Financial

9

 

Statements (i) were prepared or compiled from the books and records of the Company regularly
maintained by management and used to prepare the financial statements of the Company.

3.8 No Undisclosed Liabilities. To Seller’s knowledge, the Company has, and on the Closing Date
will have, no debts, liabilities, commitments or obligations of any nature, absolute, accrued,
contingent or otherwise (individually, a “Liability” and, collectively, the “Liabilities”), other
than those which (a) are fully reflected and reserved against in the Financial Statements, (b) have
been incurred since July 31, 2004 in the ordinary course of business in amounts and for terms
consistent, individually and in the aggregate, with the past practice of the Company or (c) have
been specifically disclosed in the schedules hereto by reference to the specific section of this
Agreement to which such disclosure relates.

3.9 Absence of Certain Changes. Except as set forth on Schedule 3.9, since July 31, 2004, the
Company has conducted the Business only in the ordinary course and consistent with prior practice
in all material respects and the Company has not:

(a) suffered any material adverse change in its condition (financial or otherwise), results of
operations, assets, liabilities, reserves, the Business, operations or prospects;

(b) suffered any material damage, destruction or loss, whether covered by insurance or not,
materially adversely affecting its Business, operations, assets, prospects or condition (financial
or otherwise);

(c) paid, discharged or satisfied any material Liability or other expenses, other than the payment,
discharge or satisfaction of the Liabilities described in Section 3.8 in the ordinary course of
business;

(d) paid or otherwise made any contribution to any profit-sharing or pension plan or other Employee
Benefit Plan (as defined in Section 3.17 below), except as may be required by the Company’s 401(k)
pension and profit sharing plan consistent with past practices and procedures;

(e) mortgaged or pledged, or permitted the imposition of any Lien upon, any of its properties or
assets (real, personal or mixed, tangible or intangible), other than those incurred in the ordinary
course of business or otherwise listed on Schedule 3.10 hereto;

(f) other than in the ordinary course of business, cancelled or compromised any debts, or waived or
permitted to lapse any material claims or rights, or sold, assigned, transferred or otherwise
disposed of, any material properties or assets (real, personal or mixed, tangible or intangible);

(g) disposed of or permitted to lapse any rights to the use of any patent, registered trademark,
service mark, trade name or copyright, or disposed of or disclosed to any

10

 

person any trade secret, formula, process or know-how material to the Business not theretofore a
matter of public knowledge;

(h) except as disclosed on Schedule 3.9 or in the ordinary course of business, granted any increase
in the compensation of any officer, employee or consultant of the Company (including any such
increase pursuant to any bonus, pension, profit-sharing or other plan or commitment) or any
increase in the compensation payable or to become payable to any officer, employee or consultant;

(i) entered into any commitment or transaction not in the ordinary course of business or made any
capital expenditure or commitment for any additions to property, plant or equipment, except
commitments, transactions or capital expenditures which do not in any single case exceed $25,000;

(j) made any meaningful change in any method of accounting or accounting practice (including,
without limitation, any change in depreciation or amortization policies or rates);

(k) paid, loaned or advanced any amount to, or sold, transferred or leased any properties or assets
(real, personal or mixed, tangible or intangible) to, or entered into any agreement or arrangement
with, any of its officers, directors, employees, shareholders, or any family member or Affiliate
(as defined in Section 3.24 below) of any of its officers, directors, employees or shareholders, or
any officer, director, employee or shareholder of any such Affiliate;

(l) incurred any material property losses or waived any material rights of value;

(m) declared, set aside, paid or made any dividend or other distribution or payment in respect of
the capital stock of the Company, or any direct or indirect redemption, purchase or other
acquisition of any of its shares of capital stock;

(n) suffered the loss of, or been threatened with the loss of, any material supplier or material
customer or group of related suppliers or customers referred to in Section 3.16;

(o) knowingly waived or released any material right or claim of the Company;

(p) amended or terminated any contract, agreement or license to which the Company is a party,
except in the ordinary course of business or except as otherwise expressly required or contemplated
hereby;

(q) received a commencement notice or, to the knowledge of the Company, received any threat of
commencement of any civil or criminal litigation, investigation or proceeding against the Company;

(r) to the knowledge of the Company, received any claim of wrongful discharge or workers
compensation claim or any material claim under COBRA;

11

 

(s) issued or sold any shares of its capital stock or any class or any other securities of any
kind, or granted any options, warrants or other rights to acquire any shares of its capital stock
or any other securities of any kind (except as otherwise set forth on Schedule 3.2 hereto);

(t) except as set forth on Schedule 3.2 hereto, made any dividend or any distribution of any kind
to any of the shareholders of the Company (including, without limitation, any distribution of cash,
assets, property or shares of capital stock of the Company);

(u) agreed, whether in writing or otherwise, to take any action referred to in and prohibited by
this Section 3.9; or

(v) to the knowledge of the Company, become aware of any other event or condition that has had a
material adverse effect on the condition (financial or otherwise), results of operations, assets,
liabilities, reserves, its Business, the Company IP or the operations or prospects of the Company.

3.10 Title to Properties; Encumbrances.

(a) The Company has good and marketable title to all of the Purchased Assets, free and clear of all
Liens, except (i) Liens for taxes not yet due and payable, (ii) Liens for purchase money security
interests, and (iii) the Liens set forth on Schedule 3.10 attached hereto, none of which (other
than the Liens set forth on Schedule 3.10 attached hereto, which will be terminated at the Closing)
adversely affects the Business or the continued operations of the Company.

(b) All material property (real, personal or mixed, tangible or intangible) used or required by the
Company in the conduct of the Business (including, without limitation, the Company IP) are owned,
leased or licensed by the Company.

(c) The Company does not own or hold, and is not obligated under or a party to, any option, right
of first refusal or other contractual right to acquire any real property or interest therein.

(d) When used in this Agreement, “Lien” or “Liens” shall mean any mortgage, pledge, security
interest, conditional sale or other title retention agreement, encumbrance, lien, easement, claim,
right, covenant, restriction, right of way, warrant, option or charge of any kind.

3.11 Leases.

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(a) Schedule 3.11 contains a true and complete list of all leases pursuant to which the Company
leases or subleases any real property or any vehicles, equipment or personal property that
constitutes a part of the Purchased Assets.

(b) Each such lease described on Schedule 3.11 is the legal, valid and binding obligation of the
Company and, to the best knowledge of the Company, after due inquiry and reasonable investigation,
the other parties thereto, enforceable in accordance with their respective terms, and is in full
force and effect. The Company is not in default under any such lease, and the Company has not
received any notice from any person or entity asserting that the Company is in default under any
such lease, and no events or circumstances exist which, with notice or the passage of time or both,
would constitute a default under any such lease.

(c) None of such leases described on Schedule 3.11 shall be transferred to the Purchaser. At or
prior to the Closing, Seller shall make any and all remaining payments with respect to any and all
such personal property leases as are transferred . No leases pursuant to which the Company leases
or subleases any real property are being transferred).

3.12 Patents, Trademarks, Service Marks, Trade Names. The Company owns, or is licensed or
otherwise has the full right to use, all intellectual property rights, both registered and at
common law, relating to the Business (including, without limitation, with respect to the Company
IP), irrespective of where any of the same were issued, whether pending or existing (collectively,
the “Intellectual Property”), and set forth on Schedule 3.12, including, without limitation, all:
United States and foreign patents or any description and applications therefore; registrations of
trademarks, service marks and of other marks, registrations of trade names, labels, logos, trading
styles or other trade rights, registered user entries, and applications for any such registrations
or entries; United States and foreign copyrights, copyright registrations and applications
therefore; United States and foreign trademarks and other marks, trade names, labels and other
trade rights, whether or not registered, and applications therefore; trade secrets, know-how,
inventions, discoveries, improvements, engineering or other drawings, designs, processes and
formulae, whether patented or patentable or not; customer lists, technical data, marketing
information and plans, software and software documentation source codes; URL addresses and all
other Internet and World Wide Web addresses and designations issued or granted to the Company by
Network Solutions, Inc. and any other appropriate foreign, federal, state or local entity,
authority or agency; any other proprietary information or intangible rights related in any way to
the Business (including, without limitation, with respect to the Company IP); shop rights, license
agreements and other agreements relating in whole or in part to any of the foregoing; and all
claims and causes of action on behalf of the Company or against third parties relating to any of
the foregoing, including claims and causes of action for past infringement of the Intellectual
Property. Schedule 3.12 contains a true and complete list of (a) the material Intellectual Property
used by the Company in connection with the conduct of the Business, all

13

 

applications therefore and all licenses and other agreements relating thereto and (b) all
agreements relating to technology, know-how or processes which the Company is licensed or
authorized to use by others or which the Company licenses or authorizes others to use in connection
with the conduct of the Business. The Company has the sole and exclusive right to use the patents,
trademarks, service marks, trade names, copyrights, technology, know-how and processes described on
Schedule 3.12, and except as disclosed on Schedule 3.12 or Schedule 3.5, no consent of any third
party is required for the use of the Intellectual Property by the Purchaser upon the consummation
of the transactions contemplated hereby or, if any such consent shall be necessary, such consent
shall have been obtained prior to the Closing Date.

Except as set forth on Schedule 3.12, no claims have been asserted by any person to the use any of
the items of Intellectual Property or challenging or questioning the validity or effectiveness of
any such license or agreement, and the Company knows of no valid basis for any such claims. Except
as set forth on Schedule 3.12, the Company has no notice that the use of the Intellectual Property
by the Company infringes on the rights of any other person or entity. Each item of Intellectual
Property owned by the Company is, if registered, filed or issued, then duly and properly
registered, filed or issued in the appropriate office and jurisdiction for such registration,
filings or issuance. Each license, contract or other agreement to which the Company is a party
pertaining to any item of Intellectual Property owned, used or available for use by the Company in
the conduct of the Business is in full force and effect. With respect to each such license,
contract or other agreement to which the Company is a party, there is no payment past due and not
paid and no default (or event which, with or without notice, lapse of time or both, would
constitute a default) by any party thereto.

All of the Intellectual Property developed or solely and exclusively owned by the Company was
developed solely and exclusively by employees of the Company and under the direction and
supervision of Company personnel, provided, that if any of such Intellectual Property was developed
by any person other than an employee of the Company, such person has executed and delivered to the
Company an agreement in writing pursuant to which such person has transferred to the Company all of
the rights, title and interest such person has or may have in such Intellectual Property and a copy
of such written agreement will be made available to Purchaser upon request.

3.13 Litigation. Except as disclosed on Schedule 3.13 there are no actions, claims or proceedings
to which the Company is a party (individually, an “Action” and, collectively, “Actions”),
including, without limitation, Actions for personal injury, products liability, wrongful death or
other tortious conduct, or breach of warranty arising from or relating to materials, commodities,
products or goods used, transferred, processed, manufactured, sold, distributed or shipped by the
Company (a) involving or relating to the Company, or any its assets, properties or rights, or (b)
pending, or, to the Company’s knowledge, threatened, against the Company, or any of its assets,
properties or rights, before any court, arbitrator or administrative or governmental body. There is
no Action pending, or, to the Company’s knowledge, threatened, against the Company, or any of its
assets,

14

 

properties or rights, before any court, arbitrator or administrative or governmental body, which
questions or challenges the validity of this Agreement or any Action taken or proposed to be taken
by the Company pursuant to this Agreement or in connection with the transactions contemplated
hereby. To the Company’s knowledge, no state of facts exists or has existed which would reasonably
be expected to constitute grounds for the institution of any Action against the Company or against
any assets, properties or rights of the Company which would adversely affect the Business or the
Company. The Company is not subject to any judgment, order or decree entered in any lawsuit or
proceeding which has affected, or which can reasonably be expected to affect, the Company’s
business practices or its ability to acquire any property or conduct the Business in any way.

3.14 Insurance. Schedule 3.14 sets forth a true and complete list and description of (a) all of
the Company’s self-insurance practices and items covered by such self-insurance and (b) all
policies of fire, liability, worker’s compensation and other forms of insurance owned or held by
the Company. No installment premiums are due under the policies set forth on Schedule 3.14 or, if
installment premiums shall be due and owing under such policies prior to the Closing Date, such
premiums shall have been paid prior to the Closing Date. All such policies are in full force and
effect, insure against risks and liabilities to the extent and in the manner deemed appropriate and
sufficient by the Company in its reasonable business judgment, and will remain in full force and
effect through the Closing Date, and the Company has not received any notice of cancellation with
respect thereto. To the Company’s knowledge, the Company is not in default with respect to any
provision contained in any such policy and has not failed to give any notice or present any claim
under any such policy in due and timely fashion.

3.15 Contracts and Commitments.

(a) The Company has made available to Purchaser true and complete copies of all of the Assumed
Contracts and shall deliver true and complete copies of all such other agreements, instruments and
documents as the Purchaser may reasonably request relating to the operation, ownership or conduct
of the Business.

(b) The Company is not a party to any written agreement that would restrict it from carrying on the
Business anywhere in the world.

(c) The Company is not a party to any “take-or-pay” contracts.

(d) Except as set forth on Schedule 3.15, the Company is not a party to any employment agreements,
arrangements and commitments, including severance or termination arrangements and commitments
(whether written or oral), between the Company and any employee of the Company.

(e) Each of the Assumed Contracts has been entered into in the ordinary course of business and
is valid and binding, and none of such contracts contains terms or conditions which are materially
adverse to the Company. The Company is not, and no other party

15

 

is, in default under or in breach or violation of, nor has the Company received notice of any
asserted claim of default by the Company or by any other party under, or a breach or violation of,
any of the Assumed Contracts.

(f) The Company acknowledges that it is in the final stages of fulfilling its obligations under
service/product contracts with Regence and Standard, two of its major customers, and any disruption
in the performance of these contract will cause severe damage to the relationship with this
customer. These customers are significant to the Company and Purchaser has relied upon the Company
‘ s assurances that these contracts will be fulfilled and all costs associated with the contract
will be paid in a timely manner.

3.16 Suppliers and Customers.

(a) Except as set forth in Schedule 3.16, the Company has no knowledge that any supplier or
customer or group of related suppliers or customers of the Company has canceled or otherwise
terminated or threatened to cancel or otherwise terminate, its relationship with the Company, which
termination would have a material adverse effect on the Business or the Company, or has during the
last twelve (12) months decreased materially, or threatened to decrease or limit materially, its
services, supplies or materials to the Company or its usage or purchase of the services or products
of the Company, as the case may be, or that any such supplier or customer or group of related
suppliers or customers expects to reduce its business with the Company by reason of the
transactions contemplated by this Agreement or for any other reason whatsoever.

(b) Except as set forth in Schedule 3.24, no officer, director or employee of the Company, nor any
spouse or child or any of the foregoing persons, has any direct or indirect interest in any
competitor, supplier or customer of the Company or in any person from whom or to whom the Company
leases any real or personal property, or in any other person with whom the Company is doing
business.

3.17 Employee Benefit Plans.

(a) Schedule 3.17 contains a true and complete list and description of, and the Company has made
available to the Purchaser true and complete copies of, each pension, retirement, severance,
welfare, profit-sharing, vacation, deferred compensation, bonus or other incentive plan, or other
employee benefit program, arrangement, agreement or understanding, or medical, vision, dental or
other health plan, or life insurance or disability plan, retiree medical or life insurance plan or
any other employee benefit plans, including, without limitation, any “employee benefit plan” (as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)), to which the Company contributes or is a party or by which it is bound or under which
it may have liability and under which employees or former employees of the Company (or their
beneficiaries) are eligible to participate or derive a benefit. Each employee benefit

16

 

plan which is a “group health plan” (as such term is defined in Section 5000(b)(i) of the Code)
satisfies the applicable requirements of Section 4980B of the Code. Except as described on
Schedule 3.17, the Company has no formal plan or commitment, whether legally binding or not, to
create any additional plan, practice or agreement or modify or change any existing plan, practice
or agreement that would affect any of its employees or terminated employees. Benefits under all
employee benefit plans are as represented and have not been and will not be increased outside the
ordinary course of business subsequent to the date copies of such plans have been provided.

(b) The Company does not contribute to or have any obligation to contribute to, has not at any time
contributed to or had an obligation to contribute to, sponsor or maintain, and has not at any time
sponsored or maintained, a “multi-employer plan” (within the meaning of Section 3(37) of ERISA) for
the benefit of employees or former employees of the Company.

(c) The Company has, in all material respects, performed all obligations, whether arising by
operation of law, contract, or past custom, required to be performed under or in connection with
the employee benefit plans disclosed on Schedule 3.17 (individually, an “Employee Benefit Plan”
and, collectively, the “Employees Benefit Plans”), and the Company has no knowledge of any default
or violation by any other party with respect thereto.

(d) There are no Actions, suits or claims (other than routine claims for benefits) pending, or, to
the best of the Company’s knowledge, after due inquiry and diligent investigation, threatened,
against any Employee Benefit Plan or against the assets funding any Employee Benefit Plan.

(e) The Company neither maintains nor contributes to any “employee welfare benefit” (as such term
is defined in Section 3(i) of ERISA) plan which provides any benefits to retirees or former
employees of the Company.

(f) The Company has made available to the Purchaser and its counsel true and complete copies, if
applicable, of (i) all documents governing the Employee Benefit Plans, including, without
limitation, all amendments thereto which will become effective at a later date; (ii) all summary
plan descriptions and each summary of material modifications relating to the Employee Benefit
Plans; (iii) all employment manuals; and (iv) all insurance policies or contracts with respect to
the Employee Benefit Plans.

3.18 Employment Law Matters.

(a) The Company (i) is in compliance in all material respects with all applicable laws respecting
employment, employment practices, terms and conditions of employment and wages and hours; (ii) is
in compliance in all material respects with all applicable laws and regulations relating to the
employment of aliens or similar immigration matters; and (iii)

17

 

is not engaged in any unfair labor practice, including, but not limited to, discrimination or
wrongful discharge.

(b) The Company has not at anytime during the last three (3) years had, nor to the Company’s
knowledge, is there now threatened, a strike, picket, work stoppage, work slowdown or other labor
trouble, against or directly affecting the Company that had or may have a material adverse effect
on the Business or the Company.

(c) None of the employees of the Company is represented by a labor union, and no petition has been
filed or proceedings instituted by any employee or group of employees with any labor relations
board seeking recognition of a bargaining representative. The Company is not a party to any
multi-employer collective bargaining agreement covering any of its employees.

(d) There are no controversies or disputes (including any union grievances or arbitration
proceeding) pending, or, to the Company’s knowledge, threatened, between the Company and any
employees of the Company (or any union or other representative of such employees). No unfair labor
practice complaints have been filed and are pending against the Company with the National Labor
Relations Board or any other governmental or administrative body, and the Company has not received
any written notice or communication reflecting an intention or a threat to file any such complaint.

3.19 Environmental Matters. The Company is in compliance in all material respects with all
federal, state and local environmental laws, rules, regulations, standards and requirements,
including, without limitation, those respecting hazardous materials and substances (including,
without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, as
amended, 42 U.S.C. sec. 9601, et. seq.; the Resource Conservation and Recovery Act, as amended, 42
U.S.C. sec. 6901. et. seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. sec.
1251, et. seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. sec. 9601, et. seq.; the
Emergency Planning and Community Right to Know Act, 42 U.S.C. sec. 11001, et. seq.; the Safe
Drinking Water Act, 42 U.S.C. sec. 300f, et. seq.; the Solid Waste Disposal Act, as amended; and
all comparable state and local laws; and any common law (including without limitation common law
that may impose strict liability) that may impose liability or obligations for injuries or damages
to, or threatened as a result of, the present of or exposure to any hazardous materials or
substances) (collectively, “Environmental Laws”). There is no Action pending before any court,
governmental agency or board or other forum or threatened by any person or entity (i) for
noncompliance by the Company with any Environmental Law, or (ii) relating to the release into the
environment by the Company of any pollutant, toxic or hazardous material or waste generated by the
Company, whether or not occurring at or on a site owned, leased or operated by the Company. To the
Company’s knowledge, there has been no spill, discharge, leak, emission, injection, disposal,
escape, dumping or release of any kind on, beneath or above the facilities occupied or used by or
leased to the Company (the “Property”) or into

18

 

the environment surrounding such Property of any hazardous materials or substances in violation of
any Environmental Law or requiring any remedial action. The Company has all permits, registrations,
approvals and licenses required by any governmental agency under any Environmental Law to be
obtained by the Company in connection with the conduct of the Business of the Company as presently
conducted.

3.20 Compliance with Laws. The Company has not been charged with, and, to the Company’s knowledge,
after due inquiry and reasonable investigation, the Company is not threatened with or under any
investigation with respect to, any charge concerning any violation of any provision of any federal,
state, local or foreign law, regulation, ordinance, order or administrative ruling affecting the
Business or the Company, and the Company is not in default with respect to any order, writ,
injunction or decree of any court, agency or instrumentality affecting the Business or the Company.
The Company (a) is not in violation in any material respect of any federal, state, local or foreign
law, ordinance or regulation or any other requirement of any governmental or regulatory body, court
or arbitrator applicable to the Business or the Company, or (b) would not, to the Company ‘s
knowledge, after due inquiry and reasonable investigation, be in violation in any material respect
of any such law, ordinance, regulation or other requirement that has been enacted or adopted but is
not yet effective if it were effective at the date hereof. The Company has not made any illegal
payment to officers or employees of any governmental or regulatory body or made any payment to
customers of the Company for the sharing of fees or to customers or suppliers of the Company for
the rebating of charges, or engaged in any other similar reciprocal practices, or made any illegal
payment or given any other illegal consideration to purchasing agents or other representatives of
customers of the Company in respect of sales made or to be made by the Company. Without limiting
the generality of the foregoing, the Company is in compliance in all material respects with the
Export Administration Act (50 U.S.C. sections 2401-2420 (1979)) and the Foreign Corrupt Practices
Act of 1977, and all respective rules and regulations promulgated thereunder. Without limiting the
generality of the foregoing, the Company is in compliance in all material respects with all rules
and regulations promulgated by the Occupational Safety and Health Administration (“OSHA”). The
Company has previously made available to the Purchaser a true and complete copy of the Company’s
most recent inspection report or reports, if any, relating to compliance with OSHA rules and
regulations.

3.21 Licenses, Permits and Authorizations. The Company has all material licenses, permits,
authorizations, approvals, consents, franchises and orders required for the conduct and operation
of its business as presently conducted (individually, a “Permit” and, collectively, the “Permits”)
and the use and ownership or leasing of its properties and assets as currently operated, used,
owned or leased. All of the Permits are valid, in full force and effect and in good standing. No
violations have been recorded in respect of any such Permit. Schedule 3.21 contains a true and
complete list and description of all the Permits and the Company has previously made available to
the Purchaser true and complete copies of all such Permits identified in Schedule 3.21 and in
effect as of the date hereof. There is no claim or Action pending, or, to the best of the
Company’s

19

 

knowledge, threatened, which disputes the validity of any such Permit or threatens to revoke,
cancel, suspend or limit any such Permit.

3.22 Accounts Receivable. All accounts receivable of the Company shown on the July 31, 2004
Financial Statements and all accounts receivable created after July 31, 2004, up to the Closing
Date of this Agreement, including those listed on Schedule 3.22 attached hereto, are subject to
reserves created in the ordinary course of business on a basis consistent with the past practices
and policies of the Company and otherwise in accordance with generally accepted accounting
principles, (a) have been collected, or (b) are valid and arose from bona-fide sales to third
parties in the ordinary course of business, and are current and, to the knowledge of the Company,
substantially all of such accounts receivable are collectible within ninety (90) days after the
Closing Date at the aggregate recorded amounts thereof on the books of the Company and are not
subject to any counterclaims or setoffs and have not been encumbered or sold.

3.23 Property of Others. To the Company’s knowledge, no shortage exists in (a) any inventory of
raw material, work-in-process or finished goods owned by customers or suppliers of the Company and
stored upon the Company ‘s premises or otherwise, or (b) any other item of personal property owned
by another for which the Company is accountable to another.

3.24 Transactions with Affiliates. Schedule 3.24 describes all agreements and understandings to
which the Company is or has been subject which provide for or reflect the sale by the Company to,
or the purchase by the Company from, any Affiliate (as defined below) of the Company of any goods,
equipment or services. The termination of any such agreement or understanding would not have a
material adverse effect on the Business, operations, prospects or condition (financial or
otherwise) of the Company.

When used in this Agreement, “Affiliate” or “Affiliates” shall mean, with respect to any
individual, partnership, corporation, limited liability company, association, business trust, joint
venture, governmental entity or other entity of any nature (“Person”), any Person that controls, is
controlled by, or is under common control with, such Person.

3.25 Condition of Tangible Assets. The Purchased Assets, including, without limitation, inventory,
machinery, equipment, vehicles, furniture, plants and buildings, are in good operating condition
and repair (ordinary wear and tear excepted) and are adequate for the uses to which they have been
put by the Company in the ordinary course of business, except for parts or repairs of an immaterial
nature in the aggregate, and the Company has not received any notice that any of such facilities or
assets is in need of substantial maintenance or repair.

3.26 Tax Returns and Payments. All of the tax returns and reports of the Company required by law
to be filed have been duly filed and all taxes shown as due thereon have been paid. There are in
effect no waivers of the applicable statutes of limitations for any federal, state, local or
foreign taxes for any period. The provisions of this Section 3.26

20

 

shall include, without limiting the generality of this Section 3.26, all reports, returns and
payments due under all federal, state, local or foreign laws or regulations relating to income,
sales, use, payroll, franchise, withholding, real property or personal property taxes, unemployment
insurance, social security, worker’s compensation and other obligations of the same or of a similar
nature. To the Company’s knowledge, the Company does not have any liability for any federal,
state, local or foreign income, sales, use, withholding, payroll, franchise, real property or
personal property taxes, assessments, amounts, interest or penalties of any nature whatsoever other
than as shown on the July 31, 2004 Financial Statements and there is no basis for any additional
claim or assessment other than with respect to liabilities for taxes which may have accrued since
the date of the July 31, 2004 Financial Statements in the ordinary course of business and reserved
against on the books and records of the Company compiled in accordance with accounting principles
generally accepted in the United States of America which have been consistently applied to the
Closing Date. To the knowledge of the Company, the provisions for taxes reflected in the July 31,
2004 Financial Statements are adequate for federal, state, county and local taxes for the period
ended on December 31, 2003 and for all prior periods, whether disputed or undisputed. There are no
present disputes about taxes of any nature payable by the Company. The Company has never filed, and
will not file on or before the Closing Date, any consent under Section 341(f) of the Code. The
Company’s tax returns have never been audited by any taxation authority. The Company has paid to
the proper authorities all customs, duties and similar or related charges required to be paid by it
with respect to the importation or exportation of goods into or out of the United States.

3.27 Broker’s and Finder’s Fees. The Company is not a party to, or in any way obligated to make any
payment relating to, any contract or outstanding claim for the payment of any broker’s or finder’s
fee in connection with the origin, negotiation, execution or performance of this Agreement or the
consummation of the transactions contemplated hereby for which the Purchaser could become liable.

3.28 Disclosure of Confidential Information. The Company has fully disclosed, or will disclose on
or before the Closing Date, to the Purchaser, all processes, inventions, methods, formulae, plans,
drawings, customer lists, secret information and know-how (whether secret or not) known to it or
usable by it in connection with the Business (including, without limitation, with respect to the
Company IP).

3.29 Disclosure. No representation or warranty in this Agreement (including, without limitation,
the Schedules hereto) contains or will contain any untrue statement of a material fact or omits or
will omit to state any material fact necessary to make the statements herein or therein not
misleading.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

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The Purchaser hereby represents and warrants to the Company as follows:

4.1 Existence. The Purchaser is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has full corporate power and authority to
conduct its business as it is now being conducted.

4.2 Power and Authority. The Purchaser has full power and authority to enter into this Agreement,
perform its obligations hereunder and carry out the transactions contemplated hereby. The
execution and delivery of this Agreement, the performance by the Purchaser of its obligations
hereunder and the consummation of the transactions contemplated hereby have been duly authorized by
all corporate action on the part of the Purchaser required by applicable law, its Certificate of
Incorporation, as amended, or Bylaws, as amended, or otherwise. This Agreement constitutes the
legal, valid and binding obligation of the Purchaser, enforceable against it in accordance with its
terms, except (i) as the same may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws now or hereafter in effect relating to creditors’ rights generally and (ii) that
the remedy of specific performance and injunctive and other forms of equitable relief may be
subject to equitable defenses and to the discretion of the court before which any proceeding
therefore may be brought.

4.3 No Violation. Neither the execution and delivery of this Agreement nor the performance by the
Purchaser of its obligations hereunder nor the consummation of the transactions contemplated hereby
will contravene any provision of the Articles of Incorporation, as amended, or Bylaws, as amended,
of the Purchaser or violate, or be in material conflict with, or constitute a material default
under, permit the termination of, constitute a material breach of, create a loss of a material
benefit under or upon any property or assets of the Purchaser under, any material agreement,
instrument or commitment to which the Purchaser is a party.

4.4 Litigation. Except as otherwise described in any filings made by Purchaser with the Securities
and Exchange Commission pursuant to the rules and regulations promulgated under the Securities
Exchange Act of 1934, as amended, there is no Action pending, or, to Purchaser’s knowledge,
threatened, against Purchaser, or any of its assets, properties or rights, before any court,
arbitrator or administrative or governmental body, which questions or challenges the validity of
this Agreement or any Action taken or proposed to be taken by Purchaser pursuant to this Agreement
or in connection with the transactions contemplated hereby. To Purchaser’s knowledge, no state of
facts exists or has existed which would reasonably be expected to constitute grounds for the
institution of any Action against Purchaser or against any assets, properties or rights of
Purchaser which would materially and adversely affect the Business. Purchaser is not subject to
any judgment, order or decree entered in any lawsuit or proceeding which has materially affected,
or which can reasonably be expected to materially affect, the Business or its ability to conduct
the Business in any way.

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4.5 Broker’s and Finder’s Fees. Purchaser is not a party to, or in any way obligated to make any
payment relating to, any contract or outstanding claim for the payment of any broker’s or finder’s
fee in connection with the origin, negotiation, execution or performance of this Agreement or the
consummation of the transactions contemplated hereby.

ARTICLE V

CERTAIN OBLIGATIONS OF THE PARTIES PRIOR TO CLOSING

The Company and the Purchaser hereby covenant as follows:

5.1 Access Prior to the Closing. The Company shall afford the Purchaser and its counsel,
accountants, investment bankers, investors and other authorized agents and representatives (its
“Advisors”) reasonable access during normal business hours upon reasonable prior notice to the
Company ‘s properties, books, records and personnel in order that the Purchaser and its Advisors
may have the opportunity to make such reasonable investigations as they shall desire to make of the
affairs of the Company. The Company shall furnish, or shall cause its accountants to furnish, such
additional financial and operating data and other information as the Purchaser or its Advisors
shall from time to time reasonably request, including, without limitation, all financial and
operating data as shall be necessary for verification of the accuracy of the Financial Statements.
The Company shall, upon the reasonable request of the Purchaser, assist the Purchaser and its
Advisors in contacting and communicating with suppliers, customers, employees and Advisors of the
Company.

5.2 Confidentiality Prior to the Closing. Except as required by law or any securities exchange,
each party hereto shall, and shall cause its officers and Advisors to, hold in strict confidence,
and not disclose to others (except its Advisors) for any reason whatsoever, without the prior
written consent of the other party, any nonpublic information received by it from the other party
in connection with the transactions contemplated hereby and will not use such information for any
purpose in the event that no Closing occurs under this Agreement. No party hereto shall
communicate, directly or indirectly, to any third party other than their respective employees,
agents and Advisors any of the terms, conditions and other aspects of this Agreement and the
negotiation and preparation hereof until the Closing has occurred or the negotiations between the
parties have terminated.

5.3 Conduct Prior to Closing Date. Except as otherwise contemplated by this Agreement or permitted
by the prior written consent of the Purchaser, but without making any commitment on the Purchaser
‘s behalf, prior to the Closing Date the Company shall:

(a) conduct the Business and operations of the Company only in the ordinary course, including,
without limitation, maintaining inventories at levels not in excess of those consistent with past
practices;

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(b) maintain the properties and assets of the Company in good condition and repair, perform its
obligations under all agreements to which it is a party or by which it or any of its assets or
properties are bound and maintain all of its Permits in good standing;

(c) continue in effect the policies of insurance (or similar coverage) referred to in Section 3.14;

(d) use reasonable efforts to preserve the business organization, including the present work force,
of the Company intact;

(e) use reasonable efforts to keep available the services of the present employees of the Company;

(f) use reasonable efforts to maintain and preserve the goodwill of the suppliers, customers and
others having business relations with the Company; and

(g) consult with the Purchaser from time to time, upon the reasonable request of the Purchaser,
with respect to any actual or proposed conduct of business by the Company.

5.4 Prohibited Transactions Prior to Closing Date. Except as otherwise contemplated by this
Agreement or permitted by the prior written consent of the Purchaser, prior to the Closing Date the
Company shall not:

(a) become a party to any agreement which, if it existed on the date hereof, would be required to
be listed in the Schedules pursuant to Sections 3.10, 3.11, 3.12, 3.14, 3.15, 3.17 or 3.24;

(b) do or permit to occur any of the things referred to in Section 3.9;

(c) modify or terminate any of the Assumed Contracts; or

(d) enter into any compromise or settlement of any Action relating to any of the Purchased Assets.

5.5 Employee and Customer Retention.

(a) Purchaser or one of its Affiliates (e.g., En Pointe Technologies, Inc.), shall offer employment
to Tom Scoggin and Bruce Wood, the terms of which employment are attached as Exhibit F, shall be
subject to good faith negotiation between Purchaser and such persons and shall be an at-will
employment agreement with no provisions for severance with agreements not to compete with Purchaser
for a period of three years for Scoggin and two years for Wood, within 50 miles of any former
customer of Company or any customer of Purchaser, in the form attached hereto as Exhibit 5.5 and
each will agree to pay to Purchaser any amounts received by him under this paragraph 5.5 in the
event

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any provision of the applicable non-compete agreement is found to be invalid or unenforceable.
Each also agrees not to voluntarily cooperate with any party asserting any claim or allegation,
including, but not limited to, any allegation of insolvency, against Company or against Purchaser

(b) The Company will be solely responsible for any severance, commissions and other
employee-related obligations incurred or relating to services performed prior to the Closing,
including without limitation, payment of all accrued vacation pay and other amounts required by
applicable law to be paid to employees upon termination.

(c) Purchaser and the Company will cooperate and use reasonable good faith efforts both prior to
and after the closing of this transaction to cause (i) at least ninety percent (90%) of the
employees of the Company to accept employment with Purchaser or such Affiliate (including, without
limitation, those employees set forth on Schedule 2.2(v) attached hereto) and (ii) at least ninety
percent (90%) (by revenue) of the customers of the Company to be retained by Purchaser after the
Closing.

5.6 Cooperation. Each party shall use its reasonable efforts to cause the transactions
contemplated by this Agreement to be consummated. In this regard, and without limiting the
generality of the foregoing, the Company shall use reasonable efforts to obtain all consents and
approvals of third parties listed on Schedule 3.5, and make all filings with and give all notices
to government agencies and third parties which may be necessary or reasonably required in order to
consummate the transactions contemplated by this Agreement. The Company shall give prompt notice to
the Purchaser, after receipt thereof by the Company, of (i) any notice of, or other communication
relating to, any default or event which, with notice or the lapse of time or both, would become a
default under any indenture, instrument or agreement material to the Company or the operations,
condition (financial or otherwise) or prospects of the Company, to which the Company is a party or
by which the Company or its assets or properties are bound, and (ii) any notice or other
communication from or to any third party alleging or stating that the consent of such third party
is or may be required in connection with the transactions contemplated by this Agreement.

5.7 Bulk Sales Act. The Company and Purchaser will cooperate to ensure compliance with any Bulk
Sales Act or other state or federal or other jurisdiction law required to protect the interests of
Purchaser.

5.8 Risk of Loss. The Company shall retain all risk of condemnation, destruction, loss or damage
due to fire or other casualty with respect to the Purchased Assets from the date of this Agreement
until the Closing. If the condemnation, destruction, loss or damage is such that the operation of
the Business is materially interrupted or curtailed or any of the Purchased Assets are materially
affected, then Purchaser shall have the right to terminate this Agreement on written notice to the
Company. If Purchaser nonetheless

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elects to close, the Company shall immediately remit all net condemnation proceeds or third party
insurance proceeds to Purchaser and the consideration set forth in Section 1.2 shall be adjusted at
Closing to reflect such condemnation, destruction, loss or damage to the extent that insurance or
condemnation proceeds are not sufficient to cover such condemnation, destruction, loss or damage.

ARTICLE VI

CONDITIONS TO THE PURCHASER’S OBLIGATIONS

Each and every obligation of the Purchaser under this Agreement to be performed on or before the
Closing Date shall be subject to the satisfaction, on or before the Closing Date, of each of the
following conditions:

6.1 Representations and Warranties True. The representations and warranties of the Company
contained herein, in the Schedules and Exhibits hereto and in all certificates and other documents
delivered by the Company to the Purchaser pursuant hereto shall be true and accurate in all
material respects as of the date of this Agreement and as of the Closing Date with the same effect
as if made on and as of the Closing Date and the Company shall have delivered to Purchaser a
Certificate of the Secretary of the Company certifying to such effect. The Company shall not have
done or permitted to occur any of the things referred to in Section 3.9 and the representations and
warranties contained therein shall be true and accurate in all material respects on and as of the
Closing Date.

6.2 Performance. The Company shall have performed and complied in all material respects with all
agreements, obligations and conditions required by this Agreement to be performed or complied with
by it on or prior to the Closing Date, including, without limitation, those referred to in Articles
I and V and the Company shall have delivered to Purchaser a Certificate of the Secretary of the
Company certifying to such effect.

6.3 Consents. All filings with and consents from government agencies and third parties required to
consummate the transactions contemplated hereby, shall have been obtained by the Company, unless
the failure to obtain any such consent or make any such filing would not have an adverse effect on
the assets, properties, business, condition (financial or otherwise) or prospects of the Company or
the transactions contemplated hereby, or except to the extent that making any such filing or
obtaining any such consent has been waived in writing by the Purchaser.

6.4 Financial Condition. In Purchaser ‘s reasonable judgment, there shall have been no material
adverse affect on the business or financial condition of the Company between the date hereof and
the Closing Date.

6.5 Documents and Actions. The Company shall have executed and delivered to the Purchaser this
Agreement and the other Related Agreements and shall have taken the actions contemplated by Section
2.3 hereof.

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6.6 Proceedings. All corporate and other proceedings in connection with the transactions
contemplated by this Agreement, and all documents incident thereto, shall be in form and substance
reasonably satisfactory to the Purchaser and its counsel, and the Purchaser shall have received all
such originals or certified or other copies of such documents as it may reasonably request.

6.7 Absence of Litigation. There shall be no Action pending or threatened before any federal,
state or local court, governmental agency or regulatory body which seeks (a) to invalidate or set
aside, in whole or in part, this Agreement, (b) to restrain, prohibit, invalidate or set aside, in
whole or in part, the consummation of the transactions contemplated hereby or (c) to obtain
substantial damages in connection therewith.

6.8 Possession of Purchased Assets. The Company shall have fully transferred to the Purchaser
physical possession of all of the Purchased Assets except for any laptop or desktop personal
computers and related peripheral equipment that are in the personal possession of employees of
Seller that will be hired by Purchaser.

6.9 Employment by Purchaser of Certain Seller Employees. Each of the persons set forth on Schedule
2.2(v) attached hereto shall have accepted employment with Purchaser on terms mutually acceptable
to Purchaser and such person and shall have executed and delivered to Purchaser a General Terms of
Employment document provided to such person by Purchaser (a copy of which has previously been
provided to Seller by Purchaser).

ARTICLE VII

CONDITIONS TO THE COMPANY’S OBLIGATIONS

Each and every obligation of the Company under this Agreement to be performed on or before the
Closing Date shall be subject to the satisfaction, on or before the Closing Date, of each of the
following conditions:

7.1 Representations and Warranties True. The representations and warranties of the Purchaser
contained herein and in all certificates and other documents delivered by the Purchaser to the
Company pursuant hereto or in connection with the transactions contemplated hereby shall be true
and accurate in all material respects as of the date of this Agreement and as of the Closing Date
with the same effect as if made on and as of the Closing Date and Purchaser shall have delivered to
the Company a Certificate of the Chief Financial Officer of Purchaser certifying to such effect.

7.2 Performance. The Purchaser shall have performed and complied in all material respects with all
agreements, obligations and conditions required by this Agreement to be performed or complied with
by it on or prior to the Closing Date, including, without limitation, those referred to in Article
V and Purchaser shall have delivered to the

27

 

Company a Certificate of the Chief Financial Officer of Purchaser certifying to such effect.

7.3 Documents and Actions. The Purchaser shall have executed and delivered to the Company this
Agreement and the Related Agreements and shall have taken the actions contemplated by Section 2.2.

7.4 Absence of Litigation. There shall be no Action pending or threatened before any federal,
state or local court, governmental agency or regulatory body which seeks (a) to invalidate or set
aside, in whole or in part, this Agreement, (b) to restrain, prohibit, invalidate or set aside, in
whole or in part, the consummation of the transactions contemplated hereby or (c) to obtain
substantial damages in connection therewith.

7.5 Employment Agreements. Purchaser shall have executed and delivered an employment agreement
with Tom Scoggin and Bruce Wood, in form and substance mutually acceptable to Purchaser, Tom
Scoggin and Bruce Wood.

ARTICLE VIII

CERTAIN TAX MATTERS AND POST-CLOSING COVENANTS

8.1 Allocation of Tax Liability. Any personal property taxes with respect to the Purchased
Assets that relate to a tax period beginning before the Closing Date and ending after the Closing
Date (a “Tax Overlap Period”) shall be apportioned between the Company and Purchaser on a per diem
basis. Purchaser shall cause any required tax returns with respect to such personal property taxes
to be filed for any Tax Overlap Period, and Purchaser shall pay, or cause to be paid, all taxes
shown as due on any such returns. The Company shall pay Purchaser the Company’s pro rata share of
any such taxes due pursuant to the filing of any such return within five (5) business days after
receipt of notice of such filing by Purchaser, which notice shall set forth in reasonable detail
the calculations regarding the Company ‘s pro rata share of such taxes. Purchaser shall not be
responsible for any taxes with respect to any real property or leases of real property.

8.2 Cessation of Company Business. From and after the Closing Date, the Company shall cease to
conduct any Business that would compete with Purchaser or cause the customers and/or employees of
the Company or Purchaser to discontinue a business or working relationship with Purchaser of any
kind or nature. The Company may continue conducting business, other than competing business, and
paying for or otherwise duly providing for the full payment or performance of any and all Excluded
Liabilities, and taking such other actions as may be necessary to conduct the ongoing business and
affairs of the Company. The Company agrees that it shall not make any dividends or liquidating or
other distributions of all or any portion of the Company ‘s non-sold cash or other assets to or for
the benefit of the shareholders of the Company until all of the Company’s

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liabilities have been properly discharged, and in no event earlier than the date that is six (6)
months after the Closing Date.

8.3 Collection of Accounts and Accounts Receivable. Purchaser will have the right to collect and
retain any and all accounts and accounts receivable of the Company that existed or were invoiced
prior to the Closing Date or which relate to orders in process and orders received prior to the
Closing Date, including, but not limited to marketing funds, rebates, agent fees, “big deal” fees,
“select” fees, and the like. Purchaser shall have the right to bill and collect all accounts
receivable arising out of or related to the performance of its obligations under the agreements,
contracts and commitments constituting the Purchased Assets or otherwise with respect to the
Business on and after the Closing Date, including but not limited to the right to endorse and
negotiate checks and other negotiable instruments payable to the order of Company and arising from
invoices or orders in process prior to the Closing Date. Seller shall not bill or collect, or
attempt to bill or collect, for any accounts receivable arising out of or related to the
performance of the obligations under the agreements, contracts and commitments constituting the
Purchased Assets or otherwise with respect to the Business on and after the Closing Date. Seller
agrees to use its commercially reasonable efforts to aid Purchaser in collecting such accounts
receivable (provided, that Seller shall not be required to make any material out-of-pocket
expenditures in doing so) and shall hold in trust for Purchaser’s benefit, and remit promptly to
Purchaser, any amounts it receives for such accounts receivable. Prior to and after the Closing
Date, the Company shall direct all customers of the Company to make payments on all invoices issued
by Purchaser on and after the Closing Date to an account designated by Purchaser for receipt of all
accounts receivable of the Business arising on and after the Closing Date. If any checks, cash or
other monies or property of any kind with respect to such accounts receivable are received by the
Company on or after the Closing Date, the Company shall immediately endorse such checks and tender
such cash and other monies or property to Purchaser and shall take any and all other actions and
execute any and all other agreements, documents and instruments as may reasonably be requested by
Purchaser in order to effectuate or facilitate such endorsement, tender or transfer. Until their
endorsement, transfer or tender to Purchaser, all such checks, cash or other monies or property
shall be deemed held in trust by the Company for the exclusive benefit of Purchaser.

8.4 Books and Records; Audit Right. Unless otherwise consented to in writing by the Purchaser, the
Company shall not destroy, alter or otherwise dispose of any original books or records of the
Company prior to the Closing Date without first offering to surrender such books and records to the
Purchaser and shall maintain such books and records in good condition in a reasonably accessible
location. Upon reasonable prior notice, Purchaser’s employees, agents and/or Advisors shall have
access, at all reasonable times, to all of the Company’s personnel, books, records, correspondence,
financial information, receipts, vouchers, financial accounts, data stored in computer files or any
other media, and memoranda of every description for the purpose of verifying Seller’s compliance
with the terms of this Agreement (including, without limitation, Section 8.3 above). Seller shall
maintain in a reasonably safe and secure manner and preserve such documents, supporting data and
accounting records, etc. in a safe place for a period of

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two (2) years after the Closing Date and Purchaser’s employees, agents and/or Advisors shall have
the right to reproduce any of these documents.

8.5 Transfer Taxes. Purchaser and the Company shall each share equally and be equally responsible
for the payment of any and all transfer or sales taxes arising in connection with the consummation
of the transactions contemplated hereby. In this regard, Purchaser shall pay, or cause to be paid,
all such transfer or sales taxes as due and the Company shall pay Purchaser the Company’s share of
any such taxes due within five (5) business days after receipt of notice of such payment by
Purchaser.

8.6 Web Domain. Upon the Closing Date the Company will maintain the web domain
www.viablelinks.com’s existence and will not assign the web domain to any other party for a period
of no less than 3 years.

8.7 Liens Against Purchased Assets. At the Closing Date, Seller shall deliver to Purchaser
evidence satisfactory to Purchaser that the liens, encumbrances and security interests of each of
(i) Albina Bank, (ii) Ingram Micro; and (iii) any other secured creditor with respect to any of
the Purchased Assets evidenced by UCC Financing Statements filed in any and all jurisdictions,
together with any security agreements and other documents and instruments related thereto, and all
indebtedness, obligations and liabilities of any kind or nature whatsoever associated with such
liens, encumbrances and security interests and such security agreements and other documents and
instruments related thereto have been either assigned to Purchaser or fully and forever released
and terminated, including, but not be limited to, copies of UCC Termination Statements as filed in
all jurisdictions necessary in order to terminate the UCC Financing Statements filed against Seller
in any and all jurisdictions, except as specifically excepted above in 2.3(a)(vii).

ARTICLE IX

SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

9.1 Survival of Representations and Warranties True. Notwithstanding (a) the making of this
Agreement or any Related Agreement, (b) any examination made by or on behalf of the parties hereto
and (c) the Closing hereunder, (x) the representations and warranties of the Company and the
Purchaser contained in this Agreement, or in any document delivered pursuant to the provisions of
this Agreement, shall survive the Closing for a period of 24 months, except for the representations
and warranties made in Section 3.10 (Title to Properties; Encumbrances), Section 3.19
(Environmental Matters) and Section 3.27 (Tax Returns and Payments), which in each case shall
survive until the expiration of the applicable statute of limitations for the underlying cause of
action plus six months and (y) the covenants and agreements required to be performed after the
Closing or pursuant to Article V of this Agreement (unless noncompliance with those covenants
contained in Article V was waived in writing at the Closing) shall survive until fully performed or
fulfilled. No action may be brought with respect thereto after such date; provided, however, that
if, prior to such date, one party has notified the other party

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of a claim for indemnity under this Article IX (whether or not formal legal action shall have been
commenced based upon such claim), such claim shall continue to be subject to indemnification in
accordance with this Article IX.

9.2 Indemnification.

(a) Subject to Section 9.1 above, from and after the Closing, the Company and Casey Daley and
Marcee Daley and Tom Scoggins, jointly and severally, shall indemnify and save harmless the
Purchaser and its officers, directors, shareholders, successors and assigns (collectively, the
“Purchaser Indemnified Party”) from and against any loss, claim, liability, damage, punitive
damages, remedial costs, civil and criminal penalties or expenses or other damages of any kind or
nature, including reasonable attorneys’ fees incurred by such Purchaser Indemnified Party or the
Business in connection with any of the foregoing (collectively, the “Damages”), arising out of (i)
the failure by the Company to perform any covenant or agreement required to be performed by it in
this Agreement or in any Related Agreement (unless noncompliance with such covenant or agreement in
such specific instance was waived in writing by the Purchaser at the Closing), including, but not
limited to Section 8.3 Collection Of Accounts Receivable; (ii) the failure of the Company to pay,
perform or satisfy any obligation under any pension, retirement, severance, welfare, deferred
compensation, bonus or other incentive plan, or other employee benefit program, arrangement,
agreement or understanding, or medical, vision, dental or health plan, or life insurance or
disability plan, retiree medical plan or any other employee benefit plans, including, without
limitation, any “employee benefit plan” (as defined in Section 3(3) of ERISA) or any “multiemployer
plans” (as defined in Section 3(37) of ERISA), or any “employee welfare plan” (as defined in
Section 3(i) of ERISA) or any other plans, programs or arrangements of any kind to which the
Company contributes or is a party or by which it is bound or under which it may have liability and
under which employees or former employees of the Company (or their beneficiaries) are eligible to
participate or derive a benefit, on or before the Closing Date; (iii) any judgments, orders or
decrees entered in any lawsuit or proceeding or Actions against the Company arising out of
activities undertaken by the Company on or prior to the Closing Date, including, without
limitation, Actions for (A) personal injury, products liability, liability for services rendered or
breach of warranty arising from products or goods final-tested or shipped by the Company or
services rendered by the Company involving or relating to the Company, any of its assets,
properties or rights, including the Actions set forth on Schedule 3.13; (B) noncompliance by the
Company with any Environmental Law; (C) the release into the environment of any pollutant, toxic or
hazardous material or waste generated by the Company or the Business, whether or not occurring at
or on a site owned, leased or operated by the Company; or (D) without limiting the generality of
the foregoing, any Actions or threatened Actions that may be asserted against the Company and any
other Actions arising out of the Company’s operations on or prior to the Closing Date; (iv) the
Company’s noncompliance with any federal, state or local laws, rules, regulations, standards and
requirements, on or prior to the Closing Date; (v) the failure of the Company to pay promptly any
federal, state, local or foreign taxes of the Company (including, without limitation, all taxes of
any kind or nature and all interest, additions to

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tax and penalties thereon) claimed or assessed for any taxable period ended on or prior to the
Closing Date; (vi) any Actions, claims, demands, grievances or disputes brought or initiated by
third parties against the Purchaser or any of its Affiliates, employees, consultants, attorneys or
agents in connection with the failure of the Company to pay any customer, supplier or vendor of the
Company the value of any account payable or trade payable shown on the Financial Statements or
incurred by the Company on or prior to the Closing Date in accordance with terms and conditions of
payment with respect to such account payable or trade payable or any other liabilities of the
Company which existed and were not disclosed to the Purchaser prior to the Closing Date; or (vii)
any breach of warranty or misrepresentation in this Agreement or any Related Agreement (including
the Schedules hereto) made by or on behalf of the Company and not waived in writing by the
Purchaser.

(b) The Purchaser shall notify the Company within a reasonable period of time after becoming aware
of, and shall provide to the Company as soon as practicable thereafter all information and
documentation necessary to support and verify, any Damages which the Purchaser Indemnified Party,
as the case may be, shall have determined has given or could give rise to a claim for
indemnification hereunder.

(c) All claims for indemnity under this Article IX shall be paid on demand in immediately available
funds in U.S. dollars. At the Purchaser’s option, in lieu of payment in cash, Purchaser shall have
the absolute right in Purchaser’s sole discretion to setoff, in part or in full, against all or any
portion of the payments due to the Company pursuant to the Closing Note the full amount of any
claim for indemnity pursuant to the provisions of Section 9.2. Notwithstanding anything to the
contrary set forth herein, the Company shall not have any liability for indemnification under this
Article IX until the total of all amounts for which indemnification is sought under this Article IX
exceeds Ten Thousand Dollars ($10,000).

(d) The Purchaser shall notify the indemnifying party with reasonable promptness of its discovery
of any matter giving rise to a claim of indemnity or setoff pursuant to this Agreement. With
respect to any third party claim or action that could give rise to indemnity under this Agreement,
the indemnifying party shall be entitled to assume the defense thereof with counsel satisfactory to
the Purchaser Indemnified Party, provided, that upon the request of the Purchaser Indemnified
Party, the indemnifying party provides reasonable evidence of its ability to perform its
obligations under this Section 9.2. After notice from indemnifying party to the Purchaser
Indemnified Party, of its election so to assume the defense thereof, the indemnifying party shall
not be liable to the Purchaser Indemnified Party, under the foregoing indemnity agreement for any
legal or other expenses subsequently incurred by the Purchaser Indemnified Party, in connection
with the defense thereof other than (i) those relating to investigation or the furnishing of
documents or witnesses and (ii) all reasonable fees and expenses of separate counsel retained by
such Purchaser Indemnified Party, , if (A) the indemnifying party and the Purchaser Indemnified
Party, shall have agreed to the retention of such counsel or (B)

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counsel to the Purchaser Indemnified Party, shall have concluded reasonably that the
representation of the indemnifying party and the Purchaser Indemnified Party, by the same counsel
would be inappropriate due to actual or potential differing interests between them in the conduct
of the defense of such action. Promptly after receipt by the Purchaser Indemnified Party, of
notice of the commencement of any action to which the indemnifying party is not a party, the
Purchaser Indemnified Party, shall, if such claim in respect thereof is to be made against the
indemnifying party pursuant to this Agreement, notify the indemnifying party in writing of the
commencement thereof, but the failure or delay in so notifying the indemnifying party shall not
relieve the indemnifying party of its obligations to indemnify the Purchaser Indemnified Party,
pursuant to the terms of this Agreement. The Purchaser Indemnified Party, shall keep the
indemnifying party reasonably informed of the progress of any such action and shall not enter into
any settlement of any such action without the prior written consent of the indemnifying party,
which consent shall not be unreasonably withheld or delayed.

ARTICLE X

TERMINATION

10.1 Termination. This Agreement may be terminated at any time prior to the Closing Date:

     (a) by the mutual consent of the Purchaser and the Company;

     (b) by either the Purchaser or the Company, upon written notice, if there has been a material
misrepresentation or any breach on the part of the other party hereto in the representations,
warranties or covenants contained in this Agreement which is not cured within ten (10) business
days after such other party has been notified of the intent to terminate this Agreement pursuant to
this subsection (b); or

     (c) by either the Purchaser or the Company if the Closing has not occurred by September 28,
2004.

10.2 Effect of Termination. If this Agreement is terminated as expressly permitted under Section
10.1, such termination shall be the sole remedy and this Agreement shall forthwith become void
(except for Section 5.2 and Section 11.3) and there shall be no liability on the part of the
Company or the Purchaser or any of their respective Affiliates; provided, however, that if such
termination shall result from the willful breach by a party hereto of its obligations under this
Agreement, such party shall be fully liable for any and all damages, costs and expenses sustained
or incurred by the other party as a result of such breach. If this Agreement is terminated without
a Closing, the Company shall return promptly to the Purchaser all documents, work papers and other
materials of the Purchaser furnished or made available to the Company or its Advisors, and all
copies thereof, and no such information, documents, work papers or other materials received by the
Company shall be revealed to any third party or used for the advantage of the Company or any other
party; and the Purchaser shall return promptly to the Company all

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documents, work papers and other material of the Company furnished or made available to the
Purchaser or its Advisors, and all copies thereof, and no such information, documents, work papers
or other materials received by the Purchaser shall be revealed to any third party or used for the
advantage of the Purchaser or any other party.

ARTICLE XI

MISCELLANEOUS PROVISIONS

11.1 Public Announcements. Except as required by law and except as the Company and the Purchaser
shall authorize in writing, the parties hereto shall not, and shall cause their respective
officers, directors, employees, Affiliates and Advisors not to, disclose any matter or matters
relating to this transaction to any person not an officer, director, employee, Affiliate or Advisor
of such party, except for the content set forth in Schedule 11.1.

11.2 Amendment; Waiver. Neither this Agreement, nor any of the terms or provisions hereof, may be
amended, modified, supplemented or waived, except by a written instrument signed by the parties
hereto (or, in the case of a waiver, by the party granting such waiver). No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. No failure
of either party hereto to insist upon strict compliance by the other party with any obligation,
covenant, agreement or condition contained in this Agreement shall operate as a waiver of, or
estoppel with respect to, any subsequent or other failure. Whenever this Agreement requires or
permits consent by or on behalf of any party hereto, such consent shall be given in a manner
consistent with the requirements for a waiver of compliance as set forth in this Section 11.2.

11.3 Fees and Expenses. Except as otherwise provided in this Agreement, each of the parties hereto
shall bear and pay its own costs and expenses incurred in connection with the origin, preparation,
negotiation, execution and delivery of this Agreement and the agreements, instruments, documents
and transactions referred to in or contemplated by this Agreement (whether or not such transactions
are consummated) including, without limitation, any fees, expenses or commissions of any of its
Advisors, attorneys, accountants, agents, finders or brokers. The Purchaser shall indemnify the
Company against any claims of third parties for any brokerage, finder’s, agent’s or similar fees or
commissions in connection with the transactions contemplated hereby insofar as such claims are
alleged to be based on arrangements or contacts made by, to or with the Purchaser or its Advisors
or representatives. The Company shall indemnify the Purchaser against all such claims insofar as
they are alleged to be based on arrangements or contacts made by, to or with the Company or its
Advisors or representatives.

11.4 Notices.

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(a) All notices, requests, demands and other communications required or permitted under this
Agreement shall be in writing (including telefax, telegraphic, telex or cable communication) and
mailed, telefaxed, telegraphed, telexed, cabled or delivered:

(i) If to the Company, to: Casey Daly

Attn:

Facsimile no.: 503-670-0001

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

Attention: Barry Caplan

Sussman Shank LLP

1000 SW Broadway, Suite 1400

Portland, OR 97205-3089

Facsimile No.: 503-248-0130

(ii) If to the Purchaser, to:

En Pointe Technologies Sales, Inc.

100 N. Sepulveda Blvd., 19th Floor

El Segundo, CA 90245

Attn: Bob Din

Facsimile no.: (310) 640-8779

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

Attention: Jacob J. Stettin

Facsimile No.: (801) 409-8996

(b) All notices and other communications required or permitted under this Agreement which are
addressed as provided in this Section 11.4 (i) if delivered personally against proper receipt or by
confirmed telefax or telex, shall be effective upon delivery and (ii) if delivered (A) by certified
or registered mail with postage prepaid, (B) by Federal Express or similar courier service with
courier fees paid by the sender or (C) by telegraph or cable, shall be effective two business days
following the date when mailed, couriered, telegraphed or cabled, as the case may be. Either party
may from time to time change its address for the purpose of notices to that party by a similar
notice specifying a new address, but no such change shall be deemed to have been given until it is
actually received by the party sought to be charged with its contents.

11.5 Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and

35

 

permitted assigns, but neither this Agreement nor any of the rights, interests or obligations
hereunder may be assigned by any party hereto without the prior written consent of the other
parties; provided, however, that the Purchaser may assign this Agreement to any of its Affiliates
or any entity who by merger, consolidation, purchase or sale subsequently acquires Purchaser or
becomes an Affiliate without the prior consent of the Company if such Affiliate or entity agrees in
writing to assume all of Purchaser’s obligations under this Agreement and to be subject to and
bound by all of the terms and conditions hereof. Any assignment which contravenes this Section
11.5 shall be void ab initio.

11.6 Governing Law. This Agreement and the legal relations between the parties hereto shall be
governed by and construed in accordance with the internal laws of the State of California, without
giving effect to the conflicts of laws principles thereof.

11.7 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which taken together shall constitute one and the same
instrument.

11.8 Headings. The headings contained in this Agreement are for convenience of reference only and
shall not constitute a part hereof or define, limit or otherwise affect the meaning of any of the
terms or provisions hereof.

11.9 Entire Agreement. This Agreement (which defined term includes the Schedules and Exhibits to
this Agreement) embodies the entire agreement and understanding among the parties hereto with
respect to the subject matter of this Agreement and supersedes all prior agreements, commitments,
arrangements, negotiations or understandings, whether oral or written, between the parties with
respect thereto. There are no agreements, covenants, undertakings, representations or warranties
with respect to the subject matter of this Agreement other than those expressly set forth or
referred to herein. This is an integrated agreement.

11.10 Severability. Each term and provision of this Agreement constitutes a separate and distinct
undertaking, covenant, term and/or provision hereof. In the event that any term or provision of
this Agreement shall be determined to be unenforceable, invalid or illegal in any respect, such
unenforceability, invalidity or illegality shall not affect any other term or provision of this
Agreement, but this Agreement shall be construed as if such unenforceable, invalid or illegal term
or provision had never been contained herein. Moreover, if any term or provision of this Agreement
shall for any reason be held to be excessively broad as to time, duration, activity or subject, it
shall be construed, by limiting and reducing it, so as to be enforceable to the extent permitted
under applicable law as it shall then exist.

11.11 No Third Party Beneficiaries. Nothing in this Agreement is intended, nor shall anything in
this Agreement be construed, to confer any rights, legal or equitable, in any

36

 

Person (other than the parties hereto and their respective heirs, distributees, beneficiaries,
executors, successors and assigns), including, without limitation, any employee of the Company or
any beneficiary of such employee.

11.12 Arbitration. Any dispute arising out of this Agreement or the Closing Note, or the
performance or breach hereof or thereof, shall be resolved by binding arbitration under the
Commercial Arbitration Rules (the “AAA Rules”) of the American Arbitration Association (the “AAA”),
except that requests for preliminary or immediate injunctive relief may be made by any party to a
court having jurisdiction thereof. The parties stipulate that courts located in Los Angeles
County, California, have non-exclusive jurisdiction over any request for preliminary or immediate
injunctive relief made by any party). This arbitration provision is expressly made pursuant to and
shall be governed by the Federal Arbitration Act, 9 U.S.C. Sections 1-14. The parties agree that
pursuant to Section 9 of the Federal Arbitration Act, a judgment of a United States District Court
shall be entered upon the award made pursuant to the arbitration. A panel of three arbitrators, who
shall have the authority to allocate the costs of any arbitration initiated under this Section,
shall be selected according to the AAA Rules within ten (10) days of the submission to the AAA of
the response to the statement of claim or the date on which any such response is due, whichever is
earlier. The arbitrators shall be required to furnish to the parties to the arbitration a
preliminary statement of the arbitrators’ decision that includes the legal rationale for the
arbitrators’ conclusion and the calculations pertinent to any damage award being made by the
arbitrators. The arbitrators shall then furnish each of the parties to the arbitration the
opportunity to comment upon and/or contest the arbitrators’ preliminary statement of decision
either, in the discretion of the arbitrators, through briefs or at a hearing. The arbitrators shall
render a final decision following any such briefing or hearing. The arbitrators shall decide the
amount and extent of pre-hearing discovery which is appropriate. The arbitrators shall have the
power to enter any award of monetary and/or injunctive relief (including the power to issue
permanent injunctive relief and also the power to reconsider any prior request for immediate
injunctive relief by any party and any order as to immediate injunctive relief previously granted
or denied by a court in response to a request therefore by any party), including the power to
render an award as provided in Rule 4 5 of the AAA Rules; PROVIDED, HOWEVER, THAT ANY AWARD SHALL
NOT INCLUDE CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES. The arbitrators shall award the
prevailing party its costs and reasonable attorneys’ fees; provided, however, that the arbitrators
shall not award attorneys’ fees to a prevailing party if the prevailing party received a settlement
offer unless the arbitrators’ award to the prevailing party is greater than such settlement offer
without taking into account attorneys’ fees in the case of the settlement offer or the arbitrators’
award. Any arbitration shall be held in Los Angeles County, California. In addition to the above
courts, the arbitration award may be enforced in any court having jurisdiction over me parties and
the subject matter of the arbitration.

11.13 Attorneys’ Fees. In the event that any action or proceeding is commenced by any party
hereto for the purpose of enforcing any provision of this Agreement, the parties to such action or
proceeding may receive as part of any award, judgment, decision or other

37

 

resolution of such action or proceeding their costs and reasonable attorneys’ fees as determined by
the person or body making such award, judgment, decision or resolution. Should any claim hereunder
be settled short of the commencement of any such action or proceeding, the parties in such
settlement shall be entitled to include as part of the damages alleged to have been incurred
reasonable costs of attorneys or other professionals in investigation or counseling on such claim.

11.14. Releases. By execution hereof and upon Closing, Seller hereby releases Purchaser and all
Seller employees who become employed by Purchaser after Closing from any liability under any and
all non solicitation and non competition agreements that Seller may have with said employees.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day
and year first above written.

	 	 	 	 	 
	“PURCHASER”:	 	EN POINTE TECHNOLOGIES SALES, INC.
	 
	 	 	 	 
	By:

	 	/s/ Javed Latif	 	 
	 	 	

	Javed Latif, CFO
	 
	 	 	 	 
	“COMPANY”:	 	          VIABLELINKS, INC.
	 
	 	 	 	 
	By:

	 	           /s/ Marcee Daly	 	 
	 	 	

	Marcee Daly, Shareholder and Director
	 
	 	 	 	 
	By:

	 	           /s/ Casey Daly	 	 
	 	 	

	Casey Daly, Shareholder and Director
	 
	 	 	 	 
	By:

	 	           /s/ Tom Scoggin	 	 
	 	 	

	Tom Scoggin, President, Shareholder and Director
	 
	 	 	 	 
	

	 	           /s/ Casey Daly	 	 
	

	Casey Daly, individually
	 
	 	 	 	 
	

	 	           /s/ Marcee Daly	 	 
	

	Marcee Daly, individually
	 
	 	 	 	 
	

	 	           /s/ Tom Scoggin	 	 
	

	Tom Scoggin, individually

38

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