Document:

Exhibit 10.9

 

EMPLOYEE STOCK OPTION AGREEMENT

 

THIS
EMPLOYEE STOCK OPTION AGREEMENT, hereinafter referred to as
the “Option” or the “Agreement,” is made effective as of the 31st
day of December, 2004, between American Equity Investment Life Holding Company
(the “Company”) and, -Kevin Wingert-
(the “Optionee”).

 

The Company hereby grants an option of  -20,000- shares of
common stock of the Company, $1.00 par value per share (“Stock”), to the
Optionee at the price and in all respects subject to the terms, definitions and
provisions of the Agreement, and the Employee Stock Option Plan, adopted by the
Company effective July 1, 2000, as amended (the “Plan”), the terms and
definitions of which are incorporated herein, unless the context implies
otherwise.

 

1.               Option Price.  The option price is $10.77 for each share, the price being at
least 100% of the fair market value as determined by the Board of Directors, of
a share of the Stock on the date of the grant of this Option.

 

2.               Exercise of Option and Vesting Schedule.  This Option is granted for a ten (10) year
term and, therefore, may not be exercised after the expiration of ten (10) years
from the date that it is granted.  This
Option shall become exercisable at any time subject to terms of this Agreement
and applicable law.

 

(a)                                  Vesting Schedule.  This
Option will vest on the last day of the sixth full month after the date of this
Agreement.  Should the employment of the
Optionee be terminated with or without cause (except for death or disability)
prior to the date of vesting, then Optionee will forfeit all rights under this
Agreement.

 

(b)                                 Right to Exercise. 
This Option shall be exercisable during the term of the Option, by the Optionee:

 

(i)                                   While
the Optionee is employed by the Company, or within thirty (30) days of the
termination of Optionee’s employment; provided that in the event the Optionee’s
employment with the Company is terminated because of disability, as that term
is defined in Section 105(d) (4) of the Internal Revenue Code,
as amended (the “Code”), the Option privileges, with respect to the shares
purchasable by the Optionee as of the date that the Optionee’s employment is
terminated, may be exercised by the Optionee within one (1) year after the
termination of the Optionee’s employment by the Company.  However, nothing contained within this
statement shall be construed to extend the ultimate term of this Option beyond
the period of time as set out above in paragraph 2.

 

(ii)                                If
the Optionee should die during the option period while employed by the Company,
the option privileges may be exercised in full by the legal representative of
the Optionee’s estate, or by the person or persons to whom the Optionee’s
rights under the Option shall have passed by will or the laws of descent and
distribution within one (1) year after the Optionee’s date of death.  However, nothing contained within this
statement shall be construed to extend the ultimate term of this Option beyond
the period of time as set out above in paragraph 2.

 

(c)                                  Restrictions on Exercise.  The
minimum number of shares for which this Option may be exercised is 50
shares.  In addition, as a condition to
the Optionee’s exercise of this option, the Company may require the person
exercising this Option to execute any buy-sell agreement in effect between the
Company and its shareholders and to made such representations or warranties to
the Company as may be required by applicable law or regulation.

 

1

 

(d)                                 Method of Exercise.  This
Option shall be exercisable by a written notice which shall:

 

(i)                                   State
the election to exercise the Option, the number of shares in respect of which
it is being exercised (which may be no less than 50 shares), the person in
whose name the stock certificate for such shares of Stock is to be registered,
the person’s address and social security number (or if more than one, the
names, addresses and social security numbers of such persons);

 

(ii)                                Contain
such representations and agreements as to the holder’s investment intent with
respect to such shares of Stock as may be satisfactory to the Company’s
counsel; and

 

(iii)                             Be signed by the person or
persons entitled to exercise the Option and, if the Option is being exercised
by any persons other than the Optionee, be accompanied by proof satisfactory to
counsel for the Company, of the right of such person or persons to exercise the
Option.

 

Payment of the purchase price of any shares with
respect to which the Option is being exercised shall be by certified or bank
cashier check or by shares of the Company’s Stock and shall be delivered with
the notice of exercise.

 

3.               Nontransferablity of Option.  This Option may not be transferred in any
manner otherwise than by will or the laws of descent and distribution and may
be exercised during the lifetime of the Optionee only by the Optionee and after
Optionee’s death by the legal representative of the Optionee’s estate or by the
person or persons to whom the Optionee’s rights under the Option passed by will
or the laws of descent and distribution. 
This Option shall not be pledged or hypothecated in any way and shall
not be subject to executive, attachment of similar process except with the
express consent of the Committee.

 

4.              Adjustments

 

(a)                                  Whenever
a stock split, stock dividend or other relevant change in capitalization of the
Company occurs, (1) the number of shares that can thereafter be purchased
and the option price per share under each Option that has been granted and not
exercise, and (2) the number of shares used in determining whether a
particular Option is grantable thereafter shall be appropriately adjusted.

 

(b)                                 In
the event of the dissolution or liquidation of the Company, any Option granted
under the Plan shall terminate as of a date to be fixed by the Committee,
provided that not less than 30 days’ written notice of the date so fixed shall
be given to each Optionee and each such Optionee shall have the right during
such period to exercise Optionee’s Option as to all or any part of the shares
covered thereby, including shares as to which such Option would not otherwise
be exercisable by reason of an insufficient lapse of time.

 

(c)                                  Adjustments
and determinations under this paragraph 3 shall be made by the Board of
Directors of Life Company, whose decisions as to what adjustments or determinations
shall be made, and the extent thereof, shall be final, binding and conclusive.

 

5.               Notices.  Each notice relating to this Agreement shall
be in writing and delivered in person or by certified mail to the proper
address, and shall be deemed to have been given on the date it is
received.  Each notice to the Company
shall be addressed to it as its principal office, attention of the
Secretary.  Each notice to the Optionee
or other person or person then entitled to exercise the Option shall be addressed
to the Optionee or such other person or persons at the Optionee’s address set
forth in the

 

2

 

heading
of this Agreement.  Anyone to whom a
notice may be given under this Agreement may designate a new address by written
notice to that effect.

 

6.               Benefits of Agreement.  This Agreement shall inure to the benefit of
and be binding upon each successor of the Company.  All obligations imposed upon the Optionee and
all rights granted to the Company under this Agreement shall be binding upon
the Optionee’s heir, legal representatives and successors.  This Agreement shall be the sole and
exclusive source of any and all rights which the Optionee, the Optionee’s
heirs, legal representatives, or successors may have in respect to the Plan or
any options or Stock granted or issued thereunder whether to the Optionee or to
any other person.

 

7.               Resolution of Disputes.  Any dispute or disagreement which should
arise under, or as a result of, or in any way relate to, the interpretation,
construction or applicability of this Agreement will be determined by the Board
of Directors of the Company.  Any
determination made hereunder shall be final, binding, and conclusive for all
purposes.

 

IN
WHITNESS WHEREOF, the Company and the Optionee have cased
this Agreement to be executed effective as of the day, month and year first
above written.

 

 

	
   

  	
  AMERICAN
  EQUITY INVESMENT

  
	
   

  	
  LIFE
  HOLDING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  D.J. Nobel

  	
   

  
	
   

  	
   

  	
   

  	
  D.J. Noble,
  President

  	
   

  

 

 

	
  ATTEST:

  
	
   

  
	
   

  
	
  /s/ Debra J.
  Richardson

  	
   

  
	
  Debra J.
  Richardson, Secretary

  

 

 

	
   

  	
  OPTIONEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin
  Wingert

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Kevin Wingert

  

 

3Exhibit 10.1

 

Agreement

 

 

by and among

 

 

CGI HOLDING CORPORATION d/b/a THINK
PARTNERSHIP INC.

 

RESO MERGER SUB, INC.

 

REAL ESTATE SCHOOL ONLINE INC.

 

and

 

PERRY
JOHANNESBURG

 

 

 

DATED AS OF JULY 14, 2005

 

1

 

Table of Contents

 

	
  ARTICLE I
  DEFINITIONS 

  	
   

  
	
   

  	
   

  
	
  ARTICLE II
  THE MERGER

  	
   

  
	
  2.1

  	
  The
  Merger

  	
   

  
	
  2.2

  	
  Effective Time

  	
   

  
	
  2.3

  	
  Effect of the Merger

  	
   

  
	
  2.4

  	
  Articles of Incorporation and Bylaws

  	
   

  
	
  2.5

  	
  Directors and Officers

  	
   

  
	
  2.6

  	
  Effect on RESO Capital Stock

  	
   

  
	
  2.7

  	
  Cancellation of Shares

  	
   

  
	
  2.8

  	
  Stock Options; Warrants

  	
   

  
	
  2.9

  	
  Capital Stock of RESO Merger Sub

  	
   

  
	
  2.10

  	
  Adjustments to the Consideration

  	
   

  
	
  2.11

  	
  Taking Necessary or Further Action

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III
  RESTRICTIONS ON TRANSFER: REGISTRATION

  	
   

  
	
  3.1

  	
  Restrictions
  on Transfer

  	
   

  
	
  3.2

  	
  Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDER AND RESO

  	
   

  
	
  4.1

  	
  Organization and Qualification

  	
   

  
	
  4.2

  	
  Subsidiaries

  	
   

  
	
  4.3

  	
  Charter, Bylaws and Corporate Records

  	
   

  
	
  4.4

  	
  Authorization; Enforceability

  	
   

  
	
  4.5

  	
  No Violation or Conflict

  	
   

  
	
  4.6

  	
  Governmental Consents and Approvals

  	
   

  
	
  4.7

  	
  Capital Structure

  	
   

  
	
  4.8

  	
  Financial Statements

  	
   

  
	
  4.9

  	
  Conduct in the Ordinary Course; Absence of
  Changes

  	
   

  
	
  4.10

  	
  Property

  	
   

  
	
  4.11

  	
  Personal Property

  	
   

  
	
  4.12

  	
  Board Approval

  	
   

  
	
  4.13

  	
  Insurance

  	
   

  
	
  4.14

  	
  Permits

  	
   

  
	
  4.15

  	
  Taxes

  	
   

  
	
  4.16

  	
  Labor Matters

  	
   

  
	
  4.17

  	
  Employees and Related Agreements; ERISA

  	
   

  
	
  4.18

  	
  Environmental and Health/Safety Matters

  	
   

  
	
  4.19

  	
  Certain Interests

  	
   

  
	
  4.20

  	
  Litigation

  	
   

  

 

 

	
  4.21

  	
  Intellectual Property

  	
   

  
	
  4.22

  	
  Inventories

  	
   

  
	
  4.23

  	
  Receivables

  	
   

  
	
  4.24

  	
  Residency; Investment Sophistication;
  Backgrounds

  	
   

  
	
  4.25

  	
  Brokers

  	
   

  
	
  4.26

  	
  Cash on Hand in Checking and Savings
  Accounts

  	
   

  
	
  4.27

  	
  Liabilities and Indebtedness

  	
   

  
	
  4.28

  	
  Contracts

  	
   

  
	
  4.29

  	
  Domain
  Names

  	
   

  
	
  4.30

  	
  Spyware/Adware

  	
   

  
	
  4.31

  	
  Compliance with Laws Governing Real Estate
  Schools in Florida

  	
   

  
	
  4.32

  	
  Material Information

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V
  REPRESENTATIONS AND WARRANTIES OF THK AND RESO MERGER SUB

  	
   

  
	
  5.1

  	
  Organization and Qualification

  	
   

  
	
  5.2

  	
  Capital Structure

  	
   

  
	
  5.3

  	
  Authorization; Enforceability

  	
   

  
	
  5.4

  	
  No Violation or Conflict

  	
   

  
	
  5.5

  	
  Governmental Consents and Approvals

  	
   

  
	
  5.6

  	
  Litigation

  	
   

  
	
  5.7

  	
  Interim Operations

  	
   

  
	
  5.8

  	
  Brokers

  	
   

  
	
  5.9

  	
  Material Information

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI
  CLOSING DELIVERIES/CONDITIONS PRECEDENT

  	
   

  
	
  6.1

  	
  RESO/Shareholder Deliveries

  	
   

  
	
  6.2

  	
  THK/RESO Merger Sub Deliveries

  	
   

  
	
  6.3

  	
  Conditions Precedent

  	
   

  
	
  6.4

  	
  Termination

  	
   

  
	
  6.5

  	
  Business Prior to the Closing Date

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII
  EMPLOYMENT MATTERS

  	
   

  
	
  7.1

  	
  Current Employees

  	
   

  
	
  7.2

  	
  Management of Surviving Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII EARNOUT

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX
  INDEMNIFICATION

  	
   

  
	
  9.1

  	
  Survival of Representations and Warranties

  	
   

  
	
  9.2

  	
  Indemnification

  	
   

  
	
  9.3

  	
  Third Party Claim

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X TAX
  MATTERS

  	
   

  
	
  10.1

  	
  Tax
  Returns

  	
   

  
	
  10.2

  	
  Contest Provisions

  	
   

  
	
  10.3

  	
  Assistance and Cooperation

  	
   

  

 

 

	
  10.4

  	
  S Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI
  WARRANTS

  	
   

  
	
  11.1

  	
  Grant

  	
   

  
	
  11.2

  	
  Warrant

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII
  MISCELLANEOUS

  	
   

  
	
  12.1

  	
  Notices

  	
   

  
	
  12.2

  	
  Entire Agreement

  	
   

  
	
  12.3

  	
  Binding Effect

  	
   

  
	
  12.4

  	
  Assignment

  	
   

  
	
  12.5

  	
  Modifications and Amendments

  	
   

  
	
  12.6

  	
  Waivers

  	
   

  
	
  12.7

  	
  No Third Party Beneficiary

  	
   

  
	
  12.8

  	
  Severability

  	
   

  
	
  12.9

  	
  Publicity

  	
   

  
	
  12.10

  	
  Governing Law

  	
   

  
	
  12.11

  	
  Counterparts; Facsimile Signatures

  	
   

  
	
  12.12

  	
  Headings

  	
   

  
	
  12.13

  	
  Expenses

  	
   

  
	
  12.14

  	
  Further Assurances

  	
   

  
	
  12.15

  	
  Arbitration

  	
   

  
	
  12.16

  	
  Incorporation by Reference

  	
   

  

 

 

	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Employment Agreement

  	
   

  
	
  Exhibit B

  	
  Articles of Merger and Plan of Merger

  	
   

  
	
  Exhibit C

  	
  Registration Rights Agreement

  	
   

  
	
  Exhibit D

  	
  Irrevocable Instruction Letter to Colonial Stock Transfer Co. Inc.

  	
   

  
	
  Exhibit E

  	
  Form of Warrant

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 4.1

  	
  Organization and Qualification

  	
   

  
	
  Schedule 4.8

  	
  Financial Statements

  	
   

  
	
  Schedule 4.10(a)

  	
  Owned Property

  	
   

  
	
  Schedule 4.10(b)

  	
  Owned Property Lease

  	
   

  
	
  Schedule 4.10(c)

  	
  Leased Property

  	
   

  
	
  Schedule 4.11

  	
  Personal Property

  	
   

  
	
  Schedule 4.13

  	
  Insurance

  	
   

  
	
  Schedule 4.14

  	
  Permits

  	
   

  
	
  Schedule 4.15

  	
  Taxes

  	
   

  
	
  Schedule 4.17

  	
  Employee Benefit Plans

  	
   

  
	
  Schedule 4.18(h)

  	
  Environmental Audits

  	
   

  
	
  Schedule 4.18(i)

  	
  Asbestos Containing Material

  	
   

  
	
  Schedule 4.18(j)

  	
  Hazardous Substances

  	
   

  
	
  Schedule 4.19

  	
  Personally Owned Assets

  	
   

  
	
  Schedule 4.21

  	
  List of Domain Names

  	
   

  
	
  Schedule 4.25

  	
  Brokers

  	
   

  
	
  Schedule 4.26

  	
  Cash on hand/Banks and Brokerage Accounts

  	
   

  
	
  Schedule 5.1

  	
  Organization and Qualification

  	
   

  
	
  Schedule 5.2(a)

  	
  Capital Structure

  	
   

  
	
  Schedule 5.2(b)

  	
  Capital Commitments

  	
   

  
	
  Schedule 5.5

  	
  Governmental Consents and Approvals

  	
   

  
	
  Schedule 5.6

  	
  Litigation

  	
   

  
	
  Schedule 7.1

  	
  Employees/Salary Letter

  	
   

  

 

 

AGREEMENT

 

This Agreement
(this “Agreement”) made and entered into this 14th day of July,
2005, by and among CGI HOLDING CORPORATION, d/b/a THINK PARTNERSHIP INC., a
Nevada corporation (“THK”), RESO MERGER SUB, INC., a Florida corporation
and wholly owned subsidiary of THK (“RESO Merger Sub”), REAL ESTATE
SCHOOL ONLINE INC., a Florida corporation (“RESO”), and Perry
Johannesburg (the “Shareholder”). 
THK, RESO Merger Sub, RESO and the Shareholder are sometimes referred to
herein each, individually, as a “Party” and, collectively, as the “Parties.”

 

WITNESSETH:

 

WHEREAS, RESO is
a real estate school, offering online and CD-ROM real estate licensing courses
in Florida (collectively, the “Business”); and

 

WHEREAS, the board
of directors and shareholders (to the extent required) of each of THK, RESO
Merger Sub and RESO have each approved this Agreement and the merger of RESO with
and into RESO Merger Sub (the “Merger”), in accordance with the laws of
the State of Florida, and the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the promises and the mutual covenants,
representations and warranties herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
mutually acknowledged, the Parties hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

In addition to
terms defined elsewhere in this Agreement, the following terms when used in
this Agreement shall have the respective meanings set forth below:

 

“Action”
means any claim, demand, action, cause of action, chose in action, right of
recovery, right of set-off, suit, arbitration, inquiry, proceeding or
investigation by or before any Governmental Authority.

 

“Affiliate”
means, with respect to a specified Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, is controlled by or is
under common control with the Person, and without limiting the generality of
the foregoing, includes, with respect to the specified Person:  (a) any other Person which beneficially
owns or holds 10% or more of the outstanding voting securities or other
securities convertible into voting securities of the Person, (b) any other
Person of which the specified Person beneficially owns or holds 10% or more of
the outstanding voting securities or other securities convertible into voting
securities, or (c) any director, officer or employee of the Person.

 

“Aggregate
Earnings”  shall mean the aggregate
Earnings for the Eight Quarters.

 

“Audited
Financials” shall have the meaning ascribed in Article IV, Section 4.8
hereof.

 

1

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which
banks are required or authorized to be closed in the City of Chicago, Illinois.

 

“Business
Interests” means the ownership of up to (but not more than) 1% of any class
of securities of an enterprise (but without otherwise participating, directly
or indirectly, in the management or operations of the enterprise) if the
securities are listed on any national or regional exchange or have been
registered under Section 12(g) of the Securities Exchange Act of
1934.

 

“CERCLA”
means the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended through the date hereof and any regulations promulgated
thereunder.

 

“Change of
Control of THK” means (1) (a) a merger, reorganization or other
business combination in which THK is a party but is not the surviving entity,
unless the sole purpose of the merger is to change THK’s domicile, and (b) within
a six-month period after the transaction, a majority of the members of the board
of directors of THK are not either (i) the same individuals who were
members immediately prior to the transaction or (ii) were not approved for
membership on the board of directors of THK by a majority of the members of the
board of directors of THK immediately prior to the transaction or (2) a
sale of all or substantially all of the assets of THK to a party that is not an
Affiliate of THK or RESO Surviving Corporation.

 

“Change in Control
of RESO” means (1) a merger, reorganization or other business
combination in which RESO Surviving Corporation is party to but following the
transaction, THK does not control the surviving entity or (2) a sale of
all, or substantially all, of the assets of RESO Surviving Corporation to a
party not controlled by THK or RESO Surviving Corporation.

 

“Claims of
Any Nature” mean liabilities, liens, obligations, claims and encumbrances,
actual or contingent, known or unforeseen, including but not limited to any
loan, claims for salary, bonuses or commissions, unpaid payroll or other taxes,
pension obligations, claims alleging discrimination or harassment, claims
alleging breach of contract, credit card chargebacks in excess of $1,000,
lawsuits, stock options, stock warrants, phantom stock plans, stock
appreciation rights or plans, deferred compensation agreements, purchase
agreements that cannot be cancelled by RESO or RESO Surviving Corporation at
any time, consulting agreements, employment agreements other than the Employment
Agreement, severance agreements or “change of control” agreements of any
nature, and any other liabilities of any nature whatsoever.

 

“Closing”
shall mean the delivery of the documents referred to in Article VI
and filing of the documents referred to in Article II.

 

“Closing
Date” shall mean the time and date on which the Closing takes place. The
Closing shall be held at the offices of Akerman Senterfitt, One Southeast Third
Avenue, 28th Floor, Miami, Florida 33131, unless another place is
agreed to in writing by the Parties.

 

“Closing
Date FMV” shall mean the average closing price of a share of THK Common
Stock on the principal market on which the shares are then traded for the five
trading days prior to the Closing Date.

 

2

 

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

 

“Contract”
means any contract, plan, undertaking, understanding, agreement, license,
lease, note, mortgage or other binding commitment, whether written or oral.

 

“Copyrights”
mean all copyrights (registered or otherwise) and registrations and
applications for registration thereof, and all rights therein provided by
multinational treaties or conventions.

 

“Court”
means any court or arbitration tribunal of the United States, any domestic
state, or any foreign country, and any political subdivision thereof.

 

“Database”
means all data and other information recorded, stored, transmitted and
retrieved in electronic form.

 

“Documents”
means this Agreement together with the Articles of Merger and Plan of Merger,
the Schedules and Exhibits hereto and the other agreements, documents and
instruments required or contemplated to be executed in connection herewith.

 

“Earnings”
means the pre-tax earnings of RESO Surviving Corporation as audited or
reviewed, from time to time, by independent registered public accountants
selected by THK but excluding (a) the amount of any compensation paid to
the Shareholder that exceeds the amount of compensation provided under the Employment
Agreement as of the Closing, and (b) the amount of any expense of THK or
any Affiliate which is allocated or otherwise charged to RESO Surviving
Corporation other than (1) reasonable expenses incurred by THK but allocated
and charged to RESO Surviving Corporation and directly related to preparing,
auditing or reviewing the financial statements of RESO or RESO Surviving
Corporation or to determining, auditing or reviewing the Earnings for any
period, or (2) expenses or other charges incurred by THK and arising from
or related to any claim asserted by or against RESO or Surviving Corporation
(except to the extent that (i) such expenses or other charges have been
applied towards the $50,000 limitation set forth in Section 9.2(c) or
(ii) THK has received an indemnity payment for such expenses or other
charges pursuant to the provisions of Article IX of this Agreement).

 

“Earnout Period” means the first twelve (12) full calendar
quarters following the Closing Date.

 

“Eight Quarters” means the period of time consisting of the
eight (8) full calendar quarters during the Earnout Period (which may be
consecutive or not, as the case may be) during which RESO Surviving Corporation’s
Earnings are the highest.

 

“Employee
Agreement” means each management, employment, bonus, loan or other
extension of credit, change in control, retention, severance, consulting,
non-compete, confidentiality, or similar agreement or contract any part of
which is in effect on the date of this Agreement or the Closing Date between RESO
and any employee pursuant to which RESO provides annual compensation in excess
of $50,000 or any severance benefit or annual payment in excess of $25,000.

 

3

 

“Employee
Plans” means all employee benefit plans (as defined in Section 3(3) of
ERISA) and all bonus, stock or other security option, stock or other security
purchase, stock or other security appreciation rights, incentive, deferred
compensation, retirement or supplemental retirement, severance, golden
parachute, vacation, cafeteria, dependent care, medical care, employee
assistance program, education or tuition assistance programs, insurance and
other similar fringe or employee benefit plans, programs or arrangements, and
any current or former employment or executive compensation or severance
agreements, written or otherwise, which have ever been sponsored or maintained
or entered into for the benefit of, or relating to, any present or former
employee or director of RESO, or any trade or business (whether or not
incorporated) which is a member of a controlled group or which is under common
control with RESO, within the meaning of Section 414 of the Code (an “ERISA
Affiliate”), whether or not such plan is terminated.

 

“Employment
Agreement” means the Employment Agreement between RESO Surviving
Corporation and the Shareholder in the form attached hereto as Exhibit A.

 

“Environmental
Law” means, as enacted and in effect on or prior to the Closing Date, all
federal, state, regional or local statutes, laws, rules, regulations, codes,
orders, plans, injunctions, decrees, rulings, and changes or ordinances or
judicial or administrative interpretations thereof, any of which govern (or
purport to govern) or relate to pollution, protection of the environment,
public health and safety, air emissions, water discharges, hazardous or toxic
substances, solid or hazardous waste or occupational health and safety, as any
of these terms are or may be defined in such statutes, laws, rules, regulations,
codes, orders, plans, injunctions, decrees, rulings and changes or ordinances,
or judicial or administrative interpretations thereof, including, without
limitation, the United States Department of Transportation Table (49 C.F.R.
172, 101) or by the Environmental Protection Agency as hazardous substances (40
C.F.R. Part 302) and any amendments thereto; the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended by
the Superfund Amendment and Reauthorization Act of 1986 (“SARA”) and by
subsequent amendments, 42 U.S.C. §9601, et seq. (hereinafter, collectively, “CERCLA”);
the Solid Waste Disposal Act, as amended by the Resource Conversation and
Recovery Act of 1976 and subsequent Hazardous and Solid Waste Amendments of 1984,
42 U.S.C. §6901 et seq. (hereinafter, collectively “RCRA”); the
Hazardous Materials Transportation Act, as amended, 49 U.S.C. §1801, et seq.;
the Federal Water Pollution Control Act, as amended, 33 U.S.C. §1311, et seq.;
the Clean Air Act, as amended, 42 U.S.C. §7401, et seq.; the Toxic Substances
Control Act, as amended, 15 U.S.C. §2601, et seq.; the Federal Insecticide,
Fungicide, and Rodenticide Act, as amended, 7 U.S.C. §136, et. seq.; the
Emergency Planning and Community Right to Know Act of 1986, as amended, 42
U.S.C. §11001, et seq. (Title III of SARA); and the Occupational Safety and
Health Act of 1970, as amended, 29 U.S.C. §651, et seq. (“OSHA”).

 

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

 

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

 

“Governmental
Authority” means any governmental or legislative agency or authority (other
than a Court) of the United States, any domestic state, or any foreign country,
and any

 

4

 

political subdivision or agency thereof, and includes any authority
having governmental or quasi-governmental powers, including any administrative
agency or commission.

 

“Hardware”
means all mainframes, midrange computers, personal computers, notebooks,
servers, switches, printers, modems, drives, peripherals and any component of
any of the foregoing.

 

“Hazardous
Substance” means any Hazardous Substance, as defined in CERCLA, and any
other chemical, compound, product, solid, gas, liquid, pollutant, contaminant
or material which is regulated under any Environmental Law, and includes
without limitation, asbestos or any substance containing asbestos,
polychlorinated biphenyls and petroleum (including crude oil or any fraction
thereof).

 

“Indebtedness”
means, with respect to any Person, (a) all indebtedness of the Person,
whether or not contingent, for borrowed money, (b) all obligations of the
Person for the deferred purchase price of property or services, (c) all
obligations of the Person evidenced by notes, bonds, debentures or other
similar instruments, (d) all indebtedness created or arising under any
conditional sale or other title retention agreement with respect to property
acquired by the Person (even though the rights and remedies of creditor or
lender under such an agreement in the event of default are limited to
repossession or sale of such property), (e) all obligations of the Person
as lessee under leases that have been or should be recorded as capital leases, in
accordance with GAAP, (f) all obligations, contingent or otherwise, of the
Person under acceptance, letter of credit or similar facilities, (g) all
obligations of the Person to purchase, redeem, retire, defease or otherwise
acquire for value any capital stock of the Person or any warrants, rights or
options to acquire the capital stock, valued, in the case of redeemable
preferred stock, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends, (h) all Indebtedness of
others referred to in clauses (a) through (g) above guaranteed
directly or indirectly in any manner by the Person, or in effect guaranteed
directly or indirectly by the Person through an agreement (1) to pay or
purchase the Indebtedness or to advance or supply funds for the payment or
purchase of the Indebtedness, (2) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for the purpose of
enabling the debtor to pay the Indebtedness or to assure the holder of such
Indebtedness against loss, (3) to supply funds to, or in any other manner
invest in, the debtor (including any agreement to pay for property or services
irrespective of whether the property is received or the services are rendered)
or (4) otherwise to assure a creditor against loss and all Indebtedness
referred to in clauses (a) through (g) above secured by (or for which
the holder of the Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien on property (including, without limitation, accounts
and contract rights) owned by the Person, even though the Person has not
assumed or become liable for the payment of the Indebtedness.

 

“Information
System” means any combination of Hardware, Software or Database(s) employed
primarily for the creation, manipulation, storage, retrieval, display and use
of information in electronic form or media.

 

“Intellectual
Property” means (a) inventions, whether or not patentable, whether or
not reduced to practice or whether or not yet made the subject of a pending
Patent application or applications, (b) ideas and conceptions of
potentially patentable subject matter, including, without limitation, any
patent disclosures, whether or not reduced to practice and whether or not

 

5

 

yet made the subject of a pending Patent application or applications, (c) Patents,
(d) Trademarks,  (e) Copyrights,
(f) Software, (g) trade secrets and confidential, technical or
business information (including ideas, formulas, compositions, inventions, and
conceptions of inventions whether patentable or unpatentable and whether or not
reduced to practice), (h) confidential, technology (including know-how and
show-how), manufacturing and production processes and techniques, research and
development information, drawings, specifications, designs, plans, proposals,
technical data, copyrightable works, financial, marketing and business data,
Databases, Information Systems, pricing and cost information, business and
marketing plans and customer and supplier lists and information, (i) copies
and tangible embodiments of all the foregoing, in whatever form or medium, (j)
all rights to obtain and rights to apply for Patents, and to register
Trademarks and Copyrights, (k) all rights under any License Agreement and any
license, registered user agreement, technology or material transfer agreement,
and other agreements or instruments with respect to items in (a) to (j)
above; and (l) all rights to sue and recover and retain damages and costs and
attorneys’ fees for present and past infringement of any of the Intellectual
Property rights hereinabove set out.

 

“Inventories”
means, without limitation, merchandise, raw materials, work-in-process,
finished goods, replacement parts, packaging, office supplies, maintenance
supplies, computer parts and supplies and Hardware related to the Business
maintained, held or stored by, or for, RESO at any location whatsoever and any
prepaid deposits for any of the same terms.

 

“IRS”
shall mean the United States Internal Revenue Service.

 

“Knowledge”
means (a) in the case an individual, knowledge of a particular fact or
other matter if the individual is actually aware of the fact or other matter,
and (b) in the case of a Person (other than an individual) the Person will
be deemed to have Knowledge of a particular fact or other matter if any
individual who is serving, or has at any time served, as a director, officer,
partner, executor, or trustee of the Person (or in any similar capacity) has,
or at any time had, actual knowledge of the fact or other matter.

 

“Law”
means all laws, statutes, ordinances and Regulations of any Governmental
Authority including all decisions of Courts having the effect of law in each
jurisdiction.

 

“Leased
Property” means any property leased by a Person as tenant, together with,
to the extent leased by a Person, all buildings and other structures,
facilities or improvements currently or hereafter located thereon, all
fixtures, systems, equipment and items of personal property of a Person attached
or appurtenant thereto, and all easements, licenses, rights and appurtenances
relating to the foregoing.

 

“Liabilities”
means any and all debts, liabilities and obligations, whether accrued or fixed,
absolute or contingent, matured or unmatured or determined or determinable,
including, without limitation, those arising under any Law (including, without
limitation, any Environmental Law), Action or Order, Liabilities for Taxes and
those Liabilities arising under any Contract.

 

“Liens”
means any mortgage, pledge, security interest, attachment, encumbrance, lien
(statutory or otherwise), option, conditional sale agreement, right of first
refusal, first offer, or charge of any kind (including any agreement to grant
any of the foregoing), provided, however,

 

6

 

that the term “Lien” shall not include: (a) liens for Taxes,
assessments and charges of any Governmental Authority due for which adequate reserve
for payment has been made and which are being diligently contested in good
faith; (b) servitudes, easements, restrictions, rights-of-way and other
similar rights in real property or any interest therein granted to any third
party; (c) liens for Taxes either not due and payable or due but for which
notice of assessments has not been given; (d) undetermined or inchoate liens,
charges and privileges incidental to current construction or current operations
and charges, adverse claims, security interests or encumbrances of any nature
whatsoever claimed or held by any Governmental Authority which have not at the
time been filed or registered against the title to the asset or served upon RESO
pursuant to Law or which relate to obligations not due or delinquent; (e) assignments
of insurance provided to third party landlords (or their mortgagees) pursuant
to the terms of any lease, and liens or rights reserved in any lease for rent
or for compliance with the terms of the lease; (f) liens granted in the
ordinary course of the Business, as applicable, to any public utility,
municipality or Government Authority in connection with the operations of the
Business, as applicable, other than liens granted for borrowed money; (g) deposits
or pledges made in connection with, or to secure payment of, workers’
compensation, unemployment insurance, old age pension or other social security
programs mandated under applicable Laws; and (h) restrictions on transfer
of securities imposed by applicable state and federal securities Laws.

 

“Litigation”
means any suit, action, arbitration, cause of action, claim, complaint,
criminal prosecution, investigation, inquiry, demand letter, governmental or
other administrative proceeding, whether at law or at equity, before or by any
Court, Governmental Authority, arbitrator or other tribunal.

 

“Material
Adverse Effect” means any circumstance, change in, or effect that,
individually or in the aggregate: (a) is, or could be, materially adverse
to the business, operations, assets or Liabilities (including, without
limitation, contingent Liabilities), employee relationships, customer or
supplier relationships, results of operations or the condition (financial or
otherwise) of the Person, or (b) could materially adversely affect the
ability of the Person to operate or conduct its business in the manner in which
it is currently operated or conducted, or contemplated to be conducted or
operated.

 

“Order”
shall mean any judgment, order, writ, injunction, ruling, stipulation,
determination, award or decree of or by, or any settlement under the
jurisdiction of, any Court or Governmental Authority.

 

“Owned
Property” means any property owned by a Person together with all buildings
and other structures, facilities or improvements currently or hereafter located
thereon, all fixtures, systems, equipment and items of personal property of a
Person attached or appurtenant thereto and all easements, licenses, rights and
appurtenances relating to the foregoing.

 

“Patents”
mean all national (including the United States) and multinational statutory
invention registrations, patents, patent registrations and patent applications,
including all reissues, divisions, continuations, continuations-in-part,
extensions and reexaminations, and all rights therein provided by multinational
treaties or conventions and all improvements to the inventions disclosed in
each such registration, patent or application.

 

7

 

“Permits”
means any licenses, permits, pending applications, consents, certificates,
registrations, approvals and authorizations.

 

“Person”
means any natural person, corporation, limited liability company,
unincorporated organization, partnership, association, joint stock company,
joint venture, trust or any other entity.

 

“Property”
means the Leased Property and the Owned Property.

 

“Receivables”
means any and all accounts receivable, notes, book debts and other amounts due
or accruing due to a Person whether or not in the ordinary course of its
business, together with any unpaid financing charges accrued thereon.

 

“Regulation”
means any rule or regulation of any Governmental Authority.

 

“Release”
means any release, spill, emission, leak, pumping, injection, deposit,
disposal, discharge, dispersal, leaching or migration (as such terms are used
or defined in the Environmental Laws) of a Hazardous Substance into the indoor
or outdoor environment or into or out of any Property, including the movement
of Hazardous Substances through or in the air, soil, surface water, groundwater
or property.

 

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

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time.

 

“Software”
means any and all (a) computer programs, including any and all software
implementations of algorithms, models and methodologies, whether in source code
or object code, (b) databases and compilations, including any and all data
and collections of data, whether machine readable or otherwise, (c) descriptions,
flow-charts and other work product used to design, plan, organize and develop
any of the foregoing, (d) the technology supporting any Internet site(s)
operated by or on behalf of the Person and (e) all documentation,
including user manuals and training materials, relating to any of the foregoing.

 

“Subsidiary”
or “Subsidiaries” of a Person means any other Person in which the Person
owns, directly or indirectly, more than 50% of the outstanding voting
securities or other securities convertible into voting securities, or which may
effectively be controlled, directly or indirectly, by the Person.

 

“Tax”
or “Taxes” means any and all federal, state, local, or foreign taxes,
fees, levies, duties, tariffs, imposts, and other charges of any kind (together
with any and all interest, penalties, additions to tax and additional amounts
imposed with respect thereto) imposed by any Governmental Authority or other
taxing authority, taxes or other charges on or with respect to income,
franchises, windfall or other profits, gross receipts, property, sales, use,
capital stock, payroll, employment, disability, social security, workers’
compensation, unemployment compensation, or net worth; taxes or other charges
in the nature of excise, withholding, ad valorem, stamp, transfer, value added,
or gains taxes; license, registration and documentation fees; and customs’
duties, tariffs, and similar charges, whether computed on a separate or
consolidated, unitary or combined basis or in any other manner, whether
disputed or not and

 

8

 

including any obligation to indemnify or otherwise assume or succeed to
the Tax liability of any other Person, together with any interest or penalty,
addition to tax or additional amount imposed by any Governmental Authority.

 

“Tax
Returns” means returns, reports and information statements, including any schedule or
attachment thereto, with respect to Taxes required to be filed with the IRS or
any other Governmental Authority or other taxing authority or agency, domestic
or foreign, including consolidated, combined and unitary tax returns.

 

“THK Common
Stock” means Common Stock, $.001 par value per share, of THK.

 

“Trademarks”
mean all trademarks, service marks, trade dress, logos, trade names and
corporate names, whether or not registered, including all common law rights,
and registrations and applications for registration thereof, including, but not
limited to, all marks registered in the United States Patent and Trademark
Office, the Trademark Offices of the States and Territories of the United
States of America, and the Trademark Offices of other nations throughout the
world, and all rights therein provided by multinational treaties or
conventions.

 

“Waste”
means agricultural wastes, biomedical wastes, biological wastes, bulky wastes,
construction and demolition debris, garbage, household wastes, industrial solid
wastes, liquid wastes, sludge, solid wastes, special wastes, used oils, and
yard trash.

 

ARTICLE II

 

THE MERGER

 

2.1                                 The Merger. 
At the Effective Time (as hereinafter defined), in accordance with the
laws of the State of Florida and the terms and conditions of the Documents, RESO
shall be merged with and into RESO Merger Sub. 
From and after the Effective Time, the separate corporate existence of RESO
shall cease and RESO Merger Sub, as the surviving corporation in the Merger,
shall continue its existence under the laws of the State of Florida as a wholly
owned subsidiary of THK.  RESO Merger Sub,
as the surviving corporation after the Merger, is hereinafter referred to as
the “RESO Surviving Corporation.” 
At the Closing, (a) THK and RESO Merger Sub shall deliver to RESO
and the Shareholder the various documents referred to in Article VI,
Section 6.2 and (b) RESO and the Shareholder shall deliver to THK
and RESO Merger Sub the various documents referred to in Article VI,
Section 6.1.

 

2.2                                 Effective Time. 
Subject to the provisions of this Agreement, on the Closing Date or as
soon thereafter as is practicable the Parties shall cause the Merger to become
effective by executing and filing with the Florida Department of State, in
accordance with Florida law, Articles of Merger, with a Plan of Merger attached
as an Exhibit thereto, in the respective forms required pursuant to the
Florida Business Corporation Act, as amended (the “Florida BCA”), and attached
hereto as Exhibit B and made a part hereof (the “Articles of
Merger and Plan of Merger”), the date and time of the filings, or such
later date and time as may be agreed upon by the Parties and specified therein,
being hereinafter referred to as the “Effective Time.”  The Parties hereto shall have taken all
necessary steps to pre-clear the Merger with the Florida Department of State in
order that on the Closing Date, the Articles of Merger and Plan of Merger may
be filed with the Florida Department of State and become effective upon filing.

 

9

 

2.3                                 Effect of the Merger.  At the Effective Time, the Merger shall have
the effect set forth in the Florida BCA.

 

2.4                                 Articles of Incorporation and Bylaws.  From and after the Effective Time and without
further action on the part of the Parties, the Articles of Incorporation and
Bylaws of the RESO Merger Sub immediately prior to the Effective Time shall be
the Articles of Incorporation and Bylaws of RESO Surviving Corporation until
amended in accordance with the respective terms thereof.

 

2.5                                 Directors and Officers.  The officers of RESO Merger Sub immediately
prior to the Effective Time shall be the officers of RESO Surviving Corporation
immediately following the Effective Time. 
The directors of RESO Merger Sub immediately prior to the Effective Time
shall be the directors of RESO Surviving Corporation immediately following the
Effective Time.  Each officer and
director shall hold office in accordance with the Articles of Incorporation and
the Bylaws of RESO Surviving Corporation, in each case, until their respective
successors are duly elected or appointed and qualified or until their earlier
death, resignation or removal in accordance with RESO Surviving Corporation’s
Articles of Incorporation and Bylaws.  So
long as he is an officer or director of RESO Surviving Corporation or any
Affiliate, the Shareholder shall be indemnified to the same extent as all other
officers and directors of RESO Surviving Corporation or any Affiliate.

 

2.6                                 Effect on RESO Capital Stock.  At the Effective Time, by virtue of the
Merger and without any action on the part of the Parties or the holders of the
following securities: The shares of common stock of RESO, without par value (“RESO
Common Stock”), issued and outstanding immediately prior to the Effective
Time shall be converted automatically into the right to receive, in the
aggregate: (i) Two Million Two Hundred Thousand Dollars ($2,200,000) in
cash (the “Cash Consideration”); (ii) shares of THK Common Stock
having an aggregate value of Two Million Two Hundred Thousand Dollars
($2,200,000), such stock to be valued at the Closing Date FMV (the “Stock
Consideration”); and (iii) the Earnout defined in ARTICLE VIII,
if earned (the “Earnout Consideration”) (collectively, the “Merger
Consideration”), subject to adjustment as set forth in Section 2.10.  From and after the Effective Time, all shares
of RESO capital stock shall automatically be canceled and cease to exist, and
each holder of a certificate that previously represented any shares of RESO capital
stock (collectively, the “RESO Certificates”) shall cease to have any
rights with respect thereto other than the right to receive, if any, their
portion of the Merger Consideration.  If
after the Effective Time, any RESO Certificates are presented to RESO Surviving
Corporation for any reason, they shall be cancelled and exchanged as provided
in this Section 2.6.  If any RESO
Certificates representing shares of RESO capital stock shall have been lost,
stolen or destroyed, THK shall issue in exchange for the lost, stolen or
destroyed certificates, upon the making of an affidavit of that fact by the
holder thereof, the applicable Merger Consideration; provided, however, that THK
may, in its discretion and as a condition precedent to the issuance and
delivery thereof, require the owner of the lost, stolen or destroyed
certificates to deliver a bond in any sum as THK may reasonably direct as
indemnity against any claim that may be made against THK or RESO Surviving
Corporation with respect to the certificates alleged to have been lost, stolen
or destroyed.

 

2.7                                 Cancellation of Shares.  At the Effective Time, each share of RESO common
stock either held in RESO’s treasury or owned by any direct or indirect
wholly-owned subsidiary

 

10

 

of RESO immediately prior to the Effective Time, shall be canceled and
extinguished without any conversion thereof or payment therefor.

 

2.8                                 Stock Options; Warrants.  At the Effective Time, each option, warrant or
other contractual or other right to purchase or otherwise acquire or convert
into shares of RESO common stock granted prior to the Effective Time shall be
cancelled, extinguished and terminated and shall not have any right to any
portion of the Merger Consideration.

 

2.9                                 Capital Stock of RESO Merger Sub.  Each share of common stock of RESO Merger Sub,
no par value per share (“RESO Merger Sub Common Stock”), issued and
outstanding immediately prior to the Effective Time shall be converted
automatically into one fully paid and non-assessable share of common stock of
the RESO Surviving Corporation, no par value per share.  From and after the Effective Time, each stock
certificate of RESO Merger Sub that previously represented shares of RESO
Merger Sub Common Stock shall evidence ownership of an equal number of shares
of common stock of RESO Surviving Corporation.

 

2.10                           Adjustments to the Consideration.  Without limiting any other provision of this
Agreement:

 

(a)                          If and
in the event that on the Closing Date RESO’s aggregate unrestricted cash in its
checking and savings accounts does not exceed the aggregate amount of all
Indebtedness and Liabilities shown on the Audited Closing Balance Sheet on the
Closing Date by at least Fifty Thousand Dollars ($50,000), then the Cash
Consideration shall be adjusted downward, dollar-for-dollar, by the amount of
such deficit;

 

(b)                         If and in
the event that at any time during the first four (4) full calendar
quarters following the Closing Date RESO Surviving Corporation’s aggregate
unrestricted cash in its checking and savings accounts exceeds the then
aggregate amount of all Indebtedness and Liabilities of RESO Surviving
Corporation by at least Two Hundred Fifty Thousand Dollars ($250,000), then the
Cash Consideration shall be increased by Thirty Thousand Dollars ($30,000) and
such $30,000 shall be immediately paid over by THK to the Shareholder; and

 

(c)                          the
Stock Consideration shall be adjusted, at any time and from time to time prior
to the Closing Date, to fully reflect the effect of any stock split, reverse
split, stock dividend (including, without limitation, any dividend or
distribution of securities convertible into THK Common Stock), reorganization,
recapitalization or other like change with respect to THK Common Stock
effective between the date of this Agreement and the Closing Date provided that
the value of said Stock Consideration shall remain at Two Million Two Hundred
Thousand Dollars ($2,200,000) valued at the Closing Date FMV.

 

2.11                           Taking Necessary or Further Action.  If, at any time and from time to time after
the Effective Time, any further action is necessary or desirable to carry out
the purposes of this Agreement and to vest in RESO Surviving Corporation full
right, title and possession of all properties, assets, rights, privileges,
powers and franchises of RESO and RESO Merger Sub, the officers and directors
of RESO Surviving Corporation shall be and are fully authorized and directed,
in the name of and on behalf of RESO Surviving Corporation, to take, or cause
to be taken, all such lawful and necessary action as is not inconsistent with
this Agreement.  THK shall

 

11

 

cause RESO Merger Sub to perform all of its obligations relating to
this Agreement and the transactions contemplated hereby.

 

ARTICLE III

 

RESTRICTIONS ON TRANSFER: REGISTRATION

 

3.1                                 Restrictions on Transfer. All
certificates representing THK Common Stock issued pursuant to this Agreement
shall bear a legend stating that the THK Common Stock has not been registered
under the Securities Act, and may not be transferred or sold without such
registration or an exemption therefrom.

 

3.2                                 Registration. At the Closing, THK and the Shareholder
shall enter into a registration rights agreement in the form attached hereto as
Exhibit C.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF

THE SHAREHOLDER AND RESO

 

In order to
induce THK and RESO Merger Sub to enter into this Agreement and to consummate
the transactions contemplated hereby, the Shareholder and RESO each hereby
represent and warrant to each of THK and RESO Merger Sub as follows:

 

4.1                                 Organization and Qualification.  RESO is a corporation duly organized, validly
existing and in good standing under the laws of the State of Florida, with full
corporate power and authority to own, lease and operate its properties and to
conduct its business as now conducted except where failure to be so organized,
existing and in good standing would not reasonably be expected to have a
Material Adverse Effect on RESO, and is duly licensed or qualified to transact
business as a foreign corporation and is in good standing in each of the
jurisdictions listed on Schedule 4.1, which are the only
jurisdictions in which the failure to be so licensed or qualified could have a
Material Adverse Effect on RESO.

 

4.2                                 Subsidiaries. 
RESO does not have any Subsidiaries and does not own, directly or
indirectly, any equity or other ownership interests in any Person.

 

4.3                                 Charter, Bylaws and Corporate
Records.  True, correct and
complete copies of each of (a) the Articles of Incorporation of RESO as
amended and in effect on the date hereof, (b) the bylaws of RESO as
amended and in effect on the date hereof, and (c) the minute books of RESO,
have been previously made available to THK and RESO Merger Sub.  The minute book contains complete and accurate
records of all meetings and other corporate actions of the board of directors,
committees of the board of directors, incorporators and stockholders of RESO
from the date of its incorporation to the date hereof.

 

4.4                                 Authorization; Enforceability.  RESO has the corporate power and authority to
execute, deliver and perform its obligations under this Agreement and the other
Documents to which it is a party. The execution, delivery and performance of
this Agreement and the other Documents to which it or he is a party and the
consummation of the transactions contemplated

 

12

 

herein and therein have been duly authorized and approved by the board
of directors of RESO and the Shareholder, and no other action on the part of RESO
or the Shareholder is necessary to consummate the transactions contemplated by
this Agreement and the other Documents.  This
Agreement and each of the other Documents to be executed and delivered by RESO
and the Shareholder have been duly executed and delivered by, and constitute
the legal, valid and binding obligations of, RESO and the Shareholder,
respectively, and are enforceable against RESO and the Shareholder in
accordance with their terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium and similar laws relating to
or affecting creditor rights generally or by general equity principles
(regardless of whether enforcement is sought in a proceeding in equity or at
law).

 

4.5                                 No Violation or Conflict.  None of (a) the execution and delivery
by RESO and the Shareholder of this Agreement and the other Documents to be
executed and delivered by RESO and the Shareholder, (b) the consummation
by RESO and the Shareholder of the transactions contemplated by this Agreement
and the other Documents, or (c) the performance of this Agreement and the
other Documents required by this Agreement to be executed and delivered by RESO
and the Shareholder at the Closing, will (1) conflict with or violate the Articles
of Incorporation or bylaws of RESO, (2) conflict with or violate any Law,
Order or Permit applicable to RESO or the Shareholder, or by which RESO’s
properties or the RESO Common Stock are bound or affected, or (3) result
in any breach or violation of, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, or impair RESO’s
rights or alter the rights or obligations of any third party under, or give to
others any rights of termination, amendment, acceleration or cancellation of,
or result in the creation of any Lien on any of the properties or assets of RESO
except, in the case of clause (2) or (3) above, for any conflict,
breach, violation, default or other occurrence that would not individually or
in the aggregate, have a Material Adverse Effect on RESO.

 

4.6                                 Governmental Consents and Approvals.  Except for the filing of the Articles of
Merger and Plan of Merger with the Secretary of State of the State of Florida, and
the notification to the Florida Real Estate Commission with respect to RESO’s
licenses, the execution, delivery and performance of this Agreement and the
other Documents by RESO and the Shareholder do not and will not require any
consent, approval, authorization, Permit or other order of, action by, filing
with or notification to, any Governmental Authority.

 

4.7                                 Capital Structure.  The authorized capital stock of RESO consists
of 100 shares of common stock, without par value.  As of the date hereof, 100 shares of common stock
are issued and outstanding all of which are owned solely by the Shareholder
free and clear of all Liens, and no shares of common stock are held in
treasury.  Except as described above,
there will be no shares of voting or non-voting capital stock, equity interests
or other securities of RESO authorized, issued, reserved for issuance or
otherwise outstanding at the Closing. All of the outstanding shares of RESO common
stock are duly authorized, validly issued, fully paid and non-assessable, and
not subject to, or issued in violation of, any kind of preemptive, subscription
or any kind of similar rights. There are no bonds, debentures, notes or other
Indebtedness of RESO having the right to vote (or convertible into securities
having the right to vote) on any matters on which the shareholders of RESO are
eligible or required to vote. There are no other outstanding securities,
options, warrants, calls, rights, commitments, agreements, arrangements or
undertakings of any kind (contingent or otherwise) to which RESO is a party or
bound obligating RESO to issue, deliver or sell, or cause to be issued,
delivered or sold, additional

 

13

 

shares of capital stock or other voting securities of RESO or
obligating RESO to issue, grant, extend or enter into any agreement to issue,
grant or extend any such security, option, warrant, call, right, commitment,
agreement, arrangement or undertaking that will survive the Closing.  There are no outstanding contractual
obligations of RESO to repurchase, redeem or otherwise acquire any shares of
capital stock (or options to acquire any such shares) or other security or
equity interest of RESO which will survive the Closing.  All of the issued and outstanding shares of RESO
capital stock were issued in compliance in all material respects with all
applicable federal and state securities laws and are owned solely by the Shareholder.

 

4.8                                 Financial Statements.  Schedule 4.8 sets forth the
unaudited balance sheet of RESO as of March 31, 2005 (the “Unaudited
RESO Balance Sheet”), and the related statements of income and cash flow
for the three months ended March 31, 2005, the unaudited balance sheet of
RESO as of December 31, 2004, and the related statements of income and
cash flow and notes thereto for the same fiscal year (collectively, the “Unaudited
RESO Financial Statements”). All such Unaudited RESO Financial Statements
fairly present the financial condition of RESO as of the dates indicated
therein, are complete and correct in all material respects and accurately
reflect in all material respects all transactions of the Business.  RESO has retained independent certified
public accountants Blackman Kallick Bartelstein LLP (“Blackman Kallick”)
of Chicago, Illinois, to prepare audited historical financial statements for
RESO per applicable SEC rules and regulations (the “Audited Financials”),
including audited balance sheets of RESO as of December 31, 2004 (the “Audited
December 31, 2004 Balance Sheet”) and as of the Closing Date (the “Audited
Closing Balance Sheet”).

 

4.9                                 Conduct in the Ordinary Course;
Absence of Changes.  Since
December 31, 2004, RESO has conducted the Business in the ordinary course,
consistent with past practice, and there has been no change in the Business
which has had, or could reasonably be anticipated to result in, a Material
Adverse Effect on RESO.

 

4.10                           Property.

 

(a)                                  Schedule 4.10(a) lists
(1) the street address of each parcel of Owned Property, and (2) any
and all leases of all or any portion of any of Owned Property (“Owned
Property Leases”). Any parcel of Owned Property that is not subject to an
Owned Property Lease is occupied by RESO and is used solely for the conduct of
the Business. Schedule 4.10(b) lists for each Owned Property
Lease (i) the street address of each parcel subject to an Owned Property
Lease, (ii) the identity of the lessor, lessee and current occupant (if
different from lessee/lessor) under each Owned Property Lease, (iii) the
term, the security deposit, if any, and rental payment terms of the Owned
Property Leases (and any subleases) pertaining to each Owned Property Lease, (iv) any
commissions due now or in the future on any Owned Property Lease or in
connection with an option to extend or renew and (v) any amendments to the
Owned Property Leases.

 

(b)                                 Schedule 4.10(c) lists
(1) the street address of each parcel of Leased Property, (2) the
identity of the lessor, lessee and current occupant (if different from lessee)
of each such parcel of Leased Property, and (3) the term and rental
payment terms of the leases (and any subleases) pertaining to each such parcel
of Leased Property.

 

(c)                                  RESO
has made available to THK and RESO Merger Sub true and correct copies of each
deed for each parcel of Owned Property and, to the extent available, for each

 

14

 

parcel of Leased Property, and all title insurance policies, title
reports, surveys, certificates of occupancy, environmental reports and audits,
appraisals, other title documents and other documents relating to or otherwise
affecting the Owned Property, the Leased Property, or the operation of the
Business thereon or any other uses thereof.

 

(d)                                 RESO
has delivered, or made available to THK and RESO Merger Sub, true and correct
copies of all leases and subleases listed in Schedules 4.10(a)-(c) and
any and all ancillary documents pertaining thereto (including, but not limited
to, all amendments, consents for alterations and documents recording variations
and evidence of commencement dates and expiration dates) (the “Leases”).  With respect to each Lease:

 

(1)                                  each
Lease is the legal, valid and binding obligation of the parties thereto, enforceable
against each party, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or affecting
creditor rights generally or by general equity principles (regardless of
whether enforcement is sought in a proceeding in equity or at law).

 

(2)                                  none
of (a) the execution and delivery by RESO and the Shareholder of this
Agreement and the other Documents, (b) the consummation by RESO and the Shareholder
of the transactions contemplated by this Agreement and the other Documents, or (c) the
performance by RESO and the Shareholder of this Agreement and the other
Documents will (1) conflict with or violate the terms of any Lease or (2) result
in any breach or violation of or constitute a default (or an event with notice
or lapse of time or both would become a default) under, or impair RESO’s rights
or alter the rights or obligations of any third party under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any Lease.

 

(3)                                  neither
RESO nor to the Knowledge of RESO, any other party to any Lease, is in breach
or default in any material respect, and, to the Knowledge of RESO, no event has
occurred that, with notice or lapse of time would constitute a breach or
default or permit termination, modification or acceleration under the Lease;
and

 

(4)                                  the
rental set forth in each Lease is the actual rental being paid, and there are
no separate agreements or understandings regarding the amount of rent.

 

4.11                           Personal Property.

 

(a)                                  Schedule 4.11
lists each item or distinct group of machinery, equipment, tools, supplies,
furniture, fixtures, vehicles, rolling stock and other tangible personal
property with a cost in excess of $5,000 used in the Business and owned or
leased by RESO (the “Tangible Personal Property”).

 

(b)                                 RESO
has delivered or made available to THK and RESO Merger Sub correct and complete
copies of all leases for Tangible Personal Property and any and all material
ancillary documents pertaining thereto. 
With respect to each of such leases:

 

(1)                                  each
lease, together with all ancillary documents delivered pursuant to the first
sentence of this Section 4.11(b), is the legal, valid and binding
obligation of the parties thereto, enforceable against each of the parties in
accordance with the terms thereof except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or

 

15

 

similar laws relating to or affecting creditor rights generally or by
general equity principles (regardless of whether enforcement is sought in a
proceeding in equity or at law);

 

(2)                                  neither
RESO nor to the Knowledge of RESO, any other party to any lease, is in breach
or default in any material respect, and no event has occurred that, with notice
or lapse of time would constitute such a breach or default or permit
termination, modification or acceleration under, any lease; and

 

(3)                                  none
of (a) the execution and delivery by RESO and the Shareholder of this
Agreement and the other Documents, (b) the consummation by RESO and the Shareholder
of the transaction contemplated by this Agreement and the other Documents, or (c) the
performance by RESO or the Shareholder of this Agreement and the other
Documents required by this Agreement will (1) conflict with or violate the
terms of any lease or (2) result in any breach or violation of or
constitute a default (or an event with notice or lapse of time or both would
become a default) under, or impair RESO’s rights or alter the rights or
obligations of any third party under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any lease.

 

(c)                                  All
Tangible Personal Property is adequate and usable for the use and purposes for
which it is currently used, is in good operating condition, and has been
maintained and repaired in accordance with good business practice.

 

4.12                           Board Approval.  The board of directors of RESO has, at a
meeting duly called and held at which all directors of RESO were present or by
a unanimous written consent:  (a) approved
and declared advisable this Agreement; (b) determined that the Merger and
other transactions contemplated by this Agreement are advisable, fair to and in
the best interest of RESO and its Shareholder; (c) recommended to the shareholders
of RESO (1) approval of the Merger and the other transactions contemplated
hereby, and (2) approval and adoption of this Agreement; and (d) directed
that this Agreement be submitted to the shareholders of RESO for their approval
and adoption.

 

4.13                           Insurance.  RESO
has furnished, or made available to THK and RESO Merger Sub, true and complete
copies of all insurance policies and fidelity bonds covering the assets,
business, equipment, properties and operations of RESO relating to the
Business, a list of which (by type, carrier, policy number, limits, premium and
expiration date) is set forth in Schedule 4.13.  All such insurance policies are in full force
and effect and will remain in full force and effect with respect to all events
occurring prior to the Effective Time.

 

4.14                           Permits.  Schedule 4.14
lists all Permits used in or otherwise required to conduct the Business. Each
of the Permits is valid and in full force and effect.

 

4.15                           Taxes.  RESO has
validly elected status as a subchapter S corporation pursuant to Sections 1361
and 1362 of the Code for all periods since its incorporation, and has been so
classified for state purposes pursuant to analogous state provisions for the
same periods and the jurisdictions in which RESO does business listed on Schedule 4.1.  Except as set forth in Schedule 4.15
hereto (a) all Tax Returns and reports in respect of Taxes required to be
filed with respect to RESO or the Business have been timely filed, (b) all
Taxes required to be shown on such returns and reports or otherwise due have
been timely paid, (c) all such returns and reports are true, correct and
complete in all material respects, (d) no adjustment relating to such
returns

 

16

 

has been proposed formally or informally by any Governmental Authority
and, to the Knowledge of RESO, no basis exists for any such adjustment, (e) there
are no pending or, to the Knowledge of RESO, threatened actions or proceedings for
the assessment or collection of Taxes against RESO or (insofar as either
relates to the activities or income of RESO or the Business or could result in
Liability to RESO whether joint or several, or any corporation that was
includible in the filing of a return with RESO on a consolidated or combined
basis), (f) no consent under Section 341(f) of the Code has been
filed with respect to RESO, (g) there are no Tax Liens on any assets of RESO
or of the Business, (h) RESO has withheld and paid all Taxes required to
have been withheld and paid in connection with any amounts paid or owing to any
employee, independent contractor, creditor, stockholder, or other third party,
and all Forms W-2 and 1099 required with respect thereto have been properly
completed and timely filed, (i) RESO has not consented to extend the time
in which any Taxes may be assessed or collected by any taxing authority, (j) RESO
has not requested or been granted an extension of the time for filing any Tax
Return to a date later than the Closing Date, (k) there are no Liens for Taxes
(other than for current Taxes not yet due and payable) upon RESO’s assets, (l) RESO
will not be required (1) as a result of a change in method of accounting
for a taxable period ending on or prior to the Closing Date, to include any
adjustment under Section 481(c) of the Code (or any corresponding
provision of state, local or foreign law) in taxable income for any taxable
period (or portion thereof) beginning after the Closing Date or (2) as a
result of any “closing agreement,” as described in Section 7121 of the
Code (or any corresponding provision of state, local or foreign law), to
include any item of income or exclude any item of deduction from any taxable
period (or portion thereof) beginning after the Closing Date, (m) RESO is not a
party to or bound by any tax allocation or tax sharing agreement and does not
have any current or potential contractual obligation to indemnify any other
Person with respect to Taxes, (n) to the Knowledge of RESO, there is no basis
for any assessment, deficiency notice, 30-day letter or similar notice
with respect to any Tax to be issued to RESO with respect to any period on or
before the Closing Date, (o) RESO has not made any “parachute payments” (as
that term is defined in Section 280G of the Code), and is or will not
become obligated (under any contract entered into on or before the Closing
Date) to make any such “parachute payments”, that will not be deductible under Section 280G
of the Code (or any corresponding provision of state, local or foreign law), (p)
RESO has not been a United States real property holding corporation within the
meaning of Section 897(c)(2) of the Code (or any corresponding
provision of state, local or foreign law) during the applicable period
specified in Section 897(c)(1)(a)(ii) of the Code (or any
corresponding provision of state, local or foreign law), (q) no claim has ever
been made in writing by a taxing authority in a jurisdiction where RESO does
not file Tax Returns that RESO is or may be subject to Taxes assessed by such
jurisdiction, (r) RESO does not have any physical presence in any foreign
country, as defined in the relevant tax treaty between the United States of America
and such foreign country, (s) true, correct and complete copies of all income
and sales Tax Returns filed by RESO for the past two (2) years have been
furnished or made available to THK, and (t) RESO will not be subject to any
Taxes pursuant to Section 1374 or Section 1375 of the Code (or any
corresponding provision of state, local or foreign law) with respect to the
transactions contemplated by this Agreement.

 

4.16                           Labor Matters.

 

(a)                          The
name, place of employment, the current annual salary rates, bonuses, deferred
or contingent compensation, pension, accrued vacation, “golden parachute” and
other like benefits paid or payable (in cash or otherwise) in 2004 and 2005,

 

17

 

the date of employment and a
description of position and job function of each current salaried employee,
officer, director, consultant or agent of RESO is accurately stated in that
certain letter dated the date of this Agreement from the Shareholder to Gerard
M. Jacobs, the President and Chief Executive Officer of THK (the “Employee
Salaries Letter”).

 

(b)                         No
employment, consulting, severance pay, continuation pay, termination or
indemnification agreements or other similar agreements of any nature (whether
in writing or oral) exist between RESO and any current or former stockholder,
officer, director, employee or consultant.

 

(c)                          RESO is
not a party to any collective bargaining agreement or other labor union
contract applicable to persons employed by RESO and

 

(1)                                  there
are no controversies, strikes, slowdowns or work stoppages pending or, to
the Knowledge of RESO, threatened by any employee against RESO;

 

(2)                                  there
are no unfair labor practice complaints pending against RESO before the
National Labor Relations Board or any other Governmental Authority or involving
any current or former employee of RESO;

 

(3)                                  RESO
has complied with all applicable Laws relating to the employment of labor,
including those related to wages, hours, collective bargaining and the payment
and withholding of taxes and other sums as required by any Governmental
Authority and have withheld and paid to any appropriate Governmental Authority,
or are holding for payment not yet due to such Governmental Authority, all
amounts required to be withheld from employees of RESO and are not liable for
any arrears of wages, taxes, penalties or other sums for failure to comply with
any of the foregoing;

 

(4)                                  RESO
has paid in full to all its employees, or adequately accrued for in accordance
with GAAP, all wages, salaries, commissions, bonuses, benefits and other
compensation due to or on behalf of its employees provided however that RESO’s
employees have until the end of a calendar year to use accrued vacation;

 

(5)                                  there
is no claim with respect to payment of wages, salary or overtime pay that has
been asserted or is now pending or, to the Knowledge of RESO, threatened before
any Governmental Authority with respect to any Persons currently or formerly
employed by RESO;

 

(6)                                  there
is no charge or proceedings with respect to a violation of any occupational
safety or health standards that has been asserted or is now pending or, to the
Knowledge of RESO, threatened with respect to RESO; and

 

(7)                                  there
is no charge of discrimination in employment or employment practices, for any
reason, including, without limitation, age, gender, race, religion or other
legally protected category, which has been asserted and not settled or is now
pending or, to the Knowledge of RESO, threatened before the United States Equal
Employment Opportunity Commission, or any other Governmental Authority in any
jurisdiction in which RESO has employed or currently employs any Person.

 

18

 

4.17                           Employees and Related Agreements;
ERISA.

 

(a)                          Schedule 4.17
contains a true and complete list of each Employee Plan and each Employee
Agreement of RESO.  RESO has no plan or
commitment, whether legally binding or not, to establish any new Employee Plan,
to enter into any Employee Agreement or to modify or to terminate any Employee
Plan or Employee Agreement (except to the extent required by law as previously
disclosed to THK, or as required by this Agreement), or has any intention to do
any of the foregoing been communicated to employees.

 

(b)                         RESO has
provided to THK (1) current, true and complete copies of each Employee
Plan and each Employee Agreement, including all amendments thereto, and trust
or funding agreements with respect thereto, (2) the two most recent annual
actuarial valuations, if any, prepared for each Employee Plan, (3) the two
most recent annual reports (Series 5500 and all schedules thereto), if
any, required under ERISA in connection with each Employee Plan or related
trust, (4) a statement of alternative form of compliance pursuant to
Department of Labor Regulation §2520.104-23, if any, filed for each Employee
Plan which is an “employee pension benefit plan” as defined in Section 3(2) of
ERISA for a select group of management or highly compensated employees, (5) the
most recent determination letter received from the IRS, if any, for each Employee
Plan and related trust which is intended to satisfy the requirements of Section 401(a) of
the Code, (6) if the Employee Plan is funded, the most recent annual and
periodic accounting of Employee Plan assets, and (7) the most recent
summary plan description together with the most recent summary of material
modifications, if any, required under ERISA with respect to each Employee Plan.

 

(c)                          Except to
the extent any action, or failure to take any action, does not have a Material
Adverse Effect on RESO, (1) RESO has performed in all material respects
all obligations required to be performed by it under each Employee Plan and
Employee Agreement and is not in default under or in violation of any Employee Plan
or Employee Agreement, (2) each Employee Plan has been established and
maintained in all material respects in accordance with its terms and in
compliance with all requirements of Laws, (3) each Employee Plan intended
to qualify under Section 401 of the Code is so qualified and a
determination letter has been issued by the IRS to the effect that each Employee
Plan is so qualified and that each trust forming a part of any Employee Plan is
exempt from tax pursuant to Section 501(a) of the Code and, to the Knowledge
of RESO, no circumstances exist which could reasonably be expected to adversely
affect this qualification or exemption, (4) no “prohibited transaction,”
within the meaning of Section 4975 of the Code or Section 406 of
ERISA, has occurred with respect to any Employee Plan, (5) there are no
actions, proceedings, arbitrations, suits or claims pending or, to the Knowledge
of RESO, threatened or anticipated (other than routine claims for benefits),
with respect to any Employee Plan or Employee Agreement, (6) no event or
transaction has occurred with respect to any Employee Plan that would result in
the imposition of any tax under Chapter 43 of Subtitle D of the Code, (7) no
Employee Plan is under audit or investigation by the IRS, the Department of
Labor or other Governmental Authority and, to the Knowledge of RESO, no audit
or investigation is pending or threatened, (8) no liability under any Employee
Plan has been funded or has any obligation been satisfied with the purchase of
a contract from an insurance company as to which RESO has received notice that such

 

19

 

insurance company is insolvent
or is in rehabilitation or any similar proceeding, (9) RESO has timely
deposited and transmitted, or accrued, all amounts withheld from employees for
contributions or premium payments for each Employee Plan into the appropriate
trusts or accounts, and (10) each Employee Plan that allows loans to plan
participants has been operated in all material respects in accordance with the
plan’s written loan policy; in addition, all outstanding loans from all Employee
Plans are current as of the Closing Date, and there are no loans in default.

 

(d)                         RESO is
not the sponsor, and does not maintain, contribute to, or have any liability in
respect of, and has never sponsored, maintained, contributed to, or had any
liability in respect of, or been required to contribute to, an “employee
pension benefit plan” within the meaning of Section 3(2) of ERISA
that is subject to Title IV of ERISA, or a “multiple employer plan” (within the
meaning of Section 413 of the Code).

 

(e)                          RESO (1) does
not maintain or contribute to any Employee Plan that provides, or has any
liability to provide, life insurance, medical, severance or other employee
welfare benefits to any employee upon his or her retirement or termination of
employment, except as may be required by Section 4980B of the Code or otherwise
at the expense of the employee, and (2) does not have any obligation or
agreement (whether in oral or written form) to any employee (either
individually or to employees as a group) that such employee(s) would be
provided with life insurance, medical, severance or other employee welfare
benefits upon their retirement or termination of employment, except to the
extent required by Section 4980B of the Code or otherwise at the expense
of the employee.

 

(f)                            The
execution of, and performance of this Agreement and the transactions
contemplated hereby will not constitute an event under any Employee Plan or
Employee Agreement that will result in any payment (whether of severance pay or
otherwise), acceleration, forgiveness of indebtedness, vesting, distribution,
increase in benefits or obligation to fund benefits with respect to any employee.

 

(g)                         No Employee
Plan or Employee Agreement is funded by a trust described in Section 501(c)(9) of
the Code.

 

(h)                         RESO is not
(1) a member of a “controlled group of corporations,” or an “affiliated
service group” within the meanings of Sections 414(b) or (m) of the Code, (2) required
to be aggregated with any Person under Section 414(o) of the Code, or (3) under
“common control,” with any Person within the meaning of Section 4001(a)(14)
of ERISA or Section 414(c) of the Code.

 

(i)                             RESO has
complied in all material respects with the requirements of the HIPAA Medical
Privacy Regulations with respect to each Employee Plan that is subject to such
requirements and with respect to RESO’s status as a “covered entity” as defined
therein.

 

4.18                           Environmental and Health/Safety
Matters.

 

(a)                          To the Knowledge
of RESO, it is and has at all times been in material compliance with
Environmental Laws applicable to assets used in the Business (“Business

 

20

 

Assets”), and the
Business and RESO is not currently liable for any penalties, fines or
forfeitures for failure to comply with Environmental Laws.

 

(b)                         RESO has
obtained, or caused to be obtained (except where such failure to obtain, or
failure to cause to be obtained, has not resulted in a Material Adverse
Effect), and, to the Knowledge of RESO, is in material compliance with, all
applicable and material Permits required by Environmental Laws and necessary
for the operation of the Business.  Copies
of such Permits have been provided to THK. 
There are no administrative or judicial investigations, notices, claims
or other proceedings pending or, to the Knowledge of RESO, threatened by any
Governmental Authority or third parties against RESO or any of the Business
Assets which question the validity or entitlement of RESO to any Permit wherein
an unfavorable decision, ruling or finding could have a Material Adverse Effect
on RESO.

 

(c)                          RESO has
neither received nor does it have Knowledge of any non compliance order,
warning letter, investigation, notice of violation, claim, suit, action,
judgment, or administrative or judicial proceeding pending or threatened
against or involving RESO, issued by any Governmental Authority or third party
with respect to any Environmental Laws, which has not been resolved to the
satisfaction of the issuing Governmental Authority or third party and which
could have a Material Adverse Effect on RESO.

 

(d)                         To the Knowledge
of RESO, it has not generated, manufactured, used, recycled, transported,
transferred, stored, handled, treated, discharged, Released or disposed of, nor
has it allowed or arranged for any third parties to generate, manufacture, use,
recycle, transport, transfer, store, handle, treat, discharge, Release or
dispose of, Hazardous Substances or other Waste (which, for purposes of this Section 4.18(d) only,
Waste shall include white goods and recyclable materials) to or at any
location, including property currently or previously owned by it, other than a
site lawfully allowed or permitted by the Environmental Laws or other
applicable requirements of Laws to receive such Hazardous Substances or other
Waste for such purposes, nor has it performed, arranged for or allowed by any
method or procedure such generation, manufacture, use, recycling,
transportation, transfer, storage, treatment, spillage, leakage, dumping,
discharge, Release or disposal in material contravention of any Environmental
Laws, except such as would not have a Material Adverse Effect on RESO.

 

(e)                          To the Knowledge
of RESO, it neither caused, nor allowed to be caused or permitted, either by
action or inaction, a Release or discharge, or threatened Release or discharge,
of any material quantity of Hazardous Substance on, into or beneath the surface
of any parcel owned or leased by RESO or to any properties adjacent thereto
which would have a Material Adverse Effect on RESO.  To the Knowledge of RESO, there has neither occurred,
nor is there presently occurring, a Release or discharge, or threatened Release
or discharge, of any material quantity of Hazardous Substances on, into or
beneath the surface of any parcel owned or leased by RESO or to any properties
adjacent thereto which would have a Material Adverse Effect on RESO.

 

(f)                            To the
Knowledge of RESO, it has neither generated, handled, manufactured, treated,
stored, used, recycled, shipped, transported, transferred, or disposed of, nor
has it allowed or arranged, by contract, agreement or otherwise, for any third
parties

 

21

 

to generate, handle,
manufacture, treat, store, use, recycle, ship, transport, transfer or dispose
of, any Hazardous Substances or other Waste to or at a site which, pursuant to
Environmental Laws or any similar state law has been placed or been proposed
for placement on the National Priorities List or its state equivalent.  Neither RESO nor the Shareholder has received
written notice, and neither RESO nor the Shareholder has Knowledge of any facts
which could give rise to any notice, that RESO is a potentially responsible
party for a federal or state environmental cleanup site or for corrective
action under Environmental Laws.  RESO
has not submitted nor was required to submit any notice pursuant to Section 103(c) of
CERCLA with respect to any parcel owned or leased by RESO.  RESO has not received any written request for
information in connection with any federal or state environmental cleanup site,
or in connection with any of real property or premises where RESO has
transported, transferred or disposed of Hazardous Materials or other
Wastes.  RESO has neither been required, nor
has it undertaken, any response or remedial actions or clean up actions of any
kind at the request of any Governmental Authorities or at the request of any
other third party.  To the Knowledge of RESO,
it has no material liability under any Environmental Laws for personal injury,
property damage, natural resource damage, or clean up obligations.

 

(g)                         To the Knowledge
of RESO, there are no Aboveground Storage Tanks or Underground Storage Tanks on
any Property.  For purposes of this
Agreement, the terms “Aboveground Storage Tanks” and “Underground
Storage Tanks” shall have the meanings given them in Section 6901 et
seq., as amended, of RCRA, or any applicable state or local statute, law,
ordinance, code, rule, regulation, order ruling, or decree governing
Aboveground Storage Tanks or Underground Storage Tanks.

 

(h)                         Schedule 4.18(h) is
a true and complete schedule of (1) all material environmental
audits, assessments, investigations or occupational health studies, of which RESO
has Knowledge, undertaken by, or on behalf of, RESO, relating to or affecting RESO
or any of the Real Properties, and (2) all material citations issued under
OSHA, or similar state or local statutes, laws, ordinances, codes, rules,
regulations, orders, rulings, or decrees, relating to or affecting RESO or any
of the Real Properties.

 

(i)                             Schedule 4.18(i) contains
a list of the Business Assets which have been confirmed to contain PCBs or “asbestos”
or “asbestos containing material” (as such terms are identified under the
Environmental Laws).  RESO has operated
and continues to operate in material compliance with all Environmental Laws
governing the handling, use and exposure to and disposal of PCBs or asbestos or
asbestos containing materials, except where such noncompliance would not have a
Material Adverse Effect on RESO.  There
are no claims, actions, suits, governmental investigations or proceedings
brought by any Governmental Authority or third party pending, or, to the Knowledge
of RESO, threatened against or directly affecting RESO, the Business Assets or the
Business relating to the use, handling or exposure to and disposal of PCBs or
asbestos or asbestos containing materials in connection with its assets and
operations.

 

(j)                             Schedule 4.18(j)
is a true and complete schedule of the operations and activities, and
locations thereof, which have been conducted and are being conducted by RESO on
any of the Real Properties which have involved the generation, accumulation,
storage, treatment, transportation, labeling, handling, manufacturing, use,
recycling,

 

22

 

spilling, leaking, dumping,
discharging, release or disposal of any material quantities of Hazardous
Substances.

 

4.19                           Certain Interests.

 

(a)                          Except
as set forth in Schedule 4.19, no officer, director or stockholder
of RESO, and no relative or spouse (or relative of such spouse) who resides
with, or is a dependent of, any such officer or director:

 

(1)                                  has
any direct or indirect financial interest in any competitor, supplier or
customer of RESO, provided, however, that the ownership of securities
representing no more than 3% of the outstanding voting power of any competitor,
supplier or customer, and which are also listed on any national securities
exchange or traded actively in the national over-the-counter market, shall not
be deemed to be a “financial interest” so long as the Person owning the
securities has no other connection or relationship with the competitor,
supplier or customer;

 

(2)                                  owns,
directly or indirectly, in whole or in part, or has any other interest in any
tangible or intangible property which RESO uses or has used in the conduct of
the Business or otherwise; or

 

(3)                                  has
outstanding any Indebtedness to RESO.

 

(b)                         RESO has no Indebtedness, Liabilities, or any
other obligation of any nature whatsoever to, any officer, director or
stockholder of RESO or to any relative or spouse (or relative of such spouse)
who resides with, or is a dependent of, any such officer, director or
stockholder, other than for any salary payable in the ordinary cause to the
Shareholder or any indemnification obligations pursuant to the Articles of
Incorporation and Bylaws of RESO (provided that any such indemnification
obligations shall neither reduce any liability of the Shareholder to THK or
RESO Surviving Corporation pursuant to this Agreement nor require RESO to
reimburse or hold harmless the Shareholder for any of his liabilities to THK or
RESO Surviving Corporation pursuant to this Agreement, and provided further
that if and to the extent that any such indemnification obligations are deemed
or construed to reduce any liability of the Shareholder to THK or RESO
Surviving Corporation pursuant to this Agreement or to require RESO to
reimburse or hold harmless the Shareholder for any of his liabilities to THK or
RESO Surviving Corporation pursuant to this Agreement then and in such event
the Shareholder hereby fully waives, settles, releases and forfeits his rights,
titles and interests in and under, and all protections and benefits afforded to
him by, any such indemnification obligations).

 

4.20                           Litigation. 
There are no Actions pending, or to the Knowledge of RESO, threatened,
against, relating to or affecting RESO or the Business before any Court,
Governmental Authority,  arbitrator or
mediator. Neither RESO nor the Shareholder is subject to any Order, including
but not limited to any Order which prohibits or restricts the consummation of
the transactions contemplated hereby or restricts in any way the ownership or
operations of RESO or the Business.

 

4.21                           Intellectual Property.  Except as would not, individually or in the
aggregate, have a Material Adverse Effect on RESO (1) RESO owns, or is
licensed to use (in each case, free and clear of any Liens), all Intellectual
Property used in or necessary for the conduct of the Business

 

23

 

as currently conducted, (2) to the Knowledge of RESO, the use of
any Intellectual Property by RESO does not infringe on or otherwise violate the
rights of any Person, (3) the use of the Intellectual Property is in
accordance with applicable licenses pursuant to which RESO acquired the right
to use any Intellectual Property, and (4) to the Knowledge of RESO, no
Person is challenging, infringing on or otherwise violating any right of RESO
with respect to any Intellectual Property owned by or licensed to RESO.  As of the date of this Agreement, except as
would not, individually or in the aggregate, have a Material Adverse Effect on RESO,
neither RESO nor the Shareholder has Knowledge of any pending claim, order or
proceeding with respect to any Intellectual Property used by RESO and no
Intellectual Property owned or licensed by RESO is being used or enforced in a
manner that would reasonably be expected to result in the abandonment,
cancellation or unenforceability of the Intellectual Property.  Schedule 4.21 sets forth a true
and complete list of all domain names owned by RESO or the Shareholder.

 

4.22                           Inventories.  The Inventory of RESO as reflected in the Company
Financials are in proper working order and of merchantable quality, which can
be sold in the ordinary course of the Business in a fashion consistent with the
historical sales results, efficiencies, terms, conditions, pricing, and
inventory turnover patterns of the Business.

 

4.23                           Receivables. 
The Receivables of RESO as reflected in the Audited Financials, consist
solely of bona fide accounts receivable generated by the Business in the
ordinary course, which can be collected in the ordinary course of the Business
in a fashion consistent with the historical collection results, efficiencies,
policies, procedures and patterns of the Business.  The Receivables as reflected in the Audited
Financials exceed the Liabilities reflected in the Audited Financials by at
least $1.00.  On the Closing Date, RESO
shall not have any Liability for amounts owing any lawyer, accountant, advisor,
broker or agent retained by RESO or the Shareholder in connection with the
transactions contemplated by this Agreement (including any broker listed on Schedule 4.25).

 

4.24                           Residency; Investment
Sophistication; Backgrounds. 
The Shareholder (a) is a resident of Florida, (b) is an “accredited”
investor as defined in Section 501 of Regulation D promulgated under the
Securities Act and capable of evaluating the potential risks of an investment
in THK Common Stock, (c) has received, read and understands the public
filings of THK with the SEC, including but not limited to THK’s Quarterly Report
on Form 10-QSB for the quarter ended March 31, 2005, including
the financial statements and “Risk Factors” contained therein, (d) has
been afforded a full opportunity to conduct such additional “due diligence”
investigation of THK, its subsidiaries and RESO Merger Sub, including their
respective businesses, management, balance sheets, financial results, prospects
and Risk Factors as the Shareholder has deemed appropriate, (e) has
retained and has been advised by his own competent lawyers and accountants in
regard to the preparation, negotiation and execution of this Agreement and the
transactions contemplated herein, and (f) has never been charged, indicted
or convicted of any criminal offense, excepting only minor traffic violations.

 

4.25                           Brokers.  Except
as set forth on Schedule 4.25, neither RESO nor the Shareholder has
employed any financial advisor, broker, finder, consultant or advisor, and
neither RESO nor the Shareholder has incurred nor will incur any broker’s, finder’s,
investment banking, consultant, advisory or similar fees, commissions or
expenses in connection with the transactions contemplated by this Agreement.

 

24

 

4.26                           Cash on Hand in Checking and
Savings Accounts.  Schedule 4.26
sets forth (1) a true and complete list of the names and locations of all
banks, trust companies, securities brokers and other financial institutions at
which RESO has an account or safety deposit box or maintains a banking,
custodial, trading or other similar relationship, (2) a true and complete
list and description of each such account, safety deposit box and relationship,
indicating in each case the account number, the names of the respective
officers, employees, agents or other similar representatives of RESO having
signatory power with respect thereto and the current balances in the accounts
or safety deposit boxes, and (3) a list of each debenture, note, and other
evidence of indebtedness, stock, security (including rights to purchase and
derivative securities or rights), interests in joint ventures and general and
limited partnerships, mortgage loans and other investment or portfolio assets
owned of record or beneficially by RESO, the legal name of the record and
beneficial owner thereof, the location of the certificates, if any, therefor,
the maturity date, if any, and any stock or bond powers or other authority for
transfer granted with respect thereto.

 

4.27                           Liabilities and Indebtedness.  On the Closing Date, RESO shall have no
Indebtedness or Liabilities, including but not limited to Claims of any nature,
except for Indebtedness or Liabilities reflected on the Audited Financials or
incurred in the ordinary course of business between December 31, 2004, and
the Closing Date (“Approved Liabilities”).

 

4.28                           Contracts.  That
certain letter dated the date of this Agreement from the Shareholder to Gerard
M. Jacobs, the President and Chief Executive Officer of THK (the “Contracts
Letter”), sets forth a list of all material contracts (oral or written) to
which RESO is a party (the “Designated Contracts”), including:

 

(a)                          any agreement(s)
for the provision of educational content or other content used by RESO on its
website(s) or otherwise in its Business (the “Content Agreements”);

 

(b)                         any
agreement (or group of related agreements) for the purchase or sale of raw
materials, commodities, supplies, products, or other personal property, or for
the furnishing or receipt of services, in each case not entered into in the ordinary
course of business;

 

(c)                          any
agreement concerning a partnership, joint venture or limited liability company
venture;

 

(d)                         any
agreement (or group of related agreements) under which it has created,
incurred, assumed, or guaranteed any Indebtedness for borrowed money, in excess
of $10,000 or pursuant to which a Lien has been placed on any of its assets,
tangible or intangible, in excess of $10,000;

 

(e)                          any
agreement concerning confidentiality or non-competition;

 

(f)                            any
agreement between the Shareholder or his Affiliates and RESO;

 

(g)                         any
agreement under which RESO has advanced or loaned monies to any director,
officer, or employee;

 

25

 

(h)                         any
agreement which restricts RESO from engaging in the Business anywhere in the
world;

 

(i)                             any
settlement or similar agreement, the performance of which will require RESO to
pay, or entitles RESO to receive, after the Closing Date consideration in excess
of $10,000;

 

(j)                             any
agreement relating to any acquisition, divestiture, merger or similar
transaction involving consideration in excess of $10,000, which contains
representations, warranties, covenants, indemnities or other obligations which
are still in effect;

 

(k)                          any
powers of attorney (other than a power of attorney given in the ordinary course
of business for routine Tax matters);

 

(l)                             any
contract relating to pending capital expenditures of RESO in excess of $10,000;

 

(m)                       any
agreement under which RESO has advanced or loaned any other Person amounts in
the aggregate exceeding $10,000; and

 

(n)                         any other
agreement (or group of related agreements) the performance of which involves
consideration in excess of $50,000.

 

RESO has
delivered, or made available, to THK, a correct and complete copy of each of
the written Designated Contracts listed in the Contracts Letter (as amended to
date) including but not limited to the Content Agreements and a written summary
setting forth the material terms and conditions of each oral Designated
Contract, if any, referred to in the Contracts Letter.  Each of the Designated Contracts including but
not limited to the Content Agreements is the legal, valid, binding obligation
of the parties thereto, enforceable against each party except as enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or affecting creditor rights generally or by general equity
principles (regardless of whether enforcement is sought in a proceeding in
equity or at law).  No party to any of
the Designated Contracts including but not limited to the Content Agreements is
in material breach or default, and no event has occurred that with notice or
lapse of time would constitute a material breach or default, or permit
termination, modification, or acceleration, under any of the Designated
Contracts including but not limited to the Content Agreements.

 

4.29                           Domain Names. 
Prior to the Closing Date, the Shareholder shall have conveyed to RESO all
right, title and interest in and to any domain name or other Intellectual Property
related to the Business owned individually by him.

 

4.30                           Spyware/Adware. 
To the Knowledge of RESO, it is not aware of any complaints of “adware,”
“spyware” or “cookie stuffing” arising from or related to services performed by
RESO.  RESO has a “zero tolerance” policy
regarding “adware,” “spyware” and “cookie stuffing” and takes commercially
reasonable steps to investigate the practices regarding these activities by
each of its Affiliates.

 

26

 

4.31                           Compliance with Laws Governing
Real Estate Schools in Florida. 
RESO and the Shareholder have complied with all applicable laws and
administrative rules and regulations governing the conduct of an on-line
real estate school in Florida, including the provisions of Chapter 475 of the
Florida Statutes and Chapter 61J2 of the Florida Administrative Code.

 

4.32                           Material Information.  No representation or warranty made by RESO or
the Shareholder in this Agreement contains any untrue statement of a material
fact or omits to state any material fact necessary to make the statements
herein not misleading.

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES OF

THK AND RESO MERGER SUB

 

In order to
induce the Shareholder and RESO to enter into this Agreement and to consummate
the transactions contemplated hereby, THK and RESO Merger Sub each hereby represent
and warrant to each of the Shareholder and RESO as follows:

 

5.1                                 Organization and Qualification.  Each of THK and RESO Merger Sub is a
corporation duly organized, validly existing and in good standing under the
laws of its respective state of incorporation with full corporate power and
authority to own, lease and operate its properties and to conduct its business
as now conducted except where failure to be so organized, existing and in good
standing would not reasonably be expected to have a Material Adverse Effect on
THK or RESO Merger Sub.  Each of THK and RESO
Merger Sub is duly qualified or licensed as a foreign corporation and is in
good standing in each of the jurisdictions listed on Schedule 5.1
which are the only jurisdictions in which the failure to be so licensed or
qualified could have a Material Adverse Effect on THK or RESO Merger Sub.  Each of THK and RESO Merger Sub has made
available to the Shareholder and RESO true, complete and correct copies of its
Articles of Incorporation and bylaws, each as amended to date.  All of the issued and outstanding shares of
capital stock of, or other equity interests in, RESO Merger Sub are (a) duly
authorized, validly issued, fully paid, and non-assessable, (b) owned,
directly or indirectly, by THK free and clear of all Liens, and (c) free
of any restriction, including, without limitation, any restriction which
prevents the payment of dividends to THK, or otherwise restricts the right to
vote, sell or otherwise dispose of such capital stock or other ownership
interest other than restrictions under the Securities Act and state securities
laws.

 

5.2                                 Capital Structure.  The authorized capital stock of THK consists
of (a) 100,000,000 shares of THK Common Stock and (b) 5,000,000
shares of “blank check” Preferred Stock, 500,000 shares of which have been
designated “Series One Preferred Stock”. 
(“THK Preferred Stock”). 
As of the date of this Agreement: (1) 33,324,428 shares of THK Common
Stock were issued and outstanding, (2) no shares of THK Preferred Stock
were issued or outstanding, (3) 2,500,000 shares of THK Common Stock were
held in the treasury of THK, and (4) 12,013,089 shares of THK Common Stock
were duly reserved for future issuance pursuant to warrants or options issued
or granted by THK.  All outstanding
shares of THK Common Stock are, and all shares of THK Common Stock to be issued
in connection with the consummation of the transactions contemplated by this
Agreement will be, when issued in accordance with the terms hereof, duly
authorized, validly issued, fully paid and non-assessable, and not subject to,
or issued in violation of, any kind of preemptive, subscription or any kind of
similar rights.  There are no bonds,
debentures, notes or other indebtedness of THK having the right to vote (or

 

27

 

convertible into securities having the right to vote) on any matters on
which stockholders of THK may vote. Except as described on Schedule 5.2(a) hereof,
there are no outstanding securities, options, warrants, calls, rights,
commitments, agreements, arrangements or undertakings of any kind (contingent
or otherwise) to which THK is a party or bound obligating THK to issue, deliver
or sell, or cause to be issued, delivered or sold, additional shares of capital
stock or other voting securities of THK or obligating THK to issue, grant,
extend or enter into any agreement to issue, grant or extend any such security,
option, warrant, call, right, commitment, agreement, arrangement or
undertaking.  Except as set forth on Schedule 5.2(b),
neither THK nor RESO Merger Sub is subject to any obligation or requirement to
provide funds for, or to make any investment (in the form of a loan or capital
contribution) to, or in, any Person. All of the issued and outstanding shares
of THK Common Stock were issued in compliance in all material respects with all
applicable federal and state securities laws.

 

5.3                                 Authorization; Enforceability.  Each of THK and RESO Merger Sub has the
corporate power and authority to execute, deliver and perform their respective
obligations under this Agreement and the other Documents to which it is or they
are a party. The execution, delivery and performance of this Agreement and the
other Documents to which it is or they are a party and the consummation of the
transactions contemplated herein and therein have been duly authorized and
approved by the board of directors of THK and the board of directors and shareholders
of RESO Merger Sub, and no other action by either entity or its shareholders is
necessary to consummate the transactions contemplated by this Agreement and the
other Documents.  This Agreement and each
of the other Documents to be executed and delivered by each of THK and RESO
Merger Sub have been duly executed and delivered by, and constitute the legal,
valid and binding obligations of, each of them, enforceable against each of
them, in accordance with their terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or affecting creditor rights generally or by general equity principles
(regardless of whether enforcement is sought in a proceeding in equity or at
law).

 

5.4                                 No Violation or Conflict.  None of (a) the execution and delivery
by THK and RESO Merger Sub of this Agreement and the other Documents to be
executed and delivered by each of THK and RESO Merger Sub, (b) the consummation
by each of THK and RESO Merger Sub of the transactions contemplated by this
Agreement and the other Documents, or (c) the performance of this
Agreement and the other Documents required by this Agreement to be executed and
delivered by each of THK and RESO Merger Sub at the Closing, will (1) conflict
with or violate the Articles of Incorporation or bylaws of any of them, (2) conflict
with or violate any Law, Order or Permit applicable to any of them or by which
their properties are bound or affected, or (3) result in any breach or
violation of, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, or impair the rights of THK or RESO
Merger Sub or alter the rights or obligations of any third party under, or give
to others any rights of termination, amendment, acceleration or cancellation
of, or result in the creation of any Lien on any of the properties or assets of
either THK or RESO Merger Sub except, in the case of clause (2) or (3) above,
for any control, breach, violation, default or other occurrence that would not
individually or the aggregate, have a Material Adverse Effect on THK or RESO
Merger Sub.

 

5.5                                 Governmental Consents and Approvals.  Except as set forth on Schedule 5.5,
the execution, delivery and performance of this Agreement and the other
Documents by each of

 

28

 

THK and RESO Merger Sub do not and will not require any consent,
approval, authorization, Permit or other order of, action by, filing with or
notification to, any Governmental Authority.

 

5.6                                 Litigation. 
Except as set forth on Schedule 5.6, there are no Actions
pending or, to the Knowledge of THK, threatened, against THK or RESO Merger Sub
or relating to or affecting the Business before any Court, Governmental
Authority, arbitrator or mediator. 
Neither THK or RESO Merger Sub is a party to or subject to any Order,
agreement or understanding which prohibits or restricts the consummation of the
transactions contemplated hereby or restricts in any way the ownership or
operations of RESO or the Business.

 

5.7                                 Interim Operations.  RESO Merger Sub was formed solely for the
purpose of engaging in the transactions contemplated by this Agreement, and has
engaged in no other business activities and has conducted its operations only
as contemplated in this Agreement.

 

5.8                                 Brokers.  Neither
THK nor RESO Merger Sub has employed any financial advisor, broker, finder, consultant
or advisor and neither THK nor RESO Merger Sub has incurred and will not incur
any broker’s, finder’s, investment banking, consultant, advisory or similar
fees, commissions or expenses in connection with the transactions contemplated
by this Agreement.

 

5.9                                 Material Information.  No representation or warranty made by THK or RESO
Merger Sub in this Agreement contains any untrue statement of a material fact
or omits to state any material fact necessary to make the statements herein no
misleading.

 

ARTICLE VI

 

CLOSING DELIVERIES/CONDITIONS PRECEDENT

 

6.1                                 RESO/Shareholder Deliveries. At
the Closing, RESO and the Shareholder, to the extent applicable, shall take the
following actions:

 

(a)                          RESO
shall deliver to THK, in a form reasonably satisfactory to THK, an affidavit of
RESO, issued pursuant to and in compliance with Treasury Regulations Sections
1.897-2(h) and 1.1445-2(c)(3) and dated as of the Closing
Date, certifying that an interest in RESO is not a U.S. real property interest
within the meaning of Section 897 of the Code;

 

(b)                         The Shareholder
shall convey, give, grant, assign and transfer to RESO Surviving Corporation,
any and all rights, titles and interests of any nature whatsoever that the Shareholder
may have in, or to, the ownership or use of any and all Intellectual Property used
in or associated with RESO or the Business and not otherwise transferred to RESO
prior to the Closing;

 

(c)                          The Shareholder
shall convey, give, grant, assign and transfer to RESO Surviving Corporation,
any and all rights, titles and interests of any nature whatsoever, legal or
beneficial, active or passive, that the Shareholder may have in, or to any
other Person, business or “website” involving the sale or provision of
information, goods or services over the Internet, it being expressly
acknowledged and agreed by the Shareholder that it is the intent of the Parties
and of this Agreement that following the

 

29

 

Merger the Shareholder’s only
businesses of any nature whatsoever involving the Internet, will be his interest
in THK and RESO Surviving Corporation;

 

(d)                         The
Shareholder shall execute and deliver the Employment Agreement;

 

(e)                          The Shareholder
shall execute and deliver to THK the registration rights agreement in the form
set forth in Exhibit C hereto;

 

(f)                            The Shareholder
shall deliver certificates evidencing all of the RESO Common Stock to THK;

 

(g)                         RESO
shall deliver to THK the Audited Financials as of December 31, 2004 and
for the year then ended, prepared in accordance with GAAP, and accompanied by a
signed, unqualified opinion of Blackman Kallick;

 

(h)                         RESO
shall deliver to THK a certificate, with supporting bank statements, stating
the amount of cash on deposit on the Closing Date in unrestricted accounts
maintained by RESO;

 

(i)                             RESO
shall deliver all corporate minute books and stock records to THK; and

 

(j)                             RESO
shall deliver to THK a copy of the resolutions duly, validly and unanimously
adopted by the board of directors and Shareholder of RESO, certified by the
corporate secretary, authorizing and approving the execution, delivery and performance
of this Agreement and the other Documents and the transactions contemplated
hereby and thereby.

 

6.2                                 THK/RESO Merger Sub Deliveries. At
the Closing, THK and RESO Merger Sub, to the extent applicable shall take the
following action:

 

(a)                          THK shall
deliver to the Shareholder the aggregate Cash Consideration described in Section 2.6
subject to the adjustment described in Section 2.10;

 

(b)                         THK shall
deliver to the Shareholder an irrevocable letter of instructions addressed to Colonial
Stock Transfer Co. Inc. in regard to the issuance and delivery to the
Shareholder of the Stock Consideration in the form set forth as Exhibit D
hereto;

 

(c)                          THK
shall deliver Warrant Agreements to the Shareholder in the form set forth as Exhibit E
hereto;

 

(d)                         THK shall
cause RESO Surviving Corporation to execute and deliver to the Shareholder the Employment
Agreement;

 

(e)                          THK
shall execute and deliver to the Shareholder the registration rights agreement
in the form set forth in Exhibit C hereto; and

 

30

 

(f)                            THK
and RESO Merger Sub shall deliver to the Shareholder a copy of the resolutions
duly, validly and unanimously adopted by the board of directors of each of THK
and RESO Merger Sub and by the shareholders of RESO Merger Sub certified by
their respective corporate secretary authorizing and approving the execution,
delivery and performance of this Agreement and the other Documents and the
transactions contemplated hereby and thereby.

 

6.3                                 Conditions Precedent.  The obligation of each of the Parties to
consummate the transactions described in this Agreement shall be subject to the
fulfillment on or before the Closing of the following conditions precedent,
each of which may be waived by a Party benefiting from such condition
precedent, in its sole discretion:

 

(a)                          Representations,
Warranties and Covenants of the Shareholder and RESO.  The representations and warranties of the
Shareholder and RESO contained in this Agreement shall have been true and
correct when made and shall be true and correct in all material respects as of
the Closing, with the same force and effect as if made as of the Closing Date,
other than such representations and warranties that are expressly made as of
another date, and the covenants and agreements contained in this Agreement to
be complied with by the Shareholder and RESO on or before the Closing shall
have been complied with.

 

(b)                         Representations,
Warranties and Covenants of THK and RESO Merger Sub.  The representations and warranties of each of
THK and RESO Merger Sub contained in this Agreement shall have been true and
correct when made and shall be true and correct in all material respects as of
the Closing, with the same force and effect as if made as of the Closing Date,
other than such representations and warranties that are expressly made as of
another date, and the covenants and agreements contained in this Agreement to
be complied with by THK and RESO Merger Sub on or before the Closing shall have
been complied with.

 

(c)                          No
Adverse Change of RESO.  No events or
conditions shall have occurred which individually or in the aggregate, have
had, or may reasonably be anticipated to give rise to any Material Adverse
Effect on RESO.

 

(d)                         No
Adverse Change of THK or RESO Merger Sub. 
No events or conditions shall have occurred which individually or in the
aggregate, have had, or may reasonably be anticipated to give rise to any
Material Adverse Effect on THK or RESO Merger Sub.

 

(e)                          Governmental
Approvals.  Any and all approvals
from Governmental Authorities required for the lawful consummation of the
transactions contemplated by this Agreement and the other Documents shall have
been obtained.  The Articles of Merger
and Plan of Merger shall have been filed with the Department of State of the
State of Florida.

 

(f)                            Consents.  Any and all needed consents and approvals
from third parties for the consummation of the transactions contemplated by
this Agreement and the other Documents shall have been obtained, including the
approval of the issuance of the Stock Consideration by the American Stock
Exchange.

 

31

 

(g)                         No
Actions, Suits or Proceedings.  No
Order of any Court or Governmental Authority shall have been issued
restraining, prohibiting, restricting or delaying, the consummation of the
transactions contemplated by this Agreement and the other Documents.  No Litigation shall be pending or, to the
Knowledge of RESO and the Shareholder or THK and RESO Merger Sub, as the case
may be, threatened, before any Court or Governmental Authority to restrain,
prohibit, restrict or delay, or to obtain damages or a discovery order in
respect of this Agreement or the consummation of the transactions contemplated
hereby.  No insolvency proceeding of any
character including without limitation, bankruptcy, receivership,
reorganization, dissolution or arrangement with creditors, voluntary or
involuntary, affecting RESO or THK shall be pending, and RESO or THK shall not
have taken any action in contemplation of, or which would constitute the basis
for, the institution of any such proceedings.

 

(h)                         Audited
Financial Statements. Blackman Kallick shall have delivered the Audited
Financials as of December 31, 2004 and for the year then ended, to THK,
and such Audited Financials shall have been consistent, in THK’s sole
discretion, with the Unaudited RESO Financial Statements.

 

(i)                             Due
Diligence. THK shall have completed its due diligence investigation of RESO
(including without limitation an examination of corporate books and records,
financials, historical operations, management, business practices, computer
systems, prospects, legal, tax, ERISA and other matters), and the results of
such investigation shall be satisfactory to THK in its sole discretion.

 

(j)                             Financing
Contingency.  THK shall have
successfully raised the $2,200,000 Cash Consideration on terms and conditions
acceptable to THK in its sole discretion.

 

(k)                          Legal
Opinion. THK shall have received a legal opinion from Barnett Bolt Kirkwood
Long & McBride, in form and substance satisfactory to THK, to the
effect that RESO has all permits, approvals, licenses and consents necessary to
conduct its Business as currently conducted.

 

6.4                                 Termination.

 

(a)                          Any Party
benefiting from any particular condition precedent to Closing set forth in Section 6.3
shall have the right to terminate this Agreement in the event that such
condition precedent cannot be met.

 

(b)                         This
Agreement shall terminate if the Closing does not occur by July 15, 2005,
unless such date is extended by mutual agreement of the Parties.

 

6.5                                 Business Prior to the Closing Date.  During the period between the signing of this
Agreement and the Closing Date, the Shareholder shall operate RESO solely in
the ordinary course of Business consistent with past practices, excepting only
that the Shareholder may cause RESO to transfer, assign, release or otherwise
dispose of cash to the Shareholder.  Except
as provided in the preceding sentence, during the period from the signing of
this Agreement and the Closing Date there shall not be any material increases
or decreases in compensation, capital expenditures, asset sales or affiliate
transactions involving RESO and/or the Shareholder, nor

 

32

 

shall there be any unusual cash withdrawals, unusual payments, unusual
contracts or contract provisions, or other unusual transactions or business
practices involving RESO and/or the Shareholder.

 

ARTICLE VII

 

EMPLOYMENT MATTERS

 

7.1                                 Current Employees.  The aggregate annual base salary of each person
employed by RESO shall be as set forth in the Employee Salary Letter attached
hereto as Schedule 7.1; and

 

7.2                                 Management of Surviving Corporation.  From and after the Effective Time, until his
successor is duly elected and qualified, the Shareholder shall serve as President
of RESO Surviving Corporation, reporting to the President and the Chief
Operating Officer of THK, with authority and responsibility to manage and
control the day-to-day operations of RESO Surviving Corporation subject to the
overall control of the board of directors of RESO Surviving Corporation and THK.  Specifically:

 

(a)                          The
Shareholder shall have the authority to (1) establish all employee
personnel policies involving RESO Surviving Corporation, (2) make all
decisions regarding persons employed by RESO Surviving Corporation, (3) establish
marketing and service strategies for RESO Surviving Corporation, and (4) to
establish and change, from time to time, all policies and practices relating to
the pricing of RESO Surviving Corporation products and services.

 

(b)                         Notwithstanding
the provisions of clause (a) above, neither RESO Surviving Corporation,
nor any of its subsidiaries may take or agree to take, and the Shareholder shall
not cause, assist or participate in any fashion in RESO Surviving Corporation,
or any of its subsidiaries taking or agreeing to take, any of the following
actions, without the prior express approving vote of the board of directors of RESO
Surviving Corporation and THK respectively:

 

(1)                                  amend
the Articles of Incorporation or bylaws of RESO Surviving Corporation;

 

(2)                                  wind-up,
liquidate, dissolve or reorganize RESO Surviving Corporation, or adopt a plan
or proposal contemplating any of the foregoing;

 

(3)                                  approve
the annual budget of RESO Surviving Corporation for any fiscal year, or approve
any course of action which is likely to cause RESO Surviving Corporation to incur
expenses or to make capital expenditures in amounts materially different from
the amounts set forth in the relevant budget;

 

(4)                                  elect
or remove corporate officers of RESO Surviving Corporation;

 

(5)                                  change
the base or bonus compensation structure of any of the senior management level
employees of RESO Surviving Corporation including the persons named on Schedule 7.1;

 

33

 

(6)                                  enter
into, modify or terminate any employment agreements, severance agreements,
profit sharing plans, pension plans, or similar agreements with any employee of,
or consultant to, RESO Surviving Corporation;

 

(7)                                  issue
securities of RESO Surviving Corporation, including debt or equity securities,
options, rights or warrants, or any other securities which are convertible into
or exchangeable for shares of common or preferred stock of RESO Surviving
Corporation;

 

(8)                                  register
any securities of RESO Surviving Corporation;

 

(9)                                  merge,
consolidate or combine RESO Surviving Corporation with any other corporation,
partnership or other entity;

 

(10)                            sell
assets of RESO Surviving Corporation, other than in the ordinary course of
business;

 

(11)                            purchase,
sell or dispose of (in a single transaction or a series of related
transactions), lease or acquire stock or assets valued at $25,000 or more,
including acquiring another company, division or line of business (other than as
provided for in RESO Surviving Corporation’s annual budget approved in
accordance with this Section 7.2);

 

(12)                            declare
or pay any dividends or any other distribution in respect of any securities of RESO
Surviving Corporation, or redeem, acquire or retire any securities;

 

(13)                            make,
or commit to make, during any fiscal year capital expenditures or enter into capital
leases (other than capital expenditures and capital leases provided for in RESO
Surviving Corporation’s annual budget approved in accordance with this Section 7.2)
which, in the aggregate, exceed $25,000;

 

(14)                            enter
into any contract, commitment or arrangement of any nature with any
corporation, partnership or other entity directly or indirectly owned or
controlled by, or an Affiliate of, any employee of RESO Surviving Corporation,
or by any relative of any employee of RESO Surviving Corporation;

 

(15)                            create
any committee of the board of directors, or change a committee of the board of directors,
of RESO Surviving Corporation;

 

(16)                            borrow,
issue bonds or notes, or otherwise incur debt or guarantee any debt (other than
accounts payable incurred in the ordinary course of business, and any
borrowing, issuance of bonds or notes, or other debt or guarantees of any debt
provided for in RESO Surviving Corporation’s annual budget approved in
accordance with this Section 7.2);

 

(17)                            mortgage,
pledge, grant a security interest, or otherwise encumber the assets of RESO
Surviving Corporation (other than any mortgage, pledge, grant of security
interest, or other encumbrance provided for in RESO Surviving Corporation’s
annual budget approved in accordance with this Section 7.2);

 

(18)                            initiate
or settle any lawsuit or arbitration proceeding involving RESO Surviving
Corporation, other than actions to collect debts owed to RESO Surviving
Corporation;

 

34

 

(19)                            retain
independent certified public accountants to audit the books and financial
records of RESO Surviving Corporation;

 

(20)                            issue
any press release of any type without the prior written approval of the chief executive
officer of THK; or

 

(21)                            take
any action referred to in clauses (1) through (20) above, inclusive,
relating to any subsidiary of RESO Surviving Corporation.

 

ARTICLE VIII

 

EARNOUT

 

Following the
Closing Date, the Merger Consideration may be increased as follows: The
Shareholder is entitled to earn payments (the “Earnout”) if and when the
Aggregate Earnings reach the following target levels during the Earnout Period,
to be paid one-half (50%) in cash and one-half (50%) in unregistered THK Common
Stock valued at the average closing price of a share of THK Common Stock on the
principal market on which the shares are then traded on the five (5) last
trading days of the most recently concluded full calendar quarter during the
Earnout Period, it being understood that the minimum aggregate payments of the
Earnout shall be zero dollars ($0) and the maximum aggregate payments of the
Earnout shall be Five Hundred Thousand Dollars ($500,000):

 

	
  The Aggregate Earnings

  	
   

  	
  Earnout Payments

  	
   

  
	
  If and when the Aggregate Earnings reach
  $3,000,000

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  If and when the Aggregate Earnings reach
  $3,500,000

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  If and when the Aggregate Earnings reach
  $4,000,000

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  If and when the Aggregate Earnings reach
  $4,500,000

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  If and when the Aggregate Earnings reach
  $5,000,000

  	
   

  	
  $

  	
  100,000

  	
   

  

 

The Earnout payments shall be paid within ten (10) days following
the receipt by THK from THK’s independent certified public accountants of
audited or reviewed Earnings for each full calendar quarter during the Earnout
Period. THK will use its best efforts to ensure that THK’s independent public
accountants deliver the audited or reviewed Earnings as soon as possible, but
in any event such Earnings will be delivered no later than two (2) business
days after the applicable document reflecting such Earnings is filed with the
SEC with respect to each full calendar quarter during the Earnout Period.  For purposes of calculating the Earnings, all
compensation paid to any employee of RESO Surviving Corporation by any
Affiliate of THK shall be treated as a compensation expense of RESO Surviving
Corporation.

 

35

 

ARTICLE IX

 

INDEMNIFICATION

 

9.1                                 Survival of Representations and
Warranties.  The
representations and warranties contained in this Agreement shall survive until
the expiration of the applicable statute of limitations.

 

9.2                                 Indemnification.

 

(a)                          Subject
to (c) below, the Shareholder agrees to indemnify and hold harmless THK and
RESO Surviving Corporation, and each of their respective successors and
assigns, together with all of their officers, directors, employees or agents (collectively,
the “THK Indemnified Parties”) from and against any and all losses,
damages, liabilities, obligations, costs or expenses (any one such item being
herein called a “Loss” and all such items being herein collectively
called “Losses”) which are caused by or arise out of (1) any
default in the performance by RESO or the Shareholder of any obligation contained
in or contemplated by this Agreement, or (2) any material breach by RESO
or the Shareholder of a representation or warranty contained in this Agreement,
including any schedule delivered to THK or RESO Merger Sub pursuant hereto
or in any certificate or other instrument delivered by or on behalf of the Shareholder
or RESO pursuant hereto. Without
limiting the generality of the immediately preceding sentence, the Shareholder
agrees to fully indemnify and hold harmless the THK Indemnified Parties from
and against all Claims of Any Nature regarding RESO created or incurred prior
to the Closing other than the Approved Liabilities (“Unapproved Liabilities”)
until the applicable statutes of limitations expire in regard to such
liabilities if such aggregate Unapproved Liabilities exceed Fifty Thousand
Dollars ($50,000).  If the Shareholder
incurs any liability to any THK Indemnified Party pursuant to this Section 9.2,
then THK shall be permitted to apply and offset, dollar-for-dollar, the amount
of such liability against the Earnout payments.

 

(b)                         Subject
to (c) below, THK agrees to indemnify and hold harmless the Shareholder and
his respective successors and assigns, from and against any and all Losses
which are caused by or arise out of (1) any default in the performance by THK
or RESO Merger Sub of any obligation of THK or RESO Merger Sub contained in, or
contemplated by, this Agreement, or (2) any material breach of a
representation and warranty made by THK or RESO Merger Sub, including any schedule delivered
by or on behalf of THK or RESO Merger Sub pursuant hereto or in any certificate
or other instrument delivered by or on behalf of THK or RESO Merger Sub
pursuant hereto; provided, however, that the limitation in (c) below shall
not diminish THK’s obligation to deliver the Merger Consideration or any other
consideration otherwise payable to the Shareholder by THK or RESO Surviving
Corporation.

 

(c)                          No
amount of Loss or Losses shall be payable by any indemnifying party pursuant to
Section 9.2(a), in the case of RESO or the Shareholder, or Section 9.2(b),
in the case of THK, unless the aggregate amount of the Loss or Losses that are
indemnifiable exceeds $50,000.  Except as
otherwise provided in Section 10.1(c), in no event shall the
aggregate liability of RESO or the Shareholder under Section 9.2(a) exceed
$4,000,000.

 

(d)                         If an
indemnified party recovers a Loss or Losses from an indemnifying party
hereunder, the indemnifying party shall be subrogated, to the extent of the
recovery, to the indemnified party’s rights against any third party, other than
a third party with whom the indemnified party has a material business agreement
or arrangement,

 

36

 

with respect to the Loss or Losses
subject to the subrogation rights of any insurer providing insurance coverage
under one of the indemnified party’s policies and except to the extent that the
grant of subrogation rights to the indemnifying party is prohibited by the
terms of the applicable insurance policy.

 

(e)                          The
amount of any loss or losses owed to any indemnified party hereunder shall be
net of any insurance, indemnity, contribution or other payments or recoveries
of a like nature with respect thereto actually recovered (it being agreed that,
promptly after the realization of any such reductions in the Loss or Losses
pursuant hereto, such party shall reimburse the indemnifying party for the
reduction for which the party was indemnified prior to the realization of the
reduction).

 

(f)                            Each
party hereby acknowledges and agrees that, from and after the Closing and
except for claims seeking equitable relief, its sole remedy relating to the
Merger, or the other transactions contemplated by this Agreement shall be
pursuant to the indemnification provisions of this Article IX.  In furtherance of the foregoing, each party
hereby waives, to the fullest extent permitted by applicable law, any and all
other rights, claims, and causes of action it may have against the other
parties or their respective representatives and affiliates relating to the
Merger or the other transactions contemplated by this Agreement, other than
claims seeking equitable relief or for or in the nature of fraud.

 

(g)                         Any
indemnified party seeking indemnification hereunder shall give to the indemnifying
party a notice describing in reasonable detail the facts giving rise to the
claim for indemnity, an estimate of the Loss including reasonable detail on the
assumptions used to calculate the Loss and a summary of the relevant provisions
of any agreement, document or instrument executed pursuant hereto or in
connection herewith upon which the claim is based.  After the giving of any notice pursuant
hereto, the amount of indemnification to which an indemnified party shall be
entitled under this Article IX shall be determined by the written
agreement between the indemnified party and the indemnifying party or by a
final judgment or decree of any Court of competent jurisdiction.

 

9.3                                 Third Party Claim.  If any third person asserts a claim against
an indemnified party hereunder that, if successful, might result in a claim for
indemnification against any indemnifying party hereunder, the indemnifying
party shall be given prompt written notice thereof and shall have the right (a) to
participate in the defense thereof and be represented, at his or its own
expense, by advisory counsel selected by him or it, and (b) to approve any
settlement if the indemnifying party is, or will be, required to pay any
amounts in connection therewith. 
Notwithstanding the foregoing, if within ten Business Days after
delivery of the indemnified party’s notice described above, the indemnifying
party indicates in writing to the indemnified party that, as between the
parties, the claims shall be fully indemnified for by the indemnifying party as
provided herein, then the indemnifying party shall have the right to control
the defense of the claim, provided that the indemnified party shall have the
right (1) to participate in the defense thereof and be represented, at his
or its own expense, by advisory counsel selected by him or it, and (2) to
approve any settlement if the indemnified party’s interests are, or would be,
affected thereby, which approval shall not be unreasonably withheld,
conditioned or delayed.

 

37

 

ARTICLE X

 

TAX MATTERS

 

10.1                           Tax Returns.

 

(a)                          Subject
to Section 10.1(c), the Shareholder shall prepare and file or cause
to be filed when due (taking into account all extensions properly obtained) all
Tax Returns that are required to be filed by or with respect to RESO for
taxable years or periods ending on or before the Closing Date, and the Shareholder
shall remit or cause to be remitted any Taxes due in respect of such Tax
Returns, and THK shall prepare and file or cause to be filed when due (taking
into account all extensions properly obtained) all Tax Returns that are
required to be filed by or with respect to the RESO Surviving Corporation for
taxable years or periods ending after the Closing Date and THK shall remit or
cause to be remitted any Taxes due in respect of such Tax Returns.  The Tax Returns for any taxable years or
periods ending on or before the Closing Date shall not be amended without the
prior written consent of the Shareholder.

 

(b)                         From and
after the Closing, the Shareholder shall indemnify THK, pursuant to the terms
of Article IX, for all (1) Taxes imposed on RESO for any
taxable year or period, or portion thereof, that ends on or before the Closing
Date and (2) Taxes of any Person (other than RESO) imposed on RESO as a
transferee or successor, by contract or pursuant to any requirement of laws,
which Taxes relate to an event or transaction occurring before the Closing
Date.  In the case of any taxable period
that includes (but does not end on) the Closing Date (a “Straddle Period”),
the Taxes of RESO (or Taxes for which RESO is liable) for the portion of the
period ending on the Closing Date (for which the Shareholder is liable) shall
be determined based on an interim closing of the books as of the close of
business on the Closing Date (and for such purpose, the taxable period of any
partnership or other pass-through entity in which RESO holds a beneficial
interest shall be deemed to terminate at such time), except that the amount of
any such Taxes that are imposed on a periodic basis and are not based on or
measured by income or receipts shall be determined by reference to the
percentage that the number of days in the portion of such period ending on the
Closing Date bears to the total number of days in such period beginning after
the Closing Date.  The limitations on
indemnity contained in Section 9.1(c) shall not apply to the
obligations set forth in this Section 10.1(b).

 

(c)                          Notwithstanding
anything herein to the contrary, the Shareholder shall be liable for and shall
pay, and pursuant to Article IX shall indemnify THK and the RESO
Surviving Corporation against, any real property transfer or gains Tax, sales
Tax, use Tax, stamp Tax, stock transfer Tax, or other similar Tax imposed on
the transactions contemplated by this Agreement, other than to the extent that any
such Taxes are caused solely by any action or inaction of THK, RESO Merger Sub
or RESO Surviving Corporation.  The
limitations on indemnity contained in Section 9.2(c) shall not
apply to the obligations set forth in this Section 10.1(c).

 

(d)                         THK shall
promptly cause the RESO Surviving Corporation to prepare and provide to the Shareholder
a package of Tax information materials, including, without limitation,
schedules and work papers (the “Tax Package”) required by the Shareholder
to enable the Shareholder to prepare and file all Tax Returns required to be

 

38

 

prepared and filed by the Shareholder
pursuant to Section 10.1(a). 
The Tax Package shall be completed in accordance with past practice,
including past practice as to providing such information and as to the method
of computation of separate taxable income or other relevant measure of income
of RESO.  THK and the RESO Surviving
Corporation shall cause the Tax Package to be delivered to the Shareholder as
soon as practicable after the Closing Date.

 

10.2                           Contest Provisions.

 

(a)                          THK shall
promptly notify the Shareholder in writing upon receipt by THK, the RESO
Surviving Corporation or any of their respective Affiliates of notice of any
pending or threatened federal, state, local or foreign Tax audits, examinations
or assessments which might affect the Tax liabilities for which the Shareholder
may be liable pursuant to Section 10.1 and Article IX.

 

(b)                         The Shareholder
shall have the right to represent RESO’s interests in any Tax audit or
administrative or court proceeding relating to taxable periods ending on or
before the Closing Date, and to employ counsel of his choice at its expense; provided,
however, that the Shareholder shall have no right to represent RESO’s
interests in any Tax audit or administrative or court proceeding unless the Shareholder
shall have first notified THK in writing of the Shareholder’s intention to do
so and shall have agreed with THK in writing that, as between THK and the Shareholder,
the Shareholder shall be liable for any Taxes that result from any audit or
proceeding.  RESO Surviving Corporation
and its representatives shall have the right to fully participate at their
expense in any audit or proceeding and to consent to any settlement which
affects a Tax period or Straddle Period ending after the Closing Date.  THK shall have the sole right to defend RESO
with respect to any issue arising with respect to any Tax audit or administrative
or court proceeding relating to taxable periods ending on or before the Closing
Date to the extent THK shall have agreed in writing to forego any
indemnification under this Agreement with respect to the issue. Notwithstanding
the foregoing, the Shareholder shall not be entitled to settle, either
administratively or after the commencement of litigation, any claim for Taxes
which could adversely affect the liability for Taxes of THK, RESO Surviving
Corporation or any Affiliate thereof for any period after the Closing Date to
any extent (including, but not limited to, the imposition of income Tax
deficiencies, the reduction of asset basis or cost adjustments, the lengthening
of any amortization or depreciation periods, the denial of amortization or depreciation
deductions, or the reduction of loss or credit carryforwards) without the prior
written consent of THK, which consent may be withheld in the sole discretion of
THK unless the Shareholder has indemnified THK in a manner acceptable to THK against
the effects of any such settlement.

 

10.3                           Assistance and Cooperation.  After the Closing Date, the Shareholder and THK
shall (and cause their respective Affiliates to):

 

(a)                          assist
the other party in preparing any Tax Returns which such other party is responsible
for preparing and filing in accordance with Section 10.1;

 

(b)                         cooperate
fully in preparing for any audits of, or disputes with taxing authorities
regarding, any Tax Returns of RESO;

 

39

 

(c)                          make
available to the other and to any taxing authority as reasonably requested all
information, records, and documents relating to Taxes of RESO;

 

(d)                         provide
timely notice to the other in writing of any pending or threatened Tax audits
or assessments of RESO for taxable periods for which the other may have a
liability under this Article X;

 

(e)                          furnish
the other with copies of all correspondence received from any taxing authority
in connection with any Tax audit or information request with respect to any
such taxable period;

 

(f)                            timely
sign and deliver such certificates or forms as may be necessary or appropriate
to establish an exemption from (or otherwise reduce), or file Tax Returns or
other reports with respect to, Taxes relating to sales, transfer and similar
Taxes;

 

(g)                         timely
provide to the other powers of attorney or similar authorizations necessary to
carry out the purposes of this Article X;

 

(h)                         retain
all books and records with respect to Tax matters pertinent to RESO relating to
any taxable period beginning before the Closing Date until the expiration of
the statute of limitations (and, to the extent notified by the other party, any
extensions thereof) of the respective taxable periods, and to abide by all
record retention agreements entered into with any taxing authority; and

 

(i)                             give
the other party reasonable written notice prior to transferring, destroying or
discarding any such books and records and, if the other party so requests, allow
the other party to take possession of such books and records or obtain copies
of same.

 

10.4                           S Corporation. 
RESO shall not revoke its election to be taxed as an S Corporation
within the meaning of Code Sections 1361 and 1362 except as a result of the
Merger.  RESO and the Shareholder shall
not take or allow any action that would result in the termination of the RESO’s
status as a validly electing S Corporation within the meaning of Sections 1361
and 1362 of the Code except as a result of the Merger.

 

ARTICLE XI

 

WARRANTS

 

11.1                           Grant.  At the
Closing, the Shareholder shall be granted warrants to purchase shares of THK
Common Stock in accordance with the following terms and conditions:

 

	
  Number

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Of

  	
   

  	
  Exercise

  	
   

  	
  Vesting

  	
   

  	
  Expiration

  	
   

  	
   

  	
   

  
	
  Shares

  	
   

  	
  Price

  	
   

  	
  Date

  	
   

  	
  Date

  	
   

  	
  Conditions

  	
   

  
	
  20,000

  	
   

  	
  (1)

  	
   

  	
  1st anniversary of the Closing

  	
   

  	
  5th anniversary of the Closing

  	
   

  	
  (4), (5), (6)

  	
   

  
	
  20,000

  	
   

  	
  (2)

  	
   

  	
  2nd anniversary of the Closing

  	
   

  	
  6th anniversary of the Closing

  	
   

  	
  (4), (5), (6)

  	
   

  
	
  20,000

  	
   

  	
  (3)

  	
   

  	
  3rd anniversary of the Closing

  	
   

  	
  7th anniversary of the Closing

  	
   

  	
  (4), (5), (6)

  	
   

  

 

40

 

(1) Closing
price per share of THK Common Stock on the last trading day prior to the
Closing Date.

(2) Closing
price per share of THK Common Stock on the last trading day prior to the first
anniversary of the Closing Date.

(3) Closing
price per share of THK Common Stock on the last trading day prior to the second
anniversary of the Closing Date.

(4) Such
warrants shall be evidenced by the typical form of employee Warrant Agreement
used by THK (a form of which is attached hereto as Exhibit E), and
all terms and conditions of such form of Warrant Agreement shall apply to and
limit such warrants (for example, and without limiting the generality of the
foregoing: as in the case of all employee warrants granted by THK including
those issued or to be issued to Gerard M. Jacobs and S. Patrick Martin, the
number of shares covered by such warrants, and the strike price per share of
such warrants, shall be appropriately adjusted to reflect any and all stock
splits, stock dividends, and other corporate events following the date of
issuance of such warrants.)

(5) Such
warrants shall not become vested and therefore cannot be exercised until the
vesting date of such warrants, and such warrants shall terminate immediately in
the event that the Shareholder is not continuously employed by a subsidiary of
THK, for any reason, from the Closing Date until the vesting date of such
warrants.

(6) Such
warrants shall terminate if not exercised within thirty (30) days following the
Shareholder’s last day of employment by a subsidiary of THK.

 

11.2                           Warrant.  The form of warrant attached hereto as Exhibit E
is the same form as employee warrants that have been issued to all other
employees of THK or any Affiliate who have been issued warrants to acquire
shares of THK Common Stock. If during the term of the warrants granted
hereunder to the Shareholder employees of THK or any Affiliate are granted
warrants in the ordinary course of THK’s business containing provisions more
favorable to such employees than the comparable provisions contained in the
form of warrant attached hereto as Exhibit E, then in such event
the warrants granted to the Shareholder hereunder shall be deemed to be amended
to include such more favorable provisions.

 

ARTICLE XII

 

MISCELLANEOUS

 

12.1                           Notices.  All
notes or other communications required or permitted hereunder shall be in
writing and shall be deemed given or delivered (i) when delivered
personally or by commercial messenger, (ii) one Business Day following
deposit with a recognized overnight courier service, provided deposit occurs
prior to the deadline imposed by the service for overnight delivery, or (iii) when
transmitted, if sent by facsimile copy, provided confirmation of receipt is
received by sender and notice is sent by an additional method provided
hereunder, in each case above provided the communication is addressed to the
intended recipient thereof as set forth below:

 

	
  If to THK or RESO Merger Sub to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CGI Holding
  Corporation d/b/a

  
	
   

  	
  Think
  Partnership Inc.

  
	
   

  	
  5 Revere
  Drive

  
	
   

  	
  Suite 510

  
	
   

  	
  Northbrook,
  IL 60062

  
	
   

  	
  Attn:

  	
  Gerard M.
  Jacobs

  
	
   

  	
  Fax: 847-562-0178

  
	
   

  	
  email:
  gerry.jacobs@thinkpartnership.com

  

 

41

 

	
  With a copy to:

  	
  Barnett, Bolt, Kirkwood,
  Long & McBride

  
	
   

  	
  601 Bayshore Boulevard

  
	
   

  	
  Suite 700

  
	
   

  	
  Tampa, Florida 33606

  
	
   

  	
  Attn:

  	
  Craig E. Behrenfeld

  
	
   

  	
  Fax: 813-354-4509

  
	
   

  	
  email: ceb@barnettbolt.com

  
	
   

  	
   

  	
   

  
	
  If to the Shareholder or RESO:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Real Estate School Online
  Inc.

  
	
   

  	
  P.O. Box 630504

  
	
   

  	
  Miami, Florida 33163

  
	
   

  	
  Attn:

  	
  Perry Johannesburg

  
	
   

  	
  Fax: 

  	
   

  
	
   

  	
  email:

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
  Akerman Senterfitt

  
	
   

  	
  One Southeast Third Avenue

  
	
   

  	
  28th Floor

  
	
   

  	
  Miami, Florida 33131-1714

  
	
   

  	
  Attn:

  	
  J. Thomas Cookson

  
	
   

  	
  Fax: 305-374-5095

  
	
   

  	
  email:
  tom.cookson@akerman.com

  

 

12.2                           Entire Agreement.  This Agreement and the other Documents embody
the entire agreement and understanding among the Parties with respect to the
subject matter hereof and supersede all prior oral or written agreements and
understandings relating to the subject matter hereof.  No statement, representation, warranty,
covenant or agreement of any kind not expressly set forth in the Documents
shall affect, or be used to interpret, change or restrict, the express terms
and provisions of this Agreement.

 

12.3                           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors, heirs,
personal representatives, legal representatives, and permitted assigns.

 

12.4                           Assignment. 
Neither this Agreement, nor any right hereunder, may be assigned by any
of the Parties without the prior written consent of the other Parties.

 

12.5                           Modifications and Amendments.  The terms and provisions of this Agreement
may be modified or amended only by written agreement executed by all Parties
hereto.

 

12.6                           Waivers.  The
terms and provisions of this Agreement may be waived, or consent for the
departure therefrom granted, only by a written document executed by the Party
entitled to

 

42

 

the benefits of such terms or provisions. No waiver or consent shall be
deemed to be or shall constitute a waiver or consent with respect to any other
terms or provisions of this Agreement, whether or not similar. Each such waiver
or consent shall be effective only in the specific instance and for the purpose
for which it was given, and shall not constitute a continuing waiver or
consent.  No failure or delay by a Party
in exercising any right, power or remedy under this Agreement, and no course of
dealing between the Parties hereto, shall operate as a waiver of any right,
power or remedy of the Party. No single or partial exercise of any right, power
or remedy under this Agreement by a Party, nor any abandonment or
discontinuance of steps to enforce any right, power or remedy, shall preclude any
Party from any other or further exercise thereof or the exercise of any other
right, power or remedy hereunder. The election of any remedy by a Party shall
not constitute a waiver of the right of the Party to pursue other available
remedies.  No notice to or demand on a
Party not expressly required under this Agreement shall entitle the party
receiving such notice or demand to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the Party
giving notice or demand to any other or further action in any circumstances
without notice or demand.

 

12.7                           No Third Party Beneficiary.  Except as otherwise provided herein, nothing
expressed or implied in this Agreement is intended, or shall be construed, to
confer upon or give any Person other than the Parties and their respective
heirs, personal representatives, legal representatives, successors and
permitted assigns, any rights or remedies under or by reason of this Agreement.  Notwithstanding the foregoing, the
indemnified entities and persons referred to in Article IX are
expressly acknowledged to be third party beneficiaries of this Agreement.

 

12.8                           Severability. 
If any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any rule of law, or public policy, all
other conditions and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner adverse to any
party.  Upon determination that any term
or other provision is invalid, illegal or incapable of being enforced, the
Parties shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the Parties as closely as possible in an acceptable
manner to the end that transactions contemplated hereby are fulfilled to the
extent possible.

 

12.9                           Publicity.  Neither
RESO nor the Shareholder shall make, or cause to be made, any press release or
public announcement in respect of this Agreement or the transactions
contemplated hereby or otherwise communicate with any news media without the
prior written consent of THK, except as may be required by Law. Neither THK nor
RESO Surviving Corporation shall make, or cause to be made, any press release
or public announcement in respect of this Agreement or the transactions
contemplated hereby or otherwise communicate with any news media without the
prior written consent of the Shareholder, except as required by Law or the rules and
regulations of the American Stock Exchange pursuant to advice of THK’s
securities counsel.

 

12.10                     Governing Law. 
This Agreement and the rights and obligations of the parties hereunder
shall be construed in accordance with and governed by the internal laws of the
State of Illinois without giving effect to the conflict of law principles
thereof.

 

12.11                     Counterparts; Facsimile Signatures.  This Agreement may be executed in any number
of counterparts, either manually or via facsimile or electronic transmission of
signatures,

 

43

 

each of which shall be deemed an original but all of which together
shall constitute one and the same agreement.

 

12.12                     Headings.  The
descriptive headings contained in this Agreement are for convenience of
reference only and shall not affect in any way the meaning or interpretation of
this Agreement.

 

12.13                     Expenses.  Except
as otherwise specified in this Agreement, all costs and expenses, including,
without limitation, fees and disbursements of counsel, financial advisors and
accountants, incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the Party incurring the costs and
expenses, whether or not the Closing shall have occurred.

 

12.14                     Further Assurances.  At any time and from time to time after the
Closing Date each Party shall execute and deliver such other instruments of
sale, transfer, conveyance, assignment and confirmation as may be reasonably
requested in order to more effectively carry forth the terms and conditions of
this Agreement and the Documents.

 

12.15                     Arbitration. 
Any controversy, dispute or claim arising out of or in connection with
this Agreement shall be settled by final and binding arbitration to be conducted
by an arbitration tribunal in Chicago, Illinois, pursuant to the rules of
the American Arbitration Association. 
The arbitration tribunal shall consist of one arbitrator.  If the parties cannot agree on the
arbitrator, the office of the American Arbitration Association in Chicago,
Illinois shall make the necessary appointment. 
The decision or award of the arbitrator shall be final, and judgment
upon such decision or award may be entered in any competent court or application
may be made to any competent court for judicial acceptance of such decision or
award and an order of enforcement.  In
the event of any procedural matter not covered by the aforesaid rules, the
procedural law of the State of Illinois shall govern. Notwithstanding the
agreement to arbitrate contained in this Section 12.15, any party
may apply to any court having jurisdiction to enforce this Agreement to seek
provisional injunctive relief so as to maintain the status quo until the
arbitration award is rendered or the dispute is otherwise resolved.

 

12.16                     Incorporation by Reference.  Each Exhibit and Schedule to
this Agreement is hereby incorporated into this Agreement by reference thereto,
with the same legally binding force and effect as if such Exhibit or
Schedule were fully set forth herein.

 

44

 

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

 

	
   

  	
  CGI HOLDING
  CORPORATION, d/b/a THINK

  PARTNERSHIP INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven
  P. Martin

  	
   

  
	
   

  	
  Name:

  	
  Steven P.
  Martin

  	
   

  
	
   

  	
  Title:

  	
  Vice
  Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RESO MERGER
  SUB, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott
  Mitchell

  	
   

  
	
   

  	
  Name:

  	
  Scott
  Mitchell

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  REAL ESTATE
  SCHOOL ONLINE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Perry
  Johannesburg

  	
   

  
	
   

  	
  Name:

  	
  Perry
  Johannesburg

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Perry
  Johannesburg

  
	
   

  	
  PERRY
  JOHANNESBURG

  

 

45

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]