Document:

Exhibit 10.20

EMPLOYMENT AGREEMENT

THIS
EMPLOYMENT AGREEMENT (the “Agreement”) is entered into
as of this 2nd day of February, 2007 by and between Rite Aid Corporation, a
Delaware corporation (the “Company”) and Pierre Legault (the “Executive”) and
shall be effective as of the date set forth in Section 1(a) below.

WHEREAS,
Executive understands that this Agreement is specifically contingent upon the
closing of the transaction between the Company and The Jean Coutu Group (PJC)
Inc. relating to the acquisition of the Brooks and  Eckerd drugstore chains (such acquisition
being referred to as, the “Transaction”). Subject to such closing, Executive
desires to provide the Company with his services and the Company desires to
hire and employ Executive on the terms and subject to the conditions set forth
herein.

NOW, THEREFORE,
in consideration of the mutual representations, warranties, covenants and
agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and
Executive (individually a “Party” and together the “Parties”), intending to be
legally bound, agree as follows:

1.               Effective
Date and Term Of Employment.

(a)   This
Agreement shall be effective as of the date of (and subject to the occurrence
of) the closing of the Transaction contemplated by the Stock Purchase
Agreement, dated as of August 23, 2006, between the Company and The Jean
Coutu Group (PJC) Inc, (the “Effective Date”). When the Effective Date has been
determined, the parties shall execute a memorandum to memorialize the same. In
the event the Transaction is not consummated for any reason, this Agreement
shall be null and void.

(b)   The term of Executive’s employment under this Agreement shall
commence on the Effective Date and, unless earlier terminated pursuant to Section 5
below, shall continue for a period ending on the date that is two (2) years
following the Effective Date (the “Original Term of Employment”). The Original
Term of Employment shall be automatically renewed for successive one-year terms
(the “Renewal Terms”) unless at least 180 days prior to the expiration of the
Original Term of Employment or any Renewal Term, either Party notifies the
other Party in writing that he or it is electing to terminate this Agreement at
the expiration of the then current Term of Employment. “Term” shall mean the
Original Term of Employment and all Renewal Terms. For purposes of this
Agreement, except as otherwise provided herein, the phrase “year during the
Term” or similar language shall refer to each 12-month period commencing
on the Effective Date or applicable anniversaries thereof.

2.                 Position And
Duties.

2.1   Generally.   During the Term, Executive shall serve as Chief
Administrative Officer and shall have such officer level duties,
responsibilities and authority as shall be assigned by the Company from time to
time. Executive shall have responsibilities with respect to the integration of
the Brooks/Eckerd chain with the Company. The Chief Financial Officer, Chief
Information Officer and Senior Vice President, Strategic Business Development
shall initially report to Executive, who shall report to the Chief Executive
Officer or President. Executive shall devote his full working time, attention,
knowledge and skills faithfully and to the best of his ability, to the duties
and responsibilities assigned by the Company in furtherance of the business
affairs and activities of the Company and its subsidiaries, affiliates and
strategic partners. Following termination of Executive’s employment for any
reason, Executive shall immediately resign from all offices and positions he
holds with the Company or any subsidiary.

2.2   Other Activities.   Anything
herein to the contrary notwithstanding, nothing in this Agreement shall
preclude the Executive from engaging in the following activities:  (i) serving on the board of directors of
a reasonable number of other corporations or the boards of a reasonable number
of trade associations 

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and/or charitable organizations, subject to the
Company’s approval, which shall not be unreasonably withheld, (ii) engaging
in charitable activities and community affairs, and (iii) managing his
personal investments and affairs, provided that such activities do not violate
Sections 6 or 7 below or materially interfere with the proper performance of
his duties and responsibilities under this Agreement. Executive shall at all
times be subject to, observe and carry out such rules, regulations, policies,
directions, and restrictions as the Company may from time to time establish
for  officers of the Company.

3.                 Compensation.

3.1   Base
Salary.   During
the Term, as compensation for his services hereunder, Executive shall receive a
salary at the annualized rate of Seven Hundred Fifty Thousand Dollars
($750,000) per year (“Base Salary” as may be adjusted from time to time), which
shall be paid in accordance with the Company’s normal payroll practices and
procedures, less such deductions or offsets required by applicable law or
otherwise authorized by Executive.

3.2   Annual
Performance Bonus.   The
Executive shall participate each fiscal year during the Term in the Company’s
annual bonus plan as adopted and approved by the Board or the Compensation
Committee from time to time. For the current fiscal year, Executive’s annual
bonus opportunity pursuant to such plan shall equal 110% (the “Annual Target
Bonus”) of the Base Salary, which shall be prorated based upon the Effective
Date. For subsequent fiscal years, the Annual Target Bonus may be adjusted and
shall be based upon the Board approved plan for that year.

3.3   Equity Awards.

(a)        Subject to the approval by and at the first meeting of the
Compensation Committee of the Board on or following the Effective Date,
Executive will be granted an option (the “Option”) to purchase 400,000 shares
of the Company’s Common Stock, par value $1.00 per share (“Company Stock”). The
Option shall (i) be a non-qualified stock option, (ii) have an
exercise price equal to the closing price of the Company Stock as reported on
the New York Stock Exchange (“NYSE “) on the date of grant, (iii) have a
term of ten (10) years following the date of grant, (iv) vest and
become exercisable as to one-fourth of the shares of the Company Stock subject
to the option on each of the first four (4) anniversaries from the date of
grant, (v) be subject to the acceleration exercise and termination
provisions set forth in Section 3.3(d) and Article 5 hereof and (vi) otherwise
be evidenced by and subject to the terms of the Company’s stock option and
equity plans.

(b)        Following the Effective Date and subject
to the approval by the Compensation Committee of the Board, Executive will be
recommended for participation in the Company’s Executive Equity Plan (the “EEP”).
Executive shall be eligible to participate in the EEP for the current fiscal
year, which shall be on a pro-rated basis.

(c)        Subject to the approval by and at the first meeting of the
Compensation Committee of the Board on or following:  (i) the Effective Date, Executive will
be granted 100,000 shares of restricted Company Stock, and (ii) the first
anniversary of the Effective Date, Executive will be granted an additional
100,000 shares of restricted Company Stock (the “Restricted Stock”). Subject to
(i) acceleration and forfeiture provisions set forth in Section 3.3(d) and
Article 5 hereof and (ii) the terms of the Company’s stock option and
equity plans, the restrictions applicable to the Restricted Stock shall lapse
as to one-third of such shares on each of the first three anniversaries from
the date of grant.

(d)        Upon the occurrence of a Change in Control of the Company
prior to the termination of Executive’s employment with the Company, the
Options awarded pursuant to subsection (a) above then held by Executive
shall immediately vest and become exercisable in full and all remaining
restrictions on any Restricted Stock granted to Executive pursuant to
subsection (c) above shall immediately lapse. For 

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purposes of this Agreement
“Change in Control” shall have the meaning set forth in the attached Appendix
A.

(e)        It is understood and acknowledged by
Executive that the securities underlying the Options and the Restricted Stock
may not be subject to an effective registration statement under the federal
securities laws until some time after the Effective Date. The Company agrees
that if, as of the date of termination of Executive’s employment under the
circumstances described in Sections 5.2 (except termination for Cause), 5.3 and
5.5, the securities underlying the then vested and exercisable portion of the
Options are not subject to an effective registration statement, the 90-day
periods in Section 5.2 (except termination for Cause), 5.3 and 5.5, as
applicable, will be deemed to run from the first date such securities become
subject to an effective registration statement.

4.                 Additional
Benefits.

4.1   Employee
Benefits.   During
the Term, Executive shall be entitled to participate in the employee benefit
plans (including, but not limited to medical, dental and life insurance plans,
short-term and long-term disability coverage, the Supplemental Executive Retirement
Plan (“SERP”) and 401(k) plans) in which management employees of the
Company are generally eligible to participate, subject to any eligibility
requirements and the other generally applicable terms of such plans. The
monthly credit to Executive’s SERP account shall equal the lesser of: (i) 2%
of Executive’s Base Salary, or (ii) $15,000. Executive agrees to submit to
a physical examination if required to do so by the Company’s insurance carrier
to obtain life and disability insurance covering Executive.

4.2   Expenses.   During the Term, the Company shall reimburse
Executive for any expenses reasonably incurred by him in furtherance of his
duties hereunder, including without limitation travel, meals and
accommodations, upon submission of vouchers or receipts and in compliance with
such rules and policies relating thereto as the Company may from time to
time adopt or as may be required in order to permit such payments to be taken
as proper deductions by the Company or any subsidiary under the Internal Revenue
Code of 1986, as amended, and the rules and regulations adopted pursuant
thereto now or hereafter in effect.

4.3   Vacation.   Executive shall be entitled to four (4) weeks
paid vacation during each year of the Term.

4.4   Automobile
Allowance.   During
the Term, the Company shall provide Executive with an automobile allowance of
$1,000 per month. In lieu of this allowance, Company agrees to pay the monthly
lease and other automobile expenses for Executive’s current vehicle for up to
six (6) months following the Effective Date.

4.5   Annual
Financial Planning Allowance.   During
each year of the Term, the Company shall provide Executive with an executive
planning allowance in the amount of $5,000.

4.6   Relocation
Expenses.   Executive shall be entitled to
benefits under the Company’s Executive Level relocation policy.

4.7   Signing
Bonus.   Company shall pay Executive a signing
bonus of $7,500 within 30 days of the Effective Date; provided, however, if
Executive’s employment is terminated by the Company for Cause or Executive
voluntarily without Good Reason within one (1) year following the
Effective Date, Executive shall reimburse and repay to Company the signing
bonus.

4.8   Indemnification.   The Company shall (a) indemnify and hold
Executive harmless, to the full extent permitted under applicable law, for,
from and against any and all losses, claims, costs, expenses, damages,
liabilities or actions (including security holder actions, in respect thereof)
relating to or arising out of the Executive’s employment with and service as an
Officer of the Company; and (b) pay all 

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reasonable costs, expenses and attorney’s fees
incurred by Executive in connection with or relating to the defense of any such
loss, claim, cost, expense, damage, liability or action, subject to Executive’s
undertaking to repay in the event it is ultimately determined that Executive is
not entitled to be indemnified by the Company. Following termination (except
for termination by the Company for Cause) of the Executive’s employment or
service with the Company, the Company shall cause any Director and Officer
liability insurance policies applicable to the Executive prior to such
termination to remain in effect for six (6) years following the date of
termination of employment.

5.                 Termination.

5.1   Termination
of Executive’s Employment by the Company for Cause.   The Company may terminate Executive’s employment
hereunder for Cause (as defined below). Such termination shall be effected by
written notice thereof delivered by the Company to Executive, indicating in
reasonable detail the facts and circumstances alleged to provide a basis for
such termination, and shall be effective as of the date of such notice in
accordance with Section 12 hereof. “Cause” as determined in reasonable
good faith by a committee comprised of three senior officers (one of which
shall be Executive’s supervisor) of the Company or the Board of Directors shall
mean:  (i) Executive’s gross
negligence or willful misconduct in the performance of the duties or
responsibilities of his position with the Company or any subsidiary, or failure
to timely carry out any lawful directive of the Company; (ii) Executive’s
misappropriation of any funds or property of the Company or any subsidiary; (iii) the
conduct by Executive which is a material violation of this Agreement or Company
Policy or which materially interferes with the Executive’s ability to perform
his duties; (iv) the commission by Executive of an act of fraud or
dishonesty toward the Company or any subsidiary; (v) Executive’s misconduct
or negligence which damages or injures the Company or the Company’s reputation;
(vi) Executive is convicted of or pleads to a felony involving moral
turpitude; or (vii) the use or imparting by Executive of any confidential
or proprietary information of the Company, or any subsidiary in violation of
any confidentiality or proprietary agreement to which Executive is a party.

5.2   Compensation
upon Termination by the Company for Cause or by Executive without Good Reason.   In the event of Executive’s termination of employment
(i) by the Company for Cause or (ii) by Executive voluntarily without
Good Reason:

(a)    Executive
shall be entitled to receive (i) all amounts of accrued but unpaid Base
Salary through the effective date of such termination, (ii) reimbursement
for reasonable and necessary expenses incurred by Executive through the date of
notice of such termination, to the extent otherwise provided under Section 4.2
above and (iii) all other vested payments and benefits to which Executive
may otherwise be entitled pursuant to the terms of the applicable benefit plan
or arrangement through the effective date of such termination (i), (ii) and
(iii), the (“Accrued Benefits”). All other rights of Executive (and, except as
provided in Section 5.6 below, all obligations of the Company) hereunder
or otherwise in connection with Executive’s employment with the Company shall
terminate effective as of the date of such termination of employment and
Executive shall not be entitled to any payments or benefits not specifically
described in this subsection (a) or (b) below.

(b)   Except as
provided in Section 3.3(e), any portion of any restricted stock or any
other equity incentive awards as to which the restrictions have not lapsed or
as to which any other conditions shall not have been satisfied prior to the
date of termination shall be forfeited as of such date and any portion of
Executive’s stock options that have vested and become exercisable prior to the
date of termination shall remain exercisable for a period of 90 days following
the date of termination of employment (or, such later date as may be permitted
by the relevant stock option or equity plan, or, if earlier, until the
expiration of the respective terms of the options), whereupon all such options
shall terminate; provided, however, in the event of termination of Executive by
the Company for Cause, any stock options that have not been exercised prior to
the date of termination shall immediately terminate as of such date.

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Any termination of Executive’s employment by Executive
voluntarily without Good Reason shall be effective upon 30 days notice to the
Company or such earlier date as the Company determines in its discretion and
designates in writing. A termination of Executive’s employment by the Company
for Cause or by the Executive other than for Good Reason shall not constitute a
breach of this Agreement.

5.3   Compensation
upon Termination of Executive’s Employment by the Company Other Than for Cause
or by Executive for Good Reason.   Executive’s
employment hereunder may be terminated by the Company other than for Cause or
by Executive for Good Reason. In the event that Executive’s employment
hereunder is terminated by the Company other than for Cause or by Executive for
Good Reason:

(a)    Executive
shall be entitled to receive (i) the Accrued Benefits, (ii) an amount
equal to two times the sum of Executive’s then Base Salary plus Annual Target Bonus
as of the date of termination of employment, such amount payable in equal
installments pursuant to the Company’s standard payroll procedures for
management employees over a period of two years following the date of
termination of employment, and (iii) continued health insurance coverage
for Executive and his immediate family for a period of two years following the
date of termination of employment.

(b)   The
Executive’s stock option awards held by Executive shall vest and become
immediately exercisable and the restrictions with respect to any awards of
restricted stock shall lapse, in each case to the extent such options would
otherwise have become vested and exercisable (or such restrictions would have
lapsed) had Executive remained in the employ of the Company for a period of two
years following the date of termination. Except as provided in Section 3.3(e),
such  portion of Executive’s stock
options (together with any portion of Executive’s stock options that have
vested and become exercisable prior to the date of termination) shall remain
exercisable for a period of 90 days following the date of termination of
employment (or, such later date as may be permitted by the relevant stock
option or equity plan, or, if earlier, until the expiration of the respective
terms of the options), whereupon all such options shall terminate. Any
remaining portion of Executive’s stock options that have not vested (or deemed
to have vested) as of the date of termination shall terminate as of such date;
and all shares of restricted stock as to which the restrictions shall not have
lapsed as of the date of termination shall be forfeited as of such date.

(c)    All other
rights of Executive (and, except as provided in Section 5.6 below, all
obligations of the Company) hereunder or otherwise in connection with  Executive’s employment with the
Company shall terminate effective as of the date of such termination of
employment and Executive shall not be entitled to any payments or benefits not
specifically described in 5.3(a) through (c).

Any termination of employment pursuant to this Section 5.3
shall be effective upon thirty (30) days notice thereof or the Company may
elect in its sole discretion to reduce or eliminate the notice period and pay
the Executive his base salary for some or all of the notice period in lieu of
notice. A termination of Executive’s employment by the Company other than for
Cause or by the Executive for Good Reason shall not constitute a breach of this
Agreement. To be eligible for the payment, benefits and stock rights described
in Section 5.3(a)(ii)-(iii),  (b) and
(c) above, Executive must execute, not revoke and abide by a release of
all other claims, cooperate in the event of litigation and fully comply with
Executive’s obligations under Sections 6 and 7 below.

5.4   Definition of
Good Reason.   For
purposes of this Agreement, “Good Reason” shall mean the occurrence of any one
of the following:

(a)    the
assignment to Executive of any duties or responsibilities materially
inconsistent with Executive’s status as an officer of the Company; or

(b)   any
decrease in Executive’s Base Salary or Annual Target Bonus as set forth in Section 3
to which Executive has not agreed in writing; or

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(c)    any
material adverse alteration in Executive’s position with the Company; or

(d)   a material
breach by the Company of this Agreement

provided, however, that in
each such case the Company shall have the right, within thirty (30) days after
receipt of written notice (which shall set forth in reasonable detail the
specific conduct of Company that constitutes Good Reason and the specific
provision(s) of this Agreement on which Executive relies) from Executive
of the Company’s violation of any of the foregoing, to cure the event or
circumstances giving rise to such Good Reason and in the event of which cure,
such event or circumstances shall not constitute Good Reason hereunder.

5.5   Compensation
upon Termination of Executive’s Employment by Reason of Executive’s Death or
Total Disability.   In
the event that Executive’s employment with the Company is terminated by reason
of Executive’s death or Total Disability (as defined below):

(a)    Executive
or Executive’s estate, as the case may be, shall be entitled to receive (i) the
Accrued Benefits, (ii) any other benefits payable under the then current
disability and/or death benefit plans, as applicable, in which Executive is a
participant and (iii) continued health insurance coverage for Executive
and/or his immediate family, as applicable, for a period of two years following
the date of termination of employment.

(b)   All stock
option awards held by Executive shall vest and become immediately exercisable
and the restrictions with respect to any awards of restricted stock shall
lapse, in each case to the extent such options would otherwise have become
vested and exercisable (or such restrictions would have lapsed) had Executive
remained in the employ of the Company for a period of two years following the
date of termination. Except as provided in Section 3.3(e) such
portion of Executive’s stock options (together with any portion of Executive’s
stock options that have vested and become exercisable prior to the date of
termination) shall remain exercisable for a period of 90 days following the
date of termination of employment (or, such later date as may be permitted by
the relevant stock option or equity plan, or, if earlier, until the expiration
of the respective terms of the options), whereupon all such options shall terminate.
Any remaining portion of Executive’s stock options that have not vested (or
deemed to have vested) as of the date of termination shall terminate as of such
date; and all shares of restricted stock as to which the restrictions shall not
have lapsed as of the date of termination shall be forfeited as of such date.

(c)    All other
rights of Executive (and, except as provided in Section 5.6 below, all
obligations of the Company) hereunder or otherwise in connection with Executive’s
employment with the Company shall terminate effective as of the date of such
termination of employment and Executive shall not be entitled to any payments
or benefits not specifically described in Section 5.5(a) through (c).

“Total Disability” shall mean any physical or mental
disability that prevents Executive from: 
(a)(1) performing one or more of the essential functions of his
position for a period of not less than 90 days in any 12-month period and
(ii) which is expected to be of permanent or indeterminate duration but
expected to last at least 12 continuous months or result in death of the
Executive as determined (y) by a physician selected by the Company or its
insurer or (z) pursuant to the Company’s benefit programs; or (b) reporting
to work for 90 or more consecutive business days or unable to engage in any
substantial activity.

5.6   Survival.   In the event of any termination of Executive’s
employment , Executive and the Company nevertheless shall continue to be bound
by the terms and conditions set forth in Section 4.8 above and  Sections 6 through 10 below, which shall
survive the expiration of the Term; provided, however, the indemnification
obligations in Section 4.8 shall not survive expiration of the Term in the
event of termination of Executive’s employment by the Company for Cause.

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5.7   Excise Tax Gross-Up.

(a)   In the
event that any payment or benefit received or to be received by the Executive
pursuant to the terms of this Agreement or any other plan, arrangement or
agreement of the Company (or any affiliate) (collectively, the “Payments”)
would be equal to the Excise Tax (the “Excise Tax”) imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”), as determined as
provided below, the Company shall pay to the Executive, at the time specified
in Section 5.7(b) below an additional amount (the “Gross-Up Payment”)
such that the net amount retained by the Executive, after deduction of the
Excise Tax on payments and any federal, state and local income and employment
or other tax and the Excise Tax upon the Gross-Up Payment, and any interest,
penalties or additions to tax payable by the company Executive with respect
thereto, shall be equal to the total Payments. For purposes of determining
whether any of the Payments will be subject to the Excise Tax and the amounts of
such Excise Tax, (1) the total amount of the Payments shall be treated as “parachute
payments” within the meaning of section 280G(b)(2) of the Code, and
all “excise parachute payments” within the meaning of section 280G(b)(1) of
the Code shall be treated as subject to the Excise Tax, except to the extent
that, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to
Executive and selected by the Company, a Payment (in whole or in part) does not
constitute a “parachute payment” within the meaning of section 280G(b)(2) of
the Code, or such “excess parachute payments” (in whole or in part) are not
subject to the Excise Tax, (2) the amount of the Payments that shall be
treated as subject to the Excise Tax shall be equal to the lesser of (A) the
total amount of the Payments or (B) the amount of “excess parachute
payments” within the meaning of section 280G(b)(1) of the Code (after
applying clause (1) hereof), and (3) the value of any noncash
benefits or any deferred payment or benefit shall be determined by the Tax
Counsel in accordance with the principles of sections 280G(d)(3) and (4) of
the Code. For purposes of determining the amount of the Gross-Up Payment,
the Executive shall be deemed to pay federal income taxes at the highest
marginal rates of federal income taxation applicable to individuals in the
calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rates of taxation applicable to
individuals as are in effect in the state and locality of the Executive’s
residence in the calendar year in which the Gross-Up Payment is to be
made, net of the maximum reduction in federal income taxes that can be obtained
from deduction of such state and local taxes, taking into account any
limitations applicable to individuals subject to federal income tax at the
highest marginal rates.

(b)   The Gross-Up
Payment provided for in Section 5.7(a) hereof shall be made upon the
earlier of (i) thirty (30) days following the date of termination of
Executive’s employment or (ii) the imposition upon the Executive or
payment by the Executive of any Excise Tax.

(c)   If it is
established pursuant to a final determination of a court or an Internal Revenue
Service proceeding that the Excise Tax is less than the amount taken into
account under Section 5.7(a) hereof, the Executive shall repay to the
Company within thirty (30) days of the Executive’s receipt of notice of such
final determination the portion of the Gross-Up Payment attributable to
such reduction (plus the portion of the Gross-Up Payment attributable to
the Excise Tax and federal, state and local income tax imposed on the portion
of the Gross-Up Payment being repaid by the Executive if and to the
extent that such repayment results in a reduction in Excise Tax and a dollar-for-dollar
reduction in the Executive’s taxable income and wages for the purpose of
federal, state and local income taxes) plus any interest received by the
Executive on the amount of such repayment. If it is established pursuant to a
final determination of a court or an Internal Revenue Service proceeding that
the Excise Tax exceeds the amount taken into account hereunder (including
without limitation by reason of any payment the existence or amount of which
cannot be determined at the time of the Gross-Up Payment), the Company
shall make an additional Gross-Up Payment pursuant to Section 5.7(a) in
respect of such excess within thirty (30) days of the Company’s receipt of
notice of such final determination or proceeding. The Executive and the Company
shall each reasonably cooperate with the other in connection with any
administrative or judicial proceedings concerning the existence or amount of
liability for Excise Tax with respect to the Payments.

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(d)   In the
event of any change in, or further interpretation of, sections 280G or 4999 of
the Code and the regulations promulgated thereunder, the Executive shall be
entitled, by written notice to the Company, to request an opinion of Tax
Counsel regarding the application of such change to any of the foregoing, and
the Company shall use its best efforts to cause such opinion to be rendered as
promptly as practicable. All fees and expenses of the Tax Counsel incurred in
connection with this Agreement shall be borne by the Company.

5.8   No Other
Severance or Termination Benefits.   Except as expressly set forth herein, Executive shall
not be entitled to damages or to any severance or other benefits upon
termination of employment with the Company under any circumstances and for any
or no reason, including, but not limited to any severance pay under any Company
severance plan, policy or practice.

6.                 Protection of
Confidential Information.

Executive acknowledges that during the course of his
employment with the Company, its subsidiaries, affiliates and strategic
partners, he will be exposed to documents and other information regarding the
confidential affairs of the Company, its subsidiaries, affiliates and strategic
partners, including without limitation information about their past, present and
future financial condition, pricing strategy, prices, suppliers, cost
information, business and marketing plans, the markets for their products, key
personnel, past, present or future actual or threatened litigation, trade
secrets and other intellectual property, current and prospective customer
lists, operational methods, acquisition plans, prospects, plans for future
development and other business affairs and information about the Company and
its subsidiaries, affiliates and strategic partners not readily available to
the public (the “Confidential Information”). Executive further acknowledges
that the services to be performed under this Agreement are of a special,
unique, unusual, extraordinary and intellectual character. In recognition of
the foregoing, the Executive covenants and agrees as follows:

6.1   No
Disclosure or Use of Confidential Information.   At no time shall Executive ever divulge, disclose, or
otherwise use any Confidential Information (other than as necessary to perform
his duties under this Agreement and in furtherance of the Company’s best
interests), unless and until such information is readily available in the
public domain by reason other than Executive’s disclosure or use thereof in
violation of the first clause of this Section 6.1. Executive acknowledges
that Company is the owner of, and that Executive has no rights to, any trade
secrets, patents, copyrights, trademarks, know-how or similar rights of any
type, including any modifications or improvements to any work or other property
developed, created or worked on by Executive during the Term of this Agreement.

6.2   Return of
Company Property, Records and Files.   Upon the termination of Executive’s employment at any
time and for any reason, or at any other time the Board may so direct,
Executive shall promptly deliver to the Company’s offices in Harrisburg,
Pennsylvania all of the property and equipment of the Company, its
subsidiaries, affiliates and strategic partners (including any cell phones,
pagers, credit cards, personal computers, etc.) and any and all documents,
records, and files, including any notes, memoranda, customer lists, reports or
any and all other documents, including any copies thereof, whether in hard copy
form or on a computer disk or hard drive, which relate to the Company, its
subsidiaries, affiliates, strategic partners, successors or assigns, and/or
their respective past and present officers, directors, employees or consultants
(collectively, the “Company Property, Records and Files”); it being expressly
understood that, upon termination of Executive’s employment at any time and for
any reason, Executive shall not be authorized to retain any of the Company
Property, Records and Files, any copies thereof 
or excerpts therefrom.

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7.                 Noncompetition
and Other Matters.

7.1   Noncompetition.   During the Executive’s employment with the Company
and for the two-year period immediately following the date of termination
of Executive’s employment (the “Restricted Period”) Executive shall not,
directly or indirectly, in any city, town, county, parish or other municipality
in any state of the United States (the names of each such city, town, parish,
or other municipality, including, without limitation, the name of each county
in the Commonwealth of Pennsylvania being expressly incorporated by reference
herein), or any other place in the world, where the Company, or its
subsidiaries, affiliates, strategic partners, successors, or assigns, engages
in the ownership, management and operation of retail drugstores (i) engage
in a Competing Business for Executive’s own account; (ii) enter the employ
of, or render any consulting or contracting services to, any Competing
Business; or (iii) become interested in or otherwise associated or
connected with any Competing Business in any capacity, including, without
limitation, as an individual, partner, shareholder, officer, director,
principal, agent, trustee, employee, contractor,  consultant
or management position with any entity providing consulting services to a
Competing Business; provided, however,
Executive may (i) own, directly or indirectly, solely as a passive
investment, securities of any entity traded on any national securities exchange
if Executive is not a controlling person of, or a member of a group which
controls, such entity and does not, directly or indirectly, own 1% or more of
any class of securities of such entity. For purposes of this Section 7.1,
the phrase “Competing Business” shall mean any entity a majority of whose
business involves the ownership and operation of retail or internet based drug
stores.

7.2   Noninterference.   During the Restricted Period , Executive shall not,
directly or indirectly, solicit, induce, or attempt to solicit or induce any
officer, director, employee, agent or consultant of the Company or any of its
subsidiaries, affiliates, strategic partners, successors or assigns to
terminate his, her or its employment or other relationship with the Company or
its subsidiaries, affiliates, strategic partners, successors or assigns for the
purpose of associating with any competitor of the Company or its subsidiaries,
affiliates, strategic partners, successors or assigns, or otherwise encourage
any such person or entity to leave or sever his, her or its employment or other
relationship with the Company or its subsidiaries, affiliates, strategic
partners, successors or assigns for any other reason.

7.3   Nonsolicitation.   During the Restricted Period, Executive shall not,
directly or indirectly, solicit, induce, or attempt to solicit or induce any
customers, clients, vendors, suppliers or consultants then under contract to
the Company or its subsidiaries, affiliates, strategic partners, successors or
assigns, to terminate, limit or otherwise modify his, her or its relationship
with the Company or its subsidiaries, affiliates, strategic partners,
successors or assigns, for the purpose of associating with any competitor of
the Company or its subsidiaries, affiliates, strategic partners, successors or
assigns, or otherwise encourage such customers, clients, vendors, suppliers or
consultants then under contract to terminate his, her or its relationship with
the Company or its subsidiaries, affiliates, strategic partners, successors or
assigns for any reason. During the Restricted Period, Executive shall not hire,
either directly or through any employee, agent or representative, any field and
corporate management employee of the Company or any subsidiary or any such  person who was employed by the Company or any
subsidiary within 180 days of such hiring.

8.                 Rights
and Remedies upon Breach.

If Executive breaches, or threatens to commit a breach
of, any of the provisions of Sections 6 or 7 above (the “Restrictive Covenants”),
the Company and its subsidiaries, affiliates, strategic partners, successors or
assigns shall have the following rights and remedies, each of which shall be
independent of the others and severally enforceable, and each of which shall be
in addition to, and not in lieu of, any other rights or remedies available to
the Company or its subsidiaries, affiliates, strategic partners, successors or
assigns at law or in equity.

8.1   Specific
Performance.   The
right and remedy to have the Restrictive Covenants specifically enforced by any
court of competent jurisdiction by injunctive decree or otherwise, it being
agreed that any 

 9
 

breach or threatened
breach of the Restrictive Covenants would cause irreparable injury to the
Company or its subsidiaries, affiliates, strategic partners, successors or
assigns and that money damages would not provide an adequate remedy to the
Company or its subsidiaries, affiliates, strategic partners, successors or
assigns.

8.2   Accounting.   The right and remedy to require Executive to account
for and pay over to the Company or its subsidiaries, affiliates, strategic
partners, successors or assigns, as the case may be, all compensation, profits,
monies, accruals, increments or other benefits derived or received by Executive
as a result of any transaction or activity constituting a breach of any of the
Restrictive Covenants.

8.3   Severability
of Covenants.   Executive
acknowledges and agrees that the Restrictive Covenants are reasonable and valid
in geographic and temporal scope and in all other respects. If any court
determines that any of the Restrictive Covenants, or any part thereof, is
invalid or unenforceable, the remainder of the Restrictive Covenants shall not
thereby be affected and shall be given full force and effect without regard to
the invalid portions.

8.4   Modification
by the Court.   If any
court determines that any of the Restrictive Covenants, or any part thereof, is
unenforceable because of the duration or scope of such provision, such court
shall have the power (and is hereby instructed by the parties) to modify or
reduce the duration or scope of such provision, as the case may be (it being
the intent of the parties that any such modification or reduction be limited to
the minimum extent necessary to render such provision enforceable), and, in its
modified or reduced form, such provision shall then be enforceable.

8.5   Enforceability
in Jurisdictions.   Executive
intends to and hereby confers jurisdiction to enforce the Restrictive Covenants
upon the courts of any jurisdiction within the geographic scope of such
covenants. If the courts of any one or more of such jurisdictions hold the
Restrictive Covenants unenforceable by reason of the breadth of such scope or
otherwise, it is the intention of Executive that such determination not bar or
in any way affect the right of the Company or its subsidiaries, affiliates,
strategic partners, successors or assigns to the relief provided herein in the
courts of any other jurisdiction within the geographic scope of such covenants,
as to breaches of such covenants in such other respective jurisdictions, such
covenants as they relate to each jurisdiction being, for this purpose,
severable into diverse and independent covenants.

8.6   Extension of
Restriction in the Event of Breach.   In the
event that Executive breaches any of the provisions set forth in this Section 8,
the length of time of the Restricted Period shall be extended for a period of
time equal to the period of time during which Executive is in breach of such
provision.

9.               No
Violation of Third-Party Rights.   Executive
represents, warrants and covenants that he:

(i)    will not,
in the course of employment, infringe upon or violate any proprietary rights of
any third party (including, without limitation, any third party confidential
relationships, patents, copyrights, mask works, trade secrets, or other
proprietary rights);

(ii)   is not a
party to any conflicting agreements with third parties, which will prevent him
from fulfilling the terms of employment and the obligations of this Agreement;

(iii)  does not
have in his possession any confidential or proprietary information or documents
belonging to others and will not disclose to the Company, use, or induce the
Company to use, any confidential or proprietary information or documents of
others; and

(iv)  agrees to
respect any and all valid obligations which he may now have to prior employers
or to others relating to confidential information, inventions, discoveries or
other intellectual property which are the property of those prior employers or
others, as the case may be.

 10

Executive has supplied to the Company a copy of each
written agreement with any of Executive’s prior employers, as well as any other
agreements to which Executive is subject, which includes any obligation of
confidentiality, assignment of intellectual property, nonsolicitation or non-competition.
Executive has listed each of such agreements in Appendix “B”.

Executive agrees to indemnify and save harmless the
Company from any loss, claim, damage, cost or expense of any kind (including
without limitation, reasonable attorney fees) to which the Company may be
subjected by virtue of a breach by Executive of the foregoing representations,
warranties, and covenants.

10. Arbitration.

Except as necessary for the Company and its
subsidiaries, affiliates, strategic partners, successors or assigns or
Executive to specifically enforce or enjoin a breach of this Agreement (to the
extent such remedies are otherwise available), the parties agree that any and
all disputes that may arise in connection with, arising out of or relating to
this Agreement, or any dispute that relates in any way, in whole or in part, to
Executive’s employment with the Company or any subsidiary, affiliate or
strategic partner, the termination of that employment or any other dispute by
and between the parties or their subsidiaries, affiliates,  strategic partners, successors or assigns,
shall be submitted to final and binding arbitration in Harrisburg, Pennsylvania
according to the National Employment Dispute Resolution Rules and
procedures of the American Arbitration Association at the time in effect. This
arbitration obligation extends to any and all claims that may arise by and
between the parties or their subsidiaries, affiliates, strategic partners,
successors or assigns, and expressly extends to, without limitation, claims or
causes of action for wrongful termination, impairment of ability to compete in
the open labor market, breach of an express or implied contract, breach of the
covenant of good faith and fair dealing, breach of fiduciary duty, fraud,
misrepresentation, defamation, slander, infliction of emotional distress,
disability, loss of future earnings, and claims under the Pennsylvania
Constitution, the United States Constitution, and applicable state and federal
fair employment laws, federal and state equal employment opportunity laws, and
federal and state labor statutes and regulations, including, but not limited
to, the Civil Rights Act of 1964, as amended, the Fair Labor Standards Act, as
amended, the Americans With Disabilities Act of 1990, as amended, the
Rehabilitation Act of 1973, as amended, the Employee Retirement Income Security
Act of 1974, as amended, the Age Discrimination in Employment Act of 1967, as
amended, and any other state or federal law. Executive understands that by
entering into this Agreement, Executive is waiving Executive’s rights to have a
court determine Executive’s rights, including under federal, state or local
statutes prohibiting employment discrimination, including sexual harassment and
discrimination on the basis of age, race, color, religion, national origin,
disability, veteran status or any other factor prohibited by governing law. The
prevailing party shall be entitled to reasonable attorneys’ fees and cost as
may be awarded by the arbitrator.

11.          Assignment.

Neither this Agreement, nor any of Executive’s rights
or obligations hereunder, may be assigned or otherwise subject to hypothecation
by Executive. The Company may assign its rights and obligations hereunder, and
hereby consents to any such assignment, in whole or in part, (i) to any of
the Company’s subsidiaries, affiliates, or parent corporations; or (ii) to
any other successor or assign in connection with the sale of all or
substantially all of the Company’s assets or stock or in connection with any
merger, acquisition and/or reorganization involving the Company.

 11
 

12.          Notices.

All
notices and other communications under this Agreement shall be in writing and
shall be given by fax or first class mail, certified or registered with return
receipt requested, and shall be deemed to have been duly given three (3) days
after mailing or twenty-four (24) hours after transmission of a fax to
the respective persons named below:

	
  If to the Company:

  	
   

  	
  Rite Aid Corporation

  
	
   

  	
   

  	
  30 Hunter Lane

  
	
   

  	
   

  	
  Camp Hill, Pennsylvania 17011

  
	
   

  	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  	
  Fax: (717) 760-7867

  
	
  If to Executive:

  	
   

  	
  Pierre Legault

  
	
   

  	
   

  	
  30 Hunter Lane

  
	
   

  	
   

  	
  Camp Hill, Pennsylvania 17011

  

 

Any party may change such party’s address for notices
by notice duly given pursuant hereto.

13.          General.

13.1   No
Offset or Mitigation.   The
Company’s obligation to make the payments provided for in, and otherwise to
perform its obligations under this Agreement shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action that the
Company may have against the Executive or others whether in respect of claims
made under this Agreement or otherwise. In no event shall the Executive be
obligated to seek other employment or take any other action by way of
mitigation of the amounts, benefits and other compensation payable or otherwise
provided to the Executive under any of the provisions of this Agreement, and
such amounts shall not be reduced, regardless of whether the Executive obtains
other employment.

13.2   Governing
Law.   This Agreement is executed in
Pennsylvania and shall be governed by and construed and enforced in accordance
with the laws of the Commonwealth of Pennsylvania without giving effect to
conflicts of laws principles thereof which might refer such interpretations to
the laws of a different state or jurisdiction. Any court action instituted by
Executive relating in any way to this Agreement shall be filed exclusively in
state or federal court in Harrisburg, Pennsylvania and Executive consents to
the jurisdiction and venue of said courts in any action instituted by or on
behalf of the Company against him.

13.3   Entire
Agreement.   This
Agreement sets forth the entire understanding of the parties relating to
Executive’s employment with the Company and cancels and supersedes all
agreements, arrangements and understandings relating thereto made prior to the
date hereof, written or oral, between the Executive and the Company and/or any
subsidiary or affiliate.

13.4   Amendments:
Waivers.   This
Agreement may be amended, modified, superseded, canceled, renewed or extended,
and the terms or covenants hereof may be waived, only by a written instrument
executed by the parties, or in the case of a waiver,  by
the party waiving compliance. The failure of any party at any time or times to
require performance of any provision hereof shall in no manner affect the right
of such party at a later time to enforce the same. No waiver by any party of
the breach of any term or covenant contained in this Agreement, whether by
conduct or otherwise, in any one or more instances, shall be deemed to be, or
construed as, a further or continuing waiver of any such breach, or a waiver of
the breach of any other term or covenant contained in this Agreement.

13.5   Conflict
with Other Agreements.   Executive
represents and warrants that neither his execution of this Agreement nor the
full and complete performance of his obligations hereunder will violate or
conflict in any respect with any written or oral agreement or understanding
with any person or entity.

 12
 

13.6   Successors
and Assigns.   This
Agreement shall inure to the benefit of and shall be binding upon the Company
(and its successors and assigns) and Executive and his heirs, executors and
personal representatives.

13.7   Withholding.   Notwithstanding any other provision of this
Agreement, the Company may withhold from amounts payable under this Agreement
all federal, state, local and foreign taxes that are required to be withheld by
applicable laws or regulations.

13.8   Severability.   The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement. If any provision of this Agreement shall be held
invalid or unenforceable in part, the remaining portion of such provision,
together with all other provisions of this Agreement, shall remain valid and
enforceable and continue in full force and effect to  the
fullest extent consistent with law.

13.9   No
Assignment.   The
rights and benefits of the Executive under this Agreement may not be
anticipated, assigned, alienated or subject to attachment, garnishment, levy,
execution or other legal or equitable process except as required by law. Any
attempt by the Executive to anticipate, alienate, assign, sell, transfer,
pledge, encumber or charge the same shall be void. Payments hereunder shall not
be considered assets of the Executive in the event of insolvency or bankruptcy.

13.10   Survival.   This Agreement shall survive the termination of
Executive’s employment and the expiration of the Term to the extent necessary
to give effect to its provisions.

13.11   Captions.   The section headings contained herein are for
reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement. .

13.12   Counterparts.   This Agreement may be executed by the parties hereto
in separate counterparts; each of which when so executed and delivered shall be
an original but all such counterparts together shall constitute one and the
same instrument.

IN WITNESS WHEREOF,
Executive and the Company have executed this Agreement as of the date first
written above.

	
  

  	
  RITE AID
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Robert B.
  Sari

  
	
   

  	
  Its: Executive
  Vice President, General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Pierre Legault

  

 

 13

APPENDIX A

A “Change in
Control of the Company” shall be deemed to have occurred if, as the result of a
single transaction or a series of transactions, the event set forth in any one
of the following paragraphs shall have occurred:

(1)   any Person
is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company representing 25% or more of the combined voting power of the
Company’s then outstanding voting securities; or

(2)   Incumbent
Directors cease at any time and for any reason to constitute  a majority of the number of directors then serving on the
Board. “Incumbent Directors” shall mean directors who either (A) are
directors of the Company as of the Effective Date or (B) are elected, or
nominated for election, to the Board with the affirmative votes of at least a
majority of the Incumbent Directors at the time of such election or nomination
(but shall not include an individual whose election or nomination is in
connection with an actual or threatened election contest, including but not
limited to a consent solicitation, relating to the election of directors to the
Board); or

(3)   there is
consummated a merger or consolidation of the Company or any direct or indirect
subsidiary of the Company with any other corporation, other than (i) a merger
or consolidation which would result in the voting securities of the Company
outstanding immediately prior to such merger or consolidation continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof) at least 60% of the
combined voting power of the securities of the Company or such surviving entity
or any parent thereof outstanding immediately after such merger or
consolidation, or (ii) a merger or consolidation effected to implement a
recapi­talization of the Company (or similar transaction) in which no Person is
or becomes the Beneficial Owner, directly or indirectly, of securities of the
Company representing 25% or more of the combined voting power of the Company’s
then outstanding voting securities; or

(4)   the
stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company or an agreement for the sale or dispo­sition  by the Company of all or substantially all of the Company’s
assets, other  than a sale or disposition by the
Company of all or substantially all of the Company’s assets to an entity, at
least 60% of the combined voting power of the voting securities of which are
owned by stockholders of the Company in substantially the same proportions as
their ownership of the Company immedi­ately prior to such sale.]

“Affiliate” shall  have the
meaning set forth in Rule 12b-2 under Section 12 of the
Exchange Act.

“Beneficial Owner” shall have the meaning set forth in
Rule 13d-3 under the Exchange Act, except that a Person shall not be
deemed to be the Beneficial Owner of any securities which are properly filed on
a Form 13G.

“Exchange Act” shall mean the Securities Exchange Act
of 1934, as amended from time to time.

“Person” shall have the meaning given in Section 3(a)(9) of
the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any of its subsidiaries, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

 14

APPENDIX B

The following is a list of all written agreements with
any of Executive’s prior employers, as well as any other agreements to which
Executive is subject, which includes any obligation of confidentiality,
assignment of intellectual property, nonsolicitation or non-competition. If
none, type “None”.

Contractual
Working Agreement dated November 9, 2005 between Pharmacy Jean Coutu Inc.
(PJC) and Pierre Legault, as amended on August 6, 2006.

Confidentiality
agreement with Cyclacel Pharmaceuticals, Inc.

 15Exhibit 10.1

 

 

PURCHASE AGREEMENT

by and between

MCP-TPI Holdings, LLC

and

Information Services
Group, Inc.

Dated as of April 24,
2007

 

 

PURCHASE AGREEMENT

THIS PURCHASE AGREEMENT is made and entered into and effective as of
the 24th day of April, 2007, by and between MCP-TPI Holdings, LLC, a Texas
limited liability company (“Seller”), and
Information Services Group, Inc., a Delaware corporation (“Buyer”).

RECITALS

WHEREAS, Seller beneficially owns all of the issued and outstanding
shares of capital stock (“Shares”) of
TPI Advisory Services Americas, Inc., a Texas corporation (the “Company”).

WHEREAS, the Shares constitute all of the issued and outstanding equity
securities of the Company; and

WHEREAS, Buyer desires to purchase, and Seller desires to sell to
Buyer, the Shares, upon the terms and subject to the conditions set forth
herein;

WHEREAS, certain key employees of the Company have entered into
agreements with the Buyer which set forth certain terms with respect to the
equity investment of such employees in the Buyer, non-compete obligations and
certain other matters;

NOW, THEREFORE, in consideration of the foregoing, the representations,
warranties, covenants and agreements set forth in this Agreement, and other
good and valuable consideration, the adequacy and receipt of which are hereby
acknowledged, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1            Definitions.  Capitalized terms used in this Agreement
shall have the meanings set forth in this Agreement.  In addition, for purposes of this Agreement,
the following terms, when used in this Agreement, shall have the meanings
assigned to them in this Section 1.1.

“Action” means any action,
claim, complaint, investigation, audit, petition, suit, arbitration or other
proceeding, whether civil or criminal, at law or in equity by or before any
Governmental Entity.

“Acquisition” shall have the
meaning set forth in Section 4.18.

“Additional Consideration”  shall mean, if the Closing occurs after
October 24, 2007, an amount, equal to $50,000 per day commencing on October 24,
2007 through and including the Closing Date.

“Affected Employees” shall have
the meaning set forth in Section 4.2(a).

“Affiliate” means a Person that
directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, a specified Person.  A Person shall be deemed to control another
Person if such first Person possesses, directly or indirectly, the power to
direct, or cause the direction of, the management and policies of such other
Person, whether through the ownership of voting securities, by contract or
otherwise.

“Agreement” means this
Agreement, as the same may be amended or supplemented, together with all
Exhibits and Schedules attached hereto.

“Alternative Financing” shall
have the meaning set forth in Section 4.11(b).

“Ancillary Agreements” shall
mean the Escrow Agreement.

“Balance Sheet” means the
audited consolidated balance sheet of the Operating Company and its
Subsidiaries as of December 31, 2006 included in the Financial Statements.

“Balance Sheet Date” means
December 31, 2006.

“Basket” shall have the meaning
set forth in Section 7.1(b).

“Business” means the business of
the Company and its Subsidiaries, taken as a whole.

“Business Day” means any day
other than a Saturday, a Sunday or a day on which banks are required to be
closed in New York, New York.

“Buyer” shall have the meaning
set forth in the first paragraph of this Agreement.

 “Buyer
Claim”  shall have the
meaning set forth in Section 7.1(b).

“Buyer Common Stock” 
shall mean the common stock, $0.001 par value per share of the Buyer,
whose price is quoted on the American Stock Exchange under the ticker symbol “III”.

“Buyer SEC Reports” shall
have the meaning set forth in Section 3.2(k).

“Buyer Shareholder
Approval” shall have the meaning set forth in Section
4.14(a).

“Buyer Shareholders’
Meeting” shall have the meaning set forth in Section 3.1(w).

 2
 

“Buyer Specified Representations”
shall mean the representations and warranties set forth in Sections 3.2(a),
(b), (i) and (j).

“Ceiling” shall have the meaning
set forth in  Section 7.1(b).

“Claim Notice” shall have the
meaning set forth in Section 7.3(a).

“Closing” shall have the meaning
set forth in Section 2.2(a).

“Closing Date” shall have the
meaning set forth in Section 2.2(a).

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

“Company” shall have the meaning
set forth in the recitals to this Agreement.

“Company Contracts” shall have
the meaning set forth in Section 3.1(n)(i).

“Company Intellectual Property”
means the Intellectual Property owned and/or used by the Company or any of its
Subsidiaries.

“Company Leases” shall have the
meaning set forth in Section 3.1(k).

“Company Plans” means each “employee
benefit plan” (within the meaning of Section 3(3) of ERISA), including each
pension, profit sharing, 401(k), severance, welfare (including retiree
welfare), disability, deferred compensation, stock purchase, stock option,
stock-based award, employment, change-in-control, retention, fringe benefit,
bonus, incentive agreements, programs, policies or other arrangements, whether
or not subject to ERISA, and that is maintained, sponsored or contributed to by
Seller, the Company or any of its Subsidiaries for the benefit of any current
or former independent contractor or employee of the Company or any of its
Subsidiaries.

“Confidentiality Agreement”
shall have the meaning set forth in Section 4.4(a).

“Contract” means any written
contract, agreement, commitment, franchise, indenture, lease, purchase order or
license.

“Copyrights” means all United
States and foreign copyrights and works of authorship in any media (including
all registrations and applications to register the same), including computer
programs, systems, networks, hardware, firmware, software, applications, files,
databases, Internet websites and related documentation.

“Debt Commitment Letter” shall
have the meaning set forth in Section 3.2(g).

“Debt Financing” shall
have the meaning set forth in Section 3.2(g).

 3
 

“Debt Financing Agreements” shall
have the meaning set forth in Section 4.11(a).

“Debt Replacement Event” shall have the
meaning set forth in Section 4.11(b).

“DGCL” means the General
Corporation Law of the State of Delaware.

“Encumbrance” means any lien,
encumbrance, security interest, pledge, mortgage, deed of trust, hypothecation,
conditional sale or restriction on transfer of title or voting, except for any
restrictions on transfer generally arising under any applicable federal or
state securities laws.

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, and the related regulations
and published interpretations.

“Escrow Account” shall mean the
account established pursuant to the Escrow Agreement.

“Escrow Amount” shall have the
meaning set forth in Section 2.1(b).

“Escrow Agent” shall mean The
Bank of New York, in its capacity as escrow agent.

“Escrow Agreement” shall have
the meaning set forth in Section 4.12.

“Excepted Jurisdictions” shall
have the meaning set forth in Section 5.1(b).

“Exchange Act” 
means the Securities Exchange Act of 1934 and the rules and regulations
promulgated thereunder.

“Financial Statements” means,
collectively, (i) the audited consolidated balance sheet of the Company and any
of its Subsidiaries as of December 31, 2004, 2005 and 2006 and the audited
consolidated statements of income and cash flows of the Company and its
Subsidiaries for each of the three years in the period ended December 31, 2006
and (ii) the unaudited consolidated balance sheet and unaudited consolidated
statements of income and cash flows of the Company and its Subsidiaries as of
and for the two months ended February 28, 2007 including, in each case any
notes thereto.

“GAAP” means generally accepted
accounting principles in the United States, as in effect from time to time.

“Governmental Entity” means any
United States federal or state government, or any foreign government, or any
agency, bureau, board, commission, court, department, tribunal or
instrumentality thereof.

 4
 

“Governmental Filings” shall
have the meaning set forth in Section 3.1(e).

“HSR Act” means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the
related regulations and published interpretations.

“Indebtedness” means, with
respect to any Person, without duplication: 
(i) indebtedness for borrowed money; (ii) indebtedness for borrowed
money of any other Person guaranteed in any manner by such Person; and (iii)
obligations under capitalized leases in respect of which such Person is liable,
contingently or otherwise, as obligor or guarantor.

“Indemnified Party” shall have
the meaning set forth in Section 7.3(a).

“Independent Accounting Firm” means
a mutually acceptable nationally recognized firm of independent certified
public accountants, other than Pricewaterhouse Coopers LLP, that has not
provided services to either Seller or Buyer or their respective Affiliates in
the preceding three years, or if no such firm is available and willing to
serve, then a mutually acceptable expert in public accounting, in each case
upon which Buyer and Seller shall have mutually agreed.

“Insurance Policies” shall have the
meaning set forth in Section 3.1(w).

“Intellectual Property” means
all intellectual property, including all Trademarks, Patents, Copyrights and
Trade Secrets.

“Knowledge” means the actual
knowledge of Ed Glotzbach and Ron Lacy, upon due inquiry of the following
persons: Peter Allen, Mark Mayo, Scott Gildner, Tom Lang, Duncan Aitchinson and
Ron Janci.

“Law” means any statute, code,
rule, regulation, order, ordinance, judgment or decree or other pronouncement
of any Governmental Entity having the effect of law.

“Losses” shall have the meaning
set forth in Section 7.1(a).

“Material Adverse Effect” means
any change, circumstance or event that, individually or in the aggregate with
all other changes, circumstances and events, has or is reasonably likely to
have a material adverse effect on the business, assets, results of operations
or condition (financial or otherwise) of the Company and its Subsidiaries,
taken as a whole, other than any change or event resulting from, relating to or
arising out of (i) general economic conditions in any of the geographical areas
in which the Company or any of its Subsidiaries operate, to the extent that
such change or event does not have, or is reasonably likely not to have, a
disproportionate effect on the Company and its Subsidiaries relative to other
persons in the sourcing advisory industry; (ii) any change in the financial,
banking, currency or capital markets in general (whether in the United States
or any other country or in any international market), to the extent that such
change or event does not have, or is reasonably likely not to have, a disproportionate

 5
 

effect on the Company and its Subsidiaries relative to
other persons in the sourcing advisory industry; (iii) conditions generally
affecting any of the industries in which the Company or any of its Subsidiaries
operate, to the extent that such change or event does not have, or is
reasonably likely not to have, a disproportionate effect on the Company and its
Subsidiaries relative to other persons in the sourcing advisory industry; (iv)
acts of God, national disaster, national or international political or social
conditions, including the engagement in hostilities by the United States or any
foreign country in which the Company or any of its Subsidiaries operate (each,
a “Foreign Territory”), whether commenced
before or after the date hereof, and whether or not pursuant to the declaration
of a national emergency or war, or the occurrence of any military or terrorist
attack upon the United States or any Foreign Territory or any of their
respective territories, possessions, or diplomatic or consular offices or upon
any military installation, equipment or personnel of the United States or any
Foreign Territory, to the extent that such change or event does not have, or is
reasonably likely not to have, a disproportionate effect on the Company and its
Subsidiaries relative to other persons in the sourcing advisory industry; (v)
any action taken by the Buyer or any of its Affiliates; (vi) the announcement
or pendency of the transactions contemplated hereby or the disclosure of the fact that Buyer
is the prospective acquirer of the Company and its Subsidiaries; (vii)
any change in accounting requirements or principles imposed upon the Company or
any of its Subsidiaries or any change in applicable laws, rules or regulations
or the interpretation thereof, to the extent that such change or event does not
have, or is reasonably likely not to have, a disproportionate effect on the
Company and its Subsidiaries relative to other persons in the sourcing advisory
industry; or (viii) compliance with the terms of, or the taking of any action
required by, this Agreement.

“Non-Company Affiliates” shall
have the meaning set forth in Section 3.1(v).

“Operating Company” means
Technology Partners International, Inc., a Texas corporation.

“Other Filings” shall have the meaning set forth
in Section 4.14(a).

“Outside Date” shall have the
meaning set forth in Section 6.1(b).

“Patents” means all U.S. and
foreign patents and patent applications, inventions, discoveries, processes,
designs, techniques, developments, technology and related improvements.

“Permits” shall have the meaning
set forth in Section 3.1(p).

“Permitted Encumbrance” means
(i) Encumbrances incurred or deposits or pledges made in the ordinary course of
business in connection with or to secure workers’ compensation, unemployment
insurance, old age pension programs mandated under applicable Laws and other
types of social security or to secure the performance of tenders, statutory
obligations, surety and appeal bonds, bids, leases, government Contracts, performance
and return of money bonds and similar obligations; (ii) 

 6
 

mechanics, carriers’, workers’, repairers’,
materialmen’s, warehousemen’s and similar Encumbrances which have arisen in the
ordinary course of business; (iii) Encumbrances approved by Buyer in writing;
(iv) Encumbrances for Taxes not yet delinquent or contested in good faith; (v)
Laws, including requirements and restrictions of zoning; (vi) statutory liens
of landlords, lessors or renters for amounts not yet due and payable; (vii)
liens arising under conditional sales contracts and equipment leases with third
parties entered into in the ordinary course of business; (viii) Encumbrances
which, in the aggregate, are not reasonably likely to impair, in any material
respect, the continued use of the asset or property to which they relate, as
used on the date hereof; and (ix) restrictions on transfers of securities
imposed by applicable state and federal securities Laws.

“Person” means an association, a
corporation, an individual, a partnership, a limited liability company, a
trust, or any other entity or organization, including a Governmental Entity.

“Pre-Closing Period” shall have
the meaning set forth in Section 4.17.

“Proxy Statement” shall have the meaning set forth in Section 4.14(a).

“Purchase Price” shall have the
meaning set forth in Section 2.1(b).

“Real Property” shall have the
meaning set forth in Section 3.1(k).

“Reimbursable Transaction Expenses”
shall have the meaning set forth in Section 8.7(a).

“Representatives” shall have the
meaning set forth in the Confidentiality Agreement.

“Securities Act” means the Securities Act of 1933
and the rules and regulations promulgated thereunder.

“Seller” shall have the meaning
set forth in the first paragraph of this Agreement.

“Seller Claim” shall have the meaning
set forth in Section 7.2(b).

“Seller Disclosure Schedule” shall
mean the disclosure schedule of Seller referred to in and delivered to Buyer
pursuant to this Agreement.

“Seller Indemnified Parties”
shall have the meaning set forth in Section 7.2(a).

“Seller Specified Representations”
shall mean the representations and warranties set forth in Sections 3.1(a),
(b), (d), (f), (t) and (v) and the first sentence of Section 3.1(c).

 7

“Seller Transaction Expenses”
shall have the meaning set forth in Section 8.7(a).

“Shares” shall have the meaning
set forth in the recitals to this Agreement.

“Solvent” with regard to any
Person, means that: (i) the sum of the assets of such Person, both at a fair
valuation and at present fair salable value, exceeds its liabilities, including
contingent, subordinated, unmatured, unliquidated, and disputed liabilities;
(ii) such Person has sufficient capital with which to conduct its business; and
(iii) such Person has not incurred debts, and does not intend to incur debts,
beyond its ability to pay such debts as they mature.  For purposes of this definition, “debt” means any liability on a claim, and “claim” means (i) a right to payment, whether or not such right
is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured, or unsecured or
(ii) a right to an equitable remedy for breach of performance if such breach
gives rise to a payment, whether or not such right to an equitable remedy is
reduced to judgment, fixed, contingent, matured, unmatured, disputed,
undisputed, secured, or unsecured.  With
respect to any such contingent liabilities, such liabilities shall be computed
at the amount which, in light of all the facts and circumstances existing at
the time, represents the amount which can reasonably be expected to become an
actual or matured liability.

“Specified Debt” shall mean the
Indebtedness outstanding under (i) the Credit Agreement, dated as of June 14,
2004, by and among the Operating Company, as borrower, Wachovia Bank, National
Association, as Syndication Agent, Madison Capital Funding LLC, as Agent, and
the various financial institutions party thereto as lenders thereunder and the
Loan Documents (as defined therein), each as amended or otherwise modified
prior to the date hereof and (ii) the Senior Subordinated Note Agreement, dated
as of June 14, 2004, by and among the Operating Company, as borrower, the
Seller, the Company and the Northwestern Mutual Life Insurance Company and the
Subordinated Note Documents (as defined therein), each as amended or otherwise
modified prior to the date hereof.

“Subsidiary” of any Person
means, on any date, any Person of which securities or other ownership interests
representing more than fifty percent of the equity or more than fifty percent
of the ordinary voting power or, in the case of a partnership, more than fifty
percent of the general partnership interests or more than fifty percent of the
profits or losses of which are, as of such date, owned, controlled or held by
the applicable Person or one or more subsidiaries of such Person.

“Survival Expiration Date” shall  have the meaning set forth in Section 8.1(a).

“Tax” means any foreign, federal,
state, county or local income, sales and use, excise, franchise, real and
personal property, gross receipt, capital stock, production, business and
occupation, disability, employment, payroll, severance, or withholding tax

 8
 

or other tax, duty, fee, assessment or charge imposed
by any taxing authority, including any interest, addition of Tax or penalties
related thereto.

“Tax Return” means any return,
report, declaration, information return or other document required to be filed
with any Tax authority with respect to Taxes, including any amendments thereof.

“Third Party Claims” shall have
the meaning set forth in Section 7.3(a).

“Trademarks” means all U.S. and
foreign trademarks, service marks, trade names and Internet domain names,
together with the goodwill symbolized by any of the foregoing, and all
registrations and applications relating to the foregoing and all common law
rights relating thereto.

“Trade Secrets” means all U.S.
and foreign trade secrets, proprietary know-how and other confidential and
proprietary information and proprietary documents.

“Transfer Taxes” means any
sales, use, stock transfer, real property transfer, real property gains,
transfer, stamp, registration, documentary, recording or similar duties or
taxes together with any interest thereon, penalties, fines, costs, fees,
additions to tax or additional amounts with respect thereto incurred in
connection with the transactions contemplated hereby.

“Trust Fund” shall have the meaning set forth
in Section 3.2(j).

“WARN Act” shall have the
meaning set forth in Section 4.10.

ARTICLE II

PURCHASE AND SALE OF SHARES

Section 2.1          Purchase
and Sale of Shares.

(a)           Buyer and Seller hereby agree that,
upon the terms and subject to the satisfaction or waiver, if permissible, of
the conditions hereof, at the Closing, Buyer shall purchase from Seller, and
Seller shall sell, transfer, assign and deliver to Buyer, all of the Shares
held by Seller, free and clear of Encumbrances (other than restrictions imposed
by applicable state and federal securities Laws).

(b)           At the Closing, Buyer shall pay, in
consideration for the purchase of the Shares pursuant to Section 2.1(a), in
cash an amount equal to the sum of $280,000,000 plus the Company Cash Balance
(as defined below) plus the Additional Consideration (the “Purchase
Price”), of which $15,000,000 (the “Escrow
Amount”) shall be deposited into the Escrow Account maintained with
the Escrow Agent for the purposes of satisfying the obligations under Article
VII; provided that, the Seller shall concurrently use a portion of the Purchase
Price to payoff the Specified Debt in full. 
The Escrow Amount shall be released from escrow in accordance with the
terms of the Escrow Agreement.  The “Company Cash Balance” means an amount equal to the

 9
 

normalized cash and cash equivalents of the Company
and its Subsidiaries as of 11.59 p.m. Central Time on the day immediately prior
to the date of this Agreement, which the parties agree is equal to $5,000,000.

Section
2.2          Closing.  The closing of the transactions contemplated
by this Agreement (the “Closing”) shall be held at the offices of Ropes &
Gray LLP, located at 1211 Avenue of the Americas, New York, New York, at 10:00
a.m., New York City time, following the satisfaction or waiver, if permissible,
of the conditions to Closing set forth in Article V (other than conditions
which by their nature can be satisfied only at Closing), at such date as Buyer
and Seller mutually agree, which shall be no later than the third Business Day
after satisfaction or waiver, if permissible, of the conditions to the Closing
set forth in Article V (the “Closing Date”),
unless another date is agreed to in writing by Buyer and Seller.

(b)           Deliveries by Seller.  At the Closing, Seller shall deliver, or
cause to be delivered, to Buyer:

(i)            a certificate or certificates
evidencing the Shares of the Company owned by the Seller, along with a duly
executed stock transfer power in the name of Buyer in respect of all such
Shares;

(ii)           evidence that the Seller Transaction
Expenses have been paid by Seller to the appropriate parties to whom such
expenses are due; and

(iii)          all other documents required to be
delivered by Seller on or prior to the Closing Date pursuant to this Agreement.

(c)           Deliveries by Buyer.  At the Closing, Buyer shall deliver, or cause
to be delivered, to Seller:

(i)            the Purchase Price less the Escrow
Amount, by wire transfer of immediately available funds, to an account or
accounts designated by Seller prior to Closing;

(ii)           the Escrow Amount to the Escrow Agent
for deposit into the Escrow Account established pursuant to the Escrow
Agreement;

(iii)          the Reimbursable Transaction Expenses
to an account or accounts designated by Seller prior to Closing; and

(iv)          all other documents required to be
delivered by Buyer on or prior to the Closing Date pursuant to this Agreement.

ARTICLE III 

REPRESENTATIONS AND WARRANTIES

 10
 

Section
3.1          Representations and
Warranties of Seller. 
Except as set forth in the Seller Disclosure Schedule, Seller represents
and warrants to Buyer as follows:

(a)           Due Organization and Good
Standing of Seller. 
Seller is validly existing and in good standing under the Laws of the
State of Texas.

(b)           Authorization of
Transaction by Seller.  Seller has all requisite limited liability
company power and authority to execute, deliver and perform its obligations
under this Agreement and the Ancillary Agreements, and to consummate the
transactions contemplated hereby and thereby. 
The execution, delivery and performance by Seller of this Agreement and
the Ancillary Agreements and the consummation by Seller of the transactions
contemplated hereby and thereby have been duly and validly authorized by all
necessary corporate action on the part of Seller, and no other limited
liability company proceedings on the part of Seller are necessary to authorize
the execution, delivery and performance by Seller of this Agreement and the
Ancillary Agreements or to consummate the transactions contemplated hereby or
thereby.  This Agreement has been duly
executed and delivered by Seller and, assuming due authorization, execution and
delivery by Buyer, constitutes, and each Ancillary Agreement, when executed and
delivered by Seller (assuming due authorization, execution and delivery by the
other parties thereto) shall constitute, a valid and binding obligation of
Seller, enforceable against Seller in accordance with its terms, except that
such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar Laws now or hereafter in effect relating to or
affecting the rights and remedies of creditors and general principles of equity
(whether considered in a proceeding at law or in equity).

(c)           Due Organization and Good
Standing.  The Company is
duly formed, validly existing and in good standing under the Laws of the State
of Texas. Each Subsidiary of the Company is duly formed, validly existing and
in good standing under the Laws of the jurisdiction of its organization. Each
of the Company and its Subsidiaries is qualified or otherwise authorized to act
as a foreign corporation and is in good standing under the Laws of every other
jurisdiction in which such qualification or authorization is necessary under
applicable Law, except where the failure to be so qualified or otherwise
authorized would not have a Material Adverse Effect. Each of the Company and
its Subsidiaries has all requisite power and authority to own, lease and
operate its respective properties and to carry on its respective businesses as
now conducted, except where the failure to have such power and authority would
not have a Material Adverse Effect. The Seller has made available to the Buyer
complete and accurate copies of the minute books of the Company and its
Subsidiaries.

(d)           Subsidiaries.  Section 3.1(d)(i) of the Seller Disclosure
Schedule contains a list of each Subsidiary of the Company, including its name,
its jurisdiction of incorporation or formation and other jurisdictions in which
it is qualified or authorized to do business. 
Except as set forth in Section 3.1(d)(ii) of the Seller Disclosure
Schedule, (i) all of the issued and outstanding shares of capital stock or
ownership interests, partnership capital or equivalent of each Subsidiary of
the Company

 11
 

is owned directly or indirectly by the Company, free
and clear of all Encumbrances (other than restrictions imposed by applicable
state and federal securities Laws), and are duly authorized and validly issued,
free of preemptive rights and, as to corporate Subsidiaries, are fully paid and
non-assessable and (ii) there is no subscription, option, warrant, call right,
agreement or commitment relating to the issuance, sale, delivery, transfer or
redemption by any Subsidiary of the Company of the capital stock, partnership
capital or equivalent of any Subsidiary of the Company.

(e)           Governmental Filings.  No filings or registration with, notification
to, or authorization, consent or approval of any Governmental Entity
(collectively, “Governmental Filings”) are
required in connection with the execution, delivery and performance of this
Agreement or the Ancillary Agreements by Seller, except (i) Governmental
Filings under the HSR Act, (ii) Governmental Filings that become applicable as
a result of matters specifically related to Buyer or its Affiliates or (iii)
such other Governmental Filings the failure of which to be obtained or made
would not have a Material Adverse Effect and would not materially impair Seller’s
ability to consummate the transactions contemplated hereby.

(f)            Capital Structure.  The authorized capital stock of the Company
consists of 10,000 Shares, all of which are issued and outstanding.  All of the issued and outstanding Shares of
the Company have been duly authorized and validly issued, are fully paid and
non-assessable, and have not been issued in violation of any preemptive rights,
rights of first refusal or similar rights. 
Except as set forth in Section 3.1(f)(i) of the Seller Disclosure
Schedule, the Company has no other capital stock or equity securities
authorized, issued or outstanding, and there are no agreements, options,
warrants or other rights or arrangements existing or outstanding that provide
for the sale or issuance of any of the foregoing (other than this
Agreement).  Seller is the record and
beneficial owner of all of the issued and outstanding Shares and, at Closing,
the Shares purchased by Buyer shall constitute all of the issued and
outstanding shares in the authorized capital of the Company. Except as set
forth in Section 3.1(f)(ii) of the Seller Disclosure Schedule, there are no
stockholder agreements, voting trusts or other agreements or understandings
relating to the voting, purchase, redemption or other acquisition of any shares
of the capital stock of the Company. 
There are no unpaid dividends, whether current or accumulated, due or
payable on any shares of capital stock of the Company. Upon the delivery and
payment for the Shares at the Closing as contemplated by this Agreement, Buyer
will receive good and valid title for the Shares free and clear of all
Encumbrances (other than restrictions imposed by applicable state and federal
securities Laws).  Except as set forth in
Section 3.1(f)(iii) of the Seller Disclosure Schedule, the Company and its
Subsidiaries have no Indebtedness other than the Specified Debt.  Section 3.1(f)(iv) of the Seller Disclosure
Schedule contains a list as of the date hereof of each holder of profits
interests in the Seller and the number of such interests that will become
vested in accordance with their terms upon the Closing. As of the date hereof,
no employee of the Company or any of its Subsidiaries holds any equity
interests in Seller other than those identified in Section 3.1(f)(iv) of the
Seller Disclosure Schedule.

 12
 

(g)           Financial Statements.  The Seller has delivered to Buyer a true and
complete copy of the Financial Statements. 
The Financial Statements have been prepared in accordance with GAAP,
consistently applied (except as disclosed in the footnotes thereto), and fairly
present the financial position of the Company and any of its Subsidiaries as of
the dates thereof and their results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal
year-end audit adjustments and the absence of notes thereto.

(h)           No Conflict or Violation.  Except as set forth in Section 3.1(h) of the
Seller Disclosure Schedule, the execution, delivery and performance by Seller
of this Agreement and the Ancillary Agreements and the consummation by Seller
of the transactions contemplated hereby and thereby do not (i) assuming all
Governmental Filings described in Section 3.1(e) have been obtained or made,
violate any applicable Law to which any of Seller, the Company or any of its
Subsidiaries are subject; (ii) require a consent or approval under, conflict
with, result in a violation or breach of, or constitute a default under, result
in the acceleration of, create in any party the right to accelerate, terminate
or cancel any Contract of the Company or any of its Subsidiaries; or (iii)
violate the certificate of incorporation, limited liability company agreement,
by-laws or other similar organizational documents of any of Seller, the Company
or any of its Subsidiaries, except with respect to the foregoing clauses (i)
and (ii) as would not have a Material Adverse Effect and would not materially
impair Seller’s ability to consummate the transactions contemplated hereby.

(i)            Legal Proceedings.  Except as set forth in Section 3.1(i) of the
Seller Disclosure Schedule, as of the date of this Agreement, there are no
Actions pending or, to the Knowledge of Seller, threatened against the Company
or any of its Subsidiaries which (i) if adversely determined, would have a
Material Adverse Effect or (ii) challenge the validity or enforceability of
this Agreement or seek to enjoin or prohibit consummation of the transactions contemplated
hereby.  Except as set forth in Section
3.1(i) of the Seller Disclosure Schedule, neither the Company nor any of its
Subsidiaries is subject to any judgment, decree, injunction or order of any
Governmental Entity which has had or would have a Material Adverse Effect or
would materially impair Seller’s ability to consummate the transactions
contemplated hereby.

(j)            Personal Property.  Except as set forth in Section 3.1(j) of the
Seller Disclosure Schedule or as may be reflected in the Financial Statements,
the Company and its Subsidiaries have good and valid title, free and clear of
any Encumbrances (except for Permitted Encumbrances) to all the tangible
personal property reflected in the Financial Statements and all tangible
personal property acquired since the Balance Sheet Date, except as would not
have a Material Adverse Effect and except for such tangible personal property
as has been disposed of in the ordinary course of business.

(k)           Real Property.  Neither the Company nor any of its Subsidiaries
owns any real property.  Section 3.1(k)
of the Seller Disclosure Schedule sets forth (i) the location of all real
property (the “Real Property”) leased to the
Company or any of its Subsidiaries by a third party pursuant to a lease,
sublease or other

 13
 

similar agreement under which the Company or any of
its Subsidiaries is the lessee or sublessee (collectively, the “Company Leases”) and (ii) a list of all Company
Leases.  True and complete copies of all
Company Leases, together with all modifications, extensions, amendments and
assignments thereof, if any, have been furnished or made available to Buyer.

(l)            Taxes.  Except as set forth in Section 3.1(l) of the
Seller Disclosure Schedule, (i) the Company and its Subsidiaries have
accurately and timely filed (taking into account extensions) all material Tax
Returns required to have been filed by them and have timely paid all material
Taxes whether or not shown to be due thereon or, where payment is not yet due,
have made adequate provision for all material Taxes in the Financial Statements
of the Company in accordance with GAAP; (ii) the Company has not received any
written notice of any claims, actions, suits, proceedings or investigations for
the assessment or collection of material Taxes with respect to the Company or
any of its Subsidiaries; (iii) there are no liens for Taxes against any assets
of the Company or any of its Subsidiaries, other than liens for Taxes not yet
due and payable or contested in good faith; (iv) neither the Company nor any of
its Subsidiaries (A) is or has been a member of an affiliated group filing a
consolidated Tax Return (other than a group the common parent of which is the
Company), (B) has any liability for Taxes of any person arising from the
application of Treasury Regulation section 1.1502-6 or analogous provision of
state, local, or foreign law, or (C) is a party to or bound by any tax
allocation, sharing, indemnity or similar agreement or arrangement with respect
to income Taxes; (v) neither the Company nor any of its Subsidiaries is
required to make any disclosure to the IRS with respect to its participation in
a “listed transaction” pursuant to Treasury Regulation section 1.6011-4(b)(2);
and (vi) neither the Company nor any of its Subsidiaries have executed or filed
with any Tax authority any agreement extending the period for assessment or
collection of any material Taxes.

(m)          Absence of Certain
Changes.  Except as set
forth in Section 3.1(m) of the Seller Disclosure Schedule and as otherwise
expressly contemplated hereby, from the Balance Sheet Date, there has not
occurred any Material Adverse Effect. 
Except as set forth in Section 3.1(m) of the Seller Disclosure Schedule
and as otherwise expressly contemplated hereby, from the Balance Sheet Date,
the Company and its Subsidiaries have conducted the Business in the ordinary
course consistent with past practices, and neither the Company nor any of its
Subsidiaries has taken any action which would have been prohibited by Section
4.1 if such action had been taken after the date hereof.

(n)           Company Contracts.

(i)            Section 3.1(n)(i) of the Seller
Disclosure Schedule sets forth a list of Contracts in effect as of the date of
this Agreement to which the Company or any of its Subsidiaries is a party,
which are in the categories listed below (collectively, the “Company Contracts”); provided, however, that a Contract
referenced by more than one description need only be listed once on the Seller
Disclosure Schedule:

 14
 

(1)           any Contract involving a collective
bargaining agreement and any employment, consulting or similar agreement
requiring payment by the Company or any of its Subsidiaries of base annual
compensation in excess of $150,000, except for any such Contract that is
terminable at will and which does not provide for any severance or termination
pay (other than those required under applicable Law and other than severance pursuant
to the Company’s general severance policy);

(2)           any Contract evidencing Indebtedness
of the Company or any of its Subsidiaries, or under which the Company or any of
its Subsidiaries have issued any note, bond, indenture, mortgage, security
interest or other evidence of Indebtedness, or has directly or indirectly
guaranteed Indebtedness, liabilities or obligations of any Person (other than
the Company or any of its Subsidiaries);

(3)           any Contract (i) for the sale or
purchase of products or provision of services by or to the Company or any of
its Subsidiaries (other than ordinary course purchase orders or sales orders)
that involve products or services having a value of at least $1,000,000 in any
year other than any Contracts with customers; (ii) for the sale of products or
provision of services by or to the Company or any of its Subsidiaries (other
than ordinary course purchase orders or sales orders) with any of the twenty
(20) largest customers for the Business based on the dollar volume of sale for
the year ended December 31, 2006 and for the three month period ended March 31,
2007, respectively, and (iii) to sell or otherwise dispose of any assets having
a fair market value in excess of $100,000 other than in the ordinary course of
business;

(4)           any Contract under which the Company
or any of its Subsidiaries is or may become obligated to pay any amount in
respect of deferred or conditional purchase price (other than ordinary trade
terms), indemnification obligations, purchase price adjustment or otherwise in
connection with any (i) acquisition or disposition of all or substantially all
of the assets or securities constituting a line of business of any Person, (ii)
merger, consolidation or other business combination, or (iii) series or group
of related transactions or events of a type specified in subclauses (i) and
(ii);

(5)           any license agreement pursuant to
which the Company or any of its Subsidiaries (i) has acquired the right to use
any material Company Intellectual Property, other than “off-the-shelf” software
that is generally commercially available, or (ii) has granted to any third
party any license to use any material Company Intellectual Property or any Company
Intellectual Property on an exclusive basis;

(6)           any agreement for capital
expenditures or the acquisition or construction of fixed assets for the benefit
and use of the Company or any of its Subsidiaries, requiring payments by the
Company or any of its Subsidiaries in excess of $100,000 for the fiscal year
ended December 31, 2006 or any fiscal year thereafter;

 15

(7)           any Contract containing a covenant
not to compete or that materially impairs the ability of the Company or any of
its Subsidiaries to freely conduct the Business in any geographic area, any
line of business or industry or containing any non-solicitation restriction or
that materially limits the ability of the Company or any of its Subsidiaries to
hire or solicit any employees, in each case other than Contracts with any
customer that restrict the ability of the Company or  any of its Subsidiaries to hire or solicit
employees of such customer;

(8)           any Contract which creates a
partnership or joint venture or similar arrangement;

(9)           any Contract relating to the
acquisition or disposition, since January 1, 2002, by the Company or any of its
Subsidiaries of any operating business, assets (other than inventory in the
ordinary course of business consistent with past practice) or capital stock of
any other Person;

(10)         any Contract with Seller or any of its
Affiliates (other than the Company and its Subsidiaries);

(11)         any Contract which would be required to
be filed as an exhibit to a Registration Statement on Form S-1 if the Company
was the registrant thereunder; and

(12)         any Contract that would reasonably be
expected to prevent, materially delay or materially impede the Seller’s or the
Company’s ability to consummate the transactions contemplated by this
Agreement;

(13)         any individual Contract to which the
Company or any of its Subsidiaries is a party or by which it is bound (other
than customer contracts), the loss of which would have a Material Adverse
Effect; and

(14)         any outstanding written commitment to
enter into any agreement of the type described in subsections (1) through (13)
of this Section 3.1(n)(i).

(ii)           A true, correct and complete copy of
each Company Contract has been previously made available to Buyer.  Except as set forth in Section 3.1(n)(ii) of
the Seller Disclosure Schedule, (i) each Company Contract (A) constitutes a
valid and binding obligation of the Company or the Subsidiary of the Company
party thereto and (B) assuming such Company Contract is binding and enforceable
against the other parties thereto, is enforceable against the Company or the
Subsidiary party thereto, except as limited by bankruptcy, insolvency,
reorganization, moratorium or other similar Laws affecting the enforcement of
creditors’ rights in general and subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law
or in equity), and (ii) neither the Company nor any of its Subsidiaries is in
breach of or default under any Company Contract, except, in each case set forth
in clauses (i) and (ii), where such failure to be so valid, binding and
enforceable, or

 16
 

such breach or default,
would not have a Material Adverse Effect. 
Except as disclosed in Section 3.1(n) of the Seller Disclosure Schedule,
the Seller is not party to any Company Contract.

(o)           Labor.  Except as set forth in Section 3.1(o) of the
Seller Disclosure Schedule, since January 1, 2006, no executive employee of the
Company or any of its Subsidiaries and no group of employees of the Company or
any of its Subsidiaries has informed the Company or any of its Subsidiaries in
writing of any plans to terminate his or their employment.  No labor strike or work stoppage against the
Company or any of its Subsidiaries is pending or, to the Knowledge of Seller,
threatened, and neither the Company nor any of its Subsidiaries is subject to
any pending labor dispute, arbitration, lawsuit or administrative proceeding
which would have a Material Adverse Effect. 
No employees of the Company and any of its Subsidiaries are represented
by any labor union nor are any collective bargaining agreements otherwise in
effect with respect to such employees in connection with their employment by
the Company or any of its Subsidiaries, and no union organizing activities
involving such employees are pending or, to the Knowledge of Seller,
threatened.  Except for such independent
contractors, if any, as are set forth in Section 3.1(o) of the Seller
Disclosure Schedule, all employees and independent contractors of the Business
are employed or retained, as applicable, by the Company or one of its
subsidiaries.

(p)           Compliance With Law.  Except for laws relating to Taxes and
employee benefits, which shall be governed exclusively by Section 3.1(l) and
Section 3.1(r), respectively, and except as set forth in Section 3.1(p) of the
Seller Disclosure Schedule, the Company and any of its Subsidiaries are, and
since June 14, 2004 have been, in compliance with applicable Laws, except to
the extent any non-compliance therewith would not have a Material Adverse
Effect.  Except as set forth in Section
3.1(p) of the Seller Disclosure Schedule, all approvals, authorizations,
permits and licenses of Governmental Entities (collectively, “Permits”) required to conduct the Business, as conducted on
the date hereof, are in the possession of one or more of the Company or its
Subsidiaries, as applicable, are in full force and effect and the Company and
its Subsidiaries are and, since June 14, 2004 have been, in compliance
therewith, except for such Permits the failure of which to possess or with
which to be in compliance would not have a Material Adverse Effect.

(q)           No Undisclosed
Liabilities.  Except as
reflected or reserved against in the Financial Statements or the notes thereto,
or in Section 3.1(q) of the Seller Disclosure Schedule, neither the Company nor
any of its Subsidiaries had, as of the Balance Sheet Date, any liabilities
required by GAAP to be reflected or reserved against on an unaudited balance
sheet of the Company and any of its Subsidiaries.  Except as set forth in Section 3.1(q) of the
Seller Disclosure Schedule, since the Balance Sheet Date, neither the Company
nor any of its Subsidiaries has incurred any liabilities required by GAAP to be
reflected or reserved against on an unaudited balance sheet of the Company and
any of its Subsidiaries, except such liabilities which were incurred in the
ordinary course of business which would not have a Material Adverse Effect.

 17
 

(r)            Employee Benefit Plans.

(i)            Section 3.1(r)(i) of the Seller
Disclosure Schedule sets forth a list of each Company Plan.

(ii)           Seller represents and warrants,
except as set forth in Section 3.1(r)(ii) of the Seller Disclosure Schedule,
that:

(1)           each Company Plan has been
established and administered in accordance with its terms and applicable Law,
including, as to each Company Plan that is subject to United States Law, ERISA
and the Code, except as would not have a Material Adverse Effect;

(2)           each Company Plan that is an “employee
pension benefit plan” (within the meaning of ERISA Section 3(2)) of the Company
and any of its Subsidiaries has received a favorable determination letter as to
its qualification.  To the Seller’s
Knowledge, no event has occurred or circumstance exists that would give rise to
disqualification or loss of tax-exempt status of any Company Plan or a related
trust.  No Company Plan is subject to the
provisions of Section 302 or Title IV of ERISA or Section 412 of the Code. No
prohibited transaction (within the meaning of Section 4975 of the Code) has
occurred with respect to any Company Plan that is reasonably likely to result
in material liability to the Company and none of the Seller, the Company, nor
its Subsidiaries is reasonably expected to be subject to a material liability
under Title IV of ERISA;

(iii)          With respect to each Company Plan, no
Action that is reasonably likely to result in material liability to the Company
is pending or, to the Seller’s Knowledge, threatened, other than claims for
benefits in the ordinary course;

(iv)          Except as contemplated by Section 4.2
or as set forth in Section 3.1(r)(iv) of the Seller Disclosure Schedule, the
consummation of the transactions contemplated hereby (either alone or in connection
with any termination of employment following the Closing) shall not (i) entitle
any current or former employee or officer of the Company or any of its
Subsidiaries to severance pay, unemployment compensation or any other payment,
(ii) accelerate the time of payment or vesting, or increase the amount of any
compensation or benefit due any such employee or officer, or (iii) require the
Company or any of its Subsidiaries to fund any vehicle for the benefit of any
of their respective employees; and

(v)           With respect to each Company Plan
that is not subject to United States Law, each such plan required to be
registered has been registered and has been maintained in good standing with
applicable regulatory authorities.

(s)           Intellectual Property.

(i)            Section 3.1(s)(i) of the Seller
Disclosure Schedule sets forth, for the Company Intellectual Property owned by
the Company or any

 18
 

of its Subsidiaries, (a)
a list of all U.S. and foreign:  (i)
patents and patent applications; (ii) trademark registrations and applications
(including Internet domain name registrations); and (iii) copyright
registrations and applications, and (b) a list of all material unregistered
trademarks and tradenames, material proprietary databases and material
internally developed software.  The
registrations set forth in Section 3.1(s)(i) of the Seller Disclosure Schedule
are in effect and subsisting, except as otherwise noted in Section 3.1(s)(i) of
the Seller Disclosure Schedule.

(ii)           Except as set forth in Section
3.1(s)(ii) of the Seller Disclosure Schedule, (a) the Company and its
Subsidiaries, own or have the right to use all Intellectual Property, and the
goodwill associated therewith, used in the conduct of their businesses as
currently conducted or as currently proposed to be conducted by the Seller,
free and clear of all Encumbrances (other than licenses in the ordinary course
of business relating thereto), except as would not have a Material Adverse
Effect, (b) the conduct of the Business does not infringe or otherwise violate
any Person’s Intellectual Property, and there is no such claim pending or
threatened against the Company or any of its Subsidiaries, except as would not
have a Material Adverse Effect, (c) to the Knowledge of the Seller, no Person
is infringing or otherwise violating any Company Intellectual Property owned or
exclusively licensed by the Company or any of its Subsidiaries, and no such
claims are pending or threatened against any Person by the Company or any of
its Subsidiaries and (d) the Company and its Subsidiaries take reasonable
actions to protect and maintain material Company Intellectual Property,
including executing all appropriate confidentiality agreements and invention
assignments, except as would not have a Material Adverse Effect.

(t)            Brokers’ Fees.  No broker, investment banker, financial
advisor or other person is entitled to any broker’s, finder’s, financial
advisor’s or other similar fee or commission in connection with this Agreement
or the transactions contemplated hereby based upon arrangements made by or on
behalf of Seller, other than Deutsche Bank Securities Inc., which is acting as
financial advisor to Seller and its Affiliates in connection with the
transactions contemplated by this Agreement, and Monitor Clipper Partners, LLC.
Seller shall pay and satisfy all fees and expenses of, and liabilities to,
Deutsche Bank Securities Inc. and Monitor Clipper Partners, LLC.

(u)           Customers.  Section 3.1(u) of the Seller Disclosure
Schedule sets forth for the year ended December 31, 2006, the names of the ten
(10) largest customers of the Business based on the dollar volume of
sales.  Since December 31, 2005 through
the date of this Agreement, none of the Seller, the Company nor any of its
Subsidiaries has received written notice from any such customer to the effect,
and as of the date of this Agreement, the Seller has no Knowledge that, any
such customer will stop buying products or services of, or otherwise materially
and adversely change its business relationship with, the Company or any of its
Subsidiaries.

(v)           Affiliate
Transactions.  Except
as set forth in Section 3.1(v)(i) of the Seller Disclosure Schedule, neither
the Company nor any of its

 19
 

Subsidiaries is a party to any agreement, arrangement,
transaction or understanding with the Seller or any Affiliate of the Seller
(other than the Company or any of its Subsidiaries) (such Affiliates, “Non-Company Affiliates”). Section 3.1(v)(i) of the Seller
Disclosure Schedule describes all material services provided by any Non-Company
Affiliate to the Company or any of its Subsidiaries and all other material
arrangements of the Company and its Subsidiaries with any of the Non-Company
Affiliates. Prior to the Closing, all of the agreements, arrangements,
transactions and understandings set forth in Section 3.1(v)(ii) of the Seller
Disclosure Schedule shall be terminated without any liability to the Company or
its Subsidiaries.  The Seller does not
have any material assets or material operations other than its ownership of the
capital stock of the Company.

(w)          Insurance.  Schedule 3.1(w) lists and briefly describes
each insurance policy maintained by the Company or any of its Subsidiaries
(collectively, “Insurance Policies”) and sets
forth the date of expiration of each such Insurance Policy.  The Seller has made available to Buyer
complete and correct copies of the Insurance Policies.  All of such Insurance Policies are in full
force and effect in accordance with their respective terms, and none of the
Company and its Subsidiaries is in default in any material respect with respect
to their obligations under any of the Insurance Policies.  None of the premiums or payments payable
under the Insurance Policies for periods prior to and ending on the Closing
Date shall be due after the Closing Date.

(x)            Proxy Statement.  The information to be supplied by the Seller for inclusion in the
Proxy Statement to be sent in connection with the meeting of Buyer’s
shareholders to consider the approval of this Agreement (the “Buyer Shareholders’ Meeting”) shall not, on the date the Proxy
Statement is first mailed to Buyer’s shareholders contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not false or misleading.  If at any time prior to the Closing, any
event relating to the Company or any of its Subsidiaries should be discovered
by the Seller which should be set forth in a supplement to the Proxy Statement,
the Seller shall promptly inform Buyer. 
Notwithstanding the foregoing, the Seller makes no representation or
warranty with respect to any information supplied by Buyer or any Person other
than the Seller or any agent or representative thereof which is contained in
any of the foregoing documents.  Without
limiting the foregoing, and for the avoidance of doubt, any disclosure
in the “description of the business”, “risk factors” or the “MD&A” section
of the Proxy Statement shall not be considered as among the information
supplied by the Seller for inclusion in the Proxy Statement.

(y)           Disclaimer of Warranties.  NOTWITHSTANDING ANY PROVISION OF THIS
AGREEMENT TO THE CONTRARY, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES TO
BUYER IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT EXCEPT
AS SPECIFICALLY SET FORTH IN THIS SECTION 3.1. 
ALL OTHER REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED,
ARE DISCLAIMED BY SELLER.

 20
 

Section
3.2            Representations and
Warranties of Buyer.  Buyer represents
and warrants to Seller as follows:

(a)           Due Organization and Good
Standing of Buyer.  Buyer
is duly incorporated, validly existing and in good standing under the Laws of
the State of Delaware.

(b)           Authorization of
Transaction by Buyer. 
Buyer has all requisite corporate power and authority to execute,
deliver and perform its obligations under this Agreement and the Ancillary
Agreements and to consummate the transactions contemplated hereby and
thereby.  The execution, delivery and
performance by Buyer of this Agreement and the Ancillary Agreements and the
consummation by Buyer of the transactions contemplated hereby and thereby will
be, upon Buyer Shareholder Approval, duly and validly authorized by all
necessary corporate action on the part of Buyer, and, other than the Buyer
Shareholder Approval, no other corporate proceedings on the part of Buyer are
necessary to authorize the execution, delivery and performance by Buyer of this
Agreement and the Ancillary Agreements or to consummate the transactions
contemplated hereby and thereby.  This
Agreement has been duly executed and delivered by Buyer and, assuming due
authorization, execution and delivery by Seller, constitutes, and each
Ancillary Agreement, when executed and delivered by Buyer (assuming due
authorization and delivery by the other parties thereto) shall constitute, a
valid and binding obligation of Buyer, enforceable against Buyer in accordance
with its terms, except that such enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar Laws now or hereafter
in effect relating to or affecting the rights and remedies of creditors and
general principles of equity (whether considered in a proceeding at law or in
equity).

(c)           Governmental Filings.  No Governmental Filings are required in
connection with the execution, delivery and performance of this Agreement by
Buyer, except (i) Governmental Filings under the HSR Act, (ii) Governmental
Filings that become applicable as a result of matters specifically related to
Seller or its Affiliates or (iii) such other Governmental Filings the failure
of which to be obtained or made would not materially impair Buyer’s ability to
consummate the transactions contemplated hereby.

(d)           No Conflict or Violation.  The execution, delivery and performance by
Buyer of this Agreement and the Ancillary Agreements and the consummation of
the transactions contemplated hereby and thereby do not (i) assuming all
authorizations, consents and approvals described in Section 3.2(c) have been
obtained or made, violate any applicable Law to which Buyer is subject; (ii)
require a consent or approval under, conflict with, result in a violation or
breach of, or constitute a default under, result in the acceleration of, create
in any party the right to accelerate, terminate or cancel any Contract to which
Buyer is a party; or (iii) violate the certificate of incorporation or by-laws
of Buyer, except with respect to the foregoing clause (i) and (ii) as would
not, individually or in the aggregate, materially impair Buyer’s ability to
consummate the transactions contemplated hereby.

 21
 

(e)           Legal Proceedings.  As of the date of this Agreement, there are
no Actions pending or, to the Knowledge of Buyer, threatened which challenge
the validity or enforceability of this Agreement or seeks to enjoin or prohibit
consummation of the transactions contemplated hereby.  Buyer is not subject to any judgment, decree,
injunction or order of any Governmental Entity which would materially impair Buyer’s
ability to consummate the transactions contemplated hereby.

(f)            Acquisition of Shares for
Investment.  Buyer has
such Knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of Buyer’s purchase of the
Shares.  Buyer confirms that it can bear
the economic risk of its investment in the Shares and can afford to lose its
entire investment in the Shares, has been furnished the materials relating to
Buyer’s purchase of the Shares which it has requested, and Seller has provided
Buyer the opportunity to ask questions of the officers and management employees
of the Company and to acquire additional information about the business and
financial condition of the Company and its Subsidiaries.  Buyer is acquiring the Shares for investment
and not with a view toward or for sale in connection with any distribution
thereof, or with any present intention of distributing or selling such
Shares.  Buyer agrees that the Shares may
not be sold, transferred, offered for sale, pledged, hypothecated or otherwise
disposed of without registration under the Securities Act of 1933, as amended,
except pursuant to an exemption from such registration available under such
Act.

(g)           Debt Commitment Letter.  Buyer has delivered to the Seller a true and
complete copy of the executed commitment letter from Deutsche Bank Trust
Company Americas and Deutsche Bank Securities Inc. (the “Debt
Commitment Letter”), pursuant to
which, and subject to the terms and conditions thereof, certain lenders and
their affiliates have committed to provide and arrange the financings described
therein, the proceeds of which may be used to consummate the purchase of the
Shares and the other transactions contemplated by this Agreement (the “Debt Financing”). As
of the date of this Agreement, (i) the Debt Commitment Letter, in the form so
delivered, is (A) a valid and binding obligation of the Buyer and, to the
knowledge of the Buyer, the other parties thereto and (B) valid and in full
force and effect and has not been withdrawn or terminated or otherwise amended
or modified in any respect and (ii) Buyer is not in breach of any of the terms
or conditions set forth therein and no event has occurred which, with or
without notice, lapse of time or both, could reasonably be expected to
constitute a breach or failure to satisfy a condition precedent set forth in
the Debt Commitment Letter.  As of the
date of this Agreement, subject to the accuracy of the representations and
warranties set forth in Section 3.1 hereof, and the satisfaction of the
conditions set forth in Section 5.1(a)(i) and (ii) hereof, Buyer has no reason
to believe that it will be unable to satisfy on a timely basis any term of
condition of closing to be satisfied by it set forth in the Debt Commitment
Letter prior to or on the Closing Date. 
Assuming the funding of the Debt Financing in accordance with the Debt
Commitment Letter, the proceeds from such Debt Financing constitute all of the
financing required for the consummation of the transactions contemplated by
this Agreement and, together with the funds in the Trust Fund (of not less than
$220  million and not more than $245
million), are sufficient for the satisfaction of all of Buyer’s obligations
under this Agreement, including the payment of the Purchase Price (and any

 22
 

fees and expenses of or payable by
Buyer).  All of the conditions precedent
to the obligations of the lenders under the Debt Commitment Letter to make the
Debt Financing available to Buyer are set forth in the Debt Commitment Letter.  Notwithstanding anything in this Agreement
to the contrary, the Debt Commitment Letter may be amended, modified or
supplemented after the date hereof but prior to the Closing; provided that the
terms thereof shall not (i) reduce the aggregate amount of the Debt Financing,
(ii) expand upon the conditions precedent to the Debt Financing as set forth in
the Debt Commitment Letter delivered to the Seller at or prior to the date
hereof in any respect that would reasonably be expected to make such conditions
less likely to be satisfied, or (iii) reasonably be expected to delay the
Closing.

(h)           Solvency.  Each of Buyer and the Company and its
Subsidiaries shall be Solvent immediately following the Closing, after giving
effect to (i) the transactions contemplated in this Agreement (assuming the
accuracy of the representations and warranties in Section 3.1 in all material
respects and assuming the Company and its Subsidiaries are Solvent immediately
prior to the Closing) and (ii) the incurrence of the Debt Financing, together with the payment of all estimated
legal, accounting and other fees related to such financing.

(i)            Brokers’ Fees.  No broker, investment banker, financial
advisor or other person, other than Evercore Group LLC and, in connection with
the financing of the transactions contemplated by this Agreement, Deutsche Bank
Trust Company Americas and Deutsche Bank Securities Inc., the fees and
expenses for which shall be paid by Buyer and its Affiliates, is entitled to
any broker’s, finder’s, financial advisor’s or other similar fee or commission in
connection with this Agreement or the transactions contemplated hereby based
upon arrangements made by or on behalf of Buyer or any of its Affiliates.

(j)            Trust Fund.  As of the date hereof and at the Closing Date, Buyer has and will
have no less than Two Hundred Forty-Five Million Dollars ($245,000,000)
invested in United States Government securities or in money market funds in a
trust account (the “Trust Fund”).

(k)           SEC Filings.  Buyer has made available to the Company a correct and complete
copy of each report, registration statement and definitive proxy statement
filed by Buyer with the SEC (the “Buyer SEC Reports”)
prior to the date of this Agreement.  As
of their respective dates, the Buyer SEC Reports:  (i) were prepared in accordance and complied in
all material respects with the requirements of the Securities Act or the
Exchange Act, as the case may be, and the rules and regulations of the SEC
thereunder applicable to such Buyer SEC Reports, and (ii) did not at the time
they were filed (and if amended or superseded by a filing prior to the date of
this Agreement then on the date of such filing and as so amended or superseded)
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

 23

(l)            Financial Statements. 
Each set of financial statements of Buyer (including, in each case, any
related notes thereto) contained in Buyer SEC Reports, including each Buyer SEC
Report filed after the date hereof until the Closing, complied or will comply
as to form in all material respects with the published rules and regulations of
the SEC with respect thereto, was or will be prepared in accordance with GAAP
applied on a consistent basis throughout the periods involved (except as may be
indicated in the notes thereto or, in the case of unaudited statements, do not
contain footnotes as permitted by Form 10-Q of the Exchange Act) and each
fairly presents or will fairly present in all material respects the financial
position of Buyer at the respective dates thereof and the results of this
operations and cash flows for the periods indicated, except that the unaudited
interim financial statements were, are or will be subject to normal adjustments
which were not or are not expected to have a material adverse effect on Buyer
taken as a whole.

(m)          No Reliance.  Buyer acknowledges that it has conducted to
its satisfaction an independent investigation of the financial condition,
liabilities, results of operations and projected operations of the Company and
its Subsidiaries and the nature and condition of their respective properties
and assets and the Business and, in making the determination to proceed with
the transactions contemplated by this Agreement and the Ancillary Agreements,
has relied solely on the results of its own independent investigation and the
representations and warranties set forth in this Agreement.  Buyer acknowledges that none of Seller, the
Company or any of its Subsidiaries, nor any other Person, has made any
representation or warranty, express or implied, as to the accuracy or
completeness of any information regarding the Company or any of its
Subsidiaries, the Business or other matters that is not included in this
Agreement.  Without limiting the generality
of the foregoing, none of Seller, the Company or any of its Subsidiaries, nor
any other Person, has made a representation or warranty to Buyer with respect
to (a) any projections, estimates or budgets for the Business, the Company or
any of its Subsidiaries, or (b) any material, documents or information relating
to the Company or any of its Subsidiaries made available to Buyer or its
Representatives in any data room or otherwise, except as expressly covered by a
representation or warranty set forth in this Agreement.  Buyer will not assert, except as provided in
Article VII, any claim against Seller, any of its Subsidiaries or any of their
respective directors, officers, employees, advisors, agents, direct or indirect
equity holders, consultants, investment bankers, brokers, representatives or controlling
persons, or any Affiliate of any of the foregoing, or hold Seller or any such
Person liable, for any inaccuracies, misstatements or omissions with respect to
information furnished by Seller or such Persons concerning the Business, the
Company or any of its Subsidiaries, this Agreement or the transactions
contemplated hereby.

ARTICLE IV 

COVENANTS

Section
4.1       Conduct of the Company’s Business.
 Seller agrees that, during the
period from the date of this Agreement until the earlier of the Closing or the
termination of this Agreement, except as (i) otherwise expressly contemplated
hereby, (ii) 

 24
 

required by applicable
Law, (iii) set forth in Section 4.1 of the Seller Disclosure Schedule or (iv)
consented to by Buyer in writing (which consent shall not be unreasonably
withheld or delayed), Seller shall cause each of the Company and any of its
Subsidiaries to (A) use reasonable best efforts to preserve intact the present
business organizations of the Company and its Subsidiaries, (B) use reasonable best
efforts to preserve the relationships with customers, employees and others
having business dealings with the Company and its Subsidiaries in all material
respects, (C) conduct their respective businesses and operations in the
ordinary course of business and (D) subject to the foregoing clauses (i), (ii),
(iii) and (iv), shall procure that each of the Company and any of its
Subsidiaries shall not:

(a)           authorize or effect any amendment to
or change its certificate of incorporation, by-laws or other organizational
documents;

(b)           issue or authorize the issuance of
any equity interests or equity securities, or grant any options, warrants, or
other rights to purchase or obtain any of its equity securities or issue, sell
or otherwise dispose of any of its equity securities, other than to the Company
or a Subsidiary of the Company;

(c)           (A) issue any note, bond, or other
debt security, or create, incur, assume or guarantee any Indebtedness (other
than any Indebtedness incurred as a result of any draw on the revolving credit
facility under the terms of the Specified Debt) or (B) make any payments in
respect of any Indebtedness except as required under the terms of thereof;

(d)           enter into any Contract, or
materially amend or modify any existing Contract, in each case, with any
Affiliate of the Company;

(e)           except in connection with customer
engagements in the ordinary course of business and except as otherwise
expressly permitted by this Section 4.1, sell, lease, transfer, abandon,
license, mortgage, pledge, create an Encumbrance or otherwise dispose of the
material property or assets of the Company and its Subsidiaries other than
pursuant to Contracts listed in the Seller Disclosure Schedule;

(f)            make any capital expenditure, or
commitments therefor, in excess of $250,000;

(g)           cancel, compromise or settle any
claim in excess of $250,000, or intentionally waive or release any material
rights, of the Company or any of its Subsidiaries;

(h)           (A) adopt, enter into, amend in any
material respect or terminate any Company Plan, (B) grant or agree to grant any
increase in the wages, salary, bonus severance or other compensation,
remuneration or benefits of any employee of the Company or any of its
Subsidiaries who is below partner-level, except in accordance with any existing
Company Plan or in the ordinary course of business consistent with past
practice or as required under applicable Law or (C) grant or agree to grant any
severance, other than Contracts providing for severance payments entered into 

 25
 

following the date of
this Agreement not to exceed $300,000 in the aggregate, or grant or agree to
grant any increase in the wages, salary, bonus, severance or other
compensation, remuneration or benefits of any partner-level or above
partner-level employee of the Company or any of its Subsidiaries;

(i)            make any changes to their accounting
principles (including revaluation of any assets of the Company or any of its
Subsidiaries, timing of the collection of accounts receivable, billing of its
customers, pricing and payment terms, cash collection, cash payments, or
writing off receivables or reserves) or practices, other than as may be
required by Law, GAAP or generally accepted accounting principles in the
jurisdictions of incorporation of the relevant Company or Subsidiary;

(j)            enter into any material new line of
business;

(k)           cancel or terminate its current
insurance policies or cause any of the coverage thereunder to lapse;

(l)            pay, make or declare any dividends
or distributions in respect of any of its capital stock;

(m)          change or make any material Tax
elections, change any method of accounting with respect to Taxes, file any
amended Tax Return, or settle or compromise any federal, state, local or
foreign material Tax liability;

(n)           acquire (by merger, consolidation or
acquisition of stock or assets) any corporation, partnership or other business
organization or division thereof or collection of assets constituting all or
substantially all of a business or business unit;

(o)           make any loans, advances or capital
contributions to any Person, other than any advance to employees that is less
than $10,000 and in the ordinary course of business;

(p)           except as set forth in Section 4.1(p)
of the Seller Disclosure Schedule and except as expressly permitted by clauses
(c), (e), (f), (g), (h) and (o) of this Section 4.1, (i) enter into any Company
Contract (other than customer Contracts entered into in the ordinary course of
business consistent with past practices), (ii) amend or modify in any material
respect, or terminate or fail to renew (to the extent such Contract can be
unilaterally renewed by the Company or its Subsidiaries), any Company Contract
or waive, release or assign any material rights or claims thereunder or (iii)
take any action, or omit to take any actions, or permit any omission to act
within the Company’s control, which will cause a material breach of or default
under any Company Contract; and

(q)           agree or otherwise commit to take any
of the actions prohibited by the foregoing clauses (a) through (p).

Section
4.2       Employment Matters.

 26
 

 

(a)           Upon the Closing Date, each of the
Company and any of its Subsidiaries shall continue to employ all individuals
who are employees of the Company or any of its Subsidiaries on the Closing
Date, including employees not actively at work due to injury, vacation,
military duty, disability or other leave of absence (the “Affected
Employees”).  Until at least
April 24, 2008, Buyer shall not reduce any Affected Employee’s base salary or
cash incentive compensation opportunity, each as in effect immediately prior to
the Closing Date, and shall provide employee benefits and base salary, wage
rates and annual cash bonus opportunity (including group health, life,
disability and severance arrangements but excluding equity participation or
equity-based compensation) to Affected Employees that are no less favorable in
the aggregate than those provided to such persons and their dependents and
beneficiaries immediately prior to the Closing Date.  Periods of employment with the Company and
any of its Subsidiaries shall be taken into account for purposes of
determining, as applicable, the eligibility for participation and vesting of
any employee under all employee benefit plans offered by Buyer or any Affiliate
of Buyer to the Affected Employees, including vacation plans or arrangements,
401(k) or other retirement savings plans and any severance or welfare
plans.  Buyer shall (i) waive any
limitation on medical coverage of Affected Employees due to pre-existing
conditions and/or waiting periods under the applicable medical plan of Buyer or
any Affiliate of Buyer to the extent such Affected Employees are currently
covered under a medical employee benefit plan of the Company or any of its
Subsidiaries and (ii) credit each Affected Employee with all deductible
payments and co-payments paid by such employee under the medical employee
benefit plan of the Company or their Affiliates prior to the Closing Date
during the year in which the Closing occurs for the purpose of determining the
extent to which any such employee has satisfied his or her deductible and
whether he or she has reached the out-of-pocket maximum under any medical plan
of Buyer or any Affiliate of Buyer for such year.  The Buyer shall recognize, and cause the
Company and its Subsidiaries to recognize, the vacation days and paid time off
accrued by the employees of the Company or any of its Subsidiaries prior to the
Closing

(b)           Buyer shall take all actions
necessary to assume and honor, in accordance with their terms, the Company
Plans maintained by the Company or its Subsidiaries.  Buyer shall be solely responsible for all
liabilities relating to the amendment, termination or alleged termination of
any Company Plan. Buyer shall not be responsible for any liabilities of Company
Plans maintained by Seller, if any.

(c)           This Section 4.2 is for the sole
benefit of the parties hereto and nothing herein express or implied shall give
or be construed to give to any Person, other than the parties hereto and such
permitted assigns, any legal or equitable rights hereunder.

Section
4.3       Publicity.  Buyer and Seller agree to communicate with
each other and cooperate with each other prior to any public disclosure of the
transactions contemplated by this Agreement. 
Buyer and Seller agree that no public release or announcement concerning
the terms of the transactions contemplated hereby shall be issued by any party
without the prior consent of Buyer and Seller, except as such release or
announcement, upon the advice of outside counsel, may be required by Law, in
which 

 27
 

case the party required
to make the release or announcement shall allow the other parties reasonable
time to comment on such release or announcement in advance of such issuance.

Section
4.4       Confidentiality.  (a)             Buyer
and its Representatives (as such term is defined in the Confidentiality
Agreement between the Operating Company and the Buyer, dated February 26, 2007
(the “Confidentiality Agreement”)) shall
treat all nonpublic information obtained in connection with this Agreement and
the transactions contemplated hereby as confidential in accordance with the
terms of the Confidentiality Agreement. 
The terms of the Confidentiality Agreement are hereby incorporated by
reference and shall continue in full force and effect until the Closing, at
which time such Confidentiality Agreement shall terminate.  If this Agreement is, for any reason,
terminated prior to the Closing, the Confidentiality Agreement shall continue
in full force and effect as provided in Section 6.2 hereof in accordance with
its terms.

(b)           From and after the Closing, Buyer
shall, and shall cause each of the Company and any of its Subsidiaries to, keep
confidential and not use for any purpose all nonpublic information regarding
Seller or its Affiliates (other than the Company and any of its Subsidiaries)
of which the Company or any of its Subsidiaries may be aware.  From and after the Closing, the Seller shall,
and shall cause each of its Affiliates to, keep confidential and not use for
any purpose all nonpublic information regarding the Company and any of its
Subsidiaries of which the Seller or any of its Affiliates may be aware; provided,
that the foregoing shall not apply with respect to any use of nonpublic
information in connection with the preparation and filing of any Tax Returns,
any Actions related this Agreement and the transactions contemplated hereby,
any Actions related to any Tax Returns or any enforcement of rights provided
under this Agreement.

(c)           Prior to the Closing, the Seller
shall, and shall cause its Affiliates to, assign to the Company the rights
under any confidentiality agreement relating to the Company or any of its
Subsidiaries to which the Seller or any of its Affiliates is a party and which
is assignable pursuant to its terms.  If
any such confidentiality agreements are not assignable pursuant to its terms,
upon the reasonable request by the Buyer, the Seller shall, at the sole expense
of the Buyer, enforce its rights under such agreements.

Section
4.5       Access to Information.  Subject to Section 4.4 hereof, Seller shall
cause its officers, directors, employees, auditors and other agents to afford
the officers, directors, employees, auditors and other agents and advisors of
Buyer and its financing sources reasonable access during normal business hours
to the officers, directors, employees, agents, properties, offices and other
facilities of the Company and any of its Subsidiaries and their books and
records, and shall furnish Buyer with such financial, operating and other data
and information with respect to the Business, as Buyer, through its officers,
employees or agents, may reasonably request in connection with the Buyer’s
preparation of the Proxy Statement or for any other such reasonable
purposes.  In exercising its rights
hereunder, Buyer shall conduct itself so as not to interfere in the conduct of
the business of the Company and any of its Subsidiaries prior 

 28
 

to Closing.  Buyer acknowledges and agrees that any
contact by Buyer and its agents and representatives with officers, employees,
customers or agents of the Company and any of its Subsidiaries hereunder shall
be arranged and supervised by representatives of Seller, unless Seller
otherwise expressly consents with respect to any specific contact.  Notwithstanding anything to the contrary set
forth in this Agreement, neither Seller nor any of its Affiliates (including
the Company and any of its Subsidiaries) shall be required to disclose to Buyer
or any agent or representative thereof any information if doing so could
violate any Contract or Law to which Seller or any of its Affiliates (including
the Company and any of its Subsidiaries) is a party or is subject or which it
believes in good faith could result in a loss of the ability to successfully
assert a claim of privilege (including the attorney-client and work product
privileges). The parties hereto will use reasonable best efforts to make
appropriate substitute disclosure arrangements under circumstances in which the
restrictions of the preceding sentence apply.

Section
4.6       Post-Closing Access.  Following the Closing, for so long as such
information is retained by the Buyer, the Company or any of its Subsidiaries
(which shall be for a period of at least six years), the Buyer and the Company
shall permit the Seller and its authorized representatives to have reasonable
access and duplication rights during normal business hours, upon reasonable
prior notice to the Buyer or the Company, to the books, records and personnel
relating to the Business or the Company and its Subsidiaries with respect to
the period prior to the Closing, to the extent that such access may be
reasonably required (i) in connection with the preparation of any accounting
records or with any audits, (ii) in connection with any suit, claim, action,
proceeding or investigation relating to the Company or any of its Subsidiaries
or the Business, (iii) in connection with any regulatory filing or matter or
(iv) in connection with any other valid legal or business purpose.

Section
4.7       Filings and Authorizations, Including HSR Act
Filing.  

(a)           Seller, on the one hand, and Buyer,
on the other hand, shall, and shall cause its Affiliates to, promptly file or
cause to be filed all necessary Governmental Filings, including (i) filing
within ten (10) Business Days of the date of this Agreement all necessary
Governmental Filings under the HSR Act and (ii) submissions of additional
information requested by any Governmental Entity, and Buyer shall be solely
responsible for all filing fees required to be paid in connection with any of
the foregoing.  Each of Buyer and Seller
further agrees that it shall, and shall cause its Affiliates to, comply with
any applicable post-Closing notification or other requirements of any
antitrust, trade competition, investment or control reporting or similar Law or
regulation of any Governmental Entity with competent jurisdiction.  Each of Buyer and Seller agrees to cooperate
with and promptly to consult with, to provide any reasonably available
information with respect to, and to provide, subject to appropriate confidentiality
provisions, copies of all presentations and filings to any Governmental Entity
to the other party or its counsel.

(b)           In addition to the agreements set
forth in (a) above, Buyer shall ensure that the consents, approvals, waivers or
other authorizations from Governmental Entities, including antitrust clearance
under the HSR Act, are obtained as 

 29
 

promptly as practicable
and that any conditions set forth in or established by any such consents,
approvals, waivers or other authorizations from Governmental Entities are
wholly satisfied.  In fulfillment of this
covenant, Buyer agrees, among other steps or actions and without limiting the
scope of Buyer’s obligations, to:

(i)            offer and agree to an order
providing for the divestiture by Buyer
and its Affiliates of such
properties, assets, operations or businesses (including such properties,
assets, or operations of the Company
or any of its Subsidiaries) as are necessary to permit Buyer fully to complete the
transactions contemplated hereby;

(ii)           offer and agree to hold separate such
properties, assets, operations or businesses, pending the satisfaction or
termination of any such conditions, restrictions or agreements affecting Buyer’s
full rights of ownership of the Company or any of its Subsidiaries (or any
portion thereof) as may be necessary to permit Buyer fully to complete the
transactions contemplated hereby;

(iii)          satisfy any additional conditions
imposed by Governmental Entities with respect to the acquisition of the Company
or any of its Subsidiaries; and

(iv)          oppose fully and vigorously any
litigation relating to this Agreement or the transactions contemplated hereby,
including to appeal promptly any adverse decision or order by any Governmental
Entity or, if reasonably requested by Seller, to commence or threaten to
commence and to pursue vigorously litigation reasonably believed by Seller to
be helpful in obtaining authorization from Governmental Entities or in
terminating any outstanding proceedings, it being understood that the costs and
expenses of all such legal action shall be borne by Buyer.

Section
4.8       Directors’ and Officers’ Indemnification and
Insurance.  From the
Closing Date through the sixth anniversary of the Closing Date, Buyer shall
cause the Company and its Subsidiaries and any successor to the Company and its
Subsidaries to, indemnify and hold harmless each present (as of the Closing
Date) and former officer or director of the Company and its Subsidiaries (the “D&O Indemnified Parties”), against all claims, losses,
liabilities, damages, judgments, inquiries, fines and reasonable fees, costs
and expenses, including reasonable attorneys’ fees and disbursements
(collectively, “Costs”), incurred in connection
with any claim, action, suit, proceeding or investigation, whether civil,
criminal, administrative or investigative, arising out of actions taken by them
in their capacity as officers or directors at or prior to the Closing Date
(including this Agreement and the transactions and actions contemplated
hereby), whether asserted or claimed prior to, at or after the Closing Date, to
the fullest extent permitted under applicable Law.  Each D&O Indemnified Party will be
entitled to advancement of reasonable expenses incurred in the defense of any
claim, action, suit, proceeding or investigation from the Company and its Subsidiaries.  From the Closing Date through the sixth
anniversary of the Closing Date, Buyer shall cause the 

 30
 

certificate of
incorporation and bylaws (or equivalent governing documents) of the Company and
its Subsidiaries, or any successor to the Company or any of its Subsidiaries,
to contain provisions that are no less favorable with respect to
indemnification, advancement of expenses and exculpation of former or present
directors and officers as are set forth in the certificate of incorporation and
bylaws (or equivalent governing documents) of the Company and its Subsidiaries
as of the date of this Agreement.  Prior
to the Closing Date, the Buyer will arrange for the Company to purchase “tail”
coverage for the six-year period following the Closing under the directors’ and
officers’ liability insurance policies of the Company and/or its Subsidiaries
in place prior to the Closing Date with respect to matters existing or
occurring at or prior to the Closing Date that provides coverage substantially
similar in scope and amount to the coverage provided by such policies on the
date hereof.  This Section 4.8 shall be
for the benefit of, and shall be enforceable by, the D&O Indemnified
Parties, or any of them, and their respective heirs or estates.

Section
4.9       Reasonable Best Efforts.  Upon the terms and subject to the conditions
herein provided, except as otherwise provided in this Agreement, and without
limiting the obligations of the parties under Section 4.7, each of the parties
hereto agrees to use its reasonable best efforts to take or cause to be taken
all actions, to do or cause to be done and to assist and cooperate with the
other party hereto in doing all things necessary, proper or advisable under
applicable Laws to consummate and make effective, in the most expeditious
manner practicable, the transactions contemplated hereby, including: (i) the
satisfaction of the conditions precedent to the obligations of any of the
parties hereto; (ii) the obtaining of applicable consents, waivers or approvals
of any third parties; (iii) the defending of any lawsuits or other legal
proceedings, whether judicial or administrative, challenging this Agreement or
the performance of the obligations hereunder; (iv) the execution and delivery
of such instruments, and the taking of such other actions as the other party
hereto may reasonably require in order to carry out the intent of this
Agreement and (v) the
preparation of the Proxy Statement. 
Notwithstanding the foregoing, neither Seller, the Company or any of
their respective Affiliates shall be obligated to make any payments or
otherwise pay any consideration to any third party to obtain any applicable
consent, waiver or approval.

Section
4.10     Compliance with WARN Act and Similar Statutes.  Buyer shall not, and shall cause the Company
and its Subsidiaries not to, at any time within ninety days after the Closing
Date, effectuate (i) a “plant closing” (as defined in the Worker Adjustment and
Retraining Notification Act of 1988 (the “WARN Act”))
affecting any site of employment or one or more facilities or operating units
within any site of employment or facility of the Company or any of its
Subsidiaries or (ii) a “mass layoff” (as defined in the WARN Act) affecting any
site of employment or facility of the Company and any of its Subsidiaries; or,
in the case of clauses (i) and (ii), any similar action under applicable Law
requiring notice to employees in the event of a plant closing or layoff.  For the avoidance of doubt, Buyer shall be
responsible for notices or payments due to any employees, and all notices,
payments, fines or assessments due to any Governmental Entity pursuant to any
applicable Law with respect to the employment, discharge or layoff of any
employees by Buyer, the Company or any Subsidiary of the Company on or after the
Closing, including the WARN Act or any comparable state or 

 31
 

local law and any rules
or regulations as have been issued in connection with the foregoing.

Section
4.11     Buyer’s Financing Activities.

(a)           Buyer shall use reasonable best
efforts to (i) maintain in effect the Debt Commitment Letter and to satisfy on
a timely basis the conditions to obtaining the financing set forth therein,
(ii) negotiate and enter into definitive
financing agreements on the terms and
conditions contained in the Debt Commitment Letter (the “Debt Financing Agreements”) so that the Debt Financing
Agreements are in effect promptly but in any event no later than the Closing
Date, (iii) comply with its obligations under
the Debt Commitment Letter, (iv) enforce its rights under the Debt Commitment
Letter, and (v) consummate the financings contemplated by the Debt
Commitment Letter at or prior to Closing.

(b)           If (A) any of the Debt Commitment
Letters or the Debt Financing Agreements expire or are terminated or otherwise
become unavailable prior to the Closing, in whole or in part, for any reason, (B) if Deutsche
Bank Trust Company Americas and Deutsche Bank Securities Inc. indicates that it
is unwilling to fund the Debt Financing in accordance with the Debt Commitment
Letter or if it breaches its commitments under the Debt Commitment Letter, (C)
if any of the conditions of the Debt Commitment Letter become incapable of
being satisfied or (D) in the event that
Buyer becomes aware of any event or circumstance (including a breach by the Buyer
of any of its commitments under the Debt Commitment Letter) that makes
procurement of any portion of the Debt Financing unlikely to occur in the
manner or from the sources contemplated in the Debt Commitment Letter (each, a “Debt Replacement Event” ), Buyer shall (i)
immediately notify the Company of such expiration or termination or
unavailability and the reasons therefor and (ii) use its reasonable best
efforts to as promptly as practicable arrange for alternative financing on such
terms not less favorable to Buyer in the aggregate as the terms set forth in
the Debt Commitment Letter to replace the financing contemplated by such
expired or terminated or unavailable commitments or agreements, sufficient to
consummate the transactions contemplated by this Agreement (the “Alternative Financing” ). In such event, the term “Debt Commitment Letter”
as used herein shall refer to the commitment letter with respect to the
Alternative Financing, to the extent then in effect, and the term “Debt
Financing Agreements shall refer to the definitive financing agreements on the terms and conditions contained in the
debt commitment letter with respect to the Alternative Financing.  Buyer shall provide to the Company
copies of all documents relating to the financing of the transactions
contemplated hereby, shall keep the Company informed of the status of the
financing process relating thereto and shall
not permit any amendment or modification to be made to, or any waiver of any
material provision or remedy under, the Debt Commitment Letter except as
expressly provided in Section 3.2(g). Buyer shall give the Company
prompt notice upon becoming aware of any material breach by any party of the
Debt Commitment Letters or the Debt Financing Agreements or any termination
thereof.

 32

(c)           The Seller shall, and shall cause the
Company and its Subsidiaries to, provide such reasonable cooperation, as may be
reasonably requested by Buyer in connection with the financings contemplated by
the Debt Commitment Letter, including (i) upon reasonable advance notice by
Buyer, and on a reasonable number of occasions,
participation by appropriate officers in meetings, drafting sessions, due
diligence sessions, management presentation sessions, “road shows” and sessions
with rating agencies, (ii) using reasonable best efforts to assist Buyer to
prepare offering memoranda, private placement memoranda and similar documents,
(iii) using reasonable best efforts to compile the requisite financial
information, (iv) granting Buyer and its accountants full and complete access
to the books and records of the Company and its Subsidiaries and to any
officer, director or employee knowledgeable about such books and records, in
each case to the extent reasonably requested by Buyer, (v) using reasonable
best efforts to furnish necessary financial information for interim periods
subsequent to the date of the Financial Statements and prior to the Closing in
connection with such financings, (vi) using reasonable best efforts to
facilitate the pledge of collateral and obtain the release of collateral from
existing lenders, (vii) using reasonable best efforts to assist in obtaining
customary “pay-off” letters from existing lenders, (viii) using reasonable best
efforts to assist in obtaining comfort letters, legal opinions, ratings from
rating agencies and such other matters as may be reasonably requested by Buyer
and (ix) using reasonable best efforts to assist in the negotiation and
execution of the Debt Financing Agreements; provided, that neither the
Seller not the Company shall be required to (x) provide any such assistance
which would interfere unreasonably with the business or operations of the
Company and its Subsidiaries or (y) enter into any commitment which is not
conditioned on the Closing and does not terminate without liability to the
Seller and the Company upon the termination of this Agreement; provided
further that Buyer shall be solely responsible for all out-of-pocket expenses
of the Seller, the Company and its Subsidiaries incurred in connection with the
foregoing. Buyer shall indemnify and hold harmless the Seller, the Company, its
Subsidiaries and their officers and directors from and against any and all
liabilities, losses, damages, claims, costs, expenses, interest, awards,
judgments and penalties suffered or incurred by them in connection with the
arrangement of the financing of the transactions contemplated hereby and any
information utilized in connection therewith (other than historical information
relating to the Company or its Subsidiaries). In no event shall the Seller, the
Company or any of its Subsidiaries be required to pay any commitment or other
fee or incur any liability in connection with the financing of the transactions
contemplated hereby prior to the Closing. Seller hereby consents to the use of
the Company’s name and logos in connection with the financing; provided that
such name and logos are used solely in a manner that is not intended to or
reasonably likely to harm  or disparage
the Company, its reputation or goodwill or its marks.

Section
4.12         Escrow Agreement.  On the Closing Date, Buyer and Seller shall
enter into the Escrow Agreement, substantially in the form attached hereto as
Exhibit A (the “Escrow Agreement”).

Section
4.13         Preparation of Tax Returns.  Seller will prepare or cause to be prepared
and file or cause to be filed all income Tax Returns for the Company for all
periods ending on or prior to the Closing Date, whether filed before or after
the

 33
 

Closing Date (the “Seller
Returns”).  All Seller Returns will be
prepared on a basis consistent with the most recent Tax Returns of the Company
unless the Seller determines that there is no reasonable basis for such
position, and will be true, correct and complete in all material respects.  Not later than thirty (30) days prior to the due
date for filing of a Seller Return, Seller will provide Buyer with a copy of
such Seller Return.  If Buyer, within 15
days after the delivery of such Seller Return notifies Seller in writing that
it objects to any of the items on such Seller Return, Seller and Buyer will
attempt in good faith to resolve the dispute and, if they are unable to do so,
the disputed items shall be resolved (within a reasonable time) by a nationally
recognized independent accounting firm selected jointly by Seller and Buyer.

Section
4.14         Proxy Statement.

(a)           As promptly as practicable after the execution of this Agreement,
the Buyer will prepare and file the Proxy Statement with the SEC.  Prior to filing, the Seller shall be given
the reasonable opportunity to review and comment the Proxy Statement, including
those portions involving disclosure of the Company and its Subsidiaries.  Buyer will respond to any comments of the SEC
and use its commercially reasonable efforts to mail the Proxy Statement to its
shareholders at the earliest practicable time and, prior to any response to
such comments, Buyer shall reasonably consult with the Seller with respect
thereto and the Seller shall be given the reasonable opportunity to review and
comment thereon.  As promptly as
practicable after the execution of this Agreement, the Buyer will and the
Seller will, or will cause the Company to, each prepare and file any other
filings required under the Exchange Act, the Securities Act or any other
federal, foreign or state blue sky laws relating to the Merger and the
transactions contemplated by this Agreement (collectively, the “Other Filings”). 
Subject to the Seller’s right to review and comment on the Proxy
Statement set forth above, the Seller hereby consents to the disclosure of
information regarding the Company, its Subsidiaries and the Business, as well
as the terms of the transactions contemplated hereby in the Proxy Statement and
the Other Filings.  Each party will
notify the other promptly upon the receipt of any comments from the SEC and of
any request by the SEC or any other Governmental Entity for amendments or
supplements to the Proxy Statement or any Other Filing or for additional
information and will supply the other party with copies of all correspondence
between such party or any of its representatives, on the one hand, and the SEC
or other Governmental Entity, on the other hand, with respect to the Proxy
Statement or any Other Filing.  The Proxy
Statement and the Other Filings will comply in all material respects with all
applicable requirements of Law.  Whenever
any event occurs which is required to be set forth in an amendment or
supplement to the Proxy Statement or any Other Filing, the Seller or Buyer, as
the case may be, will promptly inform the other of such occurrence and cooperate
in filing with the SEC or any other Governmental Entity and/or mailing to
shareholders of Buyer, such amendment or supplement.  The proxy materials will be sent to the
shareholders of Buyer for the purpose of soliciting proxies from holders of
Buyer Common Stock to vote in favor of approving this Agreement and the
transactions contemplated hereby (“Buyer Shareholder
Approval”) at the Buyer Shareholders’ Meeting.  Such proxy materials shall be in the form of
a proxy statement to be used for the purpose of soliciting such proxies from
holders of Buyer Common Stock (the “Proxy Statement”).

 34
 

(b)           In connection with the Proxy
Statement, Seller shall (i) cause the Company to deliver to Buyer requisite
annual audited financial statements and interim unaudited financial statements
which meet the applicable requirements of Regulation S-X under the Securities
Act for inclusion in the Proxy Statement and cause the Company to use
reasonable best efforts to obtain customary comfort letters from its
independent accountants with respect thereto and (ii) cause the Company to
provide customary access and cooperation necessary to prepare the disclosures
relating to the Company and its Subsidiaries (including “description of the
business,” “risk factors” and “MD&A”).

(c)           As soon as practicable following its approval by the SEC, Buyer
shall distribute the Proxy Statement to the holders of Buyer Common Stock and,
pursuant thereto, shall call the Buyer Shareholders’ Meeting in accordance with
its certificate of incorporation, bylaws and the DGCL and, subject to the other
provisions of this Agreement, solicit proxies from such holders to vote in
favor of the adoption and approval of this Agreement and the other matters
presented to the shareholders of Buyer for approval or adoption at the Buyer
Shareholders’ Meeting.

(d)           Buyer shall comply with all applicable provisions of and rules
under the Exchange Act, all applicable provisions of its certificate of
incorporation and bylaws and all applicable provisions of the DGCL in the preparation,
filing and distribution of the Proxy Statement, the solicitation of proxies
thereunder and the calling and holding of the Buyer Shareholders’ Meeting.

(e)           Buyer, acting through its board of directors, shall include in
the Proxy Statement the recommendation of its board of directors that the
holders of Buyer Common Stock vote in favor of adoption of this Agreement,
which recommendation shall not be withdrawn or otherwise modified.

Section
4.15         Trust Fund.  Buyer shall make appropriate arrangements to have the Trust Fund made
available to Buyer immediately upon the Closing.

Section
4.16         Exclusivity. 
From the date hereof until earlier of the Closing Date and the
termination of this Agreement in accordance with Article VI hereof, the Seller
agrees that the Seller shall not, and shall cause the Company and its
Subsidiaries not to, directly or indirectly through any of their respective
officers, directors, partners, employees, stockholders, agents or
representatives, solicit, discuss or pursue a possible sale,  merger or other disposition of the Company or
any of its Subsidiaries, any equity securities or substantial portion of the
assets of the Company or any of its Subsidiaries or any interest therein, with
any Person other than Buyer or its representatives or provide any information
to any Person other than Buyer or its representatives in connection therewith.

Section
4.17         Standstill.  From the date of this Agreement until the
earlier of the Closing Date or the date of termination of this Agreement in accordance
with Article VI (the “Pre-Closing Period”),
Buyer shall: (a) cease all existing discussions and negotiations concerning any
acquisition by the Buyer, directly or

 35
 

indirectly, whether by
merger, capital stock exchange, purchase of assets or securities (debt or
equity) or other similar type of transaction or a combination of the foregoing,
of one or more domestic or international businesses (each, an “Acquisition”);
and (b) terminate any letter of intent or term sheet contemplating any
Acquisition that is in effect as of the date of this Agreement. During the
Pre-Closing Period, without the express prior written consent of the Seller,
which consent shall not be unreasonably withheld, Buyer shall not and shall not
permit its Representatives to enter into any confidentiality or non-disclosure
agreement or any other similar type of agreement with any Person contemplating
a possible Acquisition.

Section
4.18         Assignment of Rights.  Prior to the Closing, the Seller shall assign
to the Company its rights under the Contracts set forth in Section 4.18 of the
Seller Disclosure Schedule.

ARTICLE V 

CONDITIONS OF PURCHASE

Section
5.1            Conditions to
Obligations of Buyer. 
The obligations of Buyer to effect the Closing shall be subject to the
following conditions except to the extent waived in writing by Buyer:

(a)           Representations and Warranties and
Covenants of Seller.

(i)            The representations and warranties
of Seller contained in this Agreement, without giving effect to any materiality
or Material Adverse Effect qualifications therein, shall be true and correct as
of the date of this Agreement and as of the Closing Date as though made on and
as of the Closing Date (except for representations and warranties that
expressly speak as of an earlier date, which representations and warranties
shall be true as of such specified date), except for such failures to be true
and correct as would not in the aggregate have a Material Adverse Effect; provided,
however, that notwithstanding the foregoing, the Seller Specified Representations
shall be true and correct in all material respects or, if qualified by
materiality or Material Adverse Effect, shall be true and correct in all
respects;

(ii)           Seller shall have in all material
respects performed all obligations and complied with all covenants required by
this Agreement to be performed or complied with by it at or prior to the
Closing;

(iii)          Except as set forth in Section 3.1(m)
of the Seller Disclosure Schedule and otherwise expressly contemplated hereby,
there will not have occurred any Material Adverse Effect since the Balance
Sheet Date;

(iv)          Seller shall have delivered to Buyer a
certificate of Seller, dated the Closing Date, to the effect of the foregoing
clauses (i) and (ii); and

 36
 

(v)           Seller shall have delivered to Buyer
a FIRPTA certificate issued by the Company pursuant to Treasury regulations
section 1.897-2(h), certifying that interests in the Company are not U.S. real
property interests and otherwise satisfying the requirements of Treasury
regulations section 1.1445-2(c)(3).

(b)           Waiting Periods.  All waiting periods applicable under the HSR
Act shall have expired or been terminated. 
All waiting periods applicable to the transaction under any other
applicable antitrust or competition Laws shall have expired, except in jurisdictions
in which the failure of such waiting periods to have expired or been terminated
is not reasonably likely to (i) have a Material Adverse Effect or (ii) subject
the parties hereto or any of their respective directors or officers to criminal
liability if the transactions contemplated hereby were to be consummated (the “Excepted Jurisdictions”).

(c)           No Prohibition.  No statute, rule or regulation shall have
been enacted or promulgated by any Governmental Entity which prohibits the
consummation of the transactions contemplated hereby, and there shall be no
order or injunction of a court of competent jurisdiction in effect preventing
the consummation of the transactions contemplated hereby.

(d)           Buyer Shareholder
Approval.  Buyer shall have obtained the approval
of its shareholders with respect to the execution, delivery and performance of
this Agreement and the consummation of all 
transactions contemplated hereby, and holders
of 20% or more the Buyer’s common stock shall not have exercised the right to
convert their shares of common stock into a pro rata share of the aggregate
amount then on deposit in the Trust Fund pursuant to the terms set forth in the
Buyer’s Fourth Amended and Restated Certificate of Incorporation in
effect as of the date of this Agreement (the “Buyer
Charter”).

Section
5.2            Conditions to
Obligations of Seller. 
The obligations of Seller to effect the Closing shall be subject to the
following conditions except to the extent waived in writing by Seller:

(a)           Representations and
Warranties and Covenants of Buyer.

(i)            The representations and warranties
of Buyer contained in this Agreement, without giving effect to any materiality
or similar qualifications therein, shall be true and correct as of the date of
this Agreement and as of the Closing Date as though made on and as of the
Closing Date (except for representations and warranties that expressly speak as
of an earlier date, such representations and warranties shall be true as of
such specified date), except for such failures to be true and correct as would
not in the aggregate prevent or materially delay consummation by Buyer of the
transactions contemplated by this Agreement; provided, however, that
notwithstanding the foregoing, the Buyer Specified Representations shall be
true and correct in all material respects or, if

 37
 

qualified by materiality
or material adverse effect, shall be true and correct in all respects;

(ii)           Buyer shall have in all material
respects performed all obligations and complied with all covenants required by
this Agreement to be performed or complied with by it at or prior to the
Closing; and

(iii)          Buyer shall have delivered to Seller a
certificate of Buyer, dated the Closing Date to the effect of the foregoing
clauses (i) and (ii).

(b)           Waiting Periods.  All applicable waiting periods under the HSR
Act shall have expired or been terminated. 
All waiting periods applicable to the transaction under any other
applicable antitrust or competition Laws shall have expired or been terminated,
except in the Excepted Jurisdictions.

(c)           No Prohibition.  No statute, rule or regulation shall have
been enacted or promulgated by any Governmental Entity which prohibits the
consummation of the transactions contemplated hereby, and there shall be no
order or injunction of a court of competent jurisdiction in effect preventing
the consummation of the transactions contemplated hereby.

ARTICLE VI 

TERMINATION

Section
6.1            Termination of Agreement.  This Agreement may be terminated at any time
prior to the Closing Date as follows:

(a)           by mutual written consent of Buyer
and Seller;

(b)           by the written notice of Seller to
Buyer if the Closing shall not have occurred on or before February 24, 2008
(the “Outside Date”); provided, however,
that the right to terminate this Agreement under this Section 6.1(b) shall not
be available to Seller if the failure of Seller to fulfill any obligation under
this Agreement shall have been the cause of, or shall have resulted in, the
failure of the Closing to occur on or prior to such date;

(c)           by the written notice of Buyer to
Seller if the Closing shall not have occurred on or before the Outside Date;
provided, however, that the right to terminate this Agreement under this
Section 6.1(c) shall not be available to Buyer if the failure of Buyer to
fulfill any obligation under this Agreement shall have been the cause of, or
shall have resulted in, the failure of the Closing to occur on or prior to such
date;

(d)           by written notice of Seller to Buyer
if a request for additional information and documentary material pursuant to
the HSR Act has been received from either the Antitrust Division of the United
States Department of Justice or the United States Federal Trade Commission or
if an equivalent request has been

 38
 

received under any other antitrust or competition Laws
(other than in the Excepted Jurisdictions); or

(e)           by written notice of Seller to Buyer upon the occurrence of a Debt
Replacement Event, provided, that, the Seller shall not have the right
to terminate pursuant to this Section 6.1(e) if the Buyer delivers to the
Seller a duly executed commitment letter for Alternative Financing in
compliance with the terms set forth in Section 4.11(b) within 45 days of the
occurrence of such Debt Replacement Event;

(f)            by written notice of the Seller or
Buyer, if the Buyer Shareholder Approval shall not have been obtained by reason
of the failure to obtain such Buyer Shareholder Approval at a duly held meeting
of the shareholders of the Buyer or at any adjournment or postponement thereof;
provided, however, that the Buyer shall not have the right to
terminate this Agreement under this Section 6.1(f) if the Buyer has failed to
comply in any material respect with its obligations under Section 4.14;

(g)           by written notice of the Seller or
Buyer, if holders of 20% or more of the Buyer’s common stock exercise the right
to convert their shares of common stock into a pro rata share of the aggregate
amount then on deposit in the Trust Fund pursuant to the terms set forth in the  Buyer Charter; provided, however, that the
Buyer shall not have the right to terminate this Agreement under this Section
6.1(g) if the Buyer has failed to comply in any material respect with its
obligations under Section 4.14; or

(h)           by written notice of the Seller, if
the Buyer has (i) materially breached or materially failed to perform any of
its covenants or other agreements set forth in subsection (a), (c) or (d) of
Section 4.14 or (ii) breached or failed to perform in any respect any of its
covenants or other agreements set forth in subsection (e) of Section 4.14, provided,
that, in the case of clause (i) above only, the Seller shall have given the
Buyer written notice, delivered at least thirty (30) days prior to such
termination, stating Seller’s intention to terminate this Agreement pursuant to
this Section 6.1(h) and, in reasonable detail, the basis for such termination
and the Buyer shall have failed to cure such breach or failure within such
thirty (30) day period.

Section
6.2            Effect of Termination.

(a)           In the event of termination of this
Agreement by a party hereto pursuant to, and in accordance with, Section 6.1
hereof, written notice thereof shall forthwith be given by the terminating
party to the other party hereto, and this Agreement shall thereupon terminate
and become void and have no effect, and the transactions contemplated hereby
shall be abandoned without further action by the parties hereto, except that
the provisions of Section 3.1(t), Section 3.2(i), Section 4.4, Section 6.2 and
ARTICLE VIII shall survive the termination of this Agreement; provided,
however, that such termination shall not relieve any party hereto of any
liability for any willful
and material breach of this Agreement prior to the time of such termination.

 39
 

(b)           In the event (x) this Agreement is
terminated by the Seller pursuant to Section 6.1(f), (g) or (h) or (y) the
Closing shall not have occurred within 10 days following the satisfaction of
all of the conditions set forth in Section 5.1, the Buyer shall make a lump-sum
payment to the Seller for expenses in the amount of $500,000 in cash in
immediately available funds, to an account or accounts notified by the Seller.

(c)           Notwithstanding anything to the
contrary stated in this Agreement, in the event of termination of this
Agreement by a party hereto pursuant to Section 6.1 hereof, (i) the maximum
liability of the Buyer to the Seller arising under this Agreement or any of the
transactions contemplated hereby shall not exceed $15,000,000 and (ii) the
maximum liability of the Seller, the Company and its Subsidiaries, collectively,
to the Buyer arising under this Agreement or any of the transactions
contemplated hereby shall not exceed $15,000,000.

ARTICLE VII 

INDEMNIFICATION

Section
7.1            Obligations of Seller.

(a)           If the Closing occurs, subject to the
terms of this Article VII, Section 8.1 and Section 8.15, Seller agrees to
indemnify and hold harmless Buyer from and against all losses, damages,
liabilities, claims, costs and expenses, interest, penalties, judgments and
settlements (collectively, “Losses”)
incurred by Buyer by reason of:  (i) any
breach of or inaccuracy in any of the representations or warranties (in each
case, when made) of Seller in this Agreement or in the certificate delivered
pursuant to Section 5.1(a)(iii) (it being agreed that, for purposes of this
Article VII only, the accuracy of such representations and warranties shall be
determined without giving effect to any “materiality” or “Material Adverse
Effect” qualifications contained in such representations and warranties); and
(ii) any breach of any of the covenants or agreements of Seller in this
Agreement.

(b)           The obligation of Seller to indemnify
Buyer for Losses is subject to the following limitations:  (i) Seller shall not be required to provide
indemnification to Buyer pursuant to Section 7.1(a)(i) unless the aggregate
amount of Losses incurred by Buyer in respect of claims against Seller subject
to indemnification under  Section
7.1(a)(i) (“Buyer Claim”) exceeds $1,500,000
(the “Basket”), and then Buyer shall be
entitled to indemnification for only the amount in excess of the Basket, provided,
that the foregoing monetary limitation shall not apply with respect to a Buyer
Claim for any breach of the Seller Specified Representations or Seller’s
representations and warranties set forth in Section 3.1(l); and (ii) in no
event shall the aggregate amount of Losses for which Sellers are obligated to
indemnify Buyer pursuant to Section 7.1(a) exceed $15,000,000 (the “Ceiling”).

 40

Section
7.2            Obligations of Buyer.

(a)           If the Closing occurs, subject to the
terms of this Article VII, Section 8.1 and Section 8.15, Buyer agrees to
indemnify and hold harmless Seller and each of its equity holders
(collectively, the “Seller Indemnified Parties”)
from and against Losses incurred by any Seller Indemnified Party by reason of
(i) any breach of or inaccuracy in any of the representations or warranties (in
each case, when made) of Buyer in this Agreement; and (ii) any breach in any
material respect of any of the covenants or agreements of Buyer in this
Agreement.

(b)           The obligation of Buyer to indemnify
the Seller Indemnified Parties for Losses is subject to the following
limitations:  (i) Buyer shall not be
required to provide indemnification to any Seller Indemnified Party pursuant to
Section 7.2(a)(i) unless the aggregate amount of Losses incurred by all the
Seller Indemnified Parties in respect of claims against Buyer subject to
indemnification under Section 7.2(a)(i) (“Seller Claim”)
exceeds the Basket, and then the Seller Indemnified Parties shall be entitled
to indemnification for only the amount in excess of the Basket, provided,
that the foregoing monetary limitation shall not apply with respect to a Seller
Claim for any breach of the Buyer Specified Representations; and (ii) in no
event shall the aggregate amount of Losses for which Buyer is obligated to
indemnify the Seller Indemnified Parties pursuant to Section 7.2(a) of this
Agreement exceed the Ceiling.

Section
7.3            Indemnification Procedures.

(a)           The obligations of an indemnifying
party under Section 7.1 or Section 7.2 (an “Indemnifying
Party” ) with respect to Losses arising from any Actions commenced
by any third party which are subject to the indemnification provided for in
Section 7.1 or Section 7.2 (“Third Party Claims”
) shall be governed by and contingent upon the following additional terms and
conditions:  if a party that that may be
entitled to indemnification pursuant to Article VII (an “Indemnified
Party” ) shall receive notice of any Third Party Claim, the
Indemnified Party shall give the Indemnifying Party notice of such Third Party
Claim within 20 days of the receipt by the Indemnified Party of such notice and
a copy of the papers served with respect to such claim (if any); provided,
however, that the failure to provide such notice shall not release the
Indemnifying Party from any of its obligations under Section 7.1 or Section 7.2
except to the extent the Indemnifying Party is materially prejudiced by such
failure.  If the Indemnifying Party
acknowledges in writing its obligation to indemnify the Indemnified Party
hereunder against any Losses that may result from such Third Party Claim, then
the Indemnifying Party shall be entitled to assume and control the defense of
such Third Party Claim at its expense and through counsel of its choice
reasonably acceptable to the Indemnified Party if it gives notice of its
intention to do so to the Indemnified Party within twenty Business Days of the
receipt of such notice from the Indemnified Party; provided, however,
the Indemnified Party may, at its sole cost and expense, participate in the
defense of such Third Party Claim, it being understood that the Indemnifying
Party shall control such defense; provided, further, that if
counsel to the Indemnified Party advises such Indemnified Party in writing that
the Third Party Claim involves a conflict of interest (other than any relating
to this Article VII and the obligations of the Indemnifying Party to the
Indemnified Party hereunder) that would

 41
 

make it inappropriate for the same counsel to
represent both the Indemnifying Party and the Indemnified Party, then the
Indemnified Party shall be entitled to retain its own counsel at the cost and
expense of the Indemnifying Party (except that the Indemnifying Party shall not
be obligated to pay the fees and expenses of more than one separate counsel for
all Indemnified Parties, taken together). 
In the event the Indemnifying Party exercises the right to undertake any
such defense against any such Third Party Claim as provided above, it will keep
the Indemnified Party reasonably informed of progress of the defense of such
Third Party Claim, and the Indemnified Party shall cooperate with the
Indemnifying Party in such defense and make available to the Indemnifying
Party, all witnesses, pertinent records, materials and information in the
Indemnified Party’s possession or under the Indemnified Party’s control
relating thereto as is reasonably required by the Indemnifying Party.  Similarly, in the event the Indemnified Party
is conducting the defense against any such Third Party Claim, it will keep the
Indemnifying Party reasonably informed of progress of the defense of such Third
Party Claim, and the Indemnifying Party shall cooperate with the Indemnified
Party in such defense and make available to the Indemnified Party, all such
witnesses, records, materials and information in the Indemnifying Party’s
possession or under the Indemnifying Party’s control relating thereto as is
reasonably required by the Indemnified Party. 
No Third Party Claim shall be settled or compromised by the party
conducting the defense of such Third Party Claim without the written consent of
the Indemnifying Party or Indemnified Party, as applicable, which is not
conducting such defense (which such consent shall not be unreasonably withheld
or delayed).

(b)           In calculating amounts payable to an
Indemnified Party, the amount of any indemnified Losses shall be determined
without duplication of any other Loss for which an indemnification claim has
been made under any other representation, warranty, covenant, or agreement and
shall be computed net of (i) payments recovered by the Indemnified Party under
any insurance policy with respect to such Losses, (ii) any prior or subsequent
recovery by the Indemnified Party from any Person with respect to such Losses
and (iii) any Tax benefit actually realized by the Indemnified Party with
respect to such Losses; provided, that if there is any subsequent additional
Tax benefit actually realized by the Indemnified Party, the Indemnified Party
must notify the Indemnifying Party and pay to the Indemnifying Party the amount
of any such additional Tax benefit realized by the Indemnified Party within
twenty Business Days after such additional Tax benefit is realized.

(c)           Notwithstanding any other provision
of this Agreement, in no event shall any Indemnified Party be entitled to
indemnification pursuant to this Article VII to the extent any Losses were
attributable to such Indemnified Party’s own gross negligence or willful
misconduct.

(d)           Claims for indemnification pursuant
to Section 7.1(a) and Section 7.2(a) shall not be made after the Survival
Expiration Date.

(e)           To the extent that Seller makes any
payment pursuant to this Article VII in respect of Losses for which Buyer or
any of its Affiliates have a right to recover against a third party (including
an insurance company), Seller shall be

 42
 

subrogated to the right of Buyer or any of its
Affiliates to seek and obtain recovery from such third party; provided,
however, that if Seller shall be prohibited from such subrogation,  Buyer or its Affiliates, as applicable, shall
seek recovery from such third party on Seller’s behalf and pay any such
recovery to Seller.

(f)            For all Tax purposes, the parties
agree to treat indemnity payments made pursuant to this Agreement as an
adjustment to the Purchase Price.

Section
7.4            Indemnification Sole
Remedy.  After the
Closing, the provisions of this Article VII shall constitute the sole and
exclusive remedy of the parties against each other with respect to any breach
or non-fulfillment of any representation, warranty, agreement, covenant,
condition or any other obligation contained in this Agreement or the Ancillary
Agreements other than in respect of claims based on breaches of Section 4.4,
Section 4.6, Section 4.8, Section 4.10, Section 4.13 or Section 4.18.

Section
7.5            Recoupment Exclusively
Against Escrow. 
Any claim for indemnification to which Buyer is entitled under this
Agreement as a result of any Losses it may suffer will be satisfied solely from
the funds held in the Escrow Account and in accordance with the terms of the
Escrow Agreement and this Agreement, and Buyer will not be entitled to any
payment from any source other than the Escrow Account for any such indemnification
claim.

ARTICLE VIII 

MISCELLANEOUS

Section
8.1            Survival.  

(a)           The representations and warranties in
this Agreement shall survive the Closing and terminate on the 18 month
anniversary of the Closing Date (the “Survival Expiration Date”).

(b)           All covenants and agreements
contained herein which by their terms are to be performed in whole or in part,
or which prohibit actions, subsequent to the Closing Date shall survive the
Closing in accordance with their terms. 
All other covenants and agreements contained herein shall not survive
the Closing and shall thereupon terminate, except that claims for
indemnification in respect of any breach thereof shall terminate on the
Survival Expiration Date.

Section
8.2            Assignment; Binding
Effect.  This
Agreement and the rights hereunder are not assignable unless such assignment is
consented to in writing by both Buyer and Seller and, subject to the preceding
clause, this Agreement and all the provisions hereof shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns, provided that no such consent shall be
required for an assignment by Buyer to any of its affiliates or financing
sources so long as such assignment does not relieve the Buyer of any of its
obligations hereunder.

 43
 

Section
8.3            Choice of Law.  This Agreement shall be governed by an
interpreted and enforced in accordance with the Laws of the State of New York
(other than any such Laws which would result in the application of the Laws of
another jurisdiction).

Section
8.4            Consent to Jurisdiction
and Service of Process. 
ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST THE PARTIES ARISING OUT OF OR
RELATING TO THIS AGREEMENT, OR ANY OBLIGATIONS HEREUNDER, SHALL BE BROUGHT IN
ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK,
COUNTY OF NEW YORK.  BY EXECUTING AND
DELIVERING THIS AGREEMENT, THE PARTIES, IRREVOCABLY (I) ACCEPT GENERALLY AND
UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF THESE COURTS; (II)
WAIVE ANY OBJECTIONS WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (I)
ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN
ANY SUCH COURT THAT SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM; (III) AGREE THAT SERVICE OF ALL PROCESS
IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, TO SUCH PARTY AT THEIR RESPECTIVE ADDRESSES
PROVIDED IN ACCORDANCE WITH SECTION 8.5; AND (IV) AGREE THAT SERVICE AS
PROVIDED IN CLAUSE (III) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER
SUCH PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.

Section
8.5            Notices.  All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed to
have been duly given when delivered personally, when sent by confirmed cable,
telecopy, telegram or facsimile, when sent by overnight courier service or when
mailed by certified or registered mail, return receipt requested, with postage
prepaid to the parties at the following addresses (or at such other address for
a party as shall be specified by like notice):

 44
 

If to Buyer, to:

Information
Services Group, Inc.

Four Stamford Plaza

107 Elm Street

Stamford, CT 06902

Attn:       Earl H. Doppelt

Fax:         203-517-3199

with copies, in the case of notice to Buyer, to:

Simpson Thacher &
Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Attn:       John Finley

Edward Chung

Fax: 212-455-2502

If to
Seller, to:

MCP-TPI
Holdings, LLC

c/o Monitor Clipper Partners, LLC

Two Canal Park

Cambridge, MA 02141

Attn:       Mark Thomas

Charles Yoon

Fax:         617-252-2211

with
copies, in the case of notice to Seller, to:

Ropes
& Gray LLP

1211 Avenue of the Americas

New York, New York  10036

Attn:       Chris Henry

Fax:         212-841-5725

Section
8.6            Headings.  The headings contained in this Agreement are
inserted for convenience only and shall not be considered in interpreting or
construing any of the provisions contained in this Agreement.

Section
8.7            Fees and Expenses.

(a)           Except
as otherwise specified in this Agreement (including Section 4.11(c), Section
6.2 and clause (c) of this Section 8.7 below), all costs and expenses incurred
in connection with this Agreement and the transactions contemplated hereby by
the Company or the Seller (including investment advisory and legal fees and
expenses and the payment obligation set forth in Section 8.7(a) of the Seller
Disclosure

 45
 

Schedule) shall be borne
by the Seller (excluding the Reimbursable Transaction Expenses, the “Seller Transaction Expenses”); provided, that upon
the consummation of the transactions contemplated by this Agreement, all
reasonable out-of-pocket fees and expenses incurred by the Seller or the
Company in connection with (x) their cooperation in the preparation of the
Proxy Statement and (y) any employment related arrangements (including any
equity incentive, roll-over or other compensation arrangements) contemplated or
requested by the Buyer with respect to the current or future employees of the
Company (including, in the case of clause (x) and (y) above, all travel, legal
and accounting and other out-of-pocket fees and expenses), shall be paid by the
Buyer or the Company (the “Reimbursable Transaction
Expenses”) at the Closing.

(b)           Except as otherwise specified in this
Agreement (including Section 4.11(c), Section 6.2 and paragraphs (a) and (c) of
this Section 8.7), all costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby by the Buyer (including
investment advisory and legal fees and expenses) shall be borne by the Buyer.

(c)           The Buyer and the Seller shall each be
responsible for one-half of all the Transfer Taxes and each party will, at
their own expense, file all necessary Tax Returns and other documentation with
respect to all such Transfer Taxes, fees and charges if required by applicable
Law.

Section
8.8            Entire Agreement.  This Agreement (including the Exhibits and
Schedules hereto) and the Ancillary Agreements constitute the entire agreement
between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements and understandings between the parties with
respect to such subject matter; provided, however, this Agreement shall not
supersede the terms and provisions of the Confidentiality Agreement, which shall
survive and remain in effect until expiration or termination thereof in
accordance with its terms and this Agreement.

Section
8.9            Interpretation.

(a)           When a reference is made to an
Article, Section or Schedule, such reference shall be to an Article, Section or
Schedule of or to this Agreement unless otherwise indicated.

(b)           Whenever the words “include,” “includes”
or “including” are used in this Agreement, they shall be deemed to be followed
by the words “without limitation.”

(c)           Unless the context requires
otherwise, words using the singular or plural number also include the plural or
singular number, respectively, and the use of any gender herein shall be deemed
to include the other genders.

(d)           References to “dollars” or “$” are to
U.S. dollars.

(e)           The terms “hereof,” “herein,” “hereby,”
“hereto” and derivative or similar words refer to this entire Agreement.

 46
 

(f)            This Agreement was prepared jointly
by the parties hereto and no rule that it be construed against the drafter will
have any application in its construction or interpretation.

Section
8.10         Disclosure.  Any matter disclosed in any Section of the
Seller Disclosure Schedule shall be considered disclosed with respect to each
other Section of such Schedule to the extent the applicability thereto is reasonably
apparent.  The inclusion of information
in any Section of the Seller Disclosure Schedule shall not be construed as an
admission that such information is material.

Section
8.11         Waiver and Amendment.  This Agreement may be amended, modified or
supplemented only by a written mutual agreement executed and delivered by
Seller and Buyer.  Except as otherwise
provided in this Agreement, any failure of any party to comply with any
obligation, covenant, agreement or condition herein may be waived by the party
entitled to the benefits thereof only by a written instrument signed by the
party granting such waiver, but such waiver or failure to insist upon strict
compliance with such obligations, covenant, agreement or condition shall not
operate as a waiver of, or estoppel with respect to, any subsequent or other
failure.

Section
8.12         Third-party Beneficiaries.  This Agreement is for the sole benefit of the
parties hereto and their permitted assigns and nothing herein express or
implied shall give or be construed to give to any Person, other than the
parties hereto and such permitted assigns, any legal or equitable rights
hereunder; provided, however, that each of the D&O Indemnified Parties are
express third party beneficiaries of Section 4.8.

Section
8.13         Specific Performance.  The parties hereto agree that if any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached, irreparable damage would occur, no
adequate remedy at law would exist and damages would be difficult to determine,
and that the parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy at law or equity, without having to
post a bond or other security.

Section
8.14         Severability.  If any provision of this Agreement or the
application of any such provision to any person or circumstance shall be held
invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision hereof.

Section
8.15         Damages Limitation.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS
AGREEMENT, IN NO EVENT SHALL SELLER OR BUYER BE LIABLE UNDER THIS AGREEMENT FOR
PUNITIVE DAMAGES OR ANY SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES
OF ANY KIND OR NATURE, REGARDLESS OF THE FORM OF ACTION THROUGH WHICH SUCH
DAMAGES ARE SOUGHT (EXCEPT IN THE EVENT OF FRAUD OR WILLFUL MISCONDUCT).  IN NO EVENT SHALL SELLER OR BUYER BE LIABLE
UNDER THIS AGREEMENT FOR LOST PROFITS, EVEN IF UNDER APPLICABLE LAW, SUCH LOST
PROFITS WOULD NOT BE CONSIDERED

 47
 

CONSEQUENTIAL OR SPECIAL DAMAGES (EXCEPT IN THE EVENT
OF FRAUD OR WILLFUL MISCONDUCT).

Section
8.16         Negotiation of Agreement.  Each of Buyer and Seller acknowledges that it
has been represented by independent counsel of its choice throughout all
negotiations that have preceded the execution of this Agreement and that it has
executed the same with consent and upon the advice of said independent
counsel.  Each party and its counsel
cooperated in the drafting and preparation of this Agreement and the documents
referred to herein, and any and all drafts relating thereto shall be deemed the
work product of the parties and may not be construed against any party by
reason of its preparation.  Accordingly,
any rule of law or any legal decision that would require interpretation of any
ambiguities in this Agreement against the party that drafted it is of no
application and is hereby expressly waived. 
The provisions of this Agreement shall be interpreted in a reasonable
manner to effect the intentions of the parties and this Agreement.

Section
8.17         Counterparts; Facsimile
Signatures.  This
Agreement may be executed in any number of counterparts, each of which when
executed, shall be deemed to be an original and all of which together shall be
deemed to be one and the same instrument binding upon all of the parties hereto
notwithstanding the fact that all parties are not signatory to the original or
the same counterpart.  For purposes of
this Agreement, facsimile signatures shall be deemed originals, and the parties
agree to exchange original signatures as promptly as possible.

Section
8.18         Waiver of Jury Trial.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE
LEGAL REQUIREMENTS WHICH CANNOT BE WAIVED, EACH OF THE PARTIES HERETO HEREBY
WAIVES, AND AGREES TO CAUSE EACH OF ITS SUBSIDIARIES TO WAIVE, AND COVENANTS
THAT NEITHER IT NOR ANY OF ITS SUBSIDIARIES WILL ASSERT (WHETHER AS PLAINTIFF,
DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF
ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR
OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON
THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING. 
THE BUYER ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE COMPANY THAT
THIS Section 8.18 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THE COMPANY IS
RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT AND ANY OTHER AGREEMENTS
RELATING HERETO OR CONTEMPLATED HEREBY. 
ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
Section 8.18 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH
PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 48
 

Section
8.19         Waiver of Claims to Trust
Account.  Seller
acknowledges and understands that Buyer is a special purpose acquisition
corporation and that the proceeds of the offering of shares of its stock have
been designated for completing a business combination with one or more target
businesses and that if the transactions contemplated by this Agreement are not
consummated by Buyer by August 9, 2008 (which may be extended to February 9,
2009 if certain extension criteria are satisfied), Buyer will be obligated to
return to its shareholders the amounts being held in the Trust Fund. If the
Closing does not occur, the sole remedy for any claim by Seller against Buyer
for any monetary claims or otherwise, for any reason whatsoever, including
breaches of this Agreement by Buyer or any negotiations, agreements or
understandings in connection herewith, shall, except as otherwise provided in
Section 6.2, be limited to the termination of this Agreement pursuant to Section
6.1 hereof. Seller hereby waives any and all right, title, interest and claim
of any kind it may have in or to any moneys in the Trust Fund.

Section
8.20         Waiver of Conflict.  In the event the Seller or any of its equity
holders desires to engage Ropes & Gray LLP to represent them in connection
any post-Closing dispute with respect to this Agreement or any of the matters
contemplated hereby, Buyer hereby consents to such representation and agrees to
sign and deliver (and to cause the Company and its Subsidiaries to sign and
deliver) such consent and/or waivers of conflict with respect to such matters
as may reasonably be requested of Buyer, the Company or any of the Company’s
Subsidiaries.

Section
8.21         Non-Recourse.  No past, present or future director, officer,
employee, incorporator, member, partner, stockholder, Affiliate, agent,
attorney or representative of Seller, Buyer or their respective Affiliates
shall have any liability for any obligations or liabilities of Seller or Buyer
(as applicable) under this Agreement or for any claim based on, in respect of,
or by reason of, the transactions contemplated hereby.

 [The remainder of this page has been
intentionally left blank.  Signature
pages follow.]

 49

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

	
  

  	
  MCP-TPI HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Thomas

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Mark Thomas

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INFORMATION SERVICES GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael P. Connors

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Michael P. Connors

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Chairman & CEO

  	
   

  	
   

  

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  1

  
	
  Section 1.1 Definitions

  	
   

  	
  1

  
	
  ARTICLE II PURCHASE AND
  SALE OF SHARES

  	
   

  	
  9

  
	
  Section 2.1 Purchase
  and Sale of Shares.

  	
   

  	
  9

  
	
  Section 2.2 Closing

  	
   

  	
  10

  
	
  ARTICLE III
  REPRESENTATIONS AND WARRANTIES 

  	
   

  	
  10

  
	
  Section 3.1 Representations
  and Warranties of Seller

  	
   

  	
  11

  
	
  Section 3.2 Representations
  and Warranties of Buyer

  	
   

  	
  21

  
	
  ARTICLE IV COVENANTS 

  	
   

  	
  24

  
	
  Section 4.1 Conduct
  of the Company’s Business

  	
   

  	
  24

  
	
  Section 4.2 Employment
  Matters.

  	
   

  	
  26

  
	
  Section 4.3 Publicity

  	
   

  	
  27

  
	
  Section 4.4 Confidentiality

  	
   

  	
  28

  
	
  Section 4.5 Access
  to Information

  	
   

  	
  28

  
	
  Section 4.6 Post-Closing
  Access

  	
   

  	
  29

  
	
  Section 4.7 Filings
  and Authorizations, Including HSR Act Filing.

  	
   

  	
  29

  
	
  Section 4.8 Directors’
  and Officers’ Indemnification and Insurance

  	
   

  	
  30

  
	
  Section 4.9 Reasonable
  Best Efforts

  	
   

  	
  31

  
	
  Section 4.10 Compliance
  with WARN Act and Similar Statutes

  	
   

  	
  31

  
	
  Section 4.11 Buyer’s
  Financing Activities.

  	
   

  	
  32

  
	
  Section 4.12 Escrow
  Agreement

  	
   

  	
  33

  
	
  Section 4.13 Preparation
  of Tax Returns

  	
   

  	
  33

  
	
  Section 4.14 Proxy
  Statement.

  	
   

  	
  34

  
	
  Section 4.15 Trust
  Fund

  	
   

  	
  35

  
	
  Section 4.16 Exclusivity

  	
   

  	
  35

  
	
  Section 4.17 Standstill.

  	
   

  	
  35

  
	
  Section 4.18 Assignment
  of Rights

  	
   

  	
  36

  

 

 

	
  ARTICLE V CONDITIONS OF
  PURCHASE 

  	
   

  	
  36

  
	
  Section 5.1 Conditions
  to Obligations of Buyer

  	
   

  	
  36

  
	
  Section 5.2 Conditions
  to Obligations of Seller

  	
   

  	
  37

  
	
  ARTICLE VI TERMINATION 

  	
   

  	
  38

  
	
  Section 6.1 Termination
  of Agreement

  	
   

  	
  38

  
	
  Section 6.2 Effect
  of Termination.

  	
   

  	
  39

  
	
  ARTICLE VII
  INDEMNIFICATION 

  	
   

  	
  40

  
	
  Section 7.1 Obligations
  of Seller.

  	
   

  	
  40

  
	
  Section 7.2 Obligations
  of Buyer.

  	
   

  	
  40

  
	
  Section 7.3 Indemnification
  Procedures.

  	
   

  	
  41

  
	
  Section 7.4 Indemnification
  Sole Remedy

  	
   

  	
  43

  
	
  Section 7.5 Recoupment
  Exclusively Against Escrow

  	
   

  	
  43

  
	
  ARTICLE VIII
  MISCELLANEOUS 

  	
   

  	
  43

  
	
  Section 8.1 Survival.

  	
   

  	
  43

  
	
  Section 8.2 Assignment;
  Binding Effect

  	
   

  	
  43

  
	
  Section 8.3 Choice
  of Law

  	
   

  	
  44

  
	
  Section 8.4 Consent
  to Jurisdiction and Service of Process

  	
   

  	
  44

  
	
  Section 8.5 Notices

  	
   

  	
  44

  
	
  Section 8.6 Headings

  	
   

  	
  45

  
	
  Section 8.7 Fees
  and Expenses.

  	
   

  	
  45

  
	
  Section 8.8 Entire
  Agreement

  	
   

  	
  46

  
	
  Section 8.9 Interpretation.

  	
   

  	
  46

  
	
  Section 8.10 Disclosure

  	
   

  	
  47

  
	
  Section 8.11 Waiver
  and Amendment

  	
   

  	
  47

  
	
  Section 8.12 Third-party
  Beneficiaries

  	
   

  	
  47

  
	
  Section 8.13 Specific
  Performance

  	
   

  	
  47

  
	
  Section 8.14 Severability

  	
   

  	
  47

  
	
  Section 8.15 Damages
  Limitation

  	
   

  	
  47

  
	
  Section 8.16 Negotiation
  of Agreement

  	
   

  	
  48

  
	
  Section 8.17 Counterparts;
  Facsimile Signatures

  	
   

  	
  48

  
	
  Section 8.18 Waiver
  of Jury Trial

  	
   

  	
  48

  
	
  Section 8.19 Waiver of Claims to Trust Account

  	
   

  	
  49

  
	
  Section 8.20 Waiver of Conflict

  	
   

  	
  49

  
	
  Section 8.21 Non-Recourse

  	
   

  	
  49

  

 

Exhibit
A

Form
of Escrow Agreement

 

Exhibit A

ESCROW AGREEMENT

among

MCP-TPI
HOLDINGS, LLC

and

INFORMATION
SERVICES GROUP, INC.

 

and

THE BANK OF NEW YORK

Dated as of [_______________], 2007

ACCOUNT NUMBER(S): ____________________________

SHORT TITLE OF ACCOUNT: TPI / ISG Escrow Account

 

ESCROW AGREEMENT
made this [__] day of [_______] 2007 by and among THE BANK OF NEW YORK (“Escrow
Agent”), MCP-TPI HOLDINGS, LLC (“Seller”) and INFORMATION SERVICES GROUP, INC.
(“Buyer”, and collectively with Seller, the “Depositors”).  Reference is made to that certain Purchase
Agreement (the “Purchase Agreement”) dated as of April 24, 2007 by and between
Seller and the Buyer.

Depositors and Escrow Agent hereby agree that, in
consideration of the mutual promises and covenants contained herein, Escrow Agent
shall hold in escrow and shall distribute Escrow Property (as defined herein)
in accordance with and subject to the following Instructions and Terms and
Conditions:

I.    INSTRUCTIONS:

1.                                       Escrow Property

The property and/or funds deposited or to be
deposited with Escrow Agent by Depositors shall be as follows:  $15,000,000 (the “Escrow Amount”).

The foregoing property
and/or funds, plus all interest, dividends and other distributions and payments
thereon (collectively the “Distributions”) received by Escrow Agent, less any
property and/or funds distributed or paid in accordance with this Escrow
Agreement, are collectively referred to herein as “Escrow Property.”

2.                                       Investment of Escrow
Property  Depositors are to select one of the following
options:

o            (a)           Escrow Agent shall have no obligation
to pay interest on or to invest or reinvest any Escrow Property deposited or
received hereunder.

x           (b)           The Escrow Agent shall invest or
reinvest Escrow Property without distinction between principal and income, in
The Bank of New York Trust Company N.A.’s Deposit Reserve (the “BNYDR”) unless
otherwise directed by written instrument signed by both of the Depositors.

Escrow
Agent shall have no liability for any loss arising from or related to any such
investment other than in accordance with paragraph 4 of the Terms and
Conditions.

3.                                       Distribution of Escrow
Property

The Escrow Agent is directed
to hold and distribute the Escrow Property as set forth in this Section 3.

(a)                                  Other
than as provided in clauses (b) and (c)
below, the Escrow Agent shall distribute the Escrow Property only in
accordance with (i) a written instrument delivered to the Escrow Agent that is
executed by both Seller and Buyer and that

 2
 

instructs the
Escrow Agent as to the disbursement of some or all of the Escrow Property or
(ii) a final non-appealable order of a court of competent jurisdiction, a copy
of which is delivered to the Escrow Agent by either Seller or the Buyer and to
the other parties hereto, that instructs the Escrow Agent as to the
disbursement of some or all of the Escrow Property.

(b)                                 On
[____________], 20081 the “First Anniversary”) the Escrow Agent
shall automatically distribute to Seller an amount equal to:

(i)                                     
if as of such date there is no Outstanding Claims Amount, the lesser of (A) 50%
of the Escrow Amount plus any Distributions received by the Escrow Agent
thereon from the date hereof through such date, and (B) the Escrow Property.

(ii)                                  if
as of such date there is an Outstanding Claims Amount an amount equal to the
lesser of (A) 50% of the Escrow Amount plus any Distributions received by the
Escrow Agent thereon from the date hereof through such date and (B) the Escrow
Property less the Outstanding Claims Amount, if any,

provided
that if, solely as a result of a distribution to Seller in accordance
with this Section 3(b), the Escrow Property remaining in the Escrow Account
following such distribution would be less than $7,500,000, then such distribution
shall be reduced such that the Escrow Property remaining in the Escrow Account
immediately following such distribution shall be the greater of (i) $7,500,000
and (ii) the amount of the Escrow Amount as of the First Anniversary.

The Escrow Agent shall provide notice to each
Depositor of such distribution.

(c)                                  On
the date that is eighteen (18) months after the date of the Closing Date (as
defined in the Purchase Agreement) (the “Final Release Date”), the Escrow Agent
shall automatically distribute to Seller an amount equal to (i) the remaining
Escrow Property minus (ii) the Outstanding Claims Amount, if any.

(d)                                 “Outstanding
Claims Amount” means, as of a particular date, an amount equal to the Buyer’s
reasonable best estimation of the amount of Loss (as defined in the Purchase
Agreement) that the Buyer is entitled to as indemnification from the Seller
with respect to pending claims, as certified to the Escrow Agent and the Seller
in a written instrument executed by Buyer, which instrument shall include a reasonable
description of the amount and nature of such claims and Losses.

(e)                                  Amounts
distributed pursuant to this Section 3 shall be paid to the applicable party in
accordance with wire instructions furnished by such party to the Escrow Agent.

 

1 Insert the date
which is the first anniversary of the closing.

 3
 

 

4.                                       Addresses

Notices, instructions and
other communications shall be sent to Escrow Agent, Corporate Trust
Administration,  101 Barclay Street, 8 West, New
York, NY 10286, Attn.: Odell Romeo  and to Depositors
as follows:

 

	
  MCP-TPI Holdings, LLC

  c/o Monitor
  Clipper Partners

  Two Canal Park,
  4th Floor

  Cambridge,
  Massachusetts 02141

  Fax: 617-
  252-2211

  Attention:
  Charles R. Yoon

  	
   

  	
  Information Services Group, Inc.

  Four Stamford Plaza

  107 Elm Street

  Stamford, Ct 06902

  Fax: 203-517-3199

  Attention: Earl H. Doppelt

  
	
   

  With a copy to:

  Ropes & Gray
  LLP

  1211 Avenue of
  the Americas

  New York, NY
  10036

  Fax:
  212-596-9090

  Attention:
  Christopher C. Henry

  	
   

  	
   

  With a copy to:

  Simpson Thacher & Bartlett LLP

  425 Lexington Avenue

  New York, NY 10017

  Fax: 212-455-2502

  Attention: Edward
  J. H. Chung

  

 

5.                                       Distribution of Escrow
Property Upon Termination

This Escrow Agreement shall
be terminated automatically either (a) on the date on which all Escrow Property
has been distributed or (b) the earlier of (i) on the Final Release Date,
provided that there is no existing Outstanding Claims Amount and (ii) the first
date after the Final Release Date on which there is no existing Outstanding Claims
Amount.  The Escrow Agreement may also be
terminated at any time by the mutual written agreement of the Depositors.  Upon termination of this Escrow Agreement,
Escrow Property then held hereunder shall be distributed to Seller.

6.                                       Compensation

(a)                                  Depositors shall pay Escrow Agent an annual
fee of $3,500, payable upon execution of this Agreement and thereafter on each
anniversary date of this Agreement, provided that the annual fee shall be
waived so long a year, but shall be subject to pro-ration to the extent the
Escrow Property is only invested in the BNYDR for a portion of a given year.

(b)                                 Depositors shall pay all activity charges as
per Escrow Agent’s current fee schedule, which is attached as Exhibit 1.

(c)                                  Depositors shall be responsible for and shall
reimburse Escrow Agent upon demand for all reasonable and documented
out-of-pocket expenses which may include, but are not limited to, telephone;
facsimile; courier; copying; postage; supplies; expenses of foreign
depositaries.

(d)                                 Each of Seller and Buyer shall be solely
responsible for one-half of all amounts payable or reimbursable to the Escrow
Agent under this Section 6 or otherwise provided for in this Agreement.

 4
 

 

II.   TERMS
AND CONDITIONS:

1.                                       The duties, responsibilities and obligations
of Escrow Agent shall be limited to those expressly set forth herein and no
duties, responsibilities or obligations shall be inferred or implied.  Escrow Agent shall not be subject to, nor
required to comply with, any other agreement between or among any or all of the
Depositors or to which any Depositor is a party, even though reference thereto
may be made herein, or to comply with any direction or instruction (other than
those contained herein or delivered in accordance with this Escrow Agreement)
from any Depositor or any entity acting on its behalf.  Escrow Agent shall not be required to, and
shall not, expend or risk any of its own funds in the performance of any of its
duties hereunder.

2.                                       This Agreement is for the exclusive benefit
of the parties hereto and their respective successors hereunder, and shall not
be deemed to give, either express or implied, any legal or equitable right,
remedy, or claim to any other entity or person whatsoever.

3.                                       (a) 
Escrow Agent shall not be liable for any action taken or omitted or for
any loss or injury resulting from its actions or its performance or lack of
performance of its duties hereunder in the absence of bad faith, gross
negligence or willful misconduct on its part. 
In no event shall Escrow Agent be liable (i) for acting in accordance
with or relying upon any instruction, notice, demand, certificate or document
from the Depositors or (ii) for an amount in excess of the value of the Escrow
Property.

(b)  Escrow
Agent may consult legal counsel of its own choosing in the event of any dispute
or question as to the construction of this Escrow Agreement, or the Escrow
Agent’s duties hereunder, and the Escrow Agent will incur no liability and will
be fully protected with respect to any action taken or omitted in good faith in
accordance with the opinion and instructions of such counsel.  Notwithstanding anything to the contrary
herein, in no event shall Escrow Agent be entitled to reimbursement of the
expenses of such counsel with respect to any matter arising from Escrow Agent’s
bad faith, gross negligence or willful misconduct.

(c)  Escrow
Agent shall not incur any liability for not performing any act or fulfilling
any duty, obligation or responsibility hereunder by reason of any occurrence
beyond the control of Escrow Agent (including but not limited to any act or
provision of any present or future law or regulation or governmental authority,
any act of God or war, or the unavailability of the Federal Reserve Bank wire
or telex or other wire or communication facility).

(d)  If at any
time Escrow Agent is served with any judicial or administrative order,
judgment, decree, writ or other form of judicial or administrative process
which in any way affects the Escrow Property (including but not limited to
orders of attachment or garnishment or other forms of levies or injunctions or
stays relating to the transfer of Escrow Property), Escrow Agent is authorized
to comply therewith in any manner as it or its legal counsel of its own
choosing deems appropriate; and if Escrow Agent complies with any such judicial
or administrative order, judgment, decree, writ or other form of judicial or
administrative process, Escrow Agent shall not be liable to any of the parties
hereto or to any other person or entity even though such order, judgment,
decree, writ or 

 5
 

process may be subsequently modified or vacated or
otherwise determined to have been without legal force or effect.

4.                                       Unless otherwise specifically set forth
herein, Escrow Agent shall proceed as soon as practicable to collect any checks
or other collection items at any time deposited hereunder.  All such collections shall be subject to
Escrow Agent’s usual collection practices or terms regarding items received by
Escrow Agent for deposit or collection. 
Escrow Agent shall not be required, or have any duty, to notify anyone
of any payment or maturity under the terms of any instrument deposited
hereunder, nor to take any legal action to enforce payment of any check, note
or security deposited hereunder or to exercise any right or privilege which may
be afforded to the holder of any such security.

5.                                       Escrow Agent shall provide to Depositors
monthly statements identifying transactions, transfers or holdings of Escrow
Property and each such statement shall be deemed to be correct and final upon
receipt thereof by the Depositors unless Escrow Agent is notified in writing to
the contrary within thirty (30) business days of the date of such statement.

6.                                       Notices, instructions or other communications
shall be in writing and shall be
deemed to have been duly given when delivered personally, when sent by
confirmed cable, telecopy, telegram or facsimile, when sent by overnight
courier service or when mailed by certified or registered mail, return receipt
requested, with postage prepaid to the parties at the address set forth in the “Addresses” provision herein (or to such
other address as may be substituted therefor by written notification to Escrow
Agent or Depositors).  Escrow Agent is
authorized to comply with and rely upon any notices, instructions or other
communications believed by it to have been sent or given by Depositors or by a
person or persons authorized by Depositors. 
Whenever under the terms hereof the time for giving a notice or
performing an act falls upon a Saturday, Sunday, or banking holiday, such time
shall be extended to the next day on which Escrow Agent is open for business.

7.                                       Depositors, shall each severally be liable
for and shall reimburse and indemnify Escrow Agent and hold Escrow Agent
harmless from and against 50% of any and all claims, losses, liabilities,
costs, damages or expenses (including reasonable attorneys’ fees and expenses)
(collectively, “Losses”) that may be incurred by it as a result of its
involvement in any arbitration or litigation arising from the performance of
its duties hereunder, provided, however, that nothing contained herein shall
require Escrow Agent to be indemnified for Losses caused by its bad faith,
gross negligence or willful misconduct.

(a)  Depositors may remove Escrow Agent at any
time by giving to Escrow Agent thirty (30) calendar days’ prior notice in
writing signed by all Depositors.  Escrow
Agent may resign at any time by giving to Depositors thirty (30) calendar days’
prior written notice thereof.  Within ten
(10) calendar days after giving the foregoing notice of removal to Escrow Agent
or receiving the foregoing notice of resignation from Escrow Agent, all
Depositors shall jointly agree on and appoint a successor Escrow Agent.  If a successor Escrow Agent has not accepted
such appointment by the end of such 10-day period, Escrow Agent may apply to a
court of competent jurisdiction for the appointment of a successor Escrow Agent
or for other appropriate relief. 
One-half of the costs and expenses (including reasonable attorneys’ fees
and expenses) incurred by Escrow Agent in connection with such proceeding shall
be paid by each of the Depositors.

 6
 

 

(b)  Upon receipt of the identity of the successor
Escrow Agent, Escrow Agent shall either deliver the Escrow Property then held
hereunder to the successor Escrow Agent, less Escrow Agent’s fees, costs and
expenses or other obligations owed to Escrow Agent, or hold such Escrow
Property (or any portion thereof), pending distribution, until all such fees,
costs and expenses or other obligations are paid.

(c)  Upon delivery of the Escrow Property to
successor Escrow Agent, Escrow Agent shall have no further duties,
responsibilities or obligations hereunder.

8.                                       (a)  In
the event of any ambiguity or uncertainty hereunder or in any notice,
instruction or other communication received by Escrow Agent hereunder, Escrow
Agent may, in its sole discretion, refrain from taking any action other than
retain possession of the Escrow Property, unless Escrow Agent receives written
instructions, signed by all Depositors, or a final non-appelable order, decree
or judgment of a court of competent jurisdiction which eliminates such
ambiguity or uncertainty.

(b)  In the
event of any dispute between or conflicting claims by or among the Depositors
and/or any other person or entity with respect to any Escrow Property, Escrow
Agent shall be entitled, in its sole discretion, to refuse to comply with any
and all claims, demands or instructions with respect to such Escrow Property so
long as such dispute or conflict shall continue, and Escrow Agent shall not be
or become liable in any way to the Depositors for failure or refusal to comply
with such conflicting claims, demands or instructions.  Escrow Agent shall be entitled to refuse to act
until, in its sole discretion, either (i) such conflicting or adverse claims or
demands shall have been determined by a final order, judgment or decree of a
court of competent jurisdiction, which order, judgment or decree is not subject
to appeal, or settled by agreement between the conflicting parties as evidenced
in a writing satisfactory to Escrow Agent or (ii) Escrow Agent shall have
received security or an indemnity satisfactory to it sufficient to hold it
harmless from and against any and all Losses which it may incur by reason of so
acting.  Escrow Agent may, in addition,
elect, in its sole discretion, to commence an interpleader action or seek other
judicial relief or orders as it may deem, in its sole discretion, necessary.  The costs and expenses (including reasonable
attorneys’ fees and expenses) incurred in connection with such proceeding shall
be paid one-half by each of the Depositors.

9.                                       This Agreement shall be interpreted,
construed, enforced and administered in accordance with the internal
substantive laws (and not the choice of law rules) of the State of New
York.  Each party hereto hereby submits
to the personal jurisdiction of and each agrees that all proceedings relating
hereto shall be brought in courts located within the City and State of New
York.  Each party hereto hereby waives
the right to trial by jury and to assert counterclaims in any such
proceedings.  To the extent that in any
jurisdiction any party hereto may be entitled to claim, for itself or its
assets, immunity from suit, execution, attachment (whether before or after
judgment) or other legal process, each hereby irrevocably agrees not to claim,
and hereby waives, such immunity.  Each
party hereto waives personal service of process and consents to service of
process by certified or registered mail, return receipt requested, directed to
it at the address last specified for notices hereunder, and such service shall
be deemed completed ten (10) calendar days after the same is so mailed.

 7
 

10.                                 Except as otherwise permitted herein, this
Escrow Agreement may be modified only by a written amendment signed by all the
parties hereto, and no waiver of any provision hereof shall be effective unless
expressed in a writing signed by the party to be charged.

11.                                 The rights and remedies conferred upon the
parties hereto shall be cumulative, and the exercise or waiver of any such
right or remedy shall not preclude or inhibit the exercise of any additional
rights or remedies.  The waiver of any
right or remedy hereunder shall not preclude the subsequent exercise of such
right or remedy.

12.                                 Each Depositor and Escrow Agent hereby
represents and warrants (a) that this Escrow Agreement has been duly
authorized, executed and delivered on its behalf and constitutes its legal,
valid and binding obligation and (b) that the execution, delivery and
performance of this Escrow Agreement by such party does not and will not
violate any applicable law or regulation.

13.                                 The invalidity, illegality or
unenforceability of any provision of this Agreement shall in no way affect the
validity, legality or enforceability of any other provision; and if any
provision is held to be enforceable as a matter of law, the other provisions
shall not be affected thereby and shall remain in full force and effect.

14.                                 This Agreement shall constitute the entire
agreement of the parties with respect to the subject matter and supersedes all
prior oral or written agreements in regard thereto.

15.                                 The provisions of these Terms and Conditions
shall survive termination of this Escrow Agreement and/or the resignation or
removal of the Escrow Agent.

16.                                 No printed or other material in any language,
including prospectuses, notices, reports, and promotional material which
mentions “The Bank of New York” by name or the rights, powers, or duties of the
Escrow Agent under this Agreement shall be issued by any other parties hereto,
or on such party’s behalf, without the prior written consent of Escrow Agent.

17.                                 The headings contained in this Agreement are
for convenience of reference only and shall have no effect on the
interpretation or operation hereof.

18.                                 This Escrow Agreement may be executed by each
of the parties hereto in any number of counterparts, each of which counterpart,
when so executed and delivered, shall be deemed to be an original and all such
counterparts shall together constitute one and the same agreement.

19.                                 The Escrow Agent does not have any interest
in the Escrow Property deposited hereunder but is serving as escrow holder only
and having only possession thereof.  The
Depositors shall each pay or reimburse the Escrow Agent upon request for 50% of
any transfer taxes relating to the Escrow Property incurred in connection
herewith and shall indemnify and hold harmless the Escrow Agent for 50% of any
amounts that it is obligated to pay in the way of such taxes.  Any payments of income from this Escrow
Account shall be subject to withholding regulations then in force with respect
to United States taxes.  The parties
hereto will provide the Escrow Agent with appropriate W-9 forms for tax I.D.,
number certifications, or W-8 forms for non-resident alien certifications.  It is understood that the 

 8
 

Escrow
Agent shall be responsible for income reporting only with respect to income
earned on investment of funds which are a part of the Escrow Property and is
not responsible for any other reporting. 
It is expressly agreed and understood that the Escrow Property shall be
treated as a grantor trust of Buyer for tax purposes, provided, however, that
the Escrow Agent shall not distribute any amounts from the Escrow Fund except
as expressly provided in this Agreement. 
Accordingly, for tax purposes, the assets and all earnings on the assets
shall be considered owned by the Buyer and shall be subject to the claims of
the Buyer’s general creditors until distributed pursuant to the terms of this
Agreement, and shall be reported as such for all tax reporting purposes.  In particular, it is agreed that all interest
or other income earned on the Escrow Property shall be treated as earned by the
Buyer and shall be reported by the Escrow Agent to the Buyer as income of the
Buyer.  The Escrow Agent shall segregate
forty percent (40%) of all interest and other income earned on the Escrow
Property (the “Tax Escrow Earnings”) from the Escrow Fund, and shall disburse
such Tax Escrow Earnings to the Buyer (by delivery to an account designated by
the Buyer), promptly following the end of each calendar year during the term of
this Agreement, with a final disbursement of Tax Escrow Earnings to be made to
the Buyer on the Final Release Date.  No later than thirty (30) days
following the date on which the Buyer (or the consolidated group of which the
Buyer is a member) files its U.S. federal income tax return for the taxable
year which includes the Final Release Date, the Buyer shall pay to the Seller
(by delivery to an account designated by the Seller) an amount equal to the
product of: (i) the amount of Escrow Property distributed to the Seller deemed,
under applicable law, to be a payment of interest and (ii) 40%; provided, that in no instance shall
Buyer be obligated to pay to Seller under this Section 19 more than the total
Tax Escrow Earnings distributed to Buyer pursuant to this Section 19. This
paragraph and paragraph (9) shall survive notwithstanding any termination of
this Escrow Agreement or the resignation of the Escrow Agent.

 9

Exhibit A

IN WITNESS WHEREOF, each of the parties has caused this Escrow
Agreement to be executed by a duly authorized officer as of the day and year
first written above.

 

	
  MCP-TPI HOLDINGS, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE BANK OF NEW YORK, as Escrow Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

 

 

Escrow Agreement Signature Page

 

	
  INFORMATION SERVICES GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Earl H. Doppelt

  
	
   

  	
  Title:

  	
  Executive Vice President

  
	
   

  	
   

  	
  and General Counsel

  
				

 

 

 

 

Escrow Agreement Signature Page

 

Exhibit
1

Ropes  & Gray LLP

Client Escrow Account

Fee Schedule

April 17, 2007

 

Upon
appointment of The Bank of New York  (“BNY”)
as Escrow Agent, ____________ shall be responsible for the payment of the fees,
expenses and charges as set forth in this Fee Schedule.

GENERAL FEES

ACCEPTANCE
FEE — Waived

This
one time charge is payable at the time of the closing and includes the review
and execution of the agreement and all documents submitted in support thereof
and establishment of accounts.

ANNUAL
ADMINISTRATIVE FEE — Waived

This annual fee will cover the duties and
responsibilities related to account administration and servicing, which may
include maintenance of accounts on various systems, custody and securities
servicing, reporting, etc.

This annual fee will be waived if funds
held in escrow are invested in The Bank of New York Deposit Reserve for the
duration of the escrow account.

INVESTMENT COMPENSATION

With
respect to investments in money market mutual funds for which BNY provides
shareholder services BNY (or its
affiliates) may also receive and retain additional fees from the mutual
funds (or their affiliates) for shareholder services as set forth in the Authorization and Direction to BNY to Invest
Cash Balances in Money Market Mutual Funds.

BNY
will charge a $25.00 transaction fee for each purchase, sale, or redemption of
securities other than the aforementioned Money Market Mutual Funds.

DISBURSEMENT
FEE (CHECK OR WIRE) PER TRANSACTION

A
fee of $25.00 will be assessed for each disbursement.

 

COUNSEL
FEES

If
counsel is retained by BNY, a fee covering the fees and expenses of Counsel for
its services, including review of governing documents, communication with
members of the closing party (including representatives of the purchaser,
investment banker(s), attorney(s) and BNY), attendance at meetings and the
closing, and such other services as BNY may deem necessary. The Counsel fee
will be the actual amount of the fees and expenses charged by Counsel and is
payable at closing. Should closing not occur, you would still be responsible
for payment of Counsel fees and expenses.

MISCELLANEOUS
FEES

The
fees for performing extraordinary or other services not contemplated at the
time of the execution of the transaction or not specifically covered elsewhere
in this schedule will be commensurate with the service to be provided and will
be charged in BNY’s sole discretion. These extraordinary services may include,
but are not limited to: customized reporting and/or procedures, electronic
account access, etc. Counsel, accountants, special agents and others will be
charged at the actual amount of fees and expenses billed.

OUT-OF-POCKET
EXPENSES

Additional
out-of-pocket expenses may include, but are not limited to, telephone;
facsimile; courier; copying; postage; supplies; expenses of foreign
depositaries; and expenses of BNY’s representative(s) and Counsel for attending
special meetings. Fees and expenses of BNY’s representatives and Counsel will
be charged at the actual amount of fees and expenses charged.

TERMS AND DISCLOSURES

TERMS
OF PROPOSAL

Final
acceptance of the appointment as escrow agent under the escrow agreement is
subject to approval of authorized officers of BNY and full review and execution
of all documentation related hereto. Please note that if this transaction does
not close, you will be responsible for paying any expenses incurred, including
Counsel fees. We reserve the right to terminate this offer if we do not enter
into final written documents within three months from the date this document is
first transmitted to you. Fees may be subject to adjustment during the life of
the engagement.

MISCELLANEOUS

The
terms of this Fee Schedule shall govern the matters set forth herein and shall
not be superseded or modified by the terms of the escrow agreement. This fee
schedule shall be governed by the laws of the State of New York without reference
to laws governing conflicts. BNY and the undersigned agree to jurisdiction of
the federal and state courts located in the City of New York, State of New York

 

CUSTOMER
NOTICE REQUIRED BY THE USA PATRIOT ACT

To
help the US government fight the funding of terrorism and money laundering
activities, US Federal law requires all financial institutions to obtain,
verify, and record information that identifies each person (whether an
individual or organization) for which a relationship is established.

What
this means to you: When you establish a relationship with BNY, we will ask you
to provide certain information (and documents) that will help us to identify
you. We will ask for your organization’s name, physical address, tax
identification or other government registration number and other information
that will help us to identify you. We may also ask for a Certificate of
Incorporation or similar document or other pertinent identifying documentation
for your type of organization.

We
thank you for your assistance.

 

	
  Accepted By:

  	
   

  	
   

  	
   

  	
  For BNY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

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