Document:

Exhibit
      10(x)(iv)

    

    [*]
      Confidential Treatment Request. Confidential portions of this agreement have
      been omitted and filed separately with the Securities and Exchange
      Commission.

    ASSET
      PURCHASE AGREEMENT

    between

    AMERICAN
      MEDICONNECT, INC.

    and
      

    PHONE
      SCREEN, INC.

    as
      Sellers,

    and

    JANET
      LIFSHITZ

    as
      Stockholder

    and

    JOSEPH
      SAMEH

    as
      a
      director and an officer of the Sellers

    and

    AMERICAN
      MEDICONNECT ACQUISITION CORP.

    as
      Buyer

    and
      

    AMERICAN
      MEDICAL ALERT CORP.

    as
      Guarantor

    _______________________

    December
      22, 2006

    ______________________

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
                TABLE
                OF CONTENTS

            
	 	 	
              Page

            
	 	 	 
	
              SECTION
                1.

            	
               SALE
                AND PURCHASE OF ASSETS

            	
              1

            
	
               1.1

            	
               Sale
                and Purchase

            	
              1

            
	
               1.2

            	
               No
                Assumption of Liabilities

            	
              3

            
	
               1.3

            	
               Purchase
                Price

            	
              4

            
	
               1.4

            	
               Sellers’
                and Principals’ Closing Deliveries

            	
              5

            
	
               1.5

            	
               Adjustments
                for Payables

            	
              7

            
	
               1.6

            	
               Adjustment
                for Receivables

            	
              7

            
	
               1.7

            	
               Contingent
                Additional Good Will Payment

            	
              7

            
	
              SECTION
                2.

            	
               REPRESENTATIONS
                AND WARRANTIES OF THE SELLERS AND

            	 
	
               

            	
               THE
                PRINCIPALS

            	
              10

            
	
               2.1

            	
               Organization

            	
              10

            
	
               2.2

            	
               Title
                to Purchased Assets; Ownership of Stock or Membership
                Interests

            	
              10

            
	
               2.3

            	
               Authorization;
                Validity of Agreement, Etc

            	
              11

            
	
               2.4

            	
               Consents
                and Approvals; No Violation

            	
              11

            
	
               2.5

            	
               Condition
                of Purchased Assets

            	
              12

            
	
               2.6

            	
               Receivables

            	
              12

            
	
               2.7

            	
               Taxes

            	
              12

            
	
               2.8

            	
               Real
                Property

            	
              14

            
	
               2.9

            	
               Intellectual
                Property

            	
              15

            
	
               2.10

            	
               Material
                Contracts

            	
              15

            
	
               2.11

            	
               Customers,
                Suppliers and Distributors

            	
              16

            
	
               2.12

            	
               Litigation;
                Compliance with Laws; Licenses and Permits

            	
              16

            
	
               2.13

            	
               Product
                or Service Claims

            	
              17

            
	
               2.14

            	
               No
                Brokers

            	
              17

            
	
               2.15

            	
               Assets
                Utilized in the Business

            	
              17

            
	
               2.16

            	
               Related
                Party Transactions

            	
              17

            
	
               2.17

            	
               Insurance

            	
              17

            
	
               2.18

            	
               No
                Misstatements or Omissions

            	
              18

            
	
               2.19

            	
               Labor
                Matters and Employment Matters

            	
              18

            
	
               2.20

            	
               Environmental
                Matters

            	
              20

            

    

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

     

    
      	
              TABLE
                OF CONTENTS

            
	
              (continued)

            
	
               

            	 	
              Page

            
	 	 	 
	
               2.21

            	
               No
                Material Adverse Change

            	
              22

            
	
               2.22

            	
               No
                Undisclosed Liabilities

            	
              22

            
	
               2.23

            	
               Solvency

            	
              22

            
	
               2.24

            	
               Employee
                Benefits

            	
              22

            
	
               2.25

            	
               Investment
                Representations

            	
              25

            
	
              SECTION
                3.

            	
               REPRESENTATIONS
                AND WARRANTIES OF BUYER

            	
              26

            
	
               3.1

            	
               Organization

            	
              26

            
	
               3.2

            	
               Authorization;
                Validity of Agreement

            	
              26

            
	
               3.3

            	
               Consents
                and Approvals; No Violation

            	
              26

            
	
              SECTION
                4.

            	
               COVENANTS
                OF THE PARTIES

            	
              26

            
	
               4.1

            	
               Employee
                Matters

            	
              26

            
	
               4.2

            	
               Non-disclosure
                of Confidential Information

            	
              30

            
	
               4.3

            	
               Non-solicitation
                of Employees

            	
              30

            
	
               4.4

            	
               Non-Competition

            	
              30

            
	
               4.5

            	
               Public
                Statements

            	
              31

            
	
               4.6

            	
               Use
                of Name

            	
              31

            
	
               4.7

            	
               Purchase
                Price Allocation

            	
              31

            
	
               4.8

            	
               Other
                Actions

            	
              32

            
	
               4.9

            	
               Payment
                of Payables

            	
              32

            
	
               4.10

            	
               Financial
                Statements

            	
              32

            
	
               4.11

            	
               Discharge
                of Liabilities; Sales Taxes

            	
              32

            
	
               4.12

            	
               Assigned
                Contracts

            	
              32

            
	
              SECTION
                5.

            	
               SURVIVAL
                OF REPRESENTATIONS AND WARRANTIES

            	
              33

            
	
               5.1

            	
               Survival
                of Representations and Warranties of the Sellers and the

            	 
	
               

            	
               Principals

            	
              33

            
	
               5.2

            	
               Survival
                of Representations and Warranties of Buyer

            	
              33

            
	
              SECTION
                6.

            	
               INDEMNIFICATION

            	
              33

            
	
               6.1

            	
               Indemnification
                by the Sellers and the Principals

            	
              33

            
	
               6.2

            	
               Indemnification
                by Buyer

            	
              34

            
	
               6.3

            	
               Indemnification
                Procedures; Limitations on Indemnification

            	
              34

            
	
               

            	
               

            	 

    

    

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    
 

    
      	
               TABLE
                OF CONTENTS

            
	
                (continued)

            
	 	 	
              Page

            
	 	 	 
	
               6.4

            	
               Right
                to Set-Off

            	
              35

            
	
              SECTION
                7.

            	
               MISCELLANEOUS

            	
              36

            
	
               7.1

            	
               Transaction
                Fees and Expenses

            	
              36

            
	
               7.2

            	
               Notices

            	
              36

            
	
               7.3

            	
               Amendment

            	
              37

            
	
               7.4

            	
               Waiver

            	
              37

            
	
               7.5

            	
               Governing
                Law

            	
              37

            
	
               7.6

            	
               Jurisdiction

            	
              37

            
	
               7.7

            	
               Remedies

            	
              38

            
	
               7.8

            	
               Severability

            	
              38

            
	
               7.9

            	
               Further
                Assurances

            	
              38

            
	
               7.10

            	
               Assignment

            	
              38

            
	
               7.11

            	
               No
                Third Party Beneficiaries

            	
              38

            
	
               7.12

            	
               Entire
                Agreement

            	
              38

            
	
               7.13

            	
               Headings

            	
              39

            
	
               7.14

            	
               Counterparts

            	
              39

            

    

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

    
    

    List
      of Exhibits

     

    
      	 	 	
              Page

            
	 	 	 
	
              Exhibit
                A

            	
               Sellers’
                Secretary’s Certificates

            	 
	
              Exhibit
                B

            	
               Bill
                of Sale and Assignment Agreement

            	 
	
              Exhibit
                C

            	
               Legal
                Opinion of Counsel to Sellers and Principals

            	 
	
              Exhibit
                D

            	
               Management
                Employment Agreements

            	 
	
              Exhibit
                E

            	
               Wire
                Transfer Instructions

            	 
	
              Exhibit
                F

            	
               Form
                of Lease

            	 

    

    

     

    
      
        
        

      

      
        -iv-

        
          

        

      

      
        
        

    

    ASSET
      PURCHASE AGREEMENT

     

    ASSET
      PURCHASE AGREEMENT, dated December 22, 2006 (together with all Schedules hereto,
      this "Agreement"),
      among
      American MediConnect Acquisition Corp., a New York corporation, with offices
      at
      3265 Lawson Boulevard, Oceanside, New York 11572 ("Buyer"),
      and
      American Medical Alert Corp., a New York corporation with offices at 3265 Lawson
      Boulevard, Oceanside, New York, 11572, as guarantor of Buyer's obligations
      hereunder, on the one hand, and American MediConnect, Inc. (“MediConnect”) and
      Phone Screen, Inc. (“Phone Screen”, and together with MediConnect, the
“Sellers”) each of which is an Illinois corporation having offices at 3232 North
      Elston Avenue, Chicago, IL 60618, and Janet Lifshitz, an individual and the
      sole
      stockholder of each of the Sellers, residing at 2722 Old Glenview Road,
      Wilmette, IL 60091 (the "Stockholder"
      or
      "Principal"),
      and
      Joseph Sameh, an individual and a director and officer of each of the Sellers,
      residing at 2722 Old Glenview Road, Wilmette, IL 60091 (the "Officer"
      or a
      "Principal",
      and
      together with the Stockholder, the "Principals"),
      on
      the other hand.

     

    RECITALS

     

    A. MediConnect
      is in the business of providing telephone answering services, message services,
      faxing services, paging services and other ancillary office services
      (collectively, the "TAS
      Business").

     

    B. Phone
      Screen is in the business of providing clinical trial support services (the
      "Phone Screen Business", and together with the TAS Business, the
      "Business")

     

    C. Buyer
      desires to purchase from each of the Sellers, and each of Sellers desires to
      sell to Buyer, certain of each such Sellers’ assets and properties relating to
      the Business, on the terms and subject to the conditions set forth
      herein.

     

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

     

    

    AGREEMENT

     

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

     

    Section
      1. Sale
      and
      Purchase of Assets.

     

    1.1 Sale
      and Purchase.
      Upon
      the terms and subject to the conditions contained in this Agreement, each of
      the
      Sellers, as of the date hereof (the “Closing
      Date”),
      hereby sells, assigns, transfers and delivers to Buyer, and Buyer, as of the
      Closing Date, purchases and accepts from each of the Sellers, all of the assets
      and rights of every nature, kind and description, tangible and intangible,
      wherever located, that are owned, used or held for use by each such Seller
      in or
      for each Seller's Business, as the same exists on the Closing Date
      (collectively, the "Purchased
      Assets"),
      free
      and clear of any and all liens, charges, claims, pledges, security interests
      or
      other encumbrances of any kind whatsoever ("Liens"),
      other
      than (i) cash, except for cash relating to Accounts Receivable belonging to
      Buyer as set forth in Section 1.6, (ii) all assets and rights in connection
      with
      the Employee Plans (as defined in Section 2.24 of this Agreement), except for
      those listed in Section 4.1 of the Disclosure Schedule, and (iii) all assets
      listed in Section 1.1 of the Disclosure Schedule hereto (collectively, the
      "Excluded
      Assets").
      The
      Purchased Assets shall include, without limitation, the following, in each
      case,
      as used or held for use by each Seller in or for each Seller's Business:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

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

     

    (b) expenses
      prepaid by each of the Sellers; 

     

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

     

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

     

    (e) machinery,
      computers, file servers, networking hardware, software licensing and other
      data
      processing hardware (and all software related thereto or used therewith) and
      other tangible personal property of similar nature, including but not limited
      to
      all items set forth on each of Sellers’ fixed asset ledger attached to this
      Agreement on Section 2.5 of the Disclosure Schedule, the Amtelco telephony
      equipment and all telephony hardware and peripherals, including, but not limited
      to, telephony chassis, expansion cards, monitors, spare equipment, operator
      audio boxes, amplifiers and headsets;

     

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

     

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

     

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (i) real
      property interests described in Section 2.8 of the Disclosure Schedule to this
      Agreement together with all licenses, leases, rights, privileges and
      appurtenances thereto including, without limitation, all leases, agreements
      and
      other rights to use, occupy or possess, or otherwise with respect to, real
      property or machinery, equipment, vehicles, and other tangible personal property
      of similar nature to which each of the Sellers is a party, and all rights
      arising under or pursuant to such leases, agreements and rights;

     

    (j) all
      rights under contracts, agreements, options, commitments, understandings,
      licenses, leases, permits and instruments relating to the Business including,
      without limitation, customer and supplier contracts, sales representative and
      distributor contracts and commission contracts with respect thereto, all as
      listed (the "Assigned
      Contracts")
      on
      Schedule 1.1(j) of the Disclosure Schedule, but no Liabilities (as defined
      below) associated with any of the Assigned Contracts, except as set forth in
      Section 1.2 below;

     

    (k) all
      of
      the Sellers' rights, title and interest in and to the
      names
“MediConnect" and "Phone Screen" and all variations thereof and all similar
      names and the goodwill associated therewith and with the Purchased Assets,
      together with all trademarks, service marks and trade names each of the of
      Sellers related to the Business, if any;

     

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

     

    (m) rights
      to
      insurance and condemnation proceeds relating to any damage, destruction, taking
      or other similar impairment of any of the Purchased Assets and payable directly
      to either of the Sellers.

     

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

     

    1.3 Purchase
      Price.
      The
      aggregate purchase price for the Purchased Assets is Two Million Twenty Eight
      Thousand Eight Hundred Thirty and 00/100 ($2,028,830.00) Dollars (the
      "Purchase
      Price").
      The
      Purchase Price shall be payable as set forth below:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (a) Nine
      Hundred Ninety Three Thousand Seven Hundred Thirty Nine and 50/100 ($993,739.50)
      Dollars, payable to MediConnect by wire transfer on the Closing Date (the
      "MediConnect
      Closing Cash Purchase Price"); 

     

    (b) Five
      Hundred Thousand ($500,000.00) Dollars, payable to Phone Screen by wire transfer
      on the Closing Date (the “Phone
      Screen Closing Cash Purchase Price”);

     

    (c) Thirty
      Five Thousand Nine Hundred Sixty Seven (35,967) shares of American Medical
      Alert
      Corp. ("AMAC"), the Buyer's indirect parent, common stock issued to MediConnect
      (the "AMAC
      Shares");
      and

     

    (d) and
      Three
      Hundred Five Thousand Seven Sixty Six and 00/100 ($305,776.00) Dollars, plus
      interest accrued thereon at a rate of six (6%) percent per annum, payable to
      MediConnect upon the twelve month anniversary of the Closing Date; provided,
      however,
      that to
      the extent any such amounts are not paid because of a properly asserted claim
      pursuant to Section 6.4 hereof, such amounts shall not be deemed to be an amount
      payable under this Section 1.3(d); 

     

    (e) As
      additional consideration, the Buyer shall pay each Seller the amounts set forth
      in Section 1.7(a)-(c) hereof (the "Contingent
      Additional Good Will Payment"),
      and
      the amounts set forth in Section 1.7(f) hereof (the "Phone
      Screen Additional Good Will Payment"),
      in
      each case to the extent so payable.

     

    1.4 Sellers’
      and Principals’ Closing Deliveries.
      (a) On
      or
      prior to the Closing Date, each of the Sellers and the Principals, will have
      delivered to Buyer each of the following documents (collectively, the
      "Seller's
      Closing Documents"):

     

    (i)
      Certificate
      of Secretary.
      A
      certificate of the Secretary of each of the Sellers in the form of Exhibit
      A,
      setting forth a copy of the resolutions adopted by its board of directors and
      the Stockholder in her respective capacity as a stockholder of each of the
      Sellers, approving the execution and delivery of this Agreement, ratifying
      all
      past corporate action, and the other documents and instruments contemplated
      hereby to which it is a party (this Agreement and all other documents and
      instruments to which Buyer, the Sellers or the Principals is a party in
      connection herewith being sometimes collectively referred to herein as the
      "Purchase
      Documents")
      and
      the consummation of the transactions contemplated hereby; 

     

    (ii)
      Instruments
      of Transfer.
      Two
      separate Bills of Sales and Assignment Agreements, in the form of Exhibit
      B
      attached
      hereto (the "Bill
      of Sale"),
      duly
      executed by each of the Sellers, respectively, that, among other things,
      conveys, transfers and sells to Buyer all right, title and interest of each
      of
      the Sellers in and to the Purchased Assets owned by each of the Sellers,
      respectively.

     

    (iii)
      Legal
      Opinion of Counsel to Sellers and Principals.
      An
      opinion, in the form of Exhibit
      C
      attached
      hereto, from Stone, Pogrund & Korey, counsel to Sellers and the
      Principals.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (iv)
      Wire
      Transfer Instructions.
      Wire
      transfer instructions for the payment of each of the MediConnect and the Phone
      Screen Closing Cash Purchase Price, respectively, in the forms attached hereto
      as Exhibit
      E.

     

    (v)
      Schedule
      of Receivables.
      A
      schedule of all receivables due to each of the Sellers as of the close of
      business on the Closing Date, including Sellers' standard aging report for
      each
      account.

     

    (vi)
      Customer
      List.
      A
      complete and unrestricted list of all customers of each of the Sellers,
      including the name, address, telephone number and contact for each such
      customer, which list shall only be delivered and transferred to the Buyer either
      by electronic mail or by facsimile.

     

    (vii)
      Management
      Employment Agreements.
      Employment agreements between the Buyer and each of the Stockholder and the
      Officer in the form of Exhibit
      D
      attached
      hereto (the "Management
      Employment Agreements"),
      duly
      executed by each of the Stockholder and the Officer, respectively. 

     

    (viii)
      Books
      and Records.
      All
      books and records of each of the Sellers relating to the Business.

     

    (ix)
      Lease.
      (i) A
      one year lease for the premises at 3232 North Elston Avenue, Chicago, IL 60618
      (the “Building”) between the Buyer and JSS Properties LLC (the “LLC”), in the
      form of Exhibit
      F
      hereto
      (the "Lease"),
      duly
      executed by the LLC, and (ii) a letter agreement between the LLC and MediConnect
      terminating the current lease for the relevant premises.

     

    (x)
      Bank
      Debt/Payoff Letter.
      A
      payoff letter from Devon Bank (the "Bank") in a form reasonably acceptable
      to
      the Buyer as well as such bank's wire transfer instructions.

     

    (xi)
      Amtelco
      Consent.
      The
      consent of Amtelco to the assignment of that certain Amtelco license agreement,
      from MediConnect to Buyer, in a form reasonably acceptable to the
      Buyer.

     

    1.4A. Deliveries
      of Buyer.
      On or
      prior to the Closing Date, Buyer will have delivered to the Sellers each of
      the
      following documents and payments (collectively "Buyer's
      Closing Documents"):

     

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

     

    (ii)
      Closing
      Cash Purchase Price.
      Each of
      the MediConnect and Phone Screen Closing Cash Purchase Price, respectively,
      in
      immediately available funds.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (iii)
      AMAC
      Shares.
      Irrevocable instructions to AMAC's transfer agent for the issuance of the AMAC
      Shares, as well as an opinion by AMAC's counsel relating to such
      issuance.

     

    (iv)
      Management
      Employment Agreements.
      The
      Management Employment Agreements, duly executed by the Buyer.

     

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

     

    1.6 Adjustment
      for Receivables.
      [*].

     

    1.7 Contingent
      Additional Good Will Payment and Phone Screen Additional Good Will
      Payment.
      [*].

     

    Section
      2. Representations
      and Warranties of the Sellers and the Principals.
      In
      order to induce Buyer to enter into this Agreement and to consummate the
      transactions contemplated hereby, each
      of
      the Sellers and the Principals, represent and warrant to Buyer that each of
      the
      following statements is true and correct as of the date hereof, and with respect
      to representations and warranties that speak as of a subsequent date, such
      representations and warranties will also be true and correct in
      all
      material respects as
      of
      such date. Each of the Sellers and the Principals acknowledge that the following
      representations and warranties are an essential inducement to Buyer's decision
      to enter into this Agreement and to consummate the transactions contemplated
      hereby and that any breach thereof shall be deemed to be a material breach
      of
      this Agreement (provided, however, that Buyer shall notify Sellers in writing
      of
      any such breach and the amount of Damages (as defined in Section 6.1) claimed
      as
      a result of such breach, and Sellers shall have fifteen (15) days to dispute
      such breach, during which time, any payment obligations of the Buyer (to the
      extent of the Damages claimed) under this Agreement or the Management Employment
      Agreements shall be tolled):

     

    2.1 Organization.
      Each of
      the Sellers is an Illinois corporation duly organized, validly existing and
      in
      good standing under the laws of its jurisdiction of incorporation, with full
      corporate power and authority to conduct its business and to own and operate
      its
      assets and properties as presently conducted and operated. The LLC is an
      Illinois limited liability company duly formed, validly existing and in good
      standing under the laws of its jurisdiction of formation, with full limited
      liability company power and authority to conduct its business and to own its
      assets and properties as presently conducted and operated. Except as set forth
      in Section 2.1 of the Disclosure Schedule, neither Seller does any business
      in
      any other jurisdiction in any manner which would require it to become qualified
      or licensed as a foreign entity. Each Seller has delivered to Buyer, as Section
      2.1 of the Disclosure Schedule, true, correct and complete copies of such
      Seller’s articles of incorporation (the "Articles
      of Incorporation")
      and
      by-laws (the "By
      Laws"),
      as
      currently in effect. 

     

    
      
        
        

      

      
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    2.2 Title
      to Purchased Assets; Ownership of Stock or Membership Interests. 

     

    (a) Each
      Seller has good and marketable title to the Purchased Assets owned by it
      including, without limitation, all assets set forth on each Seller's respective
      fixed asset ledgers attached to this Agreement on Section 2.5 of the Disclosure
      Schedule, free and clear of all Liens, other than (i) Liens, if any, for
      personal property taxes and assessments not yet due and payable and (ii) Liens
      disclosed on Section 2.2 of the Disclosure Schedule. The LLC is the sole owner
      of the Building. Upon consummation of the transactions contemplated by this
      Agreement, Buyer will acquire all of each Seller's respective rights, title
      and
      interests in and to the Purchased Assets owned by it, free and clear of all
      Liens, other than those listed on Schedule 2.2 of the Disclosure Schedule,
      except that the Lien held by the Bank shall be extinguished in full on the
      Closing Date by Buyer wiring the amount of funds listed in, and in accordance
      with the wire transfer instruction provided by Sellers in, Exhibit E hereto.
      

     

    (b) The
      Stockholder is the sole record and beneficial owner of (i) 14,926 shares of
      MediConnect's common stock, no par value which constitute all of the outstanding
      capital stock of MediConnect, and (ii) 100 shares of Phone Screen's common
      stock, no par value, which constitute all of the outstanding capital stock
      of
      Phone Screen. No Person has any right, interest or claim to any of the Sellers’
capital stock (other than the Stockholder in the amounts set forth in the first
      sentence of this Section 2.2(b)) or the Purchased Assets. On or about April
      19,
      1989, the Officer purchased 500 shares of MediConnect's common stock from each
      of Richard Smith and Thomas Mulcahy, for a purchase price of $4.00 per share.
      There are no subscriptions, warrants, options, convertible securities or other
      rights (contingent or other) to purchase or acquire any shares of any class
      of
      capital stock of either Seller, issued or outstanding, and there is no
      commitment of either Seller to issue any shares, warrants, options or other
      such
      rights or to distribute to holders of any class of its capital stock, any
      evidences of indebtedness or assets. The Principals are the sole directors
      and
      officers of each of the Sellers. The Principals are the sole members and
      managers of the LLC.

     

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

     

    
      
        
        

      

      
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    2.4 Consents
      and Approvals; No Violation.
      Except
      as set forth in Section 2.4 of the Disclosure Schedule, and except as set forth
      below with respect to the MediConnect and Phone Screen customer contracts,
      the
      execution, performance and delivery by the each of the Sellers, and the
      Principals of this Agreement and each of the other Purchase Documents to which
      it or they are a party, as applicable, and the consummation by the Sellers
      and
      the Principals of the transactions contemplated hereby and thereby,
      respectively, and the compliance by each of the Sellers and the Principals
      with
      the provisions hereof and thereof will not: (a) conflict with or breach any
      provision of the Articles of Incorporation or Bylaws of either Seller; (b)
      violate or breach in any respect any provision of, or constitute a default
      (or
      an event which, with notice or lapse of time or both would constitute a default)
      under, any of the terms, covenants, conditions or provisions of, or give rise
      to
      a right to terminate or accelerate or increase the amount of payment due under,
      any note, bond, mortgage, indenture, deed of trust, license, franchise, permit,
      lease, contract, agreement or other instrument, commitment or obligation to
      which either of the Sellers or, either of the Principals is a party
      (collectively, "Contracts"),
      or by
      which either of the Sellers or, either of the Principals or any of their
      respective properties or assets, as applicable, may be bound or affected; (c)
      require either of the Sellers or either of the Principals to make any filing
      or
      registration with, or obtain any other permit, authorization, consent or
      approval of, any Person (as hereinafter defined) or Governmental Entity (as
      hereinafter defined); (d) result in the creation of any Lien on or affecting
      the
      Purchased Assets; (e) violate any order, writ, injunction, decree, judgment,
      or
      ruling of any court or governmental authority, applicable to either of the
      Sellers or either of the Principals or any of their respective properties or
      assets; or (f) violate any statute, law, rule or regulation applicable to either
      of the Sellers or any of their respective properties or assets. The standard
      customer contract of MediConnect requires consent of the customer for
      assignment. Most of the customer contracts of Phone Screen reuire consent of
      the
      customer for assignment. "Person"
      shall
      mean any individual, partnership, corporation, joint venture, limited liability
      company, trust, organization or any other entity. "Governmental
      Entity”
shall
      mean any foreign, provincial, United States federal, state, county, municipal
      or
      other local jurisdiction, political entity, body, organization, subdivision
      or
      branch, legislative or executive agency or department or other regulatory
      service, authority or agency.

     

    2.5 Condition
      of Purchased Assets. All
      items
      of machinery, equipment, tooling and other tangible personal property owned
      or
      leased by the Sellers and used in the conduct of the Business (other than items
      of inventory) are listed in the detailed fixed assets ledger of each of the
      Sellers attached to Section 2.5 of the Disclosure Schedule (collectively, the
      "Personal
      Property").
      Although it may not be specifically identified in Section 2.5 of the Disclosure
      Schedule, the term "Personal Property" includes all of the telephony equipment
      hardware and peripherals, including, but not limited to, telephony chassis,
      expansion cards, monitors, spare equipment, operator audio boxes, amplifiers,
      headsets, and all computers, furniture, fixtures and machinery, in each case
      located in the premises identified in the Lease. The Personal Property conforms
      in all respects to all requirements of applicable laws. All
      items
      of machinery, equipment and tooling included within the Personal Property are
      in
      good operating condition and in good state of maintenance and repair and are
      adequate for use in conduct of each of the Sellers’ Business as currently being
      conducted.

     

    
      
        
        

      

      
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    2.6 Receivables.
      All
      accounts receivable of each of the Sellers as of the Closing Date, are reflected
      on Section 2.6 of the Disclosure Schedule and represent valid obligations
      arising from bona fide transactions in the ordinary course of each of the
      Sellers’ business consistent with past practice and established in the ordinary
      course of each of the Sellers’ business. To the best knowledge of each of the
      Sellers and each of the Principals, the accounts receivable of each of the
      Sellers are collectible, and there is no contest, claim, or right of set off,
      under any contract with any obligor of an accounts receivable relating to the
      amount or validity of such accounts receivable. All invoices of each of the
      Sellers' relate to and reflect services previously provided by the Sellers
      to
      their respective customers, including base fees and usage fees.

     

    2.7 Taxes.
      

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    (ix) MediConnect
      is, and has always been, an "S-Corp" for all Tax purposes. Phone Screen is,
      and
      has always been, an "C-Corp" for all Tax purposes (it being understood that
      Phone Screen may apply for S-Corp status in the future).

     

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

     

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

     

    
      
        
        

      

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

     

    2.7B Financial
      Statements.
      Attached to Section 2.7B of the Disclosure Schedules are the (i) unaudited
      balance sheets of each Seller as of December 31, 2005, and (ii) unaudited
      statements of income of each Seller for the 12 month period ended December
      31,
      2005 (collectively, the "Financial
      Statements"),
      together with a compilation report of the Sellers' independent accountants
      with
      respect to such Financial Statements. The Financial Statements, (i) are derived
      from, and agree with, the books and records of each of the Sellers,
      respectively, and (ii) fairly present the financial condition of each of the
      Sellers, respectively, as of the date thereof and the results of operations
      of
      each of the Sellers for the periods set forth therein, in each case prepared
      in
      accordance with United States generally accepted accounting principles, as
      in
      effect on the date hereof.

     

    2.8 Real
      Property.
      Except
      as set forth in Section 2.8 of the Disclosure Schedule, the Sellers do not
      own
      any real property and are neither a landlord, sublandlord or licensor nor a
      tenant, subtenant or licensee under any lease, sublease, license or occupancy
      agreement with respect to real property. Section 2.8 of the Disclosure Schedule
      lists and briefly describes all leases, subleases and agreements by which real
      property is used or occupied by the Sellers in connection with the Business.
      With respect to each parcel of leased real property: (i) the leases and
      subleases described on Section 2.8 of the Disclosure Schedule, constitute all
      of
      the leases, subleases and agreements under which the Sellers hold any interest
      in any leased real estate used in connection with their business; (ii) the
      Sellers have delivered to Buyer and its counsel true, correct and complete
      copies of all of the leases, subleases and agreements described on Section
      2.8
      of the Disclosure Schedule; (iii) each such lease, sublease or agreement is
      in
      full force and effect and is a legal, valid, binding and enforceable obligations
      of the applicable Seller and, to the best knowledge of each of the Sellers
      and
      the Principals, each of the other parties thereto, and will continue to be
      legal, valid, binding, enforceable and in full force and effect on identical
      terms after the Closing; (iv) none of the Sellers or, to the best knowledge
      of
      each of the Sellers and the Principals, any other party to any such lease,
      sublease or agreement is in breach or default thereof, and no event has occurred
      which, with notice or the lapse of time, or both, would constitute such a breach
      or default or permit termination, modification or acceleration thereof or
      thereunder; (v) to the best knowledge of each of the Sellers and the Principals,
      no other party to any such lease, sublease or agreement has repudiated any
      provision thereof; (vi) there are no disputes, oral agreements or forbearance
      programs in effect as to any such lease, sublease or agreement; (vii) no such
      lease, sublease or agreement has been modified in any respect, except to the
      extent disclosed in documents delivered to Buyer and its counsel; (viii) neither
      of the Sellers has assigned, transferred, conveyed, mortgaged, deeded in trust
      or encumbered any interest in any leasehold or subleasehold; (ix) to the best
      knowledge of each of the Sellers and the Principals, all buildings, improvements
      and other property on the leased property have received all material approvals
      of governmental authorities (including certificates of occupancy, permits and
      licenses) required in connection with the operation thereof and have been
      operated and maintained in accordance with all material legal requirements
      and
      are not in violation of any material zoning, building code or subdivision
      ordinance, regulation, order or law or restrictions or covenants or record;
      (x)
      to the best knowledge of each of the Sellers and the Principals, all buildings,
      improvements and other property thereon are supplied with utitlies and other
      services necessary for the operation thereof (including gas, electricity, water,
      telephone, sanitary and storm sewers and access to public roads); (xi) there
      are
      no pending or, to the best knowledge of each of the Sellers and the Principals,
      threatened condemnation proceedings, lawsuits, or other administrative actions
      relating to such parcel or other matters affecting adversely the current use,
      occupancy, or value of such parcel; (xii) to the best knowledge of each of
      the
      Sellers and the Principals, the land does not serve any adjoining property
      for
      any purpose inconsistent with the use of the land, and the property is not
      located within any flood plain or subject to any similar type restriction for
      which any permits or licenses necessary to the use thereof have not been
      obtained; (xiii) other than the documents described on the attached Section
      2.8
      of the Disclosure, there are no leases, subleases, licenses, concessions, or
      other agreements, written or oral, by which the Sellers have granted to any
      Person the right of use or occupancy of any portion of such properties; (xiv)
      no
      Person (other than the Sellers) is in possession of such properties; and (xv)
      all such leased real property and improvements therein are in good operating
      condition and repair and are adequate and suitable for their intended use in
      the
      Business.

     

    
      
        
        

      

      
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    2.9 Intellectual
      Property.
      Section
      2.9 of the Disclosure Schedule lists all Intellectual Property that is owned
      by
      each of the Sellers or any other Person and used by each of the Sellers in
      the
      operations of the Business, and there are no pending or, to the best knowledge
      of each of the Sellers and the Principals, threatened claims by any Person
      relating to either Seller's use of any Intellectual Property. With respect
      to
      such Intellectual Property, each Seller has, free and clear of all Liens, such
      rights of ownership or such rights of license, lease or other agreement to
      use
      the Intellectual Property as are necessary to permit such Seller to conduct
      its
      business and, except as set forth on Section 2.9 of the Disclosure Schedule,
      neither Seller is obligated to pay any royalty or similar fee to any Person
      in
      connection with such Seller's use or license of any of the Intellectual
      Property.

     

    2.10 Material
      Contracts.
      Section
      2.10 of the Disclosure Schedule sets forth a true, complete and correct list
      of
      every Contract that: (i) provides for aggregate future payments by each Seller
      or to each Seller of more than $1,000 (excluding purchase orders and invoices
      arising in the ordinary course of business); (ii) was entered into by any Seller
      with any of the Principals, or an officer, director or significant employee
      of
      each Seller; (iii) is a collective bargaining or similar agreement; (iv)
      guarantees or indemnifies or otherwise causes either Seller to be liable or
      otherwise responsible for the Liabilities of another or provides for a
      charitable contribution by either Seller; (v) involves an agreement with any
      bank, finance company or similar organization; (vi) restricts either of the
      Sellers or the Principals or the Business from engaging in any business or
      activity anywhere in the world; (vii) is an employment agreement, consulting
      agreement or similar arrangement with any employee of either of the Sellers;
      (viii) involves an agreement or any other Contract providing for payments from
      either Seller to any other Person, or by any Person to either Seller, based
      on
      sales, purchases or profits, other than direct payments for goods; or (ix)
      any
      other Contract that is material to the rights, properties, assets, business
      or
      operations of either Seller or the Business (the foregoing, collectively,
      "Material
      Contracts").
      Each
      Seller has heretofore provided true, complete and correct copies of all of
      its
      Material Contracts to Buyer.

     

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

     

    
      
        
        

      

      
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    2.11 Customers,
      Suppliers and Distributors.
      Sellers
      have delivered to Buyer by electronic mail or facsimile dated December 12,
      2006
      (i) a list of all of each of the Sellers’ customers, (ii) the sales of each
      Seller for the 12 month period ended December 12, 2006, and (iii) the suppliers
      and distributors of each Seller during such period. Other
      than in the normal course of business, there
      has not
      been any adverse change in the business relationship of either Seller with
      any
      such customer, supplier or distributor, and neither of the Sellers or the
      Principals is aware of any threatened loss of any such customer, supplier or
      distributor. 

     

    Attached
      to Section 2.11 of the Disclosure Schedule is the most recent form of each
      of
      the Sellers’ standard customer agreement.

     

    2.12 Litigation;
      Compliance with Laws; Licenses and Permits.
      

     

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

     

    (b) Except
      as
      set forth in Section 2.12 of the Disclosure Schedule, each of the Sellers and
      the Business have complied with all applicable federal, state, county, municipal
      or other local criminal, civil or common laws, statutes, ordinances, orders,
      codes, rules, regulations, permits, policies, guidance documents, judgments,
      decrees, injunctions, or agreements of any Governmental Entity (collectively,
      "Laws"),
      including but not limited to Laws relating to zoning, building codes, antitrust,
      occupational safety and health, industrial hygiene, environmental protection,
      water, ground or air pollution, consumer product safety, product liability,
      hiring, wages, hours, employee benefit plans and programs, collective bargaining
      and the payment of withholding and social security taxes. Since January 1,
      2002,
      neither Seller has received any notice of any violation of any Law.

     

    
      
        
        

      

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

     

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

     

    2.14 No
      Brokers.
      Neither
      of the Sellers or the Principals has employed, or otherwise engaged, any broker
      or finder or incurred any liability for any brokerage or investment banking
      fees, commissions, finders' fees or other similar fees in connection with the
      transactions contemplated by this Agreement. 

     

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

     

    2.16 Related
      Party Transactions.
      Except
      as set forth in Section 2.16 of the Disclosure Schedule, neither of the
      Principals, nor any other director, officer or key employee of either of the
      Sellers (or any members of the immediate family (including spouse, brother,
      sister, descendant, ancestor
      or
      in-law) or affiliates of the aforementioned is (i) a party to any agreement,
      contract, commitment or transaction with either of the Sellers or affecting
      the
      Business, or has any interest in any property, whether real, personal or mixed,
      or tangible or intangible, used in or necessary to the business of either of
      the
      Sellers, or (ii) is a director, officer or employee of any customer or supplier
      of either of the Sellers.

     

    2.17 Insurance.
      Section
      2.17 of the Disclosure Schedule contains a complete and correct list of all
      policies of insurance of any kind or nature covering each Seller, including
      policies of life, fire, theft, casualty, product liability, workmen's
      compensation, business interruption, employee fidelity and other casualty and
      liability insurance, indicating the type of coverage, name of insured, the
      insurer, the expiration date of each policy, the amount of coverage and whether
      on an "occurrence" or "claims made" basis. All such policies are: (i) with
      insurance companies that are financially sound and reputable and are in full
      force and effect; (ii) sufficient for compliance with all material requirements
      of law and of all applicable material agreements; and (iii) valid, outstanding
      and enforceable policies. Complete and correct copies of such policies have
      been
      furnished to Buyer. All such insurance policies or comparable coverage shall
      continue in full force and effect through the Closing Date. 

     

    
      
        
        

      

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

     

    2.19 Labor
      Matters and Employment Matters. 

     

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

     

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

     

    (c) (i)
      Neither Seller is a party to or bound by any collective bargaining agreement
      or
      similar agreement with any labor organization, or work rules or practices agreed
      to with any labor organization or employee association applicable to such
      Seller’s employees, (ii) none of such Seller’s employees are represented by any
      labor organization, and there are no organizational campaigns, demands,
      petitions or proceedings pending or, to the knowledge of each of the Sellers
      and
      the Principals, threatened by any labor organization or group of employees
      seeking recognition or certification as collective bargaining representative
      of
      any group of such Seller’s employees, (iii) to the knowledge of each of the
      Sellers and the Principals, there are no union claims to represent the employees
      of either Seller, (iv) there are no strikes, controversies, slowdowns, work
      stoppages, lockouts or labor disputes pending or, to the knowledge of each
      of
      the Sellers and the Principals, threatened against or affecting either Seller,
      and there has not been any such action during the past five (5) years, and
      (v)
      no unfair labor practice charges, jurisdictional disputes, or other matters
      within the jurisdiction of the National Labor Relations Board has occurred,
      is
      pending or, to the knowledge of each of the Sellers and the Principals, is
      threatened before the National Labor Relations Board or other governmental
      entity. 

     

    
      
        
        

      

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

     

    (e) (i)
      There
      are no pending, or to the knowledge each of the Sellers and the Principals,
      threatened Equal Employment Opportunity Commission or analogous state or local
      agency charges, complaints or other claims of employment discrimination against
      either Seller by any employee or independent contractor of either Seller; (ii)
      there are no pending, or to the knowledge of each of the Sellers and the
      Principals, threatened wage complaints, investigations, reviews or audits with
      respect to any of either Seller’s employees by the Department of Labor or
      analogous state or local governmental entities, and neither Seller has received
      notice of the intent of the Department of Labor or any other government entity
      to conduct any such investigation, review or audit; (iii) there are no pending,
      or to the knowledge of each of the Sellers and the Principals, threatened
      occupational safety and health complaints, investigations or reviews with
      respect to any of either Seller’s employees by the Occupational Safety and
      Health Administration or analogous state or local government entities, and
      neither Seller has received notice of the intent of the Occupational Safety
      and
      Health Administration or any other government entity to conduct any such
      investigation or review; and (iv) neither Seller has received notice of the
      intent of any government entity responsible for the enforcement of labor and
      employment laws to conduct any investigation, audit or review and, to the
      knowledge of each of the Sellers and the Principals, no such investigation
      is in
      progress with respect to either Seller.

     

    (f) Since
      January 1, 2005 neither Seller has effected (i) a "plant closing" as defined
      in
      the Worker Adjustment and Retraining Notification Act of 1988 ("WARN") affecting
      any site of employment or one or more facilities or operating units within
      any
      site of employment or facility of such Seller, or (ii) a "mass layoff" as
      defined in WARN affecting any site of employment or facility of such Seller;
      nor
      has either Seller been affected by any transaction or engaged in layoffs or
      employment terminations sufficient in number to trigger application of any
      similar state or local law. None of either Seller’s employees has suffered an
      "employment loss" as defined in WARN since January 1, 2005. Buyer shall not
      incur any liability or other obligation with respect to WARN or any state or
      local plant closing or mass layoff statute in connection with or as a result
      of
      the transactions contemplated by this Agreement. The Sellers shall be, jointly
      and severally, solely and exclusively liable to provide such WARN or other
      plant
      closing or mass layoff notices as may be necessary in connection with any loss
      of employment by any employee of either Seller through and including the Closing
      Date.

     

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

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (h) Set
      forth
      on Section 2.19(h)(A) of the Disclosure Schedule is a complete list of each
      Seller’s current foreign national employees on whose behalf such Seller has
      submitted applications and petitions to the U.S. Department of Labor, U.S.
      Immigration and Naturalization Service, and U.S. Department of State for
      immigration employment and visa benefits; and each Seller has provided the
      Buyer
      with copies of all such applications and petitions and all government notices
      regarding adjudications of such notices and petitions. Section 2.19(h)(B) of
      the
      Disclosure Schedule identifies and describes any pending or, to the knowledge
      of
      each of the Sellers and the Principals, threatened actions against either Seller
      for violations under the Immigration Reform and Control Act of 1986 respecting
      such employees of either Seller.

     

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

     

    2.20 Environmental
      Matters.
      

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (g) there
      are
      no past or pending, or to the knowledge of each of the Sellers and the
      Principals, threatened, Environmental Claims against either Seller or, with
      respect to the Business, either Seller or the Purchased Assets, the Principals,
      and neither of the Sellers or the Principals is aware of any facts or
      circumstances which could be expected to form the basis for any Environmental
      Claim against the Business;

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
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    2.21 No
      Material Adverse Change.
      Except
      as disclosed in Section 2.21 of the Disclosure Schedule, since December 31,
      2005, (a) no event, condition or circumstance has occurred that could, or could
      be reasonably likely to, have a material adverse effect on the Business or
      the
      Purchased Assets, or on the condition (financial or otherwise), results of
      operations or prospects of either Seller or the Business; and (b) the Business
      has been conducted in the ordinary course and consistent with past practice.
      

     

    2.22 No
      Undisclosed Liabilities.
      

     

    (a) Neither
      Seller has any Liabilities other than those identified in the Disclosure
      Schedule, each of which was incurred in the ordinary course of
      business.

     

    (b) All
      accounts payable of each Seller are set forth in Section 1.5 of the Disclosure
      Schedule, are the result of bona fide transactions in the ordinary course of
      business and are due and payable as at the date hereof, in accordance with
      the
      respective invoices relating thereto. 

     

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

     

    2.24 Employee
      Benefits.
      i) Disclosure
      of All Plans.
      Except
      as set forth in Section 2.24 of the Disclosure Schedule, neither of the Sellers
      nor any other company or entity, which
      together with either of the Sellers has at any time constituted a member of
      the
      Sellers’ "controlled group" or "affiliated service group" (within the meaning of
      Sections 4001(a)(14) and/or (b) of the Employee Retirement Income Security
      Act
      of 1974, as amended ("ERISA")
      and/or
      Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as
      amended (the "Code")
      (such
      group or groups and each member thereof hereinafter referred to individually
      and
      collectively as the "Group")),
      has
      at any time adopted, sponsored or maintained, has any liability for or is a
      fiduciary with respect to, or has any present or future obligation to contribute
      to or make payment under, or has or is making contributions or payments under,
      (i) any employee benefit plan (as defined in Section 3(3) of ERISA) regardless
      of whether such plan is actually covered by ERISA (including any Employee
      Welfare Benefit Plan or Employee Pension Plan, as defined in ERISA), or (ii)
      any
      other benefit plan, program, policy, practice, contract or arrangement of any
      kind whatsoever (whether for the benefit of present, former, retired or future
      employees, officers, directors, managers, consultants or each of independent
      contractors of either of the Sellers or any member of the Group, or for the
      benefit of any other person or persons) including, without limitation, with
      respect to disability, relocation, child care, educational assistance, deferred
      compensation, pension, retirement, profit sharing, thrift, savings, stock
      ownership, stock bonus, restricted stock, health, dental, medical, life,
      hospitalization, stock purchase, stock option, incentive, bonus, sabbatical
      leave, vacation, severance, cafeteria, performance award, stock or stock-related
      awards, fringe benefits or other contribution, benefit or payment of any kind,
      whether formal or informal, oral or written, funded or unfunded and whether
      or
      not legally binding, or (iii) any employment, consulting, service or other
      contract or agreement of any kind whatsoever (collectively, "Employee
      Plans").
      Neither of the Sellers nor any member of the Group has any plan or commitment,
      whether legally binding or not, to establish any new Employee Plan, to modify
      any Employee Plan, or to enter into any Employee Plan, nor do they have any
      intention or commitment to do any of the foregoing.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

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

     

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

     

    (d) Employee
      Plan Compliance.
      Except
      as set forth in Section 2.24 of the Disclosure Schedule, (i) each Employee
      Plan
      has been established and maintained in all material respects in accordance
      with
      its terms and in compliance with all applicable laws, statutes, orders, rules
      and regulations including, without limitation, ERISA and the Code, and no
      communication has been received from a governmental authority asserting that
      an
      Employee Plan is not in compliance with applicable laws, statutes, orders,
      rules
      and regulations; (ii) no prohibited transaction (within the meaning of Section
      4975 of the Code or Section 406 of ERISA) has occurred with respect to any
      Employee Plan; (iii) there are no actions, suits, claims, or governmental agency
      action or investigation pending or threatened (other than routine claims for
      benefits) against any Employee Plan or against the assets of any Employee Plan,
      and neither of the Sellers nor any member of the Group have any reason to expect
      such an action, suit, claim, or governmental agency action or investigation
      to
      arise; (iv) each Employee Plan can be amended, terminated or otherwise
      discontinued before or after the Closing Date in accordance with its terms,
      without liability to either of the Sellers, any member of the Group or the
      Buyer
      (other than ordinary administration expenses or Liabilities typically incurred
      in a termination event); (v) there are no audits, inquiries or proceedings
      pending or threatened by the IRS or Department of Labor ("DOL") with respect
      to
      any Employee Plan; (vi) neither of the Sellers nor any member of the Group
      is
      subject to any penalty or tax with respect to any Employee Plan under Section
      402(i) of ERISA or Sections 4975 through 4980 of the Code; and (vii) neither
      of
      the Sellers nor any member of the Group has engaged in a transaction that could
      be subject to Section 4069 or 4212(c) of ERISA. 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (e) No
      Pension Plans.
      Neither
      of the Sellers nor any members of the Group have ever maintained, established,
      sponsored, participated in or contributed to any employee pension benefit plan
      (as defined Section 3(2) of ERISA) which was, or is, subject to Part 3 of
      Subtitle B of Title I of ERISA, Title IV of ERISA or Section 412 of the Code,
      and neither of the Sellers nor any member of the Group has incurred, or expects
      to incur, any liability under Title IV of ERISA. 

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
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    (j) Effect
      of Transactions.
      The
      execution of this Agreement and the consummation of the transactions
      contemplated hereby and thereby will not (either alone or upon the occurrence
      of
      any additional or subsequent events) constitute an event under any Employee
      Plan, trust or loan that will or may result in any payment (whether of severance
      pay or otherwise), acceleration, forgiveness of indebtedness, vesting,
      distribution, increase in benefits or obligation to fund benefits with respect
      to any Employee Benefit Plan. No payment or benefit which will or may be made
      by
      either of the Sellers, any member of the Group or the Buyer as a result of
      the
      execution of this Agreement and consummation of the transactions contemplated
      hereby will be characterized as a parachute payment (within the meaning of
      Section 280G of the Code).

     

    2.25 Investment
      Representations.
      (a)
      MediConnect is an "Accredited Investor", as that term is defined under Section
      501(a) of Regulation D under the Securities Act of 1933, as amended (the "Act"),
      by virtue of the fact that the Stockholder, its only equity owner, is an
      accredited investor. MediConnect is not a broker or dealer registered with
      the
      Securities and Exchange Commission under the Securities Exchange Act of 1934,
      or
      an entity engaged in a business that would require it to be so registered.
      

     

    (b)
      Prior
      to the date hereof and the Closing Date, MediConnect has had full opportunity
      to
      ask questions of and receive answers from AMAC and its officers and authorized
      represen-ta-tives regarding the merits of an investment in the AMAC Shares.
      MediConnect confirms that it does not desire to receive any further information.
      MediConnect has sufficient knowledge and experience in financial and business
      matters so as to be able to evaluate the merits and risks of acquiring the
      AMAC
      Shares.

     

    (c)
      MediConnect acknowledges that the AMAC Shares have not been registered under
      the
      Act or the securities laws of any state, are exempt from such registration
      and
      are being issued in reliance on Section 4(2) of the Act, specifically Rule
      506
      promulgated under Regulation D, and in reliance on MediConnect's representations
      and warranties contained herein. MediConnect has not received any general
      solicitation or general advertising regarding the acquisition of the
      MedicConnect Shares. MediConnect acknowledges that the AMAC Shares cannot be
      resold unless they are registered under the Act or exemption from registration
      is available.

     

    (d)
      MediConnect represents and warrants that the AMAC Shares are being acquired
      by
      it for its own account, for investment purposes and not with a view to
      distribu-tion or resale, nor with the intention of sale, transfer or other
      disposition, in whole or any part for any particular price, or at any particular
      time, or upon the happening of any particular event or circum-stance.
      MediConnect agrees to hold the AMAC Shares indefinitely unless they are
      subsequently registered under the Act, or an exemption from such registration
      is
      available, and acknowledges that AMAC will require an opinion of counsel, as
      a
      condition of any sale or transfer, that registration is not required under
      the
      Act or applicable state securities laws. Certificates to be issued will bear
      a
      legend indicating that the AMAC Shares have not been registered under the Act
      and are subject to restrictions on transferability.

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    3.4 AMAC
      Shares.
      Subject
      to the provisions of Rule 144 promulgated pursuant to the Securities Act of
      1933, as amended, MediConnect shall have the right to sell the AMAC Shares
      beginning one (1) year following the Closing Date. Subject to the accuracy
      of
      MediConnect's representations set forth in Section 2.25, the issuance of the
      AMAC Shares will not violate any applicable securities laws.

     

    
      
        
        

      

      
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    Section
      4. Covenants
      of the Parties.
      In order
      to induce Buyer to enter into this Agreement and to consummate the transactions
      contemplated hereby, each
      of
      the Sellers and the Principals, hereby agrees to enter into the following
      agreements and covenants, and acknowledges that the following agreements and
      covenants are an essential inducement to Buyer's decision to enter into this
      Agreement and to consummate the transactions contemplated hereby and that any
      breach thereof shall be deemed to be a material breach of this Agreement
      (subject to the applicable cure period expressly provided for
      below):

     

    4.1 Employee
      Matters. 

     

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

     

    (b) Except
      to
      the extent specifically set forth in Section 4.1 of the Disclosure Schedule
      hereto, Buyer is not assuming and the Sellers shall remain liable, jointly
      and
      severally, for all Liabilities arising out of or in any way related to (i)
      all
      amounts required to be paid pursuant to any Employment Agreements, Retention
      Agreements and any other similar agreements between either Seller and any of
      such Seller’s employees, subject to and in accordance with the terms and
      conditions set forth in such agreements; (ii) any and all severance or
      termination costs that arise with respect to employees of either Seller
      terminated from employment with such Seller on or before the Closing Date (or
      whose notice of termination was delivered prior to such date); (iii) any claims
      by any employee of either Seller relating to a termination or deemed termination
      on or prior to the Closing Date as a result of the transactions contemplated
      by
      this Agreement; (iv) any claims by any Seller's employees who refuse Buyer’s
      offer of employment; (v) any workers’ compensation claims by any Transferred
      Employee for injuries or illnesses incurred, sustained or resulting from
      work-related exposures or conditions prior to such Transferred Employee’s
      employment date with Buyer, if any (regardless of whether the claim related
      thereto is filed before or after the Closing Date); (vi) claims for any benefits
      accruing, or with respect to occurrences commencing, on or before the Closing
      Date under any Seller's benefit plans, including, but not limited to, (A)
      hospital benefits or any confinements that commenced on or before the Closing
      Date, including any covered charges of health care professionals relating to
      such confinements, (B) short-term and long-term disability benefits, if any,
      for
      disabilities that commenced on or before the Closing Date for the period that
      each of such affected individuals remain disabled, (C) life and survivor income
      benefits, if any, for deaths that occur on or prior to the Closing Date, (D)
      all
      benefits that are being, or may be, paid to, or with respect to, any of such
      employees who are on long-term or short-term disability or medical, family,
      personal or other leaves of absence as of the Closing Date, or who go on
      short-term, long-term, medical, family, personal or other leaves of absence
      after the Closing Date as a result of any injury, illness or other factor
      occurring on or prior to the Closing Date pursuant to the terms of such Seller
      benefit plans as in effect immediately prior to the Closing Date (including
      any
      subsequent benefit increases); (E) benefits under any "spending account" or
      similar arrangement under any "cafeteria plan" (as defined in Section 125 of
      the
      Internal Revenue Code of 1986, as amended) with respect to salary reduction
      elections made prior to the Closing Date, (F) benefits under all other benefit
      plans of either Seller which accrue on or before the Closing Date; (vii) any
      independent contractor agreement or relationship to or involving either Seller
      entered into prior to the Closing Date; (viii) other acts or omissions occurring
      or otherwise attributable to the period on or before the Closing Date with
      respect to the employment of, termination of employment of, provision of
      benefits to, and/or compensation of any of the Sellers’ employees, including,
      but not limited to, any personal injury, discrimination, wage/hour, family
      and
      medical leave, mass layoff, plant closing, harassment, wrongful discharge,
      or
      other wrongful employment practice, unfair labor practice, claims for benefits
      (including claims arising under ERISA or workers’ compensation laws), or other
      violation of, or obligations under, any labor, employment or benefits law;
      and
      (ix) all wages and salaries of the Sellers’ employees for work performed or
      services rendered by such employees on or prior to the Closing Date. The parties
      hereto acknowledge and agree that, except with respect to those benefit plans
      listed on Section 4.1 of the Disclosure Schedule (the “Assumed
      Plans”),
      as of
      the Closing Date, the Transferred Employees will cease accruing benefits under
      and shall cease participation in all of the Sellers’ benefit plans. Buyer shall
      not have any liability or obligations of any nature, whether known or unknown,
      absolute, accrued, contingent or otherwise, and whether due or to become due,
      arising out of relating to either Seller being, or being deemed to be, a joint
      employer or part of a single employer group. 

     

    
      
        
        

      

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

     

    (d) Neither
      Seller shall take any action, including, but not limited to, offering employment
      with such Seller, to induce Transferred Employees not to accept employment
      with
      Buyer.

     

    (e) To
      the
      extent permitted by law, as soon as reasonably practicable after the date
      hereof, each Seller will provide to Buyer the necessary employee data, including
      personnel and benefits information, maintained with respect to the Transferred
      Employees by such Seller or by its independent contractors, such as insurance
      companies and actuaries, in order to facilitate benefit and payroll transition
      for the Transferred Employees. The obligations set forth above shall be subject
      to a ten (10) day cure period from receipt by Sellers of a written notice of
      a
      breach of such obligations. After the date hereof, each Seller shall cooperate
      and provide Buyer with reasonable assistance in connection with the
      establishment of any applicable employee benefit plans and programs and shall
      cooperate with the Buyer in assisting the Transferred Employees in rolling
      over
      amounts attributable to their participation in each Seller’s defined
      contribution plan(s) into any comparable defined contribution retirement plan
      that may be established by the Buyer.

     

    (f) Notwithstanding
      anything to the contrary contained in Section 6 hereof, each of the Sellers
      and
      the Principals shall, jointly and severally, pay and shall assume, indemnify,
      defend, and hold harmless Buyer from and against and in respect of any and
      all
      losses, damages, claims for benefits, Liabilities, taxes, and sanctions that
      arise under the Section 4980B of the Code, or Part 6 of Title I of ERISA or
      any
      similar state law (individually and collectively "COBRA"),
      interest and penalties, costs, and expenses (including, without limitation,
      disbursements and reasonable legal fees incurred in connection with any action,
      suit, proceeding, claim, appeal, demand, assessment, or judgment) imposed upon,
      incurred by, or assessed against Buyer and any of its employees arising by
      reason of or relating to any failure of Administaff Companies II, L.P.
      (“Administaff”) or either Seller to comply with the continuation health care
      coverage provisions of COBRA which failure occurred with respect to any current
      or prior employee of such Seller or any qualified beneficiary of such employee
      (as defined in COBRA) prior to the Closing Date or as otherwise required as
      a
      result of either Seller’s dissolution and/or termination of its group health
      plan or plans or any other transactions or matters contemplated by this
      Agreement. The obligations set forth above shall be subject to a ten (10) day
      cure period from receipt by Sellers of a written notice of a breach of such
      obligations. In particular, if and to the extent that the Buyer is deemed by
      law
      or otherwise to be liable as a successor employer for such COBRA purposes,
      each
      of the Sellers and the Principals shall, jointly and severally, indemnify the
      Buyer for the full and complete costs, fees and other Liabilities which
      result.

     

    
      
        
        

      

      
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    (g) In
      respect of grievances or labor claims of Transferred Employees to the extent
      relating to their employment by either Seller including, without limitation,
      any
      such grievances or labor claims filed before state or local authorities for
      which payment has not been made prior to the Closing Date, each Seller shall
      retain responsibility and liability for all amounts due with respect thereto
      including, without limitation, the payment of any amounts in the nature of
      back
      pay or employee compensation, and any state or federal taxes in connection
      with
      such back pay or employee compensation, and each of the Sellers and the
      Principals shall, jointly and severally, indemnify the Buyer with respect to
      any
      such Liabilities. The obligations set forth above shall be subject to a ten
      (10)
      day cure period from receipt by Sellers of a written notice of a breach of
      such
      obligations. Handling of such grievances and labor claims shall be at the
      Sellers’ cost and expense. Buyer shall have sole responsibility and liability
      for any labor claims of Transferred Employees that relate to their employment
      with Buyer.

     

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

     

    (i) Immediately
      following the Closing Date, each of the Sellers shall direct and cause
      Administaff to, and all members of the Group shall each, terminate, effective
      as
      of the day immediately preceding the Closing Date, any and all Employee Plans,
      except for the Assumed Plans. Buyer shall receive from each Seller evidence
      that
      all tax qualified Employee Plans (other than those which are Assumed Plans)
      have
      been terminated by Administaff and all members of the Group pursuant to
      resolutions of each such entity’s board of directors (the form and substance of
      such resolutions being subject to the review and approval of Buyer), effective
      as of the day immediately preceding the Closing Date. The obligations set forth
      above shall be subject to a ten (10) day cure period from receipt by Sellers
      of
      a written notice of a breach of such obligations. Each of the Sellers shall
      direct and cause Administaff and each member of the Group to submit, or have
      submitted on its behalf, to the Internal Revenue Service an application for
      determination of the tax-qualified status upon its termination of each Employee
      Plan which is intended to qualify under Section 401(a) of the Code and each
      trust intended to qualify under Section 501(a) of the Code. The obligations
      set
      forth above shall be subject to a ten (10) day cure period from receipt by
      Sellers of a written notice of a breach of such obligations. Each such
      application shall be (i) submitted as soon as administratively possible
      following the Closing Date, and (ii) paid for (including all related legal,
      administrative and other costs and expenses) solely by each such Seller. Each
      of
      the Sellers shall periodically notify Buyer of the status of each such
      submission and shall provide Buyer with a copy of each determination letter,
      if
      and when received. Each of the Sellers shall direct and cause Administaff and
      all members of the Group to operate and maintain the Employee Plans in all
      respects in accordance with its terms and in compliance with all applicable
      laws, statutes, orders, rules and regulations including, without limitation,
      ERISA and the Code, until all amounts are distributed from such Employee
      Plan.

     

    
      
        
        

      

      
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    (j) each
      Seller shall retain responsibility and liability for all amounts or claims
      arising out of the agreement with Administaff and resulting out of the
      consummation of the transactions contemplated hereby, including, without
      limitation, the transfer of each Seller's employees to Buyer or the cessation
      of
      employment of any such employee, and each of the Sellers and the Principals
      shall, jointly and severally, indemnify the Buyer with respect to any such
      Liabilities. It is understood and agreed that Sellers shall not be responsible
      or liable for any liabilities or claims arising out of the agreement with
      Administaff which (i) relate to the operation of the Business after the Closing
      Date, and (ii) not resulting out of the consummation of the transactions
      contemplated hereby.

     

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

     

    4.3 Non-solicitation
      of Employees.
      Until
      the fifth anniversary of the Closing Date (the "Non-Solicitation
      Period"),
      neither the Sellers,
      the
Principals,
      nor any affiliate thereof, shall, directly or indirectly, for itself or for
      any
      other person, firm, corporation, partnership, association or other entity,
      attempt to employ or enter into any contractual arrangement with any employee
      or
      former employee of either of the Sellers, unless such employee or former
      employee has not been employed by Buyer for a period in excess of one
      year.

     

    
      
        
        

      

      
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    4.4 Non-Competition. Until
      the
      fifth anniversary of the Closing Date (the "Non-Compete
      Period"),
      neither the Sellers, the Principals, nor any affiliate thereof, shall directly
      or indirectly, engage in the Business or any business comparable to or
      competitive with the Business, or have any interest in or engage in any
      transaction with, any sole proprietorship, partnership, corporation (other
      than
      the Buyer or any of its affiliates) or business or any other person or entity
      (whether as an employee, officer, director, partner agent, security holder,
      creditor, consultant or otherwise) that directly or indirectly engages in the
      Business (or any aspect thereof), or any business comparable to or competitive
      with the Business, in the states of Illinois, Maryland, Connecticut,
      Massachusetts, New Jersey, Pennsylvania or New York; provided, however,
      that
      nothing contained herein shall be deemed to prevent or restrict the Sellers,
      the
      Principals, or their affiliates, from owning up to 1% of the shares of any
      class
      of capital stock of any corporation whose shares are listed on a national
      securities exchange or are regularly traded in the over-the-counter market
      so
      long as neither the Sellers, the Principals, nor their respective affiliates
      actively participate or engage in the conduct of the business of any such other
      corporation.
      Notwithstanding any of the foregoing to the contrary, it is understood and
      agreed that the Principals may continue their "NeedMyDoctor" business as
      currently being conducted, as long as NeedMyDoctor does not enter into the
      TAS
      Business or the PhoneScreen Business and as long such continuation does not
      otherwise breach any of their obligations under this Agreement. For the sake
      of
      clarity, it is hereby understood and agreed that certain NeedMyDoctor customers
      utilize various providers of telephone answering services. The Principals hereby
      agree that they will, and will cause NeedMyDoctor to, refer all such customers
      who are seeking a provider of telephone answering services to the Buyer or
      its
      affiliates. In addition, it is hereby understood and agreed, that NeedMyDoctor
      shall not refer any of its customers to a provider of telephone answering
      services other than the Buyer or its affiliates (provided, however, that if
      after such initial referral, a customer requests a referral to a service
      provider in the same geographical region as the cutomer, and neither Buyer
      nor
      its affiliates provide such service in such region, the Principals may then
      refer such customer to another regional service provider), and that any such
      referral shall be deemed to be a breach of the provisions of this Section
      4.4.

     

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

    

    
      
        
        

      

      
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    4.5 Public
      Statements.
      From
      and after the date hereof neither Buyer, on the one hand, nor the Sellers or
      the
      Principals, on the other hand, shall, or permit any affiliate thereof to, either
      make, issue or release any press release or any oral or written public
      announcement or statement concerning or with respect to, or acknowledgment
      of
      the existence of, or reveal the terms, conditions and status of the transactions
      contemplated hereby, without the prior written consent of the other party or
      parties hereto, as the case may be (which consent shall not be unreasonably
      withheld or delayed), unless such announcement is required by law or a
      governmental authority, in which case the other parties shall be given notice
      of
      such requirement prior to such announcement and the parties shall consult with
      each other as to the scope and substance of such disclosure. Notwithstanding
      the
      foregoing, the Sellers and the Principals understand and agree that Buyer's
      ultimate parent company will file a Form 8-K with the U.S. Securities and
      Exchange Commission in connection with the transactions contemplated hereby,
      which shall disclose the items as required by such Form 8-K.

     

    4.6 Use
      of
      Name.
      As of
      the Closing Date, MediConnect shall cease using the name “MediConnect”, and
      shall (i) file an amendment to its Certificate of Incorporation within two
      business days of the Closing Date, changing its name to Sameh Enterprises,
      Inc.,
      and (ii) terminate any and all of its assumed name filings. As of the Closing
      Date, Phone Screen shall cease using the name “Phone Screen” or words similar
      thereto, and (i) shall file an amendment to its Certificate of Incorporation
      with two business days of the Closing Date, changing its name to Lifshitz
      Enterprises, Inc., (ii) terminate any and all of its assumed name
      filings.
      Any
      future payments due hereunder shall be made to Sellers under their new names,
      as
      such corporate name may be amended from time to time.

     

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

     

    4.8 Other
      Actions.
      Each of
      the parties hereto hereby agree that from and after the date hereof they shall
      use all reasonable efforts to: (i) take, or cause to be taken, all actions,
      (ii)
      do, or cause to be done, all things, and (iii) execute and deliver all such
      documents, instruments and other papers, as in each case may be necessary,
      proper or advisable under applicable laws, or reasonably required in order
      to
      carry out the terms and provisions of this Agreement and to consummate and
      make
      effective the transactions contemplated hereby, and to vest in Buyer title
      to
      the Purchased Assets, free and clear of all Liens. In addition, each of the
      Sellers and the Principals will cooperate with Buyer and use their best efforts
      to cause the conditions to Buyer's obligation to close the transactions
      contemplated hereunder to be satisfied (including, without limitation, the
      execution and delivery of all agreements contemplated hereunder to be executed
      and delivered) on or prior to the Closing Date.
      The
      obligations set forth above shall be subject to a ten (10) day cure period
      from
      receipt by Sellers of a written notice of a breach of such
      obligations.

     

    
      
        
        

      

      
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    4.9 Payment
      of Payables.
      Following the Closing Date, each of the Sellers will promptly pay any
      outstanding Payables relating to their respective operations, but in no event
      later than 15 days from the Closing Date.
      The
      obligations set forth above shall be subject to a ten (10) day cure period
      from
      receipt by Sellers of a written notice of a breach of such
      obligations.

     

    4.10 Gross
      Revenues Statements.
      As soon
      as reasonably practicable, but no later than forty-five (45) days after the
      Closing Date, each of the Sellers shall provide to Buyer with (i) unaudited
      balance sheets of each Seller as of November 30, 2006, and unaudited statements
      of income of each Seller for the 11 month period ended November 30, 2006
      (collectively, the "2006
      Financial Statements"),
      together with a compilation report of the Sellers' independent accountants
      with
      respect to such 2006 Financial Statements, and (ii) a statement of each such
      Sellers' Gross Revenues for the period beginning December 1, 2006 through
      December 31, 2006, in each case prepared in accordance with generally accepted
      accounting principles in the United States. Each of the Sellers and the
      Principals shall cooperate fully with the Buyer’s designated registered
      independent accounting firm in connection with the review of the 2006 Financial
      Statements, and shall cooperate fully with the Buyers in connection with the
      preparation of other financial information required by the Buyer in connection
      with any of the Buyer’s ultimate parents’ filings with the United States
      Securities and Exchange Commission.
      Buyer
      shall cooperate with Sellers to the extent necessary with respect to the
      production of the above referenced information, and Sellers' shall not be
      responsible for a breach of this Section to the extent such breach is caused
      by
      Buyer's failure to provide Sellers with the information necessary, and which
      is
      in Buyer's control, to provide the above required information.

     

    4.11 Discharge
      of Liabilities; Sales Taxes.
      Other
      than the Assumed Liabilities, each Seller shall, and each of the Principals
      shall cause each Seller to, perform and discharge all Liabilities relating
      to
      the Business or the Purchased Assets, as required under the terms and conditions
      with respect to such Liabilities. The obligations set forth above shall be
      subject to a ten (10) day cure period from receipt by Sellers of a written
      notice of a breach of such obligations. Each of the Sellers and the Principals
      shall be jointly and severally liable for all sales taxes and other charges
      relating to the Purchased Assets in connection with any sales tax audit or
      other
      taxes due for any period prior to the Closing. Each of the Sellers and the
      Principals shall jointly and severally liable indemnify the Buyer with respect
      to any Damages (as hereinafter defined) due to the failure of either Seller
      to
      discharge any such Liabilities in accordance with this Section.

     

    4.12 Assigned
      Contracts.
      To the
      extent any Assigned Contract for which assignment to Buyer as provided herein
      is
      not permitted without consent of another party, this Agreement shall not
      constitute an assignment thereof if such assignment would constitute a breach
      thereof. Each of the Sellers, the Principals and the Buyer agree to use
      reasonably commercial efforts to obtain consent of such other party to the
      assignment of any such Assigned Contract to Buyer in all cases in which such
      consent is required for such assignment. Until such consent is obtained or
      if it
      is not obtained, each of the Sellers and the Principals shall cooperate with
      Buyer in any reasonable arrangement (such as by agency or sublicense) designed
      to provide the Buyer with the economic benefits under such relevant
      contract.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    4.13 Notice
      of Sales or Purchase of Business Assets.
      Sellers
      and Principals hereby acknowledge that Buyer intends to file, within ten (10)
      days of the Closing Date, Form CBS-1 Notice of Sale or Purchase of Business
      Assets with the Illinois Department of Revenue, with respect to each of the
      Sellers, and each of the Sellers and Principals hereby agrees that it shall
      cooperate with Buyer in the preparation and filing of such notices. In the
      event
      that at any time following the submission of such notices, the Illinois
      Department of Revenue notifies Buyer that is to (i) withhold or set aside any
      amounts, or (ii) remit any amounts to the State of Illinois, then Sellers and
      Principals shall cause such amounts to (A) in the case of (i), be placed in
      escrow within five (5) business days of such notification pursuant to an escrow
      agreement between the Buyer, each of the Sellers and Sellers' counsel as escrow
      agent, it being understood that the escrow agreement shall have such customary
      terms and conditions as attached hereto as Exhibit
      G,
      or (B)
      in the case of (ii), remit such amounts as directed by such notification. In
      the
      event that Sellers' counsel does not agree to enter into such escrow agreement,
      Buyer shall select an escrow agent. Any amounts placed into escrow shall only
      be
      released following receipt of written notice to Buyer by the Illinois Department
      of Revenue of its final determination as to any amounts due to it, as follows:
      any amounts due to the Illinois Department of Revenue shall be released to
      it in
      order to satisfy such liabilities, and the balance shall be released to the
      Sellers in accordance with their written instructions.

     

    Section
      5. Survival
      of Representations and Warranties.
      

     

    5.1 Survival
      of Representations and Warranties of the Sellers and the
      Principals.
      Notwithstanding any right of Buyer to fully investigate the affairs of each
      Seller and notwithstanding any knowledge of facts determined or determinable
      by
      Buyer pursuant to such investigation or right of investigation, Buyer has the
      right to rely fully upon the representations and warranties of each of the
      Sellers and the Principals contained in this Agreement or in any other Purchase
      Document. All such representations and warranties shall survive the execution
      and delivery of this Agreement until the third anniversary hereof, (other than
      the representations and warranties contained in Sections 2.1, 2.2, 2.3, 2.4,
      2.5, 2.7, 2.19, 2.24 and 2.25, which representation shall survive the execution
      and delivery of this Agreement without any time limitations. Covenants shall
      be
      binding and shall survive in accordance with their respective
      terms.

     

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

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    Section
      6. Indemnification.
      

     

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

     

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

     

    (b) Any
      failure by any of the Sellers or the Principals to perform or to comply with
      any
      covenant or condition required to be performed or complied with by such Seller
      or such Principal contained in this Agreement or in any other Purchase
      Document;

     

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

     

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

     

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

     

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

     

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

     

    (c) the
      ownership or operation of the Business or the Purchased assets, to extent
      relating to activities of the Buyer after the Closing Date, except with respect
      to Damages relating to or arising out of the negligence, gross negligence or
      willful misconduct of the Principals.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    6.3 Indemnification
      Procedures.
      

     

    (a) Any
      party
      seeking indemnification hereunder with respect to a claim not involving a third
      party, shall notify the indemnifying party in writing of such claim, including
      a
      detailed accounting describing with specificity the amount of Damages claimed,
      and the indemnifying party shall have fifteen (15) days to respond to such
      claims. During such fifteen (15) day period, any payments due to Sellers by
      Buyer pursuant to this Agreement or the Management Employment Agreements shall
      be tolled to the extent of the Damages so claimed. Promptly after notice to
      an
      indemnified party of any claim or the commencement of any action or proceeding,
      including any actions or proceedings by a third party (hereafter referred to
      as
      "Proceeding"
      or
      "Proceedings"),
      involving any Damage referred to in sections 6.1 and 6.2, such indemnified
      party
      shall, if a claim for indemnification in respect thereof is to be made against
      an indemnifying party pursuant to this Section 6, give written notice to the
      indemnifying party, setting forth in reasonable detail the nature thereof and
      the basis upon which such party seeks indemnification hereunder; provided,
      however,
      that
      the failure of any indemnified party to give such notice shall not relieve
      the
      indemnifying party of its obligations hereunder, except to the extent that
      the
      indemnifying party is actually prejudiced by the failure to give such
      notice.

     

    (b) In
      the
      case of any Proceeding by a third party against an indemnified party, the
      indemnifying party shall, upon notice as provided above, have the right at
      its
      expense to promptly and diligently assume the defense thereof, with counsel
      reasonably satisfactory to the indemnified party, and, after notice from the
      indemnifying party to the indemnified party of its assumption of the defense
      thereof, the indemnifying party shall not be liable to such indemnified party
      for any legal or other expenses subsequently incurred by the indemnified party
      in connection with the defense thereof or for any amounts paid or foregone
      by
      the indemnified party as a result of any settlement or compromise thereof that
      is effected by the indemnified party (without the prior written consent of
      the
      indemnifying party).

     

    (c) Anything
      in this Section 6 notwithstanding, if both the indemnifying party and the
      indemnified party are named as parties or subject to such Proceeding and the
      indemnified party determines with advice of counsel that there may be one or
      more legal defenses available to it that are different from or additional to
      those available to the indemnifying party or that a material conflict of
      interest between such parties may exist in respect of such Proceeding, then
      upon
      written notice by the indemnified party of such determination, the indemnified
      party shall have the right, but not the obligation, to participate at its own
      cost and expense in such defense by counsel of its own choice.

     

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

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    6.4 Right
      to Set-Off.
      Subject
      to Buyer's compliance with the notification requirements set forth in the first
      two sentences of Section 6.3(a) above, Buyer shall have the right, but not
      the
      obligation, to set-off (i) the amount of any and all Damages for which any
      Seller, any Stockholder may
      become liable to Buyer under any provisions of this Agreement, against any
      sums
      otherwise payable to either of the Sellers or, either of the Principals
      hereunder, or under any other document or instrument executed and delivered
      pursuant to this Agreement or contemplated hereby including, without limitation,
      any amounts payable to either of the Sellers or either of the Principals
      pursuant to Section 1.3(d), Section 1.6, Section 1.7 hereof or any amounts
      payable to the Principals pursuant to the Management Employment Agreements;
      provided, however, that with respect amounts payable under Section 1.6 and
      1.7
      hereof or any amounts payable pursuant to the Management Employment Agreements,
      such right of set-off shall be limited to Damages arising out of third party
      claims.  Buyer
      will not exercise any right to set-off until it has given the Sellers or the
      Principals, as the case may be, not less than thirty (30) days notice within
      which period the Sellers and the Principals shall have the right to either
      (i)
      in the case of claim between Buyer and Sellers, pay the amount of the Damages
      proposed by Buyer in cash, or (ii) in the case of a third party claim, settle
      such claim in full with such third party (including appropriate releases)
      reasonably satisfactory to Buyer; provided,
      however,
      that
      during such 30 day time period, any payment obligations of the Buyer under
      this
      Agreement or the Management Employment Agreements, to the extent the Buyer
      has a
      right to set-off against such payments and to the extent of the Damages claimed,
      shall be tolled. The remedies provided herein shall be cumulative and shall
      not
      preclude assertion by any party hereto of any other rights or the seeking of
      any
      other remedies against any other party hereto. No assertion of the right of
      set-off shall impair Buyer’s title in the Purchased Assets or any other of
      Buyer’s rights under this Agreement.

     

    Section
      7. Miscellaneous.
      

     

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

     

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

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    To
      Buyer:

     

    c/o
      American Medical Alert Corp.

    3265
      Lawson Boulevard

    Oceanside,
      New York 111572

    Attention:
      Mr. Jack Rhian

    Facsimile
      No.: (516) 536-5276

     

    with
      a
      copy to:

     

    Moses
      & Singer LLP 

    The
      Chrysler Building

    405
      Lexington Avenue

    New
      York,
      New York 10174

    Attention:
      Allan Grauberd

    Facsimile
      No.: (212) 554-7700

     

    To
      either
      of the Sellers or the Principals:

     

    2722
      Old
      Glenview Road

    Wilmette,
      Illinois 60091

    Attention:
      Janet and Joseph Sameh 

    Facsimile
      No: 847-920-9016 

     

    

    with
      respect to each Seller and each Principal, with a copy to:

     

    David
      B.
      Pogrund

    Stone,
      Pogrund & Korey 

    211
      North
      La Salle Street

    Chicago,
      IL 60601

    Facsimile
      No.: (312) 782-1482 

     

     

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

     

    7.3 Amendment.
      Except
      as otherwise provided herein, no amendment of this Agreement shall be valid
      or
      effective unless in writing and signed by or on behalf of the Buyer, each of
      the
      Sellers and each of the Principals.

     

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

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

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

     

    7.6 Jurisdiction.
      Each of
      the parties hereto hereby irrevocably consents and submits to the exclusive
      jurisdiction of the federal and state courts located in Cook County, Illinois,
      in connection with any claim or dispute arising out of or relating to this
      Agreement or the transactions contemplated hereby, waives any objection to
      venue
      in such courts and agrees that service of any summons, complaint, notice or
      other process relating to such claim or dispute may be effected in the manner
      provided by Section 7.2..

     

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

     

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

     

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

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    7.10 Assignment.
      This
      Agreement and all of the provi-sions hereof shall be binding upon and inure
      to
      the benefit of the parties hereto, their heirs and their respective successors
      and assignees; provided,
      however,
      that
      neither of the Sellers nor the Principals shall assign any of its or their
      respective rights or delegate any duties hereunder without the prior written
      consent of Buyer.

     

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

     

    7.12 Entire
      Agreement.
      This
      Agreement (including all the schedules and exhibits hereto), together with
      the
      Exhibits, Schedules, certificates and other documentation referred to herein
      or
      required to be delivered pursuant to the terms hereof, contains the terms of
      the
      entire agreement among the parties with respect to the subject matter hereof
      and
      supersedes any and all prior agreements, commitments, understandings,
      discussions, negotiations or arrangements of any nature relating
      thereto.

     

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

     

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

     

    

    [Rest
      of page intentionally left blank]

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 
	Sellers:	AMERICAN
              MEDICONNECT, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Janet
              Lifshitz  
	 	
              
Name:
              Janet Lifshitz
	 	Title:
              President

    

    
      	 	 	 
	 	 
	 	PHONE
              SCREEN, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Janet
              Lifshitz 
	 	
              
Name:
              Janet Lifshitz
	 	Title:
              President

    

     

    
      	 	 	 
	 
 	 
 	 
 
	Principals:	By:  	/s/ Janet
              Lifshitz 
	 	
              
Janet
              Lifshitz
	 	 

    

    
      	 	 	 
	 
 	 
 	 
 
	 	By:  	/s/ Joseph
              Sameh
	 	
              
Joseph
              Sameh
	 	 

    

       

    
      	 	 	 
	Buyer: 	AMERICAN
              MEDICONNECT ACQUISITION CORP.
	 
 	 
 	 
 
	 	By:  	/s/ Jack
              Rhian   
	 	
              
Name:
              Jack Rhian
	 	Title:
              President 

    

    

    American
      Medical Alert Corp., a New York corporation, hereby guaranties the performance
      of all of Buyer's payment obligations pursuant to this Agreement, including
      pursuant to Section 6.2 hereof, and affirms all of Buyer's representations
      and
      warranties contained in Sections 3.1 through 3.4.

     

    
      	 	 	 
	 	AMERICAN
              MEDICAL ALERT CORP.
	 
 	 
 	 
 
	 	By:  	/s/ Jack
              Rhian
	 	
              
Name:
              Jack Rhian
	 	Title:
              PresidentUNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 8-K

                                 CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

         Date of Report (Date of earliest event reported): March 27, 2007

                                 B&D Food, Corp.
                                 ---------------
             (Exact name of Registrant as specified in its Charter)

           Delaware                    000-21247          51-0373976
           --------                    ---------          ----------
(State or Other Jurisdiction         (Commission      (I.R.S. Employer
of Incorporation or Organization)    File Number)       Identification No.)

575 Madison Avenue, Suite 1006, New York, New York          10022-2511
--------------------------------------------------          ----------
(Address of Principal Executive Offices)                    (Zip Code)

       Registrant's telephone number, including area code: (212) 937-8456
                                                           --------------

                                 Not Applicable
                                 --------------
          (Former Name or Former Address, if Changed since Last Report)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

|_|   Written  communications  pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

|_|   Pre-commencement  communications  pursuant  to  Rule  14d-2(b)  under  the
      Exchange Act (17 CFR 240.14d-2(b))

|_|   Pre-commencement  communications  pursuant  to  Rule  13e-4(c)  under  the
      Exchange Act (17 CFR 240.13e-4(c))

<PAGE>

Item 5.02         Departure of Directors or Certain Officers; Election of
                  Directors; Appointment of Certain Officers; Compensatory
                  Arrangement of Certain Officers.

March 27, 2007 B&D Food Corporation Inc. ("BDFC") announced today that,
effective March 31, 2007, Yossi Haras will resign his positions as Chief
Financial Officer and secretary of BDFC in order to become the chief financial
officer in another company in Israel, which will require him to commence his new
duties on April 1, 2007. To replace Mr. Haras, BDFC has appointed Daniel Ollech
with effect from March 31, 2007. Daniel Ollech will certify BDFC's annual report
on Form 10K-SB.

Daniel Ollech has served as the Chairman of the Board and President of BDFC
since April 29, 2005. From April 29, 2005 until January 12, 2006, Mr. Daniel
Ollech was also the company's Chief Executive Officer, Treasurer and Secretary.
From 2003 to the present, Daniel Ollech has served as a director of Livorno
Investments S.A., an international holding company with interests in various
world trading companies in the areas of coffee, sugar, and oil. Since 2001,
Daniel Ollech has also been a Director (which in Brazil equates to an executive
officer) of UCS Group, a company which provides financing through factoring and
securitizations. Prior to 2001, Daniel Ollech managed his own investment
portfolio. Daniel Ollech graduated with a degree in marketing from Escola
Superior de Marketing in 1980.

Daniel Ollech and Jacques Ollech, BDFC's Executive Vice President and a
director, are brothers.

Daniel Ollech owns one-third of Livorno Investments, Ltd. to whom BDFC issued a
convertible note in the principal amount of $10,000,000. The note bears interest
at a rate of 8% per annum and principal and interest can be converted at any
time prior to July 8, 2008 into BDFC common stock at a conversion rate of $0.20
per share. On July 15, 2006, in connection with its corporate tax planning, BDFC
signed a management service agreement with L.M.S Livorno Management Services
Ltd. ("LMS"), a subsidiary company of Livorno, pursuant to which LMS will pay
the annual salaries of the Company's President, Vice President, CEO and CFO in
consideration for management fees to be paid to LMS for the year 2006 in the
amount of $650,000.

                                    Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned
hereto duly authorized.

                                               B&D Food Corporation

Dated:  March 27, 2007                         By:  /s/ Yaron Arbell
                                                    --------------------------
                                               Name:  Yaron Arbell
                                               Title:  Chief Executive Officer

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