Document:

Exhibit
      10.6

    

    September
      12, 2007

    

    VIA
      ELECTRONIC MAIL

    

    Robert
      Staats

    Chief
      Accounting Officer

    VoIP,
      Inc.

    151
      So.
      Wymore Rd., Suite 3000

    Altamonte
      Springs, Florida 32714

    E-mail:
      ***@aol.com,
      ***@voiceone.com 

    

    Re:    Convertible
      notes held by Bristol Investment Fund, Ltd.

    

    Dear
      Mr.
      Staats:

    

    Reference
      is hereby made to the following notes (the “Notes”) issued by VoIP, Inc. (the
“Company”) to Bristol Investment Fund, Ltd. (“Bristol”): (1) convertible note in
      the amount of $125,000, with an issue date of July 27, 2007 (but funded on
      April
      17, 2007), and (2) convertible note in the amount of $75,000, with an issue
      date
      of June 19, 2007. The Notes are currently convertible into shares of the
      Company’s common stock at a per share price of $1.60 (the “Conversion Price”),
      which price is subject to anti-dilution adjustment on a full-ratchet basis
      for
      issuances below the Conversion Price.

    

    In
      consideration of Bristol agreeing to forbear collection of payment on the Notes,
      the Company agrees to the following by signing this letter agreement (the
“Letter Agreement”): 

    

    
      	(i)  	
              The
                Company will issue a new convertible note to Bristol in the amount
                of
                $400,000 (the “New Note”) in exchange for the Notes, which shall be due on
                the 1 year anniversary of the date of this Letter Agreement, and
                will
                deliver the originally executed New Note to Bristol within three
                (3)
                business days of the date of this Letter
                Agreement;

            

    

    

    
      	(ii)  	
              The
                New Note will contain all of the same rights and privileges as the
                Notes,
                including but not limited to anti-dilution adjustment on a full-ratchet
                basis for dilutive issuances (such that the Conversion Price shall
                be
                adjusted downward upon any issuance of securities at a price lower
                than
                the Conversion Price occurring on the same day as or anytime after
                the
                date of this Letter Agreement); and

            

    

    

    
      	(iii)  	
              The
                Company understands and acknowledges that shares of common stock
                issuable
                upon conversion of the New Note will be eligible for sale under Rule
                144
                (in accordance with the 1-year holding period under the current rule)
                as
                follows: (a) shares underlying $125,000 of the New Note will be eligible
                for sale under Rule 144 as of April 17, 2008; (b) shares underlying
                $75,000 of the New Note will be eligible for sale under Rule 144
                as of
                June 19, 2008; and (c) shares underlying $200,000 of the New Note
                will be
                eligible for sale under Rule 144 as of the 1 year anniversary of
                the date
                of this Letter Agreement; PROVIDED FURTHER that the Company agrees
                to
                instruct its counsel to provide a legal opinion confirming the 144
                eligibility of the shares underlying the New Note as set forth
                herein.

            

    

     

    
      If
        the
        Company fails to comply with paragraph (iii) above, the Company shall be
        in
        default under the New Note and Bristol may immediately demand payment and
        pursue
        all available remedies.

    

     

    10990
      Wilshire Blvd., Suite 1410

    Los
      Angeles, California 90024

    Tel:
      (310) 696-0333 Fax: (310) 696-0334

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

     

    Robert
      Staats

    VoIP,
      Inc.

    September
      12, 2007

    Page
      Two

     

    Please
      sign below to indicate your acknowledgement and agreement to the terms outlined
      herein and return a signed copy of this Letter Agreement via electronic mail
      in
      PDF form to ***@bristolcompanies.net
      or via
      facsimile to ***, Esq. at ***. 

    

    Each
      party may sign identical counterparts of this Letter Agreement with the same
      effect as if the parties signed the same document. A copy of this Letter
      Agreement signed by a party and delivered by facsimile transmission or
      electronic transmission of a file in PDF format to the other party shall have
      the same effect as the delivery of an original of this Agreement containing
      the
      original signature of such party.

    

    The
      parties hereto have caused this Letter Agreement to be duly executed by their
      respective authorized signatories as of the date first indicated
      above.

     

     

    
      	
              VOIP,
                INC.

            	 	
              BRISTOL
                INVESTMENT FUND, LTD.

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	
              /s/
                Robert Staats

            	 	
              By:

            	
              /s/
                Paul Kessler

            
	
              Name:

            	
              Robert
                Staats

            	 	
              Name:

            	
              Paul
                Kessler

            
	
              Title:

            	
              Chief
                Accounting Officer

            	 	
              Title:

            	
              Director

            

    

     

    
      10990
        Wilshire Blvd., Suite 1410

      Los
        Angeles, California 90024

      Tel:
        (310) 696-0333 Fax: (310) 696-0334Exhibit
      10.1

     

    THIS
      AGREEMENT is made as of September 11, 2007.

     

    BETWEEN:

     

    NOMOS
      Corporation, 

    20200
      Sunburst Street, 

    Chatsworth,
      California 

    91311

     

    (the
      “Vendor”);

     

    AND

     

    North
      American Scientific, Inc., 

    20200
      Sunburst Street, 

    Chatsworth,
      California 

    91311

     

    (the
      “Parent Company”);

     

    AND

     

    Best
      Medical International, Inc. 

    7643
      Fullerton Road

    Springfield,
      Virginia 22153

     

    (the
      “Purchaser”).

     

    WHEREAS:

     

    A. The
      Vendor owns and operates the Business (as defined in Section 1.1), and owns
      or
      holds under lease (as set out herein) the assets used in connection with the
      Business; 

     

    B. The
      Vendor owns and wishes to sell, and the Purchaser wishes to purchase, the Assets
      (as defined in Section 1.1) and the Business as a going concern on the terms
      and
      conditions set forth in this Agreement; 

     

    C. The
      Vendor desires to assign to the Purchaser, and the Purchaser desires to assume,
      the Assumed Liabilities (as defined in Section 1.1); and

     

    D. The
      Parent Company is the registered and beneficial owner of all the issued and
      outstanding shares of the Vendor and as such will benefit from the transactions
      contemplated by this Agreement, and wishes to indemnify the Purchaser against
      certain losses in connection with the sale of the Assets and the
      Business;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises and
      of
      the covenants, agreements, representations and warranties set out below, the
      parties covenant and agree as follows:

     

    1. Interpretation

     

    1.1. Definitions

     

    In
      this
      Agreement, unless there is something in the subject matter or context
      inconsistent therewith or unless otherwise specifically provided:

     

    (a) “Accounts
      Receivable” means all accounts receivable, trade accounts, notes receivable and
      other debts owing to the Vendor in connection with or arising out of the
      Business, and the full benefit of all security for such accounts, notes and
      debts excluding any credit balances contained within the accounts receivable
      in
      the Vendor’s Financial Statements, but only to the extent that any such credit
      balance is not offset by amounts due from the customer which is due such credit
      balance from the Vendor;

     

    (b) “Affiliate”
      means, with respect to any Person, any other Person controlling, controlled
      by
      or under common control with, such Person, with “control” for such purpose
      meaning the possession, directly or indirectly, of the power to direct or cause
      the direction of the management and policies of a Person, whether through the
      ownership of voting securities or voting interests, by contract or
      otherwise;

     

    (c) “Agreement”
      means this Agreement, including its recitals and schedules, as amended and
      supplemented;

     

    (d) “Assets”
      means all properties and assets of the Vendor of every kind and description
      (whether real, personal, mixed, tangible or intangible) relating to the Business
      wherever located (but not including the Excluded Assets), including, without
      limitation:

     

    (i) subject
      to the terms of the Lease, the Vendor's interest in the Leasehold Improvements
      and the Leased Premises;

     

    (ii) the
      Vendor's right, title and interest in the Contracts;

     

    (iii) the
      Accounts Receivable;

     

    (iv) the
      Inventory;

     

    (v) the
      Prepaid Expenses;

     

    (vi) the
      Computer Hardware;

     

    (vii) the
      Computer Software;

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

    (viii) the
      Office Equipment;

     

    (ix) the
      Vehicles;

     

    (x) the
      Manufacturing Equipment;

     

    (xi) the
      Personal Property;

     

    (xii) the
      Intellectual Property;

     

    (xiii) the
      Goodwill;

     

    (xiv) the
      Customer Lists;

     

    (xv) the
      Vendor's interest in the Permits; 

     

    (xvi) the
      Books
      and Records; and

     

    (xvii) all
      outstanding and issued stock of the Vendor’s subsidiaries limited to the
      Vendor’s German and Chinese operations as set forth in Schedule W (the
“Stock”);

     

    (e) “Assumed
      Liabilities” is defined in Section 2.5.;

     

    (f) “Audited
      Financial Statements” means the Parent Company's audited financial statements,
      together with the auditor's report, the notes thereto and supporting schedules,
      consisting of statements of income and retained earnings for the period ending
      on, and balance sheets as at October 31 in each of the years 2005 to 2006
      inclusive, a copy of each of which is included in Schedule A;

     

    (g) “Benefit
      Plan” means any pension, retirement, deferred compensation, COBRA,
      profit-sharing, savings, disability, medical, dental, health, life, death
      benefit, stock option, stock purchase, bonus, incentive, termination and
      severance pay or other employee benefit plan, trust, arrangement, contract,
      agreement, policy or commitment, whether or not any of the foregoing is funded
      or insured, and whether written or oral, formal or informal, which is intended
      to provide or does in fact provide benefits to any or all Employees or former
      Employees, and to which the Vendor is a party or by which the Vendor is bound
      or
      with respect to which the Vendor has any liability or potential
      liability;

     

    (h) “Books
      and Records” means all files, ledgers and correspondence, all price and supplier
      lists, all manuals, reports, texts, notes, engineering, environmental and
      feasibility studies, data, specifications, memoranda, invoices, receipts,
      accounts, accounting records and books, financial statements and financial
      working papers and all other records and documents of any nature or kind
      whatsoever, including, without limitation, those recorded, stored, maintained,
      operated, held or otherwise wholly or partly dependent on discs, tapes and
      other
      means of storage, including, without limitation, any electronic, magnetic,
      mechanical, photographic or optical process, whether computerized or not, and
      all software, passwords and other information and means of or for access
      thereto, belonging to the Vendor or Parent Company and relating to the Business
      or any of the Assets, but not including Customer Lists;

     

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

    (i) “Breach”
      means any Material breach of a representation and warranty of the Vendor
      contained in this Agreement.

     

    (j) “Business”
      means all business currently carried on by the Vendor, namely the NOMOS
      Radiation Oncology Division business currently carried on by the Vendor, but
      not
      including any other business conducted by the Parent Company or its other
      subsidiaries; 

     

    (k) “Business
      Day” means any day other than a Saturday, Sunday or any statutory holiday in the
      USA; 

     

    (l) “Charter
      Documents” means articles, articles of incorporation, bylaws and any other
      constituted document of a corporate entity;

     

    (m) “Closing”
      means the completion of the sale and purchase of the Assets and the Business
      in
      accordance with Article 9;

     

    (n) “Closing
      Date” means September 14, 2007, or such other date as may be agreed upon in
      writing by the Vendor and the Purchaser or by their respective
      counsel;

     

    (o) “Code”
      means the Internal Revenue Code of 1986, as amended.

     

    (p) “Computer
      Hardware” means all the computer hardware owned by the Vendor and used by the
      Vendor in the Business, including, without limitation, the hardware listed
      in
      Schedule Q;

     

    (q) “Computer
      Software” means all the computer software, including, without limitation,
      application software, object codes and source codes, used by the Vendor in
      the
      Business, including, without limitation, the software and codes described in
      Schedule R, and, with respect to any of the same not owned by the Vendor,
      includes all rights of the Vendor under license agreements and other agreements
      or instruments relating thereto, including, without limitation, those license
      agreements, other agreements and instruments described in Schedule
      R;

     

    (r) “Consent”
      means any approval, consent, ratification, waiver or other
      authorization; 

     

    (s) “Contemplated
      Transactions” means all of the transactions contemplated by this
      Agreement;

     

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

    (t) “Contracts”
      means all contracts, agreements, instruments, leases, indentures and
      commitments, whether written or oral, relating to the Business or to any of
      the
      Assets to which the Vendor is a party without limitation including but not
      limited to non-competition, non-solicitation and confidentiality
      agreements;

     

    (u) “Customer
      Lists” means all lists of customers and potential customers of the Vendor
      pertaining to the Business, including names, addresses, telephone and fax
      numbers, e-mail addresses, details of sales and other relevant information
      relating thereto; 

     

    (v) “Disclosure
      Letter” means that disclosure letter delivered by Vendor to the Purchaser
      concurrently with execution and delivery of this Agreement in the form of
      Schedule 1.1(v);

     

    (w) “Employee
      Agreements” is defined in Section 8.1;

     

    (x) “Employees”
      means employees of the Vendor employed in the Business;

     

    (y) “Encumbrance”
      means, whether or not registered or registrable or recorded or recordable,
      and
      regardless of how created or arising:

     

    (i) a
      mortgage, assignment of rent, lien, encumbrance, adverse claim, charge,
      execution, title defect, security interest, hypothec or pledge, whether fixed
      or
      floating, against assets or property (whether real, personal, mixed, tangible
      or
      intangible), hire-purchase agreement, conditional sales contract, title
      retention agreement, equipment trust or financing lease, and a subordination
      to
      any right or claim of others in respect thereof;

     

    (ii) a
      claim,
      interest or estate against or in assets or property (whether real, personal,
      mixed, tangible or intangible), including, without limitation, an easement,
      right-of-way, servitude or other similar right in property granted to or
      reserved or taken by any Person;

     

    (iii) an
      option
      or other right to acquire, or to acquire any interest in, any assets or property
      (whether real, personal, mixed, tangible or intangible); and

     

    (iv) any
      other
      encumbrance of whatsoever nature and kind against assets or property (whether
      real, personal, mixed, tangible or intangible);

     

    (z) “Environment”
      means the air immediately around, and the water in, and the soil under and
      adjacent to, any of the lands on which the Leased Premises are
      situate;

     

    (aa) “Environmental
      Protection Laws” means all statutes, orders, bylaws, standards, permits, laws,
      regulations, treaties, conventions, ordinances, codes, policies, guidelines,
      directives, decisions, licenses, consents, authorizations, certificates and
      lawful requirements (including, without limitation, of any Governmental
      Authority) relating to protection of the Environment, health and safety of
      the
      workplace, health, or transportation of dangerous goods; 

     

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

    (bb) “Excluded
      Assets” means:

     

    (i) all
      cash
      on hand or in banks or other depositories, including the cash in the Vendor’s
      subsidiaries;

     

    (ii) all
      credits and benefits, including without limitation any Tax credits or benefits,
      insurance benefits, and any indemnification rights, escrows and other assets,
      relating to any Retained Liabilities;

     

    (iii) rights
      accruing to the Vendor under this Agreement or any agreement relating
      thereto;

     

    (iv) the
      corporate seals, certificate of incorporation, minute books, stock books, Tax
      returns, books of account or other records having to do with the corporate
      organization of the Vendor except the Vendor’s Chinese and German
      subsidiaries;

     

    (v) all
      personnel records and other records that Vendor is required by law to retain
      in
      its possession; 

     

    (vi) all
      insurance policies held by or for the Vendor and any benefits or proceeds paid
      or payable thereunder; 

     

    (vii) the
      Excluded Prepaids; and

     

    (viii) the
      assets listed in Schedule C;

     

    (cc) “Excluded
      Prepaids” is defined in Section 1.1(bbb);

     

    (dd) “Financial
      Statements” means the Audited Financial Statements and the Unaudited Financial
      Statements; 

     

    (ee) “Goodwill”
      means the goodwill attributable to the Business and the exclusive right of
      the
      Purchaser to represent itself as carrying on the Business in continuation of
      and
      as successor to the Vendor, and the right to use any words indicating that
      the
      Business is so carried on, including the right to use the name “NOMOS” or any
      variation thereof as part of the name of, or in connection with, the Business
      to
      be carried on by the Purchaser; 

     

    (ff) “Governmental
      Authority” means any federal, state, municipal, county or regional government or
      governmental or regulatory authority, domestic or foreign, and includes any
      department, commission, bureau, board, administrative agency or regulatory
      body
      of any of the foregoing; 

     

    
      
        
        

      

      
        -
          6 -

        
          

        

      

      
        
        

      

    

    (gg) “Governmental
      Authorization” means any Consent, license, registration or permit issued,
      granted, given or otherwise made available by or under the authority of any
      Governmental Authority or pursuant to any Legal Requirement;

     

    (hh) “Hazardous
      Materials” means any contaminants, pollutants, hazardous, corrosive or toxic
      substances, flammable materials, explosive materials, radioactive materials,
      microwaves, waste, urea formaldehyde, asbestos materials, hydrocarbon
      contaminants, noxious substances, compounds known as chlorobiphenyls,
      deleterious substances, special wastes, dangerous goods or substances and any
      other substances or materials that are identified or described in or defined
      by
      any Environmental Protection Law as being substances or materials the storage,
      manufacture, disposal, treatment, generation, use, transportation or remediation
      of which, or release of which into or concentration of which in the Environment,
      is prohibited, controlled, regulated or licensed by any Governmental Authority
      or under any Environmental Protection Law;

     

    (ii) “Intellectual
      Property” means all rights, title, interest and benefit of the Vendor in and to
      intellectual property of every nature, whether registered or unregistered,
      including, without limitation, all websites and website names, copyrights,
      patents, patent rights, trade-marks, certification marks and industrial designs,
      applications for any of the foregoing, trade names, brand names, trade secrets,
      proprietary manufacturing information and know-how, instruction manuals,
      inventions, inventors' notes, research data, unpatented blue prints, drawings
      and designs, formulae, calculations, processes, prototypes, technology and
      marketing rights, together with all rights under license agreements, sublicense
      agreements, strategic alliances, development agreements, technology transfer
      agreements and other agreements or instruments relating to any of the foregoing,
      that are owned by the Vendor or used in connection with the Business or Assets,
      including, without limitation, the trade-marks, copyrights, patents, licenses
      and agreements described in Schedule D-1; but not including any intellectual
      property owned by the Parent Company, including, without limitation, the
      intellectual property described in Schedule D-2; 

     

    (jj) “Interim
      Balance Sheet” means Vendor’s balance sheet as of the date of the Unaudited
      Financial Statements.

     

    (kk) “Inventory”
      means the goods, merchandise, stock-in trade and inventories of raw materials,
      work in progress and finished goods of or pertaining to the Business;

     

    (ll) “IRS”
      means the Internal Revenue Service;

     

    (mm) “Knowledge”
      of the Vendor or the Parent Company, or words of similar import, including
      without limitation, the Vendor or the Parent Company being aware of a fact
      or
      circumstance, shall mean and refer to the actual knowledge as of the date of
      this Agreement, after reasonable inquiry, of John B. Rush, L. Michael Cutrer,
      James W. Klingler, Michael Ryan and Robert Hill;

     

    
      
        
        

      

      
        -
          7 -

        
          

        

      

      
        
        

      

    

    (nn) “Leased
      Premises” means the premises which are leased by the Vendor as lessee, as more
      particularly set out in Schedule E; 

     

    (oo) “Leasehold
      Improvements” means all the leasehold improvements of the Vendor in the Leased
      Premises;

     

    (pp) “Lease”
      means the lease described in Schedule E;

     

    (qq) “Legal
      Requirement” means any federal, state, local, municipal, foreign, international,
      multinational or other constitution, law ordinance, principle of common law,
      code regulation, statute or treaty.

     

    (rr) “Liability”
      means with respect to any Person, any liability or obligation of such Person
      of
      any kind, character or description, whether known or unknown, absolute or
      contingent, whether or not accrued, disputed or undisputed, liquidated or
      unliquidated, secured or unsecured, joint or several, due or to become due,
      vested or unvested, executory, determined, determinable or
      otherwise.

     

    (ss) “Manufacturing
      Equipment” means all machinery, plant, equipment, parts, fixtures, tools and
      accessories of the Vendor pertaining to the Business and used in the manufacture
      and packaging of goods for sale by the Vendor in the Business, including,
      without limitation, those items listed in Schedule S;

     

    (tt) “Material”
      means an event(s), occurrence(s), breach(es) or other violations that amounts
      to
      or will amount to damages in the aggregate of $100,000.00; 

     

    (uu) “Material
      Contracts” means agreements, contracts, leases, indentures, commitments,
      Material Licenses and instruments described in:

     

    (i) Sections
      3.10(a)(i) to (iv) inclusive; and 

     

    (ii) Schedule
      G;

     

    (vv) “Material
      Licenses” means the license agreements between the Vendor or Parent Company and
      the licensors relating to WARF, University of Texas, Journyx, Doors, Agile,
      SAMM
      (Sales Logix) and NED (Macola)

     

    (ww) “Office
      Equipment” means all office equipment and furniture used by the Vendor in
      connection with the Business including, without limitation, the equipment
      described in Schedule H-1, but not including the office equipment described
      in Schedule H-2;

     

    (xx) “Permits”
      means all permits, licenses, registrations and other rights of the kinds
      described in Section 3.3(a) entered into or obtained by the Vendor with respect
      to the Business or any of the Assets, including, without limitation, the
      permits, licenses, registrations and other rights described in Schedule
      F;

     

    
      
        
        

      

      
        -
          8 -

        
          

        

      

      
        
        

      

    

    (yy) “Permitted
      Encumbrances” means those Encumbrances described in Schedule I; 

     

    (zz) “Person”
      means an individual, legal personal representative, corporation, body corporate,
      firm, partnership, trust, trustee, syndicate, joint venture, unincorporated
      organization or Governmental Authority; 

     

    (aaa) “Personal
      Property” means, to the extent not forming part of the Leasehold Improvements,
      Manufacturing Equipment, Vehicles, Office Equipment, Inventory and Computer
      Hardware, all equipment, furniture, furnishings, accessories, motors, tools,
      utensils, stores, supplies, and parts of every nature and kind and other
      tangible personal property owned by the Vendor and used in the Business,
      including, without limitation, the items of personal property described in
      Schedule J, but excluding any Excluded Assets, and any personal property which
      is the subject of a lease agreement; 

     

    (bbb) “Prepaid
      Expenses” means all prepaid expenses including any and all trade deposits (but
      not bank deposits) of the Vendor attributable to the Business or the Assets
      including, without limitation, amounts paid for licensing fees, property Taxes,
      telephone rentals, utilities and rentals, certain of which are set forth in
      Schedule W. Prepaid Expenses shall not include any prepaid insurance (or refunds
      relating thereto), the COBRA receivable as reflected on the books of Vendor, or
      Prepaid Rent (the “Excluded Prepaids”);

     

    (ccc) “Prepaid
      Rent” is defined in Section 2.7; 

     

    (ddd) “Proceeding”
      is defined in Section 3.9(a);

     

    (eee) “Product
      Liability Insurance” is defined in Section 12.11;

     

    (fff) “Purchase
      Price” means the purchase price for the Business and the Assets, as set out in
      Section 2.2;

     

    (ggg) “Purchaser”
      means Best Medical International, Inc.; 

     

    (hhh) “Retained
      Liabilities” is defined in Section 2.5;

     

    (iii) ”Stock”
      is defined in Section 1.1(d)(xvii); 

     

    (jjj) “Tax”
or
      “Taxes” shall mean all taxes, charges, fees, imposts, levies or other
      assessments, including, without limitation, all net income, gross receipts,
      capital, sales, use, ad valorem, value added, transfer, franchise, profits,
      inventory, capital stock, license, withholding, payroll, employment, social
      security, unemployment, excise, severance, stamp, occupation, property and
      estimated taxes, customs duties, fees, assessments and charges of any kind
      whatsoever;

     

    
      
        
        

      

      
        -
          9 -

        
          

        

      

      
        
        

      

    

    (kkk) “Unaudited
      Financial Statements” means the Vendor's unaudited financial statements,
      consisting of statements of income and retained earnings for the 9 month period
      ended on, and the balance sheet as at, July 31, 2007 included in Schedule
      A;

     

    (lll) “Vehicles”
      means all automobiles, trucks, trailers, tractors and other vehicles owned
      by
      the Vendor and used in the Business, including, without limitation, those
      described in Schedule T; and

     

    (mmm) “Vendor’s
      Commission Plans” is defined in Section 6.1(a)(vii).

     

    1.2. Currency

     

    Except
      where otherwise expressly provided, all monetary amounts in this Agreement
      are
      stated and shall be paid in US currency.

     

    1.3. Governing
      Law

     

    This
      Agreement and the agreements contemplated hereby shall be construed in
      accordance with and governed by the laws and the courts of the Commonwealth
      of
      Virginia.

     

    1.4. Schedules

     

    The
      following are the Schedules which are attached to and form part of this
      Agreement:

     

    Schedule
      A-Financial Statements

    Schedule
      B-Employees

    Schedule
      C-Excluded Assets

    Schedule
      D-Intellectual Property

    Schedule
      E-Leased Premises and Leases

    Schedule
      F-Permits

    Schedule
      G-Material Contracts

    Schedule
      H-Office Equipment

    Schedule
      I-Permitted Encumbrances

    Schedule
      J-Personal Property

    Schedule
      K-Customers and Suppliers

    Schedule
      L-Bank Facilities

    Schedule
      M-Litigation

    Schedule
      N-Existing Employment Contracts

    Schedule
      O-Benefit Plans

    Schedule
      P- Assumption Agreement

    Schedule
      Q-Computer Hardware

    Schedule
      R-Computer Software

    Schedule
      S-Manufacturing Equipment

    Schedule
      T-Vehicles

    
      
        
        

      

      
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          10 -

        
          

        

      

      
        
        

      

    

    Schedule
      U-Product Warranties

    Schedule
      V-Non-Competition Agreement

    Schedule
      1.1(v) - Disclosure Letter

    Schedule
      2.5(a)(i) - Warranty Agreements

    Schedule
      2.5(a)(ii) - Vendor Contracts

    Schedule
      2.5(a)(vii) - Certain Additional Assumed Liabilities

    Schedule
      2.5(b)(xiv) - Bonuses

    Schedule
      LR - Legal Requirements

    Schedule
      GA - Government Authorization

    Schedule
      3.2(l) - Non-Assignable Contracts

    Schedule
      3.3 - Jurisdictions in which Business is carried on

    Schedule
      3.6 - Insurance

    Schedule
      6.1(a)(vii) - Vendor’s Commission Plans

    Schedule
      8.1 - Employee Agreements

    Schedule
      12.11 - Product Liability Insurance

    Schedule
      W - Certain Assets: Accounts Receivable as at August 31, 2007, Prepaid Expenses,
      and Stock

    

    2. Purchase
      of Assets

     

    2.1. Purchase
      and Sale

     

    Based
      on
      the representations and warranties contained in this Agreement, the Vendor
      agrees to sell, assign and transfer to the Purchaser and the Purchaser agrees
      to
      purchase from the Vendor, on the Closing Date, the Assets and the Business,
      effective as of and from the Closing, free and clear of all Encumbrances other
      than Permitted Encumbrances, for the price and in accordance with and subject
      to
      the terms and conditions set forth in this Agreement.

     

    2.2. Purchase
      Price

     

    The
      Purchase Price for the Business and Assets will be $500,000.00.

     

    2.3. Payment
      of Purchase Price

     

    The
      Purchase Price for the Business and Assets shall be paid by the Purchaser to
      the
      Vendor at the Closing by wire transfer to an account designated by the
      Vendor.

     

    2.4. Risk
      of Loss and Damage Prior to Closing

     

    Risk
      of
      loss of the Assets shall pass to the Purchaser at the Closing, and the Vendor
      shall bear all risk of loss or damage to, or destruction of, the Assets until
      the Closing and the Purchaser shall bear all such risk of loss, damage and
      destruction after the Closing. If, prior to the Closing, any Assets are lost,
      damaged or destroyed and such loss, damage or destruction has not been
      completely replaced, repaired or otherwise rectified by the Closing, and if
      the
      Closing takes place, the Purchase Price will be reduced by an amount equal
      to
      the aggregate of:

     

    
      
        
        

      

      
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          11 -

        
          

        

      

      
        
        

      

    

     

    (a) the
      insurance proceeds paid to the Vendor or the Parent Company in respect of such
      loss, damage or destruction; and 

     

    (b) the
      aggregate of all deductible amounts under the insurance policies against which
      a
      payment has been made under Section 2.4(a) above in respect of such loss, damage
      or destruction;

     

    less:

     

    (c) the
      amount actually expended by or on behalf of the Vendor or the Parent Company
      in
      the repair, replacement or other rectification thereof.

     

    The
      Vendor shall consult with the Purchaser prior to making a claim against any
      applicable insurance policy and shall act reasonably and bona fide in respect
      thereof and in a manner consistent with the Purchaser's interest in the Business
      and the Assets. The Vendor shall at Closing make, or cause to be made, the
      necessary claims under all applicable insurance policies and shall assign to
      the
      Purchaser all remaining insurance proceeds, including business interruption
      insurance proceeds, which are or may become receivable by the Vendor or the
      Parent Company in respect of any such loss, damage or destruction. Subject
      to
      the limitations contained in Article 12, the Vendor shall indemnify and save
      harmless the Purchaser from and against the amount of any denied insurance
      claim
      in respect of such loss, damage or destruction where the denial is due to the
      negligence or willful misconduct of the Vendor.

     

    2.5. Liabilities

     

    (a) Assumed
      Liabilities. On and effective as of the Closing Date, Purchaser shall assume
      and
      agree to discharge only the following Liabilities of Vendor (the “Assumed
      Liabilities”):

     

    (i) any
      Liability to Vendor's customers under written warranty agreements and extended
      service agreements substantially in the forms disclosed in Schedule 2.5(a)(i)
      given by Vendor to its customers in the ordinary course of business prior to
      the
      Closing Date (other than any Liability arising out of or relating to a Breach
      that occurred prior to the Closing Date);

     

    (ii) any
      Liability arising after the Closing Date under the Vendor Contracts described
      in
      Schedule 2.5(a)(ii) (other than any Liability arising out of or relating to
      a
      Breach that occurred prior to the Closing Date);

     

    (iii) any
      Liability arising after the Closing Date under the Lease;

     

    
      
        
        

      

      
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          12 -

        
          

        

      

      
        
        

      

    

    (iv) any
      Liability to Vendor's customers incurred by Vendor in the ordinary course of
      business for orders outstanding as of the Closing Date reflected on Vendor's
      books (other than any Liability arising out of or relating to a Breach that
      occurred prior to the Closing Date); 

     

    (v) any
      Liability assumed by the Purchaser under Section 8.2 or Section
      8.3;

     

    (vi) any
      Liability arising after the Closing Date under the Contracts; or

     

    (vii) any
      Liability of Vendor described in Schedule 2.5(a)(vii).

     

    (b) Retained
      Liabilities. The Retained Liabilities shall remain the sole responsibility
      of
      and shall be retained, paid, performed and discharged solely by Vendor.
“Retained Liabilities” shall mean every Liability of Vendor other than the
      Assumed Liabilities, including:

     

    (i) any
      trade
      account payable reflected on the Interim Balance Sheet that remains unpaid
      as of
      the Closing Date including any credit balances contained in the accounts
      receivable of the Vendor’s Financial Statements but only to the extent that any
      such credit balance is not offset by amounts due from the customer which is
      due
      such credit balance from the Vendor;

     

    (ii) any
      trade
      account payable incurred by Vendor in the ordinary course of business between
      the date of the Interim Balance Sheet and the Closing Date that remains unpaid
      as of the Closing Date;

     

    (iii) any
      Liability arising out of or relating to products, software or services of Vendor
      to the extent manufactured or sold prior to the Closing Date (a “Product
      Liability Matter”), except to the extent the same constitutes an Assumed
      Liability under Section 2.5(a)(i) or (ii);

     

    (iv) any
      Liability under any Contract assumed by Purchaser pursuant to Section 2.5(a)
      that arises after the Closing Date but that arises out of or relates to any
      Breach that occurred prior to the Closing Date;

     

    (v) any
      Liability of Vendor or Parent Company for Taxes, including (A) any Taxes arising
      as a result of Vendor's operation of its business or ownership of the Assets
      prior to the Closing Date, (B) any Taxes that will arise as a result of the
      sale
      of the Assets pursuant to this Agreement and (C) any deferred Taxes of any
      nature, in each case relating to any period prior to the Closing
      Date;

     

    (vi) any
      Liability of Vendor under any Contract not assumed by Purchaser under Section
      2.5(a), including any Liability arising out of or relating to Vendor's credit
      facilities or any security interest related thereto;

     

    
      
        
        

      

      
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          13 -

        
          

        

      

      
        
        

      

    

    (vii) any
      Environmental, Health and Safety Liabilities arising out of or relating to
      the
      operation of Vendor's business or Vendor's leasing, ownership or operation
      of
      real property arising out of or relating to any occurrence or event prior to
      the
      Closing Date;

     

    (viii) any
      Liability of Vendor to the Parent Company;

     

    (ix) any
      Liability of Vendor to distribute to the Parent Company or otherwise apply
      all
      or any part of the consideration received hereunder;

     

    (x) any
      Liability of Vendor arising out of any Proceeding pending as of the Closing
      Date;

     

    (xi) any
      Liability of Vendor arising out of any Proceeding commenced after the Closing
      Date and arising out of or relating to any occurrence or event happening prior
      to the Closing Date, except to the extent the same constitutes an Assumed
      Liability or a Product Liability Matter under this Agreement;

     

    (xii) any
      Liability arising out of or resulting from Vendor's compliance or noncompliance
      with any Legal Requirement or order of any Governmental Authority arising out
      of
      or relating to any occurrence or event happening prior to the Closing Date;
      or

     

    (xiii) any
      Liability of Vendor under this Agreement or any other document executed in
      connection with the Contemplated Transactions; or

     

    (xiv) any
      Liability of the Vendor under Section 8.1, Section 8.3 (to the extent not
      assumed in Section 8.3 by the Purchaser) or Schedule 2.5(b)(xiv).

     

    
      
        
        

      

      
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          14 -

        
          

        

      

      
        
        

      

    

    2.6. Allocation

     

    Within
      forty (40) days after the Closing, Purchaser shall prepare an allocation
      schedule which shall allocate the Purchase Price and the Assumed Liabilities
      in
      accordance with the applicable provisions of the Code and regulations thereunder
      (“Closing Allocation”). After the Closing, the parties shall make consistent use
      of the allocations, fair market values and useful lives specified in the Closing
      Allocation for all Tax purposes and in all filings, declarations and reports
      with the IRS in respect thereof, including the reports required to be filed
      under Section 1060 of the Code. Purchaser shall prepare IRS Form 8594 with
      respect to the transactions contemplated by this Agreement (the “Form 8594”) and
      deliver the Form 8594 to Vendor within forty-five (45) days after the Closing
      Date in accordance with the Closing Allocation. The Form 8594 shall be subject
      to Vendor's approval before it is filed with the IRS. In any Proceeding related
      to the determination of any Tax, neither Purchaser nor Vendor or the Parent
      Company shall contend or represent that allocation set forth in the Form 8594
      as
      so filed is not a correct allocation.

     

    2.7. Prepaid
      Rent 

     

    Immediately
      prior to the Closing, the parties shall calculate the amount of Base Rent and
      Additional Rent as such terms are defined in the Lease paid by or on behalf
      of
      the Vendor relating to the period beginning on the Closing Date and ending
      on
      the next date that such Base Rent and Additional Rent is due under the Lease
      (the “Prepaid Rent”), and at the Closing Purchaser shall pay to Vendor an amount
      equal to the amount of the Prepaid Rent.

     

    3. Representations
      and Warranties of the Vendor.
      Except
      as set forth in the Disclosure Letter, the Vendor represents and warrants to
      the
      Purchaser as follows and acknowledges that the Purchaser is relying on the
      following representations and warranties in connection with the purchase of
      the
      Business and the Assets:

     

    3.1. Corporate
      Status and Authority

     

    (a) Status:
      The Vendor is a corporation duly organized, validly existing and in good
      standing under the laws of Delaware, and has the corporate power to own its
      property and conduct its business in the manner in which such business is now
      being conducted. The Vendor is duly qualified to do business and is in good
      standing in each jurisdiction in which its ownership of properties or conduct
      of
      business requires such qualification and where failure to be so qualified would
      have a Material adverse effect on the Business taken as a whole. 

     

    (b) Due
      Authorization: The execution and delivery of this Agreement and all documents,
      instruments and agreements required to be executed and delivered by the Vendor
      pursuant to this Agreement, and the completion and performance of the
      transactions and obligations contemplated by, or contained in, this Agreement,
      have been duly authorized by all necessary corporate action on the part of
      the
      Vendor, and this Agreement has been duly executed and delivered by the Vendor
      and constitutes a legal, valid and binding obligation of the Vendor enforceable
      in accordance with its terms, except as may be limited by bankruptcy,
      insolvency, liquidation, reorganization, reconstruction and other similar laws
      of general application affecting the enforceability of remedies and rights
      of
      creditors and except that equitable remedies such as specific performance and
      injunction are in the discretion of a court.

     

    
      
        
        

      

      
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          15 -

        
          

        

      

      
        
        

      

    

    3.2. Assets

     

    (a) Ownership:
      Except for the Leased Premises, the Vendor is the beneficial owner of, and
      has
      good and marketable title to, all of the Assets free and clear of all
      Encumbrances except Permitted Encumbrances.

     

    (b) Leases
      and Leased Premises: The Leased Premises are held by the Vendor under the Lease,
      which is valid and subsisting, is set forth in Schedule E, and is in full force
      and effect and without amendment thereto, except as described in Schedule E.
      The
      Lease set forth in Schedule E is complete and accurate in all respects and
      there
      are no other leases, agreements to lease or tenancy arrangements relating to
      real property to which the Vendor is a party and which relate to the Business
      except as disclosed to the Purchaser. The Vendor has not previously assigned
      the
      Lease nor sublet its interest in any of the Leased Premises under the Lease
      except as described in Schedule E. The Vendor has not released any of the other
      parties to the Lease from the performance of any of their obligations
      thereunder. The Vendor is not in Material breach of any of the terms of any
      Lease and the Vendor is not aware of any of the other parties to the Lease,
      being in Material breach of any of the terms thereof, and to the Knowledge
      of
      the Vendor, no event or condition has occurred which, either immediately or
      after notice or lapse of time or both, could give rise to the cancellation
      or
      termination of the Lease.

     

    (c) Zoning:
      The Leased Premises at which the Vendor carries on any part of the Business
      is
      zoned to permit the particular activities carried on thereon or therein by
      the
      Vendor. 

     

    (d) Taxes:
      All property, municipal, school, general and special Taxes, rates, assessments,
      local improvements charges, frontage Taxes, business Taxes, development cost
      charges, other subdivision charges and costs and other levies which are
      chargeable against the Leased Premises and payable by the Vendor under the
      Leases have been paid in full unless the same are not due and
      payable.

     

    (e) Lands
      and
      Buildings: The lists of lands and premises set out in Schedules E accurately
      describe all interests of the Vendor (owned, leased, licensed or other) in
      real
      property used in the conduct of the Business. 

     

    (f) State
      of
      Tangible Personal Property: All tangible personal property included in the
      Assets has been properly maintained in all Material respects, is in good working
      order (where applicable) and repair, ordinary wear and tear excepted, contains
      no defects known to the Vendor which will materially and adversely affect the
      operation of the Business to any Material degree and is in the possession of
      the
      Vendor.

     

    
      
        
        

      

      
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          16 -

        
          

        

      

      
        
        

      

    

    (g) Tangible
      Personal Property: The list of Personal Property set out in Schedule J
      accurately lists all of the tangible Personal Property owned by the Vendor
      used
      in the conduct of the Business that has a value in excess of $1,000.00 per
      item.

     

    (h) Intellectual
      Property: With respect to the Intellectual Property:

     

    (i) Schedule
      D contains a complete list of all patents, pending patent applications,
      trade-marks, trade-mark applications and copyright registrations in each
      jurisdiction in which application or registration has been made by or on behalf
      of the Vendor, together with all licenses and agreements relating to the
      Intellectual Property;

     

    (ii) the
      Vendor has the right to use, sell, license, sub-license and prepare derivative
      works for, and to dispose of, and to bring actions for the infringement or
      misappropriation of, the Intellectual Property and the Vendor has not conveyed,
      assigned or, save for Permitted Encumbrances, encumbered any of the Intellectual
      Property rights;

     

    (iii) to
      the
      Knowledge of the Vendor, all registrations and filings necessary to preserve
      the
      rights of the Vendor to the Intellectual Property have been made and are in
      good
      standing;

     

    (iv) the
      execution and delivery of this Agreement and the completion and performance
      of
      the transactions and obligations contemplated by or contained in this Agreement
      will not breach, violate or conflict with any instrument or agreement governing
      any Intellectual Property right of Vendor, and will not cause the forfeiture
      or
      termination of any Intellectual Property right of Vendor or in any way exclude
      the right of the Vendor to use, sell, license or dispose of or to bring any
      action for the infringement of any Intellectual Property right of Vendor (or
      any
      portion thereof);

     

    (v) the
      conduct of the Business by the Vendor does not, to the Knowledge of the Vendor,
      infringe upon any intellectual property right, domestic or foreign, of any
      Person;

     

    (vi) there
      are
      no pending or, to the Knowledge of the Vendor, threatened, claims, actions,
      demands, lawsuits or other proceedings contesting the validity, ownership or
      right to use, sell, license or dispose of any of the Intellectual Property
      necessary or required or otherwise used for or in connection with the conduct
      of
      the operations of the Business, nor to the Knowledge of the Vendor is there
      any
      reasonable basis for such claim presently in existence, nor has the Vendor
      received any notice asserting that any Intellectual Property right of the Vendor
      or the proposed use, sale, license or disposition thereof by the Vendor
      conflicts or will conflict with the rights of any party, nor to the Knowledge
      of
      the Vendor is there any reasonable basis for any such assertion presently in
      existence; 

     

    
      
        
        

      

      
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          17 -

        
          

        

      

      
        
        

      

    

    (vii) to
      the
      Knowledge of the Vendor, no employee of the Vendor is in violation of any term
      of any non-disclosure, proprietary rights or similar agreement between the
      employee and any former employer; 

     

    (viii) the
      Vendor has used its reasonable commercial efforts to ensure that all technical
      information, other than technical information for which the Vendor considers
      patent protection and defensive publication to be suitable, developed by and
      belonging to the Vendor with respect to the Business or the Assets, for which
      a
      copyright has not been registered nor patent protection sought, has been kept
      confidential;

     

    (ix) except
      for bonuses or sales commissions payable to Employees in the ordinary course
      of
      business and except for the existing obligations of the Vendor under licensing
      or similar agreements which are listed in Schedule D, there are no royalties,
      honoraria, fees or other payments payable by the Vendor to any Person by reason
      of the ownership, use, license, sale or disposition of any of the Intellectual
      Property; and

     

    (x) all
      Persons having access to or knowledge of the Intellectual Property that is
      of a
      confidential nature and that is necessary or required or otherwise used for
      or
      in connection with the conduct or operation or proposed conduct or operation
      of
      the Business have entered into appropriate non-disclosure agreements with the
      Vendor; 

     

    (i) No
      Rights
      to Assets: There is no agreement, contract, option, commitment or other right
      in
      favour of, or held by, any Person other than the Purchaser to purchase, lease,
      license or otherwise acquire any of the Assets, other than inventory purchase
      orders accepted by the Vendor in the ordinary course of the Business and
      consistent with past practice, or to possess any of the Assets or to occupy
      any
      part of the Leased Premises. 

     

    (j) All
      Assets Used in Business: Except for the Excluded Assets, the Assets constitute
      all of the Material rights, assets and properties that are usually and
      ordinarily used in connection with the Business, and include all Material
      rights, assets and properties the use and exercise of which are necessary for
      the performance of any Contract and any Permit to be assumed by the Purchaser
      pursuant to this Agreement and for the conduct of the Business as now
      conducted.

     

    (k) Inventory:
      To the Knowledge of the Vendor, none of the Inventory is obsolete or unsaleable
      in the ordinary course of the Business and all of the Inventory is new, unused
      and in good condition for sale, except the maintenance Inventory which consists
      of used parts, in each case subject to customary reserves maintained by the
      Vendor.

     

    (l) Contracts
      Assignable: Except as specifically set out in Schedule 3.2(l), all of the
      Contracts are freely assignable to the Purchaser. 

     

    
      
        
        

      

      
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          18 -

        
          

        

      

      
        
        

      

    

    (m) Rights
      to
      Assets: The Vendor has the exclusive right to possess, use, occupy and dispose
      of the Assets, subject only to the rights of the other parties to the Contracts
      and the rights of the issuers of the Permits. 

     

    3.3. Business
      Operations

     

    (a) Permits:
      The Vendor holds all permits, licenses, registrations, consents, authorizations,
      approvals, privileges, waivers, exemptions, orders, certificates, rulings,
      agreements and other concessions from, of or with Governmental Authorities
      required to carry on the Business as now being carried on, and to hold, operate
      and use the Assets as now being held, operated and used, by the Vendor, and
      all
      of the foregoing are validly issued, are in full force and effect, are in good
      standing, are being complied with in all respects and are listed in Schedule
      F;
      and no notice of breach or default or defect in respect of any of their terms
      has been received by the Vendor and there are no proceedings in progress,
      pending or threatened which could result in the cancellation, revocation,
      suspension or adverse alteration of any of them, and the Vendor is not aware
      of
      any existing matters or state of facts which is reasonably likely to give rise
      to any such notice or proceeding; except in each case where the failure to
      hold
      the same or other applicable circumstance referred to in this Section 3.3(a)
      would not have a Material adverse effect on the Business, taken as a whole;
      and,
      except as specifically set out in Schedule F. 

     

    (b) Compliance
      with Legal Requirements: Except as set forth in Schedule LR:

     

    (i) Vendor
      is, and at all times since May 4, 2004 has been, in Material compliance with
      each Legal Requirement that is or was applicable to it or to the conduct or
      operation of its business or the ownership or use of any of its
      assets;

     

    (ii) Since
      May
      4, 2004, no event has occurred or circumstance exists that (with or without
      notice or lapse of time) (A) will constitute or result in a Material violation
      by Vendor of, or a failure on the part of Vendor to comply with, any Legal
      Requirement or (B) will give rise to any Material obligation on the part of
      Vendor to undertake, or to bear all or any portion of the cost of, any Material
      remedial action of any nature; and

     

    (iii) Since
      May
      4, 2004, Vendor has not received, at any time any notice or other communication
      (whether oral or written) from any Governmental Authority or any other Person
      regarding (A) any actual, alleged, possible or potential violation of, or
      failure to comply with, any Legal Requirement or (B) any actual, alleged,
      possible or potential obligation on the part of Vendor to undertake, or to
      bear
      all or any portion of the cost of, any remedial action of any
      nature.

     

    (c) Governmental
      Authorization: Schedule GA contains a complete and accurate list of each
      Governmental Authorization that is held by Vendor or that otherwise relates
      to
      Vendor's business or the Assets. Each Governmental Authorization listed or
      required to be listed in Schedule GA is valid and in full force and effect.
      Except as set forth in Schedule GA:

     

    
      
        
        

      

      
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          19 -

        
          

        

      

      
        
        

      

    

    (i) Vendor
      is, and at all times since May 4, 2004 has been, in compliance with all of
      the
      terms and requirements of each Governmental Authorization identified or required
      to be identified in Schedule GA;

     

    (ii) Since
      May
      4, 2004, no event has occurred or circumstance exists that will (with or without
      notice or lapse of time) (A) constitute or result directly or indirectly in
      a
      Material violation of or a failure to comply with any term or requirement of
      any
      Governmental Authorization listed or required to be listed in Schedule GA,
      or
      (B) result directly or indirectly in the revocation, withdrawal, suspension,
      cancellation or termination of, or any modification to, any Governmental
      Authorization listed or required to be listed in Schedule GA;

     

    (iii) Vendor
      has not received, at any time since May 4, 2004, any notice or other
      communication (whether oral or written) from any Governmental Authority or
      any
      other Person regarding (A) any actual, alleged, possible or potential violation
      of or failure to comply with any term or requirement of any Governmental
      Authorization or (B) any actual, proposed, possible or potential revocation,
      withdrawal, suspension, cancellation, termination of or modification to any
      Governmental Authorization; and

     

    (iv) all
      applications required to have been filed for the renewal of the Governmental
      Authorizations listed or required to be listed in Schedule GA have been duly
      filed on a timely basis with the appropriate Governmental Authorization, and
      all
      other filings required to have been made with respect to such Governmental
      Authorizations have been duly made on a timely basis with the appropriate
      Governmental Authorization.

     

    To
      the
      Knowledge of Vendor, the Governmental Authorizations listed in Schedule GA
      collectively constitute all of the Governmental Authorizations necessary to
      permit Vendor to lawfully conduct and operate its business in the manner in
      which it currently conducts and operates such business and to permit Vendor
      to
      own and use its assets in the manner in which it currently owns and uses such
      assets.

     

    (v) Compliance
      with Laws: Except as expressly disclosed in this Agreement, the Vendor is
      operating and using the Assets, and is conducting the Business, in Material
      compliance with all applicable laws, statutes, bylaws, decrees, rulings, orders,
      judgments and regulations of each jurisdiction in which the Assets are located
      or in which it conducts the Business, and of all Governmental Authorities of
      each such jurisdiction, including, without limitation, any land use or zoning
      bylaw or regulation, development restriction or plan, building restriction
      or
      code. 

     

    (vi) Jurisdictions
      in which Business Is Carried On: The Vendor carries on the Business, and Assets
      are situated, in the jurisdictions listed in Schedule 3.3.

     

    
      
        
        

      

      
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          20 -

        
          

        

      

      
        
        

      

    

    3.4. Financial

     

    (a) Audited
      Financial Statements: The Audited Financial Statements present fairly in all
      Material respects the financial position, assets and liabilities (whether
      accrued, absolute, contingent or otherwise) of the Parent Company as at the
      respective dates of the balance sheets included therein. 

     

    (b) Unaudited
      Financial Statements: The Unaudited Financial Statements present fairly in
      all
      Material respects the financial position, assets and liabilities (whether
      accrued, absolute, contingent or otherwise) of the Vendor as at July 31, 2007
      and the results of its operations for the nine months then ended.

     

    (c) No
      Change: Since July 31, 2007: 

     

    (i) there
      has
      been no damage, destruction, loss or other event, from any cause whatsoever,
      whether or not covered by insurance, of, to or affecting any of the Assets
      or
      any adverse change in the condition of any of the Assets or in the organization,
      operations, affairs, business, properties, prospects or financial condition
      or
      position of the Business, including, without limitation, such changes arising
      as
      a result of any legislative or regulatory change, or revocation of any of the
      Permits or of any right of the Vendor to carry on business, which will have
      a
      Material adverse effect on the Business taken as a whole; 

     

    (ii) there
      has
      been no event, condition or development, or threatened or probable event,
      condition or development of which the Vendor is aware, which has materially
      and
      adversely affected, or will materially and adversely affect, the Assets or
      the
      Business;.

     

    (iii) the
      Business has been carried on in the ordinary course in all Material
      respects;

     

    (iv) no
      event,
      other than the Contemplated Transactions, has occurred which will lead to a
      Material reduction in the value of the Goodwill;

     

    (v) to
      the
      knowledge of the Vendor there has been no termination or cancellation of,
      Material adverse change in, or Material adverse alteration of, the Vendor's
      relationships with any of its customers, which customers, in the aggregate,
      accounted for more than 5% of the Vendor's gross revenues for the financial
      year
      of the Vendor ending on October 31, 2006 except as shown in the Unaudited
      Financial Statements for that financial year; and

     

    (vi) the
      Vendor has not, in connection with the Business or the Assets, directly or
      indirectly:

     

    
      	 	
              A.

            	
              incurred
                any Material liability or obligation (absolute or contingent) except
                for
                liabilities incurred in the ordinary course of business, all of which
                as
                to their nature and amount are consistent with the Business as carried
                on;
                

            

    

     

    
      
        
        

      

      
        -
          21 -

        
          

        

      

      
        
        

      

    

    
      	 	
              B.

            	
              had
                any Material portion of the Assets become subject to an Encumbrance,
                other
                than a Permitted Encumbrance, whether or not created or permitted
                by the
                Vendor;

            

    

     

    
      	 	
              C.

            	
              sold,
                transferred, assigned, leased or otherwise disposed of any of the
                Assets
                or cancelled or released any Material debts or claims, except, in
                each
                case, in the ordinary course of
                business;

            

    

     

    
      	 	
              D.

            	
              waived
                or cancelled any rights of substantial
                value;

            

    

     

    
      	 	
              E.

            	
              entered
                into, varied, amended, terminated or cancelled any Material instrument,
                commitment, lease, indenture, contract or agreement, or entered into
                any
                transaction, other than in the ordinary course of
                business;

            

    

     

    
      	 	
              F.

            	
              made
                or authorized any payment to or for the benefit of any officer or
                employee
                on account of salary, pay, collateral employment benefits, commissions
                or
                other compensation, pension, bonus, share of profits or any Benefit
                Plan,
                except in the ordinary course of
                business;

            

    

     

    
      	 	
              G.

            	
              made
                any capital expenditure or entered into any lease with a capitalized
                value, in either case, of more than $25,000.00;
                or

            

    

     

    
      	 	
              H.

            	
              directly
                or indirectly, engaged in or entered into any Material transaction
                or made
                any Material disbursement or assumed or incurred any Material liability
                or
                obligation or made any commitment to make any Material expenditure
                outside
                the ordinary course of business;

            

    

     

    
      	 	
              I.

            	
              made
                any Material change in its billing practices or in the credit terms
                it
                makes available to its customers;

            

    

     

    (d) Books
      and
      Records: The Books and Records fairly and correctly set out and disclose in
      all
      Material respects the financial position and condition, and all revenues,
      expenses and results of operations, of the Business and all Material financial
      transactions of the Vendor relating to any of the Assets or the Business have
      been accurately recorded in the Books and Records in all Material respects,
      all
      of which are under the exclusive ownership and direct control of the Vendor
      or
      the Parent Company (including all means of access thereto and
      therefrom).

     

    (e) Liabilities:
      The Vendor has no Material debts or liabilities (whether accrued, contingent,
      absolute or otherwise and whether or not determined or determinable) including,
      without limitation, liabilities relating to income and other Taxes,
      except:

     

    
      
        
        

      

      
        -
          22 -

        
          

        

      

      
        
        

      

    

    (i) liabilities
      disclosed on, reflected in or provided for in the Financial
      Statements;

     

    (ii) liabilities
      disclosed in this Agreement; and

     

    (iii) liabilities
      incurred in the ordinary course.

     

    (f) Product
      Warranties: To the knowledge of the Vendor, Schedule U contains a complete
      list of all warranties given to purchasers of products sold by the Vendor in
      connection with the Business since May 4, 2004.

     

    (g) Accounts
      Receivable: To the Knowledge of Vendor, all accounts receivable recorded on
      the
      books of the Vendor are valid, due, collectable and payable and no right of
      set-off or counterclaim exists with respect to those accounts receivable, in
      each case subject to customary reserves maintained by the Vendor. Since July
      31,
      2007, the Vendor has not collected its accounts receivable except in the
      ordinary course of business in accordance with past practices. 

     

    (h) Guarantees/Indemnities:
      The Vendor has not guaranteed or indemnified, or agreed to guarantee or
      indemnify, or agreed to any other like commitment, in respect of any debt,
      liability or other obligation of any Person.

     

    (i) Customers
      and Suppliers: Schedule K sets out the major customers of the Business (being
      those customers and those suppliers of the Business accounting for more than
      5%
      of sales and more than 5% of inventory purchases respectively of the Vendor
      for
      the period August 1, 2006 to July 31 2007). Since July 31, 2007, to the
      knowledge of the Vendor, there has been no termination or cancellation of,
      and
      no Material and adverse modification or change in, the Vendor's business
      relationships with any major customer or group of major customers or any major
      supplier. The Vendor has no reason to believe that the benefits of any
      relationship with any of the major customers or suppliers of the Business will
      not continue after the Closing to the benefit of the Purchaser in substantially
      the same manner as prior to the date of this Agreement.

     

    3.5. Banking

     

    Bank
      Facilities: Schedule L contains a complete and accurate listing of the name
      and
      address of each bank, trust company or similar financial institution in which
      the Vendor has, in connection with the Business, an account, safe deposit box
      or
      other banking facility, including account numbers and the names of all persons
      authorized to transact business in respect of those accounts.

     

    
      
        
        

      

      
        -
          23 -

        
          

        

      

      
        
        

      

    

    3.6. Insurance

     

    (a) Claims:
      To the Knowledge of the Vendor, except as set forth in Schedule 3.6, no claims
      have been made during the last five years relating to the Assets or the Business
      against any of the insurance policies of the Vendor or the Parent Company,
      including, without limitation, any such property damage, general liability,
      product liability or motor vehicle insurance policy.

     

    (b) Limits:
      To the Knowledge of the Vendor the Vendor has not entered into any contracts
      in
      the last 5 years relating to the business requiring the Vendor to provide
      insurance coverage in an amount greater than $5,000,000. 

     

    3.7. Tax
      Matters

     

    (a) Filings:
      The Vendor has duly filed all returns, elections and designations required
      to be
      filed by it with all Tax authorities on a timely basis. No such returns,
      elections or designations contain any Material misstatement or omit any Material
      statement that should have been included, and each return, election and
      designation, including accompanying schedules and statements, is true, correct
      and complete in all Material respects.

     

    (b) Payment:
      The Vendor has paid in full all amounts (including, without limitation, excise,
      sales, use and consumption Taxes and Taxes measured on income and all
      installments of Taxes) owing to all federal, state, and municipal taxation
      authorities due and payable by it.

     

    3.8. Employee
      Matters

     

    (a) List
      of
      Employees: The list of Employees set out in Schedule B is a list of the
      employees of the Vendor employed in the Business as at September 5, 2007 and,
      to
      the Knowledge of the Vendor includes the names of such employees and a listing
      of the annual salary, target bonus, position, date of hire and working location
      of each such Employee, which is accurate and complete, and whether any of them
      has signed a written confidentiality agreement. At or prior to the Closing,
      Vendor will deliver to Purchaser a schedule which sets forth the Benefit Plan
      entitlements and vacation entitlements of such employees. 

     

    (b) Employment
      Contracts: Schedule N contains a description of all oral or written consulting
      contracts, employment agreements, management contracts, labor services contracts
      and similar agreements or arrangements for the services of one or more
      particular individuals with respect to the Business, to which the Vendor is
      a
      party, which is accurate in all respects, and, except as set out in Schedule
      N,
      none of the Employees is employed on other than an indefinite hiring basis
      terminable on reasonable notice according to law without further liability
      to
      the Vendor, and the Vendor has not made any commitment or agreement with respect
      to the period of notice, the payment of money or otherwise with respect to
      the
      termination of employment of any of the Employees.

     

    
      
        
        

      

      
        -
          24 -

        
          

        

      

      
        
        

      

    

    (c) Unions:
      There is no collective agreement or other agreement with any trade union or
      employee association currently in force with the Vendor.

     

    (d) Employer
      Associations: The Vendor is not a member of any employer, management, industry
      or other trade, labor relations or business association under which the Vendor
      is obligated to contribute to any employee or contractor employee benefit or
      industry enhancement fund, including any pension plan, health benefit plan
      or
      other similar employee entitlement plan.

     

    (e) Employee
      Benefits: The Books and Records accurately set out all accumulated vacation
      entitlement, regular and supplementary vacation pay, accumulated and deferred
      overtime compensation, time-off entitlement, severance, accumulated sick leave,
      retirement benefits and benefits due or accruing under Benefit Plans to all
      Employees.

     

    (f) Benefit
      Plans: Schedule O contains a list of all Benefit Plans applicable to Employees
      which is complete and accurate in all respects. The Vendor has provided
      Purchaser with descriptions of all of the Benefit Plans which are complete
      and
      accurate.

     

    3.9. Litigation
      and Claims

     

    (a) Proceedings:
      Schedule M contains a listing and description of all current, pending and,
      to
      the Knowledge of the Vendor, threatened, actions, claims, demands, lawsuits,
      assessments, arbitrations, judgments, awards, decrees, orders, injunctions,
      prosecutions and investigations, and other proceedings, of, by, against, or
      relating to, the Vendor, any of the Assets or the Business (the “Proceedings”),
      which is complete and accurate. The Vendor is not aware of any basis for any
      other action, claim, demand, lawsuit, prosecution, assessment, arbitration,
      investigation or other proceeding which, if pursued, would have a significant
      likelihood of having an adverse effect on the Vendor, the Business or any of
      the
      Assets.

     

    (b) No
      Seizure: There is no appropriation, expropriation or seizure of any of the
      Assets that is pending or, to the Knowledge of the Vendor, that has been
      threatened.

     

    3.10. Contracts
      and Commitments

     

    (a) Material
      Contracts: Schedule G contains a complete and accurate list and description
      of,
      and specifically identifies, all contracts, agreements, leases, commitments,
      indentures and instruments which are Material to the Vendor and to which the
      Vendor is a party, by which the Vendor is bound or under which the Vendor is
      entitled to any benefits, including without limitation any contract, agreement,
      lease, commitment, indenture or instrument which, or under which:

     

    
      
        
        

      

      
        -
          25 -

        
          

        

      

      
        
        

      

    

    (i) performance
      of any right or obligation by any party to it may occur over a period of time
      greater than one year;

     

    (ii) an
      expenditure, receipt, or transfer or other disposition of property with a value
      of greater than $10,000 may arise under it other than one with a customer in
      the
      ordinary course of business; 

     

    (iii) has
      not
      been entered into in the ordinary course of business; or

     

    (iv) relates
      to or affects any interest in real property whether freehold, leasehold or
      otherwise; 

     

    Correct
      and complete copies of the Material Contracts have been made available to the
      Purchaser.

     

    (b) Good
      Standing: The Vendor is not in breach or default of any of the terms of any
      of
      the Material Contracts and the Vendor is not aware of any Material breach or
      default of any term of any of the Material Contracts by any other party
      thereto.

     

    (c) Forward
      Commitments: All outstanding forward commitments by or on behalf of the Vendor
      for the purchase or sale of inventory have been made in accordance with the
      established price lists of the Vendor or its suppliers or, if otherwise, in
      accordance with the Vendor's normal business custom.

     

    3.11. Effect
      of Transaction

     

    (a) No
      Adverse Implications: Neither the execution and delivery of this Agreement
      nor
      the completion and performance of the transactions and obligations contemplated
      by or contained in this Agreement will:

     

    (i) give
      any
      Person the right to accelerate, terminate or cancel any contractual or other
      right of the Vendor or to remove any of the Assets;

     

    (ii) result
      in
      the creation of any Encumbrance (other than Permitted Encumbrances) on any
      of
      the Assets or in a breach of or a default under any agreement giving a third
      party security against any of the Assets;

     

    (iii) result
      in
      a breach or contravention of or default under any provision of any Permit,
      contract, agreement, instrument, lease, indenture, authority, certificate,
      consent, statute, regulation, bylaw, order, ruling, decision, arbitration award,
      judgment, decree or law to which the Vendor is a party or by or to which the
      Vendor, or any of the Assets are bound or are subject, which will have a
      Material adverse effect on the Assets or the Business or which will impair
      the
      legality or enforceability of this Agreement or the transactions contemplated
      by
      this Agreement, or require the consent of any Person; 

     

    
      
        
        

      

      
        -
          26 -

        
          

        

      

      
        
        

      

    

    (iv) be
      contrary to any of the provisions of the Charter Documents of the Vendor;
      or

     

    (v) result
      in
      any fees, duties, Taxes, assessments or other amounts relating to any of the
      Assets becoming due or payable.

     

    (b) Government
      Approvals: There is no authorization, license, approval, consent, order or
      any
      other action of, or any registration, declaration, filing or notice with or
      to
      any Governmental Authority, court, board, or administrative tribunal that is
      required for the execution or delivery by the Vendor of this Agreement, or
      the
      completion or performance by the Vendor of any of the transactions contemplated
      by this Agreement, or the validity or enforceability of this Agreement against
      the Vendor.

     

    3.12. Environmental

     

    (a) Hazardous
      Material: Since May 4, 2004: No Hazardous Materials or other material used
      in or
      generated by the Business or any of the Assets have been or are currently
      placed, used, stored, treated, manufactured, disposed of, released, discharged,
      spilled or emitted in violation of any applicable Environmental Protection
      Laws.
      All Hazardous Materials disposed of, removed, emitted, released, discharged
      or
      spilled from or treated on the land on which the Leased Premises are situate
      were and are documented, handled, transported and disposed of in compliance
      with
      all applicable Environmental Protection Laws.

     

    (b) Waste
      Disposal: All of the facilities on the land on which the Leased Premises are
      situate that were or are used for the generation or disposal of Hazardous
      Materials or other material used in or generated by the Business or in or on
      any
      of the Leased Premises have been and are properly permitted and operated in
      Material compliance with all applicable Environmental Protection
      Laws.

     

    (c) Environmental
      Agreements: There is no agreement or consent order to which the Vendor is a
      party relating to any environmental matter, and no such agreement or order
      is
      necessary for the continued compliance of any of the Assets or their respective
      uses or the Business with applicable Environmental Protection Laws concerning
      the generation, storage or disposal of Hazardous Materials.

     

    (d) Investigations:
      Since May 4, 2004 there have been no orders, claims or demands issued or
      threatened and no investigations conducted, taken or threatened under or
      pursuant to any Environmental Protection Laws with respect to the Assets or
      the
      Business, of which the Vendor is aware, other than routine inspections. The
      Vendor is not aware of any circumstances or events that have any reasonable
      prospect of resulting in any claim, action or other proceeding with respect
      to
      Hazardous Materials or in an order or investigation under or pursuant to any
      Environmental Protection Laws.

     

    (e) Permits:
      All permits, licenses, approvals, authorizations, consents, registrations,
      privileges, waivers, exemptions, orders, certificates, rulings, agreements
      or
      other concessions required under applicable Environmental Protection Laws to
      own
      or operate the Assets or carry on the Business have been obtained, all terms
      and
      conditions attached thereto have been duly complied with, and all such permits,
      licenses, approvals, authorizations, consents, privileges, waivers, exemptions,
      orders, certificates, rulings, agreements and registrations are in full force
      and effect and in good standing, in each case where the failure to obtain,
      comply with or be in effect would have an adverse effect on the Vendor taken
      as
      a whole. 

     

    
      
        
        

      

      
        -
          27 -

        
          

        

      

      
        
        

      

    

    (f) Adverse
      Proceedings: There have been and are no actions, claims or other proceedings
      commenced or threatened with respect to any of the Assets or the Business
      pursuant to Environmental Protection Laws or with respect to Hazardous
      Materials.

     

    (g) Nuisance:
      The use of, and operations relating to, any of the Assets or the Business do
      not
      constitute a nuisance of any nature, nor has any claim for nuisance been made
      in
      respect of such use and operations by any Person.

     

    3.13. Audits

     

    The
      Vendor has delivered to the Purchaser the last 3 FDA audits of the Vendor,
      the
      last 6 quality systems and manufacturing audits of the Vendor and the last
      3
      years of Audited Financial Statements of the Parent with all commentary and
      notes attached that are part of the audit.

     

    3.14. Compliance
      with the Foreign Corrupt Practices Act and Export Control and Antiboycott
      Laws

     

    (a) Vendor
      and its representatives have not, to obtain or retain business, directly or
      indirectly offered, paid or promised to pay, or authorized the payment of,
      any
      money or other thing of value (including any fee, gift, sample, travel expense
      or entertainment with a value in excess of $10,000 in the aggregate to any
      one
      individual in any year) or any commission payment in excess of 5 percent (5%)
      of
      any amount payable, to:

     

    (i) any
      person who is an official, officer, agent, employee or representative of any
      Governmental Authority or of any existing or prospective customer (whether
      government owned or nongovernment owned);

     

    (ii) any
      political party or official thereof;

     

    (iii) any
      candidate for political or political party office; or

     

    (iv) any
      other
      individual or entity; while knowing or having reason to believe that all or
      any
      portion of such money or thing of value would be offered, given, or promised,
      directly or indirectly, to any such official, officer, agent, employee,
      representative, political party, political party official, candidate,
      individual, or any entity affiliated with such customer, political party or
      official or political office.

     

    
      
        
        

      

      
        -
          28 -

        
          

        

      

      
        
        

      

    

    (b) Each
      transaction is properly and accurately recorded on the Books and Records of
      Vendor, and each document upon which entries in Vendor's Books and Records
      are
      based is complete and accurate. Vendor maintains a system of internal accounting
      controls designed to insure that Vendor maintains no off-the-books accounts
      and
      that Vendor's assets are used only in accordance with Vendor's management
      directives.

     

    (c) Vendor
      has at all times been in compliance with all Legal Requirements relating to
      export control and trade embargoes. No product sold or service provided by
      Vendor during the last five (5) years has been, directly or indirectly, sold
      to
      or performed on behalf of Cuba, Iraq, Iran, Libya or North Korea.

     

    (d) Vendor
      has not violated the antiboycott prohibitions contained in 50 U.S.C. sect.
      2401
      et seq. or taken any action that can be penalized under Section 999 of the
      Code.
      During the last five (5) years, Vendor has not been a party to, is not a
      beneficiary under and has not performed any service or sold any product under
      any Vendor Contract under which a product has been sold to customers in Bahrain,
      Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Sudan, Syria,
      United Arab Emirates or the Republic of Yemen.

     

    3.15. Brokers
      or Finders

     

    Neither
      Vendor nor any of its representatives have incurred any obligation or liability,
      contingent or otherwise, for brokerage or finders' fees or agents' commissions
      or other similar payments in connection with the sale of Vendor's business
      or
      the Assets or the Contemplated Transactions, except the fees earned by CIBC
      World Markets under their agreement dated December 12, 2006 and the amendment
      dated June 29, 2007, which shall be the responsibility of the Parent
      Company.

     

    4. Representations
      and Warranties of the Parent Company

     

    The
      Parent Company represents and warrants to the Purchaser as follows and
      acknowledges that the Purchaser is relying on the following representations
      and
      warranties in connection with the purchase of the Business and the
      Assets:

     

    (a) Status:
      The Parent Company is a duly incorporated and validly existing company and
      in
      good standing under the laws of Delaware, and has the corporate power to own
      its
      property and conduct its business in the manner in which such business is now
      being conducted. and has full power and capacity to own its assets and to carry
      on its business as now conducted and to enter into, carry out the transactions
      contemplated by, and duly observe and perform all its obligations contained
      in,
      this Agreement.

     

    (b) Due
      Authorization: The execution and delivery of this Agreement and all documents,
      instruments and agreements required to be executed and delivered by the Parent
      Company pursuant to this Agreement, and the completion and performance of the
      transactions and obligations contemplated by or contained in this Agreement,
      have been duly authorized by all necessary corporate action on the part of
      the
      Parent Company, and this Agreement has been duly executed and delivered by
      the
      Parent Company and constitutes a legal, valid and binding obligation of the
      Parent Company enforceable in accordance with its terms.

     

    
      
        
        

      

      
        -
          29 -

        
          

        

      

      
        
        

      

    

    (c) Non-contravention:
      Neither the execution and delivery of this Agreement nor the completion and
      performance of the transactions and obligations contemplated by or contained
      in
      this Agreement will result in a breach of or default under, or be contrary
      to,
      any of the provisions of the Charter Documents of the Parent Company or any
      Encumbrance, indenture, contract, agreement or instrument to which the Parent
      Company is a party or by which the Parent Company is bound. 

     

    (d) No
      Knowledge: The Parent Company is not aware of any of the representations and
      warranties of the Vendor in Article 3 being incorrect or untrue.

     

    5. Representations
      and Warranties of the Purchaser

     

    The
      Purchaser represents and warrants to the Vendor and the Parent Company as
      follows and acknowledges that the Vendor and the Parent Company are relying
      upon
      the following representations and warranties in connection with the sale of
      the
      Business and the Assets:

     

    (a) Status:
      The Purchaser is a corporation duly organized, validly existing and in good
      standing under the laws of the Commonwealth of Virginia, and has the corporate
      power to own its property and conduct its business in the manner in which such
      business is now being conducted and has full power and capacity to enter into,
      carry out the transactions contemplated by, and duly observe and perform all
      its
      obligations contained in this Agreement.

     

    (b) Due
      Authorization: The execution and delivery of this Agreement and all documents,
      instruments and agreements required to be executed and delivered by the
      Purchaser pursuant to this Agreement, and the completion and performance of
      the
      transactions and obligations contemplated by or contained in this Agreement,
      have been duly authorized by all necessary corporate action on the part of
      the
      Purchaser, and this Agreement has been duly executed and delivered by the
      Purchaser and constitutes a legal, valid and binding obligation of the Purchaser
      enforceable in accordance with its terms.

     

    (c) Non-contravention:
      Neither the execution and delivery of this Agreement nor the completion and
      performance of the transactions and obligations contemplated by or contained
      in
      this Agreement will result in a breach of or default under, or be contrary
      to,
      any of the provisions of the Charter Documents of the Purchaser or any
      Encumbrance, indenture, contract, agreement or instrument to which the Purchaser
      is a party or by which the Purchaser is bound.

     

    (d) No
      Knowledge: The Purchaser is not aware of any of the representations and
      warranties of the Vendor in Article 3 being incorrect or
      untrue.

     

    
      
        
        

      

      
        -
          30 -

        
          

        

      

      
        
        

      

    

    6. Pre-closing
      Matters and Other Covenants

     

    6.1. Operations
      until Closing

     

    Except
      as
      otherwise provided in this Agreement or unless otherwise agreed or consented
      to
      in writing by the Purchaser, the Vendor shall from the date of this Agreement
      up
      to the Closing:

     

    (a) Conduct
      of Business: Carry on and conduct the Business in all Material respects in
      the
      ordinary course consistent with past practice and in particular:

     

    (i) use
      all
      reasonable efforts to preserve the Assets intact and maintain the Assets in
      accordance with standard industry practice;

     

    (ii) not
      allow
      any of the Assets to become subject to any Encumbrance except Permitted
      Encumbrances;

     

    (iii) not
      sell,
      lease, license, transfer or otherwise dispose of, or agree to sell, lease,
      license, transfer or otherwise dispose of, any of the Assets except in the
      ordinary course of the Business, consistent with past practice; 

     

    (iv) use
      all
      reasonable efforts to keep available the services of the present Employees
      for
      the Purchaser and to maintain relations and goodwill with suppliers, customers
      and others having business relations with the Vendor in respect of the
      Business;

     

    (v) take
      good
      care of all the Assets and do all necessary repairs and maintenance to such
      of
      the Assets as are used by the Vendor in the ordinary course of the Business,
      and
      take reasonable care to protect and safeguard the Assets;

     

    (vi) make
      all
      necessary Tax, governmental and other filings in a timely fashion;
      and

     

    (vii) pay
      to
      all its Employees all wages, salaries and commissions (in accordance with
      Vendor’s commission plans as set forth in Schedule 6.1(a)(vii) (“Vendor’s
      Commission Plans”)) earned but unpaid, and all earned but unpaid vacation pay
      for vacation days taken or accrued and sick leave pay for sick leave taken
      and
      other entitlements under Benefit Plans up to and including the Closing Date;
      

     

    (b) New
      Capital Projects: Not, unless required by law or required to repair or replace
      any loss or damage to the Assets arising subsequent to the execution of this
      Agreement, commence any new capital projects the cost of which are in excess
      of
      $5,000.00 in the aggregate;

     

    (c) Agreements:
      Not, amend, vary, cancel or terminate any of the Contracts, Material Contracts
      or Permits, or enter into any contract, agreement, instrument, commitment,
      lease, or indenture which is Material within the meanings thereof set out in
      Sections 3.10(a)(i) to (iv), or obtain any additional permit, license,
      registration or other right of the kind described in Section 3.3(a) in
      connection with the Business, except any additional permits, licenses,
      registrations or other rights of the kind described in Section 3.3(a) obtained
      or entered into in the ordinary course of the Business, consistent with past
      practice, or as required by law; and

     

    
      
        
        

      

      
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    (d) Access:
      Provide to the Purchaser, its employees, representatives and agents, reasonable
      access during normal business hours to the Vendor's personnel and its facilities
      and properties and to the Books and Records and to all, or true copies of all,
      title documents, indentures, contracts, agreements, Encumbrances, instruments,
      leases and other documents relating to the Assets or the Business, and furnish
      them with all such information relating to the Business and the Assets as the
      Purchaser from time to time reasonably requests; it being acknowledged and
      agreed by the Vendor that no investigation made by the Purchaser or any of
      its
      employees, representatives or agents shall have the effect of waiving or
      diminishing the scope of, or otherwise affect the Purchaser's right to rely
      on,
      any representation or warranty made by the Vendor or the Parent Company in
      this
      Agreement or in any document, instrument or agreement delivered pursuant to
      this
      Agreement. 

     

    6.2. Confidentiality

     

    The
      Purchaser acknowledges that any information, materials and documentation
      received or observed by it pursuant to or as contemplated by Section 6.1(d),
      either before or after execution of this Agreement, is confidential. The
      Purchaser shall take, and shall cause its employees, representatives and agents
      to take, all reasonable steps and precautions to protect and maintain the
      confidentiality of such information, materials and documentation; provided
      that
      the foregoing will not prevent the Purchaser from disclosing or making available
      to its accountants, professional advisors and bankers and other lenders, any
      such information, materials and documentation on a confidential basis for the
      purpose of carrying out the transactions contemplated by this
      Agreement.

     

    6.3. Return
      of Information

     

    If
      the
      purchase of the Business and Assets pursuant to this Agreement is not completed,
      the Purchaser shall return to the Vendor all materials, documentation, data,
      records, drawings and other papers and copies thereof (whether on paper or
      in
      electronic, magnetic, photographic, mechanical or optical storage) relating
      to
      the Assets or the Business which is confidential and which is in the possession
      of the Purchaser and maintain the confidentiality of all information or
      knowledge obtained from the Vendor, and not use any such information or
      knowledge for any purpose whatsoever.

     

    
      
        
        

      

      
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    6.4. Consents
      and Re-issues

     

    The
      Vendor shall use all reasonable efforts to obtain, prior to the Closing
      Date:

     

    (a) all
      consents and approvals, in form and substance satisfactory to the Purchaser,
      acting reasonably, necessary for the assignment of the Vendor's interests in
      the
      Contracts and the Permits, and of any other of the Assets, to the Purchaser;
      and

     

    (b) if
      applicable, the re-issue of any of the Contracts and the Permits in the name
      of
      the Purchaser, and the Vendor shall not, except as presently contemplated by
      the
      terms thereof, or except with the prior written consent of the Purchaser, agree
      to any amendment or variation to the terms of any of the Contracts or the
      Permits in connection with, or as a condition of, such assignment or
      re-issue.

     

    The
      Purchaser shall give to the Vendor such information and copies of such documents
      relating to the Purchaser which the Vendor may reasonably request in order
      to
      obtain any consent or approval, or re-issue referred to above.

     

    6.5. Consent
      Not Received by Closing

     

    If
      a
      consent or approval of a third party required to permit the transfer or
      assignment to the Purchaser of the Vendor's interest in any of the Contracts
      or
      the Permits, or of any other of the Assets, is not received on or before the
      Closing, and if, notwithstanding such non-receipt, the Vendor and the Purchaser
      proceed to complete the sale and the purchase of the Business and the Assets
      contemplated by this Agreement, the transfer or assignment of those Contracts
      and Permits, and other Assets, in respect of which the required consent has
      not
      been received on or before the Closing will not be effective in each case until
      the applicable consent or approval has been received, and such Contract or
      Permit, or other Asset, will be held by the Vendor following the Closing in
      trust for the benefit and exclusive use of the Purchaser, provided that Vendor
      shall not be required to incur out-of-pocket costs in excess of $25,000 in
      the
      aggregate in connection with all such consents and approvals unless Purchaser
      shall contemporaneously reimburse Vendor for such excess costs. 

     

    6.6. Non-assignable
      Contracts and Permits

     

    Notwithstanding
      any other provision of this Agreement, it is acknowledged and agreed by the
      Purchaser that certain of the Contracts are not by their terms, and certain
      of
      the Permits are not, assignable to the Purchaser. The parties agree that the
      aforementioned Contracts and Permits which are not assignable are not included
      in the Assets being sold and transferred to the Purchaser and are not included
      in the Contracts and Permits being assumed by the Purchaser. 

     

    6.7. Purchaser's
      Covenant

     

    The
      Purchaser shall, prior to the Closing Date, execute and deliver such assumption
      agreements and applications for consents in such forms and content, all as
      may
      be reasonably required by the Vendor to obtain the consents and approvals,
      and
      the re-issues, referred to in Section 6.4.

     

    
      
        
        

      

      
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          33 -

        
          

        

      

      
        
        

      

    

    6.8. Preservation
      of Records

     

    Following
      the Closing, Purchaser shall preserve and, during regular business hours and
      upon reasonable notice, make available to Vendor and its representatives for
      inspection and copying all Books and Records pertaining to the Vendor for
      periods prior to the Closing Date, wherever located, for six years from the
      Closing Date, for (i) the purposes of preparing Tax returns and financial
      statements and responding to Tax audits, (ii) the purposes of prosecuting or
      defending any claim, litigation, proceeding or investigation which arises out
      of
      or relates to the Vendor or this Agreement, and (iii) any other reasonable
      business purpose of Vendor or the Parent Company.

     

    6.9. Material
      Licenses

     

    The
      Vendor or Parent Company shall use reasonable commercial efforts to assign
      the
      Material Licenses to the Purchaser or to enter into a sublicense agreement
      with
      the Purchaser which allows the Purchaser the right to use the products or
      software relating to the Material Licenses or to make other arrangements
      reasonably satisfactory to the Purchaser with the third parties to the Material
      Licenses so that the Purchaser can use the products or software relating to
      the
      Material Licenses legally in order to continue to operate the Business, provided
      that any such assignment shall be limited to the University of Texas, WARF,
      Journyx, Doors and Agile licenses, and further provided that Vendor and Parent
      Company shall not be required to take any action which might result in any
      violation of any of the Material Licenses by Vendor or Parent Company or in
      any
      way jeopardize Parent Company’s rights under the SAMM (Sales Logix) or NED
      (Macola) licenses or to pay any fees to any licensor in connection with any
      such
      assignment, sublicence or other arrangement.

     

    6.10. FDA
      Matters

     

    Pursuant
      to FDA’s existing transfer procedure, Vendor and/or Parent Company shall:

     

    (i)
       file
      with
      FDA an original and a copy of a letter (on their letterhead and signed by a
      duly
      authorized Person) notifying FDA of the change of ownership of the Business
      (including any FDA filings) to Purchaser and take such other appropriate actions
      consistent with its obligations pursuant to Section 13.3; and 

     

    (ii)
       provide
      Purchaser with a complete copy of any PMA or 510k approvals. 

     

    Purchaser
      shall be responsible for all other steps necessary to perfect the transfer
      of
      the PMA Approval under FDA’s rules and procedures, including but not limited to,
      providing FDA with a written commitment to comply with conditions of approval
      applicable to the PMA Approval. 

     

    
      
        
        

      

      
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    7. Conditions
      of Closing

     

    7.1. Conditions
      of the Purchaser

     

    The
      obligation of the Purchaser to complete the purchase of the Business and the
      Assets contemplated by this Agreement is subject to the fulfillment of the
      following conditions:

     

    (a) Representations
      and Warranties: The representations and warranties of the Vendor and of the
      Parent Company contained in this Agreement being true and correct in all
      Material respects on and as of the Closing with the same effect as though such
      representations and warranties had been made as of the Closing;

     

    (b) Covenants:
      All of the covenants and obligations of the Vendor to be performed or observed
      on or before the Closing pursuant to this Agreement having been duly performed
      or observed;

     

    (c) Releases:
      There having been delivered to the Purchaser duly executed releases in
      registrable form where applicable, of or evidence to the satisfaction of the
      Purchaser as to the discharge of, all Encumbrances against the Assets including
      the Permitted Encumbrances numbered 5 through 7 in Schedule I except Permitted
      Encumbrances numbered 1 through 4 in Schedule I; and

     

    (d) Non-Competition
      Agreement: The Vendor and the Parent Company having executed and delivered
      to
      the Purchaser a non-competition agreement in the form in Schedule V;
      and

     

    (e) The
      Vendor shall have obtained the Product Liability Insurance;

     

    In
      the
      event that any of the foregoing conditions are not performed or fulfilled at
      or
      before the Closing, the Purchaser may terminate this Agreement, in which event,
      subject to Section 13.9 the Purchaser will be released from all obligations
      under this Agreement, and the Vendor and the Parent Company will also be so
      released unless the Vendor or the Parent Company, as the case may be, was
      reasonably capable of causing such condition or conditions to be fulfilled
      or
      unless the Vendor or the Parent Company, as the case may be, has breached any
      of
      its covenants or obligations in or under this Agreement. The foregoing
      conditions are for the benefit of the Purchaser only and accordingly the
      Purchaser will be entitled to waive compliance with any such conditions if
      it
      sees fit to do so, without prejudice to its rights and remedies at law and
      in
      equity and also without prejudice to any of its rights of termination in the
      event of non-performance of any other conditions in whole or in
      part.

     

    7.2. Conditions
      of the Vendor

     

    The
      obligation of the Vendor to complete the sale of the Business and the Assets
      contemplated by this Agreement is subject to the fulfillment of each of the
      following conditions:

     

    
      
        
        

      

      
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          35 -

        
          

        

      

      
        
        

      

    

    (a) Representations
      and Warranties: The representations and warranties of the Purchaser contained
      in
      this Agreement being true and correct in all Material respects on and as of
      the
      Closing with the same effect as though such representations and warranties
      had
      been made as of the Closing; 

     

    (b) Covenants:
      All of the covenants and obligations of the Purchaser to be performed or
      observed on or before the Closing pursuant to this Agreement having been duly
      performed or observed; 

     

    (c) Assumption
      Agreement: The Purchaser having executed and delivered to Vendor the Assumption
      Agreement, in the form attached hereto as Schedule P; 

     

    (d) To
      the
      extent required by the terms of the Lease, the landlord under the Lease shall
      have consented to the assignment thereof to the Purchaser; and

     

    (e) The
      Vendor shall have obtained the Product Liability Insurance.

     

    In
      the
      event that any of the foregoing conditions are not performed or fulfilled at
      or
      before the Closing, the Vendor may terminate this Agreement, in which event,
      subject to Section 13.9 the Vendor and the Parent Company will be released
      from
      all obligations under this Agreement, and the Purchaser will also be so released
      unless the Purchaser was reasonably capable of causing such condition or
      conditions to be fulfilled or unless the Purchaser has breached any of its
      covenants or obligations in or under this Agreement. The foregoing conditions
      are for the benefit of the Vendor only and accordingly the Vendor will be
      entitled to waive compliance with any such conditions if it sees fit to do
      so,
      without prejudice to its rights and remedies at law and in equity and also
      without prejudice to any of its rights of termination in the event of
      non-performance of any other conditions in whole or in part.

     

    7.3. Mutual
      Conditions

     

    The
      obligations of the Vendor to complete the sale of the Business and Assets
      contemplated by this Agreement and of the Purchaser to complete the purchase
      of
      the Business and Assets as contemplated by this Agreement are subject to
      fulfillment of the following conditions:

     

    (a) No
      Orders
      or Proceedings: No injunction or restraining order or other decision, ruling
      or
      order of a court, board, Governmental Authority or administrative tribunal
      of
      competent jurisdiction being in effect which prohibits, restrains, limits or
      imposes conditions on the transactions contemplated by this Agreement and no
      action or proceeding having been instituted or remaining pending or having
      been
      threatened before any such court, board, Governmental Authority or
      administrative tribunal to restrain, prohibit, limit or impose conditions on
      the
      transactions contemplated by this Agreement; and

     

    
      
        
        

      

      
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          36 -

        
          

        

      

      
        
        

      

    

    (b) Closing:
      The Closing shall have occurred on or before September 17, 2007;

     

    In
      the
      event that any of the foregoing conditions is not performed or fulfilled at
      or
      before the Closing, either the Purchaser or the Vendor may, subject to Section
      13.9, terminate this Agreement, in which event the parties will be released
      from
      all obligations under this Agreement, except that no party will be released
      from
      its obligations if it was reasonably capable of causing such condition or
      conditions to be fulfilled or has breached any of its covenants or obligations
      in or under this Agreement.

     

    8. Employees 

     

    8.1. Vendor
      Actions

     

    Except
      as
      set forth in Section 8.3, once the
      Closing
      occurs,
      the Employees will cease to be employed by the Vendor, and the Vendor shall
      pay
      all earned and outstanding compensation owing to them as of the Closing Date,
      including without limitation, salary, wages, overtime, benefits,
      commissions (in accordance with Vendor’s Commission Plans), sick
      leave pay for sick leave taken, and vacation pay for vacation days taken or
      accrued; provided, however, that the Vendor shall not be liable for or required
      to pay any severance pay,
      bonuses, (other than retention bonuses) and benefits under the agreements listed
      in Schedule 8.1 (the “Employee Agreements”). The Vendor shall provide to the
      Purchaser evidence,
      reasonably
      satisfactory to the Purchaser at the Closing, that the said Employees’
employment has been terminated and that they have been paid as aforesaid.

     

    8.2. Purchaser
      Actions

     

    The
      Purchaser shall offer all the Employees listed on Schedule B, other
      than those who are parties to the Employee
      Agreements,
      employment subject to the Purchaser’s terms
      and
      conditions
      of
      employment
      and
      subject to the Purchaser’s planned reorganization following the Closing. Until
      said reorganization following the Closing, the Employees shall earn
      substantially the same wages
      and
      shall work at the same
      location as prior to the Closing.
      For all
      Employees hired by the Purchaser
      the
      terms and conditions of employment shall be in accordance with the policies
      and
      benefits of the Purchaser. For any Employee who is not hired by Purchaser,
      Purchaser will be responsible for payment of severance benefits,
      provided, however, that no severance shall be payable to any Employee who is
      offered employment by Purchaser in
      accordance with this Section 8.2 but
      who
      declines such offer of employment. 

     

    8.3
       Employee
      Agreements

     

    For
      those
      Employees who are parties to the Employee Agreements who wish to continue in
      their employment, the employment of said Employees will not cease at the Closing
      but will continue post-Closing, with the Purchaser as the employer, subject
      to
      the terms, policies and benefits of the Purchaser except
      to
      the extent that the Employee Agreements provide for greater non-stock
      benefits.
      With
      regard to such Employees, the Vendor will remain responsible for payment of
      all
      earned and outstanding compensation owing to them as of the Closing Date,
      including without limitation, salary, wages, overtime, benefits, commissions
      (in
      accordance with Vendor’s Commission Plans), incentive payments, sick leave pay
      for sick leave taken, vacation pay for vacation days taken or accrued, and
      any
      form of retention bonuses. 

     

    
      
        
        

      

      
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          37 -

        
          

        

      

      
        
        

      

    

    If
      any
      Employee who is party to an Employee Agreement does not continue employment
      with
      the Purchaser post-Closing, the Vendor will remain responsible for payment
      of
      all earned and outstanding compensation owing to the Employee as of the Closing
      Date, including without limitation, salary, wages, overtime, benefits,
      commissions (in accordance with Vendor’s Commission Plans), sick leave pay for
      sick leave taken, vacation pay for vacation days taken or accrued, and retention
      bonuses. 

     

    The
      Purchaser will be responsible to the Employees who are parties to the Employee
      Agreements for all obligations of the Vendor or Parent Company under the
      Employee Agreements, other than any retention bonuses or stock benefits in
      accordance with the terms of the Employee Agreements. 

     

    8.4
       No
      New
      Contractual Rights or Obligations

     

    Nothing
      contained in this Section 8 dealing with the Vendor’s Employees shall be
      construed as creating new contractual rights and/or obligations on the part
      of
      the Vendor or the Purchaser to any current or former Employee of
      Vendor.

     

    9. Closing
      Transactions

     

    9.1. Time
      and Place

     

    The
      Closing shall take place in the offices of the Purchaser at 10:00 o'clock a.m.
      Virginia time on the Closing Date; or at such other time and date, or both,
      as
      the Vendor and the Purchaser or their respective counsel may agree
      upon.

     

    9.2. Vendor's
      Closing Documents

     

    At
      the
      Closing, the Vendor shall deliver the following to the Purchaser:

     

    (a) all
      deeds, bills of sale, conveyances, transfers, assignments, instruments and
      other
      documents which are necessary to assign, sell and transfer the Business and
      the
      Assets to the Purchaser as contemplated by this Agreement in such form and
      content as the Purchaser may require, acting reasonably; 

     

    (b) certified
      copies of a resolution of the directors and a resolution of the shareholders
      of
      the Vendor approving the completion of the transactions contemplated by this
      Agreement including, without limitation, the sale of the Business and Assets,
      and the execution and delivery of this Agreement and all documents, instruments
      and agreements required to be executed and delivered by the Vendor pursuant
      to
      this Agreement in such form and content as the Purchaser may require, acting
      reasonably;

     

    
      
        
        

      

      
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          38 -

        
          

        

      

      
        
        

      

    

    (c) a
      certified copy of a resolution of the directors of the Parent Company approving
      the execution and delivery of this Agreement and all documents, instruments
      and
      agreements required to be executed and delivered by the Parent Company pursuant
      to this Agreement and content as the Purchaser may require, acting
      reasonably;

     

    (d) possession
      of the Assets; and

     

    (e) if
      not
      previously delivered to the Purchaser, the original Contracts and Permits to
      the
      extent in the possession of the Vendor. 

     

    9.3. Purchaser's
      Closing Documents

     

    At
      the
      Closing the Purchaser shall deliver certified copies of resolutions of the
      directors of the Purchaser approving the transactions contemplated by this
      Agreement, including, without limitation, the purchase of the Business and
      the
      Assets, and the execution and delivery of this Agreement and all documents,
      instruments and agreements required to be executed and delivered by the
      Purchaser pursuant to this Agreement in such form and content as the Vendor
      may
      require, acting reasonably.

     

    9.4. Concurrent
      Delivery

     

    It
      shall
      be a condition of the Closing that all matters of payment and the execution
      and
      delivery of documents by any party to the others pursuant to the terms of this
      Agreement shall be concurrent requirements and that nothing will be complete
      at
      the Closing until everything required as a condition precedent to the Closing
      has been paid, executed and delivered, as the case may be.

     

    9.5. Transfer
      of Assets and Business

     

    Subject
      to compliance with the terms and conditions of this Agreement, the transfer
      of
      the Assets and the Business to the Purchaser shall be deemed to take effect
      as
      at the Closing.

     

    10. [INTENTIONALLY
      LEFT BLANK]

     

    11. Post-closing
      Matters

     

    11.1. Change
      and Use of Name

     

    The
      Vendor agrees that within 10 days from the Closing Date the Vendor shall change
      its name and the names of any of its Affiliates that include the words “NOMOS”
to names that do not include the words “NOMOS” or any part thereof or any
      similar words. The Vendor and the Parent Company agree that from and after
      the
      Closing Date neither the Vendor, the Parent Company nor any of their Affiliates
      will use the words “NOMOS” or any part thereof or any similar
      words.

     

    
      
        
        

      

      
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          39 -

        
          

        

      

      
        
        

      

    

    12. Survival
      of Representations and Recourse

     

    12.1. Survival

     

    The
      representations, warranties, covenants and obligations of the Vendor and of
      the
      Parent Company in or under this Agreement and in or under any documents,
      instruments and agreements delivered pursuant to this Agreement shall survive
      the completion of the transactions contemplated hereby regardless of any
      investigations that the Purchaser may make or cause to be made, or knowledge
      it
      may have, prior to the Closing and shall continue in full force and effect
      for a
      period of one year from the Closing Date, as set out in Section
      12.2.

     

    The
      representations, warranties, covenants and obligations of the Purchaser in
      or
      under this Agreement and in or under any documents, instruments and agreements
      delivered pursuant to this Agreement shall survive the completion of the
      transactions contemplated hereby regardless of any independent investigations
      that the Vendor and Parent Company may make or cause to be made, or knowledge
      either of them may have, prior to the Closing and shall continue in full force
      and effect for a period of one year from the Closing Date, as set out in Section
      12.3, provided that Purchaser's obligations with respect to the Assumed
      Liabilities and under Sections 2.6, 6.8, 8.2, 8.3 and Article 12 shall continue
      thereafter in accordance with their terms.

     

    12.2. Indemnification
      by Vendor and the Parent Company.
      Vendor
      and the Parent Company, shall severally and jointly indemnify and hold Purchaser
      harmless against and with respect to, and shall reimburse Purchaser for any
      and
      all losses, liabilities, damages, costs and expenses including reasonable
      attorney's fees (collectively “Losses”) arising out of or related to:

     

    (a) Any
      Breach of any representation or warranty, or nonfulfillment of any covenant
      by
      Vendor contained herein;

     

    (b) Any
      and
      all Retained Liabilities; and

     

    (c) Any
      and
      all actions, suits, proceedings, claims, demands, assessments, judgments, costs
      and expenses, including, without limitation, reasonable legal fees and expenses,
      incident to any of the foregoing or incurred in investigating or attempting
      to
      avoid the same or to oppose the imposition thereof, or in enforcing this
      indemnity; 

     

    provided
      that with respect to any claim for indemnification under this Section
      12.2:

     

    (i) written
      notice of any such claim is given by or on behalf of the Purchaser to the Vendor
      or the Parent Company, as the case may be, within one year from the Closing
      Date; 

     

    
      
        
        

      

      
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          40 -

        
          

        

      

      
        
        

      

    

    (ii) the
      aggregate amount of all such Losses exceeds $100,000.00, provided that such
      aggregate amount shall not include any Loss which, on an individual basis,
      does
      not exceed $5,000, and the Vendor and the Parent Company shall not have any
      liability with respect to any such Losses; 

     

    (iii) the
      Vendor and the Parent Company shall have liability only to the extent that
      the
      aggregate amount of the Losses under (ii) exceeds $100,000.00, and then only
      for
      the amount of any such excess; and

     

    (iv) the
      aggregate amount of liability for all such Losses is limited to
      $2,000,000.00.

     

    12.3. Indemnification
      by Purchaser.
      Purchaser shall indemnify and hold Vendor and Parent Company harmless against
      and with respect to, and shall reimburse Vendor and Parent Company for any
      and
      all Losses arising from or related to: 

     

    (a) Any
      breach of any representation or warranty or nonfulfillment of any covenant
      by
      Purchaser contained herein; 

     

    (b) Any
      and
      all of the Assumed Liabilities; 

     

    (c) Any
      and
      all actions, suits, proceedings, claims, demands, assessments, judgments, costs
      and expenses, including, without limitation, reasonable legal fees and expenses,
      incident to any of the foregoing or incurred in investigating or attempting
      to
      avoid the same or to oppose the imposition thereof, or in enforcing this
      indemnity; and

     

    (d) Any
      and
      all liabilities and obligations under the Worker Adjustment and Retraining
      Notification Act of 1988, as amended, arising as a result of termination of
      employment, layoff or hours reduction of any Employee, or any other actions
      taken by the Purchaser, after the Closing;

     

    provided
      that with respect to any claim for indemnification based upon a breach of a
      representation or warranty by the Purchaser under this Agreement, written notice
      of such claim is given on behalf of the Vendor or the Parent Company to the
      Purchaser within one year of the Closing Date:

     

    12.4. Defense
      of Third Party Claims

     

    In
      the
      event of a claim (an “Indemnity Claim”) being made by a third party against a
      party to this Agreement (the “Indemnified Party”) in respect of which, subject
      to Section 12.2, another party to this Agreement (the “Indemnifier”) is or may
      be obligated under or arising out of this Agreement to indemnify, pay damages
      to
      or otherwise compensate the Indemnified Party, the following provisions shall
      apply.

     

    The
      Indemnified Party shall promptly give written notice to the Indemnifier of
      any
      Indemnity Claim in respect of which the Indemnified Party intends to claim
      for
      indemnification against the Indemnifier. Such notice shall specify with
      reasonable particularity (to the extent that the information is available)
      the
      nature of the Indemnity Claim. The Indemnifier may, at its own expense, assume
      control of the negotiation, settlement and defense of such Indemnity Claim.
      The
      Indemnified Party shall co-operate with the Indemnifier in respect of such
      Indemnity Claim and the Indemnifier shall reimburse the Indemnified Party for
      all the Indemnified Party's reasonable expenses as a result of the Indemnifier's
      assumption of such Indemnity Claim and arising from the Indemnified Party's
      co-operation. 

     

    
      
        
        

      

      
        -
          41 -

        
          

        

      

      
        
        

      

    

    The
      Indemnified Party will have the right to participate in the negotiation,
      settlement and defense of such Indemnity Claim at its own expense and will
      have
      the right to disagree on reasonable grounds with the selection and retention
      of
      counsel, in which case counsel satisfactory to the Indemnifier and the
      Indemnified Party shall be retained by the Indemnifier. If the Indemnifier
      fails
      to defend any Indemnity Claim within a reasonable time, the Indemnified Party
      will be entitled to assume control of the Indemnity Claim at the expense of
      the
      Indemnifier and the Indemnifier will be bound by the results obtained by the
      Indemnified Party with respect to such Indemnity Claim.

     

    The
      following provisions shall also apply with respect to Indemnity
      Claims:

     

    (a) In
      the
      event that any Indemnity Claim is of a nature such that the Indemnified Party
      is
      legally bound or required by applicable law to make a payment to any person
      (a
“Third Party”) with respect to such Indemnity Claim before the completion of
      settlement negotiations or related legal proceedings, including, without
      limitation, the posting of any security to stay any process of execution or
      judgment, the Indemnifier shall be obligated to make such payment or post
      security therefor on behalf of the Indemnified Party. If the Indemnifier fails
      to do so, the Indemnified Party may make such payment or post security therefor
      and the Indemnifier shall, forthwith after demand by the Indemnified Party,
      reimburse the Indemnified Party for any such payment or cause the security
      to be
      replaced and released. If the amount of any liability of the Indemnified Party
      under the Indemnity Claim in respect of which such a payment was made, as
      finally determined, is less than the amount which was paid by the Indemnifier
      to
      the Indemnified Party, the Indemnified Party shall, forthwith after receipt
      of
      the difference from the Third Party, pay the amount of such difference to the
      Indemnifier.

     

    (b) Except
      in
      the circumstance contemplated by Section 12.4(a) above, and unless the
      Indemnifier fails to assume control of the negotiation, settlement and defense
      of any Indemnity Claim, the Indemnified Party shall not negotiate, settle,
      compromise or pay any Indemnity Claim except with the prior written consent
      of
      the Indemnifier (which consent shall not be unreasonably withheld).

     

    (c) The
      Indemnified Party shall not permit any right of appeal in respect of any
      Indemnity Claim to terminate without giving the Indemnifier notice thereof
      and
      an opportunity to contest such Indemnity Claim.

     

    
      
        
        

      

      
        -
          42 -

        
          

        

      

      
        
        

      

    

    (d) The
      Indemnified Party and the Indemnifier shall co-operate fully with each other
      with respect to Indemnity Claims, shall keep each other fully advised with
      respect thereto (including supplying copies of all relevant documentation
      promptly as it becomes available) and shall each designate a senior officer
      who
      will keep himself or herself informed about and be prepared to discuss the
      Indemnity Claim with his or her counterpart and with counsel at all reasonable
      times.

     

    (e) Notwithstanding
      the above provisions of this Section 12.4, the Indemnifier shall not settle
      any
      Indemnity Claim or conduct any related legal or administrative proceeding in
      a
      manner which would, in the opinion of the Indemnified Party, acting reasonably,
      have a Material adverse impact on the Indemnified Party.

     

    (f) The
      provisions of this Section 12.4 are intended to set out the procedures to be
      followed with respect to an Indemnity Claim and, provided the Indemnified Party
      follows such procedures in all Material respects, nothing contained in this
      Section 12.4 will derogate from the Indemnifier's obligations to indemnify
      the
      Indemnified Party.

     

    12.5. Characterization
      of Indemnification Payments

     

    All
      payments paid by any party under this Article
      12
      shall be
      treated as adjustments to the Purchase Price for all Tax purposes.

     

    12.6. Computation
      of Losses; Disputes

     

    The
      amount of any Losses for which indemnification is provided under this
Article
      12
      shall be
      reduced by (a) any related Tax benefits if and when actually realized or
      received (but only after taking into account any Tax benefits (including,
      without limitation, any net operating losses or other deductions and any
      carryovers or carrybacks) to which the Indemnified Party would be entitled
      without regard to such item), except to the extent such recovery has already
      been taken into account in determining the amount of any such Losses, and (b)
      any insurance recovery if and when actually realized or received, in each case
      in respect of such Losses. Any such recovery shall be promptly repaid by the
      Indemnified Party to the Indemnifier following the time at which such recovery
      is realized or received pursuant to the previous sentence, minus all reasonably
      allocable costs, charges and expenses incurred by the Indemnitee in obtaining
      such recovery. Notwithstanding the foregoing, if (x) the amount of Losses for
      which the Indemnifier is obligated to indemnify the Indemnified Party is reduced
      by any Tax benefit or insurance recovery in accordance with the provisions
      of
      the previous sentence, and (y) the Indemnified Party subsequently is required
      to
      repay the amount of any such Tax benefit or insurance recovery or such Tax
      benefit or insurance recovery is disallowed, then the obligation of the
      Indemnifier to indemnify with respect to such amounts shall be reinstated
      immediately and such amounts shall be paid promptly to the Indemnified Party
      in
      accordance with the provisions of this Agreement.

     

    
      
        
        

      

      
        -
          43 -

        
          

        

      

      
        
        

      

    

    12.7. No
      Consequential Damages

     

    The
      obligations of the Indemnifier in respect of a claim for indemnification under
      this Agreement shall not include any special, exemplary or consequential
      damages, including business interruption or lost profits, or any punitive
      damages.

     

    12.8. Mitigation

     

    Each
      of
      the parties agrees to take all reasonable steps to mitigate their respective
      Losses upon and after becoming aware of any event which could reasonably be
      expected to give rise to any Losses that are indemnifiable
      hereunder.

     

    12.9. Subrogation

     

    Upon
      making any indemnification payment, the Indemnifier will, to the extent of
      such
      payment, be subrogated to all rights of the Indemnified Party against any third
      party in respect of the Loss to which the payment relates. Without limiting
      the
      generality of any other provision hereof, each such Indemnifier and Indemnified
      Party will duly execute upon request all instruments reasonably necessary to
      evidence and perfect the above-described subrogation rights.

     

    12.10. Exclusivity
      

     

    From
      and
      after the Closing, none of the parties hereto shall be liable or responsible
      in
      any manner whatsoever to any other party, whether for indemnification or
      otherwise, except for indemnity as expressly provided in this Article 12, which
      provides the exclusive remedies and causes of action of the parties hereto
      with
      respect to any matter arising out of or in connection with this Agreement or
      any
      Schedule or Exhibit hereto or any opinion or certificate delivered in connection
      herewith or any of the transactions contemplated hereby. The limitations or
      liability contained in this Article 12 shall not apply to liability for fraud
      on
      the part of any of the parties to this Agreement.

     

    12.11. Product
      Liability Insurance

     

    Vendor
      will use best commercial efforts to obtain prepaid product liability insurance
      in the form set out in Schedule 12.11 with respect to products manufactured
      or
      sold prior to the Closing Date for a period of 5 years from the Closing Date
      in
      the amount of $5,000,000.00, which shall name the Purchaser as a named insured
      (the “Product Liability Insurance”). If Vendor obtains the Product Liability
      Insurance, then notwithstanding any provision to the contrary in this Agreement,
      Purchaser’s sole recourse with respect to any Product Liability Matter shall be
      to the Product Liability Insurance, and neither Vendor nor Parent Company shall
      have any liability to Purchaser with respect to any Product Liability Matter.
      Neither the Vendor nor Parent Company will terminate, assign or cancel such
      Product Liability Insurance during the 5 year term. 

     

    
      
        
        

      

      
        -
          44 -

        
          

        

      

      
        
        

      

    

    13. Miscellaneous

     

    13.1. Legal
      and Other Fees and Expenses

     

    Unless
      otherwise specifically provided herein, the parties will pay their respective
      legal, accounting and other professional fees and expenses incurred by each
      of
      them in connection with the negotiation and settlement of this Agreement, the
      completion of the transactions contemplated by this Agreement and other matters
      pertaining hereto.

     

    13.2. Notices

     

    Any
      notice, request, demand or other communication required or permitted to be
      given
      under this Agreement shall be in writing and delivered by hand, facsimile
      transmission or prepaid registered mail (return receipt requested) to the party
      to which it is to be given as follows: 

     

    To
      the
      Vendor or the Parent Company: 

     

    North
      American Scientific, Inc.

    20200
      Sunburst Street

    Chatsworth,
      California 91311

    Attention:
      John B. Rush

    Facsimile
      No.: (818) 734-5224

     

    with
      a
      copy to:

     

    Seyfarth
      Shaw LLP

    131
      South
      Dearborn Street, Ste. 2400

    Chicago,
      Illinois 60603

    Attention:
      Allan J. Reich

    Facsimile
      No.: (312) 460-7000

     

    To
      the
      Purchaser: 

     

    Best
      Medical International, Inc.

    7643
      Fullerton Road,

    Springfield,
      VA 22153

    Attention:
      Krishnan Suthanthiran

    Facsimile
      No.: (703) 451-8421

     

    with
      a
      copy to:

     

    Best
      Medical International, Inc.

    7643
      Fullerton Road,

    Springfield,
      VA 22153

    Attention:
      Shawn Weingast

    Facsimile
      No.: (703) 451-8421

     

    
      
        
        

      

      
        -
          45 -

        
          

        

      

      
        
        

      

    

    or
      to
      such other address or fax number as a party may specify by notice given in
      accordance with this Section 13.2. Any such notice, request, demand or
      other communication given as aforesaid will be deemed to have been given, in
      the
      case of delivery by hand, when delivered, in the case of delivery by facsimile
      transmission, when a legible facsimile is received by the recipient if received
      before 5:00 p.m. on a Business Day, or on the next Business Day if such
      facsimile is received on a day which is not a Business Day or after 5:00 p.m.
      on
      a Business Day.

     

    13.3. Further
      Assurances

     

    Each
      of
      the parties shall execute and deliver such further documents, instruments and
      agreements and do such further acts and things as may be reasonably required
      from time to time, either before, on or after the Closing Date, to carry out
      the
      full intent and meaning of this Agreement, give effect to the transactions
      contemplated by this Agreement and assure to the Purchaser good and valid title
      to the Assets, free and clear of all Encumbrances except Permitted Encumbrances
      number 1 through 4 and the ability to continue the Business, provided that
      no
      party shall be required to incur any out-of-pocket costs in excess of $25,000.00
      in the aggregate after the Closing in connection with the foregoing, provided
      that in the case of Vendor and Parent Company such $25,000.00 limit shall be
      applied to them collectively and not individually, and any unreimbursed costs
      incurred under Section 6.5 shall count against said limit.

     

    13.4. Time
      of the Essence

     

    Time
      shall be of the essence of this Agreement.

     

    13.5. Entire
      Agreement

     

    This
      Agreement constitutes the entire agreement between the Vendor, the Parent
      Company and the Purchaser pertaining to the transactions contemplated by this
      Agreement and supersedes all prior agreements, undertakings, negotiations and
      discussions, whether oral or written, of the Vendor, the Parent Company and
      the
      Purchaser, other than the Confidentiality Agreement between the Parent Company
      and the Purchaser dated as of April 26, 2007, which shall continue in effect
      in
      accordance with its terms, and there are no warranties, representations,
      covenants, obligations or agreements between the Vendor or the Parent Company
      (or any Affiliate thereof) and the Purchaser except as set forth in this
      Agreement.

     

    13.6. Assignment

     

    Except
      with the written consent of the other parties (which may be arbitrarily
      withheld), none of the parties may assign any of their respective benefits,
      obligations or liabilities under or in respect of this Agreement; provided
      however that, at any time prior to the Closing, the Purchaser may, without
      any
      such consent, assign all of its rights and benefits under this Agreement to
      any
      Affiliate of the Purchaser which delivers to the Vendor an instrument in writing
      executed by the Affiliate confirming that it is bound by and shall perform
      all
      of the covenants and obligations of the Purchaser under this Agreement as if
      it
      were an original signatory thereto, jointly and severally bound thereby with
      the
      Purchaser, and such instrument in writing shall contain an acknowledgement
      of
      the Purchaser that it continues to be bound by this Agreement. Unless otherwise
      agreed in writing by the Vendor and the Parent Company, no such assignment
      will
      relieve the Purchaser of its obligations and liabilities under this Agreement.
      In the event of an assignment contemplated above, any reference in this
      Agreement to “Purchaser” will be deemed to include the aforesaid
      assignee.

     

    
      
        
        

      

      
        -
          46 -

        
          

        

      

      
        
        

      

    

    13.7. Invalidity

     

    Each
      of
      the provisions contained in this Agreement is distinct and severable and a
      determination of illegality, invalidity or unenforceability of any such
      provision or part hereof by a court of competent jurisdiction shall not affect
      the validity or enforceability of any other provision hereof, unless as a result
      of such determination this Agreement would fail in its essential
      purposes.

     

    13.8. Waiver
      and Amendment

     

    Except
      as
      expressly provided in this Agreement, no amendment or waiver of it will be
      binding unless made in writing by the party to be bound by such amendment or
      waiver. No waiver of any provision, or any portion of any provision, of this
      Agreement will constitute a waiver of any other part of the provision or any
      other provision of this Agreement nor a continuing waiver unless otherwise
      expressly provided.

     

    13.9. Surviving
      Provisions on Termination

     

    Notwithstanding
      any other provisions of this Agreement, if this Agreement is terminated, the
      provisions of Sections 6.2, 6.3, and 13.1 shall survive such termination and
      remain in full force and effect.

     

    13.10. Captions

     

    The
      captions in this Agreement are inserted for convenience of reference only and
      shall not be considered a part of or affect the construction or interpretation
      of any provision of this Agreement.

     

    13.11. Counterparts

     

    This
      Agreement may be signed in counterparts and each such counterpart will
      constitute an original document and such counterparts, taken together, will
      constitute one and the same instrument. Electronically transmitted or facsimile
      copies shall be deemed to be originals.

     

    
      
        
        

      

      
        -
          47 -

        
          

        

      

      
        
        

      

    

    13.12. Enurement

     

    This
      Agreement will enure to the benefit of and will be binding upon the parties
      and
      their respective successors and any Affiliate of the Purchaser which is an
      assignee of the Purchaser, and any other assignee consented to, as contemplated
      in Section 13.6.

     

    [Remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        -
          48 -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF the parties have executed this Agreement as of the day and
      year
      first above written.

     

    

      
        	
                Best
                  Medical International, Inc.

              	
                )

              	 
	 	
                )

              	 
	 	
                )

              	 
	
                By: 
                  /s/
                  Shawn Weingast

              	
                )

              	 
	
                Name:
                  Shawn Weingast

              	
                )

              	 
	
                Title:  
                  General Counsel

              	
                )

              	 
	 	
                 

              	 
	 	
                 

              	 
	
                NOMOS
                  Corporation

              	
                )

              	 
	 	
                )

              	 
	 	
                )

              	 
	
                By: 
                  /s/
                  John B. Rush

              	
                )

              	 
	
                Name:
                  John B. Rush

              	
                )

              	 
	
                Title:  
                  President & CEO

              	
                )

              	 
	 	 	 
	
                 

              	
                 

              	 
	
                North
                  American Scientific, Inc.

              	
                )

              	 
	 	
                )

              	 
	 	
                )

              	 
	
                By: 
                  /s/
                  John B. Rush

              	
                )

              	 
	
                Name:
                  John B. Rush

              	
                )

              	 
	
                Title:  
                  President & CEO

              	
                )

              	 

      

    

    
      
        
        

      

      
        -
          49 -

        
          

        

      

      
        
        

      

    

    Schedule
      A-Financial Statements

    Schedule
      B-Employees

    Schedule
      C-Excluded Assets

    Schedule
      D-Intellectual Property

    Schedule
      E-Leased Premises and Leases

    Schedule
      F-Permits

    Schedule
      G-Material Contracts

    Schedule
      H-Office Equipment

    Schedule
      I-Permitted Encumbrances

    Schedule
      J-Personal Property

    Schedule
      K-Customers and Suppliers

    Schedule
      L-Bank Facilities

    Schedule
      M-Litigation

    Schedule
      N-Existing Employment Contracts

    Schedule
      O-Benefit Plans

    Schedule
      P- Assumption Agreement

    Schedule
      Q-Computer Hardware

    Schedule
      R-Computer Software

    Schedule
      S-Manufacturing Equipment

    Schedule
      T-Vehicles

    Schedule
      U-Product Warranties

    Schedule
      V-Non-Competition Agreement

    Schedule
      1.1(v) - Disclosure Letter

    Schedule
      2.5(a)(i) - Warranty Agreements

    Schedule
      2.5(a)(ii) - Vendor Contracts

    Schedule
      2.5(a)(vii) - Certain Additional Assumed Liabilities

    Schedule
      2.5(b)(xiv) - Bonuses

    Schedule
      LR - Legal Requirements

    Schedule
      GA - Government Authorization

    Schedule
      3.2(l) - Non-Assignable Contracts

    Schedule
      3.3 - Jurisdictions in which Business is carried on

    Schedule
      3.6 - Insurance

    Schedule
      6.1(a)(vii) - Vendor’s Commission Plans

    Schedule
      8.1 - Employee Agreements

    Schedule
      W - Certain Assets: Accounts Receivable as at August 31, 2007, Prepaid

    Expenses
      and Stock

    
      
        
        

      

      
        -
          50 -

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