Document:

EXHIBIT
4.13

       

      

      

      MEMBERSHIP
INTERESTS PURCHASE AGREEMENT

      

      

      AMONG

      

      

      MILBRIDGE
IV, LLC

      

      AS THE
BUYER

      

      

      VAN DER
MOOLEN HOLDING N.V.

      

      AS THE
GUARANTOR

      

      

      AND

      

      

      THE
SELLERS NAMED HEREIN

      

      

      

      Dated as
of August 1, 2007

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE
OF CONTENTS

       

      
        
          	 
      	 
      	
                  Page

                
	 
      	 
      	 
      
	
                  ARTICLE
      I

                	
                  DEFINITIONS

                	
                  1

                
	
                  Section
      1.1

                	
                  Definitions

                	
                  1

                
	
                  Section
      1.2

                	
                  Other
      Terms

                	
                  9

                
	 
      	 
      	 
      
	
                  ARTICLE
      II

                	
                  PURCHASE
      AND SALE OF THE INTERESTS

                	
                  9

                
	
                  Section
      2.1

                	
                  Purchase
      and Sale of Interests

                	
                  9

                
	
                  Section
      2.2

                	
                  Purchase
      Price

                	
                  9

                
	
                  Section
      2.3

                	
                  Payment
      of Purchase Price

                	
                  10

                
	
                  Section
      2.4

                	
                  Taxes
      on Sale; Offset Against Deferred Payments

                	
                   10

                
	
                  Section
      2.5

                	
                  Determination
      of NTP; Dispute Resolution

                	
                  11

                
	
                  Section
      2.6

                	
                  The
      Closing

                	
                  12

                
	
                  Section
      2.7

                	
                  Deliveries
      at Closing

                	
                  12

                
	
                  Section
      2.8

                	
                  Allocation

                	
                  12

                
	 
      	 
      	 
      
	
                  ARTICLE
      III

                	
                  REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

                	
                  12

                
	
                  Section
      3.1

                	
                  Organization
      and Subsidiaries

                	
                   12

                
	
                  Section
      3.2

                	
                  Capitalization

                	
                  12

                
	
                  Section
      3.3

                	
                  Power
      and Authority; Effect of Agreement; No Violation

                	
                  13

                
	
                  Section
      3.4

                	
                  Financial
      Statements

                	
                  14

                
	
                  Section
      3.5

                	
                  Absence
      of Certain Changes or Events

                	
                  14

                
	
                  Section
      3.6

                	
                  Title
      to Properties and Assets (other than Intellectual
Property)

                	
                  15

                
	
                  Section
      3.7

                	
                  Tax
      Matters

                	
                  16

                
	
                  Section
      3.8

                	
                  Compliance
      with Law; Governmental Permits

                	
                  17

                
	
                  Section
      3.9

                	
                  Leased
      Assets

                	
                  18

                
	
                  Section
      3.10

                	
                  Intellectual
      Property

                	
                  18

                
	
                  Section
      3.11

                	
                  Accounts
      Receivable; Accounts Payable

                	
                  19

                
	
                  Section
      3.12

                	
                  Employees
      and Consultants

                	
                  19

                
	
                  Section
      3.13

                	
                  Labor
      Matters and Employment Standards

                	
                  20

                
	
                  Section
      3.14

                	
                  Employee
      Benefit and Pension Plans

                	
                  20

                
	
                  Section
      3.15

                	
                  Contracts

                	
                  21

                
	
                  Section
      3.16

                	
                  No
      Violation, Litigation or Regulatory Action

                	
                  22

                
	
                  Section
      3.17

                	
                  Insurance

                	
                  23

                
	
                  Section
      3.18

                	
                  Environmental
      Matters

                	
                  23

                
	
                  Section
      3.19

                	
                  Indebtedness

                	
                  23

                
	
                  Section
      3.20

                	
                  Liabilities

                	
                  23

                
	
                  Section
      3.21

                	
                  Absence
      of Certain Business Practices

                	
                  24

                
	
                  Section
      3.22

                	
                  Potential
      Conflicts of Interest

                	
                  24

                
	
                  Section
      3.23

                	
                  Books
      and Records

                	
                  25

                
	
                  Section
      3.24

                	
                  No
      Finder

                	
                  25

                
	
                  Section
      3.25

                	
                  No
      Withdrawals

                	
                  25

                
	 
      	 
      	 
      
	
                  ARTICLE
      IV

                	
                  REPRESENTATIONS
      AND WARRANTIES OF THE SELLERS

                	
                  25

                
	
                  Section
      4.1

                	
                  Authority;
      Effect of Agreement

                	
                  25

                

        

         

         

        
          
            
            

          

          
            i

            
              

            

          

          
            
            

          

        

         

        
          	
                  Section
      4.2

                	
                  Ownership
      of Interests

                	
                  25

                
	 
      	 
      	 
      
	
                  ARTICLE
      V

                	
                  REPRESENTATIONS
      AND WARRANTIES OF THE BUYER

                	
                  26

                
	
                  Section
      5.1

                	
                  Organization

                	
                  26

                
	
                  Section
      5.2

                	
                  Authorization
      and Validity of Agreement

                	
                  26

                
	
                  Section
      5.3

                	
                  Consents
      and Approvals

                	
                  26

                
	
                  Section
      5.4

                	
                  No
      Conflict or Violation

                	
                  26

                
	
                  Section
      5.5

                	
                  Litigation

                	
                  27

                
	
                  Section
      5.6

                	
                  No
      Finder

                	
                  27

                
	
                  Section
      5.7

                	
                  Acquisition
      of Membership Interests for Investment; Ability to Evaluate and Bear
      Risk

                	
                  27

                
	
                  Section
      5.8

                	
                  Guarantor

                	
                  27

                
	 
      	 
      	 
      
	
                  ARTICLE
      VI

                	
                  POST-CLOSING
      COVENANTS

                	
                  28

                
	
                  Section
      6.1

                	
                  Efforts

                	
                  28

                
	
                  Section
      6.2

                	
                  Acquisitions

                	
                  28

                
	
                  Section
      6.3

                	
                  Confidentiality

                	
                  29

                
	
                  Section
      6.4

                	
                  Public
      Announcement

                	
                  29

                
	
                  Section
      6.5

                	
                  Tax
      Matters

                	
                  29

                
	
                  Section
      6.6

                	
                  Name

                	
                  30

                
	
                  Section
      6.7

                	
                  Separate
      Entity

                	
                  30

                
	
                  Section
      6.8

                	
                  Management
      Team

                	
                  31

                
	
                  Section
      6.9

                	
                  Day
      to Day Management

                	
                  31

                
	
                  Section
      6.10

                	
                  Capitalization

                	
                  31

                
	 
      	 
      	 
      
	
                  ARTICLE
      VII

                	
                  INDEMNIFICATION

                	
                  31

                
	
                  Section
      7.1

                	
                  Survival
      of Representations, Warranties and Covenants

                	
                  31

                
	 
      	 
      	 
      
	
                  ARTICLE
      VIII

                	
                  MISCELLANEOUS

                	
                  35

                
	
                  Section
      8.1

                	
                  Notices

                	
                  35

                
	
                  Section
      8.2

                	
                  Entire
      Agreement

                	
                  36

                
	
                  Section
      8.3

                	
                  Assignment;
      Binding Effect; No Third Party Beneficiary

                	
                  36

                
	
                  Section
      8.4

                	
                  Fees
      and Expenses

                	
                  36

                
	
                  Section
      8.5

                	
                  Amendments

                	
                  36

                
	
                  Section
      8.6

                	
                  Waivers

                	
                  36

                
	
                  Section
      8.7

                	
                  Severability

                	
                  37

                
	
                  Section
      8.8

                	
                  Captions

                	
                  37

                
	
                  Section
      8.9

                	
                  Counterparts;
      Facsimile Delivery

                	
                  37

                
	
                  Section
      8.10

                	
                  Governing
      Law

                	
                  37

                
	
                  Section
      8.11

                	
                  Arbitration

                	
                  37

                
	
                  Section
      8.12

                	
                  Construction

                	
                  37

                
	
                  Section
      8.13

                	
                  Negotiated
      Agreement

                	
                  38

                
	
                  Section
      8.14

                	
                  Authority
      of the Seller Representatives

                	
                  38

                
	
                  Section
      8.15

                	
                  Guaranty

                	
                  40

                

        

      

       

      
 

      
        
          
          

        

        
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      MEMBERSHIP
INTERESTS PURCHASE AGREEMENT (this “Agreement”), dated as
of August 1, 2007, among Milbridge IV, LLC, a New York limited liability
company, (the “Buyer”) and, solely
with respect to Section 8.15 hereof,
Van der Moolen Holding N.V., a Dutch limited liability company (the “Guarantor”), and
those members listed on Schedule A attached
hereto (collectively, the “Sellers”).

       

      WHEREAS,
the Sellers collectively own all of the issued and outstanding membership
interests (the “Membership Interests”
of Robbins & Henderson LLC, a New York limited liability company (the “Company”);

       

      WHEREAS,
the Buyer desires to acquire the business conducted by the Company;
and

       

      WHEREAS,
the Buyer desires to purchase, and the Sellers desires to sell, all of the
outstanding Membership Interests, upon the terms and subject to the conditions
set forth herein;

       

      NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreement contained herein, the parties hereby agree as follows:

       

      ARTICLE
I

       

      DEFINITIONS

       

      Section
1.1              Definitions.  When
used in this Agreement, the following terms shall have the meanings set forth in
this Section
1.1.  All Article and Section numbers used in this Agreement
refer to Articles and Sections of this Agreement unless otherwise specifically
described.

       

      “2007 NTP” shall mean
the NTP for the period commencing January 1, 2007 and ending on December 31,
2007.

       

      “2008 NTP” shall mean
the NTP for the period commencing January 1, 2008 and ending on December 31,
2008.

       

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

       

      “Agreement” shall have
the meaning set forth in the preamble.

       

      “Balance Sheets” shall
have the meaning set forth in Section
2.5(a).

       

      “Business” shall mean
floor trading on The New York Stock Exchange.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Business Day” shall
mean any day other than a Saturday, Sunday or a day on which banks in New York,
New York are authorized or obligated by Law to close.

       

      “Business Intellectual
Property” shall mean the Intellectual Property used, and trademarks
intended to be used as evidenced by a duly filed trademark application, in
connection with the Business.

       

      “Buyer” shall have the
meaning set forth in the preamble.

       

      “Capital Balances”
shall mean the total amount of capital of the Sellers in the Company which
equals $1,000,000 at August 1, 2007.

       

      “Cause” shall have the
meaning set forth in the Employment Agreements.

       

      “Closing” shall have
the meaning set forth in Section
2.6.

       

      “Closing Date” shall
have the meaning set forth in Section
2.6.

       

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

       

      “Company” shall have
the meaning set forth in the recitals hereto.

       

      “Company Financial
Statements” shall have the meaning set forth in Section
3.4.

       

      “Contingent
Obligation” shall mean, with respect to any Person, any obligation or
arrangement of such Person to guarantee or intended to guarantee any
Indebtedness, capitalized leases, dividends or other payment obligations (“primary obligations”)
of any other Person (the “primary obligor”) in
any manner, whether directly or indirectly, including, without limitation, (a)
the direct or indirect guarantee, endorsement (other than for collection or
deposit in the ordinary course of business consistent with past practice),
co-making, assumption, discounting with recourse or sale with recourse by such
Person of any primary obligation of a primary obligor, (b) the obligation to
make take-or-pay or similar payments, if required, regardless of nonperformance
by any other party or parties to an agreement or (c) any obligation of such
Person, whether or not contingent, (i) to purchase any such primary obligation
or any property constituting direct or indirect security therefor, (ii) to
advance or supply funds (a) for the purchase or payment of any such primary
obligation or (b) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary
obligor, (iii) to purchase property, assets, securities or services primarily
for the purpose of assuring the owner of any such primary obligation of the
ability of the primary obligor to make payment of such primary obligation or
(iv) otherwise to assure or hold harmless the holder of such primary obligation
against loss in respect thereof.  The amount of any Contingent
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Contingent Obligation
is made (or, if less, the maximum amount of such primary obligation for which
such Person may be liable pursuant to the terms of the instrument evidencing
such Contingent Obligation) or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is
required to perform thereunder), as determined by such Person in good
faith.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Contract” shall mean
any written or oral note, bond, mortgage, indenture, lease or other agreement or
arrangement.

       

      “Direct Trading
Expenses” shall mean all costs directly related to the Company’s
activities, including, but not limited to, (1) self regulatory organization fees
and dues; (2) commissions and clearance fees; (3) other market access expenses
(including the cost of any self regulatory organization memberships used by the
Company); (4) financing costs used on capital used by the Company at a rate of
 *; (5) market data charges; (6) communications costs; (7) salaries and
bonus costs (including, without limitation, those bonus costs related to the
Original Bonus Pool (as defined in the Employment Agreements) and the New
Business Pool (as defined in the Employment Agreements); (8) travel and
entertainment expenses; and (9) fixed monthly fees of * per revenue-generating
employee of the Company from the Closing Date until the end of 2007 and *
per revenue-generating employee annually until the end of 2008, for costs
relating to support functions provided to the Company by personnel of the
Company (including, without limitation, information technology, accounting,
compliance, legal and administration).

       

      “Documents” shall
mean, collectively, each agreement, instrument, document and certificate,
including this Agreement, necessary for the consummation of the transactions
contemplated by this Agreement.

       

      “Earnout Period” shall
mean the period from the date hereof to December 31, 2008.

       

      “Employment
Agreements” shall mean the employment agreements entered into in
connection with the transactions contemplated by this Agreement between the
Company and each of the Principals.

       

      “Environmental Laws”
shall mean, to the extent applicable, the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. 9601 et seq., as amended; the Resource
Conservation and Recovery Act, 42 U.S.C. 6901 et seq., as amended; the Clean Air
Act, 42 U.S.C. 7401 et seq., as amended; the Clean Water Act, 33 U.S.C. 1251 et
seq., as amended; the Occupational Safety and Health Act, 29 U.S.C. 655 et seq.;
and any other Laws, in effect as at or prior to the Closing Date, imposing
liability or establishing standards of conduct for protection of the environment
or pertaining to Hazardous Substances.

       

      “Exchange Act” shall
mean the U.S. Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

       

      “FCPA” shall have the
meaning set forth in Section
3.21.

       

      “GAAP” shall mean
United States generally accepted accounting principles.

       

      “Good Reason” has the
meaning set forth in the Employment Agreements.

       

      “Governmental Entity”
shall mean any government or any court, arbitral tribunal, administrative agency
or commission or other governmental or other regulatory authority or agency,
federal, state, local or foreign.

       

      
        

      

      
        *
Indicates omission of material which has been separately filed pursuant to a
request for confidential treatment

         

         

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      “Guarantor” shall have
the meaning set forth in the preamble.

       

      “Hazardous Substances”
shall include, without regard to amount or concentration (a) any element,
compound, gas or chemical that is defined, listed or otherwise classified as a
toxic pollutant, toxic or hazardous substance, extremely hazardous substance or
chemical, hazardous material, hazardous waste, medical waste, biohazardous or
infectious waste, or special waste under applicable Environmental Laws; (b)
petroleum, petroleum-based or petroleum-derived products; (c) any substance
exhibiting a hazardous waste characteristic including but not limited to
corrosivity, ignitibility, toxicity or reactivity as well as any radioactive or
explosive materials; and (d) any substance containing polychlorinated biphenyls,
asbestos, lead, urea formaldehyde or radon gas.

       

      “Indebtedness” shall
mean indebtedness of any Person at any date of determination, including, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all
obligations of such Person for the deferred and unpaid purchase price of
property or services (other than trade payables and accrued current liabilities
incurred in the ordinary course of such Person’s business consistent with past
practice), (c) all obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments, (d) all obligations of such Person
created or arising under any conditional sale or other title retention agreement
with respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (e) all obligations of
such Person as lessee under capitalized leases and synthetic leases, (f) all
obligations of such Person under acceptances, letters of credit or similar
facilities, (g) all obligations of such Person to purchase, redeem, retire,
defease or otherwise make any payment in respect of any equity interests in such
Person or any other Person or any warrants, rights or options to acquire such
equity interests (in each case, pursuant to the terms of such equity interests)
if the failure to pay such monetary obligations allows the holders of such
equity interests to exercise remedies or additional rights against such Person,
valued, in the case of any redeemable preferred equity interests, at the greater
of its voluntary or involuntary liquidation preference plus accrued and unpaid
dividends, (h) all obligations of such Person in respect of interest rate hedge
agreements (as such obligations are valued therein), (i) all Contingent
Obligations of such Person, (j) all bank overdrafts and (k) all indebtedness and
other payment obligations referred to in clauses (a) through (j) above of
another Person secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on property
(including, without limitation, accounts and Contract rights) owned by such
Person, even though such Person has not assumed or become liable for the payment
of such indebtedness or other payment obligations.

       

      “Indemnified Party”
shall have the meaning set forth in Section
7.1(d)(1).

       

      “Indemnifying Party”
shall have the meaning set forth in Section
7.1(d)(1).

       

      “Indemnity Cap” shall
have the meaning set forth in Section
7.1(e).

       

      “Intellectual
Property” shall mean all intellectual property rights, including patents,
trademarks, service marks, internet domain names, slogans, trade names, and the
goodwill associated with any of the foregoing, copyrights, in both published and
unpublished 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      works, and
all registrations and applications for any of the foregoing, franchises,
licenses, proprietary know-how, proprietary trade secrets, proprietary customer
lists, proprietary vendor lists, proprietary information, proprietary processes,
proprietary formulae, proprietary computer programs and applications,
proprietary layouts, proprietary specifications, proprietary designs,
proprietary patterns, proprietary inventions, proprietary development tools and
all documentation and media constituting, describing or relating to the above,
including manuals, memoranda and records wherever created throughout the
world.

       

      “Intellectual Property
Contracts” shall mean all contracts concerning the Business Intellectual
Property to which the Company is a party.

       

      “Knowledge of the
Buyer” means the knowledge of Richard den Drijver and Paul Vroling after
reasonable due inquiry.

       

      “Knowledge of the Seller
Representatives” means the knowledge of the Seller Representatives after
reasonable due inquiry.

       

      “Law” shall mean any
law, statute, ordinance, rule, regulation, code, writ, injunction, judgment,
ruling, order, award, resolution, edict, requirement, decree, rule of common or
civil law or treaty of any Governmental Entity.

       

      “Leased Real Property”
shall have the meaning set forth in Section
3.6(b).

       

      “Liabilities” shall
mean any direct or indirect Indebtedness (including capitalized leases),
liability, claim, loss, damage or obligation, whether known or unknown, fixed or
unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured,
subordinated or unsubordinated, matured or unmatured, accrued, absolute,
contingent or otherwise, whether asserted or unasserted including, without
limitation, liabilities on account of Taxes, and other governmental, regulatory
or administrative charges or lawsuits brought, whether or not of a kind required
by GAAP to be set forth on a financial statement.

       

      “Licensed-In Intellectual
Property” shall mean the Intellectual Property licensed pursuant to
contract by other Persons to the Company or any Affiliate thereof for use in
connection with the Business.

       

      “Licensed-Out Intellectual
Property” shall mean the Business Intellectual Property licensed pursuant
to contract by the Company or any Affiliate thereof to any other
Persons.

       

      “Lien” shall mean any
lien (including, without limitation, liens imposed by Law, such as, but not
limited to, mechanics liens), claim, charge, security interest, mortgage,
pledge, easement, encumbrance, condition, covenant or restriction of record,
zoning or similar restriction, conditional sale or other title retention
agreement, action, equity or adverse claim.

       

      “Loss” shall have the
meaning set forth in Section
7.1(b).

       

      “Management Team”
shall have the meaning set forth in Section
6.8.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      “Material Adverse
Effect” shall mean a material adverse effect on the business, assets,
results of operations or financial condition of the Company; provided, however, that “Material Adverse
Effect” shall not include (i) events or conditions that generally affect
the securities industry unless such events of conditions disproportionately
affect the Company’s business; or (ii) general economic conditions, unless such
general economic conditions disproportionately affect the Company’s business as
compared to the general economy.

       

      “Material Contract”
shall have the meaning set forth in Section
3.15.

       

      “Membership Interests”
shall have the meaning set forth in the recitals hereto.

       

      “Net Trading Profit”
or “NTP” shall
be calculated in accordance with the Company’s historical methods, which methods
were used to determine the Company’s audited financial statements, and shall
equal commissions and other income earned by the Company less Direct Trading
Expenses.

       

      “Organizational
Documents” shall mean (i) the memorandum, articles and/or certificate of
incorporation and/or association and the bylaws of a corporation; (ii) the
partnership agreement and any statement of partnership of a general partnership;
(iii) the limited partnership agreement and the certificate of limited
partnership of a limited partnership; (iv) any charter, certificate of formation
or similar document adopted or filed in connection with the creation, formation
or organization of a Person, including, with respect to a limited liability
company, its member and/or operating agreement; and (v) any amendment to the
foregoing.

       

      “Other Filings” shall
mean any filings required to be filed by the Buyer or the Company with any
Governmental Entity under the Securities Act, the Exchange Act, any stock
exchange rule or any other federal, state, local or foreign Laws in connection
with the transactions contemplated hereby.

       

      “Pension Plans” shall
mean, collectively, “employee pension benefit
plans” within the meaning of Section 3(2) of
ERISA.

       

      “Permits” shall mean,
with respect to a Person, all licenses, franchises, permits, zoning permits,
privileges, immunities, orders, approvals, registrations, easements, rights and
other authorizations (including all applications therefor) of any Governmental
Entity which are material or necessary to entitle such Person to own, lease,
operate or use its assets and properties or to carry on and conduct its business
as usually conducted.

       

      “Permitted Liens”
shall mean any Liens (i) for a liability reflected or referred to in the
Financial Statements, (ii) for a liability referred to in Schedule 1.1 hereto,
(iii) for Taxes that are (a) not yet due or payable or delinquent or (b) being
contested in good faith and for which adequate reserves have been made in the
Financial Statements, (iv) that constitute mechanics’, carriers’, workers’ or
similar liens, or (v) related to any matters, whether or not of record,
affecting the title of the lessor (and any underlying lessor) of the Leased Real
Property, and that do not materially detract from the value of or materially
impair the existing use of the property or assets affected by such
Liens.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

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

       

      “Principals” shall
mean Thomas M. Hearden and John Gilmartin.

       

      “Promoter” shall have
the meaning set forth in Section
3.7(g).

       

      “Pro Rata Share” shall
have the meaning set forth in Section
2.3(b).

       

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

       

      “Realty Leases” shall
have the meaning set forth in Section
3.6(b).

       

      “Recoveries” means any
indemnity, insurance, contribution or other similar payments recovered or
recoverable by either the Buyer or the Company or their respective Affiliates
from a third-party with respect to a Loss.

       

      “Registered” shall
mean issued, registered or renewed with any Governmental Entity.

       

      “Regulatory Indemnity
Cap” shall have the meaning set forth in Section
7.1(e).

       

      “Representatives”
shall have the meaning set forth in Section
7.1(b).

       

      “Requisite Seller Regulatory
Approvals” shall have the meaning set forth in Section
3.3(c).

       

      “Return of Capital”
shall have the meaning set forth in Section
2.2(b).

       

      “Sale of the Business”
shall mean a bona fide sale of the Company to a third party that is not an
Affiliate of the Company and/or the Guarantor, whether directly or pursuant to a
merger, consolidation or otherwise, a purchase of all or substantially all of
such entity’s assets or a purchase of fifty percent (50%) or more of such
entity’s outstanding shares of capital stock.

       

      “SEC” shall mean the
Securities and Exchange Commission.

       

      “Securities Act” shall
mean the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

       

      “Seller
Representatives” means the Principals, or any other Seller(s) designated
as Seller Representative(s) pursuant to Section 8.15 of this
Agreement.

       

      “Sellers” shall have
the meaning set forth in the preamble.

       

      “Special Supervisory
Procedure” shall mean the supervisory procedures defined in Rule
3010(b)(2)(H) of the NASD Rules and Regulations.

       

      “Statements of NTP”
shall have the meaning set forth in Section
2.5(a).

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      “Straddle Period”
shall have the meaning set forth in Section
6.5(a).

       

      “Subsidiary” shall
mean, when used with reference to any Person, any corporation, partnership,
limited liability company, joint venture, stock company or other entity of which
such Person (either acting alone or together with its other Subsidiaries),
directly or indirectly, owns or has the power to vote or to exercise a
controlling influence with respect to 50% of more of the capital stock or other
voting interests, the holders of which are entitled to vote for the election of
a majority of the board of directors or any similar governing body of such
corporation, partnership, limited liability company, joint venture, stock
company or other entity.

       

      “Suit” shall have the
meaning set forth in Section
3.10(g).

       

      “Tax” (or, when
referring to more than one Tax, the term “Taxes”) shall mean
any federal, state, provincial, local, city or foreign net income, gross income,
net receipts, gross receipts, profit, severance, property, production, sales,
use, license, excise, franchise, employment, payroll, withholding, alternative
or add-on minimum, ad valorem, value-added, transfer, stamp or other tax,
custom, duty, fee or other governmental charge of any kind, together with any
interest, fine, penalty, addition to tax or additional amount imposed with
respect thereto.

       

      “Tax Benefit” shall
mean the amount of the actual reduction in a party’s Taxes for the current
taxable year (including estimated Taxes) and recoveries of Taxes for a prior
taxable year through the carryback of net operating losses as a result of the
payment or accrual of any Loss or other indemnified expenses in such current
taxable year.

       

      “Tax Cost” shall mean
the amount of the actual increase in a party’s Taxes for the current taxable
year (including estimated Taxes) as a result of the receipt or accrual by such
party of indemnification payments pursuant to Section 6.5(a) or Article VIl in
such current taxable year.

       

      “Tax Return” shall
mean any return, report, statement or information statement of any kind
whatsoever required to be filed with any Taxing Authority, including any
schedule or attachment thereto and any amendment thereof.

       

      “Taxing Authority”
shall mean any governmental body or authority of any kind whatsoever (whether
federal, state, provincial, local, city, foreign or otherwise) responsible for
the imposition of a Tax.

       

      “Tax Shelter” shall
have the meaning set forth in Section
3.7(g).

       

      “Tax Shelter
Organizer” shall have the meaning set forth in Section
3.7(g).

       

      “Third Party Claim”
shall have the meaning set forth in Section
7.1(d)(1).

       

      “U.S.” shall mean the
United States of America.

       

      “Welfare Plans” shall
mean, collectively, each “employee welfare benefit plan” as such term is defined
within the meaning of Section 3(1) of
ERISA.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      Section
1.2              Other
Terms.  Other terms may be defined elsewhere in this Agreement
and, for the purposes of this Agreement, those other terms shall have the
meanings specified in those other portions unless the context requires
otherwise.  Meanings specified in this Agreement shall be applicable
to both the singular and plural forms of such terms and to the masculine,
feminine and neuter genders, as the context requires.  All references
to dollar amounts in this Agreement shall mean U.S. dollars unless otherwise
indicated.

       

      ARTICLE
II

       

      PURCHASE
AND SALE OF THE INTERESTS

       

      Section
2.1              Purchase and Sale of
Interests.  Subject to the terms and conditions as set forth
herein, at the Closing (as defined below), the Buyer shall purchase from each
Seller, and each of the Sellers, severally and not jointly, agrees to sell to
the Buyer, their respective Membership Interests as set forth opposite each
Seller’s name on Schedule A hereto, in
exchange for the Purchase Price (as defined in Section
2.2).

       

      Section
2.2              Purchase
Price.  The aggregate purchase price for the Membership
Interests (the “Purchase Price”)
shall be:

       

      (a)           Initial
Payment.  A cash payment (the “Initial Payment”) of
Two Million dollars ($2,000,000); plus

       

      (b)           Return of
Capital.  A payment equal to the Capital Balances (“Return of Capital”);
plus

       

      (c)           Deferred
Payments.

       

      (1)           During
the Earnout Period, the following earnout payments (each, a “Deferred
Payment”):

       

      (i)           For
the fiscal year 2007, the product of (x) 0.35 and (y) 4.5 times the 2007 NTP
(the “2007
Payment”); and

       

      (ii)           For
the fiscal year 2008, the product of (x) 0.35 and (y) 4 times the 2008 NTP (the
“2008
Payment”).

       

      (2)           In
the event that both Principals’ Employment Agreements are terminated without
Cause or both Principals terminate their Employment Agreements for Good Reason,
pursuant to the Employment Agreements,

       

      (i)           during
fiscal year 2007, the 2007 Payment shall be as set forth above in Section 2.2(c)(1)(i),
and the 2008 Payment shall be equal to the greater of (i) the product of 1.5 and
the 2007 NTP or (ii) the amount as set forth above in Section
2.2(c)(1)(ii); and

       

      (ii)           during
fiscal year 2008, the 2008 Payment shall be equal to the greater of (i) the
product of 1.5 and the 2007 NTP or (ii) the amount as set forth above in Section
2.2(c)(1)(ii).

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (3)           In
the event that during fiscal year 2007, there is a Sale of the Business, the
Deferred Payments shall be as set forth above in Section
2.2(c)(2)(i).  In the event that during fiscal year 2008, there
is a Sale of the Business, the 2008 Payment shall be as set forth above in Section
2.2(c)(2)(ii).

       

      (d)           In
the event of any dispute under Sections 2.2(c)(2) or (3), such dispute shall be
resolved in accordance with Section 2.5(b) below.

       

      Section
2.3              Payment of Purchase
Price.

       

      (a)           The
Initial Payment and the Return of Capital shall be paid on the date hereof by
wire transfer of immediately payable funds.  Each Deferred Payment
shall be made as promptly as reasonably practical but no later than ten (10)
days after the delivery of the applicable Balance Sheets as set forth in Section
2.5(a) below; provided, however, that if there is a dispute, the applicable
Deferred Payment shall be made as soon as reasonably practical but no later than
ten (10) days after the applicable NTP is determined in accordance with Section
2.5 of this Agreement.

       

      (b)           The
Purchase Price (including any Deferred Payments) shall be payable to the Sellers
in accordance with their respective percentage interests reflected on Schedule A (each, a
“Pro Rata
Share”).

       

      Section
2.4              Taxes on Sale; Offset
Against Deferred Payments.

       

      (a)           Any
Taxes on the sale of the Membership Interests shall be paid by the
Sellers.

       

      (b)           Buyer
shall have the right to offset against its obligations to pay the Deferred
Payments the amount of any Losses which Buyer in good faith reasonably
determines are owed by the Seller Indemnifying Parties to the Buyer pursuant to
Section 7.1(b), subject to the limitations set forth in Article VII;
provided, however, the Buyer shall deposit such amount in an escrow account
pursuant to an escrow agreement in form and substance reasonably satisfactory to
the Sellers, which escrow agreement, among other things, shall provide that the
Sellers retain any interest on any amounts deposited into escrow.

       

      Section
2.5              Determination of NTP;
Dispute Resolution.

       

      (a)           As
promptly as practicable, but in no event not later that forty-five (45) days
after the end of the applicable fiscal year, the Buyer shall cause to be
prepared and delivered to the Sellers balance sheets of the Company as of
December 31, 2007 and December 31, 2008 (the “Balance Sheets”),
which Balance Sheets shall be audited by Ernst & Young, certified public
accountants, and certified by such firm to have been prepared in accordance with
GAAP consistently applied and in substantially the manner used to prepare
audited financial statements.  The Balance Sheets shall be accompanied
by statements prepared by such accountants setting forth the NTP of the Company
in accordance with the terms and conditions of this Agreement (the “Statements of
NTP”).  The fees, costs and expenses of the Company in
connection with the preparation of the Balance Sheets and the Statements of NTP
shall be borne by the Buyer.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (b)           If
the Sellers in good faith disagree with any of the Balance Sheets, any of the
Statements of NTP or the calculations set forth in Sections 2.2(c)(2) or (3),
then the Seller Representatives shall notify the Buyer in writing (the “Notice of
Disagreement”) of such disagreement within thirty (30) days after
delivery of the applicable Balance Sheet and Statement of NTP to the
Sellers.  The Notice of Disagreement shall set forth in reasonable
detail the basis for the disagreement.  Thereafter, the Buyer and the
Sellers shall attempt in good faith to resolve and finally determine the
applicable Balance Sheet and the Statement of NTP.  If the Buyer and
the Sellers are unable to resolve the disagreement within twenty (20) days after
delivery of the Notice of Disagreement, then the Buyer and the Sellers shall
select a mutually acceptable, nationally recognized independent accounting firm
other than Ernst & Young (such accounting firm hereinafter referred to as
the “Independent
Accountant”) to resolve the disputed items and make a determination with
respect thereto.  Such determination will be made, and written notice
thereof given to the Buyer and the Sellers, within thirty (30) days after such
selection.  The determination by the Independent Accountant shall be
final, binding and conclusive upon the parties hereto.  The scope of
such firm’s engagement (which shall not be an audit) shall be limited to the
resolution of the items contained in the Notice of Disagreement, and the
recalculation, if any, of the applicable Balance Sheet and the Statement of NTP
in light of such resolution.  The fees, costs and expenses of the
Independent Accountant, if any, selected in accordance with this Section 2.5(b) will
be shared equally by the Buyer, on the one hand, and the Sellers, on the other
hand.  Within ten (10) days of delivery of a notice of determination
by the Independent Accountant described above, any adjustment shall be paid as
provided in Section
2.3.  Any portion of the Deferred Payment not in dispute shall
be paid when due.

       

      Section
2.6              The
Closing.  The closing of the transactions contemplated hereby
(the “Closing”)
shall take place at the offices of Kramer Levin Naftalis & Frankel LLP, 1177
Avenue of the Americas, New York, New York immediately upon the execution and
delivery of this Agreement (the “Closing
Date”).

       

      Section
2.7              Deliveries at
Closing.  On the Closing Date, each of the Sellers shall
deliver to the Buyer (a) certificates representing the Membership Interests,
against delivery by the Buyer to each of the Sellers of their Pro Rata Share of
the Initial Payment and the Return of Capital, by wire transfer of immediately
payable funds and (b) an affidavit of non-foreign status that complies with
Section 1445 of the Code.  At the Closing, the parties hereto shall
also enter into all Documents which are contemplated to be entered into pursuant
to this Agreement, and the Parties hereto shall execute and deliver to each
other all of the Documents and other items required to be delivered at the
Closing pursuant to this Agreement.

       

      Section
2.8              Allocation.  Buyer
and each of the Sellers agree that the Purchase Price will be allocated for Tax
purposes among the assets of the Company as set forth on Schedule
2.8.  Buyer and each of the Sellers shall report, act and file
Tax Returns in all respects and for all purposes consistent with such
allocation, and shall not take any position (whether in audits, Tax Returns or
otherwise) that is inconsistent with such allocation unless required to do so by
applicable Law.  Notwithstanding the foregoing, the Buyer and the
Sellers acknowledge that the transaction contemplated by this Agreement will be
treated for federal and state income tax purposes as a sale by the Sellers of
their Membership Interests in the Company.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      ARTICLE
III

       

      REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

       

      The Seller
Representatives, acting in such capacity, hereby represent and warrant to the
Buyer as follows:

       

      Section
3.1     
        Organization and
Subsidiaries.

       

      (a)           The
Company is a limited liability company duly organized and validly existing and
in good standing under the Laws of New York and has all requisite company power
and authority to execute this Agreement and to carry out its obligations
hereunder.

       

      (b)           The
Company has all requisite company power and authority to own, operate and lease
its properties and to carry on its business as now being conducted, and is duly
qualified in every jurisdiction in which the property owned, leased or operated
by it or the nature of the business conducted by it makes qualification
necessary.  A complete and correct set of the Organizational Documents
for the Company is set forth on Schedule
3.1.  A true, correct and complete copy of all Organizational
Documents for the Company has been previously delivered to the
Buyer.

       

      Section
3.2               Capitalization.

       

      (a)           The
authorized capital of the Company consists of membership interests, all of which
are issued and outstanding.  All of the issued and outstanding
membership interests of the Company were validly issued.  There are no
outstanding options, warrants, rights, subscriptions, stock appreciation rights,
calls, Contracts, restrictions, arrangements, agreements, convertible or
exchangeable securities or other commitments or rights to purchase or acquire
any of the authorized but previously unissued membership interests or other
securities of the Company, except for the Buyer’s rights under this
Agreement.

       

      (b)           The
Company (i) does not have or hold, either directly or indirectly, any capital or
any other equity securities or interest in, or control (whether by the ownership
or control or direction of any securities or any other voting or participating
interest or by Contract) of, any other Person or (ii) is not obligated to make
or be bound by any written, oral or other agreement, Contract or understanding
of any nature as of the date hereof or as may hereinafter be in effect under
which it may become obligated to make any future investment in, or capital
contribution to, any other Person.  To the knowledge of the Seller
Representatives, there are no voting trusts, proxies or other voting agreements
with respect to any Membership Interests.

       

      Section
3.3              Power and Authority; Effect
of Agreement; No Violation.

       

      (a)           The
Company has full power and authority to execute and deliver each Document to
which it is a party and to perform its obligations and consummate the
transactions contemplated thereby.  The execution, delivery and
performance by the Company of each Document to which the Company is a party, the
performance of its obligations thereunder and the consummation of the
transactions contemplated thereby have been duly and validly authorized by the
managers of the Company and, as required, the members of the Company and

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      no other
company or organizational proceedings on the part of the Company is necessary to
authorize the execution and delivery of the Documents to which it is a party and
the consummation of the transactions contemplated thereby.  Each
Document to which it is a party when executed by the Company will be duly
executed and delivered by the Company and when so executed, will constitute,
assuming execution and delivery thereof by all other parties, a valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms, subject to applicable bankruptcy, fraudulent conveyance,
insolvency, reorganization, moratorium and similar Laws now or hereafter in
effect relating to or affecting creditors’ rights and remedies generally and to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

       

      (b)           Neither
the execution and delivery by the Company of any Document to which it is a party
nor the consummation of the transactions contemplated thereby will (i) conflict
with or violate any provision of the Organizational Documents of the Company,
(ii) conflict with or violate any Law which is applicable to the Company or to
which its properties are subject or by which the Company is bound or affected,
which violation, in the case of Laws applicable to their properties, would be
material, or (iii) conflict with or result in any material breach of or
constitute a material default (or any event, condition or circumstance which,
with the giving of notice or lapse of time or both would become a material
default) under, or give to others any rights of termination or cancellation of,
or accelerate the performance required by or maturity of, or result in the
creation of any Lien on any of the assets of the Company pursuant to any
Contract or Permit to which the Company is a party or by which any of the
assets, properties or business of the Company are bound or otherwise
affected.

       

      (c)           Except
for the consents or waivers from third parties listed on Schedule 3.3(c), no
applications, notices to, consents of, or filings with, any Governmental
Authority, self-regulatory authority or third party (the “Requisite Seller Regulatory
Approvals”) are necessary in connection with the execution and delivery
by the Company of the Documents to which it is a party and the consummation by
the Company of the transactions contemplated thereby.

       

      Section
3.4              Financial
Statements.  Schedule 3.4 contains
a true and correct copy of the audited balance sheet of the Company as of
December 31, 2006, and the related statements of operations, member’s equity and
cash flows of the Company including the related notes and schedules thereto (the
“Company Financial
Statements”).  The Company Financial Statements were prepared
from, and are in accordance with, the books and records of the Company, as
applicable, and fairly present, in all material respects, in accordance and in
conformity with GAAP (consistently applied throughout the periods covered
thereby), the financial position of the Company, as applicable, as of such date
and the respective results of operations and cash flows of the Company, as
applicable, for the period ended December 31, 2006, except as qualified in the
auditors’ report on the Company Financial Statements.

       

      Section
3.5              Absence of Certain Changes
or Events.

       

      (a)           Since
December 31, 2006 there has been no Material Adverse Effect.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (b)           Since
December 31, 2006, the Company has conducted its business solely in the ordinary
and normal course and in conformity with past practices.  Without
limiting the foregoing, except as otherwise disclosed in Schedule 3.5(b),
since December 31, 2006, the Company has not:

       

      (1)           incurred
any known Liability in excess of $50,000 individually or $100,000 in the
aggregate, other than such as may have been incurred in the ordinary course of
business consistent with past practice;

       

      (2)           made
any expenditure in excess of $50,000 individually or $100,000 in the aggregate,
other than such as may have been made in the ordinary course of business
consistent with past practice;

       

      (3)           entered
into, amended or terminated any agreement which is, or would have been if not
amended or terminated, a Material Contract and to which it is or was a party or
beneficiary or by which it is or was bound, or canceled, modified or waived any
debts owed to or claims held by it (including the settlement of any claims or
litigation), or waived any substantial right other than for terminations in
accordance with the provisions of such agreement;

       

      (4)           sold,
transferred, distributed, leased, abandoned or otherwise disposed of or
mortgaged, pledged or imposed or suffered to be imposed any Liens on, any of its
assets, properties or businesses in excess of $50,000 individually or $100,000
in the aggregate, except for in the ordinary course of business consistent with
past practice and except for Permitted Liens;

       

      (5)           extended
credit other than in the ordinary course of business consistent with past
practice or made any change in its credit practices, its method of accounting or
accounting principles or practices, its methods of maintaining its books,
accounts or business records, or its depreciation or amortization policies or
rates theretofore adopted;

       

      (6)           adopted
a plan of liquidation or resolutions providing for its liquidation, dissolution,
merger, consolidation or other reorganization;

       

      (7)           amended
its Organizational Documents;

       

      (8)           made
any loan or advance to any of its employees, individual consultants, Affiliates
or other representatives (other than advances for business expenses made in the
ordinary course of business in a manner consistent with past
practice);

       

      (9)           entered
into any other contract involving the annual payment of more than $50,000 which
is not terminable by the Company without payment or penalty upon not more than
ninety (90) days’ notice, except for contracts entered into in the ordinary
course of business consistent with past practice; or

       

      (10)         other
than as specifically contemplated by this Agreement, agreed or committed to do
any of the foregoing.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      Section
3.6              Title to Properties and
Assets (other than Intellectual Property).

       

      (a)           Except
with respect to (i) Intellectual Property owned by or licensed to the Company
which is covered by Section 3.10 and (ii)
any Leased Real Property (as defined below) which is covered by Section
3.6(b):

       

      (1)           The
Company has, or will have at Closing, outright and good and valid title to its
assets, properties and businesses, free and clear of any and all Liens, except
for Permitted Liens.

       

      (2)           The
Company owns, leases or licenses or otherwise has the right to use all assets
necessary for the business of the Company or the operation
thereof.  The furniture, fixtures, machinery, equipment and other
tangible property owned or leased by the Company, each taken as a whole, are in
good working order (ordinary wear and tear excepted), properly functioning, and
usable for their intended purpose in the ordinary course of business consistent
with past practice.

       

      (3)           The
Company has not received notice from any Governmental Entity of any existing
material violation of any legal requirements relating to such assets or their
use that has not been fully resolved to the satisfaction of such Governmental
Entity.

       

      (b)           The
Company does not own any real property.  Schedule 3.6(b) sets
forth a complete and correct list of all of the real property leased, licensed
or otherwise used or occupied by the Company (each, a “Leased Real
Property”).  Each agreement to lease, license or otherwise use
or occupy such Leased Real Property to which the Company is a party, whether as
lessor or lessee, licensor or licensee, or otherwise (such agreements being
collectively referred to herein as the “Realty Leases”),
together with all amendments and assignments thereof, are listed on Schedule
3.6(b).  True and complete copies of such Realty Leases and all
amendments thereto and assignments thereof have been delivered to the
Buyer.

       

      Section
3.7              Tax
Matters.

       

      Except as
set forth on Schedule
3.7:

       

      (a)           The
Company has filed or caused to be filed with the appropriate Taxing Authority in
a timely manner all material Tax Returns required to be filed by
it.  All such Tax Returns were complete and accurate in all material
respects.  The Company has paid all Taxes due from it, whether or not
shown on any Tax Returns.  The Company has not been granted, and does
not have any outstanding requests for, an extension of time within which to file
any Tax Return which has not yet been filed or within which to pay any Taxes
which have not yet been paid.  Schedule 3.7(a)
contains a list of all jurisdictions in which the Company is required to file
any Tax Return, and no claim has ever been made by any Governmental Entity in
any jurisdiction where the Company does not file Tax Returns that the Company is
or may be subject to taxation by, or be required to file Tax Returns in, such
jurisdiction.

       

      (b)           The
Company has never been a member of an affiliated group (within the meaning of
Section 1504 of the Code) or a consolidated, combined or unitary group (under
foreign, state or local Tax Law).  The Company has never filed any
election in any jurisdiction 

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

       

      to be
taxed as a corporation and has always been treated as a partnership for income
tax purposes by all Taxing Authorities and jurisdictions in which it is or was
ever obligated to pay Taxes or file Tax Returns.

       

      (c)           There
are no Liens for Taxes on any of the assets of the Company, other than for Taxes
not yet due and payable.  No claims are currently being asserted with
respect to any Taxes of the Company, and no examination, audit or inquiry is
currently being conducted or pending or, to the Knowledge of the Seller
Representatives, threatened by any Taxing Authority with respect to the Company,
including any examination, audit or inquiry which could result in a Tax
liability for which the Company could be severally liable under Treasury
Regulations § 1.1502-6 or any comparable state, local or foreign Tax
provision.

       

      (d)           The
Company has complied with all applicable Laws, rules and regulations relating to
the payment and withholding of Taxes and is not liable for any Taxes for failure
to comply with such Laws, rules, and regulations.  Without limiting
the generality of the foregoing, each individual providing services to the
Company has been appropriately treated by the Company, pursuant to applicable
Law, in all material respects, as an employee or independent
contractor.

       

      (e)           There
are no outstanding waivers or comparable consents (or requests for such waivers
or consents) regarding the application of the statute of limitations with
respect to any Taxes or Tax Returns of the Company.

       

      (f)           The
Company is not a party to any Tax sharing, Tax allocation or other similar
agreement, and the Company has no liability for Taxes of any other Person as a
transferee or successor, by contract or otherwise.

       

      (g)           The
Company has not participated as a tax shelter “promoter” or “tax shelter
organizer” or as an investor in a “tax shelter” within
the meaning of Section 6111 of the Code.

       

      (h)           The
Company is not a party to any joint venture, partnership or other arrangement or
contract that could be treated as a partnership agreement for federal income tax
purposes.

       

      Section
3.8              Compliance with Law;
Governmental Permits.

       

      (a)           Except
as set forth in Section 3.8(c) below
or on Schedule
3.8(a), the conduct by the Company of its business and use of its assets
is in all material respects in conformity with all applicable foreign, federal,
state, county and local energy, public utility, health, occupational safety or
health requirements and environmental requirements and all other applicable
requirements of any Governmental Entity.

       

      (b)           Except
as set forth in Section 3.8(c) below
or on Schedule
3.8(a), (i) the Company owns, holds or possesses all Permits, the absence
of which could materially adversely affect its ability to conduct its business
and operate its properties; (ii) all such Permits are in full force and effect
and no material violations are outstanding or uncured with respect thereto, and

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      (iii) no
proceeding is pending or threatened, to revoke or limit any such Permit, and
(iv) none of such Permits shall be materially adversely affected by the
transactions contemplated hereby.

       

      (c)           The
conduct by the Company of its business and use of its assets is in all material
respects in conformity with all applicable foreign, federal, state, county and
local securities Laws as they relate to securities brokers.  The
Company (i) owns, holds or possesses all Permits related thereto, the absence of
which could materially adversely affect its ability to conduct its business and
operate its properties; (ii) all such related Permits are in full force and
effect and no material violations are outstanding or uncured with respect
thereto, and (iii) no proceeding is pending or threatened, to revoke or limit
any such related Permit, and (iv) none of such related Permits shall be
materially adversely affected by the transactions contemplated
hereby.

       

      Section
3.9              Leased
Assets.  Schedule 3.9 contains
a list of each lease, conditional sale Contract, franchise, license, other
agreement or right (including the monthly rental payment and the expiration date
of each), under which the Company is lessee of, or holds or operates, any
machinery, equipment, vehicle or other tangible personal property owned by a
third party, other than those which involve annual rental or other payments of
less than $50,000 individually or which are terminable on not more than ninety
(90) days’ notice without any liability or cost.  Each lease described
on Schedule 3.9
is in full force and effect.  The Company is not in default of, and
has not received notice in writing of any defaults by any other party to, any
such lease.

       

      Section
3.10            Intellectual
Property.

       

      (a)           Schedule 3.10(a)
contains a complete and accurate list of (i) all Business Intellectual Property
and all pending applications to register with any Governmental Entity Business
Intellectual Property owned by the Company; (ii) all Intellectual Property
Contracts (other than licenses to use “shrink-wrap” or “off-the-shelf’ software
or any other software which is generally commercially available; and Promotional
Agreements); and (iii) all unregistered and unapplied for trademarks, service
marks, logos and slogans used in the Business.  Except as set forth
thereon, all applications and registrations listed in Schedule 3.10(a) are
in full force and effect in all material respects and have not been canceled,
expired or abandoned.

       

      (b)           Except
as set forth on Schedule 3.10(b), to
the Knowledge of the Seller Representatives, the Company owns, or with respect
to the Licensed-In Intellectual Property has the valid right to use in the
Business, all Business Intellectual Property.

       

      (c)           Except
as set forth on Schedule 3.10(c), to
the Knowledge of the Seller Representatives, no Person other than the Company
has an ownership interest in, or a right to receive a royalty with respect to,
any of the Business Intellectual Property other than the Licensed-In
Intellectual Property.

       

      (d)           Except
as set forth on Schedule 3.10(d), all
Business Intellectual Property is free of all Liens, other than Permitted
Liens.  Except as set forth on Schedule 3.10(d), the
Company is not, and will not, as a result of the execution and delivery of this
Agreement or the performance by the Company of any of its obligations hereunder,
be in breach of any Intellectual Property Contract.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      (e)           The
Business Intellectual Property constitutes the only Intellectual Property that
is necessary for the Company to conduct its business as currently conducted as
of the date of this Agreement, except for any Intellectual Property, the lack of
which could reasonably be expected to, individually, have a material adverse
effect on the Business.

       

      (f)           Except
as set forth on Schedule 3.10(f), to
the Knowledge of the Seller Representatives, none of the Business Intellectual
Property has been canceled, adjudicated invalid or is subject to any outstanding
challenge, order, judgment or decree restricting its use or adversely affecting
or reflecting the rights of the Company thereto.

       

      (g)           Except
as set forth on Schedule 3.10(g), to
the Knowledge of the Seller Representatives, no Person is violating or
infringing any Business Intellectual Property.

       

      (h)           The
Company is in compliance with all material applicable data protection and data
privacy Laws in the jurisdictions in which it does or has done
business.

       

      Section
3.11            Accounts Receivable;
Accounts Payable.

       

      (a)           Subject
to any reserves therefor established in a consistent manner throughout the
period covered by the Company Financial Statements and periods ending on or
before the Closing Date, all accounts, notes and other receivables reflected in
the Company Financial Statements or generated after December 31, 2006 have
arisen in the ordinary course of business consistent with past practice, arise
out of bona fide sales, and represent valid obligations to the
Company.  All accounts receivable are recorded on the books of the
Company in accordance with GAAP.

       

      (b)           All
accounts payable of the Company, including those reflected in the Company
Financial Statements, have been incurred in the ordinary course of the business
of the Company.

       

      Section
3.12            Employees and
Consultants.

       

      (a)           The
Company has as of the date hereof ten (10) employees.

       

      (b)           Schedule 3.12(b)
lists, as of the date hereof, the annual base salary or annualized wages, and
guaranteed bonus amounts yet unpaid, and any accrued, unused vacation for each
employee of the Company.

       

      (c)           Schedule 3.12(c)
lists all of the written employment, severance, management and independent
contractor agreements to which the Company is a party or by which the Company is
bound, other than pursuant to requirements of Law, complete copies of which have
been delivered to the Buyer.  There are no oral employment, severance,
management or independent contractor agreements to which the Company is a party
or by which the Company is bound which are not terminable by the Company without
payment or penalty upon not more than thirty (30) days’
notice.  Except for the arrangements set forth on Schedule 3.12(c), or
as otherwise prohibited or regulated by applicable Law, the employment of each
employee of the Company and the retention of any individual or other entity may
be terminated at any time and 

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      for any
reason, without notice, and such employees, individuals and entities have the
right to resign at any time.

       

      (d)           The
Company is not delinquent in any material respect in payments to any of its
current employees or any former employees for any wages, salaries, commissions,
bonuses or other direct or indirect compensation for any services performed by
them, or for amounts required to be reimbursed to its current employees or
former employees.  Bonuses currently payable or which will be payable
in the ordinary course of business of the Company to any employee of the Company
are adequately reserved for on the Financial Statements in accordance with
GAAP.

       

      (e)           Schedule 3.12(e) sets
forth all of the executive officers of the Company.  For the purposes
of this Agreement, “executive officers”
shall have the meaning set forth in Rule 3b-7 of the Exchange Act
rules.

       

      Section
3.13            Labor Matters and Employment
Standards.

       

      (a)           The
Company has complied in all respects with all Laws applicable to it relating to
employment, including without limitation those relating to wages, hours,
collective bargaining, employment discrimination, immigration, occupational
health and safety, workers’ hazardous materials, employment standards, pay
equity and workers’ compensation.

       

      (b)           No
written notice has been received by the Company of the intent of any federal,
state, local or foreign agency responsible for the enforcement of labor or
employment Laws to conduct an investigation of the Company, and, to the
Knowledge of the Seller Representatives, no such investigation is threatened or
in progress.

       

      (c)           All
levies, assessments and penalties made against the Company pursuant to all
applicable workers compensation Laws as of December 31, 2006 have been paid or
have been reserved for or accrued on the Company Financial Statements, and the
Company has not been reassessed under any such Laws.  There have been
no levies, assessments or penalties pursuant to any applicable workers
compensation Laws against the Company since December 31, 2006.

       

      (d)           The
Company is not a party to any collective bargaining agreement or any other
agreement with any labor union or other representatives of any employees of the
Company, and no such agreement is being negotiated, and, to the Knowledge of the
Seller Representatives, there are no activities or proceedings of any labor
union to organize any employees of the Company.  There is no labor
strike, dispute, claim, charge, lawsuit, proceeding, labor slowdown or stoppage
pending or, to the Knowledge of the Seller Representatives, threatened against
or involving the Company or with respect to any employees of the
Company.

       

      (e)           To
the Knowledge of the Seller Representatives, the Company has not incurred any
liability with respect to the misclassification of any individual as an
independent contractor, consultant, leased employee or similar classification
rather than as an employee.

       

      Section
3.14            Employee Benefit and Pension
Plans.  Except as set forth on Schedule 3.14,
the Company does not maintain, sponsor or contribute to, and is not obligated to

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      contribute
to, any Pension Plan, Welfare Plan or any other employee benefit plan, practice,
arrangement or agreement, including bonus, incentive compensation, equity
compensation, retirement, welfare benefit, savings, insurance, sick pay,
vacation pay, severance pay or other fringe benefit plan, practice, arrangement
or agreement, whether formal or informal.  There are no Liabilities
with respect to any Pension Plan, Welfare Plan or any other such plan, practice,
arrangement or agreement.

       

      Section
3.15            Contracts.  Except
as set forth on Schedule 3.15 (each a
“Material
Contract”), the Company is not a party to or bound by any written or
oral:

       

      (a)           joint
venture, partnership agreement or other arrangement involving a sharing of
profits, revenue or expenses involving the Company;

       

      (b)           guarantee
of the obligations of any Person or any agreement pursuant to which the Company
has an obligation to indemnify any Person in respect of any Liability or
obligation of any Person or to share Tax liability with any Person;

       

      (c)           consignment,
distributor, dealer, broker, manufacturer’s representative, marketing,
management, sales agency, advertising representative or public relations
Contract or endorsement or sponsorship Contract that is not terminable by the
Company without payment or penalty upon not more than ninety (90) days’ notice
and involves annual payments of greater than $50,000 individually;

       

      (d)           agreement
limiting the ability of the Company to engage in any business or to carry on any
business in any geographic area or during any period of time;

       

      (e)           agreement
to make capital expenditures in excess of $50,000 individually or $100,000 in
the aggregate;

       

      (f)           Contract
or other agreement (other than this Agreement) for the grant to any Person of
any preferential rights to purchase the assets, properties or businesses of the
Company;

       

      (g)           Contract
or other agreement for the payment of fees or other consideration to the
Company, any officer or director of the Company or any other entity in which the
Company or any officer or director of the Company has an interest;

       

      (h)           Contract
or other agreement relating to the acquisition of any operating business or the
capital stock of any Person;

       

      (i)           employment
or other similar agreement providing for compensation, severance or a fixed term
of employment in respect of services performed by any employee;

       

      (j)           management,
independent contractor, subcontractor, retainer or other similar type of
agreement under which services are provided by any Person to the Company in
excess of $50,000 per annum;

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      (k)           agreement
for the purchase or sale of any products or services requiring payments in
excess of $50,000 (other than purchase orders, invoices and sale Contracts)
which is not terminable by such company without payment or penalty upon not more
than ninety (90) days’ notice;

       

      (l)           agreement
with either the Sellers or any Affiliate;

       

      (m)         lease
(as lessor, lessee, sublessor or sublessee) of any real property;

       

      (n)           lease
(as lessor, lessee, sublessor or sublessee) of tangible personal property
requiring payment during any twelve (12) month period in excess of
$50,000;

       

      (o)           license
or franchise agreement, other than Promotional Agreements and licenses to use
“shrink-wrap” or “off-the-shelf’ software or any other software which is
generally commercially available;

       

      (p)           agreement
under which any money has been or may be borrowed or loaned, or any note, bond,
factoring agreement, indenture or other evidence of Indebtedness, and each
guaranty (including “take-or-pay” and “keepwell” agreements) of any evidence of
Indebtedness, or of the net worth, of any Person;

       

      (q)           mortgage
agreement, deed of trust, security agreement, purchase money agreement,
conditional sales contract or capital lease;

       

      (r)           agreement
relating to the securities of the Company;

       

      (s)           manufacturing,
distribution or sourcing agreement or arrangement;

       

      (t)           agreement
to pay a rebate, discount, bonus or commission; or

       

      (u)           agreement,
Contract or commitment of any kind, not otherwise covered in this Section 3.15 which
(i) does not include a continuing and effective right in favor of the Company,
to terminate, without payment or penalty, on not more than ninety (90) days’
notice to the other parties, and (ii) involves annual payments greater than
$50,000 individually.

       

      Each
Material Contract to which the Company is a party is in full force and effect,
enforceable against each party thereto in accordance with its
terms.  The Company is not in default, in any material respect, under
any Material Contract to which it is a party.  Except as set forth on
Schedule 3.15,
no party to any Material Contract has given the Company in writing notice of its
intention to cancel or terminate such Material Contract.  To the
Knowledge of the Seller Representatives, there has been no material breach or
violation of any Material Contract by any other party thereto.

       

      Section
3.16            No Violation, Litigation or
Regulatory Action.  Except with respect to Tax matters which
are covered in Section
3.7, there are no (i) outstanding judgments, rulings, orders, charges,
writs, injunctions, awards or decrees of any Governmental Entity or arbitral
tribunal against or involving the Company, (ii) lawsuits, claims, suits or
judicial, legal, administrative, arbitral or other proceedings, investigations
or inquiries pending or, to the Knowledge of the 

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      Seller
Representatives, threatened against or involving the Company or any of its
assets, properties or businesses, or (iii) actions, claims, suits or proceedings
pending in which the Company is the plaintiff or claimant, other than (x) in
connection with the collection of accounts receivable or other amounts due from
third parties in the ordinary course of business consistent with past practice
or (y) as to claims that are covered fully by insurance for the benefit of the
Company, other than the payment of applicable deductibles.

       

      Section
3.17            Insurance.  Schedule 3.17 sets
forth a list of all policies or binders of fire, casualty, liability, burglary,
fidelity, workers’ compensation, vehicular, health, life and other insurance
maintained, owned or held by or providing coverage for the benefit of the
Company at any time from December 31, 2006 through the date
hereof.  True, correct and complete copies of the policies or binders
providing coverage to the Company for Directors and Officers Liability and
Employment Practices Liability have previously been delivered to the Buyer
(including without limitation copies of all written amendments, supplements and
other modifications thereto or waivers of rights thereunder).  Each
policy is in full force and effect and all premiums with respect thereto are
currently paid to the Knowledge of the Seller Representatives neither the
Company nor any Person on the Company’s behalf, has failed to give any notice or
present any claim relating to the Company under any such policy or binder in due
and timely fashion, and to the Knowledge of the Seller Representatives there are
no outstanding unpaid claims relating to the Company under any such policy or
binder.  To the Knowledge of the Seller Representatives, no facts or
circumstances exist which would relieve the insurer under any policy of its
obligation to satisfy in full any valid claim of the Company
thereunder.  To the Knowledge of the Seller Representatives, the
Company has not received any notice of cancellation or non-renewal of any such
policy or binder.

       

      Section
3.18            Environmental
Matters.  The operations of the Company are, and have been, in
material compliance with the applicable Environmental Laws in effect in the
location of such operations.  The Company has obtained and is, and has
been, in material compliance with all Permits that are required under the
applicable Environmental Laws to operate the current facilities and current
business of the Company in the applicable locations of operation.

       

      Section
3.19            Indebtedness.  All
Indebtedness of the Company as at December 31, 2006 is set forth in the Company
Financial Statements to the extent required by GAAP.  As of the date
hereof, the aggregate amount of all outstanding Indebtedness including, without
limitation, any amounts for which the Company may have any obligation as a
guarantor, primary obligor, secondary obligor or otherwise under any
Indebtedness for borrowed money of the Company, is reflected in Schedule
3.19.

       

      Section
3.20            Liabilities.  As
at December 31, 2006, the Company did not have any material Liabilities of a
kind either required by GAAP to be set forth on a financial statement that were
not fully and adequately reflected or reserved against in the Company Financial
Statements.  Schedule 3.20 sets
forth all Liabilities of a kind required by GAAP to be set forth on a financial
statement incurred by the Company since December 31, 2006 that were not incurred
in the ordinary course of business and consistent with past
practice.

       

      Section
3.21            Absence of Certain Business
Practices.  During the two (2) years immediately preceding the
date hereof, neither the Company nor, to the Knowledge of the
Seller

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    

    Representatives,
any officer, director, employee, consultant or agent thereof acting on its
behalf has directly or indirectly, (a) made any contribution or gift which
contribution or gift is in material violation of any applicable Law, (b) made
any bribe, rebate, payoff, influence payment, kickback or other payment to any
Governmental Entity (or representative or official thereof) or made any material
bribe, rebate, payoff, influence payment, kickback or other payment to any
Person other than a Governmental Entity, in each case, regardless of form,
whether in money, property or services (i) to obtain favorable treatment in
securing business (ii) to pay for favorable treatment for business secured,
(iii) to obtain special concessions or for special concessions already obtained
for or in respect of the Company, or (iv) in violation of any Law or legal
requirement, or (c) established or maintained, directly or indirectly, any fund
or asset of the Company for the purpose of making any payment described in the
foregoing clauses (a) and (b).  In addition to, and not in limitation
of, the foregoing, neither the Company nor, to the Knowledge of the Seller
Representatives, any officer, director, employee, consultant or agent thereof
acting on its behalf has made, directly or indirectly, any payment or promise to
pay, or gift or promise to give or authorized such a promise or gift, of any
money or anything of value, directly or indirectly, to: (x) any foreign official
(as such term is defined in the Foreign Corrupt Practices Act of 1977, as
amended (the “FCPA”)) for the
purpose of influencing any official act or decision of such official or inducing
him or her to use his or her influence to affect any act or decision of a
foreign government, or any agency or subdivision thereof; or (y) any foreign
political party or official thereof or candidate for foreign political office
for the purpose of influencing any official act or decision of such party,
official or candidate or inducing such party, official or candidate to use his,
her or its influence to affect any act or decision of a foreign government or
agency or subdivision thereof, in the case of both (x) and (y) above in order to
assist the Company to obtain or retain business for or direct business to the
Company and under circumstances which would subject the Company to liability
under the FCPA or any corresponding foreign Laws.

     

    Section
3.22     Potential Conflicts of
Interest.  Neither the Company nor, to the Knowledge of the
Seller Representatives, any executive officer, director or Affiliate of the
Company:

     

    (a)    
owns, directly or indirectly, any interest in (excepting not more than five
percent (5%) stock holdings held solely for investment purposes in securities of
any Person which is listed on any national securities exchange or regularly
traded in the over-the-counter market) or is an owner, sole proprietor,
stockholder, partner, director, officer, employee, consultant or agent of any
Person which is a lessor, lessee, customer, licensee, or supplier of the Company
(other than pursuant to arrangements on terms that would be obtained on an arms’
length basis);

     

    (b)    
other than the Company, owns, directly or indirectly, in whole or in part, any
tangible property, patent, trademark, service mark, trade name, copyright,
franchise, invention, permit or license which the Company is using or the use of
which is necessary for the Business; or

     

    (c)    
has any cause of action or other suit, action or claim whatsoever against, or
owes any amount to the Company, except for claims in the ordinary course of
business consistent with past practice, such as for accrued vacation pay and
similar matters.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

     

    Section
3.23     Books and
Records.  Except as set forth on Schedule 3.23, the
minute books of the Company, copies of which covering the last two (2) years
have been delivered to the Buyer, contain true, complete and accurate records,
in all material respects, of all meetings and consents in lieu of meetings of
the managers, directors or the managing member (or Persons performing similar
functions) and their respective equity holders.  Except as provided in
the notes to the Company Financial Statements or as set forth on Schedule 3.23, during
the two (2) years immediately preceding the date hereof, all material
transactions involving the Company and all material assets of the Company have
been accurately accounted for in the books and records of the
Company.

     

    Section
3.24     No
Finder.  The Company has not engaged, consented to or
authorized any broker, finder, consultant, intermediary or third party
(collectively, “Brokers”) to act on
its behalf in connection with the transactions contemplated hereby other than
those Brokers the fees, commissions and/or other charges of which are the sole
responsibility of the Company.  The Sellers shall indemnify the Buyer
from and against any Liability with respect to any and all fees, commissions and
other charges arising out of any claimed retention of any Broker by the Company
in connection with this Agreement and/or the transactions contemplated
hereby.

     

    Section
3.25     No
Withdrawals.  No capital of the Company has been distributed to
Sellers since December 31, 2006, other than NTP earned during the period from
December 31, 2006 though the Closing Date.

     

    ARTICLE
IV

     

    REPRESENTATIONS
AND WARRANTIES OF THE SELLERS

     

    Each
Seller, severally and not jointly, hereby represents and warrants, as to such
Seller, to the Buyer as follow as of the date hereof:

     

    Section
4.1     Authority; Effect of
Agreement.  Each Seller represents and warrants that (i) the
execution, delivery and performance by such Seller of this Agreement have been
duly authorized by all necessary action on the part of such Seller; (iii) this
Agreement has been duly executed and delivered on behalf of such Seller; and
(iv) this Agreement constitutes the legal, valid and binding obligation of such
Seller, enforceable against such Seller in accordance with its terms, except as
may be limited by (A) applicable bankruptcy, insolvency, reorganization,
moratorium, and other Laws of general application affecting enforcement of
creditors’ rights generally and (B) Laws relating to the availability of
specific performance, injunctive relief or other equitable
remedies.

     

    Section
4.2     Ownership of
Interests.  Each Seller is, without exception, directly or
indirectly, the record and beneficial owner of the Membership Interests set
forth opposite such Seller’s name on Schedule A,
respectively, free and clear of all Liens (other than those created by, or on
behalf of, the Buyer, or pursuant to state and federal securities Laws), and
there are no voting trusts, proxies or other voting agreements with respect to
such interests.  The delivery to the Buyer of the Membership Interests
pursuant to the provisions of this Agreement will transfer to the Buyer good and
valid title thereto, free and clear of all Liens (other than those created by,
or on behalf of, the Buyer, and pursuant to state and federal securities
Laws).

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    ARTICLE
V

     

    REPRESENTATIONS
AND WARRANTIES OF THE BUYER

     

    The Buyer
hereby represents and warrants to the Sellers as follows:

     

    Section
5.1     Organization.  The
Buyer is a limited liability company duly organized, validly existing and in
good standing under the Laws of the State of New York and has the power and
authority to enter into and carry out its obligations under this Agreement and
the other Documents.

     

    Section
5.2     Authorization and Validity
of Agreement.  The Buyer has the requisite power and authority
to execute and deliver this Agreement and the other Documents and to consummate
the transactions contemplated hereby and thereby in accordance with the terms
hereof and thereof.  The Buyer has duly authorized the execution,
delivery and performance of this Agreement and the other Documents by the Buyer,
and no other proceedings on the part of the Buyer are necessary to authorize
this Agreement and the other Documents or the transactions contemplated hereby
or thereby.  The Agreement and the other Documents have been duly
executed and delivered by the Buyer and, assuming this Agreement and the other
Documents have been duly executed and delivered and constitute the legal, valid
and binding obligation of the parties thereto other than Buyer, each constitutes
the legal, valid and binding obligation of the Buyer, enforceable against it in
accordance with their terms, subject to applicable bankruptcy, fraudulent
conveyance, insolvency, reorganization, moratorium and similar Laws now or
hereafter in effect relating to or affecting creditors’ rights and remedies
generally and to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     

    Section
5.3     Consents and
Approvals.  Neither the execution and delivery of this
Agreement or the other Documents by the Buyer nor the consummation by the Buyer
of the transactions contemplated hereby or thereby will require on the part of
the Buyer any consent, approval, authorization or permit of, or filing with or
notification to, any Governmental Entity.

     

    Section
5.4     No Conflict or
Violation.  Neither the execution, delivery or performance of
this Agreement and the other Documents by the Buyer, nor the consummation by the
Buyer of the transactions contemplated hereby or thereby, nor compliance by the
Buyer with any of the provisions hereof or thereof, will (i) result in a
violation or breach of, or constitute (with or without due notice or lapse of
time or both) a default (or give rise to any right of termination, cancellation,
vesting, payment, exercise, acceleration, suspension or revocation) under, any
of the terms, conditions or provisions of any material note, bond, mortgage,
deed of trust, security interest, indenture, license, Contract, agreement, plan
or other instrument or obligation to which the Buyer is a party or by which the
Buyer, or any of its properties or assets may be bound or affected, or (ii)
violate any order, writ, injunction, decree, statute, rule or regulation
applicable to the Buyer or any of its properties or assets, except where such
violation, breach or default would not materially adversely impair the ability
of the Buyer to consummate the transactions contemplated hereby or
thereby.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

     

    Section
5.5     Litigation.  There
is no suit, action, proceeding or investigation (whether at law or equity,
before or by any federal, state or foreign commission, court, tribunal, board,
agency or instrumentality, or before any arbitrator) pending or, to the
Knowledge of the Buyer, threatened against the Buyer the outcome of which would
in any manner impair the ability of the Buyer to perform its obligations
hereunder or to consummate the transactions contemplated hereby.

     

    Section
5.6     No
Finder.  The Buyer has not engaged, consented to or authorized
any Broker to act on its behalf in connection with the transactions contemplated
hereby other than those Brokers the fees, commissions and/or other charges of
which are the sole responsibility of the Buyer.  The Buyer shall
indemnify the Sellers from and against any Liability with respect to and all
fees, commissions and other charges arising out of any claimed retention of any
Broker by or on behalf of the Buyer in connection with this Agreement and/or the
transactions contemplated hereby.

     

    Section
5.7     Acquisition of Membership
Interests for Investment; Ability to Evaluate and Bear Risk.

     

    (a)    
The Buyer is acquiring the Membership Interests for investment and not with a
view toward, or for sale in connection with, any distribution thereof, nor with
any present intention of distributing or selling the Membership
Interests.  The Buyer acknowledges that the Membership Interests have
not been registered under the Securities Act and agrees that the Membership
Interests may not be sold, transferred, offered for sale, pledged, hypothecated
or otherwise disposed of without registration under the Securities Act and any
applicable state securities Laws, except pursuant to an exemption from such
registration under the Securities Act and any applicable state securities
Laws.

     

    (b)    
The Buyer is able to bear the economic risk of holding the Membership Interests
for an indefinite period, and has knowledge and experience in financial and
business matters such that it is capable of evaluating the risks of the
investment in the Membership Interests.

     

    (c)    
The Buyer is an “accredited investor” as such term is defined in Regulation D
promulgated under the Securities Act.

     

    Section
5.8     Guarantor.  The
Buyer is an indirect wholly-owned subsidiary of the Guarantor and the holder of
the securities of all of the entities owned, partly or wholly, by the Guarantor
and domiciled in the U.S, including but not limited to Van der Moolen
Specialists USA, LLC.  The Guarantor has adequate capital resources to
meet its obligations under Section 8.15.

     

    
      
        
        

      

      
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    ARTICLE
VI

     

    POST-CLOSING
COVENANTS

     

    The
parties hereto agree that:

     

    Section
6.1 Efforts.  Subject
to the terms and conditions of this Agreement and applicable Law, each of the
parties hereto shall act in good faith and use commercially reasonable efforts
to take, or cause to be taken, all actions, and to do, or cause to be done, all
things necessary, proper or advisable or as the other party may reasonably
request for purposes of evidencing the transactions contemplated hereby and
putting the Buyer in possession and control of the Membership Interests
including, without limitation, fully cooperating with and providing assistance
to each other in obtaining all necessary consents, approvals, waivers, licenses,
permits, authorizations, registrations, qualifications or other permission or
action by, and in giving all necessary notices to and making all necessary
flings with and applications and submissions to, any Governmental Entity or
other Person or entity.

     

    Section
6.2     Acquisitions.

     

    (a)     Through
December 31, 2008, each of the Buyer, on the one hand, and the Seller
Representatives, on the other, in its or their sole discretion, has the right to
veto the acquisition of any additional entities, brokerage groups or individuals
to be integrated into the operations of the Company (each, a “New
Acquisition”).  Notwithstanding the foregoing, the Seller
Representatives shall not require the consent of the Company or the Buyer to
hire up to ten (10) additional individuals provided that none of them is a
registered person subject to Special Supervisory Procedures and provided that
the Company has not operated at a loss for two consecutive
quarters.

     

    (b)     If
the Buyer identifies and, subject to the approval of the Seller Representatives
as set forth in Section 6.2(a) above,
makes or causes the Company to make a New Acquisition, the related activities
and profit and loss will not be taken into account in determining the Deferred
Payments.

     

    (c)     If
the Seller Representatives identify and, subject to the approval of the Buyer as
set forth in Section
6.2(a) above, causes the Company to make a New Acquisition, the related
activities and profit and loss will be included in the NTP used to determine the
Deferred Payments.

     

    (d)     Any
dispute with respect to who was responsible for identifying any New Acquisition
or with respect to whether an individual is subject to Special Supervisory
Procedures will be settled by a mutually acceptable independent
arbitrator.  Such arbitrator will make a determination and provide
written notice thereof to the Buyer and the Seller Representatives, within
thirty (30) days after such determination.  If the Buyer and the
Seller Representatives are unable to agree upon a mutually acceptable
arbitrator, the arbitrator shall be selected by two additional arbitrators, one
of whom shall be selected by the Buyer and one of whom shall be selected by the
Seller Representatives.  The determination shall be final, binding and
conclusive 

     

    
      
        
        

      

      
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    upon the
parties hereto.  The fees, costs and expenses of the arbitrator, if
any, will be shared equally by the Buyer, on the one hand, and the Sellers, on
the other hand.

     

    Section
6.3     Confidentiality.  The
parties agree that the Confidentiality Letter Agreement, dated January 12, 2007,
between the Company and the Buyer (the “CLA”) shall remain in
effect, and that the existence and terms of this Agreement and the other
Documents and all information disclosed in connection with the evaluation and
negotiation of this Agreement shall be subject to the CLA.  The CLA
shall survive any termination of this Agreement.

     

    Section
6.4      Public
Announcement.  Without limiting the generality of anything
contained in Section
6.3, each of the Buyer and the Sellers shall consult with each other
before issuing any press release or making any public statement with respect to
the transactions contemplated hereby and, except as may be required by
applicable Law or any listing agreement with any securities exchange (in which
case the party required to make the release or statement shall allow the other
party reasonable time to comment on such release or statement in advance of such
issuance).

     

    Section
6.5     Tax
Matters.

     

    (a)     The
Sellers shall pay, and the Seller Indemnifying Parties shall indemnify the
Company and the Buyer against any and all Taxes of the Company and the Sellers
for all periods or portions thereof ending on or before the Closing
Date.  The Buyer shall pay, and shall indemnify the Sellers against
any and all Taxes of the Company for all periods or portions thereof beginning
after the Closing Date.  All indemnity payments made pursuant to this
Section 6.5(a)
shall be reduced to take into account the indemnified party’s Tax Benefits, if
any, and increased to take into account the indemnified party’s Tax Costs, if
any.  In any case where under applicable Law the Company’s taxable
year does not end on the Closing Date (a “Straddle Period”),
Taxes allocable to the portion of the period up to and including the Closing
Date and the portion of the period after the Closing Date shall be determined
(i) in the case of income, franchise, sales or similar Taxes, on the basis of an
interim closing of the books as of the end of the Closing Date, except that
exemptions, allowances or deductions that are calculated on an annual basis
shall be apportioned on a per diem basis, and (ii) in the case of any Tax not
based on income or receipts, the portion of such Tax allocable to the period up
to and including the Closing Date shall be equal to the amount of such Tax for
the taxable year multiplied by a fraction, the numerator of which shall be the
number of days from the beginning of the taxable year through the Closing Date
and the denominator of which shall be the number of days in the taxable year,
and the remainder of such Tax shall be allocable to the period after the Closing
Date.

     

    (b)     (1)     The
Sellers shall prepare or cause to be prepared, and file or cause to be filed on
a timely basis, all Tax Returns of the Company for all taxable periods of the
Company that end on or prior to the Closing Date, which Tax Returns shall be
prepared in a manner consistent with past practice of the
Company.  Sellers shall provide the Buyer with a copy of such Tax
Returns at least ten (10) Business Days prior to the date thereof for the
Buyer’s review and approval, which shall not be unreasonably withheld or
delayed.  The Buyer shall 

     

    
      
        
        

      

      
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    prepare or
cause to be prepared, and file or cause to be filed, all Tax Returns required to
be filed by or on behalf of the Company for all taxable periods ending after the
Closing Date.

     

    (2) 
   With respect to any Tax Return required to be filed by the
Buyer pursuant to subparagraph (1) above for any Straddle Period of the Company,
the Buyer shall provide the Seller Representatives with copies of such completed
Tax Return and a statement setting forth in reasonable detail the amount of Tax
shown on such Tax Return that is allocable to the Sellers pursuant to Section
6.5(a).  The Buyer shall provide copies of such Tax Returns to
the Seller Representatives at least ten (10) Business Days prior to the due date
thereof for the Seller Representatives’ review and approval, which shall not be
unreasonably withheld or delayed.  Not later than one Business Day
before the due date for payment of any Tax with respect to any Tax Return for a
Straddle Period, the Sellers shall pay to the Buyer an amount equal to the Taxes
allocable to the Sellers under Section
6.5(a).

     

    (3)    
After the Closing Date, the Buyer and the Company or the Sellers shall cooperate
fully, as and to the extent reasonably requested, in connection with the
preparation of Tax Returns of the Company and any audit, litigation or other
proceeding with respect to Taxes and shall make available to the other and to
any Taxing Authority, as reasonably requested, all information, records or
documents in their possession relating to Tax liabilities or potential Tax
liabilities of the Company for all periods prior to or including the Closing
Date and shall preserve all such information, records and documents until the
expiration of the applicable statute of limitations or extensions
thereof.

     

    Section
6.6     Name.  Concurrently
with the Closing, the name of the Company shall be changed to R&H,
LLC.  Each of Michael D. Robbins and Christopher P. Henderson consents
to the change of name as set forth herein and, for himself and his successors
and assigns (hereinafter collectively referred to as the “Releasor”), hereby
irrevocably and unconditionally waives, releases, and forever discharges each of
the other parties hereto from any and all claims, charges, demands, obligations
and liabilities of any kind or nature whatsoever, at law or in equity, whether
known or unknown, existing or contingent, suspected or unsuspected, apparent or
concealed which Releasor now or in the future may have or claims to have against
the other parties hereto based upon or arising out of the change of the name of
the Company.

     

    Section
6.7     Separate
Entity.  Buyer acknowledges that, through December 31, 2008,
Buyer shall not have the right to combine the Company with any other entity
without the prior written approval of the Sellers.  Sellers
acknowledge that, as of January 1, 2009, Buyer shall have the exclusive right to
combine the Company with any other entity.

     

    Section
6.8     Management
Team.  The Company shall have a management team (the “Management Team”)
which shall be comprised of four people, two representatives of the Buyer and
two representatives of the Sellers, which shall for all practical purposes be
the equivalent of a corporate board of directors.  Through December
31, 2009 and subject to the provisions contained herein, the size of such
Management Team may not be increased without the consent of the Seller
Representatives.  Through December 31, 2008, two representatives of
the Sellers shall be guaranteed a seat on the Company’s Management Team, such
initial representatives to be the Principals.  Through December 31,

     

    
      
        
        

      

      
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    2008, in
the event of a deadlock amongst the members of the Management Team, the
representatives of the Sellers shall control.  After December 31,
2008, in the event of a deadlock amongst the members of the Management Team, the
representatives of the Buyer shall control.

     

    Section
6.9     Day to Day
Management.  Until the earlier of (i) December 31, 2008 and
(ii) while any of the Sellers is employed by the Company, the Principals shall
run the day to day operations of the Company; provided that such day to day
operations are compliant with all federal and state securities regulatory
requirements.  Upon receipt by the Principals of the Buyer’s then
current policies and procedures in effect for those entities controlled by the
Buyer and domiciled in the U.S, the Principals shall implement such policies and
procedures and run the day to day operations in accordance with such policies
and procedures as soon as reasonably practicable after such
receipt.  The Buyer hereby agrees to provide the Principals of notice
of any chances to such policies and procedures and permit the Principals a
reasonable period of time to implement such changes.  Notwithstanding
the foregoing, if the Company is not profitable for two consecutive quarters,
the Buyer’s representatives on the Management Team may, at Buyer’s option, elect
to take over the day to day operations of the Company or any portion
thereof

     

    Section
6.10   Capitalization.  Buyer
shall ensure that that the Company is capitalized at no less then $500,000
through December 31, 2008; provided, however, that Buyer shall increase such
amount to $1,500,000 at the Principals’ request.  Any additional
amount of capital, in excess of $1,500,000, shall be funded at the sole
discretion of the Buyer.

     

    ARTICLE
VII

    

    INDEMNIFICATION

     

    Section
7.1     Survival of Representations,
Warranties and Covenants.

     

    (a)     The
representations and warranties contained in this Agreement shall survive the
Closing as set forth below.  The representations and warranties
contained in (i) Sections 3.1, 3.2, 3.3(a), 4.1 and 4.2 shall survive
indefinitely, (ii) Section 3.8(c) shall
survive the closing until December 31, 2009, (iii) Section 3.7 shall
survive the Closing until thirty (30) days following the expiration of the
applicable statutory period of limitations with respect to the matter to which
the claim relates, as such limitation period may be extended from time to time
and (iv) all other sections of Articles III, IV and V shall survive the
Closing until the twelve (12) month anniversary of the Closing
Date.  None of the covenants or agreements contained in this Agreement
shall survive the Closing Date other than those which by their terms contemplate
performance after the Closing Date and such surviving covenants and agreements
shall survive only for such period as is prescribed by the applicable statute of
limitations (and in each case thereafter until resolved if a claim in respect
thereof has been made prior to such date).

     

    (b)          Indemnification by the
Sellers.

     

    (1)
    Subject to the limitations set forth in Sections 7.1(a), (e), (f),
(g), (h) and (i), the
Sellers (the “Seller
Indemnifying Parties”) shall, severally but not jointly, indemnify and
hold harmless the Buyer and its Affiliates and any of its officers, directors,
employees, accountants, counsel, investment bankers, financial advisors and
other representatives (collectively, “Representatives”)
from and against any and all claims, losses, 

     

    
      
        
        

      

      
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    damages,
liabilities, deficiencies, obligations or expenses, including without limitation
reasonable third-party legal fees and expenses (collectively, “Losses”), to the
extent arising or resulting directly from any of the following: (i) any breach
of any representation or warranty made by the Seller Representatives in this
Agreement (other than those set forth in Article IV) and (ii)
any breach of any covenant made by the Seller in this Agreement.

     

    (2)     Subject
to the limitations set forth in Sections 7.1(a), (e), (f),
(g), (h) and (i), each
Seller shall, severally but not jointly, indemnify and hold harmless the Buyer
and its Affiliates and Representative from and against any and all Losses to the
extent arising or resulting from any material breach of any representation or
warranty by such Seller (but not any other Seller) set forth in Article
IV.

     

    (c)           Indemnification by the
Buyer.  Subject to the limitations set forth in Sections 7.1(a), (e), (f),
(g), (h) and (i), the Buyer shall indemnify, defend and hold harmless the
Sellers and their Affiliates and Representatives from and against any and all
Losses, to the extent arising or resulting from any of the following: (i) any
breach of any representation or warranty made by the Buyer in this Agreement and
(ii) any breach of any covenant made by the Buyer in this
Agreement.

     

    (d)           Indemnification
Procedures.

     

    (1)    
If any party (the “Indemnified Party”)
receives written notice of the commencement of any action or proceeding or the
assertion of any claim by a third party or the imposition of any penalty or
assessment for which indemnity may be sought under Section 6.5 or
under this Section
7.1 (a “Third
Party Claim”), and such Indemnified Party intends to seek indemnity
pursuant to Section
6.5 or this Section 7.1, the
Indemnified Party shall promptly provide the other party (the “Indemnifying Party”)
with notice of such Third Party Claim, provided, however, that the Indemnified
Party shall not be foreclosed from seeking indemnification pursuant to Section 6.5 or this
Section 7.1 as
a result of any failure to provide notice of the existence of such Third Party
Claim to the Indemnifying Party except and only to the extent that the
Indemnifying Party or the Indemnifying Party’s ability to contest such Third
Party Claim has been materially damaged or prejudiced as a result of such
failure.  The Indemnifying Party shall be entitled to participate in
or, at its option, assume the defense, appeal or settlement of such Third Party
Claim.  Such defense or settlement shall be conducted through counsel
selected by the Indemnifying Party and approved by the Indemnified Party, which
approval shall not be unreasonably withheld or delayed, and the Indemnified
Party shall fully cooperate with the Indemnifying Party in connection
therewith.  Notwithstanding the foregoing, an Indemnifying Party may
not assume the defense of any such Third Party Claim if the Third Party Claim
(i) is reasonably likely to result in imprisonment of the Indemnified Party,
(ii) is reasonably likely to result in an equitable remedy which would
materially impair the Indemnified Party’s ability to exercise its rights under
this Agreement, or impair the Buyer’s right or ability to operate the Company or
(iii) names both the Indemnifying Party and the Indemnified Party (including
impleaded parties) and counsel for the Indemnifying Party notifies the
Indemnified Party that representation of both parties by the same counsel would
create a conflict that would preclude representation of both
parties.  In the event that the Indemnifying Party fails to assume the
defense or settlement of any Third Party Claim within twenty (20) Business Days
after receipt of notice thereof from the Indemnified Party, or the Indemnifying
Party may not assume 

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

     

    the
defense pursuant to the previous sentence, the Indemnified Party shall have the
right to undertake the defense, appeal or settlement of such Third Party Claim
at the expense and for the account of the Indemnifying Party.  The
Indemnifying Party shall not settle any Third Party Claim the defense or
settlement of which is controlled by it without the Indemnified Party’s prior
written consent (which consent shall not be unreasonably withheld or delayed),
unless such Third Party Claim does not relate to Taxes and the terms of such
settlement or compromise release such Indemnified Party from any and all
liability with respect to such Third Party Claim.

     

    (2) 
   Claims
Procedure.  Except with respect to Third Party Claims covered
by Section
7.1(d)(1), any Indemnified Party who wishes to make a claim for
indemnification for a Loss pursuant to Section 6.5 or this
Section 7.1
shall give written notice to the Indemnifying Party within thirty (30) days
after it acquires knowledge of the fact, event or circumstances giving rise to
the claim for the Loss; provided, however, that the Indemnified Party shall not
be foreclosed from seeking indemnification pursuant to Section 6.5 or this
Section 7.1 as a
result of any failure to provide timely notice of the existence of such claim
for a Loss to the Indemnifying Party except and only to the extent that the
Indemnifying Party has been materially damaged or prejudiced as a result of such
delay.  The Indemnifying Party shall have a period of thirty (30) days
after receipt by the Indemnifying Party of such notice and such evidence to
either (i) agree to the payment of the Loss to the Indemnified Party or (ii)
contest the payment of the Loss.  If the Indemnifying Party does not
agree to or contests the payment of the Loss within such thirty (30) day period,
the Indemnifying Party shall be deemed not to have accepted the Loss and the
parties shall negotiate in good faith to seek a resolution of such dispute and,
if not resolved through negotiations, such dispute will be resolved in
accordance with this Agreement.  If the Indemnifying Party agrees to
the payment of the Loss within such thirty (30) day period, it shall, within ten
(10) Business Days after such agreement, pay to the Indemnified Party the amount
of the Loss that is payable pursuant to Section 6.5 or this
Section 7.1,
and subject to the limitations set forth in Sections 7.1(a), and
(g).

     

    (e)     Limitations on
Indemnification.  Notwithstanding the foregoing provisions of
this Section
7.1 and subject to Sections 7.1(f), (g), (h)
and (i), neither the Seller Indemnifying Parties nor the Buyer shall have
any liability under Sections 7.1(b) and
(c),
respectively unless the aggregate liability for Losses suffered by the
indemnified parties thereunder, respectively, exceeds
*.  Notwithstanding the foregoing provisions of this Section 7.1 and
subject to Sections
7.1(f), (g), (h) and (i), (i) the aggregate liability of the Seller
Indemnifying Parties (other that a liability relating to a breach of Section 3.8(c)), on
the one hand, and the Buyer, on the other, under Sections 7.1(b) and
(c),
respectively, shall not exceed * (the “Indemnity Cap”); (ii)
the aggregate liability of the Seller Indemnifying Parties under Section 7.1(b)(1) for
a liability relating to a breach of Section 3.8(c) shall
not exceed * ; provided, however, that in all cases set forth above, in no event
shall liability exceed * (the “Regulatory Indemnity
Cap”).  Notwithstanding the foregoing provisions of this Section 7.1 and
subject to Sections
7.1(a),(f), (g),(h) and (i), (A) no party shall be responsible, pursuant
to Sections
7.1(b) or (c), for any
indemnifiable Losses suffered by another party or its Affiliates to the extent
arising out of any breach of any representation or warranty of such party herein
unless a claim therefor is asserted with specificity and in writing by the
indemnified party within the time period that such representation or warranty
survives in accordance with Section 7.1(a),
failing which such claim shall be waived and extinguished and (B) no party shall
be responsible 

     

     

      
        

      

    

    
      *
Indicates omission of material which has been separately filed pursuant to a
request for confidential treatment

       

       

    

    
      
        
        

      

      
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    for any
indemnifiable Loss suffered by an Indemnified Party to the extent arising from
(a) a change in accounting or taxation Law, policy or practice made after
Closing, other than a change (x) required to comply with any Law, policy or
practice in effect at the date hereof or (y) enacted or promulgated prior to the
Closing Date but not yet effective.  Notwithstanding anything to the
contrary contained in this Section 7.1(e) or
anywhere else in this Agreement, each party shall indemnify and hold harmless
the other party and its respective Affiliates and Representatives from and
against any and all Losses incurred or suffered by such Person after the Closing
Date as a result of or arising from any fraudulent act by the other party prior
to the Closing Date.

     

    (f)           Pro Rata
Liability.  In addition to the limitations set forth in Sections 7.1(a), (e), (g),
(h) and (i), under no circumstances shall any Seller be liable for
indemnification under Section 7.1(b) of this Agreement or otherwise for an
amount in excess of such Seller’s Pro Rata Share of the lesser of (1) the
Indemnity Cap or (2) with respect to any particular claim, the amount thereof
for which an Indemnified Party is entitled to indemnification.

     

    (g)           Treatment of Indemnity
Payments for Tax Purposes.  The Sellers and the Buyer agree to
treat all payments made under the indemnity provisions of this Agreement as
adjustments to the Purchase Price for Tax purposes.

     

    (h)           Exclusive
Remedy.  The Sellers and the Buyer acknowledge and agree that
the foregoing indemnification provisions of Section 6.5 and this
Article VII
shall be the exclusive remedies and causes of action of the Indemnified Parties
with respect to any matter arising out of or in connection with this Agreement;
or any Schedule or Exhibit hereto or any certificate delivered in connection
herewith.

     

    (i)           No Consequential
Damages.  The obligations of the Sellers in respect to a claim
for indemnification under this Article VII shall not
include any special, exemplary or consequential damages, including business
interruption, or any punitive damages.

     

    (j)           After-Tax
Payments.  All indemnity payments made pursuant to this Article VII shall be
(x) reduced to take into account the Tax Benefit, if any realized by the
Indemnified Party, and (y) increased to take into account the Tax Cost, if any,
suffered by the Indemnified Party.

     

    ARTICLE
VIII

    

    MISCELLANEOUS

     

    Section
8.1      Notices.  All
notices and other communications given or made pursuant hereto shall be in
writing and shall be deemed to have been duly given or made as of the date
delivered, mailed or transmitted, and shall be effective upon receipt, if
delivered personally, mailed by registered or certified mail (postage prepaid,
return receipt requested) or sent by fax (with immediate confirmation), email or
nationally recognized overnight courier service, as follows:

     

    
      
        
        

      

      
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    If to the
Sellers, to the address set forth on Schedule
A:

     

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

     

    Kelley
Drye & Warren LLP

    400
Atlantic Avenue

    Stamford,
CT 06901

    Attn: Paul
McCurdy, Esq.

    Fax No:
(203) 327-266

    Email:
pmccurdy@kelleydrye.com

     

    and

     

    If to the
Buyer, to:

     

    Milbridge
IV, LLC

    45
Broadway, 32nd
Floor

    New York,
New York 10006

    Attention:
Paul Vroling

    Fax No.:
(646) 576-3011

    Email:
pvroling@vdm-usa.com

     

    with
copies to (which shall not constitute notice):

     

    Kramer
Levin Naftalis & Frankel LLP

    1177
Avenue of the Americas

    New York,
New York 10036

    Attention:
Richard Marlin, Esq.

    Fax No.:
(212) 715-8000

    Email:
rmarlin@kramerlevin.com

     

    or to such
other Person or address, facsimile number or email address as either party shall
specify by like written notice to the other party hereto (any such notice of a
change of address to be effective only upon actual receipt
thereof).

     

    Section
8.2     Entire
Agreement.  This Agreement (including any Schedules and
Exhibits, which are an integral part hereof) and the other Documents constitute
the entire agreement between the parties hereto with respect to the subject
matter hereof and thereof and supersede all prior written or oral and all
contemporaneous oral agreements and undertakings between any of the parties
hereto with respect to the subject matter hereof and thereof.

     

    Section
8.3     Assignment; Binding Effect;
No Third Party Beneficiary.  Neither this Agreement nor any of
the rights, benefits or obligations hereunder may be assigned, in whole or in
part, by either party (whether by operation of Law or otherwise) without the
prior written consent of the other party hereto; provided, however, that the
Buyer may assign its rights hereunder to any Affiliate of the Buyer which
assumes the obligations of the Buyer hereunder, provided that no such assignment
shall relieve the Buyer of its obligations hereunder.  Any attempted
assignment in violation of this Section 8.3 shall be
void.  Subject to the preceding 

     

    
      
        
        

      

      
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    sentence,
this Agreement shall be binding upon, inure to the benefit of and be enforceable
by the parties and their respective successors and permitted
assigns.  Except as expressly provided herein, nothing in this
Agreement is intended to, or shall be construed to, confer on any Person, other
than the parties or their respective successors and permitted assigns, any
rights, remedies, obligations or liabilities under or by reason of this
Agreement.

     

    Section
8.4     Fees and
Expenses.  Except as otherwise expressly set forth herein, all
costs and expenses incurred in connection with the negotiation, preparation and
execution of this Agreement (including, without limitation, fees and
disbursements of counsel, financial advisors and accountants) shall be borne by
the party which incurs such cost or expense and, in the case of the Company, by
the Sellers.

     

    Section
8.5     Amendments.  This
Agreement may not be amended or modified except by an instrument in writing
signed and delivered on behalf of each of the Buyer and the Seller
Representatives.

     

    Section
8.6     Waivers.

     

    (a)           No
failure on the part of any Person to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of any Person in
exercising any power, right, privilege or remedy under this Agreement, shall
operate as a waiver of such power, right, privilege or remedy; and no single or
partial exercise of any such power, right, privilege or remedy shall preclude
any other or further exercise thereof or of any other power, right, privilege or
remedy.

     

    (b)           No
Person shall be deemed to have waived any claim arising out of this Agreement,
or any claim, power, right, privilege, condition or remedy under this Agreement,
unless the waiver of such claim, power, right, privilege, condition or remedy is
expressly set forth in a written instrument duly executed and delivered on
behalf of such Person; and any such waiver shall not be applicable or have any
effect except in the specific instance in which it is given.

     

    Section
8.7     Severability.  If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any court of competent jurisdiction, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and
effect.  Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the fullest extent
possible.

     

    Section
8.8     Captions.  The
table of contents and headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

     

    Section
8.9     Counterparts; Facsimile
Delivery.  This Agreement may be executed in counterparts, each
of which shall be deemed to be an original, and all of which together shall be
deemed to be one and the same instrument.  This Agreement shall become
effective when one or more such counterparts have been signed by each of the
parties and delivered to the other party.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    Facsimile
or electronic image transmission of any signed original counterpart and/or
retransmission of any signed facsimile or electronic image transmission shall be
deemed the same as the delivery of an original.

     

    Section
8.10     Governing
Law.  This Agreement shall be governed by and construed in
accordance with the Laws of the State of New York, without regard to any
applicable principles of conflicts of law to the contrary.

     

    Section
8.11     Arbitration.  All
disputes or differences between or among the Parties hereto arising under or
which are related to this Agreement will be settled by arbitration in New York
City, New York, conducted in accordance with the rules of the NYSE or, if the
NYSE declines jurisdiction, the NASD or, if the NASD declines jurisdiction, the
American Arbitration Association.  Judgment upon the award entered by
the arbitrators may be entered in any court of competent
jurisdiction.  The Parties will share all the direct costs of the
arbitration and fees of the arbitrators equally; all other costs of the Parties,
including, without limitation, fees and expenses of their respective attorneys
and witnesses and for discovery, will be paid by the respective Party, except to
the extent that the arbitrators otherwise direct based on the equities of the
situation.  The arbitrators may award interest on amounts payable
under any arbitration award based on the equities of the
situation.  This Section 8.11 will
survive the expiration or termination of the other provisions of this
Agreement.

     

    Section
8.12     Construction.  In
this Agreement (i) “it” or “its” or words denoting any gender include all
genders, (ii) the word “including” shall mean “including without limitation,”
whether or not expressed, (iii) any reference to a statute shall mean the
statute and any regulations thereunder in force as of the date of this Agreement
unless otherwise expressly provided, (iv) any reference herein to a Section,
Article, Schedule or Exhibit refers to a Section or Article of or a Schedule or
Exhibit to this Agreement, unless otherwise stated, and (v) when calculating the
period of time within or following which any act is to be done or steps taken,
the date which is the reference day in calculating such period shall be excluded
and if the last day of such period is not a Business Day, then the period shall
end on the next day which is a Business Day.

     

    Section
8.13     Negotiated
Agreement.  The Buyer and the Sellers acknowledge that they
have been advised and represented by counsel in the negotiation, execution and
delivery of this Agreement and accordingly agree that if an ambiguity exists
with respect to any provision of this Agreement, such provision shall not be
construed against any party because such party or its representatives drafted
such provision.

     

    Section
8.14     Authority of the Seller
Representatives.

     

    (a)           In
order to facilitate the consummation of the transactions contemplated by this
Agreement and the other Documents and the resolution of certain matters after
the Closing Date between Buyer and Sellers, each Seller hereby appoints Thomas
M. Hearden and John Gilmartin as the Seller Representatives who shall serve as
true and lawful attorneys-in-fact and agents for each Seller in connection with
the transactions contemplated by this Agreement and the other
Documents.  By executing and delivering this Agreement, each of the
Seller Representatives (i) accepts his appointment and authorization as
attorney-in-fact and agent on 

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

     

    behalf of
each Seller in accordance with the terms of this Agreement and (ii) agrees to
perform his obligations under, and otherwise comply with, this
Agreement.

     

    (b)           Each
of the Seller Representatives has the authority, without restriction, to (i)
prepare, finalize, approve and authorize all Exhibits, Schedules and other
attachments to any of this Agreement, the other Documents, and the other
contracts, certificates, instruments and documents delivered by or on behalf of
Sellers pursuant to this Agreement and the other Documents; (ii) execute,
deliver, and accept delivery of, on behalf of each Seller, any other agreements,
certificates, instruments and documents to be delivered by or on behalf of
Sellers pursuant to this Agreement or the other Documents; (iii) execute,
deliver, and accept delivery of, on behalf of each Seller, such amendments as
may be deemed by him in his sole and absolute discretion to be appropriate under
this Agreement or the other Documents; (iv) bind Sellers by all notices
received, by all agreements and determinations made, and by all agreements,
certificates, instruments and other documents executed and delivered by Sellers
under the Documents (including in connection with the Deferred Payments pursuant
to Section 2.3
of this Agreement); (v) dispute or refrain from disputing any claim made by the
Buyer under this Agreement or any other Document; (vi) negotiate and compromise
any dispute which may arise under, and exercise or refrain from exercising
remedies available under, this Agreement or any other Document (including in
connection with the Deferred Payments pursuant to Section 2.3 of this
Agreement) and sign any releases or other documents with respect to such dispute
or remedy; (vii) waive any condition contained in any Document; (viii) give any
and all consents under any Document; (ix) dispute or refrain from disputing the
Statements of NTP; (x) give such instructions and do such other things and
refrain from doing such other things as he shall in his sole and absolute
discretion deem necessary or appropriate to carry out the provisions of any
Document; (xi) receive any payments made to any Seller pursuant to any Document;
and (xii) disburse to Sellers payments made to the Seller Representatives under
any Document in accordance with Sellers’ respective interests as set forth in
Schedule
A.

     

    (c)           By
executing and delivering this Agreement, each Seller hereby, jointly and
severally, agrees to indemnify and hold each Seller Representative harmless for
any and all liability, loss, cost, damage or expense (including attorneys’ fees)
reasonably incurred or suffered as a result of the performance of his duties as
a Seller Representative under any Document, except such that arises from such
Seller Representative’s gross negligence or willful misconduct.

     

    (d)           The
Buyer shall be entitled to deal exclusively with the Seller Representatives as
the sole and exclusive representatives and agents of Sellers in respect of this
Agreement and the other Documents and all matters arising under or pertaining to
this Agreement and any Document.  Without limiting the foregoing, (i)
any notice, communication, demand, claim, action or proceeding required or
permitted hereunder may be delivered by the Buyer to or brought by the Buyer
against either of the Seller Representatives in his capacity as an agent and
representative of Sellers with the same effect, and which shall be binding and
effective to the same degree, as if delivered to or brought against all Sellers
or any of them individually and (ii) any settlement or other agreement of the
Buyer with either of the Seiler Representatives in his capacity as an agent and
representative of Sellers in respect of all matters arising under or pertaining
to this Agreement or any Document shall have the same effect, and be binding
upon, all Sellers to the same degree as if made with all Sellers or any of them
individually.  Any 

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

     

    decision,
act, consent or instruction of either of the Seller Representatives shall be
final, binding and conclusive upon each Seller, and the Buyer may rely upon any
such decision, act, consent or instruction as being the decision, act, consent
or instruction of every Seller.  The Buyer is hereby relieved from any
liability to any Person for any acts done by it in accordance with any decision,
act, consent or instruction of either of the Seller
Representatives.

     

    (e)           The
Buyer shall be entitled to regard the Persons identified to it in accordance
with the provisions of this Agreement as the Seller Representatives unless and
until the Buyer shall have received written notice, executed by both Thomas M.
Hearden and John Gilmartin, of the designation of another Seller or Sellers as
the Seller Representative(s).

     

    (f)           The
parties recognize and intend that the power of attorney granted hereunder (A) is
coupled with an interest and is irrevocable; (B) may be delegated by the Seller
Representatives as set forth above; and (C) shall survive the death or
incapacity of any Seller.

     

    (g)           If
any Seller Representative shall die, become disabled, resign his position as a
Seller Representative or otherwise be unable or unwilling to fulfill his
responsibilities hereunder, the Sellers, within ten (10) days after any such
event, shall elect by a majority of votes (with each Seller having the number of
votes equal to the number of votes such Seller had the right to cast as a holder
of voting securities of the Company immediately prior to the Closing) a
successor to such Seller Representative and immediately thereafter notify the
Buyer of the identity of such successor.  Any such successor shall
succeed such Seller Representative as Seller Representative
hereunder.

     

    Section
8.15     Guaranty.  The
Guarantor hereby absolutely and unconditionally guarantees the performance of
Buyer’s duties, obligations and responsibilities under this
Agreement.  The liability of the Guarantor shall be primary and
independent and shall not be contingent upon the exercise or enforcement by the
Sellers of whatever remedies they may have against the Buyer.  This
guaranty is continuing and irrevocable and shall remain in full force and effect
until the payment and performance on full of all duties, obligations and
responsibilities of the Buyer hereunder.  The Guarantor represents and
warrants that (i) it has all necessary legal capacity to enter into this
Agreement and to perform its obligations hereunder; (ii) the execution, delivery
and performance by the Guarantor of this guaranty have been duly authorized by
all necessary action on the part of the Guarantor; (iii) this Agreement has been
duly executed and delivered on behalf of the Guarantor; and (iv) this guaranty
constitutes the legal, valid and binding obligation of the Guarantor,
enforceable against the Guarantor in accordance with its terms, except as may be
limited by (A) applicable bankruptcy, insolvency, reorganization, moratorium,
and other Laws of general application affecting enforcement of creditors’ rights
generally and (B) Laws relating to the availability of specific performance,
injunctive relief or other equitable remedies.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

     

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

     

    
       

      
        	BUYER:	 
	 	 	 
	MILBRIDGE
      IV, LLC	 
	 	 	 
	By:	/s/ Paul
      Vroling	 
	 	Name: Paul
      Vroling	 
	 	
                Title:
      Chief Financial Officer

              	 
	 	 	 
	
                Solely
      with respect to Section 8.15 hereof:

              	 
	 	 	 
	
                GUARANTOR:

              	 
	 	 	 
	
                VAN
      DER MOOLEN HOLDING N.V.

              	 
	 	 	 
	By:	/s/ Casper
      Rondeltap	 
	 	Name: Casper
      Rondeltap	 
	 	Title: Chief
      Operating Officer	 
	 	 	 
	
                SELLERS:

              	 
	 	 	 
	
                /s/
      John P. Gilmartin

              	 
	
                John
      P. Gilmartin

              	 
	 	 	 
	
                /s/
      Thomas M. Hearden

              	 
	
                Thomas
      M. Hearden

              	 
	 	 	 
	/s/
      Christopher J. Henderson	 
	Christopher J.
      Henderson	 
	 	 	 
	
                /s/
      Mario Lagana

              	 
	Mario
Lagana	 
	 	 	 
	
                /s/
      Michael D. Robbins

              	 
	
                Michael
      D. Robbins

              	 
	 	 	 

      

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Schedule
A

     

     

    
      	 	
              Members

            	 	 
	 	 	 	 	 
	
              John
      P. Gilmartin

            	
              26.125%

            	 	 	
              52
      Mitchell Place

              Little
      Silver, NJ 07739

            
	 	 	 	 	 
	
              Thomas
      M. Hearden

            	
              26.125%

            	 	 	
              80
      Prospect Hill Avenue

              Summit,
      NJ 07901

            
	 	 	 	 	 
	
              Christopher
      J. Henderson

            	
              15%

            	 	 	
              266
      Province Line Road

              Skillman,
      NJ 08558

            
	 	 	 	 	 
	
              Mario
      Lagana

            	
              22.75%

            	 	 	
              18
      Maple Street

              Englewood
      Cliffs, NJ 07632

            
	 	 	 	 	 
	
              Michael
      D. Robbins

            	
              10%

            	 	 	
              40
      East 88th Street, Apt 3A

              New
      York, NY 10128

            
	 
      	
              100%EXHIBIT
4.14

       

      EXECUTION
VERSION

       

      ASSET
PURCHASE AGREEMENT

       

      

       

      

       

      Dated
as of

      
 

       

      December
3, 2007

      
 

       

      By
and Among

      
 

       

      LEHMAN
BROTHERS INC.

       

      

       

      

       

      VAN
DER MOOLEN USA, INC.

       

      And

       

      VAN
DER MOOLEN SPECIALISTS USA,  LLC

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

         

      

       

      
        	TABLE
      OF CONTENTS
	 Page
	
                ARTICLE
      1

              
	
                Definitions
      and Interpretation

              
	 	 
	
                Section
      1.01.  Definitions

              	
                1

              
	
                Section
      1.02.  Interpretive Matters

              	
                8

              
	 	 
	
                ARTICLE
      2

              
	
                Purchase
      and Sale

              
	 	 
	
                Section
      2.01.  Sale and Transfer of Assets.

              	
                8

              
	
                Section
      2.02.  Excluded Assets

              	
                9

              
	
                Section
      2.03.  Assumed Liabilities

              	
                10

              
	
                Section
      2.04.  Excluded Liabilities

              	
                10

              
	
                Section
      2.05.  Certain Assignments

              	
                11

              
	
                Section
      2.06.  Purchase Price; Allocation of Purchase
    Price

              	
                12

              
	
                Section
      2.07.  Closing

              	
                13

              
	 	 
	
                ARTICLE
      3

              
	
                Representations
      and Warranties of Seller

              
	 	 
	
                Section
      3.01.  Corporate Existence and Power

              	
                14

              
	
                Section
      3.02.  Corporate Authorization

              	
                14

              
	
                Section
      3.03.  Governmental Authorization

              	
                14

              
	
                Section
      3.04.  Noncontravention

              	
                15

              
	
                Section
      3.05.  Title to Assets

              	
                15

              
	
                Section
      3.06.  Specialist Securities

              	
                15

              
	
                Section
      3.07.  Solvency

              	
                15

              
	
                Section
      3.08.  Business Contracts.

              	
                15

              
	
                Section
      3.09.  Litigation

              	
                16

              
	
                Section
      3.10.  Compliance with Laws

              	
                16

              
	
                Section
      3.11.  Intellectual Property

              	
                16

              
	
                Section
      3.12.  Insurance Coverage

              	
                16

              
	
                Section
      3.13.  Finders’ Fees

              	
                17

              
	
                Section
      3.14.  Employee Benefit Plans

              	
                17

              
	
                Section
      3.15.  Taxes.

              	
                18

              
	
                Section
      3.16.  Sufficiency of Assets

              	
                18

              
	 	 
	
                ARTICLE
      4

              
	
                Representations
      and Warranties of Buyer

              
	 	 
	
                Section
      4.01.  Corporate Existence and Power

              	
                19

              
	
                Section
      4.02.  Corporate Authorization

              	
                19

              

      

       

       

      
        
          
          

        

        
          -i-

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
      4.03.  Governmental Authorization

              	
                19

              
	
                Section
      4.04.  Noncontravention

              	
                19

              
	
                Section
      4.05.  Financing

              	
                20

              
	
                Section
      4.06.  Inspections; No Other Representations

              	
                20

              
	
                Section
      4.07.  Litigation

              	
                20

              
	
                Section
      4.08.  Finders’ Fees

              	
                20

              
	 	 
	
                ARTICLE
      5

              
	
                Covenants
      of Seller

              
	 	 
	
                Section
      5.01.  Conduct of the Business

              	
                21

              
	
                Section
      5.02.  Access to Information

              	
                21

              
	
                Section
      5.03.  No Negotiation

              	
                22

              
	
                Section
      5.04.  Confidentiality

              	
                22

              
	
                Section
      5.05.  Taxes

              	
                23

              
	
                Section
      5.06.  Put/Call Agreement

              	
                23

              
	
                Section
      5.07.  Insurance

              	
                24

              
	 	 
	
                ARTICLE
      6

              
	
                Covenants
      of Buyer

              
	 	 
	
                Section
      6.01.  Confidentiality

              	
                24

              
	
                Section
      6.02.  Use of Certain Marks and Names

              	
                24

              
	
                Section
      6.03.  Unsettled Trades

              	
                24

              
	 	 
	
                ARTICLE
      7

              
	
                Covenants
      of Buyer and Seller

              
	 	 
	
                Section
      7.01.  Reasonable Best Efforts; Further
Assurance

              	
                25

              
	
                Section
      7.02.  Certain Filings and Consents

              	
                25

              
	
                Section
      7.03.  Transition Services

              	
                26

              
	
                Section
      7.04.  Seller Transitional License

              	
                27

              
	
                Section
      7.05.  Seller Patent License

              	
                27

              
	
                Section
      7.06.  Public Announcements

              	
                27

              
	
                Section
      7.07.  Notices of Certain Events

              	
                27

              
	
                Section
      7.08.  Quotation Bills; NYSE Fees

              	
                28

              
	 	 
	
                ARTICLE
      8

              
	
                Employee
      Benefits

              
	 	 
	
                Section
      8.01.  Employees and Offers of Employment

              	
                28

              
	
                Section
      8.02.  Seller’s Employee Benefit Plans

              	
                30

              
	
                Section
      8.03.  Buyer Benefit Plans

              	
                30

              
	
                Section
      8.04.  No Third Party Beneficiaries

              	
                31

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	 
	
                ARTICLE
      9

              
	
                Conditions
      to Closing

              
	 	 
	
                Section
      9.01.  Conditions to Obligations of Buyer, Seller and
      Parent

              	
                31

              
	
                Section
      9.02.  Conditions to Obligation of Buyer

              	
                31

              
	
                Section
      9.03.  Conditions to Obligation of Seller

              	
                32

              
	 	 
	
                ARTICLE
      10

              
	
                Survival;
      Indemnification

              
	 	 
	
                Section
      10.01.  Survival

              	
                33

              
	
                Section
      10.02.  Indemnification

              	
                34

              
	
                Section
      10.03.  Procedures

              	
                35

              
	
                Section
      10.04.  Assignment of Claims

              	
                37

              
	
                Section
      10.05.  Exclusivity

              	
                37

              
	
                Section
      10.06.  Purchase Price Adjustment

              	
                37

              
	 	 
	
                ARTICLE
      11

              
	
                Termination

              
	 	 
	
                Section
      11.01.  Grounds for Termination

              	
                38

              
	
                Section
      11.02.  Effect of Termination

              	
                38

              
	 	 
	
                ARTICLE
      12

              
	
                Miscellaneous

              
	 	 
	
                Section
      12.01.  Notices

              	
                39

              
	
                Section
      12.02.  Amendments and Waivers

              	
                40

              
	
                Section
      12.03.  Expenses

              	
                40

              
	
                Section
      12.04.  Successors and Assigns

              	
                40

              
	
                Section
      12.05.  Governing Law

              	
                40

              
	
                Section
      12.06.  Jurisdiction

              	
                41

              
	
                Section
      12.07.  WAIVER OF JURY TRIAL

              	
                41

              
	
                Section
      12.08.  Counterparts; Effectiveness; Third Party
      Beneficiaries

              	
                41

              
	
                Section
      12.09.  Entire Agreement

              	
                41

              
	
                Section
      12.10.  Captions

              	
                41

              
	
                Section
      12.11.  Severability

              	
                42

              
	
                Section
      12.12.  Schedules and Exhibits

              	
                42

              
	
                Section
      12.13.  Specific Performance

              	
                42

              
	
                Section
      12.14.  Parent Guarantee

              	
                42

              
	
                Section
      12.15.  Asset Purchase Only

              	
                44

              
	 
      	
                 
      

              
	 
      	
                 
      

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ASSET
PURCHASE AGREEMENT

       

      This Asset
Purchase Agreement (this “Agreement”), dated as of
December 3, 2007, is made by and among Van der Moolen USA, INC., a corporation
formed under the laws of Delaware (the “Parent”), Van der Moolen
Specialists USA, LLC, a limited liability company incorporated under the laws of
New York (the “Seller”),
and Lehman Brothers Inc., a corporation formed under the laws of Delaware (the
“Buyer”).

       

      WITNESSETH:

       

      WHEREAS, Seller desires to
sell to Buyer and Buyer desires to purchase from Seller certain assets of the
Seller related to the Seller’s business of acting as a Specialist Organization
(as defined herein) on the NYSE, as such business is currently conducted (the
“Business”);
and

       

      WHEREAS, Parent, indirectly
through its wholly owned subsidiary Mill Bridge IV, LLC, a New York limited
liability company, is the record and beneficial owner of approximately 92% of
all equity interests in the Seller, and Parent will receive substantial benefit
as a result of the consummation of the transactions herein
contemplated;

       

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

       

      ARTICLE
1

       

      Definitions
and Interpretation

       

      Section
1.01.  Definitions.

       

      The
following terms, as used herein, have the following meanings:

       

      “Accounting Referee” has the meaning set
forth in Section 2.06(b).

       

      “Actions” has the meaning set
forth in Section 2.04(k).

       

      “Activ Contract” means the
Software License Agreement between the Seller and ACTIV Financial Systems, Inc.,
dated as of August 3, 2005, as amended from time to time.

       

      “Affiliate” means, with respect
to any Person, any other Person directly or indirectly controlling, controlled
by, or under common control with such other Person.  For the purposes
of this definition: (a) “control” when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise and (b) the terms “controlling” and “controlled” have meanings
correlative to the term “control.”

       

      “Agreement” has the meaning set
forth in the introductory paragraph hereof.

       

      “Allocation Statement” has the
meaning set forth in Section 2.06(b).

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Applicable Laws” means any
applicable statutes, laws, ordinances, rules, orders, decrees, regulations,
administrative pronouncements and judicial decisions of any Governmental
Authority, including any Securities Laws and any rules of any Self-Regulatory
Organization.

       

      “Assignment Agreement” means
the Assignment Agreement to be dated as of the Closing Date between Buyer and
Seller in substantially the form annexed as Exhibit A
hereto.

       

      “Assumed Liabilities” has the meaning set
forth in Section 2.03.

       

       “Business” has the meaning set
forth in the recitals hereto.

       

      “Business Contracts” has the
meaning set forth in Section 2.01(a)(iii).

       

      “Business Day” means any day
other than a Saturday, Sunday or day on which banks in the State of New York are
authorized or obligated by law or executive order to close.

       

      “Business Employee” means any
employee who is actively and primarily employed by Seller in connection with the
Business.

       

      “Business Material Adverse
Effect” means a material adverse effect on the business, financial
condition, or results of operations of the Business, taken as a whole,
individually or in the aggregate, except any such effect resulting from,
relating to or arising in connection with (a) changes in economic,
regulatory or political conditions generally, (b) financial market
fluctuations or conditions, (c) economic or regulatory changes or effects
in or affecting the financial services industry generally, (d) changes in
the Specialist business generally, (e) changes resulting from the execution
of this Agreement, the public announcement hereof or the consummation of the
transactions contemplated hereby, or (f) losses generated from Seller’s
operations in amounts consistent with past practice (provided that with respect
to clauses (a), (b), (c) or (d) such changes do not adversely affect the
Business in a disproportionate manner).

       

      “Buyer” has the meaning set
forth in the introductory paragraph hereof.

       

      “Buyer Consents” has the
meaning set forth in Section 4.03.

       

      “Buyer Material Adverse Effect”
means such state of facts, event, change or effect that would reasonably be
expected to prevent or substantially delay the consummation of the transactions
contemplated by this Agreement except any such effect resulting from, relating
to or arising in connection with (a) changes in economic, regulatory or
political conditions generally, (b) financial market fluctuations or
conditions, or (c) economic or regulatory changes or effects in or
affecting the financial services industry generally (provided that with respect
to clauses (a), (b), or (c) such changes do not adversely affect the Buyer in a
disproportionate manner).

       

      “Claim” has the meaning set
forth in Section 10.03.

       

      “Closing” has the meaning set
forth in Section 2.07.

       

      “Closing Date” means the date
the Closing takes place.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Code” means the Internal Revenue Code of
1986, as amended, and the rules and regulations thereunder.

       

      “Commodity Exchange Act” means
the Commodity Exchange
Act, as amended, and the rules and regulations thereunder.

       

      “Confidentiality Agreement”
means the agreement dated as of November 16, 2007 between Buyer and
Seller.

       

      “Contract” means any contract,
agreement, lease, license, commitment, sale and purchase order, or understanding
of any kind.

       

      “Damages” has the meaning set
forth in Section 10.02.

       

      “Employee Plan” has the meaning
set forth in Section 3.14.

       

      “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended, and the rules and regulations
thereunder.

       

      “ERISA Affiliate” means any
business or entity that would be treated as a single employer with any other
business or entity under Section 414 of the Code or is under common control with
any other business or entity under Section 4001(a)(14) of
ERISA.

       

      “Exchange Act” means the Securities Exchange Act of
1934, as amended, and the rules and regulations thereunder.

       

      “Excluded Assets” has the meaning set
forth in Section 2.02.

       

      “Excluded Liabilities” has the meaning set
forth in Section 2.04.

       

      “Excluded Name” has the meaning set
forth in Section 2.02(e).

       

      “GAAP” means United States
generally accepted accounting principles, as in effect from time to time and
applied consistently.

       

      “Governmental Authority” means
any United States or foreign federal, state, or local government, governmental,
quasi-governmental, regulatory or administrative authority, agency, body,
instrumentality or commission or any court, tribunal or judicial or arbitral
body, or any Self-Regulatory Organization.

       

      “GSEC” means Goldman Sachs
Execution & Clearing, L.P.

       

      “GSEC Account” means the
specialist clearing account #21791209 (and all sub-accounts) at
GSEC.  Long and short Unsettled Trades and related obligations shall
be deemed to be in the GSEC Account and part of the Assumed Liabilities for
purposes of Section 2.03 even if the resulting positions have not yet been
recorded or settled in the GSEC Account.  Seller’s Stock Borrow
Obligations shall be deemed to be in the GSEC Account and part of the Excluded

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      Liabilities
for purposes of Section 2.04 for purposes of this Agreement whether or not yet
recorded.

       

      “GSEC Transfer and Assumption
Agreement” means an agreement among Buyer, Seller and GSEC pursuant to
which the Purchased Assets referred to in Section 2.01(a)(i) will be transferred
and related liabilities assumed, and providing for the release of all
obligations of the Seller, in relation to the Purchased Assets in the GSEC
Account and the Stock Borrow Obligations, in form and substance satisfactory to
each party thereto.

       

      “Indebtedness” means, without
duplication, all Liabilities of the Seller, or in connection with the Business,
any Affiliate of Seller: (a) for borrowed money or in respect of loans or
advances; (b) evidenced by bonds, debentures, notes or other similar
instruments; (c) for any accrued interest, prepayment premiums or penalties
or other costs or expenses related to any of the items referenced in clauses (a)
and (b); (d) in respect of letters of credit, whether or not drawn, and
bankers’ acceptances issued for the account of the Seller; and (e) in
respect of any guarantees of the Seller in connection with any of the
foregoing.  The term “Indebtedness” shall not include Stock Borrow
Obligations.

       

      “Indemnified Party” has the meaning set
forth in Section 10.03.

       

      “Indemnifying Party” has the meaning set
forth in Section 10.03.

       

      “Intellectual Property Rights”
means (a) all inventions (whether patentable or unpatentable and whether or not
reduced to practice), all improvements thereto, and all patents, patent
applications and patent disclosures, together with all reissuances,
continuations, continuations-in-part, divisions, revisions, extensions and
reexaminations thereof, (b) all trademarks, service marks, trade dress, logos,
trade names, and domain names, together with all translations, adaptations,
derivations and combinations thereof and including all goodwill associated
therewith, and all applications, registrations and renewals in connection
therewith, (c) all copyrights and all applications, registrations and
renewals in connection therewith, (d) all mask works and all applications,
registrations and renewals in connection therewith, (e) all trade secrets and
confidential business information (including research and development, know-how,
formulae, compositions, manufacturing and production processes and techniques,
schematics, technology, technical data, designs, drawings, flowcharts, block
diagrams, specifications, customer and supplier lists, pricing and cost
information and business and marketing plans and proposals), (f) all computer
software, and (g) all rights to sue and recover for any past or future
infringement thereof.

       

      “Investment Advisers Act” means
the Investment Advisers Act of
1940, as amended, and the rules and regulations thereunder.

       

      “Investment Company Act” means
that Investment Company Act of
1940, as amended, and rules and regulations thereunder.

       

      “IT Assets” means computer
hardware.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      “Knowledge of Seller,” “Seller’s Knowledge” or any
other similar knowledge qualification with respect to Parent, Seller, or any
Affiliate of Seller in this Agreement means the actual knowledge of William
White, Paul Vroling, Richard den Drijver and William Floyd-Jones.

       

      “Liability” means any direct or
indirect liability, Indebtedness, claim, loss, damage, deficiency, obligation or
responsibility, fixed or unfixed, choate or inchoate, liquidated or
unliquidated, secured or unsecured, accrued, absolute, known or unknown,
contingent or otherwise.

       

      “Licensed Software” means the Software
as such term is defined in the Seller License.

       

      “Lien” means any mortgage,
lien, pledge, option, charge, security interest, or encumbrance in respect of a
property or asset.

       

      “Malicious Code” means a
computer program or piece of computer code, or any procedure, mechanism or
programming device that intentionally is designed to, or would enable any Person
to, corrupt or otherwise harm computing systems, the software, and/or computer
networks, including any “worms” or “viruses.”

       

      “Net Long/Short Amount” means
the aggregate value, as agreed to between the parties hereto, of the Seller’s
long positions (including any Unsettled Trades) in the Specialist Securities,
minus the aggregate value of the Seller’s short positions (including any
Unsettled Trades) in the Specialists Securities in the GSEC Account, in each
case based on the closing sale price of such securities on the NYSE, as of the
close of business on the Business Day immediately preceding the Closing
Date.

       

      “Notes” has the meaning set
forth in Section 5.08.

       

      “Note Purchase Agreement” has the meaning set
forth in Section 5.08.

       

      “NYSE” means The New York Stock
Exchange.

       

      “Parent” has the meaning set
forth in the introductory paragraph hereto.

       

      “Parent Material Adverse Effect” means
a material adverse effect on the business, financial
condition,  assets or results of operations of the Parent and its
Subsidiaries, taken as a whole, individually or in the aggregate, except any
such effect resulting from, relating to or arising in connection with
(a) changes in economic, regulatory or political conditions generally,
(b) financial market fluctuations or conditions, (c) economic or
regulatory changes or effects in or affecting the financial services industry
generally or (d) changes resulting from the execution of this Agreement,
the public announcement hereof or the consummation of the transactions
contemplated hereby (provided that with respect to (a), (b) or (c) such changes
do not adversely affect the Parent in a disproportionate manner).

       

      “Patent License” has the meaning set
forth in Section 7.05.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      “Permitted Liens” means
(a) Liens for Taxes, assessments and similar charges not yet due or payable
or being contested in good faith in appropriate proceedings for which adequate
reserves have been made in accordance with GAAP, (b) mechanic’s,
materialman’s, carrier’s, repairer’s and other similar Liens arising in the
ordinary course of business, and (c) with respect to leased real property,
any Liens on the underlying fee estate that do not materially detract from the
value or materially interfere with any current use of any leased real property
by Seller, and (d) Liens in favor of GSEC arising in the ordinary course of
business between Seller and GSEC as conducted through the GSEC
Account.

       

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

       

      “Policies” has the meaning set
forth in Section 3.12.

       

      “Potential Contributor” has the
meaning set forth in Section 10.04.

       

      “Pre-Closing Tax Period” means
any Tax period ending on or before the Closing Date and, with respect to a Tax
period that begins on or before the Closing Date but ends thereafter, the
portion of such Tax period that ends on the Closing Date.

       

      “Privileges” has the meaning set
forth in Section 10.03(i).

       

      “Privileged Information” has the meaning set
forth in Section 10.03(i).

       

      “Put/Call Agreement” means the
Put/Call Option Agreement dated June 15, 2007, among the Seller, Mill Bridge IV,
LLC and the individuals listed on Schedule A thereto, as amended from time to
time.

       

      “Purchased Assets” has the
meaning set forth in Section 2.01.

       

      “Purchase Price” has the meaning set
forth in Section 2.06.

       

      “Regulatory Order” means, with
respect to the Seller or any officer, director or employee of the Seller, any
Contract, order, decree, agreement, memorandum of understanding or similar
arrangement with, or commitment letter or similar submission by, any
Person.

       

      “Refunds” has the meaning set
forth in Section 7.08.

       

      “Required Consents” has the meaning set
forth in Section 3.03.

       

      “Schedules” has the meaning set
forth in ARTICLE 3.

       

      “SEC” means the United States
Securities and Exchange Commission.

       

      “Securities Act” means the
Securities Act of 1933,
as amended, and the rules and regulations promulgated thereunder.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      “Securities Laws” means,
collectively, the Securities Act, the Exchange Act, the Investment Advisers Act,
the Investment Company Act, the Commodity Exchange Act and the rules and
regulations promulgated thereunder and any other federal, state, local or
foreign securities laws, rules or regulations.

       

      “Segregated Account” has the meaning set
forth in Section 5.08.

       

      “Self-Regulatory Organization”
means FINRA (formerly known as “the National Association of Securities Dealers,
Inc.”), the NASDAQ Stock Market, Inc., the American Stock Exchange, the National
Futures Association, the Chicago Board of Trade, the NYSE, any national
securities exchange (as defined in the Exchange Act), any other securities
exchange, futures exchange, contract market, commodities market, any other such
exchange, clearing agency or corporation or any other similar federal, state or
foreign self-regulatory body or organization.

       

      “Seller” has the meaning set
forth in the introductory paragraph hereto.

       

      “Seller License” has the meaning set
forth in Section 7.04.

       

      “Specialist” and “Specialist Organization” means
“specialist” and “specialist organization”, respectively, as such terms are used
in the rules of the NYSE; when used with respect to specific securities, these
terms refer to securities in which the Specialist is registered as a Specialist
by virtue of a Specialist Allocation, and the NYSE member organization with
which such Specialist is associated, as the case may be.

       

      “Specialist Allocation” means
the right, granted by the NYSE to a Specialist Organization, to have its
Specialists act as such with respect to specified securities of Persons whose
securities are listed on the NYSE.

       

      “Specialist Securities” means
the specified securities allocated by the NYSE to the Seller and Specialists
associated with the Seller pursuant to a Specialist Allocation, which, as of the
date hereof, shall include, without limitation, the securities referred to in
Section 2.01(a)(i).

       

      “Stock Borrow Collateral” means
collateral of the Seller placed with GSEC in respect of the Stock Borrow
Obligations.

       

      “Stock Borrow Obligations”
means the obligations of the Seller to GSEC in relation to its short positions
in Specialist Securities.

       

      “Subsidiary” means, with
respect to any Person, any entity, whether incorporated or unincorporated, of
which at least a majority of the securities or ownership interests having by
their terms ordinary voting power to elect a majority of the board of directors
or other persons performing similar functions is directly or indirectly owned or
controlled by such Person.

       

      “Tax” means any (i) United
States federal, state or local or any foreign tax, fee, levy, duty, assessment,
custom, tariff or other similar charge of any kind whatsoever (including, but
not limited to, withholding on amounts paid to or by any Person), together with
any interest, 

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      penalty,
addition to tax or additional amount, imposed or collected by any Governmental
Authority, and (ii) Liability for the payment of any amounts of the type
described in clause (i) of this paragraph as a result of Treasury Regulation
1.1502-6 (or similar provision of state, local or foreign law) or being party to
any agreement, arrangement or express or implied obligation to indemnify or pay
any other Person.

       

      “Taxing Authority” means any
Governmental Authority responsible for the imposition, collection, regulation or
administration of any Tax (United States federal, state or local or foreign
Tax), including, without limitation, the United States Internal Revenue Service
and Department of Treasury.

       

      “Tax Returns” means any
returns, declarations, statements, estimates, reports, forms, claims for refund
or credit, or other information relating to Taxes, including any schedules or
attachments thereto, any amendments thereof or supplements thereto, that are
supplied or required to be supplied to any Taxing Authority.

       

      “Third Party Claim” has the
meaning set forth in Section 10.03(b).

       

      “Transaction Agreements” means
this Agreement, the Assignment Agreement, the Seller License and the Patent
License.

       

      “Transferred Employee” has the
meaning set forth in Section 8.01.

       

      “Transition Services” has the meaning set
forth in Section 7.03.

       

      “Unsettled Trades” means
purchases or sales of Specialist Securities by Seller that (i) for purposes
of Section 3.06 hereof, as of the date hereof, and (ii) for all other purposes,
as of the time of Closing on the Closing Date, have been executed but not yet
settled.

       

      “WARN Act” has the meaning set
forth in Section 8.01(b).

       

      “Warranty Breach” has the meaning set
forth in Section 10.02(i).

       

      Section
1.02.     Interpretive
Matters

      
        

         

        (a)           Gender and
Number.  The masculine, feminine or neuter gender and the
singular or plural number shall each be deemed to include the others whenever
the context so requires.

         

        (b)           Currency.  References
to “$” or “dollars” shall be to United States dollars.

         

        (c)           References.  All
references to Articles or Sections herein refer to the referenced Articles or
Sections of this Agreement, unless otherwise stated.

         

        ARTICLE
2

        Purchase
and Sale

         

        Section
2.01.     Sale and Transfer of
Assets.

         

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        (a)           Except
as otherwise provided below, upon the terms and subject to the conditions of
this Agreement, Buyer agrees to purchase from Seller, and Seller agrees to sell,
convey, transfer, assign and deliver, or cause to be sold, conveyed,
transferred, assigned and delivered, to Buyer at the Closing, free and clear of
all Liens, other than Permitted Liens all right, title and interest in, to and
under, the following assets and property (collectively, the “Purchased
Assets”):

         

        (i)           all
long and short positions (including rights and obligations in respect of
Unsettled Trades) in Specialist Securities in the GSEC Account as of the Closing
Date;

         

        (ii)          all
personal property and interests therein, listed on Schedule
2.01(a)(ii);

         

        (iii)         all
claims, rights, interests and benefits of Seller under the Contracts set forth
on Schedule
2.01(a)(iii) (the “Business
Contracts”);

         

        (iv)         all
rights, claims, credits, causes of action or rights of set-off against third
parties relating to the Purchased Assets; and

         

        (v)          copies
of all manuals, procedures, policies, distribution lists, mailing lists stock
sale and purchase ledgers, in each case, as used in the Business and existing on
the Closing Date and any information relating to any Tax imposed on the
Purchased Assets.

         

        Section
2.02.     Excluded
Assets.  The parties expressly understand and agree that other
than the Purchased Assets, no other assets and properties of Seller shall be
sold or transferred to Buyer hereby (the “Excluded Assets”)
including:

         

        (a)           all
of Seller’s cash and equivalents and other marketable securities (other than
marketable securities that are referred to in Section 2.01(a)(i));

         

        (b)           all
employment Contracts of any employee engaged by Seller in connection with the
Business;

         

        (c)           all
accounts, notes and other receivables, including receivables from or in respect
of securities borrowed, brokers and clearing organizations, exchanges and
affiliates;

         

        (d)           insurance
policies of Seller and all claims, credits, causes of action or rights
thereunder;

         

        (e)           all
rights to the name “Van der Moolen” and any symbols, logos and marks relating
thereto (the “Excluded
Name”);

         

        (f)           all
books, records, files and papers, whether in hard copy or computer format,
prepared in connection with this Agreement, the other Transaction Agreements or
the transactions contemplated hereby or thereby and all minute books and
corporate records of Seller other than those owned, held or used primarily in
the Business;

         

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        (g)           all
rights of Seller arising under this Agreement, the other Transaction Agreements
or the transactions contemplated hereby or thereby;

         

        (h)           all
assets of or relating to the Employee Plans;

         

        (i)           the
Intellectual Property Rights of Seller; and

         

        (j)           the
Stock Borrow Collateral (other than such Stock Borrow Collateral represented by
long positions in Specialist Securities).

         

        Section
2.03.        Assumed
Liabilities.  Upon the terms and subject to the conditions of
this Agreement, Buyer agrees, effective at the time of the Closing, to assume
the following, and only the following, Liabilities (the “Assumed Liabilities”), and no
other Liabilities whatsoever whether arising from the operation of the Business
prior to or following the Closing Date:

         

        (a)           All
Liabilities of the Seller arising out of the Business Contracts (other than
Liabilities (i) arising out of the breach thereof occurring on or prior to the
Closing Date or (ii) arising out of or relating to any termination or
announcement or notification of an intent to terminate any such Business
Contract prior to or as a result of, or in connection with, the announcement of,
or the execution and delivery of, this Agreement, the Closing, or the
transactions contemplated hereby);

         

        (b)           all
Liabilities of Buyer expressly set forth in the Agreement and the Transaction
Agreements; and

         

        (c)           all
Liabilities represented by any of the positions, at the Closing Date, in
Specialist Securities described in Section 2.01(a)(i), including
obligations to make all payments and deliver all securities and pay all
transaction related charges and fees in relation to Unsettled Trades, and all
Stock Borrow Obligations.

         

        Section
2.04.        Excluded
Liabilities.  Notwithstanding any provision in this Agreement
or any other writing to the contrary, Buyer is assuming only the Assumed
Liabilities and is not assuming, nor shall it for any reason be deemed to have
assumed, any other Liability of the Business, the Seller or any of its
Affiliates of whatever nature, whether or not of, associated with or arising
from the Business or the operation thereof or any Purchased Assets, that are not
Assumed Liabilities.  All such other Liabilities shall be retained by
and remain Liabilities of Seller and its Affiliates (all such Liabilities not
being assumed being herein referred to as the “Excluded
Liabilities”).  Without limiting the generality of the
foregoing, Excluded Liabilities shall include the following:

         

        (a)           all
Indebtedness of the Seller;

         

        (b)           all
Liabilities of Seller to Parent and other Affiliates of Seller;

         

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        (c)           any
claim of a third party alleging infringement or misappropriation of Intellectual
Property Rights of third parties, solely to the extent that such claim relates
to, or was incurred during or in respect of, the time period prior to
Closing;

         

        (d)           all
Liabilities associated with the termination of any Contract that is not assumed
pursuant to this Agreement;

         

        (e)           all
Liabilities associated with the termination on or prior to the Closing Date of
any Contract, including any Business Contract;

         

        (f)           all
Liabilities related to any Excluded Assets;

         

        (g)           any
Liability relating to the employment, termination of employment, compensation or
employee benefits of (i) those Business Employees who become Transferred
Employees, and the dependents thereof, to the extent that such Liability arises
or is incurred during or in respect of the period prior to Closing, and (ii) all
other Business Employees, and dependents thereof, without
limitation;

         

        (h)           any
Liability of or relating to Employee Plans, including without limitation,
relating to the funding, operation, administration, amendment or termination of,
or withdrawal or partial withdrawal from, any employee benefit plan or
arrangement of Seller or its ERISA Affiliates (including, without limitation,
under Section 302 and Title IV of ERISA and Sections 412, 4971 and 4980 of the
Code), whether arising before, on or after the Closing;

         

        (i)           all
Liabilities of Seller related to linkage fees assessed against the Business for
directing trades to other exchanges on or prior to the Closing
Date;

         

        (j)           (i)
all Liabilities of Seller or any member of any consolidated, affiliated,
combined, unitary or similar group of which Seller is or has been a member, for
or with respect to Taxes, and (ii) any and all Taxes imposed on, with respect to
or arising out of the Purchased Assets or the Business for any Pre-Closing Tax
Period; and

         

        (k)          all
Liabilities relating to any Regulatory Order, or any litigation, Claim,
proceeding, action (including any individual, joined or class action), cause of
action, assertion, allegation, demand, suit, inquiry, investigation,
examination, hearing or complaint whatsoever (collectively, “Actions”) of or by any Person
(including any Governmental Authority) relating to any Purchased Assets, the
Business or the Seller, arising out of, in connection with, or relating in any
manner to, (i) the operation of the Business or the use or ownership of the
Purchased Assets on or prior to the Closing Date, or (ii) any act or omission of
Seller or Parent (including without limitation, any violation or breach of any
Applicable Laws, including without limitation any Securities Laws).

         

        Section
2.05.        Certain
Assignments.  (a) Notwithstanding any provision of this
Agreement to the contrary, this Agreement shall not constitute an agreement to
assign any Purchased Asset or any right thereunder if an attempted assignment
without the consent of any Person including a Governmental Authority would
constitute a breach of obligations thereunder, 

         

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        or in any
way adversely affect the rights of Seller, or upon transfer, the Buyer
thereunder, or would otherwise result in violations of Applicable Laws that
could result in sanctions or an extraordinary action by Governmental
Authorities.  If any transfer or assignment by Seller or any of its
Affiliates to, or any assumption by Buyer of, any interest in, or Liability
under, any Purchased Asset requires the consent of a third party, then such
assignment or assumption shall be made subject to such consent being
obtained.  If any such consent is not obtained prior to Closing,
Seller and Buyer will cooperate (at their own expense) in a mutually agreeable
arrangement under which Buyer would obtain benefits and assume the obligations
thereunder in accordance with this Agreement.

         

        (b)          
Upon the request of Buyer at any time before or after Closing, at Seller’s sole
expense, Seller shall cooperate with Buyer and use its commercially reasonable
efforts to promptly obtain execute and deliver any instruments of transfer or
assignment or other documents reasonably necessary to perfect or correct
Seller’s or its Affiliates’ title in or to the Purchased Assets and Seller shall
be solely responsible for all costs relating to the acquisition, preparation and
the filing or other recordation of any such instruments or
documents.

         

        Section
2.06.        Purchase Price; Allocation of
Purchase Price.  (a) The consideration for and in respect of
the Purchased Assets and the assumption of the Assumed Liabilities is *
(collectively, the “Purchase Price”), *.

         

        (b)           The
Purchase Price shall be allocated among the Purchased Assets and the covenants
provided for in Sections 5.05 and 7.03 for purposes of Section 1060 of the Code
and other applicable Tax purposes.  As soon as practicable after the
Closing, Buyer shall deliver to Seller a statement (the “Allocation Statement”) that
sets forth a determination of the Purchase Price and an allocation of the
Purchase Price among the Purchased Assets.  If within 10 days after
the delivery of the Allocation Statement Seller notifies Buyer in writing that
Seller objects to the allocation set forth in the Allocation Statement, Buyer
and Seller shall use commercially reasonable efforts to resolve such dispute
within 20 days.  In the event that Buyer and Seller are unable to
resolve such dispute within 20 days, Buyer and Seller shall jointly retain a
nationally recognized accounting firm (the “Accounting Referee”) to
resolve the disputed items.  Upon resolution of the disputed items,
the allocation reflected on the Allocation Statement shall be adjusted to
reflect such resolution.  The costs, fees and expenses of the
Accounting Referee shall be borne equally by Buyer and Seller.  If an
adjustment is made with respect to the Purchase Price pursuant to Section 10.06,
the Allocation Statement shall be adjusted in accordance with Section 1060 of
the Code and as mutually agreed by Buyer and Seller.  Seller shall
timely and properly prepare, execute, file and deliver all documents, forms and
other information as Buyer may reasonably request to prepare the Allocation
Statement.

         

        (c)           Seller
and Buyer shall (i) be bound by the Allocation Statement (and any adjustments
thereto pursuant to Section 2.06(b)), and (ii) not take (or cause or permit any
of their respective Affiliates to take) any position inconsistent therewith in
the preparation or filing of any Tax Return (including, without limitation,
filing Form 8594 with its federal income Tax 

         

         

          
            

          

        

        
          *
Indicates omission of material which has been separately filed pursuant to a
request for confidential treatment

           

           

        

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        Return for
the taxable year that includes the date of the Closing) or in any audit or
proceeding with respect to any Taxes.

         

        (d)           Not
later than 30 days prior to the filing of their respective Forms 8594 relating
to this transaction, each party shall deliver (or cause to be delivered) to the
other party a copy of its Form 8594.

         

        Section
2.07.       Closing.  (a) The
closing of the transaction herein contemplated (the “Closing”) shall take place at
the offices of Fried, Frank, Harris, Shriver & Jacobson LLP, One New York
Plaza, New York, New York, on the later of December 10, 2007 and the first
Monday that is a Business Day following the satisfaction of the conditions set
forth in ARTICLE 9, or at such other time or place as Buyer and Seller may
agree, it being agreed that Closing shall take place, to the extent possible,
prior to the opening of the NYSE on the Closing Date.

         

        (b)           At
the Closing, Buyer will deliver, or cause to be delivered to Seller the
following:

         

        (i)           the
Purchase Price, *, in immediately available funds by wire transfer to an account
or accounts designated by Seller, by notice to Buyer, not later than two
Business Days prior to the Closing Date;

         

        (ii)          a
counterpart to the Assignment Agreements executed by Buyer and such other
documentation as is necessary or appropriate to effect or evidence the
assumption by Buyer of the Assumed Liabilities; and

         

        (iii)         a
counterpart to each of the Seller License, the Patent License and the other
Transaction Agreements to which Buyer is a party, executed by
Buyer.

         

        (c)           At
the Closing, Seller will deliver, or cause to be delivered, to Buyer the
following:

         

        (i)           the
absolute value of the Purchase Price, *, in immediately available funds by wire
transfer to an account or accounts designated by Buyer, by notice to Seller, not
later than two Business Days prior to the Closing Date;

         

        (ii)          evidence
reasonably satisfactory to Buyer of the transfer of ownership of the Seller’s
position in the Specialist Securities as of the Closing Date;

         

        (iii)         a
list of the Specialist Securities of Seller in the GSEC Account, and Stock
Borrow Obligations relating to any short sales as of the close of business on
the day prior to the Closing Date;

         

        (iv)         a
certificate signed by each of Seller and Parent to the effect that it is not a
“foreign person” as defined in Section 1445 of the Code substantially in the
form set forth in Treasury Regulation Section
1.1445-2(b)(2)(iii)(B);

         

          
            

          

        

        
          *
Indicates omission of material which has been separately filed pursuant to a
request for confidential treatment

           

        

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

         

        (v)          a
counterpart to the Assignment Agreements executed by Seller;

         

        (vi)         such
other documentation as is reasonably necessary or appropriate to effect or
evidence the transfer of the Purchased Assets to Buyer;

         

        (vii)        a
counterpart to each of the Seller License, the Patent License and the other
Transaction Agreements to which Seller is a party, executed by Seller;
and

         

        (viii)       the
certificates to be delivered by Seller pursuant to
Section 9.02.

         

        ARTICLE
3

        Representations
and Warranties of Seller 

         

        Except as
set forth in the disclosure schedules prepared by Seller and delivered to Buyer
simultaneously with the execution hereof (the “Schedules”), Seller represents
and warrants to Buyer that as of the date hereof, and as of the Closing
Date:

         

        Section
3.01.       Corporate Existence and
Power.  Seller is a limited liability company duly incorporated
under the laws of the State of New York, validly existing and in good standing
under such laws, and has all limited liability company powers and all
governmental licenses, authorizations, permits, consents and approvals of all
Governmental Authorities required to carry on its business as now conducted
(including without limitation, the Business) except for those licenses,
authorizations, permits, consents and approvals the absence of which,
individually or in the aggregate, has not had, and would not reasonably be
expected to have, a Business Material Adverse Effect.  Seller is duly
qualified to do business as a foreign corporation and is in good standing in
each jurisdiction where such qualification is necessary, except for those
jurisdictions where the failure to be so qualified, individually or in the
aggregate, has not had, and would not reasonably be expected to have, a Business
Material Adverse Effect.

         

        Section
3.02.       Corporate
Authorization.  The execution, delivery and performance by
Seller of this Agreement and, as of the Closing, the other Transaction
Agreements to which it is a party, and the consummation of the transactions
contemplated hereby and thereby, are within Seller’s power, and have been or, in
the case of the other Transaction Agreements, will have been, duly authorized by
all necessary action on the part of Seller and no other proceedings on the part
of Seller will be necessary to authorize, approve, or consent to, this Agreement
or any other Transaction Agreements, or to consummate the transactions
contemplated hereby and thereby.  Assuming the due authorization,
execution and delivery of this Agreement and, as of the Closing, the other
Transaction Agreements by Buyer, each of this Agreement and the other
Transaction Agreements constitutes (or when executed and delivered will
constitute) a valid and binding agreement of Seller, enforceable against Seller
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization or other laws of general application relating to or affecting the
enforcement of creditors’ rights generally and to general principles of
equity.

         

        Section
3.03.       Governmental
Authorization.  The execution, delivery and performance by
Seller of this Agreement and, as of the Closing, the other Transaction
Agreements to which it is a party and the consummation of the transactions
contemplated hereby and thereby do not violate 

         

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

         

        any
authorizations, registrations, or licenses of Seller with any Governmental
Authority and requires no action by, in respect of or filing with any
Governmental Authority or official other than (a) filing of amended Forms
BD with the SEC and the securities commission or similar authority of any
applicable State, (b) approval by the Self-Regulatory Organizations of
which Seller is a member and (c) the other items set forth on Schedule 3.03 (the
items referred to in clause (c) of this Section 3.03, the “Required
Consents”).

         

        Section
3.04.       Noncontravention.  The
execution, delivery and performance by Seller of this Agreement and, as of the
Closing, the other Transaction Agreements and the consummation of the
transactions contemplated hereby and thereby do not and will not (i) violate the
limited liability company agreement or other constituting documents of the
Seller, (ii) assuming compliance with the matters referred to in Section 3.03,
violate any Applicable Law except
for any violations which, individually or in the aggregate, have not had,
and would not reasonably be expected to have, a Business Material Adverse
Effect, (iii) except as disclosed on Schedule 3.03, Schedule 3.04, and
Schedule 4.03,
require any material consent or other action by any Person under, constitute a
default under, cause or permit the termination, cancellation, modification or
acceleration of any material right or obligation or the loss of any material
benefit relating to the Purchased Assets or (iv) result in the creation or
imposition of any material Lien on any Purchased Asset.

         

        Section
3.05.       Title to
Assets.  Seller has sole and exclusive good and valid legal
title to, and beneficial ownership of, all of the Purchased Assets, including
without limitation, Seller’s long positions in the Specialist Securities in the
GSEC Account, in each case, free and clear of any Liens other than Permitted
Liens. Seller will transfer and deliver to Buyer, at the Closing, good and valid
title to the Purchased Assets, free and clear of any Liens other than Permitted
Liens.

         

        Section
3.06.       Specialist Securities. Schedule 3.06 sets
forth a list, as of the close of the NYSE on the Business Day immediately
preceding the date hereof, of the number and designation of Specialist
Securities (including detail as to both its long- and short- positions therein),
including Unsettled Trades in the GSEC Account and Stock Borrow Obligations of
Seller.  The GSEC Account is the only clearing account through which
the Seller maintains Specialist Securities.

         

        Section
3.07.       Solvency.  Seller
is, and immediately following Closing will be, solvent.  The value of
the assets of Seller is, and immediately following Closing will be, greater than
the sum of its Liabilities and outstanding equity.  The Seller is, and
immediately following Closing will be, able to satisfy its Liabilities as they
come due in the ordinary course of business.

         

        Section
3.08.       Business
Contracts.

         

        (a)           Each
Business Contract is a valid and binding Contract of Seller, and is in full
force and effect, and Seller is not in default or breach under the terms of any
such Contract, and to the Knowledge of Seller, no other party to any Business
Contract is in breach or default thereof, except, in any such case, for such
defaults or breaches that, individually or in the 

         

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

         

        aggregate,
have not had, and would not reasonably be likely to have, a Business Material
Adverse Effect.

         

        (b)           A
true and complete copy of each such Business Contract, including any amendments
thereto, has been provided to Buyer.

         

        Section
3.09.       Litigation.  Except
as set forth on Schedule 3.09, there
is no Action pending against, or to the Knowledge of Seller, threatened against
or affecting, Seller or any employees of Seller which has had or would
reasonably be expected to have a Business Material Adverse Effect, and there is
no Action pending, or to the Knowledge of Seller, threatened that in any manner
challenges or seeks to prevent, enjoin, alter or materially delay the
transactions contemplated by this Agreement or the other Transaction
Agreements.

         

        Section
3.10.       Compliance with
Laws.  Except as disclosed on Schedule 3.10, Seller
is, and to Seller’s Knowledge its employees are, in compliance with all
Applicable Laws, including, without limitation, all Securities Laws applicable
to the Business, except such non-compliance as would not reasonably be expected
to have a Business Material Adverse Effect.

         

        Section
3.11.       Intellectual
Property.  (a) The operation of the Business (including
the operation and use of the Licensed Software, as such Licensed Software is
currently being used in the Business) does not infringe upon the Intellectual
Property Rights of any third parties, and no claim or notice from a third party
alleging such infringement has been received, or to the Seller's Knowledge, is
threatened against the Seller.

         

        (b)           The
Seller has taken commercially reasonable steps to ensure the continued and
uninterrupted operation of the IT Assets and software used in the Business
(including the Licensed Software), including employing security, maintenance,
disaster recovery, redundancy, backup, archiving and virus or malicious device
scanning/protection measures and securing its Software from unauthorized access,
penetration, intrusion, or security or firewall breach, in accordance with the
normal industry practice.  To the Knowledge of Parent and the Seller,
the IT Assets and Licensed Software is free from Malicious Code and does not
contain any bugs, errors, or problems that, in each case, would be expected to
materially impact the operation of such Licensed Software, or any computer
software or device intended to or capable of causing the Licensed Software to
cease functioning after a specific period of time  or on a specific
date or event.

         

        (c)           Seller
has sufficient rights in the Licensed Software to grant the license set forth in
Section 2 of the Seller License, and (i) the Licensed Software is not the
subject of any Lien, other than Permitted Liens, and (ii) there are no pending,
or to Seller’s Knowledge threatened, Actions by or against Seller, in either
case, that would reasonably be expected to impair or alter the scope of such
license in the future.  Schedule 3.11(c) sets
forth a complete and accurate list of all Third Party Software (as defined in
the Seller License) embedded in or used in connection with the Licensed Software
and the governing license (including open source licenses) for each such item of
Third Party Software.

         

        Section
3.12.       Insurance
Coverage.  The insurance policies covering Seller, its
Affiliates 

         

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

         

        and their
respective officers, directors, employees and members (the “Policies”) are in full force
and effect, all premiums with respect to the Policies covering all periods up to
and including the Closing Date have been paid and no notice of cancellation or
termination has been received with respect to any such Policy.  The
Policies provide for insurance coverage in amounts which are sufficient to cover
any losses that a reasonably prudent Specialist Organization would reasonably
expect to incur, including any losses that the Seller and its Affiliates
reasonably expect to incur in connection with any pending or threatened Actions
against Seller, its Affiliates and their respective officers, directors,
employees and members.

         

        Section
3.13.       Finders’
Fees.  There is no investment banker, broker, finder or other
intermediary that has been retained by, or is authorized to act on behalf of,
Seller or any of its Affiliates that might be entitled to any fee or commission
in connection with the transactions contemplated by this Agreement or the other
Transaction Agreements.

         

        Section
3.14.       Employee Benefit
Plans.  (a) For purposes of this Agreement, “Employee Plan” means each
“employee benefit plan”, as defined in Section 3(3) of ERISA, each employment,
severance, retention, bonus, termination, or similar contract, plan arrangement
or policy and each other plan or arrangement providing for compensation,
bonuses, profit-sharing, stock option or other stock related rights or other
forms of incentive or deferred compensation, vacation benefits, insurance
(including any self-insured arrangements), health or medical benefits, employee
assistance program, disability or sick leave benefits, fringe benefits, workers’
compensation, supplemental unemployment benefits, severance benefits and
post-employment or retirement benefits or other employee benefits of any kind
which is maintained, administered or contributed to by Seller or any of its
ERISA Affiliates and covers any Business Employee (and, if applicable, related
trust or funding agreements or insurance policies).  

         

        (b)           None
of Seller or any of its ERISA Affiliates or any predecessor thereof contributes
to, or has in the past six years contributed to, any multiemployer plan, as
defined in Section 3(37) of ERISA.  None of Seller or any of its ERISA
Affiliates or any predecessor thereof maintains or contributes to, or has in the
past six years maintained or contributed to, any plan that is subject to Title
IV of ERISA.  Buyer shall have no liability, contingent or otherwise,
with respect to any employee plans or agreements which are now or previously
have been sponsored, maintained, contributed to, or required to be contributed
to by Seller or any ERISA Affiliate of Seller.

         

        (c)           No
event has occurred and, to the Knowledge of Seller, there exists no condition or
set of circumstances in connection with which Buyer would be reasonably expected
to be subject to any actual or contingent Liability with respect to any Employee
Plan under (i) the terms of such plan or (ii) ERISA, the Code or any other
Applicable Law.

         

        (d)           Seller
is not a party to any collective bargaining or other labor or union contract
applicable to any Business Employee, and no collective bargaining agreement is
being negotiated by Seller with respect to any Business Employee.  No
labor dispute, strike or work stoppage or lock-out is pending or, to the
Knowledge of Seller, threatened against or involving the Business.

         

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

         

        (e)           Each
Employee Plan which is intended to be qualified under Section 401(a) of the Code
has received a favorable determination letter, and Seller is not aware of any
reason why any such determination letter should be revoked or not be
reissued.

         

        (f)           Schedule 3.14(f) sets
forth a list of the names, titles and current salaries of all Business Employees
who are actively employed in the Business as of the date hereof and indicates
any such Business Employees who are on short-term disability or other approved
leave of absence (other than vacation).

         

        Section
3.15.       Taxes.

         

        (a)           For
purposes of this Section 3.15, “Seller” shall include, not only Seller, but also
any entity that is a member of any consolidated, combined, or unitary group of
which Seller is also a member.

         

        (b)           Except
as set forth on Schedule 3.15(b),
Seller has filed all material Tax Returns that it was required to file, and all
such Tax Returns are true, accurate and complete in all material
respects.  All Taxes owed by Seller (whether or not shown on any Tax
Return) have been paid.  There is no dispute or claim concerning any
material Tax liability of Seller either (i) asserted in writing by any
Taxing Authority, or (ii) as to the Knowledge of Seller.  Seller does
not expect any Taxing Authority to assess any material additional Taxes for any
period for which Tax Returns have been filed.

         

        (c)           Seller
has withheld and paid all Taxes required to have been withheld and paid in
connection with any amounts paid or owing to any employee, independent
contractor, creditor, stockholder or other third party, and all Forms W-2 and
1099 required with respect thereto have been properly completed and timely
filed.

         

        (d)           There
are no material Liens with respect to any Taxes upon any of the Purchased
Assets, other than (i) Taxes, the payment of which is not yet due, or (ii) Taxes
or charges being contested in good faith by appropriate
proceedings.

         

        (e)           Seller
currently is treated as a partnership for federal income tax purposes, and at
all times since its formation Seller has been treated, for federal income tax
purposes, as either a disregarded entity under Treasury Regulation
§301.7701-3(b) or a partnership, and has not been treated as a
corporation.

         

        Section
3.16.        Sufficiency of
Assets.  Assuming (a) all Required Consents and Buyer
Consents are obtained, (b) Buyer meets the regulatory and operational
requirements imposed upon (i) Specialist Organizations specifically,
(ii) SEC registered broker-dealers and NYSE member organizations and FINRA
members generally, and all capital and net liquid assets requirements that a
Specialist Organization would require under NYSE and SEC rules in relation to
the positions being assumed by Buyer in respect of the Specialist Securities,
and the Specialist Securities that have been allocated to Seller pursuant to the
Specialist Allocation and Buyer has made the necessary arrangements with the
NYSE to obtain space on the NYSE trading floor, (c) satisfaction of all
conditions to Closing set forth herein, and (d) Buyer has obtained sufficient

         

         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

         

        rights to
use all software listed on Schedule 3.11(c), the
Purchased Assets together with Buyer’s rights hereunder and under the other
Transaction Agreements constitute all the assets, properties and rights
necessary to conduct the Business as currently conducted.

         

        ARTICLE
4

        Representations
and Warranties of Buyer

         

        Buyer
represents and warrants to Seller that as of the date hereof, and as of the
Closing Date:

         

        Section
4.01.        Corporate Existence and
Power.  Buyer is a corporation duly incorporated under the laws
of the State of Delaware, validly existing and in good standing under such laws,
and has all corporate powers and all governmental licenses, authorizations,
permits, consents and approvals of all Governmental Authorities required to
carry on its business except for those licenses, authorizations, permits,
consents and approvals the absence of which, individually or in the aggregate,
has not had, and would not reasonably be expected to have, a Buyer Material
Adverse Effect.  Buyer is duly qualified to do business as a foreign
corporation and is in good standing in each jurisdiction where such
qualification is necessary, except for those jurisdictions where the failure to
be so qualified, individually or in the aggregate, has not had, and would not
reasonably be likely to have, a Buyer Material Adverse Effect.

         

        Section
4.02.        Corporate
Authorization.  The execution, delivery and performance by
Buyer of this Agreement and, as of the Closing, the other Transaction
Agreements, and the consummation of the transactions contemplated hereby and
thereby, are within Buyer’s power, and have been or, in the case of the other
Transaction Agreements, will have been, duly authorized by all necessary action
on the part of Buyer and no other proceedings on the part of Buyer will be
necessary to authorize, approve, or consent to, this Agreement or any other
Transaction Agreements, or to consummate the transactions contemplated hereby
and thereby.  Assuming the due authorization, execution and delivery
of this Agreement and, as of the Closing, the other Transaction Agreements by
Seller, each of this Agreement and the other Transaction Agreements constitutes
(or when executed and delivered will constitute) a valid and binding agreement
of Buyer, enforceable against Buyer, in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization or other laws of general
application relating to or affecting the enforcement of creditors’ rights
generally and to general principles of equity.

         

        Section
4.03.        Governmental
Authorization.  The execution, delivery and performance by each
of Buyer of this Agreement and, as of the Closing, by Buyer of the other
Transaction Agreements and the consummation of the transactions contemplated
hereby and thereby do not violate any authorizations, registrations, or licenses
of Buyer with any Governmental Authority and requires no action by, in respect
of, or material filing with any Governmental Authority, agency or official other
than (a) compliance with any applicable requirements of the Exchange Act,
(b) compliance with the requirements of any Self-Regulatory Organization,
and (c) the items set forth on Schedule 4.03 (the
items referred to in clause (c) of this Section 4.03, the “Buyer Consents”).

         

        Section
4.04.        Noncontravention.  The
execution, delivery and performance by Buyer of 

         

         

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

         

        this
Agreement and, as of the Closing, the other Transaction Agreements and the
consummation of the transactions contemplated hereby and thereby do not and will
not (a) violate the articles of incorporation and by-laws of Buyer,
(b) assuming (i) the accuracy and truth of the Seller’s and Parent’s
representations and warranties contained herein, and (ii) compliance with
the matters referred to in Section 4.03, violate any Applicable Law, except, in
each case, such violations which individually, or in the aggregate have not had,
and would not reasonably be expected to have a Buyer Material Adverse
Effect.

         

        Section
4.05.        Financing.  Buyer
has sufficient funds to enable it to make payment of the Purchase Price and all
other amounts to be paid by it hereunder.

         

        Section
4.06.        Inspections; No Other
Representations.  Buyer is an informed and sophisticated
purchaser, and has engaged expert advisors, experienced in the evaluation and
purchase of property and assets such as the Purchased Assets as contemplated
hereunder.  Buyer has undertaken such investigation and has been
provided with and has evaluated such documents and information as it has deemed
necessary to enable it to make an informed and intelligent decision with respect
to the execution, delivery and performance of this Agreement.  Buyer
will undertake prior to the Closing such further investigation and request such
additional documents and information as it deems necessary.  Buyer
agrees to accept the Purchased Assets in the condition they are in on the
Closing Date based on its own inspection, examination and determination with
respect to all matters and without reliance upon any express or implied
representations or warranties of any nature made by or on behalf of or imputed
to Seller, except the representations and warranties of Seller and Parent set
forth in this Agreement and the other Transaction Agreements.  Without
limiting the generality of the foregoing, Buyer acknowledges that Seller makes
no representation or warranty with respect to (a) any projections,
estimates or budgets delivered to or made available to Buyer of future revenues,
future results of operations (or any component thereof), future cash flows or
future financial condition (or any component thereof) of the Business or the
future business and operations of the Business or (b) any other information
or documents made available to Buyer or its counsel, accountants or advisors
with respect to the Business, except as expressly set forth in this
Agreement.

         

        Section
4.07.        Litigation.  There
is no Action pending against, or to the Knowledge of Buyer, threatened against
or affecting, Buyer that in any manner challenges or seeks to prevent, enjoin,
alter or materially delay the transactions contemplated by this Agreement or the
other Transaction Agreements.

         

        Section
4.08.        Finders’
Fees.  There is no investment banker, broker, finder or other
intermediary that has been retained by, or is authorized to act on behalf of,
Buyer that might be entitled to any fee or commission in connection with the
transactions contemplated by this Agreement or the other Transaction
Agreements.

         

        Section
4.09.        NYSE Member
Organization.  Buyer is a member organization of the
NYSE.

         

         

        
          
            
            

          

          
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        ARTICLE
5

        Covenants
of Seller

         

        Seller
agrees that:

         

        Section
5.01.       Conduct of the
Business.  From the date hereof until the Closing Date, Seller
shall conduct the Business in the ordinary course consistent with past practice
and shall use commercially reasonable efforts to preserve intact the business
organizations and relationships with third parties relevant to the Business, and
to keep available the services of the present Business
Employees.  Without limiting the generality of the foregoing, from the
date hereof until the Closing Date, with respect to the Business, Seller will
not, without the prior written consent of Buyer:

         

        (a)           except
for the purchase of securities or other investments or assets in the ordinary
course of business consistent with past practice, acquire a material amount of
assets from any Person or merge or consolidate Seller with any other
Person;

         

        (b)           sell,
lease, license or otherwise dispose of any material Purchased Assets other than
i) pursuant to existing contracts or commitments disclosed herein, or ii) for
sales, transfers or other dispositions of securities or other investments or
assets in the ordinary course of business, consistent with past
practice;

         

        (c)           commence
an Action against any customer of the Business;

         

        (d)           terminate
any Business Contract or waive, release, cancel or assign any material rights or
claims thereunder other than in the ordinary course of business consistent with
past practice;

         

        (e)           take
any action to, or that would reasonably be likely to, discourage, prevent or
interfere with (i) the offers of employment by Buyer to Business Employees or
(ii) such Business Employees’ decisions to accept such offers of
employment;

         

        (f)           fail
to comply with the minimum net capital requirements applicable to the Seller
under the Exchange Act, and those applicable to it under the rules of the NYSE
relating to Specialists or any other similar requirement of any applicable
Governmental Authority;

         

        (g)           with
respect to any Purchased Asset (i) make or revoke any Tax election or
change any Tax accounting method, except as required by applicable Tax law or
(ii) settle, compromise or concede any audit, claim, deficiency or
proceeding relating to Taxes; or

         

        (h)           agree
or commit to do any of the foregoing.

         

        Section
5.02.        Access to
Information.  (a) From the date hereof until the Closing Date,
Seller will (1) give, and cause its Affiliates to give, to Buyer, its counsel,
financial advisers, auditors and other authorized representatives reasonable
access to the personnel, offices, properties, Contracts, books and records
relating to the Business, (ii) furnish promptly, and cause 

         

         

        
          
            
            

          

          
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        its
Affiliates to furnish promptly, to Buyer, its counsel, financial advisers,
auditors and other authorized representatives such financial and operating data
and other information relating to the Business as such Persons may reasonably
request and (iii) instruct the employees, counsel and financial advisers of
Seller and its Affiliates to cooperate with Buyer in its investigation of the
Business as Buyer may reasonably request and shall assist Buyer in communicating
with Persons having business relationships, agreements and arrangements with the
Business regarding the transactions contemplated by this Agreement, including
the auditors, consultants and other financial and legal advisors of the
Business.  Buyer and Seller agree that any investigation pursuant to
this Section 5.02 shall be conducted in such manner as not to interfere
unreasonably with the conduct of business of Seller.

         

        (b)           On
and after the Closing Date, Seller will afford, and will cause its Affiliates to
afford, to Buyer and its agents, reasonable access to its books of account,
financial and other records, information, employees and auditors to the extent
necessary for Buyer in connection with any audit, investigation, dispute,
regulatory inquiry, or litigation, or any other reasonable business purpose
relating to or arising out of the Business; provided that any such access
by Buyer shall not unreasonably interfere with the conduct of the business of
Seller.  Buyer shall bear all of the out-of-pocket costs and expenses
(including, without limitation, attorneys’ fees) reasonably incurred in
connection with the foregoing.

         

        Section
5.03.        No
Negotiation.  Until such time as this Agreement shall be
terminated pursuant to Section 11.01, with respect to the Business, Seller shall
not, and shall cause its Affiliates not to, directly or indirectly, solicit,
initiate, encourage or entertain any inquiries or proposals from, discuss or
negotiate with, provide any nonpublic information to or consider the merits of
any inquiries or proposals from any Person (other than Buyer) relating to any
business combination transaction involving Seller or, the merger or
consolidation of Seller, or the sale of Seller or any of the Purchased Assets or
the Business.  Seller shall notify Buyer of any such inquiry or
proposal within twenty-four (24) hours of receipt or awareness of the same by
Seller or its Affiliates.

         

        Section
5.04.        Confidentiality.  (a)
Seller acknowledges that prior to the Closing Date, Seller and its Affiliates
have had, and will continue to have, access to confidential information of the
Business which is not generally known to the public.  Seller agrees
that, following the Closing, it will not, and will cause its Affiliates not to,
without the prior express written permission of the Buyer, disclose to any other
Person or use in any way any confidential or proprietary information of the
Business which Seller or its Affiliates may have obtained at any time, whether
prior to the Closing Date or otherwise, including, without limitation this
Agreement and the other Transaction Agreements, provided that Seller may
disclose such information; (i) to Governmental Authorities where requested
by them or required by Applicable Law, and (ii) to its officers, directors,
employees, accountants, counsel, consultants, advisers and agents, so long as
such Persons are informed by Seller of the confidential nature of such
information and are directed by Seller to treat such information
confidentially.

         

        (b)           Prior
to the Closing Date and after any termination of this Agreement, Seller and its
Affiliates will hold, and will use its commercially reasonable efforts to cause
their respective officers, directors, employees, accountants, counsel,
consultants, advisers and agents to hold, in 

         

         

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

         

        confidence,
unless compelled to disclose by judicial or administrative process or by other
requirements of Applicable Law, all confidential documents and information
concerning the Buyer furnished to Seller or its Affiliates or their respective
officers, directors, employees, accountants, counsel, consultants, advisers and
agents in connection with the transactions contemplated by this Agreement and
the other Transaction Agreements, including without limitation the terms of this
Agreement and the other Transaction Agreements, except to the extent that such
information is (i) previously known on a non-confidential basis by Seller and
its Affiliates, (ii) in the public domain through no fault of Seller or any of
its Affiliates or their respective officers, directors, employees, accountants,
counsel, consultants, advisers or agents, (iii) later lawfully acquired by
Seller or its Affiliates from sources other than Buyer or its Affiliates; provided that Seller, and its
Affiliates may disclose such information (A) to Governmental Authorities
where requested by them or required by Applicable Law, and (B) to their
respective officers, directors, employees, accountants, counsel, consultants,
advisers and agents, so long as such Persons are informed by Seller or its
Affiliates of the confidential nature of such information and are directed by
Seller or its Affiliates to treat such information confidentially or (iv) is
disclosed in accordance with Section 7.06.  In all cases, Seller, and
its Affiliates shall be responsible for any failure to treat such information
confidentially by such Persons.  The obligation of Seller and its
Affiliates to hold any such information in confidence shall be satisfied if they
exercise the same care with respect to such information as they would take to
preserve the confidentiality of their own similar information.  If
this Agreement is terminated, upon the written request of Buyer, Seller will,
subject to Applicable Law, use its commercially reasonable efforts to cause its
officers, directors, employees, accountants, counsel, consultants, advisors and
agents to, destroy or deliver to Buyer, all documents and other materials, and
all copies thereof, obtained by Seller or its Affiliates or on their behalf from
Buyer or its Affiliates in connection with this Agreement that are subject to
the confidentiality obligations of Seller and its Affiliates under this Section
5.04.  Notwithstanding any provision of this Agreement to the
contrary, no provision of this Agreement shall require the destruction of copies
of any computer records or files containing confidential information which have
been created pursuant to automatic archiving and back-up procedures which cannot
reasonably be deleted.

         

        Section
5.05.        Taxes.  Buyer and
Seller shall each bear 50% of all sales, transfer, documentary, stamp, recording
and similar Taxes incurred in connection with the purchase and sale of the
Purchased Assets.  Seller shall pay or cause to be paid, and shall
indemnify and hold Buyer harmless against, any Tax imposed as a result of
non-compliance by Seller with the provisions of the “bulk sales,” “bulk
transfer,” or similar laws of any State or political subdivision
thereof.

         

        Section
5.06.        Put/Call
Agreement.  Seller agrees that if the Closing shall occur, each
of the Transferred Employees shall be deemed to have timely exercised his or her
Put Option with respect to all of his or her Membership Interests in the Seller
and Seller shall, within 30 days following Closing, purchase from each such
individual all of his or her Membership Interests in Seller for an amount equal
to such individual’s Capital Balance so long as such Capital Balance is a
positive amount.  No payment will be made or owed by Seller to any
individual with a negative Capital Balance.  All capitalized terms
used in this Section 5.06 shall have the meaning set forth in the Put/Call
Agreement unless otherwise defined in this Agreement.

         

         

        
          
            
            

          

          
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        Section
5.07.        Insurance.  Seller
agrees to use commercially reasonable efforts to cause its insurers to accept
and handle any claims made against Buyer with respect to the Purchased Assets
for claims having occurred prior to Closing.

         

        Section
5.08.        Segregated
Account.  Prior to the Closing, Seller will establish an
account (the “Segregated
Account”) with GSEC (or
another financial institution reasonably acceptable to both Buyer and Seller)
and at the Closing or as soon as permitted by the NYSE thereafter, Seller will
deposit into the Segregated Account immediately available funds in an amount at
least equal to that required to repay in full the Notes (the “Notes”) issued pursuant to the
Note Purchase Agreement, dated as of August 3, 2001, as amended as of March 1,
2002, among Seller and each of the institutions party thereto (the “Note Purchase Agreement”).  Seller
agrees to request permission from the NYSE on the Business Day following the
execution of this Agreement to fund the Segregated Account.  Prior to
repayment in full of the Notes, Seller agrees to withdraw funds from the
Segregated Account only for the purpose of making payments to the holders of
Notes in respect of amounts owing thereunder. Seller agrees to repay the Notes
when due pursuant to the terms of the Note Purchase Agreement or as otherwise
agreed between Seller and the holders of the Notes.

         

        ARTICLE
6

        Covenants
of Buyer

         

        Buyer
agrees that:

         

        Section
6.01.        Confidentiality.  The
Confidentiality Agreement shall remain in full force and effect in accordance
with the terms of this Agreement, provided, however, that the restriction
therein on Buyer relating to discussions with the Seller’s employees is hereby
deleted, unless and until this Agreement is terminated in accordance with its
terms.

         

        Section
6.02.        Use of Certain Marks and
Names.  (a) Buyer shall not use the Excluded Name or any
confusingly similar derivative thereof or any symbols, logos or marks relating
thereto.

         

        (b)           Notwithstanding
the foregoing, Buyer and its designees shall take such steps as are necessary to
remove any Excluded Names from all signage at places of business, and cease to
use any Excluded Names upon, in connection with, or in relation to packaging and
existing marketing, promotional and sales materials (including without
limitation catalogs, labels, brochures and manuals) as soon as reasonably
practicable but in any event within three (3) months after the Closing
Date, and shall have the right to continue to use the Excluded Names during such
period.

         

        Section
6.03.        Unsettled
Trades.  After Closing, Buyer shall promptly honor all of
Seller’s obligations in respect of Unsettled Trades (including causing
deliveries of payments to be made on the proper Settlement Dates) as if they
were direct obligations of Buyer.

         

         

        
          
            
            

          

          
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        ARTICLE
7

        Covenants
of Buyer and Seller

         

        Buyer and
Seller agree that:

         

        Section
7.01.        Reasonable Best Efforts; Further
Assurance.  Subject to the terms and conditions of this
Agreement, Buyer and Seller will use their reasonable best efforts to take, or
cause to be taken, all actions and to do, or cause to be done, all things
necessary or desirable as required of each of them under this Agreement and
Applicable Laws to consummate and make effective the transactions contemplated
by this Agreement and the other Transaction Agreements as soon as reasonably
practicable, including preparing and filing as promptly as reasonably
practicable all documentation to effect all necessary applications, notices,
petitions, filings and other documents and to obtain as promptly as reasonably
practicable all consents, including Required Consents and Buyer Consents,
registrations, approvals, permits, authorizations, and appropriate clearing
arrangements, necessary or advisable to be obtained from any third party and/or
any Governmental Authority in order to consummate the transactions contemplated
by this Agreement and the other Transaction Agreements.

         

        Section
7.02.        Certain Filings and
Consents.  (a) Seller, on the one hand, and Buyer, on the other
hand, shall cooperate with one another in determining whether any action by, in
respect of or filing with any Governmental Authority is required to be obtained,
in connection with the consummation of the transactions contemplated by this
Agreement or the other Transaction Agreements.  In addition to the
foregoing, each of Buyer and Seller agree to file or cause to be filed as soon
as practicable following the date of this Agreement all documentation, filings
and other documents necessary in connection with any required application,
report or other filing or request for approval or notifications with any
Governmental Authority from which consent, approval or clearance is required to
be obtained in connection with the transactions contemplated by this
Agreement.  Subject to Applicable Laws and Section 6.01 hereof
relating to the exchange of information, Buyer and Seller shall have the right
to review in advance, and to the extent practicable, each will consult the other
on, all the information relating to the Seller’s business or the Buyer’s
business, as the case may be, with respect to the contents of any filing made
with, or written materials submitted to, any third party and/or any Governmental
Authority in connection with the transactions contemplated by this
Agreement.  In exercising the foregoing right, each of Buyer and
Seller shall act reasonably and as promptly as reasonably
practicable.  Without limiting the foregoing, Seller and Buyer shall
promptly request the NYSE to (1) cause the entire Specialist Allocation as
set forth on Schedule
9.02(e), other than with respect to those Specialist Securities which are
removed from the Specialist Allocation as a result of a merger, business
combination or delisting of the applicable listed company, to be reallocated and
registered to Specialists to be associated with Buyer and (2) cause Seller
and Specialists associated with Seller to be relieved of all Liabilities in
respect thereof, at the Closing.

         

        (b)           Buyer
and Seller each shall, upon request by the other, furnish the other with all
information concerning itself and its Affiliates, and their respective
directors, officers and stockholders and such other matters as may be reasonably
necessary or advisable in connection with any statement, filing, notice or
application made by or on behalf of either (i) Seller and its Affiliates or (ii)
Buyer and its Affiliates, to any Governmental Authority in connection with the

         

         

        
          
            
            

          

          
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        transactions
contemplated by this Agreement, or to any third party in order to obtain a
Required Consent.

         

        (c)           Buyer
and Seller each shall keep the other apprised of the status of matters relating
to completion of the transactions contemplated hereby, including promptly
furnishing the other with copies of notices or other communications received by
it or its Affiliates from any third party and/or any Governmental Authority with
respect to the transactions contemplated by this Agreement.

         

        Section
7.03.        Transition
Services.  (a) Seller agrees that from and after the Closing
until the date that is three months following the Closing Date, it shall, and
shall cause its Affiliates to, provide the Buyer, on a royalty free basis, with
the services specified on Exhibit B annexed
hereto with respect to the Business as currently conducted (the “Transition Services”), including without
limitation by (i) granting to Buyer access to all of its proprietary and
otherwise held or used assets and technology required for the implementation of
such Transition Services, (ii) causing their respective employees to assist in
the provision thereof and to cooperate with Buyer in its use of the such
Transition Services and (iii) granting to Buyer the right to use and occupy for
such three month period certain data center space and accommodations on the
29th
floor at 45 Broadway, New York, NY 10006, to enable technical and operations
staff who will become Transferred Employees to conduct the Business
substantially as conducted prior to the Closing Date.  Buyer may
terminate any or all of the Transition Services from time to time by providing
Seller with prior written notice no less than two Business Days prior to such
termination.  The Seller shall provide the Transition Services in
substantially the same manner in which such services were used by the Business
immediately prior to the date hereof.

         

        (b)           THE
TRANSITION SERVICES ARE PROVIDED “AS IS” WITH NO WARRANTIES, AND SELLER
EXPRESSLY EXCLUDES AND DISCLAIMS ANY WARRANTIES UNDER OR ARISING AS A RESULT OF
THE PROVISION OF THE TRANSITION SERVICES, WHETHER EXPRESS, IMPLIED OR STATUTORY,
INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT, PROVIDED THAT (I) SELLER
REPRESENTS AND WARRANTS TO BUYER THAT THE PROVISION BY SELLER TO BUYER OF THE
TRANSITION SERVICES WILL NOT CONSTITUTE OR CAUSE A BREACH OF, OR DEFAULT UNDER,
ANY AGREEMENT TO WHICH SELLER IS A PARTY, AND (II) THE EXCLUSION OF WARRANTIES
CONTAINED IN THIS SECTION 7.03(b) IS NOT INTENDED TO LIMIT ANY LIABILITY OF
SELLER IN CONNECTION WITH GROSS NEGLIGENCE OR RECKLESSNESS ON ITS PART IN THE
PROVISION OF THE TRANSITION SERVICES TO BUYER.  Notwithstanding
anything herein to the contrary,  Buyer and Seller shall negotiate in
good faith a reduction in scope of the Transition Services to the extent that
Business Employees who would otherwise have provided such services to Buyer
pursuant to this Section have become employees of the Buyer following the
Closing.

         

        (c)           Notwithstanding
anything to the contrary herein, Seller shall not be required to provide any
Transition Service or other service referred to in Section 7.03(a) to the extent
(i) the provision of such Transition Service or any such other service requires
a license or consent from 

         

         

        
          
            
            

          

          
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        a third
party, (ii) Seller has been notified by the applicable third party that such
license or consent is required, and (iii) the continued provision of such
service without a license or consent from the applicable third party would
result in the loss of a material right or benefit of Seller or any of its
Affiliates.  Neither Seller nor any of its Affiliates shall be liable
to Buyer for any damages arising from any claim relating to the provision of the
Transition Services or any such other service, except to the extent that such
direct damages are caused by the gross negligence or willful misconduct of
Seller or its Affiliates.

         

        Section
7.04.        Seller Transitional
License.  Concurrently with Closing, Seller shall, and shall
cause those of its Affiliates, if any, who own Intellectual Property Rights
necessary to fully exploit such license to enter into such software license
agreement with Buyer in the form annexed hereto at Exhibit C (the “Seller
License”).  

         

        Section
7.05.        Seller Patent
License.  Seller shall use its commercially reasonable efforts
to cause William White to enter into a patent license agreement with respect
thereto in substantially the form annexed hereto as Exhibit D annexed
hereto (the “Patent
License”).

         

        Section
7.06.        Public
Announcements.  Each of Seller and Buyer agrees that it will
not, without the prior approval (which approval shall not be unreasonably
withheld) of the other party, issue or make, or permit any of its Affiliates or
agents to issue or make, any press release or other public statement relating to
the transactions contemplated by this Agreement or the other Transaction
Agreements, except as otherwise required by Applicable Law, in which case Seller
or Buyer, as the case may be, shall use reasonable efforts under the
circumstances to give the other party a reasonable opportunity to review and
comment on the statement prior to its release to the extent such review and
comment is permitted by Applicable Law.

         

        Section
7.07.        Notices of Certain
Events.  Buyer and Seller shall promptly notify the other
of:

         

        (a)           any
notice or other communication from any Person alleging that the consent of such
Person is or may be required in connection with the transactions contemplated by
this Agreement or other Transaction Agreements;

         

        (b)           any
material notice or other communication from any Governmental Authority in
connection with the transactions contemplated by this Agreement or the other
Transaction Agreements;

         

        (c)           any
Actions commenced, relating to the Business;

         

        (d)           any
notice or other communication from any Person that any Specialist Security will
be removed from the Seller’s Specialist Allocation; and

         

        (e)           any
event or circumstance causing a breach of any representations and warranties
under this Agreement by the notifying party.

         

         

        
          
            
            

          

          
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        No
disclosure pursuant to this Section 7.07, however, shall be deemed to amend or
supplement the Schedules or to prevent or cure any misrepresentation, breach of
warranty, or breach of covenant by the party so notifying the other pursuant to
this Section 7.07.

         

        Section
7.08.        Quotation Bills; NYSE
Fees.  Seller shall pay all quotation bills and NYSE fees
associated with services received and expenses incurred up to the Closing Date
and related to the Business.  From and after the Closing Date, Buyer
shall pay all quotation bills and NYSE fees and expenses related to the
Business.  In the event that Seller shall have paid any such quotation
bills or NYSE fees and expenses for periods after the Closing Date, at Closing
Buyer shall reimburse Seller for such payments.  Buyer will remit to
Seller any amounts rebated, credited or otherwise refunded in respect of
quotation bills to Buyer by the NYSE (“Refunds”) relating to activity
of Seller prior to the Closing Date; provided, however, that if
such Refunds related to activity occurring both prior to and from and after the
Closing Date, Buyer and Seller will allocate such Refunds between the parties in
a reasonable manner.

         

        ARTICLE
8

         

        Employee
Benefits

         

        Section
8.01.        Employees and Offers of
Employment.  (a) It is acknowledged that as soon as reasonably
practicable following the date hereof, Buyer shall offer, or cause one of its
Affiliates to offer, employment (which will be effective immediately following
Closing) to at least thirty-five (35) Business Employees, a list of which
Business Employees Buyer shall provide to Seller as soon as reasonably
practicable following the execution of this agreement, which list, when so
provided, shall be deemed to be Schedule 8.01(a)(i)
to this Agreement.  Each such offer of employment shall be conditioned
upon (i) the completion of Buyer’s customary employment requirements, including
background checks and security clearance procedures, (ii) the satisfaction
of any Governmental Authority requirement in a manner that is reasonably
acceptable to Buyer, and (iii) the Closing.  Any Business Employee who
is not made an offer of employment, or who is determined by Buyer prior to the
Closing to have failed any pre-employment requirements, or with respect to whom
Buyer has determined it cannot reasonably satisfy any such Governmental
Authority requirement, shall not become employed by Buyer or any of its
Affiliates, and Seller shall be and remain solely responsible for the continued
employment of such persons to the complete exoneration of
Buyer.  Promptly after the date hereof, Seller shall provide, and
shall cause its Affiliates to provide, reasonable access to the Business
Employees identified on Schedule 8.01(a)(i),
and shall assist Buyer in enabling it to obtain pre-employment materials from
each such Business Employee prior to Closing, and, to the extent permitted by
Applicable Law, such information regarding such employees as is contained in any
personnel records.  Each Business Employee identified on Schedule 8.01(a)(i)
who becomes employed by Buyer or an Affiliate of Buyer, shall be referred to
herein as a “Transferred
Employee.”  Notwithstanding anything contained to the contrary
in Buyer’s severance plan, in the event Buyer or any of its Affiliates
terminates the employment of any Transferred Employee without “Cause” (for
purposes of this Section 8.01, “Cause” shall means “cause” as applied generally
under arrangements applicable to Buyer’s employees who are similarly situated to
the Transferred Employee) at any time during the one year period immediately
following the Closing, Buyer shall provide such Transferred Employee with
severance payments and COBRA premium waiver for benefits that such Transferred
Employee 

         

         

        
          
            
            

          

          
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        is
eligible to receive for the period of time in accordance with the schedule set
forth on Schedule 8.01(a)(ii)
based on pay as of the date hereof; provided that such Transferred Employee
shall receive credit for the term of his or her employment with Seller or any of
its Affiliates for purposes of determining the severance payments and COBRA
premium waiver to which he or she is entitled; and provided further that such
severance payments would be offset against any severance payment that such
Transferred Employee receives under Buyer’s severance plan; and provided further
that such Transferred Employee shall be required to sign Buyer’s standard form
separation agreement provided to Buyer’s severance eligible
employees.  Nothing in this Section 8.01, express or implied,
shall be construed to prevent Buyer or any of its Affiliates from terminating
the employment of any Transferred Employee or modifying to any extent or in any
respect the terms and conditions of such employment (including any benefit plan
that Buyer or any of its Affiliates may establish or maintain).

         

        (b)           Seller
shall provide updates to the list of Business Employees on Schedule 3.14(f)
prior to the Closing to reflect new hires and terminations and to reflect any
agreed-upon additions or deletion thereto.

         

        (c)           Buyer
shall bear and be responsible for all obligations and Liabilities under the
Worker Adjustment Retraining Notification Act (the “WARN Act”) or any similar
state or local Applicable Law with respect to any Transferred Employees whose
employment is terminated following the Closing.  No later than five
business days prior to the Closing Date, Seller shall provide Buyer with a
schedule setting forth each Business Employee whose employment was terminated or
is anticipated to be terminated during the six month period prior to the Closing
Date.  Seller shall bear and be responsible for all obligations and
liabilities under the WARN Act or any similar state or local law with respect to
the Business Employees who do not become Transferred Employees.

         

        (d)           Notwithstanding
the foregoing or any other provision hereof, it is expressly agreed that Buyer
assumes no responsibility or Liabilities (all of which shall be and/or remain
solely the responsibility of Seller) of whatsoever kind in relation to (i) any
Business Employees who do not become Transferred Employees, or (ii) except as
expressly provided in Section 8.01(a), the prior term of employment by the
Seller of any Transferred Employees, including, in either case, without
limitation, any severance Liabilities that may be deemed to exist in respect of
any Transferred Employee as result of the termination of such Transferred
Employee’s employment with Seller prior to being employed by Buyer or its
Affiliates, or in respect of any Business Employee who does not become a
Transferred Employee and whose employment is terminated by Seller for any reason
whatsoever, whether prior to or following Closing.

         

        (e)           It
is further expressly agreed that, except as expressly provided in Section
8.01(a), Buyer assumes no responsibility or Liabilities (all of which shall be
and/or remain solely the responsibility of Seller) of whatsoever kind in
relation to any employment, consulting or severance agreements or contracts or
other Employee Plans between Seller and any Business Employees (regardless of
whether such employees become Transferred Employees), including, without
limitation, any employment, consulting or severance agreements or other Employee
Plans.  Seller shall retain all obligations (including, but not
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        and
Liabilities and commitments under such agreements and Employee Plans, and
neither Buyer nor any of its Affiliates shall have any Liability with respect
thereto.

         

        Section
8.02.        Seller’s Employee Benefit
Plans.  (a) As of the Closing, Seller shall retain all
obligations (including, but not limited to, administrative responsibilities) and
Liabilities and commitments under the Employee Plans, and neither Buyer nor any
of its Affiliates shall have any Liability with respect thereto.  No
assets or liabilities of any Employee Plan shall be transferred to, or assumed
by, Buyer or any of its Affiliates or to any plan of Buyer or any of its
Affiliates.

         

        (b)           Seller
shall cause all Transferred Employees to be fully vested in all benefits accrued
through the Closing Date under each Employee Plan that is intended to qualify
under Section 401(a) of the Code.

         

        (c)           Seller
shall be responsible for satisfying obligations under Section 601 et seq. of ERISA and Section
4980B of the Code, to provide continuation coverage to or with respect to any
Business Employee in accordance with law and with respect to any “qualifying
event” occurring on or prior to the Closing Date.

         

        (d)           Seller
shall make payment to each Transferred Employee, as soon as practicable
following the Closing Date, of a lump sum cash amount in respect of (i) earned
but unpaid salary or wages and (ii) accrued but unused vacation days under any
Employee Plan and Seller shall bear and be responsible for any tax reporting
obligations in respect of such payments.

         

        Section
8.03.        Buyer Benefit
Plans.  (a) With respect to each Transferred Employee, Buyer
shall waive pre-existing condition requirements, actively-at-work requirements,
evidence of insurability provisions, waiting period requirements or any similar
provisions under any employee benefit plan or compensation arrangements
maintained or sponsored by or contributed to by Buyer for such Transferred
Employee to the extent such exclusion, restriction, limitation or requirement
has been waived, satisfied or does not apply under the terms of any similar
Employee Plan prior to Closing.

         

        (b)           Buyer
shall recognize for purposes of vesting and eligibility, but not benefit
accrual, the service of any Transferred Employee with Seller or any of its
Affiliates or predecessors prior to the Closing Date under any employee benefit
plan in which such Transferred Employee participates after the Closing
Date.

         

        (c)           Buyer
shall be responsible for satisfying obligations under Section 601 et seq. of ERISA and Section
4980B of the Code, to provide continuation coverage to or with respect to any
Transferred Employee in accordance with law with respect to any “qualifying
event” which occurs after the Closing.

         

        (d)           Buyer
shall cause the tax-qualified defined contribution plan established or
maintained by Buyer to accept eligible rollover distributions (as defined in
Section 402(c)(4) of the Code) from Transferred Employees with respect to any
account balances distributed to them on or as of the Closing Date from
applicable Employee Plans.  Notwithstanding the foregoing,

         

         

        
          
            
            

          

          
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        rollovers
of outstanding loans under such plans shall not be permitted.  The
distributions and rollovers described herein shall comply with Applicable Law
and each party shall make all filings and take any actions required of such
party under Applicable Law in connection therewith.

         

        Section
8.04.        No Third Party
Beneficiaries.  No provision of this Article 8 shall create any
third party beneficiary or other rights in any employee or former employee
(including any beneficiary or dependent thereof) of Seller or of any of its
Affiliates in respect of continued employment (or resumed employment) with
either Buyer or any of its Affiliates and no provision of this Article 8 shall
create any such rights in any such Persons in respect of any benefits that may
be provided, directly or indirectly, under any Employee Plan or any plan or
arrangement which may be established by Buyer or any of its
Affiliates.

         

        ARTICLE
9

        Conditions
to Closing

         

        Section
9.01.        Conditions to Obligations of Buyer,
Seller and Parent.  The respective obligations of Buyer and
Seller to consummate the Closing are subject to the fulfillment or written
waiver by the other party prior to the Closing of each of the following
conditions:

         

        (a)           All
Required Consents and Buyer Consents shall have been obtained or made and shall
be in full force and effect and all waiting periods required by any Applicable
Law or pursuant to any rule or regulation of any Governmental Authority shall
have expired.

         

        (b)           No
provision of any Applicable Law or regulation and no judgment, injunction, order
or decree of any Governmental Authority shall prohibit the consummation of the
transactions contemplated by this Agreement or the other Transaction
Agreements.

         

        Section
9.02.        Conditions to Obligation of
Buyer.  The obligation of Buyer to consummate the transactions
herein contemplated is subject, on or prior to the Closing, to the satisfaction
of the following further conditions:

         

        (a)           (i)
Seller and Parent shall have complied with and performed in all material
respects, all of the agreements, covenants and obligations hereunder required to
be performed by Seller or Parent, on or prior to the Closing Date, (ii) each of
the representations and warranties of Seller and Parent (which for purposes of
this paragraph shall be read as though none of them contained any materiality,
Business Material Adverse Effect, Parent Material Adverse Effect or similar
qualifications) contained in this Agreement or in any certificate or other
writing delivered by Seller pursuant hereto shall be true and correct except for
breaches of representations and warranties which would not be reasonably
expected, individually or in the aggregate, to have a Business Material Adverse
Effect or a Parent Material Adverse Effect, at and as of the Closing Date, as if
made at and as of such date; provided that representations
and warranties that by their terms speak only as of some other specific date
need be true for purposes of this clause (ii) only as of such date, and (iii)
Buyer shall have received certificates signed by a senior executive officer of
each of Seller and Parent confirming the foregoing effect.

         

         

        
          
            
            

          

          
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        (b)           Each
of Seller and Parent shall have duly executed and delivered to Buyer each of the
Transaction Agreements to which any of them is to be a party.

         

        (c)           William
White shall have duly executed and delivered to Buyer the Patent
License.

         

        (d)           Consent
to assignment of the Activ Contract shall have been effected or, alternatively,
Buyer shall have entered into a new Contract with Activ Financial Systems, Inc.,
on terms and conditions reasonably satisfactory to Buyer.

         

        (e)           The
transfer to Specialists associated with Buyer of the Seller’s entire Specialist
Allocation as set forth on Schedule 9.02(e),
other than with respect to those Specialist Securities which are removed from
the Specialist Allocation as a result of a merger, business combination or
delisting of the applicable listed company, and the release of all obligations
of Seller or Specialists associated with Seller thereunder shall have been
approved by the NYSE.

         

        (f)           Buyer
shall have received true and complete copies, certified by a duly authorized
corporate officer of each of Seller and Parent, of the resolutions duly and
validly adopted by the board of directors and, if applicable, the shareholders
of each of Seller and Parent evidencing their respective authorizations of the
execution and delivery of this Agreement, and, as applicable, the Transaction
Agreements and the consummation of the transactions contemplated hereby and
thereby.

         

        (g)           Buyer
shall have received a certificate of the Secretary or Assistant Secretary of
Seller and Parent certifying the names and signatures of the officers of Seller
and Parent authorized to sign this Agreement and the Transaction Agreements and
the other documents to be delivered hereunder and thereunder.

         

        (h)           No
less than fifteen (15) of the Business Employees to whom Buyer shall have made
an offer of employment as contemplated pursuant to Section 8.01 hereof, shall
have agreed to continue to operate the Business as employees of the Buyer, shall
be specialists and specialist clerks and shall have satisfied Buyer’s
pre-employment requirements.

         

        (i)           The
(a) total value of the Seller’s long positions in Specialist Securities
(including any Unsettled Trades) in the GSEC Account shall be no greater than *;
and (b) total absolute value of the Seller’s short positions in Specialist
Securities (including any Unsettled Trades) in the GSEC Account shall be no
greater than *.

         

        (j)           Seller
and GSEC shall have duly executed and delivered to Buyer the GSEC Transfer and
Assumption Agreement.

         

        Section
9.03.        Conditions to Obligation of
Seller.  The obligation of Seller to consummate the Closing is
subject to satisfaction of the following further conditions:

         

        (a)           (i)
Buyer shall have complied with and performed in all material respects all of its
agreements, covenants and obligations hereunder required to be performed by it
on or prior to the 

         

         

          
            

          

        

        
          *
Indicates omission of material which has been separately filed pursuant to a
request for confidential treatment

           

           

        

        
          
            
            

          

          
            32

            
              

            

          

          
            
            

          

        

         

        Closing
Date, (ii) each of the representations and warranties of Buyer contained in this
Agreement or in any certificate or other writing delivered by Buyer pursuant
hereto shall be true and correct in all material respects, at and as of the
Closing Date as if made at and as of such date; provided that representations
and warranties that by their terms speak only as of some other specific date
need be true for purposes of this clause (ii) only as of such date, and (iii)
Seller shall have received certificates signed by a senior executive officer of
each of Buyer confirming the foregoing.

         

        (b)           Buyer
shall have duly executed and delivered to Seller each of the Transaction
Agreements.

         

        (c)           The
release of all obligations of Seller or Specialists associated with Seller under
the Specialist Allocation as set forth on Schedule 9.02(e),
other than with respect to those Specialist Securities which are removed from
the Specialist Allocation as a result of a merger, business combination or
delisting of the applicable listed company, shall have been approved by the NYSE
..

         

        (d)           Seller
shall have received true and complete copies, certified by a duly authorized
corporate officer of Buyer, of the resolutions duly and validly adopted by the
board of directors of Buyer evidencing its authorization of the execution and
delivery of this Agreement and the Transaction Agreements and the consummation
of the transactions contemplated hereby and thereby.

         

        (e)           Seller
shall have received a certificate of the Secretary or Assistant Secretary of
Buyer certifying the names and signatures of the officers of Buyer authorized to
sign this Agreement and the Transaction Agreements and the other documents to be
delivered hereunder and thereunder.

         

        (f)           Buyer
and GSEC shall have duly executed and delivered to Seller the GSEC Transfer and
Assumption Agreement.

         

        ARTICLE
10

        Survival;
Indemnification

         

        Section
10.01.      Survival.  The
covenants and agreements of the parties contained in this Agreement shall
survive the Closing for the term specified therein or, if no term is specified,
for the applicable statute of limitations, except that, except as provided
below, the representations and warranties of the parties contained in Articles 3
and 4 of this Agreement shall survive the Closing until the one year anniversary
of the Closing Date; provided that (i) the representations and warranties
contained in Sections 3.01 and 12.14(b)(i) (Seller and Parent Corporate
Existence and Power), 3.02 and 12.14(b)(ii) (Seller and Parent Corporate
Authorization), 3.03 and 12.14(b)(iii) (Seller and Parent Governmental
Authorization), 3.04 and 12.14(b)(iv) (Seller and Parent Noncontravention), 3.07
and 12.14(b)(vi) (Seller’s and Parent’s Solvency), 4.01 (Buyer Corporate
Existence and Power), 4.02 (Buyer Corporate Authorization), 4.03 (Buyer
Governmental Authorization), and 4.04 (Buyer Noncontravention) shall survive
indefinitely, and the representations and warranties contained in Section 3.15
(Taxes) shall survive until 

         

         

        
          
            
            

          

          
            33

            
              

            

          

          
            
            

          

        

         

        expiration
of the statute of limitations applicable to the matters covered thereby (giving
effect to any waiver, mitigation or extension thereof), if
later.  Notwithstanding the preceding sentence, any covenant,
agreement, representation or warranty in respect of which indemnity may be
sought under this Agreement shall survive the time at which it would otherwise
terminate pursuant to the preceding sentence, if notice of the breach or
inaccuracy with respect thereto giving rise to such right of indemnity shall
have been given to the party against which such indemnity may be sought prior to
such time.

         

        Section
10.02.      Indemnification.  (a)
Seller irrevocably agrees to, and shall, indemnify Buyer and its Affiliates and
each of their respective officers, directors, employees, stockholders, agents
and representatives against, and agrees to hold each of them harmless from any
and all damage, loss, Tax, Liability, claim and expense (including, without
limitation, reasonable expenses of investigation and reasonable attorneys’ fees
and expenses in connection with any Action whether involving a Third Party Claim
(as defined below in Section 10.03) or a claim solely between the parties
hereto) (collectively, “Damages”) incurred or suffered
by Buyer or any of its Affiliates arising out of:

         

        (i)         any
breach of any representation or warranty contained in this Agreement or in any
Transaction Agreement, or in any certificate delivered pursuant hereto or
thereto (each such breach a “Warranty Breach”) of Seller or
Parent;

         

        (ii)        any
breach of covenant or agreement made by Seller or Parent or to be performed by
Seller or the Parent pursuant to this Agreement or any Transaction Agreement;
and

         

        (iii)       all
Excluded Liabilities

         

        provided that with respect to
indemnification by Seller for Warranty Breaches pursuant to Section 10.02(a)(i),
(A) Seller shall not be liable unless the aggregate amount of Damages with
respect to such Warranty Breaches (determined without regard to any
qualification or exception relating to materiality or to Business Material
Adverse Effect or any similar qualification or standard contained in any
representation or warranty giving rise to the claim for indemnity hereunder)
exceeds 1% of the Purchase Price and then only to the extent of such excess and
(B) other than with respect to any breach of the representation in Sections
3.07, 3.12, 3.16, and 12.14(b)(vi) which breaches shall not be subject the
following cap, Seller’s maximum liability for all other Warranty Breaches shall
not exceed *.

         

        (b)           Buyer
hereby indemnifies Seller and its Affiliates and each of their respective
officers, directors, employees, stockholders, agents and representatives
against, and agrees to hold each of them harmless from, any and all Damages
incurred or suffered by Seller or any of its Affiliates arising out
of:

         

        (i)         any
Warranty Breach of Buyer;

         

         

          
            

          

        

        
          *
Indicates omission of material which has been separately filed pursuant to a
request for confidential treatment

           

        

         

        
          
            
            

          

          
            34

            
              

            

          

          
            
            

          

        

         

        (ii)        any
breach of covenant or agreement made by Buyer or to be performed by Buyer
pursuant to this Agreement;

         

        (iii)       any
Assumed Liability; and

         

        (iv)       except
as to matters for which Buyer is entitled to indemnification pursuant to this
Agreement, the conduct of the Business by Buyer following the
Closing

         

        provided that with respect to
indemnification by Buyer for Warranty Breaches pursuant to Section 10.02(b)(i),
(A) Buyer shall not be liable unless the aggregate amount of Damages with
respect to such Warranty Breaches (determined without regard to any
qualification or exception relating to materiality or to Buyer Material Adverse
Effect or any similar qualification or standard contained in any representation
or warranty giving rise to the claim for indemnity hereunder) exceeds 1% of the
Purchase Price and then only to the extent of such excess, and (B) Buyer’s
maximum liability for all Warranty Breaches shall not exceed *.

         

        Section
10.03.      Procedures.  (a)
The party seeking indemnification under Section 10.02 (the “Indemnified Party”) agrees to
give prompt notice to the party against whom indemnity is sought (the “Indemnifying Party”) of the
assertion of any claim, or the commencement of any Action (“Claim”) in respect of which
indemnity may be sought and will provide the Indemnifying Party such information
with respect thereto that the Indemnifying Party may reasonably
request.  The failure to so notify the Indemnifying Party shall not
relieve the Indemnifying Party of its obligations hereunder, except to the
extent such failure shall have adversely prejudiced the Indemnifying
Party.

         

        (b)           The
Indemnifying Party shall be entitled to participate in the defense of any Claim
asserted by any third party (“Third Party Claim”) and,
subject to the limitations set forth in this Section 10.03, shall be entitled to
control and appoint lead counsel for such defense which counsel shall be
reasonably satisfactory to the Indemnified Party, in each case at its expense;
provided, however, if a
Third Party Claim (other than any claim set forth on Schedule 3.09)
relates to both a pre-Closing and post-Closing period, Buyer shall be entitled
to control the defense of such claim, it being understood and agreed that (i)
Buyer shall not settle or compromise such claim without Seller’s consent (not to
be unreasonably withheld or delayed); (ii) Buyer shall, to the extent consistent
with its past practice, use its commercially reasonable efforts to use outside
counsel in defense of such Third Party Claim only in matters where the
complexity or potential liability warrants such use, and otherwise use its
in-house counsel (at no cost to Seller) in defense of such Third Party Claim and
(iii) Seller shall be liable for the reasonable fees and expenses of any outside
counsel employed by Buyer in accordance with the preceding clause
(ii).

         

        (c)           In
the event that the Indemnifying Party fails to respond to the defense of the
Third Party Claim within 30 days after receipt of notice pursuant to Section
10.03(a), the Indemnified Party shall have the right to assume the defense of
the Claim (at the expense of the Indemnifying Party) until such time as the
Indemnifying Party assumes the defense thereof.  The Indemnifying
Party will be liable for the reasonable fees and expenses of counsel employed by

         

         

          
            

          

        

        
          *
Indicates omission of material which has been separately filed pursuant to a
request for confidential treatment

           

        

         

        
          
            
            

          

          
            35

            
              

            

          

          
            
            

          

        

         

        the
Indemnified Party for any period during which the Indemnifying Party has failed
to assume the defense thereof.  Should the Indemnifying Party so elect
to assume the defense of a Claim, the Indemnifying Party will not be liable to
the Indemnified Party for any legal or other expenses subsequently incurred by
the Indemnified Party in connection with the defense thereof.  If the
Indemnifying Party is conducting the defense of the Claim, the Indemnified
Party, at its sole cost and expense, may retain separate counsel, and
participate in the defense of the Third Party Claim, it being understood that
the Indemnifying Party will control such defense.

         

        (d)           If
the Indemnifying Party shall assume control of the defense of any Third Party
Claim in accordance with the provisions of this Section 10.03, the Indemnifying
Party shall obtain the prior written consent of the Indemnified Party (which
shall not be unreasonably withheld) before entering into any settlement of such
Third Party Claim, if the settlement does not release the Indemnified Party from
all Liabilities with respect to such Third Party Claim or the settlement imposes
injunctive or other equitable relief against the Indemnified
Party.  The fees and expenses of such separate counsel shall be paid
by the Indemnified Party.

         

        (e)           Each
party shall cooperate, and cause its respective Affiliates to cooperate, in the
defense or prosecution of any Third Party Claim and shall furnish, or cause to
be furnished, such records, information and testimony and attend such
conferences, discovery proceedings, hearings, trials or appeals, as may be
reasonably requested in connection therewith.

         

        (f)           Each
Indemnified Party shall mitigate in accordance with Applicable Laws any loss for
which such Indemnified Party seeks indemnification under this
Agreement.  Any Indemnified Party having a claim under these
indemnification provisions shall make a good faith effort to recover all losses,
costs, damages and expenses from insurers of such Indemnified Party under
applicable insurance policies, or from any other Person alleged to be
responsible, so as to reduce the amount of any damages hereunder.  In
calculating the amount indemnifiable by an Indemnifying Party under this Article
10, the amount of Losses shall be reduced by any amount recovered by the
Indemnified Party under applicable insurance policies, net of any costs to
recover such amounts and the present value of any increase in premiums resulting
therefrom.

         

        (g)           The
Indemnifying Party shall not be liable under Section 10.02 for any incidental,
consequential, special, exemplary or punitive Damages or Damages for lost
profits (except to the extent that the Indemnified Party has incurred or
suffered and actually pays consequential, special, exemplary or punitive Damages
to a third party in respect of a Third Party Claim).

         

        (h)           Subject
to the last two sentences of this Section 10.03(h) Buyer shall cooperate, and
cause its Affiliates to cooperate, with Seller and its counsel in the
investigation, trial, defense and prosecution of any Action that is an
Excluded Liability (including the filing of any cross-claim, counterclaim or
other proceeding deemed reasonably appropriate by Seller) and any appeal arising
therefrom, in each case, related to the Business.  Such cooperation
shall include the Buyer giving prompt written notice to Seller of any notice,
request, pleading or similar matter they shall receive relating to any
such Action, and making available, upon reasonable advance notice and
during normal office hours, to Seller and its counsel such of its books,
records, documents and other data, and such of its officers, directors,
employees, accountants, counsel, consultants, advisors and agents and other
representatives as shall be reasonably necessary.  

         

         

        
          
            
            

          

          
            36

            
              

            

          

          
            
            

          

        

         

        Buyer
hereby agrees, and agrees to cause its Affiliates, to retain all such books,
records, documents and other data in accordance with their respective document
retention policies as in effect from time to time.  Buyer shall not be
required to take any actions described in this Section 10.03(h) if such
actions unreasonably interfere with the activities or business of Buyer or its
Affiliates.  Seller shall be responsible for and shall promptly pay to
Buyer or its Affiliates any out-of-pocket expenses (including attorneys’ fees)
incurred by Buyer or its Affiliates in connection with providing such
cooperation.

         

        (i)           The
parties acknowledge and recognize that (i) they possess or may possess in
the future documents or other information regarding the other group relating to
the Excluded Liabilities that is or may be subject to the attorney-client
privilege, the work product doctrine or common interest privilege (collectively,
“Privileges”; and such
documents and other information collectively, the “Privileged Information”) and
(ii) in furtherance of seeking, obtaining or providing legal advice
regarding the matters contemplated by this Section, they may exchange in
confidence between themselves or their counsel the Privileged
Information.  Each party hereto agrees to use commercially reasonable
efforts to protect and maintain, and to cause their respective Affiliates to
protect and maintain, any applicable claim to Privilege in order to protect any
Privileged Information from disclosure to or use by third
parties.  Upon the request of Seller, Buyer agrees to negotiate in
good faith a joint defense and common interest agreement with Seller containing
customary terms for an agreement of such type.

         

        Section
10.04.      Assignment of
Claims.  If the Indemnified Party receives any payment from an
Indemnifying Party in respect of any Damages pursuant to Section 10.02 and the
Indemnified Party could recover (or could have recovered) all or part of such
Damages from a third party (a “Potential Contributor”) based
on the underlying Claim asserted against the Indemnifying Party, the Indemnified
Party shall assign such of its rights to proceed against the Potential
Contributor as are necessary to permit the Indemnifying Party to recover from
the Potential Contributor the amount of such payment; provided that the Indemnified
Party shall not be required to assign any right to proceed against a Potential
Contributor if (a) the Indemnified Party determines in its reasonable discretion
that such assignment would be materially detrimental to its reputation or future
business prospects or any further recovery in respect of the relevant Claim or
(b) either party’s insurers do not consent to such assignment.

         

        Section
10.05.      Exclusivity.  After
the Closing, except as provided in Section 12.13 or in the case of fraud,
Section 10.02 and 12.14 will provide the exclusive remedy for any breach of this
Agreement or the sale of the Purchased Assets and assumption of the Assumed
Liabilities pursuant hereto by any party hereto.

         

        Section
10.06.      Purchase Price
Adjustment.  Any amounts paid by Seller or Buyer as
indemnification under this Article 10 or any other provision of this Agreement
will be treated as an adjustment to the Purchase Price for all relevant Tax
purposes except to the extent Applicable Law otherwise requires a different
treatment for a relevant Tax purpose.

         

         

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

        

         

        ARTICLE
11

        Termination

         

        Section
11.01.      Grounds for
Termination.  This Agreement may be terminated at any time
prior to the Closing:

         

        (a)           by
mutual written agreement of Seller and Buyer;

         

        (b)           by
either Seller or Buyer if the Closing shall not have been consummated on or
before December 17, 2007, except if such non-consummation arises out of or
results from any breach of this Agreement by the party seeking to terminate
under this Section 11.01(b);

         

        (c)           by
either Seller or Buyer, if consummation of the transactions contemplated hereby
or by the other Transaction Agreements would violate any nonappealable final
order, decree or judgment of any Governmental Authority, or any Governmental
Authority shall have adopted any Applicable Law permanently restraining,
enjoining or otherwise prohibiting the transactions contemplated by this
Agreement or the other Transaction Agreements; or

         

        The party
intending to terminate this Agreement pursuant to Sections 11.01(b) or 11.01(c)
shall give notice of such intention to the other party.

         

        Section
11.02.      Effect of
Termination.  If this Agreement is terminated as permitted by
Section 11.01, such termination shall be without Liability of either party (or
any stockholder, director, officer, employee, agent, consultant or
representative of such party) to the other party to this Agreement; provided that if such
termination results from the willful (a) failure of either party to fulfill
a condition to the performance of the obligations of the other party,
(b) failure to perform a covenant of this Agreement or (c) breach of
representation or warranty by either party hereto, such party shall be fully
liable for any and all Damages incurred or suffered by the other party as a
result of such failure or breach.  The provisions intended to survive
the termination hereof shall so survive any termination of this Agreement
pursuant to Section 11.01.

         

         

        
          
            
            

          

          
            38

            
              

            

          

          
            
            

          

        

         

        ARTICLE
12

        Miscellaneous

         

        Section
12.01.      Notices.  All
notices, requests and other communications to any party hereunder shall be in
writing (including facsimile transmission, except that such notices, requests
and other communications shall not be delivered to Seller or to Buyer’s General
Counsel via facsimile transmission) and shall be given,

         

        if to
Buyer, to:

         

        Lehman
Brothers Inc.

        Equity
Division

        745 7th
Avenue

        New York,
New York 10019

        Attention:  Gerald
Donini

        Facsimile
No.:  646-758-2911

         

        with a
copy to:

         

        Lehman
Brothers Inc.

        745 7th
Avenue

        New York,
NY  10019

        Attention:  General
Counsel

         

                   and
to:

         

        Fried,
Frank, Harris, Shriver & Jacobson LLP

        One New
York Plaza

        New York,
NY  10004

        Attention:  Christopher
Ewan

        Facsimile
No.:  212-859-4000

         

        if to
Seller, to:

         

        Van der
Moolen Specialists USA, LLC

        45
Broadway, 32nd
Floor

        New York,
NY 10006

        Attention:  Chief
Executive Officer

         

        with a
copy to:

         

        Davis Polk
& Wardwell

        450
Lexington Avenue

        New York,
New York 10017

        Attention:  Carole
Schiffman

        Facsimile
No.:  212-450-3800

         

         

        
          
            
            

          

          
            39

            
              

            

          

          
            
            

          

        

         

        If to
Parent, to:

         

        Van der
Moolen Holding, NV

        45
Broadway, 32nd
Floor

        New York,
NY 10006

        Attention:  Chief
Executive Officer

        Facsimile
No.:  646-576-3011

        

        with a
copy to:

         

        Davis Polk
& Wardwell

        450
Lexington Avenue

        New York,
New York 10017

        Attention:  Carole
Schiffman

        Facsimile
No.:  212-450-3800

         

        

        or such
other address or facsimile number as such party may hereafter specify for the
purpose by notice to the other parties hereto.  All such notices,
requests and other communications shall be deemed received on the date of
receipt by the recipient thereof if received prior to 5:00 p.m. in the place of
receipt and such day is a Business Day in the place of
receipt.  Otherwise, any such notice, request or communication shall
be deemed not to have been received until the next succeeding Business Day in
the place of receipt.

         

        Section
12.02.     Amendments and
Waivers.  (a) Any provision of this Agreement may be amended or
waived if, but only if, such amendment or waiver is in writing and is signed, in
the case of an amendment, by each party to this Agreement, or in the case of a
waiver, by the party against whom the waiver is to be effective.

         

        (b)           No
failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.  Except as otherwise
specifically provided in this Agreement, the rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by
Applicable Law.

         

        Section
12.03.     Expenses.  Except
as otherwise provided herein, all costs and expenses incurred in connection with
this Agreement shall be paid by the party incurring such cost or
expense.

         

        Section
12.04.     Successors and
Assigns.  The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns; provided that no party may
assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the prior written consent of the other party
hereto.

         

        Section
12.05.     Governing Law. This Agreement
shall be governed by and construed in 

         

         

        
          
            
            

          

          
            40

            
              

            

          

          
            
            

          

        

         

        accordance
with the laws of the State of New York without giving effect to the conflicts of
law principles thereof (other than Section 5-1401 of the New York General
Obligations Law).

         

        Section
12.06.     Jurisdiction.  Unless
the rules of the NYSE or any other applicable Self-Regulatory Organization
require such suit, action or proceeding to be settled by arbitration, the
parties hereto agree that any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby shall be brought in the United
States District Court for the Southern District of New York or any New York
State court sitting in New York City, so long as one of such courts shall have
subject matter jurisdiction over such suit, action or proceeding, and that any
cause of action arising out of this Agreement shall be deemed to have arisen
from a transaction of business in the State of New York, and each of the parties
hereby irrevocably consents to the jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection
that it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient
forum.  Process in any such suit, action or proceeding may be served
on any party anywhere in the world, whether within or without the jurisdiction
of any such court.  Without limiting the foregoing, each party agrees
that service of process on such party pursuant to the provisions of Section
12.01 shall be deemed effective service of process on such
party.  Notwithstanding the foregoing, Parent irrevocably consents to
service of process upon it in the State of New York, and for such purpose only,
elects domicile within the State of New York at 45 Broadway, 32nd floor,
New York, NY 10006.

         

        Section
12.07.      WAIVER OF JURY
TRIAL.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         

        Section
12.08.      Counterparts; Effectiveness; Third
Party Beneficiaries.  This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same
instrument.  This Agreement shall become effective when each party
hereto shall have received a counterpart hereof signed by the other party
hereto.  No provision of this Agreement is intended to confer any
rights, benefits, remedies, obligations, or liabilities hereunder upon any
Person other than the parties hereto and their respective successors and
permitted assigns.

         

        Section
12.09.      Entire
Agreement.  This Agreement, the Confidentiality Agreement and
the other Transaction Agreements constitute the entire agreement between the
parties with respect to the subject matter hereof and thereof and supersedes all
prior agreements and understandings, both oral and written, between the parties
with respect to the subject matter hereof and thereof.

         

        Section
12.10.      Captions.  The
captions herein are included for convenience of reference only and shall be
ignored in the construction or interpretation hereof.

         

         

        
          
            
            

          

          
            41

            
              

            

          

          
            
            

          

        

         

        Section
12.11.      Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or any other Governmental Authority to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party.  Upon such a
determination, the parties shall negotiate in good faith to modify this
Agreement to preserve the original intent of the parties as closely as possible
in an acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent
possible.

         

        Section
12.12.      Schedules and
Exhibits.  All Schedules and Exhibits to this Agreement are
hereby incorporated by reference and made a part of this
Agreement.  Any fact or item which is disclosed on any Schedule that
is referred to in a representation or warranty in this Agreement, shall not be
deemed to be an exception to any other representation or warranty in this
Agreement, or to be disclosed on any other Schedule, unless specified on such
other Schedule by cross-reference or otherwise or unless its relevance to
another section of the Schedules or the Agreement is reasonably
apparent.  Any fact or item disclosed on any Schedule or Exhibit to
this Agreement shall not by reason only of such inclusion be deemed to be
material and shall not be employed as a point of reference in determining any
standard of materiality under this Agreement.

         

        Section
12.13.      Specific Performance. Each of
the parties hereto acknowledges and agrees that in the event of any breach of
this Agreement, the non-breaching party or parties would be irreparably harmed,
no adequate remedy at law would exist and damages would be difficult to
determine.  It is accordingly agreed that (a) in the event of a
breach of any provision of this Agreement, the aggrieved party shall be entitled
to seek specific performance of this Agreement and to enjoin any continuing
breach of this Agreement (without the necessity of proving actual damages and
without posting bond or other security), in addition to any other remedy to
which such aggrieved party may be entitled at law or in equity, and
(b) such party hereby waives the defense, in any action for specific
performance or other equitable relief, that a remedy at law would be
adequate.

         

        Section
12.14.      Parent
Guarantee.  (a)  Parent hereby unconditionally
guarantees to Buyer the full and timely performance of all of the obligations
and agreements of Seller in accordance with the terms hereof.  The
foregoing guarantee shall include the guarantee of the payment of all Damages
which might become recoverable as a result of the nonperformance of any of the
obligations or agreements so guaranteed or as a result of the nonperformance of
this guarantee.  Buyer may, at its option, proceed against Parent for
the performance of any such obligation or agreement, or for Damages for default
in the performance thereof, without first proceeding against Seller or against
any of its properties.  Parent further agrees that its guarantee shall
be an irrevocable guarantee and shall continue in effect notwithstanding any
extension or modification of any guaranteed obligation, any assumption of any
such guaranteed obligation by any other party, or any other act or thing which
might otherwise operate as a legal or equitable discharge of a guarantor and
Parent hereby waives all special suretyship defenses and notice
requirements.

         

         

        
          
            
            

          

          
            42

            
              

            

          

          
            
            

          

        

         

        (b)           Parent
represents and warrants to the Buyer, as of the date hereof, and as of the
Closing Date that:

         

        (i)         Corporate Existence and
Power.  Parent is corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware and has all powers
and all material governmental licenses, authorizations, permits, consents and
approvals required to carry on its business as now conducted except for those
licenses, authorizations, permits, consents and approvals the absence of which,
individually or in the aggregate, has not had, and would not reasonably be
expected to have, a Parent Material Adverse Effect.  Parent is duly
qualified to do business as a foreign entity and is in good standing in each
jurisdiction where such qualification is necessary for Parent to conduct its
business as currently conducted, except for those jurisdictions where the
failure to be so qualified, individually or in the aggregate, has not had, and
would not reasonably be expected to have, a Parent Material Adverse
Effect.

         

        (ii)        Corporate
Authorization.  The execution, delivery and performance by
Parent of this Agreement and the consummation of the transactions contemplated
hereby are within Parent’s power, and have been duly authorized by all necessary
action on the part of Parent, and no other proceedings on the part of Parent
will be necessary to authorize, approve, or consent to, this Agreement or to
consummate the transactions contemplated hereby.  Assuming the due
authorization, execution and delivery of this Agreement by Buyer, this Agreement
a valid and binding agreement of Parent, enforceable against Parent in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization or other laws of general application relating to or affecting the
enforcement of creditors’ rights generally and to general principles of
equity.

         

        (iii)       Governmental
Authorization.  The execution, delivery and performance by
Parent of this Agreement and the consummation of the transactions contemplated
hereby do not violate any authorizations, registrations, or licenses of Parent
with any Governmental Authority and requires no action by, in respect of or
filing with any Governmental Authority.

         

        (iv)       Noncontravention.  The
execution, delivery and performance by Parent of this Agreement and the
consummation of the transactions contemplated hereby do not and will not (i)
violate the articles of incorporation or by-laws of Parent, (ii) violate any
Applicable Law except any violations which, individually or in the aggregate,
have not had, and would not reasonably be expected to have, a Parent Material
Adverse Effect, (iii) require any material consent or other action by any Person
under, constitute a default under, cause or permit the termination,
cancellation, modification or acceleration of any material right or obligation
or the loss of any material benefit to which Parent is entitled, under any
provision of any agreement or other instrument binding upon Parent, unless the
same would not have a Parent Material Adverse Effect, or (iv) result in the
creation of any material Lien on any asset of Parent.

         

        (v)        Litigation. There is no
Action pending against, or to the Knowledge of Parent, threatened against or
affecting Parent that would reasonably be expected to have a Parent Material
Adverse Effect.

         

         

        
          
            
            

          

          
            43

            
              

            

          

          
            
            

          

        

         

        (vi)       Solvency.  Parent
is, and following Closing will be, solvent.  The value of the assets
of Parent is, and following Closing will be, greater than the sum of its
Liabilities and outstanding equity.  The Parent is, and immediately
following Closing will be, able to satisfy its Liabilities as they come due in
the ordinary course of business.  Parent does not presently intend to
liquidate or wind up its affairs.

         

        Section
12.15.      Asset Purchase
Only.  The parties hereto agree that the transactions
consummated hereby constitute solely a transfer of the Purchased Assets to Buyer
and the assumption of the Assumed Liabilities by Buyer, and do not constitute a
transfer of the Business to Buyer.

         

         

        [Signatures
Follow]

         

         

         

        
          
            
            

          

          
            44

            
              

            

          

          
            
            

          

        

         

         

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

         

        

        
          	
                  Seller:

                   

                  VAN
      DER MOOLEN SPECIALISTS USA, LLC

                	 
	 	 
	 	 
	
                  By:

                	
                  /s/
      William White

                	 
	 
      	
                  Name:

                	
                  William
      White

                	 
	 
      	
                  Title:

                	
                  CIO

                	 

        

        

        

        
          	
                  Parent:

                   

                  VAN
      DER MOOLEN USA, INC.

                	 
	 	 
	 	 
	
                  By:

                	
                  /s/
      P. Vroling

                	 
	 
      	
                  Name:

                	
                  P.
      Vroling

                	 
	 
      	
                  Title:

                	
                  Power
      of Attorney

                	 

        

        

        

        
          	
                  Buyer:

                   

                  LEHMAN
      BROTHERS INC.

                	 
	 	 
	 	 
	
                  By:

                	
                  /s/
      Gerald A. Donni

                	 
	 
      	
                  Name:

                	
                  Gerald
      A. Donni

                	 
	 
      	
                  Title:

                	
                  Managing
      Director

                	 

        

        

         

        
          45

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