Document:

Exhibit
          10.1

      

      
        	 
	
                Confidential
                  Materials omitted and filed separately with the 

              
	
                Securities
                  and Exchange Commission. Asterisks denote omissions.

              
	 

      

       

      DATED
        April 4, 2008

       

      
        
          	
                  (1)

                	
                  THE
                    SEVERAL PERSONS WHOSE NAMES ARE

                
	 	
                  SET
                    OUT IN COLUMN 1 OF SCHEDULE 1

                
	 	 
	
                  (2)

                	
                  NYFIX
                    GLOBAL SERVICES, LIMITED

                
	 	 
	
                  (3)

                	
                                                            NYFIX,
                    INC 

                

        

      

       

        
          

        

      

      AGREEMENT
        FOR THE SALE AND PURCHASE

      OF
        THE ENTIRE ISSUED SHARE CAPITAL

      OF
        FIX CITY LIMITED

      
        
 

      STEPHENSON
        HARWOOD

      One,
        St Paul's Churchyard

      London
        EC4M 8SH

      Tel:
        020 7329 4422

      Fax:
        020 7329 7100

      Ref:
        1258/46-02758

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      CONTENTS

       

      
        	 	 	
                Page

              
	 	 	 
	
                1

              	
                Definitions
                  and Interpretation

              	
                2

              
	 	 	 
	
                2

              	
                Agreement
                  for Sale

              	
                8

              
	 	 	 
	
                4

              	
                Seller's
                  Intellectual Property

              	
                13

              
	 	 	 
	
                5

              	
                Warranties
                  and Indemnity

              	
                14

              
	 	 	 
	
                6

              	
                Restrictive
                  Covenants

              	
                16

              
	 	 	 
	
                7

              	
                FSA
                  Application Covenant

              	
                22

              
	 	 	 
	
                8

              	
                Payments

              	
                22

              
	 	 	 
	
                9

              	
                Assignment

              	
                23

              
	 	 	 
	
                10

              	
                Announcements
                  and Confidentiality

              	
                23

              
	 	 	 
	
                11

              	
                Costs

              	
                24

              
	 	 	 
	
                12

              	
                Notices

              	
                24

              
	 	 	 
	
                13

              	
                Exclusion
                  of Contracts (Rights of Third Parties) Act 1999

              	
                25

              
	 	 	 
	
                14

              	
                Further
                  Assurance

              	
                25

              
	 	 	 
	
                15

              	
                No
                  Merger

              	
                25

              
	 	 	 
	
                16

              	
                Counterparts

              	
                26

              
	 	 	 
	
                17

              	
                Waiver

              	
                26

              
	 	 	 
	
                18

              	
                Entire
                  Agreement

              	
                26

              
	 	 	 
	
                19

              	
                Governing
                  Law, Jurisdiction and Service Of Proceedings

              	
                27

              
	 	 	 
	
                20

              	
                Guarantee

              	
                27

              
	 	 	 
	
                Schedule
                  1

              	
                29

              
	 	 
	
                Particulars
                  of Sellers and apportionment of Consideration

              	
                29

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                Schedule
                  2

              	
                30

              
	 	 
	
                Details
                  of the Company

              	
                30

              
	 	 
	
                Schedule
                  3

              	
                32

              
	 	 
	
                Warranties

              	
                32

              
	 	 
	
                Limitations
                  on Sellers' Liability

              	
                50

              
	 	 
	
                Schedule
                  4

              	
                58

              
	 	 
	
                1

              	
                Definitions
                  and Interpretation

              	
                58

              
	 	 	 
	
                2

              	
                Covenant

              	
                60

              
	 	 	 
	
                3

              	
                Limitations
                  on Liability

              	
                62

              
	 	 	 
	
                4

              	
                Mitigation

              	
                65

              
	 	 	 
	
                5

              	
                Over-Provisions,
                  Reliefs, etc

              	
                65

              
	 	 	 
	
                6

              	
                Recovery
                  from other Persons

              	
                67

              
	 	 	 
	
                7

              	
                Conduct
                  of Tax Affairs

              	
                68

              
	 	 	 
	
                8

              	
                Due
                  Date of Payment

              	
                73

              
	 	 	 
	
                9

              	
                Deductions
                  from Payments

              	
                74

              
	 	 	 
	
                10

              	
                Buyer
                  Covenants

              	
                75

              
	 	 	 
	
                1

              	
                Returns
                  and payment of Taxation

              	
                76

              
	 	 	 
	
                2

              	
                Taxation
                  claims, liabilities and reliefs

              	
                77

              
	 	 	 
	
                3

              	
                Tax
                  residence and status

              	
                78

              
	 	 	 
	
                4

              	
                Corporation
                  Tax on chargeable gains

              	
                79

              
	 	 	 
	
                5

              	
                Shares
                  owned by directors or employees

              	
                80

              
	 	 	 
	
                6

              	
                Value
                  Added Tax

              	
                80

              
	 	 	 
	
                7

              	
                Stamp
                  Duty

              	
                81

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                8

              	
                Tax
                  Avoidance

              	
                82

              
	 	 	 
	
                9

              	
                Miscellaneous

              	
                82

              
	 	 	 
	
                Schedule
                  5

              	
                85

              
	 	 
	
                Intellectual
                  Property Rights

              	
                85

              
	 	 
	
                Schedule
                  6

              	
                86

              
	 	 
	
                Deferred
                  Consideration

              	
                86

              
	 	 
	
                Appendix
                  1

              	
                97

              
	 	 
	
                Schedule
                  7

              	
                98

              
	 	 
	
                Relevant
                  Competitors

              	
                98

              
	 	 
	
                Schedule
                  8

              	
                99

              
	 	 
	
                Bank
                  Balance Figures

              	
                99

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      THIS
        AGREEMENT
        is made
        on April 4, 2008

       

      BETWEEN:

       

      
        	
                (1)

              	
                THE
                  SEVERAL PERSONS
                  whose names and addresses are set out in column 1 of Schedule 1
                  (together
                  the "Sellers"
                  and each a "Seller");

              

      

       

      
        	
                (2)

              	
                NYFIX
                  GLOBAL SERVICES, LIMITED
                  a
                  company incorporated and registered in England and Wales with company
                  number 05988275 whose registered office is at 160 Queen Victoria
                  Street
                  London EC4V 4BF (the "Buyer");
                  and

              

      

       

      
        	
                (3)

              	
                NYFIX,
                  INC
                  a
                  company incorporated and registered in Delaware with offices at
                  100 Wall
                  Street, New York, NY 10005 ("the Guarantor")

              

      

       

      RECITALS:

       

      
        	
                (A)

              	
                The
                  Company has an authorised share capital of £100,000 divided into 100,000
                  shares of £1 each of which 1,288 of such shares have been issued and are
                  fully paid.

              

      

       

      
        	
                (B)

              	
                Further
                  particulars of the Company at the date of this Agreement are set
                  out in
                  Schedule 2.

              

      

       

      
        	
                (C)

              	
                The
                  Sellers are the legal and beneficial owners of the legal and beneficial
                  title to the number of shares set out opposite their respective
                  names in
                  Schedule 1, comprising in aggregate the whole of the issued share
                  capital
                  of the Company.

              

      

       

      
        	
                (D)

              	
                The
                  Sellers have agreed to sell and the Buyer has agreed to buy the
                  Shares
                  subject to the terms and conditions of this
                  Agreement.

              

      

       

      IT
        IS AGREED
        as
        follows:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                1

              	
                Definitions
                  and Interpretation

              

      

       

      
        	1.1	
                In
                  this Agreement, the following words and expressions shall have
                  the
                  following meanings unless the context requires
                  otherwise:

              

      

       

      
        
          	
                  "Accounts"

                	
                  the
                    individual financial accounts of the Company compiled by the
                    Company's
                    external accountants for the two financial periods ended on the
                    Accounts
                    Date, together in each case with the notes, directors' and accountants'
                    reports and all other statements incorporated in or annexed to
                    them;
                    

                
	
                   

                	 
	
                  "Accounts
                    Date"

                	
                  31
                    December 2007;

                
	
                   

                	 
	
                  "Act"

                	
                  the
                    Companies Act 1985 and the Companies Act 2006 to the extent that
                    it is in
                    force;

                
	
                   

                	 
	
                  "this
                    Agreement"

                	
                  this
                    agreement (and the schedules to it), as varied from time to time
                    pursuant
                    to its terms;

                
	
                   

                	 
	
                  "Business
                    Day"

                	
                  a
                    day which is not a Saturday, a Sunday or a bank or public holiday
                    in
                    England or New York; 

                
	
                   

                	 
	
                  "Buyer's
                    Group"

                	
                  the
                    Buyer, its parent undertakings and its subsidiary undertakings
                    from time
                    to time and any subsidiary undertaking for the time being of
                    a parent
                    undertaking of the Buyer; 

                

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          	
                  "Buyer's
                    Solicitors"

                	
                  Stephenson
                    Harwood of One, St Paul's Churchyard, London EC4M 8SH and any
                    successor
                    firm;

                
	
                   

                	 
	
                  "Company"

                	
                  FIX
                    City Limited, a company incorporated and registered in England
                    and Wales
                    with company number 04511314 whose registered office is at Financial
                    House, 14 Barclay Road, Croydon, Surrey CR0 1JN, brief particulars
                    of
                    which are set out in Part 1 of Schedule 2;

                
	
                   

                	 
	
                  "Completion"

                	
                  completion
                    of the sale and purchase of the Shares in accordance with this
                    Agreement;

                
	
                   

                	 
	
                  "Completion
                    Date"

                	
                  the
                    date on which Completion takes place;

                
	
                   

                	 
	
                  "Consideration"

                	
                  £3,250,000
                    and the Deferred Consideration; 

                
	
                   

                	 
	
                  "Deferred
                    Consideration"

                	
                  the
                    consideration, if any, to be calculated and paid in accordance
                    with
                    Schedule 6;

                
	
                   

                	 
	
                  "Disclosure
                    Letter"

                	
                  the
                    letter from the Sellers to the Buyer, dated with the date of
                    this
                    Agreement disclosing certain exceptions to the
                    Warranties;

                
	
                   

                	 
	
                  "Due
                    Proportions"

                	
                  in
                    the case of the [**]%, in the case of [**]% and in the case of
                    [**]%;

                
	
                   

                	 
	
                  "Encumbrance"

                	
                  a
                    mortgage, charge, pledge, lien, option, restriction, right of
                    first
                    refusal, right of pre-emption, third party right or interest,
                    a claim of
                    any kind, other encumbrance or security interest of any kind
                    or other type
                    of preferential arrangement (including, without limitation, a
                    title
                    transfer and retention arrangement) having similar
                    effect;

                

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        
          	
                  "Founders"

                	
                  [**];
                    and “Founder”
shall
                    mean any one
                    of them;

                
	
                   

                	 
	
                  "FSA"

                	
                  the
                    Financial Services Authority;

                
	
                   

                	 
	
                  "Group"

                	
                  the
                    Company and its Subsidiary Undertaking;

                
	
                   

                	 
	
                  "Group
                    Company"

                	
                  the
                    Company and/or the Subsidiary Undertaking as
                    appropriate;

                
	
                   

                	 
	
                  "Intellectual
                    Property Rights"

                	
                  patents,
                    rights to inventions, copyright and related rights, moral rights,
                    trade
                    marks, and domain names, rights to goodwill or to sue for passing
                    off or
                    unfair competition, rights in computer software, database rights,
                    rights
                    in confidential information (including know-how and trade secrets)
                    and any
                    other intellectual property rights, in each case whether registered
                    or
                    unregistered and including all applications (or rights to apply)
                    for, and
                    renewals or extensions of, such rights and all similar or equivalent
                    rights or forms of protection which subsist or will subsist now
                    or in the
                    future in any part of the world;

                

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        
          	
                  "Key
                    Employees"

                	
                  [**];

                
	
                   

                	 
	
                  "Losses"

                	
                  in
                    relation to any matter, all liabilities, losses, claims, costs
                    and
                    reasonable expenses relating to that matter;

                
	
                   

                	 
	
                  "Parties"

                	
                  the
                    parties to this Agreement; and "Party"
                    means any one of them;

                
	
                   

                	 
	
                  "Property"

                	
                  12-16
                    Clerkenwell Road, London EC1M 5PQ (office numbers 107 and 108), 14
                    Wall Street, 20th
                    Floor, New York NY10005 and Norwell Executive Center, 167 Washington
                    Street, Norwell, Massachusetts 02061 USA and includes an individual
                    property and a part of an individual property;

                
	
                   

                	 
	
                  "Sellers'
                    Solicitors"

                	
                  H
                    Montlake & Co, 197 High Road, Ilford IG1 1LX and any successor
                    firm;

                
	
                   

                	 
	
                  "Shares"

                	
                  all
                    the issued shares in the capital of the Company;

                
	
                   

                	 
	
                  "Subsidiary
                    Undertaking"

                	
                  the
                    subsidiary undertaking of the Company listed in Part 2 of Schedule
                    2;

                
	
                   

                	 
	
                  "Tax"
                    or "Taxation"

                	
                  any
                    form of tax, levy, duty, charge, contribution, withholding or
                    impost of
                    whatever nature capable of being imposed or demanded by a Tax
                    Authority,
                    any liability to pay for group relief, repay an amount received
                    in
                    relation to group relief, contribute to the tax liabilities of
                    another
                    person, and any other amount representative of Tax together with
                    all
                    penalties, charges, and interest relating to any of them regardless
                    of
                    whether any such liabilities are chargeable directly or primarily
                    against
                    or attributable directly or primarily to a Group Company or any
                    other
                    person and of whether any amount in respect of them is recoverable
                    from
                    any other person;

                

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	
                  "Tax
                    Authority"

                	
                  any
                    taxing or other authority (whether within or outside the United
                    Kingdom)
                    competent to impose or demand any Tax;

                
	
                   

                	 
	
                  "Tax
                    Covenant Claim"

                	
                  a
                    claim under the covenants set out in paragraph 2 of the Tax
                    Deed;

                
	
                   

                	 
	
                  "Tax
                    Deed"

                	
                  the
                    provisions of Part 1 of Schedule 4 to this Agreement;

                
	
                   

                	 
	
                  "Tax
                    Warranties"

                	
                  the
                    warranties set out in Part 2 of Schedule 4;

                
	
                   

                	 
	
                  "TCGA"

                	
                  the
                    Taxation of Chargeable Gains Act 1992;

                
	
                   

                	 
	
                  "VAT"

                	
                  value
                    added tax as provided for in VATA, and any tax imposed in substitution
                    for
                    it;

                

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          	
                  "VATA"

                	
                  the
                    Value Added Tax Act 1994;

                
	
                   

                	 
	
                  "Warranties"

                	
                  the
                    warranties of the Sellers contained in Clause 5 and set out in
                    Part 1 of
                    Schedule 3 and the Tax Warranties; 

                
	
                   

                	 
	
                  "Warranty
                    Claim"

                	
                  a
                    claim for any breach of any of the Warranties including the Tax
                    Warranties; and

                
	
                   

                	 

        

      

       

      
        
          
            	1.2	
                    In
                      this Agreement, unless the context requires otherwise:
                      

                  

          

        

      

       

      
        	 	
                1.2.1

              	
                any
                  reference to the parties or a recital, Clause or Schedule is to
                  the
                  parties or the relevant recital, Clause or Schedule of or to this
                  Agreement, and any reference in a Schedule to a paragraph is to
                  a
                  paragraph of that Schedule or, where relevant, that part of that
                  Schedule; 

              

      

      

      
        	 	
                1.2.2

              	
                the
                  Clause headings are included for convenience only and shall not
                  affect the
                  interpretation of this Agreement; 

              

      

      

      
        	 	
                1.2.3

              	
                use
                  of the singular includes the plural and vice versa; 

              

      

      

      
        	 	
                1.2.4

              	
                use
                  of any gender includes the other genders; 

              

      

      

      
        	 	
                1.2.5

              	
                "financial
                  year", "parent undertaking" and "subsidiary undertaking" have the
                  meanings
                  given to them by sections 223 and 258 of the Companies Act 1985
                  respectively; 

              

      

      

      
        	 	
                1.2.6

              	
                any
                  reference to a statute, statutory provision or subordinate legislation
                  ("legislation") shall be construed as referring to that legislation
                  as
                  amended and in force from time to time and to any legislation which
                  re-enacts or consolidates (with or without modification) any such
                  legislation except to the extent that any amendment, re-enactment
                  or
                  consolidation on or after the date of this Agreement would increase
                  the
                  liability of any party under this Agreement;

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	 	
                1.2.7

              	
                any
                  reference to a document being "in the agreed form" means a document
                  in a
                  form agreed by the Parties and either entered into on the date
                  of this
                  Agreement by the relevant Parties or initialled by the Parties
                  or on their
                  behalf, in the latter case with such amendments as they may subsequently
                  agree;

              

      

      

      
        	 	
                1.2.8

              	
                unless
                  otherwise stated herein, where a statement is qualified by the
                  expression
                  "so far as the Sellers are aware" or "to the best of the
                  knowledge, information and belief of the Sellers", or any similar
                  expression, that statement shall be deemed to include an additional
                  statement that it has been made after due and careful enquiry;
                  and

              

      

      

      
        	 	
                1.2.9

              	
                references
                  to any English legal term for any action, remedy, method of judicial
                  proceeding, legal document, legal status, court, organisation,
                  body,
                  official or any legal concept, state of affairs or thing shall
                  in respect
                  of any jurisdiction other than England be deemed to include that
                  which
                  most nearly approximates in that jurisdiction to the English legal
                  term.

              

      

      

      
        	
                1.3

              	
                The
                  Schedules and recitals form part of this Agreement and shall have
                  effect
                  as if set out in full in the body of this Agreement, and any reference
                  to
                  this Agreement includes the Schedules and recitals. 

              

      

       

      
        	
                2

              	
                Agreement
                  for Sale

              

      

       

      
        	2.1	
                Subject
                  to the terms of this Agreement, each Seller shall sell or cause
                  to be sold
                  and the Buyer shall buy the shares indicated in column 2 of Schedule
                  1
                  opposite that Seller's respective name free from all Encumbrances
                  and in
                  all other respects with full title guarantee. The Shares shall
                  be sold
                  with all rights attaching to them at Completion or subsequently,
                  including
                  the rights to receive all dividends and other distributions declared,
                  paid
                  or made at or after Completion. 

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	2.2	
                The
                  purchase price for the Shares shall be the Consideration and the
                  Sellers
                  and the Buyer agree to give effect to all the provisions of Schedule
                  6.
                  Each of the Sellers shall be entitled to receive that part of the
                  Consideration set out opposite his name in column 3 of Schedule
                  1.

              

      

       

      
        	2.3	
                The
                  Buyer shall not be obliged to complete the purchase of any of the
                  Shares
                  unless the purchase of all of the Shares is completed
                  simultaneously.

              

      

       

      
        	2.4	
                The
                  Sellers waive all rights of pre-emption over any of the Shares
                  conferred
                  either by the articles of association of the Company or in any
                  other
                  way.

              

      

       

      
        	3	
                Completion 

              

      

       

      
        	3.1	
                Completion
                  shall take place at the offices of the Buyer's Solicitors immediately
                  after the signing of this Agreement or at such other place and
                  time as
                  shall be mutually agreed between the Parties when the events set
                  out in
                  Clauses 3.2 to 3.5 (inclusive) shall take
                  place.

              

      

       

      
        	3.2	
                At
                  Completion, the Sellers shall deliver or make available to the
                  Buyer: 

              

      

       

      
        	 	
                3.2.1

              	
                transfers
                  of the Shares duly executed by the respective registered holders
                  in each
                  case in favour of the Buyer (or as it may
                  direct);

              

      

      

      
        	 	
                3.2.2

              	
                the
                  share certificates representing the Shares together with any power
                  of
                  attorney or other authority under which such transfers have been
                  executed
                  and such waivers or consents as the Buyer may require to enable
                  the Buyer
                  (or such person as the Buyer directs) to be registered as the holder(s)
                  of
                  the Shares; 

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	 	
                3.2.3

              	
                certificates
                  for all issued shares in the capital of the Subsidiary Undertaking
                  held by
                  the Company;

              

      

      

      
        	 	
                3.2.4

              	
                entry
                  into by the Company's Key Employees of service agreements with
                  the Buyer
                  and/or the Company in the agreed
                  form;

              

      

      

      
        	 	
                3.2.5

              	
                a
                  letter executed as a deed in the form required by the Buyer from
                  each
                  present director and secretary of the Company in each case resigning
                  their
                  respective office (with effect from the end of the meeting held
                  pursuant
                  to Clause 3.3) and acknowledging that the writer has no claim against
                  the
                  Company for compensation for loss of office or
                  otherwise;

              

      

      

      
        	 	
                3.2.6

              	
                a
                  letter executed as a deed in the form required by the Buyer from
                  each
                  present director and secretary of the Subsidiary Undertaking in
                  each case
                  resigning their respective office (with effect from the end of
                  the meeting
                  held pursuant to Clause 3.4 or, if no such meeting occurs, pursuant
                  to
                  Clause 3.3) and acknowledging that the writer has no claim against
                  the
                  Company or the Subsidiary Undertaking for compensation for loss
                  of office
                  or otherwise;

              

      

      

      
        	 	
                3.2.7

              	
                an
                  irrevocable power of attorney (in such form as the Buyer may reasonably
                  require) executed by each of the registered holders of the Shares
                  in
                  favour of the Buyer to enable the Buyer (pending registration of
                  the
                  transfers referred to in Clause 3.2.1) to exercise all voting and
                  other
                  rights attaching to the Shares and to appoint proxies for this
                  purpose;

              

      

      

      
        	 	
                3.2.8

              	
                statements
                  for each bank account of the Company at the close of business on
                  the last
                  Business Day preceding Completion which will show cash in the accounts
                  totalling no less than £[**] (based on the figures for creditors paid and
                  payments received being those set out in Schedule 8);
                  and

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	 	
                3.2.9

              	
                the
                  seal (if any), statutory registers, certificate of incorporation
                  (and any
                  certificate of incorporation on change of name), minute books and
                  share
                  certificate books of each of the Company and the Subsidiary Undertaking
                  complete and up-to-date in all material respects up to but not
                  including
                  Completion.

              

      

      

      
        	
                3.3

              	
                The
                  Sellers shall ensure that a board meeting of the Company is held
                  at
                  Completion at which: 

              

      

       

      
        	 	
                3.3.1

              	
                the
                  people nominated by the Buyer are appointed as the directors and
                  secretary
                  (as the case may be) of the Company with immediate
                  effect;

              

      

      

      
        	 	
                3.3.2

              	
                the
                  resignations referred to in Clauses 3.2.5 and 3.2.6 are accepted
                  with
                  effect from the close of the
                  meeting;

              

      

      

      
        	 	
                3.3.3

              	
                the
                  registered office of the Company is changed to 160
                  Queen Victoria Street, London EC4V
                  4BF.

              

      

      

      
        	 	
                3.3.4

              	
                the
                  transfers referred to in Clause 3.2.1 are approved for registration;
                  and

              

      

      

      
        	 	
                3.3.5

              	
                each
                  existing bank mandate of the Company is cancelled and a new bank
                  mandate
                  appointing the Buyer's chosen signatories submitted to the relevant
                  bank;

              

      

      

      and
        shall
        cause the original minutes of such resolutions signed by the chairman to
        be
        delivered to the Buyer.

       

      
        	
                3.4

              	
                The
                  Sellers shall ensure that, immediately after the board meeting
                  referred to
                  in Clause 3.3:

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	 	
                3.4.1

              	
                any
                  meeting of the board of directors of the Subsidiary Undertaking
                  that the
                  Buyer may require is held; and

              

      

      

      
        	 	
                3.4.2

              	
                any
                  meeting held pursuant to Clause 3.4.1 deals with any matter referred
                  to in
                  Clause 3.3 that the Buyer may
                  require.

              

      

      

      
        	
                3.5

              	
                At
                  Completion, the Buyer shall: 

              

      

       

      
        	 	
                3.5.1

              	
                deliver
                  to the Sellers a certified copy of the minutes of a meeting of
                  the
                  directors of the Buyer approving the purchase of Shares together
                  with any
                  related matters in the agreed form; and
                  

              

      

      

      
        	 	
                3.5.2

              	
                pay
                  the sum of £3,250,000 (three million two hundred and fifty thousand pounds
                  sterling) in accordance with Clause
                  8.

              

      

      

      
        	3.6	
                If
                  either the Sellers or the Buyer (referred to in this Clause 3 as
                  the
                  "defaulting
                  party")
                  does not or is unable to fulfil any material obligations under
                  Clauses 3.2
                  to 3.5 as the case may be, at the time when Completion is due to
                  take
                  place under Clause 3.1, the other party (referred to in this Clause
                  3 as
                  the "non-defaulting
                  party")
                  may in addition to any other right or remedy it may have, by notice
                  to the
                  defaulting party: 

              

      

       

      
        	 	
                3.6.1

              	
                postpone
                  Completion by up to 10 Business Days; or 

              

      

      

      
        	 	
                3.6.2

              	
                elect
                  to proceed to Completion, in which case the defaulting party shall
                  be
                  obliged to fulfil those obligations under Clauses 3.2 to 3.5, as
                  the case
                  may be, which it is then able to fulfil and to fulfil the remaining
                  obligations on or before any later date specified for the purpose
                  in the
                  notice; or 

              

      

      

      
        	 	
                3.6.3

              	
                if
                  having already given notice under Clause 3.6.1 and a period of
                  not less
                  than 10 Business Days having elapsed without each unfulfilled obligation
                  in question having been fulfilled in all material respects, elect
                  not to
                  complete the sale and purchase of the Shares. 

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	3.7	
                If
                  Completion is postponed on any occasion under Clause 3.6.1, Clause
                  3.6
                  shall apply with respect to each occasion to which it is so
                  postponed. 

              

      

       

      
        	3.8	
                If
                  the non-defaulting party elects not to complete the sale and purchase
                  of
                  the Shares in accordance with Clause 3.6.3, the Parties shall have
                  no
                  further rights or obligations under this Agreement, other than
                  accrued
                  rights and obligations at the time of that election in respect
                  of prior
                  breaches, save that Clauses 10-13 and 16-19 shall remain binding
                  on the
                  Parties in accordance with their terms. 

              

      

       

      
        	
                4

              	
                Seller's
                  Intellectual Property 

              

      

       

      
        	
                4.1

              	
                Each
                  Seller hereby assigns to the Buyer with full title guarantee
                  all Intellectual Property Rights vested in them (the "Sellers'
                  Intellectual Property") that has been used by the Company in its
                  business
                  or is utilizable by the Company (or the Buyer following Completion)
                  (which
                  includes but is not limited to the Intellectual Property Rights
                  listed in
                  Schedule 5) together with all goodwill attaching to such Intellectual
                  Property Rights the right to sue for damages and other remedies
                  for any
                  infringement of such Intellectual Property Rights that occurred
                  before the
                  Completion Date.

              

      

       

      
        	4.2	
                The
                  Sellers each agree and undertake to provide to the Buyer (at its
                  request
                  and expense) all reasonable assistance with any proceedings which
                  may be
                  brought by or against the Buyer against or by any third party relating
                  to
                  the rights assigned by this Agreement.

              

      

       

      
        	4.3	
                The
                  Sellers shall at the cost and expense of the Buyer do or procure
                  to be
                  done all such further acts and things, and execute or procure the
                  execution of all such other documents, as the Buyer may from time
                  to time
                  reasonably require (without the imposition of any liability on
                  the Sellers
                  in addition to that which they would have under this Agreement)
                  in order
                  to give the Buyer the full benefit of this agreement, whether in
                  connection with any registration of title or other similar right
                  or
                  otherwise.

              

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        	4.4	
                
                  The
                    telephone numbers of the mobile telephones used by the Founders
                    and
                    Matthew Barkway belong to those individuals and not the Company
                    and the
                    Buyer will procure that the Company uses its reasonable endeavours
                    to
                    arrange for each relevant telephone number to be transferred
                    as the
                    relevant Seller may direct.

                

              

      

       

      
        	
                5

              	
                Warranties and
                  Indemnity

              

      

       

      
        	5.1	
                Subject
                  to Clause 5.10, [**] warrant to the Buyer in the terms set out
                  in Part 1
                  of Schedule 3 and Part 2 of Schedule 4 and not withstanding any
                  other
                  provision of this Agreement, any reference in any Warranty to a
                  Seller
                  shall be to the Sellers. 

              

      

       

      
        	5.2	
                The
                  Sellers are aware and acknowledge that the Buyer has entered into
                  this
                  Agreement in reliance on the Warranties which have induced it to
                  enter
                  into this Agreement.

              

      

       

      
        	5.3	
                The
                  Warranties are given subject only to the matters fairly disclosed
                  in the
                  Disclosure Letter. The rights and remedies of the Buyer in respect
                  of any
                  breach of the Warranties shall not be affected by Completion.
                  

              

      

       

      
        	5.4	
                Each
                  of the Warranties set out in each paragraph of Part 1 of Schedule
                  3 are
                  separate and independent and unless otherwise expressly provided
                  shall not
                  be limited by reference to any other Warranty or anything in this
                  Agreement.

              

      

       

      
        	5.5	
                If
                  there is a breach of a Warranty
                  and:

              

      

       

      
        	 	
                5.5.1

              	
                the
                  value of an asset of the Company or the Subsidiary Undertaking
                  is or
                  becomes less than the value would have been had the breach not
                  occurred;
                  or 

              

      

      

      
        	 	
                5.5.2

              	
                the
                  Company and/or the Subsidiary Undertaking is/are subject to or
                  incur(s) a
                  liability or an increase in a liability which it would not have
                  been
                  subject to or would not have incurred had the breach not
                  occurred,

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      [**]
        pay
        the Buyer on demand (at the Buyer’s option) an amount equal to the relevant Due
        Proportion of the reduction caused in the value of the Shares.

       

      
        	5.6	
                [**]
                  indemnify the Buyer against the relevant Due Proportion of all
                  reasonable
                  and proper costs which the Buyer may incur whether before or after
                  the
                  start of an action in connection
                  with:

              

      

       

      
        	 	
                5.6.1

              	
                the
                  settlement of a claim against the Sellers in respect of a breach
                  or an
                  alleged breach of a Warranty or the enforcement of a settlement;
                  and

              

      

      

      
        	 	
                5.6.2

              	
                legal
                  proceedings against the Sellers in respect of a breach or an alleged
                  breach of a Warranty in which judgment is given for the Buyer or
                  the
                  enforcement of the judgment.

              

      

      

      
        	5.7	
                [**]
                  the Buyer against the relevant Due Proportion of all reasonable
                  and proper
                  costs which the Buyer may incur in relation to any and all losses
                  suffered
                  by the Company following Completion as a result of any variation
                  or error
                  in the figures set out in Schedule
                  8.

              

      

       

      
        
          
            	5.8	
                    If
                      in respect of or in connection with any breach of any of the
                      Warranties or
                      any indemnity claim under this Clause 5 any sum payable to
                      the Buyer by
                      the Sellers by way of compensation is subject to Taxation,
                      then such
                      further amount shall be paid to the Buyer by the Sellers so
                      as to secure
                      that the net amount received by the Buyer is the same as it
                      would have
                      been were the payment not subject to Taxation.

                  

          

        

      

       

      
        	5.9	
                Each
                  of the Sellers waives and may not enforce any rights which he/she
                  may have
                  in respect of a misrepresentation, inaccuracy or omission in or
                  from
                  information or advice supplied or given by the Company and/or the
                  Subsidiary Undertaking or any present or former officer or employee
                  of the
                  Company and/or the Subsidiary Undertaking for the purpose of assisting
                  them in relation to any term of this Agreement, the making of a
                  representation, the giving of a warranty or the preparation of
                  the
                  Disclosure Letter.

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	 	
                5.10

              	
                Part
                  2 of Schedule 3 (Limitations on Sellers' liability) shall apply
                  to limit
                  or exclude, in accordance with its terms, any liability of the
                  Sellers in
                  respect of a Warranty Claim, provided that no provision of that
                  schedule
                  shall apply to limit or exclude any such liability arising out
                  of any
                  fraudulent act or omission by or on behalf of the Sellers. 

              

      

       

      
        	 	
                5.11

              	
                Any
                  amount paid by or on behalf of the Sellers in respect of a breach
                  of the
                  Warranties and/or under a Warranty Claim made under Part 1 of Schedule
                  3
                  shall be deemed to reduce the Consideration and be a repayment
                  of the
                  Consideration to the extent of that
                  amount.

              

      

       

      
        	
                6

              	
                Restrictive
                  Covenants

              

      

       

      
        	6.1	
                In
                  this Clause 6.1:

              

      

       

      
        	
                "Confidential
                  Information" 

              	
                means
                  trade secrets, confidential knowledge, non-public data and any
                  other
                  proprietary information of the Company or the Subsidiary Undertaking.
                  By
                  way of illustration but not limitation, "Confidential Information"
                  includes (i) inventions, trade secrets, ideas, processes, formulas,
                  data,
                  programs, other works of authorship, know-how, improvements, discoveries,
                  developments, designs and techniques, in each case to the extent
                  such
                  items relate to communications and/or business transactions with
                  one or
                  more users over a computer network or the Internet; (ii) information
                  regarding plans for research, development, new products and services,
                  marketing and selling, business plans, budgets and unpublished
                  financial
                  statements, licenses, prices and costs, suppliers and customers;
                  and (iii)
                  information regarding the skills and compensation of any other
                  employee of
                  the Company or the Subsidiary
                  Undertaking;

              

      

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	
                "Founders"
                  

              	
                means
                  [**];

              
	 	 
	
                "Prospective
                  Customer"

              	
                means
                  any person with whom the relevant Seller had dealings during the
                  Relevant
                  Period in the course of his/her employment with a view to that
                  person
                  becoming a customer or client of the Company or the Subsidiary
                  Undertaking;

              
	 	 
	
                "Relevant
                  Area" 

              	
                means
                  [**];

              
	 	 
	
                "Relevant
                  Competitors"

              	
                means
                  those companies listed in Schedule 7;

              
	 	 
	
                "Relevant
                  Customer" 

              	
                means
                  any person who has been at any time during the Relevant Period
                  a customer
                  or client of the Company or the Subsidiary Undertaking with whom
                  the
                  relevant Seller was actively involved in the course of his/her
                  employment
                  during the Relevant Period;

              
	 	 
	
                "Relevant
                  Distributor"

              	
                means
                  any distributor of the Company's and/or the Subsidiary Undertaking's
                  products with whom the relevant Seller was actively involved in
                  the course
                  of his/her employment during the Relevant
                  Period;

              

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      
        	
                "Relevant
                  Employee" 

              	
                means
                  an employee of the Company or the Subsidiary Undertaking with whom
                  the
                  relevant Seller had material dealings in the course of his/her
                  employment
                  during the Relevant Period and who is employed wholly or mainly
                  in a
                  senior/managerial/customer facing capacity;

              
	 	 
	
                "Relevant
                  Period" 

              	
                means
                  the period of [**] ending on Completion;

              
	 	 
	
                "Relevant
                  Services" 

              	
                means
                  services the same as or similar to those being provided by the
                  Company or
                  the Subsidiary Undertaking at Completion and with which the relevant
                  Seller was actively involved in any capacity in the course of his/her
                  employment during the Relevant Period;

              
	 	 
	
                "Relevant
                  Supplier" 

              	
                means
                  any supplier to the Company or the Subsidiary Undertaking with
                  whom the
                  relevant Seller was actively involved in the course of his/her
                  employment
                  during the Relevant Period.

              

      

       

      
        	
                6.2

              	
                The
                  Founders covenant that they will not for a period of [**] after
                  Completion
                  and [**] covenant that they will not for a period of [**] after
                  Completion:

              

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	 	
                6.2.1

              	
                be
                  concerned in any business which is carried on in the Relevant Area,
                  or the
                  Relevant Competitors, and which is competitive or likely to be
                  competitive
                  with any business in which the relevant Seller was actively involved
                  during the course of his/her employment during the Relevant Period
                  and
                  which is carried on by the Company or another Group Company at
                  Completion;

              

      

       

      
        	 	
                6.2.2

              	
                directly
                  or indirectly, whether on his/her own account or on behalf of or
                  in
                  conjunction with any person:

              

      

       

      
        	 	
                (a)

              	
                canvass
                  or solicit business or custom for the provision of any Relevant
                  Services
                  from any Relevant Customer;

              

      

       

      
        	 	
                (b)

              	
                deal
                  with any Relevant Customer in respect of the provision or potential
                  provision of any Relevant Services;

              

      

       

      
        	 	
                (c)

              	
                canvass
                  or solicit business or custom for the provision of any Relevant
                  Services
                  from any Prospective Customer;

              

      

       

      
        	 	
                (d)

              	
                deal
                  with any Prospective Customer in respect of the provision or potential
                  provision of any Relevant Services;

              

      

       

      
        	 	
                (e)

              	
                induce
                  or attempt to induce any Relevant Supplier to cease to supply,
                  or to
                  restrict or vary the terms of supply to, the Company or the Subsidiary
                  Undertaking or otherwise interfere with the relationship between
                  a
                  Relevant Supplier and the Company or the Subsidiary
                  Undertaking;

              

      

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (f)

              	
                induce
                  or attempt to induce any Relevant Distributor to cease to distribute,
                  or
                  to restrict or vary the terms of any distribution agreements in
                  relation
                  to, the Company's or the Subsidiary Undertaking's products or otherwise
                  interfere with the relationship between a Relevant Distributor
                  and the
                  Company or the Subsidiary
                  Undertaking;

              

      

       

      
        	 	
                (g)

              	
                induce
                  or attempt to induce any employee of the Company to leave the employment
                  of the Company or the Subsidiary Undertaking (whether or not this
                  would be
                  a breach of contract by the Relevant
                  Employee).

              

      

       

      
        	
                6.3

              	
                For
                  the purposes of Clause 6.2.1 above, the relevant Seller is concerned
                  in a
                  business if:

              

      

       

      
        	
              	
                6.3.1

              	
                he/she
                  carries it on as a principal or agent;
                  or

              

      

       

      
        	 	
                6.3.2

              	
                he/she
                  is a partner, director, employee, secondee, consultant or agent
                  in, of or
                  to any person who carries on the business;
                  or

              

      

       

      
        	 	
                6.3.3

              	
                (excluding
                  [**] in relation to his employment at the date of this Agreement)
                  he/she
                  has any direct or indirect financial interest (as shareholder or
                  otherwise) in any person who carries on the business;
                  or

              

      

       

      
        	 	
                6.3.4

              	
                (excluding
                  [**] in relation to his employment at the date of this Agreement)
                  he/she
                  is a partner, director, employee, secondee, consultant or agent
                  in, of or
                  to any person who has a direct or indirect financial interest (whether
                  as
                  shareholder or otherwise) in any person who carries on the
                  business.

              

      

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      
        	
                6.4

              	
                The
                  Sellers covenant that at any time during the course of their employment
                  with the Company or the Subsidiary Undertaking or at any time thereafter,
                  they shall not use in connection with any other business any name
                  which
                  includes the name or any part of the name of the Company or the
                  Subsidiary
                  Undertaking or any product name or any colourable imitation of
                  it or
                  them.

              

      

       

      
        	
                6.5

              	
                The
                  Sellers agree that they will not, during the course of their employment
                  with the Company or the Subsidiary Undertaking or at any time
                  thereafter:

              

      

       

      
        	 	
                6.5.1

              	
                disclose
                  any Confidential Information to any person, firm, corporation,
                  or other
                  entity for any reason or purpose
                  whatsoever;

              

      

       

      
        	 	
                6.5.2

              	
                copy
                  any Confidential Information, except as reasonably required in
                  the course
                  of their duties for the Company or the Subsidiary Undertaking;
                  or

              

      

       

      
        	 	
                6.5.3

              	
                make
                  use of any Confidential Information for their own purposes or for
                  the
                  benefit of any person, firm, corporation or other entity, other
                  than the
                  Subsidiary Undertaking, under any circumstances.
                  

              

      

       

      
        	
                6.6

              	
                The
                  covenants in this clause are for the benefit of the Company itself
                  and as
                  trustee for the Subsidiary
                  Undertaking.

              

      

       

      
        	
                6.7

              	
                Each
                  of the restrictions in each paragraph or clause above are enforceable
                  independently of each of the others and their validity is not affected
                  if
                  any of the others is invalid. If any of those restrictions is void
                  but
                  would be valid if some part of the restriction (including part
                  of any of
                  the definitions in Clause 6.1) were deleted, the restriction in
                  question
                  applies with such modification as may be necessary to make it valid.
                  

              

      

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	
                7

              	
                FSA
                  Application Covenant

              

      

       

      
        	
                7.1

              	
                The
                  Sellers hereby acknowledge and agree that the FSA has advised in
                  its email
                  to the Sellers of 2 April 2008 that FSA authorisation should be
                  sought.

              

      

      

      
        	
                7.2

              	
                The
                  Founders hereby covenant that they will use their reasonable endeavours
                  to
                  assist the Buyer in any and all respects in relation to the application
                  to
                  the FSA for authorisation and will take all reasonable actions
                  necessary
                  to ensure that such application for authorisation is submitted,
                  including
                  (but not limited to) providing all documentation and information
                  required
                  in respect of the application which is either in any of their possessions,
                  power or control. 

              

      

       

      
        	
                7.3

              	
                In
                  the event that the Sellers breach the covenant set out in Clause
                  7.2, the
                  Buyer has the right to set off any of the Deferred Consideration
                  owing to
                  the Sellers pursuant to Schedule 6 against any and all losses suffered
                  by
                  it in relation to such breach.

              

      

       

      
        	
                8

              	
                Payments 

              

      

       

      
        	
                8.1

              	
                The
                  Buyer shall pay all payments due to the Sellers by telegraphic
                  transfer of
                  immediately available funds to the account of the Sellers' Solicitors
                  on
                  behalf of the Sellers at: 

              

      

       

      
        	
                Bank:
                  

              	
                [**]

              
	
                Sort
                  code:

              	
                [**]

              
	
                Account
                  name:

              	
                [**]

              
	
                Account
                  number: 

              	
                [**]

              

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      or
        to any
        other account of which the Sellers Solicitor's give the Buyer at least three
        Business Days' notice from time to time.

       

      
        	
                8.2

              	
                Payment
                  of any sum to the Sellers' Solicitors will discharge the obligations
                  of
                  the Buyer to pay the sum in question and the Buyer shall not be
                  concerned
                  to see the application of the monies so
                  paid.

              

      

       

      
        	
                9

              	
                Assignment 

              

      

       

      No
        party
        may assign the benefit of any provision in this Agreement save for an assignment
        by the Buyer to any member of the Buyer's Group provided that any such
        assignment to any member of the Buyer's Group is made on terms that if such
        assignee would cease to be a member of the Buyer's Group, such rights will
        further be assigned to the Buyer or to another member of the Buyer's
        Group.

       

      
        	
                10

              	
                Announcements
                  and Confidentiality 

              

      

       

      
        
          	
                  10.1

                	
                  Save
                    as provided in Clause 10.2 no announcement or circular or disclosure
                    in
                    connection with or concerning this Agreement or any matter arising
                    from
                    the Agreement shall be made or issued by or on behalf of the
                    Sellers
                    without the prior written consent of the Buyer which shall not
                    be
                    unreasonably withheld or delayed. 

                

        

         

      

      
        	
                10.2

              	
                Clause
                  10.1 shall not apply to any disclosure made by the Sellers to their
                  professional advisers, or to any announcement or disclosure required
                  by
                  the laws of any relevant jurisdiction or by any competent regulatory
                  or
                  governmental body or securities exchange in any relevant
                  jurisdiction.

              

      

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      
        	
                11

              	
                Costs

              

      

       

      
        	
                11.1

              	
                Except
                  as set out in Clause 11.2, each Party shall bear its own costs
                  and
                  expenses in connection with the preparation, negotiation, execution
                  and
                  performance of this Agreement and the documents referred to in
                  it. 

              

      

       

      
        	
                11.2

              	
                The
                  Buyer shall pay all stamp and other transfer duties and registration
                  fees
                  applicable to any document to which it is a Party and which arise
                  as a
                  result of or in consequence of this
                  Agreement.

              

      

       

      
        	12	
                Notices 

              

      

       

      
        	
                12.1

              	
                Any
                  notice, consent or other communication given under this Agreement
                  shall be
                  in writing and in English, and signed by or on behalf of the Party
                  giving
                  it, and shall be delivered by hand or sent by prepaid recorded
                  or special
                  delivery post (or prepaid international recorded airmail if sent
                  internationally) or by fax as follows (and, for the avoidance of
                  doubt,
                  may not be given by e-mail): 

              

      

       

      to
        the Buyer: 

       

      For
        the
        attention of: Office of the General Counsel, NYFIX, Inc

       

      Address:
        100 Wall Street, 24th
        Floor,
        New York NY10005 USA

       

      Facsimile
        number: 001 917 637 1585

       

      To
        the Sellers

       

      At
        their
        respective addresses set out in Schedule 1 as may be altered from time to
        time
        by notice to the Buyer.

       

      
        	
                12.2

              	
                Any
                  Party may from time to time notify the others of any other address
                  or fax
                  number for the receipt of notices. Any such change shall take effect
                  five
                  Business Days after notice of the change is received or (if later)
                  on the
                  date (if any) specified in the notice as the date on which the
                  change is
                  to take place. 

              

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        	
                12.3

              	
                Any
                  notice, consent or other communication given in accordance with
                  Clause
                  12.1 and received after 5.30 p.m. on a Business Day, or on any
                  day which
                  is not a Business Day, shall for the purposes of this Agreement
                  be
                  regarded as received on the next Business Day. 

              

      

       

      
        	
                13

              	
                Exclusion
                  of Contracts (Rights of Third Parties) Act
                  1999

              

      

       

      
        	
                13.1

              	
                The
                  Parties to this Agreement do not intend any of its terms to be
                  enforceable
                  pursuant to the Contracts (Rights of Third Parties) Act 1999 by
                  any person
                  who is not a party to this Agreement save for the provisions of
                  Clause
                  6.

              

      

       

      
        	
                13.2

              	
                Notwithstanding
                  any other provision of this Agreement, the Sellers and the Buyer
                  may by
                  agreement in writing rescind or vary any of the provisions of this
                  Agreement without the consent of the Company or the Subsidiary
                  Undertaking
                  and accordingly section 2(1) of the Contracts (Rights of Third
                  Parties)
                  Act 1999 shall not apply.

              

      

       

      
        	
                14

              	
                Further
                  Assurance 

              

      

       

      
        	 	
                At
                  or after Completion, the Sellers shall at the Buyer's cost execute
                  all
                  such documents and do or cause to be done all such other things
                  as the
                  Buyer may from time to time reasonably require in order to vest
                  in the
                  Buyer legal title to and the benefit of the Shares and otherwise
                  to give
                  full effect to this Agreement.

              

      

       

      
        	
                15

              	
                No
                  Merger

              

      

       

      The
        provisions of this Agreement shall remain in full force and effect as regards
        any of its unperformed or unimplemented provisions including, without
        limitation, all guarantees, warranties and undertakings notwithstanding
        Completion. 

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      
        	
                16

              	
                Counterparts 

              

      

       

      This
        Agreement may be executed in any number of counterparts and by the Parties
        to it
        on separate counterparts, each of which shall be an original but all of which
        together shall constitute one and the same instrument, and shall not be
        effective until each of the Parties has executed at least one counterpart.
        

       

      
        	
                17

              	
                Waiver

              

      

       

      
        	 	
                No
                  delay or failure by the Buyer or any of the Sellers to exercise
                  any of
                  their respective powers, rights or remedies under this Agreement
                  shall
                  operate as a waiver of them, nor shall any single or partial exercise
                  of
                  any such powers, rights or remedies preclude any further exercise
                  of them.
                  The remedies provided in this Agreement are cumulative and (except
                  as
                  otherwise provided in this Agreement) are not exclusive of any
                  remedies
                  provided by law. A waiver of a breach of any term of this Agreement
                  shall
                  not constitute a waiver of any other breach of this
                  Agreement.

              

      

       

      
        	
                18

              	
                Entire
                  Agreement

              

      

       

      
        	
                18.1

              	
                This
                  Agreement, and the documents referred to in it together constitute
                  the
                  entire agreement and understanding of the Parties and supersede
                  any
                  previous agreement between the Parties relating to the subject
                  matter of
                  this Agreement. 

              

      

       

      
        	
                18.2

              	
                The
                  Buyer acknowledges that no provisions are to be regarded as implied
                  into
                  this Agreement, save for those implied by law and which are not
                  lawfully
                  capable of being excluded. All implied provisions lawfully capable
                  of
                  being excluded are hereby excluded for all purposes. 

              

      

       

      
        	
                18.3

              	
                In
                  entering into this Agreement and subject to Part 2 of Schedule
                  3, the
                  Buyer accepts that it is not relying on any representation, warranty
                  or on
                  any other information or statement of opinion or belief, whether
                  written
                  or oral, express or implied, which is not expressly comprised within
                  or
                  the subject of any of the
                  Warranties.

              

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      
        	
                18.4

              	
                Except
                  as otherwise permitted by this Agreement, no change to its terms
                  shall be
                  effective unless it is in writing and signed by on or behalf of
                  each of
                  the Parties.

              

      

       

      
        	
                19

              	
                Governing
                  Law, Jurisdiction and Service Of
                  Proceedings

              

      

       

      
        	
                19.1

              	
                This
                  Agreement shall be governed by and construed in accordance with
                  the law of
                  England and Wales. Each Party irrevocably submits to the exclusive
                  jurisdiction of the courts of England and Wales over any claim,
                  dispute or
                  matter arising under or in connection with this Agreement. 

              

      

       

      
        	
                19.2

              	
                Each
                  Party irrevocably waives any objection which it may have now or
                  later to
                  proceedings being brought in the courts of England and Wales and
                  any claim
                  that proceedings have been brought in an inconvenient forum. Each
                  Party
                  further irrevocably agrees that a judgment in any proceedings brought
                  in
                  the courts of England and Wales shall be conclusive and binding
                  upon each
                  Party and may be enforced in the courts of any other
                  jurisdiction.

              

      

       

      
        	
                19.3

              	
                Nothing
                  in this Agreement shall affect the right to serve process in any
                  manner
                  permitted by law. 

              

      

       

      
        	
                20

              	
                Guarantee

              

      

       

      
        	
                20.1

              	
                The
                  Guarantor unconditionally and irrevocably guarantees to the Sellers
                  to
                  discharge on written demand by the Sellers payment of all sums
                  payable by
                  the Buyer under Schedule 6 of this Agreement (such payment obligations
                  of
                  the Buyer being referred to below as "Obligations").

              

      

       

      
        	
                20.2

              	
                The
                  Sellers must make written demand against the Buyer but may make
                  demand
                  upon the Guarantor in respect of any of the Obligations if not
                  satisfied
                  by the Buyer within 30 Working Days of the Sellers' demand against
                  the
                  Buyer. 

              

      

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      
        	
                20.3

              	
                This
                  Agreement is a continuing security and shall remain in full force
                  and
                  effect until all of the Obligations have been discharged and performed
                  in
                  full. 

              

      

       

      
        	
                20.4

              	
                The
                  provisions of this Clause 20 are in addition to any other guarantee
                  or
                  security, present or future, held by the Sellers in respect of
                  the
                  Obligations or any of them, and shall not merge with or prejudice
                  such
                  other guarantee or security, or any contractual or legal rights
                  of the
                  Sellers. 

              

      

       

      THIS
        AGREEMENT
        has been
        executed by or on behalf of the Parties on the date at the top of page
        1. 

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      Schedule
        1

       

      Particulars
        of Sellers and apportionment of Consideration

       

      
        
          	
                  Column
                    1

                	 	
                  Column
                    2

                	 	
                  Column
                    3

                	 
	 	 	 	 	 	 
	
                  Seller's
                    name and address

                	 	Number
                  of shares held by Seller	 	Seller's
                  proportion of the Consideration	 
	 	 	 	 	 	 	 	 
	
                  Karl
                    Spencer Breeze

                  

                    Bay
                      Cottage

                    Bertie
                      Lane

                    Uffington

                    Stamford

                    PE9
                      4SZ

                  

                	 	399	 	30.9783%	
                   

                
	 	 	 	 	 	 	 	 
	
                  Amy
                    Jane Muddimer

                  

                    2
                      Peplins Way

                    Brookmans
                      Park

                    Hertfordshire

                    AL9
                      7UU

                  

                	 	
                  399

                	 	30.9783%	
                   

                
	 	 	 	 	 	 	 	 
	
                  Paul
                    Denby Scott

                   

                  
                    2
                      Peplins Way

                    Brookmans
                      Park

                    Hertfordshire

                    AL9
                      7UU

                  

                	 	399	 	30.9782%	
                   

                
	 	 	 	 	 	 	 	 
	
                  Andrew
                    Southon

                  

                    38
                      Thorley Hill

                    Bishops
                      Stortford

                    Hertfordshire

                    CM23
                      3LZ

                  

                	 	65	 	5.0466%	
                   

                
	 	 	 	 	 	 	 	 
	
                  Matthew
                    George Barkway

                  

                    54
                      Manor Road

                    Chelmsford

                      Essex

                      CM2
                        0EP

                    

                  

                	 	26	 	2.0186%	
                   

                

        

      

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      Schedule
        2

       

      Part
        1

      Details
        of the Company

       

      
        
          
            
              	
                      Date
                        and place of incorporation 

                    	
                      :

                    	
                      Incorporated
                        on 14 August 2002 in England and Wales

                    
	 	 	 
	
                      Registered
                        number  

                    	
                      :

                    	
                      04511314

                    
	 	 	 
	
                      Registered
                        office   

                    	
                      :

                    	
                      Financial
                        House, 14 Barclay Road, Croydon, Surrey, CRO 1JN

                    
	 	 	 
	
                      Authorised
                        share capital  

                    	
                      :

                    	
                      £100,000
                        divided into 100,000 ordinary shares of £1.00 each and £10,000 divided
                        into 1,000,000 ordinary B shares of £0.01 each

                    
	 	 	 
	
                      Issued
                        share capital  

                    	
                      :

                    	
                      £1288.00
                        divided into 1,288 ordinary shares of £1.00 each

                    
	 	 	 
	
                      Directors   

                    	
                      :

                    	
                      1) Matthew
                        George Barkway

                       

                      2) Karl
                        Spencer Breeze

                       

                      3) Amy
                        Jane Muddimer

                       

                      4) Paul
                        Denby Scott

                    
	 	 	 
	
                      Secretary   

                    	
                      :

                    	
                      Amy
                        Jane Muddimer

                    
	 	 	 
	
                      Shareholders    

                    	
                      :

                    	
                      1) Karl
                        Spencer Breeze (399 Ordinary Shares) 

                       

                      2) Amy
                        Jane Muddimer (399 Ordinary Shares) 

                       

                      3) Paul
                        Denby Scott (399 Ordinary Shares)

                       

                      4) Andrew
                        Southon (65 Ordinary Shares)

                       

                      5) Matthew
                        George Barkway (26 Ordinary Shares)

                    
	 	 	 
	
                      Accountants   

                    	
                      :

                    	
                      The
                        McCay Partnership

                    
	 	 	 
	
                      Accounting
                        reference date  

                    	
                      :

                    	
                      31
                        December

                    
	 	 	 
	
                      Tax
                        residence   

                    	
                      :

                    	
                      England
                        and Wales

                    

            

          

        

        

          
            
              
              

            

            
              30

              
                

              

            

            
              
              

            

          

        

         

      

      Part
        2

      Details
        of the Subsidiary Undertaking

       

      
        	
                Date
                  and place of incorporation 

              	
                :

              	
                27
                  April 2006, New York State

              
	 	 	 
	
                Registered
                  number  

              	
                :

              	
                N/A

              
	 	 	 
	
                Registered
                  office   

              	
                :

              	
                14
                  Wall Street, New York, NY 10005

              
	 	 	 
	
                Authorised
                  share capital   

              	
                :

              	
                200
                  Shares of no par value

              
	 	 	 
	
                Issued
                  share capital  

              	
                :

              	
                100
                  Shares of no par value

              
	 	 	 
	
                Directors   

              	
                :

              	
                Andrew
                  Southon (President)

              
	 	 	 
	
                Secretary   

              	
                :

              	
                Karl
                  Breeze

              
	 	 	 
	
                Shareholder   

              	
                :

              	
                FIX
                  City Limited

              
	 	 	 
	
                Accounting
                  reference date  

              	
                :

              	
                31st
                  December

              
	 	 	 
	
                Tax
                  residence   

              	
                :

              	
                New
                  York

              

      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      Schedule
        3

       

      Part
        1

      Warranties

       

      
        	1	
                SHARES
                  AND OTHER SECURITIES OF THE
                  COMPANY

              

      

       

      
        	1.1	
                The
                  Shares represent the entire issued share capital of the
                  Company.

              

      

       

      
        	
                1.2

              	
                The
                  shareholders of Company listed in Part 1 of Schedule 2 are and
                  will at
                  Completion be the holders of the shares set out against their names
                  and
                  have the right to sell such shares.

              

      

       

      
        	
                1.3

              	
                The
                  Company will not, at Completion, have any debenture or any other
                  security
                  in issue.

              

      

       

      
        	
                1.4

              	
                No
                  person has the right or has claimed to have a subsisting right
                  (whether
                  exercisable now or at a future date and whether contingent or not)
                  to
                  subscribe for, or to convert any security into any shares, debentures
                  or
                  other securities of the Company, including pursuant to an option
                  or
                  warrant.

              

      

       

      
        	
                1.5

              	
                The
                  Company has not at any time purchased its own shares or redeemed
                  or
                  forfeited any shares, or agreed to do so, or granted an option
                  whereby it
                  might become liable to do so.

              

      

       

      
        	
                1.6

              	
                There
                  will not at Completion be any Encumbrance over any issued or unissued
                  shares in the capital of the Company and there is no subsisting
                  agreement
                  to create any such Encumbrance.

              

      

       

      
        	
                1.7

              	
                No
                  share in the capital of the Company has been allotted at a discount
                  or
                  otherwise than as fully paid.

              

      

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      
        	2	
                THE
                  COMPANY AND THE SUBSIDIARY
                  UNDERTAKING

              

      

       

      
        	
                2.1

              	
                Save
                  for the Subsidiary Undertaking, the Company has no interest in
                  nor is it
                  under a subsisting obligation to acquire any interest in any shares,
                  debentures or other securities of any other body
                  corporate.

              

      

       

      
        	
                2.2

              	
                The
                  details shown in Parts 1 and 2 of Schedule 2 relating to the Company
                  and
                  the Subsidiary Undertaking are accurate and complete in all
                  respects.

              

      

       

      
        	
                2.3

              	
                A
                  true and complete copy of the Accounts and of the memorandum and
                  articles
                  of association of the Company and the Subsidiary Undertaking are
                  annexed
                  to the Disclosure Letter.

              

      

       

      
        	
                2.4

              	
                The
                  whole of the issued share capital of the Subsidiary Undertaking
                  is
                  beneficially owned by the Company free from any
                  Encumbrance.

              

      

       

      
        	
                2.5

              	
                The
                  Subsidiary Undertaking has never been a subsidiary of any body
                  corporate
                  other than the Company and the Company has never been a subsidiary
                  of any
                  body corporate.

              

      

       

      
        	
                2.6

              	
                No
                  person is a shadow director of the Company or the Subsidiary Undertaking
                  who is not treated as a director for all the purposes of the
                  Act.

              

      

       

      
        	3	
                AUTHORITY
                  AND CAPACITY OF THE SELLERS

              

      

       

      
        	
                3.1

              	
                Each
                  of the Sellers has all necessary right, power and authority to
                  enter into
                  and perform its obligations under this Agreement and each document
                  to be
                  executed at or before Completion.

              

      

       

      
        	
                3.2

              	
                This
                  Agreement constitutes (or will when executed constitute) binding
                  and
                  enforceable obligations on the Sellers in accordance with its
                  terms.

              

      

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      
        	4	
                THE
                  ACCOUNTS 

              

      

       

      
        	4.1	
                The
                  Accounts:

              

      

       

      
        	
              	4.1.1	
                have
                  been were prepared under the historical cost
                  convention;

              

      

       

      
        	 	
                4.1.2

              	
                have
                  been prepared in accordance with applicable Statements of Standard
                  Accounting Practice, Financial Reporting Standards, statements
                  from the
                  Urgent Issues Task Force, other generally accepted accounting practices
                  in
                  the United Kingdom and the Act;

              

      

       

      
        	 	
                4.1.3

              	
                are
                  not affected by any material unusual or non-recurring items and
                  do not
                  include material transactions not normally undertaken by the
                  Company;

              

      

       

      
        	 	
                4.1.4

              	
                make
                  full provision or reserve for all actual liabilities and contain
                  proper
                  provision or reserve for all contingent liabilities or capital
                  or
                  burdensome commitments.

              

      

       

      
        	
                4.2

              	
                The
                  Accounts give a true and fair view of the state of affairs of the
                  Company
                  as at the end of each financial year to which they relate and of
                  its
                  profit or loss for the period ended on that
                  date.

              

      

       

      
        	
                4.3

              	
                Since
                  their incorporation, neither the Company nor the Subsidiary Undertaking
                  have engaged auditors.

              

      

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      
        	5	
                BORROWINGS
                  AND BANK ACCOUNTS

              

      

       

      
        	
                5.1

              	
                Neither
                  the Company nor the Subsidiary Undertaking will not at Completion
                  have
                  outstanding any borrowing or indebtedness, in the nature of borrowing,
                  including any bank overdraft.

              

      

       

      
        	
                5.2

              	
                There
                  are no Encumbrances over the assets of either of the Company or
                  the
                  Subsidiary Undertaking.

              

      

       

      
        	6	
                POSITION
                  SINCE THE ACCOUNTS DATE

              

      

       

      
        	6.1	
                Since
                  the Accounts Date:

              

      

       

      
        	 	
                6.1.1

              	
                no
                  resolution of the Company or the Subsidiary Undertaking in general
                  meeting
                  has been passed;

              

      

       

      
        	 	
                6.1.2

              	
                no
                  change in the accounting reference period of the Company or the
                  Subsidiary
                  Undertaking has been made; 

              

      

       

      
        	 	
                6.1.3

              	
                save
                  as referred to in the Disclosure Letter, neither the Company nor
                  the
                  Subsidiary Undertaking has declared or paid any
                  dividend;

              

      

       

      
        	
              	
                6.1.4

              	
                the
                  business of the Company and the Subsidiary Undertaking has been
                  carried on
                  in the ordinary and usual course, without any material interruption
                  or
                  alteration in its nature, scope or manner, and so as to maintain
                  the same
                  as a going concern; 

              

      

       

      
        	 	
                6.1.5

              	
                there
                  has been no material adverse change (nor is any material adverse
                  change
                  expected) in the turnover or profit margins or financial position
                  of the
                  Company or the Subsidiary Undertaking or in the assets or liabilities
                  of
                  the Company or the Subsidiary Undertaking as compared with the
                  position
                  disclosed by the Accounts and all amounts received by the Company
                  or the
                  Subsidiary Undertaking have been deposited with the Company's bankers
                  and
                  appear in the appropriate books of
                  account;

              

      

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      
        	 	
                6.1.6

              	
                neither
                  the Company nor the Subsidiary Undertaking has not borrowed or
                  raised any
                  money or taken any financial facility which exceeded £50,000;
                  and

              

      

       

      
        	 	
                6.1.7

              	
                neither
                  the Company nor the Subsidiary Undertaking has paid any bonuses
                  of any
                  kind.

              

      

       

      
        	
                6.2

              	
                The
                  IOI Revenues (as defined in Schedule 6) for 2007 are true, accurate
                  and
                  not misleading.

              

      

       

      
        	7	
                CONDUCT
                  OF BUSINESS

              

      

       

      
        	
                7.1

              	
                So
                  far as the Sellers are aware, the Company and its directors, officers,
                  employees and agents (during the course of their duties in relation
                  to the
                  Company) have complied in all material respects with all legislation
                  of
                  the United Kingdom applicable to the Company. 

              

      

       

      
        	
                7.2

              	
                The
                  Subsidiary Undertaking's only activity has been acting as marketing
                  agent
                  for the Company. The Subsidiary Undertaking has not entered into
                  any
                  contracts with customers and charges the Company for its services
                  on a
                  cost plus fee basis.

              

      

       

      
        	8	
                CONTRACTS
                  AND LIABILITIES, TERMS OF
                  TRADE

              

      

       

      
        	
                8.1

              	
                True
                  and complete copies of all of the material contracts or arrangements
                  entered into by the Company and/or the Subsidiary Undertaking that
                  remain
                  to be fulfilled as performed in whole or in part have been supplied
                  to the
                  Buyer.

              

      

       

      
        	
                8.2

              	
                In
                  the case of any contract entered into by the Company and/or the
                  Subsidiary
                  Undertaking and disclosed to the Buyer as having been entered into
                  orally,
                  such contracts are believed to be valid; no party to any such contract
                  has
                  given any indication that the terms of such contract are different
                  from
                  the Company's and/or Subsidiary Undertakings then current standard
                  terms;
                  that such contracts have been invoiced in accordance with the then
                  current
                  standard terms and no client of the Company and/or the Subsidiary
                  Undertaking has failed to make payment as though it had entered
                  into a
                  contract on the Company's or the Subsidiary Undertakings then current
                  standard terms. 

              

      

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

    

    
      	
              8.3

            	
              Neither
                the Company nor the Subsidiary Undertaking has received any claim
                or
                assertion that any limitations of liability clause in the Company's
                or the
                Subsidiary Undertaking's contracts entered into with their clients
                before
                Completion is invalid, void or voidable.

            

    

     

    Contracts

     

    
      	
              8.4

            	
              Neither
                the Company nor the Subsidiary Undertaking is a party to any mortgage,
                charge, lien or debenture; any contract of guarantee, indemnity or
                suretyship; any joint venture, partnership or consortium agreement
                or
                arrangement; any agency or distributorship agreement; any contract
                which
                is not on an arm's-length basis.

            

    

     

    
      	
              8.5

            	
              No
                power of attorney has been granted by the Company or the Subsidiary
                Undertaking which may be effective or in force at any time after
                the date
                of this Agreement.

            

    

     

    Validity
      of Agreements

     

    
      	
              8.6

            	
              Neither
                the Company nor the Subsidiary Undertaking is in default under, or
                has
                knowingly committed any breach of any of the terms of or done, or
                omitted
                to do, anything whereby any agreement, instrument or arrangement
                to which
                it is a party is liable to be prematurely terminated, rescinded,
                avoided
                or terminated by any other party, or whereby the terms of such agreement,
                instrument or arrangement are liable to be altered without the consent
                and
                to the detriment of the Company or the Subsidiary Undertaking and
                no
                threat or claim of any such default or breach or notice of termination
                has
                been made or given and is outstanding against the Company or the
                Subsidiary Undertaking. 

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    
      	
              8.7

            	
              No
                party to any agreement with, or under an obligation to, the Company
                or the
                Subsidiary Undertaking is in default under such agreement or obligation,
                and there are no circumstances known to give rise to such a default.
                

            

    

     

    
      	
              8.8

            	
              The
                Company has existing agreements with all of its clients and such
                agreements are in full force and
                effect.

            

    

     

    
      	9	
              BOOKS,
                RECORDS AND RETURNS

            

    

     

    
      	
              9.1

            	
              The
                register of members, minute books, other statutory books and registers
                and
                all other records required to be kept by the Company under the applicable
                laws and regulations of England and Wales are in the possession and
                ownership or under the control of the Company, have been properly
                kept in
                all material respects and are up-to-date in all material
                respects.

            

    

     

    
      	
              9.2

            	
              No
                claim has been made that any of the books, registers and records
                referred
                to in paragraph 9.1 of this Part 1 of Schedule 3 is incorrect or
                should be
                rectified.

            

    

     

    
      	
              9.3

            	
              So
                far as the Sellers are aware (but without having made any enquiries
                with
                regard to the requirements of the United States), all returns,
                particulars, resolutions and other documents required by the applicable
                laws and regulations of England and Wales or the United States to
                be given
                or delivered by the Company to the registrar of companies or any
                other
                governmental, regulatory or other authority of competent jurisdiction
                have
                been correctly made up and duly given or delivered in all material
                respects.

            

    

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    
      	10	
              LITIGATION

            

    

     

    
      	
              10.1

            	
              So
                far as the Sellers are aware, neither the Company nor the Subsidiary
                Undertaking is engaged in any litigation, arbitration, mediation,
                conciliation, expert determination, adjudication or other dispute
                resolution process, whether as claimant or defendant or in any other
                capacity.

            

    

     

    
      	
              10.2

            	
              So
                far as the Sellers are aware, there are no dispute resolution processes,
                proceedings and other processes or disputes such as are referred
                to in
                paragraph 10.1 pending or threatened by or against the Company or
                the
                Subsidiary Undertaking, and, so far as the Sellers are aware, there
                are no
                circumstances which might give rise to any such dispute resolution
                processes, proceedings and other processes or disputes against the
                Company
                or the Subsidiary Undertaking or against any person for whose acts
                or
                defaults the Company or the Subsidiary Undertaking may be vicariously
                liable or whom the Company or the Subsidiary Undertaking is liable
                to
                indemnify.

            

    

     

    
      	
              10.3

            	
              There
                is no unsatisfied judgement, order or decree of any court or any
                governmental agency outstanding against the Company or the Subsidiary
                Undertaking or which may have an adverse affect upon the Company
                or the
                Subsidiary Undertaking or the whole or part of its business, operations
                assets or liabilities.

            

    

     

    
      	11	
              LIABILITIES

            

    

     

    Neither
      the Company nor the Subsidiary Undertaking will at Completion have any material
      liabilities (actual or contingent) other than (i) those which have arisen in
      the
      ordinary course of business; (ii) those which are provided for in the Accounts
      to the extent that they are actual liabilities and (iii) as set out in the
      Disclosure Letter. 

     

    
      	12	
              EMPLOYEES

            

    

     

    
      	12.1	
              The
                Disclosure Letter contains complete and accurate details
                of:

            

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    
      	 	
              12.1.1

            	
              all
                officers, employees and consultants of the Company and the Subsidiary
                Undertaking;

            

    

     

    
      	 	
              12.1.2

            	
              all
                individuals to whom the Company or the Subsidiary Undertaking has
                made an
                offer of employment or consultancy;

            

    

     

    
      	 	
              12.1.3

            	
              all
                employees of the Company or the Subsidiary Undertaking who may have
                a
                right to return following leave for maternity, incapacity or any
                other
                absence; and

            

    

     

    
      	 	
              12.1.4

            	
              the
                job title of all employees and all remuneration payable and other
                benefits
                which the Company and/or the Subsidiary Undertaking is obliged to
                provide
                (whether now or in the future) to each of its officers, employees
                and
                consultants, or former officers, employees or consultants including
                particulars of all commission, incentive, profit sharing, bonus and
                share
                option schemes which the Company and/or the Subsidiary Undertaking
                has
                operated whether contractually binding on it or not together with
                the
                entitlement to notice of employees and consultants and the length
                of
                continuous employment of employees for the purposes of the Employment
                Rights Act 1996. 

            

    

     

    
      	12.2	
              No
                remuneration or other sum whatsoever is due from the Company or the
                Subsidiary Undertaking to any officer, employee or consultant or
                former
                officer, employee or consultant other than the outstanding part of
                any
                current salaries, commissions and fees which are payable to the present
                officers, employees and consultants.

            

    

     

    
      	12.3	
              No
                variation to any of the terms of employment or consultancy listed
                in the
                Disclosure Letter have been agreed or offered by the Company and/or
                the
                Subsidiary Undertaking and no increases in fees, salaries, wages,
                pension
                contributions or other benefits have been paid or are payable to
                any
                officer, employee or consultant of the Company or the Subsidiary
                Undertaking since the Accounts Date nor has there been any negotiation
                for
                such an increase, nor any notification of any demand for such an
                increase
                on behalf of any officer, employee or consultant.
                

            

    

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    
      	12.4	
              The
                Company and the Subsidiary Undertaking have, in relation to each
                of its or
                their officers, employees and
                consultants:

            

    

     

    
      	 	
              12.4.1

            	
              materially
                complied with its or their statutory and contractual
                obligations;

            

    

     

    
      	 	
              12.4.2

            	
              maintained
                complete and materially accurate records;
                and

            

    

     

    
      	 	
              12.4.3

            	
              conducted
                adequate immigration checks;

            

    

     

    
      	12.4.4	
              None
                of the employees of the Company or the Subsidiary Undertaking has
                given
                notice terminating his or her contract of employment or engagement,
                and
                none of the employees of the Company or the Subsidiary Undertaking
                is
                under notice of dismissal.

            

    

     

    
      	12.4.5	
              No
                dispute has arisen within the last two years between the Company
                and/or
                the Subsidiary Undertaking and any of its employees or former employees
                and there are no present circumstances which are likely to give rise
                to
                any such dispute.

            

    

     

    
      	13	
              PENSIONS
                AND OTHER BENEFITS

            

    

     

    Neither
      the Company nor the Subsidiary Undertaking has ever agreed to establish,
      sponsored, participated in or contributed to any arrangement (whether or not
      closed, funded or approved) for providing pensions or other benefits on, or
      in
      anticipation of, the retirement, death, accident or sickness of any current
      or
      former director or employee of the Company and/or the Subsidiary Undertaking,
      nor has it agreed or announced any proposal to enter into or establish any
      such
      arrangement.

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    
      	14	
              PROPERTY

            

    

     

    
      	 	
              Neither
                the Company nor the Subsidiary Undertaking have owned, used or occupied
                any property other than the
                Property.

            

    

     

    
      	15	
              INSOLVENCY
                WINDING UP ETC

            

    

     

    
      	
              15.1

            	
              No
                order has been made, petition presented, resolution passed or meeting
                convened for the winding up of the Company and/or the Subsidiary
                Undertaking. 

            

    

     

    
      	
              15.2

            	
              No
                petition has been presented for an administration order to be made
                in
                relation to the Company and/or the Subsidiary Undertaking, nor has
                any
                such order been made. 

            

    

     

    
      	
              15.3

            	
              No
                receiver (including an administrative receiver) has been appointed
                of the
                whole or any part of any of the property, assets and/or undertaking
                of the
                Company and/or the Subsidiary
                Undertaking.

            

    

     

    
      	
              15.4

            	
              No
                composition in satisfaction of the debts of the Company and/or the
                Subsidiary Undertaking, or scheme of arrangement of its affairs,
                or
                compromise or arrangement between it and its creditors and/or members
                or
                any class of its creditors and/or members, has been proposed, sanctioned
                or approved.

            

    

     

    
      	
              15.5

            	
              No
                distress, distraint, charging order, garnishee order, execution or
                other
                process has been levied or applied for in respect of the whole or
                any part
                of any of the property, assets and/or undertaking of the Company
                and/or
                the Subsidiary Undertaking.

            

    

     

    
      	
              15.6

            	
              No
                event has occurred causing, or which upon intervention or notice
                by any
                third party may cause, any floating charge created by the Company
                and/or
                the Subsidiary Undertaking to crystallise or any charge created by
                it to
                become enforceable, nor has any such crystallisation occurred nor
                is such
                enforcement in process.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    
      	
              15.7

            	
              In
                relation to any property or assets held by the Company and/or the
                Subsidiary Undertaking under any hire purchase, conditional sale,
                chattel
                leasing or retention of title agreement or otherwise belonging to
                a third
                party, no event has occurred which entitles, or which upon intervention
                or
                notice by a third party may entitle, the third party to repossess
                the
                property or assets concerned or terminate the agreement or any licence
                in
                respect of the same. 

            

    

     

    
      	
              15.8

            	
              Each
                of the Company and the Subsidiary Undertaking is able to pay its
                debts
                within the meaning of section 123(1)(e) or section 123(2) of the
                Insolvency Act 1986.

            

    

     

    
      	
              15.9

            	
              Neither
                the Company nor the Subsidiary Undertaking has been party to any
                transaction with any third party or parties which, in the event of
                any
                such third party going into liquidation or an administration order
                or a
                bankruptcy order being made in relation to it or him, would constitute
                (in
                whole or in part) a transaction at an undervalue, a preference, an
                invalid
                floating charge or an extortionate credit transaction or part of
                a general
                assignment of debts, under sections 238 to 245 (inclusive) and sections
                339 to 344 (inclusive) of the Insolvency Act 1986.
                

            

    

     

    
      	15.10	
              None
                of the persons who at present is, or who at any time within the last
                three
                years was, a director or officer of the Company and/or the Subsidiary
                Undertaking is, or at any material time was, subject to any
                disqualification order under the Act (or the acts which it replaced
                or
                consolidated), the Insolvency Act 1985 or the Company Directors
                Disqualification Act 1986.

            

    

     

    
      	
              16

            	
              INTELLECTUAL
                PROPERTY

            

    

     

    
      	16.1	
              Complete
                and accurate particulars are set out in the Disclosure Letter of
                all
                registered Intellectual Property Rights (including applications for
                such
                rights) and material unregistered Intellectual Property Rights owned,
                used
                or held for use by the Company and the Subsidiary
                Undertaking.

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    
      	16.2	
              Complete
                and accurate particulars are set out in the Disclosure Letter of
                all
                licences, agreements, authorisations and permissions (in whatever
                form and
                whether express of implied) under
                which:

            

    

     

    
      	 	
              16.2.1

            	
              the
                Company or the Subsidiary Undertaking uses or exploits Intellectual
                Property Rights owned by any third party;
                or

            

    

     

    
      	 	
              16.2.2

            	
              the
                Company or the Subsidiary Undertaking has licensed or agreed to license
                Intellectual Property Rights to, or otherwise permitted the use of
                any
                Intellectual Property Rights by, any third
                party.

            

    

     

    
      	16.3	
              Except
                as set out in the Disclosure Letter, the Company or the Subsidiary
                Undertaking is the sole legal and beneficial owner of (or applicant
                for)
                the Intellectual Property Rights set out in the Disclosure Letter,
                free
                from all Encumbrances.

            

    

     

    
      	16.4	
              The
                Company and the Subsidiary Undertaking do not require any Intellectual
                Property Rights other than those set out in the Disclosure Letter
                in order
                to carry on their activities.

            

    

     

    
      	16.5	
              The
                Intellectual Property Rights set out in the Disclosure Letter are
                valid,
                subsisting and enforceable and nothing has been done or not been
                done as a
                result of which any of them has ceased or might cease to be valid,
                subsisting or enforceable. In
                particular:

            

    

     

    
      	 	
              16.5.1

            	
              all
                application and renewal fees and other steps required for the maintenance
                or protection of such rights have been paid on time or
                taken;

            

    

     

    
      	 	
              16.5.2

            	
              all
                confidential information (including know-how and trade secrets) owned
                or
                used by the Company or the Subsidiary Undertaking has been kept
                confidential and has not been disclosed to third parties (other than
                parties who have signed written confidentiality undertakings in respect
                of
                such information, details of which are set out in the Disclosure
                Letter);

            

    

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    
      	 	
              16.5.3

            	
              so
                far as the Sellers are aware, no trade mark or domain name identical
                or
                similar to any such rights has been registered, or is being used
                by any
                person in the same or a similar business to that of the Company or
                the
                Subsidiary Undertaking, in any country in which the Company or the
                Subsidiary Undertaking has registered or is using that trade mark,
                or
                domain name; and

            

    

     

    
      	 	
              16.5.4

            	
              there
                are and have been no claims, challenges disputes or proceedings,
                pending
                or threatened, in relation to the ownership, validity or use of such
                rights.

            

    

     

    
      	16.6	
              Nothing
                is due to be done within 30 days of Completion the omission of which
                would
                jeopardise the maintenance or prosecution of any of the Intellectual
                Property Rights owned or used by the Company or the Subsidiary Undertaking
                that are registered or the subject of an application for registration.
                

            

    

     

    
      	16.7	
              So
                far as the Seller's are aware, there has been no infringement by
                any third
                party of any of the Intellectual Property Rights set out in the Disclosure
                Letter, nor any third party breach of confidence, passing off or
                actionable act of unfair competition in relation to the business
                and
                assets of the Company or the Subsidiary Undertaking, and no such
                infringement, breach of confidence, passing off or actionable act
                of
                unfair competition is current or
                anticipated.

            

    

     

    
      	16.8	
              The
                Sellers warrant on an ongoing basis with respect to the Sellers'
                Intellectual Property owned by them, that, at the Completion Date
                that the
                Seller's Intellectual Property:

            

    

     

    
      	 	
              16.8.1

            	
              has
                not been copied wholly or substantially from any other source, and
                that
                the use by the Company, the Subsidiary Undertaking or the Seller
                of the
                rights assigned to it will not infringe the rights of any third party;
                and
                

            

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    
      	 	
              16.8.2

            	
              have
                not been licensed or assigned to any third
                party.

            

    

     

    
      	16.9	
              The
                agreements and licences set out in the Disclosure
                Letter:

            

    

     

    
      	
            	16.9.1	
              are
                valid and binding;

            

    

     

    
      	 	
              16.9.2

            	
              have
                not been the subject of any breach or default by any party or of
                any event
                which, with the giving of notice or lapse of time, would constitute
                a
                default; and

            

    

     

    
      	 	
              16.9.3

            	
              are
                not the subject of any claim, dispute or proceeding, pending or
                threatened.

            

    

     

    
      	16.10	
              A
                Change of Control of the Company or the Subsidiary Undertaking will
                not
                result in the termination of or materially affect any of the Intellectual
                Property Rights set out in the Disclosure
                Letter.

            

    

     

    
      	16.11	
              The
                activities of the Company and the Subsidiary Undertaking and of any
                licensee of Intellectual Property Rights granted by the Company or
                any of
                the Subsidiaries:

            

    

     

    
      	 	
              16.11.1

            	
              have
                not infringed, do not infringe and are not likely to infringe the
                Intellectual Property Rights of any third party;
                or

            

    

     

    
      	 	
              16.11.2

            	
              have
                not constituted, do not constitute and are not likely to constitute
                any
                breach of confidence, passing off or act of unfair competition;
                or

            

    

     

    
      	 	
              16.11.3

            	
              have
                not given and do not give rise to any obligation to pay any royalty,
                fee,
                compensation or any other sum
                whatsoever.

            

    

     

    
      	
              17

            	
              INFORMATION
                TECHNOLOGY

            

    

     

    
      	17.1	
              The
                definitions in this paragraph apply in this
                agreement.

            

    

     

    IT
      System:
      all
      computer hardware (including network and telecommunications equipment) and
      software (including associated user manuals and other related documentation)
      owned, used, leased or licensed by or to the Company or the Subsidiary
      Undertaking.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    IT
      Contracts:
      all
      arrangements and agreements under which any third party provides any element
      of,
      or services relating to, the IT System, including leasing, hire purchase,
      licensing, maintenance and services agreements.

     

    
      	17.2	
              Complete
                and accurate particulars of the IT System and all IT Contracts are
                set out
                in the Disclosure Letter.

            

    

     

    
      	17.3	
              Except
                as provided in the IT Contracts, the Company and the Subsidiary
                Undertaking own the IT System free from Encumbrances. The Company
                and the
                Subsidiary Undertaking have obtained all necessary rights from third
                parties to enable them to make exclusive and unrestricted use of
                the IT
                System.

            

    

     

    
      	17.4	
              The
                IT Contracts are valid and binding and no act or omission has occurred
                that would constitute a breach of any such
                contract.

            

    

     

    
      	17.5	
              There
                are and have been no claims, disputes or proceedings arising or threatened
                under any IT Contracts.

            

    

     

    
      	17.6	
              None
                of the IT Contracts is liable to be terminated or materially affected
                by a
                Change of Control of the Company and/or the Subsidiary
                Undertaking.

            

    

     

    
      	17.7	
              The
                elements of the IT System:

            

    

     

    
      	 	
              17.7.1

            	
              are
                functioning properly and materially in accordance with all applicable
                specifications;

            

    

     

    
      	 	
              17.7.2

            	
              have
                not been materially defective or materially failed to function during
                the
                last 2 years;

            

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    
      	 	
              17.7.3

            	
              have
                sufficient capacity and performance to meet the current and foreseeable
                business requirements of the Company and the Subsidiary Undertaking
                subject to the matters identified in the model attached as Appendix
                1;
                and

            

    

     

    
      	 	
              17.7.4

            	
              have
                been satisfactorily and regularly maintained and the IT System has
                the
                benefit of appropriate maintenance and support
                agreements.

            

    

     

    
      	17.8	
              The
                Company and the Subsidiary Undertaking have implemented appropriate
                procedures, for ensuring the integrity and security of the IT System
                and
                the confidentiality and integrity of all data stored in
                it.

            

    

     

    
      	17.9	
              The
                Company and the Subsidiary Undertaking have in place a disaster recovery
                plan which is documented. A copy of the plan is attached to the Disclosure
                Letter.

            

    

     

    
      	
              18

            	
              DATA
                PROTECTION

            

    

     

    
      	
              18.1

            	
              No
                personal data have been transferred outside the European Economic
                Area.

            

    

     

    
      	18.2	
              The
                Company and the Subsidiary Undertaking
                have:

            

    

     

    
      	 	
              18.2.1

            	
              complied
                in all respects with the Data Protection Act 1984 and the Data Protection
                Act 1998 (together, the "Act");
                and

            

    

     

    
      	 	
              18.2.2

            	
              so
                far as the Sellers are aware but without having made any further
                enquiries, established the procedures necessary to ensure continued
                compliance with such legislation.

            

    

     

    
      	18.3	
              Neither
                the Company nor the Subsidiary Undertaking have received any notice
                or
                complaint under the Data Protection Act 1998 alleging non-compliance
                with
                the Act.

            

    

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    
      	18.4	
              The
                Company and the Subsidiary Undertaking have complied with their
                obligations under the Privacy and Electronic Communications (EC Directive)
                Regulations 2003 in respect of the use of electronic communications
                for
                direct marketing purposes. 

            

    

     

    
      	
              19

            	
              INSURANCES

            

    

     

    
      	
              19.1

            	
              Copies
                of all insurance policies maintained by the Company and the Subsidiary
                Undertaking are attached to the Disclosure
                Letter.

            

    

     

    
      	
              19.2

            	
              So
                far as the Sellers are aware, each of the insurance policies maintained
                by
                the Company or the Subsidiary Undertaking is valid and enforceable
                and is
                not void or voidable. So far as the Sellers are aware, the Company
                or the
                Subsidiary Undertaking has not done anything or omitted to do anything
                which might make of its insurance policies void or
                voidable.

            

    

     

    
      	
              19.3

            	
              No
                claim is outstanding under any of the insurance policies and so far
                as the
                Sellers are aware no matter exists which might give rise to a claim
                under
                any of the insurance policies.

            

    

     

    
      	
              20

            	
              INFORMATION
                SUPPLIED

            

    

     

    
      	 	
              All
                information contained in this Agreement and the Disclosure Letter is true
                and accurate in all material
                respects.

            

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    Part
      2

    

    Limitations
      on Sellers' Liability

    

    
      	1.	
              Financial
                Limits

            

    

     

    
      	1.1	
              The
                Sellers shall not be liable in respect of any Warranty Claim or Tax
                Covenant Claim except to the extent that they have a liability in
                respect
                of that Warranty Claim or Tax Covenant Claim in excess of £2,500,
                excluding any liability for costs and interest, in which event, subject
                to
                paragraph 1.2, the Buyer shall be entitled to claim the whole amount
                of
                such Warranty Claim or Tax Covenant Claim and not merely the
                excess. 

            

    

     

    
      	1.2	
              The
                Sellers shall not be liable in respect of any Warranty Claim (but
                excluding any Warranty Claim in respect of breach of any of the Tax
                Warranties) unless they have an aggregate liability in respect of
                all such
                Warranty Claims (excluding all Warranty Claims for which the Sellers
                have
                no liability by reason of paragraph 1.1 and excluding any Warranty
                Claim
                in respect of breach of any of the Tax Warranties) in excess of £2,500,
                excluding any liability for costs and interest,
                in which event the Buyer shall be entitled to claim the whole amount
                of
                such Warranty Claim and not merely the
                excess.

            

    

     

    
      	1.3	
              The
                Sellers shall not be liable in respect of any Warranty Claim in respect
                of
                breach of any of the Tax Warranties or Tax Covenant Claim unless
                they have
                an aggregate liability in respect of all such Warranty Claims (excluding
                all Warranty Claims for which the Sellers have no liability by reason
                of
                paragraph 1.1) and Tax Covenant Claims in excess of £2,500, excluding any
                liability for costs and interest, in which event the Buyer shall
                be
                entitled to claim the whole amount of such Warranty Claim and/or
                such Tax
                Covenant Claim and not merely the
                excess.

            

    

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    
      	1.4	
              For
                the purposes of this paragraph 1, a Warranty Claim which is based
                on more
                than one event or circumstance, each of which would separately give
                rise
                to a Warranty Claim, shall be treated as a separate Warranty Claim,
                as the
                case may be, in respect of each event or circumstance but for the
                avoidance of doubt a number of Warranty Claims arising out of the
                same
                circumstances shall be treated as a single Warranty Claim provided
                that
                the Buyer shall not be entitled to recover Losses in respect of any
                Warranty Claim where to do so would involve recovery more than once
                in
                respect of the same loss or damage.

            

    

     

    
      	1.5	
              The
                aggregate liability of the Founders for all Warranty Claims and Tax
                Covenant Claims, any liability for costs and interest, shall not
                exceed
                the Consideration paid and payable to the Founders. The liability of
                each of Matthew Barkway and Andrew Southon for all Warranty Claims
                and Tax
                Covenant Claims, any liability for costs and interest shall not to
                each of
                them exceed the Consideration paid and
                payable.

            

    

     

    
      	2.	
              Notices

            

    

     

    
      If
        the
        Buyer
        becomes aware of any matter giving rise or likely to give rise to a Warranty
        Claim, save for a Warranty Claim for breach of any of the Tax Warranties,
        it
        shall give written notice to the Sellers as soon as reasonably practicable,
        and
        in any event on or before the date falling [**] after the date on which the
        Buyer becomes aware of that matter and that it gives rise or is likely to
        give
        rise to a Warranty Claim, specifying the matter in reasonable detail and
        the
        nature and a reasonable estimate of the amount of the Warranty Claim or likely
        Warranty Claim.

    

     

    
      	3.	
              Time
                Limits

            

    

     

    
      	3.1	
              The
                Sellers shall not be liable in respect of any Warranty Claim unless
                notice
                of that Warranty Claim is given in accordance with paragraph 2, or
                paragraph 7 of Part 1 of Schedule 4 in the case of a Warranty claim
                for
                breach of any of the Tax Warranties, and in the case of a Warranty
                Claim,
                is received by them:

            

    

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    
      	 	
              3.1.1

            	
              on
                or before the expiry of [**] from the Completion Date in the case
                of a
                Warranty Claim for breach of any of the Warranties other than the
                Tax
                Warranties;

            

    

     

    
      	 	
              3.1.2

            	
              on
                or before the [**] anniversary of the Accounts Date in the case of
                a
                Warranty Claim for breach of the Tax
                Warranties.

            

    

     

    
      	
              3.2

            	
              Where
                notice has been given in respect of any Warranty Claim, save for
                a
                Warranty Claim for breach of any of the Tax Warranties, then that
                Warranty
                Claim shall be deemed to have been irrevocably withdrawn and lapsed
                unless
                proceedings in respect of that claim have been issued and served
                on the
                Sellers not later than the expiry of [**] from the date of that notice
                or
                the Warranty Claim is satisfied, settled or withdrawn before that
                date.

            

    

     

    
      	
              3.3

            	
              Where
                notice has been given in respect of any Warranty Claim for breach
                of any
                of the Tax Warranties then that Warranty Claim shall be deemed to
                have
                been irrevocably withdrawn and lapsed unless proceedings
                in respect of that claim have been issued and served on the Sellers
                not
                later than [**] or the Warranty Claim is satisfied, settled or withdrawn
                before that date.

            

    

     

    
      	
              4.

            	
              Exclusion
                of liability: general 

            

    

     

    
      	4.1	
              The
                Sellers shall not be liable in respect of any Warranty Claim to the
                extent
                that the matter giving rise to such Warranty
                Claim:

            

    

     

    
      	 	
              4.1.1

            	
              is
                fairly disclosed in the Disclosure Letter or in any of the documents
                attached to the Disclosure Letter;
                or

            

    

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    
      	 	
              4.1.2

            	
              was
                within the actual or constructive knowledge of the Buyer, the Buyer's
                Solicitors or KPMG LLP at the date of this
                Agreement.

            

    

     

    
      	4.2	
              The
                Sellers shall not be liable (or such liability shall be reduced)
                in
                respect of a Warranty Claim to the extent that there is specific
                provision
                or reference in the Accounts or reasonable details apparent on the
                face of
                the Accounts in respect of the matter relating to the subject of
                the
                Warranty Claim.

            

    

     

    
      	4.3	
              The
                Sellers shall not be liable in respect of a Warranty Claim to the
                extent
                that the matter giving rise to the Warranty Claim results
                from: 

            

    

     

    
      	 	
              4.3.1

            	
              any
                act or omission before Completion carried out or omitted at the request
                or
                with the express written approval of the Buyer;
                or

            

    

     

    
      	 	
              4.3.2

            	
              any
                change after Completion in the accounting policies or practices used
                in
                preparing the Accounts; or

            

    

     

    
      	 	
              4.3.3

            	
              any
                reorganisation or change after Completion in the ownership of the
                Shares;
                or

            

    

     

    
      	 	
              4.3.4

            	
              any
                act, event, occurrence or omission after the date of this Agreement
                compelled by law, or from the enactment, amendment or change in the
                interpretation after that date, of any statute, regulation or practice
                of
                any governmental, regulatory or other body, including a Tax Authority,
                whether or not having retrospective effect, or any change after the
                date
                of this Agreement in the rate of
                Taxation.

            

    

     

    
      	4.4	
              The
                Sellers shall not be liable in respect of any Warranty Claim, save
                for a
                Warranty Claim for breach of any of the Tax Warranties, to the extent
                that
                the matter giving rise to the Warranty Claim constitutes a contingent
                liability of the Company or the
                Subsidiary Undertaking or relates to a liability which is not capable
                of
                being quantified until such liability becomes an actual liability
                of the
                Company or the Subsidiary Undertaking or becomes capable of being
                quantified and, in either case, as long as any Warranty Claim arising
                by
                reason of a contingent liability has been notified to the
                Sellers
                in
                accordance with paragraph 2 then paragraph 3 shall be amended in
                relation
                to such Warranty Claim so as to require that legal proceedings be
                commenced prior to the later of the expiry of [**] from the date
                on which
                the liability ceases to be contingent and the expiry of [**] from
                the
                Completion Date. 

            

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              Conduct
                of Claims

            

    

     

    
      	5.1	
              If
                the Buyer or the Company becomes aware of any matter which it believes
                would or might give rise to a Warranty Claim (taking no account of
                paragraph 1.2 for these purposes) and the Buyer or the Company has
                a right
                to make recovery or claim indemnity from any third party (including
                under
                any policy of insurance) in relation to that matter, then the Buyer
                shall
                promptly notify the Sellers of the
                right.

            

    

     

    
      	5.2	
              If
                any sum is paid by or on behalf of the Sellers in satisfaction of
                a
                Warranty Claim, and the Buyer or the Company has or subsequently
                acquires
                a right to make recovery or claim indemnity from any third party
                (including under any policy of insurance) in respect of the matter
                giving
                rise to that Warranty Claim, the Buyer shall promptly notify the
                Sellers
                of the right.

            

    

     

    
      	5.3	
              The
                Buyer shall have conduct of any and all litigation or negotiation
                provided
                that it shall continue to consult with the Sellers with respect to
                the
                matter in question.

            

    

     

    
      	5.4	
              If
                there is any dispute between the Sellers and the Buyer as to whether
                liability in respect of any third party claim should be admitted
                or
                whether that claim should be settled or compromised, liability shall
                not
                be admitted, and that claim shall not be settled or comprised, other
                than
                in accordance with the provisions of this paragraph. Any such dispute
                shall be referred to leading counsel agreed between the Sellers and
                the
                Buyer or, in default of agreement on or before the date falling [**]
                after
                the date on which an individual is first proposed for the purpose
                by
                either the Sellers or the Buyer, by the President for the time being
                of
                the Law Society of England and Wales on the application of either
                the
                Sellers or the Buyer. Any individual to whom a dispute is so referred
                shall be instructed in writing to give a written opinion, as soon
                as is
                reasonably practicable, as to which of the courses of conduct proposed
                by
                the Buyer and by the Sellers is most likely to result in the third
                party
                claim being agreed, settled or compromised at the least cost to the
                Sellers. The decision of counsel (who shall act as expert and not
                as
                arbitrator) shall be final and binding on the Buyer and the Sellers
                for
                all purposes. Counsel's fees and expenses shall be borne by the Sellers
                and the Buyer as counsel may determine in his sole discretion or,
                if no
                such determination is made, by the Sellers and the Buyer in equal
                shares.
                The parties shall then implement counsel's decision as soon as is
                reasonably practicable.

            

    

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    
      	5.5	
              To
                the extent that the Buyer or the Company receives any sum or other
                benefit
                by reason of the enforcement of any rights such as are referred to
                in
                paragraphs 5.1 or 5.2, then either the Sellers' liability in relation
                to
                such Warranty Claim or potential Warranty Claim shall be reduced
                by the
                Amount Recovered, or if any sum has already been paid by or on behalf
                of
                the Sellers in satisfaction of a Warranty Claim, then the Buyer shall
                pay
                the Amount Recovered to the Sellers on or before the date falling
                five
                Business Days after the date on which that receipt or saving is made.
                For
                the purposes of paragraph 1.2 of this schedule, the Sellers shall
                be
                deemed never to have been liable to the Buyer in respect of the Amount
                Recovered.

            

    

     

    
      	5.6	
              For
                the purposes of paragraph 5.5 of this schedule, the "Amount
                Recovered"
                shall be equal to so much of the sum or benefit received by reason
                of the
                enforcement of any rights such as are referred to in paragraphs 5.1
                or 5.2
                as does not exceed the amount claimed by the Buyer in relation to
                such
                Warranty Claim or (as the case may be) the payment by or on behalf
                of the
                Sellers in satisfaction of the relevant Warranty Claim, less any
                Taxation
                payable by the Buyer or the Company in respect of that receipt and
                less
                all reasonable costs and expenses of the Buyer and the Company in
                recovering that receipt or
                saving.

            

    

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    
      	6.	
              Sellers'
                rights to information 

            

    

     

    If
      the
      Buyer gives notice under paragraph 2 the Buyer shall and shall ensure that
      the
      Company shall allow
      the
      Sellers and their duly authorised representatives and advisers access during
      normal business hours to any relevant records or information of the Company
      and
      the Subsidiary Undertaking which relate to the period prior to Completion and
      those representatives and advisers to make copies (at the Sellers' cost) of
      those records and information.

     

    
      	7.	
              Remedies 

            

    

     

    The
      Buyer
      irrevocably and unconditionally waives any right it may have to rescind this
      Agreement for any non-fraudulent misrepresentation, whether or not contained
      in
      this Agreement.

     

    
      	8.	
              Relief

            

    

     

    
      	8.1	
              The
                amount of any Warranty Claim shall take into account the relief from
                Taxation arising by virtue of the loss or damage in respect of which
                the
                Warranty Claim was made.

            

    

     

    
      	8.2	
              Nothing
                in this Agreement shall derogate from the Buyer's obligation to mitigate
                any loss which it suffers in consequence of a breach of the
                Warranties.

            

    

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    
      	8.3	
              The
                Buyer for itself and the Buyer's Group warrants and represents to
                the
                Sellers (and accepts that the Sellers are relying upon this warranty
                and
                representation in entering into this Agreement) neither it nor any
                of its
                agents or advisers, from the written information provided to it by
                the
                Sellers, is aware, as of the date of this Agreement, of any matter
                or
                thing which it knows to be inconsistent with the Warranties or to
                constitute a breach of the
                Warranties.

            

    

     

    
      	9.	
              Tax
                Warranty Claims

            

    

     

    The
      provisions of paragraphs 6 (Recovery from Other Persons) and 7 (Conduct of
      Tax
      Affairs) of Part 1 of Schedule 4 shall mutatis mutandi apply to any claim for
      breach of the Tax Warranties as if set out in this schedule and, for these
      purposes, a "Potential Liability" shall include a potential liability for a
      claim for breach of Tax Warranty. 

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    Schedule
      4

     

    Part
      1

     

    Tax
      Covenants

     

    
      	
              1

            	
              Definitions
                and Interpretation

            

    

     

    
      	 	
              1.1

            	
              Definitions

            

    

     

    In
      this
      Schedule:

     

    "Accounts
      Relief"
      means
      any Relief which has been treated as an asset in the Accounts or has been taken
      into account in reducing or eliminating any provision for deferred tax which
      appears or would, but for the presumed availability of such Relief, have
      appeared in the Accounts;

     

    "Event"
      means
      any event, occurrence, transaction, action or omission and without limitation
      includes the earning, receipt or accrual of any profit income or gain or
      distribution, failure to distribute, acquisition, disposal, transfer, payment,
      loan or advance, membership or ceasing to be a member of a group or VAT group,
      the death of any person, entering into this Agreement and Completion itself
      and:

     

    
      	 	
              1.1.1

            	
              any
                reference to an Event occurring shall include any Event which is
                deemed to
                have occurred; and

            

    

     

    
      	 	
              1.1.2

            	
              any
                reference to an Event occurring on or before a particular date shall
                include an Event which is deemed to have occurred on or before that
                date.
                

            

    

     

    "Group
      Relief"
      means
      any Relief surrendered or claimed pursuant to Chapter IV of Part X of the Taxes
      Act, advance corporation tax surrendered or claimed pursuant to section 240
      of
      the Taxes Act, any tax refund surrendered or claimed pursuant to section 102
      Finance Act 1989;

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    "Post
      Accounts Date Relief"
      means
      any Relief of or made available to any Group Company arising in respect of
      an
      Event occurring or period commencing after the Accounts Date;

     

    "Buyer
      Relief"
      means
      any Accounts Relief or Post Accounts Date Relief;

     

    "Relevant
      Amount"
      has the
      meaning set out in paragraph 5.3;

     

    "Relief"
      means
      any loss, relief (including group relief), allowance, exemption, set-off,
      deduction, right to repayment or credit or other relief of a similar nature
      in
      respect of any Tax or relevant to the computation of any income, profits or
      gains (or deemed income, profits or gains) for the purposes of any Tax and
      any
      right to a payment or other consideration for the surrender of group
      relief;

     

    
      	 	
              1.2

            	
              Construction.
                References to any English legal term for any action, remedy, method
                of
                judicial proceedings, legal document, legal status, court, official
                or any
                legal concept or thing shall in respect of any jurisdiction other
                than
                England be deemed to include what most nearly approximates in that
                jurisdiction to the English legal
                term.

            

    

     

    
      	 	
              1.3

            	
              Instalment
                payments of Tax.
                Any reference in this Schedule to a liability to or for Tax shall
                include
                a liability to make an instalment payment of
                Tax.

            

    

     

    
      	 	
              1.4

            	
              Deemed
                accounting period closure.
                For the purposes of determining any liability of the Sellers under
                paragraph 2 of this Schedule an accounting period of each Group Company
                shall be deemed to have closed on
                Completion.

            

    

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

    
      	 	
              1.5

            	
              Meaning
                of "Indemnify".
                In this Schedule, unless otherwise specified, references to "indemnify"
                or "indemnifying"
                any person against any circumstance include indemnifying and keeping
                him
                harmless from all actions, claims and proceedings from time to time
                made
                against that person and all loss or damage and all payments, costs
                or
                expenses made or incurred by that person as a consequence of or which
                would not have arisen but for that
                circumstance.

            

    

     

    
      	 	
              1.6

            	
              Meaning
                of "75% subsidiary".
                In this Schedule, a Group Company is a 75% subsidiary of another
                Group
                Company if it is a 75% subsidiary of the Group Company for the purposes
                of
                sections 838(1) and 413(7) of the Taxes
                Act.

            

    

     

    
      	
              2

            	
              Covenant 

            

    

     

    
      	 	
              2.1

            	
              Covenant
                to pay Tax Liabilities.
                Subject to the provisions of paragraph 3 of this Schedule, [**] covenant
                to the Buyer to pay to the Buyer on
                the due date in the Due Proportions (for the avoidance of doubt,
                so far as
                possible by way of adjustment to the consideration for the sale of
                the
                Shares) an amount equal to any of the
                following:

            

    

     

    
      	 	
              2.1.1

            	
              any
                liability of any Group Company for Tax arising as a consequence of
                or by
                reference to any Event occurring on or before the Completion
                Date;

            

    

     

    
      	 	
              2.1.2

            	
              any
                liability of any Group Company for Tax which would not have arisen
                but for
                the loss, reduction, modification or disallowance of an Accounts
                Relief as
                a consequence of or by reference to any Event occurring on or before
                the
                Completion Date;

            

    

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    
      	 	
              2.1.3

            	
              any
                liability of any Group Company for Tax in respect of which the Sellers
                would have been liable under paragraph 2.1.1 but which is not payable
                as a
                consequence of or by reference to the use or set-off of a Buyer
                Relief;

            

    

     

    
      	 	
              2.1.4

            	
              the
                amount which would have been obtained but for the loss, disallowance
                or
                reduction of any right to repayment of Tax (including any repayment
                supplement or interest) or non-receipt of payment or other consideration
                for the surrender of group relief which has been treated as an asset
                in
                the Accounts or has been taken into account in computing (and so
                reducing
                or eliminating) any provision for deferred Tax appearing or which
                would
                have appeared in the Accounts;

            

    

     

    
      	 	
              2.1.5

            	
              any
                liability of the Buyer or any Group Company for reasonable costs
                or
                expenses reasonably and properly incurred by the Buyer or the relevant
                Group Company in connection with any successful claim under this
                Schedule,
                or successfully taking or defending any action under this
                Schedule;

            

    

     

    
      	 	
              2.1.6

            	
              any
                liability of any Group Company for Tax which the relevant Group Company
                is
                or became liable to discharge by virtue of its relationship with
                any
                person (other than another Group Company or any member of the Buyer's
                Group) at any time before
                Completion;

            

    

     

    
      	 	
              2.1.7

            	
              any
                liability of any Group Company for Tax arising as a consequence of
                the
                payment of the Deferred
                Consideration;

            

    

     

    
      	 	
              2.1.8

            	
              any
                liability to repay to any person other than a Group Company the whole
                or
                part of any payment received for group relief, or make a payment
                for group
                relief, in each case pursuant to any agreement or arrangement entered
                into
                on or before Completion;

            

    

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    
      	 	
              2.1.9

            	
              any
                liability of any Group Company for Tax arising as a consequence of
                or in
                connection with any loan, advance or dividend paid by any Group
                Company. 

            

    

     

    
      	
              3

            	
              Limitations
                on Liability

            

    

     

    
      	 	
              3.1

            	
              The
                Sellers shall not be under any liability under this part of this
                Schedule
                to the extent that:

            

    

     

    
      	 	
              3.1.1

            	
              provision
                or reserve for such liability is made or reflected in the Accounts
                including any provision or reserve made in respect of deferred tax
                or
                payment or discharge of such liability was taken into account
                therein;

            

    

     

    
      	 	
              3.1.2

            	
              the
                liability arises or is increased as a result of any retrospective
                change
                or changes in the tax rates or in the law of taxation announced after
                the
                date of this Agreement (including any retrospective change in published
                practice of any Tax Authority which is published in a form intended
                to be
                made available to taxpayers
                generally);

            

    

     

    
      	 	
              3.1.3

            	
              the
                liability would not have arisen but for a voluntary transaction,
                action or
                omission by a Group Company or the Buyer at any time after Completion
                other than any such transaction, action or
                omission:

            

    

     

    
      	 	
              (i)

            	
              which
                occurred after Completion in the ordinary course of business of the
                relevant Group Company or the Buyer as conducted at Completion; or
                

            

    

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              which
                it was outside the power of the relevant Group Company or the Buyer
                to
                prevent or was pursuant to a legally binding obligation entered into
                by
                the relevant Group Company before Completion;

            

    

     

    
      	 	
              3.1.4

            	
              the
                liability would not have arisen or would have been reduced or eliminated
                but for a failure on the part of any Group Company to make any claim,
                election, surrender or disclaimer or give any notice or consent or
                do
                anything after Completion the making, giving or doing of which was
                taken
                into account in the Accounts and in relation to which the Seller
                has given
                the Buyer reasonable notice of the requirement to make such claim,
                election, surrender or disclaimer or to give such notice or consent
                or do
                such act after Completion;

            

    

     

    
      	
            	3.1.5	
              the
                liability arises from or is increased
                by:

            

    

     

    
      	 	
              (i)

            	
              any
                change of the accounting reference date of a Group Company on Completion
                or any subsequent change thereafter;
                or

            

    

     

    
      	 	
              (ii)

            	
              any
                change after Completion in accounting policy or the basis upon which
                a
                Group Company values its assets save where such change in accounting
                policy or basis of valuation is necessary to comply with generally
                accepted accounting standards and policies applicable to the relevant
                accounting periods; 

            

    

     

    
      	 	
              3.1.6

            	
              the
                liability would not have arisen but for the loss, reduction, modification
                or disallowance of any relief for trading losses (other than a Buyer's
                Relief) which would otherwise have been available to a Group Company
                but
                for cessation of trade, or a change in the nature or conduct of the
                trade
                carried on by the relevant Group Company after Completion or the
                transfer
                of any trade or business or any reconstruction or reorganisation
                of the
                share capital of the relevant Group Company occurring after
                Completion;

            

    

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    
      	 	
              3.1.7

            	
              the
                liability arises as a result of or is otherwise attributable to any
                voluntary disclaimer of or revision after Completion of a claim for
                capital or other allowances in respect of any period ending on or
                before
                the Accounts Date;

            

    

     

    
      	 	
              3.1.8

            	
              the
                liability relates to stamp duty or stamp duty reserve tax arising
                out of
                the transfer of the Shares or agreement to transfer the
                Shares;

            

    

     

    
      	 	
              3.1.9

            	
              the
                liability would not have arisen but for anything done or omitted
                to be
                done at the written request of the
                Buyer;

            

    

     

    
      	 	
              3.1.10

            	
              the
                liability has been satisfied by the Sellers by reason of being liable
                for
                such Tax under section 767A or 767AA of the Taxes Act or liable to
                the
                Buyer under any other statutory
                provision;

            

    

     

    
      	 	
              3.2

            	
              For
                the avoidance of doubt, paragraphs 1.1, 1.3 and 1.5 of Part 2 of
                Schedule
                3 shall apply in respect of any Tax Covenant
                Claim.

            

    

     

    
      	 	
              3.3

            	
              The
                Sellers shall not be liable in respect of any claim under this Schedule,
                unless notice of such claim has been given in accordance with paragraph
                7
                before or on 31 December 2014. 

            

    

     

    
      	 	
              3.4

            	
              If
                the Buyer is entitled to claim under this Schedule or under the Tax
                Warranties in respect of the same subject matter, the Buyer may claim
                under either or both, but payments under this Schedule shall be treated
                as
                being made in satisfaction of the claim for breach of Tax Warranty
                in
                respect of the same subject matter and vice versa.
                

            

    

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    
      	
              4

            	
              Mitigation

            

    

     

    
      	 	
              4.1

            	
              Mitigation
                of liability.
                The Buyer shall, to the extent permitted by law, at the direction
                of the
                Sellers, procure that each Group Company will take all such steps
                as the
                Sellers may reasonably require to use any Relief (other than any
                Buyer
                Relief) available (provided the Sellers indemnify and secure the
                relevant
                Group Company to its reasonable satisfaction in respect of any cost
                incurred in order to secure the Relief) to mitigate or eliminate
                any
                liability for Tax for which the Sellers would be liable under this
                Schedule, such Relief to be used in priority to Reliefs arising after
                Completion in so far as may be permissible under applicable Tax law,
                and
                at the Sellers' expense deliver to the Sellers a certificate from
                the
                auditors of the relevant Group Company for the time being confirming
                that
                all such Reliefs have been so used Provided
                that this
                paragraph 4.1 shall not prejudice any rights of the Buyer under this
                Schedule. 

            

    

     

    
      	
              5

            	
              Over-Provisions,
                Reliefs, etc

            

    

     

    
      	
            	5.1	
              Over-provisions.
                If the auditors for the time being of any Group Company shall certify
                at a
                time when the relevant Group Company is a 75 per cent subsidiary
                of the
                Buyer (at the request made within three years of Completion and expense
                of
                the Sellers) that any provision for Tax in the Accounts has proved
                to be
                an over-provision, then the amount of such over-provision shall be
                dealt
                with in accordance with paragraph
                5.3.

            

    

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

    
      	 	
              5.2

            	
              Reliefs.
                If the auditors for the time being of any Group Company shall certify
                (at
                the request and expense of the Sellers) that any Tax which has resulted
                in
                a payment having been made or becoming due from the Sellers under
                this
                Schedule has given or will give rise to a Relief (other than an Accounts
                Relief) for any Group Company which would not otherwise have arisen
                and
                which has given rise to a reduction in Tax of any Group Company for
                which
                the Sellers are not liable under this Schedule, then the amount by
                which
                that liability is so reduced shall be dealt with in accordance with
                paragraph 5.3.

            

    

     

    
      	 	
              5.3

            	
              Set-off
                of Relevant Amounts.
                Where it is provided under paragraph 5.1 or 5.2 that any amount (the
                "Relevant
                Amount")
                is to be dealt with in accordance with this paragraph the Relevant
                Amount
                shall first be set off against any payment then due from the Sellers
                under
                this Schedule then second to the extent that there is an excess a
                refund
                shall be made to the Sellers of any previous payment or payments
                made by
                the Sellers under this Schedule (and not previously refunded under
                this
                Schedule) up to the amount of the excess and then third to the extent
                that
                there remains an excess the remainder of that excess shall be carried
                forward and set of against any future payment or payments which become
                due
                from the Sellers under this
                Schedule.

            

    

     

    
      	 	
              5.4

            	
              Auditors'
                certificate.
                Where any such certification as is mentioned in paragraph 5.1 or
                5.2 has
                been made, the Sellers or the Buyer or any Group Company may request
                the
                auditors for the time being of the relevant Group Company to review
                (at
                the expense of the requesting party) such certification in the light
                of
                all relevant circumstances, including any facts which have become
                known
                only since such certification, and to certify whether such certification
                remains correct or whether, in the light of those circumstances,
                the
                amount that was the subject of such certification should be
                amended.

            

    

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    
      	 	
              5.5

            	
              Effect
                of Auditors certificate.
                If
                the auditors certify under paragraph 5.4 that an amount previously
                certified should be amended, that amended amount shall be substituted
                for
                the purposes of paragraph 5.3 as the Relevant Amount in respect of
                the
                certification in question in place of the amount originally certified,
                and
                such adjusting payment (if any) as may be required by virtue of the
                above-mentioned substitution shall be made as soon as practicable
                by the
                Sellers or Buyer as appropriate.

            

    

     

    
      	
              6

            	
              Recovery
                from other Persons

            

    

     

    
      	 	
              6.1

            	
              Recovery
                from other persons.
                If, in the event of any payment becoming due from the Sellers under
                paragraph 2, a Group Company either is immediately entitled at the
                due
                date for the making of that payment to recover from any person (not
                being
                a Group Company or the Sellers, but including any Tax Authority)
                any sum
                in respect of the liability that has resulted in that payment becoming
                due
                from the Sellers, or at some subsequent date becomes entitled to
                make such
                a recovery, then the Buyer shall procure that the Group Company entitled
                to make that recovery shall (in either of those cases) notify the
                Sellers
                of its entitlement and shall within a reasonable period of it becoming
                aware of the entitlement, if so required by the Sellers, take all
                appropriate steps to enforce that recovery (keeping the Sellers fully
                informed of the progress of any action taken) and shall if the Sellers
                has
                made a payment under paragraph 2 in respect of the Liability in question
                account to the Sellers for whichever is the lesser
                of:

            

    

     

    
      	 	
              6.1.1

            	
              any
                sum so recovered (including any interest or repayment supplement
                paid by
                the Tax Authority or other person on or in respect thereof less any
                Tax
                chargeable on the relevant Group Company in respect of that interest);
                and

            

    

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

    
      	 	
              6.1.2

            	
              the
                amount paid by the Sellers under paragraph 2 in respect of the liability
                in question,

            

    

     

    Provided
      that
      neither
      the Group Company nor the Subsidiary Undertaking shall be required to take
      such
      steps unless the Sellers agrees to indemnify and secure it to the reasonable
      satisfaction of the Buyer for all losses, costs, damages and expenses occurred
      in seeking such recovery.

     

    
      	
              7

            	
              Conduct
                of Tax Affairs

            

    

     

    
      	
            	7.1	
              Interpretation.
                In this paragraph:

            

    

     

    
      	 	
              7.1.1

            	
              "Potential
                Liability" means a liability to or claim for Tax which may result
                in a
                claim against the Sellers under this Schedule, or which may do so
                if
                paragraph 3 of this Schedule were not to
                apply;

            

    

     

    
      	
            	7.1.2	
              "Relevant
                Period" means:

            

    

     

    
      	 	
              (i)

            	
              in
                relation to corporation tax, any accounting period ended on or before
                the
                Accounts Date;

            

    

     

    
      	 	
              (ii)

            	
              in
                relation to any other Tax, any period ended before Completion in
                respect
                of which the relevant Group Company is required to make a return
                or a
                payment to a Tax Authority.

            

    

     

    
      	 	
              7.2

            	
              Potential
                Liabilities.

            

    

     

    
      	 	
              7.2.1

            	
              Notification.
                If the Buyer or any Group Company becomes aware of a Potential Liability
                of which the Sellers are not then aware the Buyer shall give written
                notice thereof to the Sellers (which notice shall set out reasonable
                particulars of the basis and amount of such Potential Liability to
                the
                extent that the same are available) as soon as reasonably practicable
                and
                in any event within 25 Business Days of first so becoming aware.
                

            

    

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

    
      	 	
              7.2.2

            	
              Conduct.
                The Buyer shall have sole conduct of all tax affairs of the Company
                and
                the Subsidiary Undertaking.

            

    

     

    
      	
            	7.2.3	
              Buyer
                obligations

            

    

     

    
      	 	
              (i)

            	
              Action.
                Provided that the Sellers indemnify and secure the Buyer and the
                relevant
                Group Company to the reasonable satisfaction of the Buyer against
                all
                losses, liabilities, costs, damages and expenses (including any further
                liability to Tax or interest on overdue Tax) which may thereby be
                incurred, the Buyer shall take, or shall procure that the relevant
                Group
                Company shall take, such action as the Sellers may reasonably request
                in
                writing to avoid, dispute, resist, defend, appeal or compromise any
                Potential Liability; provided that where the Potential Liability
                has to be
                paid before an appeal can be made or before any other action requested
                by
                the Sellers can be taken, the Buyer shall not be obliged to take
                or
                procure that the relevant Group Company take such action until the
                Sellers
                shall have paid to the Buyer for the purpose of discharging the Potential
                Liability, an amount equal to the said
                liability.

            

    

     

    
      	 	
              (ii)

            	
              Timing.
                The Buyer shall or shall procure that the relevant Group Company
                takes any
                action pursuant to sub-paragraph (i) above as soon as reasonably
                practicable and shall use its reasonable endeavours to procure that
                any
                action is taken within the time limit for the valid taking of such
                action,
                provided that if such time limit has expired and the taking of such
                action
                might be validated by the exercise of judicial or administrative
                discretion, and the Sellers so request not more than 15 days after
                expiry
                of such time limit, the Buyer shall procure that the relevant Group
                Company requests that such discretion be exercised in favour of the
                relevant Group Company and, if such discretion is so exercised and,
                if so
                required under paragraph (i) above that the relevant Group Company
                takes
                such action.

            

    

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

    
      	 	
              (iii)

            	
              Examples
                of subject - matter of instructions.
                Without prejudice to the generality of this paragraph but subject
                also to
                the other provisions of this paragraph, the Buyer shall procure that
                the
                relevant Group Company gives consideration to the Sellers' reasonable
                instructions with regard to:

            

    

     

    
      	 	
              -

            	
              the
                form and content of documents to be served, lodged or disclosed in
                connection with any proceedings taken by the relevant Group Company
                pursuant to paragraph (i) above and the extent of any such disclosure
                or
                of any disclosure in response to enquiries which is reasonable to
                suppose
                might lead to such proceedings being
                taken;

            

    

     

    
      	 	
              -

            	
              the
                choice of, and the content of instructions to, solicitors and Counsel
                for
                the purposes of any such
                proceedings;

            

    

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

    
      	 	
              -

            	
              the
                choice of witnesses and the subject matter of their witness
                statements;

            

    

     

    
      	 	
              -

            	
              the
                choice (in conjunction with the Sellers' advisers and Counsel) of
                arguments to be advanced or points to be conceded in any such proceedings;
                and

            

    

     

    
      	 	
              -

            	
              the
                lodging or contesting of any appeals, any tactical decisions and
                any
                decisions in response to any offers of settlement in connection with
                such
                proceedings.

            

    

     

    
      	
            	7.2.4	
              Buyer
                Protection

            

    

     

    
      	 	
              (i)

            	
              Appeals.
                Neither the Buyer nor any Group Company shall be obliged to take
                any
                action pursuant to this paragraph 7.2 which involves contesting a
                Potential Liability beyond the first appellate body (excluding the
                authority or body demanding the Tax in question) in the jurisdiction
                concerned unless the Sellers at their own expense and after disclosure
                of
                all relevant information obtain and deliver to the Buyer the written
                opinion of tax Counsel of appropriate experience to the effect that
                appealing or defending an appeal in respect of the Potential Liability
                will on a balance of probabilities be successful. The Buyer shall
                have the
                right to submit to tax Counsel any matters or arguments which in
                the
                reasonable opinion of the Buyer may be material for the proper
                consideration of tax Counsel and shall have the right to attend any
                consultation with tax Counsel.

            

    

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

    
      	 	
              (ii)

            	
              Settling
                claims.
                The Buyer or any Group Company may compromise, settle, discharge
                or
                otherwise deal with any Potential Liability without reference to
                the
                Sellers if the Sellers at any time notify the Buyer that they do
                not wish
                to exercise their rights under this paragraph 7 or if the Sellers
                do not
                request the Buyer in writing to take any appropriate action within
                [**] of
                notice to the Sellers given pursuant to paragraph 7.2.1or if the
                Sellers
                fail to indemnify and secure the Buyer and the relevant Company to
                the
                reasonable satisfaction of the Buyer within a period of time (commencing
                with the date of the notice given to the Sellers) that is reasonable
                having regard to the nature of the Potential Liability and the existence
                of any time limit in relation to avoiding, disputing, defending,
                resisting, appealing or compromising such Potential Liability and
                which
                period will not in any event exceed a period of [**].
                

            

    

     

    
      	 	
              7.3

            	
              Buyer
                conduct

            

    

     

    
      	 	
              7.3.1

            	
              Conduct.
                The Buyer shall have sole conduct of all tax affairs of each Group
                Company.

            

    

     

    
      	 	
              7.3.2

            	
              Assisting
                the Buyer.
                The Sellers shall give the Buyer and/or the relevant Group Company
                all
                assistance as may reasonably be required to enable the Buyer and/or
                the
                relevant Group Company to deal with the tax affairs of the Companies
                which
                are not Sellers Conduct Matters, Sellers Appeals or Potential Liabilities
                of which the Sellers have conduct.

            

    

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

    
      	
            	7.3.3	
              Keeping
                the Sellers informed.
                The Buyer shall procure that:

            

    

     

    
      	 	
              (i)

            	
              the
                Sellers receive copies of all draft corporation tax returns, computations,
                amended returns and material correspondence relating thereto in respect
                of
                each Group Company for its pre-Completion Period;
                and

            

    

     

    
      	 	
              (ii)

            	
              any
                representations made promptly, and in any event within seven days
                after
                provision of the returns, computations, amended returns and/or
                correspondence referred to above, will be considered reasonably and
                in
                good faith.

            

    

     

    
      	
              8

            	
              Due
                Date of Payment

            

    

     

    
      	 	
              8.1

            	
              Due
                date of payment.
                Where the Sellers become liable to make any payment under paragraph
                2, the
                due date for the making of that payment in cleared funds shall
                be:

            

    

     

    
      	 	
              8.1.1

            	
              in
                a case that involves an actual payment of Tax by the relevant Group
                Company, the day preceding the date that is the last date on which
                such
                Group Company would have had to have paid to the appropriate Tax
                Authority
                the Tax that has given rise to the Sellers' liability under this
                Schedule
                in order to avoid incurring a liability to interest or a charge or
                penalty
                in respect of that Tax liability or in order to enable the liability
                in
                question to be appealed; or

            

    

     

    
      	 	
              8.1.2

            	
              in
                a case falling within paragraph 2.1.2 the day preceding the date
                that is
                the last date on which the Tax, which but for such loss, reduction,
                modification or disallowance would have been saved, has to be paid
                to the
                appropriate Tax Authority in order to avoid incurring a liability
                to
                interest or a charge or penalty in respect of that
                Tax;

            

    

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

    
      	 	
              8.1.3

            	
              in
                a case falling within paragraph 2.1.3, the day payment would have
                been due
                under 8.1.1 above assuming the Post Accounts Date Relief had not
                been used
                or set off as envisaged in paragraph 2.1.3;
                or

            

    

     

    
      	 	
              8.1.4

            	
              in
                a case falling within paragraph 2.1.4 the date on which the repayment
                of
                Tax or payment or other consideration for the surrender of group
                relief
                would have been payable; or

            

    

     

    
      	
            	8.1.5	
              in
                a case falling within paragraph 2.1.5, within 30 days of
                demand;

            

    

     

    
      	 	
              8.1.6

            	
              in
                any other case falling within paragraph 2, on the date on which the
                relevant Group Company is required to meet such
                liability;

            

    

     

    
      	 	
              8.2

            	
              Interest
                for late payment.
                The Sellers shall not be liable to pay interest for late payment
                to the
                extent that such interest:

            

    

     

    
      	 	
              8.2.1

            	
              arises
                only as a result of any failure to give notice of a Potential Liability
                under paragraph 7.2.1 of this Schedule;
                or

            

    

     

    
      	 	
              8.2.2

            	
              in
                respect of any period of time in relation to which interest is due
                as a
                liability for Tax under paragraph 2 of this
                Schedule.

            

    

     

    
      	
              9

            	
              Deductions
                from Payments

            

    

     

    
      	 	
              9.1

            	
              No
                deductions or withholdings.
                All sums payable by the Sellers to the Buyer under this Schedule
                shall be
                paid free and clear of all deductions or withholdings whatsoever,
                save
                only as may be required by law.

            

    

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

    
      	 	
              9.2

            	
              Gross-up
                for deductions.
                If any deductions or withholdings are required by law to be made
                from any
                of the sums payable as mentioned in paragraph 9.1, the Sellers, save
                where
                the deduction or withholding would not have been required but for
                any
                assignment or novation of the Buyer's rights under this Agreement
                or this
                Schedule or change in residence or tax status of the Buyer or the
                relevant
                Group Company, shall be obliged to pay to the Buyer such sum as will,
                after the deduction or withholding has been made (and allowing for
                any
                credit the Buyer is entitled to receive in respect of such deduction
                or
                withholding), leave the Buyer with the same amount as it would have
                been
                entitled to receive in the absence of any such requirement to make
                a
                deduction or withholding. The provisions of paragraphs 4, 5.2, 6 and 8
                shall apply, mutatis mutandis, to any payment required under this
                paragraph.

            

    

     

    
      	
              10

            	
              Buyer
                Covenants

            

    

     

    
      	 	
              10.1

            	
              The
                Buyer hereby covenants with the Sellers to pay an amount by way of
                adjustment to the consideration for the sale of the Shares equal
                to any
                Tax paid by the Sellers under sections 767A, 767AA and 767B of the
                Taxes
                Act to the extent that such Tax is not of a type which would allow
                it to
                be claimed from the Sellers under paragraph 2 of this
                Schedule.

            

    

     

    
      	 	
              10.2

            	
              Paragraphs
                4, 5.2, 6, 7, 8 and 9 shall apply to the covenants in this paragraph
                as
                they apply to the covenants in paragraph 2 mutatis
                mutandis.

            

    

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    Schedule
      4 

     

    Part
      2

     

    Tax
      Warranties

     

    
      	
              1

            	
              Returns
                and payment of Taxation

            

    

     

    
      	
            	1.1	
              All
                information, notices, accounts, statements, reports, computations
                and
                returns which ought to have been made have been properly and duly
                submitted by each Group Company to the relevant Tax Authority within
                the
                required time period and are accurate, comply with each Group Company's
                obligations under all applicable provisions within the relevant
                jurisdiction (including but not limited to corporation tax
                self-assessment, PAYE, US federal and state income tax, sales tax,
                withholding tax and social security obligations), and are neither
                the
                subject of any dispute nor are the Sellers aware of any circumstances
                under which anything contained in any such information, notices,
                accounts,
                statements, reports, computations or returns are likely to become
                the
                subject of any dispute.

            

    

     

    
      	
            	1.2	
              All
                Taxation for which each Group Company is liable including amounts
                provided
                for since the Accounts Date or for which each Group Company is liable
                to
                account have been duly provided for and no Group Company has incurred
                any
                liability to interest or penalties in respect of such
                amounts.

            

    

     

    
      	
            	1.3	
              No
                Group Company is, nor has it been at any time since the date of its
                incorporation, liable to pay, to reimburse or to indemnify any person
                (including a Tax Authority) in respect of the Taxation liability
                of a
                third person whether or not as a consequence of that third person
                failing
                to discharge that liability.

            

    

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

    
      	
            	1.4	
              No
                Group Company has since the date of its incorporation paid or become
                liable to pay and there are no circumstances by reason of which a
                Group
                Company is likely to become liable to pay, a fine or
                penalty.

            

    

     

    
      	
            	1.5	
              Each
                Group Company has complied with all notices served on it by any Tax
                Authority and no such notice remains
                outstanding.

            

    

     

    
      	
            	1.6	
              No
                Group Company is subject to any control visit, audit, enquiry or
                investigation by any Tax Authority and the Sellers are not aware
                of any
                circumstances that make it reasonable to expect that such a control
                visit,
                audit, enquiry or investigation will take place within the next [**].
                

            

    

     

    
      	
            	1.7	
              The
                Disclosure Letter gives all relevant particulars of any concession,
                agreement or other formal or informal arrangement with any Tax Authority
                which has affected the amount of Tax chargeable on or the amount
                of any
                Relief available to any Group Company and of any fact or circumstance
                from
                which it is reasonable to conclude that such concession, agreement
                or
                arrangement might not be available after Completion.
                

            

    

     

    
      	
              2

            	
              Taxation
                claims, liabilities and
                reliefs

            

    

     

    
      	
            	2.1	
              Details
                of all matters relating to Taxation in respect of which each Group
                Company
                (either alone or jointly with any other person) has, or at Completion
                will
                have, an outstanding entitlement:

            

    

     

    
      	
            	2.1.1	
              to
                make a claim or election in respect of Taxation or any Relief;
                

            

    

     

    
      	
            	2.1.2	
              to
                make an appeal (including a further appeal) against an assessment
                to
                Taxation;

            

    

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

     

    
       

      
        	 	
                2.1.3

              	
                to
                  make an application for the postponement of, or the payment by
                  instalments
                  of, any Taxation; or

              

      

       

      
        	 	
                2.1.4

              	
                to
                  disclaim or require the postponement of any allowance or
                  relief,

              

      

       

      have
        been
        Disclosed in the Disclosure Letter (including, where the claim, election,
        appeal, application or disclaimer must be made within eight weeks of Completion,
        the last date by which it must be made).

       

      
        	 	
                2.2

              	
                No
                  Group Company has, or may become, liable to make any payment or
                  reimbursement or give any indemnity in respect of Taxation, or
                  any
                  amounts, as a result of the failure of any person to discharge
                  Taxation,
                  where such Taxation relates to a profit, income or gain, transaction,
                  event, omission or circumstance arising, occurring or deemed to
                  arise or
                  occur (wholly or partly) prior to
                  Completion.

              

      

       

      
        	
                3

              	
                Tax
                  residence and status

              

      

       

      
        	 	
                3.1

              	
                For
                  the purposes of Taxation the Company has been resident in the United
                  Kingdom at all times since its incorporation and will be so resident
                  at
                  Completion, and has never been resident in or liable to Taxation
                  in any
                  other jurisdiction for any Taxation
                  purpose.

              

      

       

      
        	 	
                3.2

              	
                For
                  the purposes of Taxation the Subsidiary Undertaking has been resident
                  in
                  the United States of America at all times since its incorporation
                  and will
                  be so resident at Completion, and has never been resident in or
                  liable to
                  Taxation in any other jurisdiction for any Taxation
                  purpose.

              

      

       

      
        	 	
                3.3

              	
                No
                  circumstances have occurred which could give rise to a liability
                  on a
                  Group Company under section 132 FA 1988 (Liability of other persons
                  for
                  unpaid tax) or sections 185 TCGA (Deemed disposal of assets on
                  a Group
                  Company ceasing to be United Kingdom tax resident) and no Group
                  Company
                  has been party to any election under section 187 TCGA (Postponement
                  of
                  charge on deemed disposal under section 185) or any equivalent
                  provisions
                  in the jurisdiction of the relevant Group
                  Company.

              

      

       

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

       

      
        	 	
                3.4

              	
                The
                  Company is a close company within the meaning of section 414 of
                  ICTA. The
                  Company is not nor has it at any time been a close investment holding
                  company within the meaning of section 13A of
                  ICTA.

              

      

       

      
        	 	
                3.5

              	
                No
                  distributions within section 418 of ICTA or transfers of value
                  within
                  section 94 Inheritance Tax Act 1984 (charge on participators) has
                  been
                  made by any Group Company

              

      

       

      
        	 	
                3.6

              	
                No
                  loan or advance within section 419 ICTA (loans to participators
                  etc) has
                  been made or agreed to be made by any Group Company and no Group
                  Company
                  has, since the Accounts Date, released or written off, and there
                  is no
                  agreement or arrangement for the release or writing off of the
                  whole or
                  part of the debt in respect of any such loan or advance.
                  

              

      

       

      
        	 	
                3.7

              	
                Full
                  disclosure has been made of any election or claim (including but
                  not
                  limited to any "check the box" election in respect of US taxation)
                  that
                  affects or may affect the Tax treatment of any Group Company.
                  

              

      

       

      
        	
                4

              	
                Corporation
                  Tax on chargeable gains

              

      

       

      Since
        the
        Accounts Date no Group Company has entered into or been a party to a transaction
        which will or may give rise to a liability to tax on any capital
        gain.

       

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

       

      
        	
                5

              	
                Shares
                  owned by directors or
                  employees

              

      

       

      All
        shares in the Company owned by any person who is or has been a director or
        employee of any Group Company, or any person who is connected with such a
        person, have been acquired at a price equal to UMV (as defined in section
        428
        Income Tax (Earnings and Pensions) Act 2003) and any such person who is subject
        to Taxation on income in the UK has entered into a valid election under section
        431 Income Tax (Earnings and Pensions) Act 2003. 

       

      
        	
                6

              	
                Value
                  Added Tax

              

      

       

      
        	 	
                6.1

              	
                The
                  Company:

              

      

       

      
        	 	
                6.1.1

              	
                is
                  a duly registered taxable person for the purposes of VAT and has
                  complied
                  fully with all statutory requirements, orders, provisions, directions
                  or
                  conditions relating to VAT;

              

      

       

      
        	 	
                6.1.2

              	
                maintains
                  and has at all times maintained complete, correct and up-to-date
                  records
                  for the purposes of the legislation relating to VAT and has preserved
                  such
                  records in such form and for such periods as are required by such
                  legislation;

              

      

       

      
        	 	
                6.1.3

              	
                is
                  not in arrears with any payment or returns required under any legislation
                  relating to VAT and is not liable to any abnormal or non-routine
                  payment,
                  or any forfeiture or penalty or default surcharge, or to the operation
                  of
                  any penal provision or to pay any interest relating to
                  VAT;

              

      

       

      
        	 	
                6.1.4

              	
                has
                  not been required by HM Revenue & Customs to give security under any
                  legislation relating to VAT; and

              

      

       

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

       

      
        	 	
                6.1.5

              	
                is
                  not and has never been a member of VAT group for the purposes of
                  S.43
                  VATA. 

              

      

       

      
        	 	
                6.2

              	
                The
                  Subsidiary Undertaking is not
                  and has never been registered, and is not and has never been required
                  to
                  be registered, as a taxable person for the purposes of VAT.
                  

              

      

       

      
        	 	
                6.3

              	
                The
                  Disclosure Letter contains particulars of the prescribed accounting
                  periods for VAT that apply to the Company.

              

      

       

      
        	 	
                6.4

              	
                The
                  Disclosure Letter contains all relevant particulars of any property
                  in
                  respect of which an election has been made to waive exemption from
                  VAT
                  under paragraph 2 of Schedule 10 to the VATA.

              

      

       

      
        	 	
                6.5

              	
                The
                  Disclosure Letter contains all relevant particulars of any assets
                  owned by
                  any Group Company which are capital items that are subject to the
                  capital
                  goods scheme under Part XV of the VAT Regulations 1995.
                  

              

      

       

      
        	
                7

              	
                Stamp
                  Duty 

              

      

       

      Each
        Group Company has duly paid all stamp duty land tax and all stamp duty reserve
        tax for which it is or has at any time been liable and no document pursuant
        to
        which a Group Company has any right is held by or on behalf of that Group
        Company outside the UK which would attract stamp duty if bought into the
        United
        Kingdom and no Group Company is liable to pay any penalty, interest or fine
        in
        respect of stamp duty or stamp duty reserve tax or to forfeiture of any relief
        from any such duty, penalty, interest or fine and so far as the Sellers is
        aware, there are no circumstances including execution, substantial performance
        of any contract for a land transaction and performance of this agreement
        which
        may result in a Group Company becoming liable to any such penalty, interest
        or
        fine or to any such forfeiture.

       

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

        

      

       

      
        	
                8

              	
                Tax
                  Avoidance

              

      

       

      
        	 	
                8.1

              	
                No
                  Group Company has incurred nor will any Group Company incur any
                  Tax
                  Liability as a consequence of the relevant Group Company entering
                  into any
                  scheme which has as its main purpose the avoidance of
                  Tax.

              

      

       

      
        	 	
                8.2

              	
                No
                  Group Company has engaged in any transaction or entered into any
                  arrangements in respect of which it is reasonably foreseeable that
                  there
                  may be substituted, or that any Tax Authority may seek to substitute,
                  for
                  the purposes of any Taxation, consideration that is different,
                  in amount
                  or in nature, from the actual consideration given or
                  received.

              

      

       

      
        	
                9

              	
                Miscellaneous

              

      

       

      
        	 	
                9.1

              	
                The
                  Company has not done or been party to the doing of anything which
                  would be
                  an offence under section 766 ICTA (offences in connection with
                  creation,
                  issue or transfer of shares or debentures of overseas
                  companies).

              

      

       

      
        	 	
                9.2

              	
                The
                  Company is not required to bring into account for any Tax purposes
                  any
                  earnings, income, profits or gains of an entity which is resident
                  for Tax
                  purposes in a different jurisdiction from that of the relevant
                  Group
                  Company. In so far as UK Taxation is concerned, this refers to
                  any amounts
                  which might be required to recognised under Chapter IV Part XVII
                  of ICTA
                  (controlled foreign companies) or Section 13 TCGA (attribution
                  of gains to
                  members of certain non-resident
                  companies).

              

      

       

      
        	 	
                9.3

              	
                To
                  the extent that the Group Company has an interest in a controlled
                  foreign
                  company (as defined in section 747 (1) and (2) ICTA), exemption
                  from
                  apportionment does not depend and has not in any accounting period
                  of the
                  Company ending within the last three years depended solely on the
                  controlled company in question pursuing an acceptable distribution
                  policy
                  (as defined by Part 1 Schedule 25 ICTA) and/or satisfying the test
                  set out
                  in Section 748 (3) (the motive
                  test).

              

      

       

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

       

      
        	 	
                9.4

              	
                For
                  each accounting period of the relevant Group Company ending within
                  the
                  last three years, the Disclosure Letter contains all relevant details
                  of:

              

      

       

      
        	 	
                9.4.1

              	
                any
                  Double Taxation Relief arising to the Group
                  Company;

              

      

       

      
        	 	
                9.4.2

              	
                the
                  utilisation of that Double Taxation Relief by way of credit against
                  Tax or
                  deduction in computing Tax by the Group
                  Company;

              

      

       

      
        	 	
                9.4.3

              	
                the
                  amounts (if any) of eligible unrelieved foreign tax (as defined
                  by section
                  896B ICTA) arising to the Group
                  Company;

              

      

       

      
        	 	
                9.4.4

              	
                the
                  amounts (if any) of Double Taxation Relief that the Group Company
                  has been
                  unable to utilise or to treat as eligible unrelieved foreign
                  tax;

              

      

       

      
        	 	
                9.4.5

              	
                the
                  extent (if any) by which the amount of Double Taxation Relief which
                  would
                  otherwise arise or be available for utilisation or treatment as
                  eligible
                  unrelieved foreign tax falls or has fallen to be restricted or
                  which it is
                  reasonably foreseeable that a Tax Authority will seek to treat
                  as
                  restricted by reason of:

              

      

       

      
        	 	
                (a)

              	
                the
                  application of Section 795A (failure to minimise the foreign tax
                  in
                  question) or

              

      

       

      
        	 	
                (b)

              	
                the
                  application of Sections 798 or 803 ICTA (relief restricted to amount
                  arising on profit margin) or

              

      

       

      
        	 	
                (c)

              	
                the
                  existence of, or there having been, any scheme or arrangement the
                  purpose,
                  or one of the main purposes, of which is or was to give rise to
                  an amount
                  of Double Taxation Relief

              

      

       

      where

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

        

      

       

      Double
        Taxation Relief means any Tax Relief referred to in Section 788 ICTA or given
        under Section 790 Taxes whether with respect to Tax withheld, deducted, or
        charged directly or with respect to underlying tax (as defined by Section
        792
        (1) ICTA).

      
        
          
          

        

        
          84

          
            

          

        

        
          
          

        

      

      Schedule
        5

       

      Intellectual
        Property Rights

       

      
        	
                TM Number

              	 	 	
                Mark Text

              	
                 

              	
                 

              	
                Type

              	
                 

              	
                 

              	
                Date

              	
                 

              	
                 

              	
                Status

              	
                 

              	
                 

              	
                Classes

              	
                 

              
	
                2337771

              	
                 

              	
                 

              	
                ATLANTISWEB

              	
                 

              	
                 

              	
                WO

              	
                 

              	
                 

              	
                15.07.2003

              	
                 

              	
                 

              	
                Registered

              	
                 

              	
                 

              	
                09

              	 

      

      
        
          
          

        

        
          85

          
            

          

        

        
          
          

        

      

      Schedule 6

       

      Deferred
        Consideration

       

      
        	
                1.

              	
                Definitions

              

      

       

      
        	
                1.1

              	
                In
                  this schedule (unless inconsistent with the context or otherwise
                  specified) the expressions defined in this paragraph shall have
                  the
                  meanings respectively set opposite them in that paragraph, and
                  subject
                  thereto the expressions defined in this Agreement shall have the
                  same
                  respective meanings wherever used in this
                  schedule:-

              

      

       

      
        	 	
                "Agreed
                  Operating Margins"

              	
                :

              	
                the
                  CMO percentage for the relevant period as set out in the model
                  attached as
                  Appendix 1 less [**]%. The operating margin shall be calculated
                  using the
                  [**] in the model attached as Appendix
                  1;

              

      

       

      
        	 	
                "Buyer's
                  Auditors"

              	
                :

              	
                the
                  current auditors of the Buyer and any successor
                  firm;

              

      

       

      
        	 	
                "Buyer's
                  Group"

              	
                :

              	
                the
                  Buyer, its parent undertakings and its subsidiary undertakings
                  from time
                  to time and any subsidiary undertaking for the time being of a
                  parent
                  undertaking of the Buyer;

              

      

       

      
        	 	
                "CMO

              	
                :

              	
                the
                  margin from operations calculated in accordance with the methodology
                  used
                  by the Buyer's Group and as illustrated in Appendix
                  1;

              

      

       

      
        
          
          

        

        
          86

          
            

          

        

        
          
          

        

      

       

      
        	 	
                "Deferred
                  Consideration"

              	
                :

              	
                the
                  deferred consideration calculated in accordance with paragraph
                  2 of this
                  schedule;

              

      

       

      
        	 	
                "Earn
                  Out Period"

              	
                :

              	
                the
                  period from the first day of the Fiscal Year 2008 to the last day
                  of the
                  Fiscal Year 2010;

              

      

       

      
        	 	
                "European
                  IOI Revenues"

              	
                :

              	
                IOI
                  Revenues generated from clients based in Europe being the forty
                  eight
                  countries forming part of the continent which shall include the
                  European
                  Union and non-European Union
                  countries;

              

      

       

      
        	 	
                "European
                  Union"

              	
                :

              	
                an
                  economic and political confederation of European nations which
                  share a
                  common foreign and security policy and co-operate on justice and
                  home
                  affairs created on 1 November 1993 by the Treaty for European Union
                  (the
                  Maastricht Treaty);

              

      

      

        
          	 	
                  "FCL
                    Products"

                	
                   

                	
                  Software
                    applications derived from or based on [**];

                

        

         

        
          
            
            

          

          
            87

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  "Fiscal
                    Year 2008"

                	
                   

                	
                  the
                    twelve months commencing on 1 May
                    2008;

                

        

         

        
          	 	
                  "Fiscal
                    Year 2009"

                	
                   

                	
                  the
                    twelve months commencing on 1 May
                    2009;

                

        

         

        
          	 	
                  "Fiscal
                    Year 2010"

                	
                   

                	
                  the
                    twelve months commencing on 1 May
                    2010;

                

        

      

       

      
        	 	
                "Global
                  IOI Revenues"

              	
                :

              	
                all
                  IOI Revenues earned anywhere in the world, including European IOI
                  Revenues;

              

      

       

      
        	 	
                "Independent
                  Accountants"

              	
                :

              	
                a
                  firm of accountants of international standing appointed by agreement
                  between the Buyer and the Sellers or, failing such agreement and
                  within 3
                  Business Days of either the Buyer or the Sellers requesting an
                  appointment
                  (following notice to the other) appended by the President for the
                  time
                  being of the Institute of Chartered Accountants in England and
                  Wales;

              

      

       

      
        	 	
                "IOI
                  Group in FIX Division" 

              	
                :

              	
                the
                  Company, the Subsidiary Undertaking and the Buyer's existing IOI
                  business
                  (as Organically Grown);

              

      

       

      
        
          
          

        

        
          88

          
            

          

        

        
          
          

        

      

       

      
        	 	
                "IOI
                  Revenues" 

              	
                :

              	
                shall
                  be defined to include revenues earned in any asset class from the
                  following businesses:

              

      

       

      
        	 	 	
                [**];

              

      

       

      "Other
        Related Potential Business Opportunities":

       

      
        	 	
                (i)   
                  IOI integration professional services directly related to integrating
                  current and future FCL Products with Buyer's Group products or
                  third party
                  products for use by a third party (which for these purposes shall
                  exclude
                  a Buyer's Group company) who will pay for such integration and
                  for the
                  avoidance of doubt shall not include the technical integration
                  as set out
                  in paragraph 2.2 below and any other integration, including but
                  not
                  limited to [**];

              

      

       

      
        	
              	(ii)	
                [**]
                  

              

      

       

      
        	 	
                PROVIDED
                  THAT IOI Revenues shall include [**] save as provided in paragraph
                  5.1.11.

              

      

      

      
        	 	
                "Organically
                  Grown"

              	
                :

              	
                grown
                  by the development of the existing business of the Company, the
                  Subsidiary
                  Undertaking and the Buyer's Group but excluding
                  [**];

              

      

      
      

       

      
        
          
          

        

        
          89

          
            

          

        

        
          
          

        

      

       

      
        	 	
                "Viewer"

              	
                :

              	
                A
                  software application developed by the Company which is able to
                  access and
                  display messages and data shared within
                  ioinet.

              

      

       

      For
        the
        purposes of defining IOI Revenues in US$, all UK£ revenues shall be converted
        into US$ at a ratio of [**]. All EU€ revenues shall be first converted into UK£
at prevailing market rates ([**]) and shall then be converted to US$ from
        UK£ at
        the ratio of [**]. Rest of the world revenues shall be converted to US$ at
        prevailing market rates ([**]). 

       

      
        	
                2.

              	
                Payment
                  of Deferred Consideration

              

      

       

      
        	
                2.1

              	
                As
                  further consideration for the sale of the Shares, the Sellers shall
                  be
                  entitled to the following payments in addition to the payment to
                  be made
                  at Completion in accordance with Clause 3 (such payments to be
                  divided
                  between the Sellers pro rata on the basis of their shareholding
                  in the
                  Company as set out in column 3 of Schedule
                  1):

              

      

       

      
        	 	
                2.1.1

              	
                within
                  thirty (30) days of the last Business Day of the first calendar
                  month of
                  the Fiscal Year 2009:

              

      

       

      
        	 	
                (a)

              	
                £[**],
                  provided that the IOI Group in FIX Division has achieved not less
                  than
                  US$[**] of Global IOI Revenues in Fiscal Year
                  2008;

              

      

       

      
        	 	
                (b)

              	
                £[**],
                  provided that the IOI Group in FIX Division has achieved not less
                  than
                  US$[**] of European IOI Revenues in Fiscal Year 2008;
                  and

              

      

       

      
        	 	
                (c)

              	
                provided
                  that the IOI Group in FIX Division has achieved not less than US$[**]
                  of
                  Global IOI Revenues in Fiscal Year 2008, a cash payment equal to
                  [**]% of
                  Global IOI Revenues in Fiscal Year 2008 up to US$[**], plus [**]%
                  of
                  Global IOI Revenues in Fiscal Year 2008 between US$[**] and US$[**],
                  plus[**]% of Global IOI Revenues in Fiscal Year 2008 in excess
                  of
                  US$[**].

              

      

       

      
        
          
          

        

        
          90

          
            

          

        

        
          
          

        

      

       

      
        	 	
                2.1.2

              	
                within
                  thirty (30) days of the last Business Day of the first calendar
                  month
                  after the end of Fiscal Year 2009:

              

      

       

      
        	 	
                (a)

              	
                £[**],
                  provided that the IOI Group in FIX Division has achieved not less
                  than
                  US$[**] of Global IOI Revenues in Fiscal Year
                  2009;

              

      

       

      
        	 	
                (b)

              	
                £[**],
                  provided that the IOI Group in FIX Division has achieved not less
                  than
                  US$[**] of European IOI Revenues in Fiscal Year 2009;
                  and

              

      

       

      
        	 	
                (c)

              	
                provided
                  that the IOI Group in FIX Division has achieved not less than US$[**]
                  of
                  Global IOI Revenues in Fiscal Year 2009, a cash payment equal to
                  [**]% of
                  Global IOI Revenues in Fiscal Year 2009 up to US$[**], plus [**]%
                  of
                  Global IOI Revenues in Fiscal Year 2009 between US$[**] and $[**],
                  plus
                  [**]% of Global IOI Revenues in Fiscal Year 2009 in excess of
                  US$[**].

              

      

       

      
        	 	
                2.1.3

              	
                within
                  thirty (30) days of the last Business Day of the first calendar
                  month
                  after the end of Fiscal Year 2010:

              

      

       

      
        	 	
                (a)

              	
                £[**],
                  provided that the IOI Group in FIX Division has achieved not less
                  than
                  US$[**] of Global IOI Revenues in Fiscal Year
                  2010;

              

      

       

      
        	 	
                (b)

              	
                £[**],
                  provided that the IOI Group in FIX Division has achieved not less
                  than
                  US$[**] of European IOI Revenues in Fiscal Year 2010;
                  and

              

      

       

      
        
          
          

        

        
          91

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (c)

              	
                provided
                  that the IOI Group in FIX Division has achieved not less than US$[**]
                  of
                  Global IOI Revenues in Fiscal Year 2010, a cash payment equal to
                  [**]% of
                  Global IOI Revenues in Fiscal Year 2010 up to US$[**], plus [**]%
                  of
                  Global IOI Revenues in Fiscal Year 2010 between US$[**] and $[**],
                  plus
                  [**]% of Global IOI Revenues in Fiscal Year 2009 in excess of
                  US$[**];

              

      

       

      in
        each
        case subject to [**] for the IOI Group in FIX Division. During the Earn Out
        Period, the targets set out at paragraphs 2.1.1, 2.1.2 and 2.1.3 may be adjusted
        by the mutual agreement of the Buyer and the Sellers. For the purpose of
        this
        paragraph, agreement by the Sellers to any adjustment to the targets set
        will
        require the consent of those Sellers who hold at least [**] per cent. of
        the
        Shares as at the Completion Date. 

       

      
        	
                2.2

              	
                In
                  addition, as further consideration for the sale of the Shares,
                  the Sellers
                  shall be entitled to the sum of US$1,000,000 on the successful
                  technical
                  integration (as defined below in this clause) of the combined IOI
                  service
                  of the Seller and the Buyer for customer use as soon as possible
                  but in
                  any event within six months of Completion. The Buyer and Sellers
                  shall
                  work together to accomplish the successful technical integration
                  of the
                  combined IOI service as early as is commercially reasonable after
                  Completion and in any event not more than 6 months following Completion.
                  For the purposes of this clause the successful technical integration
                  of
                  the combined IOI service of the Buyer and the Company shall be
                  deemed to
                  have taken place when after first mutually agreeing to a programme
                  of
                  development tasks to accomplish the objectives set forth below
                  in such
                  time that in fact has no materially adverse effect upon the parties'
                  ability to complete the agreed development tasks within the time
                  set forth
                  in this paragraph 2.2:

              

      

       

      
        
          
          

        

        
          92

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (i)

              	
                FIX
                  City has completed an agreed programme of development tasks which
                  [**];

              

      

       

      
        	 	
                (ii)

              	
                FIX
                  City has completed an agreed programme of development tasks which
                  [**];

              

      

       

      
        	 	
                (iii)
                  

              	
                [**];

              

      

       

      
        	 	
                (iv)

              	
                Fix
                  City has completed an agreed programme of development tasks which
                  [**];
                  and

              

      

       

      
        	 	
                (v)

              	
                ioinet
                  has been rebranded to include the NYFIX logo and colour scheme.
                  

              

      

       

      
        	 	
                (v)

              	
                In
                  any event where the Buyer fails to complete agreed development
                  tasks for
                  which it is solely responsible (and has no FIX City dependencies)
                  and
                  where any such failure in fact has a materially adverse effect
                  upon Fix
                  City's ability to complete the agreed development tasks within
                  the time
                  set forth in this paragraph 2.2, and further, insofar as FIX City
                  has
                  first brought any such material failure to the attention of the
                  Buyer
                  within such time that the Buyer may reasonably remedy such failure
                  without
                  such failure having a materially adverse effect upon Fix City's
                  ability to
                  complete the agreed development tasks within the time set forth
                  in this
                  paragraph 2.2. 

              

      

       

      
        	
                2.3

              	
                For
                  the avoidance of doubt, the further consideration payments set
                  out in this
                  paragraph 2 shall (save in the case of paragraph 2.2), subject
                  to the
                  satisfaction of the relevant conditions set out above, be payable
                  [**]
                  under this paragraph 2.

              

      

       

      
        	
                3.

              	
                Set-off
                  and Deduction

              

      

       

      The
        Buyer
        shall be entitled to set-off against any amount otherwise payable to the
        Sellers
        pursuant to the provisions of this schedule any amount payable to the Buyer
        by
        the Sellers in the event of a breach of any of the Warranties or payable
        by the
        Sellers to the Buyer under the Tax Deed.

       

      
        
          
          

        

        
          93

          
            

          

        

        
          
          

        

      

       

      
        	
                4.

              	
                Treatment
                  of the IOI Group in FIX
                  Division

              

      

      

      
        	
                4.1

              	
                The
                  Buyer acknowledges and agrees that during the Earn Out Period,
                  the Buyer
                  shall [**] this Schedule 6. In addition, the Buyer acknowledges
                  and agrees
                  (having regard to the manner in which the Consideration for the
                  Shares has
                  been calculated) that the Sellers have a legitimate interest in
                  ensuring
                  that the IOI Group in FIX Division is maintained in the relevant
                  years
                  without prejudicing the business of the Buyer.

              

      

       

      
        	
                5.

              	
                Undertakings
                  of the Buyer

              

      

       

      
        	
                5.1

              	
                The
                  Buyer agrees and undertakes and the Company and the Subsidiary
                  Undertaking
                  agree and undertake (where relevant) with each of the Sellers that
                  during
                  the Earn Out Period:

              

      

       

      
        	 	
                5.1.1

              	
                it
                  will provide the Company and the Subsidiary Undertaking with
                  [**];

              

      

       

      
        	 	
                5.1.2

              	
                the
                  Company shall not [**];

              

      

       

      
        	 	
                5.1.3

              	
                to
                  procure that the business of the Company and/or the Subsidiary
                  Undertaking
                  are [**];

              

      

       

      
        	 	
                5.1.4

              	
                ensure
                  that any goods or services provided to or in respect of the Company
                  or the
                  Subsidiary Undertaking by the Buyer
                  [**];

              

      

       

      
        	 	
                5.1.5

              	
                that
                  the memorandum and articles of association of the Company
                  [**];

              

      

       

      
        	 	
                5.1.6

              	
                it
                  will not change its accounting reference
                  date;

              

      

       

      
        	 	
                5.1.7

              	
                neither
                  the Company nor the Subsidiary Undertaking shall
                  [**];

              

      

       

      
        	 	
                5.1.8

              	
                the
                  Sellers shall be provided with [**] so that the Sellers can monitor
                  progress against the milestones;

              

      

       

      
        
          
          

        

        
          94

          
            

          

        

        
          
          

        

      

       

      
        	 	
                5.1.9

              	
                [**];

              

      

       

      
        	 	
                5.1.10

              	
                the
                  Buyer will not require the Company to do anything (i) (save as
                  provided in
                  paragraph 5.1.12 below) other than on an arms length basis
                  [**];

              

      

       

      
        	 	
                5.1.11

              	
                that
                  to the extent that any [**];

              

      

       

      
        	 	
                5.1.12

              	
                [**],
                  the Buyer and the Sellers will negotiate in good faith whether
                  there
                  should be any adjustment to any of the provisions of this Schedule
                  6
                  [**];

              

      

       

      
        	 	
                5.1.13

              	
                the
                  Sellers shall consider any proposals made by the Buyer [**]. However,
                  the
                  Sellers will not withhold consent [**]. In the event of any termination
                  of
                  the agreement with [**] for any reason, the Sellers agree to
                  [**];

              

      

       

      
        	 	
                5.1.14

              	
                the
                  Buyer will co-operate with the Sellers to introduce the Company
                  to the
                  Buyer's Group Clients;

              

      

       

      
        	 	
                5.1.15

              	
                the
                  Buyer will use reasonable endeavours to file an application with
                  the FSA
                  for authorisation as soon as reasonably
                  practicable;

              

      

       

      in
        each
        case, where relevant, save to the extent that the Company otherwise agrees
        with
        the Sellers in writing.

       

      
        	
                6.

              	
                Calculation
                  of the IOI Revenues 

              

      

       

      
        	
                6.1

              	
                The
                  Buyer shall procure that the Company issue a certificate ("IOI
                  Revenue
                  Certificate") in respect of the relevant years stating the European
                  IOI
                  Revenue and the Global IOI Revenue for that year.
                  

              

      

       

      
        	
                6.2

              	
                The
                  Sellers may, by notice (the "Notice") to the Buyer delivered within
                  14
                  days of receipt by the Sellers of the IOI Revenue Certificate,
                  require
                  that [**] for determination in which case any referral shall be
                  deemed a
                  joint referral by the Sellers and the Buyer. [**] and any other
                  matter
                  referred to them shall be provided to the Buyer and the Sellers
                  within 14
                  days of receipt of the Notice. If no Notice is served the IOI Revenue
                  Certificate shall be deemed agreed by the
                  Sellers.

              

      

       

      
        
          
          

        

        
          95

          
            

          

        

        
          
          

        

      

       

      
        	
                6.3

              	
                If
                  the Sellers continue to dispute the IOI Certificate by notifying
                  the Buyer
                  in writing, within 7 days of receipt of the Buyer's Auditors
                  determination, requiring that the calculation of European IOI Revenue
                  and
                  the Global IOI Revenue be reviewed, the dispute will be referred
                  to the
                  Independent Accountants (acting as experts) in which case the referral
                  shall be deemed a joint referral by the Sellers and the Buyer.
                  If no such
                  notice is served the decision of the Buyer's Auditors shall be
                  deemed
                  agreed by the Sellers. The Sellers shall be responsible for the
                  costs of
                  the Independent Accountants, save where the Independent Accountants
                  determine that the Sellers are entitled to such sums which exceed
                  those
                  set out in the IOI Certificate. The decision of the Independent
                  Accountants on the level of European IOI Revenue and the Global
                  IOI
                  Revenue and any other matter referred to them shall (except in
                  the case of
                  manifest error) be final and binding on the Sellers and the Buyer.
                  

              

      

       

      
        	
                6.4

              	
                The
                  Buyer shall procure that the Independent Accountants and the Sellers
                  are
                  each given access to all working papers prepared by the Company
                  and the
                  Subsidiary Undertaking or on their behalf and given any information
                  and
                  explanations they may reasonably
                  request.

              

      

       

      
        	
                6.5

              	
                Upon
                  the European IOI Revenue and the Global IOI Revenue being determined
                  by
                  the Buyer's Auditors or the Independent Accountants in accordance
                  with
                  this schedule, the Buyer shall notify the
                  Sellers.

              

      

      
        
          
          

        

        
          96

          
            

          

        

        
          
          

        

      

      Appendix
        1

       

      Confidential
        Materials omitted and filed separately with the Securities and Exchange
        Commission.

      

      [**]

      
        
          
          

        

        
          97

          
            

          

        

        
          
          

        

      

      Schedule
        7

       

      Relevant
        Competitors

       

      [**]

      
        
          
          

        

        
          98

          
            

          

        

        
          
          

        

      

      Schedule
        8

       

      Bank
        Balance Figures 

      

      
        	
                Description

              	
                GBP

              
	
                Starting
                  Bank Balance

              	
                [**]

              
	
                Outstanding
                  Invoices

              	
                [**]

              
	 	 
	
                Accrued
                  payables

              	 
	
                Outstanding
                  Creditors

              	
                [**]

              
	
                Tax
                  Provision 2007

              	
                [**]

              
	
                Tax
                  Provision Q1 2008

              	
                [**]

              
	
                VAT
                  Payable Apr 2008

              	
                [**]

              
	
                VAT
                  Provision Mar 2008

              	
                [**]

              
	
                PAYE/NI

              	
                [**]

              
	
                Ending
                  Bank Balance

              	
                [**]

              
	 	 
	
                Dividend
                  at Close

              	
                [**]

              
	
                Profit
                  left in the company

              	
                [**]

              
	 	 
	
                Actual
                  Closing Bank Balance

              	
                [**]

              
	
                assuming
                  we pay no-one, and no-one pays
                  us

              

      

      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

      
        	
                SIGNED
                  by

              	 	
                )

              	 	 	 	 
	
                KARL
                  SPENCER BREEZE

              	 	
                )

              	 	 	 	 
	
                in
                  the presence of

              	 	
                )

              	 	
                /s/
                  K. Breeze

              	 	 
	 	 	
                )

              	 	
                Karl
                  Spencer Breeze

              	 	 
	 	 	 	 	 	 	 
	
                SIGNED
                  by

              	 	
                )

              	 	 	 	 
	
                AMY
                  JANE MUDDIMER

              	 	
                )

              	 	 	 	 
	
                in
                  the presence of

              	 	
                )

              	 	
                /s/
                  A.J. Muddimer

              	 	 
	
                 

              	 	)	 	
                Amy
                  Jane Muddimer

              	 	 
	 	 	 	 	 	 	 
	
                SIGNED
                  by

              	 	
                )

              	 	 	 	 
	
                PAUL
                  DENBY SCOTT

              	 	
                )

              	 	 	 	 
	
                in
                  the presence of

              	 	
                )

              	 	
                /s/
                  Paul Scott

              	 	 
	 	 	
                )

              	 	
                Paul
                  Denby Scott

              	 	 
	 	 	 	 	 	 	 
	
                SIGNED
                  by

              	 	
                )

              	 	 	 	 
	
                ANDREW
                  SOUTHON

              	 	
                )

              	 	 	 	 
	
                in
                  the presence of

              	 	
                )

              	 	
                /s/
                  Andrew Southon

              	 	 
	 	 	
                )

              	 	
                Andrew
                  Southon

              	 	 
	 	 	 	 	 	 	 
	
                SIGNED
                  by

              	 	
                )

              	 	 	 	 
	
                MATTHEW
                  GEORGE BARKWAY

              	 	
                )

              	 	 	 	 
	
                in
                  the presence of

              	 	
                )

              	 	
                /s/
                  Matthew Barkway

              	 	 
	 	 	
                )

              	 	
                Matthew
                  George Barkway

              	 	 
	 	 	 	 	 	 	 
	
                SIGNED
                  by

              	 	
                )

              	 	 	 	 
	
                duly
                  authorised on behalf of

              	 	
                )

              	 	
                /s/
                  Christopher
                  G. Smith

              	 	
                /s/
                  Paul Kelly

              
	 	 	 	 	
                Christopher
                  G. Smith

              	 	
                Paul
                  Kelly

              
	
                NYFIX
                  GLOBAL SERVICES, LIMITED

              	 	
                )

              	 	 	 	 
	 	 	 	 	 	 	 
	
                SIGNED
                  by

              	 	
                )

              	 	 	 	 
	
                duly
                  authorised on behalf of

              	 	
                )

              	 	
                /s/
                  Steven R. Vigliotti

              	 	 
	
                NYFIX,
                  INC

              	 	
                )

              	 	
                Steven
                  R. Vigliotti

              	 	 

      

      
        
          
          

        

        
          100Execution
      Version

    

    AGREEMENT
      AND PLAN OF MERGER

    

    DATED
      AS OF AUGUST 18, 2008

    

    BY
      AND AMONG

    

    ANAREN,
      INC., A NEW YORK CORPORATION,

    

    ANAREN
      ACQUISITION, INC., A COLORADO CORPORATION,

    

    UNICIRCUIT,
      INC., A COLORADO CORPORATION

    

    AND

    

    OWEN
      AGENCY, LLC, A COLORADO LIMITED LIABILITY COMPANY, AS STOCKHOLDERS’
AGENT

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Execution
      Version

    TABLE
      OF CONTENTS

    
      

        
          	 	 	
                  Page:

                
	
                  §1.

                	
                  Certain
                    Definitions

                	
                  2

                
	 	 	 
	
                  §2.

                	
                  Merger;
                    Merger Consideration; Closing

                	
                  11

                
	
                  (a)

                	
                  Effective
                    Time

                	
                  11

                
	
                  (b)

                	
                  Surviving
                    Corporation

                	
                  11

                
	
                  (c)

                	
                  Articles
                    of Incorporation

                	
                  11

                
	
                  (d)

                	
                  By-Laws

                	
                  11

                
	
                  (e)

                	
                  Directors
                    and Officers

                	
                  11

                
	
                  (f)

                	
                  Effect
                    of Merger

                	
                  11

                
	
                  (g)

                	
                  Merger
                    Consideration

                	
                  11

                
	
                  (h)

                	
                  Cancellation
                    of Shares

                	
                  12

                
	
                  (i)

                	
                  Status
                    of Buyer Shares

                	
                  13

                
	
                  (j)

                	
                  Escrow
                    of Merger Consideration

                	
                  13

                
	
                  (k)

                	
                  Stockholders’
                    Agent

                	
                  14

                
	
                  (l)

                	
                  Closing

                	
                  15

                
	
                  (m)

                	
                  Deliveries
                    by the Company

                	
                  15

                
	
                  (n)

                	
                  Deliveries
                    by Buyer and Parent

                	
                  16

                
	
                  (o)

                	
                  Procedure
                    for Shares

                	
                  17

                
	
                  (p)

                	
                  Dissenting
                    Shares

                	
                  18

                
	 	 	 
	
                  §3.

                	
                  Representations
                    and Warranties of the Company

                	
                  18

                
	
                  (a)

                	
                  Organization
                    of the Company

                	
                  19

                
	
                  (b)

                	
                  Authorization
                    of Transaction

                	
                  19

                
	
                  (c)

                	
                  Non-contravention

                	
                  19

                
	
                  (d)

                	
                  Brokers’
                    Fees

                	
                  19

                
	
                  (e)

                	
                  The
                    Company Stock

                	
                  20

                
	
                  (f)

                	
                  No
                    Subsidiaries

                	
                  20

                
	
                  (g)

                	
                  Qualification

                	
                  20

                
	
                  (h)

                	
                  Capitalization

                	
                  20

                
	
                  (i)

                	
                  Financial
                    Statements

                	
                  20

                
	
                  (j)

                	
                  Events
                    Subsequent to Most Recent Fiscal Month End

                	
                  20

                
	
                  (k)

                	
                  Tax
                    Matters

                	
                  21

                
	
                  (l)

                	
                  Real
                    Property

                	
                  21

                
	
                  (m)

                	
                  Powers
                    of Attorney

                	
                  22

                
	
                  (n)

                	
                  Litigation

                	
                  22

                
	
                  (o)

                	
                  Employee
                    Benefit Plans and Related Matters

                	
                  22

                
	
                  (p)

                	
                  Certain
                    Business Relationships with the Company

                	
                  25

                
	
                  (q)

                	
                  Absence
                    of Undisclosed Liabilities

                	
                  25

                
	
                  (r)

                	
                  Absence
                    of Changes

                	
                  25

                
	
                  (s)

                	
                  Government
                    Approvals

                	
                  27

                
	
                  (t)

                	
                  Compliance
                    with Laws

                	
                  27

                
	
                  (u)

                	
                  Title
                    to Assets

                	
                  27

                
	
                  (v)

                	
                  Contracts

                	
                  27

                
	
                  (w)

                	
                  Intellectual
                    Property

                	
                  28

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        Execution
          Version

         

        
          	
                  (x)

                	
                  Real
                    Property Leases

                	
                  30

                
	
                  (y)

                	
                  Environmental
                    Matters

                	
                  30

                
	
                  (z)

                	
                  Employees,
                    Labor Matters, etc

                	
                  31

                
	
                  (aa)

                	
                  Insurance

                	
                  31

                
	
                  (bb)

                	
                  Product
                    and Service Warranties

                	
                  32

                
	
                  (cc)

                	
                  Product
                    Liability

                	
                  32

                
	
                  (dd)

                	
                  Inventory

                	
                  32

                
	
                  (ee)

                	
                  Receivables
                    and Payables

                	
                  32

                
	
                  (ff)

                	
                  No
                    Material Adverse Effect

                	
                  33

                
	
                  (gg)

                	
                  Suppliers
                    and Customers

                	
                  33

                
	
                  (hh)

                	
                  Indebtedness

                	
                  33

                
	
                  (ii)

                	
                  Government
                    Contracts

                	
                  33

                
	
                  (jj)

                	
                  Books
                    and Records

                	
                  35

                
	
                  (kk)

                	
                  Condition
                    of Assets

                	
                  35

                
	
                  (ll)

                	
                  Trade
                    Controls

                	
                  35

                
	
                  (mm)

                	
                  Ethical
                    Practices

                	
                  36

                
	
                  (nn)

                	
                  Stockholder
                    Voting Requirements

                	
                  36

                
	
                  (oo)

                	
                  SERP

                	
                  36

                
	
                  (pp)

                	
                  Disclosure

                	
                  36

                
	 	 	 
	
                  §4.

                	
                  Representations
                    and Warranties of Parent

                	
                  36

                
	
                  (a)

                	
                  Organization
                    of Parent and Buyer

                	
                  36

                
	
                  (b)

                	
                  Authorization
                    of Transaction

                	
                  36

                
	
                  (c)

                	
                  Non-contravention

                	
                  37

                
	
                  (d)

                	
                  Brokers’
                    Fees

                	
                  37

                
	
                  (e)

                	
                  Disclosure

                	
                  37

                
	 	 	 
	
                  §5.

                	
                  Pre-Closing
                    Covenants

                	
                  37

                
	
                  (a)

                	
                  General

                	
                  37

                
	
                  (b)

                	
                  Notices
                    and Consents

                	
                  37

                
	
                  (c)

                	
                  Operation
                    of Business

                	
                  38

                
	
                  (d)

                	
                  Preservation
                    of Business

                	
                  38

                
	
                  (e)

                	
                  Full
                    Access

                	
                  38

                
	
                  (f)

                	
                  Notice
                    of Developments

                	
                  38

                
	
                  (g)

                	
                  Exclusivity

                	
                  38

                
	
                  (h)

                	
                  Maintenance
                    of Real Property

                	
                  38

                
	
                  (i)

                	
                  Leases

                	
                  39

                
	
                  (j)

                	
                  Title
                    Insurance, Surveys and Certificate of Compliance

                	
                  39

                
	
                  (k)

                	
                  The
                    Company’s Stockholders’ Meeting

                	
                  39

                
	
                  (l)

                	
                  Employment
                    Agreements

                	
                  39

                
	
                  (m)

                	
                  Identified
                    Liabilities

                	
                  39

                
	
                  (n)

                	
                  Line
                    of Credit.

                	
                  39

                
	
                  (o)

                	
                  Adjustments

                	
                  39

                
	
                  (p)

                	
                  Letters
                    of Credit

                	
                  39

                
	
                  (q)

                	
                  Transaction
                    Expenses

                	
                  39

                
	
                  (r)

                	
                  Termination
                    of Certain Equity Based Rights and Certain Bonus
                    Participation

                	
                  39

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        
           

          Execution
            Version

           

        

        
          	
                  §6.

                	
                  Post-Closing
                    Covenants

                	
                  40

                
	
                  (a)

                	
                  General

                	
                  40

                
	
                  (b)

                	
                  Litigation
                    Support

                	
                  40

                
	
                  (c)

                	
                  Transition

                	
                  40

                
	
                  (d)

                	
                  Satisfaction
                    of Real Estate Mortgage Loan

                	
                  40

                
	
                  (e)

                	
                  No
                    338 Election

                	
                  40

                
	 	 	 
	
                  §7.

                	
                  Conditions
                    to Obligation to Close

                	
                  41

                
	
                  (a)

                	
                  Conditions
                    to Buyer’s Obligation

                	
                  41

                
	
                  (b)

                	
                  Conditions
                    to the Company’s Obligation

                	
                  43

                
	 	 	 
	
                  §8.

                	
                  Remedies
                    for Breaches of this Agreement

                	
                  44

                
	
                  (a)

                	
                  Survival
                    of Representations and Warranties

                	
                  44

                
	
                  (b)

                	
                  Tipping
                    Basket

                	
                  44

                
	
                  (c)

                	
                  Indemnification
                    Provisions for Buyer Indemnitees’ Benefit

                	
                  44

                
	
                  (d)

                	
                  Indemnification
                    Provisions for the Stockholders’ Benefit

                	
                  45

                
	
                  (e)

                	
                  Limitations
                    for Adjustment Items

                	
                  45

                
	
                  (f)

                	
                  Matters
                    Involving Third Parties

                	
                  45

                
	
                  (g)

                	
                  Purchase
                    Price Adjustment

                	
                  47

                
	
                  (h)

                	
                  Other
                    Indemnification Provisions

                	
                  47

                
	 	 	 
	
                  §9.

                	
                  Tax
                    Matters.

                	
                  47

                
	
                  (a)

                	
                  Straddle
                    Period

                	
                  47

                
	
                  (b)

                	
                  Responsibility
                    for Filing Tax Returns

                	
                  47

                
	
                  (c)

                	
                  Cooperation
                    on Tax Matters

                	
                  47

                
	
                  (d)

                	
                  Certain
                    Taxes and Fees

                	
                  48

                
	 	 	 
	
                  §10.

                	
                  Termination

                	
                  48

                
	
                  (a)

                	
                  Termination
                    of Agreement

                	
                  48

                
	
                  (b)

                	
                  Effect
                    of Termination

                	
                  49

                
	
                  (c)

                	
                  Fiduciary
                    Duties

                	
                  49

                
	 	 	 
	
                  §11.

                	
                  Miscellaneous

                	
                  50

                
	
                  (a)

                	
                  Press
                    Releases and Public Announcements

                	
                  50

                
	
                  (b)

                	
                  No
                    Third-Party Beneficiaries

                	
                  50

                
	
                  (c)

                	
                  Entire
                    Agreement

                	
                  50

                
	
                  (d)

                	
                  Succession
                    and Assignment

                	
                  50

                
	
                  (e)

                	
                  Counterparts

                	
                  51

                
	
                  (f)

                	
                  Headings

                	
                  51

                
	
                  (g)

                	
                  Notices

                	
                  51

                
	
                  (h)

                	
                  Governing
                    Law

                	
                  52

                
	
                  (i)

                	
                  Specific
                    Performance

                	
                  52

                
	
                  (j)

                	
                  Submission
                    to Jurisdiction

                	
                  52

                
	
                  (k)

                	
                  Amendments
                    and Waivers

                	
                  53

                
	
                  (l)

                	
                  Severability

                	
                  53

                
	
                  (m)

                	
                  Expenses

                	
                  53

                
	
                  (n)

                	
                  Construction

                	
                  53

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

          Execution
            Version

           

        

        
          	
                  (o)

                	
                  Incorporation
                    of Exhibits, Annexes, and Schedules

                	
                  53

                
	
                  (p)

                	
                  Time
                    of the Essence

                	
                  53

                

        

      

    

     

    EXHIBITS

    

      
        	
                Exhibit
                  A

              	
                Form
                  of Statement of Merger

              
	
                Exhibit
                  B

              	
                Form
                  of Employment Agreement for Kerry Bode

              
	
                Exhibit
                  C

              	
                Form
                  of Employment Agreement for Lance Riley

              
	
                Exhibit
                  D

              	
                Form
                  of Employment Agreement for Ty Gragg

              
	
                Exhibit
                  E

              	
                Form
                  of Employment Agreement for Anthony Carfagna

              
	
                Exhibit
                  F

              	
                Opinion
                  of Unicircuit Counsel

              
	
                Exhibit
                  G

              	
                Opinion
                  of Buyer’s Counsel

              
	
                Exhibit
                  H

              	
                Escrow
                  Agreement

              
	
                Exhibit
                  I

              	
                Paying
                  Agent Agreement

              
	
                Exhibit
                  J

              	
                Financial
                  Statements of Unicircuit

              

      

    

    

    Company
      Disclosure Schedule

    

    Buyer
      Disclosure Schedule

    

    Schedule
      §5(o)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Execution
      Version

    AGREEMENT
      AND PLAN OF MERGER

     

    AGREEMENT
      AND PLAN OF MERGER, dated as of August 18, 2008, by and among Anaren, Inc.,
      a
      New York Corporation (the “Parent”),
      Anaren Acquisition, Inc., a Colorado corporation (the “Merger
      Sub”
or
      “Buyer”),
      Unicircuit, Inc., a Colorado corporation (“Unicircuit”
or
      the
“Company”),
      and
      Owen Agency, LLC, a Colorado limited liability company as Stockholders’ Agent
      (collectively, the “Parties”).

    

    R
      E C
      I T A L S

     

    A. The
      Company is in the business of manufacturing complex printed circuit boards
      (the
“Business”);
      and

     

    B. Buyer
      and
      the Company desire to consummate a business combination in a transaction
      whereby, upon the terms and subject to the conditions set forth in this
      Agreement, Buyer will merge with and into the Company (the “Merger”),
      each
      holder of common and preferred stock of the Company (the “Company
      Stock”)
      will
      be entitled to receive his, her, or its share of the Merger Consideration as
      provided herein and subject to the terms hereof, and the Company will be the
      surviving corporation in the Merger; and

     

    C. The
      Board
      of Directors of the Company has unanimously determined and resolved that the
      Merger and all of the transactions contemplated by this Agreement are in the
      best interest of the holders of all of the issued and outstanding shares of
      capital stock of the Company (the “Shares”),
      and
      has approved this Agreement in accordance with the Colorado Business Corporation
      Act, as amended (the “CBCA”);
      and

     

    D. The
      Board
      of Directors of Buyer has unanimously determined and resolved that the Merger
      and all of the transactions contemplated by this Agreement are in the best
      interest of the holder of all of the issued and outstanding shares of capital
      stock of Buyer, and that the Merger is fair and advisable, and has approved
      and
      adopted this Agreement in accordance with the CBCA; and

     

    E. Each
      of
      the Parties desire to make certain representations, warranties and agreements
      in
      connection with the Merger and also to prescribe various conditions thereto;
      and

     

    F. As
      an
      inducement for Buyer to enter into this Agreement, and as a condition to the
      closing of the transactions contemplated hereby, Kerry Bode, Lance Riley, Ty
      Gragg and Anthony Carfagna have each agreed to enter into the Employment
      Agreements attached hereto as Exhibits B, C, D and E, respectively;
      and

     

    G. Buyer
      and
      the Company have taken all other action or intend to take all action necessary
      in connection with the execution of this Agreement and the transactions
      contemplated hereby, including without limitation, obtaining all consents and
      approvals required in connection herewith.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Execution
      Version

     

    W
      I T
      N E S S E T H

     

    For
      good
      and valuable consideration, the adequacy and receipt of which are hereby
      acknowledged, the Parties, intending to be legally bound, hereby agree as
      follows:

     

    §1. Certain
      Definitions

     

    As
      used
      in this Agreement each of the following terms shall have the following
      meaning:

     

    Adverse
      Consequences
      shall
      mean all actions, suits, proceedings, hearings, investigations, charges,
      complaints, claims, demands, injunctions, judgments, orders, decrees, rulings,
      damages, dues, penalties, fines, costs, amounts paid in settlement, liabilities,
      obligations, Taxes, liens, Encumbrances, losses, expenses, and fees, including
      court costs and reasonable attorneys’ fees and expenses.

     

    Affiliate
      shall
      mean an affiliate of an individual or entity as the term “affiliate” is defined
      in the rules and regulations promulgated under the Securities Act of 1933,
      as
      amended.

     

    Agreement
      shall
      mean this Agreement and Plan of Merger and all schedules and exhibits
      hereto.

     

    Audit
      shall
      mean any audit, assessment of Taxes, any other examination or claim by any
      Tax
      Authority, judicial, administrative or other proceeding or litigation (including
      any appeal of any such judicial, administrative or other proceeding or
      litigation) relating to Taxes and/or Tax Returns.

     

    Balance
      Sheet
      shall
      mean the audited balance sheet of the Company dated as of December 31,
      2007.

     

    Business shall
      have the meaning provided such term in Recital Paragraph A.

     

    Buyer shall
      have the meaning provided such term in the preamble to this
      Agreement.

     

    Buyer
      Disclosure Schedule
      means
      the disclosure schedule of Buyer that is part of this Agreement and relates
      to
§4 of this Agreement.

     

    Buyer
      Indemnitees
      shall
      have the meaning set forth in §8(c). 

     

    CBCA shall
      have the meaning provided such term in Recital Paragraph C.

     

    Closing
      shall
      have the meaning set forth in §2(l) 

     

    Closing
      Date shall
      have meaning set forth in §2(k).

     

    Closing
      Date Cash Consideration
      has the
      meaning set forth in §2(g)(1).

     

    Closing
      Schedule
      - see
“Transaction Expenses” defined below.

    
      
         

      

      
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    Execution
      Version

     

    CO
      Secretary
      shall
      have meaning set forth in §2(a).

     

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

     

    Company shall
      have the meaning provided such term in the preamble to this
      Agreement.

     

    Company
      Disclosure Schedule
      shall
      mean the disclosure schedule of the Company that is part of this Agreement
      and
      relates to §3 of this Agreement.

     

    Company
      Indemnitees
      shall
      have the meaning set forth in §8(d).

     

    Company
      Stock shall
      have the meaning provided such term in Recital Paragraph B.

     

    Computer
      Equipment
      shall
      mean all computer equipment, devices and accessories (including, but not limited
      to, personal computers, workstations, servers, data processing hardware and
      related telecommunications equipment, media (e.g. CD Rom, floppy disks and
      tapes)) used in Business.

     

    Confidential
      Information
      shall
      mean technical, commercial, marketing, strategic, business or other information,
      data, plans and material of the kind either identified as confidential or
      proprietary or which a reasonable person would recognize to be confidential
      or
      proprietary, either from its nature or the manner of its disclosure including,
      but not limited to, any process, design, formula, know-how, information,
      invention, trade secret, Technology, Programs, list of customers, product
      documentation, development work, lead list or research, marketing or other
      data
      which has not entered the public domain.

     

    Contract
      shall
      mean, with respect to a Party, any contract, license agreement, commitment,
      obligation, lease, or restriction of any kind to which such Party is a party
      or
      by which such Party is bound or to which any of such Party’s assets are subject,
      including but not limited to, Third-Party Licenses.

     

    Disclosure
      Schedule
      shall
      mean Buyer Disclosure Schedule or the Company Disclosure Schedule, as the
      context requires.

     

    Dissenting
      Shares
      shall
      have the meaning set forth in §2(p). 

     

    Employment
      Agreements
      shall
      mean the Kerry Bode Employment Agreement, the Lance Riley Employment Agreement,
      the Ty Gragg Employment Agreement and the Anthony Carfagna Employment Agreement
      all as described in more detail in §2(l) below.

     

    Effective
      Time
      shall
      have meaning set forth in §2(a).

     

    Encumbrance
      shall
      mean any assessment, claim, mortgage, pledge, lien, security or other third
      party right or interest of any kind whatsoever, conditional sales agreement,
      option, right
      of
      first refusal, right of repurchase, encumbrance
      or charge of any kind affecting real or personal property, other than the
      Permitted Encumbrances.

    
      
         

      

      
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    Execution
      Version

     

    Environmental
      Claims
      shall
      mean any and all claims, actions, causes of action, or other written notices
      by
      any person or entity alleging potential liability (including, but not limited
      to, potential liability for investigatory costs, cleanup costs, governmental
      response costs, natural resources damages, property damages, personal injuries,
      or civil or criminal penalties) arising out of or resulting from (i)
      circumstances forming the basis of any violation of any Environmental Laws
      or
      (ii) any releases of Hazardous Materials at any real property or from any
      personal property presently or formerly owned, leased or managed by the Company
      or at any disposal facility which may have received Hazardous Materials
      generated by the Company.

     

    Environmental
      Laws
      shall
      mean any applicable federal, state, local or foreign law, judicial decision,
      regulation, rule, judgment, order, decree, injunction, Permit or governmental
      restriction, each as in effect on or prior to the Closing Date, relating to
      the
      environment, safety or health, including, without limitation, the Comprehensive
      Environmental Response Compensation and Liability Act, the Superfund Amendments
      and Authorization Act of 1986, the Occupational Safety and Health Act, the
      Resource Conservation and Recovery Act, the Federal Water Pollution Control
      Act,
      the Safe Drinking Water Act, the Toxic Substances Control Act, the Emergency
      Planning and Community Right-to-Know Act, the Clean Air Act, the Federal
      Insecticide Fungicide and Rodenticide Act, the Oil Pollution Act, and equivalent
      or additional state and local laws.

     

    Environmental
      Permits
      shall
      mean Permits, certificates, registrations or other documents required by or
      otherwise issued pursuant to Environmental Laws.

     

    ERISA
      shall
      mean the Employee Retirement Income Security Act of 1974, as
      amended.

     

    ERISA
      Affiliate
      shall
      mean any trade or business (whether or not incorporated) that is treated as
      a
      single employer together with the Company under Code § 414.

     

    Escrow shall
      have the meaning set forth in §2(j)(1).

     

    Escrow
      Agent shall
      have the meaning set forth in §2(j)(1).

     

    Escrow
      Agreement shall
      have the meaning set forth in §2(j)(1).

     

    Escrow
      Fund shall
      have the meaning set forth in §2(j)(1).

     

    Facility
      or Facilities
      shall
      have the set forth set forth in §3(y)(3).

     

    FCPA
      shall
      have the meaning set forth in §3(mm).

     

    Final
      Month shall
      have the meaning set forth in §2(g)(4).

     

    Financial
      Statements shall
      have the meaning set forth in §3(i).

     

    GAAP shall
      mean generally accepted accounting principles as in effect in the United
      States.

    
      
         

      

      
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    Execution
      Version

     

    Governmental
      Authorizations
      shall
      mean all governmental approvals, authorizations, certifications, consents,
      variances, permissions, licenses, directives, and Permits to or from, or
      filings, notices, or recordings to or with United States federal, state, and
      local governmental authorities.

     

    Hazardous
      Materials
      shall
      mean (a) any element, compound, or chemical that is defined, listed or otherwise
      classified as a contaminant, pollutant, toxic pollutant, toxic chemical, toxic
      or hazardous substance, extremely hazardous substance, radioactive material,
      hazardous waste, bio-hazardous or infectious waste, special waste, or solid
      waste under Environmental Laws; (b) oil, petroleum, petroleum-based or
      petroleum-derived products; (c) polychlorinated biphenyls; and (d) any
      asbestos-containing materials.

     

    Improper
      Payment Laws
      shall
      have the meaning set forth in §3(mm).

     

    Indemnified
      Party shall
      have the meaning set forth in §8(f)(1).

     

    Indemnifying
      Party shall
      have the meaning set forth in §8(f)(1).

     

    Identified
      Liabilities shall
      mean, if any: any line of credit balance, all accrued but unpaid dividends
      on
      the Company Stock; contractual payments of the Company to Kerry Bode upon the
      consummation of the transactions contemplated by this Agreement and the Related
      Documents; all amounts owed by the Company under any Plans through the Closing
      Date, including amounts owed to any Person under the Unicircuit, Inc. 2004
      Stock
      Incentive Plan, the related stock purchase agreements and any other related
      documents; and any stub or “short year” income Tax liabilities of the Company
      through the Closing Date.

     

    Intellectual
      Property
      shall
      mean all intellectual property and all rights therein, whether common law,
      statutory or otherwise, domestic and foreign, and all registrations and
      registration applications for any such rights, including, but not limited
      to:

     

    (1) United
      States Letters Patent, any non-U.S. patents, and any and all reissues,
      divisions, continuations, continuations-in-part, re-examinations, renewals,
      extensions and substitutes thereof, any applications therefor, and all non-U.S.
      counterparts of the foregoing (including, in the case of patent applications,
      international or multi-national applications filed in accordance with Chapter
      II
      of the Patent Cooperation Treaty or any other multi-lateral
      agreement);

     

    (2) service
      marks, trademarks, trade names, brands, product and service names, logos and
      other distinctive identifications used in commerce, whether in connection with
      products or services, together with all goodwill related to any of the
      foregoing;

     

    (3) copyrights;

     

    (4) domain
      names (uniform resource locators);

     

    (5) Technology
      and the copyright and/or patents in any fixations of the Technology;
      and

    
      
         

      

      
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    Execution
      Version

     

    (6) Confidential
      Information and the copyright in any fixations of the Confidential
      Information.

     

    Intracompany
      Arrangement shall
      have the meaning set forth in §3(p).

     

    Investment
      shall
      mean, as applied to any Person, (i) any direct or indirect ownership, purchase
      or other acquisition by such Person of any notes, obligations, instruments,
      stock, securities or ownership interest (including partnership interests and
      joint venture interests) of any Person and (ii) any capital contribution by
      such
      Person to any other Person.

     

    Knowledge
      means,
      with respect to the Company, the actual knowledge of any executive officer
      or
      director of the Company after due inquiry and investigation,
      which includes diligent review of files and books and records and the making
      of
      reasonable inquiry of the directors, officers and managers (and for this purpose
      Anthony Carfagna shall be considered a manager) of the Company and its
      Affiliates, who have knowledge of, responsibility for, or control over the
      relevant subject matter, and the awareness that such individuals could
      reasonably be expected to have acquired in the course of having acted in such
      capacity with the care that an ordinarily prudent person in a like position
      would use.

     

    Leases
      shall
      mean all lease agreements to which the Company is party.

     

    Leased
      Real Property shall
      mean all real property, in each case which is subject to a leasehold interest
      to
      which the Company is a party.

     

    Leased
      Tangible Property
      shall
      mean all Computer Equipment and other machinery, furniture, equipment and other
      tangible personal property, in each case which is subject to a leasehold
      interest held by the Company.

     

    Licensed
      Intellectual Property
      shall
      mean Intellectual Property which the Company uses or has the right to use,
      in
      each case pursuant to Third-Party Licenses.

     

    Litigation shall
      have the meaning set forth in §3(n).

     

    Material
      Adverse Effect
      shall
      mean, with respect to a Party, a material adverse effect on the assets,
      business, condition (financial or otherwise), prospects or results of operations
      of such Party and its Subsidiaries, taken as a whole, or a material adverse
      effect on such Party’s ability to consummate the transactions contemplated
      hereby. 

     

    Merger shall
      have the meaning set forth in Recital Paragraph B.

     

    Merger
      Consideration
      shall
      have the meaning set forth in §2(g).

     

    Merger
      Sub shall
      have the meaning provided such term in the preamble to this
      Agreement.

     

    Most
      Recent Financial Statements shall
      have the meaning set forth in §3(i).

     

    Most
      Recent Fiscal Month End shall
      have the meaning set forth in §3(i).

    
      
         

      

      
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    Execution
      Version

     

    Net
      Book Value shall
      mean the Stockholders’ equity of the Company determined in accordance with GAAP
      as of the Closing Date, provided, notwithstanding the foregoing, to the extent
      not included by GAAP, the Identified Liabilities, the Real Estate Mortgage
      Loan,
      the unpaid Transaction Expenses, and any other amounts explicitly set forth
      in
      this Agreement, shall be included as liabilities for purposes of calculating
      Net
      Book Value and, provided, further, that solely for purposes of calculating
      the
      Net Book Value, the amount of the liability, write-off and/or reserve for each
      item referred to in Schedule §5(o) shall equal the amount of such item as set
      forth on Schedule §5(o) immediately before the adjustment required by Section
§5(o), plus one-half (1/2) of the difference between the amount of such item
      after the adjustment required by Section §5(o) and the amount of such item set
      forth on Schedule §5(o) immediately before such adjustment. (e.g., if
      immediately before the adjustments required by Section §5(o) the reserve for
      research and development tax credits is $50,000 and it is to be adjusted to
      be
      $400,000, for purposes of calculating the Net Book Value, the reserve for
      research and development tax credits is $225,000 (i.e., $50,000 + (($400,000
      -
      $50,000) ÷ 2))).

     

    Net
      Book Value Range
      shall
      mean the Net Book Value of the Company being no less than Ten Million One
      Hundred Thousand Dollars ($10,100,000) and no greater than Ten Million Nine
      Hundred Thousand Dollars ($10,900,000).

     

    Owned
      Intellectual Property
      shall
      mean Intellectual Property (i) created or developed by employees of the Company
      or (ii) to which the Company has acquired, by purchase, assignment or other
      transfer the unconditional, unrestricted, exclusive right to control or prevent
      any and all use of such Intellectual Property by others without any consent
      or
      approval of or payment to any other Person.

     

    Owned
      Real Property shall
      mean all real property owned in fee simple by the Company.

     

    Owned
      Tangible Property
      shall
      mean all Computer Equipment and other machinery, furniture, fixtures, equipment
      and other tangible personal property owned by the Company.

     

    Parent
      shall
      have the meaning provided such term in the preamble to this
      Agreement.

     

    Parties shall
      have the meaning provided such term in the preamble to this
      Agreement.

     

    Paying
      Agent
      shall
      mean Manufacturers and Traders Trust Company.

     

    Paying
      Agent Agreement
      shall
      mean Paying Agent Agreement dated as of the date hereof by and among Parent,
      Stockholders’ Agent, the Company and Manufacturers and Traders Trust Company,
      substantially in the form attached hereto as Exhibit
      I.

     

    Permit
      shall
      mean any license, franchise, permit, consent, order, approval, certificate,
      authorization or registration from, of or with a governmental
      entity.

     

    Permitted
      Encumbrances
      shall
      mean (a) statutory Encumbrances for current Taxes, special assessments or other
      governmental charges not yet due and payable or the amount or validity of which
      is being contested in good faith by appropriate proceedings and for which
      appropriate reserves have been established in accordance with U.S. generally
      accepted accounting principles, (b) mechanics’, materialmen’s, carriers’,
      workers’, repairers’ and similar statutory Encumbrances arising or incurred in
      the ordinary course of business which Encumbrances secure obligations that
      are
      not overdue by more than thirty (30) days or are being contested in good faith,
      (c) deposits or pledges made in connection with, or to secure payment of,
      worker’s compensation, unemployment insurance, old age pension programs mandated
      under applicable legal requirements or other social security, (d) restrictions
      on the transfer of securities arising under federal and state securities laws,
      and (e) lien
      of
      the
      Real
      Estate Mortgage Loan.

    
      
         

      

      
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    Execution
      Version

     

    Person
      shall
      mean an individual, partnership, corporation, limited liability company,
      association, joint stock company, trust, joint venture, unincorporated
      organization or governmental entity or any department, agency or political
      subdivision thereof.

     

    Plan shall
      have the meaning set forth in §3(o)(1).

     

    Prohibited
      Person
      means a
      Person who or which has been convicted of a felony crime of dishonesty, breach
      of trust or similar crime in a state or federal jurisdiction.

     

    Real
      Estate Mortgage Loan
      shall
      mean the real estate mortgage loan on the Company’s Littleton, Colorado
      headquarters building and property which has a currently outstanding principal
      balance of One Million Three Hundred Twenty Two Thousand Dollars ($1,322,000)
      as
      of December 31, 2007 payable to American Life Insurance Company at an interest
      rate per annum of 6.7% maturing May 26, 2014.

     

    Real
      Property
      means
      all fee or leasehold interests, easements, real estate licenses, right to access
      and other rights with respect to real property.

     

    Related
      Documents
      shall
      mean the Escrow Agreement, the Employment Agreements and all other agreements,
      instruments, documents and certificates to be executed and delivered pursuant
      to
      this Agreement.

     

    Release
      shall
      mean any spilling, leaking, pumping, emitting, emptying, discharging, injecting,
      escaping, leaching, migrating, dumping, or disposing of Hazardous Materials
      (including the abandonment or discarding of barrels, containers or other closed
      receptacles containing Hazardous Materials) into the environment in violation
      of
      any applicable Environmental Law.

     

    Representatives
      shall
      mean the attorneys, accountants or other agents or employees of a Party to
      this
      Agreement.

     

    Selling
      Stockholders and
      Stockholders
      shall
      mean the holders of the issued and outstanding shares of the Company
      Stock.

     

    Shares shall
      have the meaning set forth in Recital Paragraph C.

     

    Software
      Programs
      shall
      mean computer programs and software and databases, together with all additional
      computer code, developed or acquired by or on behalf of the Company (including
      Intellectual Property in respect thereof and modifications or improvements
      by
      the Company to Licensed Intellectual Property) and including in each instance
      all Program Documentation with respect thereto.

    
      
         

      

      
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    Execution
      Version

     

    Software
      Program Documentation
      shall
      mean all records, technical and descriptive materials, documentation and
      procedures (including computerized records, if any) existing and relating to
      the
      creation, acquisition, design, development, programming, enhancement,
      modification, translation or other manipulation, operation, use or maintenance
      of any Program, and all embodiments and descriptions in any medium, including,
      but not limited to, all computer tapes, disks and CD-ROMs of any such Programs
      (including all prior versions).

     

    Southpark
      Covenants
      shall
      have the meaning set forth in §3(l)(1)(iii).

     

    Statement
      of Merger
      shall
      have meaning set forth in §2(a).

     

    Straddle
      Period shall
      have the meaning set forth in §9(a).

     

    Subsidiary
      shall
      mean with respect to any Person, each entity of which a majority of the voting
      power or equity interest is owned, directly or indirectly, by such
      Person.

     

    Superior
      Proposal shall
      have the meaning set forth in §10(c)(1).

     

    Surveys
      shall
      have meaning set forth in §7(a)(9).

     

    Surviving
      Corporation
      shall
      have the meaning ascribed to such term in §2(b).

     

    Tangible
      Property
      shall
      mean the Owned Tangible Property and the Leased Tangible Property.

     

    Tangible
      Property Leases
      shall
      mean any Contract granting a right to use Leased Tangible Property.

     

    Tax
      shall
      mean any federal, territorial, state, local or foreign income, gross receipts,
      license, payroll, wage, employment, excise, utility, communications, production,
      occupancy, severance, stamp occupation, premium, windfall profits,
      environmental, customs duties, capital stock, capital levy, franchise, profits,
      withholding, social security (or similar), unemployment, disability, real
      property, real property gains, recordation, business license, workers’
compensation, personal property, sales, use, transfer, registration, value
      added, ad valorem, alternative or add-on minimum, estimated, or other tax,
      fee,
      charge, premium, imposition of any kind whatsoever however denominated, imposed
      by any Tax Authority, together with any interest, penalties or other additions
      to tax and any interest on any such interest, penalties and additions to tax
      that may become payable in respect thereof.

     

    Tax
      Authority
      shall
      mean the Internal Revenue Service (“IRS”)
      and
      any other federal, territorial, state, local or foreign government and any
      agency, authority or political subdivision of any of the foregoing.

     

    Tax
      Law
      shall
      mean the Code, any federal, territorial, state, county, local or foreign laws
      related to Taxes and any regulations or official administrative pronouncements
      released under any thereof.

    
      
         

      

      
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    Execution
      Version

     

    Tax
      Returns
      shall
      mean all reports, estimates, declarations of estimated Tax, information
      statements and returns relating to, or required to be filed in connection with,
      any Taxes, including information returns or reports with respect to backup
      withholding and other payments to third parties.

     

    Taxable
      Period
      means
      any taxable year or any other period with respect to which any Tax may be
      imposed or a filing of Tax Returns may be required under any Tax
      Law.

     

    Technology
      shall
      mean all formulae; algorithms; processes; procedures; designs; ideas; concepts;
      strategic, business and other plans; research; inventions and invention
      disclosures (whether patentable or unpatentable); and all records of the
      foregoing, including, but not limited to, any laboratory notes; test,
      engineering and technical information, data and materials, know-how and
      methodologies; trade secrets; technology; web sites; communications and
      associates peripheral devices and resources; computer software, programs and
      code, both object and source, in whatever form and media; databases;
      specifications, software manuals and program documentation.

     

    Third-Party
      Claim shall
      have the meaning set forth in §8(f)(1).

     

    Tipping
      Basket
      shall
      have the meaning set forth in §2(j)(2).

     

    Title
      Commitments
      shall
      have meaning set forth in §7(a)(7).

     

    Title
      Company
      shall
      have meaning set forth in §7(a)(7).

     

    Title
      Policies
      shall
      have meaning set forth in §7(a)(8).

     

    Transaction
      Expenses shall
      mean (i) the aggregate attorneys’ and accountants’ fees and expenses incurred or
      to be incurred by the Company and the Stockholders’ Agent (that are required to
      be paid at or prior to the Closing), (ii) Taxes referred to in §9(d), in
      connection with the transactions contemplated by this Agreement and (iii) any
      other costs, expenses, fees, liabilities or obligations out of the ordinary
      course of business of the Company or are incurred in connection with the
      transactions contemplated by this Agreement and/or that are required to be
      paid
      at or prior to the Closing, including the Escrow Agent fees, the Paying Agent
      fees and the Stockholders’ Agent fees, but excluding the Real Estate Mortgage
      Loan. The Transaction Expenses shall be set forth on the closing schedule (the
      “Closing
      Schedule”).
      The
      Closing Schedule shall list (i) all of the Transaction Expenses, (ii) any
      portion of the Transaction Expenses that have been paid or advanced by the
      Company prior to the Closing Date, (iii) any Identified
      Liabilities
      that
      remain outstanding on the Closing Date, and (iv) the name, address, respective
      amounts and bank account information from (A) each recipient of Transaction
      Expenses and (B) the creditors owed the unpaid Identified
      Liabilities.

     

    Unicircuit shall
      have the meaning provided such term in the preamble to this
      Agreement.

     

    WARN
      Act shall
      mean the federal Worker Adjustment and Retraining Notification Act.

     

    
      
         

      

      
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    Execution
      Version

     

    §2. Merger;
      Merger Consideration; Closing

     

    (a) Effective
      Time.
      Upon
      the terms and subject to the conditions set forth in this Agreement, at the
      time
      of the Closing, the Parties shall cause the Merger to be consummated by filing
      with the Secretary of State of the State of Colorado (the “CO
      Secretary”)
      the
      Statement of Merger (the “Statement
      of Merger”),
      substantially in the form attached hereto as Exhibit
      A,
      duly
      executed and so filed in accordance with the CBCA and shall make all other
      filings and recordings required under the CBCA to effectuate the Merger and
      the
      transactions contemplated by this Agreement. The Merger shall become effective
      at such time as the Statement of Merger is duly filed with the CO Secretary,
      or
      at such subsequent date or time as Buyer and the Company mutually shall agree
      and specify in the Statement of Merger (the time the Merger becomes so effective
      being hereinafter referred to as the “Effective
      Time”).

     

    (b) Surviving
      Corporation.
      Upon
      the terms and subject to the conditions set forth in this Agreement and in
      accordance with the CBCA, at the Effective Time, Buyer shall be merged with
      and
      into the Company and the Company shall be the surviving corporation in the
      Merger (the “Surviving
      Corporation”)
      and,
      as such, the Company shall continue its corporate existence as a wholly owned
      subsidiary of Parent under the laws of the State of Colorado, and the separate
      corporate existence of Buyer thereupon shall cease. It is intended that after
      the Effective Time, the Company will undergo a reorganization to become
      organized under the laws of the State of Delaware.

     

    (c) Articles
      of Incorporation.
      At the
      Effective Time, the Articles of Incorporation of the Company, as in effect
      immediately prior to the Effective Time, shall be the Articles of Incorporation
      of the Surviving Corporation until thereafter amended in accordance with
      applicable law.

     

    (d) By-Laws.
      At the
      Effective Time, the By-Laws of the Company, which have been delivered to Buyer,
      shall be the By-Laws of the Surviving Corporation until thereafter amended
      in
      accordance therewith or with applicable law.

     

    (e) Directors
      and Officers.
      At the
      Effective Time, the directors and officers of the Company immediately prior
      to
      the Effective Time shall resign and the directors and officers listed on
Schedule
      §2(e)
      shall
      become the directors and officers of the Surviving Corporation. Each director
      and officer of the Surviving Corporation shall hold office in accordance with
      the Articles of Incorporation and By-Laws of the Surviving
      Corporation.

     

    (f) Effect
      of Merger.
      At and
      after the Effective Time, the effect of the Merger shall, in all respects,
      be as
      provided in § 7-90-204 of the CBCA. 

     

    (g) Merger
      Consideration. 

     

    (1) At
      the
      Closing Parent shall pay by wire transfer of immediately available funds Twenty
      Two Million Dollars ($22,000,000) (the “Merger
      Consideration”),
      less
      One
      Hundred Thousand Dollars ($100,000) to be paid at the Closing by Parent to
      Kerry
      L. Bode on behalf of the Company, less
      One
      Hundred Thousand Dollars ($100,000) to be paid by Parent to the Stockholders’
Agent on behalf of the Company to fund any costs and expenses incurred thereby,
      and subject to adjustments provided as provided below (including any adjustment
      as a result of the Net Book Value as of the Closing Date not being within the
      Net Book Value Range), for 100% of the shares of the Company Stock by delivery
      of (i) the Escrow Fund to the Escrow Agent, to be held in escrow for up to
      twenty-four (24) months pursuant to the Escrow Agreement; and (ii)a the balance
      of the Merger Consideration (the “Closing
      Date Cash Consideration”)
      in
      cash to the Paying Agent by wire transfer; provided,
      however,
      that
      the amounts payable to the Escrow Agent and to the Paying Agent shall be reduced
      in proportion to the amounts due any Stockholders who dissent to the Merger
      in
      accordance with the CBCA and who do not transfer his, her or its Shares to
      Buyer
      pursuant to the terms and conditions of this Agreement. The Closing Date Cash
      Consideration shall be allocated among and paid to the Stockholders as set
      forth
      in the Paying Agent Agreement. 

     

    
      
         

      

      
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    (2) At
      least
      fifteen (15) days prior to the Closing, as a condition precedent to the closing
      of the transactions contemplated by this Agreement and the Merger, the Company
      shall deliver to Buyer month end financial statements through the month-end
      preceding the Closing Date (“Final
      Month”),
      prepared in accordance with GAAP consistently applied, and reflecting any GAAP
      adjustments required in connection with the Company’s 2008 short period federal
      income Tax Return. The Company shall provide to Buyer any and all information
      reasonably requested in writing relating to the calculation of the Company’s Net
      Book Value as of the Final Month within five (5) days after the request
      therefor.

     

    (3) At
      least
      five (5) days before the Closing, Buyer and the Company shall prepare a mutually
      agreed upon Closing Schedule, which mutual agreement shall be evidenced by
      Buyer’s and the Company’s signatures thereon at the Closing.

     

    (4) The
      Merger Consideration is predicated on the Company’s Net Book Value being within
      the Net Book Value Range on the Closing Date. If Net Book Value as of the
      Closing Date is below Ten Million One Hundred Thousand Dollars ($10,100,000),
      the Merger Consideration shall be reduced dollar for dollar to the extent below
      the Ten Million One Hundred Thousand Dollars ($10,100,000) threshold. If Net
      Book Value as of the Closing Date is in excess of Ten Million Nine Hundred
      Thousand Dollars ($10,900,000), the Merger Consideration shall be increased
      dollar for dollar to the extent above the Ten Million Nine Hundred Thousand
      Dollars ($10,900,000) threshold. At the Closing, the Company will provide a
      customary “bring down” certificate that will confirm that there has been no
      material adverse change in the business of the Company since the Most Recent
      Financial Statements and will represent and warrant whether the Company’s Net
      Book Value is at least within the Net Book Value Range. Notwithstanding anything
      contained in this Agreement to the contrary, neither Buyer nor Parent shall
      have
      any obligation to close the transactions contemplated by this Agreement if
      they
      are not reasonably satisfied that the amount of the Company’s Net Book Value as
      of the Closing Date is within the Net Book Value Range.

     

    (5) Prior
      to
      the Closing Date, the Company shall accrue and pay, or reserve for, the
      Identified Liabilities. 

     

    (h) Cancellation
      of Shares.
      At the
      Effective Time, all of the shares of Company Stock shall no longer be
      outstanding and shall automatically be canceled and shall cease to exist, and
      shall thereafter by operation of this section represent only the right to
      receive the Merger Consideration and any dividends or distributions with respect
      thereto or any dividends or distributions with a record date prior to the
      Effective Time that were declared or made by the Company on such shares of
      Company common and preferred stock in accordance with the terms of this
      Agreement on or prior to the Effective Time and which remain unpaid at the
      Effective Time.

     

    
      
         

      

      
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    (i) Status
      of Buyer Shares.
      At the
      Effective Time, by virtue of the Merger and without any action on the part
      of
      any holder of any capital stock of Buyer, each issued and outstanding share
      of
      common stock of Buyer shall convert into a share of common stock of the
      Surviving Corporation, which after the Merger shall be the only shares of
      capital stock of the Surviving Corporation issued and outstanding after the
      Merger.

     

    (j) Escrow
      of Merger Consideration.

     

    (1) At
      the
      Effective Time, Parent shall deposit seven and one half percent (7.5%) of the
      total Merger Consideration (One Million Six Hundred Fifty Thousand Dollars
      ($1,650,000) based on Twenty-Two Million Dollars ($22,000,000) of Merger
      Consideration) (the “Escrow
      Fund”)
      with
      Manufacturers and Traders Trust Company as escrow agent (the “Escrow
      Agent”),
      to be
      held and disbursed by the Escrow Agent in accordance with the Escrow Agreement,
      substantially in the form attached hereto as Exhibit H, (the “Escrow
      Agreement”),
      subject to possible reductions in the Escrow Fund as provided in §2(g) and §2(j)
      hereof.
      Parent
      shall deposit with the Escrow Agent interest at the rate of 2.54% per annum
      on
      the amount of the Escrow Fund not distributed and not in dispute (the
“Interest”
and
      together with the Escrow Fund, the “Escrow”)
      to be
      paid in as provided in the Escrow Agreement. The Interest shall be deposited
      by
      Parent with the Escrow Agent at six (6) month anniversary, the one (1) year
      anniversary, the eighteen (18) month anniversary and the twenty-four (24) month
      anniversary of the date of this Agreement. Parent shall be entitled to all
      of
      the interest earned on the Escrow as a result of being deposited with the Escrow
      Agent and such amounts shall be paid to Parent as provided in the Escrow
      Agreement.

     

    (2) No
      Stockholder shall be entitled to receive any Merger Consideration deposited
      with
      the Escrow Agent and until the same is released to the Stockholders pursuant
      to
      the terms of the Escrow Agreement. The Escrow Fund to be deposited with the
      Escrow Agent shall be deducted pro rata from the Merger Consideration allocable
      to the holders of the shares of Company common stock in accordance with their
      shares of Company common stock, but shall not be allocable based on any holdings
      of Company preferred stock. The Escrow Fund will be subject to Adverse
      Consequences suffered by Buyer Indemnitees (including those described in §8(c))
      as a result of the Company’s breach of this Agreement, any unrecorded
      pre-closing Tax, environmental or other third party liabilities and liabilities
      resulting from a breach or inaccuracy of the Company’s representations,
      warranties or covenants that become known and recorded in accordance with GAAP
      during the term of the Escrow Agreement, or are identified as potential
      liabilities and a good faith estimate of the amount of such liabilities are
      made
      by any Buyer Indemnitees during the term of the Escrow Agreement, but are not
      accrued until after the expiration of the term of the Escrow Agreement. Except
      as provided in §8(e), the Company shall not be required to indemnify any Buyer
      Indemnitee from the Escrow until the claim(s) in an aggregate exceed One Hundred
      Thousand Dollars ($100,000.00) (the “Tipping
      Basket”),
      provided,
      however,
      that
      the Tipping Basket shall not apply to any breaches of representations and
      warranties set forth in §3 (b), (c), (d), (e), (f) and (g) or §4 (b), (c) and
      (d) or the covenants by the Company herein. If the aggregate amount exceeds
      the
      Tipping Basket, Buyer Indemnitees will be entitled to be paid from the Escrow
      Fund from the first dollar up to the total amount of the liability. (By way
      of
      example, if an Eighty Thousand Dollar ($80,000) liability is identified and
      subject to the Tipping Basket, Eighty Thousand Dollars ($80,000) will be
      withheld until such time it is either accrued or determined not to be an
      accruable liability. If accrued, the amount will only be paid to one or more
      Buyer Indemnitees if the accrued liabilities (taking into account all Buyer
      Indemnitees) in the aggregate exceed the Tipping Basket. Once the total
      liabilities exceed the Tipping Basket, Buyer Indemnitees shall be entitled
      to
      indemnification for all liabilities from the Escrow Fund). Parent will use
      its
      commercially reasonable best efforts to promptly investigate any potential
      liability and, within ninety (90) days after Parent first receives notice of
      the
      potential liability, Parent shall report to the Escrow Agent and to the
      Stockholders’ Agent on Parent’s preliminary determination. 

     

    
      
         

      

      
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    (k) Stockholders’
      Agent.
      By
      virtue of their approval of this Agreement, the Stockholders shall be deemed
      to
      have irrevocably constituted and appointed, effective as of the date of this
      Agreement, Owen Agency, LLC, a Colorado limited liability company (in such
      capacity the “Stockholders’
      Agent”),
      as
      their true and lawful agent and attorney-in-fact to enter into any agreement
      in
      connection with the transactions contemplated by the Escrow Agreement and the
      Paying Agent Agreement, to exercise all or any of the powers, authority and
      discretion conferred on the Stockholders’ Agent under the Escrow Agreement, the
      Paying Agent Agreement and this Agreement, to waive any terms and conditions
      of
      the Escrow Agreement and the Paying Agent Agreement, to give and receive notices
      and communications, to authorize delivery to Stockholders of the Surviving
      Corporation of any of the Merger Consideration or other property from the Escrow
      Account in satisfaction of claims by Buyer Indemnitees, to object to such
      deliveries, to agree to, negotiate, enter into settlements and compromises
      of,
      and demand arbitration and comply with orders of courts and awards of
      arbitrators with respect to such claims, and to take all actions necessary
      or
      appropriate in the judgment of the Stockholders’ Agent for the accomplishment of
      the foregoing. The Stockholders’ Agent shall at all times act in its capacity as
      the Stockholders’ Agent in a manner that the Stockholders’ Agent believes in
      good faith to be in the best interest of the Stockholders. The Stockholders’
Agent and its stockholders, officers, directors, affiliates, members, agents
      or
      representatives shall not be liable to any Stockholder for any error of
      judgment, or any action taken, suffered or omitted to be taken, under this
      Agreement, the Paying Agent Agreement or the Escrow Agreement, except in the
      case of its gross negligence, bad faith or willful misconduct. The Stockholders’
Agent may consult with legal counsel, independent public accountants and other
      experts selected by it and shall not be liable for any action taken or omitted
      to be taken in good faith by it in accordance with the advice of such counsel,
      accountants or experts. The Stockholders’ Agent shall not have any duty to
      ascertain or to inquire as to the performance or observance of any of the terms,
      covenants or conditions of this Agreement, the Paying Agent Agreement or Escrow
      Agreement. As to any matters not expressly provided for in this Agreement,
      the
      Paying Agent Agreement or the Escrow Agreement, the Stockholders’ Agent shall
      not be required to exercise any discretion or take any action. By virtue of
      its
      approval of this Agreement each Stockholder severally shall indemnify and hold
      harmless and shall reimburse the Stockholders’ Agent from and against such
      Stockholder’s ratable share of any and all liabilities, losses, damages, claims,
      costs or expenses suffered or incurred by the Stockholders’ Agent arising out of
      or resulting from any action taken or omitted to be taken by the Stockholders’
Agent under this Agreement or the Escrow Agreement, other than such liabilities,
      losses, damages, claims, costs or expenses arising out of or resulting from
      the
      Stockholders’ Agent’s gross negligence, bad faith or willful misconduct. In all
      matters relating to §2(g), §2(j), §8 and the Paying Agent Agreement, the
      Stockholders’ Agent shall be the only Person entitled to assert the rights of
      the Stockholders, and the Stockholders’ Agent shall perform all of the
      obligations of the Stockholders hereunder. Parent and the Surviving Corporation
      shall be entitled to rely on all statements, representations and decisions
      of
      the Stockholders’ Agent without any independent investigation or verification.
      In the event that any Stockholders’ Agent shall die, become disabled or resign
      or otherwise terminate his status as such, his successor shall be the
      Stockholders’ Agent appointed by the vote or written consent of the former
      holders of a majority in interest of each class of common and preferred stock
      of
      the Company.
      The One
      Hundred Thousand Dollars ($100,000) paid to the Stockholders’ Agent as provided
      in (g)(1) shall be used by the Stockholders Agent to cover the third party
      costs
      and expenses incurred by the Stockholders’ Agent in fulfilling its duties as
      such and if any of such money has not been utilized when the Stockholders’
Agent’s duties are complete, the Stockholders’ Agent shall pay any amount
      remaining to individuals listed in Schedule 1 of the Escrow Agreement, pro
      rata
      in accordance with the “Sharing Ratio” (as defined in the Escrow
      Agreement).

     

    
      
         

      

      
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    (l) Closing.
      The
      closing of the transactions contemplated by this Agreement (the “Closing”)
      shall
      take place at the offices of Bond, Schoeneck & King, PLLC, attorneys for
      Buyer, in Syracuse, New York commencing at 9:00 a.m. local time on August 29,
      2008.

     

    (m) Deliveries
      by the Company.
      Subject
      to the terms and conditions of this Agreement, the Company agrees to deliver
      (or
      cause to be delivered) at the Closing the following agreements and documents,
      all reasonably satisfactory in form and substance to Buyer and its legal
      counsel:

     

    (1) the
      duly
      executed Statement of Merger;

     

    (2) the
      duly
      executed Closing Schedule;

     

    (3) a
      certificate of good standing for the Company from each jurisdiction in which
      such entity is qualified to do business dated as of a recent date prior to
      the
      Closing and a certificate of good standing for the Company from each other
      jurisdiction in which such entity is qualified to do business;

     

    (4) evidence
      of receipt of all requisite consents;

     

    (5) a
      duly
      executed copy of the Kerry Bode Employment Agreement, substantially in the
      form
      attached hereto as Exhibit
      B;

     

    (6) a
      duly
      executed copy of the Lance Riley Employment Agreement, substantially in the
      form
      attached hereto as Exhibit
      C;

     

    (7) a
      duly
      executed copy of the Ty Gragg Employment Agreement, substantially in the form
      attached hereto as Exhibit
      D;

     

    (8) a
      duly
      executed copy of the Anthony Carfagna Employment Agreement, substantially in
      the
      form attached hereto as Exhibit
      E;

    
      
         

      

      
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    (9) the
      opinion of Jones & Keller, P.C., counsel of the Company, dated the date of
      the Closing, substantially in the form attached hereto as Exhibit
      F;
      

     

    (10) the
      Escrow Agreement substantially in the form attached hereto as Exhibit H,
      duly
      executed by the Company and the Stockholders’ Agent;

     

    (11) the
      Paying Agent Agreement substantially in the form attached hereto as Exhibit I,
      duly
      executed by the Company and the Stockholders’ Agent;

     

    (12) a
      certificate, duly executed by the President of the Company, certifying that
      all
      requisite corporate actions (including all Board and Stockholders’ approvals) on
      the part of each of them to consummate the transactions contemplated by this
      Agreement have been duly taken; and

     

    (13) such
      other documents and instruments as in the opinion of legal counsel for Buyer,
      may be reasonably required to effectuate the terms of this Agreement and to
      comply with the terms hereof.

     

    (n) Deliveries
      by Buyer and Parent.
      Subject
      to the terms and conditions of this Agreement, Parent agrees to deliver or
      cause
      Buyer to deliver (or cause to be delivered) to the Company at the Closing the
      following:

     

    (1) the
      duly
      executed Statement of Merger;

     

    (2) the
      duly
      executed Closing Schedule;

     

    (3) the
      Merger Consideration in accordance with §2(g);

     

    (4) good
      standing certificates dated as of a recent date prior to the Closing, issued
      by
      the Secretary of State of the State of New York, for Parent, and a like
      certificate issued by the CO Secretary, with respect to Buyer, and from each
      other jurisdiction in which such entities are qualified to do
      business;

     

    (5) opinion
      of Bond, Schoeneck & King, PLLC, counsel to Buyer, dated the date of
      Closing, substantially in the form attached hereto as Exhibit
      G;

     

    (6) the
      Kerry
      Bode Employment Agreement, substantially in the form attached hereto as
Exhibit
      B,
      duly
      executed by Buyer and Parent;

     

    (7) the
      Lance
      Riley Employment Agreement, substantially in the form attached hereto as
Exhibit
      C,
      duly
      executed by Buyer and Parent;

     

    (8) a
      duly
      executed copy of the Ty Gragg Employment Agreement, substantially in the form
      attached hereto as Exhibit
      D;

     

    (9) a
      duly
      executed copy of the Anthony Carfagna Employment Agreement, substantially in
      the
      form attached hereto as Exhibit
      E;

    
      
         

      

      
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    (10) the
      Escrow Agreement, substantially in the form attached hereto as Exhibit
      H,
      duly
      executed by Parent;

     

    (11) the
      Paying Agent Agreement substantially in the form attached hereto as Exhibit I,
      duly
      executed by Parent; and

     

    (12) evidence
      of receipt of all consents;

     

    (13) a
      certificate, duly executed by President of Buyer, certifying that all requisite
      corporate actions (including all Board and Stockholder approvals) on the part
      of
      each of them to consummate the transactions contemplated by this Agreement
      have
      been duly taken;

     

    (14) a
      letter
      of transmittal of Parent to be sent to Stockholders of the Company;
      and

     

    (15) such
      other documents and instruments as in the opinion of legal counsel for the
      Company, may be reasonably required to effectuate the terms of this Agreement
      and to comply with the terms hereof.

     

    (o) Procedure
      for Shares.
      

     

    (1) At
      the
      Closing, Parent shall cause to be deposited with the Paying Agent, for exchange
      in accordance with this Agreement, the Closing Date Cash Consideration, by
      wire
      transfer of immediately available funds, into which the outstanding shares
      of
      Company Stock shall be converted pursuant to this Agreement; provided, the
      amount of Closing Date Cash Consideration to be paid to each Stockholder shall
      be as set forth in the Paying Agent Agreement. Pursuant to the Paying Agent
      Agreement, at the Effective Time, the Paying Agent shall mail to all of the
      Stockholders, excluding any holders of Dissenting Shares, letters of transmittal
      specifying the procedures for delivery of such holders’ certificates formerly
      representing the Company Stock to the Paying Agent in exchange for the portion
      of the Closing Date Cash Consideration payable at the Closing. Upon surrender
      to
      the Paying Agent of certificate of Company Stock in accordance with the
      instructions of the letter of transmittal, pursuant to the Paying Agent
      Agreement, the Paying Agent shall distribute to the former holder thereof a
      check for the portion of the Closing Date Cash Consideration that such holder
      is
      entitled to receive pursuant to the Paying Agent Agreement. In no event shall
      the holder of any such surrendered certificates be entitled to receive interest
      on any cash to be received in the Merger, except as provided in §2(j)(1).

     

    (2) At
      any
      time following the expiration of twenty-four (24) months following the Effective
      Time, Parent shall be entitled to direct the Paying Agent to deliver to it
      any
      funds which had been deposited with the Paying Agent and not disbursed to
      holders of the Company Stock, and thereafter such holders shall be entitled
      to
      look to Parent only as general creditors thereof with respect to any Merger
      Consideration that may be payable upon due surrender of their certificates,
      a
      letter of transmittal and other related documents to the Paying Agent or Parent,
      until at such time as such undisbursed cash is delivered to a public official
      pursuant to any applicable abandoned property, escheat or similar
      law.

    
      
         

      

      
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    (3) At
      the
      Effective Time, except for the Company Stock to be issued to Parent pursuant
      to
      the Merger in exchange for Buyer’s capital stock, the stock transfer books of
      the Company shall be closed and no transfer of Company Stock shall thereafter
      be
      made or recognized. If, after the Effective Time, certificates representing
      shares of Company Stock are presented for transfer, they shall be cancelled
      and
      exchanged for the Merger Consideration as provided in this section.

     

    (4) In
      the
      event any certificate shall have been lost, stolen, destroyed or mutilated,
      upon
      the making of an affidavit of that fact by the Person claiming such certificate
      to be lost, stolen, destroyed or mutilated and, if required by Surviving
      Corporation, the making of an indemnity agreement in a form reasonably requested
      by Surviving Corporation and/or the posting by such Person of a bond in such
      amount as Surviving Corporation may reasonably direct as indemnity against
      any
      claim that may be made against it with respect to such certificate, the Paying
      Agent will issue in exchange for such lost, stolen, destroyed or mutilated
      certificate the Closing Date Cash Consideration deliverable in respect thereof
      as provided in this section.

     

    (5) Neither
      Surviving Corporation nor Buyer shall be liable to any holder of shares of
      Company Stock for any dividends or other distributions with respect thereto,
      or
      any Merger Consideration payable in respect thereof, delivered to a public
      official pursuant to any applicable abandoned property, escheat or similar
      law.

     

    (p) Dissenting
      Shares.
      Notwithstanding any other provision contained in this Agreement, no shares
      of
      the Company Stock that are issued and outstanding as of the Effective Time
      and
      that are held by a Stockholder who has properly exercised his, her or its rights
      to dissent to the Merger (such shares being collectively referred to herein
      as
“Dissenting
      Shares”)
      under
      the CBCA shall be converted into the right to receive the Merger Consideration
      as provided in this Agreement unless and until such Stockholder shall have
      failed to perfect, or shall have effectively withdrawn or lost, such
      Stockholder’s right to dissent from the Merger under the CBCA and to receive
      such consideration as may be determined to be due with respect to such
      Dissenting Shares pursuant to and subject to the requirements of the CBCA.
      If
      any Stockholder of Dissenting Shares shall have so failed to perfect or
      effectively withdrawn or lost such Stockholder’s right to dissent from the
      Merger, each of such Stockholder’s shares of the Company Stock shall thereupon
      no longer be deemed Dissenting Shares and deemed to have become, as of the
      Effective Time, the right to receive the Merger Consideration as provided in
      this section. The Company shall give Buyer (a) prompt notice of any demands
      for
      appraisal, attempted withdrawals of such demands and any other instruments
      received by the Company relating to Stockholders’ rights to appraisal, and (b)
      the opportunity to direct all negotiations and proceedings with respect of
      any
      dissent to the Merger under CBCA. The Company shall not, except with the prior
      written consent of Buyer, voluntarily make any payment with respect to any
      demands for appraisal of any capital stock of the Company or agree to do so,
      or
      offer to settle or settle any such demands or approve any withdrawals of any
      such demands. 

     

    §3. Representations
      and Warranties of the Company

     

    The
      Company hereby represents and warrants to Buyer that the statements contained
      in
      this §3 are correct and complete as of the date of this Agreement and will be
      correct and complete as of the Closing Date (as though made then and as though
      the Closing Date were substituted for the date of this Agreement throughout
      this
§3) with respect to itself, except as set forth in the Company Disclosure
      Schedule. Notwithstanding any other provision of this Agreement, no Stockholder
      is making representations or warranties in a personal capacity, or in any other
      names or forms, nor will any Stockholder be deemed to have made any
      representations or warranties in a personal capacity; furthermore, no
      Stockholder or officer will provide indemnification relating thereto. The
      foregoing shall be subject to the rights set forth in §8(h).

     

    
      
         

      

      
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    (a) Organization
      of the Company.
      The
      Company is duly organized, validly existing, and in good standing under the
      laws
      of the State of Colorado.

     

    (b) Authorization
      of Transaction.
      The
      Company has full power and authority (including full corporate power and
      authority) to execute and deliver this Agreement and to perform its obligations
      hereunder, except as enforcement thereof may be limited by applicable bankruptcy
      insolvency, reorganization, moratoriums, fraudulent conveyances, or similar
      laws
      generally affecting the rights of creditors and otherwise subject to general
      principles of equity. This Agreement constitutes the valid and legally binding
      obligation of the Company, enforceable in accordance with its terms and
      conditions except as enforcement thereof may be limited by applicable bankruptcy
      insolvency, reorganization, moratoriums, fraudulent conveyances, or similar
      laws
      generally affecting the rights of creditors and otherwise subject to general
      principles of equity. Except for the Statement of Merger, the Company need
      not
      give any notice to, make any filing with, or obtain any authorization, consent,
      or approval of any government or governmental agency in order to consummate
      the
      transactions contemplated by this Agreement. The execution, delivery and
      performance of this Agreement and all other agreements contemplated hereby
      have
      been duly authorized by all requisite corporate actions on the part of the
      Company Board of Directors, and the Stockholders of the Company will be
      requested by the Board to approve this Agreement and authorize the transactions
      contemplated hereby subject to §10(c).

     

    (c) Non-contravention.
      Neither
      the execution and delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, will (A) violate any constitution, statute,
      regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
      restriction of any government, governmental agency, or court to which the
      Company is subject, any provision of its articles of incorporation, bylaws,
      or
      other governing documents, (B) conflict with, result in a breach of, constitute
      a default under, result in the acceleration of, create in any Person the right
      to accelerate, terminate, modify, or cancel, or require any notice under any
      agreement, contract, lease, license, instrument, or other arrangement to which
      the Company is a party or by which it is bound or to which any of its assets
      is
      subject, excluding the Real Estate Mortgage Loan and the Company’s existing line
      of credit, or (C) result in the imposition or creation of an Encumbrance upon
      or
      with respect to the Company Stock.

     

    (d) Brokers’
      Fees.
      The
      Company has no liability or obligation to pay any fees or commissions to any
      broker, finder, or agent with respect to the transactions contemplated by this
      Agreement.

     

    
      
         

      

      
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    (e) The
      Company Stock.
      To the
      knowledge of the Company, each Stockholder holds of record and owns beneficially
      the number of shares of the Company Stock set forth next to his, her, or its
      name in the Company Disclosure Schedule.

     

    (f) No
      Subsidiaries.
      The
      Company currently has no Subsidiaries and no ownership interest in any
      corporation, joint venture, trust, partnership, limited liability company,
      or
      any other entity.

     

    (g) Qualification.
      The
      Company is duly authorized to conduct business and is in good standing under
      the
      laws of each jurisdiction where such qualification is required. The Company
      has
      full corporate power and authority to carry on the business in which it is
      engaged and to own and use the properties owned and used by it. The Company
      Disclosure Schedule lists all directors and officers of the Company and all
      jurisdictions in which it is so authorized.

     

    (h) Capitalization.
      The
      entire authorized capital stock of the Company consists of Five Million
      (5,000,000) shares of common stock, par value $0.01 per share, and Two Hundred
      Thousand (200,000) shares of preferred stock, par value $0.01 per share. The
      following shares of stock are issued and outstanding: Two Hundred Forty-One
      Thousand Four Hundred Sixty-Five and Thirty-Three One Hundredths (241,465.33)
      shares of common stock and Sixty-Two Thousand Three Hundred Eighty-Four (62,384)
      shares of preferred stock. All issued and outstanding the Company Stock have
      been duly authorized, are validly issued, fully paid, and non-assessable, and
      are held of record by the respective Stockholders as set forth in the Company
      Disclosure Schedule. There are no outstanding or authorized options, warrants,
      purchase rights, subscription rights, conversion rights, exchange rights, or
      other contracts or commitments that could require the Company to issue, sell,
      or
      otherwise cause to become outstanding any of its capital stock. There are no
      outstanding or authorized stock appreciation, phantom stock, profit
      participation, or similar rights with respect to the Company. No shares of
      the
      Company Stock have been issued in violation of preemptive rights or applicable
      law.

     

    (i) Financial
      Statements.
      Attached hereto as Exhibit
      J
      are the
      following financial statements of the Company (collectively the “Financial
      Statements”):
      (i)
      audited consolidated balance sheets and statements of income, changes in
      stockholders’ equity, and cash flow as of and for the fiscal years ended
      December 31, 2006 and December 31, 2007; and (ii) unaudited consolidated balance
      sheets and statements of income (the “Most
      Recent Financial Statements”)
      as of
      and for the seven (7) months ended July 31, 2008 (the “Most
      Recent Fiscal Month End”).
      The
      Financial Statements (including the notes thereto) have been prepared in
      accordance with GAAP throughout the periods covered thereby and present fairly
      the financial condition of the Company as of such dates, and the results of
      operations in the cash flows of the Company for such periods; provided,
      however,
      that
      the Most Recent Financial Statements have been prepared internally by the
      Company and therefore are subject to normal year-end adjustments and lack
      footnotes and other related presentation items.

     

    (j) Events
      Subsequent to Most Recent Fiscal Month End.
      Since
      the Most Recent Fiscal Month End, there has not been any Material Adverse Effect
      on the Company. Without limiting the generality of the foregoing, since that
      date the Company has not engaged in any practice, taken any action, or entered
      into any transaction outside the ordinary course of business except as
      contemplated by this Agreement. The Company has continued to operate in the
      ordinary course and has not incurred any liability outside of the ordinary
      course of business in excess of Fifty Thousand Dollars ($50,000) except as
      contemplated by this Agreement.

     

    
      
         

      

      
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    (k) Tax
      Matters.

     

    (1) The
      Company is not in default on the payment of any Tax liability, including any
      Tax
      liability attributable to any member of an affiliated, consolidated, combined
      or
      unitary group of which the Company (or any predecessor) is or was a member
      on or
      prior to the Closing Date, including pursuant to Treasury Regulation §1.1502-6
      or any analogous or similar state, local, or foreign law or regulation and
      of
      any person (other than the Company) imposed on the Company as a transferee
      or
      successor, by contract or pursuant to any law, rule, or regulation, which Taxes
      relate to an event or transaction occurring before the Closing.

     

    (2) The
      Company has: (i) filed all required Tax Returns, (ii) all such Tax Returns
      were
      complete, accurate and timely filed, and (iii) the Company has fully paid all
      Taxes shown thereon as owing.

     

    (3) The
      Company Disclosure Schedule lists all Tax Returns filed with respect to the
      Company for Taxable Periods ended on or after December 31, 2001, indicates
      those
      Tax Returns that have been audited by any Taxing Authority, and indicates those
      Tax Returns that currently are the subject of audit by any Taxing Authority.
      The
      Company has delivered to Buyer correct and complete copies of all Tax Returns,
      examination reports, and statements of deficiencies assessed against or agreed
      to by the Company since December 31, 2001.

     

    (4) The
      Company has not waived any statute of limitations in respect of Taxes or agreed
      to any extension of time with respect to a Tax assessment or
      deficiency.

     

    (5) The
      Company is not a party to any Tax allocation or sharing agreement.

     

    (6) The
      Company has not made or changed any election, changed an annual accounting
      period, adopted or changed any accounting method, filed any amended Tax Return,
      entered into any closing agreement, settled any Tax claim or assessment relating
      to the Company, surrendered any right to claim a refund of Taxes, consented
      to
      any extension or waiver of the limitation period applicable to any Tax claim
      or
      assessment relating to the Company, or taken any other similar action relating
      to the filing of any Tax Return or the payment of any Tax, if such election,
      adoption, change, amendment, agreement, settlement, surrender, consent or other
      action would have the effect of increasing the Tax liability of the Company
      for
      any current Tax Period or decreasing any Tax attribute of the Company existing
      during the current Tax Period.

     

    (l) Real
      Property.

     

    (1) The
      Company Disclosure Schedule sets forth the address and description of each
      parcel of Owned Real Property. With respect to each parcel of Owned Real
      Property:

     

    (i) the
      Company has good and marketable fee simple title, free and clear of all
      Encumbrances, except Permitted Encumbrances;

    
      
         

      

      
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    (ii) the
      Company has not leased nor otherwise granted to any Person the right to use
      or
      occupy such Owned Real Property or any portion thereof;

     

    (iii) there
      are
      no violations of the Second Amended and Restated Declarations of Covenants,
      Conditions and Restrictions of Southpark dated as of June 26, 1992, as amended
      (the “Southpark
      Covenants”);

     

    (iv) the
      current use of the Real Property is a Permitted Use under the Southpark
      Covenants; 

     

    (v) there
      are
      no outstanding options, rights of first offer or rights of first refusal to
      purchase such Owned Real Property or any portion thereof or interest therein;
      and

     

    (vi) the
      Real
      Estate Mortgage Loan is not assumable by Buyer and must be paid or, if permitted
      by lender, assumed by the Surviving Corporation after the Closing
      Date.

     

    (2) The
      Company Disclosure Schedule sets forth the address of each parcel of Leased
      Real
      Property, and a true and complete list of all Leases for each such parcel of
      Leased Real Property. The Company has delivered to Buyer a true and complete
      copy of each lease document.

     

    (m) Powers
      of Attorney.
      To the
      Knowledge of the Company, there are no outstanding powers of attorney executed
      on behalf of the Company.

     

    (n) Litigation.
      The
      Company Disclosure Schedule sets forth each instance in which the Company (i)
      is
      subject to any outstanding injunction, judgment, order, decree, ruling, or
      charge or (ii) is a party to any action, suit, proceeding, hearing, or
      investigation of, in, or before any court or quasi-judicial or administrative
      agency of any federal, state, local, or foreign jurisdiction (“Litigation”).
      There
      is no Litigation pending or, to the knowledge of the Company, threatened,
      against the Company or its assets, or seeking to prevent, hinder or delay the
      transactions contemplated by this Agreement. No citations, fines or penalties
      have been asserted against the Company under any applicable law which remain
      outstanding. There are no outstanding orders, judgments, decrees or injunctions
      issued by any governmental authority against the Company.

     

    (o) Employee
      Benefit Plans and Related Matters.

     

    (1) The
      Company Disclosure Schedule sets forth a true and complete list, separately
      by
      plan sponsor of each (i) “employee benefit plan,” as such term is defined in
§
      3(3) of
      ERISA, (ii) all other employee benefit plans, agreements, consulting,
      independent contractor, and leased employee agreements; all plans, agreements,
      policies or arrangements providing for bonus or other incentive compensation,
      equity or equity-based compensation, deferred compensation, change in control
      rights or benefits, termination or severance benefits, retention bonuses or
      other retention or salary continuation compensation, sick leave, vacation pay,
      stock purchase, fringe benefits and perquisites (including without limitation,
      club memberships), medical, dental, and hospitalization benefits, life
      insurance, short-term and long-term disability benefits, educational assistance,
      rabbi trusts, Code § 501(c)(9) trusts, Code § 125 plans, multiple employer
      welfare plans or arrangements, and multiemployer welfare plans or arrangements;
      and (iii) all other plans, arrangements, policies or practices or contracts
      involving direct or indirect compensation or benefits (including any contracts
      entered into between the Company and any current or former officer, director,
      or
      employee of the Company), currently or previously maintained, established or
      entered into by the Company or to which the Company contributes or is or has
      been obligated or required to contribute or with respect to which the Company
      has or may have any liability (each, the “Plan”,
      and,
      collectively, the “Plans”).

    
      
         

      

      
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    (2) The
      Plans
      have been operated and administered in compliance with all applicable laws
      in
      all material respects and there are no material pending or, to the Knowledge
      of
      the Company, threatened claims by or on behalf of any of the Plans, by any
      governmental authority, by any Person or otherwise involving any such Plan
      or
      the assets of any Plan (other than routine claims for benefits). 

     

    (3) No
      stock
      or other security issued by the Company forms or has formed a part of the assets
      of any Plan.

     

    (4) Subject
      to Code § 280G(b)(5) and regulations thereunder and subject to obtaining the
      Stockholder approval contemplated thereby prior to the Closing, in connection
      with the Transaction contemplated by this Agreement, the Company has not made
      any payments, is not obligated to make any payments, and is not a party to
      any
      agreement that could obligate the Company to make any payments that will not
      be
      deductible by reason of Code § 280G. 

     

    (5) To
      the
      Knowledge of the Company, each such Plan (and each related trust, insurance
      contract, or fund) has been maintained, funded and administered in accordance
      with the terms of such Plan and complies in form and in operation in all
      respects with the applicable requirements of ERISA and the Code.

     

    (6) All
      contributions (including all employer contributions and employee salary
      reduction contributions) that are due have been made to each Plan. All premiums
      or other payments that are due have been paid with respect to each
      Plan.

     

    (7) Each
      Plan
      that is intended to meet the requirements of a “qualified plan” under Code
§401(a) has received and is covered by a determination letter from the Internal
      Revenue Service to the effect that it meets the requirements of Code §401(a) as
      of the date of such letter. There are no facts or circumstances that could
      adversely affect the qualified status of any such Plan.

     

    (8) The
      Company has never maintained, sponsored or contributed to, and does not
      currently maintain, sponsor or contribute to, any employee pension benefit
      plan
      that is a “defined benefit plan” (as defined in ERISA §3(35)).

     

    (9) No
      action, suit, proceeding, hearing, or investigation with respect to the
      administration or the investment of the assets of any such employee benefit
      plan
      (other than routine claims for benefits) is pending.

    
      
         

      

      
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    (10) To
      the
      Knowledge of the Company, there have been no prohibited transactions with
      respect to any plan or any employee benefit plan (as such term is defined in
§
3(3) of ERISA) maintained by an ERISA Affiliate. No fiduciary has any liability
      for material breach of fiduciary duty or any other material failure to act
      or
      comply in connection with the administration or investment of the assets of
      any
      Plan that would result in any direct or indirect claim against the Company.
      No
      action, suit, proceeding, hearing, or investigation with respect to any Plan
      or
      other claim (other than routine claims for benefits) is pending or, to the
      Knowledge of the Company, threatened.

     

    (11) Neither
      the Company nor any ERISA Affiliate maintains, sponsors, contributes to or
      has
      an obligation to contribute to, or has any liability or potential liability
      with
      respect to, any Plan providing health or life insurance or other welfare-type
      benefits for current or future retired or terminated employees, officers,
      directors or contractors (or any spouse or other dependent thereof) other than
      in accordance with COBRA.

     

    (12) Neither
      the Company nor any ERISA Affiliate has ever contributed to a multiemployer
      plan; neither the Company nor any ERISA Affiliate has any liability or potential
      liability under Title IV of ERISA, including on account of a “partial
      withdrawal” or a “complete withdrawal” (within the meaning of §§ 4203 and 4205
      of ERISA, respectively) from any multiemployer plan; and neither the Company
      nor
      any ERISA Affiliate is bound by any contract or agreement or has any obligation
      or liability described in § 4204 of ERISA. No Employee Benefit Plan is a
      multiple employer plan (within the meaning of § 3(40) of ERISA or § 413(c) of
      the Code.) 

     

    (13) To
      the
      Knowledge of the Company the consummation of the Merger will not (i) accelerate
      the time of the payment or vesting of, or increase the amount of, compensation
      due to the Company employees, (ii) reasonably be expected to result in any
      “excess parachute payment” under Code § 280G, or (iii) give rise to any
      liability or subject Buyer to any liability for the payment of severance pay,
      termination pay or any similar payment pursuant to any Plan or
      otherwise.

     

    (14) The
      Company has not announced a plan or legally binding commitment to create any
      additional employee benefit plans or to amend or modify any existing Plan except
      as otherwise required by law.

     

    (15) The
      Company does not have any liability, whether absolute or contingent, including
      any obligations under any Plan, with respect to any misclassification of a
      person as an independent contractor rather than as an employee. 

     

    (16) With
      respect to each Plan, the Company has delivered to Purchaser a current, accurate
      and complete copy (or, to the extent no such copy exists, an accurate
      description) thereof and, to the extent applicable: (i) any related trust
      agreement or other funding instrument; (ii) the most recent IRS determination
      letter; (iii) any summary plan description and other written communication
      by
      the Company to its employees concerning the benefits provided under the plan;
      and (iv) for the three most recent years, the Form 5500 and attached schedules,
      audited financial statements, actuarial valuation reports and any attorney’s
      response to any auditor’s request for information.

     

    
      
         

      

      
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    (p) Certain
      Business Relationships with the Company.
      None of
      the Stockholders, the members of the Company Board of Directors or the Company
      officers or their Affiliates has been involved in any material business
      arrangement or relationship with the Company within the past twelve (12) months
      and none of such individuals and/or their Affiliates owns any material asset,
      tangible or intangible, that is used in the business of the Company, other
      than
      in their capacities as employees of the Company. The Company Disclosure Schedule
      contains a complete and correct list of all Contracts pursuant to which any
      loans, leases, goods, services, materials or supplies are provided (a) by the
      Company, on the one hand, to the Stockholders, directors, officers or employees
      of the Company or their Affiliates (other than the Company), on the other hand,
      or (b) by the Stockholders, directors, officers or employees of the Company
      or
      their Affiliates (other than the Company), on the one hand, to the Company,
      on
      the other hand (each, an “Intracompany
      Arrangement”),
      in
      each case entered into, in effect, occurring or incurred within the past
      twenty-four (24) months. None of the Stockholders, directors, officers or
      employees of the Company or any of their respective Affiliates have been
      involved in any Intracompany Arrangement within the past twenty-four (24)
      months. The Company Disclosure Schedule sets forth all material shared corporate
      or administrative services that are provided to the Company by any Stockholder,
      director, officer or employee of the Company or any of their respective
      Affiliates, and any material asset, tangible or intangible, which is used in
      the
      Business but not owned by the Company. Except as expressly contemplated by
      this
      Agreement or any Related Document, no Intracompany Arrangement shall survive
      Closing. All amounts due a director, an officer or an agent have been paid
      in
      full prior to the Closing.

     

    (q) Absence
      of Undisclosed Liabilities.
      Except
      as
      specified in the balance sheet of the Company as of July 31, 2008, and on the
      Closing Schedule, the Company has no liabilities or obligations of a nature
      required to be disclosed on a balance sheet prepared in accordance with GAAP,
      except (a) as and to the extent disclosed, provided for and reserved for in
      the
      audited balance sheet of the Company as of December 31, 2007, included in the
      Financial Statements (or notes thereto) and (b) for liabilities and obligations
      that were incurred after the date of the balance sheet of the Company as of
      July
      31, 2008 in the ordinary course of business.

     

    (r) Absence
      of Changes.
      Except
      as contemplated by this Agreement, since the date of the Financial Statements,
      the Company has not:

     

    (1) declared,
      set aside, made, set a record date for or paid any dividend or other
      distribution in respect of its capital stock or otherwise purchased or redeemed,
      directly or indirectly, any shares of its capital stock;

     

    (2) issued
      or
      sold any shares of any class of its capital stock or other ownership interest,
      or any securities convertible into or exchangeable for any such shares or
      interest, or issued, sold, granted or entered into any subscription, options,
      warrants, conversion or other rights, agreements, commitments, arrangements
      or
      understandings of any kind, contingently or otherwise, to purchase or otherwise
      acquire any such shares or interest or any securities convertible into or
      exchangeable for any such shares or interest;

     

    (3) incurred
      any material obligation or liability except current liabilities for trade or
      business obligations incurred in connection with the purchase of goods or
      services in the ordinary course of business;

    
      
         

      

      
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    (4) discharged
      or satisfied any Encumbrance, other than those required to be discharged or
      satisfied, or paid any obligation or liability, other than (i) current
      liabilities shown on the Balance Sheet, (ii) current liabilities incurred since
      the date thereof in the ordinary course of business, (iii) scheduled payments
      of
      principal or interest on any indebtedness for borrowed money through the Closing
      Date, and (iv) intracompany liabilities as set forth on Company Disclosure
      Schedule;

     

    (5) subjected
      any of its assets to any Encumbrance other than any Permitted
      Encumbrances;

     

    (6) sold,
      transferred, leased to others or otherwise disposed of any of its assets, except
      in the ordinary course of business or fixed assets having an aggregate value
      of
      less than Fifty Thousand Dollars ($50,000), or canceled or compromised any
      debts
      or claims having an aggregate value in excess of Fifty Thousand Dollars
      ($50,000), or waived or released any right of substantial value, except in
      the
      ordinary course of business;

     

    (7) received
      any written notice of termination of any Material Contract as defined in §3(v)
      below;

     

    (8) suffered
      any damage, destruction or loss (whether or not covered by insurance) in excess
      of Fifty Thousand Dollars ($50,000) to any of its assets;

     

    (9) changed
      in any material respect its Tax or accounting practices, policies or principles
      except as required by any applicable law or GAAP except as required by
§5(o);

     

    (10) paid,
      granted or committed to grant any increase in any remuneration or benefits
      (including salary, incentive, change in control, retention or severance
      compensation) of any current or former director, officer, agent, other employee
      of or consultant to the Company outside of the ordinary course of business,
      except where such payment or increase is required by any applicable law or
      any
      contractual obligation existing on the date of this Agreement, all of which
      are
      set forth in the Company Disclosure Schedule;

     

    (11) made
      or
      committed to make any capital expenditures or capital additions or improvements
      in excess of an aggregate of Fifty Thousand Dollars ($50,000), except for
      capital expenditures or capital additions or improvements made in the ordinary
      course of business or contemplated by an approved budget of the
      Company;

     

    (12) instituted,
      settled or agreed to settle any Litigation;

     

    (13) transferred
      or granted any material rights or licenses under, or entered into any settlement
      regarding the infringement of, its Intellectual Property or entered into any
      licensing or similar agreements or arrangements with respect
      thereto;

     

    (14) made
      any
      amendment or changes in its articles of incorporation or bylaws;

     

    (15) engaged
      in any other transactions (i) outside the ordinary course of business and
      involving payments to or by the Company in excess of Fifty Thousand Dollars
      ($50,000) per annum, or (ii) that bind the Company for a term of more than
      one
      year or involving payments to or by the Company in excess of Fifty Thousand
      Dollars ($50,000) per annum (other than any sales by the Company to a customer
      to whom the Company has made a sale at any time within the past three (3) years,
      in an amount not exceeding the lesser of (A) One Hundred Thousand Dollars
      ($100,000) per purchase order, or (B) the maximum amount approved for extension
      of credit to such customer by the Company under its credit policy as in effect
      on December 31, 2007), in each case except as set forth in the Company
      Disclosure Schedule; or

    
      
         

      

      
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    (16) made
      a
      commitment to take any of the foregoing actions.

     

    (s) Government
      Approvals.
      The
      Company Disclosure Schedule sets forth all governmental approvals used in the
      Company’s business. All such government approvals have been duly obtained and
      are in full force and effect, and the Company is in compliance with each such
      governmental approval.

     

    (t) Compliance
      with Laws.
      Since
      December 31, 1998, the Company is, and at all times has been in compliance
      with
      all applicable laws in all respects. Prior to January 1, 1999, the Company
      at
      all times has been in compliance with all material applicable laws in all
      respects. The Company has not received any written notice alleging any violation
      or breach of, or failure to be in compliance with, any applicable law that
      has
      not been cured or waived; the Company collectively holds all permits applicable
      to the business required by applicable laws; and, the Company is in compliance
      with the terms of such permits.

     

    (u) Title
      to Assets.
      The
      Company has good and marketable title to, a valid leasehold interest in, or
      a
      valid license for, the tangible and intangible assets it uses regularly in
      the
      conduct of its business. The Company has good and marketable title to all of
      the
      material tangible and intangible assets owned by it, free and clear of any
      Encumbrances. The Company owns, leases, licenses or otherwise has the
      contractual right to use all of the assets used in or necessary for the conduct
      of the business as currently conducted.

     

    (v) Contracts.
      The
      Company Disclosure Schedule sets forth a true and complete list, and the Company
      has provided access to Buyer to the complete copies (including all amendments
      and extensions thereof) or, if oral, an accurate and complete description of
      all
      material terms, of each of the following to which the Company is a party or
      is
      otherwise bound (each, a “Material
      Contract”):

     

    (1) all
      loan
      agreements, indentures, mortgages, notes, installment obligations, capital
      leases, or other agreements or instruments relating to indebtedness for borrowed
      money (or guarantees thereof);

     

    (2) all
      continuing contracts or commitments for the future purchase, sale or manufacture
      of products, materials, supplies, equipment or services, and all agreements
      with
      independent dealers or manufacturer’s representatives, in each case requiring
      payment to or from the Company in an amount in excess of Fifty Thousand Dollars
      ($50,000) per annum which are not terminable on 60 days’ or less notice without
      cost or other liability;

     

    (3) all
      collective bargaining, employment, severance and other agreements requiring
      change of control or parachute payments from the Company, or any other type
      of
      contract or understanding between the Company and any of its respective officers
      or employees, other than pursuant to the Plans, which is not terminable by
      the
      Company upon 30 days’ or less notice without cost or other
      liability;

    
      
         

      

      
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    (4) all
      joint
      venture, partnership or other contracts involving a sharing of profits, losses,
      costs or liabilities by the Company with any other Person;

     

    (5) all
      rights to use the intellectual property of a third party, whether pursuant
      to a
      license, sublicense, agreement or otherwise;

     

    (6) all
      government contracts; and

     

    (7) all
      agreements containing covenants that in any way purport to restrict the business
      activity of the Company or limit the freedom of the Company to engage in any
      line of business or to compete with any Person.

     

    The
      Company is not in default under any Material Contract such that the other party
      thereto is legally entitled to modify, cancel, accelerate or terminate such
      Material Contract, and to the Knowledge of the Company, no other party to any
      Material Contract is in default thereunder such that the Company is legally
      entitled to modify, cancel, accelerate or terminate the Material Contract.
      No
      event has occurred which (after notice or lapse of time or both) would become
      a
      breach or default under, or would otherwise permit modification, cancellation,
      acceleration or termination of, any Material Contract or would result in the
      creation of or right to obtain any Encumbrance upon, or any Person obtaining
      any
      right to acquire, any assets, rights or interests of the Company. Each Material
      Contract is in full force and effect and is a valid and binding obligation
      of
      the Company and, to the Knowledge of the Company, the other parties thereto.
      The
      Company has not received notice from any party to a Material Contract that
      such
      party intends either to modify, cancel or terminate a Material
      Contract.

     

    (w) Intellectual
      Property.

     

    (1) The
      Company owns or has the right to use pursuant to licenses, sublicenses,
      agreement, permission or other rights to use all Intellectual Property rights
      that are necessary to the conduct of the Business as currently conducted. The
      stockholders, directors, officers and employees of the Company have heretofore
      transferred to the Company all right, title and interest of such person in
      and
      to the Intellectual Property listed in the Company Disclosure Schedule.
      Following the consummation of the transactions contemplated by this Agreement,
      each Intellectual Property listed in the Company Disclosure Schedule (except
      to
      the extent, if any, otherwise indicated thereon) will be owned or available
      for
      use by the Company on the same terms and conditions as were applicable
      immediately prior to Closing.

     

    (2) The
      Company Disclosure Schedule sets forth a true and complete list of:

     

    (i) all
      material unregistered trademarks used in the Business and owned by the Company,
      and all trademark registrations and applications to register trademarks owned
      by
      the Company, including for each such registered trademark, identification of
      the
      owner, the application or registration number, country, filing or registration
      date, expiration date, filing class and description of the
      mark;

    
      
         

      

      
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    (ii) all
      service mark registrations and applications to register service marks owned
      by
      the Company, including for each such service mark, identification of the owner,
      the application or registration number, country, filing or registration date,
      expiration date, filing class and description of the mark;

     

    (iii) all
      copyrights registrations and applications to register copyrights owned by the
      Company, including for each such copyright, identification of the owner, the
      application or registration number, country, filing or registration date,
      expiration date, filing class and description of the copyrighted
      work;

     

    (iv) all
      patents and patent applications owned or licensed by the Company, including
      for
      each such patent and patent application, identification of the owner, the
      application serial number or issue patent number and country; and

     

    (v) any
      other
      Intellectual Property used in the Business and licensed by the Company, or
      licensed or sublicensed by the Company to a third party, including without
      limitation, any of the Stockholders, directors, officers, employees of the
      Company and their respective Affiliates (and a summary description of the
      Intellectual Property subject to such license or sublicense, and the names
      of
      the parties thereto).

     

    (3) To
      the
      Knowledge of the Company, the Company is not required to pay any royalty,
      license fee or similar compensation in connection with the conduct of the
      Business as currently conducted.

     

    (4) To
      the
      Knowledge of the Company, the Company has not infringed upon or misappropriated
      any Intellectual Property of third parties in any respect. No claims have been
      asserted in writing by any Person alleging that the Company infringed upon
      or
      misappropriated the Intellectual Property of any other Person. No action, suit,
      proceeding, complaint, claim or demand is pending, or to the Knowledge of the
      Company, threatened, which challenges the legality, validity, use or ownership
      of the Intellectual Property listed as owned by the Company in the Company
      Disclosure Schedule.

     

    (5) To
      the
      Knowledge of the Company, no Person is infringing upon or misappropriating
      any
      Intellectual Property of the Company.

     

    (6) To
      the
      Knowledge of the Company, no material action, suit, proceeding, assertion,
      challenge or claim is pending or threatened against a third party challenging
      the legality, validity, use or ownership of the same Intellectual Property
      licensed or otherwise used in the Business by the Company.

     

    (7) No
      Intellectual Property listed as owned by the Company in the Company Disclosure
      Schedule, nor any of the Company’s products or services are subject to an
      outstanding injunction, judgment, order, decree, agreement or ruling restricting
      the use of the Intellectual Property with respect to the Business of the Company
      or restricting the licensing thereof to any Person.

    
      
         

      

      
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    (8) With
      respect to the Intellectual Property listed in the Company Disclosure Schedule
      as resulting from a license, sublicense, agreement, or permission, except for
      Permitted Encumbrances, to the Knowledge of the Company each such license,
      sublicense, agreement or permission is valid, binding, and in full force and
      effect in all material respects; the Company is not in material breach or
      default thereunder, and no event has occurred which with notice or lapse of
      time
      would constitute a breach or default or permit termination thereunder; and
      the
      Company has not granted a sublicense or similar right with respect to the
      license, sublicense, agreement or permission.

     

    (9) All
      required maintenance fees concerning the material Intellectual Property have
      been paid.

     

    (x) Real
      Property Leases.
      The
      Company is not a party to any real property leases, subleases or occupancy
      agreements pursuant to which the Company is the lessee, sublessee, licensee
      or
      occupant
      of any real property. Each Lease is in full force and effect, the
      Company is not in default of any of its material obligations under any Lease,
      and,
      to
      the Knowledge of the Company, the lessor is not in material default thereunder.
      There
      is
      no interest superior to the Company’s interest in any Lease which would have the
      right to terminate any Lease or otherwise affect the Company’s rights under any
      Lease so long as the Company is not in default of its obligations under any
      Lease beyond the applicable periods of notice and grace. The
      Company is not required under any Lease to obtain the consent of any lessor
      to
      execute this Agreement and the Related Documents, or otherwise consummate the
      transactions contemplated hereby and thereby.

     

    (y) Environmental
      Matters.
      

     

    (1) To
      the
      Knowledge of the Company, the Company is in compliance with the requirements
      of
      all Environmental Laws.

     

    (2) To
      the
      Knowledge of the Company, the Company has not received any written notice,
      report, or other information regarding any actual or alleged violation of
      Environmental Laws, or any Environmental Claims.

     

    (3) With
      respect to facilities currently owned, leased or operated by the Company, to
      the
      knowledge of the Company no Release or threatened Release of Hazardous Materials
      has occurred in, on or from, and with respect to, any facilities (each a
“Facility”
and
      collectively, the “Facilities”)
      previously owned, leased or operated by the Company, no Release or, to the
      Knowledge of the Company, threatened Release of Hazardous Materials has occurred
      in, on or from the Facility during the period that the Company owned, leased
      or
      operated the facility. The facilities currently owned, leased or operated by
      the
      Company are free of Hazardous Materials as of the date of this Agreement, except
      for Hazardous Materials used, stored or present in compliance with applicable
      Environmental Laws or in a condition or quantity that would not require
      remediation under applicable Environmental Laws.

     

    (4) During
      the time that the Company has owned or leased any Facility, the Company has
      not
      used, generated, manufactured or stored on, under or about such facilities
      or
      transported or arranged for disposal to or from such facilities, any Hazardous
      Materials in violation of applicable Environmental Laws. 

    
      
         

      

      
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    (5) The
      Company holds and is in compliance with all Environmental Permits, or exemptions
      from Environmental Permits, required for its facilities and
      operations.

     

    (6) During
      the time that the Company has owned or leased any Facility, there has been
      no
      litigation brought or, to the Knowledge of the Company, threatened in writing
      against the Company by, or any settlement reached by the Company with, any
      Person or Persons alleging the presence, disposal, Release or threatened Release
      of any Hazardous Materials on from or under such Facility.

     

    (7) The
      Company previously has furnished or made available to Buyer accurate, true,
      and
      complete copies of any and all environmental audits or risk assessments, site
      assessments, documentation regarding on-site or off-site disposal of Hazardous
      Materials or Release of Hazardous Materials, spill control plans, and all other
      material correspondence, documents or communications with any governmental
      authority or other entity regarding the foregoing since January 1, 2003, that
      the Company currently has in its possession, or otherwise exists to the
      Knowledge of the Company (in which case, the Company has previously disclosed
      the existence of such documents and the identity of the Person possessing the
      same, if known).

     

    (8) The
      Company is aware of no requirements under applicable Environmental Laws, or
      of
      any other circumstances, which raise a reasonable concern that the Company
      will
      not be able to continue to operate its business as presently
      conducted.

     

    (z) Employees,
      Labor Matters, etc.
      The
      Company is not a party to or bound by any collective bargaining agreement,
      and
      there are no labor unions, work councils or other organizations representing
      or,
      to the Knowledge of the Company, purporting or attempting to represent any
      employee of the Company. No strike, slowdown, picketing, work stoppage,
      concerted refusal to work overtime or other similar labor activity with respect
      to any current employee of the Company is currently ongoing or, to the Knowledge
      of the Company, has been threatened since January 1, 2003. To the Knowledge
      of
      the Company, since January 1, 2003, the Company has complied in all material
      respects with all applicable provisions of applicable law pertaining to the
      employment or termination of employment of any Person, including, without
      limitation, all such applicable laws relating to labor relations, equal
      employment, fair employment practices, wage and hour, workers compensation,
      prohibited discrimination, immigration status, tax information reporting,
      employment and withholding taxes or other similar employment practices or acts.
      The Company has not ordered any “plant closing” or “mass layoff” as those terms
      are defined in the WARN Act.

     

    (aa) Insurance.
      The
      Company Disclosure Schedule sets forth a true and correct list of all insurance
      policies currently maintained by or for the benefit of the Company, including
      policies providing property, fire and extended coverage and casualty, liability
      and workers’ compensation coverage and bond and surety agreements, and other
      forms of insurance, and sets forth the following information with respect to
      each such insurance policy:

    
      
         

      

      
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    (1) the
      name,
      address and telephone number of the agent who is the contact person for such
      policy;

     

    (2) the
      name
      of the insurer, the name of the policyholder and the name of each covered
      insured;

     

    (3) the
      policy number and the period of coverage; and

     

    (4) the
      type
      and limits of coverage provided under the policy.

     

    With
      respect to each such insurance policy: (i) all policy premiums due to date
      have
      been paid in full and, to the Knowledge of the Company, the policy is legal,
      valid binding and enforceable; and in full force and effect in all material
      respects; and (ii) none of the Company or its Affiliates and, to the Knowledge
      of the Company, no other party to the policy is in material breach or default
      (including with respect to the payment of premiums or the giving of notices)
      and
      no event has occurred which, with notice or the passage of time, would
      constitute such a material breach or default, or permit termination,
      modification, or acceleration, under the policy.

     

    (bb) Product
      and Service Warranties.
      Set
      forth in the Company Disclosure Schedule are copies of the standard forms of
      warranty offered by the Company to third parties with respect to each of the
      products marketed by the Company at any time since January 1, 2003. All material
      service or warranty liabilities of the Company to customers or other Persons
      are
      reflected on the Financial Statements or on the accounting records of the
      Company as of the Closing Date.

     

    (cc) Product
      Liability.
      There
      are no material defects in the design or manufacture of any of the products
      sold
      by the Company. The Company has not initiated a recall of any of the products
      sold by them during the last three years. During the last three years, the
      Company has not received any written notice or, to the Knowledge of the Company,
      any oral or other notice of a claim against the Company alleging a design or
      manufacturing defect in the products sold by the Company.

     

    (dd) Inventory.
      Except
      for reserves for obsolescence reflected on the Most Recent Financial Statements
      or books of account of the Company, the inventory of the Company (including
      that
      reflected on the Financial Statements), taken as a whole, is in merchantable
      condition, and suitable and usable or salable in the ordinary course of business
      for the purposes for which it was intended, and has been reflected on the
      Financial Statements and carried on the books of account of the Company in
      accordance with GAAP consistently applied. Without limiting the generality
      of
      the foregoing, such inventory does not include any obsolete materials or any
      excess stock items, except as have been reserved against as reflected on the
      Financial Statements and for adjustments to be made pursuant to §5(o). The
      reserves created by the Company to cover returns have been calculated and
      carried on the books of account of the Company in accordance with GAAP
      consistently applied.

     

    (ee) Receivables
      and Payables.
      (i) The
      accounts and notes receivable reflected on the Financial Statements or arising
      since the date of the Balance Sheet (collectively, the “Receivables”),
      are
      bona fide, represent valid obligations to the Company, and have arisen or were
      acquired in the ordinary course of business and in a manner substantially
      consistent with recent past practice and with the regular credit practices
      of
      the Company; (ii) the Company’s provision for doubtful accounts reflected on its
      Financial Statements or reserved on its books since the date of the Balance
      Sheet has been determined in accordance with GAAP consistently applied; (iii)
      none of the Receivables will at the Closing Date be subject to any valid
      defense, counterclaim or setoff; (iv) since the date of the Balance Sheet,
      the
      Company has not canceled, reduced, discounted, credited or rebated or agreed
      to
      cancel, reduce, discount, credit or rebate, in whole or in part, any
      Receivables, except in the ordinary course of business consistent with past
      practice; and (v) there has not been any material change since the date of
      the
      Balance Sheet in the amounts of Receivables or the allowances with respect
      thereto, or accounts payable of the Company, from those reflected in the Balance
      Sheet. Upon request by Parent, the Company will make available to Buyer a
      schedule of aged Receivables and payables for the Company as of a date which
      is
      within three (3) business days of the date of this Agreement.

     

    
      
         

      

      
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    (ff) No
      Material Adverse Effect.
      Since
      the date of the most recent Balance Sheet, no change, event, occurrence,
      condition or development has occurred that, either individually or in the
      aggregate with other changes, events, occurrences, conditions or developments,
      has had or could reasonably be expected to have a Material Adverse Effect on
      the
      Company.

     

    (gg) Suppliers
      and Customers.
      The
      Company Disclosure Schedule sets forth the five (5) largest suppliers and ten
      (10) largest customers of the Company, based on the dollar amount of sales
      or
      purchases for each of the three years ended December 31, 2007. To the Knowledge
      of the Company, no such supplier or customer has cancelled or terminated, or
      provided notice that it intends to cancel or otherwise terminate its
      relationship with the Company, or has during the last twelve (12) months
      provided written that it will materially decrease or materially limit, its
      services, supplies or materials for use by the Company or its usage or purchase
      of the services and products of the Company.

     

    (hh) Indebtedness.
      Except
      for indebtedness for borrowed money set forth in the Company Disclosure
      Schedule, the Company has no indebtedness for borrowed money outstanding. The
      Company is not in material default with respect to any agreement or instrument
      governing the terms of any outstanding indebtedness for borrowed money. Complete
      and correct copies, and if oral, accurate and complete descriptions of the
      material terms, of all instruments, (including amendments, waivers and consents)
      relating to any indebtedness for borrowed money has been made available to
      Buyer. As of the Closing Date, the Company will have no indebtedness for
      borrowed money outstanding, except the Real Estate Mortgage Loan, which shall
      be
      paid as provided in §6(d).

     

    (ii) Government
      Contracts.

     

    (1) With
      respect to each government contract (whether the Company is a prime contractor
      or a direct or indirect subcontractor), since January 1, 2002 (A) the Company
      has complied in all material respects with all terms and conditions of such
      government contract, including all clauses, provisions, and requirements
      incorporated expressly, by reference, or by operation of applicable law therein,
      (B) the Company has complied in all material respects with all requirements
      of
      applicable law or agreements pertaining to such government contract, including,
      if and to the extent applicable, the Truth in Negotiations Act, the Price
      Reductions and Industrial Funding Fee clauses and the Commercial Sales Practices
      disclosure requirements of the Company’s General Services Administration
      Schedule Solicitation, Proposal and Contract, and each the Company’s Cost
      Accounting Standards disclosure statement, if any, (C) all representations
      and
      certifications executed, acknowledged or set forth in or pertaining to such
      government contract were complete and correct as of their effective date and
      the
      Company has complied in all material respects with all such representations
      and
      certifications, (D) neither the United States Government nor any non-US
      government, state government, local government, prime contractor, subcontractor
      or other person has notified the Company in writing that the Company has
      breached or violated any applicable law, certification, representation, clause,
      provision or requirement pertaining to such government contract, (E) no
      termination for convenience, termination for default, cure notice, show cause
      notice, or stop work order is currently in effect pertaining to such government
      contract, (F) no cost incurred by the Company pertaining to such government
      contract has been challenged, is the subject of any audit or investigation
      or
      has been disallowed by any governmental authority, or prime contractor or
      subcontractor relating to a government contract and (G) no money due to the
      Company pertaining to such government contract has been withheld, reduced or
      set
      off nor has any claim been made to withhold or set off money and, to the
      Knowledge of the Company, the Company is entitled to all progress payments
      received with respect thereto.

    
      
         

      

      
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    (2) Neither
      the Company nor any of its directors, officers, employees, consultants or agents
      is or since January 1, 2002 has (A) been under administrative, civil or criminal
      investigation to the Knowledge of the Company, indictment or information by
      any
      governmental authority or any audit investigation by any governmental authority
      with respect to any alleged act or omission arising under or relating to any
      government contract or (B) conducted or initiated any internal investigation,
      any investigation or made a voluntary disclosure to any governmental authority
      with respect to any alleged act or omission arising under or relating to a
      government contract.

     

    (3) To
      the
      Knowledge of the Company, there exist (A) no outstanding claims against the
      Company by any governmental authority or by any non-US government, state or
      local government, prime contractor, subcontractor, vendor or other Person,
      arising under or relating to any government contract and (B) no disputes between
      the Company and the United States government under the Contract Disputes Act
      or
      any other federal statute or between the Company and any prime contractor,
      subcontractor or vendor arising under or relating to any government contract.
      The Company has no direct financial interest in any pending or potential claim
      against any governmental authority or any non-US government, state or local
      government, prime contractor, subcontractor or vendor arising under or relating
      to any government contract.

     

    (4) Since
      January 1, 2002, (A) the Company has not been debarred or suspended from
      participation in the award of contracts with the United States Government or
      any
      other governmental authority; (B) to the Knowledge of the Company, there exist
      no facts or circumstances that would warrant the institution of suspension
      or
      debarment proceedings or the finding of nonresponsibility or ineligibility
      on
      the part of the Company or any director, officer or employee of such; (C) no
      payment has been made by the Company, or, to the knowledge of the Company,
      any
      of its employees, agents, consultants or any other Person acting for, or on
      behalf of, the Company in connection with any government contract in violation
      of applicable procurement laws or in violation of, or requiring disclosure
      pursuant to, the FCPA; provided,
      however,
      that
      representations set forth in clause (C) shall be applicable to the Company’s
      agents, and consultants and other Persons acting for, or on behalf of, the
      Company solely to the extent that such actions of such Persons result in the
      imposition of liability on the Company or Buyer under FCPA or such other
      applicable procurement laws; and (D) all of the Company’s cost accounting and
      procurement systems and the associated entries reflected in the Company’s
      financial statements with respect to the government contracts are in compliance
      in all material respects with applicable law if and to the extent
      applicable.

    
      
         

      

      
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    (5) Since
      January 1, 2002 (A) all test and inspection results provided by the Company
      to
      any governmental authority pursuant to any government contract or to any other
      Person pursuant to a government contract or as a part of the delivery to any
      governmental authority or other Person pursuant to a government contract of
      any
      article designed, engineered, manufactured or repaired by the Company were
      complete and correct in all material respects as of the date so provided; and
      (B) the Company has provided all test and inspection results to the United
      States Government or to any other Person pursuant to a government contract
      as
      required by applicable law and the terms of the applicable government
      contract.

     

    (6) The
      Company is not in possession of any material government-owned property,
      including material, tooling and test equipment, provided under, necessary to
      perform the obligations under or for which Buyer could be held accountable
      under
      the government contracts, other than any such property that has been returned
      to
      the Company for repair or other service.

     

    (7) All
      of
      the government contracts were entered into in the ordinary course of the
      business and, to the Knowledge of the Company, would be capable of performance
      by the Company in accordance with the terms and conditions thereof without
      loss
      if Stockholders had continued to own and operate the Business without regard
      to
      the Transaction contemplated by this Agreement.

     

    (jj) Books
      and Records.
      The
      minute books and other corporate records of the Company, all of which have
      been
      made available to Buyer, are complete and correct. The Company currently
      maintains an adequate system of internal controls. At the Closing, all of those
      books and records will be in the possession of the Company or will be delivered
      to Buyer or the Company.

     

    (kk) Condition
      of Assets.
      The
      equipment and leasehold improvements owned by the Company are, taken as a whole,
      in good operating condition and repair, normal wear and tear excepted, and
      are
      adequate for the uses to which they are being put. The real property, personal
      property, intangible property and intellectual property owned, licensed or
      leased by the Company are sufficient for the continued conduct of the businesses
      of the Company after the Closing in substantially the same manner as conducted
      prior to the Closing.

     

    (ll) Trade
      Controls.
      The
      Company is not a party to any contract or bid with a Prohibited Person. Since
      January 1, 2002, the Company has not, to the Knowledge of the Company, conducted
      business with a Person who was, at the time of the Transaction in question,
      a
      Prohibited Person.

     

    
      
         

      

      
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    (mm) Ethical
      Practices.
      Each of
      the Company and, to the Knowledge of the Company, its employees, agents,
      consultants and each other Person acting for, or on behalf of, the Company,
      has
      complied with the United States Foreign Corrupt Practices Act (the “FCPA”)
      and
      all other applicable laws regarding illegal payments and gratuities
      (collectively with the FCPA, the “Improper
      Payment Laws”),
      and
      has not, directly or indirectly, used funds or other assets, or made any promise
      or undertaking in such regard, for any illegal payments to or for the benefit
      of
      any Person or the establishment or maintenance of a secret or unrecorded fund.
      Notwithstanding the provisions of the immediately preceding sentence, the
      representations set forth in such sentence shall be applicable to the Company’s
      employees, agents, and consultants and other Persons acting for, or on behalf
      of, the Company solely to the extent that such actions of such Persons result
      in
      the imposition of liability on the Company or Buyer under any Improper Payment
      Laws. There have been no false or fictitious entries made in the books or
      records of the Company relating to any such illegal payment or secret or
      unrecorded fund.

     

    (nn) Stockholder
      Voting Requirements.
      The
      Stockholders’ vote in favor of the adoption of this Agreement, the Related
      Documents and the transactions contemplated hereby and thereby is the only
      vote
      of the holders of any class or series of the Company Stock required by
      applicable law (including, without limitation, the CBCA) and the Company’s
      organizational instruments to duly effect such adoption. All requisite
      Stockholder votes and approvals under applicable law have been or shall be
      obtained prior to the Closing. 

     

    (oo) SERP.
      The
      Unicircuit Nonqualified Supplemental Executive Retirement Plan and any and
      all
      related documents have been terminated and the Company has no obligation to
      any
      Person with respect thereto and no liability or obligation
      thereunder.

     

    (pp) Disclosure.
      None of
      the representations and warranties of the Company contained in this Agreement
      or
      any of the transaction documents to which it is a party, taken as a whole,
      contains or will contain any untrue statement of a material fact, or omits
      to
      state any material fact required to be stated or necessary to make any such
      information or document, in light of the circumstances, not
      misleading.

     

    §4. Representations
      and Warranties of Parent

     

    Parent
      represents and warrants to the Stockholders that the statements contained in
      this §4 are correct and complete as of the date of this Agreement and will be
      correct and complete as of the Closing Date (as though made then and as though
      the Closing Date were substituted for the date of this Agreement throughout
      this
§4), except as set forth in Buyer Disclosure Schedule.

     

    (a) Organization
      of Parent and Buyer.
      Parent
      is a corporation duly organized, validly existing, and in good standing under
      the laws of the jurisdiction of the State of New York. Buyer is a corporation
      duly organized, validly existing, and in good standing under the laws of the
      jurisdiction of the State of Colorado.

     

    (b) Authorization
      of Transaction.
      Each of
      Parent and Buyer has full power and authority (including full corporate or
      other
      entity power and authority) to execute and deliver this Agreement and the
      Related Documents to which it is or will be a party and to perform its
      obligations hereunder and thereunder. This Agreement and the Related Documents
      to which each of Parent and Buyer is or will be a party constitute the valid
      and
      legally binding obligations of such persons, enforceable in accordance with
      their terms and conditions. Each of Parent and Buyer need not give any notice
      to, make any filing with, or obtain any authorization, consent, or approval
      of
      any government or governmental agency in order to consummate the transactions
      contemplated by this Agreement or the Related Documents to which Buyer is or
      will be a party. The execution, delivery and performance of this Agreement
      and
      the Related Document to which each of Buyer and Parent is or will be a party
      have been duly authorized by them as applicable.

     

    
      
         

      

      
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    (c) Non-contravention.
      Neither
      the execution and delivery of this Agreement or the Related Documents to which
      each of Parent and Buyer is or will be a party, nor the consummation of the
      transactions contemplated hereby or thereby, will (A) violate any constitution,
      statute, regulation, rule, injunction, judgment, order, decree, ruling, charge,
      or other restriction of any government, governmental agency, or court to which
      Buyer is subject or any provision of its charter, bylaws, or other governing
      documents or (B) conflict with, result in a breach of, constitute a default
      under, result in the acceleration of, create in any Person the right to
      accelerate, terminate, modify, or cancel, or require any notice under any
      agreement, contract, lease, license, instrument, or other arrangement to which
      Buyer is a party or by which it is bound or to which any of its assets is
      subject.

     

    (d) Brokers’
      Fees.
      Each of
      Parent and Buyer has no liability or obligation to pay any fees or commissions
      to any broker, finder, or agent with respect to the transactions contemplated
      by
      this Agreement.

     

    (e) Disclosure.
      None of
      the representations and warranties of Parent contained in this Agreement or
      any
      of the transaction documents to which it is a party, taken as a whole, contains
      or will contain any untrue statement of a material fact, or omits to state
      any
      material fact required to be stated or necessary to make any such information
      or
      document, in light of the circumstances, not misleading.

     

    §5. Pre-Closing
      Covenants

     

    The
      Parties agree as follows with respect to the period between the execution of
      this Agreement and the Closing.

     

    (a) General.
      Each of
      the Parties will use his, her, or its reasonable best efforts to take all
      actions and to do all things necessary in order to consummate and make effective
      the transactions contemplated by this Agreement (including satisfaction, but
      not
      waiver, of the Closing conditions set forth in this Agreement).

     

    (b) Notices
      and Consents.
      The
      Company will give any requisite notices to third parties, and the Company will
      use its commercially reasonable efforts to obtain any required third party
      consents. Each of the Parties will give any notices to, make any filings with,
      and use its best efforts to obtain any authorizations, consents, and approvals
      of governments and governmental agencies necessary to consummate the
      transactions contemplated by this Agreement and the Related Documents.

     

    
      
         

      

      
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    (c) Operation
      of Business.
      The
      Company will not engage in any practice, take any action, or enter into any
      transaction outside the ordinary course of business other than as contemplated
      by this Agreement. Without limiting the generality of the foregoing, the Company
      will not cause or permit the Company to (i) declare, set aside, or pay any
      dividend or make any distribution with respect to its capital stock or redeem,
      purchase, or otherwise acquire any of its capital stock, (ii) purchase any
      asset
      or incur any liability in excess of Fifty Thousand Dollars ($50,000) without
      obtaining Buyer’s prior written consent, or (iii) otherwise engage in any
      practice, take any action, or enter into any transaction of the sort described
      above; provided, however, that the Company may make distributions to its
      preferred stockholders as permitted in §2(g)(5) of this Agreement and may pay
      employee stockholders as permitted in §2(g)(5) of this Agreement.

     

    (d) Preservation
      of Business.
      The
      Company will keep its business and properties substantially intact, including
      its present operations, physical facilities, working conditions, insurance
      policies, and relationships with lessors, licensors, suppliers, customers,
      and
      employees.

     

    (e) Full
      Access.
      The
      Company will permit representatives of Buyer and its professionals to have
      full
      access at all reasonable times, and in a manner so as not to interfere with
      the
      normal business operations of the Company, to all premises, properties,
      personnel, books, records (including Tax records), contracts, and documents
      of
      or pertaining to the Company.

     

    (f) Notice
      of Developments.
      The
      Company will give prompt written notice to Buyer of any material adverse
      development causing a breach of any of the representations and warranties in
§3
      above. Each Party will give prompt written notice to the others of any material
      adverse development causing a breach of any of its own representations and
      warranties in §3 or §4 above. No disclosure by any Party pursuant to this
      paragraph, however, shall be deemed to amend or supplement the Disclosure
      Schedule or to prevent or cure any misrepresentation, breach of warranty, or
      breach of covenant

     

    (g) Exclusivity.
      Subject
      to the provisions of §10(c) below, neither the Company nor any of its directors,
      officers, employees or agents will directly or indirectly (i) solicit, initiate,
      or encourage the submission of any proposal or offer from any Person relating
      to
      the acquisition of any capital stock or other voting securities, or any portion
      of the assets, of the Company (including any acquisition structured as a merger,
      consolidation, or share exchange), other than in the ordinary course of business
      or (ii) participate in any discussions or negotiations regarding, furnish any
      information with respect to, assist or participate in, or facilitate in any
      other manner any effort or attempt by any Person to do or seek any of the
      foregoing. The Company shall notify Buyer immediately if any Person makes any
      proposal, offer, inquiry, or contact with respect to any of the foregoing.
      

     

    (h) Maintenance
      of Real Property.
      The
      Company will maintain the Real Property, including all of the improvements,
      in
      substantially the same condition as existed on the date of this Agreement,
      ordinary wear and tear excepted, and shall not demolish or remove any of the
      existing improvements, or erect new improvements on the Real Property or any
      portion thereof, without the prior written consent of Buyer.

     

    
      
         

      

      
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    (i) Leases.
      The
      Company will not permit any of the Company’s Leases to be amended, modified,
      extended, renewed or terminated, nor shall the Company enter into any new lease,
      sublease, license or other agreement for the use or occupancy of any Real
      Property, without the prior written consent of Buyer.

     

    (j) Title
      Insurance, Surveys
      and
      Certificate of Compliance.
      The
      Company will use its commercially
      reasonable
      efforts
      to assist Buyer in obtaining the Title Commitments, Title Policies and Surveys
      in form and substance as set forth in this Agreement, within the time periods
      set forth therein, including removing from title any Encumbrances or
      encumbrances that are not Permitted Encumbrances. The Stockholders shall provide
      the Title Company with any affidavits, indemnities, memoranda or other
      assurances requested by the Title Company to issue the Title
      Policies.
      Prior to
      Closing, the Company will obtain and deliver to Parent a Certificate of
      Compliance in accordance with Section 10.7 of the Southpark Covenants that
      the
      Real Property is not in violation of the Southpark Covenants.

     

    (k) The
      Company’s Stockholders’ Meeting.
      No
      less
      than three (3) business days after the execution and delivery of this Agreement
      by all Parties, the Company shall duly call a meeting of the Stockholders to
      obtain all necessary Stockholders’ approvals of this Agreement, including,
      without limitation, the plan of merger described herein with such meeting being
      scheduled for the earliest time permissible under applicable law and the
      Company’s By-laws. Subject to §10(c) of this Agreement, prior to and at the
      Company Stockholders’ meeting, the Company Board of Directors shall unanimously
      recommend that the Stockholders approve this Agreement and the
      Merger.

     

    (l) Employment
      Agreements.
      Prior to
      Closing the Company shall satisfy in full all current obligations of the Company
      in employment agreements between the Company and officers or employees of the
      Company.

     

    (m) Identified
      Liabilities.
      Prior to
      or at the Closing the Company shall either satisfy or accrue for financial
      accounting purposes the Identified Liabilities.

     

    (n) Line
      of Credit.
      Effective as of the Closing, the Company shall terminate all of its letters
      of
      credit.

     

    (o) Adjustments.
      Prior
      to the Closing the Company shall write off, write down and/or adjust the items
      listed on Schedule
      §5(o)
      in the
      manner set forth in Schedule
      §5(o)
      on its
      books and financial records and for Tax purposes. 

     

    (p) Letters
      of Credit.
      At or
      before the Closing the Company shall terminate its letters of
      credit.

     

    (q) Transaction
      Expenses.
      At or
      before the Closing the Company shall pay all of the Transaction Expenses by
      check or wire transfer.

     

    (r) Termination
      of Certain Equity Based Rights and Certain Bonus Participation.
      Prior
      to the Closing the Company shall terminate all outstanding or authorized
      options, warrants, purchase rights, subscription rights, conversion rights,
      exchange rights, or other contracts or commitments, and all related plans,
      that
      could require the Company to issue, sell, or otherwise cause to become
      outstanding any of its capital stock. Prior to the Closing the Company shall
      terminate all stock appreciation, phantom stock, profit participation, or
      similar rights, and all related plans, with respect to the Company, excluding
      the Company’s 401(k) retirement Plan. The following individuals’ rights to
      participate in any bonus arrangement and/or bonus plan of the Company in
      existence immediately prior to the Closing shall be terminated: Kerry Bode,
      Lance Riley, Ty Gragg and Anthony Carfanga.

     

    
      
         

      

      
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    §6. Post-Closing
      Covenants

     

    The
      Parties agree as follows with respect to the period following the
      Closing.

     

    (a) General.
      In case
      at any time after the Closing any further actions are necessary or desirable
      to
      carry out the purposes of this Agreement or any of the Related Documents, each
      of the Parties will take such further reasonable actions (including the
      execution and delivery of such further instruments and documents) as any other
      Party may reasonably request, all at the sole cost and expense of the requesting
      Party (unless the requesting Party is entitled to indemnification therefor).
      The
      Company acknowledges and agrees that from and after the Closing, the Surviving
      Corporation will be entitled to possession of all documents, books, records
      (including Tax records), agreements, and financial data of any sort relating
      to
      the Company.

     

    (b) Litigation
      Support.
      In the
      event and for so long as any Party actively is contesting or defending against
      any action, suit, proceeding, hearing, investigation, charge, complaint, claim,
      or demand in connection with (i) any transaction contemplated under this
      Agreement or any Related Document, (ii) any fact, situation, circumstance,
      status, condition, activity, practice, plan, occurrence, event, incident,
      action, failure to act or transaction, on or prior to the Closing Date,
      involving the Company, each of the other Parties shall cooperate with him,
      her,
      or it and his, her, or its counsel in the defense or contest, make available
      his, her, or its personnel, and provide such testimony and access to his, her,
      or its books and records as shall be reasonably necessary in connection with
      the
      defense or contest, all at the sole cost and expense of the contesting or
      defending Party (unless the contesting or defending Party is entitled to
      indemnification therefore). The provision of this§6(b)
      shall not apply to any litigation where at least one Party hereto is opposing
      another Party hereto in any litigation.

     

    (c) Transition.
      The
      Company shall not take any action that is designed or intended to have the
      effect of discouraging any lessor, licensor, customer, supplier, or other
      business associate of the Company from maintaining the same business
      relationships with the Company after the Closing as it maintained with the
      Company prior to the Closing.

     

    (d) Satisfaction
      of Real Estate Mortgage Loan.
      Immediately following the Closing or the next business day Parent shall cause
      the Surviving Corporation to satisfy the Real Estate Mortgage Loan.

     

    (e) No
      338 Election.
      Neither
      Parent, Buyer nor the Company shall make an election under Code§ 338 or under
      take any action resulting in a deemed election under Code § 338 regarding the
      Merger.

     

    
      
         

      

      
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    §7. Conditions
      to Obligation to Close

     

    (a) Conditions
      to Buyer’s Obligation.
      Each of
      Buyer’s and Parent’s obligations to consummate the transactions to be performed
      by them in connection with the Closing are subject to satisfaction of all the
      following conditions:

     

    (1) the
      representations and warranties set forth in §3 above shall be true and correct
      in all material respects at and as of the Closing Date, except to the extent
      that such representations and warranties are qualified by the term “material,”
or contain terms such as “Material
      Adverse Effect”
or
      “Material
      Adverse Effect on The Company,”
in
      which case such representations and warranties (as so written, including the
      term “material”
or
      “Material”)
      shall
      be true and correct in all respects at and as of the Closing Date;

     

    (2) The
      Company shall have performed and complied with all of their covenants hereunder
      in all respects through the Closing;

     

    (3) The
      Company shall have procured all requisite third-party consents;

     

    (4) no
      action, suit, or proceeding shall be pending or threatened before
      (or that could come before) any court or quasi-judicial or administrative agency
      of any federal, state, local, or foreign jurisdiction or before (or that could
      come before) any arbitrator wherein an unfavorable injunction, judgment, order,
      decree, ruling, or charge would (A) prevent consummation of any of the
      transactions contemplated by this Agreement or any Related Document, (B) cause
      any of the transactions contemplated by this Agreement or any Related Document
      to be rescinded following consummation, (C) adversely affect the right of Parent
      to own the Company Stock and to control the Company, (D) adversely affect the
      right of the Company to own its assets and to operate its business (and no
      such
      injunction, judgment, order, decree, ruling, or charge shall be in effect),
      or
      (E) amount to a liability for the Company (including reasonable attorneys’ fees
      and expense) in excess of one hundred thousand dollars ($100,000);

     

    (5) The
      Company shall have delivered to Buyer a certificate to the effect that each
      of
      the conditions specified above is satisfied in all respects;

     

    (6) Parent
      and Buyer shall have received from counsel to the Company an opinion in form
      and
      substance as set forth in Exhibit
      F
      attached
      hereto, addressed to Parent and Buyer and on which Parent and Buyer shall be
      entitled to rely, and dated as of the Closing Date;

     

    (7) Buyer
      shall have obtained, no later than ten (10) days prior to the Closing, a
      commitment for a 1992 ALTA Owner’s Title Insurance Policy or other form of
      policy reasonably acceptable to Buyer for each Owned Real Property (other than
      Owned Real Property located outside the U.S.) issued by a title insurance
      company satisfactory to Buyer (the “Title
      Company”),
      together with a copy of all documents referenced therein (the “Title
      Commitments”); 

     

    (8) at
      the
      Closing, Buyer shall have obtained title insurance policies from the Title
      Company (which may be in the form of a mark-up of a pro forma of the Title
      Commitments) in accordance with the Title Commitments, insuring each of the
      Company’s fee simple title to each Owned Real Property as of the Closing Date
      (including all recorded appurtenant easements, insured as separate legal
      parcels), with gap coverage from the Company through the date of recording,
      subject only to Permitted Encumbrances, in such amount as Buyer determines
      to be
      the value of the Real Property insured thereunder and which shall include the
      endorsements identified herein (the “Title
      Policies”);
      the
      Title Policies shall have the creditor’s rights exception deleted, and shall
      include the following endorsements (to the extent available in the applicable
      jurisdiction, but regardless of whether any additional amount is charged for
      such endorsement), in form and substance reasonably acceptable to Buyer: (i)
      extended coverage endorsement (insuring over the general or standard
      exceptions); (ii) a survey accuracy endorsement (insuring that the Real Property
      described therein is the real property shown on the Survey (as defined below)
      delivered with respect thereto and that such Survey is an accurate survey
      thereof); (iii) non-imputation endorsement (to the effect that title defects
      known to the employees, officers, directors, and stockholders of the Company
      prior to the Closing shall not be deemed to be “facts known to the insured”);
      and (iv) such other endorsements as reasonably requested by Buyer; and Buyer
      shall have paid or committed to pay all fees, costs and expenses with respect
      to
      the Title Commitments and Title Policies prior to Closing;

     

    
      
         

      

      
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    (9) the
      Company shall have obtained and delivered to Buyer a zoning letter issued by
      the
      governmental agency having jurisdiction over zoning matters, stating the zone
      designation of the Real Property, and that such designation is the correct
      designation for the current use of the Real Property and that the Real Property
      otherwise complies with all zoning and similar laws;

     

    (10) the
      Company shall have obtained and delivered to Buyer an estoppel certificate
      with
      respect to each of the Leases, dated no more than 30 days prior to the Closing
      Date, from the other party to such Lease, in form and substance satisfactory
      to
      Buyer;

     

    (11) no
      damage
      or destruction or other change has occurred with respect to any of the Real
      Property or any portion thereof that, individually or in the aggregate, would
      materially impair the use or occupancy of the Real Property or the operation
      of
      the Company’s business as currently conducted thereon;

     

    (12) no
      damage
      or destruction or other change has occurred with respect to any of the personal
      property of the Company or any portion thereof that, individually or in the
      aggregate, would materially impair the use or occupancy of the Real Property
      or
      the operation of the Company’s business as currently conducted
      thereon;

     

    (13) each
      of
      Kerry Bode, Lance Riley, Ty Gragg and Anthony Carfagna shall have entered into
      employment agreements with Buyer substantially in the form and substance of
      Exhibits B, C, D and E of this Agreement, and such agreements shall be in full
      force and effect as of the Closing;

     

    (14) the
      Company shall have delivered to Buyer copies of the articles of incorporation
      of
      the Company certified on or soon before the Closing Date by the CO
      Secretary;

     

    (15) the
      Company shall have delivered to Buyer the certificate of good standing of the
      Company issued on or soon before the Closing Date by the Secretary of State
      (or
      comparable officer) of the jurisdiction of each of the States in which the
      Company is qualified to do business;

    
      
         

      

      
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    (16) the
      Company shall have delivered to Buyer a certificate of the Secretary or an
      Assistant Secretary of the Company, dated the Closing Date, in form and
      substance reasonably satisfactory to Buyer, as to: (i) no amendments to the
      articles of incorporation of the Company since the July 1, 2008; (ii) the
      By-laws of the Company; (iii) the resolutions of the board of directors and
      Stockholders of the Company authorizing the execution, delivery, and performance
      of this Agreement and the transactions contemplated hereby; (iv) incumbency
      and
      signatures of the officers of the Company executing this Agreement or any other
      agreement contemplated by this Agreement, and (v) the required approvals of
      the
      Company’s common Stockholders and preferred Stockholders; and, not more than
      five percent (5%) of each of the outstanding common and the outstanding
      preferred shares of the Company have exercised rights to dissent to the Merger
      under the CBCA; 

     

    (17) Buyer
      shall have received the documents specified in §2(m) of this Agreement;

     

    (18) Buyer
      shall have received a certificate from the Company dated as of the Closing
      Date
      and sworn under penalty of perjury stating that the Company is or has been
      at
      any time during the five (5)-year period ending on the date of certification
      a
“United States real property holding company” within the meaning of Code §
897(c)(2); and

     

    (19) Buyer
      has
      determined, in its sole and reasonable discretion, that the Net Book Value
      of
      the Company as of the Closing Date is within the Net Book Value Range.

     

    Each
      of
      Buyer and Parent may waive any condition specified in this Agreement by
      executing a writing so stating prior to Closing.

     

    (b) Conditions
      to the Company’s Obligation.
      The
      obligation of the Company to consummate the transactions to be performed by
      it
      in connection with the Closing is subject to satisfaction of the following
      conditions:

     

    (1) the
      representations and warranties set forth in §4 above shall be true and correct
      in all material respects at and as of the Closing Date;

     

    (2) Buyer
      and
      Parent shall have performed and complied with all of their respective covenants
      hereunder in all material respects through the Closing;

     

    (3) no
      action, suit, or proceeding shall be pending before any court or quasi-judicial
      or administrative agency of any federal, state, local, or foreign jurisdiction
      or before any arbitrator wherein an unfavorable injunction, judgment, order,
      decree, ruling, or charge would (A) prevent consummation of any of the
      transactions contemplated by this Agreement or (B) cause any of the transactions
      contemplated by this Agreement to be rescinded following consummation (and
      no
      such injunction, judgment, order, decree, ruling, or charge shall be in
      effect);

    
      
         

      

      
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    (4) Parent
      shall have delivered to the Company a certificate to the effect that each of
      the
      conditions specified above is satisfied in all respects;

     

    (5) the
      Company shall have received from counsel to Parent an opinion in form and
      substance as set forth in Exhibit
      G
      attached
      hereto; and

     

    (6) Parent
      shall have delivered to the Company the documents specified in §2(n) of this
      Agreement.

     

    The
      Company may waive any condition specified in this Agreement by executing a
      writing so stating at or prior to the Closing. 

     

    §8. Remedies
      for Breaches of this Agreement

     

    (a) Survival
      of Representations and Warranties.
      Subject
      to §8(h), all of the representations and warranties of the Company and Parent
      contained in this Agreement shall survive the Closing hereunder (even if the
      damaged Party knew or had reason to know of any misrepresentation or breach
      of
      warranty or covenant at the time of Closing) and continue in full force and
      effect until the second (2nd)
      anniversary of the Closing Date; provided, however, that any claims for
      indemnification made prior to the second (2nd)
      anniversary of the Closing Date shall continue until finally resolved provided
      the same become known and recorded in accordance with GAAP during the escrow
      period or are identified as potential indemnifiable liabilities under this
      Agreement or any Related Document during the escrow period and Parent has made
      a
      good faith estimate of the amount of such liability within the escrow period
      and
      the restriction in §8(b) no longer applies (or would no longer apply after
      taking into account such claims).

     

    (b) Tipping
      Basket. Subject
      to the limitations in §2(j), no Buyer Indemnitee or Company Indemnitee shall be
      entitled to indemnification under this §8 unless and until the aggregate amount
      of Adverse Consequences for Buyer Indemnitees and Company Indemnitees,
      respectively, resulting from, arising out of, relating to and the nature of,
      or
      caused by, a breach of a representation, warranty and/or covenant exceed one
      hundred thousand dollars ($100,000) in the aggregate in which case the
      Indemnifying Party shall be liable for all Adverse Consequences Damages relating
      thereto on a dollar for dollar basis beginning with the first dollar of Adverse
      Consequences relating thereto (e.g., if there are $100,001 of Adverse
      Consequences, the indemnitee shall be entitled to $100,001 dollars of
      indemnification).

     

    (c) Indemnification
      Provisions for Buyer Indemnitees’ Benefit.
      In the
      event the Company breaches any of its representations, warranties, and/or
      covenants contained in this Agreement or any Related Documents, and/or under
      the
      provisions in §2(j) of this Agreement, or any of the Company’s representations,
      warranties, and covenants contained in this Agreement, any Related Documents,
      and/or under the provisions in §2(j) of this Agreement are inaccurate or untrue,
      and, provided that Buyer Indemnitee complies with the terms of the Escrow
      Agreement, then Buyer, Parent and the Surviving Corporation and their Affiliates
      and respective officers, directors, shareholders, employees, attorneys,
      accountants and agents (the “Buyer
      Indemnitees”),
      subject to §8(b), shall be entitled to all rights and privileges under the
      Escrow Agreement, and shall be indemnified and held harmless out of the Escrow
      Fund from and against the entirety of any Adverse Consequences suffered by
      Buyer
      Indemnitees resulting from, arising out of, relating to and the nature of,
      or
      caused by, such breach, inaccuracy or untrue statement.

     

    
      
         

      

      
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    (d) Indemnification
      Provisions for the Stockholders’ Benefit.
      In the
      event Parent or Buyer breaches any of its representations, warranties, and/or
      covenants contained this Agreement or any Related Documents, or any of Parent
      or
      Buyer’s representations, warranties, and covenants contained in this Agreement
      or any Related Documents are inaccurate or untrue, and, provided that the
      Company Indemnitee complies with the terms of the Escrow Agreement, then the
      Stockholders and their Affiliates and their respective officers, directors,
      shareholders, employees, trustees, attorneys, accountants and agents (the
“Company
      Indemnitees”),
      subject to §8(b), shall be entitled to all rights and privileges under the
      Escrow Agreement, and the Surviving Corporation shall indemnify the Company
      Indemnitees from and against the entirety of any Adverse Consequences suffered
      by Company Indemnitees resulting from, arising out of, relating to and the
      nature of, or caused by, such breach, inaccuracy or untrue
      statement.
      Notwithstanding anything to the contrary in this Agreement or any Related
      Document, the Surviving Corporation’s aggregate indemnification obligations for
      a new claim under this Agreement shall not exceed the balance of Escrow Funds
      available to indemnify Buyer Indemnitees for new claims against the
      Company.

     

    (e) Limitations
      for Adjustment Items.
      Notwithstanding
      anything contained in this §8, §2(j), or elsewhere in this Agreement to the
      contrary, Buyer Indemnitees shall be entitled to dollar for dollar
      indemnification from the Escrow for each item listed in Schedule §5(o) only to
      the extent the liabilities, write-offs and/or reserves for such item are
      required by applicable law to be increased to equal more than the amount of
      such
      item as set forth on Schedule §5(o) immediately before the adjustment required
      by Schedule §5(o) plus one-half (1/2) of the difference between the amount of
      such item after the adjustment required by Section §5(o) and the amount of such
      item set forth on Schedule §5(o) immediately before such adjustment; provided,
      however, that the foregoing indemnification shall be subject to the Tipping
      Basket limitations on indemnification as provided in §8(b).

     

    (f) Matters
      Involving Third Parties.

     

    (1) If
      any
      third party shall notify any Party (the “Indemnified
      Party“)
      with
      respect to any matter (a “Third-Party
      Claim”)
      which
      may give rise to a claim for indemnification against any other Party (the
“Indemnifying
      Party”)
      under
      this §8, then the Indemnified Party shall promptly notify each Indemnifying
      Party thereof in writing; provided,
      however,
      that no
      delay on the part of the Indemnified Party in notifying any Indemnifying Party
      shall relieve the Indemnifying Party from any obligation hereunder unless (and
      then solely to the extent) the Indemnifying Party is thereby
      prejudiced.

     

    (2) Any
      Indemnifying Party will have the right to defend the Indemnified Party against
      the Third-Party Claim with counsel of its choice satisfactory to the Indemnified
      Party so long as (A) the Indemnifying Party notifies the Indemnified Party
      in
      writing within fifteen (15) days after the Indemnified Party has given notice
      of
      the Third-Party Claim that the Indemnifying Party will indemnify the Indemnified
      Party from and against the entirety of any Adverse Consequences the Indemnified
      Party may suffer resulting from, arising out of, relating to, in the nature
      of,
      or caused by the Third-Party Claim, (B) the Indemnifying Party provides the
      Indemnified Party with evidence acceptable to the Indemnified Party that the
      Indemnifying Party will have the financial resources to defend against the
      Third-Party Claim and fulfill its indemnification obligations hereunder, (C)
      the
      Third-Party Claim involves only money damages and does not seek an injunction
      or
      other equitable relief, (D) settlement of, or an adverse judgment with respect
      to, the third Party Claim is not, in the good faith judgment of the Indemnified
      Party, likely to establish a precedential custom or practice materially adverse
      to the continuing business interests or the reputation of the Indemnified Party,
      and (E) the Indemnifying Party conducts the defense of the Third-Party Claim
      actively and diligently; provided,
      however,
      if the
      Adverse Consequences might exceed the sum of Five Hundred Thousand Dollars
      ($500,000) as reasonably estimated in good faith by the Indemnified Party or,
      in
      addition, in the case where Buyer Indemnitees are the Indemnified Party, the
      balance remaining in the Escrow Fund, whichever is less, then the Indemnified
      Party may, at its option, control the defense of the Third-Party Claim.

    
      
         

      

      
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    (3) So
      long
      as the Indemnifying Party is conducting the defense of the Third-Party Claim
      in
      accordance with §8(f)(2) above, (A) the Indemnified Party may retain separate
      co-counsel at his, her, or its sole cost and expense and participate in the
      defense of the Third-Party Claim, (B) the Indemnified Party will not consent
      to
      the entry of any judgment on or enter into any settlement with respect to the
      Third-Party Claim without the prior written consent of the Indemnifying Party
      (not to be unreasonably withheld), and (C) the Indemnifying Party will not
      consent to the entry of any judgment on or enter into any settlement with
      respect to the Third-Party Claim without the prior written consent of the
      Indemnified Party (not to be unreasonably withheld).

     

    (4) In
      the
      event any of the conditions in this Agreement above is or becomes unsatisfied,
      however, (A) the Indemnified Party may defend against, and consent to the entry
      of any judgment on or enter into any settlement with respect to, the Third-Party
      Claim in any manner the Indemnified Party may deem appropriate (and the
      Indemnified Party need not consult with, or obtain any consent from, any
      Indemnifying Party in connection therewith), (B) the Indemnifying Parties will
      reimburse the Indemnified Party promptly and periodically for the costs of
      defending against the Third-Party Claim (including reasonable attorneys’ fees
      and expenses), and (C) the Indemnifying Parties will remain responsible for
      any
      Adverse Consequences the Indemnified Party may suffer resulting from, arising
      out of, relating to, in the nature of, or caused by the Third-Party Claim to
      the
      fullest extent provided in this §8.

     

    
      
         

      

      
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    (g) Purchase
      Price Adjustment.
      All
      indemnification payments under this Agreement to Buyer Indemnitees shall be
      adjustments to the Merger Consideration and shall be made as a payment to Buyer
      Indemnitees from the Escrow Fund in accordance with the terms of the Escrow
      Agreement.

     

    (h) Other
      Indemnification Provisions.
      The
      indemnification provisions in this Agreement are in addition to, and not in
      derogation of, any statutory, equitable or common law remedy (including without
      limitation any such remedy arising under environmental, health, and safety
      requirements), and/or any remedy for fraud or intentional misrepresentation
      any
      Party may have with respect to any other Party, or the transactions contemplated
      by this Agreement and/or any of the Related Documents, and the limitations
      set
      forth in this Agreement shall not apply thereto. 

     

    §9. Tax Matters.

     

    The
      following provisions shall govern the allocation of responsibility as between
      Buyer and Stockholders for certain Tax matters following the Closing
      Date:

     

    (a) Straddle
      Period.
      In the
      case of any Taxable Period that includes (but does not end on) the Closing
      Date
      (a “Straddle
      Period”),
      the
      amount of any Taxes based on or measured by income or receipts of the Company
      for the Pre-Closing Tax Period shall be determined based on an interim closing
      of the books as of the close of business on the Closing Date (and for such
      purpose, the taxable period of any partnership or other pass-through entity
      in
      which the Company holds a beneficial interest shall be deemed to terminate
      at
      such time) and the amount of other Taxes of the Company for a Straddle Period
      that relates to the Pre-Closing Tax Period shall be deemed to be the amount
      of
      such Tax for the entire Taxable Period multiplied by a fraction the numerator
      of
      which is the number of days in the Taxable Period ending on the Closing Date
      and
      the denominator of which is the number of days in such Straddle
      Period.

     

    (b) Responsibility
      for Filing Tax Returns.
      The
      Company shall prepare or cause to be prepared and file or cause to be filed
      all
      Tax Returns for the Company that are for periods ending on or after the Closing
      Date and are to be filed after the Closing Date. The reasonable estimated
      expenses associated with the preparation of the foregoing Tax Returns shall
      be
      accrued as a liability for purposes of calculating Net Book Value.

     

    (c) Cooperation
      on Tax Matters.

     

    (1) Each
      Party shall cooperate using its commercially reasonable best efforts, as and
      to
      the extent reasonably requested by the other Party, in connection with the
      filing of Tax Returns pursuant to §9(b) and any audit, litigation or other
      proceeding with respect to Taxes. Such cooperation shall include the retention
      and (upon the other Party’s request) the provision of records and information
      that are reasonably relevant to any such audit, litigation or other proceeding
      and making employees available on a mutually convenient basis to provide
      additional information and explanation of any material provided hereunder.
      The
      Company agrees (A) to retain all books and records with respect to Tax matters
      pertinent to the Company relating to any taxable period beginning before the
      Closing Date until the expiration of the statute of limitations (and, to the
      extent notified by Buyer, any extensions thereof) of the respective taxable
      periods, and to abide by all record retention agreements entered into with
      any
      taxing authority, and (B) to give the other Parties reasonable written notice
      prior to transferring, destroying or discarding any such books and records
      and,
      if the other Party so requests, the Company shall allow the other Party to
      take
      possession of such books and records.

    
      
         

      

      
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    Execution
      Version

     

    (2) The
      Company further agrees, upon request from Buyer, to use its commercially
      reasonable best efforts to obtain any certificate or other document from any
      governmental authority or any other Person as may be necessary to mitigate,
      reduce or eliminate any Tax that could be imposed (including, but not limited
      to, with respect to the transactions contemplated hereby).

     

    (3) Buyer
      and
      the Company further agree, upon request, to provide the other Party with all
      information that either Party may be required to report pursuant to Code §6043,
      or Code §6043A, or Treasury Regulations promulgated thereunder.

     

    (d) Certain
      Taxes and Fees.
      All
      transfer, documentary, sales, use, stamp, registration and other such Taxes,
      and
      all conveyance fees, recording charges and other fees and charges (including
      any
      penalties and interest) incurred in connection with consummation of the
      transactions contemplated by this Agreement shall be paid by the Company at
      or
      prior to Closing.

     

    §10. Termination

     

    (a) Termination
      of Agreement.
      Certain
      of the Parties may terminate this Agreement as provided below:

     

    (1) Buyer
      and
      the Company may terminate this Agreement by mutual written consent at any time
      prior to the Closing;

     

    (2) Buyer
      may
      terminate this Agreement by giving written notice to the Company and the
      Stockholders’ Agent (A) at any time prior to the Closing in the event the
      Company has breached any material representation, warranty, or covenant
      contained in this Agreement, Buyer has notified the Company of the breach,
      and
      the breach has continued without cure for a period of thirty (30) days after
      the
      notice of breach, or (B) if the Closing shall not have occurred on or before
      August 29, 2008, by reason of the failure of any condition precedent in this
      Agreement (unless the failure results primarily from Buyer itself breaching
      any
      representation, warranty, or covenant contained in this Agreement).

     

    (3) The
      Company may terminate this Agreement by giving written notice to Buyer (A)
      at
      any time prior to the Closing in the event Buyer has breached any material
      representation, warranty, or covenant contained in this Agreement, the Company
      has notified Buyer of the breach, and the breach has continued without cure
      for
      a period of thirty (30) days after the notice of breach or (B) if the Closing
      shall not have occurred on or before August 29, 2008, by reason of the failure
      of any condition precedent under this Agreement hereof (unless the failure
      results primarily from the Company breaching any representation, warranty,
      or
      covenant contained in this Agreement).

    
      
         

      

      
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    Execution
      Version

     

    (4) The
      Company or Buyer may terminate this Agreement if a triggering event occurs
      under
§10(c) of this Agreement upon the condition that the Company pays the fee and
      expenses of Buyer as provided in §10(c).

     

    (b) Effect
      of Termination.
      Subject
      to §10(c), if any Party terminates this Agreement pursuant to §10(a) above, all
      rights and obligations of the Parties hereunder shall terminate without any
      liability of any Party to any other Party (except for any liability of any
      Party
      then in breach). Notwithstanding the termination of this Agreement, §10(c)(4)
      and §11(m) of this Agreement shall continue in full force and effect for the
      period of one (1) year immediately following the date of
      termination.

     

    (c) Fiduciary
      Duties.

     

    (1) Notwithstanding
      anything to the contrary contained in this Agreement, prior to the closing
      or
      the termination of this Agreement in accordance with its terms, the Company
      may,
      to the extent the Board of Directors of the Company determines, in good faith,
      after consultation with outside legal counsel, that the Board’s fiduciary duties
      require it to do so, participate in discussions or negotiations with, furnish
      non-public information of the Company, (but not Buyer, Parent or any of their
      respective affiliates), and afford access to the properties, books or records
      of
      the Company to any Person after such Person has delivered to the Company in
      writing, an unsolicited bona fide proposal with respect to the Company (which
      has not been withdrawn) which the Board of Directors of the Company in its
      good
      faith judgment determines, after reasonable inquiry and consultation with its
      financial advisor (i) would be reasonably likely to result in a transaction
      more
      favorable than that contemplated by this Agreement to the Stockholders of the
      Company (which judgment must be reasonable), and (ii) that the Person making
      such proposal is financially capable of consummating such proposal or that
      the
      financing necessary to consummate such proposal, to the extent required, is
      then
      committed or is capable of being obtained by such Person (a “Superior
      Proposal”). 

     

    (2) In
      the
      event the Company receives a Superior Proposal, nothing contained in this
      Agreement will prevent the Board of Directors of the Company from recommending
      such Superior Proposal to the Stockholders of the Company, if the Board
      determines, in good faith, after consultation with outside legal counsel, that
      such action is required by its fiduciary duties; in such case, the Board of
      Directors of the Company may withdraw, modify or refrain from making its
      recommendations set forth in the relevant sections in this Agreement; provided,
      however, that the Company shall (A) provide Buyer notice of any meeting of
      the
      Board of Directors of the Company at which such Board of Directors is reasonably
      expected to consider a Superior Proposal at the same time that notice thereof
      is
      given to the Board of Directors, (B) not recommend to its Stockholders a
      Superior Proposal for a period of not less than the greater of two (2) full
      business days and forty-eight (48) hours after Buyer’s receipt of a copy of such
      Superior Proposal and the identity of the third party, and (C) not enter into
      a
      definitive agreement relating to such Superior Proposal unless Buyer fails
      to
      match the terms of the Superior Proposal within the greater of two full business
      days and forty-eight (48) hours after Buyer’s receipt of a copy of such Superior
      Proposal and the identity of the third party; and provided, further, that unless
      this Agreement is terminated nothing contained in this Agreement shall limit
      the
      Company’s obligation to hold and convene a special meeting of the Stockholders
      (regardless of whether the recommendation of the Board of Directors of the
      Company shall have been withdrawn, modified or not yet made) to obtain the
      approval thereof for the transactions contemplated by this Agreement and the
      Related Documents or to provide the Stockholders with material information
      relating to such meeting.

    
      
         

      

      
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    Execution
      Version

     

    (3) Notwithstanding
      anything to the contrary herein, in the event of a Superior Proposal, the
      Company shall not provide any non-public information of the Company to a third
      party unless: (x) the Company provides such non-public information pursuant
      to a
      nondisclosure agreement with terms regarding the protection of oral or written
      confidential information at least as restrictive as such terms in the
      confidentiality agreement heretofore entered into with Parent; and (y) such
      non-public information has been previously delivered or made available to
      Buyer.

     

    (4) In
      the
      event this Agreement is terminated because (i) the Company receives and accepts
      a Superior Proposal, or (ii) after the receipt of a Superior Proposal, the
      Stockholders do not approve this transaction, then, the Company shall pay in
      immediately available funds to Buyer, no later than three (3) business days
      after the date of the triggering event, a fee equal to Two Hundred Fifty
      Thousand Dollars ($250,000), as liquidated damages and not as a penalty, plus
      Buyer’s out-of-pocket expenses, including, without limitation, reasonable
      attorneys’ fees, incurred in connection with the proposed
      transaction. 

     

    §11. Miscellaneous

     

    (a) Press
      Releases and Public Announcements.
      No Party
      shall issue any press release or make any public announcement relating to the
      subject matter of this Agreement prior to the Closing without the prior written
      approval of Buyer and the Company; provided, however, that Parent may make
      any
      public disclosure it believes in good faith is required by applicable law or
      any
      listing or trading agreement concerning Parent’s publicly traded securities (in
      which case the disclosing Parent will use its reasonable best efforts to inform
      the other Parties prior to making the disclosure).

     

    (b) No
      Third-Party Beneficiaries.
      This
      Agreement shall not confer any rights or remedies upon any Person other than
      the
      Parties and their respective successors and permitted assigns.

     

    (c) Entire
      Agreement.
      This
      Agreement (including the documents referred to herein), the nondisclosure
      agreements effective March 8, 2007, constitute the entire agreement among the
      Parties and supersede all prior understandings, agreements, or representations
      by or among the Parties, written or oral, to the extent they relate in any
      way
      to the subject matter hereof. In the event of any conflict between the
      provisions of this Agreement and the provisions of the nondisclosure agreements,
      this Agreement shall prevail.

     

    (d) Succession
      and Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties named
      herein and their respective successors and permitted assigns. No Party may
      assign or delegate either this Agreement or any of its rights, interests, or
      obligations hereunder without the prior written approval of all other Parties;
      provided, however, that Buyer may (i) assign any or all of its rights and
      interests hereunder to one or more of its Affiliates and (ii) designate one
      or
      more of its Affiliates to perform its obligations hereunder (in any or all
      of
      which cases Buyer nonetheless shall remain responsible for the performance
      of
      all of its obligations hereunder).

     

    
      
         

      

      
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    Execution
      Version

     

    (e) Counterparts.
      This
      Agreement may be executed in one or more counterparts (including by means of
      facsimile), each of which shall be deemed an original but all of which together
      shall constitute one and the same instrument.

     

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

     

    (g) Notices.
      All
      notices, requests, demands, claims, and other communications hereunder shall
      be
      in writing. Any notice, request, demand, claim, or other communication hereunder
      shall be deemed duly given (i) when delivered personally to the recipient,
      (ii)
      one (1) business day after being sent to the recipient by reputable overnight
      courier service (charges prepaid), (iii) one (1) business day after being sent
      to the recipient by facsimile transmission if
      completely sent and received, as evidenced by a transmission or activity report
      of the sender’s facsimile machine,
      or (iv)
      four (4) business days after being mailed to the recipient by certified or
      registered mail, return receipt requested and postage prepaid, and addressed
      to
      the intended recipient as set forth below:

    
      	
               

              If
                to Stockholders’ Agent:

               

              Owen
                Agency, LLC

              438
                S. Reed Court

              Lakewood,
                Colorado 80226

              Attn:
                Taylor Owen

              Facsimile
                303-948-3642

            	
               

              Copy
                to:

               

              Jones
                & Keller, P.C.

              1625
                Broadway

              Denver,
                CO 80202

              Facsimile:
                303-573-0769

              Attn:
                Reid A. Godbolt, Esq.

            

    

     

    
      
         

      

      
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              If
                to Parent:

               

              Anaren,
                Inc.

              P.O.
                Box 178

              East
                Syracuse, NY 13057

              Facsimile:
                315-432-8328 

              Attn:
                David M. Ferrara, General Counsel

            	
              Copy
                to:

               

              Bond,
                Schoeneck & King, PLLC

              One
                Lincoln Center

              Syracuse,
                New York 13202

              Facsimile:
                315-218-8000

              Attn:
                Courtney Wellar, Esq.

            
	
               

              If
                to Buyer:

               

              Anaren
                Acquisition, Inc.

              c/o
                Anaren, Inc.

              P.O.
                Box 178

              East
                Syracuse, NY 13057

              Facsimile:
                315-432-8328

              Attn:
                David M. Ferrara, General Counsel

            	
               

              Copy
                to:

               

              Bond,
                Schoeneck & King, PLLC

              One
                Lincoln Center

              Syracuse,
                New York 13202

              Facsimile:
                315-218-8000

              Attn:
                Courtney Wellar, Esq.

            
	
               

              If
                to Unicircuit, Inc.:

               

              Unicircuit,
                Inc.

              8192
                Southpark Lane

              Littleton,
                CO 80120

              Facsimile:
                303-797-9277

              Attn:
                Mr. Kerry Bode, President

            	
               

              Copy
                to:

               

              Jones
                & Keller, P.C.

              1625
                Broadway

              Denver,
                CO 80202

              Facsimile:
                303-573-0769

              Attn:
                Reid A. Godbolt, Esq.

            

    

    

    (h) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the domestic
      laws of the State of Delaware without giving effect to any choice or conflict
      of
      law provision or rule (whether of the State of Delaware or any other
      jurisdiction) that would cause the application of the laws of any jurisdiction
      other than the State of Delaware.

     

    (i) Specific
      Performance.
      The
      Parties acknowledge and agree that the business of the Company is unique and
      recognize and affirm that in the event a Party breaches this Agreement, money
      damages would be inadequate and the other Parties would have no adequate remedy
      at law, so that each of the non-breaching Parties shall have the right, in
      addition to any other rights and remedies existing in its favor, to enforce
      their respective rights and the breaching Parties’ obligations hereunder not
      only by action for damages but also by action for specific performance,
      injunctive, and/or other equitable relief.

     

    (j) Submission
      to Jurisdiction.
      Each of
      the Parties submits to the jurisdiction of any state or federal court sitting
      in
      Delaware in any action or proceeding arising out of or relating to this
      Agreement and agrees that all claims in respect of the action or proceeding
      may
      be heard and determined in any such court. Each Party also agrees not to bring
      any action or proceeding arising out of or relating to this Agreement in any
      other court. Each of the Parties waives any defense of inconvenient forum to
      the
      maintenance of any action or proceeding so brought and waives any bond, surety,
      or other security that might be required of any other Party with respect
      thereto. Each Party agrees that a final judgment in any action or proceeding
      so
      brought shall be conclusive and may be enforced by suit on the judgment or
      in
      any other manner provided by law or at equity.

     

    
      
         

      

      
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    (k) Amendments
      and Waivers.
      No
      amendment of any provision of this Agreement shall be valid unless the same
      shall be in writing and signed by the Parties. No waiver by any Party of any
      provision of this Agreement or any default, misrepresentation, or breach of
      warranty or covenant hereunder, whether intentional or not, shall be valid
      unless the same shall be in writing and signed by the Party making such waiver
      nor shall such waiver be deemed to extend to any prior or subsequent default,
      misrepresentation, or breach of warranty or covenant hereunder or affect in
      any
      way any rights arising by virtue of any prior or subsequent such default,
      misrepresentation, or breach of warranty or covenant.

     

    (l) Severability.
      Any term
      or provision of this Agreement that is invalid or unenforceable in any situation
      in any jurisdiction shall not affect the validity or enforceability of the
      remaining terms and provisions hereof or the validity or enforceability of
      the
      offending term or provision in any other situation or in any other
      jurisdiction.

     

    (m) Expenses.
      Except
      as provided in this Agreement, each Party will pay its own expenses in
      connection with the transactions contemplated by this Agreement and the Related
      Documents.

     

    (n) Construction.
      The
      Parties have participated jointly in the negotiation and drafting of this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the Parties
      and no presumption or burden of proof shall arise favoring or disfavoring any
      Party by virtue of the authorship of any of the provisions of this Agreement.
      Any reference to any federal, state, local, or foreign statute or law shall
      be
      deemed also to refer to all rules and regulations promulgated thereunder, unless
      the context requires otherwise. The word “including” shall mean including
      without limitation. The Parties intend that each representation, warranty,
      and
      covenant contained herein shall have independent significance. If any Party
      has
      breached any representation, warranty, or covenant contained herein in any
      respect, the fact that there exists another representation, warranty, or
      covenant relating to the same subject matter (regardless of the relative levels
      of specificity) that the Party has not breached shall not detract from or
      mitigate the fact that the Party is in breach of the first representation,
      warranty, or covenant.

     

    (o) Incorporation
      of Exhibits, Annexes, and Schedules.
      The
      exhibits, certificates, annexes, and schedules identified in this Agreement
      are
      incorporated herein by reference and made a part hereof.

     

    (p) Time
      of the Essence.
      The
      Parties agree that time is of the essence as to the Closing and consummating
      the
      Merger on and no later than August 29, 2008.

     

     

    [THE
      REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK.]

    
      
         

      

      
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      Version

    

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

     

    

      
        	 	
                ANAREN,
                  INC.

                 

              
	 	 	 	 
	 	
                By:

              	
                /s/
                  Lawrence A. Sala

              	 
	 	 	 	 
	 	
                Name:

              	
                Lawrence
                  A. Sala

              	 
	 	 	 	 
	 	
                Title: 

              	
                President
                  and CEO

              	 
	 	 	 	 
	 	
                 

                ANAREN
                  ACQUISITION, INC.

                 

              
	 	 	 	 
	 	
                By:

              	
                /s/
                  Lawrence A. Sala

              	 
	 	 	 	 
	 	
                Name:

              	
                Lawrence
                  A. Sala

              	 
	 	 	 	 
	 	
                Title: 

              	
                President

              	 
	 	 	 	 
	 	
                 

                OWEN
                  AGENCY, LLC

                 

              
	 	 	 	 
	 	
                By:

              	
                /s/
                  Taylor Owen

              	 
	 	 	 	 
	 	
                Name:

              	
                Taylor
                  Owen

              	 
	 	 	 	 
	 	
                Title: 

              	
                Manager

              	 
	 	 	 	 
	 	
                 

                UNICIRCUIT,
                  INC.

                 

              
	 	 	 	 
	 	
                By:

              	
                /s/
                  Kerry L. Bode

              	 
	 	 	 	 
	 	
                Name:

              	
                Kerry
                  L. Bode

              	 
	 	 	 	 
	 	
                Title: 

              	
                President
                  and CEO

              	 

      

    

    
      
         

      

      
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    SCHEDULE
      §2(e)

    DIRECTORS
      AND OFFICERS OF THE SURVIVING CORPORATION

    

    Directors:

    

    Lawrence
      Sala

    

    George
      Blanton

    

    Kerry
      Bode

    

    David
      Ferrara

    

    David
      Whitaker

     

    

    Officers:

    

    
      	Lawrence
              Sala	
              President

            

      	 	 

      	David Ferrara	Secretary

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    Execution
      Version

    SCHEDULE
      §5(o)

    ADJUSTMENTS

    

    Before
      the Closing, the Company shall make the following adjustments on it books and
      records for both financial accounting purposes and for tax
      purposes:

     

    
      	
              1.

            	
              The
                reserve for the research and development tax credits shall be increased
                from $50,000 to a total reserve of $400,000, the charge upon adoption
                of
                FIN 48 is charged to equity. 

            

    

     

    
      	
              2.

            	
              The
                tax payable shall be increased from $20,000 to a total reserve of
                $80,000.
                

            

    

     

    
      	
              3.

            	
              An
                accounts receivable reserve shall be created in a total amount of
                $60,000.
                

            

    

     

    
      	
              4.

            	
              The
                Company shall increase its inventory excess and obsolete reserve
                by
                $218,000. 

            

    

     

    
      	
              5.

            	
              For
                Net Book Value purposes, the reserves shall be as follows for the
                above
                numbered items, respectively: 1) $225,000; 2) $50,000; 3) $30,000;
                and 4)
                $109,000.

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