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ASSET PURCHASE AGREEMENT  

 between  

 WESTERN POWER & EQUIPMENT, L.L.C.,  

 and  

 WESTERN POWER & EQUIPMENT CORP.  

 Dated as of November 1, 2000  

    This ASSET PURCHASE AGREEMENT (this "Agreement") is entered into as of the 1st day of November,
2000 by and between WESTERN POWER & EQUIPMENT, L.L.C., a Delaware limited liability company ("Purchaser") and WESTERN POWER & EQUIPMENT CORP., a Delaware corporation ("Seller" and, together with
Purchaser, the "Parties"). 

  R E C I T A L S         

    A.  Seller
owns all of the issued and outstanding capital stock of Western Power & Equipment Corp. ("Subsidiary"), an Oregon corporation, (the "Shares") which is
engaged in the business of selling and leasing construction equipment. 

    B.  Purchaser
desires to purchase from Seller and Seller desires to sell to Purchaser substantially all of the assets of Seller, including, without limitation, the
Shares, and Purchaser agrees to assume substantially all of the liabilities of Seller in accordance with the terms and conditions of this Agreement. 

    NOW,
THEREFORE, in consideration of the mutual covenants, representations, warranties and promises contained herein, the Parties hereby agree as follows: 

  ARTICLE 1
       DEFINITIONS         

    1.1 "Acquired Assets" has the meaning set forth in Section 2.2 below. 

    1.2 "Affiliate" has the meaning set forth in Rule 12b-2 of the regulations promulgated under the Securities Exchange
Act. 

    1.3 "Ancillary Agreements" means the Bill of Sale, the Assumption Agreement, the Purchase Price Promissory Note, the
Security Agreement and the Employment Agreements. 

    1.4 "Approval" means any approval, authorization, consent, qualification, or registration, or any waiver of any of the
foregoing, required to be obtained from, or any notice, statement or other communication required to be filed with or delivered to, any Person. 

    1.5 "Approval Cure Agreement" means one or more agreements described in Section 8.1 below. 

    1.6 "Assumed Liabilities" has the meaning set forth in Section 2.4 below. 

    1.7 "Assumption Agreement" has the meaning set forth in Section 11.2(a) below. 

    1.8 "Closing" has the meaning set forth in Article 4 below. 

    1.9 "Closing Date" has the meaning set forth in Article 4 below. 

    1.10  "Code" means the Internal Revenue Code of 1986, as amended. 

    1.11  "Employee Benefit Plan" means any (a) nonqualified deferred compensation or retirement plan or
arrangement, (b) qualified defined contribution retirement plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified defined benefit retirement plan or arrangement which is an
Employee Pension Benefit Plan (including any Multiemployer Plan), or (d) Employee Welfare Benefit Plan. 

    1.12  "Employee Pension Benefit Plan" has the meaning set forth in ERISA Sec. 3(2). 

    1.13  "Employee Welfare Benefit Plan" has the meaning set forth in ERISA Sec. 3(1). 

    1.14  "Employment Agreement" has the meaning set forth in Section 9.10 below. 

    1.15  "ERISA" means the Employee Retirement Income Security Act of 1974, as amended. 

    1.16  "Excluded Assets" has the meaning set forth in Section 2.3 below. 

    1.17  "Excluded Liabilities" has the meaning set forth in Section 2.5 below. 

    1.18  "FIRPTA Certificate" means a certificate executed by an appropriate officer of Seller stating that
Seller is not a "foreign person" for purposes of Section 1445 of the Code and providing such other information that may be required to avoid the withholding of tax under Section 1445. 

    1.19  "GAAP" means United States generally accepted accounting principles as in effect from time to time. 

    1.20  "Governmental Authority" means any government or any agency, bureau, board, commission, court,
department, official, political subdivision, tribunal or other instrumentality of any government, whether federal, state or local, domestic or foreign. 

    1.21  "Income Tax" or "Income Taxes" means any federal,
state, local or foreign income tax, franchise tax, gross income tax or similar income tax, including any interest, addition or penalty thereon, whether disputed or not, but excluding any Transfer
Taxes. 

    1.22  "Intellectual Property" means (a) all inventions (whether patentable or unpatentable and whether or
not reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part, revisions,
extensions, and reexaminations thereof, (b) all trademarks, service marks, trade dress, logos, and trade names (including, without limitation, the name "Western Power & Equipment"), together with all
translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith, (c) all
copyrightable works, all copyrights, and all applications, registrations, and renewals in connection therewith, (d) all mask works and all applications, registrations, and renewals in connection
therewith, (e) all trade secrets and confidential business information (including, research, know-how, formulae, compositions, manufacturing and production processes and techniques, technical data,
designs, drawings, specifications, customer and supplier lists, mailing lists, pricing and cost information, and business and marketing plans and proposals), and (f) all computer software (including
data and related documentation). 

    1.23  "Law" means any federal, state, local, municipal, foreign, international, multinational, or other
administrative order, constitution, law, ordinance, principle of common law, regulation, statute or treaty. 

    1.24  "Liability" means any liability, whether known or unknown, asserted or unasserted, absolute or
contingent, accrued or unaccrued, liquidated or unliquidated, and due or to become due, of any nature whatsoever, and any costs, expenses or damages. 

    1.25  "Lien" means any charge, claim, encumbrance, lien, option, pledge, security interest or right of
first refusal, including without limitation any (a) mechanics, materialmen or similar lien relating to repairs or improvements to real or personal property, (b) lien for Taxes and (c) lien securing
rental payments under any lease agreement. 

    1.26  "Material Adverse Effect" means a material adverse effect on the assets, business, condition
(financial or otherwise), operations or prospects of Seller or Subsidiary. 

    1.27  "Merger Agreement" has the meaning set forth in Section 10.9 below. 

    1.28  "Mergers" has the meaning set forth in Section 9.7. 

    1.29  "Parties" has the meaning set forth in the preface above. 

    1.30  "Person" means an individual, a partnership, a limited liability company, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated organization, or a governmental entity (or any department, agency, or political subdivision thereof). 

    1.31  "Prohibited Transaction" has the meaning set forth in ERISA Sec. 406 and Code Sec. 4975. 

    1.32  "Purchase Price" has the meaning set forth in Section 3.1 below. 

    1.33  "Purchaser" has the meaning set forth in the preface above. 

    1.34  "Securities Act" means the Securities Act of 1933, as amended. 

    1.35  "Securities Exchange Act" means the Securities Exchange Act of 1934, as amended. 

    1.36  "Seller" has the meaning set forth in the preface above. 

    1.37  "Shares" has the meaning set forth in the recitals above. 

    1.38  "Subsidiary" has the meaning set forth in the recitals above. 

    1.39  "Tax" or "Taxes" means any federal, state, local,
or foreign income, gross receipts, branch profits, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, ad valorem, excise, customs duties, capital stock,
franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, business, occupational, transfer, registration, value added,
alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not, imposed, assessed or collected by or under
the authority of any Governmental Authority or payable pursuant to any tax-sharing agreement or any other contract relating to the sharing or payment of any such tax. 

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

    1.41  "Threatened" means a claim, proceeding, dispute, action, or other matter in respect of which any
demand or statement has been made (orally or in writing) or any notice has been given (orally or in writing), or if any other event has occurred or any other circumstances exist, that would lead a
prudent Person to conclude that such a claim, proceeding, dispute, action, or other matter is likely to be asserted, commenced, taken, or otherwise pursued in the future. 

    1.42  "Transfer Taxes" or "Transfer Tax" means all
excise, sales, use, transfer, real estate transfer, value added, documentary, stamp registration and similar Taxes and fees (but not Income Taxes), together with any interest, additions, or penalties,
resulting directly from the sale and transfer by Seller to Purchaser of the Acquired Assets and Assumed Liabilities. 

  ARTICLE 2
       SALE OF ASSETS         

    2.1  Purchase and Sale of Assets.  On the terms and conditions set forth in this Agreement, at the
Closing, Seller shall sell, transfer, assign, convey, and deliver to Purchaser, and Purchaser shall purchase and acquire from Seller, all of the right, title and interest of Seller in and to the
Acquired Assets. 

    2.2  Definition of Acquired Assets.  The Acquired Assets consist of all of Seller's right, title and
interest in, to and under all of the assets, capital stock, cash, properties, interests, contracts and claims of every kind and description, wherever located, owned, used or held by Seller, real,
personal or mixed, tangible or intangible, with such changes, deletions or additions thereto as may occur from the date of this Agreement to the Closing and consistent with the terms and conditions of
this Agreement, including but not limited to Seller's right, title and interest in and to the Shares, but in all cases excluding any Excluded Assets (collectively, the "Acquired Assets"). 

    2.3  Excluded Assets.  The assets of Seller being excluded from the Assets sold, conveyed and transferred
to Purchaser (collectively, the "Excluded Assets") are the following: 

    (a) the
corporate charter, qualifications to conduct business as a foreign corporation, taxpayer identification numbers, seals, minute books, stock transfer books,
blank stock certificates, and other documents relating to the organization, maintenance, and existence of Seller as a corporation; 

    (b) all
portions of all books, records, ledgers, files, documents and correspondence which relate solely or in part to Excluded Assets or Excluded Liabilities; 

    (c) all of Seller's right, title and interest in, to and under this Agreement, the Ancillary Agreements and all related documents; 

    (d) all
claims, causes of action, counterclaims, and proceeds of insurance which relate to Excluded Liabilities or Excluded Assets, in each case as listed on Schedule
2.3(d); and 

    (e) an
amount of cash, if any, equal to the difference between (i) $450,000, and (ii) (A) the amount of Seller's costs and expenses incurred with respect to this
Agreement, the Ancillary Agreements, the Merger Agreement and all exhibits and schedules attached hereto and thereto, and the transactions contemplated hereby and thereby, plus (B) the amount of
Purchaser's fees and expenses which are payable to Kaye, Scholer, Fierman, Hays & Handler, LLP ("KS"); provided, however, that for purposes of this calculation, the amount payable to KS may not exceed
$75,000. 

    2.4  Assumption of Certain Liabilities.  At the Closing, Purchaser shall assume, pay, perform, defend and
discharge, if and when due, to the extent not paid, performed, defended or discharged on or prior to the Closing Date, all of Seller's liabilities incurred on or prior to the Closing Date, other than
Excluded Liabilities (collectively, the "Assumed Liabilities"). 

    2.5  Excluded Liabilities.  Purchaser shall not be obligated to assume, and Seller agrees and
acknowledges that Purchaser is not assuming, "Excluded Liabilities," defined to mean Liabilities, obligations and expenses of Seller relating to obligations and Liabilities of Seller under Article 12
of this Agreement. 

  ARTICLE 3
       CONSIDERATION         

    3.1  Purchase Price and Payment.  The aggregate consideration for the transfer of the Acquired Assets
hereunder shall be equal to $4,100,000 (the "Purchase Price"). At the Closing, Purchaser shall pay the Purchase Price by executing a promissory note substantially in the form of Exhibit A hereto (the
"Purchase Price Promissory Note") and causing Subsidiary to execute and deliver to Seller a security agreement securing the Purchase Price Promissory Note substantially in the form of Exhibit B hereto
(the "Security Agreement"). 

    3.2  Allocation of Purchase Price.  The aggregate amount of the Purchase Price and any Assumed
Liabilities that are properly included in Purchaser's tax basis for the Acquired Assets shall be allocated as determined and agreed upon by the Parties in accordance with the requirements of Section
1060 of the Code. To facilitate such agreement, Purchaser shall provide a schedule of allocations to Seller within 120 days following the Closing Date and deliver same to Seller, whose approval shall
not be unreasonably delayed or withheld, absent manifest error. Such allocations shall be used by the Parties in preparing and filing all relevant Tax Returns, and the Parties agree to cooperate with
each other in good faith in preparing any such Tax Returns, including IRS Form 8594 (or any successor form) and any required exhibits thereto (or other forms required pursuant to Section 1060 of the
Code, or other applicable tax laws); provided, however, that in determining the adjusted basis of Purchaser with respect to any of the Acquired Assets, Purchaser may increase the amount allocated to
any of the
Acquired Assets to the extent permissible under applicable tax laws for Purchaser's additional costs and expenses that are neither actually received nor treated as received by Seller pursuant to such
tax laws. 

  ARTICLE 4
       CLOSING         

    4.1  Closing.  The consummation of the transactions contemplated by this Agreement (the
"Closing") shall take place at the offices of Mintz & Fraade, P.C. within [five] days of the satisfaction or waiver of all
conditions precedent of Purchaser and Seller, as set forth in Articles 9 and 10, respectively, or at such other time, date or place as Purchaser and Seller mutually may agree (the 

"Closing Date"). The parties intend that the Closing will occur simultaneously with the closing of the Mergers. 

    4.2  Delivery and Payment.  On the Closing Date, Purchaser and Seller shall deliver to each other such
documents as are required pursuant to Articles 9 and 10 hereof, including delivery by Seller of all instruments and certificates necessary to transfer to Purchaser all right, title and interest in and
to the Acquired Assets, including, without limitation, the Shares, and Purchaser shall deliver to Seller the Purchase Price in the manner set forth in Section 3.1. 

  ARTICLE 5
       REPRESENTATIONS AND WARRANTIES OF SELLER         

    Seller represents and warrants to Purchaser as of the date of this Agreement and as of the Closing Date as follows: 

    5.1  Organization of Seller.  Seller is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Delaware and Subsidiary is a corporation duly organized, validly existing, and in good standing under the laws of the State of Oregon. 

    5.2  Authority of Seller.  Seller has full corporate power and authority to execute, deliver, and perform
this Agreement and the Ancillary Agreements to which it is a party and has taken all corporate action
required by Law and its organizational documents to authorize the execution and delivery of this Agreement and the Ancillary Agreements to which it is a party and the consummation of the transactions
contemplated by this Agreement and the Ancillary Agreements, subject to obtaining approval of the shareholders of Seller. This Agreement and the Ancillary Agreements to which Seller is a party and all
instruments and documents required to be executed and delivered by Seller pursuant to this Agreement and the Ancillary Agreements and the consummation by Seller of the transactions contemplated by
this Agreement and the Ancillary Agreements have been duly and validly authorized by the board of directors of Seller, and, except for Seller obtaining approval of its stockholders, no other corporate
proceedings on the part of Seller or Subsidiary are necessary to authorize this Agreement or the Ancillary Agreements or to consummate the transactions contemplated hereby or thereby. Each of this
Agreement and the Ancillary Agreements to which Seller is a party constitutes a valid and binding agreement of Seller enforceable against Seller in accordance with its terms, subject to Seller
obtaining approval of its stockholders (except as the enforceability thereof may be limited by bankruptcy, bank moratorium or similar laws affecting creditors' rights generally and laws restricting
the availability of equitable remedies and may be subject to general principles of equity whether or not such enforceability is considered in a proceeding at Law or in equity). 

    5.3  Capitalization.  Seller is the lawful record and beneficial owner of the Shares and owns the Shares
free and clear of all Liens. Upon delivery of the Shares, Purchaser will acquire the record, beneficial and legal title to the Shares, free and clear of all Liens. Except as set forth on Schedule 5.3,
no legend or other reference to any purported Lien appears on any certificate representing the Shares. Except for the Shares, as of the Closing, Subsidiary shall not have outstanding any capital stock
or securities convertible or exchangeable for any shares of its capital stock, nor shall it have outstanding any rights or options to subscribe for or to purchase its capital stock or any stock or
securities convertible into or exchangeable for its capital stock or any stock appreciation rights or phantom stock plans. There are no statutory or contractual stockholders' preemptive rights or
rights of refusal with respect to the sale or issuance of Subsidiary's capital stock. 

    5.4  Absence of Conflicts.  The execution and delivery by Seller of this Agreement and the Ancillary
Agreements to which it is a party and all other instruments and documents required to be executed by Seller pursuant to this Agreement and the Ancillary Agreements, the transfer of the Acquired Assets
and assumption of the Assumed Liabilities, and the consummation by Seller of the transactions contemplated by this Agreement and the Ancillary Agreements do not and shall not conflict with or result
in a breach of any provision of Seller's certificate of incorporation or bylaws. Seller has no knowledge that any of the following will cause Seller or Subsidiary to violate or 

contravene any provision of Law or any rule or regulation of any Governmental Authority: the execution and delivery by Seller of this Agreement and the Ancillary Agreements to which Seller is a party;
the execution and delivery by Seller of all other instruments and documents required to be executed by Seller and/or Subsidiary pursuant to this Agreement and the Ancillary Agreements; the transfer of
the Acquired Assets, including, without limitation, the Shares; and the consummation by the Seller of the transactions contemplated by this Agreement and the Ancillary Agreements. 

    5.5  Title to Assets; Condition of Assets.  Except as set forth in Schedule 5.5, Seller has good and
marketable title to each of the Acquired Assets owned by it, and the Acquired Assets which are owned
by Seller are owned free and clear of all Liens, claims, and encumbrances, except for Liens for current Taxes not yet due or payable. 

    5.6  No Finder or Broker.  None of E-Mobile, Inc., E-Mobile Holdings, Inc. or any party acting on behalf
of either of the foregoing has paid or has become obligated to pay any fee or commission to any broker, finder or intermediary, for or on account of the transactions contemplated by this Agreement. 

    5.7  Accuracy of Representations and Warranties.  All representations and warranties of Seller set forth
in this Agreement and in any agreement, certificate or other document required to be delivered or given to Purchaser by Seller pursuant to this Agreement or referred to in this Agreement or in any
such other agreement, certificate or document will be true and correct at the Closing Date with the same force and effect as if made on that date. 

    5.8  Disclosure.  No representation or warranty contained in this Agreement and none of the information
furnished by Seller set forth herein, in the exhibits or schedules hereto or in any other document required to be delivered by Seller or Subsidiary to Purchaser, or its accountants, counsel or other
advisers pursuant to this Agreement or referred to in this Agreement or in any such other document, contains any untrue statement of a material fact or omits to state a material fact necessary to make
the statements herein or therein not misleading. 

  ARTICLE 6
       REPRESENTATIONS AND WARRANTIES OF PURCHASER         

    Purchaser represents and warrants to Seller as of the date of this Agreement and as of the Closing Date as follows: 

    6.1  Organization of Purchaser.  Purchaser is a limited liability company duly organized, validly
existing, and in good standing under the laws of the State of Delaware, with all requisite power and authority to carry on its business. 

    6.2  Authority of Purchaser.  Purchaser has full power and authority to execute, deliver, and perform
this Agreement and the Ancillary Agreements to which Purchaser is a party and has taken all action required by Law and its organizational documents to authorize the execution and delivery of this
Agreement and the Ancillary Agreements to which Purchaser is a party and the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements. This Agreement and the
Ancillary Agreements to which Purchaser is a party and all instruments and documents required to be executed and delivered by Purchaser pursuant to this Agreement and the Ancillary Agreements to which
Purchaser is a party, and the consummation by Purchaser of the transactions contemplated by this Agreement and the Ancillary Agreements to which Purchaser is a party, have been duly and validly
authorized, executed, and delivered by Purchaser, and each constitutes a valid and binding obligation of Purchaser enforceable in accordance with their terms (except as the enforceability thereof may
be limited by bankruptcy, bank moratorium or similar laws affecting creditors' rights generally and laws restricting the availability of equitable remedies and may be subject to general principles of
equity whether or not such enforceability is considered in a proceeding at Law or in equity). 

 

    6.3  Absence of Conflicts.  The execution and delivery by Purchaser of this Agreement and the Ancillary
Agreements to which Purchaser is a party and all other instruments and documents required to be executed by Purchaser pursuant to this Agreement and the Ancillary Agreements to which Purchaser is a
party, the acquisition of the Acquired Assets and assumption of the Assumed Liabilities, and the consummation by Purchaser of the transactions contemplated by this Agreement and the Ancillary
Agreements to which Purchaser is a party (a) do not and will not conflict with or result in a breach of any provision of Purchaser's certificate of formation or operating agreement, (b) do not and
will not conflict with or result in a breach of contract to which Purchaser is a party or by which its assets are bound, (c) do not result in a breach of and will not result in any Prohibited
Transaction nor cause Purchaser to violate or contravene any provision of Law, any governmental rule or regulation or any order, writ, judgment, injunction, decree, determination or award, and (d)
will not require any Approval on the part of Purchaser. 

    6.4  Litigation and Administrative Proceedings.  There are no material legal, judicial, administrative,
or arbitration actions or proceedings filed, or charges or other actions, proceedings, or governmental investigations pending or, to the knowledge of Purchaser, Threatened against Purchaser which, if
adversely determined, would materially and adversely affect the business or financial condition of Purchaser or which seeks to enjoin or obtain damages with respect to the consummation of the
transactions contemplated by this Agreement. 

    6.5  No Finder or Broker.  Neither Purchaser nor any party acting on Purchaser's behalf has paid or has
become obligated to pay any fee or commission to any broker, finder or intermediary for or on account of the transactions contemplated by this Agreement. 

    6.6  Accuracy of Representations and Warranties.  All representations and warranties of Purchaser set
forth in this Agreement and in any agreement, certificate or other document required to be delivered or given to Seller by Purchaser pursuant to this Agreement or referred to in this Agreement or in
any such other agreement, certificate or document will be true and correct at the Closing Date with the same force and effect as if made on that date. 

    6.7  Disclosure.  No representation or warranty contained in this Agreement and none of the information
furnished by Purchaser set forth herein, in the exhibits or schedules hereto or in any other document required to be delivered by Purchaser to Seller, or its accountants, counsel or other advisers
pursuant to this Agreement or referred to in this Agreement or in any such other document, contains any untrue statement of a material fact or omits to state a material fact necessary to make the
statements herein or therein not misleading. 

  ARTICLE 7
       COVENANTS OF SELLER         

    Seller covenants with Purchaser as follows: 

    7.1  Change of Name.  Seller agrees from and after the Closing Date, to cease any and all use of any of
the Seller's and Subsidiary's Intellectual Property, and Seller will, on the Closing Date, amend its corporate charter to change its corporate name to one not including the words "Western Power &
Equipment" or any element or portion thereof, or any other confusingly similar name. 

    7.2  Transfer Taxes.  All Transfer Taxes shall be borne by Seller when due, and Seller shall file all
necessary Tax Returns and other documentation with respect to all such Transfer Taxes and shall pay all expenses in connection therewith. 

    7.3  Further Assurances.  Effective upon the Closing, Seller hereby authorizes Purchaser, and its
permitted successors and assigns, in the name of Purchaser, or in the name of Seller, on behalf of, and for the benefit of, Purchaser, to collect all accounts receivable included in the Acquired
Assets and other items being transferred, conveyed and assigned to Purchaser as part of, the Acquired Assets, to endorse, without recourse, checks, notes and other instruments in the name of Seller
that constitute Acquired Assets, to institute and prosecute, in the name of Seller or otherwise, all proceedings which 

Purchaser may deem proper in order to collect, assert or enforce any claim, right or title of any kind in or to the Acquired Assets and to defend, subject to Article 12 below, legal proceedings
relating thereto. Seller further agrees that Purchaser shall retain for its own account any amounts collected pursuant to the foregoing authorization, and Seller shall promptly transfer and deliver to
Purchaser any cash or other property received by Seller after the Closing Date in respect of any accounts receivable included in the Acquired Assets, if any. Seller further agrees to notify,
immediately after the Closing, all financial institutions at which it conducts business that Purchaser has acquired the Acquired Assets and that such financial institutions shall deliver to Purchaser
all monies collected and to be collected by such institutions relating to the Acquired Assets from and after the Closing Date. 

    7.4  Books; Records; Access.  At the Closing, Seller shall deliver to Purchaser all the Books and Records
of Seller and Subsidiary relating to the Acquired Assets. Until the sixth anniversary of the Closing Date, Purchaser and Seller agree to retain all Books and Records pertaining to the Acquired Assets
and Subsidiary in existence on the Closing Date and to make the same available after the Closing Date for inspection and copying by the other or its agents at such Party's expense, upon reasonable
request and upon reasonable notice. 

    7.5  Competition and Solicitation.  

    (a) In
consideration of Purchaser's obligations hereunder, for a period of five years from the Closing Date, each of Seller and its Affiliates shall not anywhere in the
United States, in any capacity, whether for its own account or for any other person or organization, directly or indirectly, with or without compensation, (i) own, operate, manage, or control, or (ii)
serve as a partner, agent, consultant, advisor or developer or in any similar capacity to or (iii) have any financial interest in, or aid or assist anyone else in the conduct of, any person or
enterprise which competes with any product line of or service offered by Subsidiary at the time of the Closing, provided, however, that Seller and its Affiliates shall be permitted to have an
ownership interest in a publicly-held corporation, which does not exceed two percent (2%) of the issued and outstanding shares of such publicly-held corporation. 

    (b) For
a period of five years from the Closing Date, none of Seller or any of its Affiliates shall offer any product or service which is competitive with the products
or services offered by Seller or Subsidiary prior to the Closing. 

    (c) For
a period of five years from the Closing Date, none of Seller or any of its Affiliates shall, directly or indirectly, call upon, solicit, divert, take away or
attempt to solicit any employee of Purchaser or Subsidiary with a view to inducing or encouraging such employee to leave the employ of Purchaser or Subsidiary. 

    (d) Seller
acknowledges that the provisions of this Section 7.6 are reasonable, fair and equitable in scope, term and duration, are necessary to protect the legitimate
business interests of Purchaser, and are necessary for the protection of Purchaser and that Purchaser will be irrevocably damaged if such covenants are not specifically enforced. Accordingly, Seller
agrees that it will not challenge the enforceability of this Section or any provision hereof nor will it raise any equitable defenses to such enforcement and that, in addition to any other relief to
which Purchaser may be entitled in the form of actual or punitive damages, Purchaser shall be entitled to seek and obtain injunctive relief from a court of competent jurisdiction for the purpose of
restraining Seller from any actual or Threatened breach of such covenants. To the extent that a court finds that any provision hereof is unenforceable, such court shall seek to enforce the intention
of the Parties as set forth herein to the greatest extent allowable by Law. 

    7.6  Shareholder Approval.  Seller shall take all actions necessary to obtain shareholder approval of the
transactions contemplated by this Agreement in accordance with Delaware General Corporation Law, Oregon Corporation Law, the rules and regulations of the National Association of Securities Dealers,
all federal and state securities laws and all other applicable laws. 

  ARTICLE 8
       MUTUAL COVENANTS         

    8.1  Best Efforts.  Purchaser and Seller each shall use their best efforts to perform or satisfy each
covenant or condition to be performed or satisfied by each of them before and after the Closing, including without limitation obtaining the Approvals listed on Schedule 9.4. If any of the Approvals
listed on Schedule 9.4 is not obtained prior to the Closing Date, at Purchaser's option, Purchaser and Seller shall enter into one or more agreements in form and substance reasonably satisfactory to
each Party (such as service agreements, sublease agreements, or independent contractor agreements; any one or more of the foregoing, an "Approval Cure Agreement") which will permit the transactions
contemplated hereby to be consummated and pursuant to which Purchaser will have the ability to operate Subsidiary's business on terms that are no more burdensome or costly to Purchaser or Seller than
the terms which would have existed had such Approvals been obtained. To the extent necessary to effectuate the foregoing, Seller shall agree to act as agent for, and to act for the account of,
Purchaser. In any such case, Purchaser and Seller shall continue, subsequent to the Closing Date, to use their best efforts to obtain any such Approvals which have not been obtained prior to the
Closing Date. Notwithstanding the foregoing, none of Purchaser or Seller shall be obligated to enter into any agreement or take any action or refrain from taking any action which would result in any
material breach of any agreement to which Purchaser or Seller is a party, or by which its assets are bound or would result in a violation of any Law, regulation, order, permit, or similar requirement
of any Governmental Authority. 

    8.2  Governmental Filings.  Purchaser and Seller shall, and Seller shall cause Subsidiary to, cooperate
with each other in filing any necessary applications, reports, government novations, assignments or other documents with any governmental authority having jurisdiction with respect to the transactions
contemplated by this Agreement and in seeking necessary consultation with and favorable action by any such authority, in all cases, at Purchaser's expense. For purposes of this Section 8.2, "necessary
applications" includes any document which must be filed in order either to transfer from Seller to Purchaser a license, permit, or governmental authorization necessary to operate Subsidiary's business
or to apply for and successfully prosecute an application for a new license, permit or governmental authorization in the name of Purchaser. 

    8.3  Delivery of Documents.  The Parties will execute and deliver all documents required to be delivered
pursuant to Sections 11.1 and 11.2 below. 

    8.4  Notice of Developments and Updates.  Each Party will give prompt written notice to the other Party
of any act, event or occurrence that may cause or constitute a breach of any of its own representations and warranties in Article 5 and Article 6 above. Each Party shall have the right to correct or
supplement the Schedules attached hereto to disclose matters that were not required to be disclosed as of the date of this Agreement and which arose after the date of this Agreement other than as a
result of a breach by the disclosing party of any representation, warranty, covenant or obligation under this Agreement; provided, however, any correction or supplement that relates to a matter which,
if not corrected, would have caused the representations and warranties in Article 5 or Article 6 not to be
true, shall be subject to the other Party's prior written consent (and, otherwise, such consent is not required). 

    8.5  Cooperation After Closing.  After the Closing Date, Purchaser and Seller shall execute, acknowledge,
and deliver, or cause to be executed, acknowledged, and delivered, any and all further instruments as may be necessary or expedient to consummate the transactions provided in this Agreement. 

    8.6  No Public Announcement.  None of the Parties hereto shall without the approval of the other Party
(which may not be unreasonably withheld), and Seller shall not permit Subsidiary without Purchaser's approval (which may not be unreasonably withheld) to, make any press release or other public
announcement or communicate with any customer, competitor or supplier of Seller or Subsidiary concerning the transactions contemplated by this Agreement, except as and to the extent that such 

Party shall determine is required by Law (which determination shall be made by such Party based upon the advice of its counsel), in which case the other Party shall be advised and the Parties shall
use their best efforts to cause a mutually agreeable release or announcement to be issued. 

    8.7  Successor Employee.  Seller and Purchaser agree that pursuant to the "Alternate Procedure" provided
in Section 5 of Revenue Procedure 96-60, 1996-2 C.B. 399, with respect to preparing, filing and furnishing Internal Revenue Service Forms W-2, W-3, W-4, 941 and W-5, Seller and Purchaser shall report
using the "Alternate Procedure" as set forth therein. 

    8.8  Confidentiality.  Subject to compliance by each Party with federal securities laws, from and after
the date of this Agreement, Purchaser and Seller shall, and Seller shall cause Subsidiary to, maintain in confidence, and shall cause their respective directors, officers, employees, agents, advisors
and Affiliates to maintain in confidence, any written, oral or other information obtained in confidence from another Party or Subsidiary in connection with this Agreement or the transactions
contemplated hereby. If the transactions contemplated hereby are not consummated, each Party shall, and Seller shall cause Subsidiary to, return or destroy as much of such written information as the
other Party may reasonably request. 

    8.9  Registrations; Consents; Filings.  Purchaser and Seller shall, and Seller shall cause Subsidiary to,
cooperate and use their respective best efforts to make all registrations, filings and applications, to give all notices and to obtain the Approvals set forth on Schedule 9.4 or any other governmental
consents, transfers, approvals, orders, qualifications and waivers necessary for the consummation of the transactions contemplated hereby, except that none of Seller, Purchaser or Subsidiary shall be
required to incur any significant current or future expense or liability or to consent to any modification of the terms of any contract which, taking into account the nature of Purchaser, Seller,
Subsidiary and Subsidiary's business, is significant. 

    8.10  Employee Benefits.  

    (a) Effective
as of the Closing Date, Purchaser and Seller shall take all actions necessary for Purchaser to assume the sponsorship of any Employee Benefit Plans
maintained by Seller that were qualified within the meaning of Section 401(a) of the Code and in which any employees of Seller or Subsidiary participated as of such Closing Date. Seller shall have no
further responsibility with respect to any such Employee Benefit Plan following the Closing Date. 

    (b) Purchaser
shall establish or provide Employee Welfare Benefit Plans for the employees of Seller and Subsidiary that it employs on or after the Closing Date which
are comparable in the aggregate to those covering such employees on the Closing Date. To the extent practicable, Purchaser may satisfy such obligation by assuming any such Employee Welfare Benefit
Plan maintained by Seller prior to the Closing Date. 

  ARTICLE 9
       CONDITIONS PRECEDENT TO PURCHASER'S OBLIGATIONS         

    The obligation of Purchaser to purchase the Acquired Assets, assume the Assumed Liabilities, and to carry out its other obligations under this Agreement and
the Ancillary Agreements shall be subject to the fulfillment of the following express conditions precedent on the Closing Date, unless waived in writing by Purchaser or as otherwise provided herein: 

    9.1  Representations and Warranties.  The representations and warranties of Seller made in this Agreement
shall be true and correct in all material respects as of the Closing Date with the same force and effect as though such representations were made on and as of the Closing Date. 

    9.2  Compliance with Agreement.  All the terms, covenants and conditions of this Agreement to be complied
with and performed by Seller on or before the Closing Date shall have been duly complied with or performed. 

    9.3  Absence of Litigation.  No action, suit or proceeding shall have been instituted and remain pending
before a court or other governmental body by any applicable government or agency thereof or any person to restrain or prohibit the consummation of the transactions contemplated by this Agreement. 

    9.4  Approvals.  Seller, Subsidiary or Purchaser shall have obtained the Approvals listed on Schedule 9.4
or the Parties shall have entered into an Approval Cure Agreement with respect to any Approvals not obtained. 

    9.5  Officer's Certificate.  Seller shall have delivered to Purchaser a certificate of its President and
Secretary to the effect that each of the conditions specified above in Sections 9.1, 9.2, 9.3 and 9.4 are satisfied in all respects. 

    9.6  Instruments of Transfer.  Seller shall have delivered to Purchaser: 

    (a) executed
Ancillary Agreements without any material changes to the forms attached as Exhibits to this Agreement; 

    (b) all
documents described in Section 11.1 below; and 

    (c) such
other instruments or documents as may be reasonably requested by Purchaser or Purchaser's counsel to fully and effectively convey the Acquired Assets to
Purchaser. 

    9.7  Merger.  The mergers contemplated by the Agreement and Plan of Reorganization and Merger by and
among Seller, E-Mobile, Inc., and E-Mobile Holdings, Inc. dated as of November 1, 2000 (the "Mergers") shall be consummated simultaneously with the Closing. 

    9.8  No Material Adverse Effect.  Since June 30, 2000, none of Seller, Subsidiary or Subsidiary's
business shall have suffered a Material Adverse Effect and the Acquired Assets shall not have been lost, damaged or otherwise materially impaired. 

    9.9  No Liens.  There shall be no Lien upon, or with respect to, the Acquired Assets which was created
pursuant to the Merger Agreement or pursuant to any document or agreement executed in connection with the Merger Agreement. 

    9.10  Employment Agreements.  Purchaser shall have entered into Employment Agreements to be effective
upon the Closing with the persons listed on Schedule 9.10 substantially upon the terms of the Employment Agreement attached hereto as Exhibit 9.10 (the "Employment Agreements"). 

  ARTICLE 10
       CONDITIONS PRECEDENT TO SELLER'S OBLIGATIONS         

    The obligations of Seller to transfer and deliver to Purchaser all of Seller's rights, title, and interest in and to the Acquired Assets and to carry out its
other obligations under this Agreement and the Ancillary Agreements shall be subject to the fulfillment of the following express conditions precedent on the Closing Date, unless waived in writing by
Seller: 

    10.1  Representations and Warranties.  The representations and warranties of Purchaser made in this
Agreement shall be true and correct in all material respects as of the Closing Date with the same force and effect as though such representations and warranties were made on and as of the Closing
Date. 

    10.2  Compliance with Agreement.  All the terms, covenants, and conditions of this Agreement to be
complied with and performed by Purchaser on or before the Closing Date shall have been duly complied with or performed. 

    10.3  Approvals.  Seller, Subsidiary or Purchaser shall have obtained the Approvals listed on Schedule
9.4 or the Parties shall have entered into an Approval Cure Agreement with respect to any Approvals not obtained. 

    10.4  Absence of Litigation.  To Purchaser's knowledge, no action or proceeding shall have been
instituted and remain pending before a court or other applicable governmental body or agency thereof or any person to restrain or prohibit the consummation of the transactions contemplated by this
Agreement. 

    10.5  Purchase Price.  Purchaser shall have delivered to Seller the Purchase Price Promissory Note and
the Security Agreement. 

    10.6  Officer's Certificate.  Purchaser shall have delivered to Seller a certificate of its President and
Secretary to the effect that each of the conditions specified above in Sections 10.1, 10.2, 10.3 and 10.4 are satisfied in all respects. 

    10.7  Instruments of Transfer.  Purchaser shall have delivered to Seller: 

    (a) executed
Ancillary Agreements without any material changes to the forms attached as Exhibits to this Agreement; 

    (b) all
documents described in Section 11.2 below; and 

    (c) such
other instruments or documents as may be reasonably requested by Seller or Seller's counsel. 

    10.8  Fairness Opinion.  Seller shall have received an opinion from Capital Link Inc. reasonably
satisfactory to Seller that the consideration to be received by Seller from Purchaser for the Acquired Assets is fair to Seller from a financial point of view (the "Fairness Opinion"). 

    10.9  Merger.  The mergers contemplated by the Agreement and Plan of Reorganization and Merger by and
among Western Power & Equipment Corp., E-Mobile, Inc., and E-Mobile Holdings, Inc. dated as of November 1, 2000 (the "Merger Agreement") shall be consummated simultaneously with the Closing. 

    10.10  Employment Agreements.  Purchaser shall have entered into the Employment Agreements. 

  ARTICLE 11
       DELIVERIES AT CLOSING         

    All transactions at the Closing shall be deemed to take place simultaneously and no transaction at the Closing shall be deemed to have been completed until all
documents set forth in this Article 11 have been delivered by the Parties hereto except as waived by the Party to which such document is to be delivered. 

    11.1  Obligations of Seller.  At the Closing, Seller shall deliver the following instruments and
documents to Purchaser: 

    (a) a
Bill of Sale substantially in the form of Exhibit 11.1(a); 

    (b) a
certificate representing the Shares, duly endorsed or accompanied by a duly executed stock power; 

    (c) duly
endorsed certificates of title in respect of all vehicles included in the Acquired Assets; 

    (d) the
executed certificate described in Section 9.5 above; 

    (e) resolutions
of Seller's board of directors and shareholders certified by a secretary or assistant secretary of Seller, in a form satisfactory to Purchaser,
authorizing the execution and performance of the Agreement and all other actions to be taken by Seller hereunder; 

    (f)  all
Approvals listed on Schedule 9.4; 

    (g) an
opinion of Seller's counsel in the form attached hereto as Exhibit 11.1(g); 

 

    (h) all
consents necessary for the consummation of the transactions contemplated by this Agreement, including, inter alia, the consents necessary for the valid
execution, delivery and performance of the transfer and assignment of the Acquired Assets; 

    (i)  a
FIRPTA Certificate; 

    (j)  the
Employment Agreements; and 

    (k) such
other instruments or documents as may be reasonably requested by Purchaser or Purchaser's counsel to fully and effectively convey the Acquired Assets to
Purchaser and retain the Excluded Liabilities in accordance with the provisions of this Agreement. 

    11.2  Obligations of Purchaser.  At the Closing, Purchaser shall deliver to Seller: 

    (a) the
Assumption Agreement in the form of Exhibit 11.2(a) (the "Assumption Agreement"); 

    (b) the
executed certificate described in Section 10.6; 

    (c) certified
copies of resolutions of the board of managers and, to the extent legally required, interest holders of Purchaser authorizing this transaction; 

    (d) an
opinion of Purchaser's counsel in the form attached hereto as Exhibit 11.2(d); 

    (e) the
Employment Agreements; 

    (f)  the
Purchase Price Promissory Note; 

    (g) the
Security Agreement; and 

    (h) such
other instruments and documents as may be reasonably requested by Seller or Seller's counsel to fully and effectively evidence the assumption of liabilities
and obligations of Seller pursuant hereto. 

  ARTICLE 12
       SURVIVAL OF REPRESENTATIONS AND WARRANTIES;
  INDEMNIFICATION         

    12.1  Survival of Representations and Warranties; Limitations.  The representations and warranties
provided in Sections 6.3, 6.4, 6.6 and 6.7 or in any certificate delivered by Purchaser pursuant to this Agreement shall survive until the two-year anniversary of the Closing and thereafter only to
the extent of claims for which a notice has been given on or before such date in accordance with the terms of this Agreement (the "Time Limitations"). The representations and warranties contained in
Sections 5.3, 5.5, 5.6, 6.1, 6.2 and 6.5 shall survive until the expiration of the applicable statutes of limitations with respect thereto. In no event shall Purchaser be liable to Seller unless and
until all claims for which Damages (as defined below) are recoverable hereunder by Seller exceed $100,000 (the "Basket"); provided, however, that once the level of Damages exceeds the amount of the
Basket, Seller shall be entitled to receive the entire amount of such Damages. In the event that Seller is liable to Purchaser for Damages, Purchaser shall only be entitled to Damages up to $100,000
(the "Claims Limit"). Notwithstanding the foregoing, the Time Limitations, the Basket and the Claims Limit shall not apply to (i) fraud or (ii) any intentional misrepresentation or breach of a
representation, warranty or covenant or (iii) Section 12.2(a)(2)(ii), Section 12.2(a)(2)(iii) or Section 12.2(a)(3)(ii). 

    12.2  Indemnification.  

    (a) Subject
to the Time Limitations, the Basket and the Claims Limit, and paragraph (b) hereof, Seller, on the one hand, and Purchaser, on the other hand (each an
"Indemnifying Party"), shall indemnify the other and their respective shareholders, partners, directors, affiliates, agents, officers, employees and successors thereof (each an "Indemnified Party"),
against and in respect of all loss, liability, damage and expense (including, without limitation, reasonable attorneys' fees and other reasonable costs of investigation or defense) (collectively,
"Damages") resulting, (1) in the 

case of Seller as the Indemnifying Party, from (i) any breach by Seller of the representations and warranties contained in Sections 5.3, 5.5 or 5.6, (ii) any liabilities arising from any lawsuit,
claim or action filed by any of Seller's stockholders which relates to the transactions contemplated by this Agreement or the Merger Agreement and (iii) any fees or expenses owing to any broker or
finder engaged by E-Mobile, Inc., E-Mobile Holdings, Inc. or any party acting on behalf of either of the foregoing, and (2) in the case of Purchaser as the Indemnifying Party, from (i) any breach by
Purchaser of its representations and warranties contained in this Agreement or in any certificate delivered by Purchaser pursuant to this Agreement, and (ii) any Assumed Liability. 

    (b) Seller
shall indemnify, reimburse and hold harmless Purchaser and its shareholders, partners, directors, Affiliates, agents, officers, employees and successors from
and against all liabilities for Transfer Taxes of Seller, Subsidiary and their respective Affiliates imposed as a result of the transactions contemplated by this Agreement. 

    12.3  Method of Asserting Claims, etc.  To be entitled to indemnity hereunder, an Indemnified Party must
send notice of a claim to the Indemnifying Party within the applicable Time Limitations and within 15 business days of the Indemnified Party becoming aware of the state of facts underlying the claim,
but the failure to notify the Indemnifying Party within such time period will not relieve the indemnifying party of any liability that it may have to any Indemnified Party, except to the extent that
the Indemnifying Party demonstrates that the defense of such action is actually prejudiced by the Indemnified Party's failure to give such notice. All claims for indemnification by any Indemnified
Party hereunder shall be asserted and resolved as set forth in this Section 12.3. In the event that any written claim or demand for which an Indemnifying Party would be liable to any Indemnified Party
hereunder is asserted against or sought to be collected from any Indemnified Party by a third party, such Indemnified Party shall promptly, but in no event more than 15 business days following such
Indemnified Party's receipt of such claim or demand, notify the Indemnifying Party of such claim or demand (providing sufficient details with respect to such claim or demand to put the Indemnifying
Party on notice of such claim or demand) and the amount or the estimated amount thereof to the extent such estimate is then feasible (which estimate shall not be conclusive of the final amount of such
claim and demand) (the "Claim Notice"). The Indemnifying Party shall promptly notify the Indemnified Party (a) whether or not the Indemnifying Party disputes the liability of the Indemnifying Party to
the Indemnified Party hereunder with respect to such claim or demand and (b) whether or not it desires to defend the Indemnified Party against such claim or demand. All costs and expenses incurred by
the Indemnifying Party in defending such claim or demand shall be a liability of, and shall be paid by, the Indemnifying Party. Except as hereinafter provided, in the event that the Indemnifying Party
promptly notifies the Indemnified Party that it accepts liability hereunder with respect thereto and elects to defend the Indemnified Party against such claim or demand, the Indemnifying Party shall
have the right to defend the Indemnified Party by appropriate proceedings with counsel reasonably satisfactory to the Indemnified Party and shall have the sole power to direct and control such
defense. If any Indemnified Party desires to participate in any such defense it may do so at its sole cost and expense. The Indemnified Party shall not settle a claim or demand without the consent of
the Indemnifying Party, unless (i) the Indemnifying Party shall have failed to promptly assume the defense thereof and (ii) within 10 days after the Indemnified Party shall have given the Indemnifying
Party written notice of the proposed settlement, the Indemnifying Party shall not have given the Indemnified Party written notice accepting liability hereunder with respect thereto and of its election
to assume the defense of such claim or demand, in which event the Indemnified Party may enter into the proposed settlement and the Indemnifying Party shall not be entitled to object to the terms
thereof. The Indemnifying Party shall not, without the prior written consent of the Indemnified Party, settle, compromise or offer to settle or compromise any such claim or demand on a basis which
would result in (i) the imposition of a consent order, injunction or decree which would restrict the future activity or conduct of the Indemnified Party's business or any subsidiary or Affiliate
thereof, (ii) any remedy other than damages payable in full by the Indemnifying Party or (iii) any admission of a violation of Law that would constitute a crime or any other admission of a violation
of Law that would impair in any material respect the Indemnified Party's conduct of its business or would establish, by collateral estoppel or by legally admissible evidence, the basis of any other
claim against the Indemnified Party 

which would not be subject to full indemnity hereunder. If the Indemnifying Party elects not to defend the Indemnified Party against such claim or demand, whether by not giving the Indemnified Party
timely notice as provided above or otherwise, then the amount of any such claim or demand, or, if the same be contested by the Indemnified Party, then that portion thereof as to which such defense is
unsuccessful (and the reasonable costs and expenses pertaining to such defense) shall be the liability of the Indemnifying Party hereunder, subject to the limitations set forth in Section 12.1 hereof. 

    12.4  Indemnification Payments.  All indemnification payments shall promptly be paid in cash. Except in
the case of intentional misrepresentation or intentional breach of any representation, warranty or covenant or fraud, the indemnification provisions of this Article 12 are the sole remedies for
Damages and for any other causes of action in connection with this Agreement. 

  ARTICLE 13
       TERMINATION         

    13.1  Method of Termination.  This Agreement may be terminated prior to Closing, by any of the following
methods: 

    (a) mutual
consent of Purchaser and Seller; 

    (b) by
written notice from either of Purchaser or Seller if the Closing does not occur on or before March 31, 2001 (the "Outside Date"); provided, however, that if the
Closing shall not have occurred by the Outside Date, the Outside Date shall automatically be extended until July 31, 2001 (the "Extension Date") unless both parties object in writing to such
extension; provided, further, however, that if the Closing shall not have occurred by the Extension Date as a result of any action taken, or failure to act, by any governmental or regulatory authority
including, but not limited to, the withholding of, or a delay in, any approval in connection with any aspect of the transactions contemplated hereby, then the Extension Date shall automatically be
extended until a date which is a reasonable time subsequent to the date upon which such governmental or regulatory action is resolved which will allow the parties to complete the procedures required
to consummate the transactions contemplated hereby; and provided, further, however, that the right to terminate this Agreement pursuant to this Section 13.1(b) shall not be available to any party
whose failure to fulfill any obligation pursuant to this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such date; 

    (c) by
Seller if there is a material breach of any representation or warranty set forth in Article 6 hereof or any material covenant or agreement to be complied with or
performed by Purchaser pursuant to the terms of this Agreement or the failure of a condition set forth in Article 10 to be satisfied (and such condition is not waived in writing by Seller) on or prior
to the Closing Date, or the occurrence of any event which results in the failure of a condition set forth in Article 10 to be satisfied on or prior to the
Closing Date; provided, that, Seller may not terminate this Agreement prior to Closing if Purchaser has not had an adequate opportunity to cure such failure; 

    (d) by
Purchaser if there is a material breach of any representation or warranty set forth in Article 5 hereof or any material covenant or agreement to be complied with
or performed by Seller pursuant to the terms of this Agreement or the failure of a condition set forth in Article 9 to be satisfied (and such condition is not waived in writing by Purchaser) on or
prior to the Closing Date, or the occurrence of any event which results in the failure of a condition set forth in Article 9 to be satisfied on or prior to the Closing Date; provided, that, Purchaser
may not terminate this Agreement prior to Closing if Seller has not had an adequate opportunity to cure such failure; or 

    (e) by
Purchaser or Seller if a court of competent jurisdiction or other Governmental Entity shall have issued a non-appealable final order, decree or ruling or taken
any other non-appealable final action, in each case having the effect of permanently restraining, enjoining or otherwise prohibiting the transactions contemplated hereby.. 

    13.2  Effect of Termination.  In the event that this Agreement is terminated pursuant to the provisions
of Section 13.1, this Agreement shall become null and void and shall have no further effect, and no Party shall have any liability with respect thereto, except that Section 14.1 shall survive the
termination of this Agreement; provided, however, that such termination shall not relieve any Party hereto of any liability for any breach of this Agreement. 

  ARTICLE 14
       MISCELLANEOUS         

    14.1  Expenses.  Each Party to this Agreement shall bear and pay its own costs and expenses incurred in
connection with the preparation, execution, and delivery of this Agreement and the Ancillary Agreements, and the transactions contemplated hereby and thereby. 

    14.2  Notices.  All notices, claims, certificates, requests, demands and other communications under this
Agreement shall be made in writing and shall be sent by prepaid telex, cable or telecopy, or sent, postage prepaid, by registered, certified or express mail, or reputable overnight courier service,
and shall be deemed given when so delivered by hand, telexed, cabled or telecopied, or if mailed, seven (7) days after mailing (one (1) business day in the case of express mail or overnight courier
service) to the
Parties at the following addresses (or at such other address for a Party as shall be specified by like notice): 

   If
to Seller:  Western Power & Equipment Corp.

c/o Michael Sanders, Esq.

Vanderkam & Sanders

440 Louisiana Street, Suite 475

Houston, Texas 77002

Attn: Michael Sanders, Esq.

Telecopy: (713) 547-8910 

With
a copy to:  Berkman-Wechsler Law Offices

6 Wissotzky Street

Tel Aviv, Israel 62338

Attention: Ofira Gordon

Telecopy: 011-972-3-604-5775 

If
to Purchaser:  Western Power & Equipment, L.L.C.

4601 N.E. 77th Avenue

Vancouver, WA 98662

Attention: Charles Dean McLain

Telecopy: (360) 892-7927 

With
a copy to:  Kaye, Scholer, Fierman, Hays & Handler, LLP

425 Park Avenue

New York, NY 10022

Attention: Rory A. Greiss

Telecopy: (212) 836-8689 

    14.3  Amendments.  This Agreement may be amended or modified only by a written instrument executed by the
Parties to this Agreement. 

    14.4  Assignment.  This Agreement may not be assigned, by operation of Law or otherwise; provided,
however, that Purchaser may assign this Agreement, to any Affiliate of Purchaser. This Agreement shall be binding upon and inure to the benefit of successors and assigns of the Parties hereto. 

    14.5  Benefits; No Third Party Rights.  Nothing expressed or referred to in this Agreement is intended or
shall be construed to give any person or entity, other than the Parties, or their respective successors and assigns, any legal or equitable right, remedy or claim under or in respect thereof or any 

provision contained herein, it being the intention of the Parties that this Agreement is for the sole and exclusive benefit of such Parties, and such successors and assigns of this Agreement and for
the benefit of no other person or entity. 

    14.6  Headings.  The paragraph and other headings contained in this Agreement are for reference purposes
only and shall not constitute a part hereof or be deemed to limit or expand the scope of any provision of this Agreement. 

    14.7  Governing Law; Venue.  This Agreement shall, in accordance with Section 5-1401 of the General
Obligation Law of New York, be governed by and construed in accordance with the Laws of the state of New York without regard to any conflicts of law principles thereof that would call for the
application of the laws of any other jurisdiction. Each Party hereto hereby (a) irrevocably and unconditionally submits in any legal action or proceeding relating to this Agreement, or for recognition
and enforcement of any judgment in respect thereof, to the general jurisdiction of the state and federal courts in the State of New York, and appellate courts thereof, and (b) consents that any action
or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding
was brought in an inconvenient court and agrees not to plead or claim the same. 

    14.8  Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed as
original, but all of which taken together shall constitute one and the same agreement. 

    14.9  Severability.  If any provision of this Agreement, or any covenant, obligation or agreement
contained herein is determined by a court to be invalid or unenforceable, such determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed
and enforced as if such invalid or unenforceable provision were not contained herein. Such invalidity or unenforceability shall not affect any valid and enforceable application thereof, and each such
provision, covenant, obligation or agreement, shall be deemed to be effective, operative, made, entered into or taken in the matter and to the full extent permitted by Law. 

    14.10  Entire Agreement.  This Agreement, including the Schedules and Exhibits attached hereto and hereby
incorporated herein, together with the Ancillary Agreements, constitutes the entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior agreements,
understandings, or representations relating to the subject matter of this Agreement. 

[Signature
page follows] 

    IN WITNESS WHEREOF, Purchaser and Seller have caused their respective duly authorized officers to execute this Asset Purchase Agreement as of the day and year first above written. 

	 	 	WESTERN POWER & EQUIPMENT, L.L.C.
	 

 	 
 	 

By:	 

/s/ ROBERT RUBIN   
 Robert Rubin
 Manager
	 

 	 
 	 
 WESTERN POWER & EQUIPMENT CORP. (DE)
	 

 	 
 	 

By:	 

/s/ CHARLES DEAN MCLAIN   
 Charles Dean McLain
 President and Chief Executive Officer

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R E C I T A L S

ARTICLE 1 DEFINITIONS

ARTICLE 2 SALE OF ASSETS

ARTICLE 3 CONSIDERATION

ARTICLE 4 CLOSING

ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF SELLER

ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF PURCHASER

ARTICLE 7 COVENANTS OF SELLER

ARTICLE 8 MUTUAL COVENANTS

ARTICLE 9 CONDITIONS PRECEDENT TO PURCHASER'S OBLIGATIONS

ARTICLE 10 CONDITIONS PRECEDENT TO SELLER'S OBLIGATIONS

ARTICLE 11 DELIVERIES AT CLOSING

ARTICLE 12 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

ARTICLE 13 TERMINATION

ARTICLE 14 MISCELLANEOUSPrepared by MERRILL CORPORATION www.edgaradvantage.com

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AGREEMENT AND PLAN OF REORGANIZATION AND MERGER  

 BY AND AMONG  

 WESTERN POWER & EQUIPMENT CORP.,  

 E-MOBILE, INC.,  

 AND  

 E-MOBILE HOLDINGS, INC.  

 DATED AS OF NOVEMBER 1, 2000  

   TABLE OF CONTENTS         

	 
	 	Page

	ARTICLE I. THE MERGERS	 	 
	 	 

SECTION 1.1. Certificate of Incorporation and Bylaws of Parent	 
 	 

1
	 	SECTION 1.2. The Western Power Merger	 	1
	 	SECTION 1.3. The E-Mobile Merger	 	2
	 	SECTION 1.4. Effective Time of the Mergers	 	2
	 	SECTION 1.5. Closing	 	2
	 	SECTION 1.6. Effect of the Mergers	 	2
	 	SECTION 1.7. Articles or Certificate of Incorporation and Bylaws of the Surviving Corporations	 	3
	 	SECTION 1.8. Directors and Officers of the Surviving Corporations	 	3
	 
 ARTICLE II. CONVERSION OF SECURITIES	 
 	 

 
	 	 

SECTION 2.1. Conversion of Western Power Capital Stock	 
 	 

3
	 	SECTION 2.2. Conversion of E-Mobile Capital Stock	 	4
	 	SECTION 2.3. Cancellation of Parent Common Stock	 	4
	 	SECTION 2.4. Exchange of Certificates	 	5
	 	SECTION 2.5. Dissenting Shares	 	7
	 
 ARTICLE III. REPRESENTATIONS AND WARRANTIES OF WESTERN POWER	 
 	 

 
	 	 

SECTION 3.1. Organization of Western Power	 
 	 

8
	 	SECTION 3.2. Western Power Capital Structure	 	8
	 	SECTION 3.3. Authority; No Conflict; Required Filings and Consents	 	9
	 	SECTION 3.4. SEC Filings	 	10
	 	SECTION 3.5. No Liabilities	 	10
	 	SECTION 3.6. Taxes	 	10
	 	SECTION 3.7. Litigation	 	11
	 	SECTION 3.8. Employment and Consulting Relationships	 	11
	 	SECTION 3.9. Accounting and Tax Matters	 	11
	 	SECTION 3.10. Registration Statement; Joint Proxy Statement/Prospectus	 	11
	 	SECTION 3.11. No Existing Discussions	 	12
	 	SECTION 3.12. Section 203 of the DGCL Not Applicable	 	12
	 	SECTION 3.13. Complete Disclosure	 	12
	 	SECTION 3.14. No Defense	 	12
	 
 ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF E-MOBILE	 
 	 

 
	 	 

SECTION 4.1. Organization of E-Mobile	 
 	 

13
	 	SECTION 4.2. E-Mobile Capital Structure	 	13
	 	SECTION 4.3. Authority; No Conflict; Required Filings and Consents	 	14
	 	SECTION 4.4. Business Plan	 	14
	 	SECTION 4.5. Financial Statements	 	15
	 	SECTION 4.6. Licenses and Permits	 	15
	 	SECTION 4.7. Leases	 	15
	 	SECTION 4.8. Property	 	15
	 	SECTION 4.9. Contracts	 	15
	 	SECTION 4.10. No Undisclosed Liabilities	 	15
	 	SECTION 4.11. Guarantor of Payment	 	16
	 	SECTION 4.12. Absence of Certain Changes or Events	 	16

i

	 	SECTION 4.13. Taxes	 	16
	 	SECTION 4.14. Intellectual Property	 	16
	 	SECTION 4.15. Agreements, Contracts and Commitments	 	16
	 	SECTION 4.16. Litigation	 	17
	 	SECTION 4.17. Environmental Matters	 	17
	 	SECTION 4.18. Employment and Consulting Relationships	 	17
	 	SECTION 4.19. Compliance With Laws	 	17
	 	SECTION 4.20. Accounting and Tax Matters	 	18
	 	SECTION 4.21. Registration Statement; Joint Proxy Statement/Prospectus	 	18
	 	SECTION 4.22. Labor Matters	 	18
	 	SECTION 4.23. Insurance	 	18
	 	SECTION 4.24. No Existing Discussions	 	18
	 	SECTION 4.25. Section 203 of the DGCL Not Applicable	 	19
	 	SECTION 4.26. Complete Disclosure	 	19
	 	SECTION 4.27. No Defense	 	19
	 
 ARTICLE V. COVENANTS	 
 	 

 
	 	 

SECTION 5.1. Conduct of Business	 
 	 

19
	 	SECTION 5.2. Cooperation; Notice; Cure	 	21
	 	SECTION 5.3. No Solicitation	 	21
	 	SECTION 5.4. Joint Proxy Statement/Prospectus; Registration Statement	 	21
	 	SECTION 5.5. Nasdaq Quotation	 	22
	 	SECTION 5.6. Access to Information	 	22
	 	SECTION 5.7. Stockholders Meetings	 	22
	 	SECTION 5.8. Legal Conditions to Merger	 	22
	 	SECTION 5.9. Public Disclosure	 	23
	 	SECTION 5.10. Tax-Free Transfer	 	23
	 	SECTION 5.11. Affiliate Agreements	 	23
	 	SECTION 5.12. Nasdaq Quotation	 	23
	 	SECTION 5.13. Stock Plans	 	24
	 	SECTION 5.14. Brokers or Finders	 	24
	 	SECTION 5.15. Private Placements	 	25
	 	SECTION 5.16. Sale of Western Power Assets	 	25
	 	SECTION 5.17. Post-Merger Parent Corporate Governance	 	25
	 	SECTION 5.18. Confidentiality Agreements and Restrictive Covenants	 	25
	 	SECTION 5.19. Lock-Up	 	26
	 
 ARTICLE VI. CONDITIONS TO MERGER	 
 	 

 
	 	 

SECTION 6.1. Conditions to Each Party's Obligation to Effect the Mergers	 
 	 

26
	 	SECTION 6.2. Additional Conditions to Obligations of Western Power	 	27
	 	SECTION 6.3. Additional Conditions to Obligations of E-Mobile	 	28
	 
 ARTICLE VII. TERMINATION AND AMENDMENT	 
 	 

 
	 	 

SECTION 7.1. Termination	 
 	 

29
	 	SECTION 7.2. Effect of Termination	 	29
	 	SECTION 7.3. Fees and Expenses	 	30
	 	SECTION 7.4. Amendment	 	30
	 	SECTION 7.5. Extension; Waiver	 	30

ii

	 

 	 
 	 

 
	 
 ARTICLE VIII. MISCELLANEOUS	 
 	 

 
	 	 

SECTION 8.1. Survival of Representations, Warranties and Agreements.	 
 	 

30
	 	SECTION 8.2. Notices	 	30
	 	SECTION 8.3. Indemnification	 	31
	 	SECTION 8.4. Interpretation	 	34
	 	SECTION 8.5. Counterparts	 	34
	 	SECTION 8.6. Entire Agreement; No Third Party Beneficiaries	 	34
	 	SECTION 8.7. Governing Law	 	34
	 	SECTION 8.8. Assignment	 	34

  EXHIBITS         

	Exhibit A	 	—	 	Certificate of Incorporation of Parent
	Exhibit B	 	—	 	Bylaws of Parent
	Exhibit C	 	—	 	Form of Affiliate Agreement
	Exhibit D	 	—	 	Form of Parent Stock Plan
	Exhibit E	 	—	 	List of Management Purchasers
	Exhibit F	 	—	 	Form of Asset Purchase and Sale Agreement
	Exhibit G	 	—	 	Western Power Disclosure Schedule
	Exhibit H	 	—	 	E-Mobile Disclosure Schedule
	Exhibit I	 	—	 	E-Mobile Business Plan
	Exhibit J	 	—	 	Indemnification Letter
	Exhibit K	 	—	 	Lock-Up Agreement

iii

  TABLE OF DEFINED TERMS         

	Terms
 
	 	Cross Reference

in Agreement

	Acquisition Proposal	 	Section 5.3(a)
	Additional Placement	 	Section 5.15(b)
	Affiliate	 	Section 5.11
	Affiliate Agreement	 	Section 5.11
	Aggregate Western Power Share Number	 	Section 2.4(k)(ii)
	Aggregate Western Power Shares	 	Section 2.4(k)(i)
	Agreement	 	Preamble
	Asset Purchase and Sale Agreement	 	Section 5.16(a)
	Bank	 	Section 3.3(a)
	Bank Consent Agreement	 	Section 3.3(a)
	Bankruptcy and Equity Exception	 	Section 3.3(a)
	Business Plan	 	Section 4.4
	Case Consent Agreement	 	Section 3.3(a)
	Certificates	 	Section 2.4(b)
	Claim Notice	 	Section 8.3(c)
	Closing	 	Section 1.5
	Closing Date	 	Section 1.5
	Code	 	Preamble
	DGCL	 	Section 1.2
	Dissenting Shares	 	Section 2.5
	E-Mobile	 	Preamble
	E-Mobile Certificate of Merger	 	Section 1.4(b)
	E-Mobile Common Stock	 	Section 1.3
	E-Mobile Director	 	Section 5.17(a)
	E-Mobile Disclosure Schedule	 	ARTICLE IV
	E-Mobile Exchange Ratio	 	Section 2.2(c)
	E-Mobile Lock-Up Obligation	 	Section 5.19(b)
	E-Mobile Lock-Up Period	 	Section 5.19(b)
	E-Mobile Material Contracts	 	Section 4.15
	E-Mobile Merger	 	Section 1.3
	E-Mobile Stock Option	 	Section 2.2(d)
	E-Mobile Stock Plans	 	Section 4.2(a)
	E-Mobile Stockholders' Meeting	 	Section 3.10
	E-Mobile Surviving Corporation	 	Section 1.6
	Effective Time	 	Section 1.4(c)
	Employee Benefit Plan	 	Section 3.8(a)
	Environmental Liabilities	 	Section 8.3
	ERISA	 	Section 3.8(a)
	Exchange Act	 	Section 3.3(c)
	Exchange Agent	 	Section 2.4(a)
	Exchange Fund	 	Section 2.4(a)
	Extension Date	 	Section 7.1(b)
	GAAP	 	Section 4.5
	Governmental Entity	 	Section 3.3(c)
	Hazardous Materials Release	 	Section 8.3
	Indemnified Parties	 	Section 8.3(a)
	Indemnifying Party	 	Section 8.3(c)

iv

	IRS	 	Section 3.7(b)
	Joint Proxy Statement/Prospectus	 	Section 3.10
	Lock-Up Obligation	 	Section 5.19(c)
	Management Purchasers	 	Section 5.16(a)
	Material Adverse Effect	 	Section 4.1
	Mergers	 	Section 1.3
	Merger Sub 1	 	Section 1.2
	Merger Sub 2	 	Section 1.3
	Order	 	Section 5.8(b)
	Outside Date	 	Section 7.1(b)
	Parent	 	Preamble
	Parent Common Stock	 	Section 1.2
	Parent Material Adverse Effect	 	Section 6.1(e)
	Parent Stock Plan	 	Section 5.13(e)
	Private Placement	 	Section 5.15(a)
	Registration Statement	 	Section 3.10
	Rule 145	 	Section 5.11
	SEC	 	Section 3.3(c)
	Securities Act	 	Section 3.3(c)
	Subsidiary	 	Section 3.1
	Surviving Corporations	 	Section 1.6
	Tax	 	Section 3.6(a)
	Taxes	 	Section 3.6(a)
	Transaction Documents	 	Section 3.3(a)
	Western Power	 	Preamble
	Western Power Asset Sale	 	Section 5.16(a)
	Western Power Certificate of Merger	 	Section 1.4(a)
	Western Power Common Stock	 	Section 1.2
	Western Power Director	 	Section 5.17(a)
	Western Power Disclosure Schedule	 	ARTICLE III
	Western Power Exchange Ratio	 	Section 2.4(k)(iii)
	Western Power Lock-Up Obligation	 	Section 5.19(a)
	Western Power Lock-Up Period	 	Section 5.19(a)
	Western Power Merger	 	Section 1.2
	Western Power SEC Reports	 	Section 3.4
	Western Power Stock Option	 	Section 2.1(d)
	Western Power Stock Plans	 	Section 3.2(a)
	Western Power Stockholders' Meeting	 	Section 3.10
	Western Power Surviving Corporation	 	Section 1.6

v

 

  AGREEMENT AND PLAN OF REORGANIZATION AND MERGER         

    AGREEMENT AND PLAN OF REORGANIZATION AND MERGER (the "Agreement"), dated as of November 1, 2000, by and among WESTERN POWER & EQUIPMENT CORP., a Delaware
corporation ("Western Power"), E-MOBILE, INC., a Delaware corporation ("E-Mobile"), and E-MOBILE HOLDINGS, INC., a newly-formed Delaware corporation, one-half of the issued and outstanding capital
stock of which is owned by each of Western Power and E-Mobile ("Parent"). 

    WHEREAS,
the Boards of Directors of Western Power and E-Mobile deem it advisable and in the best interests of each corporation and its respective stockholders that Western Power and
E-Mobile combine in order to advance the long-term business interests of Western Power and E-Mobile; 

    WHEREAS,
the combination of Western Power and E-Mobile shall be effected by the terms of this Agreement through (i) a merger of a wholly-owned subsidiary of Parent with and into
Western Power and (ii) a merger of another wholly-owned subsidiary of Parent with and into E-Mobile such that Western Power and E-Mobile become wholly-owned subsidiaries of Parent and the stockholders
of Western Power and E-Mobile become stockholders of Parent; 

    WHEREAS,
for Federal income tax purposes, it is intended that (i) the Western Power Merger (as defined in Section 1.2) shall, taken together with the E-Mobile Merger (as defined in
Section 1.3), qualify as a transfer of property to Parent by holders of Western Power Common Stock (as defined in Section 1.2) described in Section 351 of the Internal Revenue Code of 1986, as amended
(the "Code"), and (ii) the E-Mobile Merger shall, taken together with the Western Power Merger, qualify as a transfer of property to Parent by holders of E-Mobile Common Stock (as defined in Section
1.3) described in Section 351 of the Code; and 

    WHEREAS,
the Boards of Directors of Western Power and E-Mobile have approved this Agreement and each of the Transaction Documents to which its company is a party (as defined in
Section 3.3). 

    NOW,
THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below, the parties agree as follows: 

  ARTICLE I.
       THE MERGERS         

    SECTION
1.1.  Certificate of Incorporation and Bylaws of Parent.  The Certificate of Incorporation and
Bylaws of Parent shall, at the Effective Time (as defined in Section 1.4), be in the form of Exhibit A and Exhibit B attached hereto, respectively. From the date hereof until the Effective Time, the
Parent will not take any action inconsistent with the provisions of this Agreement without the written consent of both Western Power and E-Mobile. 

    SECTION
1.2.  The Western Power Merger.  Western Power and E-Mobile shall cause Parent to form a
wholly-owned subsidiary named Western Power Acquisition Corp. ("Merger Sub 1") under the laws of the State of Delaware. Western Power and E-Mobile shall cause Parent to cause Merger Sub 1 to execute
and deliver a written document agreeing to be bound by the terms and conditions of this Agreement. Upon the terms and subject to the provisions of this Agreement, and in accordance with the Delaware
General Corporation Law (the "DGCL"), Merger Sub 1 will merge with and into Western Power (the "Western Power Merger") at the Effective Time, and each outstanding share of Common Stock, par value
$.001 per share, of Western Power ("Western Power Common Stock") shall be converted into that number of shares of common stock, par value $.000001 per share, of Parent (the "Parent Common Stock") (as
described in Section 2.1(c)) equal to the Exchange Ratio (as defined in Section 2.4(k)(iii) below). Merger Sub 1 will be formed solely to facilitate the Western Power Merger and will conduct no
business or activity other than in connection with the Western Power Merger. 

1

    SECTION 1.3.  The E-Mobile Merger.  Western Power and E-Mobile shall cause Parent to form a wholly-owned
subsidiary named E-Mobile Acquisition Corp. ("Merger Sub 2") under the laws of the State of Delaware. Western Power and E-Mobile shall cause Parent to cause Merger Sub 2 to execute and deliver a
written document agreeing to be bound by the terms and conditions of this Agreement. Upon the terms and subject to the provisions of this Agreement, and in accordance with the DGCL, Merger Sub 2 shall
merge with and into E-Mobile (the "E-Mobile Merger" and together with the Western Power Merger, the "Mergers") at the Effective Time, and each outstanding share of Common Stock, par value $.000001 per
share, of E-Mobile ("E-Mobile Common Stock") shall be converted into one
share of Parent Common Stock (as described in Section 2.2(c)). Merger Sub 2 will be formed solely to facilitate the E-Mobile Merger and will conduct no business or activity other than in connection
with the E-Mobile Merger. 

    SECTION
1.4.  Effective Time of the Mergers.  

    (a) The Western Power Merger.  Subject to, and consistent with, the provisions of this Agreement,
articles of merger with respect to the Western Power Merger in such form as is required by the relevant provisions of the DGCL (the "Western Power Certificate of Merger") shall be duly prepared,
executed and acknowledged and thereafter delivered to the Secretary of State of the State of Delaware for filing, as provided in the DGCL as early as practicable on the Closing Date (as defined in
Section 1.5). The Western Power Merger shall become effective upon the filing of the Western Power Certificate of Merger with the Secretary of State of the State of Delaware. 

    (b) The E-Mobile Merger.  Subject to, and consistent with, the provisions of this Agreement, a
certificate of merger (the "E-Mobile Certificate of Merger") with respect to the E-Mobile Merger in such form as is required by the relevant provisions of the DGCL shall be duly prepared, executed and
acknowledged and thereafter delivered to the Secretary of State of the State of Delaware for filing, as provided in the DGCL as early as practicable on the Closing Date. The E-Mobile Merger shall
become effective upon the filing of the E-Mobile Certificate of Merger with the Secretary of State of the State of Delaware. 

    (c) The Effective Time.  The time at which both Mergers have become fully effective is hereinafter
referred to as the "Effective Time." 

    SECTION
1.5.  Closing.  The closing of the Mergers (the "Closing") will take place at 11:00 a.m., Eastern
Standard Time, on a date to be specified by E-Mobile and Western Power, which shall be no later than the third business day after satisfaction or, if permissible, waiver of the conditions set forth in
Article VI (the "Closing Date"), at the offices of Mintz & Fraade, P.C., 488 Madison Avenue, New York, New York 10022, unless another date, place or time is agreed to in writing by E-Mobile and
Western Power. 

    SECTION
1.6.  Effect of the Mergers.  As a result of the Western Power Merger, the separate corporate
existence of Merger Sub 1 shall cease and Western Power shall continue as the surviving corporation (the "Western Power Surviving Corporation"). As a result of the E-Mobile Merger, the separate
corporate existence of Merger Sub 2 shall cease and E-Mobile shall continue as the surviving corporation (the "E-Mobile Surviving Corporation" and together with Western Power Surviving
Corporation, the "Surviving Corporations"). Upon becoming effective, the Mergers shall have the effects set forth in the DGCL, as the case may be. Without limiting the generality of the foregoing, and
subject thereto, at the Effective Time, (i) all properties, rights, privileges, powers and franchises of Western Power and Merger Sub 1 shall vest in Western Power Surviving Corporation, and all
debts, liabilities and duties of Western Power and Merger Sub 1 shall become the debts, liabilities and duties of the Western Power Surviving Corporation and (ii) all properties, rights, privileges,
powers and franchises of E-Mobile and Merger Sub 2 shall vest in E-Mobile Surviving Corporation, and all debts, 

2

liabilities and duties of E-Mobile and Merger Sub 2 shall become the debts, liabilities and duties of E-Mobile Surviving Corporation. 

    SECTION
1.7.  Articles or Certificate of Incorporation and Bylaws of the Surviving Corporations.  At the
Effective Time, (i) the Articles of Incorporation and Bylaws of Western Power Surviving Corporation shall be the Articles of Incorporation and Bylaws, respectively, of Western Power, as in effect
immediately prior to the Effective Time, in each case until duly amended in accordance with applicable law, and (ii) the Certificate of Incorporation and Bylaws of E-Mobile Surviving Corporation shall
be the Certificate of Incorporation and Bylaws, respectively, of E-Mobile, as in effect immediately prior to the Effective Time, in each case until duly amended in accordance with applicable law. 

    SECTION
1.8.  Directors and Officers of the Surviving Corporations.  

    (a)  Western Power Surviving Corporation.  On or prior to the Effective Time, the officers and directors
of Western Power Surviving Corporation shall resign and shall be replaced by such persons as shall be designated by E-Mobile. 

    (b)  E-Mobile Surviving Corporation.  The officers and directors of E-Mobile immediately prior to the
Effective Time shall be the initial officers and directors of E-Mobile Surviving Corporation, each to hold office in accordance with the Certificate of Incorporation and Bylaws of E-Mobile Surviving
Corporation. 

  ARTICLE II.
       CONVERSION OF SECURITIES         

    SECTION
2.1.  Conversion of Western Power Capital Stock.  At the Effective Time, by virtue of the Western
Power Merger and without any action on the part of any of the parties hereto or the holders of any shares of Western Power Common Stock or capital stock of Merger Sub 1: 

    (a)  Capital Stock of Merger Sub 1.  Each issued and outstanding share of the capital stock of Merger Sub
1 shall be converted into and become one fully paid and nonassessable share of Common Stock, par value $.001 per share, of Western Power Surviving Corporation. 

    (b)  Cancellation of Treasury Stock and E-Mobile-Owned Stock.  All shares of Western Power Common Stock
that are owned by Western Power or any Subsidiary (as defined in Section 3.1) of Western Power and any shares of Western Power Common Stock (including any options, warrants or other securities
convertible into or exchangeable for such shares) owned by E-Mobile, Merger Sub 2 or any other Subsidiary of E-Mobile shall be canceled and retired and shall cease to exist and no stock of Parent or
other consideration shall be delivered in exchange therefor. 

    (c)  Exchange Ratio for Western Power Common Stock.  Subject to Section 2.4(e), each issued and
outstanding share of Western Power Common Stock (other than shares to be canceled in accordance with Section 2.1(b) and Dissenting Shares (as defined in Section 2.5)) shall be converted into the right
to receive that number of shares of newly issued Parent Common Stock equal to the Western Power Exchange Ratio (as defined in Section 2.4(k)(iii) below). All such shares of Western Power Common Stock,
when so converted, shall no longer be outstanding and shall automatically be canceled and retired and shall cease to exist, and each holder of a certificate representing any such shares shall cease to
have any rights with respect thereto, except the right to receive the shares of Parent Common Stock and an amount equal to certain dividends and distributions described in Section 2.4(c), in each
case, upon the surrender of such certificate in accordance with Section 2.4 and without interest. 

    (d)  Western Power Stock Options.  At the Effective Time, each outstanding option to purchase shares of
Western Power Common Stock (a "Western Power Stock Option") under the Western Power Stock Plans (as defined in Section 3.2(a)), whether vested or unvested, shall be 

3

deemed to constitute an option to acquire, on the same terms and conditions as were applicable under such Western Power Stock Option, the same number of shares of Parent Common Stock as the holder of
such Western Power Stock Option would have been entitled to receive pursuant to the Western Power Merger had such holder exercised such option in full immediately prior to the Effective Time (rounded
downward to the nearest whole number), at a price per share (rounded downward to the nearest whole cent) equal to (y) the aggregate exercise price for the shares of Western Power Common Stock
purchasable pursuant to such Western Power Stock Option immediately prior to the Effective Time divided by (z) the number of full shares of Parent Common Stock deemed purchasable pursuant to such
Western Power Stock Option in accordance with the foregoing. 

    SECTION
2.2.  Conversion of E-Mobile Capital Stock.  At the Effective Time, by virtue of the E-Mobile
Merger and without any action on the part of any of the parties hereto or the holders of any shares of E-Mobile Common Stock or capital stock of Merger Sub 2: 

    (a)  Capital Stock of Merger Sub 2.  Each issued and outstanding share of the capital stock of Merger Sub
2 shall be converted into and become one fully paid and nonassessable share of Common Stock, par value $0.000001 per share, of E-Mobile Surviving Corporation. 

    (b)  Cancellation of Treasury Stock and Western Power-Owned Stock.  All shares of E-Mobile Common Stock
that are owned by E-Mobile or any Subsidiary of E-Mobile (including treasury stock) and any shares of E-Mobile Common Stock (including any options, warrants or other securities convertible into or
exchangeable for such shares) owned by Western Power, Merger Sub 1 or any other Subsidiary of Western Power shall be canceled and retired and shall cease to exist and no stock of Parent or other
consideration shall be delivered in exchange therefor. 

    (c)  Exchange Ratio for E-Mobile Common Stock.  Subject to Section 2.4(e), each issued and outstanding
share of E-Mobile Common Stock (other than shares to be canceled in accordance with Section 2.2(b)) shall be converted into the right to receive one share (the "E-Mobile Exchange Ratio") of Parent
Common Stock. All such shares of E-Mobile Common Stock, when so converted, shall no longer be outstanding and shall automatically be cancelled and retired and shall cease to exist, and each holder of
a certificate representing any such shares shall cease to have any rights with respect thereto, except the right to receive the shares of Parent Common Stock and an amount equal to certain dividends
and distributions described in Section 2.4(c), in each case, upon the surrender of such certificate in accordance with Section 2.4 and without interest. 

    (d)  E-Mobile Stock Options.  At the Effective Time, each outstanding option to purchase shares of E-
Mobile Common Stock (a "E-Mobile Stock Option") under the E-Mobile Stock Plans (as defined in Section 4.2(a)) or otherwise, whether vested or unvested, shall be deemed to constitute an option to
acquire, on the same terms and conditions as were applicable under such E-Mobile Stock Option, the same number of shares of Parent Common Stock as the holder of such E-Mobile Stock Option would have
been entitled to receive pursuant to the E-Mobile Merger had such holder exercised such option in full immediately prior to the Effective Time (rounded downward to the nearest whole number), at a
price per share (rounded downward to the nearest whole cent) equal to (y) the aggregate exercise price for the shares of E-Mobile Common Stock purchasable pursuant to such E-Mobile Stock Option
immediately prior to the Effective Time divided by (z) the number of full shares of Parent Common Stock deemed purchasable pursuant to such E-Mobile Stock Option in accordance with the foregoing. 

    SECTION
2.3.  Cancellation of Parent Common Stock.  At the Effective Time, by virtue of the Mergers and
without any action on the part of any holder of any capital stock of Western Power, E-Mobile or Parent, each share of Parent Common Stock issued and outstanding immediately prior to the Effective Time
shall be canceled, and no consideration shall be delivered in exchange therefor. 

4

    SECTION 2.4.  Exchange of Certificates.  The procedures for exchanging shares of Western Power Common
Stock and E-Mobile Common Stock for Parent Common Stock outstanding immediately prior to the Effective Time pursuant to the Mergers are as follows: 

    (a)  Exchange Agent.  As of the Effective Time, Parent shall deposit with a bank or trust company
designated by E-Mobile and Western Power (the "Exchange Agent"), for the benefit of the holders of shares of Western Power Common Stock outstanding immediately prior to the effective time and the
holders of shares of E-Mobile Common Stock outstanding immediately prior to the Effective Time, for exchange in accordance with this Section 2.4, through the Exchange Agent, certificates representing
the shares of Parent Common Stock issuable pursuant to Sections 2.1 and 2.2 in exchange for outstanding shares of Western Power Common Stock and E-Mobile Common Stock, respectively (such shares of
Parent Common Stock, together with any dividends or distributions with respect thereto, being hereinafter referred to as the "Exchange Fund"). 

    (b)  Exchange Procedures.  As soon as reasonably practicable after the Effective Time, the Exchange Agent
shall mail to each holder of record of a certificate or certificates which immediately prior to the Effective Time represented outstanding shares of Western Power Common Stock or E-Mobile Common Stock
(the "Certificates") whose shares were converted pursuant to Section 2.1 or Section 2.2 into the right to receive shares of Parent Common Stock (i) a letter of transmittal (which shall specify
that
delivery shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates to the Exchange Agent and shall be in such form and have such other
provisions as Western Power and E-Mobile may reasonably specify), and (ii) instructions for effecting the surrender of the Certificates in exchange for certificates representing shares of Parent
Common Stock. Upon surrender of a Certificate for cancellation to the Exchange Agent or to such other agent or agents as may be appointed by Parent, together with such letter of transmittal, duly
executed, the holder of such Certificate shall be entitled to receive in exchange therefor a certificate representing that number of whole shares of Parent Common Stock which such holder has the right
to receive pursuant to the provisions of this Article II, and the Certificate so surrendered shall immediately be canceled. In the event of a transfer of ownership of Western Power Common Stock or
E-Mobile Common Stock prior to the Effective Time which is not registered in the transfer records of Western Power or E-Mobile, respectively, a certificate representing the proper number of shares of
Parent Common Stock may be issued to a transferee if the Certificate representing such Western Power Common Stock or E-Mobile Common Stock is presented to the Exchange Agent, accompanied by all
documents required to evidence and effect such transfer and by evidence that any applicable stock transfer taxes have been paid. Immediately after the Effective Time, each outstanding Certificate
which theretofore represented shares of Western Power Common Stock or E-Mobile Common Stock shall represent only the right to receive the shares of Parent Common Stock pursuant to the terms hereof and
shall not be deemed to evidence ownership of the number of shares of Parent Common Stock into which such shares of Western Power Common Stock or E-Mobile Common Stock would be or were, as the case may
be, converted into the right to receive until the Certificate therefor shall have been surrendered in accordance with this Section 2.4. 

    (c)  Distributions With Respect to Unexchanged Shares.  No dividends or other distributions declared or
made after the Effective Time with respect to Parent Common Stock with a record date after the Effective Time shall be paid to the holder of any unsurrendered Certificate with respect to the shares of
Parent Common Stock the holder thereof is entitled to receive in respect thereof until the holder of record of such Certificate shall surrender such Certificate. Subject to the effect of applicable
laws, following surrender of any such Certificate, there shall be paid to the record holder of the certificates representing whole shares of Parent Common Stock issued in exchange therefor, without
interest, (i) at the time of such surrender, the amount of dividends or other distributions with a record date after the Effective Time previously paid with respect to such 

5

whole shares of Parent Common Stock, and (ii) at the appropriate payment date, the amount of dividends or other distributions with a record date after the Effective Time but prior to surrender and a
payment date subsequent to surrender payable with respect to such whole shares of Parent Common Stock. 

    (d)  No Further Ownership Rights in Western Power Common Stock and E-Mobile Common Stock.  All shares of
Parent Common Stock issued upon the surrender for exchange of Certificates in accordance
with the terms hereof (including any cash paid pursuant to subsection (c) of this Section 2.4) shall be deemed to have been issued in full satisfaction of all rights pertaining to the shares of
Western Power Common Stock or E-Mobile Common Stock theretofore represented by such Certificates, subject, however, to the applicable Surviving Corporation's obligation to pay any dividends or make
any other distributions with a record date prior to the Effective Time which may have been declared or made by Western Power on such shares of Western Power Common Stock or by E-Mobile on such shares
of E-Mobile Common Stock, as the case may be, in accordance with the terms of this Agreement (to the extent permitted under Section 5.1) prior to the date hereof and which remain unpaid at the
Effective Time, and from and after the Effective Time there shall be no further registration of transfers on the stock transfer books of the Western Power Surviving Corporation or the E-Mobile
Surviving Corporation, as the case may be, of the shares of Western Power Common Stock or E-Mobile Common Stock, respectively, which were outstanding immediately prior to the Effective Time. If, after
the Effective Time, Certificates are presented to one of the Surviving Corporations or Parent for any reason, such Certificates shall be canceled and exchanged as provided in this Section 2.4. 

    (e)  No Fractional Shares.  No certificate or scrip representing fractional shares of Parent Common Stock
shall be issued upon the surrender for exchange of Certificates, and such fractional share interests will not entitle the owner thereof to cash in lieu of such fractional share, to vote or to any
other rights of a stockholder of Parent. 

    (f)  Termination of Exchange Fund.  Any portion of the Exchange Fund which remains undistributed to the
former stockholders of Western Power or E-Mobile on the 180th day after the Effective Time shall be delivered to Parent upon demand, and any former stockholder of Western Power or E-Mobile who has not
previously complied with this Section 2.4 shall thereafter look only to Parent for payment of such stockholder's claim for Parent Common Stock and any dividends or distributions with respect to Parent
Common Stock. 

    (g)  No Liability.  None of Western Power, E-Mobile or Parent shall be liable to any holder of shares of
Western Power Common Stock or E-Mobile Common Stock, as the case may be, for any shares of Parent Common Stock (or any dividends or distributions with respect thereto) delivered to a public official
pursuant to any applicable abandoned property, escheat or similar law. 

    (h)  Withholding Rights.  Parent and each of the Surviving Corporations shall be entitled to deduct and
withhold from the consideration otherwise payable pursuant to this Agreement to any holder of shares of Western Power Common Stock or E-Mobile Common Stock such amounts as it is required to deduct and
withhold with respect to the making of such payment under the Code, or any provision of state, local or foreign tax law. To the extent that amounts are so withheld by Parent or one of the Surviving
Corporations, as the case may be, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the holder of the shares of Western Power Common Stock or E-
Mobile Common Stock, as the case may be, in respect of which such deduction and withholding was made. 

    (i)  Lost Certificates.  If any Certificate shall have been lost, stolen or destroyed, upon the making of
an affidavit of that fact by the person claiming such Certificate to be lost, stolen or destroyed and, if required by Parent or one of the Surviving Corporations, the posting by such 

6

person of a bond in such reasonable amount as Parent or such Surviving Corporation may direct as indemnity against any claim that may be made against it with respect to such Certificate, the Exchange
Agent will issue in exchange for such lost, stolen or destroyed Certificate, the shares of Parent Common Stock, any unpaid dividends and distributions on shares of Parent Common Stock deliverable in
respect thereof pursuant to this Agreement. 

    (j)  Affiliates.  Notwithstanding anything herein to the contrary, Certificates surrendered for exchange
by any Affiliate (as defined in Section 5.11) of Western Power or E-Mobile shall not be exchanged until Parent has received an Affiliate Agreement (as defined in Section 5.11) substantially in the
form of Exhibit C attached hereto from such Affiliate. 

    (k)  Definitions.  

	1.
	Aggregate Western Power Shares. The "Aggregate Western Power Shares" shall mean the aggregate number of shares of Western Power
Common Stock (on a fully diluted basis assuming the exercise of all outstanding options and warrants and the conversion of any and all instruments or securities which are convertible into equity
securities) outstanding immediately prior to the Effective Time.

	2.
	Aggregate Western Power Share Number. The "Aggregate Western Power Share Number" shall mean such number of newly issued shares of
Parent Common Stock that, when issued to the shareholders of Western Power at the Effective Time and including all shares of Parent Common Stock issuable upon the exercise of the options described in
Section 2.1(d) above, will result in the shareholders, and upon exercise of the options described in Section 2.1(d) by current option holders, of Western Power owning 7% of the total number of issued
and outstanding shares of Parent Common Stock (after giving effect to such issuance but excluding from the total outstanding shares the shares issuable pursuant to Section 5.15 below and shares issued
pursuant to or underlying E-Mobile Stock Options) rounded to the nearest whole share (with all fractions of a share being rounded up).

	3.
	Western Power Exchange Ratio. The "Western Power Exchange Ratio" shall mean a fraction (A) the numerator of which is equal to the
Aggregate Western Power Share Number and (B) the denominator of which is equal to the Aggregate Western Power Shares. 

    (l)  Relative Percentage Ownership.  Notwithstanding anything contained in this Section 2.4 to the
contrary, the aggregate number of shares issued hereunder to shareholders of E-Mobile (excluding shares issued pursuant to Section 5.15 and shares issued pursuant to or underlying E-Mobile Stock
Options) shall constitute 93% of the total number of issued and outstanding shares of Parent Common Stock at the Effective Time on a fully-diluted basis (excluding shares issued pursuant to Section
5.15 and shares issued pursuant to or underlying the E-Mobile Stock Options). 

    SECTION
2.5.  Dissenting Shares.  Any Western Power Common Stock or E-Mobile Common Stock held by a
holder who dissents from the Western Power Merger or the E-Mobile Merger and becomes entitled to obtain payment for the value of such Western Power Common Stock or E-Mobile Common Stock pursuant to
the applicable provisions of Delaware law shall be herein called "Dissenting Shares." Any Dissenting Share shall not, after the Effective Time, be entitled to vote for any purpose or receive any
dividends or other distributions and shall not be converted into Parent Common Stock; provided, however, that Western Power Common Stock or E-Mobile Common Stock held by a dissenting shareholder who
subsequently withdraws a demand for payment, fails to comply fully with the requirements of Delaware law, or otherwise fails to establish the right of such shareholder to be paid the value of such
shareholder's shares under Delaware law shall be deemed to 

7

be have been converted into Parent Common Stock pursuant to the terms and conditions referred to above. 

  ARTICLE III.
       REPRESENTATIONS AND WARRANTIES OF WESTERN POWER         

    Western Power represents and warrants to E-Mobile that the statements contained in this Article III are true and correct except as set forth herein and in the
disclosure schedules, attached hereto as Exhibit G, delivered by Western Power to E-Mobile on or before the date of this Agreement (the "Western Power Disclosure Schedule"). The Western Power
Disclosure Schedule shall be arranged in paragraphs corresponding to the numbered and lettered paragraphs contained in this Article III and
the disclosure in any paragraph shall qualify other paragraphs in this Article III only to the extent that it is reasonably apparent from a reading of such disclosure that it also qualifies or applies
to such other paragraphs. 

    SECTION
3.1.  Organization of Western Power.  Each of Western Power and any corporation or other
organization a majority of the voting securities of which are owned by Western Power ("Subsidiaries") is a corporation duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation. 

    SECTION
3.2.  Western Power Capital Structure.  

    (a) The
authorized capital stock of Western Power consists of 20,000,000 shares of Common Stock, $.001 par value, and 5,000,000 shares of preferred stock, $.01 par
value. As of the date hereof, (i) 3,328,162 shares of Western Power Common Stock were issued and outstanding, all of which are validly issued, fully paid and nonassessable, (ii) no shares of Western
Power Common Stock were held in the treasury of Western Power or by Subsidiaries of Western Power, and (iii) no shares of Western Power preferred stock were issued and outstanding. The Western Power
Disclosure Schedule shows the number of shares of Western Power Common Stock reserved for future issuance pursuant to stock options granted and outstanding as of the date hereof, the plans under which
such options were granted and award agreements pursuant to which "non-plan" options were granted (collectively, the "Western Power Stock Plans"), and the entities or persons to whom such options were
granted. As of the date hereof, no other shares of capital stock are issued and outstanding. All shares of Western Power Common Stock subject to issuance as specified above are duly authorized and,
upon issuance on the terms and conditions specified in the instruments pursuant to which they are issuable, shall be validly issued, fully paid and nonassessable. There are no obligations, contingent
or otherwise, of Western Power or any of its Subsidiaries to repurchase, redeem or otherwise acquire any shares of Western Power Common Stock or the capital stock of any Subsidiary or to provide funds
to or make any material investment (in the form of a loan, capital contribution or otherwise) in any such Subsidiary or any other entity other than guarantees of bank obligations of Subsidiaries
entered into in the ordinary course of business. All of the outstanding shares of capital stock of each of Western Power's Subsidiaries are duly authorized, validly issued, fully paid and
nonassessable and all such shares (other than directors' qualifying shares in the case of foreign Subsidiaries) are owned by Western Power or another Subsidiary free and clear of all security
interests, liens, claims, pledges, agreements, limitations in Western Power's voting rights, charges or other encumbrances of any nature. 

    (b) Except
as set forth in this Section 3.2 or as reserved for future grants of options under the Western Power Stock Plans, (i) there are no equity securities of any
class of Western Power or any of its Subsidiaries, or any security exchangeable into or exercisable for such equity securities, issued, reserved
for issuance or outstanding; (ii) there are no options, warrants, equity securities, calls, rights, commitments or agreements of any character to which Western Power or any of its 

8

Subsidiaries is a party or by which it is bound obligating Western Power or any of its Subsidiaries to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of capital
stock of Western Power or any of its Subsidiaries or obligating Western Power or any of its Subsidiaries to grant, extend, accelerate the vesting of or enter into any such option, warrant, equity
security, call, right, commitment or agreement; and (iii) to the best knowledge of Western Power, there are no voting trusts, proxies or other voting agreements or understandings with respect to the
shares of capital stock of Western Power. 

    SECTION
3.3.  uthority; No Conflict; Required Filings and Consents.  

    (a) Western
Power has all requisite corporate power and authority to enter into this Agreement and each of the Transaction Documents (as defined below) to which it is a
party and to consummate the transactions contemplated by this Agreement and each of the Transaction Documents to which it is a party. The execution and delivery of this Agreement and each of the
Transaction Documents to which it is a party and the consummation of the transactions contemplated by this Agreement and each of the Transaction Documents to which it is a party by Western Power have
been duly authorized by all necessary corporate action on the part of Western Power, subject only to the approval and adoption of this Agreement by Western Power's stockholders under the DGCL. This
Agreement and each of the Transaction Documents to which it is a party have been duly executed and delivered by Western Power and constitute the valid and binding obligations of Western Power,
enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting
creditors' rights and to general equitable principles (the "Bankruptcy and Equity Exception"). "Transaction Documents" means the Asset Purchase and Sale Agreement (as defined below)and Consents
approving the Asset Purchase and Sale Agreement between Deutsche Financial Services ("Bank") and Western Power (the "Bank Consent Agreement") and between Case Corporation ("Case") and Western Power
(the "Case Consent Agreement"), each dated as of the date hereof. 

    (b) The
execution and delivery of this Agreement and each of the Transaction Documents to which it is a party by Western Power does not, and the consummation of the
transactions contemplated by this Agreement and each of the Transaction Documents to which it is a party will not conflict with, or result in any violation or breach of, any provision of the Articles
of Incorporation or Bylaws of Western Power or any of its Subsidiaries. 

    (c) No
consent, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental
authority or instrumentality ("Governmental Entity") is required by or with respect to Western Power or any of its Subsidiaries in connection with the execution and delivery of this Agreement and each
of the Transaction Documents to which it is a party or the consummation of the transactions contemplated hereby or thereby, except for (i) the filing of an Articles of Merger with respect to the
Western Power Merger with the Delaware Secretary of State, (ii) the filing of the Joint Proxy Statement/Prospectus (as defined in Section 3.14 below) with the Securities and Exchange Commission (the
"SEC") in accordance with the Securities Act of 1933, as amended (the "Securities Act") and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), (iii) such consents, approvals,
orders, authorizations, registrations, declarations and filings as may be required under applicable state or foreign securities laws, and (v) such other consents, authorizations, filings, approvals
and registrations which, if not obtained or made, would not be reasonably likely to have a Western Power Material Adverse Effect. 

9

 

    SECTION
3.4.  SEC Filings.  Western Power has filed all forms, reports and documents required to be filed
by Western Power with the SEC since January 1, 1995 (collectively, the "Western Power SEC Reports"). The Western Power SEC Reports (i) at the time filed, complied in all material respects with the
applicable requirements of the Securities Act and the Exchange Act, as the case may be, and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the date of this
Agreement, then on the date of such filing) contain any untrue statement of a material fact or omit to state a material fact required to be stated in such Western Power SEC Reports or necessary in
order to make the statements in such Western Power SEC Reports, in the light of the circumstances under which they were made, not misleading. None of Western Power's Subsidiaries is required to file
any forms, reports or other documents with the SEC. 

    SECTION
3.5.  No Liabilities.  Except as permitted by the Asset Purchase and Sale Agreement, Western
Power will have no liablities of any nature as of the Closing Date. 

    SECTION
3.6.  Taxes.  

    (a) For
the purposes of this Agreement, a "Tax" or, collectively, "Taxes," means any and all federal, state, local and foreign taxes, assessments and other governmental
charges, duties, impositions and liabilities, including taxes based upon or measured by gross receipts, income, profits, sales, use and occupation, and value added, ad valorem, transfer, gains,
franchise, withholding, payroll, recapture, employment, excise, unemployment insurance, social security, business license, occupation, business organization, stamp, environmental and property taxes,
together with all interest, penalties and additions imposed with respect to such amounts. For purposes of this Agreement, "Taxes" also includes any obligations under any agreements or arrangements
with any other person with respect to Taxes of such other person (including pursuant to Treas. Reg. sec. 1.1502-6 or comparable provisions of state, local or foreign tax law) and including any
liability for Taxes of any predecessor entity. 

    (b) Western
Power and each of its Subsidiaries have (i) filed all federal, state, local and foreign Tax returns and reports required to be filed by them prior to the
date of this Agreement (taking into account all applicable extensions), (ii) paid or accrued all Taxes due and payable, and (iii) paid or accrued all Taxes for which a notice of assessment or
collection has been received (other than amounts being contested in good faith by appropriate proceedings), except in the case of clauses (i), (ii) or (iii) for any such filings, payments or accruals
that are not reasonably likely, individually or in the aggregate, to have a Western Power Material Adverse Effect. There are no audits known by Western Power to be pending or contemplated with respect
to Western Power's tax returns. Neither the Internal Revenue
Service (the "IRS") nor any other taxing authority has asserted any claim for Taxes, or to the actual knowledge of the executive officers of Western Power, is threatening to assert any claims for
Taxes, which claims, individually or in the aggregate, are reasonably likely to have a Western Power Material Adverse Effect. Western Power and each of its Subsidiaries have withheld or collected and
paid over to the appropriate governmental authorities (or are properly holding for such payment) all Taxes required by law to be withheld or collected, except for amounts that are not reasonably
likely, individually or in the aggregate, to have a Western Power Material Adverse Effect. Neither Western Power nor any of its Subsidiaries has made an election under Section 341(f) of the Code,
except for any such elections that are not reasonably likely, individually or in the aggregate, to have a Western Power Material Adverse Effect. There are no liens for Taxes upon the assets of Western
Power or any of its Subsidiaries (other than liens for Taxes that are not yet due or that are being contested in good faith by appropriate proceedings), except for liens that are not reasonably
likely, individually or in the aggregate, to have a Western Power Material Adverse Effect. No extension of a statute of limitations relating to any Taxes is in effect with respect to Western Power and
its Subsidiaries. 

10

    (c) Neither Western Power nor any of its Subsidiaries has been a member of an affiliated group of corporations filing a consolidated federal income tax return (or a
group of corporations filing a consolidated, combined or unitary income tax return under comparable provisions of state, local or foreign tax law) for any taxable period beginning on or after December
31, 1998, other than a group the common parent of which was Western Power or any Subsidiary of Western Power. 

    (d) Neither
Western Power nor any of its Subsidiaries has any obligation under any agreement or arrangement with any other person with respect to Taxes of such other
person (including pursuant to Treas. Reg. Sec. 1.1502-6 or comparable provisions of state, local or foreign tax law) and including any liability for Taxes of any predecessor entity, except for
obligations that are not reasonably likely, individually or in the aggregate, to have a Western Power Material Adverse Effect. 

    SECTION
3.7.  Litigation.  Except as described in the Western Power SEC Reports filed prior to the date
hereof, there is no action, suit or proceeding, claim, arbitration or investigation against Western Power or any of its Subsidiaries, officers or directors related to Western Power, pending or as to
which Western Power or any of its Subsidiaries has received any written notice of assertion, which, individually or in the aggregate, is reasonably likely to have a Western Power Material Adverse
Effect or a material adverse effect on the ability of Western Power to consummate the transactions contemplated by this Agreement. 

    SECTION
3.8.  Employment and Consulting Relationships.  

    (a) As
of the Closing Date, Western Power will have no (i) employee benefit plans ("Employee Benefit Plans"), as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), (ii) written employment agreements to which Western Power will be a party, (iii) written consulting agreements to which Western Power will be a
party, or (iv) compensation, benefit or severance arrangements maintained by Western Power. 

    (b) None
of the execution and delivery of this Agreement or any of the Transaction Documents or the consummation of the transactions contemplated hereunder or
thereunder will trigger any "change of control" or similar provisions resulting in the acceleration of benefits or compensation with respect to any agreements with any officer or other key employee of
Western Power or any of its Subsidiaries. 

    SECTION
3.9.  Accounting and Tax Matters.  

    (a) To
the knowledge of Western Power and its Subsidiaries, after consulting with its independent auditors, neither Western Power nor any of its Affiliates (as defined
in Section 5.11) has taken or agreed to take any action which would prevent the Western Power Merger, and the Mergers, from constituting a transaction qualifying as a transfer under Section 351 of the
Code. 

    (b) To
the knowledge of Western Power and its Subsidiaries, the stockholders of Western Power have no present plan, intention or arrangement to sell or otherwise
dispose of any of the Parent Common Stock received in the Western Power Merger that would cause the Western Power Merger or the Mergers to fail to qualify as transfers under Section 351 of the Code. 

    SECTION
3.10.  Registration Statement; Joint Proxy Statement/Prospectus.  The information to be supplied
by Western Power or its Subsidiaries or about Western Power or its Subsidiaries by Western Power's agents for inclusion in the registration statement on Form S-4 pursuant to which shares of Parent
Common Stock issued in the Mergers will be registered under the Securities Act (the "Registration Statement"), shall not at the time the Registration Statement is declared effective by the SEC contain
any untrue statement of a material fact or omit to state any material fact required to be stated in the Registration Statement or necessary in order to make the statements in the Registration 

11

Statement, in light of the circumstances under which they were made, not misleading. The information supplied by Western Power or its Subsidiaries for inclusion in the joint proxy statement/prospectus
to be sent to the stockholders of E-Mobile and Western Power in connection with the meeting of Western Power' stockholders (the "Western Power Stockholders' Meeting") and the meeting of E-Mobile's
stockholders (the "E-Mobile Stockholders' Meeting") to consider this Agreement and the Mergers (the "Joint Proxy Statement/Prospectus") shall not, on the date the Joint Proxy Statement/Prospectus is
first mailed to stockholders of Western Power or E-Mobile, at the time of the Western Power Stockholders' Meeting and the E-Mobile Stockholders' Meeting and at the Effective Time, contain any
statement which, at such time and in light of the circumstances under which it shall be made, is false or misleading with respect to any material fact, omit to state any material fact necessary in
order to make the statements made in the Joint Proxy Statement/Prospectus not false or misleading, or omit to state any material fact necessary to correct any statement in any earlier communication
with respect to the solicitation of proxies for the Western Power Stockholders' Meeting or the E-Mobile Stockholders' Meeting which has become false or misleading. If at any time prior to the
Effective Time any event relating to Western Power or any of its Affiliates, officers or directors should be discovered by Western Power which should be set forth in an amendment to the Registration
Statement or a supplement to the Joint Proxy Statement/Prospectus, Western Power shall promptly inform E-Mobile. 

    SECTION
3.11.  No Existing Discussions.  As of the date hereof, neither Western Power nor any of its
Affiliates is engaged, directly or indirectly, in any discussions or negotiations with any other party with respect to an Acquisition Proposal (as defined in Section 5.3). 

    SECTION
3.12.  Section 203 of the DGCL Not Applicable.  The Board of Directors of Western Power has taken
all actions necessary under the DGCL, including approving the transactions contemplated by this Agreement and each of the Transaction Documents to which it is a party, to ensure that Section 203 of
the DGCL applicable to a "business combination" (as defined in Section 203 of the DGCL) does not, and will not, apply to the transactions contemplated hereunder and thereunder. Western Power has no
prior knowledge that any other "fair price," "moratorium," "control share acquisition" or other similar anti-takeover statute or regulation is applicable to Western Power or (by reason of Western
Power's participation therein) the Western Power Merger or the other transactions contemplated by this Agreement or the other Transaction Documents to which it is a party. 

    SECTION
3.13  Complete Disclosure.  No representation or warranty of Western Power which is contained in
the Agreement, or in a writing furnished or to be furnished pursuant to the Agreement contains or shall contain any untrue statement of fact, omits or shall omit to state any fact which is required to
make the statements which are contained herein or therein, in light of the circumstances under which they were made, not misleading. There is no fact relating to the business, affairs, operations,
conditions (financial or otherwise) or prospects of Western Power which would materially adversely affect same which has not been disclosed in the Agreement or the Exhibits which are annexed hereto. 

    SECTION
3.14  No Defense.  It shall not be a defense to a suit for damages for any misrepresentation or
breach of covenant or warranty that Western Power knew or had reason to know that any covenant, representation or warranty in the Agreement or furnished or to be furnished to Western Power contained
untrue statements. 

  ARTICLE IV.
       REPRESENTATIONS AND WARRANTIES OF E-MOBILE         

    E-Mobile represents and warrants to Western Power that the statements contained in this Article IV are true and correct, except as set forth on the disclosure
schedules, attached hereto as Exhibit H, delivered by E-Mobile to Western Power on or before the date of this Agreement (the "E-Mobile Disclosure Schedule"). The E-Mobile Disclosure Schedule shall be
arranged in paragraphs 

12

corresponding to the numbered and lettered paragraphs contained in this Article IV and the disclosure in any paragraph shall qualify other paragraphs in this Article IV only to the extent that it is
reasonably apparent from a reading of such document that it also qualifies or applies to such other paragraphs. 

    SECTION
4.1.  Organization of E-Mobile.  Each of E-Mobile and E-Mobile's Material Subsidiaries (as
defined below) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, has all requisite corporate power to own, lease and
operate its property and to carry on its business as now being conducted and as proposed to be conducted pursuant to the Business Plan, and is duly qualified to do business and is in good standing as
a foreign corporation in each jurisdiction in which the failure to be so qualified would have a material adverse effect on the business, properties, financial condition or results of operations of
E-Mobile and its Subsidiaries, taken as a whole (a "Material Adverse Effect"). Neither E-Mobile nor any of its Subsidiaries directly or indirectly owns (other than ownership interests in E-Mobile or
in one or more of its Subsidiaries) any equity or similar interest in, or any interest that is mandatorily convertible into or exchangeable or exercisable for, any corporation, partnership, joint
venture or other business association or entity, excluding securities in any publicly traded company held for investment by E-Mobile and comprising less than five percent (5%) of the outstanding stock
of such company. True, correct and complete copies of the Certificate of Incorporation and Bylaws of E-Mobile are attached hereto as Exhibits K and L, respectively. A true, correct and complete copy
of the Certificate of Incorporation and other similar organizational documents of each of E-Mobile's Material Subsidiaries (as defined below) has been delivered to Western Power. "E-Mobile's Material
Subsidiaries" shall mean those subsidiaries of E-Mobile set forth on the E-Mobile Disclosure Schedule, which Subsidiaries
constitute all of E-Mobile's "significant subsidiaries" as defined in Rule 1-02 of Regulation S-X under the Securities Act. 

    SECTION
4.2.  E-Mobile Capital Structure.  

    (a) The
authorized capital stock of E-Mobile consists of 200,000,000 shares of Common Stock, $0.000001 par value, and 1,000,000 shares of Preferred Stock, $0.000001 par
value. As of the date hereof, (i) 52,000,000 shares of E-Mobile Common Stock were issued and outstanding, all of which are validly issued, fully paid and nonassessable, (ii) no shares of E-Mobile
Common Stock were held in the treasury of E-Mobile or by Subsidiaries of E-Mobile, and (iii) no shares of E-Mobile Preferred Stock were issued and outstanding. The E-Mobile Disclosure Schedule shows
the number of shares of E-Mobile Common Stock reserved for future issuance pursuant to stock option plans (the "E-Mobile Stock Plans") or otherwise. All shares of E-Mobile Common Stock subject to
issuance as specified above are duly authorized and, upon issuance on the terms and conditions specified in the instruments pursuant to which they are issuable, shall be validly issued, fully paid and
nonassessable. There are no obligations, contingent or otherwise, of E-Mobile or any of its Subsidiaries to repurchase, redeem or otherwise acquire any shares of E-Mobile Common Stock or the capital
stock of any Subsidiary or to provide funds to or make any material investment (in the form of a loan, capital contribution or otherwise) in any such Subsidiary or any other entity other than
guarantees of bank obligations of Subsidiaries entered into in the ordinary course of business. All of the outstanding shares of capital stock of each of E-Mobile's Subsidiaries are duly authorized,
validly issued, fully paid and nonassessable and all such shares (other than directors' qualifying shares in the case of foreign Subsidiaries) are beneficially owned by E-Mobile or another Subsidiary
free and clear of all security interests, liens, claims, pledges, agreements, limitations in E-Mobile's voting rights, charges or other encumbrances of any nature. 

    (b) Except
as set forth in this Section 4.2 or as reserved for future grants of options under the E-Mobile Stock Plans, (i) there are no equity securities of any class
of E-Mobile or any of its Subsidiaries, or any security exchangeable into or exercisable for such equity securities, issued, reserved for issuance or outstanding; (ii) there are no options, warrants,
equity securities, calls, rights, commitments or agreements of any character to which E-Mobile or any of its Subsidiaries is 

13

a party or by which it is bound obligating E-Mobile or any of its Subsidiaries to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of capital stock of E-Mobile or
any of its Subsidiaries or obligating E-Mobile or any of its Subsidiaries to grant, extend, accelerate the vesting of or enter into any such option, warrant, equity security, call, right, commitment
or agreement; and (iii) to the best knowledge of E-Mobile, there are no voting trusts, proxies or other voting agreements or understandings with respect to the shares of capital stock of E-Mobile. 

    SECTION
4.3.  Authority; No Conflict; Required Filings and Consents.  

    (a) E-Mobile
has all requisite corporate power and authority to enter into this Agreement and each of the Transaction Documents to which it is a party and to consummate
the transactions contemplated by this Agreement and each of the Transaction Documents to which it is a party. The execution and delivery of this Agreement and each of the Transactions Documents to
which it is a party and the consummation of the transactions contemplated by this Agreement and each of the Transaction Documents to which it is a party by E-Mobile have been duly authorized by all
necessary corporate action on the part of E-Mobile, subject only to the approval and adoption of this Agreement by E-Mobile's stockholders under the DGCL. This Agreement and each of the Transaction
Documents to which it is a party have been duly executed and delivered by E-Mobile and constitute the valid and binding obligations of E-Mobile, enforceable in accordance with their terms, subject to
the Bankruptcy and Equity Exception. 

    (b) The
execution and delivery of this Agreement and each of the Transaction Documents to which it is a party by E-Mobile does not, and the consummation of the
transactions contemplated by this Agreement and each of the Transaction Documents to which it is a party will not, (i) conflict with, or result in any violation or breach of, any provision of
the Certificate of Incorporation or Bylaws of E-Mobile or any of its Subsidiaries, (ii) result in any violation or breach of, or constitute (with or without notice or lapse of time, or both) a
default (or give rise to a right of termination, cancellation or acceleration of any obligation or loss of any material benefit) under, or require a consent or waiver under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, lease, contract or other agreement, instrument or obligation to which E-Mobile or any of its Subsidiaries is a party or by which any of
them or any of their properties or assets may be bound, or (iii) conflict with or violate any permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or
regulation applicable to E-Mobile or any of its Subsidiaries or any of its or their properties or assets, except in the case of (ii) and (iii) for any such conflicts, violations, defaults,
terminations, cancellations or accelerations which are not, individually or in the aggregate, reasonably likely to have a E-Mobile Material Adverse Effect. 

    (c) No
consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required by or with respect to E-Mobile or
any of its Subsidiaries in connection with the execution and delivery of this Agreement and each of the Transaction Documents to which it is a party or the consummation of the transactions
contemplated hereby or thereby, except for (i) the filing of a Certificate of Merger with respect to the E-Mobile Merger with the Delaware Secretary of State, (ii) the filing of the Joint Proxy
Statement/Prospectus with the SEC in accordance with the Exchange Act, (iii) such consents, approvals, orders, authorizations, registrations, declarations and filings as may be required under
applicable state or foreign securities laws, and (iv) such other
consents, authorizations, filings, approvals and registrations which, if not obtained or made, would not be reasonably likely to have a E-Mobile Material Adverse Effect. 

    SECTION
4.4.  Business Plan.  E-Mobile has been formed, capitalized and operated to date, and until the
Effective Time will be capitalized and operated, consistent with a business plan (the "Business Plan"), a copy of which is attached hereto as Exhibit I. 

14

    SECTION 4.5.  Financial Statements.  E-Mobile is newly formed and, except as contemplated in the Business
Plan, has no material assets and, through the date hereof, has had no material operations. A copy of the unaudited balance sheet and statement of operations of E-Mobile as of, and for the period from
inception to, September 30, 2000, is included with the E-Mobile Disclosure Schedules. E-Mobile will prepare and deliver to Parent unaudited financial statements and such other financial statements,
whether audited or unaudited, as may be required by Parent to comply with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Any such financial
statements so delivered by E-Mobile shall be prepared in conformity with generally accepted accounting principles applied on a consistent basis throughout the periods involved ("GAAP"). 

    SECTION
4.6.  Licenses and Permits.  E-Mobile has each of the operating licenses and permits listed on
the E-Mobile Disclosure Schedule, which constitute all of the material licenses and permits which E-Mobile is required to have to carry on its business as presently conducted and as set forth in the
Business Plan. All such licenses and permits are in full force and effect in accordance with their terms. There exists no event, occurrence, condition or act which, with the giving of notice, the
lapse of time or the happening of any further condition would become a default under any of the licenses or permits. None of the licenses or permits will be canceled or revoked, nor become void, as a
result of the transactions provided for by this Agreement. 

    SECTION
4.7.  Leases.  E-Mobile is not a party to any leases of real and personal property. All leases,
if any, described in the E-Mobile Disclosure Schedule are in all material respects in full force and effect in accordance with their terms. There exists no event, occurrence, condition or act which,
with the giving of notice, the lapse of time, or the happening of any further event, occurrence, condition or act, would become a material default under any of the leases. E-Mobile has not violated
any term of any lease and is in compliance with all material obligations to be performed pursuant to each lease. E-Mobile has obtained a certificate of occupancy, for each location owned or leased by
it. E-Mobile's use of leasehold properties does not violate any certificates of occupancy, or violate any zoning laws or regulations. E-Mobile has not received any complaint that the use of any leased
properties constitutes a noxious use. 

    SECTION
4.8.  Property.  

    (a) E-Mobile
owns no real property. 

    (b) All
property of E-Mobile (except leased property and real property) is owned free and clear of any mortgage, pledge, lien, conditional sale or security agreement,
encumbrance or charge. E-Mobile is not in default under any conditional sales agreement. All of E-Mobile's properties and equipment are in good working order and operating condition and repair and
shall be in good working order and operating condition and repair. 

    SECTION
4.9.  Contracts.  E-Mobile is not party to any material contracts (other than the leases and
insurance contracts described in Section 4.7 and Section 4.23) including, but not limited to, license agreements. All of the contracts listed in the E-Mobile Disclosure Schedule have been entered into
in the ordinary course of business and neither E-Mobile nor any other party to any such contract is in default under any such contract. 

    SECTION
4.10.  No Undisclosed Liabilities.  Neither E-Mobile nor any of its subsidiaries has any material
liabilities or obligations of any nature, whether or not accrued, contingent or otherwise, and there is no existing condition, situation or set of circumstances known to E-Mobile which could be
expected to result in such a liability or obligation, except (a) liabilities or obligations reflected in the E-Mobile financial statements provided from time to time and (b) liabilities or obligations
incurred in the ordinary course of business which do not and would not reasonably be expected to have, individually or in the aggregate, an E-Mobile Material Adverse Effect. 

15

    SECTION 4.11.  Guarantor of Payment.  E-Mobile is not a guarantor of payment or collection of any
obligation. 

    SECTION
4.12.  Absence of Certain Changes or Events.  Since the date of the Business Plan, E-Mobile and
its Subsidiaries have conducted their businesses only in the ordinary course and in a manner consistent with the Business Plan and its financial statements and, since such date, there has not been
(i) any
Material Adverse Change in E-Mobile and its Subsidiaries, taken as a whole (other than changes that are the effect or result of economic factors affecting the economy as a whole or the industry in
which E-Mobile competes) or any development or combination of developments of which the management of E-Mobile is aware that, individually or in the aggregate, has had, or is reasonably likely to
have, a E-Mobile Material Adverse Effect (other than changes that are the effect or result of economic factors affecting the economy as a whole or the industry in which E-Mobile competes);
(ii) any damage, destruction or loss (whether or not covered by insurance) with respect to E-Mobile or any of its Subsidiaries having a E-Mobile Material Adverse Effect; (iii) any
material change by E-Mobile or its Subsidiaries in their respective accounting methods, principles or practices; or (iv) any other action or event that would have required the consent of
Western Power pursuant to Section 5.1 of this Agreement had such action or event occurred after the date of this Agreement and that, individually or in the aggregate, has had or is reasonably likely
to have a E-Mobile Material Adverse Effect. 

    SECTION
4.13.  Taxes.  As of the date hereof, E-Mobile has not been required to file any Tax return and
has not paid, or been required to pay, any material Taxes and is not subject to, and has not been subject to, any audits, administrative or court proceedings or claims with respect to Taxes. 

    SECTION
4.14.  Intellectual Property.  Other than as set forth in the E-Mobile Disclosure Schedule, each
of E-Mobile and its Subsidiaries owns, or is licensed or otherwise possesses legally enforceable rights to use, all patents, trademarks, trade names, service marks, copyrights, applications for such
patents, trademarks, trade names, service marks and copyrights, technology, know-how, processes, computer software programs or applications, and other intellectual property and tangible or intangible
proprietary information or material which are necessary to conduct, or to be used in the conduct, of its business as currently conducted and as proposed to be conducted, as set forth in the Business
Plan, including, but not limited to, the Brainze and Bluetooth technology. Neither E-Mobile or any of its Subsidiaries have received any notice of any claims, have knowledge of any threatened claims,
nor know of any facts which would form the basis of any claim, asserted by any person, to the effect that the sale or use of any product or process now used or offered by E-Mobile or any of its
Subsidiaries, or proposed to be sold or used, including, but not limited to, the Brainze and Bluetooth technology, infringes on any patents or infringes upon the use of any such trademarks, trade
names, service marks, copyrights, technology, know-how, computer software programs or applications, processes or other intellectual property of another person or challenges or questions the validity
or effectiveness of any such license or agreement. The sale and use of any such products and processes by E-Mobile and its Subsidiaries, and the use of any such patents, trademarks, trade names,
service marks, copyrights, technology, know-how, computer software programs or applications, processes or other intellectual property by E-Mobile and its Subsidiaries, do not infringe upon the rights
of any person. The foregoing provisions of this Section 4.14 of this Agreement shall not be applicable if the cumulative effect of all erroneous representations pursuant to this Section 4.14 of this
Agreement are not reasonably likely to have an E-Mobile Material Adverse Effect. 

    SECTION
4.15.  Agreements, Contracts and Commitments.  Neither E-Mobile nor any of its Subsidiaries has
breached, or received in writing any claim or notice that it has breached, any of the terms or conditions of any material agreement, contract or commitment which would be required to be filed as an
exhibit under Item 601 of Regulation S-K under the Securities Act ("E-Mobile Material Contracts") in such a manner as, individually or in the aggregate, is reasonably likely to have a E- 

16

Mobile Material Adverse Effect. Each E-Mobile Material Contract that has not expired by its terms is in full force and effect. 

    SECTION
4.16.  Litigation.  There is no action, suit or proceeding, claim, arbitration or investigation
against E-Mobile or any of its Subsidiaries, officers or directors related to E-Mobile, pending or as to which E-Mobile or any of its Subsidiaries has received any written notice of assertion, which,
individually or in the aggregate, is reasonably likely to have a E-Mobile Material Adverse Effect or a material adverse effect on the ability of E-Mobile to consummate the transactions contemplated by
this Agreement. 

    SECTION
4.17.  Environmental Matters.  

    (a) To
the knowledge of E-Mobile and its Subsidiaries, except for such matters that, individually or in the aggregate, are not reasonably likely to have a E-Mobile
Material Adverse Effect: (i) E-Mobile and its Subsidiaries are in material compliance with all applicable environmental laws; (ii) the properties currently owned or operated by E-Mobile and its
Subsidiaries (including soils, groundwater, surface water, buildings or other structures) are not contaminated with any hazardous substances; (iii) the properties formerly owned or operated by
E-Mobile or any of its Subsidiaries were not contaminated with hazardous substances during the period of ownership or operation by E-Mobile or any of its Subsidiaries; (iv) neither E-Mobile nor its
Subsidiaries are subject to liability for any hazardous substance disposal or contamination on any third party property; (v) neither E-Mobile nor any of its Subsidiaries has been associated with any
release or threat of release of any hazardous substance; (vi) neither E-Mobile nor any of its Subsidiaries has received any written notice, demand, letter, claim or request for information alleging
that E-Mobile or any of its Subsidiaries may be in violation of or liable under any environmental law; (vii) neither E-Mobile nor any of its Subsidiaries is subject to any orders, decrees, injunctions
or other arrangements with any Governmental Entity or is subject to any indemnity or other agreement with any third party relating to liability under any environmental law or relating to hazardous
substances; and (viii) there are no circumstances or conditions involving E-Mobile or any of its Subsidiaries that could reasonably be expected to result in any claims, liability, investigations,
costs or restrictions on the ownership, use or transfer of any property of E-Mobile pursuant to any environmental law. 

    SECTION
4.18.  Employment and Consulting Relationships.  

    (a) E-Mobile
has no (i) Employee Benefit Plans, as defined in Section 3.8(a), (ii) written employment agreements to which E-Mobile is a party, (iii) written consulting
agreements to which E-Mobile is a party, (iv) compensation, benefit or severance arrangements maintained by E-Mobile not otherwise listed above, (v) confidentiality agreements with employees or
consultants, and (vi) restrictive covenants with employees. 

    (b) None
of the execution and delivery of this Agreement or any of the Transaction Documents or the consummation of the transactions contemplated hereunder or
thereunder will trigger any "change of control" or similar provisions resulting in the acceleration of benefits or compensation with respect to any agreements with any officer or other key employee of
E-Mobile or any of its Subsidiaries. 

    SECTION
4.19.  Compliance With Laws.  Each of E-Mobile and its Subsidiaries has complied with, is not in
violation of, and has not received any notices of violation with respect to, any federal, state or local statute, law or regulation with respect to the conduct of its business, or the ownership or
operation of its business, except for failures to comply or violations which, individually or in the aggregate, have not had and are not reasonably likely to have a E-Mobile Material Adverse Effect. 

17

    SECTION 4.20.  Accounting and Tax Matters.  

    (a) To
the knowledge of E-Mobile and its Subsidiaries, after consulting with its independent auditors, neither E-Mobile nor any of its Affiliates (as defined in Section
5.11) has taken or agreed to take any action which would prevent the Mergers from constituting transactions qualifying as transfers under Section 351 of the Code. 

    (b) To
the knowledge of E-Mobile and its Subsidiaries, the stockholders of E-Mobile have no present plan, intention or arrangement to sell or otherwise dispose of any
of the Parent Common Stock received in the E-Mobile Merger that would cause the Mergers to fail to qualify as transfers under Section 351 of the Code. 

    SECTION
4.21.  Registration Statement; Joint Proxy Statement/Prospectus.  The information to be supplied
by E-Mobile or its Subsidiaries or about E-Mobile or its Subsidiaries by E-Mobile's agents for inclusion in the Registration Statement shall not at the time the Registration Statement is declared
effective by the SEC contain any untrue statement of a material fact or omit to state any material fact required to be stated in the Registration Statement or necessary in order to make the statements
in the Registration Statement, in light of the circumstances under which they were made, not misleading. The information to be supplied by E-Mobile or its Subsidiaries or about E-Mobile or its
Subsidiaries by E-Mobile's agents for inclusion in the Joint Proxy Statement/Prospectus shall not, on the date the Joint Proxy Statement/Prospectus is first mailed to stockholders of E-Mobile or
Western Power, at the time of the E-Mobile Stockholders' Meeting and the Western Power Stockholders' Meeting and at the Effective Time, contain any statement which, at such time and in light of the
circumstances under which it shall be made, is false or misleading with respect to any material fact, omit to state any material fact necessary in order to make the statements made in the Joint Proxy
Statement/Prospectus not false or misleading, or omit to state any material fact necessary to correct any statement in any earlier communication with respect to the solicitation of proxies for the
E-Mobile Stockholders' Meeting or the Western Power Stockholders' Meeting which has become false or misleading. If at any time prior to the Effective Time any event relating to E-Mobile or any of its
Affiliates, officers or directors should be discovered by E-Mobile which should be set forth in an amendment to the Registration Statement or a supplement to the Joint Proxy Statement/Prospectus,
E-Mobile shall promptly inform Western Power. 

    SECTION
4.22.  Labor Matters.  Neither E-Mobile nor any of its Subsidiaries is a party to or otherwise
bound by any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, nor, as of the date hereof, is E-Mobile or any of its Subsidiaries
the subject of any material proceeding asserting that E-Mobile or any of its Subsidiaries has committed an unfair labor practice or is seeking to compel it to bargain with any labor union or labor
organization nor, as of the date of this Agreement, is there pending or, to the knowledge of the executive officers of E-Mobile, threatened, any material labor strike, dispute, walkout, work stoppage,
slow-down or lockout involving E-Mobile or any of its Subsidiaries. 

    SECTION
4.23.  Insurance.  All material fire and casualty, general liability, business interruption,
product liability, and sprinkler and water damage insurance policies maintained by E-Mobile or any of its Subsidiaries are with reputable insurance carriers, provide full and adequate coverage for all
normal risks incident to the business of E-Mobile and its Subsidiaries and their respective properties and assets, are in character and amount at least equivalent to that carried by persons engaged in
similar businesses and subject to the same or similar perils or hazards and are in full force and effect with premiums being fully paid to date, except for any such failures to maintain insurance
policies that, individually or in the aggregate, are not reasonably likely to have a E-Mobile Material Adverse Effect. 

    SECTION
4.24.  No Existing Discussions.  As of the date hereof, neither E-Mobile nor any of its
Affiliates is engaged, directly or indirectly, in any discussions or negotiations with any other party with respect to an Acquisition Proposal. 

18

    SECTION 4.25.  Section 203 of the DGCL Not Applicable.  The Board of Directors of E-Mobile has taken all
actions necessary under the DGCL, including approving the transactions contemplated by this Agreement and each of the Transaction Documents to which it is a party, to ensure that Section 203 of the
DGCL applicable to a "business combination" (as defined in Section 203 of the DGCL) does not, and will not, apply to the transactions contemplated hereunder and thereunder. E-Mobile has no prior
knowledge that any other "fair price," "moratorium," "control share acquisition" or other similar anti-takeover statute or regulation is applicable to E-Mobile or (by reason of E-Mobile's
participation therein) the E-Mobile Merger or the other transactions contemplated by this Agreement or the other Transaction Documents to which it is a party. 

    SECTION
4.26.  Complete Disclosure.  No representation or warranty of E-Mobile which is contained in the
Agreement, or in a writing furnished or to be furnished pursuant to the Agreement contains or shall contain any untrue statement of fact, omits or shall omit to state any fact which is required to
make the statements which are contained herein or therein, in light of the circumstances under which they were made, not misleading. There is no fact relating to the business, affairs, operations,
conditions (financial or otherwise) or prospects of E-Mobile which would materially adversely affect same which has not been disclosed in the Agreement or the Exhibits which are annexed hereto. 

    SECTION
4.27.  No Defense.  It shall not be a defense to a suit for damages for any misrepresentation or
breach of covenant or warranty that E-Mobile knew or had reason to know that any covenant, representation or warranty in the Agreement or furnished or to be furnished to E-Mobile contained untrue
statements. 

  ARTICLE V
       COVENANTS         

    SECTION
5.1.  Conduct of Business.  Except as set forth on Section 5.1 of the Western Power Disclosure
Schedule or the E-Mobile Disclosure Schedule, during the period from the date of this Agreement and continuing until the earlier of the termination of this Agreement or the Effective Time, Western
Power and E-Mobile each agrees as to itself and its respective Subsidiaries (except to the extent that the other party shall otherwise consent in writing) to carry on its business in the usual,
regular and ordinary course in substantially the same manner as previously conducted, or, with regard to E-Mobile, consistent with the Business Plan, to pay its debts and taxes when due, to pay or
perform its other obligations when due, and, to the extent consistent with such business, use all reasonable efforts consistent with past practices and policies to (i) preserve intact its present
business organization, (ii) keep available the services of its present officers and key employees and (iii) preserve its relationships with customers, suppliers, distributors, and others having
business dealings with it. Except as expressly contemplated by this Agreement (including the Exhibits attached hereto) or as set forth on Section 5.1 of the Western Power Disclosure Schedule or the
E-Mobile Disclosure Schedule, and except that actions taken by Western Power and described in Sections 5.1 (a), (e), (f) and (k) shall not require the consent of E-Mobile, during the period from the
date of this Agreement and continuing until the earlier of the termination of this Agreement or the Effective Time, Western Power and E-Mobile each shall not (and shall not permit any of its
respective Subsidiaries to), without the written consent of the other party: 

    (a) Accelerate,
amend or change the period of exercisability of options or restricted stock granted under any employee stock plan of such party or authorize cash
payments in exchange for any options granted under any of such plans, except as required by the terms of such plans or any related agreements in effect as of the date of this Agreement; 

    (b) Declare
or pay any dividends on or make any other distributions (whether in cash, stock or property) in respect of any of its capital stock, or split, combine or
reclassify any of its capital 

19

stock or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of its capital stock, or purchase or otherwise acquire, directly or indirectly,
any shares of its capital stock; 

    (c) Issue,
deliver or sell, or authorize or propose the issuance, delivery or sale of, any shares of its capital stock or securities convertible into or exchangeable
for shares of its capital stock, or subscriptions, rights, warrants or options to acquire, or other agreements or commitments of any character obligating it to issue any such shares or other
convertible securities, other than (i) the grant of options consistent with past practices to employees, officers, directors or consultants, but in no event grant more than the total number of
authorized options available under such party's stock option plans and (ii) the issuance of shares of Western Power Common Stock or E-Mobile Common Stock, as the
case may be, pursuant to the exercise of options or warrants outstanding on the date of this Agreement; 

    (d) Acquire
or agree to acquire by merging or consolidating with, or by purchasing a substantial equity interest in or substantial portion of the assets of, or by any
other manner, any business or any corporation, partnership or other business organization or division, or otherwise acquire or agree to acquire any assets (other than inventory and other items in the
ordinary course of business), except, in the case of E-Mobile, as may be consistent with the Business Plan; 

    (e) Sell,
lease, license, mortgage, pledge, subject to lien, charge or otherwise dispose of any of its properties or assets, except for transactions in the ordinary
course of business; provided, however, that in no event shall either party enter into any agreement, option or other arrangements (including without limitation any joint venture) involving the
licensing of such party's name or system in any foreign country, except for transactions in the ordinary course of business; 

    (f)  except
in accordance with past practices and, in the case of E-Mobile, the Business Plan, (i) increase or agree to increase the compensation payable or to become
payable to its directors, officers, employees or consultants, (ii) grant any additional severance or termination pay to, or enter into any employment or severance agreements with, any consultants,
employees, officers or directors (iii) enter into any collective bargaining agreement (other than as required by law or extensions to existing agreements in the ordinary course of business), or (iv)
establish, adopt, enter into or amend any bonus, profit sharing, thrift, compensation, stock option, restricted stock, pension, retirement, deferred compensation, employment, termination, severance or
other plan, trust, fund, policy or arrangement for the benefit of any directors, officers, employees or consultants; 

    (g) Amend
or propose to amend its Certificate of Incorporation or Articles of Incorporation, as the case may be, or Bylaws; 

    (h) Incur
any obligation or liability (absolute or contingent), including, but not limited to, any debt or guarantee of any debt, or issue or sell any debt securities,
or guarantee any debt securities of others, except for liabilities incurred and obligations under contracts entered in the ordinary course of business; 

    (i)  Take
any action or omit to do any act that would or is reasonably likely to result in a material breach of any provision of this Agreement or any of the
Transaction Documents to which it is a party or in any
of its representations and warranties set forth in this Agreement or any of the Transaction Documents to which it is a party being untrue on and as of the Closing Date; 

    (j)  Make
or rescind any material express or deemed election relating to Taxes, settle or compromise any material claim, action, suit, litigation, proceeding,
arbitration, investigation, audit or controversy relating to Taxes, or change any of its methods of reporting income or deductions for federal income Tax purposes from those employed in the
preparation of its federal income tax 

20

return for the taxable year ending July 31, 2000 with respect to Western Power, except as may be required by applicable law; 

    (k) Settle
any stockholder litigation relating to the transactions contemplated hereby; or 

    (l)  Take,
or agree in writing or otherwise to take, any of the actions described in Sections (a) through (k) above. 

    SECTION
5.2.  Cooperation; Notice; Cure.  Subject to compliance with applicable law, from the date hereof
until the Effective Time, each of Western Power and E-Mobile shall confer on a regular and frequent basis with one or more representatives of the other party to report on the general status of ongoing
operations and shall promptly provide the other party or its counsel with copies of all filings made by such party with the SEC or with any Governmental Entity in connection with this Agreement, the
Mergers and the transactions contemplated hereby and thereby. Each of Western Power and E-Mobile shall notify the other of, and will use all commercially reasonable efforts to cure before the Closing
Date, any event, transaction or circumstance, as soon as practical after it becomes known to such party, that causes or will cause any covenant or agreement of Western Power or E-Mobile under this
Agreement to be breached or that renders or will render untrue any representation or warranty of Western Power or E-Mobile contained in this Agreement. Each of Western Power and E-Mobile also shall
notify the other in writing of, and will use all commercially reasonable efforts to cure, before the Closing Date, any violation or breach, as soon as practical after it becomes known to such party,
of any representation, warranty, covenant or agreement made by Western Power or E-Mobile. No notice given pursuant to this paragraph shall have any effect on the representations, warranties, covenants
or agreements contained in this Agreement for purposes of determining satisfaction of any condition contained herein. 

    SECTION
5.3.  No Solicitation.  Western Power and E-Mobile each shall not, directly or indirectly,
through any officer, director, employee, financial advisor, representative or agent of such party (i) solicit, initiate, or encourage any inquiries or proposals that constitute, or could reasonably be
expected to lead to, a proposal or offer for a merger, consolidation, business combination, sale of substantial assets, sale of shares of capital stock (including without limitation by way of a tender
offer) or similar transaction involving such party or any of its Subsidiaries, other than the transactions contemplated by this Agreement (any of the foregoing inquiries or proposals being referred to
in this Agreement as an "Acquisition Proposal"), (ii) engage in negotiations or discussions with any third party concerning, or provide any nonpublic information to any person or entity relating to,
any Acquisition Proposal, or (iii) agree to or recommend any Acquisition Proposal. 

    SECTION
5.4.  Joint Proxy Statement/Prospectus; Registration Statement.  

    (a) As
promptly as practicable after the execution of this Agreement, Western Power and E-Mobile shall prepare and file with the SEC the Joint Proxy
Statement/Prospectus and will cause Parent to prepare and file with the SEC the Registration Statement in which the Joint Proxy Statement/Prospectus will be included as a prospectus. Western Power and
E-Mobile shall use all reasonable efforts to cause the Registration Statement to become effective as soon after such filing as practical. The Joint Proxy Statement/ Prospectus shall include the
recommendation of the Board of Directors of Western Power in favor of this Agreement and the Western Power Merger and the recommendation of the Board of Directors of E-Mobile in favor of this
Agreement and the E-Mobile Merger. 

    (b) Western
Power and E-Mobile shall make all necessary filings with respect to the Merger under the Securities Act, the Exchange Act, applicable state blue sky laws
and the rules and regulations thereunder. 

21

 

    (c) Western
Power and E-Mobile shall use their best efforts to furnish to each other all information required for any application or other filing to be made pursuant to
the rules and regulations of any applicable law (including all information required to be included in the Joint Proxy Statement/ Prospectus and the Registration Statement) in connection with the
transactions contemplated by this Agreement. 

    SECTION
5.5.  Nasdaq Quotation.  Western Power agrees to use its reasonable best efforts to continue the
quotation of Western Power Common Stock on the Nasdaq Small Cap Market during the term of this Agreement. 

    SECTION
5.6.  Access to Information.  Upon reasonable notice, Western Power and E-Mobile shall each (and
shall cause each of their respective Subsidiaries to) afford to the officers, employees, accountants, counsel and other representatives of the other, access, during normal business hours during the
period prior to the Effective Time, to all its personnel, properties, books, contracts, commitments and records and, during such period, each of Western Power and E-Mobile shall, and shall cause each
of their respective Subsidiaries to, furnish promptly to the other (a) a copy of each report, schedule, registration statement and other document filed or received by it during such period pursuant to
the requirements of federal securities laws and (b) all other information concerning its business, properties and personnel as such other party may reasonably request. The parties will hold any such
information which is nonpublic in confidence. No information or knowledge obtained in any investigation pursuant to this Section 5.6 shall affect or be deemed to modify any representation or warranty
contained in this Agreement or the conditions to the obligations of the parties to consummate the Merger. 

    SECTION
5.7.  Stockholders Meetings.  Western Power and E-Mobile each shall call a meeting of its
respective stockholders to be held as promptly as practicable for the purpose of voting, in the case of Western Power, upon this Agreement and the Western Power Merger and, in the case of E-Mobile,
upon this Agreement and the E-Mobile Merger. Subject to Sections 5.3 and 5.4, Western Power and E-Mobile shall, through their respective Boards of Directors, recommend to their respective stockholders
approval of such matters and shall coordinate and cooperate with respect to the timing of such meetings and shall use their best efforts to hold such meetings on the same day and as soon as
practicable after the date hereof. Unless otherwise required to comply with the applicable fiduciary duties of the respective directors of Western Power and E-Mobile, as determined by such directors
in good faith after consultation with outside legal counsel, each party shall use all reasonable efforts to solicit from stockholders of such party proxies in favor of such matters. 

    SECTION
5.8.  Legal Conditions to Merger.  

    (a) Western
Power and E-Mobile shall each use all reasonable efforts to (i) take, or cause to be taken, all appropriate action, and do, or cause to be done, all things
necessary and proper under applicable law to consummate and make effective the transactions contemplated hereby as promptly as practicable, (ii) obtain from any Governmental Entity or any other third
party any consents, licenses, permits, waivers, approvals, authorizations, or orders required to be obtained or made by Western Power or E-Mobile or any of their Subsidiaries in connection with the
authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby including, without limitation, the Mergers, and (iii) as promptly as practicable,
make all necessary filings, and thereafter make any other required submissions, with respect to this Agreement and the Mergers required under (A) the Securities Act and the Exchange Act, and any other
applicable federal or state securities laws and (B) any other applicable law. Western Power and E-Mobile shall cooperate with each other in connection with the making of all such filings, including
providing copies of all such documents to the non-filing party and its advisors prior to filing and, if requested, to accept all reasonable additions, deletions or changes suggested in connection
therewith. 

22

    (b) Western Power and E-Mobile agree, and shall cause each of their respective Subsidiaries, to cooperate and to use their respective best efforts to obtain any
government clearances required for Closing, to respond to any government requests for information, and to contest and resist any action, including any legislative, administrative or judicial action,
and to have vacated, lifted, reversed or overturned any decree, judgment, injunction or other order (whether temporary, preliminary or permanent) (an "Order") that restricts, prevents or prohibits the
consummation of the Mergers or any other transactions contemplated by this Agreement. 

    (c) Each
of Western Power and E-Mobile shall give (or shall cause their respective Subsidiaries to give) any notices to third parties, and use, and cause their
respective Subsidiaries to use, all reasonable efforts to obtain any third party consents related to or required in connection with the Mergers. 

    SECTION
5.9.  Public Disclosure.  Subject to Western Power's obligations pursuant to the securities laws,
Western Power and E-Mobile shall agree on the form and content of the initial press release regarding the transactions contemplated hereby and thereafter shall consult with each other before issuing,
and use all reasonable efforts to agree upon, any press release or other public statement with respect to any of the transactions contemplated hereby and shall not issue any such press release or make
any such public statement prior to such consultation. 

    SECTION
5.10.  Tax-Free Transfer.  Western Power and E-Mobile shall each use all reasonable efforts to
cause the Mergers to be treated as transfers within the meaning of Section 351 of the Code. 

    SECTION
5.11.  Affiliate Agreements.  Upon the execution of this Agreement, Western Power and E-Mobile
will provide each other with a list of those persons who are, in Western Power's or E-Mobile's respective reasonable judgment, "affiliates" of Western Power or E-Mobile, as the case may be, within the
meaning of Rule 144(a) (each such person who is an "affiliate" of Western Power or E-Mobile within the meaning of Rule 144(a) is referred to as an "Affiliate") promulgated under the Securities Act.
Western Power and E-Mobile shall provide each other such information and documents as the other party shall reasonably request for purposes of reviewing such list and shall notify the other party in
writing regarding any change in the identity of its Affiliates prior to the Closing Date. Western Power and E-Mobile shall each use all reasonable efforts to deliver or cause to be delivered to each
other prior to the Effective Time from each of its Affiliates, an executed Affiliate Agreement, substantially similar to the form attached hereto as Exhibit C, by which each Affiliate of Western Power
and each Affiliate of E-Mobile agrees to comply with the applicable requirements of Rule 145 promulgated under the Securities Act ("Rule 145") and for the Mergers to qualify as transfers within the
meaning of Section 351 of the Code (an "Affiliate Agreement"). Parent shall be entitled to place appropriate legends on the certificates evidencing any Parent Common Stock to be received by such
Affiliates of Western Power or E-Mobile pursuant to the terms of this Agreement, and to issue appropriate stop transfer instructions to the transfer agent for Parent Common Stock, consistent with the
terms of the Affiliate Agreements (provided that such legends or stop transfer instructions shall be removed, when such shares of Parent Common Stock are generally transferable without any
restrictions imposed by Rule 145, upon the request of any stockholder that is not then an Affiliate of Parent). 

    SECTION
5.12.  Nasdaq Quotation.  Western Power and E-Mobile shall cause Parent to promptly prepare and
submit an application to the Nasdaq National Market, if Parent is eligible for such listing, or, if not so eligible, to another national securities exchange or market to list or quote the shares of
Parent Common Stock to be issued in the Mergers and upon exercise or conversion of Western Power Stock Options and the E-Mobile Stock Options, and shall use all reasonable efforts to cause such shares
to be approved for listing or quotation on the Nasdaq National Market or such other exchange or market, as the case may be, prior to the Effective Time, subject to official notice of issuance. 

23

    SECTION 5.13.  Stock Plans.  

    (a) Immediately
prior to the Effective Time, Western Power shall have no more than 585,000 Western Power Stock Options outstanding. At the Effective Time, each
outstanding Western Power Stock Option under the Western Power Stock Plans and each outstanding E-Mobile Stock Option under the E-Mobile Stock Plans, in each case whether vested or unvested, shall be
deemed to constitute an option to acquire, on the same terms and conditions as were applicable under such Western Power Stock Option or E-Mobile Stock Option, as the case may be the same number of
shares of Parent Common Stock as the holder of such Western Power Stock Option or E-Mobile Stock Option, as the case may be, would have been entitled to receive pursuant to the Western Power Merger or
the E-Mobile Merger, respectively, had such holder exercised such option in full immediately prior to the Effective Time (rounded downward to the nearest whole number), at a price per share (rounded
downward to the nearest whole cent) equal to (y) the aggregate exercise price for the shares of Western Power Common Stock or E-Mobile Common Stock, as the case may be, purchasable pursuant to such
Western Power Stock Option or such E-Mobile Stock Option immediately prior to the Effective Time divided by (z) the number of full shares of Parent Common Stock deemed purchasable pursuant to such
Western Power Stock Option or E-Mobile Stock Option, as the case may be, in accordance with the foregoing. 

    (b) As
soon as practicable after the Effective Time, Parent shall deliver to the participants in the Western Power Stock Plans and the E-Mobile Stock Plans appropriate
notice setting forth such participants' rights pursuant thereto and the grants pursuant to Western Power Stock Plans or E-Mobile Stock Plans, as the case may be, shall continue in effect on the same
terms and conditions (subject to the adjustments required by this Section 5.13 after giving effect to the Mergers). 

    (c) Parent
shall take all corporate action necessary to reserve for issuance a sufficient number of shares of Parent Common Stock for delivery under Western Power Stock
Plans and E-Mobile Stock Plans assumed in accordance with this Section 5.13. As soon as practicable after the Effective Time, Parent shall file a registration statement on Form S-8 (or any successor
or other appropriate forms), or another appropriate form with respect to the shares of Parent Common Stock subject to such options and shall use its best efforts to maintain the effectiveness of such
registration statement or registration statements (and maintain the current status of the prospectus or prospectuses contained therein) for so long as such options remain outstanding. 

    (d) The
Board of Directors of each of Western Power and E-Mobile shall, prior to or as of the Effective Time, take all necessary actions, pursuant to and in accordance
with the terms of the Western Power Stock Plans and the instruments evidencing the Western Power Stock Options, or the E-Mobile Stock Plans and the instruments evidencing the E-Mobile Stock Options,
as the case may be, to provide for the conversion of the Western Power Stock Options and the E-Mobile Stock Options into options to acquire Parent Common Stock in accordance with this Section 5.13,
and that no consent of the holders of the Western Power Stock Options or E-Mobile Stock Options is required in connection with such conversion. 

    (e) At
the Effective Time, the Parent shall adopt the stock plan (the "Parent Stock Plan") substantially in the form attached hereto as Exhibit D, pursuant to which a
reserve of shares shall be established for the grant of options in an amount equal to fifteen percent (15%) of the total shares outstanding at the Effective Time. The shares reserved for issuance
pursuant to the Parent Stock Plan shall be in addition to Western Power Stock Options and E-Mobile Stock Options outstanding, and assumed by Parent, at the Effective Time. 

    SECTION
5.14.  Brokers or Finders.  Except for 600,000 shares which Western Power has agreed to issue to
the Rubin Family Trust in connection with the transactions contemplated hereby, each of E-Mobile and Western Power represents, as to itself, its Subsidiaries and its Affiliates, that no agent, broker,
investment banker, financial advisor or other firm or person is or will be entitled to any 

24

broker's or finder's fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement. Each of E-Mobile and Western Power agrees to indemnify and
hold the other harmless from and against any and all claims, liabilities or obligations with respect to any such fees, commissions or expenses asserted by any person on the basis of any act or
statement alleged to have been made by such party or any of its Affiliates. 

    SECTION
5.15.  Private Placements.  

    (a) As
soon as practical after the date hereof, and in no event later than the Effective Date, E-Mobile shall complete a private placement of equity securities in a
gross amount not less than $6,000,000 (the "Private Placement") from the sale of not more than 3,000,000 shares of E-Mobile Common Stock. 

    (b) In
addition to the sale of shares pursuant to the Private Placement, E-Mobile shall have the right, but not the obligation, to offer and sell additional shares of
E-Mobile Common Stock (the "Additional Placement"), as management of E-Mobile shall deem necessary to carry out its Business Plan, through the Effective Date. 

    SECTION
5.16.  Sale of Western Power Assets.  Subject to approval of the Western Power shareholders, at
the Effective Time, Western Power shall sell (the "Western Power Asset Sale") to the "Management Purchasers" listed on Exhibit E, and the Management Purchasers shall purchase, substantially all of the
assets of Western Power (other than cash held by Western Power) and the Management Purchasers shall assume all of the liabilities of Western Power in accordance with the terms of a "Asset Purchase and
Sale Agreement" substantially in the form attached hereto as Exhibit F. 

    SECTION
5.17.  Post-Merger Parent Corporate Governance.  

    (a) At
the Effective Time, the total number of persons serving on the Board of Directors of Parent shall be six (unless otherwise agreed in writing by Western Power and
E-Mobile prior to the Effective Time), two of whom shall be Western Power Directors, four of whom shall be E-Mobile Directors (as such terms are defined below). The persons to serve initially on the
Board of Directors of Parent at the Effective Time who are Western Power Directors shall be selected solely by and at the absolute discretion of the Board of Directors of Western Power prior to the
Effective Time; and the persons to serve initially on the Board of Directors of Parent at the Effective Time who are E-Mobile Directors shall be selected solely by and at the absolute discretion of
the Board of Directors of E-Mobile prior to the Effective Time. The term "Western Power Director" means any person serving as a Director of Western Power or any of its Subsidiaries on the date hereof
who becomes a Director of Parent at the Effective Time and any successor director appointed or elected pursuant to Article III, Section 1 of the Bylaws of Parent; and the term "E-Mobile Director"
means any person serving as a Director of E-Mobile or any of its Subsidiaries on the date hereof who becomes a Director of Parent at the Effective Time and any successor director appointed or elected
pursuant to Article III, Section 1 of the Bylaws of Parent. 

    (b) The
officers of Parent at the Effective Time shall be selected by and at the absolute discretion of the Board of Directors of E-Mobile. 

    (c) Each
of Western Power and E-Mobile shall take such action as shall reasonably be deemed by either thereof to be advisable to give effect to the provisions set forth
in this Section 5.17, including without limitation incorporating such provisions in the Bylaws of Parent in effect at the Effective Time. 

    SECTION
5.18.  Confidentiality Agreements and Restrictive Covenants.  E-Mobile shall, at or prior to the
Closing Date, enter into confidentiality agreements and restrictive covenants with all employees to protect the confidential nature of the technology and business plans and operations of E-Mobile. 

25

    SECTION 5.19.  Lock-Up.  

    (a) For
a period beginning on the date hereof and ending on the earlier of (i) ninety (90) days following the closing of an underwritten public offering of common stock
by Parent, or (ii) twelve (12) months followingsix (6) months from the Effective Time, (the "Western Power Lock-Up Period"), eighty percent (80%) of the aggregate of (i) all shares of Western
Power Common Stock held by officers, directors and 5% shareholders of Western Power, including shares underlying options or warrants held by the officers, directors and 5% shareholders of of Western
Power, and (ii) all shares issuable to to the officers, directors and 5% shareholders of Western Power pursuant to the Merger, including shares underlying options or warrants held by officers,
directors or shareholders of Western Power at the Effective Time, shall be subject to a lock-up agreement pursuant to which each such person agrees that he/she/it will not sell, hypothecate or
otherwise transfer any such shares of Western Power Common Stock or Parent Common Stock (the "Western Power Lock-Up Obligation"). Notwithstanding anything herein to the contrary, the Western Power
Lock-Up Obligation (x) shall not apply to any shares of Western Power Common Stock held by, or Parent Common Stock issued to, certain shareholders pursuant to the settlement of a law suit between
those shareholders and American United Global, Inc. under which American United Global transferred 750,000 shares of Western Power Common Stock to the said shareholders, but (y) shall apply to 960,000
shares of Western Power Common Stock held by American United Global. 

    (b) For
a period ending six (6) months from the Effective Time (the "E-Mobile Lock-Up Period"), eighty percent (80%) of all shares issuable to the officers, directors
and five percent 5% shareholders of E-Mobile pursuant to the Merger (excluding shares issuable to persons or entities which become 5% shareholders pursuant to purchases of securities of E-Mobile, at a
price of $5.00 per share or greater, in the Private Placement or Additional Placement described in Section 5.15 above), including shares underlying options or warrants held by officers, directors and
5% shareholders of E-Mobile at the Effective Time or granted to officers or directors of E-Mobile during the E-Mobile Lock-Up Period, shall be subject to a lock-up agreement pursuant to which each
such person agrees that he/she/it will not sell, hypothecate or otherwise transfer any such shares of the Parent Common Stock (the "E-Mobile Lock-Up Obligation"). 

    (c) In
order to carry out the purposes of the Western Power Lock-Up Obligation and the E-Mobile Lock-Up Obligation (collectively, the "Lock-Up Obligation"),
simultaneous with the execution hereof, each party subject to the Lock-Up Obligation will enter into a Lock-Up Agreement in the form attached hereto as Exhibit K, and all certificates evidencing
shares of Parent Common Stock which are subject to the Lock-Up Obligation shall bear a legend prohibiting the sale of such shares during the Lock-Up Period without the prior written consent of the
Parent. 

  ARTICLE VI
       CONDITIONS TO MERGER         

    SECTION
6.1.  Conditions to Each Party's Obligation to Effect the Mergers.  The respective obligations of
each party to this Agreement to effect the Mergers shall be subject to the satisfaction or waiver in writing by each of E-Mobile and Western Power prior to the Effective Time of the following
conditions: 

    (a)  Stockholder Approval.  This Agreement, the Western Power Merger and the E-Mobile Merger shall have
been approved in the manner required under the DGCL by the respective holders of the issued and outstanding shares of capital stock of Western Power and E-Mobile. 

    (b)  Approvals.  Other than the filing provided for by Section 1.4, all authorizations, consents, orders
or approvals of, or declarations or filings with, or expirations of waiting periods imposed by, 

26

any Governmental Entity the failure of which to file, obtain or occur is reasonably likely to have a Western Power Material Adverse Effect or a E-Mobile Material Adverse Effect shall have been filed,
obtained or occurred. 

    (c)  Registration Statement.  The Registration Statement shall have become effective under the Securities
Act and shall not be the subject of any stop order or proceedings seeking a stop order. 

    (d)  No Injunctions.  No Governmental Entity shall have enacted, issued, promulgated, enforced or entered
any order, executive order, stay, decree, judgment or injunction or statute, rule, regulation which is in effect and which has the effect of making the Mergers illegal or otherwise prohibiting
consummation of the Mergers. 

    (e)  Consents Under Western Power Agreements.  Western Power shall have obtained the consent or approval
of any person whose consent or approval shall be required under any agreement or instrument in order to permit the consummation of the transactions contemplated hereby, except those
of which, if not obtained, would not, individually or in the aggregate, have (i) a Western Power Material Adverse Effect or (ii) a material adverse effect on the business, properties, financial
condition or results of operations of Parent after the Merger (a "Parent Material Adverse Effect"). 

    (f)  Consents Under E-Mobile Agreements.  E-Mobile shall have obtained the consent or approval of any
person whose consent or approval shall be required under any agreement or instrument in order to permit the consummation of the transactions contemplated hereby, except those which, if not obtained,
would not, individually or in the aggregate, have (i) a E-Mobile Material Adverse Effect or (ii) a Parent Material Adverse Effect. 

    (g)  Dissenters' Rights.  Holders of no more than 5% of the issued and outstanding shares of Western
Power Common Stock shall have made the demands and given the notices required under Delaware law to assert dissenters' appraisal rights. 

    (h)  Completion of Sale of Western Power Assets.  The Western Power Asset Sale shall have been completed
and the Secured Asset Purchase Note delivered in the manner set forth in Section 5.16 above. 

    SECTION
6.2.  Additional Conditions to Obligations of Western Power.  The obligation of Western Power to
effect the Western Power Merger is subject to the satisfaction of each of the following conditions prior to the Effective Time, any of which may be waived in writing exclusively by Western Power: 

    (a)  Representations and Warranties.  The representations and warranties of E-Mobile set forth in this
Agreement shall be true and correct as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing Date as though made on
and as of the Closing Date, except for, (i) changes contemplated by this Agreement and (ii) inaccuracies which, individually or in the aggregate, have not had and are not reasonably likely to have a
E-Mobile Material Adverse Effect (without regard to any materiality limitations contained in any such representation or warranty), or a material adverse effect upon the consummation of the
transactions contemplated hereby; and Western Power shall have received a certificate signed on behalf of E-Mobile by the chief executive officer and the chief financial officer of E-Mobile to such
effect. 

    (b)  Performance of Obligations of E-Mobile.  E-Mobile shall have performed in all material respects all
material obligations required to be performed by it under this Agreement at or prior to the Closing Date, and Western Power shall have received a certificate signed on behalf of E-Mobile by the chief
executive officer and the chief financial officer of E-Mobile to such effect. 

27

    (c)  Tax Opinion.  Western Power shall have received the opinion of tax counsel to Western Power to the
effect that, for Federal income tax purposes, the Western Power Merger will be treated as a transfer within the meaning of Section 351 of the Code (it being agreed that E-Mobile shall provide
reasonable cooperation, including the delivery of such certifications as shall be reasonably requested, to tax counsel to Western Power to enable it to render such opinion). 

    (d)  Fairness Opinion.  The Board of Directors of Western Power shall have received an opinion of
Capitalink, L.C. to the effect that the terms of the Mergers are fair to Western Power and its stockholders from a financial point of view. 

    (e)  Transaction Documents.  E-Mobile shall have executed each of the Transaction Documents to which it
is a party, each of which shall be in full force and effect and legally binding against E-Mobile and no material breach by E-Mobile shall have occurred thereunder as of the Closing Date. 

    SECTION
6.3.  Additional Conditions to Obligations of E-Mobile.  The obligations of E-Mobile to effect
the E-Mobile Merger are subject to the satisfaction of each of the following conditions prior to the Effective Time, any of which may be waived in writing exclusively by E-Mobile: 

    (a)  Representations and Warranties.  The representations and warranties of Western Power set forth in
this Agreement shall be true and correct as of the date of this Agreement and (except to the extent such representations and warranties speak as of an earlier date) as of the Closing Date as though
made on and as of the Closing Date, except for, (i) changes contemplated by this Agreement and (ii) inaccuracies which, individually or in the aggregate, have not had and are not reasonably likely to
have a Western Power Material Adverse Effect (without regard to any materiality limitations contained in any such representation or warranty), or a material adverse effect upon the consummation of the
transactions contemplated hereby; and E-Mobile shall have received a certificate signed on behalf of Western Power by the chief executive officer and the chief financial officer of Western Power to
such effect. 

    (b)  Performance of Obligations of Western Power.  Western Power shall have performed in all material
respects all material obligations required to be performed by it under this Agreement at or prior to the
Closing Date; and E-Mobile shall have received a certificate signed on behalf of Western Power by the chief executive officer and the chief financial officer of Western Power to such effect. 

    (c)  Tax Opinion.  E-Mobile shall have received a written opinion from tax counsel to E-Mobile, to the
effect that each of the Mergers will be treated for Federal income tax purposes as transfers within the meaning of Section 351 of the Code (it being agreed that Western Power shall provide reasonable
cooperation, including the delivery of such certifications as shall be reasonably requested, to tax counsel to E-Mobile to enable it to render such opinion). 

    (d)  Transaction Documents.  Western Power shall have duly executed each of the Transaction Documents to
which it is a party and such Transaction Documents shall be in full force and effect and legally binding against Western Power and no material breach by Western Power shall have occurred thereunder as
of the Closing Date. 

28

 

  ARTICLE VII
       TERMINATION AND AMENDMENT         

    SECTION
7.1.  Termination.  This Agreement may be terminated at any time prior to the Effective Time
(with respect to Sections 7.1(b) through 7.1(g), by written notice by the terminating party to the other party), whether before or after approval of the matters presented in connection with the
Mergers by the stockholders of Western Power or E-Mobile: 

    (a) by
mutual written consent of Western Power and E-Mobile; or 

    (b); by
either Western Power or E-Mobile if the Mergers shall not have been consummated by May 31, 2001 (the "Outside Date"); provided, however, that if the Mergers
shall have not been consummated by the Outside Date, the Outside Date shall automatically be extended until July 31, 2001 (the "Extension Date") unless both parties object in writing to such
extension; provided, further, however, that if the Mergers shall not have been consummated by the Extension Date as a result of any action taken, or failure to act, by any governmental or regulatory
authority including, but not limited to, the withholding of, or a delay in, any approval in connection with any aspect of the transactions which are the subject of this Agreement, then the Extension
Date shall automatically be extended until a date which is a reasonable time subsequent to the date upon which such governmental or regulatory action is resolved which will allow the parties to
complete the procedures required to consummate the transactions which are the subject of this Agreement; and provided, further, however, that the right to terminate this Agreement pursuant to this
Section 7.1(b) shall not be available to any party whose failure to fulfill any obligation pursuant to this Agreement has been the cause of or resulted in the failure of the Mergers to occur on or
before such date; or 

    (c) by
either Western Power or E-Mobile if a court of competent jurisdiction or other Governmental Entity shall have issued a nonappealable final order, decree or
ruling or taken any other nonappealable final action, in each case having the effect of permanently restraining, enjoining or otherwise prohibiting the Mergers; or 

    (d) (i)
by Western Power, if, at the E-Mobile Stockholders' Meeting (including any adjournment or postponement thereof), the requisite vote of the stockholders of
E-Mobile in favor of the approval and adoption of this Agreement and the E-Mobile Merger shall not have been obtained; or (ii) by E-Mobile if, at the Western Power Stockholders' Meeting (including any
adjournment or postponement thereof), the requisite vote of the stockholders of Western Power in favor of the approval and adoption of this Agreement and the Western Power Merger shall not have been
obtained; or 

    (e) by
Western Power or E-Mobile, if there has been a breach of any representation, warranty, covenant or agreement on the part of the other party set forth in this
Agreement, which breach (i) will cause the conditions set forth in Section 6.2(a) or (b) (in the case of termination by Western Power) or 6.3(a) or (b) (in the case of termination by E-Mobile) not to
be satisfied, and (ii) shall not have been cured within 20 business days following receipt by the breaching party of written notice of such breach from the other party. 

    SECTION
7.2.  Effect of Termination.  In the event of termination of this Agreement as provided in
Section 7.1, this Agreement shall immediately become void and there shall be no liability or obligation on the part of Western Power, E-Mobile, Parent or their respective officers, directors,
stockholders or Affiliates, except as set forth in Sections 7.3 and 8.3 and except that such termination shall not limit liability for a willful breach of this Agreement; provided that, the provisions
of Sections 7.3 and 8.3 of this Agreement shall remain in full force and effect and survive any termination of this Agreement. 

29

    SECTION 7.3.  Fees and Expenses.  Except as set forth in this Section 7.3, all fees and expenses incurred
in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses, if the Mergers are not consummated; provided, however, that if the
Mergers are consummated, then, after the effective date, Western Power shall pay for all fees and expenses incurred by E-Mobile in connection with the Mergers and the transactions contemplated
hereunder. 

    SECTION
7.4.  Amendment.  This Agreement may be amended by the parties hereto, by action taken or
authorized by their respective Boards of Directors, at any time before or after approval of the matters presented in connection with the Mergers by the stockholders of Western Power or E-Mobile, but,
after any such approval, no amendment shall be made which by law requires further approval by such stockholders without such further approval. This Agreement may not be amended except by an instrument
in writing signed on behalf of each of the parties hereto; provided, however, that this Agreement may be amended in writing without obtaining the signatures of Western Power, E-Mobile or Parent solely
for the purpose of adding Merger Sub 1 and Merger Sub 2 as parties to this Agreement. 

    SECTION
7.5.  Extension; Waiver.  At any time prior to the Effective Time, the parties hereto, by action
taken or authorized by their respective Boards of Directors, may, to the extent legally allowed, (i) extend the time for the performance of any of the obligations or other acts of the other parties
hereto, (ii) waive any inaccuracies in the representations and warranties of the other parties hereto contained herein or in any document delivered pursuant hereto and (iii) waive compliance with any
of the agreements or conditions of the other parties hereto contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in a written
instrument signed on behalf of such party. 

  ARTICLE VIII.
       MISCELLANEOUS         

    SECTION
8.1.  Survival of Representations, Warranties and Agreements.  All representations, warranties
and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Effective Time. 

    SECTION
8.2.  Notices.  All notices and other communications hereunder shall be in writing and shall be
deemed given if telecopied (which is confirmed) or mailed by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other address for a party as
shall be specified by like notice): 

(a)  if
to Western Power, to 

Western
Power & Equipment Corp.

4601 N.E. 77th Avenue, Suite 200

Vancouver, Washington 98662

Attention:

Telecopy: 

with
a copy to 

Mintz
& Fraade, P.C.

488 Madison Avenue

New York, New York 10022

Attention: Frederick Mintz, Esq.

Telecopy: (212) 486-0701 

30

(b)  if
to E-Mobile, to 

E-Mobile,
Inc.

c/o Michael Sanders, Esq.

Vanderkam & Sanders

440 Louisiana Street, Suite 475

Houston, Texas 77002

Telecopy: (713) 54708910 

with
copies to: 

Vanderkam
& Sanders

440 Louisiana Street, Suite 475

Houston, Texas 77002

Attention: Michael Sanders, Esq.

Telecopy (713) 547-8910 

Berkman-Wechsler
Law Offices

6 Wissotzky Street

Tel Aviv, 62338, Israel

Attention: Ofira Gordon

Telecopy: 011-972-3-604-5775 

    SECTION
8.3.  Indemnification.  

    (a)  Indemnification by E-Mobile.  In order to induce Western Power to enter into and perform this
Agreement, E-Mobile does hereby indemnify, protect, defend and save and hold harmless Western Power and each of its shareholders, affiliates, officers, directors, control persons, employees,
attorneys, agents, partners and trustees and personal representatives of any of the foregoing ("Indemnified Parties"), from and against any loss resulting to any of them from: 

     (i) Any
material loss, liability, cost, damage, or expense which the Indemnified Parties may suffer, sustain or incur arising out of or due to a breach by E-Mobile of
any covenant, representation or warranty made in this Agreement. 

    (ii) Without
in any manner limiting the indemnification under this Section 8.3 of this Agreement, E-Mobile shall also indemnify and save harmless each of the
Indemnified Parties from any and all damages, losses, settlement, obligations, liabilities, claims, actions or causes of actions, encumbrances, fines, penalties, and costs and expenses suffered,
sustained, incurred or required to be paid by any Indemnified Party (including without limitation, fees and disbursements of attorneys, engineers, laboratories, contractors and consultants) because
of, or arising out of or relating to any "Environmental Liabilities" (as defined below) in connection with E-Mobile and/or activities of E-Mobile, including, but not limited to, any land, building
facilities and improvements owned or in any manner used by E-Mobile or in connection with E-Mobile and activities which occurred or arise out of an act, transaction or occurrence prior to the
execution of this Agreement. For purposes of the indemnification set forth in this Section 8.3 of this Agreement, "Environmental Liabilities" shall include the cost and liabilities with respect to the
presence, removal, utilization, generation, storage, transportation, disposal or treatment of any hazardous materials or any release, spill, leak, pumping, pouring, emitting, emptying, discharge,
injection, escaping, leaching, dumping or disposing into the environment (air, land or water) of any Hazardous Materials, as defined under applicable state and federal environmental laws (each a
"Hazardous Materials Release") including, without limitation, cleanups, remedial and response actions, remedial investigations and feasibility studies, permits 

31

and licenses required by or undertaken in order to comply with the requirements of, any federal, state or local law, regulation agency or court, any damages for injury to person, property or natural
resources, claims of governmental agencies or third parties for cleanup costs and costs of removal, discharge and satisfaction of all liens, encumbrances and restrictions of the real property,
buildings and improvements owned by or used by E-Mobile relating to the foregoing. Hazardous Materials Release shall also include by means of any contamination, leaking, corrosion or rupture of or
from underground or above ground storage tanks, pipes or pipelines. 

    (iii) The
indemnification, which is set forth in this Section 8.3 of this Agreement shall be deemed to include not only the specific liabilities or obligation with
respect to which such indemnity is provided, but also all reasonable costs, expenses, counsel fees, and expenses of settlement relating thereto, whether or not any such liability or obligation shall
have been reduced to judgment. 

    (b)  Indemnification by Western Power.  In order to induce E-Mobile to enter into and perform this
Agreement, Western Power does hereby indemnify, protect, defend and save and hold harmless E-Mobile and each of its shareholders, affiliates, officers, directors, control persons, employees,
attorneys, agents, partners and trustees and personal representatives of any of the foregoing ("Indemnified Parties"), from and against any loss resulting to any of them from: 

     (i) Any
material loss, liability, cost, damage, or expense which E-Mobile may suffer, sustain or incur arising out of or due to a breach by Western Power of any
covenant, representation or warranty made in this Agreement. 

    (ii) Without
in any manner limiting the indemnification under this Section 8.3 of this Agreement, Western Power shall also indemnify and save harmless each of the
Indemnified Parties from any and all damages, losses, settlement, obligations, liabilities, claims, actions or causes of actions, encumbrances, fines, penalties, and costs and expenses suffered,
sustained, incurred or required to be paid by any Indemnified Party (including without limitation, fees and disbursements of attorneys, engineers, laboratories, contractors and consultants) because
of, or arising out of or relating to any Environmental Liabilities in connection with Western Power and/or activities of Western Power, including, but not limited to, any land, building facilities and
improvements owned or in any manner used by Western Power or in connection with Western Power and activities which occurred or arise out of an act, transaction or occurrence prior to the execution of
this Agreement. For purposes of the indemnification set forth in this Section 8.3 of this Agreement, "Environmental Liabilities" shall include the cost and liabilities with respect to the presence,
removal, utilization, generation, storage, transportation, disposal or treatment of any hazardous materials or any release, spill, leak, pumping, pouring, emitting, emptying, discharge, injection,
escaping, leaching, dumping or disposing into the environment (air, land or water) of any Hazardous Materials (each a "Hazardous Materials Release") including, without limitation, cleanups, remedial
and response actions, remedial investigations and feasibility studies, permits and licenses required by or undertaken in order to comply with the requirements of, any federal, state or local law,
regulation agency or court, any damages for injury to person, property or natural resources, claims of governmental agencies or third parties for cleanup costs and costs of removal, discharge and
satisfaction of all liens, encumbrances and restrictions of the real property, buildings and improvements owned by or used by Western Power relating to the foregoing. Hazardous Materials Release shall
also include by means of any contamination, leaking, corrosion or rupture of or from underground or above ground storage tanks, pipes or pipelines. 

32

    (iii) The indemnification, which is set forth in this Section 8.3 of this Agreement shall be deemed to include not only the specific liabilities or obligation with
respect to which such indemnity is provided, but also all reasonable costs, expenses, counsel fees, and expenses of settlement relating thereto, whether or not any such liability or obligation shall
have been reduced to judgment. 

    (c)  Third Party Claims.  If any demand, claim, action or cause of action, suit, proceeding or
investigation is brought against an Indemnified Party for which the Indemnified Party intends to seek indemnity from the other party hereto (the "Indemnifying Party"), then the Indemnified Party
within twenty-one (21) days following such Indemnified Party's receipt of such demand or claim, shall notify the Indemnifying Party which notice shall contain a reasonably thorough description of the
nature and amount of the claim of indemnification (the "Claim Notice"). The Indemnifying Party shall have ten (10) days from receipt of the Claim Notice sent pursuant to Section 8.2 of this Agreement
to exercise its option to undertake, conduct and control the defense of such claim or demand. Such option to undertake, conduct and control the defense of such claim or demand shall be exercised by
notifying the Indemnified Party pursuant to Section 8.2 of this Agreement within such ten (10) day period. The failure of the Indemnified Party to notify the Indemnifying Party of any such demand,
claim, action or cause of action, suit, proceeding or investigation shall not relieve the Indemnifying Party from any liability which the Indemnifying Party may have under this Section 8.3 of this
Agreement except to the extent such failure to notify the Indemnifying Party prejudices the Indemnifying Party. The Indemnified Party shall use all reasonable efforts to assist in the vigorous defense
of such matters. All costs and expenses incurred by the Indemnified Party in defending such third party claims shall be paid by the Indemnifying Party. If the Indemnified Party desires to participate
in any such defense or settlement, it may do so at its sole cost and expense (it being understood that the Indemnifying Party shall be entitled to control the defense). The Indemnified Party shall not
settle any such claim. If the Indemnifying Party does not elect to control the defense of any such claim or demand, the Indemnified Party shall be entitled to undertake, conduct and control the
defense of such claim or demand; provided that the Indemnifying Party shall be entitled, if it so desires, to participate therein (it being understood that in such circumstances, the Indemnified Party
shall be entitled to control the defense). Regardless of which party has undertaken to defend any claim, the Indemnifying Party may not without the prior written consent of the Indemnified Party,
settle, compromise or offer to settle or compromise any such claim or demand; provided however, that if any settlement would result in the imposition of a consent order, injunction or decree which
would restrict the future activity or conduct of the Indemnified Party, the consent of the Indemnified Party shall be a condition to any such settlement. Notwithstanding the foregoing provisions of
this Section 8.3 of this Agreement, as a condition to the Indemnifying Party either having the right to defend the subject claim, or having control over settlement as indicated in the immediately
proceeding sentence, the Indemnifying Party shall execute an agreement in the form which is annexed hereto as Exhibit J, acknowledging its liability for indemnification pursuant to Section 8.3 of this
Agreement. Whether the Indemnifying Party shall control and assume the defense of such claim or demand or only participate in the defense or settlement of any such claim or demand, the Indemnified
Party shall give the Indemnifying Party and
its counsel access, during normal business hours, to the relevant business records and other documents, and shall permit them to consult with the employees and counsel of the Indemnified Party. 

    (d)  General.  Nothing which is contained in Section 8.3 of this Agreement shall be construed as
liquidated damages for any breach under this Agreement. In addition, there is no obligation to elect any remedy which is set forth in this Section 8.3 of this Agreement; moreover, resort to such
remedy shall not be construed to be a waiver of any other rights or remedies for damages or otherwise. 

33

    SECTION
8.4.  Interpretation.  When a reference is made in this Agreement to Sections, such reference
shall be to a Section of this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement they shall be deemed to be followed by the words "without limitation."
The phrase "made available" in this Agreement shall mean that the information referred to has been made available if requested by the party to whom such information is to be made available. The
phrases "the date of this Agreement", "the date hereof," and terms of similar import, unless the context otherwise requires, shall be deemed to refer to November 1, 2000. 

    SECTION
8.5.  Counterparts.  This Agreement may be executed in two or more counterparts, all of which
shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood
that all parties need not sign the same counterpart. 

    SECTION
8.6.  Entire Agreement; No Third Party Beneficiaries.  This Agreement and all documents and
instruments referred to herein (a) constitute the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter
hereof and thereof, and (b) except as provided in Section 8.3, are not intended to confer upon any person other than the parties hereto any rights or remedies hereunder. Each party hereto agrees that,
except for the representations and warranties contained in this Agreement, neither Western Power nor E-Mobile makes any other representations or warranties, and each hereby disclaims any other
representations and warranties made by itself or any of its officers, directors, employees, agents, financial and legal advisors or other representatives, with respect to the execution and delivery of
this Agreement or the transactions contemplated hereby, notwithstanding the delivery or disclosure to the other or the other's representatives of any documentation or other information with respect to
any one or more of the foregoing. 

    SECTION
8.7.  Governing Law.  This Agreement shall be governed and construed in accordance with the laws
of the State of New York without regard to any applicable conflicts of law. 

    SECTION
8.8.  Assignment.  Neither this Agreement nor any of the rights, interests or obligations
hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the preceding sentence, this
Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns. 

    IN
WITNESS WHEREOF, Western Power, E-Mobile and Parent have caused this Agreement to be signed by their respective duly authorized officers as of the date first written above. 

	WESTERN POWER & EQUIPMENT CORP.	 	E-MOBILE, INC.
	 

By:	 

/s/ CHARLES DEAN MCLAIN   
 Its: Chairman of the Board and

Chief Executive Officer	 
 	 

By:	 

/s/ NECHEMIA DAVIDSON    
 Its: Chairman of the Board of Directors
	 

 	 

 	 
 	 

E-MOBILE HOLDINGS, INC.
	 

 	 

 	 
 	 

By:	 

/s/ NECHEMIA DAVIDSON    
 Its: Chairman of the Board of Directors

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QuickLinks

TABLE OF CONTENTS

EXHIBITS

TABLE OF DEFINED TERMS

AGREEMENT AND PLAN OF REORGANIZATION AND MERGER

ARTICLE I. THE MERGERS

ARTICLE II. CONVERSION OF SECURITIES

ARTICLE III. REPRESENTATIONS AND WARRANTIES OF WESTERN POWER

ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF E-MOBILE

ARTICLE V COVENANTS

ARTICLE VI CONDITIONS TO MERGER

ARTICLE VII TERMINATION AND AMENDMENT

ARTICLE VIII. MISCELLANEOUS

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