Document:

EXHIBIT 10.17

 

Letter Agreement dated September 22,
2005 between Cornell Capital Partners and Spherix

 

	
  

  	
   

  	
  101 Hudson
  Street

  Suite 3700

  Jersey City, NJ 07302

  
	
   

  	
   

  	
   

  
	
   

  	
  September 22,
  2005

  

 

 

VIA
FEDERAL EXPRESS

AND FAX
(310) 210-4908

 

Richard C. Levin

Spherix Incorporated

12051 Indian Creek Court

Beltsville, Maryland
20705

 

Re:                             Amendment
to Standby Equity Distribution Agreement

 

Dear Mr. Levin:

 

This
letter will memorialize the agreement by and between Spherix Incorporated (the “Company”)
and Cornell Capital Partners, LP (the “Investor”), in connection with an
amendment to the Standby Equity Distribution Agreement dated July 22, 2005
(“SEDA”) between the Company and the Investor.  All capitalized terms herein, unless
otherwise indicated, shall have the meaning ascribed to them in the SEDA.

 

On the
date hereof, the Company and Investor removed David Gonzalez, Esq. as the
escrow agent pursuant to the Escrow Agreement (the “Escrow Agreement”)
between the Company, the Investor, and David Gonzalez, Esq. dated July 22,
2005, terminated the Escrow Agreement, and entered into a replacement escrow
agreement (“Replacement Escrow Agreement”) with Baxter, Baker, Sidle,
Conn & Jones, P.A. appointing Baxter, Baker, Sidle, Conn &
Jones, P.A. to serve as escrow agent for purposes of the SEDA.  The parties hereby amend the SEDA to reflect
that Baxter, Baker, Sidle, Conn & Jones, P.A. shall hereby serve are
the escrow agent in connection with the SEDA pursuant to the Replacement Escrow
Agreement.  All references in the SEDA to
the Escrow Agreement shall hereinafter mean the Replacement Escrow Agreement
and all references to either the Escrow Agent or David Gonzalez, Esq.
shall hereinafter mean Baxter, Baker, Sidle, Conn & Jones, P.A.  Furthermore, the term “David Gonzalez
Attorney Trust Account” referenced in Section 1.2 of the SEDA shall
hereinafter mean Baxter, Baker, Sidle, Conn & Jones, P.A.

 

This
letter shall also serve as a Joint Written Direction to David Gonzalez, Esq.
in accordance with the Escrow Agreement providing notification that the parties
hereto have removed David Gonzalez, Esq. as escrow agent and terminated
the Escrow Agreement.

 

 

This
letter agreement shall solely have the effect specifically described above and
shall have no effect on any other terms or conditions of the SEDA.

 

	
   

  	
  Cornell Capital
  Partners, LP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Yorkville
  Advisors, LLC

  	
   

  
	
   

  	
  Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
						

 

 

Agreed and acknowledged
on this 22nd day of September, 2005.

 

Spherix Incorporated

 

	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Richard C. Levin

  	
   

  
	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  cc:

  	
  David Gonzalez, Esq.

  	
   

  
	
   

  	
  BY HANDExhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

between

 

WMR ASSOCIATES INC.

 

as Seller,

 

and

 

WILLIAM MELCHIOR ROBERTS

 

as Stockholder

 

and

 

NORTH SHORE ANSWERING SERVICE, INC.

 

as Buyer

 

 

September 28, 2005

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  SALE AND PURCHASE OF ASSETS

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Sale
  and Purchase

  	
   

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  No Assumption of Liabilities

  	
   

  
	
   

  	
   

  	
   

  
	
  1.3

  	
  Purchase
  Price

  	
   

  
	
   

  	
   

  	
   

  
	
  1.4

  	
  Conditions to the Buyer’s Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  1.5

  	
  Adjustments for Payables

  	
   

  
	
   

  	
   

  	
   

  
	
  1.6

  	
  Adjustment for Receivables

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  REPRESENTATIONS AND WARRANTIES OF SELLER
  AND THE STOCKHOLDER

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Organization

  	
   

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Title to Purchased Assets; Ownership of
  Stock

  	
   

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Authorization; Validity of Agreement, Etc

  	
   

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Consents and Approvals; No Violation

  	
   

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Condition of Purchased Assets

  	
   

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Receivables

  	
   

  
	
   

  	
   

  	
   

  
	
  2.7

  	
  Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  2.8

  	
  Real
  Property

  	
   

  
	
   

  	
   

  	
   

  
	
  2.9

  	
  Intellectual Property

  	
   

  
	
   

  	
   

  	
   

  
	
  2.10

  	
  Material Contracts

  	
   

  
	
   

  	
   

  	
   

  
	
  2.11

  	
  Customers, Suppliers and Distributors

  	
   

  
	
   

  	
   

  	
   

  
	
  2.12

  	
  Litigation; Compliance with Laws; Licenses
  and Permits

  	
   

  
	
   

  	
   

  	
   

  
	
  2.13

  	
  Product or Service Claims

  	
   

  
	
   

  	
   

  	
   

  
	
  2.14

  	
  No
  Brokers

  	
   

  
	
   

  	
   

  	
   

  
	
  2.15

  	
  Assets Utilized in the Business

  	
   

  
	
   

  	
   

  	
   

  
	
  2.16

  	
  Related Party Transactions

  	
   

  
	
   

  	
   

  	
   

  
	
  2.17

  	
  Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  2.18

  	
  No Misstatements or Omissions

  	
   

  
	
   

  	
   

  	
   

  
	
  2.19

  	
  Labor Matters and Employment Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  2.20

  	
  Environmental Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  2.21

  	
  No Material Adverse Change

  	
   

  

 

i

 

	
  2.22

  	
  No Undisclosed Liabilities

  	
   

  
	
   

  	
   

  	
   

  
	
  2.23

  	
  Solvency

  	
   

  
	
   

  	
   

  	
   

  
	
  2.24

  	
  Employee Benefits

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  REPRESENTATIONS AND WARRANTIES OF BUYER

  	
   

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Organization

  	
   

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Authorization; Validity of Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Consents and Approvals; No Violation

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  COVENANTS OF THE PARTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Employee Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Non-disclosure of Confidential Information

  	
   

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Non-solicitation of Employees

  	
   

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  Non-Competition

  	
   

  
	
   

  	
   

  	
   

  
	
  4.5

  	
  Public Statements

  	
   

  
	
   

  	
   

  	
   

  
	
  4.6

  	
  Use of Name

  	
   

  
	
   

  	
   

  	
   

  
	
  4.7

  	
  Purchase Price Allocation

  	
   

  
	
   

  	
   

  	
   

  
	
  4.8

  	
  Other Actions

  	
   

  
	
   

  	
   

  	
   

  
	
  4.9

  	
  Payment of Payables

  	
   

  
	
   

  	
   

  	
   

  
	
  4.10

  	
  Financial Statements

  	
   

  
	
   

  	
   

  	
   

  
	
  4.11

  	
  Discharge of Liabilities

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  SURVIVAL OF REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Survival of Representations and Warranties
  of Seller and Stockholder

  	
   

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Survival of Representations and Warranties
  of Buyer

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Indemnification by Seller and Stockholder

  	
   

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Indemnification by Buyer

  	
   

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Indemnification Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Right to Set-Off

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Transaction Fees and Expenses

  	
   

  

 

ii

 

	
  7.3

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Amendment

  	
   

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  Waiver

  	
   

  
	
   

  	
   

  	
   

  
	
  7.6

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  7.7

  	
  Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  
	
  7.8

  	
  Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  7.9

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  7.10

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  7.11

  	
  Assignment

  	
   

  
	
   

  	
   

  	
   

  
	
  7.12

  	
  No Third Party Beneficiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  7.13

  	
  Entire Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  7.14

  	
  Headings

  	
   

  
	
   

  	
   

  	
   

  
	
  7.15

  	
  Counterparts

  	
   

  

 

iii

 

List of
Exhibits

 

	
  Exhibit A

  	
  Seller’s
  Secretary’s Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  Bill of Sale
  and Assignment Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  Legal
  Opinion of Counsel to Seller and Stockholder

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  Management
  Employment Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  Wire
  Transfer Instructions

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  Lease

  	
   

  

 

i

 

ASSET PURCHASE AGREEMENT

 

ASSET PURCHASE AGREEMENT, dated September 28, 2005 (together with
all Schedules hereto, this “Agreement”), among North Shore Answering
Service, Inc., a New York corporation,
with offices at 3265 Lawson Boulevard, Oceanside, New York  11572 (“Buyer”), on the one hand, and
WMR Associates, a New York corporation doing business as North Shore Answering
Service and having offices at 1000 Main Street, Port Jefferson, New York 11777
(“Seller”), and William Melchior Roberts, an individual and the sole
stockholder of Seller, residing at 91 Harbor Road, Head of the Harbor, NY 11780
(the “Stockholder”).

 

RECITALS

 

A.                                   Seller
is in the business of providing telephone answering services, message services,
faxing services, paging services and other ancillary office services
(collectively, the “Business”).

 

B.                                     Buyer
desires to purchase from Seller, and Seller desires to sell to Buyer, certain
of Seller’s assets and properties relating to the Business, on the terms and
subject to the conditions set forth herein.

 

C.                                     The
parties have drafted a disclosure schedule (the “Disclosure Schedule”)
corresponding to various provisions of this Agreement, in order to record
various disclosures made pursuant to the various provisions hereof.

 

AGREEMENT

 

In consideration of the mutual covenants and agreements herein
contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

 

Section 1.                                            Sale and Purchase of Assets.

 

1.1                                 Sale and Purchase.  Upon the terms and subject to the conditions
contained in this Agreement, Seller, as of the Closing Date, sells, assigns,
transfers and delivers to Buyer, and Buyer, as of the Closing Date, purchases
and accepts from Seller, all of the assets and rights of every nature, kind and
description, tangible and intangible, wherever located, that are owned, used or
held for use by Seller in or for the Business, as the same exists on the
Closing Date (collectively, the “Purchased Assets”), free and clear of
any and all liens, charges, claims, pledges, security interests or other
encumbrances of any kind whatsoever (“Liens”), other than (i) cash,
except for cash relating to Accounts Receivable belonging to Buyer as set forth
in Section 1.6, (iii) Seller’s interest in North Shore Professional
Building, LLC, and (ii) all assets and rights in connection with the
Employee Plans (as defined in Section 2.24 of this Agreement)
(collectively, the “Excluded Assets”). 
The transactions contemplated by this Agreement shall be consummated as
of 10:00 a.m. on October 3, 2005, or such other time and date
mutually agreed upon by Seller and Buyer, but not later than October 7,
2005 (the “Closing Date”).  The
Purchased Assets shall include, without limitation, the following:

 

 

(a)                                  customer
accounts (both actual and prospective), including barter accounts, if any;

 

(b)                                 all
accounts receivable, subject, however, to the provisions of Section 1.6
hereof;

 

(c)                                  deposits
or expenses prepaid by the Company, and deposits made by customers;

 

(d)                                 customer
and supplier lists, mailing lists, telephone numbers, DID numbers, catalogs,
yellow pages advertising, brochures, promotional materials and handbooks
relating to the Business;

 

(e)                                  other
books, records, files, contracts, plans, notebooks, production and sales data
and other data of Seller relating to the Business, including but not limited to
book keeping records and ledgers, whether or not in tangible form or in the
form of intangible computer storage media such as optical disks, magnetic
disks, tapes and all similar storage media;

 

(f)                                    machinery,
computers, file servers, networking hardware, software licensing and other data
processing hardware (and all software related thereto or used therewith) and
other tangible personal property of similar nature, including but not limited
to all items set forth on Seller’s fixed asset ledger attached to this
Agreement on Section 2.5 of the Disclosure Schedule, and all telephony
hardware and peripherals, including, but not limited to, telephony chasis,
expansion cards, monitors, spare equipment, operator audio boxes, amplifiers,
headsets and the UBS charging system which maintains emergency power;

 

(g)                                 office
furniture, office equipment, fixtures and other tangible personal property of
similar nature, as set forth in Section 2.5 of the Disclosure Schedule,
and all other such items located in the premises identified in the Lease (as
hereinafter defined), whether or not set forth in Section 2.5 of the
Disclosure Schedule;

 

(h)                                 all
inventory including, but not limited to, any pagers;

 

(i)                                     interests
to the extent owned by Seller in any patent, copyright, trademark, trade name,
brand name, service mark, service name, assumed name, domain name, website,
logo, symbol, trade dress, design or representation or expression of any
thereof, or registration or application for registration thereof, or any other
invention, trade secret, technical information, know-how, proprietary right or
intellectual property, technologies, methods, designs, drawings, software
(including documentation and source code listings), processes and other
proprietary properties or information (collectively, the “Intellectual
Property”);

 

(j)                                     real
property interests described in Section 2.8 of the Disclosure Schedule to
this Agreement together with all licenses, leases, rights, privileges and
appurtenances thereto including, without limitation, all leases, agreements and
other rights to use, occupy or possess, or otherwise with respect to, real
property or machinery, equipment,

 

2

 

vehicles, and
other tangible personal property of similar nature to which Seller is a party,
and all rights arising under or pursuant to such leases, agreements and rights;

 

(k)                                  to
the extent not included above, all rights under contracts, agreements, options,
commitments, understandings, licenses, leases, permits and instruments relating
to the Business including, without limitation, customer and supplier contracts,
sales representative and distributor contracts and commission contracts with
respect thereto, all as listed (the “Assigned Contracts”) on Schedule 1.1(k)
of the Disclosure Schedule, but no Liabilities (as defined below) associated
with any of the Assigned Contracts, except as set forth in Section 1.2
below;

 

(l)                                     the
name “North Shore Answering Service” and all variations thereof and all similar
names and the goodwill associated therewith and with the Purchased Assets,
together with all trademarks, service marks and trade names of Seller related
to the Business, if any;

 

(m)                               third
party warranties and guarantees and other similar contractual rights as to
third parties held by or in favor of Seller, and arising out of, resulting from
or relating to the Business or the Purchased Assets, to the extent not included
as part of the Assigned Contracts;

 

(n)                                 rights
to insurance and condemnation proceeds relating to any damage, destruction,
taking or other similar impairment of any of the Purchased Assets; and

 

(o)                                 cash
related to Accounts Receivable belonging to Buyer as set forth in Section 1.6.

 

1.2                                 No Assumption of Liabilities.  Except
as provided herein, Buyer is not assuming any of Seller’s direct or indirect
liabilities, obligations, undertakings, indebtedness, obligations under
guaranties, endorsements, adverse claims, losses, damages, deficiencies, costs,
expenses or responsibilities of any kind, fixed or unfixed, known or unknown,
asserted or unasserted, due or undue, liquidated or unliquidated, secured or
unsecured, accrued or unaccrued, contingent or non-contingent, subordinated or
non-subordinated (collectively, “Liabilities”).  Buyer will assume all Liabilities relating to
the Purchased Assets and the Business to the extent arising from activity of
Buyer relating to periods after the Closing Date (the “Assumed Liabilities”).

 

1.3                                 Purchase Price. 
The aggregate purchase price for the Purchased Assets is Two Million
Seven Hundred Nineteen Thousand Four Hundred Sixty and 69/100 ($2,719,460.69)
Dollars (the “Purchase Price”). 
The Purchase Price shall be payable as set forth below:

 

(a)                                  Two
Million One Hundred Seventy Five Thousand Five Hundred Sixty Eight and 55/100
($2,175,568.55) Dollars, payable to Seller by wire transfer on the Closing Date
(the “Closing Purchase Price”); and

 

3

 

(b)                                 Five
Hundred Forty Three Thousand Eight Hundred Ninety Two and 14/100 ($543,892.14)
Dollars, payable to Seller upon the one year anniversary of the Closing Date.  In
the event that any amount due pursuant to this Section 1.3(b) is not
paid on time, then any such amounts shall accrue interest at a rate of 10% per
annum from the date such payment is due, until paid in full; provided, however,
that to the extent any such amounts are not paid because of a properly asserted
claim pursuant to Section 6.4 hereof, such amounts shall not be deemed to
be an amount payable under this Section 1.3(b).

 

1.4                                 Conditions to the Buyer’s
Obligations.  The obligation of
the Buyer to consummate the transactions contemplated by this Agreement is
subject to the satisfaction of the following conditions:

 

(a)                                  Accuracy
of Representations and Warranties. The representations and warranties of
Seller and Stockholder set forth in Section 2 hereof shall be true and
correct in all material respects, in each case as of the date of this Agreement
and as of the Closing Date (except to the that such representations and
warranties speak as of a specific date), as though then made and as though the
Closing Date were substituted for the date of this Agreement.

 

(b)                                 Deliveries
of Seller. On or prior to the Closing Date, Seller and Stockholder, will
have delivered to Buyer each of the following documents (collectively, the “Seller’s
Closing Documents”):

 

(i)                                                                                     Certificate
of Secretary.  A certificate of the
Secretary of Seller in the form of Exhibit A, (x) setting forth a
copy of the resolutions adopted by its board and the Stockholder approving the
execution and delivery of this Agreement, ratifying all past corporate action,
and the other documents and instruments contemplated hereby to which it is a
party (this Agreement and all other documents and instruments to which Buyer,
Seller or the Stockholder is a party in connection herewith being sometimes
collectively referred to herein as the “Purchase Documents”) and the
consummation of the transactions contemplated hereby and thereby, and (y)
certifying that the conditions specified in Sections 1.4(a) and (c) hereof
have been satisfied.

 

(ii)                                                                                  Instruments
of Transfer.  A Bill of Sale and
Assignment Agreement, in the form of Exhibit B attached hereto (the
“Bill of Sale”), duly executed by Seller and the Stockholder, that,
among other things, conveys, transfers and sells to Buyer all right, title and
interest of Seller in and to the Purchased Assets.

 

(iii)                                                                               Legal
Opinion of Counsel to Seller and Stockholder.  An opinion, in the form of Exhibit C
attached hereto, from the Law Office of Michael J. Jannuzzi, counsel to Seller
and the Stockholder.

 

4

 

(iv)                                                                              Wire
Transfer Instructions.  Wire transfer
instructions for the payment of the Closing Purchase Price in the form attached
hereto as Exhibit E.

 

(v)                                                                                 Schedule of
Receivables.  A schedule of all
receivables due to Seller as of the close of business on September 30,
2005.

 

(vi)                                                                              Customer
List.  A complete and unrestricted
list of all customers of the Seller, as set forth in Schedule 2.11,
including the name, address, telephone number and contact for each such
customer.

 

(vii)                                                                           Schedule of
Payables.  A schedule of all
accounts payable of Seller as of the close of business on September 30, 2005
(“Payables”) as Schedule 1.4(vii) of the Disclosure Schedule.

 

(viii)                                                                        Management
Employment Agreement.  Employment
agreement between the Buyer and the Stockholder in the form of Exhibit D
attached hereto (the “Management Employment Agreement”), duly executed
by the Stockholder.

 

(ix)                                                                                All
books and records relating to the Business.

 

(x)                                                                                   Lease.  A lease for the premises at 1000 Main Street,
Port Jefferson, NY 11777 (the “Building”) between Buyer and North Shore
Professional Building, LLC (the “LLC” in the form of Exhibit F
attached hereto (the “Lease”), duly executed by the LLC.

 

(c)                                  No
Material Adverse Effect.  There shall
have not been any event, change, condition or matter that individually or in
the aggregate results in a material effect on the ability of the Seller or
Stockholder to perform its obligations under, or to consummate the transactions
contemplated by, this Agreement, or a material adverse change in or effect upon
the Purchased Assets or the Business, during the period beginning on the date hereof
and ending on the Closing Date.

 

1.4A.                    Conditions
to the Seller’s and Stockholder’s Obligations.  The obligation of the Seller and the
Stockholder to consummate the transactions contemplated by this Agreement is
subject to the satisfaction of the following conditions:

 

(d)                                 Deliveries
of Buyer.  On or prior to the Closing
Date, Buyer will have delivered to Seller each of the following documents and
payments (collectively “Buyer’s Closing Documents”):

 

(i)                                                                                     Certificate
of Secretary.  A certificate of the
Secretary of Buyer setting forth a copy of the resolutions adopted by its Board
of Directors approving the execution and delivery of this Agreement and the
other Purchase Documents and the consummation of transactions contemplated
hereby and thereby.

 

5

 

(ii)                                                                                  Closing
Purchase Price.  Buyer hereby
delivers or causes to be delivered to Seller the Closing Purchase Price in
immediately available funds.

 

(iii)                                                                               Management
Employment Agreement.  The Management
Employment Agreement, duly executed by the Buyer.

 

(iv)                                                                              Lease.  The Lease, duly executed by the Buyer.

 

1.5                                 Adjustments for Payables.  Within 90 days of the Closing Date, Buyer
will prepare an accrual based statement of accounts payable (including the
Payables) as of the Closing Date.  Any
such accounts payable which relate to any period prior to the Closing Date and
which are paid by Buyer, shall be a credit in Buyer’s favor.  Any amounts paid by Seller prior to the
Closing Date that relate to periods after the Closing Date shall also be
scheduled and shall act as a credit in favor of Seller.  The net amount shall be paid by the Buyer or
Seller, as the case may be, to the other within 30 days of the determination
thereof.  If Seller fails to timely pay
any amounts due to Buyer pursuant to this Section, then such amounts may be
debited from any amounts due to Seller or Stockholder pursuant to this
Agreement.

 

1.6                                 Adjustment for Receivables.  All accounts receivable resulting from
invoices after the close of business on September 30, 2005 shall belong to
the Buyer.  All accounts receivable
outstanding as of the close of business on September 30, 2005, shall be
payable as follows upon collection: 1/3 to the Buyer and 2/3 to the
Seller.  Attached hereto as Schedule 2.6
is a list of all outstanding accounts receivable as of the date hereof.

 

Section 2.                                            Representations and Warranties
of Seller and the Stockholder. 
The Seller and the Stockholder, jointly and severally, represent and
warrant to Buyer that each of the following statements is true and correct as
of the date hereof, and with respect to representations and warranties that
speak as of a subsequent date, such representations and warranties will also be
true and correct as of such date:

 

2.1                                 Organization. 
Seller is a New York corporation duly organized, validly existing and in
good standing under the laws of its jurisdiction of formation, with full
corporate power and authority to conduct its business and to own and operate
its assets and properties as presently conducted and operated.  The LLC is a New York limited liability
company duly formed, validly existing and in good standing under the laws of
its jurisdiction of formation, with full corporate power and authority to conduct
its business and to own its assets and properties as presently conducted and
operated.  Seller does not do business in
any other jurisdiction in any manner which would require it to become qualified
or licensed as a foreign entity.  Seller
has delivered to Buyer, as Section 2.1 of the Disclosure Schedule, true,
correct and complete copies of Seller’s certificate of incorporation (the “Certificate
of Incorporation”) and by laws (the “By Laws”), as currently in
effect.

 

2.2                                 Title to Purchased Assets;
Ownership of Stock.  

 

(a)                                  Seller
has good and marketable title to the Purchased Assets including, without
limitation, all assets set forth on Seller’s fixed asset ledger attached to
this

 

6

 

Agreement on Section 2.5
of the Disclosure Schedule, free and clear of all Liens, other than (i) Liens,
if any, for personal property taxes and assessments not yet due and payable and
(ii) Liens disclosed on Section 2.2 of the Disclosure Schedule.  The LLC is the sole owner of the
Building.  Upon consummation of the
transactions contemplated by this Agreement, Buyer will acquire all of Seller’s
right, title and interest in and to the Purchased Assets, free and clear of all
Liens.

 

(b)                                 The
Stockholder is the sole record and beneficial owner of 10 shares of the Seller’s
common stock, no par value, which constitute all of the outstanding capital
stock of Seller.  No Person has any
right, interest or claim to any of the Seller’s capital stock (other than
Stockholder) or the Purchased Assets. 
There are no subscriptions, warrants, options, convertible securities or
other rights (contingent or other) to purchase or acquire any shares of any
class of capital stock of the company, issued or outstanding, and there is no
commitment of the Seller to issue any shares, warrants, options or other such
rights or to distribute to holders of any class of its capital stock any
evidences of indebtedness or assets.  The
Seller is the owner of 99% of the membership interests in, and Stockholder is
the sole manager of, the LLC.

 

2.3                                 Authorization; Validity of
Agreement, Etc.  The
Stockholder has the requisite capacity, and Seller has the full right, power
and authority, to execute and deliver this Agreement and the other Purchase
Documents to which, as applicable, it or he are a party and to consummate the
transactions contemplated hereby and thereby, and to make the representations
set forth herein and therein.  LLC has
the full right, power and authority, to execute and deliver the Lease and to consummate
the transactions contemplated thereby. 
The execution and delivery of this Agreement and the other Purchase
Documents to which it is a party and the consummation of the transactions
contemplated hereby and thereby have been duly and validly authorized by Seller
and no other proceedings on the part of Seller are necessary to authorize the
execution and delivery of this Agreement and the other Purchase Documents to
which Seller is a party or the consummation of the transactions contemplated
hereby and thereby by Seller and the Stockholder.  The execution and delivery of the Lease and
the consummation of the transactions contemplated thereby have been duly and
validly authorized by the LLC and no other proceedings on the part of the LLC
are necessary to authorize the execution and delivery of the Lease.  Each of this Agreement and the other Purchase
Documents to which Seller is a party have been duly and validly executed by
Seller and constitute the valid and binding agreement of Seller, enforceable
against Seller in accordance with its respective terms.  Each of this Agreement and the other Purchase
Documents to which the Stockholder is a party have been duly and validly
executed by the Stockholder and constitute the valid and binding obligation of
the Stockholder, enforceable against the Stockholder in accordance with its
respective terms.  The Lease has been
duly and validly executed by the LLC and constitutes the valid and binding
obligation of the LLC, enforceable against the LLC in accordance with its
respective terms.

 

2.4                                 Consents and Approvals; No Violation.  Except as set forth in Section 2.4 of
the Disclosure Schedule, the execution, performance and delivery by Seller and
the Stockholder of this Agreement and each of the other Purchase Documents to
which it or he is a party, as applicable, and the consummation by Seller and
the Stockholder of the transactions contemplated hereby and thereby,
respectively, and the compliance by Seller and the Stockholder with the
provisions hereof and thereof will not:  (a) conflict
with or breach any provision of the Certificate of Incorporation or Bylaws of
Seller; (b) violate or breach in any respect any

 

7

 

provision of,
or constitute a default (or an event which, with notice or lapse of time or
both would constitute a default) under, any of the terms, covenants, conditions
or provisions of, or give rise to a right to terminate or accelerate or
increase the amount of payment due under, any note, bond, mortgage, indenture,
deed of trust, license, franchise, permit, lease, contract, agreement or other
instrument, commitment or obligation to which Seller or the Stockholder is a
party (collectively, “Contracts”), or by which Seller or the Stockholder
or any of its or his properties or assets, as applicable, may be bound or
affected; (c) require Seller or the Stockholder to make any filing or
registration with, or obtain any other permit, authorization, consent or
approval of, any Person (as hereinafter defined) or Governmental Entity (as
hereinafter defined); (d) result in the creation of any Lien on or
affecting the Purchased Assets; (e) violate any order, writ, injunction,
decree, judgment, or ruling of any court or governmental authority, applicable
to Seller or the Stockholder or any of their respective properties or assets;
or (f) violate any statute, law, rule or regulation applicable to
Seller or any of its properties or assets. 
“Person” shall mean any individual, partnership, corporation,
joint venture, limited liability company, trust, organization or any other
entity.  “Governmental Entity”  shall mean any foreign, provincial, United
States federal, state, county, municipal or other local jurisdiction, political
entity, body, organization, subdivision or branch, legislative or executive
agency or department or other regulatory service, authority or agency.

 

2.5                                 Condition of Purchased Assets.  All
items of machinery, equipment, tooling and other tangible personal property
owned or leased by Seller and used in the conduct of the Business (other than
items of inventory) are listed in the detailed fixed assets ledger of Seller
attached to Section 2.5 of the Disclosure Schedule (collectively, the
“Personal Property”).  Although it
may not be specifically identified in Section 2.5 of the Disclosure
Schedule, the term “Personal Property” includes all of the telephony
equipment  hardware and peripherals,
including, but not limited to, telephony chasis, expansion cards, monitors,
spare equipment, operator audio boxes, amplifiers, headsets, the UBS charging
system which maintains emergency power, and all computers, furniture, fixtures
and machinery, in each case located in the premises identified in the
Lease.  The Personal Property conforms in
all respects to all requirements of applicable laws.

 

2.6                                 Receivables.  All accounts receivable of Seller, as of September 21,
with respect to the date hereof, and as of the close of business on September 30,
with respect to the Closing Date, are or will be reflected on Section 2.6
of the Disclosure Schedule and represent valid obligations arising from
bona fide transactions in the ordinary course of Seller’s business consistent
with past practice and established in the ordinary course of Seller’s
business.  The accounts receivable of
Seller are collectible, and there is no contest, claim, or right of set off,
under any contract with any obligor of an accounts receivable relating to the
amount or validity of such accounts receivable.

 

2.7                                 Taxes.

 

(a)                                  Except
as set forth in Section 2.7(a) of the Disclosure Schedule:

 

(i)                                                                                     Seller
has (A) duly and timely filed or caused to be filed with the Internal
Revenue Service or other applicable Governmental

 

8

 

Entity (collectively, “Taxing Authorities”)
all Tax Returns (as defined below) that are required to be filed by or on
behalf of Seller and that include or relate to the Purchased Assets or the
Business, which Tax Returns are true, correct and complete, and (B) duly
and timely paid in full or caused to be paid in full, or recorded a provision
for such payment on the books and records of Seller in accordance with GAAP for
the payment of, all Taxes that are due and payable and any Taxes that could
result in a Lien on any Purchased Asset or the Business.  Seller has adequate reserves for the payment
of all Taxes that are not due and payable;

 

(ii)                                                                                  Seller
has duly and timely complied with all applicable Laws relating to the
collection or withholding of Taxes, and the reporting and remittance thereof to
the applicable Taxing Authorities;

 

(iii)                                                                               no
audit, examination, investigation, reassessment or other administrative or
court proceeding (collectively, a “Tax Proceeding”) is pending,
proposed, or threatened, with regard to any Tax or Tax Return referred to in
clause (i) above;

 

(iv)                                                                              there
is no Lien for any Tax upon any of the Purchased Assets or the Business;

 

(v)                                                                                 there
is no outstanding request for a ruling from any Taxing Authority, closing
agreement (within the meaning of Section 7121 of the Code or any analogous
provision of applicable Law) relating to any Tax for which Seller is or may be
liable or with respect to Seller’s income, assets or business, power of
attorney relating to, or in connection with, any Tax that could result in a
Lien on any Purchased Asset or the Business;

 

(vi)                                                                              none
of the Purchased Assets is “tax-exempt bond financed property” or “tax-exempt
use property” within the meaning of Section 168(g) or (h),
respectively, of the Code or any similar provision of applicable Law;

 

(vii)                                                                           none
of the Purchased Assets is required to be treated as being owned by any other
person pursuant to the “safe harbor” leasing provisions of Section 168(f)(8) of
the Internal Revenue Code of 1954 as in effect prior to the repeal of those “safe
harbor” leasing provisions or any similar provision of applicable Law;

 

(viii)                                                                        no
claim has ever been made by a Taxing Authority in a jurisdiction where Seller
or the Stockholder has not paid any Tax or filed Tax Returns relating to the
Business or any Purchased Asset asserting that Seller or the Stockholder is or
may be subject to Tax in such jurisdiction.

 

(ix)                                                                                Seller
is, and has always been an “S-Corp” for all Tax purposes.

 

9

 

(b)                                 Seller
has provided to Buyer true, complete and correct copies of (i) all Federal
and Corporate Income Tax Returns relating to, and (ii) all audit reports
relating to, each proposed adjustment, if any, made by any Taxing Authority
with respect to any taxable period ending after December 31, 2001 and any
and all Taxes with respect to which a Lien may be imposed on any Purchased
Asset or the Business.

 

(c)                                  As
used herein, (i) ”Tax Return” means any return, declaration,
report, information return or statement, and any amendment thereto, including
without limitation any consolidated, combined or unitary return or other
document (including any related or supporting information), filed or required
to be filed with any Taxing Authority in connection with the determination,
assessment, collection, payment, refund or credit of any federal, state, local
or foreign Tax or the administration of any Laws relating to any Tax or ERISA,
and (ii) ”Tax” or “Taxes” means any and all taxes, charges, fees, levies,
deficiencies or other assessments of whatever kind or nature including, without
limitation, all net income, gross income, profits, gross receipts, excise, real
or personal property, sales, ad valorem, withholding, social security,
retirement, excise, employment, unemployment, minimum, estimated, severance,
stamp, property, occupation, environmental, windfall profits, use, service, net
worth, payroll, franchise, license, gains, customs, transfer, recording and
other taxes, customs duty, fees assessments or charges of any kind whatsoever,
imposed by any Taxing Authority, including any liability therefor as a
transferee (including without limitation under Section 6901 of the Code or
any similar provision of applicable Law), as a result of Treasury Regulation
§1.1502-6 or any similar provision of applicable Law, or as a result of any Tax
sharing or similar agreement, together with any interest, penalties or
additions to tax relating thereto.

 

2.7A                       Accuracy
of Ledgers.  Seller’s revenues and
expenses ledgers delivered to Buyer are true and accurate in all material
respects.

 

2.8                                 Real Property. 
Except as set forth in Section 2.8 of the Disclosure Schedule,
Seller does not own any real property and is neither a landlord, sublandlord or
licensor nor a tenant, subtenant or licensee under any lease, sublease, license
or occupancy agreement with respect to real property.

 

2.9                                 Intellectual Property.  Section 2.9 of the Disclosure Schedule lists
all Intellectual Property that is owned by Seller or any other Person and used
by Seller in the operations of the Business, and there are no pending or, to
the best knowledge of each of Seller and the Stockholder, threatened claims by
any Person relating to Seller’s use of any Intellectual Property.  With respect to such Intellectual Property,
Seller has, free and clear of all Liens, such rights of ownership or such
rights of license, lease or other agreement to use the Intellectual Property as
are necessary to permit Seller to conduct its business and, except as set forth
on Section 2.9 of the Disclosure Schedule, Seller is not obligated to pay
any royalty or similar fee to any Person in connection with Seller’s use or
license of any of the Intellectual Property.

 

2.10                           Material Contracts.  Section 2.10 of the Disclosure Schedule sets
forth a true, complete and correct list of every Contract that: (i) provides
for aggregate future payments by Seller or to Seller of more than $1,000
(excluding purchase orders and invoices arising in the ordinary course of
business); (ii) was entered into by Seller with the Stockholder, or an
officer,

 

10

 

director or
significant employee of Seller; (iii) is a collective bargaining or
similar agreement; (iv) guarantees or indemnifies or otherwise causes
Seller to be liable or otherwise responsible for the Liabilities of another or
provides for a charitable contribution by Seller; (v) involves an
agreement with any bank, finance company or similar organization; (vi) restricts
Seller or the Stockholder or the Business from engaging in any business or
activity anywhere in the world; (vii) is an employment agreement,
consulting agreement or similar arrangement with any employee of Seller; (viii) involves
an agreement or any other Contract providing for payments from Seller to any
other Person, or by any Person to Seller, based on sales, purchases or profits,
other than direct payments for goods; or (ix) any other Contract that is
material to the rights, properties, assets, business or operations of Seller or
the Business, including, but not limited to, the 34 Amtelco operating licenses
(the foregoing, collectively, “Material Contracts”).  Seller has heretofore provided true, complete
and correct copies of all Material Contracts to Buyer.

 

There is not, and to the best knowledge of each of Seller and the
Stockholder, there has not been claimed or alleged by any Person with respect
to any Material Contract, any existing default, or event that with notice or
lapse of time or both would constitute a default or event of default, on the
part of Seller or, to the best knowledge of Seller and the Stockholder, on the
part of any other party thereto, and (ii) no consent, approval,
authorization or waiver from, or notice to, any Governmental Entity or other
Person is required in order to maintain in full force and effect any of the
Material Contracts, other than such consents and waivers that have been
obtained and are unconditional and in full force and effect and such notices
that have been duly given and copies of such consents, waivers and notices have
been delivered to Buyer.

 

2.11                           Customers, Suppliers and
Distributors.  Section 2.11
of the Disclosure Schedule sets forth (i) a list of all of Seller’s
customers, (ii) the sales of Seller for the eight month period ended August 31,
2005, and (ii) the suppliers and distributors of Seller during such
period.  There has not been any adverse
change in the business relationship of Seller with any such customer, supplier
or distributor, and Seller is not aware of any threatened loss of any such
customer, supplier or distributor.

 

All of Seller’s agreements with its customers are oral and there are no
written customer agreements.

 

2.12                           Litigation; Compliance with Laws;
Licenses and Permits.

 

(a)                                  Except
as set forth in Section 2.12 of the Disclosure Schedule, there is no
claim, suit, action or proceeding (“Proceeding”) pending, nor, to the
best knowledge of Seller or the Stockholder, is there any investigation or
Proceeding threatened, that involves or affects Seller or the Business, by or
before any Governmental Entity, court, arbitration panel or any other Person.

 

(b)                                 Except
as set forth in Section 2.12 of the Disclosure Schedule, Seller and the
Business have complied with all applicable federal, state, county, municipal or
other local criminal, civil or common laws, statutes, ordinances, orders,
codes, rules, regulations, permits, policies, guidance documents, judgments,
decrees, injunctions, or agreements of any Governmental Entity (collectively, “Laws”),
including but not limited to Laws relating to zoning,

 

11

 

building
codes, antitrust, occupational safety and health, industrial hygiene,
environmental protection, water, ground or air pollution, consumer product
safety, product liability, hiring, wages, hours, employee benefit plans and
programs, collective bargaining and the payment of withholding and social
security taxes.  Since January 1,
1999, Seller has not received any notice of any violation of any Law.

 

(c)                                  Except
as set forth in Section 2.12 of the Disclosure Schedule, each of Seller
and the Business has every license, permit, certification, qualification or
franchise issued by any Governmental Entity (each, a “License”) and
every approval, authorization, waiver, variance, exemption, consent or
ratification by or on behalf of any Person that is not a party to this
Agreement (each, a “Permit”) required for it to conduct its business as
presently conducted.  All such Licenses
and Permits are specified on Schedule 2.12.  All such Licenses and Permits are in full
force and effect and neither Seller nor the Stockholder has received notice of
any pending cancellation or suspension of any thereof nor, to the best
knowledge of Seller or the Stockholder, is any cancellation or suspension
thereof threatened.  The applicability
and validity of each such License and Consent will not be adversely affected by
the consummation of the transactions contemplated by this Agreement.  Each such License or Permit is set forth in Section 2.12
of the Disclosure Schedule.

 

2.13                           Product or Service Claims.  No product or service liability claim or a
claim with respect to the conduct of the Business is pending, or to the best
knowledge of each of Seller and the Stockholder threatened, against Seller or
against any other party with respect to the products or services of the
Business.  Section 2.13 of the Disclosure
Schedule lists all service and product liability claims asserted against
Seller with respect to the products or services of the Business or Seller
during the last five (5) years.

 

2.14                           No Brokers. 
Neither Seller nor the Stockholder has employed, or otherwise engaged,
any broker or finder or incurred any liability for any brokerage or investment
banking fees, commissions, finders’ fees or other similar fees in connection
with the transactions contemplated by this Agreement.

 

2.15                           Assets Utilized in the Business.  Except as set forth in Section 2.15 of
the Disclosure Schedule, the assets, properties and rights owned, leased or
licensed by Seller or used in connection with the Business and that are owned,
leased or licensed by Seller as of the date hereof, and all the agreements to
which Seller is a party, constitute all of the properties, assets and
agreements necessary to Seller in connection with the operation and conduct by
Seller of the Business as presently and as proposed to be conducted.

 

2.16                           Related Party Transactions.  Section 2.16 of the Disclosure Schedule sets
forth all services provided by the Stockholder to Seller and all other
arrangements or agreements involving the Stockholder and Seller for the last 5
years.

 

2.17                           Insurance.  Section 2.17
of the Disclosure Schedule contains a complete and correct list of all
policies of insurance of any kind or nature covering Seller, including policies
of life, fire, theft, casualty, product liability, workmen’s compensation,
business interruption, employee fidelity and other casualty and liability
insurance, indicating the type of

 

12

 

coverage, name
of insured, the insurer, the expiration date of each policy, the amount of
coverage and whether on an “occurrence” or “claims made” basis.  All such policies are:  (i) with insurance companies that are
financially sound and reputable and are in full force and effect; (ii) sufficient
for compliance with all material requirements of law and of all applicable material
agreements; and (iii) valid, outstanding and enforceable policies.  Complete and correct copies of such policies
have been furnished to Buyer.  All such
insurance policies or comparable coverage shall continue in full force and
effect through the Closing Date.

 

2.18                           No Misstatements or Omissions.  No representation or warranty by Seller or
the Stockholder contained in this Agreement and no statement contained in any
certificate, list, Schedule, Exhibit or other instrument specified or
referred to in this Agreement, whether heretofore furnished to Buyer or
hereafter furnished to Buyer pursuant to this Agreement, contains or will
contain any untrue statement of a material fact or omits or will omit any
material fact necessary to make the statements contained therein, in light of
the circumstances under which it was made, not misleading.

 

2.19                           Labor Matters and Employment
Matters.

 

(a)                                  Set
forth on Section 2.19(a) of the Disclosure Schedule is a list of
all employees of Seller as of the date hereof and their respective positions,
hire dates and, stated separately, their base wage rates and the nature and
amount of any other compensation.

 

(b)                                 Set
forth on Section 2.19(b) of the Disclosure Schedule is a list of
(i) each oral or written employment agreement, contract or severance
protection agreement existing as of the date hereof, individually or
collectively, with Seller’s employees (collectively, the “Employment
Agreements”), and (ii) the name of each employee of Seller with whom
Seller has entered into an agreement or contract as of the date hereof
providing for retention payments (collectively, the “Retention Agreements”).
Seller has furnished to the Buyer all Employment Agreements and Retention
Agreements.

 

(c)                                  (i) Seller
is not party to or bound by any collective bargaining agreement or similar
agreement with any labor organization, or work rules or practices agreed
to with any labor organization or employee association applicable to Seller’s
employees, (ii) none of Seller’s employees are represented by any labor
organization, and there are no organizational campaigns, demands, petitions or
proceedings pending or, to the knowledge of Seller or the Stockholder,
threatened by any labor organization or group of employees seeking recognition
or certification as collective bargaining representative of any group of Seller’s
employees, (iii) to the knowledge of Seller or the Stockholder, there are
no union claims to represent the employees of Seller, (iv) there are no
strikes, controversies, slowdowns, work stoppages, lockouts or labor disputes
pending or, to the knowledge of the Seller or the Stockholder, threatened
against or affecting Seller, and there has not been any such action during the
past five (5) years, and (v) no unfair labor practice charges,
jurisdictional disputes, or other matters within the jurisdiction of the
National Labor Relations Board has occurred, is pending or, to the knowledge of
Seller or the Stockholder, is threatened before the National Labor Relations
Board or other governmental entity.

 

13

 

(d)                                 Seller
is, and has, at all times during at least the last three (3) years, been
in compliance with all applicable laws, regulations and ordinances respecting
immigration, employment and employment practices, and the terms and conditions
of employment, including, without limitation, employment standards, equal
employment opportunity, family and medical leave, wages, hours of work and
occupational health and safety.

 

(e)                                  (i) There
are no pending, or to the knowledge of Seller or the Stockholder, threatened
Equal Employment Opportunity Commission or analogous state or local agency
charges, complaints or other claims of employment discrimination against Seller
by any employee or independent contractor of Seller; (ii) there are no
pending, or to the knowledge of Seller or the Stockholder, threatened wage
complaints, investigations, reviews or audits with respect to any of Seller’s
employees by the Department of Labor or analogous state or local governmental
entities, and Seller has not received notice of the intent of the Department of
Labor or any other government entity to conduct any such investigation, review
or audit; (iii) there are no pending, or to the knowledge of Seller or the
Stockholder, threatened occupational safety and health complaints,
investigations or reviews with respect to any of Seller’s employees by the
Occupational Safety and Health Administration or analogous state or local
government entities, and Seller has not received notice of the intent of the
Occupational Safety and Health Administration or any other government entity to
conduct any such investigation or review; and (iv) Seller has not received
notice of the intent of any government entity responsible for the enforcement
of labor and employment laws to conduct any investigation, audit or review and,
to the knowledge of Seller or the Stockholder, no such investigation is in
progress with respect to Seller.

 

(f)                                    Since
January 1, 2004 Seller has not effected (i) a “plant closing” as
defined in the Worker Adjustment and Retraining Notification Act of 1988 (“WARN”)
affecting any site of employment or one or more facilities or operating units
within any site of employment or facility of Seller, or (ii) a “mass
layoff” as defined in WARN affecting any site of employment or facility of
Seller; nor has Seller been affected by any transaction or engaged in layoffs
or employment terminations sufficient in number to trigger application of  any similar state or local law.  None of Seller’s employees has suffered an “employment
loss” as defined in WARN since January 1, 2004.  Buyer shall not incur any liability or other
obligation with respect to WARN or any state or local plant closing or mass
layoff statute in connection with or as a result of the transactions
contemplated by this Agreement. Seller shall be solely and exclusively liable
to provide such WARN or other plant closing or mass layoff notices as may be
necessary in connection with any loss of employment by any employee of Seller
through and including the Closing Date.

 

(g)                                 The
consummation of the transaction contemplated hereunder will not accelerate the
time of payment of any compensation due to any employee of Seller or result in
an excess parachute payment to any employee of Seller within the meaning of
Code Section 280G.

 

(h)                                 Set
forth on Section 2.19(h)(A) of the Disclosure Schedule is a
complete list of Seller’s current foreign national employees on whose behalf
Seller has submitted applications and petitions to the U.S. Department of
Labor, U.S. Immigration and Naturalization

 

14

 

Service, and
U.S. Department of State for immigration employment and visa benefits; and
Seller has provided the Buyer with copies of all such applications and
petitions and all government notices regarding adjudications of such notices
and petitions.  Section 2.19(h)(B) of
the Disclosure Schedule identifies and describes any pending or, to the
knowledge of Seller or the Stockholder, threatened actions against Seller for
violations under the Immigration Reform and Control Act of 1986 respecting such
employees of Seller.

 

(i)                                     Set
forth on Section 2.19(i) of the Disclosure Schedule is a
complete list of all business of Seller involving federal contracts giving rise
to any reporting or filing obligations with the Office of Federal Contract
Compliance Programs (“OFCCP”), and Seller has complied in all material respects
with all hiring and employment obligations applicable under OFCCP rules and
regulations.

 

2.20                           Environmental
Matters.  To the best knowledge of
each of Seller and the Stockholder:

 

(a)                                  Seller
is in compliance with, and the Business has been conducted in material
compliance with, all Environmental Laws (as defined below) and Environmental
Permits (as defined below);

 

(b)                                 no
Site (as defined below) is a treatment, storage or disposal facility, as defined
in and regulated under the Resource Conservation and Recovery Act, 42 U.S.C. § 6901
et seq., is on or ever was listed or is proposed for listing on the National
Priorities List pursuant to the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. § 9601 et seq., or on any
similar state list of sites requiring investigation or cleanup;

 

(c)                                  Neither
Seller nor the Stockholder has received any notice that remains pending or
outstanding with respect to its business or any Site from any governmental
entity or person alleging that Seller is not in material compliance with any
Environmental Law;

 

(d)                                 there
has been no release of a Hazardous Substance (as defined below) at, from, in,
to, on or under any Site and no Hazardous Substances are present in, on, about
or migrating to or from any Site that could give rise to an Environmental Claim
(as defined below) against Seller;

 

(e)                                  there
are no pending or outstanding corrective actions requested, required or being
conducted by any governmental entity for the investigation, remediation or
cleanup of any Site, and there have been no such corrective actions, whether
still pending or otherwise;

 

(f)                                    the
Business has obtained and holds all necessary environmental permits, and those
environmental permits will remain in full force and effect after the
consummation of the transactions contemplated hereby;

 

(g)                                 there
are no past or pending, or to the knowledge of each of Seller and the
Stockholder threatened, Environmental Claims against Seller or, with respect to
the Business, Seller or the Purchased Assets, the Stockholder, and neither
Seller nor the Stockholder

 

15

 

is aware of
any facts or circumstances which could be expected to form the basis for any
Environmental Claim against the Business;

 

(h)                                 neither
Seller, any predecessor of Seller, nor any entity previously owned by Seller,
has transported or arranged for the treatment, storage, handling, disposal, or
transportation of any Hazardous Substance to any off-Site location that could
result in an Environmental Claim against Seller;

 

(i)                                     there
are no (i) underground storage tanks, active or abandoned, (ii) polychlorinated
biphenyl containing equipment, or (iii) asbestos containing material at
any Site; and

 

(j)                                     there
have been no environmental investigations, studies, audits, tests, reviews or
other analyses (which have been reduced to writing) conducted by, on behalf of,
or that are in the possession of Seller with respect to any Site or any transportation,
handling or disposal of any Hazardous Substance that has not been delivered to
Buyer prior to execution of this Agreement.

 

As used herein, (i) “Environment” means all air, surface
water, groundwater, or land, including land surface or subsurface, including
all fish, wildlife, biota and all other natural resources; (ii) “Environmental
Claim” means any and all administrative or judicial actions, suits, orders,
claims, liens, notices, notices of violations, investigations, complaints,
requests for information, proceedings or other communications (written or
oral), whether criminal or civil, (collectively, “Claims”) pursuant to
or relating to any applicable Environmental Law by any person (including, but
not limited to, any governmental entity, person and citizens’ group) based
upon, alleging, asserting, or claiming any actual or potential (x) violation of
or liability under any Environmental Law, (y) violation of any environmental
permit, or (z) liability for investigatory costs, cleanup costs, removal costs,
remedial costs, response costs, natural resource damages, property damage,
personal injury, fines, or penalties arising out of, based on, resulting from,
or related to the presence, release, or threatened release into the
Environment, of any Hazardous Substances at any location, including, but not
limited to, any off-Site location to which Hazardous Substances or materials
containing Hazardous Substances were sent for handling, storage, treatment, or
disposal; (iii) “Environmental Law” means any and all Laws relating
to the protection of health and the Environment, worker health and safety,
and/or governing the handling, use, generation, treatment, storage,
transportation, disposal, manufacture, distribution, formulation, packaging,
labeling, or release of Hazardous Substances, whether now existing or
subsequently amended or enacted, and the state analogies thereto, all as
amended or superseded from time to time; and any common law doctrine,
including, but not limited to, negligence, nuisance, trespass, personal injury,
or property damage related to or arising out of the presence, Release, or
exposure to a Hazardous Substance; (iv) “Hazardous Substance” means
petroleum, petroleum hydrocarbons or petroleum products, petroleum by-products,
radioactive materials, asbestos or asbestos-containing materials, gasoline,
diesel fuel, pesticides, radon, urea formaldehyde, lead or lead-containing
materials, polychlorinated biphenyls; and any other chemicals, materials,
substances or wastes in any amount or concentration which are now included in
the definition of “hazardous substances,” “hazardous materials,” “hazardous
wastes,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic
substances,” “toxic

 

16

 

pollutants,” “pollutants,”
“regulated substances,” “solid wastes,” or “contaminants” or words of similar
import, under any Environmental Law;  and
(v) “Site” means any of the real properties currently or previously
owned, leased, used or operated by Seller, any predecessors of Seller or any
entities previously owned by Seller, including all soil, subsoil, surface
waters and groundwater thereat.

 

2.21                           No
Material Adverse Change.  Except as
disclosed in Section 2.21 of the Disclosure Schedule, since December 31,
2004, (a) no event, condition or circumstance has occurred that could, or
could be reasonably likely to, have a material adverse effect on the Business
or the Purchased Assets, or on the condition (financial or otherwise), results
of operations or prospects of Seller or the Business; and (b) the Business
has been conducted in the ordinary course and consistent with past practice.

 

2.22                           No
Undisclosed Liabilities.

 

(a)                                  Seller
does not have any Liabilities other than those that are set forth on Schedule 2.22
of the Disclosure Schedule, each of which was incurred in the ordinary course
of business and none of which, individually or in the aggregate, is material to
the business, operations, condition or prospects of the Business or the
Purchased Assets.

 

(b)                                 The
accounts payable of Seller set forth in Schedule 1.4(viii) of the
Disclosure Statement or are the result of bona fide transactions in the
ordinary course of business and are not yet due and payable as at the date
hereof, in accordance with the respective invoices relating thereto.

 

2.23                           Solvency.  Immediately prior to and upon consummation of
the transactions contemplated under this Agreement, Seller will be solvent,
will have assets having a fair value in excess of the amount required to pay
its Liabilities as they become due and will have access to adequate capital for
the conduct of its business and the ability to pay its debts and such
Liabilities as they mature.

 

2.24                           Employee
Benefits.  (a)  Disclosure of
All Plans.  Except as set forth in Section 2.24
of the Disclosure Schedule, neither the Seller nor any other company or entity,
which together with the Seller has at any time constituted a member of the
Seller’s “controlled group” or “affiliated service group” (within the meaning
of Sections 4001(a)(14) and/or (b) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) and/or Sections 414(b), (c),
(m) or (o) of the Internal Revenue Code of 1986, as amended (the “Code”)
(such group or groups and each member thereof hereinafter referred to
individually and collectively as the “Group”)), has at any time adopted,
sponsored or maintained, has any liability for or is a fiduciary with respect
to, or has any present or future obligation to contribute to or make payment
under, or has or is making contributions or payments under, (i) any
employee benefit plan (as defined in Section 3(3) of ERISA)
regardless of whether such plan is actually covered by ERISA (including any
Employee Welfare Benefit Plan or Employee Pension Plan, as defined in ERISA),
or (ii) any other benefit plan, program, policy, practice, contract or
arrangement of any kind whatsoever (whether for the benefit of present, former,
retired or future employees, officers, directors, consultants or independent
contractors of the Seller or any member of the

 

17

 

Group, or for
the benefit of any other person or persons) including, without limitation, with
respect to disability, relocation, child care, educational assistance, deferred
compensation, pension, retirement, profit sharing, thrift, savings, stock
ownership, stock bonus, restricted stock, health, dental, medical, life,
hospitalization, stock purchase, stock option, incentive, bonus, sabbatical
leave, vacation, severance, cafeteria, performance award, stock or
stock-related awards, fringe benefits or other contribution, benefit or payment
of any kind, whether formal or informal, oral or written, funded or unfunded
and whether or not legally binding, or (iii) any employment, consulting,
service or other contract or agreement of any kind whatsoever (collectively, “Employee
Plans”). Neither the Seller nor any member of the Group has any plan or
commitment, whether legally binding or not, to establish any new Employee Plan,
to modify any Employee Plan, or to enter into any Employee Plan, nor do they
have any intention or commitment to do any of the foregoing.

 

(b)                                 Documentation.  The Seller and all members of the Group have
provided to Buyer (i) correct and complete copies of all documents
embodying or relating to each Employee Plan including all amendments thereto
and copies of all forms of agreement and enrollment used therewith, and all
trusts, group annuity contracts, insurance policies or other funding media in
connection with these Employee Plans; (ii) the most recent annual reports
(Series 5500 and all schedules thereto), if any, required under ERISA or
the Code in connection with each Employee Plan or related trust; and (iii) the
most recent Internal Revenue Service (“IRS”) determination letter, opinion
letter and rulings relating to each Employee Plan.  Except as required to comply with applicable
law or as otherwise required by this Agreement, no plan amendments have been
adopted, no changes to the documents have been made, and no such amendments or
changes shall be adopted or made prior to the Closing Date and since the date
such documents were supplied to the Buyer.

 

(c)                                  Qualified
Status and Current Determination Letter. 
Each Employee Plan which is intended to qualify under Section 401(a) of
the Code and each trust intended to qualify under Section 501(a) of
the Code has received a favorable determination letter from the IRS with
respect to each such Employee Plan as to its qualified status under the Code,
including all amendments to the Code effected by the Tax Reform Act of 1986 and
subsequent legislation enacted through 2001, and neither the Seller nor any
member of the Group knows or has reason to know why each such Employee Plan or
trust should not continue to be so qualified.

 

(d)                                 Employee
Plan Compliance.  Except as set forth
in Section 2.24 of the Disclosure Schedule, (i) each Employee Plan
has been established and maintained in all material respects in accordance with
its terms and in compliance with all applicable laws, statutes, orders, rules and
regulations including, without limitation, ERISA and the Code, and no
communication has been received from a governmental authority asserting that an
Employee Plan is not in compliance with applicable laws, statutes, orders, rules and
regulations; (ii) no prohibited transaction (within the meaning of Section 4975
of the Code or Section 406 of ERISA) has occurred with respect to any
Employee Plan; (iii) there are no actions, suits, claims, or governmental
agency action or investigation pending or threatened (other than routine claims
for benefits) against any Employee Plan or against the assets of any Employee
Plan, and neither the Seller nor any member of the Group have any reason to
expect such an action, suit, claim, or

 

18

 

governmental
agency action or investigation to arise; (iv) each Employee Plan can be
amended, terminated or otherwise discontinued before or after the Closing Date
in accordance with its terms, without liability to the Seller, any member of
the Group or the Buyer  (other than
ordinary administration expenses or Liabilities typically incurred in a
termination event); (v) there are no audits, inquiries or proceedings
pending or threatened by the IRS or Department of Labor (“DOL”) with respect to
any Employee Plan; (vi) neither the Seller nor any member of the Group is
subject to any penalty or tax with respect to any Employee Plan under Section 402(i) of
ERISA or Sections 4975 through 4980 of the Code; and (vii) neither the
Seller nor any member of the Group has engaged in a transaction that could be
subject to Section 4069 or 4212(c) of ERISA.

 

(e)                                  No
Pension Plans.  The Seller and all
members of the Group have not ever maintained, established, sponsored, participated
in or contributed to any employee pension benefit plan (as defined Section 3(2) of
ERISA) which was, or is, subject to Part 3 of Subtitle B of Title I of
ERISA, Title IV of ERISA or Section 412 of the Code, and neither the
Seller nor any member of the Group has incurred, or expects to incur, any
liability under Title IV of ERISA.

 

(f)                                    No
Multiemployer Plans.  At no time has
the Seller or any member of the Group sponsored, maintained, contributed to,
had any obligation to contribute to, or incurred, or expects to incur, any
liability regarding any multiemployer plan (as defined in Section 3(37) or
Section 4001(a)(2) of ERISA).

 

(g)                                 No
Retiree Benefits.  Neither the Seller
nor any member of the Group maintains, sponsors, contributes to, or has any obligation
to any retired or former employee of the Seller with respect to the provision
of any disability (long or short term), hospitalization, medical, dental or
life insurance benefits, whether insured or self-insured, or coverage under any
employee welfare benefit plan (within the meaning of Section 3(1) of
ERISA) or any similar benefit plan maintained by the Seller or any member of
the Group, other than as required under Section 4980B of the Code or Part 6
of Title I of ERISA or any similar state law. Neither Seller nor any member of
the Group have represented, promised or contracted (whether in oral or written
form) to an employee (either individually or to employees as a group) that such
employee(s) would be provided with life insurance, medical or other employee
benefits upon their retirement or termination of employment, except to the
extent required by statute.

 

(h)                                 Compliance
with COBRA.  The Seller and all
member of the Group have complied with all notice and continuation of health
care coverage requirements under Section 4980B of the Code and Part 6
of Title I of ERISA or any applicable state law.

 

(i)                                     No
Foreign Plans.  Neither the Seller
nor any member of the Group maintains, sponsors, has any obligation or
liability to or provides or otherwise makes available retirement or deferred
benefits of any kind whatsoever under any benefit plan or Employee Plan
established or maintained outside of the United States.

 

(j)                                     Effect
of Transaction. The execution of this Agreement and the consummation of the
transactions contemplated hereby and thereby will not (either alone or upon

 

19

 

the occurrence
of any additional or subsequent events) constitute an event under any Employee
Plan, trust or loan that will or may result in any payment (whether of
severance pay or otherwise), acceleration, forgiveness of indebtedness,
vesting, distribution, increase in benefits or obligation to fund benefits with
respect to any Employee Benefit Plan.  No
payment or benefit which will or may be made by the Seller, any member of the
Group or the Buyer as a result of the execution of this Agreement and
consummation of the transactions contemplated hereby will be characterized as a
parachute payment (within the meaning of Section 280G of the Code).

 

Section 3.                                            Representations
and Warranties of Buyer.  Buyer
represents and warrants to Seller and the Stockholder that each of the
following statements is true and correct as of the date hereof:

 

3.1                                 Organization.  Buyer is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization, with full power and authority to conduct its business and to own
and operate its assets and properties as presently conducted and operated.

 

3.2                                 Authorization;
Validity of Agreement.  Buyer has the
right, power and authority to execute and deliver this Agreement and each of
the other Purchase Documents to which it is a party (the “Buyer Purchase
Documents”) and to consummate the transactions contemplated hereby and
thereby and to make the representations set forth herein and therein.  The execution and delivery of the Buyer
Purchase Documents and the consummation of the transactions contemplated hereby
and thereby have been duly and validly authorized by Buyer and no other
proceedings on the part of Buyer are necessary to authorize the Buyer Purchase
Documents or the consummation of the transactions contemplated hereby and
thereby. Each of the Buyer Purchase Documents have been duly and validly
executed by Buyer and constitute the valid and binding agreement of Buyer,
enforceable against Buyer in accordance with its terms, except as such
enforceability may be subject to or limited by applicable bankruptcy,
insolvency, reorganization, or other similar laws, now or hereafter in effect,
affecting the enforcement of creditors’ rights generally.

 

3.3                                 Consents
and Approvals; No Violation.  The
execution, performance and delivery by Buyer of the Buyer Purchase Documents
and the consummation by Buyer of the transactions contemplated hereby and
thereby, and compliance by Buyer with the provisions hereto and thereto do not
and will not:  (a) conflict with or
breach any provision of the Certificate of Incorporation of Buyer; (b) violate
or breach in any respect any provision of, or constitute a default (or an event
which, with notice or lapse of time or both would constitute a default) under,
any of the terms, covenants, conditions or provisions of, or give rise to a
right to terminate or accelerate or increase the amount of payment due under,
any note, bond, mortgage, indenture, deed of trust, license, franchise, permit,
lease, contract, agreement or other instrument, commitment or obligation to
which Buyer is a party, or by which Buyer or any of its properties or assets may
be bound; (c) require Buyer to make any filing or registration with, or
obtain any other permit, authorization, consent or approval of, any
governmental or regulatory authority; (d) violate any order, writ,
injunction, decree, judgment, or ruling of any court or governmental authority
applicable to Buyer or any of its assets; or (e) violate any statute, law,
rule or regulation applicable to Buyer.

 

20

 

Section 4.                                            Covenants
of the Parties.

 

4.1                                 Employee
Matters.

 

(a)                                  Nothing
in this Agreement shall confer upon any employee of Seller the right to
employment with Buyer after the Closing Date. 
Buyer shall offer employment to all of Seller’s current employees as
listed on Schedule 2.19(a) hereto (all such employees accepting such
offer are hereinafter referred to as the “Transferred Employees”), on
terms to be established by Buyer in its sole discretion.  Buyer shall have no Liabilities with respect
to Seller’s employees or independent contractors for periods prior to any such
person becoming employees of, or independent contractors to, Buyer, including,
but not limited to, Liabilities for wages, bonuses, vacation pay and employee
benefits of any kind, and Seller shall be solely liable for the payment of any
such Liabilities.

 

(b)                                 Except
to the extent specifically set forth in Section 4.1 of the Disclosure Schedule hereto,
Buyer is not assuming and Seller shall remain liable for all Liabilities
arising out of or in any way related to (i) all amounts required to be paid
pursuant to any Employment Agreements, Retention Agreements and any other
similar agreements between Seller and any of Seller’s employees, subject to and
in accordance with the terms and conditions set forth in such agreements; (ii) any
and all severance or termination costs that arise with respect to employees of
Seller terminated from employment with Seller on or before the Closing Date (or
whose notice of termination was delivered prior to such date); (iii) any
claims by any employee of Seller relating to a termination or deemed
termination on or prior to the Closing Date as a result of the transactions
contemplated by this Agreement; (iv) any claims by any of Seller’s
employees who refuse Buyer’s offer of employment; (v) any workers’
compensation claims by any Transferred Employee for injuries or illnesses
incurred, sustained or resulting from work-related exposures or conditions
prior to such Transferred  Employee’s
employment date with Buyer, if any (regardless of whether the claim related
thereto is filed before or after the Closing Date); (vi) claims for any
benefits accruing, or with respect to occurrences commencing, on or before the
Closing Date under any of Seller’s benefit plans, including, but not limited
to, (A) hospital benefits or any confinements that commenced on or before
the Closing Date, including any covered charges of health care professionals
relating to such confinements, (B) short-term and long-term disability
benefits, if any, for disabilities that commenced on or before the Closing Date
for the period that each of such affected individuals remain disabled, (C) life
and survivor income benefits, if any, for deaths that occur on or prior to the
Closing Date, (D) all benefits that are being, or may be, paid to, or with
respect to, any of such employees who are on long-term or short-term  disability or medical, family, personal or
other leaves of absence as of the Closing Date, or who go on short-term,
long-term, medical, family, personal or other leaves of absence after the
Closing Date as a result of any injury, illness or other factor occurring on or
prior to the Closing Date pursuant to the terms of such  Seller benefit plans as in effect immediately
prior to the Closing Date (including any subsequent benefit increases); (E) benefits
under any “spending account” or similar arrangement under any “cafeteria plan”
(as defined in Section 125 of the Internal Revenue Code of 1986, as
amended) with respect to salary reduction elections made prior to the Closing
Date, (F) benefits under all other benefit plans of Seller which accrue on
or before the Closing Date; (vii) any independent contractor agreement or
relationship to or involving Seller entered into prior to the Closing Date; (viii) other
acts or

 

21

 

omissions
occurring or otherwise attributable to the period on or before the Closing Date
with respect to the employment of, termination of employment of, provision of
benefits to, and/or compensation of any of Seller’s employees, including, but
not limited to, any personal injury, discrimination, wage/hour, family and
medical leave, mass layoff, plant closing, harassment, wrongful discharge, or
other wrongful employment practice, unfair labor practice, claims for benefits
(including claims arising under ERISA or workers’ compensation laws), or other
violation of, or obligations under, any labor, employment or benefits law; and (ix) all
wages and salaries of Seller’s employees for work performed or services
rendered by such employees on or prior to the Closing Date.  The parties hereto acknowledge and agree
that, as of the Closing Date, the Transferred Employees will cease accruing
benefits under and shall cease participation in all of Seller’s benefit
plans.  Buyer shall not have any
liability or obligations of any nature, whether known or unknown, absolute,
accrued, contingent or otherwise, and whether due or to become due, arising out
of relating to Seller being, or being deemed to be, a joint employer or part of
a single employer group.

 

(c)                                  The
Buyer shall not adopt, assume or otherwise become responsible for, either
primarily or as a successor employer, any assets or Liabilities of any Employee
Plans, employee benefit plans, arrangements, commitments or policies currently
provided by the Seller or by any member of the Group and Seller shall remain
solely liable for, and shall indemnify Buyer from, any Liability related to
Employee Plans or other employee benefit plans, arrangements, commitments or
policies, except that Buyer may, in its sole discretion, assume the payments of
premiums under the Vytra health insurance plan for periods beginning after the
Closing Date; and if and to the extent that the Buyer is deemed by law or
otherwise to be liable as a successor employer for such purposes, the Seller
and the Stockholder shall jointly and severally indemnify the Buyer for the
full and complete costs, fees and other Liabilities which result.  Seller shall honor and be solely responsible
for all Liabilities under Seller’s benefit plans.

 

(d)                                 Seller
shall not take any action, including, but not limited to, offering employment
with Seller, to induce Transferred Employees not to accept employment with
Buyer.

 

(e)                                  To
the extent permitted by law, as soon as reasonably practicable after the date
hereof, Seller will provide to Buyer the necessary employee data, including
personnel and benefits information, maintained with respect to the Transferred
Employees by Seller or by its independent contractors, such as insurance
companies and actuaries, in order to facilitate benefit and payroll transition
for the Transferred Employees.  After the
date hereof, Seller shall cooperate and provide Buyer with reasonable
assistance in connection with the establishment of any applicable employee
benefit plans and programs and shall cooperate with the Buyer in assisting the
Transferred Employees in rolling over amounts attributable to their
participation in Seller’s defined contribution plan(s) into any comparable
defined contribution retirement plan that may be established by the Buyer.

 

(f)                                    Notwithstanding
anything to the contrary contained in Section 6 hereof, Seller and
Stockholder shall pay and shall assume, indemnify, defend, and hold harmless
Buyer from and against and in respect of any and all losses, damages, claims
for benefits,

 

22

 

Liabilities,
taxes, and sanctions that arise under the Section 4980B of the Code, or Part 6
of Title I of ERISA or any similar state law (individually and collectively “COBRA”),
interest and penalties, costs, and expenses (including, without limitation,
disbursements and reasonable legal fees incurred in connection with any action,
suit, proceeding, claim, appeal, demand, assessment, or judgment) imposed upon,
incurred by, or assessed against Buyer and any of its employees arising by
reason of or relating to any failure of Seller to comply with the continuation
health care coverage provisions of COBRA which failure occurred with respect to
any current or prior employee of Seller or any qualified beneficiary of such
employee (as defined in COBRA) prior to the Closing Date or as otherwise
required as a result of Seller’s dissolution and/or termination of its group
health plan or plans or any other transactions or matters contemplated by this
Agreement.  In particular, if and to the
extent that the Buyer is deemed by law or otherwise to be liable as a successor
employer for such COBRA purposes, the Seller and the Stockholder shall jointly
and severally indemnify the Buyer for the full and complete costs, fees and
other Liabilities which result.

 

(g)                                 In
respect of grievances or Labor Claims of Transferred Employees to the extent
relating to their employment by Seller including, without limitation, any such
grievances or Labor Claims filed before state or local authorities for which
payment has not been made prior to the Closing Date, Seller shall retain
responsibility and liability for all amounts due with respect thereto
including, without limitation, the payment of any amounts in the nature of back
pay or employee compensation, and any state or federal taxes in connection with
such back pay or employee compensation. 
Handling of such grievances and Labor Claims shall be at Seller’s cost
and expense.  Buyer shall have sole
responsibility and liability for any Labor Claims of Transferred Employees that
relate to their employment with Buyer.

 

(h)                                 Nothing
in this Section 4.1 shall limit the at will nature of the employment of
the Transferred Employees or the right of Buyer to alter or terminate any employee
benefit plan, program or arrangement.

 

(i)                                     The
Seller and all members of the Group shall each terminate, effective as of the
day immediately preceding the Closing Date, any and all Employee Plans, except
that if Buyer, in its sole discretions, assumes the Vytra health insurance plan
as of the Closing Date, then such plan shall not be terminated by Seller.  Buyer shall receive from Seller evidence that
all tax qualified Employee Plans have been terminated by the Seller and all
members of the Group pursuant to resolutions of each such entity’s Board of
Directors (the form and substance of such resolutions being subject to the
review and approval of Buyer), effective as of the day immediately preceding
the Closing Date. The Seller and each member of the Group shall submit, or have
submitted on its behalf, to the Internal Revenue Service an application for
determination of the tax-qualified status upon its termination of each Employee
Plan which is intended to qualify under Section 401(a) of the Code
and each trust intended to qualify under Section 501(a) of the
Code.  Each such application shall be (i) submitted
as soon as administratively possible following the Closing Date, and (ii) paid
for (including all related legal, administrative and other costs and expenses)
solely by the Seller.  The Seller shall
periodically notify Buyer of the status of each such submission and shall
provide Buyer with a copy of each determination letter, if and when received.  The Seller and all members of the Group shall
operate and maintain the Employee Plans in all respects in accordance with its
terms and in

 

23

 

compliance
with all applicable laws, statutes, orders, rules and regulations
including, without limitation, ERISA and the Code, until all amounts are
distributed from such Employee Plan.

 

4.2                                 Non-disclosure
of Confidential Information.  Neither
Seller, Stockholder, nor any affiliate thereof, shall divulge, communicate, or
use to the detriment of the Buyer or for the benefit of any other Person, or
misuse in any way, any confidential information pertaining to the Business or
the Purchased Assets.  For purposes
hereof, “confidential information” means information, including but not limited
to, technical or non technical data, a formula, pattern, compilation, program,
device, method, technique, drawing, process, marketing methods or data,
financial data, or list of actual or potential customers or suppliers, that: (i) is
sufficiently secret to derive economic value, actual or potential, from not
being generally known to other persons who can obtain economic value from its
disclosure or use; and (ii) is the subject of efforts that are reasonable
under the circumstance to maintain its secrecy or confidentiality.

 

4.3                                 Non-solicitation
of Employees.  Until the fifth
anniversary of the Closing Date, neither Seller, Stockholder nor any affiliate
thereof, shall, directly or indirectly, for itself or for any other person,
firm, corporation, partnership, association or other entity, (i) attempt
to employ or enter into any contractual arrangement with any employee or former
employee of Seller, unless such employee or former employee has not been
employed by Buyer for a period in excess of one year, or (ii) solicit
business from any person or entity that was a customer of Seller at any time
prior to the Closing Date or was a customer of Buyer at any time after the
Closing Date.

 

4.4                                 Non-Competition.  Until
the fifth anniversary of the Closing Date, neither Seller, Stockholder nor any
affiliate thereof, shall directly or indirectly, engage in, have any interest
in or engage in any transaction with, any sole proprietorship, partnership,
corporation or business or any other person or entity (whether as an employee,
officer, director, partner agent, security holder, creditor, consultant or
otherwise) that directly or indirectly engages in the business of providing
telephone answering services, message services, faxing services, paging
services, or other ancillary office services or any aspect thereof in the
states of Connecticut, New Jersey, Pennsylvania or New York; provided,  however,
that nothing contained herein shall be deemed to prevent or restrict Seller,
Stockholder or their affiliates, from owning up to 1% of the shares of any
class of capital  stock of any
corporation whose shares are listed on a national securities exchange or are
regularly traded in the over-the-counter market so long as neither Seller or
its affiliates actively participate or engage in the conduct of the business of
any such other corporation.

 

Seller and Stockholder acknowledge that the provisions of Sections 4.3
and 4.4, and the period of time, geographic area and scope and type of
restrictions on its activities set forth in Section 4.3 and 4.4, are
reasonable and necessary for the protection of Buyer and are an essential
inducement to Buyer’s entering into the transaction documents to which it is a
party and consummating the transactions contemplated thereby.  If, at the time of enforcement of Sections
4.3 or 4.4, a court shall hold that the period of time, geographic area or
scope or type of restrictions set forth in Sections 4.3 or 4.4 are unreasonable
under circumstances then existing, the parties hereto agree that the maximum
period of time, geographic area or scope or type of restrictions deemed
reasonable under such circumstances by such court shall be substituted for

 

24

 

the stated
period of time, geographic area or scope or type of restrictions set forth in
Sections 4.3 and 4.4.

 

4.5                                 Public
Statements.  From and after the date
hereof neither Buyer, on the one hand, or Seller or Stockholder, on the other
hand, shall, or permit any affiliate thereof to, either make, issue or release
any press release or any oral or written public announcement or statement
concerning or with respect to, or acknowledgment of the existence of, or reveal
the terms, conditions and status of the transactions contemplated hereby,
without the prior written consent of the other party or parties hereto, as the
case may be (which consent shall not be unreasonably withheld or delayed),
unless such announcement is required by law or a governmental authority, in
which case the other parties shall be given notice of such requirement prior to
such announcement and the parties shall consult with each other as to the scope
and substance of such disclosure. 
Notwithstanding the foregoing, Seller and Stockholder understand and
agree that Buyer’s parent company will file a Form 8-K with the U.S.
Securities and Exchange Commission in connection with the transactions
contemplated hereby.

 

4.6                                 Use
of Name.  As of the Closing Date,
Seller shall cease using the name “North Shore Answering Service” or words
similar thereto; provided, however, that Seller may use such name
for a period of 90 days after the Closing Date solely for, and only to the
extent necessary to, wind-down the corporate affairs of the Seller.

 

4.7                                 Purchase
Price Allocation.  For tax reporting
purposes, the Purchase Price shall be allocated among the Purchased Assets and
the goodwill of the Business in accordance with the mutual agreement of the
parties, such allocation to be set forth in writing prior to the Closing
Date.  For tax reporting purposes, Buyer
and Seller agree to report the transactions contemplated under this Agreement
in a manner consistent with the terms of this Agreement (including, without
limitation, the agreed upon purchase price allocation) and neither will take
any position inconsistent herewith in any tax related (i) return, (ii) refund
claim, or (iii) litigation.

 

4.8                                 Other
Actions.  Each of the parties hereto
hereby agree that from and after the date hereof they shall use all reasonable
efforts to:  (i) take, or cause to
be taken, all actions, (ii) do, or cause to be done, all things, and (iii) execute
and deliver all such documents, instruments and other papers, as in each case
may be necessary, proper or advisable under applicable laws, or reasonably
required in order to carry out the terms and provisions of this Agreement and
to consummate and make effective the transactions contemplated hereby, and to
vest in Buyer title to the Purchased Assets, free and clear of all Liens.  In addition, Seller and Stockholder will
cooperate with Buyer and use their best efforts to cause the conditions to
Buyer’s obligation to close the transaction contemplated hereunder to be
satisfied (including, without limitation, the execution and delivery of all
agreements contemplated hereunder to be executed and delivered) on or prior to
the Closing Date.

 

4.9                                 Payment
of Payables.  Following the Closing
Date, Seller will promptly pay any outstanding Payables, but in no event later
than 15 days from the Closing Date.

 

4.10                           Financial
Statements.  As soon as reasonably
practicable, but no later than 10 days from the Closing Date, Seller and
Stockholder shall provide to Buyer with the following unaudited financial
statements of the Seller (the “Financial Statements”): (i) balance
sheet of the

 

25

 

Seller as at September 30,
2005, and (ii) statements of income and cash flows for each of the Seller’s
last completed fiscal year ended December 31, 2004 and for the nine month
period ended September 30, 2005, all prepared in accordance with U.S.
generally accepted accounting principals. 
Seller and Stockholder shall cooperate fully with the Company’s
designated registered independent accounting firm in connection with the audit
of the Financial Statements, and shall cooperate fully with the Company in
connection with the preparation of the Financial Statements or any other
financial information required by the Company in connection with any of the
Company’s filings with the United States Securities and Exchange Commission.

 

4.11                           Discharge
of Liabilities.  Other than the
Assumed Liabilities, Seller shall, and Stockholder shall cause Seller to,
perform and discharge all Liabilities relating to the Business or the Purchased
Assets, as required under the terms and conditions with respect to such
Liabilities.

 

Section 5.                                            Survival
of Representations and Warranties.

 

5.1                                 Survival
of Representations and Warranties of Seller and Stockholder.  Notwithstanding any right of Buyer fully to
investigate the affairs of Seller and notwithstanding any knowledge of facts
determined or determinable by Buyer pursuant to such investigation or right of
investigation, Buyer has the right to rely fully upon the representations and
warranties of Seller and Stockholder contained in this Agreement or in any
other Purchase Document.  All such representations
and warranties shall survive the execution and delivery of this Agreement until
the third anniversary hereof.  Covenants
shall be binding and shall survive in accordance with their respective terms.

 

5.2                                 Survival
of Representations and Warranties of Buyer. 
Notwithstanding any right of Seller and Stockholder fully to investigate
the affairs of Buyer and notwithstanding any knowledge of facts determined or
determinable by Seller or Stockholder pursuant to such investigation or right
of investigation, Seller and Stockholder have the right to rely fully upon the
representations and warranties of Buyer contained in this Agreement or in any
other Purchase Document.  All such
representations and warranties shall survive the execution and delivery of this
Agreement until the third anniversary of the Closing Date.  Covenants shall be binding and shall survive
in accordance with their respective terms.

 

Section 6.                                            Indemnification.

 

6.1                                 Indemnification
by Seller and Stockholder.  Seller
and the Stockholder shall, jointly and severally, indemnify and defend Buyer
and each of its officers, directors, employees, shareholders, agents, advisors
or representatives (each, a “Buyer Indemnitee”) against, and hold each
Buyer Indemnitee harmless from, any loss, liability, obligation, deficiency,
damage or expense including, without limitation, interest, penalties,
reasonable attorneys’ and consultants’ fees and disbursements (collectively, “Damages”),
that any Buyer Indemnitee may suffer or incur based upon, arising out of,
relating to or in connection with any of the following (whether or not in
connection with any third party claim):

 

26

 

(a)                                  any
breach of any representation or warranty made by Seller or the Stockholder contained
in this Agreement or in any other Purchase Document or in respect of any third
party claim made based upon facts alleged which, if true, would constitute any
such breach;

 

(b)                                 Seller’s
or the Stockholder’s failure to perform or to comply with any covenant or
condition required to be performed or complied with by Seller or the
Stockholder contained in this Agreement or in any other Purchase Document;

 

(c)                                  the
ownership or operation of the Business or the Purchased Assets prior to the
Closing Date; or

 

(d)                                 the
ownership or operation of the Excluded Assets.

 

6.2                                 Indemnification
by Buyer.  Buyer shall indemnify and
defend Seller and each of Seller’s officers, managers, employees, members,
agents, advisors or representatives (each, a “Seller Indemnitee”) against,
and hold each Seller Indemnitee harmless from, any Damages that such Seller
Indemnitee may suffer or incur arising from, related to or in connection with
any of the following:

 

(a)                                  any
breach of any representation or warranty made by Buyer contained in this
Agreement or in any other  Purchase
Document or in respect of any third party claim made based upon facts alleged
which, if true, would constitute any such breach;

 

(b)                                 Buyer’s
failure to perform or to comply with any covenant or condition required to be
performed or complied with by Buyer contained in this Agreement or in any other
Purchase Document; or

 

(c)                                  the
ownership or operation of the Business or the Purchased assets, to extent
relating to activities of the Buyer after the Closing Date.

 

6.3                                 Indemnification
Procedures.

 

(a)                                  Promptly
after notice to an indemnified party of any claim or the commencement of any
action or proceeding, including any actions or proceedings by a third party
(hereafter referred to as “Proceeding” or “Proceedings”),
involving any Damage referred to in sections 6.1 and 6.2, such indemnified
party shall, if a claim for indemnification in respect thereof is to be made
against an indemnifying party pursuant to this section 6, give written
notice to the indemnifying party, setting forth in reasonable detail the nature
thereof and the basis upon which such party seeks indemnification hereunder; provided,
however, that the failure of any indemnified party to give such notice
shall not relieve the indemnifying party of its obligations hereunder, except
to the extent that the indemnifying party is actually prejudiced by the failure
to give such notice.

 

(b)                                 In
the case of any Proceeding by a third party against an indemnified party, the
indemnifying party shall, upon notice as provided above, assume the defense
thereof, with counsel reasonably satisfactory to the indemnified party, and,
after notice from the indemnifying party to the indemnified party of its
assumption of the defense thereof, the

 

27

 

indemnifying
party shall not be liable to such indemnified party for any legal or other
expenses subsequently incurred by the indemnified party in connection with the
defense thereof (but the indemnified party shall have the right, but not the
obligation, to participate at its own cost and expense in such defense by
counsel of its own choice) or for any amounts paid or foregone by the
indemnified party as a result of any settlement or compromise thereof that is
effected by the indemnified party (without the written consent of the
indemnifying party).

 

(c)                                  Anything
in this Section 6 notwithstanding, if both the indemnifying party and the
indemnified party are named as parties or subject to such Proceeding and the
indemnified party determines with advice of counsel that there may be one or
more legal defenses available to it that are different from or additional to
those available to the indemnifying party or that a material conflict of
interest between such parties may exist in respect of such Proceeding, then
upon written notice by the indemnified party of such determination, the
indemnifying party shall not assume the defense on behalf of the indemnified
party, and after notice to such effect is duly given hereunder to the
indemnifying party, the indemnifying party shall be relieved of its obligation
to assume the defense on behalf of the indemnified party, but shall be required
to pay any legal or other expenses including, without limitation, reasonable
attorneys’ fees and disbursements, incurred by the indemnified party in such
defense.  In all events, the indemnifying
party will pay all amounts specified under Sections 6.1 or 6.2, as the case may
be.

 

(d)                                 If
the indemnifying party assumes the defense of any such Proceeding, the
indemnified party shall cooperate fully with the indemnifying party and shall
appear and give testimony, produce documents and other tangible evidence, allow
the indemnifying party access to the books and records of the indemnified party
and otherwise assist the indemnifying party in conducting such defense.  No indemnifying party shall, without the
consent of the indemnified party, consent to entry of any judgment or enter
into any settlement or compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party
of a release from all liability in respect of such claim or Proceeding.
Provided that proper notice is duly given, if the indemnifying party shall fail
promptly and diligently to assume the defense thereof, then the indemnified
party may respond to, contest and defend against such Proceeding and may make
in good faith any compromise or settlement with respect thereto, and recover
from the indemnifying party the entire cost and expense thereof including,
without limitation, reasonable attorneys’ fees and disbursements and all
amounts paid or foregone as a result of such Proceeding, or the settlement or
compromise thereof.  The indemnification
required hereunder shall be made by periodic payments of the amount thereof
during the course of the investigation or defense, as and when bills or
invoices are received or loss, liability, obligation, damage or expense is
actually suffered or incurred.

 

6.4                                 Right
to Set-Off.  Buyer shall have the
right, but not the obligation, to set-off (i) the amount of any and all
Damages for which Seller or Stockholder may
become liable to Buyer under any provisions of this Agreement, against any sums
otherwise payable to Seller or Stockholder hereunder, or under any other
document or instrument executed and delivered pursuant to this Agreement or
contemplated hereby including, without limitation, any amounts payable to
Seller or Stockholder pursuant to Section 1.3(b) or Section 1.6,
but not including the Management Employment Agreement.  Buyer
will not exercise any right to set-off until it has

 

28

 

given Seller
and Stockholder not less than five (5) days notice within which period
Seller and Stockholder shall have the right to pay the amount of the Damages
proposed by Buyer in cash.  The remedies
provided herein shall be cumulative and shall not preclude assertion by any
party hereto of any other rights or the seeking of any other remedies against
any other party hereto.  No assertion of
the right of set-off shall impair Buyer’s title in the Purchased Assets or any
other of Buyer’s rights under this Agreement.

 

Section 7.                                            Miscellaneous.

 

7.1                                 Termination.  (a)  This Agreement may be terminated by
either Buyer, on the one hand, or the Seller, on the other hand, if any
condition precedent to the terminating party’s obligation to consummate the
transactions contemplated hereby has not been satisfied on or prior to October 7,
2005.

 

(b)                                 In
the event of termination of this Agreement as provided above, all of the
parties’ obligations under this Agreement shall terminate, except that the
provisions of this Section 7.1 and the provisions of Sections 6.1, 6.2,
7.6, 7.7 and 7.8 shall survive any such termination; provided, however,
that the non-breaching party shall be entitled pursue any claims for Damages
from the breaching party with respect to any breach prior to such termination,
which claims shall survive termination, including without limitation, attorney’s
fees and the right to pursue any remedy at law or equity.

 

7.2                                 Transaction
Fees and Expenses.  Each party hereto
shall bear such costs, fees and expenses as may be incurred by it in connection
with this Agreement and the transactions contemplated hereby, including each
party’s respective attorneys costs and fees.

 

7.3                                 Notices.  Any notice, demand, request or other
communication which is required, called for or contemplated to be given or made
hereunder to or upon any party hereto shall be deemed to have been duly given
or made for all purposes:  if (a) in
writing and sent by (i) messenger or a recognized national overnight
courier service for next day delivery with receipt therefor, or (ii) certified
or registered mail, postage paid, return receipt requested, or (b) sent by
facsimile transmission with a written copy thereof sent on the same day by
postage paid first-class mail or (c) by personal delivery to such party at
the following address:

 

To Buyer:

 

c/o American Medical Alert Corp.

3265 Lawson Boulevard

Oceanside, New York 111572

Attention: Mr. Jack Rhian

Facsimile No.: (516) 536-5276

 

29

 

with a copy to:

 

Moses & Singer LLP

The Chrysler Building

405 Lexington Avenue

New York, New York  10174

Attention:  James Alterbaum

Facsimile No.: (212) 554-7700

 

To Seller or Stockholder at:

 

91 Harbor Road

Head of the Harbor, NY 11780

Attention: Mel Roberts

Facsimile No.: (631) 862-8785

 

with respect to each of Seller and the Stockholder, with a copy to:

 

Michael Jannuzzi

775 Park Avenue, Suite 205

Huntington, NY 11743

Facsimile No.: (631) 385-7664

 

or such other
address as either party hereto may at any time, or from time to time, direct by
notice given to the other party in accordance with this section.  The date of giving or making of any such notice
or demand shall be, in the case of clause (a)(i), the date of the receipt, in
the case of clause (a)(ii), five business days after such notice or demand is
sent, and, in the case of clause (b), the business day next following the date
such notice or demand is sent, and in the case of clause (c), upon
delivery.  A copy of any notice to the
Stockholder shall be sent concurrently to Seller and a copy of any notice to
Seller shall be sent concurrently to the Stockholder.

 

7.4                                 Amendment.  Except as otherwise provided herein, no
amendment of this Agreement shall be valid or effective unless in writing and
signed by or on behalf of all parties hereto.

 

7.5                                 Waiver.  No course of dealing of any party hereto, no
omission, failure or delay on the part of any party hereto in asserting or
exercising any right hereunder, and no partial or single exercise of any right
hereunder by any party hereto shall constitute or operate as a waiver of any
such right or any other right hereunder. 
No waiver of any provision hereof shall be effective unless in writing
and signed by or on behalf of the party to be charged therewith.  No waiver of any provision hereof shall be
deemed or construed as a continuing waiver, as a waiver in respect of any other
or subsequent breach or default of such provision, or as a waiver of any other
provision hereof unless expressly so stated in writing and signed by or on
behalf of the party to be charged therewith. 
Buyer’s receipt of information contained herein shall not be deemed to
waive any of Buyer’s rights under the indemnification provisions of Section 6.

 

30

 

7.6                                 Governing
Law.  This Agreement shall be
governed by, and interpreted and enforced in accordance with, the internal laws
of the State of  New York, other than those which
would defer to the substantive laws of another jurisdiction.

 

7.7                                 Jurisdiction.  Each of the parties hereto hereby irrevocably
consents and submits to the exclusive jurisdiction of the Federal and State
Courts of Nassau County in connection with any claim or dispute arising out of
or relating to this Agreement or the transactions contemplated hereby, waives
any objection to venue in such Nassau County and agrees that service of any
summons, complaint, notice or other process relating to such claim or dispute
may be effected in the manner provided by Section 7.3.

 

7.8                                 Remedies.  In the event of any actual or prospective
breach or default by any party hereto, the other parties shall be entitled to
equitable relief, including remedies in the nature of rescission, injunction
and specific performance.  All remedies
hereunder are cumulative and not exclusive. 
Nothing contained herein and no election of any particular remedy shall
be deemed to prohibit or limit any party from pursuing, or be deemed a waiver
of the right to pursue, any other remedy or relief available now or hereafter
existing at law or in equity (whether by statute or otherwise) for such actual
or prospective breach or default, including the recovery of damages.

 

7.9                                 Severability.  The provisions hereof are severable and if
any provision of this Agreement shall be determined to be legally invalid,
inoperative or unenforceable in any respect by a court of competent
jurisdiction, then the remaining provisions hereof shall not be affected, but
shall, subject to the discretion of such court, remain in full force and
effect, and any such invalid, inoperative or unenforceable provision shall be
deemed, without any further action on the part of the parties hereto, amended
and limited to the extent necessary to render such provision valid, operative
and enforceable.

 

7.10                           Further
Assurances.  Each party hereto
covenants and agrees promptly to execute, deliver, file or record such
agreements, instruments, certificates and other documents and to perform such
other and further acts as the other party hereto may reasonably request or as
may otherwise be necessary or proper to consummate and perfect the transactions
contemplated hereby.

 

7.11                           Assignment.  This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto,
their heirs and their respective successors and assignees; provided, however,
that Seller and Stockholder shall not assign any of its or their respective
rights or delegate any duties hereunder without the prior written consent of
Buyer.

 

7.12                           No
Third Party Beneficiaries.  Nothing
contained in this Agreement, whether express or implied, is intended, or shall
be deemed, to create or confer any right, interest or remedy for the benefit of
any Person other than as otherwise provided in this Agreement.

 

7.13                           Entire
Agreement.  This Agreement (including
all the schedules and exhibits hereto), together with the Exhibits, Schedules,
certificates and other documentation

 

31

 

referred to
herein or required to be delivered pursuant to the terms hereof, contains the
terms of the entire agreement among the parties with respect to the subject
matter hereof and supersedes any and all prior agreements, commitments,
understandings, discussions, negotiations or arrangements of any nature
relating thereto.

 

7.14                           Headings.  The headings contained in this Agreement are
included for convenience and reference purposes only and shall be given no
effect in the construction or interpretation of this Agreement.

 

7.15                           Counterparts.  This Agreement may be executed in any number
of counterparts and delivered by facsimile, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

 

[Rest of page intentionally left blank]

 

32

 

IN WITNESS WHEREOF, the undersigned have executed this Asset Purchase
Agreement as of the date first set above.

 

	
  Seller:

  	
  WMR ASSOCIATES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Melchior Roberts

  	
   

  
	
   

  	
   

  	
  Name:
  William Melchior Roberts

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  Stockholder:

  	
  /s/ William Melchior Roberts

  	
   

  
	
   

  	
  William
  Melchior Roberts

  
	
   

  	
   

  
	
   

  	
   

  
	
  Buyer:

  	
  NORTH SHORE ANSWERING SERVICE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Rhian

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jack Rhian

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

American
Medical Alert Corp., a New York corporation and the sole stockholder of North
Shore Answering Service, Inc., hereby guarantees the performance of Buyer’s
obligations pursuant to Section 1.3(b) of this Agreement.

 

	
   

  	
  AMERICAN MEDICAL ALERT CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Rhian

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jack Rhian

  
	
   

  	
   

  	
  Title:

  	
  President
  and COO

  
					

 

33

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