Document:

Exhibit 4.1     

RIDGESTONE FINANCIAL
SERVICES, INC.  

and  

CONTINENTAL STOCK
TRANSFER & TRUST COMPANY  

Rights Agent  

 

RIGHTS AGREEMENT  

Dated as of February
10, 2005  

TABLE OF CONTENTS 

	 	  	
		  	
	
Section 1 	Certain Definitions  	1 
	
Section 2 	Appointment of Rights Agent  	3 
	
Section 3 	Issue of Right Certificates  	4 
	
Section 4 	Form of Right Certificates  	5 
	
Section 5 	Countersignature and Registration  	5 
	
Section 6 	Transfer, Split Up, Combination and Exchange of Right Certificates;  
	 	Mutilated, Destroyed, Lost or Stolen Right Certificates  	6 
	
Section 7 	Exercise of Rights; Purchase Price; Expiration Date of Rights  	6 
	
Section 8 	Cancellation and Destruction of Right Certificates  	7 
	
Section 9 	Reservation and Availability of Preferred Shares  	7 
	
Section 10 	Preferred Shares Record Date  	8 
	
Section 11 	Adjustment of Purchase Price, Number of Shares or Number of Rights  	8 
	
Section 12 	Certificate of Adjusted Purchase Price or Number of Shares  	14 
	
Section 13 	Consolidation, Merger, Share Exchange or Sale or Transfer of Assets or Earning Power  	14 
	
Section 14 	Fractional Rights and Fractional Shares  	16 
	
Section 15 	Rights of Action  	17 
	
Section 16 	Agreement of Right Holders  	17 
	
Section 17 	Right Certificate Holder Not Deemed a Shareholder  	18 
	
Section 18 	Concerning the Rights Agent  	18 
	
Section 19 	Merger or Consolidation or Change of Name of Rights Agent  	19 
	
Section 20 	Duties of Rights Agent  	19 
	
Section 21 	Change of Rights Agent  	20 
	
Section 22 	Issuance of New Right Certificates  	21 
	
Section 23 	Redemption  	21 

i 

	 	  	
	 	  	
	
Section 24 	Exchange  	22 
	
Section 25 	Notice of Certain Events  	23 
	
Section 26 	Notices  	23 
	
Section 27 	Supplements and Amendments  	24 
	
Section 28 	Successors  	24 
	
Section 29 	Benefits of this Agreement  	24 
	
Section 30 	Severability  	25 
	
Section 31 	Governing Law  	25 
	
Section 32 	Counterparts  	25 
	
Section 33 	Descriptive Headings  	25 
	
Section 34 	Determinations and Actions by the Board of Directors  	25 

	
Exhibit
A - Terms of Series A Junior Participating Preferred Stock 

	
Exhibit
B - Form of Right Certificate 

	
Exhibit
C - Summary of Rights to Purchase Preferred Shares 

ii 

RIGHTS AGREEMENT 

        THIS
AGREEMENT, dated as of February 10, 2005, between RIDGESTONE FINANCIAL SERVICES,
INC., a Wisconsin corporation (the “Company”), and CONTINENTAL STOCK
TRANSFER & TRUST COMPANY, a New York corporation (the “Rights Agent”).  

        WHEREAS,the
Board of Directors of the Company has authorized and declared a dividend of one preferred
share purchase right (a “Right”) for each Common Share (as such term is
hereinafter defined) of the Company outstanding upon the close of business on February
21, 2005 (the “Record Date”) payable on February 21, 2005 (the “Payment
Date”), and has authorized and directed the issuance of one Right with respect to
each Common Share that shall become outstanding between the Record Date and the earliest
of the Distribution Date, the Redemption Date and the Final Expiration Date (as such
terms are hereinafter defined), each Right representing the right to purchase one
one-hundredth of a Preferred Share (as hereinafter defined) of the Company upon the terms
and subject to the conditions hereinafter set forth.  

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein set
forth, the parties hereby agree as follows:  

        Section
1.    Certain Definitions.  For purposes of this Agreement, the following terms
have the meanings indicated:  

        (a)    “Acquiring
Person” shall mean any Person (as such term is hereinafter           defined) who or
which, together with all Affiliates and Associates (as such           terms are
hereinafter defined) of such Person, shall be the Beneficial Owner (as           such
term is hereinafter defined) of 10% or more of the Common Shares of the           Company
then outstanding, but shall not include the Company, any Subsidiary (as           such
term is hereinafter defined) of the Company, any employee benefit plan of           the
Company or any Subsidiary of the Company, any entity holding Common Shares           for
or pursuant to the terms of any such plan, or any trustee, administrator or
          fiduciary of such a plan, or any Exempt Person (as such term is hereinafter
          defined). Notwithstanding the foregoing,  

	 	         (i)    no
Person who, at the close of business on the date hereof, shall be the
          Beneficial Owner of 10% or more of the Common Shares of the Company then
          outstanding shall be deemed an “Acquiring Person”; provided, however,
          that if a Person is, at the close of business on the date hereof, the
Beneficial           Owner of 10% or more of the Common Shares of the Company then
outstanding and           shall thereafter become the Beneficial Owner of additional
Common Shares of the           Company at any time that the person is or thereby becomes
the Beneficial Owner           of 10% or more of the Common Shares of the Company then
outstanding (other than           Common Shares acquired solely as a result of corporate
action of the Company not           caused, directly or indirectly, by such Person), then
such Person shall be           deemed to be an “Acquiring Person”; and  

	 	         (ii)           no
Person shall become an “Acquiring Person” as a result of an
          acquisition of Common Shares by the Company which, by reducing the number of
          shares outstanding, increases the proportionate number of shares beneficially
          owned by such Person to 10% or more of the Common Shares of the Company then
          outstanding; provided, however, that if a Person would, but for the
          foregoing, become an Acquiring Person by reason of share purchases by the
          Company and shall, after such share purchases by the Company, become the
          Beneficial Owner of any additional Common Shares of the Company at any time
that           the Person is or thereby becomes the Beneficial Owner of 10% or more of
the           Common Shares of the Company then outstanding (other than Common Shares
acquired           solely as a result of corporate action of the Company not caused,
directly or           indirectly, by such Person), then such Person shall be deemed to be
an           “Acquiring Person”.  

        Notwithstanding
the foregoing, if the Board of Directors of the Company determines in good faith that a
Person who would otherwise be an “Acquiring Person”, as defined pursuant to the
foregoing provisions of this paragraph (a), has become such inadvertently, and such
Person divests as promptly as practicable a sufficient number of Common Shares so that
such Person would no longer be an “Acquiring Person,” as defined pursuant to
the foregoing provisions of this paragraph (a), then such Person shall not be deemed
to be an “Acquiring Person” for any purposes of this Agreement.  

        (b)    “Affiliate” and
“Associate” shall have the respective           meanings ascribed to such terms
in Rule 12b-2 of the General Rules and           Regulations under the Securities
Exchange Act of 1934, as amended (the           “Exchange Act”), as in effect
on the date of this Agreement.  

        (c)    A
Person shall be deemed the “Beneficial Owner” of and shall be deemed
          to “beneficially own” any securities:  

	 	         (i)    which
such Person or any of such Person’s Affiliates or Associates           beneficially
owns, directly or indirectly;  

	 	         (ii)    which
such Person or any of such Person’s Affiliates or Associates has (A)           the
right to acquire (whether such right is exercisable immediately or only           after
the passage of time) pursuant to any agreement, arrangement or           understanding
(other than customary agreements with and between underwriters and           selling
group members with respect to a bona fide public offering of           securities), or
upon the exercise of conversion rights, exchange rights, rights           (other than
these Rights), warrants or options, or otherwise; provided,           however, that
a Person shall not be deemed the Beneficial Owner of, or to           beneficially own,
securities tendered pursuant to a tender or exchange offer           made by or on behalf
of such Person or any of such Person’s Affiliates or           Associates until such
tendered securities are accepted for purchase or exchange;           or (B) the right to
vote pursuant to any agreement, arrangement or           understanding; provided,
however, that a Person shall not be deemed the           Beneficial Owner of, or to
beneficially own, any security if the agreement,           arrangement or understanding
to vote such security (1) arises solely from a           revocable proxy or consent given
to such Person in response to a public proxy or           consent solicitation made
pursuant to, and in accordance with, the applicable           rules and regulations of
the Exchange Act and (2) is not also then reportable on           Schedule 13D under
the Exchange Act (or any comparable or successor           report); or  

	 	         (iii)     which
are beneficially owned, directly or indirectly, by any other Person with           which
such Person or any of such Person’s Affiliates or Associates has any
          agreement, arrangement or understanding (other than customary agreements with
          and between underwriters and selling group members with respect to a bona fide
          public offering of securities) for the purpose of, or with respect to,
          acquiring, holding, voting (except to the extent contemplated by the proviso to
          Section 1(c)(ii)(B)) or disposing of any securities of the Company.  

        Notwithstanding
anything in this definition of Beneficial Ownership to the contrary, the phrase “then
outstanding,” when used with reference to a Person’s Beneficial Ownership of
securities of the Company, shall mean the number of such securities then issued and
outstanding together with the number of such securities not then actually issued and
outstanding which such Person would be deemed to own beneficially hereunder.  

2 

        (d)    “Business
Day” shall mean any day other than a Saturday, a Sunday or a           day on which
banking institutions in the State of New York are authorized or           obligated by
law or executive order to close.  

        (e)    “Close
of business” on any given date shall mean 5:00 P.M., Milwaukee, Wisconsin time, on such date; provided, however, that if such date is not           a
Business Day it shall mean 5:00 P.M., Milwaukee, Wisconsin time, on the next
          succeeding Business Day.  

        (f)    “Common
Shares” when used with reference to the Company shall mean the           shares of
common stock, no par value, of the Company, or shares having           equivalent rights,
privileges and preferences to common stock. “Common           Shares” when used
with reference to any Person other than the Company shall           mean the capital
stock (or equivalent equity interest) with the greatest voting           power of such
other Person or, if such other Person is a Subsidiary of another           Person, the
Person or Persons that ultimately control such first-mentioned           Person.  

        (g)    “Distribution
Date” shall have the meaning set forth in           Section 3(a) hereof.  

        (h)    “Exempt
Person” shall mean (i) Paul E. Menzel (“Menzel”);           (ii) Christine
V. Lake (“Lake”); (iii) any transferee to which Menzel           or Lake may
lawfully transfer shares of Common Stock, including, without           limitation, their
respective heirs and beneficiaries; and (iv) any trustee,           guardian, custodian,
executor, administrator, fiduciary or other legal           representative of the Persons
identified in clauses (i), (ii) and (iii) above or           the estates of either or
both of Menzel or Lake, in their capacity as such.  

        (i)    “Final
Expiration Date” shall have the meaning set forth in           Section 7
hereof.  

        (j)    “Person” shall
mean any individual, firm, corporation or other entity,           and shall include any
successor (by merger or otherwise) of such entity.  

        (k)    “Preferred
Shares” shall mean shares of Series A Junior Participating           Preferred
Stock, no par value, of the Company having the preferences and rights           set forth
in Exhibit A attached to this Agreement.  

        (l)    “Redemption
Date” shall have the meaning set forth in Section 7           hereof.  

        (m)    “Shares
Acquisition Date” shall mean the first date of public           announcement (which,
for purposes of this definition, shall include, without           limitation, a report
filed or amended pursuant to Section 13(d) under the           Exchange Act) by the
Company or an Acquiring Person that an Acquiring Person has           become such.  

        (n)    “Subsidiary” of
any Person shall mean any corporation or other entity           of which a majority of
the voting power of the voting equity securities or           equity interest is owned,
directly or indirectly, by such Person.  

        Section
2.    Appointment of Rights Agent.  The Company hereby
appoints the Rights Agent to act as agent for the Company and the holders of the Rights
(who, in accordance with Section 3 hereof, shall prior to the Distribution Date also
be the holders of the Common Shares of the Company) in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such co-Rights Agents as it may deem necessary or desirable.  

3 

        Section
3.    Issue of Right Certificates.    

        (a)     Until
          the earlier of (i) the tenth day after the Shares Acquisition Date or (ii) the
          tenth Business Day (or such later date as may be determined by action of the
          Company’s Board of Directors prior to such time as any Person becomes an
          Acquiring Person) after the date of the commencement of, or of the first public
          announcement of the intention of any Person to commence, a tender or exchange
          offer the consummation of which would result in any Person (other than the
          Company, any Subsidiary of the Company, any employee benefit plan of the
Company           or of any Subsidiary of the Company, any entity holding Common Shares
for or           pursuant to the terms of any such plan, or any trustee, administrator,
or           fiduciary of such a plan, or any Exempt Person) becoming the Beneficial
Owner of           Common Shares of the Company aggregating 10% or more of the then
outstanding           Common Shares (including in either case any such date which is
after the date of           this Agreement and prior to the Payment Date; the earlier of
such dates being           herein referred to as the “Distribution Date”; provided,
          however, that if the tenth day or Business Day, as the case may be, after
          the pertinent date occurs before the Record Date, “Distribution Date”          shall
mean the Record Date), (x) the Rights will be evidenced (subject to           the
provisions of Section 3(b) hereof) by the certificates for Common           Shares
of the Company registered in the names of the holders thereof (which
          certificates shall also be deemed to be Right Certificates) and not by separate
          Right Certificates, and (y) the right to receive Right Certificates will be
          transferable only in connection with the transfer of Common Shares of the
          Company. As soon as practicable after the Distribution Date, the Company will
          prepare and execute, the Rights Agent will countersign, and the Company will
          send or cause to be sent (and the Rights Agent will, if requested, send) by
          first-class, insured, postage-prepaid mail, to each record holder of Common
          Shares of the Company as of the close of business on the Distribution Date, at
          the address of such holder shown on the records of the Company, a Right
          Certificate, in substantially the form of Exhibit B hereto (a “Right
          Certificate”), evidencing one Right for each Common Share of the Company
so           held. As of the Distribution Date, the Rights will be evidenced solely by
such           Right Certificates.  

        (b)    The
Company has prepared a Summary of Rights to Purchase Preferred Shares,           attached
as Exhibit C hereto (the “Summary of Rights”), a copy of           which is
available free of charge from the Company. With respect to certificates           for
Common Shares of the Company outstanding as of the Record Date, until the
          Distribution Date, the Rights will be evidenced by such certificates registered
          in the names of the holders thereof. Until the Distribution Date (or the
earlier           of the Redemption Date or Final Expiration Date), the surrender for
transfer of           any certificate for Common Shares of the Company outstanding on the
Record Date,           with or without a copy of the Summary of Rights attached thereto,
shall also           constitute the transfer of the Rights associated with the Common
Shares           represented thereby.  

        (c)    Certificates
for Common Shares of the Company that become outstanding           (including, without
limitation, certificates for reacquired Common Shares           referred to in the last
sentence of this paragraph (c) and certificates issued           on the transfer of
Common Shares) after the Record Date but prior to the           earliest of the
Distribution Date, the Redemption Date or the Final Expiration           Date shall have
impressed on, printed on, written on or otherwise affixed to           them a legend in
substantially the following form:  

	 	         This
certificate also evidences and entitles the holder hereof to certain rights as set forth
in a Rights Agreement between Ridgestone Financial Services, Inc. and Continental Stock
Transfer & Trust Company, dated as of February 10, 2005, and as such agreement may be
amended (the “Rights Agreement”), the terms of which are hereby incorporated
herein by reference and a copy of which is on file at the principal executive offices of
Ridgestone Financial Services, Inc. Under certain circumstances, as set forth in the
Rights Agreement, such Rights will be evidenced by separate certificates and will no
longer be evidenced by this certificate. Ridgestone Financial Services, Inc. will mail to
the holder of this certificate a copy of the Rights Agreement without charge after
receipt of a written request therefor. Under certain circumstances set forth in the
Rights Agreement, Rights issued to, or held by, an Acquiring Person or any Affiliate or
Associate thereof (as such terms are defined in the Rights Agreement), whether held by
such person or any subsequent holder, shall become null and void.  
	 

4 

With respect to such certificates
containing the foregoing legend, until the Distribution Date, the Rights associated with
the Common Shares represented by such certificates shall be evidenced by such
certificates alone, and the surrender for transfer of any such certificate shall also
constitute the transfer of the Rights associated with the Common Shares represented
thereby. In the event that the Company purchases or acquires any Common Shares after the
Record Date but prior to the Distribution Date, any Rights associated with such Common
Shares shall be deemed cancelled and retired so that the Company shall not be entitled to
exercise any Rights associated with the Common Shares which are no longer outstanding.  

        Section
4.    Form of Right Certificates.  The Right Certificates (and the
forms of election to purchase Preferred Shares and of assignment to be printed on the
reverse thereof) shall be substantially the same as Exhibit B hereto and may have such
marks of identification or designation and such legends, summaries or endorsements
printed thereon as the Company may deem appropriate and as are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any applicable law or
with any rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Rights may from time to time be listed, or to conform to
usage. Subject to the provisions of Section 22 hereof, the Right Certificates shall
entitle the holders thereof to purchase such number of one one-hundredths of a Preferred
Share as shall be set forth therein at the price per one one-hundredth of a Preferred
Share set forth therein (the “Purchase Price”), but the amount and type of
securities purchasable upon exercise of each Right and the Purchase Price shall be
subject to adjustment as provided herein.  

        Section
5.    Countersignature and Registration.  

        (a)    The
Right Certificates shall be executed on behalf of the Company by its           Chairman
of the Board, Chief Executive Officer or any Vice President either           manually or
by facsimile signature, shall have affixed thereto the           Company’s seal or a
facsimile thereof, and shall be attested by the           Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary of           the Company, either
manually or by facsimile signature. The Right Certificates           shall be manually
countersigned by the Rights Agent and shall not be valid for           any purpose unless
countersigned. In case any officer of the Company who shall           have signed any of
the Right Certificates shall cease to be such officer of the           Company before
countersignature by the Rights Agent and issuance and delivery by           the Company,
such Right Certificates, nevertheless, may be countersigned by the           Rights Agent
and issued and delivered by the Company with the same force and           effect as
though the individual who signed such Right Certificates had not           ceased to be
such officer of the Company; and any Right Certificate may be           signed on behalf
of the Company by any person who, at the actual date of the           execution of such
Right Certificate, shall be a proper officer of the Company to           sign such Right
Certificate, although at the date of the execution of this           Rights Agreement any
such individual was not such an officer.  

        (b)    Following
the Distribution Date, the Rights Agent will keep or cause to be kept,           at its
principal office, books for registration and transfer of the Right           Certificates
issued hereunder. Such books shall show the names and addresses of           the
respective holders of the Right Certificates, the number of Rights evidenced           on
its face by each of the Right Certificates and the date of each of the Right
          Certificates.  

5 

        Section
6.    Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates.  

        (a)    Subject
to the provisions of Section 14 hereof, at any time after the close           of
business on the Distribution Date, and at or prior to the close of business           on
the earlier of the Redemption Date or the Final Expiration Date, any Right
          Certificate or Right Certificates (other than Right Certificates representing
          Rights that have become void pursuant to Section 11(a)(ii) hereof or that
          have been exchanged pursuant to Section 24 hereof) may be transferred,
          split up, combined or exchanged for another Right Certificate or Right
          Certificates, entitling the registered holder to purchase a like number of one
          one-hundredths of a Preferred Share as the Right Certificate or Right
          Certificates surrendered then entitled such holder to purchase. Any registered
          holder desiring to transfer, split up, combine or exchange any Right
Certificate           or Right Certificates shall make such request in writing delivered
to the Rights           Agent, and shall surrender the Right Certificate or Right
Certificates to be           transferred, split up, combined or exchanged at the
principal office of the           Rights Agent. Thereupon the Rights Agent shall
countersign and deliver to the           person entitled thereto a Right Certificate or
Right Certificates, as the case           may be, as so requested. The Company may
require payment of a sum sufficient to           cover any tax or governmental charge
that may be imposed in connection with any           transfer, split up, combination or
exchange of Right Certificates.  

        (b)    Upon
receipt by the Company and the Rights Agent of evidence reasonably           satisfactory
to them of the loss, theft, destruction or mutilation of a Right           Certificate
and, in case of loss, theft or destruction, of indemnity or security           reasonably
satisfactory to them, and, at the Company’s request,           reimbursement to the
Company and the Rights Agent of all reasonable expenses           incidental thereto, and
upon surrender to the Rights Agent and cancellation of           the Right Certificate if
mutilated, the Company will make and deliver a new           Right Certificate of like
tenor to the Rights Agent for delivery to the           registered holder in lieu of the
Right Certificate so lost, stolen, destroyed or           mutilated.  

        Section
7.    Exercise of Rights; Purchase Price; Expiration Date of Rights.  

        (a)    The
registered holder of any Right Certificate may exercise the Rights evidenced
          thereby (except as otherwise provided herein) in whole or in part at any time
          after the Distribution Date upon surrender of the Right Certificate, with the
          form of election to purchase on the reverse side thereof duly executed, to the
          Rights Agent at the principal office of the Rights Agent, together with payment
          of the Purchase Price for each one one-hundredth of a Preferred Share as to
          which the Rights are exercised, at or prior to the earliest of (i) the close of
          business on February 21, 2015, subject to extension (the “Final Expiration
          Date”), (ii) the time at which the Rights are redeemed as provided in
          Section 23 hereof (the “Redemption Date”), and (iii) the time at
          which such Rights are exchanged as provided in Section 24 hereof.  

        (b)    The
Purchase Price for each one one-hundredth of a Preferred Share pursuant to           the
exercise of a Right shall initially be $40.00, shall be subject to           adjustment
from time to time as provided in Sections 11 and 13 hereof and           shall be
payable in lawful money of the United States of America or in Common           Shares of
the Company in accordance with paragraph (c) below.  

6 

        (c)    Upon
receipt of a Right Certificate representing exercisable Rights, with the           form
of election to purchase duly executed, accompanied by payment of the           Purchase
Price for the shares to be purchased and an amount equal to any           applicable
transfer tax required to be paid by the holder of such Right           Certificate in
accordance with Section 9 hereof, as set forth below, the           Rights Agent
shall thereupon promptly (i) (A) requisition from any transfer           agent of the
Preferred Shares certificates for the number of Preferred Shares to           be
purchased and the Company hereby irrevocably authorizes its transfer agent to
          comply with all such requests, or (B) requisition from the depositary agent
          depositary receipts representing such number of one one-hundredths of a
          Preferred Share as are to be purchased (in which case certificates for the
          Preferred Shares represented by such receipts shall be deposited by the
transfer           agent with the depositary agent), (ii) when appropriate,
requisition from           the Company the amount of cash to be paid in lieu of issuance
of fractional           shares in accordance with Section 14 hereof, (iii) after
receipt of such           certificates or depositary receipts, cause the same to be
delivered to or upon           the order of the registered holder of such Right
Certificate, registered in such           name or names as may be designated by such
holder and (iv) when appropriate,           after receipt, deliver such cash to or upon
the order of the registered holder           of such Right Certificate. The payment of
the Purchase Price (as such amount may           be reduced pursuant to Section 11(a)(iii)
hereof) shall be made by           certified check, cashier’s check, bank draft or
money order payable to the           order of the Company, except that, if so provided by
the Board of Directors of           the Company, the payment of the Purchase Price
following the occurrence of a           Section 11(a)(ii) Event (as hereinafter
defined) and until the first           occurrence of a Section 13 Event (as
hereinafter defined) may be made           wholly or in part by delivery of a certificate
or certificates (with appropriate           stock powers executed in blank attached
thereto) evidencing a number of Common           Shares of the Company equal to the then
Purchase Price divided by the closing           price (as determined pursuant to Section 11(d)
hereof) per Common Share on           the Trading Day (as such term is hereinafter
defined) immediately preceding the           date of such exercise. If the Company is
obligated to issue other securities of           the Company, pay cash and/or distribute
other property pursuant to           Section 11(a) hereof, the Company will make all
arrangements necessary so           that such other securities, cash and/or other
property are available for           distribution by the Rights Agent, if and when
appropriate.  

        (d)    In
case the registered holder of any Right Certificate shall exercise less than
          all the Rights evidenced thereby, a new Right Certificate evidencing Rights
          equivalent to the Rights remaining unexercised shall be issued by the Rights
          Agent to the registered holder of such Right Certificate or to his duly
          authorized assigns, subject to the provisions of Section 14 hereof.  

        (e)    Notwithstanding
anything in this Agreement to the contrary, neither the Rights           Agent nor the
Company shall be obligated to take any action with respect to a           registered
holder of a Right Certificate upon the occurrence of any purported           transfer,
assignment or exercise as set forth in this Section 7 unless such
          registered holder shall have (i) completed and signed the certificate following
          the form of assignment or election to purchase set forth on the reverse of the
          Right Certificate surrendered for such transfer, assignment or exercise, and
          (ii) provided such additional evidence of the identity of the Beneficial Owner
          (or former Beneficial Owner) or Affiliates or Associates thereof as the Company
          shall reasonably request.  

        Section
8.    Cancellation and Destruction of Right Certificates. All Right
Certificates surrendered for the purpose of exercise, transfer, split up, combination or
exchange shall, if surrendered to the Company or to any of its agents, be delivered to
the Rights Agent for cancellation or in cancelled form, or if surrendered to the Rights
Agent, shall be cancelled by it, and no Right Certificates shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this Rights Agreement.
The Company shall deliver to the Rights Agent for cancellation and retirement, and the
Rights Agent shall so cancel and retire, any other Right Certificate purchased or
acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall
deliver all cancelled Right Certificates to the Company or shall, at the written request
of the Company, destroy such cancelled Right Certificates, and in such case shall deliver
a certificate of destruction thereof to the Company.  

7 

        Section
9.    Reservation and Availability of Preferred Shares.  

        (a)    The
Company covenants and agrees that it will cause to be reserved and kept
          available out of its authorized and unissued Preferred Shares or any authorized
          and issued Preferred Shares held in its treasury the number of Preferred Shares
          that will be sufficient to permit the exercise in full of all outstanding
Rights           in accordance with Section 7.  

        (b)    So
long as the Preferred Shares issuable upon the exercise of Rights may be           listed
on any national securities exchange, the Company shall use its best           efforts to
cause, from and after such time as the Rights become exercisable, all           Preferred
Shares reserved for such issuance to be listed on such exchange upon           official
notice of issuance upon such exercise.  

        (c)    The
Company covenants and agrees that it will take all such action as may be
          necessary to ensure that all Preferred Shares delivered upon exercise of Rights
          shall, at the time of delivery of the certificates for such shares (subject to
          payment of the Purchase Price), be duly and validly authorized and issued and
          fully paid and nonassessable shares (except as otherwise provided by any
          corporation law applicable to the Company).  

        (d)    The
Company further covenants and agrees that it will pay when due and payable           any
and all federal and state transfer taxes and charges which may be payable in
          respect of the issuance or delivery of the Right Certificates or of any
          Preferred Shares upon the exercise of Rights. The Company shall not, however,
be           required to pay any transfer tax which may be payable in respect of any
transfer           or delivery of Right Certificates to a person other than, or the
issuance or           delivery of certificates for the Preferred Shares in a name other
than that of,           the registered holder of the Right Certificate evidencing Rights
surrendered for           exercise or to issue or to deliver any certificates for
Preferred Shares upon           the exercise of any Rights until any such tax shall have
been paid (any such tax           being payable by the holder of such Right Certificate
at the time of surrender)           or until it has been established to the Company’s
reasonable satisfaction           that no such tax is due.  

        Section
10.    Preferred Shares Record Date.  Each Person in whose name any
certificate for Preferred Shares is issued upon the exercise of Rights shall for all
purposes be deemed to have become the holder of record of the Preferred Shares
represented thereby on, and such certificate shall be dated, the date upon which the
Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase
Price (and any applicable transfer taxes) was made; provided, however, that if the
date of such surrender and payment is a date upon which the Preferred Shares transfer
books of the Company are closed, such Person shall be deemed to have become the record
holder of such shares on, and such certificate shall be dated, the next succeeding
Business Day on which the Preferred Shares transfer books of the Company are open.  

8 

        Section
11.    Adjustment of Purchase Price, Number of Shares or Number of Rights.  
The Purchase Price, the number of Preferred Shares covered by each Right and the number
of Rights outstanding are subject to adjustment from time to time as provided in this
Section 11.  

	 	
(a)    (i)    In
the event the Company shall at any time after the date of this Agreement           (A)
declare a dividend on the Preferred Shares payable in Preferred Shares, (B)
          subdivide the outstanding Preferred Shares, (C) combine the outstanding
          Preferred Shares into a smaller number of Preferred Shares or (D) issue any
          shares of its capital stock in a reclassification of the Preferred Shares
          (including any such reclassification in connection with a consolidation or
          merger in which the Company is the continuing or surviving corporation), except
          as otherwise provided in this Section 11(a), the Purchase Price in effect
          at the time of the record date for such dividend or of the effective date of
          such subdivision, combination or reclassification, and the number and kind of
          shares of capital stock issuable on such date, shall be proportionately
adjusted           so that the holder of any Right exercised after such time shall be
entitled to           receive the aggregate number and kind of shares of capital stock
which, if such           Right had been exercised immediately prior to such date and at a
time when the           Preferred Shares transfer books of the Company were open, such
holder would have           owned upon such exercise and been entitled to receive by
virtue of such           dividend, subdivision, combination or reclassification; provided,
          however, that in no event shall the consideration to be paid upon the
          exercise of one Right be less than the aggregate par value of the shares of
          capital stock of the Company issuable upon exercise of one Right. If an event
          occurs which would require an adjustment under both Section 11(a)(i) and
          Section 11(a)(ii), the adjustment provided for in this           Section 11(a)(i)
shall be in addition to, and shall be made prior to, any           adjustment required
pursuant to Section 11(a)(ii).  

	 	         (ii)     Subject
to Section 24 of this Agreement, in the event any Person shall                become
an Acquiring Person, other than pursuant to any transaction set forth in
               Section 13(a), each holder of a Right shall thereafter have a right
to                receive, upon exercise thereof at a price equal to the then current
Purchase                Price multiplied by the number of one one-hundredths of a
Preferred Share for                which a Right is then exercisable, in accordance with
the terms of this                Agreement and in lieu of Preferred Shares, such number
of Common Shares of the                Company as shall equal the result obtained by (x)
multiplying the then current                Purchase Price by the number of one
one-hundredths of a Preferred Share for                which a Right is then exercisable
and dividing that product by (y) 50% of the                then current per share market
price of the Common Shares of the Company                (determined pursuant to Section 11(d))
on the date the Person became an                Acquiring Person (such number of shares,
the “Adjustment Shares”).  

	 	         From
and after such time as a Person becomes an Acquiring Person (a “Section 11(a)(ii)
Event”), any Rights that are or were acquired or beneficially owned by such
Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be void
and any holder of such Rights shall thereafter have no right to exercise such Rights
under any provision of this Agreement. No Right Certificate shall be issued pursuant to
Section 3 that represents Rights beneficially owned by an Acquiring Person whose
Rights would be void pursuant to the preceding sentence or any Associate or Affiliate
thereof; no Right Certificate shall be issued at any time upon the transfer of any Rights
to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or
any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate
or Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an
Acquiring Person whose Rights would be void pursuant to the preceding sentence shall be
cancelled. The Company shall use all reasonable efforts to ensure that the provisions of
this paragraph are complied with, but shall have no liability to any holder of Right
Certificates or other Person as a result of its failure to make any determinations with
respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder.  

9 

	 	         (iii)    In
the event that there shall not be sufficient Common Shares of the Company
               issued but not outstanding or authorized but unissued (and not reserved
for                issuance for purposes other than upon exercise of the Rights) to
permit the                exercise in full of the Rights in accordance with the foregoing
subparagraph                (ii), the Company shall: (A) determine the excess of (1) the
value of the                Adjustment Shares issuable upon the exercise of a Right (the
“Current                Value”) over (2) the Purchase Price (such excess, the
“Spread”),                and (B) with respect to each Right, make adequate
provision to substitute for                the Adjustment Shares, upon payment of the
applicable Purchase Price, (1) cash,                (2) a reduction in the Purchase
Price, (3) equity securities of the Company                (including, without
limitation, one one-hundredth of a Preferred Share or                shares, or units of
shares, of preferred stock which the Board of Directors of                the Company has
deemed to have the same value as Common Shares of the Company                (such one
one-hundredth of a Preferred Share or shares of preferred stock,
               hereinafter referred to as “common stock equivalents”)), (4)
debt                securities of the Company, (5) other assets or (6) any combination of
the                foregoing, having an aggregate value equal to the Current Value, where
such                aggregate value has been determined by the Board of Directors of the
Company                based upon the advice of a nationally recognized investment
banking firm                selected by the Board of Directors of the Company; provided,
however, if                the Company shall not have made adequate provision to
substitute for the                Adjustment Shares pursuant to clause (B) above within
thirty (30) days following                the occurrence of a Section 11(a)(ii)
Event (the                “Section 11(a)(ii) Trigger Date”), then the
Company shall be                obligated to deliver, upon the surrender for exercise of
a Right and without                requiring payment of any portion of the Purchase
Price, Common Shares of the                Company (to the extent available) and then, if
necessary, cash, which shares                and/or cash have an aggregate value equal to
the Spread. If the Board of                Directors of the Company shall determine in
good faith that it is likely that                sufficient additional Common Shares of
the Company might be authorized for                issuance for exercise in full of the
Rights, the thirty (30) day period set                forth above may be extended to the
extent necessary, but not more than ninety                (90) days after the Section 11(a)(ii)
Trigger Date, in order that the                Company may seek shareholder approval for
the authorization of such additional                shares (such period, as it may be
extended, the “Substitution                Period”). To the extent that the
Company determines that some action need                be taken pursuant to the first
and/or second sentences of this                Section 11(a)(iii), the Company (x)
shall provide, subject to the last                paragraph of Section 11(a)(ii)
hereof, that such action shall apply                uniformly to all outstanding Rights,
and (y) may suspend the exercisability of                the Rights until the expiration
of the Substitution Period to seek any                authorization of additional shares
and/or to decide the appropriate form of                distribution to be made pursuant
to such first sentence and to determine the                value thereof. In the event of
any such suspension, the Company shall issue a                public announcement stating
that the exercisability of the Rights has been                temporarily suspended, as
well as a public announcement at such time as the                suspension is no longer
in effect. For purposes of this Section 11(a)(iii),                the value of the
Common Shares of the Company shall be the current per share                market price
(as determined pursuant to Section 11(d) hereof) of the Common                Shares
of the Company on the Section 11(a)(ii) Trigger Date and the value                of
any “common stock equivalent” shall be deemed to have the same
               value as the Common Shares of the Company on such date.  

        (b)    In
case the Company shall fix a record date for the issuance of rights, options           or
warrants to all holders of Preferred Shares entitling them (for a period
          expiring within 45 calendar days after such record date) to subscribe for or
          purchase Preferred Shares (or shares having the same rights, privileges and
          preferences as the Preferred Shares (“equivalent preferred shares”))
          or securities convertible into Preferred Shares at a price per Preferred Share
          or equivalent preferred share (or having a conversion price per share, if a
          security convertible into Preferred Shares or equivalent preferred shares) less
          than the then current per share market price of the Preferred Shares (as
defined           in Section 11(d)) on such record date, the Purchase Price to be in
effect           after such record date shall be determined by multiplying the Purchase
Price in           effect immediately prior to such record date by a fraction, the
numerator of           which shall be the number of Preferred Shares outstanding on such
record date           plus the number of Preferred Shares which the aggregate offering
price of the           total number of Preferred Shares and/or equivalent preferred
shares so to be           offered (and/or the aggregate initial conversion price of the
convertible           securities so to be offered) would purchase at such current market
price and the           denominator of which shall be the number of Preferred Shares
outstanding on such           record date plus the number of additional Preferred Shares
and/or equivalent           preferred shares to be offered for subscription or purchase
(or into which the           convertible securities so to be offered are initially
convertible); provided,           however, that in no event shall the
consideration to be paid upon the           exercise of one Right be less than the
aggregate par value of the shares of           capital stock of the Company issuable upon
exercise of one Right. In case such           subscription price may be paid in a
consideration part or all of which shall be           in a form other than cash, the
value of such consideration shall be as           determined in good faith by the Board
of Directors of the Company, whose           determination shall be described in a
statement filed with the Rights Agent.           Preferred Shares owned by or held for
the account of the Company shall not be           deemed outstanding for the purpose of
any such computation. Such adjustment           shall be made successively whenever such
a record date is fixed; and in the           event that such rights, options or warrants
are not so issued, the Purchase           Price shall be adjusted to be the Purchase
Price which would then be in effect           if such record date had not been fixed.  

10 

        (c)    In
case the Company shall fix a record date for the making of a distribution to
          all holders of the Preferred Shares (including any such distribution made in
          connection with a consolidation or merger in which the Company is the
continuing           or surviving corporation) of evidences of indebtedness or assets
(other than a           regular quarterly cash dividend or a dividend payable in
Preferred Shares) or           subscription rights or warrants (excluding those referred
to in           Section 11(b)), the Purchase Price to be in effect after such record
date           shall be determined by multiplying the Purchase Price in effect
immediately           prior to such record date by a fraction, the numerator of which
shall be the           then current per share market price of the Preferred Shares (as
defined in           Section 11(d)) on such record date, less the fair market value
(as           determined in good faith by the Board of Directors of the Company, whose
          determination shall be described in a statement filed with the Rights Agent) of
          the portion of the assets or evidences of indebtedness so to be distributed or
          of such subscription rights or warrants applicable to one Preferred Share and
          the denominator of which shall be such current per share market price of the
          Preferred Shares; provided, however, that in no event shall the
          consideration to be paid upon the exercise of one Right be less than the
          aggregate par value of the shares of capital stock of the Company to be issued
          upon exercise of one Right. Such adjustments shall be made successively
whenever           such a record date is fixed; and in the event that such distribution
is not so           made, the Purchase Price shall again be adjusted to be the Purchase
Price which           would then be in effect if such record date had not been fixed.  

        (d)    (i)    
For the purpose of any computation hereunder, the “current per share
          market price” of any security (a “Security” for the purpose of
          this Section 11(d)(i)) on any date shall be deemed to be the average of
the           daily closing prices per share of such Security for the 30 consecutive
Trading           Days (as such term is hereinafter defined) immediately prior to such
date; provided, however, that in the event that the current per share market
          price of the Security is determined during a period following the announcement
          by the issuer of such Security of (i) a dividend or distribution on such
          Security payable in shares of such Security or securities convertible into such
          shares, or (ii) any subdivision, combination or reclassification of such
          Security and prior to the expiration of 30 Trading Days after the ex-dividend
          date for such dividend or distribution, or the record date for such
subdivision,           combination or reclassification, then, and in each such case, the
current per           share market price shall be appropriately adjusted to reflect the
current market           price per share equivalent of such Security. The closing price
for each Trading           Day shall be the last sale price, regular way, or, in case no
such sale takes           place on such day, the average of the closing bid and asked
prices, regular way,           in either case as reported in the principal consolidated
transaction reporting           system with respect to securities listed or admitted to
trading on the New York           Stock Exchange or, if the Securities are not listed or
admitted to trading on           the New York Stock Exchange, as reported in the
principal consolidated           transaction reporting system with respect to securities
listed on the principal           national securities exchange on which the Security is
listed or admitted to           trading or, if the Security is not listed or admitted to
trading on any national           securities exchange, the last quoted price or, if not
so quoted, the average of           the high bid and low asked prices in the
over-the-counter market, as reported by           the National Association of Securities
Dealers, Inc. Automated Quotations System           (“Nasdaq”) or such other
system then in use, or, if on any such date           the Security is not quoted by any
such organization, the average of the closing           bid and asked prices as furnished
by a professional market maker making a market           in the Security selected by the
Board of Directors of the Company. The term           “Trading Day” shall mean
a day on which the principal national           securities exchange on which the Security
is listed or admitted to trading is           open for the transaction of business or, if
the Security is not listed or           admitted to trading on any national securities
exchange, a Business Day.  

11 

	 	         (ii)     For
the purpose of any computation hereunder, the “current per share market
          price” of the Preferred Shares shall be determined in accordance with the
          method set forth in Section 11(d)(i). If the Preferred Shares are not
          publicly traded, the “current per share market price” of the
Preferred           Shares shall be conclusively deemed to be the current per share
market price of           the Common Shares of the Company as determined pursuant to
Section 11(d)(i)           (appropriately adjusted to reflect any stock split, stock
dividend or similar           transaction occurring after the Record Date), multiplied by
100. If neither the           Common Shares of the Company nor the Preferred Shares are
publicly held or so           listed or traded, “current per share market price” shall
mean the fair           value per share as determined in good faith by the Board of
Directors of the           Company, whose determination shall be described in a statement
filed with the           Rights Agent.  

        (e)     No
adjustment in the Purchase Price shall be required unless such adjustment           would
require an increase or decrease of at least 1% in the Purchase Price; provided,
however, that any adjustments which by reason of this           Section 11(e)
are not required to be made shall be carried forward and           taken into account in
any subsequent adjustment. All calculations under this           Section 11 shall be
made to the nearest cent or to the nearest           one-hundredth of a share as the case
may be. Notwithstanding the first sentence           of this Section 11(e), any
adjustment required by this Section 11           shall be made no later than the
earlier of (i) three years from the date of the           transaction which requires such
adjustment or (ii) the date of the expiration of           the right to exercise any
Rights.  

        (f)     If,
as a result of an adjustment made pursuant to Section 11(a), the holder           of
any Right thereafter exercised shall become entitled to receive any shares of
          capital stock of the Company other than Preferred Shares, thereafter the number
          of such other shares so receivable upon exercise of any Right shall be subject
          to adjustment from time to time in a manner and on terms as nearly equivalent
as           practicable to the provisions with respect to the Preferred Shares contained
in           Section 11(a) through (c), inclusive, and the provisions of
          Sections 7, 9, 10 and 13 with respect to the Preferred Shares shall apply
          on like terms to any such other shares.  

        (g)    All
Rights originally issued by the Company subsequent to any adjustment made to
          the Purchase Price hereunder shall evidence the right to purchase, at the
          adjusted Purchase Price, the number of Preferred Shares purchasable from time
to           time hereunder upon exercise of the Rights, all subject to further
adjustment as           provided herein.  

        (h)    Unless
the Company shall have exercised its election as provided in           Section 11(i),
upon each adjustment of the Purchase Price as a result of           the calculations made
in Section 11(b) and (c), each Right outstanding           immediately prior to the
making of such adjustment shall thereafter evidence the           right to purchase, at
the adjusted Purchase Price, that number of Preferred           Shares (calculated to the
nearest one-hundredth of a Preferred Share) obtained           by (i) multiplying (x) the
number of one one-hundredth of a Preferred Share           covered by a Right immediately
prior to this adjustment by (y) the Purchase           Price in effect immediately prior
to such adjustment of the Purchase Price and           (ii) dividing the product so
obtained by the Purchase Price in effect           immediately after such adjustment of
the Purchase Price.  

12 

        (i)    The
Company may elect on or after the date of any adjustment of the Purchase           Price
to adjust the number of Rights, in substitution for any adjustment in the
          number of one one-hundredths of a Preferred Share purchasable upon the exercise
          of a Right. Each of the Rights outstanding after such adjustment of the number
          of Rights shall be exercisable for the number of one one-hundredths of a
          Preferred Share for which a Right was exercisable immediately prior to such
          adjustment. Each Right held of record prior to such adjustment of the number of
          Rights shall become that number of Rights (calculated to the nearest one
          one-hundredth) obtained by dividing the Purchase Price in effect immediately
          prior to adjustment of the Purchase Price by the Purchase Price in effect
          immediately after adjustment of the Purchase Price. The Company shall make a
          public announcement of its election to adjust the number of Rights, indicating
          the record date for the adjustment, and, if known at the time, the amount of
the           adjustment to be made. This record date may be the date on which the
Purchase           Price is adjusted or any day thereafter, but, if the Right
Certificates have           been issued, shall be at least 10 days later than the date of
the public           announcement. If Right Certificates have been issued, upon each
adjustment of           the number of Rights pursuant to this Section 11(i), the
Company shall, as           promptly as practicable, cause to be distributed to holders
of record of Right           Certificates on such record date Right Certificates
evidencing, subject to           Section 14 hereof, the additional Rights to which
such holders shall be           entitled as a result of such adjustment, or, at the
option of the Company, shall           cause to be distributed to such holders of record
in substitution and           replacement for the Right Certificates held by such holders
prior to the date of           adjustment, and upon surrender thereof, if required by the
Company, new Right           Certificates evidencing all the Rights to which such holders
shall be entitled           after such adjustment. Right Certificates so to be
distributed shall be issued,           executed and countersigned in the manner provided
for herein and shall be           registered in the names of the holders of record of
Right Certificates on the           record date specified in the public announcement.  

        (j)    Irrespective
of any adjustment or change in the Purchase Price or the number of           one
one-hundredths of a Preferred Share issuable upon the exercise of the           Rights,
the Right Certificates theretofore and thereafter issued may continue to
          express the Purchase Price and the number of one one-hundredths of a Preferred
          Share which were expressed in the initial Right Certificates issued hereunder.  

        (k)    Before
taking any action that would cause an adjustment reducing the Purchase           Price
below the par value, if any, of the Preferred Shares issuable upon           exercise of
the Rights, the Company shall take any corporate action which may,           in the
opinion of its counsel, be necessary in order that the Company may           validly and
legally issue fully paid and nonassessable (except as otherwise           provided by any
corporation law applicable to the Company) Preferred Shares at           such adjusted
Purchase Price.  

        (l)    In
any case in which this Section 11 shall require that an adjustment in           the
Purchase Price be made effective as of a record date for a specified event,           the
Company may elect to defer until the occurrence of such event the issuing to
          the holder of any Right exercised after such record date of the one
          one-hundredths of a Preferred Share and other capital stock or securities of
the           Company, if any, issuable upon such exercise over and above the number of
one           one-hundredths of a Preferred Share and other capital stock or securities
of the           Company, if any, issuable upon such exercise on the basis of the
Purchase Price           in effect prior to such adjustment; provided, however, that
the Company           shall deliver to such holder a due bill or other appropriate
instrument           evidencing such holder’s right to receive such additional
shares upon the           occurrence of the event requiring such adjustment.  

        (m)    Anything
in this Section 11 to the contrary notwithstanding, the Company           shall be
entitled to make such reductions in the Purchase Price, in addition to           those
adjustments expressly required by this Section 11, as and to the           extent
that it in its sole discretion shall determine to be advisable in order           that
any consolidation or subdivision of the Preferred Shares, issuance wholly           for
cash of any Preferred Shares at less than the current market price, issuance
          wholly for cash of Preferred Shares or securities which by their terms are
          convertible into or exchangeable for Preferred Shares, dividends on Preferred
          Shares payable in Preferred Shares or issuance of rights, options or warrants
          referred to in Section 11(b) hereof, hereafter made by the Company to
          holders of its Common Shares shall not be taxable to such shareholders.  

13 

        (n)    The
Company covenants and agrees that it shall not, at any time after the           earlier
of the Distribution Date or the Shares Acquisition Date, (i) consolidate           with
any other Person (other than a Subsidiary of the Company in a transaction           which
complies with Section 11(o) hereof), (ii) merge with or into any           other
Person (other than a Subsidiary of the Company in a transaction which           complies
with Section 11(o) hereof), (iii) sell or transfer (or permit any
          Subsidiary to sell or transfer), in one transaction, or a series of related
          transactions, assets or earning power aggregating more than 50% of the assets
or           earning power of the Company and its Subsidiaries (taken as a whole) to any
          other Person or Persons (other than the Company and/or any of its Subsidiaries
          in one or more transactions each of which complies with Section 11(o)
          hereof) or (iv) consummate a share exchange with any other Person, if at the
          time of or immediately after such consolidation, merger, sale or share exchange
          (A) there are any rights, warrants or other instruments or securities
          outstanding or agreements in effect which would substantially diminish or
          otherwise eliminate the benefits intended to be afforded by the Rights, (B)
          prior to, simultaneously with or immediately after such consolidation, merger,
          sale or share exchange the shareholders of the Person who constitute, or would
          constitute, the “Principal Party” for purposes of Section 13(a)
          hereof shall have received a distribution of Rights previously owned by such
          Person or any of its Affiliates and Associates or (C) the form or nature of
          organization of the Principal Party would preclude or limit the exercisability
          of the Rights.  

        (o)    The
Company covenants and agrees that, after the Distribution Date, it will not,
          except as permitted by Section 23, Section 24 or Section 27
          hereof, take (or permit any Subsidiary to take) any action if at the time such
          action is taken it is reasonably foreseeable that such action will diminish
          substantially or otherwise eliminate the benefits intended to be afforded by
the           Rights.  

        (p)    Anything
in this Agreement to the contrary notwithstanding, in the event that           the
Company shall at any time after the date hereof and prior to the           Distribution
Date (i) declare a dividend on the outstanding Common Shares           payable in Common
Shares, (ii) subdivide the outstanding Common Shares, or (iii)           combine the
outstanding Common Shares into a smaller number of shares, the           number of Rights
associated with each Common Share then outstanding, or issued           or delivered
thereafter but prior to the Distribution Date, shall be           proportionately
adjusted so that the number of Rights thereafter associated with           each Common
Share following any such event shall equal the result obtained by           multiplying
the number of Rights associated with each Common Share immediately           prior to
such event by a fraction the numerator which shall be the total number           of
Common Shares outstanding immediately prior to the occurrence of the event           and
the denominator of which shall be the total number of Common Shares           outstanding
immediately following the occurrence of such event.  

        Section
12.    Certificate of Adjusted Purchase Price or Number of Shares.  
Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the Company
shall promptly (a) prepare a certificate setting forth such adjustment, and a brief
statement of the facts accounting for such adjustment, (b) file with the Rights Agent and
with each transfer agent for the Common Shares of the Company a copy of such certificate
and (c) mail a brief summary thereof to each holder of a Right Certificate in accordance
with Section 25 hereof.  

14 

        Section
13.    Consolidation, Merger, Share Exchange or Sale or Transfer of Assets or Earning
Power.    

        (a)    In
the event that, following the Shares Acquisition Date, directly or           indirectly,
(x) the Company shall consolidate with, or merge with and into, any           other
Person (other than a Subsidiary of the Company in a transaction which           complies
with Section 11(o) hereof), and the Company shall not be the           continuing or
surviving corporation of such consolidation or merger, (y) any           Person (other
than a Subsidiary of the Company in a transaction which complies           with Section 11(o)
hereof) shall consolidate with, or merge with or into,           the Company, and the
Company shall be the continuing or surviving corporation of           such consolidation
or merger, or any Person or Persons (other than a Subsidiary           of the Company in
a transaction that complies with Section 11(o) hereof)           shall consummate a
share exchange with the Company, and, in connection with such           consolidation,
merger or share exchange, all or part of the outstanding Common           Shares of the
Company shall be changed into or exchanged for stock or other           securities of any
other Person (or the Company) or cash or any other property,           or (z) the Company
shall sell or otherwise transfer (or one or more of its           Subsidiaries shall sell
or otherwise transfer), in one transaction or a series           of related transactions,
assets or earning power aggregating more than 50% of           the assets or earning
power of the Company and its Subsidiaries (taken as a           whole) to any Person or
Persons (other than the Company or any Subsidiary of the           Company in one or more
transactions each of which complies with           Section 11(o) hereof), then, and
in each such case, proper provision shall           be made so that: (i) each holder of a
Right (except as otherwise provided           herein) shall thereafter have the right to
receive, upon the exercise thereof at           a price equal to the then current
Purchase Price multiplied by the number of one           one-hundredths of a Preferred
Share for which a Right is then exercisable (or,           if a Section 11(a)(ii)
Event has occurred prior to the first occurrence of           any of the events described
in clauses (x), (y) or (z) above (a           “Section 13 Event”), the
Purchase Price in effect immediately           prior to the first occurrence of a Section 11(a)(ii)
Event multiplied by           the number of one one-hundredths of a Preferred Share for
which a Right was           exercisable immediately prior to such first occurrence), in
accordance with the           terms of this Agreement, such number of validly authorized
and issued, fully           paid, nonassessable (except as otherwise required by any
corporation law           applicable to the Principal Party (as such term is hereinafter
defined)) and           freely tradeable Common Shares of the Principal Party, not
subject to any liens,           encumbrances, rights of first refusal or other adverse
claims, as shall be equal           to the result obtained by (1) multiplying the then
current Purchase Price by the           number of one one-hundredths of a Preferred Share
for which a Right is           exercisable immediately prior to the first occurrence of a
Section 13 Event           (or, if a Section 11(a)(ii) Event has occurred prior
to the first           occurrence of a Section 13 Event, multiplying the number of
such shares for           which a Right was exercisable immediately prior to the first
occurrence of a           Section 11(a)(ii) Event by the Purchase Price in effect
immediately prior           to such first occurrence), and dividing that product (which,
following the first           occurrence of a Section 13 Event, shall be referred to
as the           “Purchase Price” for each Right and for all purposes of this
          Agreement) by (2) 50% of the current market price (determined pursuant to
          Section 11(d) hereof) per Common Share of such Principal Party on the date
          of consummation of such Section 13 Event; (ii) such Principal Party shall
          thereafter be liable for, and shall assume, by virtue of such Section 13
          Event, all the obligations and duties of the Company pursuant to this
Agreement;           (iii) the term “Company” shall thereafter be deemed to
refer to such           Principal Party, it being specifically intended that the
provisions of           Section 11 hereof shall apply only to such Principal Party
following the           first occurrence of a Section 13 Event; (iv) such Principal
Party shall           take such steps (including, but not limited to, the reservation of
a sufficient           number of its Common Shares) in connection with the consummation
of any such           transaction as may be necessary to assure that the provisions
hereof shall           thereafter be applicable, as nearly as reasonably may be, in
relation to its           Common Shares thereafter deliverable upon the exercise of the
Rights; and (v)           the provisions of Section 11(a)(ii) hereof shall be of no
effect following           the first occurrence of any Section 13 Event.  

        (b)    “Principal
Party” shall mean  

	 	         (i)    in
the case of any transaction described in clause (x) or (y) of the first
          sentence of Section 13(a), the Person that is the issuer of any securities
          into which Common Shares of the Company are converted in such merger,
          consolidation or share exchange, and if no securities are so issued, (A) the
          Person that is the other party to the merger, consolidation or share exchange
          and that survives such merger or consolidation, or, if there is more than one
          such Person, the Person the Common Shares of which have the greatest aggregate
          market value of shares outstanding or (B) if the Person that is the other party
          to the merger or consolidation does not survive the merger or consolidation,
the           Person that does survive the merger or consolidation (including the Company
if           it survives); and  

15 

	 	         (ii)    in
the case of any transaction described in clause (z) of the first sentence of
          Section 13(a), the Person that is the party receiving the greatest portion
          of the assets or earning power transferred pursuant to such transaction or
          transactions;  

provided, however, that in
any such case, (1) if the Common Shares of such Person are not at such time and have not
been continuously over the preceding twelve (12) month-period registered under Section 12
of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person
the Common Shares of which are and have been so registered, “Principal Party”shall
refer to such other Person; and (2) in case such Person is a Subsidiary, directly or
indirectly, of more than one Person, the Common Shares of two or more of which are and
have been so registered, “Principal Party” shall refer to whichever of such
Persons is the issuer of the Common Shares having the greatest aggregate market value.  

        (c)    The
Company shall not consummate any such consolidation, merger, share exchange,
          sale or transfer unless the Principal Party shall have a sufficient number of
          authorized Common Shares which have not been issued or reserved for issuance to
          permit the exercise in full of the Rights in accordance with this
          Section 13 and unless prior thereto the Company and such Principal Party
          shall have executed and delivered to the Rights Agent a supplemental agreement
          providing for the terms set forth in paragraphs (a) and (b) of this
          Section 13 and further providing that, as soon as practicable after the
          date of any consolidation, merger, share exchange or sale of assets mentioned
in           paragraph (a) of this Section 13, the Principal Party will:  

	 	         (i)    prepare
and file a registration statement under the Securities Act of 1933, as           amended
(the “Act”), with respect to the Rights and the securities
          purchasable upon exercise of the Rights on an appropriate form, and will use
its           best efforts to cause such registration statement to (A) become effective
as           soon as practicable after such filing and (B) remain effective (with a
          prospectus at all times meeting the requirements of the Act) until the Final
          Expiration Date; and  

	 	         (ii)    deliver
to holders of the Rights historical financial statements for the           Principal
Party and each of its Affiliates which comply in all respects with the
          requirements for registration on Form 10 under the Exchange Act.  

The provisions of this Section 13
shall similarly apply to successive mergers, consolidations, share exchanges, sales or
other transfers. In the event that a Section 13 Event shall occur at any time after
the occurrence of a Section 11(a)(ii) Event, the Rights which have not theretofore
been exercised shall thereafter become exercisable in the manner described in Section 13(a).  

16  

        Section
14.    Fractional Rights and Fractional Shares.  

        (a)    The
Company shall not be required to issue fractions of Rights or to distribute
          Right Certificates which evidence fractional Rights. In lieu of such fractional
          Rights, there shall be paid to the registered holders of the Right Certificates
          with regard to which such fractional Rights would otherwise be issuable, an
          amount in cash equal to the same fraction of the current market value of a
whole           Right. For the purposes of this Section 14(a), the current market
value of           a whole Right shall be the closing price of the Rights for the Trading
Day           immediately prior to the date on which such fractional Rights would have
been           otherwise issuable. The closing price for any day shall be the last sale
price,           regular way, or, in case no such sale takes place on such day, the
average of           the closing bid and asked prices, regular way, in either case as
reported in the           principal consolidated transaction reporting system with
respect to securities           listed or admitted to trading on the New York Stock
Exchange or, if the Rights           are not listed or admitted to trading on the New
York Stock Exchange, as           reported in the principal consolidated transaction
reporting system with respect           to securities listed on the principal national
securities exchange on which the           Rights are listed or admitted to trading or,
if the Rights are not listed or           admitted to trading on any national securities
exchange, the last quoted price           or, if not so quoted, the average of the high
bid and low asked prices in the           over-the-counter market, as reported by Nasdaq
or such other system then in use           or, if on any such date the Rights are not
quoted by any such organization, the           average of the closing bid and asked
prices as furnished by a professional           market maker making a market in the
Rights selected by the Board of Directors of           the Company. If on any such date
no such market maker is making a market in the           Rights the fair value of the
Rights on such date as determined in good faith by           the Board of Directors of
the Company shall be used.  

        (b)    The
Company shall not be required to issue fractions of Preferred Shares (other
          than fractions which are integral multiples of one one-hundredth of a Preferred
          Share) upon exercise of the Rights or to distribute certificates which evidence
          fractional Preferred Shares (other than fractions which are integral multiples
          of one one-hundredth of a Preferred Share). Fractions of Preferred Shares in
          integral multiples of one one-hundredth of a Preferred Share may, at the
          election of the Company, be evidenced by depositary receipts, pursuant to an
          appropriate agreement between the Company and a depositary selected by it; provided,
that such agreement shall provide that the holders of such           depositary receipts
shall have all the rights, privileges and preferences to           which they are
entitled as beneficial owners of the Preferred Shares represented           by such
depositary receipts. In lieu of fractional Preferred Shares that are not
          integral multiples of one one-hundredth of a Preferred Share, the Company shall
          pay to the registered holders of Right Certificates at the time such Rights are
          exercised as herein provided an amount in cash equal to the same fraction of
the           current market value of one Preferred Share. For purposes of this
          Section 14(b), the current market value of a Preferred Share shall be the
          closing price of a Preferred Share (as determined pursuant to the second
          sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior
          to the date of such exercise.  

        (c)    The
holder of a Right by the acceptance of the Right expressly waives his right           to
receive any fractional Rights or any fractional shares upon exercise of a           Right
(except as provided above).  

        Section
15.    Rights of Action.  All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent under Section 18
hereof, are vested in the respective registered holders of the Right Certificates (and,
prior to the Distribution Date, the registered holders of the Common Shares); and any
registered holder of any Right Certificate (or, prior to the Distribution Date, of the
Common Shares), without the consent of the Rights Agent or of the holder of any other
Right Certificate (or, prior to the Distribution Date, of the Common Shares), may, in his
own behalf and for his own benefit, enforce, and may institute and maintain any suit,
action or proceeding against the Company to enforce, or otherwise act in respect of, his
right to exercise the Rights evidenced by such Right Certificate in the manner provided
in such Right Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of this
Agreement and will be entitled to specific performance of the obligations under, and
injunctive relief against actual or threatened violations of the obligations of any
Person subject to, this Agreement.  

17 

        Section
16.    Agreement of Right Holders.  Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent and with
every other holder of a Right that:  

        (a)    prior
to the Distribution Date, the Rights will be transferable only in           connection
with the transfer of the Common Shares;  

        (b)    after
the Distribution Date, the Right Certificates are transferable only on the
          registry books of the Rights Agent if surrendered at the principal office of
the           Rights Agent, duly endorsed or accompanied by a proper instrument of
transfer;  

        (c)    the
Company and the Rights Agent may deem and treat the person in whose name the
          Right Certificate (or, prior to the Distribution Date, the associated Common
          Shares certificate) is registered as the absolute owner thereof and of the
          Rights evidenced thereby (notwithstanding any notations of ownership or writing
          on the Right Certificates or the associated Common Shares certificate made by
          anyone other than the Company or the Rights Agent) for all purposes whatsoever,
          and neither the Company nor the Rights Agent shall be affected by any notice to
          the contrary; and  

        (d)    notwithstanding
anything in this Agreement to the contrary, neither the Company           nor the Rights
Agent shall have any liability to any holder of a Right or other           Person as a
result of its inability to perform any of its obligations under this           Agreement
by reason of any preliminary or permanent injunction or other order,           decree or
ruling issued by a court or competent jurisdiction or by a           governmental,
regulatory or administrative agency or commission, or any statute,           rule,
regulation or executive order promulgated or enacted by any governmental
          authority, prohibiting or otherwise restraining performance of such obligation;
          provided, however, the Company must use its best efforts to have any such
order,           decree or ruling lifted or otherwise overturned as soon as possible.  

        Section
17.    Right Certificate Holder Not Deemed a Shareholder.  No holder,
as such, of any Right Certificate shall be entitled to vote, receive dividends or other
distributions or be deemed for any purpose the holder of the Preferred Shares or any
other securities of the Company which may at any time be issuable on the exercise of the
Rights represented thereby, nor shall anything contained herein or in any Right
Certificate be construed to confer upon the holder of any Right Certificate, as such, any
of the rights of a shareholder of the Company or any right to vote for the election of
directors or upon any matter submitted to shareholders at any meeting thereof, or to give
or withhold consent to any corporate action, or to receive notice of meetings or other
actions affecting shareholders (except as provided in Section 25 hereof), or to
receive dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by such Right Certificate shall have been exercised in accordance with the
provisions hereof.  

        Section
18.    Concerning the Rights Agent.  

        (a)    The
Company agrees to pay to the Rights Agent reasonable compensation for all
          services rendered by it hereunder and, from time to time, on demand of the
          Rights Agent, its reasonable expenses and counsel fees and other disbursements
          incurred in the administration and execution of this Agreement and the exercise
          and performance of its duties hereunder. The Company also agrees to indemnify
          the Rights Agent for, and to hold it harmless against, any loss, liability, or
          expense, incurred without gross negligence, bad faith or willful misconduct on
          the part of the Rights Agent, for anything done or omitted by the Rights Agent
          in connection with the acceptance and administration of this Agreement,
          including the costs and expenses of defending against any claim of liability in
          the premises.  

        (b)    The
Rights Agent shall be protected and shall incur no liability for, or in           respect
of any action taken, suffered or omitted by it in connection with, its
          administration of this Agreement in reliance upon any Right Certificate or
          certificate for the Preferred Shares or Common Shares or for other securities
of           the Company, instrument of assignment or transfer, power of attorney,
          endorsement, affidavit, letter, notice, direction, consent, certificate,
          statement, or other paper or document believed by it to be genuine and to be
          signed, executed and, where necessary, verified or acknowledged, by the proper
          person or persons, or otherwise upon the advice of counsel as set forth in
          Section 20 hereof.  

18 

        Section
19.    Merger or Consolidation or Change of Name of Rights Agent.  

        (a)    Any
corporation into which the Rights Agent or any successor Rights Agent may be
          merged or with which it may be consolidated, or any corporation resulting from
          any merger or consolidation to which the Rights Agent or any successor Rights
          Agent shall be a party, or any corporation succeeding to the stock transfer or
          corporate trust business of the Rights Agent or any successor Rights Agent,
          shall be the successor to the Rights Agent under this Agreement without the
          execution or filing of any paper or any further act on the part of any of the
          parties hereto, provided that such corporation would be eligible for
          appointment as a successor Rights Agent under the provisions of Section 21
          hereof. In case at the time such successor Rights Agent shall succeed to the
          agency created by this Agreement, any of the Right Certificates shall have been
          countersigned but not delivered, any such successor Rights Agent may adopt the
          countersignature of the predecessor Rights Agent and deliver such Right
          Certificates so countersigned; and in case at that time any of the Right
          Certificates shall not have been countersigned, any successor Rights Agent may
          countersign such Right Certificates either in the name of the predecessor
Rights           Agent or in the name of the successor Rights Agent; and in all such
cases such           Right Certificates shall have the full force provided in the Right
Certificates           and in this Agreement.  

        (b)    In
case at any time the name of the Rights Agent shall be changed and at such           time
any of the Right Certificates shall have been countersigned but not           delivered,
the Rights Agent may adopt the countersignature under its prior name           and
deliver Right Certificates so countersigned; and in case at that time any of
          the Right Certificates shall not have been countersigned, the Rights Agent may
          countersign such Right Certificates either in its prior name or in its changed
          name; and in all such cases such Right Certificates shall have the full force
          provided in the Right Certificates and in this Agreement.  

        Section
20.    Duties of Rights Agent.  The Rights Agent undertakes the
duties and obligations imposed by this Agreement upon the following terms and conditions,
by all of which the Company and the holders of Right Certificates, by their acceptance
thereof, shall be bound:  

        (a)    The
Rights Agent may consult with legal counsel (who may be legal counsel for           the
Company), and the opinion of such counsel shall be full and complete
          authorization and protection to the Rights Agent as to any action taken or
          omitted by it in good faith and in accordance with such opinion.  

        (b)    Whenever
in the performance of its duties under this Agreement the Rights Agent           shall
deem it necessary or desirable that any fact or matter be proved or           established
by the Company prior to taking or suffering any action hereunder,           such fact or
matter (unless other evidence in respect thereof be herein           specifically
prescribed) may be deemed to be conclusively proved and established           by a
certificate signed by the Chairman of the Board, the Chief Executive           Officer,
the President or any Vice President and by the Treasurer or any           Assistant
Treasurer or the Secretary or any Assistant Secretary of the Company           and
delivered to the Rights Agent; and such certificate shall be full           authorization
to the Rights Agent for any action taken or suffered in good faith           by it under
the provisions of this Agreement in reliance upon such certificate.  

        (c)    The
Rights Agent shall be liable hereunder to the Company and any other Person           only
for its own gross negligence, bad faith or willful misconduct.  

        (d)    The
Rights Agent shall not be liable for or by reason of any of the statements           of
fact or recitals contained in this Agreement or in the Right Certificates
          (except its countersignature thereof) or be required to verify the same, but
all           such statements and recitals are and shall be deemed to have been made by
the           Company only.  

19 

        (e)    The
Rights Agent shall not be under any responsibility in respect of the           validity
of this Agreement or the execution and delivery hereof (except the due
          authorization, execution and delivery hereof by the Rights Agent) or in respect
          of the validity or execution of any Right Certificate (except its
          countersignature thereof); nor shall it be responsible for any breach by the
          Company of any covenant or condition contained in this Agreement or in any
Right           Certificate; nor shall it be responsible for any change in the
exercisability of           the Rights (including the Rights becoming void pursuant to
          Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights
          (including the manner, method or amount thereof) provided for in Section 3,
          11, 13, 23 or 24, or the ascertaining of the existence of facts that would
          require any such change or adjustment (except with respect to the exercise of
          Rights evidenced by Right Certificates after actual notice that such change or
          adjustment is required); nor shall it by any act hereunder be deemed to make
any           representation or warranty as to the authorization or reservation of any
          Preferred Shares or other securities to be issued pursuant to this Agreement or
          any Right Certificate or as to whether any Preferred Shares or other securities
          will, when issued, be validly authorized and issued, fully paid and
          nonassessable.  

        (f)    The
Company agrees that it will perform, execute, acknowledge and deliver or           cause
to be performed, executed, acknowledged and delivered all such further and
          other acts, instruments and assurances as may reasonably be required by the
          Rights Agent for the carrying out or performing by the Rights Agent of the
          provisions of this Agreement.  

        (g)    The
Rights Agent is hereby authorized and directed to accept instructions with
          respect to the performance of its duties hereunder from any one of the Chairman
          of the Board, the Chief Executive Officer, any Vice President, the Secretary,
          any Assistant Secretary, the Treasurer or any Assistant Treasurer of the
          Company, and to apply to such officers for advice or instructions in connection
          with its duties, and it shall not be liable for any action taken or suffered by
          it in good faith in accordance with instructions of any such officer or for any
          delay in acting while waiting for those instructions.  

        (h)    The
Rights Agent and any shareholder, director, officer or employee of the           Rights
Agent may buy, sell or deal in, or act as the transfer agent for, any of           the
Rights, Common Shares or other securities of the Company or become           pecuniarily
interested in any transaction in which the Company may be           interested, or
contract with or lend money to the Company or otherwise act as           fully and freely
as though it were not Rights Agent under this Agreement.           Nothing herein shall
preclude the Rights Agent from acting in any other capacity           for the Company or
for any other legal entity.  

        (i)    The
Rights Agent may execute and exercise any of the rights or powers hereby           vested
in it or perform any duty hereunder either itself or by or through its
          attorneys or agents, and the Rights Agent shall not be answerable or
accountable           for any act, default, neglect or misconduct of any such attorneys
or agents or           for any loss to the Company resulting from any such act, default,
neglect or           misconduct, provided reasonable care was exercised in the selection
and           continued employment thereof.  

20 

        Section
21.    Change of Rights Agent.  The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement upon 30
days’ notice in writing mailed to the Company and to each transfer agent of the
Common Shares by registered or certified mail, and to the holders of the Right
Certificates by first-class mail. The Company may remove the Rights Agent or any
successor Rights Agent upon 30 days’notice in writing, mailed to the Rights Agent or
successor Rights Agent, as the case may be, and to each transfer agent of the Common
Shares by registered or certified mail, and to the holders of the Right Certificates by
first-class mail. If the Rights Agent shall resign or be removed or shall otherwise
become incapable of acting, the Company shall appoint a successor to the Rights Agent. If
the Company shall fail to make such appointment within a period of 30 days after giving
notice of such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right
Certificate (who shall, with such notice, submit his Right Certificate for inspection by
the Company), then the registered holder of any Right Certificate may apply to any court
of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be (a) a
corporation organized and doing business under the laws of the United States or of the
State of New York or the State of Wisconsin (or of any other state of the United States
so long as such corporation is authorized to do business as a banking institution in the
State of New York or the State of Wisconsin), in good standing, having an office or
agency in the State of New York or the State of Wisconsin, which is authorized under such
laws to exercise corporate trust or stock transfer powers and is subject to supervision
or examination by federal or state authority and which has at the time of its appointment
as Rights Agent a combined capital and surplus of at least $50 million, or (b) an
Affiliate of a corporation described in clause (a) of this sentence. After appointment,
the successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without further act
or deed; but the predecessor Rights Agent shall deliver and transfer to the successor
Rights Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later than the
effective date of any such appointment the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Shares, and mail
a notice thereof in writing to the registered holders of the Right Certificates. Failure
to give any notice provided for in this Section 21, however, or any defect therein,
shall not affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be.  

        Section
22.    Issuance of New Right Certificates.  Notwithstanding any of
the provisions of this Agreement or of the Rights to the contrary, the Company may, at
its option, issue new Right Certificates evidencing Rights in such form as may be
approved by its Board of Directors to reflect any adjustment or change in the Purchase
Price and the number or kind or class of shares or other securities or property
purchasable under the Right Certificates made in accordance with the provisions of this
Agreement.  

        Section
23.    Redemption.  

        (a)    The
Rights may be redeemed by action of the Board of Directors pursuant to
          subsection (b) of this Section 23 and shall not be redeemed in any
          other manner.  

        (b)    The
Board of Directors of the Company may, at its option, at any time prior to           such
time as any Person becomes an Acquiring Person, redeem all but not less           than
all the then outstanding Rights at a redemption price of $.001 per Right,
          appropriately adjusted to reflect any stock split, stock dividend or similar
          transaction occurring after the date hereof (such redemption price being
          hereinafter referred to as the “Redemption Price”). The redemption of
          the Rights by the Board of Directors may be made effective at such time, on
such           basis and with such conditions as the Board of Directors in its sole
discretion           may establish. Notwithstanding anything contained in this Agreement
to the           contrary, the Rights shall not be exercisable after the first occurrence
of a           Section 11(a)(ii) Event until such time as the Company’s right
of           redemption hereunder has expired.  

21 

        (c)    Immediately
upon the effectiveness of the action of the Board of Directors of           the Company
ordering the redemption of the Rights pursuant to           subsection (b) of this
Section 23, and without any further action and           without any notice, the
right to exercise the Rights will terminate and the only           right thereafter of
the holders of Rights shall be to receive the Redemption           Price. The Company
shall promptly give public notice of any such redemption; provided, however, that
the failure to give, or any defect in, any such           notice shall not affect the
validity of such redemption. Within 10 days after           the effectiveness of the
action of the Board of Directors ordering the           redemption of the Rights pursuant
to subsection (b), the Company shall mail           a notice of redemption to all
the holders of the then outstanding Rights at           their last addresses as they
appear upon the registry books of the Rights Agent           or, prior to the
Distribution Date, on the registry books of the transfer agent           for the Common
Shares. Any notice which is mailed in the manner herein provided           shall be
deemed given, whether or not the holder receives the notice. Each such           notice
of redemption will state the method by which the payment of the           Redemption
Price will be made. Neither the Company nor any of its Affiliates or           Associates
may redeem, acquire or purchase for value any Rights at any time in           any manner
other than that specifically set forth in this Section 23 or in           Section 24
hereof, and other than in connection with the purchase of Common           Shares prior
to the Distribution Date.  

        Section
24.    Exchange.  

        (a)    The
Board of Directors of the Company may, at its option, at any time after any
          Person becomes an Acquiring Person, exchange all or part of the then
outstanding           and exercisable Rights (which shall not include Rights that have
become void           pursuant to the provisions of Section 11(a)(ii) hereof) for
Common Shares           of the Company at an exchange ratio of one Common Share per
Right, appropriately           adjusted to reflect any stock split, stock dividend or
similar transaction           occurring after the date hereof (such exchange ratio being
hereinafter referred           to as the “Exchange Ratio”). Notwithstanding the
foregoing, the Board           of Directors shall not be empowered to effect such
exchange at any time after           any Person (other than the Company, any Subsidiary
of the Company, any employee           benefit plan of the Company or any such
Subsidiary, any entity holding Common           Shares for or pursuant to the terms of
any such plan, or any trustee,           administrator or fiduciary of such a plan, or
any Exempt Person), together with           all Affiliates and Associates of such Person,
becomes the Beneficial Owner of           50% or more of the Common Shares of the Company
then outstanding.  

        (b)    Immediately
upon the action of the Board of Directors of the Company ordering           the exchange
of any Rights pursuant to subsection (a) of this           Section 24 and
without any further action and without any notice, the right           to exercise such
Rights shall terminate and the only right thereafter of a           holder of such Rights
shall be to receive that number of Common Shares of the           Company equal to the
number of such Rights held by such holder multiplied by the           Exchange Ratio. The
Company shall promptly give public notice of any such           exchange; provided,
however, that the failure to give, or any defect in,           such notice shall not
affect the validity of such exchange. The Company promptly           shall mail a notice
of any such exchange to all of the holders of such Rights at           their last
addresses as they appear upon the registry books of the Rights Agent.           Any
notice which is mailed in the manner herein provided shall be deemed given,
          whether or not the holder receives the notice. Each such notice of exchange
will           state the method by which the exchange of the Common Shares of the Company
for           Rights will be effected and, in the event of any partial exchange, the
number of           Rights which will be exchanged. Any partial exchange shall be
effected pro rata           based on the number of Rights (other than Rights which have
become void pursuant           to the provisions of Section 11(a)(ii) hereof) held
by each holder of           Rights.  

        (c)    In
any exchange pursuant to this Section 24, the Company, at its option,           may
substitute Preferred Shares (or equivalent preferred shares, as such term is
          defined in Section 11(b) hereof) for some or all of the Common Shares of
          the Company exchangeable for Rights, at the initial rate of one one-hundredth
of           a Preferred Share (or equivalent preferred share) for each Common Share of
the           Company, as appropriately adjusted to reflect adjustments in the voting
rights           of the Preferred Shares pursuant to the terms thereof, so that the
fraction of a           Preferred Share delivered in lieu of each Common Share of the
Company shall have           the same voting rights as one Common Share of the Company.  

22 

        (d)    In
the event that there shall not be sufficient Common Shares of the Company or
          Preferred Shares issued but not outstanding or authorized but unissued to
permit           any exchange of Rights as contemplated in accordance with this Section 24,
          the Company shall take all such action as may be necessary to authorize
          additional Common Shares of the Company or Preferred Shares for issuance upon
          exchange of the Rights.  

        (e)    The
Company shall not be required to issue fractions of Common Shares of the
          Company or to distribute certificates which evidence fractional Common Shares
of           the Company. In lieu of such fractional Common Shares of the Company, the
          Company shall pay to the registered holders of the Right Certificates with
          regard to which such fractional Common Shares of the Company would otherwise be
          issued an amount in cash equal to the same fraction of the current market value
          of a whole Common Share of the Company. For the purposes of this paragraph (e),
          the current market value of a whole Common Share of the Company shall be the
          closing price of a Common Share of the Company (as determined pursuant to the
          second sentence of Section 11(d) hereof) for the Trading Day immediately
          prior to the date of exchange pursuant to this Section 24.  

        Section
25.    Notice of Certain Events.  

        (a)    In
case the Company shall propose, after the Distribution Date, (i) to pay any
          dividend payable in stock of any class to the holders of Preferred Shares or to
          make any other distribution to the holders of Preferred Shares (other than a
          regular quarterly cash dividend), (ii) to offer to the holders of Preferred
          Shares rights or warrants to subscribe for or to purchase any additional
          Preferred Shares or shares of stock of any class or any other securities,
rights           or options, (iii) to effect any reclassification of Preferred Shares
(other than           a reclassification involving only the subdivision of outstanding
Preferred           Shares), (iv) to effect any consolidation or merger into or with
(other than a           merger of a Subsidiary into or with the Company), to effect any
share exchange           with or to effect any sale or other transfer (or to permit one
or more of its           Subsidiaries to effect any sale or other transfer), in one or
more transactions,           of 50% or more of the assets or earning power of the Company
and its           Subsidiaries (taken as a whole) to, any other Person, or (v) to effect
the           liquidation, dissolution or winding up of the Company, then, in each such
case,           the Company shall give to each holder of a Right Certificate, in
accordance with           Section 26 hereof, a notice of such proposed action, which
shall specify           the record date for the purposes of such stock dividend, or
distribution of           rights or warrants, or the date on which such reclassification,
consolidation,           merger, share exchange, sale, transfer, liquidation,
dissolution, or winding up           is to take place and the date of participation
therein by the holders of the           Preferred Shares if any such date is to be fixed,
and such notice shall be so           given in the case of any action covered by clause
(i) or (ii) above at least 10           days prior to the record date for determining
holders of Preferred Shares for           purposes of such action, and in the case of any
such other action, at least 10           days prior to the date of the taking of such
proposed action or the date of           participation therein by the holders of the
Preferred Shares, whichever shall be           the earlier.  

        (b)    In
case any of Section 11(a)(ii) Event or Section 13 Event shall           occur,
then, in any such case, (i) the Company shall as soon as practicable           thereafter
give to each holder of a Right Certificate, in accordance with           Section 26
hereof, a notice of the occurrence of such event, which notice           shall include a
brief summary of the Section 11(a)(ii) Event or           Section 13 Event, as
the case may be, and the consequences thereof to           holders of Rights, and (ii)
all references in the preceding paragraph to           Preferred Shares shall be deemed
thereafter to refer to Common Shares and/or, if           appropriate, other securities.  

        Section
26.    Notices.  

        (a)    Notices
or demands authorized by this Agreement to be given or made by the           Rights Agent
or by the holder of any Right Certificate to or on the Company           shall be
sufficiently given or made if sent by first-class mail, postage           prepaid,
addressed (until another address is filed in writing with the Rights           Agent) as
follows:  

23 

	 	
Ridgestone
Financial Services, Inc.
13925 West North Avenue
Brookfield, WI  53005
Attention:  Chief Executive Officer  

        (b)    Subject
to the provisions of Section 21 hereof, any notice or demand           authorized by
this Agreement to be given or made by the Company or by the holder           of any Right
Certificate to or on the Rights Agent shall be sufficiently given           or made if
sent by first-class mail, postage prepaid, addressed (until another           address is
filed in writing with the Company) as follows:  

	 	
Continental
Stock Transfer & Trust Company
17 Battery Place
New York, New York 10004
Attention:  Compliance Department  

        (c)    Notices
or demands authorized by this Agreement to be given or made by the           Company or
the Rights Agent to the holder of any Right Certificate shall be           sufficiently
given or made if sent by first-class mail, postage prepaid,           addressed to such
holder at the address of such holder as shown on the registry           books of the
Company.  

        Section
27.    Supplements and Amendments.  Prior to such time as any Person
becomes an Acquiring Person and subject to the penultimate sentence of this Section 27,
the Company may and the Rights Agent shall, if the Company so directs, supplement or
amend any provision of this Agreement without the approval of any holders of certificates
representing Common Shares of the Company. From and after such time as any Person becomes
an Acquiring Person and subject to the penultimate sentence of this Section 27, the
Company and the Rights Agent shall, if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Right Certificates in order (i) to cure
any ambiguity, (ii) to correct or supplement any provision contained herein which may be
defective or inconsistent with any other provision herein, (iii) to shorten or lengthen
any time period hereunder, or (iv) to change or supplement the provisions hereunder in
any manner which the Company may deem necessary or desirable and which shall not
adversely affect the interests of the holders of Right Certificates (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, that
from and after such time as any Person becomes an Acquiring Person this Agreement may not
be supplemented or amended to lengthen, pursuant to clause (iii) of this sentence, (A) a
time period relating to when the Rights may be redeemed at such time as the Rights are
not then redeemable, or (B) any other time period unless such lengthening is for the
purpose of protecting, enhancing or clarifying the rights of, and/or the benefits to, the
holders of Rights. Upon the delivery of a certificate from an appropriate officer of the
Company which states that the proposed supplement or amendment is in compliance with the
terms of this Section 27, the Rights Agent shall execute such supplement or
amendment. Notwithstanding anything contained in this Agreement to the contrary, no
supplement or amendment shall be made that changes the Redemption Price or moves to an
earlier date the then effective Final Expiration Date. Prior to the Distribution Date,
the interests of the holders of Rights shall be deemed coincident with the interests of
the holders of Common Shares of the Company.  

        Section
28.    Successors.  All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure
to the benefit of their respective successors and assigns hereunder.  

24 

        Section
29.    Benefits of this Agreement.  Nothing in this Agreement shall
be construed to give to any person or corporation other than the Company, the Rights
Agent and the registered holders of the Right Certificates (and, prior to the
Distribution Date, the Common Shares of the Company) any legal or equitable right, remedy
or claim under this Agreement; but this Agreement shall be for the sole and exclusive
benefit of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Shares of the Company).  

        Section
30.    Severability.  If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction or other authority to be
invalid, void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall in no way
be affected, impaired or invalidated.  

        Section
31.    Governing Law.  This Agreement and each Right Certificate
issued hereunder shall be deemed to be a contract made under the laws of the State of
Wisconsin and for all purposes shall be governed by and construed in accordance with the
laws of such State applicable to contracts to be made and performed entirely within such
State and shall be subject to the exclusive jurisdiction of the courts of, and United
States Federal Courts sitting in, such State.  

        Section
32.    Counterparts.  This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but one and the same
instrument.  

        Section
33.    Descriptive Headings.  Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not control
or affect the meaning or construction of any of the provisions hereof.  

        Section
34.    Determinations and Actions by the Board of Directors.   For all
purposes of this Agreement, any calculation of the number of Common Shares of the Company
outstanding at any particular time, including for purposes of determining the particular
percentage of such outstanding Common Shares of which any Person is the Beneficial Owner,
shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General
Rules and Regulations under the Exchange Act. The Board of Directors of the Company shall
have the exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board of Directors or to the Company, or as
may be necessary or advisable in the administration of this Agreement, including, without
limitation, the right and power to (a) interpret the provisions of this Agreement, and
(b) make all determinations deemed necessary or advisable for the administration of this
Agreement (including a determination to redeem or not redeem the Rights or to amend the
Agreement and any determination as to whether actions or any Person shall be such as to
cause such Person to beneficially own shares held by another Person). All such actions,
calculations, interpretations and determinations (including, for purposes of clause (ii)
below, all omissions with respect to the foregoing) which are done or made by the Board
of Directors of the Company in good faith, shall (i) be final, conclusive and binding on
the Company, the Rights Agent, the holders of the Rights and all other parties, and (ii)
not subject the Board of Directors of the Company to any liability to the holders of the
Rights.  

25 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
and attested, all as of the day and year first above written.  

	Attest:

		RIDGESTONE FINANCIAL SERVICES, INC.

 
	By:   	/s/  Christine V. Lake 
		By:   	/s/  Paul E. Menzel

	Title:   	President and Chief Operating Officer 
		Title:   	Chairman and Chief Executive Officer 

	Attest:

		CONTINENTAL STOCK TRANSFER &
TRUST COMPANY

 
	By:   	/s/  William Seegraber 
		By:   	/s/  Felix Orihuela

	Title:   	Vice President 
		Title:   	Vice President 

26 

	 	
 

	 	
EXHIBIT
A  

Terms of the Series A
Junior Participating Preferred Stock,
No par value, of
Ridgestone Financial
Services, Inc.  

Series A Junior
Participating Preferred Stock  

        1.       Designation
and Amount.  There is hereby created a series of Preferred           Stock that shall
be designated as “Series A Junior Participating           Preferred Stock”,
no par value (the “Series A Preferred           Stock”), and the number of
shares constituting such series shall be           100,000. Such number of shares may be
increased or decreased by resolution of           the Board of Directors; provided that
no decrease shall reduce the number of           shares of Series A Preferred Stock to a
number less than the number of shares           then outstanding plus the number of
shares reserved for issuance upon the           exercise of outstanding options, rights
or warrants or upon the conversion of           any outstanding securities issued by the
Corporation into Series A Preferred           Stock.  

        2.       Dividends
and Distributions.  

	 	            (A)                    The
holders of shares of Series A Preferred Stock, in preference to the
               holders of shares of Common Stock and of any other junior stock, shall be
               entitled to receive, when, as and if declared by the Board of Directors
out of                funds legally available for the purpose, quarterly dividends
payable in cash on                the first business days of January, April, July and
October in each year (each                such date being referred to herein as a “Quarterly
Dividend Payment                Date”), commencing on the first Quarterly Dividend
Payment Date after the                first issuance of a share or fraction of a share of
Series A Preferred                Stock, in an amount per share (rounded to the
nearest cent) equal to the greater                of (i) $1.00 or (ii) subject to the
provision for adjustment hereinafter set                forth, 100 times the aggregate
per share amount of all cash dividends, and 100                times the aggregate per
share amount (payable in kind) of all noncash dividends                or other
distributions, other than a dividend payable in shares of Common Stock                or
a subdivision of the outstanding shares of Common Stock (by reclassification
               or otherwise), declared on the Common Stock since the immediately
preceding                Quarterly Dividend Payment Date, or, with respect to the first
Quarterly Payment                Date, since the first issuance of any share or fraction
of a share of                Series A Preferred Stock. In the event the Corporation
shall at any time                after the close of business on February 10, 2005 (the
“Rights Declaration                Date”) (a) declare any dividend on Common
Stock payable in shares of Common                Stock, (b) subdivide the outstanding
Common Stock, or (c) combine the                outstanding Common Stock into a smaller
number of shares, then in each such case                the amount to which holders of
shares of Series A Preferred Stock were                entitled immediately prior to
such event under clause (ii) of the preceding                sentence shall be adjusted
by multiplying such amount by a fraction the                numerator of which is the
number of shares of Common Stock that are outstanding                immediately after
such event and the denominator of which is the number of                shares of Common
Stock that were outstanding immediately prior to such event.  

	 	            (B)                    The
Corporation shall declare a dividend or distribution on the Series A
               Preferred Stock as provided in paragraph (A) above immediately after it
declares                a dividend or distribution on the Common Stock (other than a
dividend payable in                shares of Common Stock); provided  that, in the
event no dividend or                distribution shall have been declared on the Common
Stock during the period                between any Quarterly Dividend Payment Date and
the next subsequent Quarterly                Dividend Payment Date, a dividend of $1.00
per share on the Series A                Preferred Stock shall nevertheless be
payable on such subsequent Quarterly                Dividend Payment Date.  

A-1 

	 	            (C)                    Dividends
shall begin to accrue and be cumulative on outstanding shares of                Series A
Preferred Stock from the Quarterly Dividend Payment Date next                preceding
the date of issue of such shares of Series A Preferred Stock,                unless
the date of issue of such shares is prior to the record date for the                first
Quarterly Dividend Payment Date, in which case dividends on such shares
               shall begin to accrue from the date of issue of such shares, or unless the
date                of issue is a Quarterly Dividend Payment Date or is a date after the
record date                for the determination of holders of shares of Series A
Preferred Stock                entitled to receive a quarterly dividend and before such
Quarterly Dividend                Payment Date, in either of which events such dividends
shall begin to accrue and                be cumulative from such Quarterly Dividend
Payment Date. Accrued but unpaid                dividends shall not bear interest.
Dividends paid on the shares of Series A                Preferred Stock in an amount
less than the total amount of such dividends at the                time accrued and
payable on such shares shall be allocated pro rata on a                share-by-share
basis among all such shares at the time outstanding. The Board of
               Directors may fix a record date for the determination of holders of shares
of                Series A Preferred Stock entitled to receive payment of a dividend
or                distribution declared thereon, which record date shall be no more than
30 days                prior to the date fixed for the payment thereof.  

        3.       Voting
Rights.  The holders of shares of Series A Preferred Stock           shall have
the following voting rights:  

	 	            (A)                    Subject
to the provision for adjustment hereinafter set forth, each share of                Series A
Preferred Stock shall entitle the holder thereof to 100 votes on                all
matters submitted to a vote of the shareholders of the Corporation. In the
               event the Corporation shall at any time declare or pay any dividend on
Common                Stock payable in shares of Common Stock, or effect a subdivision or
combination                or consolidation of the outstanding shares of Common Stock (by
reclassification                or otherwise than by payment of a dividend in shares of
Common Stock) into a                greater or lesser number of shares of Common Stock,
then in each such case the                number of votes per share to which holders of
shares of Series A Preferred                Stock were entitled immediately prior to
such event shall be adjusted by                multiplying such number by a fraction the
numerator of which is the number of                shares of Common Stock that are
outstanding immediately after such event and the                denominator of which is
the number of shares of Common Stock that were                outstanding immediately
prior to such event.  

	 	            (B)                    Except
as otherwise provided herein, in any other resolution of the Board of
               Directors creating a series of Preferred Stock or any similar stock, or by
law,                the holders of shares of Series A Preferred Stock and the
holders of shares                of Common Stock shall vote together as one class on all
matters submitted to a                vote of shareholders of the Corporation.  

	 	            (C)                    Except
as set forth herein, holders of Series A Preferred Stock shall have
               no special voting rights and their consent shall not be required (except
to the                extent they are entitled to vote with holders of Common Stock as
set forth                herein) for taking any corporate action.  

        4.       
Certain Restrictions.  

	 	            (A)                    Whenever
quarterly dividends or other dividends or distributions payable on the
               Series A Preferred Stock as provided in Section 2 are in
arrears,                thereafter and until all accrued and unpaid dividends and
distributions, whether                or not declared, on shares of Series A
Preferred Stock outstanding shall                have been paid in full, the Corporation
shall not:  

A-2 

	 	               (i)                    declare
or pay dividends on, make any other distributions on, or redeem or
               purchase or otherwise acquire for consideration any shares of stock
ranking                junior (either as to dividends or upon liquidation, dissolution or
winding up)                to the Series A Preferred Stock;  

	 	               (ii)                    declare
or pay dividends on or make any other distributions on any shares of                stock
ranking on a parity (either as to dividends or upon liquidation,
               dissolution or winding up) with the Series A Preferred Stock, except
               dividends paid ratably on the Series A Preferred Stock and all such
parity                stock on which dividends are payable or in arrears in proportion to
the total                amounts to which the holders of all such shares are then
entitled;  

	 	               (iii)                    redeem
or purchase or otherwise acquire for consideration shares of any stock
               ranking on a parity (either as to dividends or upon liquidation,
dissolution or                winding up) with the Series A Preferred Stock, provided that
the                Corporation may at any time redeem, purchase or otherwise acquire
shares of any                such parity stock in exchange for shares of any stock of the
Corporation ranking                junior to or on a parity with (both as to dividends or
upon dissolution,                liquidation or winding up) the Series A Preferred
Stock; or  

	 	               (iv)                    purchase
or otherwise acquire for consideration any shares of Series A
               Preferred Stock, or any shares of stock ranking on a parity with the
               Series A Preferred Stock, except in accordance with a purchase offer
made                in writing or by publication (as determined by the Board of
Directors) to all                holders of such shares upon such terms as the Board of
Directors, after                consideration of the respective annual dividend rates and
other relative rights                and preferences of the respective series and
classes, shall determine in good                faith will result in fair and equitable
treatment among the respective series or                classes.  

	 	            (B)                    The
Corporation shall not permit any corporation of which an amount of voting
               securities sufficient to elect at least a majority of the directors of
such                corporation is beneficially owned, directly or indirectly, by the
Corporation or                otherwise controlled by the Corporation to purchase or
otherwise acquire for                consideration any shares of stock of the Corporation
unless the Corporation                could, under paragraph (A) of this Section 4,
purchase or otherwise acquire                such shares at such time and in such manner.  

        5.       Reacquired
Shares.  All shares of Series A Preferred Stock that shall           at any time
have been reacquired by the Corporation shall, after such           reacquisition, have
the status of authorized but unissued shares of Preferred           Stock of the
Corporation, without designation as to series, and may be reissued           as part of a
new series of Preferred Stock to be created by resolution or           resolutions of the
Board of Directors, subject to the conditions and           restrictions on issuance set
forth herein.  

A-3 

        6.       Liquidation,
Dissolution or Winding Up.  Upon any liquidation, dissolution           or winding up
of the Corporation, no distribution shall be made (A) to the           holders of shares
of stock ranking junior (either as to dividends or upon           liquidation,
dissolution or winding up) to the Series A Preferred Stock           unless, prior
thereto, the holders of shares of Series A Preferred Stock           shall have
received $100 per share, plus an amount equal to accrued and unpaid           dividends
and distributions thereon, whether or not declared, to the date of           such
payment, provided that the holders of shares of Series A           Preferred
Stock shall be entitled to receive an aggregate amount per share,           subject to
the provision for adjustment hereinafter set forth, equal to 100           times the
aggregate amount to be distributed per share to holders of shares of           Common
Stock, or (B) to the holders of shares of stock ranking on a parity           (either as
to dividends or upon liquidation, dissolution or winding up) with the           Series A
Preferred Stock, except distributions made ratably on the           Series A
Preferred Stock and all other such parity stock in proportion to           the total
amounts to which the holders of all such shares are entitled upon such
          liquidation, dissolution or winding up. In the event the Corporation shall at
          any time declare or pay any dividend on the Common Stock payable in shares of
          Common Stock, or effect a subdivision or combination or consolidation of the
          outstanding shares of Common Stock (by reclassification or otherwise than by
          payment of a dividend in shares of Common Stock) into a greater or lesser
number           of shares of Common Stock, then in each such case the aggregate amount
to which           holders of shares of Series A Preferred Stock were entitled
immediately           prior to such event under the proviso in clause (A) of the
preceding sentence           shall be adjusted by multiplying such amount by a fraction
the numerator of           which is the number of shares of Common Stock outstanding
immediately after such           event and the denominator of which is the number of
shares of Common Stock that           were outstanding immediately prior to such event.  

        7.       Consolidation,
Merger, etc.  In case the Corporation shall enter into any           consolidation,
merger, combination, share exchange or other transaction in which           the shares of
Common Stock are exchanged for or changed into other stock or           securities, cash
and/or any other property, then in any such case the shares of           Series A
Preferred Stock shall at the same time be similarly exchanged or           changed in an
amount per share (subject to the provision for adjustment           hereinafter set
forth) equal to 100 times the aggregate amount of stock,           securities, cash
and/or any other property (payable in kind), as the case may           be, into which or
for which each share of Common Stock is changed or exchanged.           In the event the
Corporation shall at any time after the Rights Declaration Date           (A) declare any
dividend on Common Stock payable in shares of Common Stock, (B)           subdivide the
outstanding Common Stock, or (C) combine the outstanding shares of           Common Stock
into a smaller number of shares, then in each such case the amount           set forth in
the preceding sentence with respect to the exchange or change of           shares of
Series A Preferred Stock shall be adjusted by multiplying such           amount by a
fraction the numerator of which is the number of shares of Common           Stock that
are outstanding immediately after such event and the denominator of           which is
the number of shares of Common Stock that were outstanding immediately           prior to
such event.  

        8.       No
Redemption.  The shares of Series A Preferred Stock shall not be
          redeemable.  

        9.       Amendment.  
To the fullest extent permitted by applicable law, prior to           such time as shares
of Series A Preferred Stock are issued and outstanding,           the Board of
Directors may modify, amend, alter or revoke any of the number of           shares of
Series A Preferred Stock, the powers, preferences or special           rights of the
Series A Preferred Stock or the other terms of the           Series A Preferred
Stock. From and after such time as shares of           Series A Preferred Stock are
issued and outstanding, the Restated Articles           of Incorporation of the
Corporation shall not be amended in any manner that           would materially alter or
change the powers, preferences or special rights of           the Series A Preferred
Stock so as to affect them adversely without the           affirmative vote of the
holders of at least two-thirds of the outstanding shares           of Series A
Preferred Stock, voting together as a single class.  

        10.       Fractional
Shares.  Series A Preferred Stock may be issued in           fractions of a share
which shall entitle the holder, in proportion to such           holder’s fractional
shares, to exercise voting rights, receive dividends,           participate in
distributions and to have the benefit of all other rights of           holders of Series A
Preferred Stock.  

A-4 

	 	
 

	 	
EXHIBIT
B  

[Form of Right
Certificate]  

	Certificate No. R- 	 _______
Rights   

NOT EXERCISABLE
AFTER FEBRUARY 21, 2015 (SUBJECT TO EXTENSION)
OR EARLIER IF REDEMPTION OR EXCHANGE
OCCURS. THE RIGHTS ARE 
SUBJECT TO REDEMPTION AT $.001 PER RIGHT AND TO EXCHANGE ON 
THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT. 

Right Certificate  

RIDGESTONE FINANCIAL
SERVICES, INC.  

        This
certifies that ________________, or registered assigns, is the registered owner of the
number of Rights set forth above, each of which entitles the owner thereof, subject to the
terms, provisions and conditions of the Rights Agreement, dated as of February 10, 2005,
and as such agreement may be amended (the “Rights Agreement”), between
Ridgestone Financial Services, Inc., a Wisconsin corporation (the “Company”),
and Continental Stock Transfer & Trust Company (the “Rights Agent”), to
purchase from the Company at any time after the Distribution Date (as such term is defined
in the Rights Agreement) and prior to 5:00 P.M., New York, New York time, on February
21, 2015, subject to extension, at the principal office of the Rights Agent, or at
the office of its successor as Rights Agent, one one-hundredth of one fully paid
nonassessable (except as otherwise provided by any corporation law applicable to the Company)
share of Series A Junior Participating Preferred Stock, no par value
(“Preferred Shares”), of the Company, at a purchase price of $40.00 per one
one-hundredth of a Preferred Share (the “Purchase Price”), upon presentation and
surrender of this Right Certificate with the Form of Election to Purchase duly executed.
The number of Rights evidenced by this Right Certificate (and the number of one
one-hundredths of a Preferred Share which may be purchased upon exercise hereof) set forth
above, and the Purchase Price set forth above, are the number and Purchase Price as of
February 21, 2005, based on the Preferred Shares as constituted at such date. As provided
in the Rights Agreement, the Purchase Price and the number of one one-hundredths of a
Preferred Share which may be purchased upon the exercise of the Rights evidenced by this
Right Certificate are subject to modification and adjustment upon the happening of certain
events. 

        This
Right Certificate is subject to all of the terms, provisions and conditions of the Rights
Agreement, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is hereby made
for a full description of the rights, limitations of rights, obligations, duties and
immunities hereunder of the Rights Agent, the Company and the holders of the Right
Certificates. Copies of the Rights Agreement are on file at the principal executive
offices of the Company and the above-mentioned offices of the Rights Agent. 

B-1 

        This
Right Certificate, with or without other Right Certificates, upon surrender at the
principal office of the Rights Agent, may be exchanged for another Right Certificate or
Right Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number of Preferred Shares as the Rights evidenced by the Right
Certificate or Right Certificates surrendered shall have entitled such holder to purchase.
If this Right Certificate shall be exercised in part, the holder shall be entitled to
receive upon surrender hereof another Right Certificate or Right Certificates for the
number of whole Rights not exercised. 

        Subject
to the provisions of the Rights Agreement, the Rights evidenced by this Certificate may be
redeemed by the Company at a redemption price of $.001 per Right. 

        The
Board of Directors of the Company may, at its option, at any time after any Person becomes
an Acquiring Person, but prior to such Person’s acquisition of 50% or more of the
outstanding shares of Common Stock, no par value (“Common Stock”), of the
Company, exchange the Rights evidenced by the certificates for Preferred Shares or shares
of Common Stock, at an exchange ratio of one one-hundredth of a Preferred Share or one
share of Common Stock, as the case may be, per Right, subject to adjustment, as provided
in the Rights Agreement. 

        No
fractional Preferred Shares will be issued upon the exercise of any Right or Rights
evidenced hereby (other than fractions which are integral multiples of one one-hundredth
of a Preferred Share, which may, at the election of the Company, be evidenced by
depositary receipts), but in lieu thereof a cash payment will be made, as provided in the
Rights Agreement. 

        No
holder of this Right Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of the Preferred Shares or of any other securities of
the Company which may at any time be issuable on the exercise hereof, nor shall anything
contained in the Rights Agreement or herein be construed to confer upon the holder hereof,
as such, any of the rights of a shareholder of the Company or any right to vote for the
election of directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting shareholders (except as provided in the Rights Agreement), or
to receive dividends, distributions or subscription rights, or otherwise, until the Right
or Rights evidenced by this Right Certificate shall have been exercised as provided in the
Rights Agreement. 

        This
Right Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by the Rights Agent. 

B-2 

        WITNESS
the facsimile signature of the proper officers of the Company and its corporate seal. 

	ATTEST:

		RIDGESTONE FINANCIAL SERVICES, INC.

 
	  
		By:   	  

	  		Title:   	  

	Dated:

Countersigned:

CONTINENTAL STOCK TRANSFER &
TRUST COMPANY

 		
	By:   	  
			  
		Authorized Signature 			  

B-3 

[Form of Reverse Side
of Right Certificate]  

FORM OF ASSIGNMENT
 

(To be executed by the
registered holder if such
holder desires to
transfer the Right Certificate.)  

	        FOR
VALUE RECEIVED _______________________________ hereby sells, assigns and
transfers unto ___________________________________________________________________________________________

	(Please
print name and address of transferee)     

	
this Right Certificate, together with all right, title and interest therein, and does
hereby irrevocably constitute and appoint ___________________ Attorney, to transfer the
within Right Certificate on the books of the within-named Company, with full power of
substitution. 

	
Dated:  ____________,
____  

	 	
  

	 	
Signature 

	
Signature
Guaranteed:  

	        The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not
beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined
in the Rights Agreement).  

	 	
  

	 	
Signature 

	
 

B-4 

[Form of Reverse Side
of Right Certificate — continued]  

FORM OF ELECTION TO
PURCHASE  

(To be executed if
holder desires to
exercise the Right
Certificate.)  

	
To
RIDGESTONE FINANCIAL SERVICES, INC.:  

	        The
undersigned hereby irrevocably elects to exercise  __________________  Rights represented
by this Right  Certificate  to purchase the  Preferred  Shares  issuable  upon the
 exercise of such Rights and  requests  that certificates for such Preferred Shares be
issued in the name of:  

	
Please
insert social security or other identifying number  

	 

	(Please
print name and address)     

	 

	
If
such number of Rights shall not be all the Rights evidenced by this Right  Certificate,
 a new Right Certificate for the balance remaining of such Rights shall be registered in
the name of and delivered to: 

	
Please
insert social security or other identifying number 

	 

	(Please
print name and address)     
	 

	
Dated:
  ____________, ____ 

	 	
  

	 	
Signature 

	
Signature
Guaranteed:  

B-5 

	
[Form
of Reverse Side of Right Certificate — continued]  

	
 

	        The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not
beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as defined
in the Rights Agreement). 

	 	
  

	 	
Signature 

	
 

NOTICE

	        The
signature in the foregoing Forms of Assignment and Election must conform to the name as
written upon the face of this Right Certificate in every particular, without alteration or
enlargement or any change whatsoever.

	        In
the event the certification set forth above in the Form of Assignment or the Form of
Election to Purchase, as the case may be, is not completed, the Company and the Rights
Agent will deem the beneficial owner of the Rights evidenced by this Right Certificate to
be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights
Agreement) and such Assignment or Election to Purchase will not be honored.  

B-6 

	 	
 

	 	
EXHIBIT
C  

RIDGESTONE FINANCIAL
SERVICES, INC.  

SUMMARY OF RIGHTS TO
PURCHASE
PREFERRED SHARES  

        On
February 10, 2005, the Board of Directors of Ridgestone Financial Services, Inc. (the
“Company”) declared a dividend of one preferred share purchase right (a
“Right”) for each outstanding share of common stock, no par value (“Common
Shares”), of the Company. The dividend is payable upon the close of business on
February 21, 2005 to the shareholders of record upon the close of business on such date
(the “Record Date”). Each Right entitles the registered holder to purchase from
the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock,
no par value (“Preferred Shares”), of the Company, at a price of $40.00 per one
one-hundredth of a Preferred Share, subject to adjustment (the “Purchase
Price”). The description and terms of the Rights are set forth in a Rights Agreement
(the “Rights Agreement”) between the Company and Continental Stock Transfer
& Trust Company, as Rights Agent (the “Rights Agent”). 

        Until
the earlier to occur of (i) 10 days following a public announcement that a person or group
of affiliated or associated persons (other than the Company, a subsidiary of the Company
or an employee benefit plan of the Company or a subsidiary or certain other persons) (an
“Acquiring Person”) has acquired beneficial ownership of 10% or more of the
outstanding Common Shares (the “Shares Acquisition Date”) or (ii) 10 business
days (or such later date as may be determined by action of the Company’s Board of
Directors prior to such time as any person becomes an Acquiring Person) following the
commencement of, or announcement of an intention to make, a tender offer or exchange offer
the consummation of which would result in the beneficial ownership by a person or group
(other than the Company, a subsidiary of the Company or an employee benefit plan of the
Company or a subsidiary or certain other persons) of 10% or more of such outstanding Common Shares (the earlier of
such dates being called the “Distribution Date”), the Rights will be evidenced,
with respect to any of the Common Share certificates outstanding as of the Record Date, by
such Common Share certificate. 

        The
Rights Agreement provides that, until the Distribution Date, the Rights will be
transferred with and only with the Common Shares. Until the Distribution Date (or earlier
redemption or expiration of the Rights), new Common Share certificates issued after the
Record Date, upon transfer or new issuance of Common Shares, will contain a notation
incorporating the Rights Agreement by reference. Until the Distribution Date (or earlier
redemption or expiration of the Rights), the surrender for transfer of any certificates
for Common Shares, outstanding as of the Record Date, even without such notation, will
also constitute the transfer of the Rights associated with the Common Shares represented
by such certificate. As soon as practicable following the Distribution Date, separate
certificates evidencing the Rights (“Right Certificates”) will be mailed to
holders of record of the Common Shares as of the close of business on the Distribution
Date and such separate Right Certificates alone will evidence the Rights. 

        The
Rights are not exercisable until the Distribution Date. The Rights will expire on February
21, 2015 (the “Final Expiration Date”), subject to extension, unless the Rights
are earlier redeemed or exchanged by the Company, in each case as described below. 

C-1 

        The
Purchase Price payable, and the number of Preferred Shares or other securities or property
issuable, upon exercise of the Rights are subject to adjustment from time to time to
prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or
reclassification of, the Preferred Shares, (ii) upon the grant to holders of the Preferred
Shares of certain rights or warrants to subscribe for or purchase Preferred Shares at a
price, or securities convertible into Preferred Shares with a conversion price, less than
the then current market price of the Preferred Shares or (iii) upon the distribution to
holders of the Preferred Shares of evidences of indebtedness or assets (excluding regular
quarterly cash dividends or dividends payable in Preferred Shares) or of subscription
rights or warrants (other than those referred to above). 

        The
number of outstanding Rights and the number of one one-hundredths of a Preferred Share
issuable upon exercise of each Right are also subject to adjustment in the event of a
stock split of the Common Shares or a stock dividend on the Common Shares payable in
Common Shares or subdivisions, consolidations or combinations of the Common Shares
occurring, in any such case, prior to the Distribution Date. 

        Preferred
Shares purchasable upon the exercise of Rights will not be redeemable. Each Preferred
Share will be entitled to a minimum preferential quarterly dividend payment of $1.00 per
share but will be entitled to an aggregate dividend of 100 times the dividend declared per
Common Share. In the event of liquidation, the holders of the Preferred Shares will be
entitled to a minimum preferential liquidation payment of $100 per share but will be
entitled to an aggregate payment of 100 times the payment made per Common Share. Each
Preferred Share will have 100 votes, voting together with the Common Shares. Finally, in
the event of any merger, consolidation or other transaction in which Common Shares are
exchanged, each Preferred Share will be entitled to receive 100 times the amount received
per Common Share. These rights are protected by customary antidilution provisions. 

        Because
of the nature of the Preferred Shares’ dividend, voting and liquidation rights, the
value of the one one-hundredth interest in a Preferred Share purchasable upon exercise of
each Right should approximate the value of one Common Share. 

        In
the event that any person becomes an Acquiring Person (a “Flip-In Event”), each
holder of a Right (except as otherwise provided in the Rights Agreement) will thereafter
have the right to receive upon exercise that number of Common Shares (or, in certain
circumstances cash, property or other securities of the Company or a reduction in the
Purchase Price) having a market value of two times the then current Purchase Price.
Notwithstanding any of the foregoing, following the occurrence of a Flip-In Event all
Rights that are, or (under certain circumstances specified in the Rights Agreement) were,
or subsequently become beneficially owned by an Acquiring Person, related persons and
transferees will be null and void. 

        In
the event that, at any time following the Shares Acquisition Date, (i) the Company is
acquired in a merger or other business combination transaction or (ii) 50% or more of its
consolidated assets or earning power are sold (the events described in clauses (i) and
(ii) are herein referred to as “Flip-Over Events”), proper provision will be
made so that each holder of a Right (except as otherwise provided in the Rights Agreement)
will thereafter have the right to receive, upon the exercise thereof at the then current
Purchase Price, that number of shares of common stock of the acquiring company which at
the time of such transaction will have a market value of two times the then current
Purchase Price. 

        With
certain exceptions, no adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least 1% in such Purchase Price. No fractional
Preferred Shares will be issued (other than fractions which are integral multiples of one
one-hundredth of a Preferred Share, which may, at the election of the Company be evidenced
by depositary receipts). In lieu thereof, an adjustment in cash will be made based on the
market price of the Preferred Shares on the last trading day prior to the date of
exercise. 

        The
Purchase Price is payable by certified check, cashier’s check, bank draft or money
order or, if so provided by the Company, the Purchase Price following the occurrence of a
Flip-In Event and until the first occurrence of a Flip-Over Event may be paid in Common
Shares having an equivalent value. 

C-2 

        At
any time after a person becomes an Acquiring Person and prior to the acquisition by such
Acquiring Person of 50% or more of the outstanding Common Shares, the Board of Directors
of the Company may exchange the Rights (other than Rights owned by any Acquiring Person
which have become void), in whole or in part, at an exchange ratio of one Common Share, or
one one-hundredth of a Preferred Share (or of a share of a class or series of the
Company’s preferred stock having equivalent rights, preferences and privileges), per
Right (subject to adjustment). 

        At
any time prior to a person becoming an Acquiring Person, the Board of Directors of the
Company may redeem the Rights in whole, but not in part, at a price of $.001 per Right
(the “Redemption Price”). The redemption of the Rights may be made effective at
such time, on such basis and with such conditions as the Board of Directors in its sole
discretion may establish. Immediately upon any redemption of the Rights, the right to
exercise the Rights will terminate and the only right of the holders of Rights will be to
receive the Redemption Price. 

        Other
than amendments that would change the Redemption Price or move to an earlier date the
Final Expiration Date of the Rights, the terms of the Rights may be amended by the Board
of Directors of the Company without the consent of the holders of the Rights, except that
from and after such time as any person becomes an Acquiring Person no such amendment may
adversely affect the interests of the holders of the Rights. 

        Until
a Right is exercised, the holder thereof, as such, will have no rights as a shareholder of
the Company, including, without limitation, the right to vote or to receive dividends. 

        A
copy of the Rights Agreement has been filed with the Securities and Exchange Commission as
an Exhibit to a Current Report on Form 8-K with respect to the Rights. A copy of the
Rights Agreement is also available free of charge from the Company. This summary
description of the Rights does not purport to be complete and is qualified in its entirety
by reference to the Rights Agreement, which is hereby incorporated herein by reference. 

C-3Exhibit 10.1 - Asset Purchase Agreement

ASSET PURCHASE AGREEMENT

               
THIS AGREEMENT (the "Agreement") is made as of the 11th day of
February, 2005, by and among SPECTRUM MICROWAVE, INC., a Delaware corporation
having an office at 8031 Avonia Road, Fairview, Pennsylvania 16415 (the "Purchaser");
and AMPLIFONIX, INC., a Delaware corporation having an office at 2707
Black Lake Place, Philadelphia, Pennsylvania 19154 (the "Seller"), R.
LAKE ASSOCIATES, a Pennsylvania partnership having at office at 2707 Black Lake
Place, Philadelphia, Pennsylvania 19154 ("RLA"), and DR. ARTHUR RIBEN, an
individual, residing at 2430 Riviera Drive, Delray Beach, Florida 33445 (the "Shareholder").

BACKGROUND STATEMENT

               
Seller and RLA desire to sell to Purchaser, and Purchaser desires to purchase
from Seller and RLA, certain assets owned by Seller and RLA, respectively, and
to assume certain liabilities of Seller associated with its business, upon and
subject to the terms and conditions of this Agreement.

               
Shareholder owns all of the capital stock of Seller and agrees to enter into
certain agreements in connection with such transaction.

TERMS OF AGREEMENT 

               
NOW, THEREFORE, in consideration of the mutual covenants and promises contained
in this Agreement, and for other good and valuable consideration, the receipt
and adequacy of which is hereby acknowledged, Purchaser, Seller, RLA and
Shareholder agree as follows:

1.     DEFINITIONS

        1.1     
Defined Terms. As used in this Agreement, the terms that are
underlined or listed below shall have the following meanings:

               
"Accounts Receivable" shall mean all trade and accounts receivable of
Seller of any kind whatsoever.

               
"Affiliate" shall mean, as to any Person, any other Person which directly
or indirectly controls, or is under common control with, or is controlled by,
such Person. As used in this definition "control" (including, with its
correlative meanings, "controlled by" and "under common control with") shall
mean possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of securities,
ownership of partnership or other equity interests, by contract or otherwise).

-2-

               
"Agreement" shall mean this Asset Purchase Agreement, together with the
Disclosure Schedules, the Schedules and Exhibits attached to this Agreement and
the certificates and instruments to be executed and delivered in connection with
this Agreement.

               
"Assumed Contracts" shall mean only those Contracts identified on 
Schedule 1.1(A) together with such other Contracts, if any, which Purchaser
may elect in writing to assume on or prior to the Closing Date.

               
"Assumed Liabilities" shall mean the following liabilities of the Seller
and only such liabilities: 

	 	(a) 	the Assumed Expenses;
	 	 	 
	 	(b) 	Seller's liabilities under the Assumed Contracts except for
    (i) any contingent liabilities, other than the Warranty Obligations, arising
    from performance of the Assumed Contracts, or from events or conditions
    related thereto occurring or existing, prior to the Closing Date and (ii)
    any liability or obligation for overpayments or prepayments by customers of
    Seller prior to Closing; and
	 	 	 
	 	(c) 	the Warranty Obligations.

               
"Assumed Expenses" shall mean:

	 	(a) 	the obligations and liabilities of Seller under purchase
    orders for raw materials, supplies and services incurred in the ordinary
    course of business as of the Closing Date that are not past due ("Trade
    Payables");
	 	 	 
	 	(b) 	Seller's obligations to pay its employees or agents a
    commission or bonus for sales made prior to the Closing Date, where the sale
    has given rise to an Account Receivable outstanding as of the Effective Time
    and the employee or agent is not entitled to receive such commission or
    bonus until such time as the corresponding Account Receivable has been paid
    in full and expenses of Seller (other than Trade Payables) accrued in the
    ordinary course of the Business, and not past due, all of which are listed
    on Schedule 1.1(B) and not exceeding $100,000 in the aggregate;
	 	 	 
	 	
    (c) 	any liabilities owed by Seller to the
    Transferred Employees for accrued vacation and accrued sick leave
    attributable to periods prior to the Closing Date ("Accrued Benefits");
    provided however that, for clarification, (A) Purchaser is not assuming any
    severance benefits that any Transferred Employees may have that arise upon
    termination of their employment with 

-3-

	 	 	Seller, and (B) Purchaser shall grant
    vacation and sick time benefits included in the Accrued Benefits to each
    Transferred Employee in the ordinary course of business or pay each
    Transferred Employee the value thereof upon such Transferred Employee's
    termination of employment with Purchaser; and

               
"Business" shall mean the Seller's operations and business as conducted
on the date of this Agreement and such business for which research, development
or significant planning has been commenced by Seller.

               
"Business Records" shall mean all originals of all data and records of
the Seller in its possession or control, subject to Seller's record retention
policies, which relate to the Purchased Assets or the operation of the Business
including, but not limited to, purchase and sale orders and invoices, sales and
sales promotional data, advertising materials, marketing analyses, past and
present price lists, past and present customer service files, credit files, cost
data, written operating methods and procedures, operating records and other
information related to the Tangible Personal Property, personnel records for the
Transferred Employees and other records, on whatever media, pertaining directly
and exclusively to the Purchased Assets or customers or suppliers of, or any
other parties having Contracts or other business relationships with, Seller
relating to the Business but not including any Excluded Assets; provided that,
in the case of personnel records, Seller may provide Purchaser with copies at
Seller's expense.

               
"Closing Date" shall mean February 11, 2005, except that if all of the
conditions to Closing set forth in Article 7 of this Agreement shall not have
been satisfied or waived on or prior to such date, "Closing Date" shall mean the
third business day after the satisfaction or waiver of all such conditions to
Closing, or on such other date as the parties may agree.

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

               
"Contracts" shall mean any agreement, contract, obligation, promise or
undertaking (whether written or oral and whether express or implied) that is
legally binding.

               
"Customer Lists" shall mean all customer lists of Seller.

               
"Disclosure Schedules" shall mean the schedules containing lists required
by, and disclosing exceptions or qualifications to, Seller's, Shareholder's and
RLA's representations and warranties, which schedules are being delivered by
Seller to Purchaser concurrently with the execution and delivery of this
Agreement.

               
"Employee Pension Benefit Plan" shall have the meaning set forth in ERISA
Section 3(2).

-4-

               
"Employee Welfare Benefit Plan" shall have the meaning set forth in ERISA
Section 3(1).

               
"Encumbrance" shall mean with respect to any Person any mortgage, deed of
trust, pledge, lien, security interest, charge or other security arrangement of
any nature whatsoever, whether voluntarily or involuntarily given, including any
conditional sale or title retention arrangement, and any assignment, deposit
arrangement or lease intended as, or having the effect of, security and any
filed financing statement or other notice of any of the foregoing (whether or
not a lien or other encumbrance is created or exists at the time of the filing).

               
"Environmental, Health and Safety Liabilities" means any cost, damages,
expense, liability, obligation or other responsibility arising from the
requirements for compliance with, or arising from the violation of, any
applicable Environmental Law or Occupational Safety and Health Law and
consisting of or relating to:

               
(a)    any actions required to be taken to comply with applicable
Legal Requirements relating to environmental, health or safety matters or
conditions (including on-site or off-site contamination, occupational safety and
health and regulation of chemical substances or products);

               
(b)    fines, penalties, judgments, awards, settlements, legal or
administrative proceedings, damages, losses, claims, demands and response,
investigative, remedial or inspection costs and expenses resulting from any
requirements under Environmental Law or Occupational Safety and Health Law;

               
(c)    financial responsibility under Environmental Law or
Occupational Safety and Health Law for cleanup costs or corrective action,
including any investigation, cleanup, removal, containment, maintenance,
monitoring or other remediation or response actions ("Cleanup") required
by applicable Environmental Law or Occupational Safety and Health Law (whether
or not such Cleanup has been required or requested by any Governmental Body or
any other Person) with authority to require such Cleanup; or

               
(d)    any other compliance, corrective, investigative or
remedial measures required under the applicable Environmental Law or
Occupational Safety and Health Law.

               
The terms "removal," "remedial" and "response action," include the types of
activities covered by the United States Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., as amended ("CERCLA").

               
"Environmental Condition" shall mean the existence or threat of any
Release into the environment of any Hazardous Substance at concentrations
requiring investigation and/or remediation under any Environmental Law, or
exposure to Hazardous Materials at concentrations above levels permissible under
applicable Environmental Laws.

-5-

               
"Environmental Law" shall mean any applicable federal, state, local or
foreign statutes, ordinances or other laws, any rules or regulations promulgated
thereunder, and any licenses, permits, orders, judgments, notices or other
requirements lawfully issued pursuant thereto and applicable to Seller's
business, any of the Facilities, or any operations thereat (including, but not
limited to, laws regulating the identification, reporting, generation,
manufacture, processing, distribution, use, treatment, storage, disposal,
transport or threatened release of, any pollutants, contaminants, wastes or any
other substances or materials) relating to pollution or protection of the
environment (including, but not limited to, ambient air, surface water,
groundwater, land surface or sub-surface strata, whether outside, inside or
under any structure). Without limiting the generality of the foregoing,
Environmental Laws shall include CERCLA, the Toxic Substances Control Act, as
amended, the Hazardous Materials Transportation Act, as amended, the Resource
Conservation and Recovery Act, as amended, the Clean Water Act, as amended, the
Safe Drinking Water Act, as amended, the Clean Air Act, as amended, the Atomic
Energy Act of 1954, as amended, the Occupational Safety and Health Act, as
amended, and all analogous laws enacted, promulgated or lawfully issued by the
United States, any state of the United States or any political subdivision of
any such state.

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

               
"Excluded Assets" shall mean:

	 	(1)	Cash, cash equivalents and marketable securities (determined
    in accordance with GAAP) of Seller;
	 	 	 
	 	(2)	All financial, accounting and bookkeeping books and records,
    and the minute books of Seller;
	 	 	 
	 	(3)	All assets related to any Employee Welfare Plan and any
    Employee Benefit Plan, which plans shall remain intact following the
    Closing;
	 	 	 
	 	(4)	Any and all tax credits and tax refunds relating to the
    operation of the Business; 
	 	 	 
	 	(5)	Any permits of Seller relating to the Business that are not
    assignable to Purchaser; 
	 	 	 
	 	(6)	Seller's partnership interest in RLA; and
	 	 	 
	 	(7)	The assets listed on Schedule 1.1(C), if any.
	 	 	 
	 	(8)	Life insurance contracts on the lives of Shareholder,
    Michael Smith and Daniel Riben.

-6-

               
"Facilities" shall mean (i) the Real Property and (ii) any real property
previously owned or leased by Seller.

               
"GAAP" shall mean generally accepted accounting principles of the United
States.

               
"Goodwill" shall mean the goodwill of the Business.

               
"Governmental Authority" shall mean any federal, state, local or foreign
government, or any political subdivision of any of the foregoing, or any court,
agency or other entity, body, organization or group, exercising any executive,
legislative, judicial, quasi-judicial, regulatory or administrative function of
government.

               
"Hazardous Activity" shall mean the distribution, generation, handling,
importing, management, manufacturing, processing, production, refinement,
Release, storage, transfer, transportation, treatment or use (including any
withdrawal or other use of groundwater) of Hazardous Materials in, on, under,
about or from the Facilities or any part thereof, and any other act, business,
operation or thing that increases the danger, or risk of danger, or poses an
unreasonable risk of harm to persons or property or the environment on or off
the Facilities.

               
"Hazardous Materials" shall mean any pollutants, contaminants, chemicals,
wastes and any carcinogenic, ignitable, corrosive, reactive, toxic or other
Hazardous Materials or materials, whether solids, liquids or gases (including,
but not limited to, petroleum and its derivatives, PCBs, asbestos, radioactive
materials, waste waters, sludges, slag and any other substance, material or
waste) that are subject to regulation or remediation under any Environmental
Law.

               
"HSR Act" shall mean the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended, and the regulations promulgated pursuant thereto.

               
"Intellectual Property" means collectively, any of the following types of
intangible assets: (i) all inventions (whether patentable or unpatentable and
whether or not reduced to practice), all improvements thereto, and all patents,
patent applications, and patent disclosures, together with all reissuances,
continuations, continuations-in-part, revisions, extensions, and re-examinations
thereof, (ii) all trademarks, service marks, trade dress, logos, trade names,
and corporate names, together with all translations, adaptations, derivations,
and combinations thereof and including all goodwill associated therewith, and
all applications, registrations, and renewals in connection therewith, (iii) all
copyrightable works, all copyrights, and all applications, registrations and
renewals in connection therewith, (iv) all mask works and all applications,
registrations, and renewals in connection therewith, (v) all trade secrets and
confidential business information (including ideas, research and development,
know-how-formulas, compositions, manufacturing and production processes and
techniques, technical data, designs, drawings, specifications, customer and
supplier lists, pricing and cost information, and 

-7-

business and marketing plans and proposals), (vi) all computer software
(including data and related documentation and including software installed on
hard disk drives), (vii) all copies and tangible embodiments thereof (in
whatever form or medium), (viii)all joint or partial interests in any of the
foregoing; and (ix) all domain names, url's, and telephone and facsimile
numbers.

               
"Inventory" shall mean all raw material, work-in-process and finished
goods inventories of Seller, wherever located.

               
"Legal Requirement" shall mean any federal, state, local, municipal,
foreign, international, multinational, administrative or other order,
constitution, law, ordinance, principle of common law, regulation, statute or
treaty.

               
"Material Adverse Event" shall mean any occurrence or action the effect
of which is material and adverse to the Purchased Assets, the Real Property or
the business, assets, liabilities, results of operations or prospects of the
Business; provided, however, that a Material Adverse Event shall
not be deemed to include the impact of (i) changes in applicable law or Legal
Requirements of general applicability or any implementation thereof by courts or
Governmental Authorities or (ii) the effects of the transactions contemplated
by, or compliance by either party with the provisions of, this Agreement on the
Purchased Assets or the business, assets, liabilities, results of operations or
prospects of the Business.

               
"Multiemployer Plan" shall have the meaning set forth in ERISA Section
3(37) or ERISA Section 4001.

               
"Occupational Safety and Health Law" shall mean any Legal Requirement
designed to provide safe and healthful working conditions and to reduce
occupational safety and health hazards.

               
"Other Current Assets" shall mean all prepaid expenses and deposits of
the Business.

               
"PBGC" shall mean the Pension Benefit Guaranty Corporation.

               
"Permits" shall mean all licenses, permits and other authorizations
required from any Governmental Authority or other Person in connection with
Seller carrying on the Business as presently conducted.

               
"Permitted Encumbrance" shall mean (i) liens for Taxes not yet due and
payable or for Taxes that the taxpayer is contesting in good faith through
appropriate proceedings or (ii) other liens arising in the ordinary course of
business (but not including any mechanic's or similar lien) that were not
incurred in connection with the borrowing of money and which will not materially
impair Purchaser's use of the Purchased Assets after the Closing.

-8-

               
"Person" shall mean any corporation, governmental authority, individual,
partnership, trust or other entity.

               
"Proceeding" shall mean any action, order, writ, injunction, judgment,
decree, claim, suit, litigation, dispute, grievance, arbitral action,
investigation or other proceeding.

               
"Purchased Assets" shall mean all right, title and interest of Seller in
and to all of the assets of Seller (other than the Excluded Assets) used in the
Business including, without limitation, the following:

               
(1)     the Assumed Contracts;

               
(2)     the Business Records;

               
(3)     the Customer Lists;

               
(4)     the Goodwill;

               
(5)     the Purchased Intellectual Property;

               
(6)     the Inventory;

               
(7)     the Other Current Assets;

               
(8)     the Permits (to the extent assignable);

               
(9)     the Tangible Personal Property; and

               
(10)   the Accounts Receivable.

The Purchased Assets shall also include the additional assets, if any,
identified on Schedule 1.1(D).

               
"Purchased Intellectual Property" means all of the Intellectual Property
listed or required to be listed on Schedule 4.8, including, but not
limited to, the Amplifonix tradename and trademark.

               
"Real Property" shall mean the real property and improvements thereon
located at 2707 Black Lake Place, Philadelphia, Pennsylvania 19154, owned by RLA
and described on Schedule 4.6, and leased by Seller for the Business.

               
"Release" shall mean any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, migration, dumping or
disposing into the environment.

-9-

               
"Reportable Event" shall have the meaning set forth in ERISA Section
4043.

               
"Representative" shall mean any officer, director, principal, attorney,
agent, employee or other representative of any Person.

               
"Seller's Auditors" shall mean Fishbein & Company, P.C.

               
"Tangible Personal Property" shall mean all tangible personal property
(other than Excluded Assets) owned by Seller and used directly or indirectly to
conduct the Business including, without limitation, all production and
processing equipment, warehouse equipment, computer hardware, furniture and
fixtures, transportation equipment, leasehold improvements, tooling, supplies
and other tangible personal property located at the Real Property, together with
any transferable manufacturer or vendor warranties related thereto.

               
"Tax" shall mean any federal, state, local or foreign income, gross
receipts, license, payroll, employment, excise, severance, startup, occupation,
premium, windfall profits, environmental (including taxes under Code Section
59A), customs duties, capital stock, franchise, profits, withholding, social
security (or similar), unemployment, disability, real property, personal
property, intangible property, sales, use, transfer, registration, value added,
alternative or add-on minimum, estimated, or other tax of any kind whatsoever,
including any interest, penalty or addition thereto, whether disputed or not and
arising prior to the Closing Date.

               
"Tax Return" shall mean any return, declaration, report, claim for
refund, or information return or statement relating to Taxes, including any
schedule or attachment thereto, and any amendment thereof.

        1.2     
Other Defined Terms. The following terms shall have meanings defined for
such terms in the Sections set forth below:

	 	Term 	Section
	 	Acquisition Proposal 	8.11(b)
	 	Applicable Contract 	4.13
	 	Assignment and Assumption Agreement 	3.2(a)(iii)
	 	Audited Financial Statements 	4.9(a)
	 	Basket 	9.3(b)(ii)
	 	Benefit Arrangement 	4.10(a)
	 	Bill of Sale 	3.2(a)(ii)
	 	Business Purchase Price 	2.2
	 	City Certification 	8.6(c)
	 	Closing 	3.1
	 	COBRA 	4.10(i)

-10-

	 	Confidential Information 	11.2
	 	Disapproved Encumbrances 	8.6(d)
	 	Defect Notice 	8.6(d)
	 	Dispute 	9.8(a)
	 	Dispute Notice 	9.8(a)
	 	Effective Time 	3.1
	 	Employee Plan 	4.10(a)
	 	Endorsements 	8.6(a)
	 	ERISA Affiliate 	4.10(h)
	 	Escrow Agent 	2.3(b)
	 	Escrow Agreement 	2.3(b)
	 	Escrow Funds 	2.3(b)
	 	Financial Statements 	4.9
	 	Indemnified Person 	9.2
	 	Indemnifying Person 	9.2
	 	Knowledge 	1.4
	 	Losses 	9.2
	 	Non-Transferable Assets 	3.3
	 	Novation Agreements 	3.2(a)(iv)
	 	Pension Plans 	4.10(a)
	 	Permitted Title Encumbrances 	8.6(a)
	 	Physical Inventory 	2.6
	 	Purchaser's Indemnified Persons 	9.2
	 	Real Property Price 	2.2
	 	Restricted Activity 	11.1
	 	Retained Liabilities 	2.4
	 	RLA Partnership Agreement 	4.4
	 	Seller's Indemnified Persons 	9.2
	 	Survey 	8.6(b)
	 	Termination Date 	10.2
	 	Title Commitment 	8.6(a)
	 	Title Company 	8.6(a)
	 	Title Policy 	8.6(a)
	 	Third Party Action 	9.2
	 	Transferred Employees 	8.8(b)
	 	2004 Financial Statements 	4.9
	 	WARN Act 	8.8(e)
	 	Warranty Obligations 	8.10
	 	Welfare Plans 	4.10(a)

        1.3     
Usage of Terms. Except where the context otherwise requires, words
importing the singular number shall include the plural number and vice versa.

-11-

        1.4     
Knowledge. An individual will be deemed to have "Knowledge"
or "knowledge" of a particular fact or other matter if:

               
(a)    
such individual is actually aware of such fact or other matter; or

               
(b)   
a prudent individual could be expected to discover or otherwise
become aware of such fact or other matter in the course of conducting a
reasonably comprehensive investigation concerning the existence of such fact or
other matter.

A Person (other than an individual) will be deemed to
have "Knowledge" of a particular fact or other matter if any individual who is
serving, or who has at any time served since January 1, 2000, as a director,
officer, partner, or manager (as it might relate to an LLC) of such Person or
any subsidiary thereof (or in any similar capacity) has, or at any time had,
Knowledge of such fact or other matter. Without limiting the foregoing,
"Knowledge" of Seller means and shall include the Knowledge of the following
individuals: Shareholder, Robert A. Rosin, Michael Smith and Daniel Riben.

        1.5     
References to Articles, Sections, Exhibits and Schedules. All
references in this Agreement to Articles, Sections (and other subdivisions) and
Exhibits refer to the corresponding Articles, Sections (and other subdivisions)
and Exhibits of or attached to this Agreement, unless the context expressly, or
by necessary implication otherwise requires; and all references to the Schedules
refers to the Schedules included in the Disclosure Schedules, except Schedules
5.3 and 7.1(b) that are attached hereto.

2.     PURCHASE AND SALE OF
ASSETS

        2.1     
Transfer of Assets; Assumption of Assumed Liabilities. Subject to
the terms and conditions contained in this Agreement, on the Closing Date:

               
(a)     Seller shall sell, convey, transfer, assign,
and deliver to Purchaser, and Purchaser shall acquire from Seller, the Purchased
Assets, free and clear of any Encumbrances other than Permitted Encumbrances.

               
(b)     Purchaser shall assume, effective as of the
Closing Date, the Assumed Liabilities.

               
(c)     RLA shall sell, convey, transfer, assign, and
deliver to Purchaser, and Purchaser shall acquire from RLA, the Real Property,
free and clear of any Encumbrances other than Permitted Title Encumbrances.

        2.2     
Purchase Price. The purchase price for the Purchased Assets ("Business
Purchase Price") shall be equal to (i) $7,500,000 plus the (ii) Assumed
Liabilities. The purchase price for the Real Property shall be $2,500,000 (the "Real
Property Price").

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        2.3     
Payment of Closing Payment Payments. The Business Purchase Price
shall be paid as follows: 

               
(a)     At the Closing, Purchaser shall pay $250,000
of the Business Purchase Price (the "Escrowed Funds") by wire transfer
into an escrow account at Manufacturers and Traders Trust Company, Buffalo, New
York (the "Escrow Agent"), to be held and disbursed by the Escrow Agent
in accordance with the terms and conditions of an Escrow Agreement substantially
in the form attached hereto as Exhibit 2.3(a) (the "Escrow Agreement").

               
(b)     The balance of the Business Purchase Price
shall be paid to Seller at Closing by wire transfer of immediately available
funds to such bank account or accounts as may be designated by Seller in writing
not less than three (3) business days prior to Closing.

               
(c)     The Real Property Price shall be paid to RLA
at Closing by wire transfer of immediately available funds to the bank account
of the First American Title Insurance Company conducting the real estate
transfer in advance of Closing.

        2.4     
Liabilities Not Assumed. It is expressly understood and agreed
that with respect to the liabilities, debts, obligations and contracts of, and
claims against, Seller and RLA as of the Closing Date, other than the Assumed
Liabilities, Purchaser shall not assume, nor shall it be liable for, any
liability, debt, obligation, or Contract of Seller, RLA or any Affiliate
thereof, or any claim against any of the foregoing, of any kind or nature
whatsoever, at any time existing or asserted, whether or not accrued, whether
fixed, contingent or otherwise, whether known or unknown, and whether or not
recorded on the books and records of Seller or RLA, all of which shall be
retained by Seller and RLA, respectively, and which are hereafter referred to as
the "Retained Liabilities." Without limiting the foregoing, Purchaser
shall have no responsibility with respect to any of the following liabilities of
Seller and/or RLA (all of which shall be deemed to be Retained Liabilities)
whether or not disclosed on the Financial Statements:

               
(a)     except for the Assumed Expenses, any
liability of Seller or RLA for (i) accrued salaries and wages, vacation pay,
accrued bonuses and other employment benefits or commissions and related Taxes
and (ii) severance payments or other termination benefits payable to employees
of Seller or RLA, irrespective of whether such individuals are Transferred
Employees; Transferred Employees' salaries shall begin for the work performed
commencing February 12, 2005.

               
(b)     any liability of Seller, RLA or any ERISA
Affiliate thereof arising out of any Employee Plan or Benefit Arrangement
maintained, or contributed to, by Seller, RLA or any ERISA Affiliate thereof
including, without limitation, liabilities attributable to a complete or partial
withdrawal from a Multiemployer Plan or to the PBGC for benefit liabilities or
premiums due, any liability resulting from failure to provide continuation
coverage required by COBRA, any liabilities arising out of any nonqualified plan
or plans covering any employees or former 

-13-

employees of Seller or RLA, or any liability of Seller or RLA under any and
all medical, dental, disability or other employee welfare reimbursement plan or
any other plan of any nature whatsoever maintained by Seller or RLA for the
benefit of its employees or under any similar governmental plan to which Seller
or RLA is subject;

               
(c)     any liability of Seller or RLA relating to
the Excluded Assets or other government-imposed fees or charges arising out of
doing business in any jurisdiction where Seller or RLA is not qualified to do
business as a foreign corporation or partnership that would not have been
incurred if Seller or RLA had been so qualified; 

               
(d)     any liability of Seller or RLA for any
indebtedness, whether for borrowed money or otherwise, to any bank, bondholder,
trade or non-trade creditor (other than the Assumed Liabilities), customer,
employee, lessor, financial institution, government entity, trust company,
shareholder, director, officer, consultant, agent or other Person, either
directly or by reason of any guaranty or other Contract;

               
(e)     any liability of Seller or RLA arising after
the Closing Date, except for the Assumed Liabilities;

               
(f)     any obligations and liabilities arising from
the non-compliance by Seller or RLA with any Legal Requirement (including all
Environmental Laws) through the Closing Date, or attributable to or caused by
Seller, RLA or the Purchased Assets;

               
(g)     any liability for workers compensation
claims, general liability claims, automobile liability claims or any other
negligent act or omission of Seller or RLA, whether related to the Business or
otherwise arising out of acts or occurrences prior to, or commencing prior to,
the Closing Date;

               
(h)     any liability of Seller or RLA under any
Contract except for the Assumed Contracts; and

               
(i)     any liability of Seller or RLA for any Tax.

        2.5     
Allocation of Purchase Price. The total consideration payable
hereunder to Seller and RLA shall be allocated as set forth in this Section 2.5,
and the Business Purchase Price shall be allocated as soon as practicable (but
no later than 60 days) following the Closing Date on the basis set forth on 
Schedule 2.5. Unless otherwise agreed in writing by Purchaser, Seller and
RLA, Purchaser, Seller and RLA shall (a) reflect the Purchased Assets and Real
Property in their books and for tax reporting purposes in accordance with such
allocations, (b) file all forms required under Section 1060 of the Code and all
other tax returns and reports in accordance with and based upon such allocations
and (c) unless required to do so in accordance with a "determination" as defined
in Section 1313(a)(1) of the Code, take no position in any Tax Return, tax
proceeding, tax audit or otherwise which is inconsistent with such allocations.

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        2.6     
Physical Inventory; Financial Matters.

               
(a)     An inspection and physical count of the
Inventory and Tangible Personal Property shall be conducted by Representatives
of Seller and Purchaser immediately preceding the Closing Date to verify the
presence of such assets as identified in the Disclosure Schedules and the
Financial Statements. The inspection and test count may be observed by Seller's
auditors and by Purchaser's auditors. In connection with the physical inventory,
Seller shall provide an inventory listing (and calculate the inventory value)
and the inspection and test count shall be conducted in accordance with such
procedures as may be agreed upon by Seller and Purchaser. The cost of such
inspection and test count, other than the cost of Purchaser's auditors, shall be
borne by Seller. 

               
(b)     As soon as practicable following the Closing
(but taking into account the normal schedule of Seller's Auditors), Seller and
Purchaser shall cause the financial statements of Seller for the year ending
December 31, 2004 to be audited by Seller's Auditors. In connection therewith,
and at each party's expense, Seller and Purchaser shall provide access to all
books and records relating to the Business. The fees of Seller's Accountants
incurred in connection with such audit shall be paid for by Seller. Seller shall
cause Seller's Auditors to deliver a copy of Seller's audited 2004 financial
statements to Purchaser together with the statement thereon of Seller's
Auditors.

        2.7     
Transfer Taxes and Fees; Expenses; Prorations.

               
(a)     Purchaser and Seller shall each pay one-half
of any transfer, sales and similar Taxes imposed by reason of the transfer of
the Purchased Assets provided hereunder.

               
(b)     Purchaser and RLA shall each pay one-half of
all Pennsylvania state and local realty transfer taxes, recording fees and other
charges imposed by reason of the sale and conveyance of the Real Property to
Purchaser.

               
(c)     Seller shall pay all costs of obtaining the
necessary governmental and third party consents to transfer the Purchased Assets
and the Assumed Liabilities provided hereunder except those costs relating to
Purchaser's compliance with its representations and warranties and obtaining any
necessary export licenses or facility security clearances, which cost will be
borne by Purchaser only.

               
(d)     Whether or not the Closing is consummated all
costs and expenses incurred in connection with the negotiation, execution and
performance of this Agreement, including but not limited to legal and accounting
fees and expenses, shall be paid by the party that incurs such costs and
expenses except as expressly provided for in this Agreement.

               
(e)     All utilities used in the Business and all
real property taxes and other similar charges relating to the Real Property
shall be prorated as of the Effective Time.

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3.     CLOSING

        3.1     
Closing. The consummation of the transactions contemplated in this
Agreement (the "Closing") shall be held at 9:00 a.m. local time on the
Closing Date at the offices of Robert A. Rosin, Esq., 215 South Broad Street,
Philadelphia, PA 19107 or at such other place as shall be mutually agreed upon.
The Closing shall be effective at 11:59 p.m. on the Closing Date (also known as
the "Effective Time").

        3.2     
Instruments at Closing.

               
(a)     Deliveries by Seller, Shareholder and/or
RLA. Subject to all of the terms and conditions of this Agreement, at the
Closing, Seller, Shareholder and/or RLA, as applicable, will deliver:

               
(i)     a certificate executed by Seller as required
by Section 7.2(c) and a certificate executed by RLA as required by Section
7.2(d); 

               
(ii)     a bill of sale for
all of the Purchased Assets substantially in the form of Exhibit 3.2(a)(ii)
(the "Bill of Sale") duly executed by Seller;

               
(iii)     an assignment and
assumption agreement substantially in the form of Exhibit 3.2(a)(iii)
(the "Assignment and Assumption Agreement") duly executed by Seller;

               
(iv)     [Intentionally Omitted.]

               
(v)     Special Warranty Deed, FIRPTA certification
and such affidavits and other reasonably required documentation executed by RLA
and Seller transferring the Real Property to Purchaser as provided for in
Section 8.6; 

               
(vi)     such other deeds, bills of sale,
assignments, certificates of title, documents and other instruments of transfer
and conveyance as may reasonably be requested by Purchaser, each in form and
substance reasonably satisfactory to Purchaser and its legal counsel and duly
executed and delivered by Seller, Shareholder or RLA (as applicable) and such
UCC termination statements, releases and other documentation as Purchaser may
reasonably request to evidence that any Encumbrances, other than Permitted
Encumbrances on the Purchased Assets and Permitted Title Encumbrances on the
Real Property, have been removed prior to Closing; and

               
(vii)     updated Disclosure Schedules, if necessary,
delivered by Seller, in such form as is acceptable to Purchaser.

               
(b)     
Deliveries by Purchaser. Subject to all of the terms and
conditions of this Agreement, at the Closing, Purchaser will deliver:

-16-

               
(i)     the closing payments as provided for in
Section 2.3, in immediately available funds, to the Escrow Agent and to such
accounts as may be specified by Seller and RLA, respectively, in writing prior
to the Closing; 

               
(ii)     a certificate executed by Purchaser as
required by Section 7.3(b);

               
(iii)     the Bill of Sale duly executed by
Purchaser;

               
(iv)     the Assignment and Assumption Agreement duly
executed by Purchaser; and

               
(c)     Form of Instruments. All certificates,
agreements and instruments provided for in this Section 3.2 shall be in form and
substance, and shall be executed and delivered in a manner, reasonably
satisfactory to Seller, RLA and Purchaser and their counsel.

        3.3     
Non-Transferable Assets. It is understood that certain Purchased
Assets (including, without limitation, manufacturers', contractors' and other
warranties and guaranties, and one or more Assumed Contracts) may not be
immediately transferable or assignable to Purchaser, and Purchaser will allow
Seller to retain certain of such assets after the Closing Date (the "Non-Transferable
Assets"), and this Agreement shall not constitute an assignment of any such
Non-Transferable Assets. In such event, (i) Seller shall grant to Purchaser full
use and benefit of their interest in the Non-Transferable Assets to the extent
permitted by the terms of or applicable to such Non-Transferable Assets, it
being the intent of the parties that Purchaser shall have the benefit of the
Non-Transferable Assets as though it were the sole owner thereof, (ii) Seller
shall take all reasonable actions necessary to preserve the value of the
Non-Transferable Assets, (iii) Seller shall not transfer or assign the
Non-Transferable Assets to any Person other than Purchaser or Purchaser's
assigns, (iv) Seller shall transfer or assign the Non-Transferable Assets to
Purchaser at the earliest date, if any, on which such transfer or assignment can
be effected and (v) Purchaser shall be responsible for obligations relating to
such Non-Transferable Assets as if they had been transferred or assigned to
Purchaser in accordance with the terms of this Agreement; provided however that
all reasonable costs and expenses incurred by Seller in carrying out the
foregoing clauses (i), (ii) and (iv) shall be paid or reimbursed by Purchaser on
demand.

4.     REPRESENTATIONS AND
WARRANTIES OF SELLER AND SHAREHOLDER

        Seller, RLA and Shareholder,
jointly and severally, represent and warrant to Purchaser as follows: 

        4.1     
Organization. Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. Seller is
duly qualified as a foreign corporation to do business in Pennsylvania and all
other jurisdictions where the nature of the 

-17-

business transacted by Seller would require such qualification. Seller has
all corporate power and authority to own its property and to carry on its
business as now conducted by it. 

        RLA is a general partnership
formed under the laws of the Commonwealth of Pennsylvania. RLA has all power and
authority to own its property and to carry on its business.

        4.2     
Corporate Action; Legal, Valid and Binding Agreement. Seller has
all necessary power, and authority, and all necessary corporate action of Seller
has been properly taken, to authorize, execute and deliver this Agreement and
the instruments to be executed and delivered pursuant hereto and to consummate
the transactions contemplated hereby, and resolutions of the Board of Directors
of Seller certified by the Secretary or an Assistant Secretary of Seller and in
form reasonably satisfactory to counsel for Purchaser shall be delivered to
Purchaser at the Closing. This Agreement is the legal, valid and binding
agreement of Seller, enforceable in accordance with its terms. 

        All action required under the
organizational documents of RLA and under applicable Legal Requirements has been
properly taken to authorize, execute and deliver this Agreement and the
instruments to be executed and delivered by RLA pursuant hereto and to
consummate the sale of the Real Estate contemplated hereby, and certified by a
general partner of RLA and in form reasonably satisfactory to counsel for
Purchaser shall be delivered to Purchaser at the Closing. This Agreement is the
legal, valid and binding agreement of RLA, enforceable in accordance with its
terms.

        4.3     
No Violation; Consents and Approvals. Except as disclosed on 
Schedule 4.3, neither the execution, delivery nor performance of this
Agreement by the Seller. Shareholder or RLA, Shareholder or the documents
executed in connection herewith, nor the consummation of the transactions
contemplated hereby or thereby is prohibited by, is a violation of, is in
conflict with, constitutes a default under (whether such default would occur
with the passage of time, the giving of notice or both) or requires Seller,
Shareholder or RLA to obtain any consent, authorization or approval or
registration under, or gives any Person the right to accelerate the performance
of any obligation under (a) any term or provision of the certificate of
incorporation or the by-laws of the Seller, (b) any Contract or commitment to
which any of Seller, Shareholder, RLA or RLA's partners are bound, including but
not limited to any Contract or commitment relating to any bank or other
institutional loans or indebtedness of Seller or RLA, or (c) any judgment or any
Legal Requirement applicable to Seller or RLA. Except as set forth on 
Schedule 4.3, no consent, approval or authorization of, or declaration,
filing or registration with, any Person is required to be made or obtained by
Seller, Shareholder or RLA in connection with the execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated by this Agreement.

        4.4     
Corporate Records. Seller has delivered or made available to
Purchaser or Purchaser's counsel, for review, true and complete copies of
Seller's (a) certificate of 

-18-

incorporation and all amendments thereto, and (b) by-laws and all amendments
thereto. The certificate of incorporation of Seller has not been amended, except
and to the extent provided in any certificate of amendment heretofore delivered
to Purchaser or Purchaser's counsel.

        RLA has delivered to Purchaser or
Purchaser's counsel a true and complete copy of its partnership agreement as in
effect on the date hereof (the "RLA Partnership Agreement").

        4.5     
Taxes; Tax Returns. Seller and Shareholder have made a valid
election to treat Seller as, and Seller has qualified as, an S Corporation under
the Code and for state and local tax purposes in all jurisdictions in which
Seller is subject to Tax on its income, for each of its taxable years. Except as
set forth on Schedule 4.5, (i) Seller has duly filed all Tax reports and
Tax Returns required to be filed (including, but not limited to, all federal,
state, local and foreign tax returns and reports) with any Governmental
Authority and all such returns and reports were correct and complete in all
material respects; (ii) Seller and Shareholder have each paid in full all Taxes
required to be paid by Seller or Shareholder, respectively, before such payment
became delinquent, no deficiencies have been or will be assessed with respect
thereto for any period through December 31, 2004; (iv) all Taxes which Seller
has been required to collect or withhold have been duly collected or withheld
and, to the extent required when due, have been or will be duly paid to the
proper taxing authority; (v) there are no federal, state, local or foreign tax
liens upon any of the properties or assets of Seller, Shareholder or RLA and
there are no unpaid Taxes which are or could become a lien on the properties or
assets of Seller, Shareholder or RLA, except for current Taxes not yet due and
payable; and (vi) there have been no waivers of statutes of limitations as to
any Tax by Seller, Shareholder or RLA with respect to any Governmental
Authority. Correct and complete copies have been provided to Purchaser of (i)
all Tax Returns and Tax reports of Seller and RLA for each of its taxable years
since December 31, 2001, and (ii) all audit reports issued since 2001 relating
to Taxes due from Seller or RLA. The Tax Returns of Seller and RLA have been
examined by the Internal Revenue Service (the "IRS") and by the relevant
state or local taxing authority for the taxable periods shown on Schedule 4.5.
No closing agreement pursuant to Section 7121 of the Code or compromise pursuant
to Section 7122 of the Code (or any predecessor provision) or any similar
provision of any state, local, or foreign law has been entered into by Seller,
RLA or Shareholder. No audit or other Proceeding by any Governmental Authority
is pending or, to the Knowledge of Seller or RLA, threatened with respect to any
Taxes due from Seller, Shareholder, or RLA or any Tax Return filed by Seller or
RLA. No notice of any assessment of Tax against Seller or RLA or any of its
assets has been received by Seller or RLA. All elections made or filed by
Seller, Shareholder and RLA with respect to Taxes are set forth on Schedule
4.5. None of the assets of Seller or RLA is an asset or property that is or
will be required to be treated as being (i) owned by any Person other than
Seller or RLA, respectively, pursuant to the provisions of Section 168(f)(8) of
the Internal Revenue Code of 1954 as in effect immediately prior to the Tax
Reform Act of 1986, or (ii) "tax-exempt use property" within the meaning of
Section 168(h)(1) of the Code. Seller is not a "foreign person" within the
meaning of Section 1445 of the Code. For purposes of this Section 

-19-

4.5, any reference to Seller shall include any corporation which merged with
or was liquidated into Seller.

        4.6    
Real Property.

               
(a)     Title to the Real Property is in RLA (and is
described on Schedule 4.6).

               
(b)     Except as set forth on Schedule 4.6, (i)
Seller enjoys peaceful and undisturbed possession of the Real Property under its
lease therefor, (ii) the Real Property is not subject to any commitment for sale
or use by any Person other than the Seller, (iii) neither the Real Property nor
the leasehold interests with respect to the Real Property is subject to any
Encumbrance which in any material respect interferes with or impairs the value
or present and continued use thereof in the usual and normal conduct of the
Business, (iv) no labor has been performed or material furnished for the Real
Property for which a mechanic's or materialman's lien or liens, or any other
lien, has been or could be claimed by any Person, (v) the Real Property is in
compliance with all Legal Requirements (including without limitation all
building and other codes and all zoning, subdivision and other applicable land
use ordinances and by-laws), and all existing covenants, conditions,
restrictions and easements, and, to the Knowledge of the Seller, the current use
of the Facilities does not constitute a non-conforming use under the applicable
zoning ordinances, and (vi) no default or breach exists with respect to, and the
Seller has not received any notice of any default or breach under, any
Encumbrance affecting the Real Property. Seller has not received notice of, nor
does Seller have any Knowledge of any threatened, general or special assessments
affecting the Real Property or any portion thereof. Seller has not received
notice of, nor does Seller have any Knowledge of, any pending or threatened
Proceeding (including without limitation condemnation or eminent domain
proceeding) before any Governmental Authority which relates to the ownership,
maintenance, use or operation of the Real Property, nor does Seller know of any
fact which might give rise to any such Proceeding.

               
(c)     The Real Property is not located within any
area determined to be flood-prone under the Federal Flood Protection Act of
1973, or any comparable state or local Legal Requirement. Seller has not
received any notice from any insurance company of any defects or inadequacies in
the Real Property or any part thereof which would materially and adversely
affect the insurability of the Real Property or any property located thereat or
the premiums for the insurance thereof, and no notice has been given by any
insurance company which has issued a policy with respect to any portion of the
Real Property or by any board of fire underwriters (or other body exercising
similar functions) requesting the performance of any material repairs,
alterations or other work which has not been complied with.

               
(d)     To the Knowledge of Seller, all water, sewer,
gas, electric, telephone and drainage facilities and all other utilities
servicing the Real Property are installed to the improvements situated on the
Real Property, are connected pursuant to valid permits, enter the 

-20-

Real Property through adjoining public streets, are adequate for the present
operation of the Business and otherwise are in compliance in all material
respects with all Legal Requirements applicable thereto. Access to and from the
Real Property is via public streets.

               
(e)     The buildings and improvements at the Real
Property (including, without limitation, the heating, air conditioning,
mechanical, electrical and other systems used in connection therewith) are in a
good state of repair (ordinary wear and tear excepted) and have been well
maintained. There are no repairs or replacements exceeding $10,000 in the
aggregate for the Facilities or $5,000 for any single repair or replacement
which are currently contemplated by Seller or which, to the Knowledge of Seller,
should be made in order to maintain said buildings and improvements (i) in a
reasonable state of repair or (ii) in accordance with any notice from any
insurance company of Seller, other than any such repairs or replacements which
may become necessary in connection with any removal of equipment and tenant
improvements from the Real Property by Purchaser.

        4.7     
Tangible Personal Property. Schedule 4.7 sets forth (i) a
list as of December 31, 2004 of each item of Tangible Personal Property owned by
Seller and used in the Business having an original value in excess of $1,000,
and (ii) a list of each item of Tangible Personal Property leased by Seller and
used in the Business having an annual rental in excess of $1,000. Except as set
forth in Schedule 4.7, there is no tangible personal property used in the
operation of the Business other than the Tangible Personal Property. Except as
set forth on Schedule 4.7, all of the Tangible Personal Property is
located at the Real Property. Except as set forth in Schedule 4.7, to the
Knowledge of Seller, the Tangible Personal Property is, taken as a whole, in
good working order and adequate for its intended use, ordinary wear and tear
excepted. Except as disclosed on Schedule 4.7, there are no repairs or
replacements exceeding $10,000 in the aggregate for all Tangible Personal
Property or $1,000 for any single item of Tangible Personal Property which are
currently contemplated by Seller.

        4.8     
Intellectual Property.

               
(a)     Schedule 4.8 identifies all
Intellectual Property which is currently used in the Business, which was used in
the Business at any time in the last five years or which Seller plans to use in
connection with the Business in the next 12 months, including but not limited
to, (i) each patent or registration which has been issued to Seller, Shareholder
or any Affiliate thereof with respect to any of such Intellectual Property; (ii)
each trade name or unregistered trademark used by Seller in connection with the
Business; (iii) each pending application or application for registration which
Seller, Shareholder or any Affiliate thereof has made with respect to any of
such Intellectual Property; (ii) each copyright, trademark, and service mark of
Seller. 

               
(b)     Except as set forth on Schedule 4.8,
with respect to each item of Intellectual Property identified or required to be
identified on Schedule 4.8: (i) Seller possesses 

-21-

all right, title and interest in and to the item, free and clear of any
Encumbrances or licenses, (ii) the item is not subject to any outstanding
injunction, judgment, order, decree, ruling, or charge, (iii) no Proceeding is
pending or, to the knowledge of Seller, threatened which challenges the
legality, validity, enforceability, use or ownership of the item and (iv) other
than routine indemnities given to distributors, sales representatives, dealers
and customers, Seller has no current obligation to indemnify any Person for or
against any interference, infringement, misappropriation, or other conflict with
respect to the item.

               
(c)     Except as set forth on Schedule 4.8, (i) to
the knowledge of Seller, each item of Intellectual Property owned or used by
Seller immediately prior to the Closing Date will be owned or available for use
by Purchaser on substantially similar terms and conditions immediately
subsequent to the Closing Date and (ii) Seller has taken reasonable commercial
actions to maintain and protect each item of Intellectual Property material to
the Business.

               
(d)     Except as set forth on Schedule 4.8,
to the knowledge of Seller (i) the Seller has not during the last five (5) years
in connection with the Business interfered with, infringed upon, misappropriated
or otherwise come into conflict with any Intellectual Property rights of third
parties, and Seller has not received any charge, complaint, claim, demand or
notice alleging any such interference, infringement, misappropriation or
violation (including any claim that Seller must license or refrain from using
any Intellectual Property rights of any third party) which has not been resolved
and (ii) no third party has interfered with, infringed upon, misappropriated or
otherwise come into conflict with any of the Intellectual Property.

               
(e)     Schedule 4.8 specifically identifies
each item of Intellectual Property that any third party owns and that Seller
uses in connection with the Business pursuant to license, sublicense or other
Contracts. Seller has delivered to Purchaser correct and complete copies of all
such licenses, sublicenses and other Contracts (as amended to date). Except as
set forth on Schedule 4.8, with respect to each such item of Intellectual
Property required to be identified in Schedule 4.8: (i) the license,
sublicense or other Contract covering the item is enforceable, (ii) to the
knowledge of Seller, following the Closing, the license, sublicense or other
agreement will continue to be enforceable on substantially similar terms and
conditions, (iii) neither Seller nor, to the knowledge of Seller, any other
party to the license, sublicense or other Contract is in material breach or
default thereof, and no event has occurred which, with notice or lapse of time,
would constitute a breach or default or permit early termination, modification
or acceleration thereunder, (iv) to the knowledge of Seller, no other party to
the license, sublicense or other Contract has repudiated any provision thereof,
(v) the underlying item of Intellectual Property is not subject to any
outstanding injunction, judgment, order, decree, ruling or charge, (vi) no
proceeding is pending or, to the knowledge of Seller, threatened which
challenges the legality, validity or enforceability of the underlying item of
Intellectual Property and (vii) Seller has not granted any sublicense or similar
right with respect to the license, sublicense or other Contract.

-22-

               
(f)     Except as set forth on Schedule 4.8,
Purchaser's use of any Intellectual Property will not interfere with, infringe
upon, misappropriate, or otherwise come into conflict with, any intangible
property rights of third parties as a result of the continued operation of the
Business as presently conducted and as presently proposed to be conducted.

        4.9     
Financial Statements.

               
(a)     Seller has delivered to Purchaser (i)
financial statements of Seller (consisting of a balance sheet, a statement of
income and retained earnings, and a statement of cash flows) for the two years
ending December 31, 2002 and December 31, 2003 audited by Seller's Auditors (the
"Audited Financial Statements"), and (ii) unaudited financial statements
of Seller (consisting of a balance sheet and a statement of income and retained
earnings) for the 12 months ending December 31, 2004 (the "2004 Financial
Statements" and, together with the Audited Financial Statements, the "Financial
Statements"), copies of which are attached as part of Schedule 4.9(a).
Except as set forth on Schedule 4.9(a), the Financial Statements fairly
present the financial condition and the results of operations of Seller as of
their respective dates and for the periods then ended, in all material respects.
The Financial Statements have been prepared in accordance with GAAP applied on a
consistent basis. The books and records of Seller fairly reflect the assets,
liabilities and operations of Seller in accordance with GAAP, and the Financial
Statements are in conformity therewith. The Financial Statements (i) are
complete and correct in all material respects as of the dates thereof and (ii)
except as set forth on Schedule 4.9(a), reflect all liabilities of Seller
fixed or contingent, as at the respective dates thereof whether or not such
liabilities would be required to be reflected or disclosed in financial
statements prepared in accordance with GAAP.

               
(b)     Except as set forth on Schedule 4.9(b),
all Accounts Receivable recorded in the 2004 Financial Statements as being due
to Seller as of December 31, 2004 were actually made in the ordinary course of
business and will be good and collectible in full in the ordinary course of
business, net of any reserves and allowances provided in the 2004 Financial
Statements. To Seller's Knowledge, none of such Accounts Receivable are subject
to any defense, counterclaim or set-off. Seller has delivered to Purchaser a
complete and accurate list of all Accounts Receivable of Seller as of January
31, 2005, a copy of which is attached hereto as part of Schedule 4.9(b).

               
(c)     Except as set forth on Schedule 4.9(c),
(i) the amount of Inventory shown on the 2004 Financial Statements is true and
correct in all material respects as of the dates indicated therein; (ii) none of
the Inventory is on consignment; and (iii) the Inventory net of any reserves set
forth on the 2004 Financial Statements for excess and obsolete inventory,
consists in all material respects of inventories of good and merchantable
quality and of the kind and quality regularly and currently used by Seller in
the Business.

        4.10    
Employee Benefit Plans.

-23-

               
(a)     Schedule 4.10 sets forth a current
list identifying each Employee Pension Benefit Plan, including any Multiemployer
Plan (the "Pension Plans") and a list identifying each "Employee Welfare
Benefit Plan" (the "Welfare Plans") that, in either case, are maintained,
administered or contributed to by Seller or RLA in connection the Business, or
that cover any employee or former employee of Seller or RLA. Collectively, the
Pension Plans and the Welfare Plans hereafter are referred to as the "Employee
Plans." Schedule 4.10 also sets forth a list identifying each
employment, severance or similar contract, arrangement or policy and each plan
or arrangement providing for insurance coverage (including, without limitation,
any self-insured arrangements), workers' compensation, disability benefits,
supplemental employment benefits, vacation benefits, retirement benefits,
deferred compensation, bonuses, profit-sharing, stock options, stock
appreciation rights or other forms of incentive compensation or post-retirement
compensation or benefit (hereinafter referred to collectively as the "Benefit
Arrangements") which (i) is not an Employee Plan, (ii) has been entered into
or maintained, as the case may be, by Seller or RLA and (iii) covers any
employee or former employee of Seller or RLA.

               
(b)     Seller has delivered or has caused to be
delivered to Purchaser either (i) true and complete copies of the Employee Plans
and Benefit Arrangements, or (ii) summaries of the terms of and benefits under
the Employee Plans and Benefit Arrangements. There has been no amendment to,
written interpretation or announcement (whether or not written) by Seller or RLA
relating to, or change in employee participation or coverage under, any Employee
Plan or Benefit Arrangement that would increase materially the expense of
maintaining the Employee Plan or Benefit Arrangement above the level of expense
incurred with respect to the Employee Plan or Benefit Arrangement for the most
recent plan year.

               
(c)     Each Employee Plan and Benefit Arrangement
has been maintained in compliance with its terms and, in all material respects,
the requirements prescribed by any and all statutes, orders, rules and
regulations, including but not limited to, ERISA and the Code, that apply to the
Employee Plan or Benefit Arrangement.

               
(d)     Each Pension Plan is "qualified" within the
meaning of Code Section 401(a), and has been qualified during the period from
the date of its adoption to the date of this Agreement, and each trust created
thereunder is tax-exempt under Code Section 501(a). Seller has delivered, or
caused to be delivered, to Purchaser the latest determination letters of the
Internal Revenue Service relating to each Pension Plan.

               
(e)     Except as disclosed on Schedule 4.10,
there are no pending or, to the knowledge of Seller, threatened (i) claims,
suits or other proceedings by any employees, former employees or plan
participants or the beneficiaries, spouses or representatives of any of them,
other than ordinary and usual claims for benefits by participants or
beneficiaries, or (ii) suits, investigations or other proceedings by any
Governmental Authority, of or against any Employee Plan, the assets held
thereunder, the trustee of any such assets, or Seller or RLA relating to any of
the Employee Plans or Benefit Arrangements. If any of the actions described in
this

-24-

subsection are initiated prior to the Closing Date, Seller will notify
Purchaser of such action prior to the date of Closing.

               
(f)     Seller has not engaged (i) in any transaction
or acted or failed to act in a manner that violates the fiduciary requirements
of ERISA Section 404, or (ii) in any "prohibited transaction" within the meaning
of ERISA Section 406(a) or 406(b), or of Code Section 4975(c), with respect to
any Employee Plans, and will not so engage, act or fail to act prior to the date
of Closing. Furthermore, to the knowledge of Seller, no other "party in
interest," as defined in ERISA Section 3(14), or "disqualified person," as
defined in Code Section 4975(e)(2), has engaged in any such "prohibited
transaction."

               
(g)     No Employee Plan or Benefit Arrangement
provides benefits, including without limitation, any other post-employment
benefit, salary continuation, termination, death, disability, or health or
medical benefits (whether or not insured), life insurance or similar benefit
with respect to current or former employees (or their spouses or dependents) of
Seller or RLA beyond their retirement or other termination of service other than
(i) coverage mandated by applicable law, (ii) death, disability or retirement
benefits under any Pension Plan, (iii) deferred compensation benefits accrued as
liabilities on the Financial Statements, (iv) benefits, the full cost of which
is borne by the current or former employee (or his or her beneficiary), (v)
Seller's severance pay policy or RLA's, if any, or (vi) post-employment payments
under Seller's insurance policies relating to events during employment by Seller
or RLA.

               
(h)     Except as disclosed on Schedule 4.10,
neither Seller nor any trade or business, whether or not incorporated, that is
deemed to be under common control or affiliated with Seller within the meaning
of ERISA Section 4001 or Code Sections 414(b), (c), (m) or (o) (an "ERISA
Affiliate") has ever maintained, adopted or established, contributed or been
required to contribute to, or otherwise participated or been required to
participate in, nor will they become obligated to do so through the Closing
Date, any defined benefit pension plan or Multiemployer Plan. Except as
disclosed on Schedule 4.10, no amount is due from, or owed by, Seller or
any ERISA Affiliate on account of a Multiemployer Plan or on account of any
withdrawal therefrom.

               
(i)     Each of Seller and/or its agents who
administer any Employee Plan that is a group health plan has complied, and will
continue to comply, with the requirements of Part 6 of Subtitle B of Title I of
ERISA and Code Section 4980B, and all applicable regulations thereunder ("COBRA")
with respect to each Employee Plan that is subject to the requirements of COBRA,
including, but limited to the notification and written notice requirements. Each
employee Plan that is a group health plan, within the meaning of Code Section
9832(a), has complied with and satisfied the applicable requirements of Code
Section 9801 and 9802.

        4.11    
Labor Matters.

-25-

               
(a)     Schedule 4.11 sets forth, for every
employee employed by Seller at any time since January 1, 2004, such employee's
name, 2004 annual compensation (including a breakdown of the portion thereof
attributable to salary, bonus and other compensation, respectively), most recent
regular hourly or salary rate, as applicable, and most recent position or job
title including whether or not such position is included in any bargaining unit.
Except as set forth on Schedule 4.11: (i) Seller does not have any
obligations under any collective bargaining agreement or other written or oral
labor Contract, grievance settlement, arbitration award or past practice with
any labor organization or employee group, (ii)  Seller is not currently
engaged in any unfair labor practice and there is no unfair labor practice
charge or other employee-related or employment-related complaint against Seller
pending or, to the Knowledge of Seller, threatened before any Governmental
Authority, (iii) there is currently no labor strike, labor disturbance,
slowdown, work stoppage or other material labor dispute or arbitration pending
or, to the Knowledge of Seller, threatened against Seller and no material
grievance currently being asserted, (iv)  Seller has not experienced a
labor strike, labor disturbance, slowdown, work stoppage or other material labor
dispute at any time during the five years immediately preceding the date of this
Agreement and (v) there is, to the Knowledge of Seller, no organizational
campaign being conducted nor, to the Seller's Knowledge, has any petition
raising a question of representation relating to the Employees been filed, or
threatened to be filed, with the National Labor Relations Board. Except as set
forth on Schedule 4.11, to the Knowledge of Seller, Seller has complied
in all material respects with, and is currently in compliance in all material
respects with, all applicable Legal Requirements relating to its employees and
consultants, and Seller has not received within the past three (3) years any
written notice of failure to comply with any such Legal Requirement.

               
(b)     Except as set forth on Schedule 4.11,
Seller has on file a valid Form I-9 for each employee hired by Seller on or
after November 7, 1986 and continuously employed after November 6, 1986 or the
applicable date of hire. Except as set forth on Schedule 4.11, to the
knowledge of Seller, all employees of Seller are (i) United States citizens, or
lawful permanent residents of the United States, (ii) aliens whose right to work
in the United States is unrestricted, (iii) aliens who have valid, unexpired
work authorization issued by the United States government (U.S. Citizenship and
Immigration Service, or predecessor) or (iv) aliens who have been continually
employed by Seller since November 6, 1986 or the applicable date of hire. Except
as set forth on Schedule 4.11, within the past five (5) years, Seller has
not been the subject of an immigration compliance or employment visit from, nor
has Seller been assessed any fine or penalty by, or been the subject of any
order or directive of, the United States Department of Labor or U.S. Citizenship
and Immigration Service.

        4.12    
Insurance. Schedule 4.12 contains a complete and
accurate list of all current policies or binders of insurance showing as to each
policy or binder the carrier, policy number, expiration dates and a general
description of the type of coverage provided and maintained by Seller, or RLA,
Seller's personnel, the Purchased Assets and/or the Real Property. Except as set
forth on Schedule 4.12, all of the Insurance is "occurrence" based
insurance. The insurance is in 

-26-

full force and effect and sufficient for compliance in all material respects
with all Legal Requirements and of all Contracts to which Seller or RLA is a
party. Neither Seller nor RLA is not in material default under any of the
insurance.

        4.13    
Contracts.

               
(a)     other than Seller's lease agreement for the
Real Property which shall be a non-assumable contract, Schedule 4.13(a)
contains a complete and accurate list, and Seller has delivered to Purchaser
true and complete copies (with respect to Sections 4.13(a)(i) - (iii) and
4.13(a)(ix) only those Contracts of an amount in excess of $50,000), of:

               
(i)     each Contract to which
Seller is a party or by which Seller or any of the Purchased Assets is obligated
or bound ("Applicable Contract") that involves performance of services or
delivery of goods or materials by Seller in connection with the Business of an
amount or value in excess of $10,000;

               
(ii)     each Applicable
Contract that involves performance of services or delivery of goods or materials
to Seller or otherwise in connection with the Business of an amount or value in
excess of $10,000;

               
(iii)     each Applicable
Contract that was not entered into in the ordinary course of business and that
involves expenditures or receipts of Seller or otherwise in connection with the
Business in excess of $10,000;

               
(iv)     each lease, rental or
occupancy agreement, license, installment or conditional sale agreement, and any
other Applicable Contract affecting the ownership of, leasing of, title to, use
of or any leasehold or other interest in, any real or personal property;

               
(v)     each licensing
agreement or other Applicable Contract with respect to patents, trademarks,
copyrights or other intellectual property, including agreements with current or
former employees which are still in effect, consultants or contractors regarding
the appropriation or the non-disclosure of any of the Purchased Intellectual
Property.

               
(vi)     each collective
bargaining agreement and other Applicable Contract to or with any labor union or
other labor organization of a group of employees;

               
(vii)     each joint venture,
partnership and other Applicable Contract (however named) involving a sharing of
profits, losses, costs, or liabilities by Seller with any other Person;

               
(viii)     each employment contract and other
Applicable Contract with any employee of Seller;

-27-

               
(ix)     each Applicable
Contract containing covenants that in any material way purport to restrict the
business activity of the Business or Seller or Shareholder or limit the freedom
of the Business or in any material way to engage in any of its line of business
or to compete with any Person in its lines of business;

               
(x)     each Applicable
Contract providing for payments to or by any Person based on sales, purchases or
profits, other than direct payments for goods;

               
(xi)     each power of
attorney that is currently effective and outstanding which could effect in a
material way the Business;

               
(xii)     each Applicable
Contract entered into that contains or provides for an express undertaking by
Seller be responsible for indirect, consequential or punitive damages;

               
(xiii)     
each written guaranty and other similar undertaking with respect to
contractual performance extended by Seller other than in the ordinary course of
business; 

               
(xiv)     each material
amendment, supplement and modification (whether oral or written) in respect of
any of the foregoing; and

               
(xv)     each Contract to which RLA is a party that
is with Seller or that relates to the Real Property and/or Business and
involving aggregate expenditures of $10,000 or more in any year.

Schedule 4.13(a) sets forth sufficient details
concerning such Contracts to identify the Contracts.

               
(b)     Except as set forth in
Schedule 4.13(b):

               
(i)     Neither Seller nor
Shareholder (or any Affiliate thereof) has or may acquire any rights under, and
Seller has not become subject to any obligation or liability under, any material
Contract that relates to the business of, or any of the material assets owned or
used by Seller; and

               
(ii)     To Seller's
Knowledge, no officer or employee of Seller is bound by any Contract that
purports to limit the ability of such officer or employee to (A) engage in or
continue any conduct, activity or practice relating to the Business, or (B)
assign to Seller any material rights to any invention, improvement or discovery
made in the course of said officer's or employee's employment.

               
(iii)     Each Contract
identified or required to be identified in Schedule 4.13(a) is in full
force and effect and is valid and enforceable in accordance with its terms in
all material respects.

-28-

               
(c)     Except as set forth in
Schedule 4.13(c):

               
(i)     To Seller's Knowledge,
Seller is, and at all times has been, in compliance in all material respects
with all applicable terms and requirements of each Contract under which Seller
has or had any obligation or liability or by which Seller or any of the assets
owned or used by Seller or otherwise in connection with the Business is or was
bound;

               
(ii)     to Seller's
Knowledge, each other Person that has or had any obligation or liability under
any Contract under which Seller has or had any rights is, and at all times has
been, in compliance in all material respects with all applicable terms and
requirements of such Contract;

               
(iii)     to Seller's
Knowledge, no event has occurred or circumstance exists that (with or without
notice or lapse of time) may contravene, conflict with or result in a material
violation or breach of, or give Seller or other Person the right to declare a
default or exercise any remedy under, or to accelerate the maturity or
performance of, or to cancel, terminate or modify, any Applicable Contract; 

               
(iv)     Seller has not given
to or received from any other Person any notice or other communication (whether
oral or written) regarding any actual, alleged potential material violation or
breach of, or default under, any Contract; and

               
(v)     Seller is not a party to any Applicable
Contract with any Person who is an Affiliate of Seller, Shareholder or any
director or officer of Seller ("Related Party") and does not do any
material business with any such Related Party.

               
(d)     There are no
renegotiations of any material amounts paid or payable to Seller under current
or completed Contracts with any Person and no such Person has made written
demand for such renegotiation.

        4.14    
Litigation. Except as set forth on Schedule 4.14,
there is no Proceeding pending or, to the knowledge of Seller, threatened
against Seller or RLA or that may affect the Purchased Assets or the Real
Property. There is no action, proceeding or investigation pending or threatened
which questions or challenges the validity of this Agreement or any of the
transactions contemplated by this Agreement or otherwise seeks to prevent or
have the effect of preventing the consummation of the transactions contemplated
hereby. 

        4.15    
Compliance with Laws. Except as set forth on 
Schedule 4.15 and Schedule 4.17, (a) Seller is in compliance in all
material respects with all applicable Legal Requirements pertaining to the
Business and the Purchased Assets, (b) RLA is in compliance in all material
respects with all applicable Legal Requirements pertaining to the Real Property
and (c) neither Seller nor RLA has received notice of any violation of any such
Legal Requirements, including, without limiting the generality of the foregoing,
any notice from any Governmental Authority 

-29-

having jurisdiction over Seller or RLA as to any violation of any building,
fire, health, immigration or other Legal Requirement pertaining to the Business,
the Purchased Assets or the Real Property.

        4.16    
Permits, Licenses and Authorizations. Schedule 4.16(a)
attached hereto is a complete list of all material permits, approvals, consents,
licenses, franchises and other governmental authorizations held by Seller and
required for the conduct of the Business and by RLA required in connection with
the ownership and leasing of the Real Property. Except as set forth on 
Schedule 4.16(b), Seller and RLA each possess all material permits,
approvals, consents, licenses, franchises and other governmental authorizations
that are necessary for the Business and the use and occupancy of the Real
Property and the Purchased Assets.

        4.17    
Environmental Matters. Except as set forth in Schedule
4.17:

               
(a)     Each of Seller and RLA
is in compliance in all material respects with, and is not in violation in any
material respects of, any Environmental Law.

               
(b)     There are no pending,
or to the Knowledge of Seller and RLA, threatened claims, Encumbrances, or other
material restrictions of any nature, resulting from any Environmental, Health,
and Safety Liabilities or arising under or pursuant to any Environmental Law,
with respect to or affecting any of the Purchased Assets or the Facilities.

               
(c)     Neither Seller nor RLA
has a reasonable basis to expect, and none of Seller, Shareholder, RLA or any
other Person for whose conduct Seller or RLA is or may be held responsible, has
received, any citation, directive, inquiry, notice, order, summons or warning
that relates to Hazardous Activity, Hazardous Materials or any alleged, actual,
or potential violation or failure to comply with any Environmental Law, or any
alleged, actual, or potential obligation to undertake or bear the cost of any
Environmental, Health, and Safety Liabilities with respect to any of the
Purchased Assets or the Facilities or any other properties or assets (whether
real, personal, or mixed) in which Seller or RLA had an interest, or with
respect to any property or facility to which Hazardous Materials generated,
manufactured, refined, retained, imported, used, or processed by Seller, or any
other Person for whose conduct Seller is or may be held responsible, have been
transported, treated, stored, handled, transferred, disposed, recycled, or
received.

               
(d)     
Except in material compliance with or as permitted by applicable
Environmental Law, there are no Hazardous Materials present on or in the
environment at the Facilities or at any geologically or hydrologically adjoining
property in material quantities that emanated from Seller or RLA (or any
predecessor thereof), including any Hazardous Materials contained in barrels,
above or underground storage tanks, landfills, land deposits, dumps, equipment
(whether moveable or fixed) or other containers, either temporary or permanent,
and deposited or located in land, water, sumps, or any other part of the
Facilities or such adjoining

-30-

 property, or incorporated into any structure therein or thereon. Except
in material compliance with or as permitted by applicable Environmental Law,
neither Seller, RLA nor any other Person for whose conduct Seller or RLA is or
may be held responsible has permitted or conducted, or has Knowledge of, any
Hazardous Activity conducted with respect to the Facilities or any other
properties or assets (whether real, personal, or mixed) in which Seller or RLA
has or had an interest. 

               
(e)     Except in material
compliance with or as permitted by applicable Environmental Law, to Seller's and
RLA's Knowledge there has been no Release or Threat of Release, of any material
amounts of Hazardous Materials at or from the Facilities.

               
(f)     Seller has delivered
or made available to Purchaser true and complete copies and results of the most
recent material reports, studies, analyses, tests, or monitoring possessed or
initiated by Seller or RLA pertaining to Hazardous Materials or Hazardous
Activities in, on, or under the Facilities, or concerning compliance by Seller,
RLA or any other Person for whose conduct Seller or RLA or may be held
responsible, with Environmental Laws.

        4.18    
Absence of Certain Payments. Neither Seller, nor any of its
Representatives or other people acting on behalf of any of Seller, have with
respect to the Business (a) engaged in any activity prohibited by the United
States Foreign Corrupt Practices Act of 1977 or any other similar law,
regulation or decree, directive or order of any Governmental Authority or
(ii) without limiting the generality of the preceding clause (i), used any
corporate or other funds for unlawful contributions, payments, gifts or
entertainment, or made any unlawful expenditures relating to political activity
to officials of any Governmental Authority.

        4.19    
Products; Product Warranties.

               
(a)     A form of each product warranty relating to
products manufactured or sold by Seller at any time during the three-year period
preceding the date of this Agreement has been delivered to the Purchaser.

               
(b)     Schedule 4.19
sets forth a true and complete list of (A) all products manufactured, marketed
or sold by Seller that have been recalled or withdrawn (whether voluntarily or
otherwise) at any time during the past three (3) years (for purposes of this
paragraph, a product shall have been recalled or withdrawn if all or a
substantial number of products in a product line were recalled or withdrawn) and
(B) all Proceedings (whether completed or pending) at any time during the past
three (3) years seeking the recall, withdrawal, suspension or seizure of any
product sold by Seller.

               
(c)     Except as set forth on Schedule 4.19,
Seller is not aware of any defect in design, materials, manufacture or otherwise
in any products manufactured, distributed or sold by Seller during the past
three (3) years or any defect in repair to any such products which could give
rise to any claims in excess of historical warranty expenses; provided,
however, that for 

-31-

purposes of this paragraph improvements made to products in the ordinary
course of business shall not be interpreted as an indication of the existence of
any defects.

               
(d)     Except as set forth on Schedule 4.19,
the warranty expenses and other unreimbursed repair, maintenance and replacement
expenses incurred by Seller for the 12 months ending on the last day of the
month immediately preceding the Closing Date will not exceed (as a percentage of
sales) the average annual amount of such expenses for the three years ending
December 31, 2004, and Seller have no knowledge of any circumstances which are
likely to cause such warranty and other expenses to increase in the future.

               
(e)     Except as provided in any of the standard
product warranties described in paragraph (a) of this Section and as otherwise
set forth on Schedule 4.19, Seller has not sold any products or services
which are subject to an extended warranty of Seller beyond twelve (12) months
and which warranty has not yet expired.

        4.20    
Title to the Purchased Assets. Except as set forth on 
Schedule 4.20, the Purchased Assets are free and clear of all Encumbrances
and, at the time of Closing, the Purchased Assets will be free of all
Encumbrances other than Permitted Encumbrances. 

        4.21    
Absence of Certain Changes. Except as set forth on 
Schedule 4.21 or as reflected in the Financial Statements, since December
31, 2003 there has not been:

               
(a)     any material adverse change in the Business,
financial condition or operations of Seller taken as a whole.

               
(b)     any increase in the compensation of or
granting of bonuses payable or to become payable by Seller to any officer or
employee whose 2004 calendar-year compensation (base salary plus bonus) exceeded
$50,000;

               
(c)     any sale or transfer by Seller of any
tangible or intangible asset having a value greater than $10,000, any mortgage
or pledge or creation of any Encumbrance relating to any such asset, any lease
of real property or equipment, or any cancellation of any debt or claim, except
in the ordinary course of business;

               
(d)     any other material transaction not in the
ordinary course of the Business or not otherwise consistent with Seller's past
practices involving consideration in excess of $25,000;

               
(e)     any material change in accounting methods or
principles; or

               
(f)     any change in the RLA Partnership Agreement.

        4.22    
General. No representation or warranty of Seller, RLA and
Shareholder in this Agreement and no statement in any Disclosure Schedule or in
any Schedule attached hereto, 

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omits to state a material fact necessary to make the statements herein or
therein, in light of the circumstances in which they were made, not misleading.
There is no fact known to Seller, RLA or Shareholder that has specific
application to Seller or RLA (other than general economic or industry
conditions) and that materially adversely affects the Purchased Assets, the Real
Property or the financial condition, prospects or results of operations of the
Business that has not been set forth in this Agreement.

5.     REPRESENTATIONS AND
WARRANTIES OF PURCHASER

               
Purchaser represents and warrants to Seller, Shareholder and RLA as follows: 

        5.1     
Organization. Purchaser is a corporation duly organized, validly
existing and in good standing under the laws of the Commonwealth of
Pennsylvania. Purchaser is duly qualified to transact business and is in good
standing in all jurisdictions where the nature of the business transacted by
Purchaser or the character of the properties owned by Purchaser would require
such qualification. Purchaser has all power and authority 

               
(a)     to own its property and to carry on its
operations as now conducted by it; and

               
(b)     to execute this Agreement, to carry out the
transactions contemplated by this Agreement, and to perform its obligations
hereunder.

        5.2     
Corporate Action; Legal, Valid and Binding Agreement. All action
of Purchaser necessary to authorize the execution and delivery of this Agreement
and the instruments to be executed and delivered pursuant hereto to Seller and
RLA and the transactions contemplated hereby has been properly taken, and
resolutions of the Board of Directors of the Purchaser certified by the
Secretary or an Assistant Secretary of Purchaser and in form satisfactory to
counsel for Seller and RLA shall be delivered at the Closing to Seller and RLA.
Upon execution and delivery, this Agreement will constitute a legal, valid and
binding agreement of Purchaser enforceable in accordance with its terms. 

        5.3     
No Violation. Except as set forth in Schedule 5.3 attached
hereto, neither the execution, delivery nor performance of this Agreement nor
the consummation of the transactions contemplated hereby is prohibited by, or
requires Purchaser to obtain any consent, authorization or approval or
registration under, or gives any person the right to accelerate the performance
of any obligation under, (a) any term or provision of the Articles of
Incorporation or the By-laws of Purchaser, (b) any Contract or commitment to
which the Purchaser is bound including but not limited to any Contract or
commitment relating to any bank or other institutional loans or indebtedness of
the Purchaser, or (d) any judgment or any Legal Requirement applicable to
Purchaser. Except as set forth on Schedule 5.3, no consent, approval or
authorization of, or declaration, filing or registration with, any Person is
required to be made or obtained by 

-33-

Purchaser in connection with the execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated by this
Agreement.

        5.4     
Litigation. There is no Proceeding pending or to the Knowledge of
Purchaser, threatened which questions or challenges the validity of this
Agreement or any of the transactions contemplated by this Agreement or otherwise
seeks to prevent or have the effect of preventing the consummation of the
transactions contemplated hereby.

        5.5     
Financing. Purchaser will have sufficient funds to consummate the
transactions provided for in this Agreement at Closing.

6.     ACCESS AND
CONFIDENTIALITY. 

        6.1     
Access to Properties and Records. Purchaser, through its
Representatives and such other advisers as may be selected by Purchaser, shall
through the Closing Date have access upon reasonable notice during normal
business hours (which access shall not be materially disruptive to or
unreasonably interfere with any business or operations of Seller or RLA) to all
premises and operations of Seller or RLA used in the operation of the Business
and to their officers and employees for the purpose of its due diligence
(including but not limited to environmental due diligence) examination of all of
the Purchased Assets and other relevant records, papers and information relating
to the operations of Business and the Real Property. Seller and RLA shall
cooperate fully and will arrange for the cooperation of their employees and
their independent certified public accountants, and will comply with all
reasonable requests for data, information and access. Upon the reasonable
request of Purchaser, copies of such records, papers and information shall be
promptly furnished. 

        6.2     
Environmental Matters. In addition to any environmental
investigations and audits conducted by Purchaser or its Representatives prior to
the date of this Agreement, Purchaser shall be permitted to cause further
environmental audits of the Real Property to be conducted as are reasonably
necessary for assessing the presence and other disposition of Hazardous
Materials and compliance with Environmental Laws, including a Phase I audit, and
such Phase II environmental audits, if any, as Purchaser and Seller may mutually
agree upon. Seller and RLA hereby agree to permit Purchaser's qualified
environmental consultants to enter upon the Real Property, upon giving Seller
and RLA reasonable notice, with men and materials reasonably necessary to
conduct such environmental audits. In connection with any such environmental
audits and at the request of Seller, Purchaser shall from time to time enter
into agreements relating to confidentiality of audit results.

        6.3     
Confidentiality by Purchaser; Return of Information. All
information acquired by or on behalf of Purchaser about or relating to Seller,
the Purchased Assets and the Real Property which is not (i) generally known to
the public, (ii) previously known by Purchaser before the negotiation of the
transactions contemplated herein, or (iii) subsequently disclosed to 

-34-

Purchaser by a person or entity other than Seller having the right to
disclose such information without violation of a covenant of confidentiality,
shall be treated as confidential information and shall not be disclosed or used
by Purchaser or its employees, attorneys, accountants, lenders, appraisers or
other agents or professional consultants and advisers, at any time from the date
such information was received (whether before, after or contemporaneously with
the execution of this Agreement) until after the Closing, or if the Closing does
not occur, at any time after the date hereof, except for the disclosure or use
of any such information as may be reasonably necessary (i) in connection with
any lawsuit or arbitration arising out of this Agreement, (ii) in connection
with any judicial or administrative filing, investigation or proceeding or
otherwise with or by a governmental agency or (iii) as otherwise may be required
by law. If the transactions contemplated hereunder are not consummated for any
reason, Purchaser agrees to promptly return to Seller or destroy, at Seller'
discretion, all copies of any confidential information acquired by or on behalf
of Purchaser in the investigation of the Business and the Real Property, except
for those exceptions (i), (ii), and (iii), set forth in the immediately
preceding sentence.

        6.4     
Access to Records After the Closing. From and after the Closing,
Seller, RLA, Shareholder and their Representatives shall be allowed, upon
reasonable notice during normal business hours, to inspect and copy at their
expense the business records and accounts of Purchaser pertaining to (i) all
matters as to which either Seller, RLA or Shareholder is required to provide
indemnification pursuant to this Agreement, and (ii) any transactions of Seller
oR RLA occurring, or assets of Seller or RLA held, at and through the Closing
Date. Purchaser agrees not to destroy or abandon any such business records or
accounts for a period of four (4) years following the Closing and to destroy
such business records or accounts only upon thirty (30) days' advance written
notice to Shareholder and RLA for an additional period of two (2) years
thereafter. If Shareholder or RLA requests the surrender of such records or
accounts, then Purchaser shall surrender, at Shareholder's or RLA's expense (as
applicable), such records or accounts so requested rather than proceeding with
such destruction. 

               
From and after the Closing, Purchaser and its Representatives shall be allowed,
upon reasonable notice during normal business hours, to inspect and copy at its
expense the records of Seller and RLA relating to the Business or the Real
Property through the date of the Closing not transferred to Purchaser,
including, without limitation, all financial records and tax returns of Seller
relating to the Business. Seller and RLA each agrees not to destroy or abandon
any such records for a period of four (4) years following the Closing and to
destroy such records only upon thirty (30) days advance written notice to
Purchaser for an additional period of two (2) years thereafter. If Purchaser
requests the surrender of such records, then Seller or RLA (as applicable) shall
surrender, at Purchaser's expense, such records so requested rather than
proceeding with such destruction. 

7.     CONDITIONS PRECEDENT TO
CLOSING 

-35-

        7.1     
Conditions to Each Party's Obligation to Close. The respective
obligations of each party to consummate the transactions provided for in this
Agreement shall be subject to the satisfaction at or prior to the Closing Date
of the following conditions:

               
(a)     No temporary restraining order, preliminary
or permanent injunction or other order by any federal or state court in the
United States which prohibits the consummation of the transactions provided for
in this Agreement shall have been issued and remain in effect.

               
(b)     Each of Seller, RLA and Purchaser shall have
obtained such consents from third parties and Governmental Authorities which are
listed on Schedule 7.1(b), if any. 

        7.2     
Conditions Precedent to the Obligation of Purchaser to Close. The
obligation of Purchaser to consummate the transactions provided for in this
Agreement is subject to the satisfaction at or before the Closing Date of each
of the following conditions precedent: 

               
(a)     Seller and RLA shall have delivered access to
and possession of all of the Purchased Assets and the Real Property to Purchaser
and shall have delivered to Purchaser such fully executed instruments of
assignment, transfer and conveyance as are necessary in the opinion of, and
satisfactory in form to, counsel to Purchaser to transfer good and marketable
title to all of the Purchased Assets and the Real Property to Purchaser in
accordance with the provisions of this Agreement. 

               
(b)     The representations and warranties of Seller,
Shareholder and RLA contained in this Agreement shall be true in all material
respects as of the date hereof and shall be true in all material respects on the
Closing Date as if made on that date. All covenants, agreements and obligations
and all conditions precedent on the part of Seller, RLA and/or Shareholder to be
performed hereunder on or prior to the Closing Date shall have been duly
performed and complied with in all material respects. 

               
(c)     Seller and Shareholder shall have delivered
to Purchaser a certificate executed by an officer of the Seller and by
Shareholder dated as of the Closing Date stating that (i) all representations
and warranties made by Seller and Shareholder contained in this Agreement are
true, complete and accurate as of the Closing as if made on and as of such date
and (ii) all terms, covenants (to the extent required to be performed prior to
the Closing), conditions and provisions of this Agreement to be met by Seller or
Shareholder have been complied with.

               
(d)     RLA shall have delivered to Purchaser a
certificate executed by a general partner of RLA dated as of the Closing Date
stating that (i) all representations and warranties made by RLA contained in
this Agreement are true, complete and accurate as of the Closing as if made on
and as of such date and (ii) all terms, covenants (to the extent required to be
performed prior to the Closing), conditions and provisions of this Agreement to
be met by RLA have been complied with.

-36-

               
(e)     Purchaser shall have received a favorable
opinion from Robert A. Rosin, attorney for Seller, Shareholder and RLA, dated
the Closing Date, substantially in form and substance as set forth in 
Exhibit 7.2(e) attached hereto.

               
(f)     The Purchaser's due diligence review of the
Business and the Purchased Assets provided for in Sections 6.1 and 6.2 of this
Agreement shall have been satisfactory to Purchaser in its sole discretion.

               
(g)     Seller and Shareholder shall have executed
and delivered the Escrow Agreement to Purchaser and the Escrow Agent.

               
(h)     Seller shall have obtained, and delivered to
Purchaser, consents to the assignment to Purchaser of the Assumed Contracts
listed on Schedule 7.1(b), in form reasonably satisfactory to Purchaser.

               
(i)     Seller shall have delivered a good standing
certificate and RLA shall deliver a City certification to Purchaser.

               
(j)     Michael Smith will have (i) accepted an offer
of employment by Purchaser on terms satisfactory to Purchaser and (ii) executed
and delivered a Non-Competition Agreement, substantially in form and substance
as set forth in Exhibit 7.2(j) attached hereto.

Purchaser shall have the right, exercisable in its sole discretion, to waive
any one or more of the foregoing conditions, and to proceed with the Closing, or
to terminate this Agreement.

        7.3     
Conditions Precedent to the Obligation of the Seller and RLA to Close.
The obligations of Seller and RLA to consummate the transactions provided for in
this Agreement are subject to the satisfaction at or before the Closing Date of
each of the following conditions precedent: 

               
(a)     The representations and warranties of
Purchaser contained in this Agreement shall be true in all material respects as
of the date hereof and shall be true in all material respects on the Closing
Date as if made on that date. All covenants, agreements and obligations and all
conditions precedent on the part of Purchaser to be performed or complied with
hereunder at or prior to the Closing shall have been duly performed and complied
with in all material respects. 

               
(b)     Purchaser shall have delivered to Seller,
Shareholder and RLA a certificate executed by the President or the Vice
President and CFO of Purchaser dated as of the Closing Date stating that (i) all
representations and warranties made by Purchaser and contained in this Agreement
are true and accurate as of the Closing, and (ii) all terms, covenants (to the
extent required to be performed prior to the Closing), conditions and provisions
of this Agreement to be met by Purchaser have been complied with. 

-37-

               
(c)     Purchaser shall have delivered to Seller good
and sufficient instruments, satisfactory in form to counsel to Seller,
evidencing the assumption by Purchaser of the Assumed Liabilities. 

               
(d)     Purchaser shall have delivered the Escrowed
Funds to the Escrow Agent and the balance of the Business Purchase Price to
Seller. 

               
(e)     Purchaser shall have delivered the Real
Property Price to RLA.

               
(f)     Purchaser shall have delivered to Seller a
Pennsylvania Sales and Use Tax Exemption Certificate.

               
(g)     No Material Adverse Event shall have
occurred.

Seller and RLA shall have the right, exercisable in its sole discretion, to
waive any one or more of the foregoing conditions and to proceed with the
Closing, or to terminate this Agreement.

8.     ADDITIONAL AGREEMENTS 

        8.1     
Bulk Sales Laws. The parties hereto waive compliance with the bulk
transfer provisions of the Uniform Commercial Code as adopted in any state
relevant to the transactions provided for in this Agreement and the provisions
of any state tax law applicable to bulk sales generally or the transaction
covered by this Agreement. Seller and Shareholder warrant and agree to pay when
due and discharge (a) all claims of creditors, all withholding obligations, and
all Taxes and interest and penalties and all other liabilities of whatsoever
nature which do not constitute Assumed Liabilities and which could be collected
from Purchaser by reason of such noncompliance, and (b) all sales, value added
and other Taxes owing by Seller in respect of the operation of the Business of
Seller through the Closing, and Seller and Shareholder shall jointly and
severally indemnify Purchaser against and hold it harmless with respect to any
liability, loss or expense (including without limitation attorney's fees)
incurred or suffered by Purchaser by reason of the failure of Seller to pay or
discharge such claims or taxes and interest and penalties thereon; which claims,
taxes (including interest and penalties) or other obligations arise from
Seller's activities through the Closing Date. 

        8.2     
Further Assurances. After the Closing, each of the parties hereto
agrees to take whatever further action is necessary and to execute whatever
further documents, instruments of assignment, transfer, conveyance or
authorization and agreements as may be reasonably requested by the other in
order to fulfill the purposes and the intent of this Agreement. 

        8.3     
Brokerage Commissions and Fees. Purchaser (on the one hand) and
Seller and RLA (on the other) represent and warrant to each other that all
negotiations between them have been carried on by them directly, each with the
other, or with the others' counsel, accountants or business consultants, without
the intervention of any third person and that there are no brokers' 

-38-

commissions, finder's fees or other payments of like nature payable to any
person except for Trudeau & Trudeau Associates, Inc. ("TTA") (which has acted on
behalf of Purchaser). Purchaser agrees to indemnify and hold harmless Seller
from and against any and all losses, claims, costs, damages and expenses of
whatsoever nature (including, without limitation, all legal expenses)
attributable to any claim, liability or obligation for any brokers' commission,
finder's fees or other payment of like nature which arises from any contract or
agreement or obligation between Purchaser and TTA and/or with any other broker,
finder or like person. Seller and RLA jointly and severally agree to indemnify
and hold harmless Purchaser from and against any and all losses, claims, costs,
damages and expenses of whatsoever nature (including, without limitation, all
legal fees and expenses) attributable to any claim or liability or obligation
for any brokers' commissions, finder's fees or payment of like nature which
arises from any contract, agreement or obligation on the part of Seller or RLA
with any broker, finder or like person.

        8.4     
Operation of the Business Prior to Closing. Prior to the Closing,
Seller and RLA:

               
(a)     shall operate the Business in the usual,
regular and ordinary course of business (except with the prior written consent
of Purchaser);

               
(b)     shall protect the Purchased Assets and Real
Property from the elements and maintain the Purchased Assets and Real Property
in good operating condition and repair;

               
(c)     shall maintain the books, accounts and
records of Seller in the usual, regular and ordinary manner on a basis
consistent with past practice;

               
(d)     shall not take or permit any action which
would cause any of the representations and warranties of Seller and Shareholder
set forth in Article 4 hereof to be untrue as of the Closing Date; and

               
(e)     shall not discount, compromise or take any
other action, directly or indirectly, to cause any Accounts Receivable to be
paid earlier than in accordance with Seller's standard terms of sale.

        8.5     
Public Statements. Purchaser and Seller agree to cooperate, prior
to the Closing, in issuing any press releases or otherwise making public
statements with respect to the transactions contemplated by this Agreement, and
no press releases or other public statements shall be issued prior to the
Closing without the joint consent of Purchaser and Seller (except as may be
required by law and, in any such event, only after consultation with the other
party). 

                   
After the Closing, Seller and Purchaser shall jointly notify all customers of
the Business that (i) the transactions contemplated by this Agreement have
occurred and (ii) effective immediately Seller are no longer designing and
manufacturing the product(s) of the 

-39-

Business. Seller and Purchaser shall cooperate in addressing specific
customer requests or to facilitate timely completion of work-in-process on terms
to be mutually agreed upon.

        8.6     
Matters Relating to Real Property.

               
(a)     Purchaser shall obtain, at Purchaser's sole
cost and expense, a commitment from First American Title Insurance Company (the
"Title Company") for the issuance of an extended coverage owner's policy
of title insurance (including mechanics' lien coverage) for each parcel included
in the Real Property in an amount determined by Purchaser setting forth the
status of title to each such parcel (the "Title Commitment"). The Title
Commitment shall be accompanied by true, complete and legible copies of all
Encumbrances identified therein. At Closing, the policies to be issued pursuant
to the Title Commitment (the "Title Policy") shall insure that Purchaser
has good, marketable and indefeasible title to such Real Property, subject only
to those Encumbrances accepted by Purchaser pursuant to paragraph (c) of this
Section 8.6 ("Permitted Title Encumbrances"), and shall include such
additional coverages and endorsements as Purchaser may reasonably require
(collectively the "Endorsements"). At the Closing, Purchaser shall pay
all premiums for the issuance of the Title Policy and the Endorsements, and RLA
shall deliver to the Title Company such affidavits, indemnities and other
documentation as shall be necessary to enable the Title Company to issue the
Title Policy with the Endorsements subject only to Permitted Title Encumbrances.

               
(b)     Purchaser shall obtain, at Purchaser's sole
cost and expense, a survey covering each parcel included in the Real Property
(the "Survey"), dated subsequent to this Agreement, each of which shall
be prepared by a surveyor duly licensed under the laws of Pennsylvania and
approved by Purchaser. Each survey (A) shall be in form and substance
satisfactory to the Purchaser and the Title Company, (B) shall be prepared in
accordance with the 1992 Minimum Standard Detail Requirements for ALTA/ACSM Land
Title Surveys as adopted by ALTA and the American Congress on Surveying &
Mapping and (C) shall be certified to Purchaser and the Title Company using a
form of certification acceptable to Purchaser.

               
(c)     Seller agrees to provide Purchaser with a
zoning certification letter, dated on or after the date of this Agreement,
issued by the City of Philadelphia, pursuant to which the City of Philadelphia
certifies that the Real Property is in full compliance with all applicable
zoning laws and regulations (the "City Certification").

               
(d)     Promptly following the Purchaser's receipt of
the Title Commitment, the Survey or the City Certification, whichever is latest,
Purchaser shall notify RLA in writing (the "Defect Notice") of any
unacceptable Encumbrances or other matters disclosed by either the Title
Commitment, the Survey or the City Certification (individually a "Disapproved
Encumbrance" and collectively the "Disapproved Encumbrances"). RLA
agrees to use its commercially reasonable efforts to eliminate the Disapproved
Encumbrances or otherwise resolve the Disapproved Encumbrances to the
satisfaction of Purchaser on or before the Closing 

-40-

Date. If RLA elects not to cause any Disapproved Encumbrance to be eliminated
or otherwise resolved, Purchaser shall have the right, in its sole discretion to
notify RLA and Seller of Purchaser's election to either waive such objection and
proceed with the Closing, or to terminate this Agreement. Absent any notice from
Purchaser prior to Closing, Purchaser shall be deemed to have elected to waive
any Disapproved Encumbrance.

        8.7     
[RESERVED]

        8.8     
Employee Matters. 

               
(a)     Purchaser intends to offer employment to
substantially all individuals employed by Seller who, on the Closing Date, work
for the Business. For all such employment offers that are accepted, employment
will commence effective on the day following the Closing Date. The terms and
conditions of Purchaser's offers of employment to the employees of the Business
will be determined in Purchaser's sole discretion (subject to Section 8.8(b) and
8.8(c) below).

               
(b)     Except with respect to Michael Smith, Dennis
Barrick and Richard Zadrejko, Purchaser will provide initial wages and benefits
to all employees of the Business who accept Purchaser's offer of employment ("Transferred
Employees") that are reasonably equivalent, in the aggregate, to the
compensation and benefits received by the Transferred Employees from Seller as
of the Closing Date. With respect to Transferred Employees, Purchaser and Seller
agree to cooperate fully in the transition of any such employees to employment
with Purchaser. Nothing contained in this Section will be construed to affect
any right Purchaser or its Affiliates may have after the Closing to terminate
the employment of any Transferred Employee at any time.

               
(c)     For the purposes of satisfying the service
requirements, if any, to participate in Purchaser's employee pension and welfare
benefit plans ("Purchaser's Employee Plans"), Purchaser will treat
service by each of the Transferred Employees with Seller as service with
Purchaser. For purposes of vesting in benefits payable under Purchaser's
employee pension benefit plans ("Purchaser's Pension Plans"), but not for
purposes of computing the amount of the benefits, or the existence of a benefit,
under Purchaser's Pension Plans, Purchaser will treat service by each of the
Transferred Employees with Seller as service with Purchaser, provided that such
service will not be recognized to the extent that such recognition would result
in duplication of benefits (or is not recognized for such purposes under
Purchaser's Pension Plans). In addition, as provided for in Section 1.1 (Assumed
Expenses), Purchaser will recognize and assume responsibility for vacation hours
and sick time accrued by Transferred Employees under Seller's vacation policy on
or before the Closing Date.

               
With the exception of liabilities included in the Assumed Expenses, Purchaser is
not assuming, under this Agreement or otherwise, and the Seller is and shall
remain fully 

-41-

responsible for any obligation, responsibility or liability, whether
contractual or statutory, arising out of the termination of employees not hired
by Purchaser, or, in the case of Transferred Employees, any such obligations,
responsibilities or liabilities that relate to their employment with Seller for
the period of time up until the Closing.

               
(d)     Except for Purchaser's agreements in Section
8.8(b) and (c), after the Closing nothing herein expressed or implied confers
upon any former employee of Seller, or any other Person, any rights or remedies
(including, but not limited to, any right to employment, or continued
employment, for any specified period) or any right to any particular benefits in
connection with any employment of any nature or kind whatsoever under or by
reason of this Agreement.

               
(e)     Seller is responsible for providing all
notices and other communications to employees of Seller and any Governmental
Authority that are required under the Worker Adjustment and Retraining
Notification Act (the "WARN Act"). Seller shall offer, or cause to be
offered by any ERISA Affiliate, continuation coverage as required by COBRA to
those individuals, if any, who are eligible to elect such coverage by reason of
the transaction contemplated by this Agreement. Seller shall provide, or cause
to be provided, all certifications required by Code Section 9801(e) and all
applicable notifications of any conversion rights or privileges available under
any Employee Plan that arise as a result of the transaction contemplated by this
Agreement.

               
(f)     Purchaser and Seller agree to work together
to accomplish direct rollovers of the Transferred Employees' account balances,
including outstanding loans by Seller's 401(k) Plan to the Transferred
Employees, under Seller's 401(k) Plan to Purchaser's 401(k) Plan if such direct
rollovers are permissible under both Seller's and Purchaser's respective 401(k)
Plans.

        8.9     
Removal of Excluded Assets. Seller agrees that, prior to the
Closing Date or within 10 business days after the Closing Date, Seller will, at
its expense, remove from the Real Property all Excluded Assets without causing
any material interference or disruption of the business or operations of
Purchaser or resulting in any cost to Purchaser. Seller will provide Purchaser
with two (2) days notice prior to removing any Excluded Assets.

        8.10    
Warranty Obligations.

               
(a)     Subject to Paragraph (b) of this Section
8.10, Purchaser agrees to assume and satisfy all obligations of Seller to repair
or replace any product manufactured and sold by Seller or to give monetary
credit under the terms and conditions of the product warranties delivered
pursuant to Section 4.19 hereof or described in Schedule 4.19 (the "Warranty
Obligations").

               
(b)     The Warranty Obligations shall not include
any claim by any customer of Seller with respect to any product sold prior to
the Closing Date for bodily injury, property 

-42-

damage or consequential or special damages, whether arising out of any breach
of warranty relating to such products or whether based on any product liability,
strict liability, breach of contract or other legal theory, all of which shall
be considered Retained Liabilities for purposes of this Agreement. Purchaser and
Seller shall consult and cooperate with each other regarding all Warranty
Obligations.

        8.11    
Consents and Best Efforts.

               
(a)     As soon as practicable, Purchaser and Seller,
as applicable, will continue or commence all reasonable action required
hereunder to obtain all consents, approvals and agreements of, and to give all
notices and make all filings with, any Person as may be necessary to authorize,
approve or permit the full and complete sale, conveyance, assignment or transfer
of the Purchased Assets, free of Encumbrances, by a date early enough to allow
the sale hereunder to be consummated by the Closing Date including but not
limited to the approval of the assignment of existing Seller print positions to
Purchaser. Purchaser and Seller agree to use commercially reasonable best
efforts to satisfy all conditions precedent to their respective obligations to
consummate the transactions contemplated by this Agreement.

               
(b)     Seller and Shareholder shall not, nor shall
Seller or Shareholder authorize any of their Representatives, directly or
indirectly, (i) to solicit, initiate or encourage the submission of any proposal
by any Person with respect to, or which includes, a merger, consolidation or
acquisition of Seller or a purchase of all or any significant portion of the
assets of Seller, or any other transaction that would involve a change of
ownership or control of Seller or any of the Purchased Assets ("Acquisition
Proposal"), (ii) to participate in any discussions or negotiations
regarding, or furnish to any Person any information with respect to, or take any
action to facilitate any inquiries or the making of any proposal that
constitutes, or may reasonably be expected to lead to, any Acquisition Proposal.
Notwithstanding the foregoing, Seller shall promptly notify Purchaser orally and
in writing of (x) the receipt by either of the Seller. Shareholder or any of
their Representatives after the date hereof of any Acquisition Proposal, (y) the
material terms and conditions thereof and (z) the identity of the Person(s) who
has made the Acquisition Proposal.

9.     SURVIVAL AND
INDEMNIFICATION

        9.1     
Survival of Representations, Warranties, Covenants and Indemnities.
The representations and warranties of the parties to this Agreement shall
survive the Closing until the third anniversary of the Closing Date, at which
time they shall terminate, except that (a) the representations and warranties
set forth in Section 4.5 shall survive the Closing until all applicable statutes
of limitation, as extended, shall have expired; (b) there shall be no time
limitation on the representations and warranties of Seller set forth in Section
4.20; and (c) any claims made prior to the expiration of the foregoing
applicable survival periods with respect to 

-43-

any Loss (as hereinafter defined) arising out of any breach of any
representation and warranty by any party, shall survive until the liability
shall be finally determined. The covenants of the parties to this Agreement, and
the indemnities with respect thereto, including but not limited to the covenants
and indemnities set forth in this Article 9, shall survive the Closing until
they have been fully satisfied or otherwise discharged. 

        9.2     
Definitions. For purposes of this Article 9:

               
"Losses" means all losses, damages (including, without limitation,
punitive damages and consequential damages payable to a third party in
connection with Third Party Actions, but otherwise excluding lost profits or
consequential damages incurred by the Indemnified Person), liabilities, payments
and obligations, and all expenses related thereto. Losses shall include any
reasonable legal fees and costs incurred by any of the Indemnified Persons
subsequent to the Closing in defense of or in connection with any alleged or
asserted liability, payment or obligation, whether or not any liability or
payment, obligation or judgment is ultimately imposed against the Indemnified
Persons and whether or not the Indemnified Persons are made or become parties to
any such action.

               
"Indemnified Person" means any person entitled to be indemnified under
this Article 9.

               
"Indemnifying Person" means any person obligated to indemnify another
person under this Article 9.

               
"Purchaser's Indemnified Persons" means the Purchaser, its Affiliates and
their directors, officers, employees, stockholders and agents.

               
"Seller's Indemnified Persons" means Shareholder, RLA and Seller, and
their directors, officers, employees and agents.

               
"Third Party Action" means any written assertion of a claim, or the
commencement of any action, suit, or proceeding, by a third party as to which
any person believes it may be an Indemnified Person hereunder.

        9.3     
Indemnification by Seller, RLA and Shareholder.

               
(a)     Subject to the limitations in paragraph (b)
of this Section 9.3, Seller, RLA and Shareholder agree, jointly and severally,
to defend, indemnify and hold harmless Purchaser's Indemnified Persons from and
against all Losses directly or indirectly incurred by or sought to be imposed
upon any of them:

               
(i)     resulting from or arising out of any breach
of any of the representations or warranties (other than those in Sections 4.2
and 4.20) made by Seller, RLA and/or Shareholder in 

-44-

or pursuant to this Agreement or in any agreement, document or instrument
executed and delivered pursuant hereto or in connection with the Closing;

               
(ii)     resulting from or arising out of any breach
of any of the representations or warranties made by Seller, RLA and Shareholder
pursuant to Section 4.2 or 4.20; 

               
(iii)     resulting from or arising out of any breach
of any covenant or agreement made by Seller, RLA or Shareholder in or pursuant
to this Agreement;

               
(iv)     except with respect to environmental matters
addressed in Section 9.3(c) of this Agreement, resulting from or in respect of
any Retained Liability or any liability or obligation of Seller or RLA not
included in the Assumed Liabilities, including but not limited to any liability,
payment or obligation arising out of any Proceeding against (A) Seller or RLA,
whether or not described or required to be described on Schedule 4.14, or
(B) against any Purchaser Indemnified Person (excluding only the Assumed
Liabilities) arising from Seller's operation of the Business or RLA's ownership
of the Real Property prior to Closing.;

               
(v)     resulting from or arising out of any
liability, payment or obligation in respect of any Tax of any kind or
description (including interest and penalties with respect thereto) attributable
to Seller, RLA or any corporation that was merged with or liquidated into Seller
or RLA, or the possession or use of the Purchased Assets or the Real Property
for all periods, or portions thereof, ending on or before the Closing Date; and

               
(vi)     resulting from or arising out of any
Employee Plan or any other obligation, responsibility or liability, whether
contractual or statutory, relating to any of Seller's employees' employment with
Seller and the termination of Seller's employees' employment with Seller.

               
(b)     The right to indemnification under paragraph
(a) of this Section 9.3 is subject to the following limitations:

               
(i)     Seller, RLA and Shareholder shall have no
liability under paragraph (a) unless one or more of the Purchaser's Indemnified
Persons gives written notice to the Seller, RLA and Shareholder asserting a
claim for Losses, including reasonably detailed facts and circumstances
pertaining thereto, before the expiration of the period set forth below:

                                   
(A)     for claims under clauses (i) and (iii) of paragraph
(a) above, a period of three (3) years after the Closing Date;

                                   
(B)     for claims under clause (ii) of paragraph (a) above,
for so long as any claim may be made in respect of such matters under any
applicable statute of limitations; and

-45-

                                   
(C)     for claims under clauses (iv), (v) and (vi) of
paragraph (a) above, in perpetuity.

               
(ii)     Indemnification for claims under clause (i) of
Section 9.3(a) above (other than for fraud) shall be payable by the Seller, RLA
and Shareholder hereunder only if and to the extent that the aggregate amount of
all Losses hereunder by the Purchaser's Indemnified Persons shall exceed $25,000
(the "Basket"), whereupon Seller, RLA and Shareholder jointly and
severally shall be responsible for paying all such amounts in excess of the
Basket.

               
(iii)     The limitations on the period of survival in this
Section 9.3 shall not apply to any covenant or undertaking contained in Articles
6, 8 and 11 of this Agreement which is to be performed by Seller, RLA or
Shareholder following the Closing.

               
(c)     In addition to the provisions of Section
9.3(a), Seller, RLA and Shareholder agree, jointly and severally, to indemnify
and hold harmless the Purchaser Indemnified Persons for, and will pay to
Purchaser and the other Purchaser Indemnified Persons the amount of, any Losses
arising, directly or indirectly, from or in connection with:

               
(i)     Any Environmental, Health and Safety
Liabilities arising out of or relating to: (A) the ownership, operation or
condition at any time on or prior to the Closing Date of the Facilities or any
other properties and assets (whether real, personal or mixed and whether
tangible or intangible) in which Seller or RLA has or had an interest, including
but not limited to any matters identified in, or covered in any of the reports
listed in, Schedule 4.17, or (B) any Hazardous Materials or other
contaminants that were present on or at the Facilities or such other properties
and assets at any time on or prior to the Closing Date; or (C) any Hazardous
Materials or other contaminants, wherever located, that were generated,
transported, stored, treated, Released or otherwise handled by Seller or RLA (or
by any other Person for whose conduct Seller or RLA is or may be held
responsible) at any time or prior to the Closing Date, or (D) any Hazardous
Activities with respect to the Facilities or relating to the Business that were
conducted by Seller (or by any other Person for whose conduct Seller or RLA is
or maybe held responsible), including but not limited to any matter identified
in, or covered by the report listed in, Schedule 4.17; or

               
(ii)     Any bodily injury (including illness,
disability and death, and regardless of when any such bodily injury occurred,
was incurred or manifested itself), personal injury, property damage (including
trespass, nuisance, wrongful eviction and deprivation of the use of real
property), or other damage of or to any Person, including any employee or former
employee of Seller or RLA (or any other Person for whose conduct Seller or RLA
is or may be held responsible), in any way arising from or allegedly arising
from any Hazardous Activity conducted at or relating to the Facilities or
Seller's business prior to the Closing Date, including but not limited to
Hazardous Material that was (A) present on or before the Closing Date on or at
the Facilities (or present on any other property, if such Hazardous Material
emanated from any of 

-46-

the Facilities and was present on any of the Facilities on or prior to the
Closing Date) or (B) Released by Seller or RLA (or any other Person for whose
conduct Seller or RLA is or may be held responsible), at any time on or prior to
the Closing Date.

Seller, RLA and Shareholder shall have no liability under this paragraph (c)
unless one or more of the Purchaser's Indemnified Persons gives written notice
to the Seller, RLA and or Shareholder asserting a claim for Losses, including
reasonably detailed facts and circumstances pertaining thereto, before the
seventh (7th) anniversary of the Closing Date.

        9.4     
Indemnification by Purchaser.

               
(a)     Subject to the limitations in paragraph (b)
of this Section 9.4, from and after the Closing Date, Purchaser shall indemnify
and hold harmless Seller's Indemnified Persons from any and all Losses directly
or indirectly incurred by or sought to be imposed upon them;

               
(i)     resulting from or arising out of any breach
of any of the representations or warranties made by Purchaser, in or pursuant to
this Agreement or in any agreement, document or instrument executed and
delivered pursuant hereto or in connection with the Closing;

               
(ii)     resulting from or arising out of any breach
of any covenant or agreement made by Purchaser in or pursuant to this Agreement
including but not limited to any failure to pay or otherwise discharge any of
the Assumed Liabilities; or

               
(iii)     resulting from the conduct of the Business
by Purchaser after Closing, subject to Purchaser's right to seek indemnification
under Section 9.3(c).

               
(b)     The right to indemnification under paragraph
(a) of this Section 9.4 is subject to the following limitations:

               
(i)     Purchaser shall have no liability under
paragraphs (a) unless a Seller's Indemnified Person gives written notice to
Purchaser asserting a claim for Losses, including reasonably detailed facts and
circumstances pertaining thereto, before the expiration of the period set forth
below:

                                       
(A)     for claims under clause (i) of paragraph (a) above,
a period of three (3) years from the Closing Date to the third anniversary of
the Closing Date.

                                       
(B)     for claims under clauses (ii) and (iii) of paragraph
(a) or under claim (v) above, for so long as any claim may be made with respect
thereto under any applicable statute of limitations.

               
(ii)     Indemnification for claims under paragraph (a)(i)
shall be payable by Purchaser only if and to the extent that the aggregate
amount of all Losses hereunder by the 

-47-

Seller's Indemnified Persons shall exceed the Basket, whereupon Purchaser
shall be responsible for paying all such amounts in excess of the Basket for
indemnification.

               
(c)     The limitations on the period of survival in
this Section 9.4 shall not apply to any covenant or undertaking contained in
this Agreement (or in any agreement or instrument delivered pursuant hereto)
which is to be performed by Purchaser following the Closing.

        9.5     
Payment of Indemnification; Escrow.

               
(a)     Claims for indemnification under this Article
9 shall be paid or otherwise satisfied by Indemnifying Persons within 30 days
after notice thereof is given by the Indemnified Person unless they are being
contested in good faith. If an Indemnified Person initiates legal action against
an Indemnifying Person to enforce its right to indemnification under this
Article 9, the prevailing party shall have all of its reasonable and related
legal fees and expenses paid by the other party unless otherwise ordered by the
court.

               
(b)     In order to provide the Purchaser Indemnified
Persons with partial security for the indemnity obligations of Seller and
Shareholder under this Article 9, Purchaser, Seller and Shareholder agree to
execute and deliver the Escrow Agreement to the Escrow Agent at or before
Closing. Purchaser shall pay the fees of the Escrow Agent, and the Purchaser and
Seller shall each be responsible for one-half of any other expenses of, or
amounts payable to, the Escrow Agent under the Escrow Agreement.

        9.6     
Defense of Third Party Actions.

               
(a)     Promptly after receipt of notice of any Third
Party Action, any person who believes he, she or it may be an Indemnified Person
will promptly give notice to the potential Indemnifying Person of such action.
The omission to give such notice to the Indemnifying Person will not relieve the
Indemnifying Person of any liability hereunder unless it was prejudiced thereby,
nor will it relieve it of any liability which it may have other than under this
Article 9.

               
(b)     Upon receipt of a notice of a Third Party
Action, the Indemnifying Person shall have the right, at its option and at its
own expense, to participate in and be present at the defense of such Third Party
Action, but not to control the defense, negotiation or settlement thereof, which
control shall remain with the Indemnified Person, unless the Indemnifying Person
makes the election provided in paragraph (c) below.

               
(c)     By written notice within 45 days after
receipt of a notice of a Third Party Action, an Indemnifying Person may elect to
assume control of the defense, negotiation and settlement thereof, with counsel
reasonably satisfactory to the Indemnified Person; provided, however, that the
Indemnifying Person agrees (i) to promptly indemnify the Indemnified Person for
its expenses to date, and (ii) to hold the Indemnified Person harmless from and
against any 

-48-

and all Losses caused by or arising out of any settlement of the Third Party
Action approved by the Indemnifying Person or any judgment in connection with
that Third Party Action. The Indemnifying Persons shall not in the defense of
the Third Party Action enter into any settlement which does not include as a
term thereof the giving by the third party claimant of an unconditional release
of the Indemnified Person, or consent to entry of any judgment that prohibits,
restricts or regulates any business operation of the Purchaser, except with the
consent of the Indemnified Person.

               
(d)     Upon assumption of control of the defense of
a Third Party Action under paragraph (c) above, the Indemnifying Person will not
be liable to the Indemnified Person hereunder for any legal or other expenses
subsequently incurred in connection with the defense of the Third Party Action,
other than reasonable expenses of investigation.

               
(e)     If the Indemnifying Person does not elect to
control the defense of a Third Party Action under paragraph (c), the
Indemnifying Person shall promptly reimburse the Indemnified Person for expenses
incurred by the Indemnified Person in connection with defense of such Third
Party Action, as and when the same shall be incurred by the Indemnified Person.

               
(f)     Any person who has not assumed control of the
defense of any Third Party Action shall have the duty to cooperate with the
party which assumed such defense.

        9.7     
Miscellaneous.

               
(a)     If any Loss is recoverable under more than
one provision hereof, the Indemnified Person shall be entitled to assert a claim
for such Loss until the expiration of the longest period of time within which to
assert a claim for Loss under any of the provisions which are applicable.

               
(b)     To the extent that more than one
representation and warranty contained in this Agreement requires the same
disclosure, the appearance of such disclosure on any single Schedule shall serve
as disclosure for all of the representations and warranties to which such
disclosure applies so long as the matter is disclosed on any applicable Schedule
in sufficient detail so as to make it apparent to Purchaser that such disclosure
is relevant to the applicable representation and warranty. Notwithstanding the
foregoing, Seller agrees that it shall use all reasonable efforts to reference
each disclosure on each Schedule to which it applies.

        9.8     
Dispute Resolution.

               
(a)     Negotiated Resolution - Except as
provided for in Section 9.8(d), if any dispute arises (i) out of or relating to,
or the unlawful termination of this Agreement or any alleged breach thereof,
(ii) with respect to any of the transactions or events contemplated hereby or
(iii) with respect to any Person's right to indemnification ("Dispute"),
the party desiring to resolve such Dispute will deliver a written notice
describing such Dispute with reasonable 

-49-

specificity to the other parties ("Dispute Notice"). If any party delivers a
Dispute Notice pursuant to this Section 9.8, the Seller and Purchaser or their
designees involved in the Dispute will meet at least twice within the 30 day
period commencing with the date of the Dispute Notice and in good faith will
attempt to resolve such Dispute, including any rejected indemnification claim.

               
(b)     Mediation - If any Dispute is not
resolved or settled by the parties as a result of negotiation pursuant to
Section 9.8(a) above, the parties will submit the Dispute to non-binding
mediation before a retired judge of a federal District Court in Philadelphia or
some similarly qualified, mutually agreeable individual. The parties will bear
the costs of such mediation equally.

               
(c)     Arbitration - If the Dispute is
not resolved by mediation pursuant to Section 9.8(b) above, or if the parties
fail to agree upon a mediator, within ninety (90) days after the Dispute Notice
or Indemnification objection Notice (as the case may be), the Dispute will be
settled by arbitration conducted in Philadelphia, Pennsylvania which shall be in
accordance with the rules and procedures of JAMS/Endispute then in effect with
respect to commercial disputes. The arbitration of such issues, including the
determination of any amount of damages suffered by any party hereto by reason of
the acts or omissions of any party, shall be final and binding upon all parties.
Notwithstanding the foregoing, the arbitrator shall not be authorized to award
punitive damages with respect to any such claim or controversy, nor shall any
party seek punitive damages relating to any matter under, arising out of or
relating to this Agreement in any other forum. Except as otherwise set forth in
the Agreement, the cost of any arbitration hereunder, including the cost of the
record or transcripts thereof, of any administrative fees, and all other fees
involved including reasonable attorneys' fees incurred by the party determined
by the arbitrator to be the prevailing party, shall be paid by the party
determined by the arbitrator not to be the prevailing party, or otherwise
allocated in an equitable manner as determined by the arbitrator.

               
(d)     Equitable Relief - The
provisions of this Section 9.8 shall not preclude Purchaser from seeking an
injunction or other equitable relief to enforce the provisions of Section 6.3,
Section 8.11(b) or Sections 11.1-11.3.

10.     TERMINATION

        10.1    
Termination by Mutual Consent. This Agreement may be
terminated at any time prior to the Closing Date by mutual written consent of
Seller and Purchaser.

        10.2    
Termination by either Seller or Purchaser. This Agreement
may be terminated by Seller and Shareholder (on the one hand) or Purchaser (on
the other hand) if:

               
(a)     The Closing is not consummated on or before
February 21, 2005 (or such later date as shall have been approved by Seller and
Purchaser) (the "Termination Date"); 

-50-

provided, however, that the right to terminate this Agreement under this
Section 10.2(a) shall not be available to any party whose failure to fulfill any
obligation under this Agreement has been the cause of, or resulted in, the
failure of the Closing to occur on or before the Termination Date.

               
(b)     A court of competent jurisdiction or
Governmental Authority shall have issued an order, decree or ruling or taken any
other action (which order, decree or ruling the parties shall use their
commercially reasonable efforts to lift), in each case permanently restraining,
enjoining or otherwise prohibiting the transactions contemplated by this
Agreement, and such order, decree, ruling or other action shall have become
final and nonappealable.

        10.3    
Effect of Termination. In the event of the termination of
this Agreement under this Article 10, this Agreement shall become void and have
no effect, without any liability on the part of Purchaser or Seller, Shareholder
or RLA (or their respective Representatives) to the other party except (i) as
provided in Section 6.3 and (ii) as provided in Article 9, to the extent that
such termination results from the breach by any party hereto of any material
representation, warranty, covenant or agreement hereunder.

11.     NON-COMPETITION AND
CONFIDENTIALITY

        11.1    
Non-Competition. 
In consideration of the Purchase Price and the covenants
of Purchaser set forth in this Agreement, Seller and Shareholder agree that they
will not (i) for the period beginning on the Closing Date and ending five (5)
years thereafter directly or indirectly, for its, his or their own account or as
an agent, trustee, consultant or member, partner, shareholder or other equity
holder of any corporation, firm, company, partnership or other entity (other
than as an owner of 2% or less of any class of publicly traded securities), or
otherwise, anywhere in the world (a) design, manufacture, sell, distribute or
market or attempt to sell, distribute or market any product or service that is
competitive with the Business as considered on the date hereof or any product
identified in the current product catalogue of the Business as capable of being
manufactured by the Business (the "Restricted Activity"); or (b) call on
or solicit business from any current customer of the Business or any customer
who has purchased products or services from the Business within 12 months prior
to the date of this Agreement for any Restricted Activity.

        11.2    
Confidentiality. Seller and Shareholder acknowledge and
agree that from and after the Closing Date all confidential information used in
the Business or which is included in the Purchased Assets that is known by
Seller or Shareholder as of Closing or which may be obtained by Seller or
Shareholder after Closing, in connection with the Ancillary Agreements or
otherwise (collectively, "Confidential Information"),
is the property of Purchaser. Therefore, Seller and Shareholder each agrees that
it and he will not, at any time prior to or after Closing, disclose to any
unauthorized Person or use for its or his own account or for the benefit of any
third Person any Confidential Information, whether Seller or Shareholder has
such information in the memory of Shareholder or Seller's employees or embodied
in writing or other physical form, 

-51-

without Purchaser's prior written consent, unless and to the extent that (i)
the Confidential Information is or becomes generally known to and available for
use by the public other than as a result of a breach of this Section 11.2; (ii)
becomes available to Seller or Shareholder on a non-confidential basis from a
third party where Seller or Shareholder has no Knowledge that the third party is
bound by a confidentiality agreement or any legal, fiduciary or other obligation
restricting disclosure; or (iii) it is used by Seller, its employees, agents or
representatives in furtherance of Seller's performance of this Agreement or of
the Ancillary Agreements. If Seller or Shareholder becomes compelled in any
Proceeding or is requested by a Governmental Authority to make any disclosure
that is prohibited or otherwise constrained by this Section 11.2, Seller and
Shareholder shall provide Purchaser with as much prior notice thereof as
reasonably possible and may disclose that portion (and only that portion) of the
Confidential Information that it is legally compelled to disclose or that has
been requested by such Governmental Authority.

        11.3    
Remedies. The covenants
contained in Section 11.1 and 11.2 relate to matters which are of a special,
unique and extraordinary character and a violation of any of the terms of
Section 11.1 or 11.2 will cause irreparable injury to Purchaser, the amount of
which will be impossible to estimate or determine and which cannot be adequately
compensated. Therefore, Purchaser will be entitled to an injunction, restraining
order or other equitable relief from any court of competent jurisdiction in the
event of any breach of Section 11.1 or 11.2, and Seller and Shareholder each
hereby consents to the granting by any court of an injunction or other equitable
relief, without the necessity of actual monetary loss being proved, in order
that the breach or threatened breach of such provisions may be effectively
restrained. The rights and remedies provided by this Section 11.3 are cumulative
and in addition to any other rights and remedies which Purchaser may have
hereunder or at law or in equity.

12.     GENERAL PROVISIONS

        12.1    
Notices. All notices and other communications required or
permitted by this Agreement shall be made in writing and any such notice or
communication shall be deemed delivered (a) when delivered in person, by
recognized overnight courier or transmitted by facsimile or telecopier, or (b)
five (5) days after it has been sent by certified mail, as follows:

               
A.     Seller, RLA and/or Shareholder:

                       
Arthur R. Riben

                       
2430 Riviera Drive

                       
Delray Beach, Florida 33445

                       
Fax No.: 561-278-2539

                       
with a copy to: 

-52-

                       
Robert A. Rosin, Esq.

                       
215 South Broadway

                       
Philadelphia, PA 19107

                       
Fax No.: 215-732-2121

               
B.     PURCHASER:

                       
Spectrum Microwave, Inc.

                       
8031 Avonia Road

                       
Fairview, Pennsylvania 16415

                       
Attention: John P. Freeman, CFO

                       
Fax No.: 814-835-1600

                       
with a copy to:

                       
Hodgson Russ LLP

                       
One M & T Plaza

                       
Suite 2000

                       
Buffalo, New York 14203

                       
Attn: Robert B. Fleming, Jr., Esq.

                       
Fax No.: 716-849-0349

Any party may from time to time designate by written notice pursuant to this
Section 12.1 any other address or party to which such notice or communication or
copies thereof shall be sent. 

        12.2    
Assignment. Purchaser may (i) assign its rights to purchase
the Purchased Assets and/or the Real Property to an Affiliate of Purchaser,
provided that, notwithstanding any such assignment, Purchaser shall remain
primarily liable for all of its obligations under this Agreement and (ii) after
the Closing, assign its rights under this Agreement to any Person who acquires
the Business, directly or indirectly, from Purchaser. Except as provided in the
preceding sentence, no party shall assign this Agreement or any rights,
interests or obligations hereunder, or delegate performance of any of its
obligations hereunder, without the prior written consent of the other party.

        12.3    
Waiver, Amendment, etc. This Agreement may not be amended
or supplemented, and no waivers of or consents to departures from the provisions
hereof shall be effective, unless set forth in a writing signed by, and
delivered to, both parties. No failure to delay of a party in exercising any
power or right under this Agreement will operate as a waiver thereof, nor will
any single or partial exercise of any right or power, or any abandonment or
discontinuance of steps to enforce such right or power, preclude any other or
further exercise thereof or the existence of any other right or power.

-53-

        12.4    
Binding Agreement; No Third Party Beneficiaries. This
Agreement will be binding upon and inure to the benefit of the parties and their
successors and permitted assigns. Nothing expressed or implied herein is
intended or will be construed to confer upon or to give any other Person any
rights or remedies by virtue hereof.

        12.5    
Severability. The invalidity or unenforceability of any
provision hereof in any jurisdiction will not affect the validity or
enforceability of the remainder hereof in that jurisdiction or the validity or
enforceability of this Agreement, including that provision in any other
jurisdiction. To the extent permitted by applicable law, each party waives any
provision of applicable law that renders any provision hereof prohibited or
unenforceable in any respect. If any provision of this Agreement is held to be
unenforceable for any reason, it shall be adjusted rather than avoided, if
possible, in order to achieve the intent of the parties to the extent possible.

        12.6    
Counterparts; Facsimile. This Agreement may be executed by
facsimile signature transaction and in one or more counterparts each of which
when so executed and delivered will be deemed an original but all of which will
constitute one and the same Agreement.

        12.7    
Headings. The headings used in this Agreement are for
reference purposes only and shall not be given substantive effect.

        12.8    
Governing Law; Venue. This Agreement shall be governed by
and interpreted in accordance with the laws of Pennsylvania without reference to
its principles of conflicts of laws. 

        12.9    
Entire Agreement. This Agreement, the Schedules, the
Exhibits hereto and the Additional Agreements embody the entire agreement and
understanding of the parties in respect of any subject matter contained herein.
This Agreement supersedes all prior agreements and understandings between the
parties with respect to such subject matter including, but not limited to, (a)
the Confidentiality Agreement among Purchaser and Seller dated September 21,
2004 and (b) the letter of intent among Purchaser and Seller, Shareholder and
RLA dated on or about November 8, 2004 (as amended).

[SIGNATURES FOLLOW ON NEXT PAGE]

-54-

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

	 	SPECTRUM MICROWAVE, INC.
	 	 
	 	By:	
    /s/ John P. Freeman
	 	
     
	
    Senior Vice President and 

    Chief Financial Officer 	
    (Title)
	 	 
	 	AMPLIFONIX, INC.
	 	 
	 	By:	
    /s/ Arthur Riben
	 	
     	
    President                                
	
    (Title)
	 	 
	 	R. LAKE ASSOCIATES
	 	 
	 	By:	
    /s/ Arthur Riben
		
    	
    Partner	
    (Title)
	 	 
	 	
    /s/ Arthur Riben

	 	DR. ARTHUR RIBEN

-55-

	
    INDEX OF SCHEDULES AND EXHIBITS

	SCHEDULES:	 
	 	 
	Schedule 1.1(A) 	Assumed Contracts
	Schedule 1.1(B) 	Permitted Assumed Expenses
	Schedule 1.1(C) 	Additional Excluded Assets
	Schedule 1.1(D) 	Additional Purchased Assets
	Schedule 2.5 	Allocation of Purchase Price
	Schedule 4.3 	Violations and Conflicts; Consents
	Schedule 4.5 	Taxes
	Schedule 4.6 	Real Property
	Schedule 4.7 	Tangible Personal Property
	Schedule 4.8 	Intellectual Property Matters
	Schedule 4.9(a) 	Financial Statements
	Schedule 4.9(b) 	Accounts Receivable
	Schedule 4.9(c) 	Inventory
	Schedule 4.10 	Employee Benefit Plans
	Schedule 4.11(a) 	Labor Matters
	Schedule 4.12(a) 	Insurance
	Schedule 4.13(a) 	Contracts
	Schedule 4.13(b) 	Affiliate Contracts; Validity
	Schedule 4.13(c) 	Defaults
	Schedule 4.14 	Litigation
	Schedule 4.15 	Noncompliance with Law
	Schedule 4.16(a) 	Lists of Permits, Licenses and Authorizations
	Schedule 4.16(b) 	Permits, Licenses, Etc. Lacking
	Schedule 4.17 	Environmental Matters
	Schedule 4.19 	Product and Warranty Matters
	Schedule 4.20 	Encumbrances
	Schedule 4.21 	Material Changes
	Schedule 5.3 	Purchaser Violations and Conflicts; Consents
	Schedule 7.1(b) 	Consents of Third Parties and Governmental Authorities
	 	 
	EXHIBITS:	 
	 	 
	Exhibit 2.3(a) 	Form of Escrow Agreement
	Exhibit 3.2(a)(ii) 	Form of Bill of Sale
	Exhibit 3.2(a)(iii) 	Form of Assignment and Assumption Agreement
	Exhibit 7.2(e) 	Opinion of Seller's Counsel
	Exhibit 7.2(j) 	Form of Michael Smith Non-Competition Agreement

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