Document:

Exhibit
      10.40

     

    AGREEMENT
      

    

    AGREEMENT
      (this
“Agreement”)
      dated
      as of September 30, 2006 by and among Solomon Technologies, Inc., a
      Delaware corporation (the “Company”),
      Woodlaken LLC (“Woodlaken”),
      Jezebel Management Corporation (“Jezebel”),
      Pinetree (Barbados) Inc. (“Pinetree”),
      Coady
      Family LLC (“Coady”),
      F.
      Jay Leonard (“Leonard”),
      Peter
      and Barbara Carpenter (“Carpenter”),
      Pascal Partners, LLC (“Pascal”),
      Steven Kilponen (“Kilponen”)
      and
      Millennium Trust Co. LLC Custodian FBO Joseph Cooper Rollover IRA 90M020013
      (“Cooper,”
and
      together with Woodlaken, Jezebel, Pinetree, Coady, Leonard, Carpenter, Pascal
      and Kilponen, the “Investors”)

    

    WITNESSETH:

    

    WHEREAS,
      the
      Company has sold $1,572,000 aggregate principal amount of Senior Secured
      Promissory Notes to the Investors in the amounts set forth on Schedule 1 (the
      “Existing
      Notes”);
      

    

    WHEREAS,
      Company
      has authorized the sale of up to an additional $128,000.00 of Senior Secured
      Promissory Notes (the “Additional
      Notes”);
      and

    

    WHEREAS,
      the
      Investors and the Company now wish to amend (i) the Existing Notes to provide
      that the Existing Notes shall be payable pari
      passu
      with the
      Additional Notes, and (ii) that certain Security Agreement dated as of March
      16,
      2005 by and between the Company and the Investors (the “Security
      Agreement”)
      to
      provide that
      the
      Additional Notes, when issued, will be entitled to share in the security
      interest in the Company’s assets provided by such agreement on a pari
      passu
      basis
      with the holders of the Existing Notes.

    

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

    

    1. AMENDMENT
      OF EXISTING NOTES.
      

    

    1.1. Additional
      Notes Pari
      Passu.
      Each of
      the outstanding Existing Notes is hereby amended to provide that each of the
      Additional Notes, when issued and sold, shall be payable pari
      passu
      with the
      outstanding Existing Notes.

    

    1.2. Full
      Force and Effect.
      Except
      as amended hereby, the terms of the Notes, as previously amended, remain in
      full
      force and effect.

    

    
      	
              2.

            	
              AMENDMENT
                OF SECURITY AGREEMENT. 

            

    

    

    2.1 Security
      Agreement. Section
      20 of the Security Agreement is hereby deleted and replaced in its entirety
      with
      the following:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Section
      20. Additional
      Secured Parties.
      The
      Debtor, Woodlaken, Jezebel, Pinetree (Barbados), Inc., Coady Family LLC, F.
      Jay
      Leonard, Peter and Barbara Carpenter, Pascal Partners, LLC, Steven Kilponen
      and
      Meriden Cooper Corporation  401K Profit Sharing Plan, Joseph Cooper Trustee
      acknowledge that the Debtor may sell up to an additional $128,000 aggregate
      principal amount of promissory notes having substantially the same terms as
      the
      Notes (for a maximum aggregate principal amount of $1,700,000) and such parties,
      and all persons who become Secured Parties after the date hereof, agree that
      upon the sale of a promissory note and the execution of a joinder agreement
      in
      the form of Schedule
      B
      hereto
      by the purchaser thereof, (i) such purchaser shall be deemed a “Secured Party”
hereunder and (ii) Schedule
      A
      hereto
      shall be amended to include all relevant information pertaining to such
      purchaser and the Note purchased by him, her or it. Schedule
      A
      as so
      amended shall be initialed or signed by the President of the
      Debtor.

    

    3. MISCELLANEOUS.

    

    3.1. Law
      Applicable.
      This
      Agreement shall be governed by and construed pursuant to the laws of the State
      of New York, without giving effect to conflicts of laws principles.

    

    3.2. Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be an original,
      but all of which together shall constitute one and the same instrument and
      it
      shall not be necessary in making proof of this Agreement to account for all
      such
      counterparts.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      undersigned have hereunto set their hands to this Agreement as of the day and
      year first above written.

    

    
      	 	COMPANY: 
	 	 
	 	SOLOMON TECHNOLOGIES,
              INC. 
	 	 
	 	By:
              /s/ Peter W. DeVecchis, Jr. 
	 	Name: Peter W. DeVecchis,
              Jr. 
	 	Title: President 
	 	 
	 	WOODLAKEN
              LLC 
	 	 
	 	By: /s/
              Gary M. Laskowski 
	 	Name: Gary M.
              Laskowski  
	 	Title: Manager 
	 	 
	 	JEZEBEL MANAGEMENT
              CORPORATION 
	 	 
	 	By: /s/
              Michael A. D’Amelio 
	 	Name: Michael A. D’Amelio 
	 	Title: President 
	 	 
	 	PINETREE (BARBADOS)
              INC. 
	 	 
	 	By:
              /s/ J. Gordon Murphy 
	 	Name: J. Gordon Murphy 
	 	Title: President 
	 	 
	 	COADY FAMILY
              LLC 
	 	 
	 	By: /s/
              Patrick D. Coady 
	 	Name: Patrick
              D. Coady 
	 	Title:
              Manager 

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	/s/ F. Jay Leonard 
	 	F. Jay
              Leonard 
	 	 
	 	/s/ Peter Carpenter 
	 	Peter
              Carpenter 
	 	 
	 	/s/ Barbara
              Carpenter 
	 	Barbara
              Carpenter 
	 	 
	 	PASCAL PARTNERS,
              LLC 
	 	 
	 	By: /s/
              Nick Marinella 
	 	Name: Nick
              Marinella 
	 	Title: Managing Member 
	 	 
	 	/s/ Steven Kilponen 
	 	Steven
              Kilponen 
	 	 
	 	Millennium Trust Co. LLC
              Custodian 
	 	FBO Joseph Cooper Rollover
              IRA
              90M020013 
	 	 
	 	By: /s/
              Joseph Cooper 
	 	Name: Joseph Cooper 
	 	Title: 

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      1

    

    Senior
      Notes

     

    
      	
              Name
                of Investor

            	
              Date
                Issued

            	 	
              Principal
                Amount

            
	
              Woodlaken
                LLC

            	
              March
                7, 2005      

            	
              $

            	
              40,000.00
                

            
	
              Jezebel
                Management Corporation

            	
              March
                16, 2005      

            	
              $

            	
              100,000.00

            
	
              Pinetree
                (Barbados) Inc.

            	
              April
                1, 2005     

            	
              $

            	
              50,000.00

            
	
              Woodlaken
                LLC

            	
              April
                1, 2005     

            	
              $

            	
              10,000.00
                

            
	
              Jezebel
                Management Corporation

            	
              April
                18, 2005     

            	
              $

            	
              75,000.00

            
	
              Coady
                Family LLC

            	
              May
                25, 2005     

            	
              $

            	
              100,000.00

            
	
              Jezebel
                Management Corporation

            	
              July
                8, 2005     

            	
              $

            	
              75,000.00

            
	
              Jezebel
                Management Corporation

            	
              August
                16, 2005     

            	
              $

            	
              150,000.00

            
	
              Jezebel
                Management Corporation

            	
              September
                15, 2005     

            	
              $

            	
              150,000.00

            
	
              Jezebel
                Management Corporation

            	
              November
                18, 2005     

            	
              $

            	
              100,000.00

            
	
              Pinetree
                (Barbados) Inc.

            	
              November
                18, 2005     

            	
              $

            	
              100,000.00

            
	
              F.
                Jay Leonard

            	
              March
                20, 2006     

            	
              $

            	
              25,000.00

            
	
              Woodlaken
                LLC

            	
              March
                31, 2006     

            	
              $

            	
              72,000.00

            
	
              Peter
                and Barbara Carpenter

            	
              April
                7, 2006     

            	
              $

            	
              100,000.00

            
	
              Pascal
                Partners, LLC

            	
              April
                10, 2006     

            	
              $

            	
              100,000.00

            
	
              Coady
                Family LLC

            	
              May
                23, 2006     

            	
              $

            	
              200,000.00

            
	
              Steven
                Kilponen

            	
              June
                13, 2006     

            	
              $

            	
              25,000.00

            
	
              Millennium
                Trust Co. LLC Custodian FBO Joseph Cooper Rollover IRA
                90M020013

            	
              July
                3, 2006     

            	
              $

            	
              100,000.00

            

    

    

    
      
        
        

      

      
        5Exhibit
      10.41

     

    
      
        

      

    

    

    

    SECURITIES
      PURCHASE AGREEMENT

    

    

    by
      and
      among

    

    SOLOMON
      TECHNOLOGIES, INC.,

    

    INTEGRATED
      POWER SYSTEMS LLC,

    

    POWER
      DESIGNS INC., 

    

    THE
      VANTAGE PARTNERS LLC,

    

    TECHNIPOWER
      LLC,

    

    and
      the
      other parties listed on the signature pages hereto

     

     

    
      
        

      

    

    

    

    Dated
      as
      of August 17, 2006

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECURITIES
      PURCHASE AGREEMENT

    

    SECURITIES
      PURCHASE AGREEMENT (the
      “Agreement”),
      dated
      as of August 17, 2006, by and among
      SOLOMON TECHNOLOGIES, INC.,
      a
      Delaware corporation (the “Purchaser”),
      INTEGRATED
      POWER SYSTEMS LLC,
      a
      Delaware limited liability company (“IPS”),
      POWER
      DESIGNS INC.,
      a
      Delaware corporation (“PDI”),
      THE
      VANTAGE PARTNERS LLC,
      a
      Connecticut limited liability company (“Vantage”;
      together with IPS and PDI, the “Regular
      Unit Holders”),
      ANTHONY
      F. INTINO, II,
      a
      resident of Wethersfield, Connecticut (“Intino”),
      ALLISON
      E. BERTORELLI,
      a
      resident of Farmington, Connecticut (“Bertorelli”)
      and
MARIANO
      MORAN,
      a
      resident of Danbury, Connecticut (“Moran”,
      and
      together with Intino and Bertorelli, the “CAU
      Holders”);
      the
      Regular Unit Holders and the CAU Holders are collectively referred to as the
      “Members”
and
      each individually, a “Member”),
      each
      of the holders of Warrants (as defined below) listed on the signature pages
      hereto (the “Warrantholders”
and
      each individually, a “Warrantholder”;
      the
      Members, together with the Warrantholders, are sometimes referred to herein
      as
“Sellers”
and
      each individually, a “Seller”)
      and
TECHNIPOWER
      LLC,
      a
      Delaware limited liability company (the “Company”).
      

    

    WITNESSETH
      :

    

    WHEREAS,
      the
      Members own 100% of the issued and outstanding membership units consisting
      of
      Regular Units (“Regular
      Units”)
      and
      Capital Appreciation Units (“CAUs”;
      together with the Regular Units, collectively the “Membership
      Interests”)
      of the
      Company;

    

    WHEREAS,
      the
      Warrantholders own warrants to acquire Regular Units of the Company (the
“Warrants”)
      in
      varying amounts;

    

    WHEREAS,
      the
      Company is in the power supply business (the “Business”);
      

    

    WHEREAS,
      the
      Members wish to sell, and the Purchaser wishes to purchase, all of the Purchased
      Interests (as defined in Section 1.1) representing 100% of the issued and
      outstanding Membership Interests, subject to the terms and conditions contained
      in this Agreement; and

    

    WHEREAS,
      the
      Warrantholders wish to sell, and the Purchaser wishes to purchase, all of the
      Purchased Warrants (as defined in Section 1.2), subject to the terms and
      conditions contained in this Agreement; 

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements set forth in this
      Agreement, and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties do hereby agree as
      follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

    

    PURCHASE
      AND SALE OF PURCHASED INTERESTS AND WARRANTS

    

    Section
      1.1 Purchase
      and Sale of the Purchased Interests
      Subject
      to the terms and conditions of this Agreement, immediately following the
      purchase and sale of the Purchased Warrants as provided in Section 1.2 below,
      each Member agrees to sell, assign, transfer and deliver to the Purchaser on
      the
      Closing Date (as defined in Section 2.4 below), and the Purchaser agrees to
      purchase from each Member on the Closing Date, the number of Membership
      Interests set forth opposite its name on Annex
      A
      of this
      Agreement (collectively, the “Purchased
      Interests”).
      All
      certificates representing the Purchased Interests shall be duly endorsed by
      the
      Member transferring the same, with all necessary transfer tax and other revenue
      stamps, if any, acquired at the Member’s expense, affixed and
      cancelled.

    

    Section
      1.2 Purchase
      and Sale of the Purchased Warrants.
      Subject
      to the terms and conditions of this Agreement, immediately prior to the purchase
      and sale of the Purchased Interests as provided in Section 1.1 above, each
      Warrantholder agrees to sell, assign, transfer and deliver to the Purchaser
      on
      the Closing Date, and the Purchaser agrees to purchase from each Warrantholder
      on the Closing Date, the number of Warrants set forth opposite its name on
      Annex
      A
      of this
      Agreement and all rights attendant thereto (collectively, the “Purchased
      Warrants”).
      Immediately upon such purchase and sale of the Purchased Warrants, those
      Warrants shall be cancelled, and all instruments representing the Purchased
      Warrants shall terminate and be deemed null and void.

    

    

    ARTICLE
      II

    

    PURCHASE
      PRICE AND CLOSING

    

    Section
      2.1 Purchase
      Price.
      In
      full
      consideration for the purchase of the Purchased Interests and the Purchased
      Warrants by the Purchaser, the purchase price (the “Purchase
      Price”)
      shall
      be calculated and paid by the Purchaser to the Sellers, allocated among such
      Sellers in the manner described on Annex
      A and
      in
      this Article II, as follows:

    

    2.1.1  Payments.

    

    (i) [INTENTIONALLY
      OMITTED].

    

    (ii) Closing
      Stock Payment.
      Subject
      to Section 2.2 below, within 5 business days following the Closing, the
      Purchaser shall deliver (x) that number of Purchaser’s shares of common stock,
      par value $0.001 per share (“STI
      Common Stock”),
      having an aggregate market value based on the Current Market Price (as defined
      in Section 2.2) as of the Closing Date equal to $2,900,000 and (y) that number
      of Purchaser’s shares of Series C Preferred Stock, par value $0.001 per share
      (“Series
      C Preferred Stock”,
      together with the STI Common Stock, the “STI
      Stock”,
      the
      Series C Preferred Stock having the rights and privileges specified in the
      Series C Certificate of Designations attached hereto as Exhibit
      A (the “Series
      C Certificate of Designations”)),
      equal to the result of dividing $3,000,000 by the Current Market Price as of
      the
      Closing Date for the STI Common Stock (the payments of STI Stock pursuant to
      (x)
      and (y) being referred to as the “Stock
      Payment”).
      At
      the Closing, all of the Series C Preferred Stock and 75% of the STI Common
      Stock
      included in the Stock Payment shall be paid out to the Sellers in accordance
      with Annex
      A (the
      “Closing
      Stock Payment”).
      The
      remainder of the Stock Payment (the “Escrow
      Amount”)
      shall
      be deposited with an escrow agent (the “Escrow
      Agent”)
      pursuant to the Escrow Agreement (as defined in Section 5.4).

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (iii) Working
      Capital Adjustment.
      If the
      Closing Date Working Capital, as finally determined pursuant to the procedures
      set forth in Section 2.1.3, is less than the Target Working Capital, but greater
      than or equal to the Minimum Working Capital, no adjustment to purchase price
      will be made under this Section 2.1.1(iii). If the Closing Date Working Capital,
      as finally determined pursuant to the procedures set forth in Section 2.1.3,
      is
      less than the Minimum Working Capital, within five business days after the
      Closing Date Working Capital and any adjustments thereto shall have become
      binding on the parties pursuant to the procedures set forth in Section 2.1.3,
      the Sellers, through the Sellers’ Representative (as defined in Section 9.15) or
      otherwise, shall pay the Purchaser the difference between the Minimum Working
      Capital and the Closing Date Working Capital in accordance with Section 2.2.4.
      If the Closing Date Working Capital, as finally determined pursuant to the
      procedures set forth in Section 2.1.3, is more than the Target Working Capital,
      within five business days after the Closing Date Working Capital and any
      adjustments thereto shall have become binding on the parties pursuant to the
      procedures set forth in Section 2.1.3, the Purchaser shall pay the Sellers
      the
      difference between the Target Working Capital and the Closing Date Working
      Capital in accordance with Section 2.2.3. Any amount paid pursuant to this
      Section 2.1.1(iii) shall be referred to as the “Working
      Capital Payment”.
      

    

    2.1.2 Certain
      Definitions.

    

    (i) “Working
      Capital”
shall
      mean the cash and/or other current assets of the Company which are realizable
      in
      one year or less (the “Current
      Assets”),
      reduced by the current liabilities of the Company which are payable in one
      year
      or less together with (without duplication) any liabilities under the Company’s
      senior credit line with Citizens’ Bank (the “Current
      Liabilities”),
      calculated in accordance with GAAP (as defined in Section 2.1.3).

    

    (ii) “Target
      Working Capital”
shall
      mean $1,502,083.00.

    

    (iii) “Minimum
      Working Capital”
shall
      mean $1,252,083.00

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (iv) “Closing
      Date Working Capital”
shall
      mean the Working Capital as of the Closing Date; provided, however, that
      inventory included within the Current Assets shall be valued at book value
      using
      the same methodology as the Company used in the preparation of its Balance
      Sheet
      (as defined in Section 3.4).

    

    2.1.3 Accounting
      Procedures.
      

    

    (i) As
      soon
      as practicable after the Closing Date, but in no event later than 60 days after
      the independent accounting firm then auditing the books of the Purchaser (the
      “Accountants”),
      shall
      have received from the Company all information, books and records reasonably
      requested by them in order to make the Closing Date Working Capital calculation
      described in Section 2.1.1(iii) above, the Purchaser shall cause the Accountants
      to prepare an audited balance sheet of the Company as of the Closing Date,
      prepared in accordance with generally accepted accounting principles
      (“GAAP”),
      together with a statement setting forth the Closing Date Working Capital as
      of
      the Closing Date and all adjustments to the balance sheet required to make
      the
      calculation of Closing Date Working Capital (the “Special
      Determination”
and
      such balance sheet referred to as the “Closing
      Date Balance Sheet”).
      If
      the Sellers’ Representative does not agree that the Special Determination
      correctly states the amount of Closing Date Working Capital, the Sellers’
Representative shall promptly (but not later than 45 days after the delivery
      of
      the Special Determination) give written notice to the Purchaser of any
      exceptions thereto (in reasonable detail describing the nature of the
      disagreement asserted). If the Sellers’ Representative and the Purchaser
      reconcile their differences, the Closing Date Working Capital calculation shall
      be adjusted accordingly and shall thereupon become binding, final and conclusive
      upon all of the parties hereto. If the Sellers’ Representative and the Purchaser
      are unable to reconcile their differences in writing within 20 days after
      written notice of exceptions is delivered to the Purchaser, the items in dispute
      shall be submitted to a mutually acceptable accounting firm (the “Independent
      Auditors”)
      for
      final determination, and the Closing Date Working Capital calculation shall
      be
      deemed adjusted in accordance with the determination of the Independent Auditors
      and shall become binding, final and conclusive upon all of the parties hereto.
      The Independent Auditors shall consider only the items in dispute and shall
      be
      instructed to act within 30 days (or such longer period as the Sellers’
Representative and the Purchaser may agree) to resolve all items in dispute.
      If
      the Sellers’ Representative does not give notice of any exception within 45 days
      after the delivery of the Closing Date Working Capital calculation or if the
      Sellers’ Representative gives written notification of its acceptance of the
      Closing Date Working Capital calculation prior to the end of such 45 day period,
      the Closing Date Working Capital calculation set forth in the Special
      Determination shall thereupon become binding, final and conclusive upon all
      of
      the parties hereto.

    

    (ii) In
      the
      event the Independent Auditors are for any reason unable or unwilling to perform
      the services required of them under this Section, then the Purchaser and the
      Sellers’ Representative shall agree to select another accounting firm to perform
      the services to be performed under this Section 2.1.3 by the Independent
      Auditors. For purposes of this Section 2.1, the term “Independent Auditors”
shall include such other accounting firm chosen in accordance with this clause
      (ii). 

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    2.1.4 Examination
      of Books and Records
      The
      books and records of the Company and the Purchaser shall be made available
      during normal business hours upon reasonable advance notice at the principal
      office of the Purchaser, to the parties, the Accountants and the Independent
      Auditors to the extent required to determine the calculations required under
      Section 2.1.

    

    Section
      2.2 Payment
      of the Purchase Price
      The
      Purchase Price shall be paid as follows:

    

    2.2.1 [INTENTIONALLY
      OMITTED] 

    

    2.2.2 Stock
      Payment.
      Within
      5 business days following the Closing, the Stock Payment shall be made, in
      accordance with Section 2.2.3 below, in STI Common Stock having an aggregate
      value of $2,900,000 based on the Current Market Price (as defined below) as
      of
      the Closing Date and in a number of shares of Series C Preferred Stock equal
      to
      the result of dividing $3,000,000 by the Current Market Price as of the Closing
      Date for the STI Common Stock and paid out as provided in accordance with
      Section 2.1.1(ii) and Annex
      A.
      The
      shares of STI Stock allocated to each Seller shall be rounded up or down to
      the
      nearest whole share. Prior to the Purchaser’s delivery to any Seller of any
      Purchase Price payment in shares of STI Stock, such Seller shall be required
      to
      deliver an Investment Representation Certificate (as defined in Section 5.7).
      For purposes of this Agreement, “Current
      Market Price”
shall
      mean, with respect to any date, the average of the daily closing bid prices
      of
      the STI Common Stock reported on the OTC Bulletin Board for each trading day
      during the period commencing 30 trading days before such date and ending on
      the
      last trading date prior to the applicable reference date; provided, however,
      the
      Current Market Price as of the Closing Date shall be $0.65 per share. The
      Working Capital Payment, if any, and any additional amount paid pursuant to
      Section 2.3 shall be deemed to include imputed interest to the extent required
      by the Internal Revenue Code of 1986, as amended (the “Code”).
      

    

    2.2.3 Delivery.
      The
      identity, address and ABA routing number of the bank, and account number and
      name of the account of Pepe & Hazard LLP is set forth on Annex
      B.
      By
      their execution and delivery of this Agreement, the Sellers direct the Purchaser
      (i) to make payment of the Working Capital Payment to the account of Pepe &
Hazard LLP on behalf of the Sellers, (ii) to deliver the certificates
      representing the Closing Stock Payment in the names of the Sellers to Pepe
&
Hazard LLP and (iii) to deliver the certificates representing the Escrow Amount
      to the account of Escrow Agent.

    

    2.2.4 Working
      Capital Payment.
      

    

    
      	 	
              (i)

            	
              To
                the Sellers.
                In the event that the Working Capital Payment is payable to the Sellers
                it
                shall be paid to the Sellers in cash in accordance with the provisions
                of
                Section 2.2.3 within ten (10) days after it is finally
                determined.

            

    

    

    
      	 	
              (ii)

            	
              To
                Purchaser.
                In the event that the Working Capital Payment is payable to the Purchaser
                it shall be paid to the Purchaser by the Escrow Agent from the Escrow
                Amount in accordance with the terms of the Escrow Agreement and this
                subsection within ten (10) days after it is finally determined. The
                number
                of shares of STI Common Stock to be returned to the Purchaser out
                of the
                escrow shall be based on the Current Market Price of the STI Common
                Stock
                as of the date the Closing Date Working Capital is finally determined
                in
                accordance with Section 2.1.

            

    

    

    
      
        
        

      

      
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    Section
      2.3 Stock
      Payment Adjustment.
      (a) In
      respect of any shares of STI Common Stock that are held as of the first
      anniversary of the Closing Date by any Seller or are then being held by the
      Escrow Agent on behalf of a Seller (collectively with respect to such Seller,
      “Retained
      Shares”),
      if
      the Current Market Price of the STI Common Stock as of the first anniversary
      of
      the Closing Date (the “Post-Closing
      Stock Price”)
      is
      less than the Current Market Price as of the Closing Date (the “Closing
      Stock Price”),
      and
      such difference represents more than 5% of the Closing Stock Price (the
“Stock
      Adjustment Threshold”),
      the
      Purchaser shall either, at its option:

    

    (i) issue
      additional shares of STI Common Stock (the “Additional
      Shares”)
      equal
      to the number determined by (x) multiplying (1) the Closing Stock Price by
      (2)
      the number of Retained Shares, then (y) dividing the result in (x) by the
      Post-Closing Stock Price and (z) subtracting from such amount the number of
      Retained Shares; or

    

    (ii) in
      lieu
      of issuance of the Additional Shares, pay an amount in cash equal to the result
      of (x) the number of Additional Shares multiplied by (y) the Post-Closing Stock
      Price.

    

    (b)
       If
      the
      Stock Adjustment Threshold described in Section 2.3(a) is not met, no payment
      or
      issuance of Additional Shares shall be required hereunder.

    

    (c) The
      provisions of Section 2.3(a) shall be appropriately adjusted in the event of
      a
      stock split, stock combination or stock dividend occurring prior to the first
      anniversary of the Closing Date. 

    

    Section
      2.4 Closing.
      The
      Closing of
      the
      transactions contemplated by this Agreement (the "Closing")
      shall
      take place simultaneously with the execution and delivery of this Agreement
      at
      10:00 A.M. on the date hereof, at
      the
      offices of Davis & Gilbert LLP, 1740 Broadway, New York, New York 10019
or
      at
      such other time and place as the Purchaser and the Sellers’ Representative may
      otherwise agree, or by the exchange of documents and instruments by mail,
      courier, e-mail, telecopy and wire transfer to the extent mutually acceptable
      to
      the Purchaser and the Sellers’ Representative (such date is herein referred to
      as the "Closing
      Date").
      The
      Closing is effective as of 11:59 PM as of the Closing Date.

    

    
      
        
        

      

      
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    ARTICLE
      III 

    

    REPRESENTATIONS
      OF THE SELLERS

    

    A. Each
      of
      the Sellers severally represents, warrants and agrees to and with the Purchaser
      as follows:

    

    Section
      3.1 Execution
      and Validity of Agreements; Restrictive Documents; Approvals and
      Consents.
      

    

    3.1.1 Execution
      and Validity. Such
      Seller has the full legal right and capacity to enter into this Agreement and
      perform its obligations hereunder. This Agreement has been duly and validly
      executed and delivered by such Seller and, assuming due authorization, execution
      and delivery by the Purchaser, constitutes a legal, valid and binding obligation
      of such Seller enforceable against such Seller in accordance with its terms,
      subject to laws of general application relating to bankruptcy, insolvency,
      and
      the relief of debtors and rules of law governing specific performance,
      injunctive relief or other equitable remedies. If such Seller is an entity,
      the
      execution and delivery by such Seller of this Agreement, the performance by
      such
      Seller of its obligations hereunder and the consummation of the transactions
      contemplated hereby have been duly authorized by all required corporate or
      company action on behalf of such Seller.

    

    3.1.2 Ownership.
      Such
      Seller is the true and lawful owner of the Purchased Interests and/or Purchased
      Warrants set forth opposite its name in Annex
      A to
      this
      Agreement and such ownership is free and clear of all mortgages, liens, security
      interests, pledges, encumbrances, claims, charges and restrictions of any kind
      or character (“Liens”).
      If
      such Seller is selling Purchased Interests, all of such Purchased Interests
      have
      been duly and validly authorized and issued and are fully paid, nonassessable
      and free of preemptive rights, with no personal liability attaching to the
      ownership thereof.

    

    3.1.3 No
      Options.
      Except
      as disclosed on Schedule
      3.1.3,
      there
      are no outstanding subscriptions, options, rights, warrants, calls, commitments
      or arrangements of any kind to acquire any of the Purchased Interests or
      Purchased Warrants owned by such Seller and there are no agreements or
      understandings with respect to the sale or transfer of such Purchased Interests
      or Purchased Warrants.

    

    3.1.4 No
      Restrictions.
      There is
      no action, suit, claim, or proceeding at law or in equity, on any arbitration
      or
      administrative or other proceeding, or any investigation or inquiry by any
      court,
      tribunal, arbitrator, authority, agency, commission, official or other
      instrumentality of the United States, any foreign country or any domestic or
      foreign state, county, city or other political subdivision (a “Governmental
      or Regulatory Authority”),
      and no
      legal, administrative or arbitration proceeding pending or, to such Seller’s
      Knowledge, threatened against such Seller or any of such Seller’s properties,
      rights or assets, with respect to the execution, delivery or performance of
      this
      Agreement or the transactions contemplated hereby or any other agreement entered
      into by such Seller in connection with the transactions contemplated
      hereby.

    

    
      
        
        

      

      
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    3.1.5 Non-Contravention,
      Approvals and Consents.
      The
      execution and delivery by such Seller of this Agreement, the performance by
      such
      Seller of its obligations hereunder and the consummation of the transactions
      contemplated hereby, will not (a) result in the violation by such Seller of
      any
      statute, law, rule, regulation or ordinance (collectively, “Laws”),
      or
      any judgment, decree, order, writ, permit or license (collectively,
“Orders”),
      of
      any Governmental or Regulatory Authority applicable to such Seller or any of
      its
      assets or properties, or (b) if the consents and notices set forth in
Schedule
      3.1.6
      are
      obtained or given, conflict with, result in a violation or breach of, constitute
      (with or without notice or lapse of time or both) a default under, require
      such
      Seller (except as set forth in Schedule
      3.1.6)
      to
      obtain any consent, approval or action of, make any filing with or give any
      notice to any Person pursuant to, result in or give to any Person any right
      of
      payment or reimbursement, termination, cancellation, modification or
      acceleration of, or result in the creation or imposition of any Liens upon
      any
      of the assets or properties of such Seller under, any of the terms, conditions
      or provisions of any note, bond, mortgage, security agreement, indenture,
      license, franchise, permit, concession, contract, lease or other instrument,
      obligation or agreement of any kind (collectively, “Instruments”)
      to
      which such Seller is a party or by which such Seller or any of its assets or
      properties is bound. 

    

    3.1.6 Approvals
      and Consents.
      Except
      as set forth on Schedule
      3.1.6,
      no
      consent, approval, authorization or action of, registration or filing with,
      or
      notice to any Governmental or Regulatory Authority or other public or private
      third party is necessary or required under any of the terms, conditions or
      provisions of any Law or Order of any Governmental or Regulatory Authority
      or
      any Instrument to which such Seller is a party or its assets or properties
      are
      bound in connection with the execution and delivery by such Seller of this
      Agreement, the performance by such Seller of its obligations hereunder or the
      consummation of the transactions contemplated hereby.

    

    B. The
      Company represents, warrants and agrees to and with the Purchaser as
      follows:

    

    Section
      3.2 Existence
      and Good Standing.
      The
      Company is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of the State of Delaware, with the full limited
      liability company power and authority to own and operate its properties and
      to
      conduct its business all as and in the places where such properties are now
      owned or operated or such business is now being conducted. The Company is duly
      qualified, licensed or admitted to do business and is in good standing in those
      jurisdictions set forth on Schedule
      3.2,
      which
      are the only jurisdictions in which the ownership, use or leasing of its assets
      and properties, or the conduct or nature of its business, makes such
      qualification, licensing or admission necessary.

    

    Section
      3.3 Subsidiaries
      and Investments. 

    

    3.3.1 Subsidiaries
      and Investments.
      Except
      as set forth in Schedule
      3.3.1,
      the
      Company does not own any capital stock or other equity or owner-ship or
      proprietary interest in any corporation, limited liability company, association,
      trust, joint venture or other entity.

    

    
      
        
        

      

      
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    3.3.2 Equity
      Interests.
      The
      Members collectively own
      of
      record and beneficially have valid title to
      100% of
      the Regular Units and CAUs of the Company in the amounts set forth on
Schedule
      3.3.2. Schedule 3.3.2
      sets
      forth: (i) the number of authorized Regular Units and CAUs of the Company;
      and
      (ii) the ownership of all issued and outstanding Regular Units and CAUs of
      the
      Company. All such Regular Units and CAUs have been duly authorized and validly
      issued, are fully paid and non-assessable and have not been issued in violation
      of any preemptive rights of members of the Company. No other units of or other
      equity interests in the Company are authorized or outstanding. Except as set
      forth on Schedule
      3.3.2,
      there
      are no outstanding options, warrants, rights, calls, commitments, conversion
      rights, rights of exchange, plans or other agreements of any character
      (collectively, “Options”)
      providing for the purchase, issuance or sale of any equity interests in the
      Company. Each of the Purchased Warrants have been duly authorized and validly
      issued and each certificate in respect thereof represents as of the Closing
      Date
      the right to purchase the number of Regular Units set forth opposite the
      Warrantholders’ name on Annex
      A
      hereto
      at the exercise price set forth above such Warrant.

    

    Section
      3.4 Financial
      Statements.
      Schedule 3.4(A)
      sets
      forth the following financial statements of the Company: (A) an unaudited
      internally prepared balance sheet of the Company as of December 31, 2005 and
      the
      related audited statements of income and cash flows for the twelve months then
      ended; and (B) an unaudited internally prepared balance sheet of the Company
      as
      of June 30, 2006 (the “Balance
      Sheet Date”)
      and
      the related unaudited statements of income and cash flows for the six months
      then ended (the unaudited balance of the Company as of June 30, 2006, including
      the footnotes thereto, is hereinafter referred to as the “Balance
      Sheet”).
      Such
      financial statements, including the footnotes thereto, have been prepared in
      accordance with GAAP consistently applied throughout the period indicated;
      provided,
      however,
      inventory has been reported on a consistent basis from period to period during
      the Company’s existence in accordance with the Company’s good faith belief as to
      value, which is not necessarily consistent with GAAP. Such balance sheets fairly
      present the financial condition of the Company at the respective dates thereof
      and, except as indicated therein, reflect all claims against and all debts
      and
      liabilities of the Company, fixed or contingent, as at the respective dates
      thereof, required to be shown thereon under GAAP, and the related statements
      of
      income and cash flows fairly present the results of operations of the Company
      for the respective periods indicated, subject to in the case of interim
      financial statements, to normal recurring year end adjustments described on
      Schedule
      3.4(B).
      

    

    Section
      3.5 Books
      and Records.
      Except
      as set forth on Schedule
      3.5,
      all
      accounts, books, ledgers and official and other records material to the business
      of the Company maintained by or on behalf of the Company of whatsoever kind
      have
      been properly and accurately kept and com-pleted in all material respects,
      and
      there are no material inaccuracies or discrepancies of any kind contained or
      reflected therein. Except as set forth on Schedule 3.5,
      the
      Company does not have any of its records, systems, controls, data or information
      recorded, stored, maintained, operated or otherwise wholly or partly dependent
      on or held by any means (including any electronic, mechanical or photographic
      process, whether computerized or not) which (including all means of access
      thereto and therefrom) are not under the exclusive ownership and possession
      of
      the Company.

    

    
      
        
        

      

      
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    Section
      3.6 Tangible
      Personal Property; Encumbrances.
      The
      Company has good and valid title to, or enforceable leasehold interests in
      or
      valid rights under contract to use, all the material properties and assets
      owned
      or used by it (personal, tangible and intangible), including, without limitation
      (a) all the properties and assets reflected in the Balance Sheet, and (b) all
      the properties and assets purchased or otherwise contracted for by the Company
      since the Balance Sheet Date (except for properties and assets reflected in
      the
      Balance Sheet or acquired or otherwise contracted for since the Balance Sheet
      Date that have been sold or otherwise disposed of in the ordinary course of
      business), in each case free and clear of all Liens, except for Liens set forth
      on Schedule 3.6.
      The
      property, plant and equipment owned or otherwise contracted for by the Company
      is in a state of good maintenance and repair and is adequate and suitable in
      all
      material respects for the purposes for which they are presently being used.
      

    

    Section
      3.7 Real
      Property.

    

    3.7.1 Owned
      Real Property. The
      Company does not own a freehold interest in any real property or any option
      or
      right of first refusal or first offer to acquire real property.

    

    3.7.2  Leased
      Real Property.
      Schedule
      3.7.2 sets
      forth an accurate and complete list of all leases and subleases of real property
      to which the Company is a party (as lessee, lessor, sublessee or sublessor),
      including, without limitation, leases which the Company has either subleased
      or
      assigned to a third party and as to which the Company remains liable (such
      leases and subleases are collectively referred to as the “Real
      Property Leases”).
      Each
      Real Property Lease set forth on Schedule 3.7.2
      (or
      required to be set forth on Schedule 3.7.2)
      is
      valid, binding and in full force and effect; all rents and additional rents
      and
      other sums, expenses and charges due on each such lease have been paid; and
      the
      lessee has been in peaceable possession since the commencement of its original
      possession under such lease and no waiver, indulgence or postponement of the
      lessee’s obligations thereunder has been granted by the lessor. Except as set
      forth in Schedule 3.7.2,
      there
      exists no default or event of default by the Company or, to the Knowledge of
      the
      Company, by any other party to such Real Property Lease, or occurrence,
      condition or act (including the purchase of the Purchased Interests and
      Purchased Warrants hereunder) which, with the giving of notice, the lapse of
      time or the happening of any further event or condition, would become a default
      or event of default by the Company under such Real Property Lease, and there
      are
      no outstanding claims of breach or indemnification or notice of default or
      termination of any Real Property Lease. The real property leased by the Company
      is in a state of good maintenance and repair and is adequate and suitable for
      the purposes for which it is presently being used, and to the Knowledge of
      the
      Company, there are no material repair or restoration works likely to be required
      in connection with any of the leased real properties. Except as set forth on
      Schedule 3.7.2,
      the
      Company is in physical possession and actual and exclusive occupation of the
      whole of each of its leased properties. The Company does not owe any brokerage
      commission with respect to any Real Property Leases.

    

    
      
        
        

      

      
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    Section
      3.8 Contracts.
      Schedule 3.8
      hereto
      sets forth an accurate and complete list of the following agreements to which
      the Company is a party (and any amendments, modifications or supplements
      thereto, whether oral or written): (a) all Plans (as such term is defined in
      Section 3.19); (b) any personal property lease with a fixed annual rental of
      $10,000 or more; (c) any contract relating to capital expenditures which
      involves payments of $25,000 or more in any single or series of related
      transactions; (d) any loan or advance to, or investment in, any other Person
      (as
      defined in Section 9.3), or commitments for any of the same, in an amount
      exceeding $10,000 or any contract relating to the making of any such loan,
      advance or investment; (e) any guarantee or other contingent liability in
      respect of any indebtedness or obligation of any other Person in an amount
      exceeding $10,000 (other than the endorsement of negotiable instruments for
      collection in the ordinary course of business); (f) any instrument or
      arrangement evidencing or related in any way to indebtedness for borrowed money
      or money to be borrowed, whether directly or indirectly, by way of loan,
      purchase money obligation, conditional sale, purchase or otherwise; (g) any
      management service, employment, consulting or any other similar type of contract
      or agreement relating to services to be provided to the Company which is not
      cancelable by the Company without penalty or other financial obligation within
      30 days; (h) any contract limiting the Company’s freedom to engage in any line
      of business or to compete with any other Person, including agreements limiting
      the Company’s ability to take on competitive accounts after the termination
      thereof; (i) any contract (not covered by another subsection of this Section
      3.8) which involves $25,000 or more over the unexpired term thereof and is
      not
      cancelable by the Company without penalty or other financial obligation within
      30 days; (j) any collective bargaining agreement; (k) any contract with any
      of
      the Company’s officers, directors or managers or the Sellers (including, without
      limitation, indemnification agreements); (l) any secrecy or confidentiality
      agreement (other than standard confidentiality agreements in computer software
      license agreements or agreements with customers entered into in the ordinary
      course of business); (m) any licensing or franchise agreement (other than
      shrink-wrap license agreements for “off-the-shelf” third party computer software
      not included within the Company’s products or services); (n) any agreement with
      a customer which generates annual revenues of $25,000 or more; and (o) any
      joint
      venture agreement involving a sharing of profits not covered by (a) through
      (n)
      above. Each contract set forth on Schedule 3.8
      (or
      required to be set forth on Schedule 3.8)
      is in
      full force and effect, and there exists no default or event of default by the
      Company or, to the Knowledge of the Company, by any other Person, or occurrence,
      condition, or act (including the purchase of the Purchased Interests hereunder)
      which, with the giving of notice, the lapse of time or the happening of any
      other event or condition, would become a default or event of default thereunder
      by the Company, and there are no outstanding claims of breach or indemnification
      or notice of default or termination of any such contracts.

    

    Section
      3.9 Non-Contravention;
      Approvals and Consents. 

    

    3.9.1 Non-Contravention.
      The
      execution, delivery and performance by the Sellers of their obligations
      hereunder and the consummation of the transactions contemplated hereby, will
      not
      (a) violate, conflict with or result in the breach of any provision of the
      charter documents (or other comparable documents) of the Company, or (b) result
      in the violation by the Company of any Laws or Orders of any Governmental or
      Regulatory Authority applicable to the Company or any of its assets or
      properties, or (c) if the consents and notices set forth in Schedule
      3.9.2
      are
      obtained or given, conflict with, result in a violation or breach of, constitute
      (with or without notice or lapse of time or both) a default under or (except
      as
      set forth in Schedule
      3.9.2)
      require
      the Company to obtain any consent, approval or action of, make any filing with
      or give any notice to any Person pursuant to, or result in or give to any Person
      any right of payment or reimbursement, termination, cancellation, modification
      or acceleration of, or result in the creation or imposition of any Lien upon
      any
      of the assets or properties of the Company under, any of the terms, conditions
      or provisions of any Instruments to which the Company is a party or by which
      the
      Company or any of its assets or properties is bound. 

    

    
      
        
        

      

      
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    3.9.2 Approvals
      and Consents.
      Except
      as set forth on Schedule
      3.9.2,
      no
      consent, approval, authorization or action of, registration or filing with,
      or
      notice to any Governmental or Regulatory Authority or other public or private
      third party is necessary or required under any of the terms, conditions or
      provisions of any Law or Order of any Governmental or Regulatory Authority
      or
      any Instrument to which the Company is a party or by which its assets or
      properties are bound in connection with the execution and delivery of this
      Agreement by the Sellers, the performance by the Sellers of their obligations
      hereunder or the consummation of the transactions contemplated
      hereby.

    

    Section
      3.10 Litigation.
      Except
      as set forth on Schedule 3.10,
      there
      is no action, suit, claim, investigation or proceeding, at law or in equity,
      or
      any arbitration or administrative or other proceeding, by or before any
      Governmental or Regulatory Authority, pending or, to the Knowledge of the
      Company, threatened, against the Company or any of the Sellers with respect
      to
      the execution, delivery or performance of this Agreement or the transactions
      contemplated hereby or any other agreement entered into by the Company or any
      of
      the Sellers in connection with the transactions contemplated hereby or against
      or affecting the Company or its properties, rights or assets; and to the
      Knowledge of the Company, no act, fact, circumstance, event or condition
      occurred or exists which is a basis for any such action, suit, claim, proceeding
      or investigation. The Company is not subject to any judgment, order or decree
      entered in any action, suit, claim, proceeding or investigation.

    

    Section
      3.11 Taxes.
      The
      Company has timely filed, or caused to be filed (taking into account any valid
      extensions of due dates), completely and accurately, all federal, state, local
      and foreign tax or information returns (including estimated tax returns)
      required under the statutes, rules or regulations of such jurisdictions to
      be
      filed by the Company with respect to income, accumulated earnings, franchise,
      capital stock, employees’ income withholding, back-up withholding, withholding
      on payments to foreign persons, social security, unemployment, disability,
      real
      property, personal property, sales, use, excise, transfer and other taxes
      (including interest, penalties or additions to tax in respect of the foregoing)
      whether disputed or not (all of the foregoing collectively referred to as
“Taxes”).
      All
      Taxes shown on said returns to be due and all other Taxes due and owing (whether
      or not shown on any return) have been paid in full and all additional
      assessments received prior to the Closing Date have been paid in full or are
      being contested in good faith, in which case, such contested assessments are
      set
      forth on Schedule
      3.11.
      The
      amount set up as an accrual for Taxes on the Balance Sheet is sufficient for
      the
      payment of all unpaid Taxes of the Company, whether or not disputed, for all
      periods ended on and prior to the date thereof. Since the Balance Sheet Date,
      the Company has not incurred any liabilities for Taxes other than in the
      ordinary course of business. The Company has delivered to the Purchaser correct
      and complete copies of all federal and state income tax returns filed with
      respect to the Company for all taxable periods beginning on or after January
      1,
      2001. Except as set forth on Schedule
      3.11,
      none of
      the federal, state or local tax returns of the Company (or the Members with
      respect to any items of income or gain) has ever been audited by the Internal
      Revenue Service or any other Governmental or Regulatory Authority. No
      examination of any return of the Company is currently in progress, and the
      Company has not received notice of any proposed audit or examination. No
      deficiency in the payment of Taxes by the Company for any period has been
      asserted in writing by any taxing authority and remains unsettled at the date
      of
      this Agreement. The Company has not made an election under Section 338 of the
      Code. The Company has not entered into any agreement, waiver or other
      arrangement providing for any extension of time with respect to the assessment
      or collection of any Taxes. The Company has not been a member of an affiliated
      group filing consolidated federal income tax returns nor has it been included
      in
      any combined consolidated or unitary state or local income tax return. The
      Company is not a party to any tax allocation or tax sharing agreement nor does
      it have any contractual obligation to indemnify any other person with respect
      to
      Taxes. The Company has not been a United States real property holding
      corporation within the meaning of Section 897(c)(2) of the Code within the
      period specified in Section 897(c)(1)(A)(ii) of the Code. The Company will
      not
      be required as a result of a change in accounting method for any period ending
      on or before the Closing Date or as a result of the transactions contemplated
      herein to include any adjustment under Section 481 of the Code (or any similar
      provision of state, local or foreign income tax law) in income for any period
      ending after the Closing Date. Neither
      the Purchaser nor the Company will be required to include any item of income
      in,
      or exclude any item of deduction from, taxable income for any taxable period
      (or
      portion thereof) ending after the Closing Date as a result of any: (i) “closing
      agreement” as described in Code Section 7121 (or any corresponding or similar
      provision of state, local, or foreign income Tax law); (ii) installment sale
      or
      open transaction disposition made on or prior to the Closing Date; or (iii)
      prepaid amount received on or prior to the Closing Date.

    

    
      
        
        

      

      
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    Section
      3.12 Liabilities.
      Except
      as set forth in the Balance Sheet or referred to in the footnotes thereto,
      the
      Company does not have any outstanding claims, liabilities, obligations or
      indebtedness of any nature whatsoever (collectively “Liabilities”),
      whether accrued, absolute or contingent, determined or undetermined, asserted
      or
      unasserted, and whether due or to become due, other than (i) Liabilities
      specifically disclosed in Schedule
      3.12
      hereto;
      (ii) Liabilities under contracts, purchase orders and other agreements,
      arrangements and commitments of the type required to be disclosed by the Company
      on any Schedule and so disclosed or which because of the dollar amount or other
      qualifications are not required to be listed on such Schedule; and (iii)
      Liabilities incurred since the Balance Sheet Date in the ordinary course of
      business and consistent with past practice not involving borrowings by the
      Company. Schedule 3.8
      sets
      forth a list of all current arrangements of the Company for borrowed money
      and
      all outstanding balances as of the Closing Date with respect thereto. The
      Company is not in default in respect of the terms or conditions of any
      borrowings.

    

    Section
      3.13 Insurance.
      Schedule
      3.13
      contains
      a true and complete list (including the names and addresses of the insurers,
      the
      names of the Persons to whom such insurance policies have been issued, the
      expiration dates thereof, the annual premiums and payment terms thereof, whether
      it is a “claims made” or an “occurrence” policy and a brief description of the
      interests insured thereby) of all liability, property, workers’ compensation and
      other insurance policies currently in effect that insure the property, assets
      or
      business of the Company or its employees (other than self-obtained insurance
      policies by such employees). Each insurance policy listed on Schedule
      3.13
      that
relates
      to a Plan to be assumed by the Purchaser (“Assumed
      Policies”),
      is
      valid
      and binding and in full force and effect, all premiums due thereunder have
      been
      paid and the Company has not received any notice of cancellation, termination or
      default in respect of any such policy. Neither the Company nor, to the Knowledge
      of the Company, the Person to whom such policy has been issued, has received
      notice that any insurer under any Assumed Policies is denying liability with
      respect to a claim thereunder or defending under a reservation of rights clause.
      Except as set forth on Schedule
      3.13,
      within
      the last two years the Company has not filed for any claims exceeding $25,000
      against any Assumed Policies, exclusive of automobile and health insurance
      policies. None
      of
      the Assumed Policies shall lapse or terminate by reason of the transactions
      contemplated by this Agreement and all such policies shall continue in effect
      after the Closing Date for the benefit of the Purchaser. The Company has not
      received any notice of cancellation of any Assumed Policy. The Company has
      not
      received written notice from any of its insurance carriers that the premiums
      in
      respect of any Assumed Policy will be materially increased in the future. The
      Company has not been refused any insurance or required to pay higher than normal
      or customary premiums, nor has its coverage been limited by any insurance
      carrier to which it has applied for insurance during the last three
      years.

    

    
      
        
        

      

      
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    Section
      3.14 Intellectual
      Properties.
      Schedule
      3.14
      hereto
      contains an accurate and complete list of (a) all patents, patent applications,
      registered trademarks, applications for registered trademarks, registered
      service marks, applications for registered service marks, logos, registered
      copyrights, applications for registered copyrights and Internet domain names
      which are used in connection with the operation of the Company and (b) all
      unregistered trademarks, service marks and copyrights which are used in
      connection with the operation of the Company and (c) all agreements under which
      any Person has granted a license for any Intellectual Property to the Company
      (other than license agreements for “off the shelf” third party computer software
      not included within the Company’s products or services). The Company has all
      right, title and interest in, has a valid and binding license to use, or has
      the
      requisite permission and authority to use all Intellectual Property used in
      the
      conduct of its business. No claim of infringement or misappropriation of
      Intellectual Property is or has been pending or, to the Knowledge of the
      Company, threatened against the Company and, to the Knowledge of the Company,
      the Company is not infringing or misappropriating any Intellectual Property
      of
      any Person. Except as provided in Schedule
      3.14,
      the
      Company has not expressly granted any license, franchise or permit in effect
      on
      the date hereof to any Person to use any of the trade names or any of the
      trademarks owned by it. As used in this Agreement, the term “Intellectual
      Property”
means
      patents and patent rights, trademarks and trademark rights, tradenames and
      tradename rights, service marks and service mark rights, service names and
      service name rights, copyright and copyright rights, trade secrets and trade
      secret rights, rights of privacy and publicity, and other proprietary
      intellectual property and personal rights and all pending applications for
      and
      registrations of any of the foregoing.

    

    Section
      3.15 Compliance
      with Laws; Permits

    

    3.15.1 Compliance.
      The
      Company is, and the Business has been conducted, in compliance with all
      applicable Laws and Orders including without limitation, (a) all Laws and Orders
      promulgated by any Governmental or Regulatory Authority, except as would not
      reasonably be expected to have a Material Adverse Effect (as defined below)
      (exclusive of Environmental Laws and Orders (as defined in Section
      3.15.3(c)(ii)); and (b) all Laws and Orders relating to labor, civil rights,
      and
      occupational safety and health laws, worker’s compensation, employment and
      wages, hours and vacations, or pay equity. The Company has not been charged
      with, and, to the Knowledge of the Company, has not been threatened with and
      is
      not under any investigation with respect to, any charge concerning any violation
      of any Laws or Orders (exclusive of Environmental Laws and Orders. For purposes
      of this Agreement, “Material
      Adverse Effect”
shall
      mean any material and adverse effect on the assets, liabilities, results of
      operations, business, prospects or condition, financial or otherwise, of the
      Company or the Business.

    

    3.15.2 Permits.
      The
      Company has all licenses and permits and other governmental certificates,
      authorizations and approvals (collectively, “Permits”)
      required by a Governmental or Regulatory Authority for the operation of the
      Business and the use of its properties as presently operated or used, except
      where the failure to have such Permits would not reasonably be expected to
      have
      a Material Adverse Effect. All such Permits are set forth on Schedule
      3.15.2.
      All of
      the Permits are in full force and effect and no action or claim is pending,
      nor,
      to the Knowledge of the Company, threatened, to revoke or terminate any of
      such
      Permits or declare any such Permits invalid in any material
      respect.

    

    
      
        
        

      

      
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    3.15.3 Environmental
      Protection.

    

    (a) Compliance.
      The
      Company is in compliance with all applicable Environmental Laws and Orders
      and
      has operated its business in compliance with all Environmental Laws and Orders.
      Except as set forth on Schedule
      3.15.3,
      the
      Company has not received any communication from any Governmental or Regulatory
      Authority that alleges that the Company is not in compliance with applicable
      Environmental Laws and Orders. The Company does not have any liability under
      any
      existing Environmental Law and Order and has not been issued any order, Notice
      of Violation or compliance order or any other form of communication from any
      federal, state or local agency establishing any obligation to remedy any
      Environmental Condition (as defined in Section 3.15.3(c)(v) below). There
      exists no Environmental Condition with respect to the business currently or
      previously operated by the Company, or to the Knowledge of the Company, with
      respect to any property leased by the Company pursuant to the Real Property
      Leases (the “Leased
      Real Property”).
      All
      operations at the facility involving any Hazardous Material have been conducted
      in compliance with all applicable Environmental Laws and Orders. To the
      Knowledge of the Company, no Hazardous Material has migrated from other
      properties upon, about, or beneath the Leased Real Property. The Company and
      its
      predecessors have not received (i) any request for information, notice, demand
      letter or notice of a legal proceeding, or is subject to a pending or ongoing
      investigation, with respect to any Environmental Condition relating to any
      of
      the Leased Real Property, or any facilities or operations thereon or (ii) any
      notice under the citizen suit or contribution provision of any Environmental
      Law
      and Order in connection with any of the Leased Real Property, or any facilities
      or operations thereon. The Company has delivered to the Purchaser all documents
      and records in possession or control of the Company or any of its affiliates
      concerning Environmental Conditions at the Leased Real Property, or any
      facilities or operations thereon, whether generated by the Company or any other
      Person, including without limitation environmental audits, environmental risk
      assessments or site assessments of any of the Leased Real Property and/or any
      adjacent property or any property in the vicinity of any of the Leased Real
      Property owned or operated by the Company or any other Person, documentation
      regarding off-site disposal of Hazardous Materials, spill control plans and
      environmental agency reports and correspondence.

    

    (b) Environmental
      Claims; Judgments.
      There
      is no Environmental Claim (as defined in Section 3.15.3(c)(i) below) pending,
      or
      to the Knowledge of the Company, threatened (i) against the Company, or
      (ii) against any real or personal property or operations that the Company
      now or previously owned, leased, managed or operated, in whole or in part.
      The
      Company has not entered into or agreed to any consent decree or order, nor
      is
      subject to any judgment, decree or judicial order, in each case, relating to
      compliance with any Environmental Law and Order or to investigation or cleanup
      of Hazardous Materials under any Environmental Law and Order. 

    

    (c) As
      used
      in this Agreement:

    

    (i) “Environmental
      Claim”
means
      any and all administrative, regulatory or judicial actions, suits, demands,
      demand letters, directives, claims, Liens, investigations, proceedings or
      notices of noncompliance or violation by any Person or entity (including any
      Governmental or Regulatory Authority) alleging potential liability (including,
      without limitation, potential responsibility for or liability for enforcement
      costs, investigatory costs, cleanup costs, governmental response costs, removal
      costs, remedial costs, natural resources damages, property damages, personal
      injuries, fines or penalties) arising out of, based on or resulting from (A)
      the
      presence, or Release (as defined below) or threatened Release into the
      environment, of any Hazardous Materials at any location, whether or not owned,
      operated, leased or managed by the Company or any of its subsidiaries; or
      (B) circumstances forming the basis of any violation, or alleged violation,
      of any Environmental Law and Order; or (C) any and all claims by any third
      party
      seeking damages, contribution, indemnification, cost recovery, compensation
      or
      injunctive relief resulting from the presence or Release of any Hazardous
      Materials. 

    

    
      
        
        

      

      
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    (ii) “Environmental
      Laws and Orders”
means
      all federal, state, local laws, rules, ordinances and regulations, judgment,
      decree, order, writ, permit or license relating to pollution, the environment
      (including, without limitation, ambient air, surface water, groundwater, land
      surface or subsurface strata) or protection of natural resources or human health
      as it relates to the environment including, without limitation, laws and
      regulations relating to Releases or threatened Releases of Hazardous Materials,
      or otherwise relating to the manufacture, processing, distribution, use,
      treatment, storage, disposal, transport or handling of Hazardous
      Materials.

    

    (iii) “Hazardous
      Materials”
means
      (A) any petroleum or petroleum products, radioactive materials, and (B) any
      chemicals, materials or substances which are regulated pursuant to any
      Environmental Law and Order including (but not limited to) the Resource
      Conservation and Recovery Act, 42 U.S.C. 6901 et
      seq.,
      and the
      Toxic
      Substance Control Act 15 U.S.C. 2601 et
      seq.

    

    (iv) “Release”
means
      any release, spill, emission, leaking, injection, deposit, disposal, discharge,
      dispersal, leaching or migration into the atmosphere, soil, surface water,
      groundwater or property.

    

    (v) “Environmental
      Condition”
means
      a
      condition with respect to the environment, which may result in any Losses to
      the
      Company. 

    

    Section
      3.16 Customer
      Relations. Schedule 3.16
      sets
      forth for the Company: (a) the ten largest customers (measured by revenue)
      as at
      December 31, 2005 and the revenue from each such customer and from all customers
      (in the aggregate) for the calendar year ended December 31, 2005; and (b) the
      customers under contract as of June 30, 2006 projected to be the ten largest
      customers (measured by revenue) based on the Company’s current profit plan for
      the calendar year ending December 31, 2006, together with the estimated revenue
      for each such customer and all customers (in the aggregate) for such calendar
      year. The Company does not warrant that the estimated projected revenue set
      forth on Schedule
      3.16
      will
      prove to be accurate; provided, however, the Company does represent that they
      were made in good faith and upon a reasonable basis. No customer of the Company
      identified pursuant to (a) or (b) above has advised the Company in writing
      that
      it (x) is terminating or considering terminating the handling of its business
      by
      the Company, as a whole or in respect of any particular project or service;
      or
      (y) is planning to reduce its future spending with the Company in any material
      manner, and to the Knowledge of the Company (without making any inquiry of
      any
      customers), no such customer has orally advised the Company of any of the
      foregoing events.

    

    Section
      3.17 Accounts
      Receivable; Work-in-Process; Accounts Payable.
      The
      amount of all work-in-process, accounts receivable, unbilled invoices (including
      without limitation unbilled invoices for services and out-of-pocket expenses)
      and other debts due or recorded in the records and books of account of the
      Company as being due to the Company and reflected on the Balance Sheet represent
      or will represent valid obligations arising from services performed by the
      Company in the ordinary course of business, will be good and collectible in
      full
      in the ordinary course of business (less the amount of any provision, reserve
      or
      similar adjustment therefore reflected on the Balance Sheet and the Closing
      Date
      Balance Sheet) and will not be subject to any counterclaim or set off (except
      to
      the extent of any provision, reserve or similar adjustment therefore reflected
      on the Balance Sheet and the Closing Date Balance Sheet). There has been no
      material change since the Balance Sheet Date in the amount or aging of the
      work-in-process, accounts receivable or other debts due to the Company or the
      reserves with respect thereto, or accounts payable of the Company, in each
      case
      other than in the ordinary course of business or as set forth on Schedule
      3.23.

    

    
      
        
        

      

      
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    Section
      3.18 Employment
      Relations.
      (a) The
      Company is not engaged in any unfair labor practice; (b) no unfair labor
      practice complaint against
      the Company is pending before any Governmental or Regulatory Authority; (c)
      there is no organized labor strike, dispute, slowdown or stoppage actually
      pending or, to the Knowledge of the Company, threatened against or involving
      the
      Company; (d) there are no labor unions representing or, to the Knowledge of
      the
Company,
      attempting to represent the employees of the Company; (e) no claim or grievance
      nor any arbitration proceeding arising out of or under any collective bargaining
      agreement is pending and, to the Knowledge of the Company, no such claim or
      grievance has been threatened; (f) no collective bargaining agreement is
      currently being negotiated by the Company; (g) the Company has not experienced
      any work stoppage or similar organized labor dispute during the last three
      years; and (h) the Company does not engage any contractors or subcontractors
      who
      may be construed by the Internal Revenue Service as employees of the Company.
      There is no legal action, suit, proceeding or claim pending or, to the Knowledge
      of the Company, threatened between the Company and any of its employees, former
      employees, agents, former agents, job applicants or any association or group
      of
      any of employees, except as set forth on Schedule
      3.10.

    

    Section
      3.19 Employee
      Benefit Matters. 

    

    3.19.1 List
      of Plans.
      Schedule 3.19.1
      sets
      forth an accurate and complete list of all employee benefit plans (as defined
      in
      Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”))
      and
      all bonus, incentive, deferred compensation, retiree medical or life insurance,
      supplemental retirement, severance or other benefit plans, stock option,
      restricted stock, phantom stock, or other equity incentive plans, programs
      or
      arrangements, and all termination, severance or other contracts or agreements,
      whether formal or informal, whether or not set forth in writing, whether
      covering one person or more than one person, and whether or not subject to
      any
      of the provisions of ERISA, which are maintained, contributed to or sponsored
      by
      the Company for the benefit of any employee or which otherwise cover any
      employee or former employee of the Company (each item so listed on Schedule 3.19.1
      being
      referred to herein individually, as a “Plan”
and
      collectively, as the “Plans”).
      The
      Company has delivered to the Purchaser a complete and accurate copy (where
      applicable) of (i) each written Plan and descriptions of any unwritten Plan
      (including all amendments thereto whether or not such amendments are currently
      effective), (ii) each summary plan description and summary of material
      modifications relating to a Plan, (iii) each trust agreement or other funding
      arrangement with respect to each Plan, including insurance contracts, (iv)
      the
      most recently filed Internal Revenue Service Form 5500 relating to each Plan
      (if
      any), and (v) the most recently received Internal Revenue Service determination
      letter or opinion letter for each Plan and (vi) the most recently prepared
      actuarial reports and the three most recently prepared financial statements,
      if
      applicable, in connection with each Plan. Except as set forth on Schedule 3.19.1,
      the
      Company has not expressly or impliedly made any commitment, whether legally
      enforceable or not, (i) to create or cause to exist any other employee benefit
      plan, program or arrangement or (ii) to modify, change or terminate any
      Plan.

    

    
      
        
        

      

      
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    3.19.2 Severance.
      Except
      as set forth on Schedule 3.19.2,
      none of
      the Plans, or any employment agreement or other contract to which the Company
      is
      a party or bound, provides for the payment of or obligates the Company to pay
      separation, severance, termination or similar-type benefits to any Person or
      obligates the Company to pay separation, severance, termination or similar-type
      benefits contingent upon any transaction contemplated by this Agreement or
      contingent upon a change in the ownership or effective control of the Company
      or
      the ownership of a substantial portion of the assets of the Company within
      the
      meaning of such term under Section 280G of the Code.

    

    3.19.3 Multi-Employer
      Plans.
      Neither
      the Company nor any ERISA Affiliate (as herein defined) has maintained,
      contributed to or participated in a multi-employer plan (within the meaning
      of
      Section 3(37) or 4001(a)(3) of ERISA or a multiple employer plan subject to
      Sections 4063 and 4064 of ERISA) nor has any obligations or liabilities,
      including withdrawal or successor liabilities, regarding any such plan. As
      used
      in this Agreement, the term “ERISA Affiliate” means any Person that, together
      with the Company, is considered a “single employer” pursuant to Section 4001(b)
      of ERISA.

    

    3.19.4 Welfare
      Benefit Plans.
      Schedule
      3.19.1
      sets
      forth a complete and accurate list of each Plan which provides or promises,
      medical, retiree medical, disability or life insurance benefits to any current
      or former employee, officer or director of the Company. Except as set forth
      on
Schedule
      3.19.4,
      the
      Company has expressly reserved the right, in all Plan documents relating to
      welfare benefits provided to employees, former employees, officers, directors
      and other participants and beneficiaries, to amend, modify or terminate at
      any
      time the Plans which provide for welfare benefits and the Company is not aware
      of any fact, event or condition that could reasonably be expected to restrict
      or
      impair such right.

    

    3.19.5 Administrative
      Compliance.
      Each
      Plan is now and has been operated in all material respects in accordance with
      its terms and with the requirements of all applicable law, including, without
      limitation, ERISA, the Health Insurance Portability and Accountability Act
      of
      1996, the Code, the Age Discrimination in Employment Act, the Family and Medical
      Leave Act, the Americans with Disabilities Act, the Equal Pay Act, and Title
      VII
      of the Civil Rights Act of 1964, and the regulations and authorities published
      thereunder. The Company performed all material obligations required to be
      performed by it under, is not in any respect in default under or in violation
      of, and the Company has no Knowledge of any default or violation by any party
      to, any Plan. Except as set forth on Schedule
      3.10,
      no
      legal action, suit, audit, investigation or claim is pending or threatened,
      with
      respect to any Plan (other than claims for benefits in the ordinary course)
      and,
      except as set forth on Schedule
      3.19.5,
      no
      fact, event or condition exists that would be reasonably likely to provide
      a
      legal basis for any such action, suit, audit, investigation or claim. Except
      as
      set forth on Schedule
      3.19.5,
      all
      reports, disclosures, notices and filings with respect to such Plans required
      to
      be made to employees, participants, beneficiaries, alternate payees and
      government agencies have been timely made or an extension has been timely
      obtained.

    

    
      
        
        

      

      
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    3.19.6 Tax-Qualification.
      Except
      as set forth on Schedule
      3.19.6,
      each
      Plan which is intended to be qualified under Section 401(a) of the Code has
      received a favorable determination letter from the Internal Revenue Service
      that
      it is so qualified or (in the case of a prototype plan) the prototype plan
      sponsor has received a favorable opinion letter from the Internal Revenue
      Service that the form of Plan is so qualified. Each trust established in
      connection with any Plan which is intended to be exempt from federal income
      taxation under Section 501(a) of the Code has received a determination letter
      from the Internal Revenue Service that it is so exempt or (in the case of a
      prototype plan) the prototype plan sponsor has received a favorable opinion
      letter from the Internal Revenue Service that the form of trust is so exempt.
      No
      fact or event has occurred or condition exists since the date of such
      determination or opinion letter from the Internal Revenue Service which would
      be
      reasonably likely to adversely affect the qualified status of any such Plan
      or
      the exempt status of any such trust.

    

    3.19.7 Funding;
      Excise Taxes.
      There
      has been no prohibited transaction (within the meaning of Section 406 of ERISA
      or Section 4975 of the Code) with respect to any Plan subject to ERISA. The
      Company has not incurred any material liability for any excise tax arising
      under
      Sections 4971, 4972, 4975, 4976, 4977, 4978, 4978B, 4979, 4979A, 4980, 4980B,
      4980D or 4980E of the Code or any civil penalty arising under Sections 409,
      502(i) or 502(l) of ERISA, and no fact, event or condition exists which could
      give rise to any such liability. Neither the Company nor any ERISA Affiliate
      has
      maintained, contributed to or participated in or has any obligation with respect
      to any retirement plan that is or was subject to Section 302 or Title IV of
      ERISA. No complete or partial termination has occurred within the five years
      preceding the date hereof with respect to any Plan that is a pension benefit
      plan maintained by the Company or any ERISA Affiliate.

    

    3.19.8 Tax
      Deductions.
      All
      contributions, premiums or payments (including all employer contributions and,
      if applicable, all employee salary reduction contributions) required to be
      made,
      paid or accrued with respect to any Plan have been made, paid or accrued on
      or
      before their due dates, including extensions thereof. All such contributions
      have been fully deducted for income tax purposes and no such deduction has
      been
      challenged or disallowed by any government entity and no fact or event exists
      which could give rise to any such challenge or disallowance.

    

    Section
      3.20 Interests
      in Customers, Suppliers, Etc.
      Except
      as set forth on Schedule 3.20,
      (x)
      neither the Company nor any entity controlled by the Company nor (y) to the
      Knowledge of the Company (without making any special inquiry of the Related
      Group, as hereinafter defined), no officer, director, manager or employee of
      the
      Company nor any parent, brother, sister, child or spouse of any such officer,
      director, manager or employee (collectively, the “Related
      Group”),
      or
      any entity controlled by anyone in the Related Group:

    

    
      
        
        

      

      
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    (i) owns,
      directly or indirectly, any interest in (except for ownership for investment
      pur-poses of less than 1% of the securities of any publicly held and traded
      company), or received or has any right to receive payments from, or is an
      officer, director, manager, member, employee, agent or consultant of, any Person
      which is, or is engaged in business as, a competitor, lessor, lessee, supplier,
      distributor, sales agent or customer of the Company;

    

    (ii) owns,
      directly or indirectly (other than through the ownership of stock or other
      equity interest of the Company), in whole or in part, any tangible or intangible
      property (including, but not limited to Intellectual Property) that the Company
      uses in the conduct of business; or

    

    (iii) is
      owed
      any amount by, has any cause of action or other claim whatsoever against, or
      owes any amount to, the Company, except for claims in the ordinary course of
      business such as for accrued vacation pay, accrued benefits under employee
      benefit plans, and similar matters and agreements existing on the date
      hereof.

    

    Section
      3.21 Bank
      Accounts and Powers of Attorney.
      Set
      forth on Schedule 3.21
      is an
      accurate and complete list showing (a) the name of each bank in which the
      Company has an account, credit line or safe deposit box and the names of all
      persons authorized to draw thereon or to have access thereto, and (b) the names
      of all persons, if any, holding powers of attorney from the Company and a
      summary statement of the terms thereof.

    

    Section
      3.22 Compensation
      of Employees. Schedule 3.22
      is an
      accurate and complete list showing: (a) the names and positions of all employees
      and consultants, together with a statement of the current annual salary, the
      bonus compensation paid or payable with respect to calendar years 2004 and
      2005,
      and the material fringe benefits of such employees and consultants; and (b)
      the
      names of all retired employees, if any, of the Company who are receiving or
      entitled to receive any health care or life insurance benefits or any payments
      from the Company not covered by any pension plan to which the Company is a
      party, their ages and current unfunded pension rate, if any. The Company has
      not, because of past prac-tices or previous commitments with respect to its
      employees, established any rights on the part of any of its employees to
      additional compensation with respect to any period after the Closing Date (other
      than wage increases in the ordinary course of business). The present severance
      and vacation policy of the Company is set forth on Schedule 3.22.

    

    Section
      3.23 No
      Changes Since the Balance Sheet Date.
      Except
      as specifically stated on Schedule
      3.23,
      since
      the Balance Sheet Date the Company has not: (i) incurred any liability or
      obligation of any nature (whether accrued, absolute, con-tingent or otherwise),
      except in the ordinary course of business; (ii) permitted any of its assets
      to
      be subjected to any Lien; (iii) sold, transferred or otherwise disposed of
      any
      assets except in the ordinary course of business; (iv) made any capital
      expenditure or com-mit-ment therefor which, individually or in the aggregate,
      exceeded $25,000; (v) declared or paid any dividends or made any distributions
      to its members, or redeemed, purchased or otherwise acquired any equity interest
      or any option, warrant or other right to purchase or acquire any equity interest
      in the Company; (vi) made any bonus or profit sharing distribution; (vii)
      increased or prepaid its indebtedness for borrowed money, except current
      borrowings under credit lines listed on Schedule 3.8
      from
      banks in the ordinary course of business, or made any loan to any Person; (viii)
      written down the value of any work-in-process, or written off as uncollectible
      any notes or accounts receivable, except write-downs and write-offs in the
      ordinary course of business, none of which, individually or in the aggregate,
      is
      material to the Company; (ix) granted any increase in the rate of wages,
      salaries, bonuses or other remuneration of (A) any employee who, whether as
      a
      result of such increase or prior thereto, receives aggregate compensation from
      the Company at an annual rate of $50,000 or more, or (B) except in the ordinary
      course of business, of any other employee; (x) canceled or waived any claims
      or
      rights of material value; (xi) made any change in any method of accounting
      procedures; (xii) otherwise con-ducted its business or entered into any
      transaction, except in the usual and ordinary manner and in the ordinary course
      of its business; (xiii) amended or terminated any agreement which is material
      to
      its business; (xiv) renewed, extended or modified any lease of real property,
      or, except in the ordinary course of business, any lease of personal property;
      (xv) adopted, amended or terminated any Plan; (xvi) agreed, whether or not
      in
      writing, to do any of the foregoing (except for transactions contemplated by
      this Agreement); or (xvii) experienced or incurred any material adverse change
      in the assets or liabilities, or in the business or condition, financial or
      otherwise, or in the results of operations of the Company.

    

    
      
        
        

      

      
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    Section
      3.24 Corporate
      Controls.
      Neither
      the Company, nor, to the Knowledge of the Company, any officer, authorized
      agent, employee, manager, member, consultant or any other Person, while acting
      on behalf of the Company, has, directly or indirectly: used any corporate fund
      for unlawful contribution, gift or other expense relating to political activity;
      made any unlawful payment to foreign or domestic government officials or
      employees or to foreign or domestic political parties or campaigns from
      corporate funds; established or maintained any unlawful or unrecorded fund
      of
      corporate monies or other assets; made any false or fictitious entry on its
      books or records; made any bribe, rebate, payoff, influence payment, kickback,
      or other unlawful payment to any Person, private or public, regardless of form,
      whether in money, property, or services, to obtain favorable treatment in
      securing business or to obtain special concessions, or to pay for favorable
      treatment for business secured or for special con-cessions already obtained,
      and
      the Company has not participated in any illegal boycott or other similar illegal
      practices affecting any of its actual or potential customers.

    

    Section
      3.25 Prepayment
      for Services.
      Except
      as disclosed on Schedule
      3.25,
      the
      Company has not prior to the Closing Date received any payments from any of
      its
      customers with respect to services to be rendered by the Company after the
      Closing Date.

    

    Section
      3.26 Brokers.
      No
      broker, finder, agent or similar intermediary has acted on behalf of the Sellers
      or the Company in connection with this Agreement or the transactions
      contemplated hereby, and no brokerage commissions, finder’s fees or similar fees
      or commissions are payable by the Company or the Sellers in connection therewith
      based on any agreement, arrangement or understanding with any of
      them.

    

    Section
      3.27 Copies
      of Documents.
      The
      Company has caused to be made available for inspection and copying by the
      Purchaser and its advisers, true, complete and correct copies of all documents
      referred to in this Article III or in any Schedule. Summaries of all material
      oral contracts contained in Schedule 3.8
      are
      complete and accurate in all material respects.

    

    
      
        
        

      

      
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    ARTICLE
      IV

    

    REPRESENTATIONS
      OF THE PURCHASER

    

    The
      Purchaser represents, warrants and agrees to and with the Sellers as
      follows:

    

    Section
      4.1 Existence
      and Good Standing.
      The
      Purchaser is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware, with the full corporate power and
      authority to own and operate its properties and to conduct its business, all
      as
      and in the places where such properties are now owned or operated or such
      business is now being conducted.

    

    Section
      4.2 Execution
      and Validity of Agreement.
      The
      Purchaser has the full corporate power and authority to execute and deliver
      this
      Agreement and to perform its obligations hereunder and to consummate the
      transactions contemplated hereby. The execution and delivery by the Purchaser
      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 required corporate action on behalf of the Purchaser. This
      Agreement has been duly and validly executed and delivered by the Purchaser,
      and
      assuming due authorization, execution and delivery by the Sellers, constitutes
      a
      legal, valid and binding obligation of the Purchaser, enforceable against the
      Purchaser in accordance with its terms, subject to laws of general application
      relating to bankruptcy, insolvency, and the relief of debtors and rules of
      law
      governing specific performance, injunctive relief or other equitable
      remedies.

     

    Section
      4.3 Non-Contravention;
      Approvals and Consents.
      

    

    4.3.1 Non-Contravention.
      The
      execution and delivery by the Purchaser of this Agreement, the performance
      by
      the Purchaser of its obligations hereunder and the consummation of the
      transactions contemplated hereby, will not (a) violate, conflict with or result
      in the breach of any provision of the certificate of incorporation or by-laws
      (or other comparable corporate charter documents) of the Purchaser, or (b)
      result in the violation by the Purchaser of any Laws or Orders of any
      Governmental or Regulatory Authority, applicable to the Purchaser or any of
      its
      assets or properties, or (c) conflict with, result in a violation or breach
      of,
      constitute (with or without notice or lapse of time or both) a default under,
      require the Purchaser to obtain any consent, approval or action of, make any
      filing with or give any notice to any Person pursuant to, result in or give
      to
      any Person any right of payment or reimbursement, termination, cancellation,
      modification or acceleration of, or result in the creation or imposition of
      any
      Lien upon any of the assets or properties of the Purchaser, under any of the
      terms, conditions or provisions of any Instruments to which the Purchaser is
      a
      party or by which the Purchaser or any of its assets or properties is
      bound.

    

    
      
        
        

      

      
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    4.3.2 Approvals
      and Consents.
      No
      consent, approval, authorization or action of, registration or filing with,
      or
      notice to any Governmental or Regulatory Authority or other public or private
      third party is necessary or required under any of the terms, conditions or
      provisions of any Law or Order of any Governmental or Regulatory Authority
      or
      any Instrument to which the Purchaser is a party or by which the Purchaser
      or
      any of its assets or properties is bound, in connection with the execution
      and
      delivery by the Purchaser of this Agreement, the performance by the Purchaser
      of
      its obligations hereunder or the consummation of the transactions contemplated
      hereby.

    

    Section
      4.4 Brokers.
      No
      broker, finder, agent or similar intermediary has acted on behalf of the
      Purchaser or its affiliates in connection with this Agreement or the
      transactions contemplated hereby, no brokerage commissions, finders’ fees or
      similar fees or commissions are payable by the Purchaser or its affiliates
      in
      connection therewith based on any agreement, arrangement or understanding with
      any of them.

    

    Section
      4.5 STI
      Stock.
      Each
      share of STI Stock to be issued pursuant to the terms of this Agreement will
      be
      duly and validly authorized for issuance by Purchaser, and upon consummation
      of
      the transactions contemplated hereby will be duly and validly issued, fully
      paid
      and non-assessable, and not issued in violation of the preemptive rights of
      any
      past or present shareholder and will be free and clear of all Liens, other
      than
      restrictions existing under the terms of the Investment Representation
      Certificate, the Escrow Agreement or the Purchaser’s certificate of
      incorporation, and any restrictions imposed by applicable securities laws.
      Each
      share of the STI Common Stock to be issued upon conversion of the Series C
      Preferred Stock will be duly and validly authorized for issuance by Purchaser,
      and, upon conversion of the Series C Preferred Stock in accordance with the
      Series C Certificate of Designations, will be duly and validly issued, fully
      paid and non-assessable, and not issued in violation of the preemptive rights
      of
      any past or present shareholder and will be free and clear of all Liens, other
      than restrictions existing under the terms of the Investment Representation
      Certificate or the Purchaser’s certificate of incorporation, and any
      restrictions imposed by applicable securities laws. All of the shares of STI
      Stock to be issued pursuant to this Agreement and all shares of the STI Common
      Stock to be issued upon conversion of the Series C Preferred Stock will be
      issued in transactions exempted under all applicable securities laws, assuming
      the accuracy and truthfulness of the Investment Representation Certificates
      received from each of the Sellers. The Purchaser has reserved for issuance
      all
      shares of STI Common Stock issuable upon conversion of all shares of Series
      C
      Preferred Stock. There are a sufficient number of authorized and unissued shares
      of STI Common Stock on the date hereof to permit conversion of all shares of
      Series C Preferred Stock, conversion of all other outstanding securities
      convertible into STI Common Stock and the exercise of all outstanding rights,
      warrants and options exercisable into STI Common Stock.

    

    
      
        
        

      

      
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    Section
      4.6 Financial
      Statements and Reports.
      The
      Purchaser has filed all documents and reports it is required to file with the
      Securities and Exchange Commission (the “Commission”)
      since
      December 31, 2003. As of their respective dates, such reports and statements
      did
      not contain any untrue statement of a material fact or omit to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading. The
      financial statements of the Purchaser included in such reports were prepared
      in
      accordance with GAAP applied on a consistent basis throughout the periods
      involved and present fairly the financial position of the Purchaser as of the
      dates and for the periods indicated therein, subject, in the case of interim
      financial statements, to normal recurring year end adjustments. Since December
      31, 2003, Purchaser has filed with the Commission in a timely manner all reports
      required to be so filed by it or filed a Form 12b-25 in a timely manner and
      filed the relevant report within the period permitted by Rule 12b-25 under
      the
      Securities Exchange Act of 1934, as amended. 

    

    Section
      4.7 No
      Restrictions.
      There is
      no action, suit, claim, or proceeding at law or inequity, on any arbitration
      or
      administrative or other proceeding or any investigation or inquiry by any
      Governmental or Regulatory Authority, and no legal, administrative or
      arbitration proceeding pending or, to the Purchaser’s Knowledge, threatened
      against the Purchaser or any of the Purchaser’s properties, rights or assets,
      with respect to the execution, delivery or performance of this agreement or
      the
      transactions contemplated hereby or any other agreement entered into by the
      Purchaser in connection with the transactions contemplated hereby. Except as
      disclosed in documents filed with the Commission and referred to in Section
      4.6,
      as of the date hereof there is no claim, action, proceeding or investigation
      of
      which the Purchaser has received written notice pending or, to the knowledge
      of
      the Purchaser, threatened against the Purchaser before any Governmental or
      Regulatory Authority with respect to which, in the reasonable opinion of the
      Purchaser there is a reasonable likelihood of a determination which will have
      a
      material adverse effect on the business, assets, properties or financial
      condition of the Purchaser and its subsidiaries taken as a whole (“Purchaser
      MAE”).

    

    Section
      4.8 Absence
      of Certain Changes.
      Since
      June 30, 2006, there has not been, occurred or arisen (i) any change having
      a
      Purchaser MAE in the assets, liabilities, capitalization or working capital
      of
      the Purchaser, or (ii) any material loss or damage to any of the properties
      of
      the Purchaser which materially impairs the ability of the Purchaser to conduct
      its business.

    

    Section
      4.9 Capitalization.
      Prior
      to
      the filing of the Series C Certificate of Designations, the Purchaser had an
      authorized capitalization consisting of (i) 100,000,000 shares of common stock,
      $.001 par value per share, of which, to the knowledge of the Purchaser,
      28,615,120 shares are issued and outstanding and no shares are held in the
      treasury of the Purchaser and (ii) 12,150,000 shares of preferred stock, $.001
      par value per share of which no shares have been designated and no shares are
      issued or outstanding. Immediately following the Closing hereunder, assuming
      the
      issuance of the shares of STI Stock described in Section 2.1.1(ii), the
      Purchaser shall have an authorized capitalization consisting of (i) 100,000,000
      shares of common stock, $.001 par value per share, of which, to the knowledge
      of
      the Purchaser, 33,076,658 shares are issued and outstanding and no shares are
      held in the treasury of the Purchaser and (ii) 12,150,000 shares of preferred
      stock, $.001 par value per share of which 4,700,000 shares of preferred stock
      have been designated as Series C Preferred Stock, of which 4,615,385 shares
      are
      issued and outstanding and no shares are held in the treasury of the
      Purchaser. Except
      as
      set forth on Schedule
      4.9,
      there
      are no outstanding subscriptions, options, warrants, rights (including “phantom
      stock rights”), calls, commitments, understandings, conversion rights, rights of
      exchange, plans or other agreements of any kind to which the Purchaser is a
      party providing for the purchase, issuance or sale of any shares of the capital
      stock of the Purchaser.

    

    
      
        
        

      

      
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    ARTICLE
      V

    

    CONDITION
      PRECENDENT TO THE PURCHASER’S OBLIGATION TO CLOSE

    

    The
      Purchaser’s
      obligation to purchase the Purchased Interests and the Purchased Warrants and
      to
      take the other actions required to be taken by the Purchaser at the Closing
      is
      subject to the satisfaction, at or prior to the Closing, of each of the
      following conditions (any of which may be waived by the Purchaser, in whole
      or
      in part):

    

    Section
      5.1 Required
      Approvals, Notices and Consents. The
      Company and the Sellers shall have obtained or given, at no expense to the
      Purchaser, and not have withdrawn or modified, all consents, approvals, waivers,
      notices and other actions listed on Schedules
      3.1.6 and
      3.9.2
      hereof
      (including without limitation, all consents, approvals, waivers and notices
      required under the contracts set forth on Schedule
      3.8,
      Real
      Property Leases and Permits in order to permit the consummation of the
      transactions contemplated by this Agreement without causing or resulting in
      a
      default, event of default, acceleration event or termination event under any
      of
      such contracts, Real Property Leases and Permits and without entitling any
      party
      to any of such contracts, Real Property Leases and Permits to exercise any
      other
      right or remedy adverse to the interests of the Purchaser or the Company
      thereunder) in form and substance reasonably satisfactory to the Purchaser
      and
      its counsel.

    

    Section
      5.2 Surrender
      of Certificates.
      The
      Sellers shall have delivered to the Purchaser certificate(s) representing all
      of
      the Purchased Interests and the Purchased Warrants to be acquired at the
      Closing, together with such other documents and instruments, if any, as may
      be
      necessary to permit the Purchaser to acquire all of the Purchased Interests
      and
      the Purchased Warrants free and clear of any and all Liens. 

    

    Section
      5.3 [INTENTIONALLY
      OMITTED]

    

    Section
      5.4 Escrow
      Agreement.
      The
      Sellers’ Representative shall have executed and delivered, on behalf of all of
      the Sellers, an Escrow Agreement with the Purchaser and the Escrow Agent in
      form
      and substance reasonably satisfactory to the Purchaser and its counsel (the
      “Escrow
      Agreement”).

    

    
      
        
        

      

      
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    Section
      5.5 Opinion
      of Counsel.
      The
      Purchaser shall have received the opinion of Pepe & Hazard LLP, counsel to
      the Company, dated the Closing Date, in form reasonably satisfactory to the
      Purchaser and its counsel.

    

    Section
      5.6 Good
      Standing Certificates.
      The
      Company shall have delivered to the Purchaser: (a) a copy of the Company’s
      Certificate of Formation, including all amendments, certified by the Secretary
      of State of the State of Delaware; and (b) a certificate from the Secretary
      of
      State of the State of Delaware and each state in which the Company is qualified
      as a foreign limited liability company to do business to the effect that the
      Company is in good standing in such state (in each case, together with the
      applicable tax status certificate), in each case as of a date recent in time
      to
      the Closing reasonably acceptable to the Purchaser and its counsel.

    

    Section
      5.7 Secretary’s
      Certificate.
      The
      Company shall have delivered to the Purchaser a certificate of the Secretary
      of
      the Company dated as of the Closing Date certifying: (i) that attached thereto
      are (i) a true and complete copy of the Company’s Certificate of Formation,
      including all amendments, as in effect on the Closing Date; and (ii) a true
      and
      complete copy of the Limited Liability Company Agreement of the Company, dated
      as of January 1, 2003, including all amendments, as in effect on the Closing
      Date.

    

    Section
      5.8 Investment
      Representation Certificates.
      Each of
      the Sellers shall have delivered an Investment Representation Certificate
      substantially in the form of Exhibit
      B.

    

    Section
      5.9 Registration
      Rights Agreement.
      Each of
      the Sellers shall have executed and delivered the
      Registration Rights Agreement in the form of Exhibit
      C.

    

    Section
      5.10 Certificate
      of Designations.
      The
      Purchaser shall have filed the Series C Certificate of Designations as attached
      hereto as Exhibit
      A
      with the
      Secretary of State of the State of Delaware. 

    

    Section
      5.11 Environmental
      Report.
      The
      Company shall have obtained and delivered to the Purchaser a “Phase 1”
environmental site assessment report with respect to the Company’s Leased Real
      Property.

    

    Section
      5.12 Fairness
      Opinion.
      The
      Purchaser shall have obtained a fairness opinion satisfactory to the Board
      of
      Directors of the Purchaser as to the acquisition of the Purchased Interests
      and
      the Purchased Warrants hereunder, and such opinion shall not have been withdrawn
      prior to the Closing.

    

    Section
      5.13 Legality.
      No Law
      or Order shall have been enacted, entered, promulgated or enforced by any
      Governmental or Regulatory Authority which has the effect of (i) making either
      the transactions contemplated hereby illegal or prohibiting their consummation
      or (ii) creating a Material Adverse Effect on the Company or a Purchaser MAE
      on
      the Purchaser. 

     

    
      
        
        

      

      
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    Section
      5.14 Proceedings. All
      proceedings to be taken in connection with the transactions contemplated by
      this
      Agreement and all documents incident thereto were reasonably satisfactory in
      form and substance to the Purchaser and the Purchaser’s counsel, and the
      Purchaser shall have received copies of all such documents and other evidences
      as it or its counsel reasonably requested in order to establish the consummation
      of such transactions and the taking of all proceedings in connection
      therewith.

    

    

    ARTICLE
      VI

    

    CONDITION
      PRECENDENT TO THE SELLERS’ OBLIGATION TO CLOSE

    

    Each
      Seller’s
      obligation to sell its Purchased Interests or Purchased Warrants and to take
      the
      other actions required to be taken by it at the Closing is subject to the
      satisfaction, at or prior to the Closing, of each of the following conditions
      (any of which may be waived by the Sellers’ Representative, in whole or in part,
      on behalf of all Sellers):

    

    Section
      6.1 Certified
      Resolutions.
      The
      Purchaser shall have delivered to the Company a copy of the resolutions duly
      adopted by the Board of Directors of the Purchaser authorizing the execution,
      delivery and performance of this Agreement and the transactions and other
      agreements contemplated hereby, certified to by an officer of the
      Purchaser.

    

    Section
      6.2 Escrow
      Agreement.
      The
      Purchaser shall have executed and delivered an Escrow Agreement with the
      Sellers’ Representative and the Escrow Agent in form and substance reasonably
      satisfactory to the Sellers’ Representative and its counsel.

    

    Section
      6.3 Registration
      Rights Agreement.
      The
      Purchaser shall have executed and delivered the Registration Rights Agreement
      referred to in Section 5.8.

    

    Section
      6.4 Attorney
      Client Privilege Letter.
      Purchaser
      shall have executed and delivered a letter agreement with Pepe & Hazard LLP
      with respect to the preservation of the Company’s attorney client privilege
      substantially in the form of Exhibit
      D.
      

    

    Section
      6.5 Opinion
      of Counsel.
      The
      Sellers shall have received the opinion of Davis & Gilbert LLP, counsel to
      the Purchaser, dated the Closing Date, in
      form
      reasonably satisfactory to the Sellers’ Representative and its
      counsel.

    

    Section
      6.6 Legality.
      No Law
      or Order shall have been enacted, entered, promulgated or enforced by any
      Governmental or Regulatory Authority which has the effect of (i) making either
      the transactions contemplated hereby illegal or prohibiting their consummation
      or (ii) creating a Material Adverse Effect on the Company or a Purchaser MAE
      on
      the Purchaser. 

    

    
      
        
        

      

      
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    Section
      6.7 Proceedings. All
      proceedings to be taken in connection with the transactions contemplated by
      this
      Agreement, and all documents incident thereto, were reasonably satisfactory
      in
      form and substance to the Seller’s Representative and its counsel, and the
      Sellers’ Representative shall have received copies of all such documents and
      other evidences as it or its counsel may reasonably request in order to
      establish the consummation of such transaction and the taking of all proceedings
      in connection therewith.

    

    

    ARTICLE
      VII 

    

    OTHER
      AGREEMENTS

    

    Section
      7.1 Certain
      Tax Matters.
       

    

    (a) Company
      Tax Returns.
      The
      Sellers and the Purchaser agree that Sellers’ Representative shall be the “tax
      matters partner”, and the Sellers’
      Representative
      will file, on behalf of the Company, the Company’s income tax returns, for all
      periods ending on or prior to the Closing Date (including without limitation
      for
      the period from January 1, 2006 through and including the Closing Date). Such
      returns for the Company shall be prepared by the Company’s current outside
      accountants, at the expense of the Company; provided that the amount of such
      expense shall be accrued on the Closing Date Balance Sheet. The Sellers’
      Representative
      shall deliver such returns to the Purchaser for its approval prior to the filing
      thereof, which approval shall not be unreasonably withheld or delayed. Without
      limiting the generality of the foregoing, the Purchaser and the Sellers will
      cause the Sellers’
      Representative
      to execute such consents and other documents as may be necessary or appropriate
      in order to effect the foregoing under the Code and regulations promulgated
      thereunder and under the laws of the State of Connecticut. The Purchaser shall
      prepare or cause to be prepared and file or cause to be filed all Tax returns
      for the Company that are filed for any period commencing after the Closing
      Date.
      Purchaser agrees that it will not amend any pre-closing tax return filed by
      or
      on behalf of the Company in a manner that would have an adverse financial impact
      on the Sellers without the written consent of the Sellers unless the Purchaser
      shall agree to hold the Sellers harmless therefrom.

    

    (b) Tax
      Cooperation.
      The
      Purchaser, on the one hand, and the Sellers’
      Representative
      and the Sellers, on the other, shall cooperate fully, as and to the extent
      reasonably requested by the other party, in connection with the filing of Tax
      returns pursuant to this Section 7.1 or any other tax returns relating to the
      operations of the Company, and any audit, litigation or other proceeding with
      respect to Taxes. Such cooperation shall include the retention and (upon the
      other party’s request) the provision of records and information which are
      reasonably relevant to any such audit, litigation or other proceeding. The
      Purchaser and the Sellers agree that the Company will retain all books and
      records with respect to Tax matters pertinent to the Company relating to any
      taxable period beginning before the Closing Date until the expiration of the
      statute of limitations (and, to the extent notified by the Purchaser, and
      extensions thereof) of the respective taxable periods, and to abide by all
      record retention agreements entered into with any taxing authority. With regard
      to tax returns for all periods ending on or prior to the Closing Date, Purchaser
      agrees to immediately provide Sellers with a copy of all communications from
      the
      Internal Revenue Service and any state taxing authority regarding federal or
      state income tax matters applicable to any taxable period preceding the Closing
      Date. 

    

    
      
        
        

      

      
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    Section
      7.2 Insurance.
      Following
      the Closing, the Purchaser shall be required to maintain the Company’s
      Directors’, Officers’, Insured Entity and Employment Practices Liability
      Insurance with at least the same level of coverage for at least three (3) years
      following the Closing Date or, at the Purchaser’s option, replacement insurance
      coverage providing at least the same benefits and coverage as such
      policy.

    

    Section
      7.3 Environmental
      Matters - Connecticut Transfer Act.
      The Purchaser
      and the Sellers agree that, to the extent the Leased Real Property or the
      business being transferred constitutes or is deemed to be an “establishment”
under the provisions of the Connecticut Transfer Act, Connecticut General
      Statutes Section 22a-134 et seq. (the “Transfer
      Act”),
      then
      any filing necessary shall be done at the cost and expense of the Company,
      and
      the Company shall provide the Certification as required pursuant to the Transfer
      Act at the Closing. To ensure compliance with the applicable provisions of
      the
      Transfer Act, the Company shall (a) undertake, at its cost and expense, all
      due
      diligence required to prepare, (b) prepare and file with the Connecticut
      Department of Environmental Protection (“CTDEP”)
      prior
      to the Closing, (c) be the certifying party with respect to, and (d ) pay all
      filing costs associated with, the applicable form (including any Environmental
      Condition Assessment Form) required by the Transfer Act (the “Transfer
      Act Filing”).
      To
      the extent that a Form III or a Form IV is filed with the CTDEP, the Purchaser
      agrees to require the Company to make all submissions, post all public notices
      and otherwise comply with all requirements of the CTDEP relating to
      post-transfer investigation, cleanup and monitoring. All costs associated with
      preparing for and making the Transfer Act Filing shall be paid for by the
      Company prior to the Closing or shall be accrued for as a liability on the
      Closing Date Balance Sheet. As a result of the foregoing, the Purchaser and
      the
      Sellers agree that the Company shall be the certifying party on any Form III
      or
      Form IV Transfer Act Filing and shall be the party responsible for effecting
      any
      cleanup of hazardous materials or hazardous waste, if any, as required pursuant
      to the Transfer Act Filing. Subject to the limitations set forth in Article
      VIII, the Purchaser shall be entitled to make a claim for indemnification
      pursuant to Article VIII for the cost of such cleanup.

    

    Section
      7.4 Release.
      Effective
      upon the Closing, each Seller hereby forever releases and discharges the Company
      from any and all liabilities, losses, claims, demands, obligations, rights,
      actions, causes of action, proceedings or suits of any kind or nature, debts,
      sums of money, accounts, bonds, bills, covenants, contracts, agreements,
      promises, damages, judgments, executions and demands whatsoever, in law or
      equity (collectively, “Claims”),
      which
      any such Seller or any of such Seller's affiliates, successors, predecessors
      and
      assigns ever had, now have or will ever have in the future, upon or by reason
      of
      any matter, cause or thing whatsoever, whether presently known or unknown,
      against the Company; provided, however, that the release contained herein shall
      not apply to any covenants and agreements of the Company arising under this
      Agreement, or any other agreement executed and delivered at the
      Closing. 

    

    
      
        
        

      

      
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    ARTICLE
      VIII

    

    SURVIVAL;
      INDEMNITY

    

    Section
      8.1 Survival.
      Notwithstanding any right of any party hereto fully to investigate the affairs
      of any other party, and notwithstanding any Knowledge of facts determined or
      determinable pursuant to such investigation or right of investigation, each
      party hereto shall have the right to rely fully upon the representations,
      warranties, covenants and agreements of the other parties contained in this
      Agreement and the Schedules hereto, or in any document delivered at the Closing
      in connection with this Agreement. Subject to the provisions of this Article
      VIII, the respective representations, warranties, covenants and agreements
      of
      the Sellers and the Purchaser contained in this Agreement shall survive the
      Closing.

    

    Section
      8.2 Obligation
      of the Sellers to Indemnify.  

    

    8.2.1 General
      Indemnity.
      The
      Sellers hereby severally agree, and not jointly and severally, to indemnify
      the
      Purchaser and its officers, directors, employees, agents, stockholders,
      successors and affiliates (individually, a “Purchaser
      Indemnified Party”
and
      collectively, the “Purchaser
      Indemnified Parties”)
      against, and to protect, save and keep harmless the Purchaser Indemnified
      Parties from, and to assume liability for, the payment of all liabilities
      (including liabilities for Taxes), obligations, losses, damages, penalties,
      claims, actions, suits, judgments, settlements, out-of-pocket costs, expenses
      and disbursements (including reasonable costs of investigation, and reasonable
      attorneys’, accountants’ and expert witnesses’ fees) of whatever kind and nature
      (collectively, “Losses”),
      that
      may be imposed on or incurred by any Purchaser Indemnified Party as a
      consequence of or in connection with: (i) any misrepresentation, inaccuracy
      or breach of any representation or warranty of the Company contained in Article
      III.B hereof; (ii) any breach of or failure by any of the Sellers to comply
      with or perform any agreement or covenant contained in this Agreement or in
      any
      other document, agreement or instrument executed in connection with the
      transactions contemplated hereby; (iii) any litigation or claim disclosed on
      Schedule 3.10 of this Agreement; (iv) any Taxes due and owing by the Company
      with respect to any period ending on or prior to the Closing Date, or (v) any
      costs incurred by the Purchaser pursuant to Section 7.3 or by the Company
      following the Closing pursuant to Section 7.3. The term “Losses” as used herein
      is not limited to matters asserted by third parties against an Indemnified
      Party
      but includes Losses incurred or sustained by an Indemnified Party in the absence
      of third party claims.

    

    
      
        
        

      

      
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    8.2.2
      Special
      Indemnity.
      Each of
      the Sellers hereby severally agrees, and not jointly and severally, to indemnify
      the Purchaser Indemnified Parties against, and to protect, save and keep
      harmless the Purchaser Indemnified Parties from, and to assume liability for,
      the payment of all Losses that may be imposed on or incurred by any Purchaser
      Indemnified Party as a consequence of or in connection with such Seller’s
      misrepresentation, inaccuracy or breach of a representation or warranty
      contained in Article III.A. hereof.

    

    Section
      8.3 Obligation
      of the Purchaser to Indemnify.
      The
      Purchaser hereby agrees to indemnify the Sellers and
      their
      respective officers, directors, managers, employees, agents, stockholders,
      members, successors and affiliates
      (collectively, the “Seller
      Indemnified Parties”)
      (the
      Purchaser Indemnified Parties and the Seller Indemnified
      Parties collectively,
      the “Indemnified
      Parties”)
      against, and to protect, save and keep harmless the Seller Indemnified
      Parties
      from,
      and to assume liability for, the payment of all Losses that may be imposed
      on or
      incurred by the Seller Indemnified
      Parties
      as a
      consequence of or in connection with: (i) any misrepresentation, inaccuracy
      or breach of any representation or warranty contained
      in Article IV hereof (disregarding, for purposes of this Section 8.3, any
      knowledge qualifier contained in Section 4.9); or (ii) any breach of or failure
      by the Purchaser to comply with or perform any agreement or covenant by the
      Purchaser contained in this Agreement or
      in any
      other document, agreement or instrument executed in connection with the
      transactions contemplated hereby.

    

    Section
      8.4 Escrow
      Amount Exclusive Remedy; Right of Offset.
      The
      Purchaser shall be entitled to offset any claim for indemnity made pursuant
      to
      Section 8.2, as to which notice has been given pursuant to Section 8.5,
      against the Escrow Amount as provided herein and in the Escrow Agreement. If
      any
      such claims for indemnity are resolved in favor of the Purchaser by mutual
      agreement or otherwise, the Escrow Agent shall pay such amount to the Purchaser
      out of the Escrow Amount based on the lesser of (i) the Current Market Price
      of
      STI Common Stock as of the date the indemnity claim was made by the Purchaser
      and (ii) the Current Market Price of STI Common Stock as of the date the
      indemnity claim is finally resolved in favor of the Purchaser. The Purchaser’s
      sole and exclusive remedy for breaches and non performance under this Agreement
      shall be limited to its rights of indemnification under this Article VIII and,
      subject to the immediately following sentence, the sole recourse for
      indemnification hereunder shall be limited to its right of offset against the
      Escrow Amount. Notwithstanding the foregoing, the Purchaser shall not be limited
      to the Escrow Amount in satisfaction of its rights to indemnification hereunder
      in the event of (i) any fraudulent acts or omissions or intentional
      misrepresentations committed by any Seller (including without limitation, fraud
      in connection with the transactions contemplated hereby), (ii) Losses relating
      to a breach of any representation or warranty contained in Section 3.1. or
      (iii)
      any right to indemnification under Section 8.2.2; provided, however, the
      Purchaser shall first seek recourse against the Escrow Amount.

    

    
      
        
        

      

      
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    Section
      8.5 Indemnification
      Procedures.

    

    8.5.1 Non-Third
      Party Claims.
      In
      the
      event that any Person entitled to indemnification under this Agreement (an
      “Indemnified Party”)
      asserts a claim for indemnification, which does not involve a Third Party Claim
      (as defined in Section 8.5.2 below), against which a Person is required to
      provide indemnification under this Agreement (an “Indemnifying
      Party”),
      the
      Indemnifying Party may acknowledge and agree by notice to the Indemnified Party
      in writing to satisfy such claim within 20 days of receipt of notice of such
      claim from the Indemnified Party. In the event that the Indemnifying Party
      disputes such claim, the Indemnifying Party shall provide written notice of
      such
      dispute to the Indemnified Party within 20 days of receipt of written notice
      of
      such claim, setting forth a reasonable basis of such dispute. In the event
      that
      the Indemnifying Party shall fail to provide written notice to the Indemnified
      Party within 20 days of receipt of notice from the Indemnified Party that the
      Indemnifying Party either acknowledges and agrees to pay such claim or disputes
      such claim, the Indemnifying Party shall be deemed to have acknowledged and
      agreed to pay such claim in full and to have waived any right to dispute such
      claim. Once the Indemnifying Party has acknowledged and agreed to pay any claim
      pursuant to this Section 8.5.1, or once any dispute under this Section 8.5.1
      has
      been finally resolved in favor of indemnification by a court or other tribunal
      of competent jurisdiction, the Indemnifying Party shall pay the amount of such
      claim to the Indemnified Party within 10 days of the date of acknowledgement
      or
      resolution, as the case may be, to such account and in such manner as is
      designated in writing by the Indemnified Party. 

    

    8.5.2 Third-Party
      Claims. 

    

    (a) In
      the
      event that any Indemnified Party asserts a claim for indemnification or receives
      notice of the assertion of any claim or of the commencement of any action or
      proceeding by any Person who is not a party to this Agreement or an affiliate
      of
      a party to this Agreement (a “Third
      Party Claim”)
      against an Indemnifying Party, the Indemnified Party shall give written notice
      together with a statement of any available information regarding such claim
      to
      the Indemnifying Party (the “Claims
      Notice”)
      within
      30 days after learning of such claim (or within such shorter time as may be
      necessary to give the Indemnifying Party a reasonable opportunity to respond
      to
      such claim). The Indemnifying Party shall have the right, upon written notice
      to
      the Indemnified Party (the “Defense
      Notice”)
      within
      15 days after receipt from the Indemnified Party of the Claims Notice, which
      Defense Notice by the Indemnifying Party shall specify the counsel it will
      appoint to defend such claim (“Defense
      Counsel”),
      to
      conduct at its expense the defense against such claim in its own name, or if
      necessary in the name of the Indemnified Party; provided, however, that the
      Indemnified Party shall have the right to approve the Defense Counsel, which
      approval shall not be unreasonably withheld or delayed, and in the event the
      Indemnifying Party and the Indemnified Party cannot agree upon such counsel
      within 10 days after the Defense Notice is provided, then the Indemnifying
      Party
      shall propose an alternate Defense Counsel, which shall be subject again to
      the
      Indemnified Party’s approval which approval shall not be unreasonably withheld
      or delayed. If the parties still fail to agree on the Defense Counsel, then,
      at
      such time, they shall mutually agree in good faith on a procedure to determine
      the Defense Counsel. 

    

    
      
        
        

      

      
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    (b) In
      the
      event that the Indemnifying Party shall fail to give the Defense Notice within
      such 30 day period, it shall be deemed to have elected not to conduct the
      defense of the subject claim, and in such event the Indemnified Party shall
      have
      the right to conduct the defense and to compromise and settle the claim without
      prior consent of the Indemnifying Party and the Indemnifying Party will be
      liable for all reasonable costs, expenses, settlement amounts or other Losses
      paid or incurred in connection therewith. 

    

    (c) In
      the
      event that the Indemnifying Party disputes the claim for indemnification against
      it, such Indemnifying Party shall notify the Indemnified Party to such effect
      within 15 days after receipt of the Claims Notice (or within such shorter time
      as may be necessary to give the Indemnified Party a reasonable opportunity
      to
      respond to such Third Party Claim). In such event the Indemnified Party shall
      have the right to conduct the defense and to compromise and settle such Third
      Party Claim, with the prior consent of the Indemnifying Party (which consent
      will not be unreasonably withheld or delayed), and, once such dispute has been
      finally resolved in favor of indemnification by a court or other tribunal of
      competent jurisdiction or by mutual agreement of the Indemnified and
      Indemnifying Party, subject to the provisions of Section 8.6, the Indemnifying
      Party shall within 10 days of the date of such resolution or agreement, pay
      to
      the Indemnified Party all reasonable costs, expenses, settlement amounts or
      other Losses paid or incurred by the Indemnified Party in connection with such
      Third Party Claim including the costs and expenses (including, without
      limitation, reasonable attorneys fees and expenses) incurred by the Indemnified
      Party in obtaining indemnification hereunder.

    

    (d) In
      the
      event that the Indemnifying Party does deliver a Defense Notice and thereby
      elects to conduct the defense of the subject claim, the Indemnifying Party
      shall
      be entitled to have the exclusive control over the defense and settlement of
      the
      subject claim and the Indemnified Party will cooperate with and make available
      to the Indemnifying Party such assistance and materials as it may reasonably
      request, all at the expense of the Indemnifying Party; the Indemnified Party
      shall have the right at its expense to participate in the defense assisted
      by
      counsel of its own choosing at its expense. In such an event, the Indemnifying
      Party will not settle the subject claim without the prior written consent of
      the
      Indemnified Party, which consent will not be unreasonably withheld or delayed.
      

    

    (e) Without
      the prior written consent of the Indemnified Party, the Indemnifying Party
      will
      not enter into any settlement of any Third Party Claim or cease to defend
      against such claim, if pursuant to or as a result of such settlement or
      cessation, (i) injunctive relief or specific performance would be imposed
      against the Indemnified Party, or (ii) such settlement or cessation would lead
      to liability or create any financial or other obligation on the part of the
      Indemnified Party for which the Indemnified Party is not entitled to
      indemnification hereunder. 

    

    (f) If
      an
      Indemnified Party refuses to consent to a bona fide offer of settlement which
      provides for a full release of the Indemnified Party and its affiliates and
      solely for a monetary payment which the Indemnifying Party wishes to accept,
      the
      Indemnified Party may continue to pursue such matter, free of any participation
      by the Indemnifying Party, at the sole expense of the Indemnified Party. In
      such
      an event, the obligation of the Indemnifying Party shall be limited to the
      amount of the offer of settlement which the Indemnified Party refused to accept
      plus the costs and expenses of the Indemnified Party incurred prior to the
      date
      the Indemnifying Party notified the Indemnified Party of the offer of
      settlement. 

    

    
      
        
        

      

      
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    (g) Notwithstanding
      clause (d) above, the Indemnifying Party shall not be entitled to control,
      but
      may participate in, and the Indemnified Party shall be entitled to have sole
      control over, the defense or settlement of any claim (i) that seeks a temporary
      restraining order, a preliminary or permanent injunction or specific performance
      against the Indemnified Party, (ii) to the extent such claim involves criminal
      allegations against the Indemnified Party, (iii) that if unsuccessful, would
      set
      a precedent that would have a Material Adverse Effect on, the business or
      financial condition of the Indemnified Party, (iv) if such claim would impose
      liability on the part of the Indemnified Party for which the Indemnified Party
      is not entitled to indemnification hereunder, or (v) if such claim involves
      any
      customer or supplier of the Purchaser or any of its subsidiaries or affiliates
      and the Purchaser determines, in its sole discretion, that the manner in which
      the defense of such claim is conducted could have a Material Adverse Effect
      on
      the relationship between such customer or supplier and the Purchaser or any
      of
      its subsidiaries or affiliates. In such an event, the Indemnifying Party will
      still have all of its obligations hereunder provided that the Indemnified Party
      will not settle the subject claim without the prior written consent of the
      Indemnifying Party, which consent will not be unreasonably withheld or delayed.
      

     

    (h) Any
      final
      judgment entered or settlement agreed upon in the manner provided herein shall
      be binding upon the Indemnifying Party, and shall conclusively be deemed to
      be
      an obligation with respect to which the Indemnified Party is entitled to prompt
      indemnification hereunder. 

    

    (i) A
      failure
      by an Indemnified Party to give timely, complete or accurate notice as provided
      in this Section 8.5 will not affect the rights or obligations of any party
      hereunder except and only to the extent that, as a result of such failure,
      any
      party entitled to receive such notice was deprived of its right to recover
      any
      payment under its applicable insurance coverage or was otherwise directly and
      materially damaged as a result of such failure to give timely
      notice.

    

    8.5.3 Control
      by the Purchaser.
      All
      decisions and determinations to be made by the Purchaser and/or a Purchaser
      Indemnified Party under Article VIII shall be made by the Purchaser in the
      name
      of and on behalf of the Purchaser or such other Purchaser Indemnified Party
      and
      all such decisions and determinations shall be binding upon the parties hereto
      and such Purchaser Indemnified Party.

    

    8.5.4 Treatment.
      All
      parties to this Agreement agree that any indemnification by the Sellers of
      the
      Purchaser hereunder is intended to be, and shall be, treated by each of such
      parties as an adjustment to purchase price for all purposes (including tax
      purposes).

    

    
      
        
        

      

      
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    Section
      8.6 Limitations
      On and Other Matters Regarding Indemnification.

    

    8.6.1 Indemnity
      Cushion and Cap.
      

    

    (a)
       The
      Sellers shall not have any liability to any Purchaser
      Indemnified Party with respect to Losses arising out of any of the matters
      referred to in Section 8.2.1(i) until such time as the amount of such liability
      shall exceed $50,000 in the aggregate (in which case the Sellers shall be liable
      for all Losses in excess of $50,000); provided, however, that this Section
      8.6.1(a) shall not apply to Losses relating to a breach of any representation
      or
      warranty contained in Sections 3.3, 3.6, 3.11, 3.15.3, 3.19 or 3.26 or any
      other
      provision in this Agreement relating to Taxes due on or prior to the Closing
      Date.

    

    (b) Subject
      to Section 8.4, the maximum aggregate liability of each Seller for indemnity
      payments under Section 8.2.1 shall be an amount equal to such Seller’s
      proportionate share of the Escrow Amount; provided, however, in the event,
      by
      application of Section 8.4, the maximum
      aggregate liability of a Seller for indemnity payments under Section 8.2.1
      is
      not limited to such Seller’s proportionate share of the Escrow Amount, the
      Seller’s maximum liability shall be limited to the amount of such Seller’s
      participation in the aggregate Purchase Price. 

    

    8.6.2 Termination
      of Indemnification Obligations. The
      indemnity obligations of the Sellers under Section 8.2 and of the Purchaser
      under Section 8.3 shall terminate on such date that is eighteen months
      after the Closing Date except (i)
      as to
      matters as to which the applicable Indemnitee has made a claim for
      indemnification on or prior to such date specifically addressing an actual
      claim
      or demand, (ii)
      as to
      matters as to which the applicable Indemnitee has suffered Losses arising out
      of
      the Indemnifying Party’s fraudulent acts or omissions or intentional
      misrepresentations, and (iii)
      in the
      case of the indemnity obligations of the Sellers, with respect to any claim
      pertaining to a misrepresentation, inaccuracy or a breach of warranty under
      Sections 3.1, 3.3, 3.6, 3.11, 3.15.3, 3.19 or 3.26, or a claim under any other
      Section of this Agreement relating to the payment and reporting of Taxes by
      the
      Company. The obligation to indemnify referred to in:

    

    (a) the
      preceding clause (i) shall survive the expiration of such period until such
      claims are finally resolved and any obligations with respect thereto are fully
      satisfied; 

    

    (b) the
      preceding clauses (ii) and (iii) shall terminate 90 days after the expiration
      of
      the relevant Federal, state or local statute of limitations, except as to
      matters as to which any Indemnified Party has made a claim for indemnification
      on or prior to such date, in which case the right to indemnification with
      respect thereto shall survive the expiration of any such period until such
      claim
      is finally resolved and any obligations with respect thereto are fully
      satisfied.

    

    (c) Each
      of
      the limitations set forth above in Section 8.6.2 shall in no event:

    

    
      
        
        

      

      
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    (i)
       apply
      to
      any Losses incurred by a Purchaser
      Indemnified Party which relate, directly or indirectly, to:

    

    (A)
       any
      fraudulent acts or omissions or intentional misrepresentations committed by
      the
      Company or any Seller (including without limitation, fraud in connection with
      the transactions contemplated hereby and any fraudulent acts by any officer,
      director, employee, agent or equity holder of the Company); or

    

    (B)
       any
      indemnification obligation under Sections 8.2.1(ii), 8.2.1(iii), 8.2.1(iv),
      8.2.1(v) or 8.2.2; 

    

    (ii)
       apply
      to
      any Losses incurred by a Seller Indemnified Party which relate, directly or
      indirectly, to:

    

    (A)
       any
      fraudulent acts or
      omissions or intentional misrepresentations
      committed by the
      Purchaser (including
      without limitation, fraud in connection with the transactions contemplated
      hereby and any fraudulent acts by any officer, director, employee, agent or
      equity holder of the
      Purchaser);
      or

    

    (B)
       any
      indemnification obligation under Section 8.3(ii). 

    

    

    ARTICLE
      IX

    

    MISCELLANEOUS

    

    Section
      9.1 Expenses.
      The
      Purchaser and the Sellers shall pay all of their own expenses relating to the
      transactions contemplated by this Agreement, including, without limitation,
      the
      fees and expenses of their respective counsel and financial advisers;
provided,
      that,
      (i) the
      Company shall pay $37,979.75 on the Closing Date to Pepe & Hazard LLP in
      respect of outstanding invoices for its representation of the Company’s Special
      Committee of its Board of Managers in connection with this Agreement and (ii)
      the Purchaser shall pay to Pepe & Hazard LLP on behalf of the Sellers
      $150,000 of Pepe & Hazard LLP’s total invoice within 15 days following the
      Closing for the Sellers’ legal fees and expenses incurred prior to the Closing
      from such firm’s representation of the Sellers in connection with the
      transactions described herein. To the extent that the Purchaser fails to timely
      make the payment referred to in (ii) above, the Purchaser also shall pay
      interest at the rate of 18% per annum in respect of such payment until paid
      and
      costs of collection (including attorneys fees), and the Company hereby
      guarantees payment of such amount. Although it is anticipated that the Purchaser
      will make timely payment, in the unlikely event that it does not, the Sellers
      agree to pay their pro rata portion of the unpaid balance of Pepe & Hazard
      LLP’s fees and expenses related to the transactions described herein including,
      but not limited to, fees and expenses in excess of $150,000. Sellers hereby
      confirm their obligation to pay all such fees and expenses in the event of
      non-payment by the Purchaser upon the redemption of the Series C Preferred
      Stock
      by Purchaser and in any case no later than December 15, 2006.

    

    Section
      9.2 Governing
      Law; Consent to Jurisdiction.
      (a)
      All
      questions concerning the construction, interpretation and validity of this
      Agreement, and all matters relating hereto, shall be governed by and construed
      and enforced in accordance with the laws of the State of New York, without
      giving effect to any choice or conflict of law provision or rule (whether in
      the
      State of New York or any other jurisdiction) that would cause the application
      of
      the laws of any jurisdiction other than the State of New York.

    

    
      
        
        

      

      
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    (b) Each
      of
      the parties hereto irrevocably submits to the exclusive jurisdiction of the
      United States District Court for the Southern District of New York located
      in
      the borough of Manhattan in the City of New York, or if such court does not
      have
      jurisdiction, the Supreme Court of the State of New York, New York County,
      for
      the purposes of any suit, action or other proceeding arising out of this
      Agreement or any transaction contemplated hereby (except that the Company and
      Sellers also consent to jurisdiction of any state and federal courts in the
      State of Connecticut in the event of an action by Pepe & Hazard LLP pursuant
      to Section 9.1 hereof). Each of the parties hereto further agrees that service
      of any process, summons, notice or document by U.S. registered mail to such
      party’s respective address set forth in Section 9.8 shall be effective service
      of process for any action, suit or proceeding with respect to any matters to
      which it has submitted to jurisdiction as set forth above in the immediately
      preceding sentence. Each of the parties hereto irrevocably and unconditionally
      waives any objection to the laying of venue of any action, suit or proceeding
      arising out of this Agreement or the transactions contemplated hereby in (i)
      the
      United States District Court for the Southern District of New York or (ii)
      the
      Supreme Court of the State of New York, New York County, and hereby further
      irrevocably and unconditionally waives and agrees not to plead or claim in
      any
      such court that any such action, suit or proceeding brought in any such court
      has been brought in an inconvenient forum.

    

    Section
      9.3 “Person”
      Defined.
      “Person”
      shall mean and include an individ-ual, a company, a joint venture, a
      corporation, a limited liability company, a limited liability partnership,
      a
      trust, an unincor-porated organization and a government or other department
      or
      agency thereof.

    

    Section
      9.4 “Knowledge”
      Defined.
      Where
      any representation and warranty contained in this Agreement is expressly
      qualified by reference to the knowledge of a Seller who is a natural person,
      such term shall be limited to the actual knowledge of such Seller and unless
      otherwise stated such knowledge that would have been discovered by such Seller
      after reasonable inquiry. Where any representation and warranty contained in
      this Agreement is expressly qualified by reference to the knowledge of a Seller
      that is an entity, such term shall be limited to the actual knowledge of the
      directors, managers, executive officers or general partners, or equivalent
      Persons of such Seller responsible for managing its affairs. Where any
      representation and warranty contained in this Agreement is expressly qualified
      by reference to the knowledge of the Purchaser, such term shall be limited
      to
      the actual knowledge of the executive officers of the Purchaser. Where any
      representation and warranty contained in this Agreement is expressly qualified
      by reference to the knowledge of the Company, such term shall be limited to
      the
      actual knowledge of any of Anthony Intino, II, Allison E. Bertorelli or Shannon
      LeRoy.

    

    
      
        
        

      

      
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    Section
      9.5 “Affiliate”
      Defined.
      As used
      in this Agreement, an “affiliate” of any Person, shall mean any Person that
      directly, or indirectly through one or more intermediaries, controls, or is
      controlled by, or is under common control with such Person. 

    

    Section
      9.6 Captions.
      The
      Article and Section captions used herein are for refer-ence purposes only,
      and
      shall not in any way affect the meaning or interpretation of this
      Agreement.

    

    Section
      9.7 Publicity.
      Subject
      to the provisions of the next sentence, no party to this Agreement shall, issue
      any press release or other public document or make any public statement relating
      to this Agreement or the matters contained herein without obtaining the prior
      written approval of the Purchaser and the Sellers’ Representative.
      Notwithstanding the foregoing, the foregoing provision shall not apply to the
      extent that the Purchaser or an affiliate of the Purchaser is required to make
      any announcement relating to or arising out of this Agreement by virtue of
      the
      federal securities laws of the United States or the rules and regulations
      promulgated thereunder or other rules of any stock exchange on which the
      Purchaser’s securities are then listed, or any announcement by any party or the
      Company pursuant to applicable law or regulations.

    

    Section
      9.8 Notices.
      Unless
      otherwise provided in this Agreement, any notice, request, instruction or other
      document to be given hereunder by any party to any other party shall be in
      writing and shall be deemed to have been given (a)
      upon
      personal delivery, if delivered by hand, (b)
      three
      days after the date of deposit in the mails, postage prepaid, if mailed by
      certified or registered mail, or (c)
      the
      next business day if sent by facsimile transmission (if transmission is
      electronically confirmed) or by a prepaid overnight courier service, and in
      each
      case at the respective addresses or numbers set forth below or such other
      address or number as such party may have fixed by notice: 

    

    If
      to the
      Purchaser, addressed to:

    

    Solomon
      Technologies, Inc.

    1400
      L&R Industrial Boulevard

    Tarpon
      Springs, FL 34689

    Attention:
      Chief Financial Officer

    Fax:
      (727) 934-8779

    

    with
      a
      copy to:

    

    Davis
      & Gilbert LLP

    1740
      Broadway

    New
      York,
      New York 10019

    Attention:
      Walter M. Epstein, Esq.

    Fax: (212)
      468-4888

    

    and

    

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

       

    

    If
      to the
      Sellers, to the Sellers’ Representative, currently:

    

    Integrated
      Power Systems LLC

    c/o
      Pepe
& Hazard LLP

    225
      Franklin Street, 16th
      Floor

    Boston,
      MA 02110-2804

    Attention:
      Stephen B. Hazard, Esq.

    Fax:
      (617) 748-5555

    

    Section
      9.9 Parties
      in Interest.
      This
      Agreement may not be transferred, assigned, pledged or hypothecated by any
      party
      hereto, other than by operation of law. This Agreement shall be binding upon
      and
      shall inure to the benefit of the parties hereto and their respective heirs,
      executors, administrators, successors and assigns.

    

    Section
      9.10 Severability.
      In the
      event any provision of this Agreement is found to be void and unenforceable
      by a
      court of competent jurisdiction, the remaining provisions of this Agreement
      shall never-theless be binding upon the parties with the same effect as though
      the void or unenforceable part had been severed and deleted.

    

    Section
      9.11 Counterparts.
      This
      Agreement may be executed in two or more counterparts, all of which taken
      together shall constitute one instrument.

    

    Section
      9.12 Entire
      Agreement.
      This
      Agreement, including the other documents referred to herein and the Exhibits
      and
      Schedules hereto which form a part hereof, contains the entire understanding
      of
      the parties hereto with respect to the subject matter contained herein and
      therein. This Agreement supersedes all prior agreements and understandings
      between the parties with respect to such subject matter.

    

    Section
      9.13 Amendments.
      This
      Agreement may not be amended, supplemented or modified orally, but only by
      an
      agreement in writing signed by the Purchaser and the Sellers’
Representative.

    

    Section
      9.14 Third
      Party Beneficiaries. Each
      party hereto intends that this Agreement shall not benefit or create any right
      or cause of action in or on behalf of any person other than the parties hereto
      and their respective successors and assigns as permitted under Section
      9.9.

    

    Section
      9.15 Representative.
      The
      Sellers hereby appoint IPS to act as the “Sellers’
      Representative”
as
      (i)
      the
      agent and true and lawful attorney-in-fact of each Seller, with full power
      of
      substitution, and with full capacity and authority in its sole discretion,
      to
      act in the name of and for and on behalf of each Seller holder in connection
      with all matters arising out of, resulting from, contemplated by or related
      or
      incident to this Agreement and the Closing contemplated herein and (ii)
      the
      agent for service of process for each Seller and the Sellers irrevocably consent
      to the service of any and all process in any action or proceeding arising out
      of
      or relating to this Agreement by the delivery of such process to the
Sellers’
      Representative.
      Without limiting the generality of the foregoing, the power of the Sellers’
      Representative
      shall include the power to represent each Seller with respect to all aspects
      of
      this Agreement, which power shall include, without limitation, the power to
      (i)
      waive
      any and all conditions of this Agreement, (ii)
      amend
      this Agreement and any agreement executed in connection herewith in any respect,
      (iii)
      bring,
      assert, defend, negotiate or settle any claims or actions for indemnity pursuant
      to this Agreement, (iv)
      retain
      legal counsel and be reimbursed by the Sellers for all fees, expenses and other
      charges of such legal counsel, (v) designate an agent to receive, hold and
      disburse monies or securities paid or delivered hereunder; (vi)
      receive notices or other communications, (vii)
      deliver any notices, certificates or other documents required and (viii)
      take
      all such other action and to do all such other things as the Sellers’
      Representative
      deems necessary or advisable with respect to this Agreement, including, without
      limitation, to provide all approvals and consents of the Sellers contemplated
      hereunder. The Purchaser shall have the absolute right and authority to rely
      upon the acts taken or omitted to be taken by the Sellers’
      Representative
      on behalf of the Sellers and Purchaser shall have no duty to inquire as to
      the
      acts and omissions of the Sellers’
      Representative.
      In the event the Sellers’
      Representative
      refuses to, or is no longer capable of, serving as the Sellers’
      Representative
      hereunder, the Sellers by approval of those holders entitled to receive at
      least
      65% of the Purchase Price hereunder shall promptly appoint a successor
Sellers’
      Representative
      who shall thereafter be a successor Sellers’
      Representative
      hereunder and the Sellers’
      Representative
      shall serve until such successor is duly appointed and qualified to act
      hereunder.

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

       

    

    Section
      9.16 No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rule of law or contract
      interpretation that provides that in the case of ambiguity or uncertainty a
      provision should be construed against the draftsperson will be applied against
      any party to this Agreement.

    

    Section
      9.17 Further
      Assurances.
      The
      parties agree (a) to furnish upon request to each other such further
      information, (b) to execute and deliver to each other such other documents,
      and
      (c) to do such other acts and things, all as the other party may reasonably
      request for the purpose of carrying out the intent of this Agreement and the
      documents referred to in this Agreement.

    

    

    *
      * *
      *

    

    Signature
      Pages Follow

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement, on the day and year first above
      written.

    
      	 	 	 
	 	SOLOMON
              TECHNOLOGIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Peter W. DeVecchis, Jr.
	 	Name: Peter W. DeVecchis, Jr.
	 	Title: President

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	COMPANY: 	 
	 	 	 	 
	 	 	TECHNIPOWER LLC 	 
	 	 	 	 
	 	 	/s/ Anthony F. Intino,
              II 	 
	 	 	By: Anthony F. Intino, II 	 
	 	 	Its: President & CEO 	 

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	MEMBER: 	 
	 	 	 	 
	 	 	POWER DESIGNS,
              INC. 
	 	 	 	 
	 	 	/s/ Anthony F. Intino,
              II 	 
	 	 	By: Anthony F. Intino, II 	 
	 	 	Its: President 	 

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	MEMBER: 	 
	 	 	 	 
	 	 	INTEGRATED POWER SYSTEMS
              LLC 
	 	 	 	 
	 	 	/s/ Stanley Young 	 
	 	 	By: Stanley Young 	 
	 	 	Its: President 	 

    

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	MEMBER: 	 
	 	 	 	 
	 	 	THE VANTAGE
              PARTNERS 
	 	 	 	 
	 	 	/s/ Anthony F. Intino,
              II 	 
	 	 	By: Anthony F. Intino, II 	 
	 	 	Its: President 	 

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	/s/ Michael D’Amelio 	 
	 	 	Michael D’Amelio 	 

    

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	JMC VENTURE PARTNERS
              LLC 
	 	 	 	 
	 	 	/s/ G. Lawrence Bero 	 
	 	 	By: G. Lawrence Bero 	 
	 	 	Its: Treasurer 	 

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	INTERNATIONAL CAPITAL PARTNERS
              LLC 
	 	 	 	 
	 	 	/s/ Jonathan Betts 	 
	 	 	By: Jonathan Betts 	 
	 	 	Its: Managing Member 	 

    

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	/s/ Jonathan Betts 	 
	 	 	Jonathan Betts 	 

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	/s/ Gary Laskowski 	 
	 	 	Gary Laskowski 	 

    

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	WOODLAKEN LLC 	 
	 	 	 	 
	 	 	/s/ Gary Laskowski 	 
	 	 	By: Gary Laskowski 	 
	 	 	Its: A Manager 	 

    

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	BRIL CORPORATION PROFIT
              SHARING
              PLAN 
	 	 	 	 
	 	 	/s/ Gary Laskowski 	 
	 	 	By: Gary Laskowski 	 
	 	 	Its: A Manager 	 

    

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	/s/ Shannon LeRoy 	 
	 	 	Shannon LeRoy 	 

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	/s/ Mark Sadinsky 	 
	 	 	Mark Sadinsky 	 

    

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	/s/ Raymond Joslin 	 
	 	 	Raymond Joslin 	 

    

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	ESTATE OF ROBERT
              SPARACINO 
	 	 	 	 
	 	 	/s/ Marguerite R.
              Sparacino 	 
	 	 	By: Marguerite R. Sparacino 	 
	 	 	Its: Executrix 	 

    

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	WARRANTHOLDER: 	 
	 	 	 	 
	 	 	HALSTEAD LLC 	 
	 	 	 	 
	 	 	/s/ Ric Ogden 	 
	 	 	By: Ric Ogden 	 
	 	 	Its: Manager, Halstead	 

    

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	CAU Holder: 	 
	 	 	 	 
	 	 	/s/ Mariano Moran 	 
	 	 	Mariano Moran 	 

    

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	CAU Holder: 	 
	 	 	 	 
	 	 	/s/ Allison E.
              Bertorelli 	 
	 	 	Allison E. Bertorelli 	 

    

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE

    TO
      

    SECURITIES
      PURCHASE AGREEMENT

    

    

    IN
      WITNESS WHEREOF, the
      undersigned has executed this Agreement on the day and year first above
      written.

    

    
      	 	 	CAU Holder: 	 
	 	 	 	 
	 	 	/s/ Anthony F. Intino,
              II 	 
	 	 	Anthony F. Intino, II 	 

    

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    ANNEX
      A

    

    Sellers;
      Allocation of Purchase Price

    

    See
      Attached

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]