Document:

LEASE
      AGREEMENT 

    

    The
      date
      of this Lease Agreement is January 23, 2007. The parties to this Lease are
      Asch
      Partnership, a Vermont general partnership (the "Landlord"), and Twincraft,
      Inc., a Vermont corporation (the "Tenant").

    

    Recitals

    

    A. The
      Landlord is the owner of lands and premises at 2 Tigan Street in Winooski,
      Vermont (the "Premises") more fully described in Exhibit A.

    

    B. The
      Landlord desires to lease the Premises to the Tenant pursuant to the terms
      of
      this Lease Agreement.

    

    C. The
      Tenant desires to lease the Premises from the Landlord pursuant to the terms
      of
      this Lease Agreement.

    

    D. The
      Landlord desires to grant the Tenant an option to purchase the
      Premises.

    

    Terms
      and Provisions

    

    NOW,
      THEREFORE, the parties agree as follows:

     

    

    ARTICLE
      1 

    Lease
      Definitions

    

    Section
      1.01.   Definitions.
      

    

    As
      used
      in this Lease Agreement, the following capitalized terms shall have the meanings
      set forth below:

    

    Additional
      Rent:
      As set
      forth in Section 4.03.

    

    Base
      Rent:
      As set
      forth in Section 4.01.

    

    Building:
      The
      building located at the Premises including its mechanical, electric, plumbing
      and other systems and equipment. 

    

    Commencement
      Date:
      As set
      forth in Section 3.01.

    

    Index:
      As set
      forth in Section 3.02.

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Initial
      Term:
      As set
      forth in Section 3.01.

    

    Extended
      Term:
      As set
      forth in Section 3.02.

    

    Governmental
      Authority:
      Any
      government, governmental or quasi-governmental authority, including,
      without limitation, any federal, state, territorial, county, municipal or other
      government or governmental agency, board, branch, bureau, commission, court,
      department or other instrumentality or political unit or subdivision, whether
      domestic or foreign.

    

    Hazardous
      Substances:
      As set
      forth in Section 5.02.

    

    Insurance
      Requirements:
      All
      terms of any insurance policy covering the Lessee or covering or applicable
      to
      the Premises or any part thereof, all requirement of the issuer of any such
      policy, and all orders, rules, regulations and other requirements of the
      National Board of Underwriters (or any other body exercising similar functions)
      applicable to or affecting the Premises or any part thereof or any use or
      condition of the Property or any part thereof.

    

    Land:
      The lot
      of land on which the Building is located.

    

    Lease
      Agreement:
      This
      lease, as amended or extended from time to time.

    

    Legal
      Requirements:
      All
      federal, state, county, municipal or other government or governmental statues,
      laws, rules, regulations, ordinances, judgments, decrees and injunctions
      affecting the Premises or the use thereof (other than for purposes not permitted
      by this Lease Agreement), including the Board of Fire Underwriters or its
      equivalent, whether now or hereafter enacted and in force, including without
      limitation any which may require repairs, modifications or alterations
      (structural or otherwise) in or to the Premises, the Building or the Land,
      and
      all permits, licenses, authorizations and regulations relating thereto; any
      which deal with environmental matters and/or Hazardous Substances; the Americans
      with Disabilities Act of 1990 ("ADA"), and all the covenants, agreements,
      restrictions and encumbrances contained in any instruments (whether or not
      of
      record) at any time in force affecting the Premises.

    

    Lease
      Year:
      Each
      twelve (12) month period commencing on the first day of the first full calendar
      month of the Term and on each anniversary of such day, as the case may
      be.

    

    Mortgage:
      An
      interest in real estate of the Landlord which secures payment or performance
      of
      an obligation, however denominated.

    

    Person:
      Any
      association, business, trust, company, corporation, estate, governmental
      authority, joint venture, natural person, general or limited partnership or
      general partnership, association, or other entity. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Premises:
      The
      Building, the Land and all real property interests related thereto, as set
      forth
      in Recital A.

    

    Rent:
      All
      Base Rent, Additional Rent and all other sums due pursuant to this
      Lease.

    

    Rent
      Commencement Date:
      As set
      forth in Section 3.01.

    

    Taxes:
      All real
      estate taxes, special assessments, special taxes and similar taxes or fees,
      as
      each may be assessed against (i) the Premises, or (ii) the Tenant's leasehold
      interest or any fixtures, furnishings, equipment or other personal property
      owned, installed or used in or on the Premises; whether general or special,
      ordinary or extraordinary, foreseen or unforeseen, of every character.

    

    Taking:
      A
      taking or voluntary conveyance of all or any part of the Land, the Building
      or
      the Premises, or any interest therein or right accruing thereto or use, as
      a
      result of or in lieu or in anticipation of the exercise of the right or power
      of
      condemnation or eminent domain, whether by the action of any governmental
      authority or any other person having such right or power.

    

    Tenant's
      Property:
      As set
      forth in Section 9.01.

    

    Term:
      As set
      forth in Section 3.01, as the same may be extended or shortened as provided
      in
      this Lease or pursuant to law.

    

    Termination
      Date:
      The
      date on which the Term expires or is earlier terminated pursuant to this Lease
      or pursuant to law.

    

    Unavoidable
      Delays:
      Delays
      due to strikes, acts of God, governmental restrictions, enemy actions, civil
      commotion, fire, or other causes beyond the control of the Landlord, provided
      that (a) lack of sufficient funds shall not be deemed an Unavoidable Delay,
      and
      (b) no Unavoidable Delay other than postal strike or strike of banking workers
      shall constitute an Unavoidable Delay as to any payment of money due pursuant
      to
      this Lease.

    

    

    ARTICLE
      2

    Demise
      of Premises

    

    Section
      2.01.  The
      Premises.
      

    

    Upon
      and
      subject to the conditions and limitations set forth below, the Landlord leases
      to the Tenant, and the Tenant rents from the Landlord, the Premises, to have
      and
      to hold the Premises unto the Tenant, subject to all of the terms, conditions
      and provisions hereof, for the Term.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      3 

    Term

    Section
      3.01.   Initial
      Term. 

    

    (a)
       Subject
      to the provisions of this Lease, the Tenant shall have and hold the Premises
      for
      an initial term commencing on the date hereof (the "Commencement
      Date").
      

    

    (b)
       The
      initial term of this Lease (the "Initial Term") shall be for a period of seven
      (7) years, commencing on the Commencement Date and expiring, if not sooner
      terminated, on the seventh anniversary of the last day of the month in which
      the
      Commencement Date occurs.

    

    (c)
       Promptly
      after the Commencement Date and the termination date of the Initial Term have
      been determined, the Landlord and the Tenant, on the request of either, will
      execute a memorandum of lease in recordable form, setting forth the information
      listed in 27 VSA § 341(c) and the non-disturbance provisions set forth in
      Article 18.

    

    Section
      3.02.   Extended
      Term. 

    

    (a)
       If
      at the
      time an Event of Default has not occurred, or if occurred has been remedied
      within the applicable notice and cure period or to the reasonable satisfaction
      of the Landlord, the Tenant shall have the option to extend the term of this
      Lease for one (1) additional period of seven (7) years at the option of the
      Tenant (the "Extended Term"). The option to extend the term shall be deemed
      to
      have been exercised if the Tenant gives the Landlord written notice of exercise
      at no earlier than one (1) year, nor later than six (6) months, prior to the
      expiration of the Initial Term.

    

    (b)
       The
      Extended Term shall be on all the same terms and conditions as in effect during
      the Initial Term, except that for the first year during the Extended Term,
      the
      Base Rent (as defined below) shall be adjusted by increasing the Base Rent
      in
      effect at the end of the Initial term by three percent (3%). For each successive
      year of the Extended Term, the Base Rent (as increased in prior years) shall
      be
      increased by three percent (3%). 

    

    

    ARTICLE
      4

    Rent

    

    Section
      4.01.   Base
      Rent. 

    

    (a)
       The
      Tenant will pay to the Landlord, without demand, at the office of the Landlord
      or at such other place as may be designated by the Landlord, in equal monthly
      installments on the first day of each month during the term of this lease,
      in
      advance, base rent ("Base
      Rent")
      during
      the Initial Term at the annual rates, as follows:

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    

    

    
      	
              Year

            	 	
            	 	
              Annual
                Rent

            

    

    

    2007    $362,000.00.

    2008    $452,500.00.

    2009    $452,500.00.

    2010    $452,500.00.

    2011    $452,500.00.

    2012    $452,500.00.

    2013    $452,500.00.

    

    

    (b)
        If
      the
      Commencement Date occurs on a day other than the first day of a calendar month,
      then Tenant shall pay a pro rata portion of the Base Rent, from the Commencement
      Date to the end of the month in which the Commencement Date occurs.

    

    Section
      4.02.   Rent;
      Manner of Payment; Late Charges. 

    

    The
      Base
      Rent and all other sums payable to the Landlord shall be paid to the Landlord
      at
      the Landlord's address set forth in Section 21.01 or to such agent or person
      or
      persons or at such other address as the Landlord may designate from time to
      time. In the event that the Base Rent, Additional Rent or any other sum due
      pursuant to this Lease is not paid within 15 days after it is due and such
      failure to pay is not cured within ten (10) days following written notice to
      Tenant, then the Tenant shall pay to the Landlord, as Additional Rent, a late
      payment fee in a sum equal to five percent (5%) thereof; such sum shall be
      liquidated damages and not a penalty and tender thereof by the Tenant or
      acceptance thereof by the Landlord shall not prejudice the Landlord's rights
      pursuant to Section 15.01.

    

    Section
      4.03.  Additional
      Rent. 

    

    This
      Lease is a net lease and the Tenant shall pay, before any fine, penalty,
      interest or cost may be added for nonpayment and including interest and
      penalties thereon, all costs and charges, Taxes (including the Taxes referred
      to
      in Section 7), assessments, water and sewer rents, rates and charges, charges
      for public utilities and other charges and fees, of any kind and nature
      whatsoever, for the payment of which the Landowner, as owner, or the Tenant,
      as
      occupant or user, is or shall become liable by reason of their respective
      estates, rights, titles or interests in the Premises pursuant to this Lease
      (the
      "Additional Rent"). In the event of any failure on the part of the Tenant to
      pay
      any Additional Rent, and such failure to pay is not cured within ten (10) days
      following written notice to Tenant, the Landlord shall have all the rights,
      powers and remedies provided for in this Lease or at law or in equity or
      otherwise in the case of non-payment of Basic Rent. Notwithstanding anything
      to
      the contrary contained in this Section 4.04 or elsewhere in this Lease,
      Additional Rent shall not include the following costs and expenses: Landlord's
      income or comparable taxes; the expenses of Landlord's compliance with its
      repair, replacement, and improvement obligations pursuant to Section 6.01,
      or
      Landlord's financing costs, including interest expenses.

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Section
      4.04.  No
      Counterclaim, Abatement, etc. 

    

    The
      Base
      Rent, Additional Rent and all other sums payable hereunder shall be paid without
      notice or demand, counterclaim (except compulsory counterclaims), set off,
      deduction or defense and without abatement, suspension, diminution or reduction,
      and the obligations and liabilities of the Tenant hereunder shall in no way
      be
      released, discharged or otherwise affected (except as otherwise expressly
      provided herein). 

     

    

    ARTICLE
      5

    Use
      of Premises

    

    Section
      5.01.   Acceptance
      of the Premises. 

    

    The
      Tenant, by its execution of this Lease, hereby confirms as follows: Its
      occupancy of the Premises shall constitute its acceptance thereof; the Premises
      were delivered in good and clean order and condition; and that the Premises
      comply in all respects with the requirements of this Lease. This Section shall
      not, however, constitute any waiver by the Tenant of the covenants and
      warranties given by the Landlord in Section 16.01. In the event that the terms
      and conditions of this Section are inconsistent with the terms and conditions
      of
      Section 16.01, Section 16.01 shall control.

    

    Section
      5.02.  Use
      of Building and Premises. 

    

    (a)  The
      Premises will be used for production, warehouse and office space and uses
      related to the Tenant=s
      manufacturing business, and for such other purposes to which the Landlord may
      consent, which consent will not be unreasonably withheld or delayed.

     

    (b)
        The
      Tenant represents and warrants to the Landlord that the Tenant will not bring
      to, store at or otherwise emplace and bring any asbestos, or any other
      dangerous, hazardous, noxious or toxic materials, chemical, substances,
      pollutants or wastes which pose a hazard to the health and safety of the
      occupants of the Building as the same may be defined from time to time by any
      governmental authority ("Hazardous
      Substances")
      into
      the Building. "Hazardous
      Substances"
      shall
      not include incidental quantities of substances which are commonly used in
      offices, such as copier fluid, typewriter correction fluids and ordinary
      cleaning solvents, provided that such are at all times used, kept and stored
      in
      a manner which complies with all applicable legal requirements. Removal,
      containment or abatement of Hazardous Substances shall be done in compliance
      with (i) all applicable Legal Requirements and (ii) the performance prescribed
      by a contractor licensed and certified in the jurisdiction in which the Leased
      Premises is located to remove, contain or abate such Hazardous Substances.
      All
      employees hired by such contractor shall be certified in accordance with all
      applicable Legal Requirements and custom for projects involving the movement,
      containment or abatement of Hazardous Substances, the contractor shall keep
      and
      maintain all necessary records and procedures required by all applicable Legal
      Requirements. If at any time during or after the Initial Term or any Extended
      Term the removal, containment or abatement of any Hazardous Substances located
      on or in the Leased Premises that the Tenant brought or caused to be brought
      to
      the Leased Premises is required by any Legal Requirement, the Tenant shall
      proceed to remove, contain or abate the same as required by applicable Legal
      Requirements. Tenant shall not be responsible for any Hazardous substances
      or
      other environmental condition that existed prior to Tenant’s
      possession.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)  The
      Tenant shall not commit or suffer to be committed any waste upon the Premises
      or
      do or permit any action which would materially diminish the interests of the
      Landlord in the Premises.

    

    (d)  The
      Tenant shall at any time and from time to time, upon not less than twenty days'
      prior written request by the Landlord, execute, acknowledge and deliver to
      the
      Landlord a statement in writing, certifying (i) that this Lease is unmodified
      and in full effect (or, if there have been modifications, that this Lease is
      in
      full effect as modified, setting forth such modifications), (ii) the dates
      to
      which Base Rent and Additional Rent has been paid, (iii) that to the knowledge
      of the signer of such certificate no default by either the Landlord or the
      Tenant exists hereunder or specifying each such default of which the signer
      may
      have knowledge, (iv) the remaining Term hereof, (v) to the knowledge of the
      signer of such certificate, there are no proceedings pending or threatened
      against the Tenant before or by any court or administrative agency which if
      adversely decided would materially and adversely affect the financial condition
      and operations of the Tenant or if any such proceedings are pending or
      threatened to said signer's knowledge, specifying and describing the same,
      and
      (vi) such other matters as may reasonably be requested by the party requesting
      the certificate. It is intended that any such statements may be relied upon
      by
      any mortgagee or the Landlord or their assignees or by any prospective
      purchaser, assignee or subtenant of the Premises.

    

    (e)  The
      Tenant shall be permitted to install, at its sole cost and expense, all signage
      consistent with applicable Legal Requirements.

    

    (f)         
      Except
      as
      provided in this paragraph below, the Landlord, at its expense, will promptly
      (i) comply with all Legal Requirements and Insurance Requirements (in a manner
      that minimizes to the extent practicable any disruption of the Tenant's use
      of
      the Premises) and (ii) procure, maintain, and comply with all permits, licenses,
      and other authorizations for the use of the Premises. Notwithstanding the
      previous sentence, the Tenant, at its expense, will promptly comply with all
      Legal Requirements and Insurance Requirements related to any change in the
      use
      of the Premises after the Commencement Date, its responsibilities for
      maintenance and repair under this Lease, and any improvements installed by
      the
      Tenant at the Premises.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      6

    Maintenance
      and Repairs; Alterations

    

    Section
      6.01.  Care
      of Building, Parking Lot, and Premises. 

     

    (a)
        The
      Landlord shall, at its sole expense, be responsible for the following: all
      necessary repairs, replacements, and improvements to the structural elements
      of
      the Building, including, without limitation, the roof, the foundation, and
      all
      exterior glass and other surfaces; all capital repairs, replacements, and
      improvements to the cooling towers, condensers, compressors and related elements
      of the HVAC system for the Building, the boiler, the HVAC control system
      (excluding the heat pumps), the electrical switching equipment, and the
      sidewalks and paved parking area; and all repairs, replacements, and
      improvements covered by any warranty from the Landlord's contractors or
      sub-contractors. The Tenant shall be responsible for ordinary, routine
      maintenance and non-capital repairs to the cooling towers, condensers,
      compressors and related elements of the HVAC system for the Building, the
      boiler, the HVAC control system including replacement of heat pumps, the
      electrical switching equipment, and the sidewalks and paved parking area, and
      shall maintain in good order and repair all portions of the Premises that are
      not the responsibility of the Landlord, reasonable wear and tear excepted.
      

    

    (b)
        The
      Tenant shall take good care of the Premises and its improvements, alterations,
      trade fixtures, furniture, machinery and equipment, and shall repair and
      maintain the same at its expense. All damage or injury to the Premises caused
      by
      the Tenant moving property into or out of the Premises or by installation or
      removal of furniture, fixtures, or other property, or resulting from fire,
      explosion, short circuits, flow or leakage of water, steam, gas, sewerage,
      or by
      frost or by bursting or by leaking of pipes or plumbing, or from any other
      cause
      of any other kind or nature whatsoever, due to carelessness, omissions, neglect,
      improper conduct, or other cause of the Tenant, its servants, employees, agents,
      visitors, or licensees, shall be repaired, restored, or replaced promptly by
      the
      Tenant, to the reasonable satisfaction of the Landlord and at the Tenant's
      sole
      cost and expense, except to the extent such cost and expense is covered by
      proceeds of insurance recovered by or for the benefit of the Landlord. Without
      limiting the generality of the foregoing, the Tenant shall, at its sole
      expense:

    

    
      	 	
              (i)
                

            	
              keep
                the Building and the parking area, including the entrance area to
                the
                Building and any adjoining sidewalks and landscaped areas, clean,
                neat,
                properly-lighted, well-maintained, and free from snow, ice and
                debris;

            

    

    

    
      	 	
              (ii)

            	
              not
                permit awnings, air-conditioning units, fans or other projections
                to be
                attached to the outside walls of the Building;
                and

            

    

    

    
      	
            	(iii)	
              not
                permit, in any way, defacing of the Building or the parking
                area.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      6.02.   Alterations
      and Improvements. 

    

    (a)  The
      Tenant may make alterations or improvements to the Premises provide that the
      same do not affect any structural components of the Building or the Premises
      provided that any such alteration or improvement shall (i) not change the
      general character of the Premises, or reduce the fair market value thereof
      below
      its value immediately before such alteration or addition, or impair the
      usefulness of the Premises; (ii) is effected with due diligence, in a good
      and
      workmanlike manner and in compliance with all Legal Requirements; and (iii)
      is
      promptly and fully paid for by the Tenant. The Landlord's failure to object
      to a
      written notice from the Tenant requesting the Landlord's consent to any
      alterations or improvements that do affect structural components, within 15
      days
      of such request, shall constitute an approval of the same. On expiration or
      earlier termination of this Lease, the Tenant shall have the right to remove
      any
      improvements, alterations, trade fixtures, furniture, machinery and equipment
      installed within the Premises by and at the expense of the Tenant, provided
      that
      the Tenant shall repair any damage caused to the Premises or the Building in
      effecting such removal, and provided, further, that the Tenant shall not have
      the right so to remove any structural component, partition, or any portion
      of
      the HVAC, plumbing, electrical or mechanical systems.

    

    (b)
        All
      improvements, alterations, trade fixtures, furniture, machinery and equipment
      of
      the Tenant located at the Leased Premises 30 days following expiration or
      earlier termination of this Lease shall be considered abandoned by the Tenant
      and may be appropriated, sold, destroyed, or otherwise disposed of by the
      Landlord without obligation to account therefor, and the Tenant will pay the
      Landlord, upon demand, all reasonable costs and expenses incurred by the
      Landlord in removing, storing or disposing of any of the foregoing.

    

    ARTICLE
      7

    Utilities
      and Services; Taxes

    

    Section
      7.01.   Utilities
      and Services. 

    

    The
      Tenant shall pay or cause to be paid all charges for all public or private
      utility services at any time rendered to or in connection with the Premises
      or
      any part thereof, shall comply with all contracts and tariffs relating to such
      services and shall do all other things required for the maintenance and
      continuation of all such services. In the event that any utility service for
      the
      Premises is provided for or through the Landlord, the Tenant shall pay to the
      Landlord, as Additional Rent, the Landlord's cost therefor.

    

    Section
      7.02.   Taxes.
      

    The
      Tenant shall pay, as Additional Rent for each year of this Lease, all Taxes
      assessed against the Premises. The Tenant shall pay all sums due pursuant to
      this Section not later than 10 days prior to the date due and payable to the
      taxing authority. The Tenant may, at its sole expense, contest (after prior
      written notice to the Landlord) by appropriate legal proceedings conducted
      in
      good faith and with due diligence, the amount or validity of application, in
      whole or in part, of any Tax or lien thereof affecting the Premises or any
      part
      thereof, provided that (a) in the case of an unpaid Tax or lien therefor, such
      proceedings shall suspend the collection thereof from the Landlord and the
      Premises; and (b) neither the Premises nor any part thereof or interest therein
      would be in any danger of being sold, forfeited or lost. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      8

    Liens

    

    Section
      8.01.   Covenant
      Against Liens. 

    

    If,
      because of any act or omission of the Tenant, any mechanic's lien or other
      lien,
      charge or order for the payment of money shall be filed against Landlord or
      any
      portion of the Premises, the Tenant shall, at its own cost and expense, cause
      the same to be discharged of record or bonded within ninety (90) days thereof;
      and the Tenant shall indemnify and save harmless the Landlord against and from
      all costs, liabilities, suits, penalties, claims and demands, including
      reasonable counsel fees, resulting therefrom.

    

    ARTICLE
      9

    Insurance

    

    Section
      9.01.   Risks
      to be Insured. 

    

    The
      Tenant at its expense will maintain with commercial insurers qualified to do
      business in Vermont:

    

    (a)         
      insurance against personal injury and property damage liability insurance
      against claims for bodily injury, death or property damage occurring on, in
      or
      about the Premises during the term of this Lease, of not less than One
      Million Dollars in respect of personal injury or death and of not less
      than Five Million Dollars in respect of any instance of property
      damage; and

    

    (b)
        insurance
      in respect of the Tenant's equipment and improvements in, on or upon the
      Premises, in an amount not less than the full replacement cost therefor;
      and

    

    (c)
        casualty
      insurance on the Building and the parking area, with broad form extended
      coverage and in amounts at least equal to the full replacement costs;
      and

    

    (d)
        plate
      glass insurance with respect to all plate glass in the Premises, in an amount
      not less than the full replacement costs therefor.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      9.02.        Policy Provisions.

     

    All
      insurance maintained by the Tenant pursuant to Section 9.01 shall (a) provide
      that the Landlord be an additional insured as its interests may appear, (b)
      provide that no cancellation, reduction in amount or material change in coverage
      thereof shall be effective until at least 30 days after receipt of written
      notice thereof by the Landlord and (c) provide that it is not subject to
      invalidation of the Landlord's interest by reason of any act or omission on
      the
      part of the Tenant.

    

    Section
      9.03.   Delivery
      of Policies; Insurance Certificates. 

    

    The
      Tenant will deliver to the Landlord promptly upon request true and accurate
      copies of all certificates of insurance with respect to the Premises which
      the
      Tenant is required to maintain pursuant to Section 9.01.

    

    Section
      9.04.   Waiver
      of Subrogation. 

    

    Each
      party releases the other party from any and all liability or responsibility
      (to
      the other party or anyone claiming through or under them by way of subrogation
      or otherwise) for loss or damage to property resulting from causes insured
      against, even if such casualty has been caused by the fault or negligence of
      the
      other party, or anyone for whom such party may be responsible. This release
      shall be applicable and in force and effect only with respect to loss or damage
      occurring during a time when the releasor's policies contain a clause or
      endorsement to the effect that any such release shall not adversely affect
      or
      impair the policies or prejudice the right of the releasor to recover under
      the
      policy in question. The release shall not limit the effectiveness of any
      indemnity, assumption of risk or release or liability contained elsewhere in
      this Lease.

     

    

    ARTICLE
      10

    Damage
      or Destruction

    

    Section
      10.01.  
Damage,
      Destruction. 

    

    (a)
        If
      the
      Building or the parking area are damaged or destroyed by fire or any other
      cause: 

    

    
      	 	
              (i)

            	
              If
                repair or restoration is possible within the amount of the insurance
                proceeds payable to the Landlord on account of such damage or destruction,
                the Landlord will restore the Building and the parking area at the
                Landlord's expense, beginning and prosecuting such restoration until
                completion with reasonable promptness and diligence. The proceeds
                of the
                Tenant's casualty policy shall be made available (to the Landlord)
                as
                necessary to repair or restore the Building and the parking area.
                To the
                extent that the Tenant's use and enjoyment of the Premises or the
                parking
                area are materially affected by such damage or destruction, the Base
                Rent
                and Additional Rent otherwise payable by the Tenant during the period
                of
                repair and restoration shall be equitably reduced.
                

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    
      	
               

            	 	 	
              (ii)

            	
              If
                repair or restoration is not possible within the amount of the insurance
                proceeds payable on account of such damage or destruction, this Lease
                Agreement and the term hereby granted will terminate and expire as
                of the
                date of such damage or destruction and the Base Rent and any Additional
                Rent will be apportioned as of the date of such damage or
                destruction.

            

    

    

    (b)
        In
      the
      event that the Landlord determines not to repair or restore following damage
      to
      or destruction of the Building, the Landlord shall provide notice to the Tenant
      as soon as reasonably practicable after such determination is made, provided,
      however, that the Tenant shall have the right to elect to terminate this Lease
      if the Landlord has not provided written notice of the Landlord's election
      to
      either repair or restore or not repair or restore within ninety (90) days after
      the damage or destruction occurs. The Tenant shall have 60 days from its receipt
      of the notice to exercise the option described in Section 20.01; the purchase
      price shall be as set forth in Section 20.01. In the event that the Landlord
      elects not to repair or restore and the Tenant elects to exercise its option
      to
      purchase pursuant to Section 20.01, then the Tenant shall be entitled to the
      proceeds of any casualty insurance proceeds related to the damage or
      destruction. If the Landlord is unable to restore the Premises within one
      hundred twenty (120) days from the date of casualty, Tenant shall have the
      option to terminate the Lease upon thirty (30) days notice.

     

    

    ARTICLE
      11

    Condemnation

    

    Section
      11.01.  
Condemnation
      or Eminent Domain. 

    

    If,
      at
      any time during the term of this Lease, title to a substantial portion of the
      Premises (meaning thereby so much as shall render the Premises substantially
      unusable by the Tenant for the purposes referred to in Section 5.2) shall be
      taken by exercise of the right of condemnation or eminent domain, or by
      agreement between the Landlord and those authorized to exercise such right
      (all
      such proceedings being collectively referred to as a "Taking"), this Lease
      shall
      terminate and expire on the date of such taking and accrued Base Rent and
      Additional Rent shall be apportioned and paid to the date of the Taking. If
      title to less than a "substantial portion" of the Premises shall be the subject
      of the Taking, so that the business conducted in the Premises can be continued
      without material diminution, this Lease shall continue in full force and effect.
      The Landlord and Tenant shall each be entitled to claim damage awards from
      the
      authority prosecuting the Taking in Condemnation based upon the respective
      interests in the Premises each of them would have had but for the
      Taking.

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    If
      (x)
      the Taking results in damage to or destruction of the Building which materially
      affects the Tenant's use of the Premises and (y) the Landlord determines not
      to
      repair or restore the Building, then the Landlord shall, as soon as reasonably
      practicable after the determination is made, provide written notice thereof
      to
      the Tenant, provided, however, that the Tenant shall have the right to elect
      to
      terminate this Lease if the Landlord has not provided written notice of the
      Landlord's election to either repair or restore or not repair or restore within
      thirty (30) days after the Taking In Condemnation occurs. The Tenant shall
      have
      60 days from its receipt of the notice to exercise the option described in
      Section 20.01; the purchase price shall be as set forth in Section 20.01,
      reduced by the amount of the diminution in the fair market value of the Premises
      as a result of the Taking In Condemnation.

     

    

    ARTICLE
      12

    Liability;
      Indemnification

    

    Section
      12.01.  
No
      Liability. 

    

    Except
      for losses due to the Landlord's gross negligence or willful misconduct or
      the
      Landlord's breach of his obligations under this Lease, the Tenant assumes all
      risk of loss or damage to the Tenant's equipment, improvements and other
      property (the "Tenant's
      Property").
      The
      Tenant assumes the risk that loss or damage to the Premises or to the Tenant's
      Property may result in loss of income, profits or good will to the business
      of
      the Tenant or interests of others in the Tenant's Property. The Tenant releases
      and holds the Landlord harmless from liability for these losses or damage,
      except arising out of Landlord's gross negligence or willful misconduct. The
      Tenant's Property includes all goods, equipment, inventory, merchandise, records
      and other personal property and all fixtures, improvements and betterments
      placed in or about the Premises belonging to the Tenant or any person connected
      with, or claiming under or through the Tenant. The Tenant agrees to indemnify
      the Landlord and hold him harmless from all loss or claim, arising out of loss
      or damage to Tenant's Property.

    

    Section
      12.02.   
Indemnification,
      Liability Insurance. 

    The
      Tenant will protect, indemnify the Landlord and save it harmless from all claims
      and liabilities, obligations, claims, damages, penalties, expenses (including,
      but without limitation, reasonable attorney's fees and expenses) imposed upon
      or
      incurred by or asserted against the Landlord or or against the Premises by
      reason of the occurrence or existence of any of the following during the term
      hereof or thereafter while the Tenant is in possession of the Premises: (i)
      possession of the Premises or any interest therein; (ii) any accident injury
      to
      or death of persons or loss of or damage to property occurring in or about
      the
      Premises as a result of or in connection with the Tenant's use or occupancy
      of
      the Premises, except to the extent caused by the negligence, intentional or
      wrongful acts of the Landlord, his agents, employees or contractors or a breach
      by the Landlord of its obligations under this Lease; (iii) any use, nonuse
      or
      condition of the Premises or any part thereof resulting from the Tenant's use
      or
      occupancy of the Premises which are not otherwise the Landlord's obligations
      pursuant to this Lease; (iv) any failure on the part of the Tenant to perform
      or
      comply with any of the terms of this Lease; (v) the performance of any labor
      or
      services or the furnishing of any materials or other property in respect of
      the
      Premises or any part thereof to or by the Tenant; or (vi) any negligence or
      tortious act on the part of the Tenant or any of its agents, contractors,
      sublessees, licensees or invitees. In case any action, suit or proceeding is
      brought against the Landlord by reason of any such occurrence, the Tenant,
      upon
      request, will at the Tenant's expense resist and defend such action, suit or
      proceeding or cause the same to be resisted or defended by counsel designated
      by
      the Tenant and reasonably satisfactory to the Landlord. The obligations of
      the
      Tenant under this Section shall survive any termination of this Lease for any
      cause of action arising during the term of this Lease.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      13

    Assignment
      and Subletting

    

    Section
      13.01.  
Sublease
      or Assignment. 

    

    The
      Tenant shall have the right to assign, mortgage or hypothecate this Lease or
      to
      sublet the Premises or any part thereof upon such terms and conditions as are
      not inconsistent with the terms of this Lease and as are acceptable to the
      Tenant, so long as the Tenant remains fully liable to the Landlord for the
      performance of the terms and obligations of this Lease to be kept and performed
      by the Tenant.

     

    

    ARTICLE
      14

    Inspection

    

    Section
      14.01.  
Landlord's
      Inspection. 

    

    The
      Landlord or its agents, employees or contractors, shall have the right to enter
      into and upon all parts of the Premises at reasonable times upon one business
      day's
      prior
      written notice to the Tenant to:

    

    (a)  inspect
      same or make repairs as the Landlord may reasonably deem necessary (but without
      any obligations to do so, except as expressly provided for herein) provided
      the
      Landlord, its agents, employees or contractors do not disturb the normal
      business functions of the Tenant and further provided that no prior notice
      from
      the Landlord to the Tenant shall be required in the event of an emergency;
      and

    

    (b)
        show
      the
      Premises to prospective tenants within the last six months of the Term, and
      to
      purchasers and lenders. The Tenant shall not be entitled to any abatement or
      reduction of rent by reason thereof, nor shall any such entry be deemed an
      actual or constructive eviction.

    

     

    ARTICLE
      15

    Events
      of Default; Remedies

    

    Section
      15.01.   
Default.
      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      any
      one or more of the following events (an "Event of Default") shall
      happen:

    

    (a)
        If
      the
      Tenant shall fail to make due and punctual payment of any Base Rent or
      Additional Rent payable under this Lease as the same shall become due and
      payable, and such failure shall continue for a period of ten (10) days after
      written notice thereof by the Landlord to the Tenant specifying with
      particularity the nature of the default and the monetary amount required to
      be
      paid to the Landlord to cure the same; or

    

    (b)
        If
      the
      Tenant shall fail to perform or observe any other agreement, term, covenant
      or
      condition required by the terms of this Lease to be performed or observed by
      it,
      and such failure shall continue for a period of thirty (30) days after written
      notice from the Landlord to the Tenant specifying with particularity the items
      in default and the specific actions required to cure such default or, in the
      case of a default which cannot with due diligence be cured within said thirty
      (30) day period, if the Tenant fails to commence within said thirty (30) day
      period the steps necessary to cure the same or thereafter to prosecute the
      curing of such default with due diligence (it being understood that the time
      of
      the Tenant within which to cure shall be extended for such period as may be
      necessary to complete the same with all due diligence); or 

    

    (c)
        If
      the
      Tenant shall file a voluntary petition in bankruptcy or shall be adjudicated
      bankrupt or insolvent, or if there shall be appointed a receiver or trustee
      of
      all or substantially all of the property of the Tenant or if the Tenant shall
      make any assignment for the benefit of the Tenant's creditors, and such
      condition shall continue for a period of fifteen (15) days after written notice
      from the Landlord specifying with particularity the nature of the alleged
      default; or

    

    (d) [Intentionally
      omitted]

     

    then,
      and
      in any such event, at any time thereafter while such Event of Default shall
      exist and be continuing, the Landlord may give written notice to the Tenant
      stating that this Lease and the term hereby demised shall expire and terminate
      on the date specified in such notice, which shall be at least 30 days (15 days
      if for non-payment of Base Rent or Additional Rent) after the giving of notice,
      and upon the date specified in such notice, the term of this Lease and all
      rights of the Tenant under this Lease shall expire and terminate. 

    

    Section
      15.02.  
Repossession.
      

    

    Upon
      any
      such expiration, (i) the Landlord, subject to the provisions of this Article,
      shall have the right to immediately regain possession of the Premises according
      to applicable law, and to exclude the Tenant from further use, occupancy and
      enjoyment thereof and (ii) the Landlord shall comply with Legal Requirements
      to
      mitigate all damages.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      15.03.  
Survival
      of Tenant's Obligations. 

     

    In
      case
      of any such default, re-entry, expiration and/or dispossession by summary
      proceedings or otherwise: (a) all Base Rent and Additional Rent due to the
      date
      of the Landlord's recovery of possession of the Premises shall be paid by the
      Tenant, together with such expenses as the Landlord may incur for legal
      expenses, reasonable attorneys' fees, brokerage and/or putting the Premises
      in
      good order, or for preparing the same for re-rental; (b) the Landlord may re-let
      the Premises or any part or parts thereof, either in the name of the Landlord
      or
      otherwise, for a term or terms which at the Landlord's option may be less than
      or exceed the period which otherwise would have constituted the balance of
      the
      term of this Lease excluding further extensions, and may grant concessions
      or
      free rent; and (c) the Tenant or the legal representatives of the Tenant shall
      also pay the Landlord, as damages for the failure of the Tenant to observe
      and
      perform the Tenant's covenants herein contained, any deficiency between the
      Base
      Rent and Additional Rent hereby reserved and/or covenanted to be paid, and
      the
      net amount, if any, of the rents collected or to be collected on account of
      the
      lease or leases of the Premises for each month of the period which otherwise
      would have constituted the balance of the term of this Lease excluding further
      extensions. Any such damages shall be paid in monthly installments by the Tenant
      on the last day of each month and no suit brought to collect the amount of
      the
      deficiency for any month or months shall prejudice in any way the rights of
      the
      Landlord to collect the deficiency for any subsequent month or months by a
      similar proceeding. The Landlord, at the Landlord's option, may make such
      alterations, repairs, and replacements in the Premises as the Landlord in the
      Landlord's reasonable judgment considers advisable and necessary for the purpose
      of re-letting the Premises; and the making of such alterations and/or
      decorations shall not operate or be construed to release the Tenant from
      liability hereunder as aforesaid. Mention in this Lease of any particular remedy
      shall not preclude the Landlord from any other remedy, in law or in equity.
      The
      foregoing remedies and rights of the Landlord are cumulative. 

     

    

    ARTICLE
      16

    Quiet
      Enjoyment

    

    Section
      16.01.  
Quiet
      Enjoyment; Covenant of Title.
      

    

    The
      Landlord covenants that the Tenant, on paying all Base Rent and Additional
      Rent
      due hereunder in accordance with the terms of this Lease and performing all
      other covenants by it to be performed hereunder, shall and may peaceably have
      and enjoy the Premises for the Initial Term and any Extended Term. The Landlord
      warrants that it has the full right, power and authority to enter into this
      Lease, that the Building and the parking area are free from covenants and
      restrictions the effect of which would adversely affect the Tenant's use of
      the
      Premises permitted by this Lease, and that this Lease is the valid, effective
      and binding obligation of the Landlord and is enforceable by the Tenant in
      accordance with its terms, that the Premises comply with all Legal Requirements.
      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      17

    End
      of Term

    

    Section
      17.01.  
Removal
      and Surrender. 

    

    

    Upon
      the
      expiration or earlier termination of this Lease, the Tenant, at its expense,
      shall quit and surrender to the Landlord the Premises in good order and
      condition and broom clean, ordinary wear and tear excepted, and if requested
      by
      the Landlord, shall remove, at the Tenant's expense all of the Tenant's Property
      therefrom.

    

    

    Section
      17.02.  
Holding
      Over. 

    

    Any
      holding over after the expiration of the term hereof shall be construed to
      be a
      tenancy from day to day only, at one and one-half times the Base Rent in effect
      immediately prior to such expiration (prorated on a daily basis) and otherwise
      on all the terms and conditions herein specified, so far as
      applicable.

     

    

    ARTICLE
      18

    Subordination,
      Attornment and Non-Disturbance

    

    Section
      18.01.  
Subordination
      of Lease. 

    

    The
      Tenant agrees and acknowledges that this Lease is and shall be subordinate
      to
      any and all Mortgages now or hereafter recorded and constituting a lien against
      the Premises. Notwithstanding the provisions of this Section, the subordination
      of this Lease to any superior Mortgage which is now or may hereafter be made,
      or
      to any renewal, modification, replacement or extension thereof, is subject
      to
      the express conditions that, so long as this Lease has not expired or been
      terminated in accordance with its terms and no Event of Default shall exist
      and
      be continuing:

    

    (a)
        the
      Tenant shall not be joined as a party defendant in any foreclosure action or
      proceeding which may be instituted or taken by the holder of such superior
      Mortgage; and

    

    (b)
        the
      Tenant shall not be evicted from the Premises, nor shall the Tenant's leasehold
      estate under this Lease be terminated or disturbed, nor shall any of the
      Tenant's rights under this Lease be affected in any way, by reason of any
      default under such superior Mortgage.

    

    Section
      18.02.  
Attornment.
      

    

    If
      the
      holder of a superior Mortgage shall succeed to the rights of the Landlord under
      this Lease, whether through possession or foreclosure action or delivery of
      a
      deed in lieu of foreclosure, then at the request of such party so succeeding
      to
      the Landlord's rights (herein sometimes called successor landlord) and upon
      such
      successor landlord's written agreement to accept the Tenant's attornment, the
      Tenant shall attorn to and recognize such successor landlord as the Tenant's
      landlord under this Lease, and shall promptly execute and deliver any instrument
      that such successor landlord may request to evidence such attornment. Upon
      such
      attornment this Lease shall continue in full force and effect as if it were
      a
      direct lease between the successor landlord and the Tenant upon all of the
      terms, conditions and covenants as are set forth in this Lease except that
      the
      successor landlord shall not:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)
                

            	     	
              be
                liable for any previous act or omission of the Landlord under this
                Lease;

            

    

    

    (b) 
be
      subject to any offset, not expressly provided for in this Lease, which shall
      have theretofore accrued to the Tenant against the Landlord; or

    

    (c)
        be
      bound
      by any previous modification of this Lease, not expressly provided for in this
      Lease, by any previous prepayment of more than one month's Base Rent or
      Additional Rent, unless such modification or prepayment shall have been
      expressly approved in writing by the holder of the superior Mortgage through
      or
      by reason of which the successor landlord shall have succeeded to the rights
      of
      the Landlord under this Lease.

     

    

    ARTICLE
      19

    General
      Provisions

    

    Section
      19.01.  
Successors
      and Assigns. 

    

    All
      rights and liabilities herein given to, or imposed upon, the respective parties
      hereto shall extend to and bind the several respective heirs, executors,
      administrators, successors, and assigns of the said parties.

    

    Section
      19.02.  
Force
      Majeure. 

    

    In
      the
      event that the Landlord or the Tenant shall be delayed, hindered in or prevented
      from the performance of any act required hereunder, by reason of strikes,
      lock-outs, labor troubles, inability to procure materials, failure of power,
      restrictive governmental laws or regulations, riots, insurrection, the act,
      failure or act or default of the other party, war or other reason beyond its
      control, then performance of such act shall be excused for the period of the
      delay, and the period for the performance of any such act shall be extended
      for
      a period equivalent to the period of such delay.

    

    Section
      19.03.  
Tenant
      and Landlord Defined, Use of Pronoun. 

    

    The
      word
      "Tenant" shall be deemed and taken to mean each and every person or party
      mentioned as a tenant herein, be the same one or more, and if there shall be
      more than one tenant, any notice required or permitted by the terms of this
      Lease may be given by or to any one thereof, and shall have the same force
      and
      effect as if given by or to all thereof. The term "Landlord", as used in this
      Lease, means only the owner for the time being of the fee simple interest of
      the
      real property of which the Leased Premises form a part, so that, in the event
      of
      any sale thereof, the seller shall be and hereby is entirely freed and relieved
      of all covenants and obligations of the Landlord hereunder not theretofore
      accrued, and it shall be deemed and construed, without further agreement between
      the parties to this Lease or between such parties and the purchaser of the
      property, that such purchaser has assumed and agreed to carry out any and all
      covenants and obligations of the Landlord hereunder. The use of the neuter
      singular pronoun to refer to the Landlord or the Tenant shall be deemed a proper
      reference even though the Landlord or the Tenant may be an individual, a
      partnership, a corporation, or a group of two or more individuals or
      corporations. The necessary grammatical changes required to make the provisions
      of this Lease apply in the plural sense where there is more than one Landlord
      or
      Tenant, and to corporations, associations, partnerships, or individuals, males
      or females, shall in all instances be assumed as though in each case fully
      expressed.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      19.04.  
Waiver
      of Rule of Construction. 

    

    The
      parties waive the benefit of any rule that this Lease is to be construed against
      one party or the other.

    

    Section
      19.05.  
Captions,
      Headings. 

    

    The
      captions, section numbers and table of contents appearing in this Lease are
      inserted only as a matter of convenience and in no way define, limit, construe
      or describe the scope or intent of such sections or articles, nor in any way
      affect this Lease.

    

    Section
      19.06.  
Entire
      Agreement. 

    

    This
      Lease and any Rider, Schedules or Exhibits attached hereto, set forth all the
      covenants, promises, agreements, conditions and understandings between the
      Landlord and the Tenant concerning the Premises and there are no covenants,
      promises, agreements, conditions or understandings, either oral or written,
      between them, other than as herein and therein set forth. Except as herein
      otherwise provided, no subsequent alteration, amendment, change or addition
      to
      this Lease shall be binding upon the Landlord or the Tenant unless reduced
      to
      writing and signed by the party against whom such alteration, amendment, change
      or addition is to be enforced.

    

    Section
      19.07.  
Governing
      Law. 

    

    This
      Lease shall be governed by and construed in accordance with the laws of the
      State of Vermont.

    

    

    Section
      19.08.  Landlord’s
      Right to Perform.

    

    If
      the
      Tenant shall fail to make any payment or perform any act required to the made
      or
      performed by it under this Lease, the Landlord, upon 10 day's
      notice
      to the Tenant and without waiving or releasing any obligation or default, may
      (but shall be under no obligation to) at any time thereafter make payment or
      perform such reasonable act for the account and at the expense of the Tenant,
      and may enter the Premises for such purpose and take all such action thereon
      as,
      in the reasonable judgment of the Landlord, may be necessary or appropriate
      therefor. No such entry shall be deemed an eviction of the Tenant. All payments
      so made by the Landlord and all costs and expenses (including, without
      limitation, attorney's
      fees
      and expenses) incurred in connection therewith or in connection with the
      performance by the Landlord of any such act shall constitute Additional
      Rent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      20

    Purchase
      Option

     

    Section
      20.01.  
Option
      to Purchase. 

    

    (a)  The
      Tenant shall have the option to purchase the Premises 

    

    
      	 	
              (i)

            	
              During
                the Initial Term for a purchase price of Four Million Dollars
                ($4,000,000); and

            

    

    

    
      	 	
              (ii)

            	
              During
                the Extended Term for a purchase price to be calculated as of the
                first
                day of the calendar quarter preceding the Tenant's
                notice of exercise as follows: 

            

    

    

    (A) By
      beginning with the "fair market values" determined by three independent
      appraisers, one appraiser selected by Landlord, one appraiser selected by the
      Tenant, and the third appraiser selected by the other two
      appraisers.

    

    (B) Each
      appraiser shall be duly licensed by the State of Vermont, shall have had not
      fewer than ten years=
      experience in the appraisal of commercial real estate in Chittenden County,
      Vermont and shall be highly recognized in the community as an appraiser of
      real
      estate.

    

    (C) Each
      appraiser shall issue a written report of his determination of "fair market
      value"
      of the
      Premises as of the first day of the calender quarter preceding the date of
      the
      Tenant=s
      notice
      of exercise. For the purposes of this Lease Agreement, the "fair
      market value"
      of the
      Premises means (x) the maximum amount that a single purchaser would reasonably
      be expected to pay for the entire Premises on such day, free and clear of liens,
      claims and encumbrances, in a single cash purchase, taking into account the
      current condition, use and zoning of the Premises, increased by (y) the
      additional amount, if any, that such purchaser would pay for an existing
      favorable financing or leases on the Premises, and decreased by (z) the amount,
      if any, that such purchaser would subtract from the unencumbered fair market
      value of the Premises by reason of any existing unfavorable financing or
      leases.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (D) Each
      report shall be completed and delivered to the parties and the other appraisers
      not later than 90 days after the first day of the month next following the
      appointment of the third appraiser. Following delivery of the written reports,
      the third appraiser shall forthwith determine the purchase price by calculating
      the average of the three valuations. 

    

    (b)  The
      Tenant may exercise this option (i) during the Initial Term by providing written
      notice to the Landlord no later than six months prior to the expiration of
      the
      Initial Term and (ii) during the Extended Term by providing written notice
      to
      the Landlord no later than six months prior to the expiration of the Extended
      Term. If the option is not exercised within the period of time so stated, it
      shall be null, void and of no further force or effect.

    

    (c)  The
      rights granted to the Tenant shall be exercised at such time as it mails a
      letter, postage prepaid, to the Landlord by registered or certified mail with
      return receipt requested, stating that it desires to exercise its option. Said
      letter shall propose a time, place and date for the closing. Said letter need
      not contain matters descriptive of the land as to which the option is exercised.
      

    

    (d)
        The
      closing of the sale of the Interest shall occur at the offices of Lisman,
      Webster & Leckerling, P.C. 84 Pine Street, Burlington, Vermont, or such
      other location agreeable to the parties, within 30 days of the date on which
      the
      parties receive the price from the appraiser. At such closing, the Landlord
      shall deliver to the Tenant, against tender of the purchase price, a warranty
      deed evidencing marketable title to the Premises (excepting only liens, claims
      and encumbrances created or suffered by the Tenant.

    

    ARTICLE
      21

    Notices

    

    Section
      21.01.  
Notices.
      

    

    Any
      notices to be given pursuant to this Lease shall be deemed given when received
      or when sent by a writing deposited in the United States mails, certified mail
      or registered mail, postage prepaid, and addressed as follows:

    

    (a)  If
      to
      Landlord:  

    

    (b)  If
      to
      Tenant:   

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    or
      to
      such other person and/or address as may be specified by the party entitled
      to
      notice, so long as such specification is made in accordance with the terms
      of
      this Section.

    

    IN
      WITNESS WHEREOF, the parties have executed this Lease, in duplicate originals,
      effective upon execution, at which time the Lease Agreement between Twincraft,
      Inc. and Asch Partnership (dated August 11, 1998) shall terminate.

     

    
       

      
        	 	 	
                Asch Partnership (Landlord)

                 

                /s/
                  Peter Asch

              
	 	 	 	By:
                	Peter
                Asch 
	 	 	 	Its:	Agent

      

 

    

    STATE
      OF
      VERMONT

    CHITTENDEN
      COUNTY, SS.

    

    At
      Winooski, in said County and State, this 3rd
      day of
      January, 2007, personally appeared Peter Asch, POA, and he acknowledged this
      instrument by him signed, to be his free act and deed and the free act and
      deed
      of Asch Partnership.

    

    Before
      me,_______________________________________

    Notary
      Public

    

     

    
       

      
         

        
          	 	 	
                  Twincraft, Inc. (Tenant)

                   

                  /s/
                    Peter Asch

                
	 	 	 	By:
                  	Peter
                  Asch 
	 	 	 	Its:	Agent

        

    

    STATE
      OF
      VERMONT

    CHITTENDEN
      COUNTY, SS.

    

    At
      Winooski, in said County and State, this 3rd day of January, 2007,
      personally appeared Peter Asch, and he acknowledged this instrument by
      him signed, to be his free act and deed and the free act and deed of
Twincraft, Inc.

    

    Before
      me,_______________________________________

    Notary
      Public

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    Legal
      Description of Premises

    

     

    That
      portion of the industrial building (the “Building”) located at property known as
      Lot 5, Highland Industrial Park, being known and designated as 2 Tigan Street,
      which consists of a new addition of approximately 17,800 square feet to the
      northeast end of the Building, as constructed, together with all appurtenances
      thereto and any and all personal property of the Lessor therein, which is
      identified as the Proposed Shipping and Receiving Addition on the Site Plan
      dated April 28, 1998, a copy of which is attached as Exhibit “A”
hereto.

    

    Property
      known as Lot 5, Highland Industrial Park, the industrial building thereon being
      known and designated as 2 Tigan Street, together with all buildings and
      improvements thereon and appurtenances thereto and any and all personal property
      of the Lessor therein, with the exception of that portion of the Premises which
      is identified as the Proposed Shipping and Receiving Addition on the Site Plan
      dated April 28, 1998, a copy of which is attached as Exhibit “A” hereto, as
      constructed, together with all appurtenances thereto and any and all personal
      property of the Lessor therein.Execution
        Version

      

      

      

      

      STOCK
        PURCHASE AGREEMENT

      

      by
        and
        among

      

      PETER
        A.
        ASCH, 

      

      RICHARD
        D. ASCH,

      

      A.
        LAWRENCE LITKE

      

      and

      

      JOSEPH
        M.
        CANDIDO

      

      as
        Sellers

      

      and

      

      LANGER,
        INC.,

      

      as
        Purchaser

      

      relating
        to the shares of 

      

      TWINCRAFT,
        INC.

      

      

      

      Dated
        as
        of November 14, 2006

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      TABLE
        OF
        CONTENTS

    
      	 	 	
              Page

            
	 	 	 
	
              ARTICLE
                I DEFINITIONS

            	
              1

            
	
              ARTICLE
                II SALE AND PURCHASE OF SHARES

            	
              10

            
	
              SECTION
                2.1

            	
              PURCHASE
                OF SHARES.

            	
              10

            
	
              SECTION
                2.2

            	
              CONSIDERATION.

            	
              10

            
	
              SECTION
                2.3

            	
              2007
                DEFERRED CONSIDERATION.

            	
              12

            
	
              SECTION
                2.4

            	
              2008
                DEFERRED CONSIDERATION.

            	
              13

            
	
              SECTION
                2.5

            	
              DETERMINATION
                OF CALCULATIONS.

            	
              13

            
	
              SECTION
                2.6

            	
              MANNER
                AND FORM OF DEFERRED CONSIDERATION PAYMENT; TERMINATION
                OF DEFERRED CONSIDERATION OBLIGATIONS.

            	
              14

            
	
              SECTION
                2.7

            	
              AUDIT
                REPORT; WORKING CAPITAL ADJUSTMENT.

            	
              14

            
	
              SECTION
                2.8

            	
              TRANSFER
                RESTRICTIONS; CERTAIN COVENANTS REGARDING THE CONSIDERATION
                SHARES.

            	
              15

            
	
              SECTION
                2.9

            	
              LIMITATIONS
                ON ISSUANCES OF PURCHASER COMMON STOCK.

            	
              17

            
	
              ARTICLE
                III CLOSING

            	
              18

            
	
              SECTION
                3.1

            	
              TIME
                AND PLACE OF CLOSING.

            	
              18

            
	
              SECTION
                3.2

            	
              CONDITIONS
                PRECEDENT TO PURCHASER’S OBLIGATION TO CLOSE.

            	
              18

            
	
              SECTION
                3.3

            	
              CONDITIONS
                PRECEDENT TO SELLERS’ OBLIGATION TO CLOSE.

            	
              21

            
	
              ARTICLE
                IV REPRESENTATIONS AND WARRANTIES

            	
              23

            
	
              SECTION
                4.1

            	
              REPRESENTATIONS
                AND WARRANTIES OF THE SELLER.

            	
              23

            
	
              (a)

            	
              Organization.
                Except as set forth on Schedule 4.1 (a),

            	
              23

            
	
              (b)

            	
              Articles
                of Incorporation, Bylaws and Corporate Records.

            	
              23

            
	
              (c)

            	
              Capitalization
                of the Company.

            	
              24

            
	
              (d)

            	
              Capitalization
                of the Subsidiaries.

            	
              24

            
	
              (e)

            	
              Authority.

            	
              25

            
	
              (f)

            	
              Subsidiaries.

            	
              25

            
	
              (g)

            	
              Financial
                Statements.

            	
              25

            
	
              (h)

            	
              Absence
                of Undisclosed Liabilities.

            	
              25

            
	
              (i)

            	
              Taxes

            	
              26

            
	
              (j)

            	
              Tangible
                Property.

            	
              27

            
	
              (k)

            	
              No
                Conflict.

            	
              28

            
	
              (l)

            	
              Absence
                of Changes.

            	
              29

            
	
              (m)

            	
              Litigation.

            	
              31

            
	
              (n)

            	
              Licenses
                and Permits: Compliance With Law.

            	
              32

            
	
              (o)

            	
              Real
                Property Leases.

            	
              32

            
	
              (p)

            	
              Real
                Property Ownership.

            	
              33

            
	
              (q)

            	
              Intellectual
                Property.

            	
              33

            
	
              (r)

            	
              Contracts.

            	
              35

            
	
              (s)

            	
              Labor
                Matters and Employees.

            	
              36

            
	
              (t)

            	
              Pension
                and Benefit Plans.

            	
              38

            
	
              (u)

            	
              Insurance.

            	
              40

            
	
              (v)

            	
              Customers
                and Suppliers.

            	
              41

            
	
              (w)

            	
              Governmental
                Approvals and Third Party Consents.

            	
              42

            
	
              (x)

            	
              Transactions
                with Related Parties.

            	
              42

            
	
              (y)

            	
              Brokers
                and Intermediaries.

            	
              42

            
	
              (z)

            	
              Title
                to Securities.

            	
              42

            
	
              (aa)

            	
              List
                of Bank Accounts and Proxies.

            	
              43

            
	
              (bb)

            	
              Environmental
                and Safety Matters.

            	
              43

            
	
              (cc)

            	
              Accounts
                Receivable, Notes Receivable, and Costs in Excess of
                Billing.

            	
              44

            
	
              (dd)

            	
              Investment
                in the Consideration Shares.

            	
              44

            
	
              (ee)

            	
              Disclosure.

            	
              45

            
	
              (ff)

            	
              Products.

            	
              45

            

    

     

    
      
        i

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                4.2

            	
              REPRESENTATIONS
                AND WARRANTIES OF THE PURCHASER.

            	
              45

            
	
              (a)

            	
              Organization
                and Standing.

            	
              45

            
	
              (b)

            	
              Corporate
                Power and Authority.

            	
              45

            
	
              (c)

            	
              Agreement
                Does Not Violate Other Instruments.

            	
              46

            
	
              (d)

            	
              Litigation.

            	
              46

            
	
              (e)

            	
              Approvals.

            	
              46

            
	
              (f)

            	
              Brokers
                and Intermediaries.

            	
              46

            
	
              (g)

            	
              SEC
                Filings.

            	
              46

            
	
              ARTICLE
                V COVENANTS

            	
              47

            
	
              SECTION
                5.1

            	
              AFFIRMATIVE
                COVENANTS OF THE SELLERS.

            	
              47

            
	
              SECTION
                5.2

            	
              AFFIRMATIVE
                COVENANTS OF THE SELLERS RELATING TO DUE DILIGENCE.

            	
              47

            
	
              SECTION
                5.3

            	
              NEGATIVE
                COVENANTS OF THE SELLERS.

            	
              48

            
	
              SECTION
                5.4

            	
              AFFIRMATIVE
                COVENANTS OF THE PURCHASER.

            	
              50

            
	
              SECTION
                5.5

            	
              PREPARATION
                OF TAX RETURN.

            	
              51

            
	
              (a)

            	
              Tax
                Returns.

            	
              51

            
	
              (b)

            	
              Cooperation
                on Tax Matters.

            	
              51

            
	
              (c)

            	
              Tax
                Refunds.

            	
              51

            
	
              (d)

            	
              Transfer
                Taxes.

            	
              51

            
	
              (e)

            	
              Apportionment
                of Straddle Periods.

            	
              51

            
	
              SECTION
                5.6

            	
              NOTIFICATION.

            	
              52

            
	
              SECTION
                5.7

            	
              CONFIDENTIALITY.

            	
              52

            
	
              SECTION
                5.8

            	
              COVENANT
                NOT TO COMPETE.

            	
              53

            
	
              SECTION
                5.9

            	
              FURTHER
                ASSURANCES.

            	
              55

            
	
              SECTION
                5.10

            	
              TRANSFER
                OF THE SHARES.

            	
              55

            
	
              SECTION
                5.11

            	
              SUBSEQUENT
                ACTIONS.

            	
              55

            
	
              SECTION
                5.12

            	
              EFFORTS.

            	
              55

            
	
              SECTION
                5.13

            	
              RELEASE
                BY SELLERS.

            	
              55

            
	
              SECTION
                5.14

            	
              ACQUISITION
                PROPOSALS: NO SOLICITATION.

            	
              56

            
	
              SECTION
                5.15

            	
              TERMINATION
                OF CERTAIN LIABILITIES.

            	
              56

            
	
              ARTICLE
                VI TERMINATION

            	
              57

            
	
              SECTION
                6.1

            	
              TERMINATION
                BY THE PURCHASER.

            	
              57

            
	
              SECTION
                6.2

            	
              TERMINATION
                BY THE SELLER.

            	
              57

            
	
              SECTION
                6.4

            	
              NOTICE
                OF TERMINATION.

            	
              58

            
	
              SECTION
                6.5

            	
              WAIVER.

            	
              58

            
	
              ARTICLE
                VII INDEMNIFICATION

            	
              59

            
	
              SECTION
                7.1

            	
              SURVIVAL
                OF THE REPRESENTATIONS AND WARRANTIES.

            	
              59

            
	
              SECTION
                7.2

            	
              EFFECTS
                OF INVESTIGATION.

            	
              59

            
	
              SECTION
                7.3

            	
              INDEMNIFICATION
                GENERALLY.

            	
              60

            
	
              (a)

            	
              By
                the Sellers.

            	
              60

            
	
              (b)

            	
              By
                the Purchaser.

            	
              60

            
	
              (c)

            	
              Indemnity
                Procedure.

            	
              60

            
	
              (d)

            	
              Limitations
                on Indemnification.

            	
              64

            
	
              (e)

            	
              Right
                to Set-off.

            	
              
                65

              

            
	
              (f)

            	
              Treatment
                of Indemnity Payments.

            	
              65

            
	
              SECTION
                7.4

            	
              OBLIGATION.

            	
              65

            
	
              ARTICLE
                VIII MISCELLANEOUS PROVISIONS

            	
              66

            
	
              SECTION
                8.1

            	
              EXPENSES.

            	
              66

            
	
              SECTION
                8.2

            	
              GOVERNING
                LAW.

            	
              66

            
	
              SECTION
                8.3

            	
              NOTICES.

            	
              66

            
	
              SECTION
                8.4

            	
              NO
                WAIVER OF REMEDIES, ETC.

            	
              67

            
	
              SECTION
                8.5

            	
              INJUNCTIVE
                RELIEF; JURISDICTION AND VENUE.

            	
              68

            
	
              SECTION
                8.6

            	
              COUNTERPARTS.

            	
              68

            
	
              SECTION
                8.7

            	
              SECTION
                AND OTHER HEADINGS.

            	
              68

            
	
              SECTION
                8.8

            	
              ENTIRE
                AGREEMENT; INCORPORATION BY REFERENCE.

            	
              68

            
	
              SECTION
                8.9

            	
              BINDING
                EFFECT.

            	
              68

            
	
              SECTION
                8.10

            	
              AMENDMENT
                OR MODIFICATION.

            	
              68

            
	
              SECTION
                8.11

            	
              WAIVER.

            	
              
                69

              

            
	
              SECTION
                8.12

            	
              SEVERABILITY.

            	
              
                69

              

            
	
              SECTION
                8.13

            	
              ASSIGNMENT.

            	
              69

            
	
              SECTION
                8.14

            	
              PUBLICITY.

            	
              69

            

    

     

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    

      STOCK
        PURCHASE AGREEMENT

      

      THIS
        STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of November 14, 2006, is
        entered into by and among LANGER, INC., a Delaware corporation with its
        principal offices at 450 Commack Road, Deer Park, New York 11729 (the
“Purchaser”); and PETER A. ASCH (“PAA”), an individual residing at 450 South
        Willard St., Burlington, VT 05401, RICHARD D. ASCH (“RDA”), an individual
        residing at 314 Lefebvre Lane, Williston, VT 05495, A. LAWRENCE LITKE (“ALL”),
        an individual residing at 315 Pease Mountain Road, Charlotte, VT 05445, and
        JOSEPH M. CANDIDO (“JMC”), an individual residing at 1069 Sunset View Road,
        Colchester, VT 05446 (PAA, RDA, ALL and JMC, each, a “Seller” and collectively,
        the “Sellers”).

      

      

      W
        I T N E
        S S E T H:

      

      WHEREAS,
        the Sellers are the legal and beneficial owner of all of the issued and
        outstanding shares of capital stock of TWINCRAFT, INC., a Vermont corporation,
        with its principal offices at 2 Tigan Street, Winooski, VT 05404 (the
“Company”); and

      

      WHEREAS,
        the Sellers desire to sell, and the Purchaser desires to acquire, all of
        the
        shares of the capital stock of the Company, upon the terms and conditions
        set
        forth herein.

      

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

      ARTICLE
        I

      DEFINITIONS

      

      As
        used
        herein, the following terms shall have the following meanings unless the
        context
        otherwise requires:

       

      “2006
        Adjusted EBITDA” means, for the fiscal year ended December 31, 2006, Adjusted
        EBITDA of the Company and the Subsidiaries on a consolidated basis; provided,
        that
        2006 Adjusted EBITDA shall not include an adjustment to add back rent expense
        for the Winooski Facility. 

      

      “2007
        Adjusted EBITDA” means, for the fiscal year ended December 31, 2007, Adjusted
        EBITDA of the Company and the Subsidiaries on a consolidated basis.

       

      “2007
        Deferred Consideration Amount” has the meaning set forth in Section
        2.3.

      

      “2007
        Financial Statements” shall mean the Company’s audited consolidated balance
        sheets and related audited consolidated statements of income, stockholder’s
        equity and comprehensive income, and cash flows at and for the fiscal year
        ended
        December 31, 2007, including the notes thereto.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      “2008
        Adjusted EBITDA” means, for the fiscal year ended December 31, 2008, Adjusted
        EBITDA of the Company and the Subsidiaries on a consolidated basis.

      

      “2008
        Deferred Consideration Amount” has the meaning set forth in Section
        2.4.

      

      “2008
        Financial Statements” shall mean the Company’s audited consolidated balance
        sheets and related audited consolidated statements of income, stockholder’s
        equity and comprehensive income, and cash flows at and for the fiscal years
        ended December 31, 2008, including the notes thereto.

      

      “Affiliate”
        of a Person means a Person that directly, or indirectly through one or more
        intermediaries, controls, or is controlled by, or is under common control
        with
        such Person. The term “Affiliate” shall include any Person that owns or has
        control over more than twenty percent (20%) of the equity interests in another
        Person. With respect to Section 5.4 only, “Affiliate” shall only mean the
        subsidiaries and related entities of Purchaser set forth in its filings with
        the
        U.S. Securities and Exchange Commission pursuant to the Securities Exchange
        Act
        of 1934.

      

      “Agent”
        has the meaning set forth in Section 5.14 hereof.

      

      “Acquisition
        Proposal” has the meaning set forth in section 5.14 hereof.

      

      “Adjusted
        EBITDA” means, for a given fiscal year, in accordance with GAAP, computed
        consistent with historical practices, net income of the Company and the
        Subsidiaries (other than net income resulting from acquisitions of other
        businesses after the Closing Date), on a consolidated basis, for such fiscal
        year plus
        amounts,
        if any, which were deducted in the determination of net income for such period
        for: (i) interest expense for such period; (ii) federal, state and local
        income
        tax expense for such period; (iii) depreciation and amortization expense
        for
        such period; and (iv) corporate management fees paid to or charged by the
        Purchaser for such period; (v) costs and expenses incurred in connection
        with
        the consummation of the transactions contemplated by this Agreement; (vi)
        amounts representing certain payments made to Bob Asch, Dave Asch, Trudy
        Asch
        and Rosemarie Asch under consulting agreements referred to in Schedule 4.1(x)
        which will be terminated at Closing; and
        (vii)
        rent expense for the Winooski Facility; additionally, Adjusted EBITDA will
        include a net credit for certain management functions and expenses performed
        at
        the Purchaser’s request, the amount of such credit will be determined by
        Purchasers customary budgeting process, subject to quarterly review, all
        as
        calculated on Exhibit 1.1. 

      

      “Adjusted
        Purchase Price” has the meaning set forth in Section 2.2(b).

      

      “Amended
        Essex Sub-Lease” means the amended lease, substantially on the terms attached
        hereto as Exhibit 1.2, to be entered into between Asch Enterprises and the
        Company (or an Affiliate of the Purchaser), at Closing with respect to the
        Essex
        Facility 

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “Applicable
        Law” means, with respect to any Person, any international, national, regional,
        state or local treaty, statute, law, ordinance, rule, administrative action,
        regulation, order, writ, injunction, judgment, decree or other requirement
        of
        any Governmental Entity and any requirements imposed by common law or case
        law,
        applicable to such Person or any of its properties, assets, officers, directors,
        employees, consultants or agents (in connection with their activities on
        behalf
        of such Person). Applicable Law includes, without limitation, environmental
        laws, state and local zoning laws and ordinances, land use and building laws,
        laws respecting the sale of services, laws respecting employment and labor,
        and
        laws respecting bidding on contracts.

      

      “Asch
        Employment Agreement” has the meaning set forth in Section 3.2(f)(viii)
        hereof.

      

      “Assets”
        means all tangible and intangible property owned by the Company and any other
        assets of the Company designated as assets pursuant to GAAP.

      

      “Autocartoner
        Indebtedness” shall mean the indebtedness in the amount of $233,000 related to
        the Company’s purchase of the Autocartoner.

      

      “Average
        Closing Price” means the average closing price of Purchaser Common Stock quoted
        on the NASDAQ National Market, or any other exchange on which the Purchaser
        Common Stock is then traded or quoted, for the twenty days on which such
        stock
        is actually traded prior to the Date of Determination. 

      

      “Balance
        Sheet” has the meaning set forth in Section 4.1(g) hereof.

      

      “Bankruptcy
        Event” has the meaning set forth in Section 2.8(b) hereof.

      

      “Business”
        means the business of the Company and the Subsidiaries as currently conducted,
        including, but not limited to, the manufacture, distribution, sale and marketing
        of soap, including any improvements of existing products or extensions of
        existing product lines.

      

      “Cash
        Consideration” has the meaning set forth in Section 2.2(a) hereof.

      

      “CERCLA”
        has the meaning set forth in Section 4.1(cc) hereof.

      

      “Class
        A
        Common Stock” means the authorized Class A common stock, no par value per share,
        of the Company.

      

      “Class
        B
        Common Stock” means the authorized Class B common stock (non-voting), no par
        value per share, of the Company.

      

      “Class
        A
        Preferred Stock” means the authorized Class A preferred stock, no par value per
        share, of the Company.

      

      “Closing”
        means the consummation of the transactions provided for in this
        Agreement.

      

      “Closing
        Date” has the meaning set forth in Section 3.1(b) hereof.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      “Closing
        Date Cash Consideration” has the meaning set forth in Section 2.2(a)
        hereof.

      

      “Closing
        Date Consideration Shares” has the meaning set forth in Section 2.2(a)
        hereof.

      

      “Closing
        Indebtedness” shall mean the Indebtedness set forth on Schedule 5.15
        hereof.

      

      “Code”
        means the Internal Revenue Code of 1986, as amended, and any successor statutes
        thereto.

      

      “Company”
        has the meaning set forth on the Preamble of this Agreement.

      

      “Company
        Intellectual Property” has the meaning set forth in Section 4.1(q)
        hereof.

      

      “Consideration
        Shares” shall refer to individually as any of the Closing Date Consideration
        Shares or additional shares of Purchaser Common Stock issued in connection
        with
        Section 2.2(b) and collectively as the Closing Date Consideration Shares
        plus
        any additional shares of Purchaser Common Stock issued in connection with
        Section 2.2(b) or less any Closing Date Consideration Shares, as the case
        may
        be.

      .

      “Content”
        shall mean any and all information, pictures, images, graphics, video, text,
        and
        any other content or information, in whatever form or on any media.

      

      “Date
        of
        Determination” has the meaning set forth in Section 2.3 hereof.

      

      “Deferred
        Consideration Amount” shall mean any or all of, as the context requires, the
        2007 Deferred Consideration Amount and/or the 2008 Deferred Consideration
        Amount.

      

      “Determining
        Accountants” has the meaning set forth in Section 2.5(b) hereof.

      

      “Employee
        Benefit Plan” means any (a) nonqualified deferred compensation or retirement
        plan or arrangement which is an Employee Pension Benefit Plan, (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 or material fringe benefit plan, program,
        arrangement or account.

      

      “Employee
        Pension Benefit Plan” has the meaning set forth in Section 3(2) of
        ERISA.

      

      “Employee
        Welfare Benefit Plan” has the meaning set forth in Section 3(1) of
        ERISA.

      

      “Encumbrance”
        shall mean any mortgage, lien, security interest, pledge, proxy, voting trust
        or
        agreement, encumbrance, option, restriction on use, voting or transferability,
        defect of title, charge or claim of any nature whatsoever on any property
        or
        property interest.

      

      “Environmental
        Release” shall have the meaning set forth in CERCLA.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      “Environmental
        and Safety Requirements” shall mean all Applicable Law concerning public health
        and safety, worker health and safety and pollution or protection of the
        environment (including, without limitation, all those relating to the presence,
        use, production, generation, handling, transport, treatment, storage, disposal,
        distribution, labeling, testing, processing, discharge, Environmental Release,
        threatened Environmental Release, control or cleanup of any hazardous or
        otherwise regulated materials, substances or wastes, chemical substances
        or
        mixtures, pesticides, pollutants, contaminants, toxic chemicals, petroleum
        products or distillates, asbestos, polychlorinated biphenyls, noise or
        radiation). 

      

      “Escrow
        Agreement” has the meaning set forth in Section 2.2(a) hereof.

      

      “Escrow
        Fund” means the escrow fund established pursuant to the Escrow Agreement to hold
        the Escrow Amount.

      

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

      

      “Essex
        Facility” means the Company’s facility located at 36 River Road, Essex, VT,
        which facility is used in connection with the Business.

      

      “Exchange
        Act” means the Securities Exchange Act of 1934, as amended, and the rules and
        regulations in effect thereunder.

      

      “Fiduciary”
        has the meaning set forth in Section 3(21) of ERISA.

      

      “Financial
        Statements” has the meaning set forth in Section 4.1(g) hereof.

      

      “GAAP”
        means U.S. generally accepted accounting principles, applied on a basis
        consistent with the basis on which the Balance Sheet and Financial Statements
        referred to in Section 4.1(g) were prepared.

      

      “Governmental
        Entity” shall mean any national, international, territorial, state, regional,
        provincial or local governmental authority, quasi-governmental authority,
        instrumentality, court, government or self-regulatory organization, commission,
        tribunal or organization or any regulatory, administrative commission or
        other
        agency, or any political or other subdivision, department or branch of any
        of
        the foregoing, or any arbitrator or mediator.

      

      “Guaranty”
        shall mean, as to any Person, all liabilities or obligations of such Person,
        with respect to any indebtedness or other obligations of any other person,
        which
        have been guaranteed, directly or indirectly, in any manner by such Person,
        through an agreement, contingent or otherwise, primarily for the purpose
        of
        enabling the debtor to make payment of such indebtedness or obligation or
        to
        guarantee the payment to the owner of such indebtedness or obligation against
        loss, or to supply funds to or in any manner invest in the debtor, or
        otherwise.

      

      “Highly
        Compensated Employees” shall mean the Company’s employees receiving an aggregate
        annual salary in excess of $75,000.

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      “Indebtedness”
        of any Person means and includes, without duplication, as of any date as
        of
        which the amount thereof is to be determined, (i)
        all
        obligations of such Person for borrowed money; (ii) all obligations of such
        Person representing the balance deferred and unpaid of the purchase price
        of any
        property, except any such balance that constitutes an accrued expense or
        trade
        payable; (iii) all obligations of such Person evidenced by notes, bonds,
        debentures, or other similar instruments (other than performance, surety,
        and
        appeals bonds arising in the ordinary course of business); (iv) any capital
        lease obligation of such Person; (v) all reimbursement, payment, or similar
        obligations, contingent or otherwise, of such Person under acceptance or
        letters
        of credit (other than letters of credit in support of trade obligations or
        incurred in connection with public liability insurance, workers compensation,
        unemployment insurance, old-age pensions, and other social security benefits
        other than in respect of employee benefit plans subject to ERISA); (vi) all
        obligations of such Person, contingent or otherwise, under any Guaranty by
        such
        Person of the obligations of another Person of the type referred to in clauses
        (i) through (v) above; (vii) all obligations referred to in clauses (i) through
        (v) above secured by any mortgage or security interest in property (including
        without limitation accounts, contract rights, and general intangibles) owned
        by
        such Person and as to which such Person has not assumed or become liable
        for the
        payment of such obligations other than to the extent of the property subject
        to
        such mortgage or security interest; and (vii) any other indebtedness included
        on, or that should be included on, a balance sheet of such Person prepared
        in
        accordance with GAAP. For the avoidance of doubt, “Indebtedness” of any Person
        shall not include any deferred taxes of such Person.

      

      “Indemnification
        Escrow Amount” has the meaning set forth in Sections 2.2(a)(iv)
        hereof.

      

      “Indemnification
        Escrow Fund” means the escrow fund established pursuant to the Escrow Agreement
        to hold the Indemnification Escrow Amount.

      

      “Indemnity
        Notice” means written notification pursuant to Section 5.3(c) of a claim for
        indemnity under Section 7.3(a) or Section 7.3(b), as applicable, by an
        Indemnified Party, specifying the nature of such claim. 

      

      “Initial
        Cash Consideration” has the meaning set forth in Section 2.2(a)
        hereof.

      

      “Insurance
        Policies” has the meaning set forth in Section 4.1(u) hereof.

      

      “Intellectual
        Property” shall mean any United States, foreign, international and state patents
        and patent applications, industrial design registrations, certificates of
        invention and utility models (collectively, “Patents”); trademarks, service
        marks, and trademark or service mark registrations and applications, trade
        names, logos, designs, slogans, and general intangibles of like nature, together
        with all goodwill related to the foregoing (collectively, “Trademarks”);
        Internet domain names; copyrights, copyright registrations, renewals and
        applications for copyrights, including without limitation for the Content
        and
        the Software (each as defined herein) (collectively, “Copyrights”); Content;
        Software, technology, trade secrets and other confidential information,
        know-how, proprietary processes, formulae, algorithms, models and methodologies,
        rights of privacy and publicity, including but not limited to, the names,
        likenesses, voices and biographical information of real persons, and all
        license
        agreements and other agreements granting rights relating to any of the foregoing
        which are classified as intangible assets under GAAP.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      “Knowledge”,
        whether capitalized or not, means (i) the actual knowledge of such Person
        after
        due inquiry or (ii) knowledge that such Person should have reasonably been
        expected to know in the Ordinary Course of Business, unless otherwise provided
        for herein to the contrary. A Person (other than an individual) will be deemed
        to have “actual knowledge” of a particular fact or other matter if any of such
        Person's current Affiliates, officers or directors, has, or at any time had,
        knowledge of such fact or other matter. In addition, each Seller shall be
        deemed
        to have “actual knowledge” of a particular fact or other matter if Peter Asch,
        A. Lawrence Litke, Joseph Candido, Richard Asch, or Mark Davitt has knowledge
        of
        such fact or matter.

      

      “Lease”
        and “Leases” have the meanings set forth in Section 4.1(o) hereof.

      

      “Leased
        Property” has the meaning set forth in Section 4.1(o) hereof.

      

      “Liability”
        and “Liabilities” means any liability or obligation (whether known or unknown,
        whether absolute or contingent, whether liquidated or unliquidated and whether
        due or to become due).

      

      “License
        Agreements” has the meaning set forth in Section 4.1(q) hereof.

      

      “Litigation”
        has the meaning set forth in Section 4.1(m) hereof.

      

      “Litke
        Employment Agreement” has the meaning set forth in Section 3.2(f)(viii)
        hereof.

      

      “Losses”
        has the meaning set forth in Section 7.3(a) hereof.

      

      “Material
        Adverse Effect” means any change, event or condition of any character which has
        had or could have a material adverse effect on the condition (financial or
        otherwise), results of operations, assets, liabilities, properties, prospects
        or
        business of the Company and its Subsidiaries, taken as a whole, or the
        Purchaser, as applicable. 

      

      “Material
        Agreement” has the meaning set forth in Section 4.1(r) hereof.

      

      “Maximum
        Purchaser Shares Number” has the meaning set forth in Section 2.9
        hereof.

      

      “Multiemployer
        Plan” has the meaning set forth in Section 3(37)(A) of ERISA.

      

      “New
        Winooski Lease” means the lease, substantially on the terms attached hereto as
        Exhibit 1.3, to be entered into between Asch Partnership and the Company
        (or an
        Affiliate of the Purchaser) at Closing with respect to the Winooski
        Facility.

      

      “Ordinary
        Course of Business” means the ordinary course of business consistent with past
        custom and practice.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      “PBGC”
        means the Pension Benefit Guaranty Company.

      

      “Person”
        shall mean any natural person, corporation, limited liability company,
        partnership, joint venture, trust, business association, unincorporated
        association, organization, Governmental Entity or other entity or
        organization.

      

      “Pro
        Rata
        Ownership Percentage” shall mean the number of Shares owned by a Seller
        immediately prior to, and delivered by such Seller at the Closing, divided
        by
        the total number of Shares, expressed as a percentage. 

      

      “Pro
        Rata
        2007 Earnout Percentage” shall be as set forth on Exhibit 2.3.

      

      “Pro
        Rata
        2008 Earnout Percentage” shall be as set forth on Exhibit 2.4.

      

      “Prohibited
        Transaction” has the meaning set forth in Section 406 of ERISA and Section 4975
        of the Code.

      

      “Purchase
        Price” has the meaning set forth in Section 2.2(a) hereof.

      

      “Purchase
        Price Adjustment Escrow Fund” means the escrow fund established pursuant to the
        Escrow Agreement to hold the Purchase Price Adjustment Escrow
        Amount.

      

      “Purchaser”
        has the meaning set forth in the preamble of this Agreement.

      

      “Purchaser’s
        Business” means the manufacture and distribution of medical products targeting
        the orthopedic, orthotic and prosthetic markets, and skin care products for
        the
        medical therapeutic and retail markets.

      

      “Purchaser
        Common Stock” means the Purchaser’s common stock, par value $.02 per
        share.

      

      “Related
        Party” and “Related Parties” has the meaning set forth in Section 4.1(x)
        hereof.

      

      “Reportable
        Event” has the meaning set forth in Section 4043 of ERISA.

      

      “Representatives”
        means, as to any Person, its accountants, attorneys, consultants, officers,
        directors, employees, agents and other advisers and
        representatives.

      

      “Releasee”
        has the meaning set forth in Section 5.13 hereof.

      

      “Right
        of
        Set-off” has the meaning set forth in Section 7.3(e) hereof.

      

      “SEC”
        means the Securities and Exchange Commission.

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      “Securities
        Act” means the Securities Act of 1933, as amended, and the rules and regulations
        in effect thereunder.

      

      “Seller(s)”
        has the meaning set forth in the first preamble of this Agreement.

      

      “Sellers
        Claims” has the meaning set forth in Section 5.13 hereof.

      

      “Sellers’
        Representative” means Peter A. Asch.

      

      “Shares”
        means all outstanding shares of the Company’s Class A Common Stock, Class B
        Common Stock and Class A Preferred Stock.

      

      “Software”
        shall mean any and all (i) computer programs, including any and all software
        implementations of algorithms, models and methodologies, whether in source
        code
        or object code form, (ii) databases, compilations, and any other electronic
        data
        files, including any and all collections of data, whether machine readable
        or
        otherwise, (iii) descriptions, flow-charts, technical and functional
        specifications, and other work product used to design, plan, organize, develop,
        test, troubleshoot and maintain any of the foregoing, (iv) without limitation
        to
        the foregoing, the software technology supporting any functionality contained
        on
        any of the Company’ Internet site(s), and (v) all documentation, including
        technical, end-user, training and troubleshooting manuals and materials,
        relating to any of the foregoing.

      

      “Subsidiaries”
        has the meaning set forth in Section 4.1(f) hereof.

      

      “Tax”
or
        “Taxes” means any federal, state, local or foreign income, gross receipts,
        capital stock, franchise, profits, withholding, social security, unemployment,
        disability, real property, personal property, stamp, excise, occupation,
        sales,
        use, transfer, value added, alternative minimum, estimated or other tax,
        assessment, charge, duty, fee, levy or other governmental charge of any kind
        whatsoever, including any interest, penalty or addition thereto, whether
        disputed or not.

      

      “Tax
        Return” means any return (including any information return), report, statement,
        schedule, notice, form, or other document or information filed with or submitted
        to, or required to be filed with or submitted to, any governmental authority
        in
        connection with the determination, assessment, collection, or payment of
        any Tax
        or in connection with the administration, implementation, or enforcement
        of or
        compliance with any law relating to any Tax.

      

      “Winooski
        Facility” means the Company’s facility located at 2 Tigan Street, Winooski, VT,
        which facility is used in connection with the Business.

      

      “Working
        Capital” shall mean the sum of: (a) total gross accounts receivable (without
        regard to reserves or allowances), (b) total gross inventory (without regard
        to
        reserves or allowances), (c) total other receivables, (d) total cash, and
        (e)
        total other assets, less
        total
        accounts payable (including accruals).

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      “Working
        Capital Adjustments” has the meaning set forth in Section 2.7(b)
        hereof.

      

      “Working
        Capital Escrow Agreement” has the meaning set forth in Section 2.2(a)
        hereof.

      

      “Working
        Capital Statement” has the meaning set forth in Section 2.7(a)
        hereof.

      

      “Working
        Capital Target” has the meaning set forth in Section 2.7(b) hereof.

       

      ARTICLE
        II

      SALE
        AND PURCHASE OF SHARES

       

      Section
        2.1 Purchase
        of Shares. Subject
        to the terms and conditions set forth herein, at the Closing, the Sellers
        shall
        sell to the Purchaser, and the Purchaser shall purchase from the Sellers,
        all of
        the Sellers’ right, title and interest in and to the Shares, which shall
        collectively constitute one hundred percent (100%) of the issued and outstanding
        capital stock of the Company. At the Closing, the Sellers shall deliver to
        the
        Purchaser all of the certificates representing the Shares together with stock
        powers separate from the certificates duly executed by the Sellers in blank
        and
        sufficient to convey to the Purchaser good title to all of the Shares free
        and
        clear of any and all Encumbrances of any nature whatsoever, other than
        restrictions arising under applicable securities laws.

       

      Section
        2.2 Consideration. 

      

      (a) Subject
        to the terms and conditions set forth in this Agreement, in addition to any
        2007
        Deferred Consideration Amount and 2008 Deferred Consideration Amount that
        may be
        payable pursuant to Sections 2.3 and 2.4 hereof, respectively, the aggregate
        consideration for the Shares shall be, subject to adjustment as set forth
        in
        Section 2.2(b), equal to $26,650,000 (the “Purchase Price”), plus
        an
        amount equal to the Autocartoner Indebtedness. At the Closing, the aggregate
        consideration, shall be payable by the Purchaser to or for the benefit of
        the
        Sellers, in proportion to each Seller’s Pro Rata Ownership Percentage, as
        follows:

      

      
        	 	
                (i)

              	
                an
                  amount equal to (A)
                  the Purchase Price multiplied
                  by
                  0.85, less
                  (B)
                  the Purchase Price Adjustment Escrow Amount (as defined herein),
                  less
                  (C)
                  the Indemnification Escrow Amount (as defined herein), less
                  (D)
                  an amount equal to the Closing Indebtedness (which shall be applied
                  at the
                  direction of the Seller pursuant to Section 5.15 hereof to extinguish
                  the
                  Closing Indebtedness as part of the Closing), plus
                  (E) an amount equal to the Autocartoner Debt, shall be payable
                  in cash by
                  wire transfer of immediately available funds at the Closing (the
“Closing
                  Date Cash Consideration”) to the Sellers;
                  and

              

      

       

      

      
        	 	
                (ii)

              	
                a
                  number of duly authorized and non-assessable shares (the “Closing Date
                  Consideration Shares”) of Purchaser Common Stock having a value equal to
                  the Purchase Price multiplied
                  by
                  0.15, shall be issued to the Sellers at the Closing, subject to
                  the
                  limitations in Section 2.9 hereof; 

              

      

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      
 

      
        	 	
                (iii)

              	
                $500,000
                  (the “Purchase Price Adjustment Escrow Amount”) shall be deposited by the
                  Purchaser with the Escrow Agent into the Purchase Price Adjustment
                  Escrow
                  Fund on the Closing Date, which amount shall be held and distributed,
                  subject to Purchaser’s Right of Set-off the Working Capital Adjustment, if
                  any, in accordance with Section 7.3(e), and the Purchase Price
                  Adjustment,
                  if any is owing to Purchaser, in accordance with Section 2.2(b)(ii)(A),
                  in
                  each case pursuant to the terms of the Escrow Agreement in the
                  form of
                  Exhibit 2.2(a)(iii) (the “Escrow Agreement”);
                  and

              

      

      

      
        	 	
                (iv)

              	
                $2,000,000
                  (the “Indemnification Escrow Amount”) shall be deposited by the Purchaser
                  with the Escrow Agent into the Indemnification Escrow Fund on the
                  Closing
                  Date, which amount shall be held, subject to Purchaser’s Right of Set-off,
                  if any, in accordance with Section 7.3(e), and distributed pursuant
                  to the
                  terms and provisions of the Escrow Agreement as follows: (A) $1,000,000
                  (or such lesser amount as may remain) shall be released to the
                  Sellers
                  following the filing of the Purchaser’s Annual Report on Form 10-K, under
                  the Exchange Act, for the fiscal year ended December 31, 2006;
                  and (B) the
                  remaining amount, if any, shall be released to the Sellers 18 months
                  after
                  the Closing Date.

              

      

      

      (b) Within
        ten (10) days following the date on which the Audit Report (and each of the
        Working Capital Statement and EBITDA Statement contained therein) becomes
        final
        and binding on the parties in accordance with Section 2.7, the Purchaser
        shall
        calculate an adjusted Purchase Price that is equal to actual 2006 Adjusted
        EBITDA, as set forth in the final Audit Report, multiplied
        by 6.5,
        and taking into account the Working Capital Adjustment, if any, calculated
        in
        accordance with Section 2.7 and reducing such price dollar for dollar by
        an
        amount equal to all accrued and unpaid costs incurred by the Company as a
        result
        of the transactions contemplated hereby (the “Adjusted Purchase Price”). The
        difference between the Adjusted Purchase Price and the Purchase Price paid
        at
        Closing shall be hereinafter referred to as the “Purchase Price Adjustment”
regardless of whether such Purchase Price Adjustment is owed by Purchaser
        to
        Sellers or by Sellers to Purchaser. 

      

      
        	 	
                (i)

              	
                If
                  the Adjusted Purchase Price based upon the final Audit Report exceeds
                  the
                  Purchase Price that was paid on the Closing Date, then Purchaser
                  shall pay
                  the Purchase Price Adjustment to Sellers, in proportion to each
                  Seller’s
                  Pro Rata Ownership Percentage, as follows:

              

      

      

      
        	 	
                (A)

              	
                an
                  amount equal to the Purchase Price Adjustment multiplied
                  by
                  0.85, shall be payable in cash by wire transfer of immediately
                  available
                  funds to the Sellers; 

              

      

      

      
        	 	
                (B)

              	
                a
                  number of duly authorized and non-assessable shares of Purchaser
                  Common
                  Stock having a value equal to the Purchase Price Adjustment multiplied
                  by
                  0.15, shall be issued to the Sellers;
                  and

              

      

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
        	 	
                (C)

              	
                The
                  remaining portion of the Purchase Price Adjustment Escrow Amount,
                  if any,
                  shall be released to Sellers in accordance with the terms of the
                  Escrow
                  Agreement.

              

      

      

      
        	 	
                (ii)

              	
                If
                  the Adjusted Purchase Price based upon the final Audit Report is
                  less than
                  the Purchase Price that was paid on the Closing Date, then Sellers
                  shall
                  pay the difference to Purchaser as
                  follows:

              

      

      

      
        	 	
                (A)

              	
                an
                  amount equal to the Purchase Price Adjustment multiplied
                  by
                  0.85, shall be set-off and deducted from the Purchase Price Adjustment
                  Escrow Amount, in which case such amount shall be released to the
                  Purchaser from the Purchase Price Adjustment Escrow Fund in accordance
                  with the terms of the Escrow Agreement, and either (1) any remaining
                  Purchase Price Adjustment Amount in the Purchase Price Adjustment
                  Escrow
                  Fund shall be released to Sellers in accordance with the terms
                  of the
                  Escrow Agreement or (2) if the Purchase Price Adjustment Escrow
                  Amount is
                  not sufficient to satisfy the cash portion of the Purchase Price
                  Adjustment owing to the Purchaser, then at the Purchaser’s sole option
                  either the Seller shall pay such difference to the Purchaser in
                  cash by
                  wire transfer of immediately available funds or the Purchaser may
                  exercise
                  the same Right of Set-off prescribed by Section 7.3(e) hereof with
                  respect
                  to such difference; and

              

      

      

      
        	 	
                (B)

              	
                a
                  number of Closing Date Consideration Shares having a value equal
                  to the
                  amount of the Purchase Price Adjustment multiplied
                  by
                  0.15, shall be returned by Sellers to Purchaser and such shares
                  shall be
                  canceled.

              

      

      

      (c) For
        purposes of determining the number of shares of Purchaser Common Stock which
        shall constitute any Consideration Shares for purposes of this Section 2.2,
        whether issuable at Closing to Seller in accordance with Section 2.2(a)(ii),
        issuable following Closing in accordance with Section 2.2(b)(i)(B), or
        cancelable in accordance with Section 2.2(b)(ii)(B), the value of Purchaser
        Common Stock shall be $4.00. If, on or prior to the date any shares of the
        Purchaser’s Common Stock is issued to the Sellers, Purchaser should split or
        combine the Purchaser Common Stock, or pay a stock dividend or other stock
        distribution in Purchaser Common Stock, or otherwise change the Purchaser
        Common
        Stock into any other securities, or make any other dividend or distribution
        on
        the Purchaser Common Stock (other than normal quarterly dividends, as the
        same
        may be adjusted from time to time and in the ordinary course), then the number
        of Consideration Shares issuable on the Closing Date will be appropriately
        adjusted to reflect such split, combination, dividend or other distribution
        or
        change.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      Section
        2.3 2007
        Deferred Consideration. 

       

      If
        2007
        Adjusted EBITDA exceeds 2006 Adjusted EBITDA, the Purchaser shall pay, or
        shall
        arrange for the Company to pay, to the Sellers, in proportion to each Seller’s
        Pro Rata 2007 Earnout Percentage, as provided in Section 2.6, an amount equal
        to
        such difference between 2007 Adjusted EBITDA and 2006 Adjusted EBITDA
multiplied
        by three
        (the “2007 Deferred Consideration Amount”) within fourteen (14) days after the
        Date of Determination of 2007 Adjusted EBITDA. The “Date of Determination” of
        the 2007 Adjusted EBITDA or 2008 Adjusted EBITDA, as the case may be, shall
        be
        the earlier to occur of (i) the date on which the Purchaser receives notice
        from
        the Seller that the Seller does not dispute the Purchaser’s determination of
        2007 Adjusted EBITDA or 2008 Adjusted EBITDA, as the case may be, as provided
        in
        Section 2.5(a) below, (ii) the date the parties resolve among themselves
        any
        such dispute regarding such determination, or (iii) the date of the written
        notice of the Determining Accountants as set forth in Section 2.5(b)
        below.

       

      Section
        2.4 2008
        Deferred Consideration. 

       

      If
        2008
        Adjusted EBITDA exceeds 2007 Adjusted EBITDA, the Purchaser shall pay, or
        shall
        arrange for the Company to pay, to the Sellers, in proportion to each Seller’s
        Pro Rata 2008 Earnout Percentage, as provided in Section 2.6, an amount equal
        to
        such difference between 2008 Adjusted EBITDA and 2007 Adjusted EBITDA
multiplied
        by three
        (the “2008 Deferred Consideration Amount”) within fourteen (14) days after the
        Date of Determination of 2008 Adjusted EBITDA.

       

      Section
        2.5 Determination
        of Calculations. 

      

      (a) 2007
        Adjusted EBITDA and the 2007 Deferred Consideration Amount shall be determined
        by the Chief Financial Officer of the Purchaser no later than thirty (30)
        days
        following the filing of the Purchaser’s Annual Report on Form 10-K, under the
        Exchange Act, for the fiscal year ended December 31, 2007, and notice thereof
        shall be delivered to the Sellers within five (5) days of such determination.
        2008 Adjusted EBITDA and the 2008 Deferred Consideration Amount shall be
        determined by the Chief Financial Officer of the Purchaser no later than
        thirty
        (30) days following the filing of the Purchaser’s Annual Report on Form 10-K,
        under the Exchange Act, for the fiscal year ended December 31, 2008, and
        notice
        thereof shall be delivered to the Sellers within five (5) days of such
        determination. The notices required to be provided by the Chief Financial
        Officer as set forth herein shall be in writing and shall include copies
        of the
        financial statements used in making the computations.

       

      (b) The
        Sellers and their accountant shall be afforded access to and shall be entitled
        to review and make extracts from the work papers, files and books of account
        in
        connection with the determination of the 2007 Adjusted EBITDA, 2008 Adjusted
        EBITDA, the 2007 Deferred Consideration Amount and the 2008 Deferred
        Consideration Amount. These determinations shall become final and binding
        upon
        the parties if the Sellers notify the Purchaser of their acceptance of such
        determination, unless, within thirty (30) days following delivery to the
        Sellers, notice is given by the Sellers to the Purchaser of the Sellers’
dispute, setting forth in reasonable detail the Sellers’ basis for such
        objection. If the
        Sellers have delivered notice
        of
such
        a
dispute
        to
        Purchaser within such thirty (30) day period, then Purchaser shall pay such
        amount of the 2007 Deferred Consideration Amount or the 2008 Deferred
        Consideration Amount, as applicable, that
        is
not
        subject to any dispute
        and
        the
        parties shall work together in good faith to resolve the
        dispute.
        If the parties are unable to reach agreement within thirty (30) days after
        notice of dispute has been received by the Purchaser, then all such disputes
        shall be referred together as promptly as practicable for resolution to a
        mutually acceptable independent accounting firm of national reputation that
        has
        not represented any of the parties hereto within the preceding two (2) years
        (the “Determining Accountants”) in accordance with Section 2.5(c). 

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (c) With
        respect to any dispute pursuant to Section 2.5(b) or Section 2.7(a), the
        Determining Accountants will make a determination as to each item in dispute,
        which determination will be (i) in writing, (ii) furnished to the Purchaser
        and
        the Sellers as promptly as practicable after the items in dispute have been
        referred to the Determining Accountants, (iii) made in accordance with this
        Agreement, and (iv) final and binding upon each party hereto. Each of the
        Purchaser and the Sellers shall use reasonable efforts to cause the Determining
        Accountants to render their decision as soon as reasonably practicable,
        including without limitation by promptly complying with all reasonable requests
        by the Determining Accountants for information, books, records and similar
        items. The Sellers and the Purchaser shall each pay half of the fees and
        expenses of the Determining Accountant, with the Sellers advancing half,
        and the
        Purchaser advancing the other half, of any retainer fee or deposit required
        by
        the Determining Accountant in advance of a final resolution. Notwithstanding
        the
        foregoing sentence, if the final 2007 Deferred Consideration Amount, 2008
        Deferred Consideration Amount, Working Capital Adjustment, or 2006 Adjusted
        EBITDA as the case may be, as finally resolved by the Determining Accountant,
        is: (i) more than 120% of the amount initially determined by the Purchaser
        in
        the case of the final 2007 Deferred Consideration Amount, 2008 Deferred
        Consideration Amount, or 2006 Adjusted EBITDA, or less than 80% of amount
        initially determined by the Purchaser in the case of the Working Capital
        Adjustment, then the Purchaser shall pay all fees and expenses of the
        Determining Accountant; or (ii) less than 80% of the amount initially determined
        by the Purchaser in the case of the final 2007 Deferred Consideration Amount,
        2008 Deferred Consideration Amount, or 2006 Adjusted EBITDA, or more than
        120%
        of the amount initially determined by the Purchaser in the case of the Working
        Capital Adjustment, then the Sellers shall pay all fees and expenses of the
        Determining Accountant.

       

      Section
        2.6 Manner
        and Form of Deferred Consideration Payment; Termination of Deferred
        Consideration Obligations. 

      

      (a) Each
        Deferred Consideration Amount shall be paid by the Purchaser to the Sellers
        in
        proportion to each Seller’s respective Pro Rata 2007 Earnout Percentage or Pro
        Rata 2008 Earnout Percentage, as applicable. 

      

      (b) In
        the
        event the Purchaser Common Stock is trading at a price less than $4.00 per
        share
        based on the Average Closing Price, the Deferred Consideration Amount shall
        be
        paid in cash by wire transfer of immediately available funds. In the event
        the
        Purchaser Common Stock is trading at a price greater than $4.00 per share
        based
        on the Average Closing Price, the Deferred Consideration Amount may be paid,
        at
        Purchaser’s discretion, in a combination of cash by wire transfer of immediately
        available funds and additional shares of Purchaser Common Stock, such additional
        shares to be valued based on the Average Closing Price.

      

      In
        the
        event the Purchaser issues shares of Purchaser Common Stock in respect of
        any
        Deferred Consideration Amount, such shares shall be registered pursuant to
        the
        terms and conditions of the Registration Rights Agreement.

       

      Section
        2.7 Audit
        Report; Working Capital Adjustment.

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      (a) Within
        60
        calendar days following the Closing Date, the Sellers or their accountants,
        Gallagher Flynn & Company LLP, shall review the Company’s financial books
        and records. After the conclusion of the review, the Sellers’ Representative
        shall deliver a report to the Purchaser (the “Audit Report”), which shall
        include (i) a written statement to the Purchaser setting forth in reasonable
        detail the actual consolidated Working Capital of the Company and its
        Subsidiaries as of December 31, 2006, provided, however, if the Closing Date
        is
        after January 4, 2006, then as of the Closing Date (the “Working Capital
        Statement”) and (ii) an income statement for the year ended December 31, 2006
        (the “2006 Income Statement”) and an accompanying written statement to the
        Purchaser setting forth in reasonable detail based on the 2006 Income Statement
        the actual 2006 Adjusted EBITDA (the “EBITDA Statement”). Each of the Working
        Capital Statement and the 2006 Income Statement will be prepared in accordance
        with GAAP computed consistent with historical practices, and each of the
        Working
        Capital Statement, 2006 Income Statement and EBITDA Statement will be prepared
        from the books and records of the Company and each Subsidiary. The Purchaser
        and
        its accountants shall be afforded access to and shall be entitled to review
        and
        make extracts from the work papers, files and books of account used by the
        Sellers and Gallagher Flynn & Company LLP in connection with their
        preparation of the Audit Report. The Purchaser may object to all or any part
        of
        the Audit Report (including the Working Capital Statement and EBITDA Statement
        contained therein) by written notice to the Sellers’ Representative setting
        forth in reasonable detail the Purchaser’s basis for such objection within 14
        calendar days after its receipt by the Purchaser; and the Purchaser’s failure to
        send such objection notice within such period shall be deemed conclusive
        acceptance of the Audit Report by the Purchaser, whereupon the Audit Report
        and
        its contents shall become final and binding on the parties for purposes of
        this
        Agreement. If the Purchaser has delivered notice of such a dispute to the
        Sellers’ Representative within such fourteen (14) day period, then the parties
        shall work together in good faith to resolve the dispute. If the parties
        are
        unable to reach agreement within thirty (30) days after notice of dispute
        has
        been received by the Sellers’ Representative, then all such disputes shall be
        referred together as promptly as practicable for resolution to the Determining
        Accountants in accordance with Section 2.5(c). 

      

      (b) The
        Purchase Price shall be adjusted as follows. If the actual Working Capital,
        as
        reflected in the Working Capital Statement, is less than $5,100,000 (the
        “Working Capital Target”), then the Purchase Price shall be decreased by the
        amount of such difference (the “Working Capital Adjustment”). If the actual
        Working Capital as of the Closing Date, as reflected in the Working Capital
        Statement, is greater than the Working Capital Target, then the Purchase
        Price
        shall be increased by the amount of such difference.

       

      Section
        2.8 Transfer
        Restrictions; Certain Covenants Regarding the Consideration
        Shares. 

      

      (a) The
        Consideration Shares to be issued to the Sellers pursuant to this Agreement
        shall be subject to the transfer restrictions set forth in the Lock-Up
        Agreements. In addition to any transfer restrictions contained in the Lock-Up
        Agreements, the Consideration Shares have not been registered under the
        Securities Act and may not be offered or sold within the United Stated or
        to, or
        for the account or benefit of, U.S. persons, unless the Consideration Shares
        are
        registered under the Securities Act or pursuant to an exemption from or in
        transactions not subject to the registration requirements of the Securities
        Act
        and accompanied by an opinion of counsel reasonably satisfactory to the
        Purchaser that registration under the Securities Act is not required. Hedging
        transactions involving the Consideration Shares may not be conducted by the
        Sellers unless in compliance with the Securities Act. The terms “United States”
and “U.S. Person” have the respective meanings given to those terms in
        Regulation S under the Securities Act.

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      (b) Upon
        the
        original issuance thereof, and until such time as the same is no longer required
        under applicable requirements of the Securities Act or applicable state
        securities laws and accompanied by an opinion of counsel reasonably satisfactory
        to the Purchaser that registration under the Securities Act is not required,
        each certificate representing the Consideration Shares, as well as all
        certificates issued in exchange for or in substitution of the Consideration
        Shares, shall bear a legend to the following effect:

      

      “THE
        TRANSFER OF THE SECURITIES EVIDENCED HEREBY IS RESTRICTED BY THE TERMS OF
        A
        LOCK-UP AGREEMENT BETWEEN THE REGISTERED HOLDER HEREOF AND THE ISSUER HEREOF.
        A
        COPY OF THE LOCK-UP AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICES OF THE
        ISSUER.
        IN ADDITION, THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
        THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE “SECURITIES ACT”) AND
        MAY BE OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
        ONLY PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
        (PROVIDED BY RULE 144 THEREUNDER OR OTHERWISE, INCLUDING AN OFFER, SALE,
        OR
        TRANSFER OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION
        S
        UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE UNITED STATES
        SECURITIES LAWS), IF ACCOMPANIED BY AN OPINION OF COUNSEL REASONABLY
        SATISFACTORY TO THE ISSUER THAT REGISTRATION UNDER THE SECURITIES ACT IS
        NOT
        REQUIRED. HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY
        MAY
        NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES
        ACT.

      

      (c) Each
        of
        the Sellers hereby agrees that:

      

      (i) the
        Consideration Shares have not been registered under the Securities Act, such
        securities are “restricted securities” as defined in Rule 144 under the
        Securities Act, and the Consideration Shares may not be offered or sold within
        the United States or to, or for the account of or benefit of, U.S. persons
        except in accordance with Regulation S under the Securities Act, Rule 144
        under
        the Securities Act, if applicable, or pursuant to another exemption from
        the
        registration requirements of the Securities Act;

      

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      (ii) he,
        she
        or it acknowledges that the Consideration Shares have not been registered
        under
        the Securities Act and may not be offered or sold except as provided in the
        legend above;

      

      (iii) he,
        she
        or it acknowledges that the foregoing restrictions apply to holders of a
        beneficial interest in the Consideration Shares as well as to holders of
        the
        Consideration Shares; 

      

      (iv) he,
        she
        or it shall not engage in any hedging transaction involving the Consideration
        Shares unless in compliance with the Securities Act; and

      

      (v)
        the
        Consideration Shares will be subject to the terms and conditions of the
        Registration Rights Agreement and the Lock-Up Agreements.

      

      (d) The
        Purchaser hereby agrees that: 

      

      (i) it
        shall
        take all steps necessary to cause the Consideration Shares to be quoted on
        the
        NASDAQ Global Market, or such other exchange as the Purchaser Common Stock
        shall
        be listed or quoted at such time no later than the time such shares are sold
        or
        transferred in a transaction exempt from registration under the Securities
        Act
        pursuant to Rule 144 promulgated thereunder or registered;

      

      (ii) a
        long as
        any Seller owns Consideration Shares, it shall use commercially reasonable
        efforts to timely file with the SEC (or obtain extensions in respect thereof
        and
        file within the applicable grace period) all reports required to be filed
        by the
        Purchaser pursuant to Section 13(a) or 15(d) of the Exchange Act;

      

      (iii) it
        shall
        pay the reasonable fees of counsel incurred for legal opinions reasonably
        requested by Sellers with respect to the sale or other transfer of the
        Consideration Shares by the Sellers under Rule 144 or Regulation S of the
        Securities Act or otherwise required under any successor provisions thereto;
        and

      

      (iv) the
        Consideration Shares will be subject to the terms and conditions of the
        Registration Rights Agreement and the Lock-Up Agreements referenced in Section
        2.7(f) hereof.

       

      Section
        2.9 Limitations
        on Issuances of Purchaser Common Stock. Notwithstanding
        anything contained in this Agreement to the contrary, the Purchaser shall
        not be
        required to issue shares of Purchaser Common Stock to the Sellers as
        Consideration Shares and/or shares in respect of any Deferred Consideration
        Amount, in the aggregate, in excess of the Maximum Purchaser Shares Number.
        For
        purposes of this Agreement, “Maximum Purchaser Shares Number” shall mean, as of
        the date of any proposed issuance of shares of Purchaser Common Stock to
        the
        Sellers under this Agreement, 19.9% of the number of issued and outstanding
        shares of Purchaser Common Stock as of such date. In the event, that any
        issuance of shares of Purchaser Common Stock would cause the Maximum Purchaser
        Shares Number to be exceeded, then (i) the Purchaser shall issue only such
        number of shares of Purchaser Common Stock which would equal, in the aggregate
        with all other prior issuances of Purchaser Common Stock to the Sellers under
        this Agreement, the Maximum Purchaser Shares Number and (ii) payment of the
        balance of any Purchase Price or Deferred Consideration Amount owing to the
        Sellers shall be, at the election of the Purchaser, (A) paid in cash to the
        Sellers, or (B) deferred for up to six months (the “Deferral Period”), provided
        that the Purchaser then uses its best efforts to obtain approval of the issuance
        of sufficient Purchaser Common Stock in excess of the Maximum Purchaser Shares
        Number in order to make the payment of such balance and: (1) if such approval
        is
        obtained not later than the end of the Deferral Period, to issue such Purchaser
        Common Stock to the Sellers, or (2) if such approval is not obtained before
        the
        end of the Deferral Period, to pay such balance to the Sellers in cash .
        

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      ARTICLE
        III

      CLOSING

      Section
        3.1 Time
        and Place of Closing. 

      

      (a) The
        closing of the transactions contemplated by this Agreement (the “Closing”) shall
        take place at the offices of Kane Kessler, P.C., 1350 Avenue of the Americas,
        New York, New York 10019. 

      

      (b) Subject
        to the satisfaction or waiver of the conditions precedent set forth in this
        Article III (other than those conditions that by their nature are to be
        satisfied at the Closing, but subject to the fulfillment or waiver of those
        conditions), the Closing shall take place on January 4, 2007, or at such
        other
        time and/or place as the Purchaser and Sellers may agree (the “Closing Date”)
        and if the Closing Date is on January 4, 2007, then the effective date of
        the
        Closing shall be as of January 1, 2007. The Closing shall be deemed effective
        as
        of 12:01 a.m. EDT on the Closing Date. At the Closing the Sellers shall sell
        to
        the Purchaser, and the Purchaser shall purchase from the Sellers, all of
        the
        Sellers’ right, title and interest in and to all Shares. The Purchaser shall pay
        for those Shares delivered at the Closing, such Purchase Price to be paid
        in the
        form of Cash Consideration and Consideration Shares in accordance with Section
        2.2(a) hereof.

      

      (c) All
        proceedings to be taken and all documents to be executed at any Closing shall
        be
        deemed to have been taken, delivered and executed simultaneously, and no
        proceeding shall be deemed taken nor documents deemed executed or delivered
        until all have been taken, delivered and executed.

      

      Section
        3.2  Conditions
        Precedent to Purchaser’s Obligation to Close. The
        obligation of the Purchaser to purchase the Shares and to perform its other
        obligations under this Agreement at the Closing shall be subject to the
        satisfaction of each and every of the following conditions precedent (or
        waiver
        thereof by the Purchaser) on or prior to the Closing Date:

      

      (a) Representations
        and Warranties. Each
        of
        the representations and warranties of the Sellers contained in Section 4.1
        of
        this Agreement or in any certificate or other document delivered pursuant
        to
        this Agreement or in connection with the transactions contemplated hereby,
        were
        true and correct when made and shall be true and correct at and as of the
        Closing Date with the same effect as though such representations and warranties
        were made at and as of the Closing Date (except to the extent that such
        representations and warranties speak as of another date, in which case such
        representations and warranties shall be true and correct as of such other
        date,
        and except as otherwise contemplated or permitted by this Agreement), and
        the
        Purchaser shall have received a certificate from the Sellers, dated the Closing
        Date, to that effect. 

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      (b) Compliance
        with Obligations.
        The
        Sellers shall have performed and complied, and shall have caused the Company
        to
        perform and comply, in all material respects with all agreements, covenants
        and
        obligations required by this Agreement to be performed or complied with by
        them
        on or prior to the Closing Date and the Purchaser shall have received a
        certificate from the Sellers, dated the Closing Date, to that
        effect.

      

      (c) No
        Material Adverse Change. Except
        as
        may be set forth herein, since the date hereof there shall have been no change,
        occurrence or circumstance having or reasonably likely to have, individually
        or
        in the aggregate, a Material Adverse Effect and the Purchaser shall have
        received a certificate from the Sellers, dated the Closing Date, to such
        effect.

       

      (d) Consents. The
        Company shall have obtained, on or prior to the Closing Date, the consent
        of all
        Persons, the consent of which is required, so that the consummation of the
        transactions contemplated by this Agreement will not constitute a default
        or
        accelerate any liability under any agreement to which the Company is a party
        or
        by which the Company is bound.

       

      (e) No
        Injunctions. etc.
        The
        Closing shall not have been enjoined or prohibited by any judicial or regulatory
        proceeding, nor shall any action, proceeding, suit, litigation or investigation
        be pending or threatened before any Governmental Entity (i) that seeks to
        enjoin
        or prohibit, or to obtain damages in connection with the Closing or (ii)
        that
        purports to affect the legality, validity or enforceability of this Agreement
        and the other documents, instruments and agreements to be entered into by
        the
        Sellers pursuant hereto.

       

      (f) Receipt
        of Documents, etc.
        The Purchaser
        shall have received the following, in form and substance reasonably satisfactory
        to the Purchaser:

      

      
        	 	
                (i)

              	
                certificates
                  representing the Shares, which certificates shall be in good delivery
                  form, duly endorsed or accompanied by appropriate stock transfer
                  powers
                  duly executed;

              

      

      

      
        	 	
                (ii)

              	
                copies
                  of the Articles of Incorporation (as recently certified by its
                  jurisdiction of formation) and Bylaws of each of the Company and
                  each
                  Subsidiary, certified by the Secretary of each such company as
                  of the
                  Closing Date as being true and correct copies thereof as in effect
                  on the
                  Closing Date;

              

      

      

      
        	 	
                (iii)

              	
                evidence
                  reasonably acceptable to the Purchaser that all of the Closing
                  Indebtedness listed on Schedule 5.15 will be extinguished and the
                  Company
                  and its assets will be released by the application of funds at
                  the Closing
                  pursuant to Section 5.15, and that, after such Closing Indebtedness
                  has
                  been extinguished, the Company has no
                  Indebtedness;

              

      

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (iv)

              	
                all
                  corporate minute books, stock certificate books and other corporate
                  records of each of the Company and the
                  Subsidiaries;

              

      

      

      
        	 	
                (v)

              	
                a
                  certificate of the Secretary of State of Vermont, dated as of a
                  date
                  within thirty (30) days prior to the Closing Date, certifying that
                  the
                  Company is in good standing under the laws of Vermont, and a bringdown
                  good standing confirmation dated as of the Closing
                  Date;

              

      

      

      
        	 	
                (vi)

              	
                a
                  certificate of the Secretary of State of the jurisdiction of organization
                  of each Subsidiary, dated as of a date within thirty (30) days
                  prior to
                  the Closing Date, certifying that such Subsidiary is in good standing
                  under the laws of such jurisdiction, and a bringdown good standing
                  confirmation dated as of the Closing
                  Date;

              

      

      

      
        	 	
                (vii)

              	
                duly
                  executed employment agreements, dated the Closing Date, substantially
                  in
                  the respective forms attached hereto as Exhibit 3.2(f)(vii), by
                  and
                  between the Company and each of PAA (“Peter Asch Employment Agreement”),
                  ALL (“Litke Employment Agreement”), RDA Employment Agreement (“Richard
                  Asch Employment Agreement”) and JMC (“Candido Consulting Agreement”);
                  

              

      

      

      
        	 	
                (viii)

              	
                the
                  duly executed Registration Rights Agreement, dated the Closing
                  Date,
                  substantially in the form attached hereto as Exhibit 3.2(f)(viii),
                  by and
                  among the Sellers and the Purchaser (the “Registration Rights
                  Agreement”);

              

      

      

      
        	 	
                (ix)

              	
                the
                  duly executed Escrow Agreement, dated the Closing Date, by and
                  among the
                  Sellers, the Sellers’ Representative, the Purchaser, and the Escrow Agent
                  (as defined therein) 

              

      

      

      
        	 	
                (x)

              	
                the
                  duly executed Lock-up Agreements, each dated the Closing Date,
                  substantially in the form attached hereto as Exhibit 3.2(f)(x),
                  by each of
                  the Sellers (the “Lock-up
                  Agreements”);

              

      

      

      
        	
              	(xi)	
                written
                  evidence satisfactory to the Purchaser that PAA has provided  the landlord
                  to the Essex Facility his personal guaranty with respect to all
                   of 
                  the obligations of the Company (or an Affiliate of the Purchaser)
                   under
                  the Amended Essex Sub-Lease  as inducement to release Twincraft
                   as
                  the guarantor under the sub-lease for the Essex Facility. 

              

      

      

      
        	 	
                (xii)

              	
                the
                  written consent of all Persons whose consent is required so that
                  the
                  consummation of the transactions contemplated by this Agreement
                  will not
                  constitute a default or accelerate any liability under any agreement
                  to
                  which the Company or any Subsidiary is a party or by which the
                  Company or
                  any Subsidiary is bound, including the consents set forth on Schedule
                  4.1(w);

              

      

       

       

      
        20

        
          

        

      

      
      

       

      
        	 	
                (xiii)

              	
                a
                  Closing Certificate of the Sellers certifying that the closing
                  conditions
                  set forth in Section 3.2(a) and (b) have been satisfied;
                  

              

      

      

      
        	 	
                (xiv)

              	
                the
                  New Winooski Lease;

              

      

      

      
        	 	
                (xv)

              	
                the
                  Amended Essex Sub-Lease;

              

      

      

      
        	 	
                (xvi)

              	
                written
                  evidence satisfactory to the Purchaser of the discharge and release
                  of the
                  Company of any contractual payment obligations owed to each of
                  Bob Asch
                  and Dave Asch; 

              

      

      

      
        	
              	(xvii)	
                the
                  opinion of Lisman Webster & Leckerling P.C., counsel to the
                  Company
                  and the Sellers, dated the Closing Date, addressed to the Purchaser,
                  in the form attached hereto as Exhibit 3.2(f)(xvii);
                  and

              

      

      

      
        	
              	(xvii)	
                such
                  other documents as the Purchaser may reasonably
                  request.

              

      

      

      (g) No
        Indebtedness.
        After
        the Closing Indebtedness listed on Schedule 5.15 has been extinguished by
        the
        application of funds at the Closing pursuant to Section 5.15, the Company
        has no
        Indebtedness.

       

      Section
        3.3 Conditions
        Precedent to Sellers’ Obligation to Close.
        The
        obligations of the Sellers to sell the Shares and to perform their other
        obligations under this Agreement at the Closing shall be subject to the
        satisfaction of the following conditions precedent (or waiver thereof by
        the
        Seller) on or prior to the Closing Date:

      

      (a) Representations
        and Warranties. Each
        of
        the representations and warranties of the Purchaser contained in Section
        4.2 of
        this Agreement or in any certificate or other document delivered pursuant
        to
        this Agreement or in connection with the transactions contemplated hereby,
        were
        true and correct when made and shall be true and correct at and as of the
        Closing Date with the same effect as though such representations and warranties
        were made at and as of the Closing Date (except to the extent that such
        representations and warranties speak as of another date, in which case such
        representations and warranties shall be true and correct as of such other
        date,
        and except as otherwise contemplated or permitted by this Agreement), and
        the
        Sellers shall have received a certificate from the Purchaser, dated the Closing
        Date, to that effect.

       

      (b) Compliance
        with Obligations.
        The
        Purchaser shall have performed or complied in all material respects with
        all
        agreements, covenants and obligations required by this Agreement to be performed
        or complied with by it on or prior to the Closing Date and the Sellers shall
        have received a certificate from the Purchaser, dated the Closing Date, to
        that
        effect.

       

      (c) No
        Material Adverse Change.
        Except
        as may be set forth herein, since date hereof there shall have been no change,
        occurrence or circumstance having or reasonably likely to have, individually
        or
        in the aggregate, a Material Adverse Effect and the Sellers shall have received
        a certificate from the Purchaser, dated the Closing Date, to such
        effect.

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      (d) No
        Injunctions. etc.
        The
        Closing shall not have been enjoined or prohibited by any judicial or regulatory
        proceeding, nor shall any action, proceeding, suit, litigation or investigation
        involving the Company be pending before any court, arbitration, tribunal,
        governmental or regulatory agency or legislative body (i) that seeks to enjoin
        or prohibit, or to obtain substantial damages in connection with, the Closing,
        or (ii) that purports to affect the legality, validity or enforceability
        of this
        Agreement and the other documents, instruments and agreements to be entered
        into
        by the Purchaser pursuant hereto.

       

      (e) Receipt
        of Documents, etc.
        The
        Sellers shall have received the following, in form and substance reasonably
        satisfactory to the Sellers:

      

      
        	 	
                (i)

              	
                the
                  Closing Date Cash Consideration;

              

      

      

      
        	 	
                (ii)

              	
                the
                  Closing Date Consideration Shares;

              

      

      

      
        	 	
                (iii)

              	
                certified
                  copies of resolutions of the Board of Directors of the Purchaser
                  approving
                  the transactions set forth in this
                  Agreement;

              

      

      

      
        	 	
                (iv)

              	
                a
                  Certificate of the Secretary of State of the State of Delaware,
                  as of a
                  date within thirty (30) days prior to the Closing Date, certifying
                  that
                  Purchaser is in good standing under the laws of the State of Delaware;
                  

              

      

      

      
        	 	
                (v)

              	
                the
                  duly executed Peter Asch Employment Agreement, Litke Employment
                  Agreement,
                  Richard Asch Employment Agreement and Candido Consulting Agreement,
                  each
                  dated the Closing Date;

              

      

      

      
        	 	
                (vi)

              	
                the
                  duly executed Registration Rights Agreement, dated the Closing
                  Date;

              

      

      

      
        	 	
                (vii)

              	
                the
                  duly executed Escrow Agreement, dated the Closing
                  Date;

              

      

      

      
        	 	
                (viii)

              	
                an
                  Officer’s Certificate of the Purchaser certifying that the closing
                  conditions set forth in Section 3.3(a) and (b) have been satisfied;
                  

              

      

      

      
        	 	
                (ix)

              	
                the
                  duly executed Lock-up Agreements, each dated the Closing Date,
                  by the
                  Purchaser; and

              

      

      

      
        	 	
                (x)

              	
                such
                  other documents as the Sellers may reasonably
                  request.

              

      

      

      (f) Appointment
        to Purchaser’s Board of Directors.
        PAA
        shall have been appointed to the Purchaser’s Board of Directors effective as of
        the Closing.

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        IV

      REPRESENTATIONS
        AND WARRANTIES

       

      Section
        4.1 Representations
        and Warranties of the Seller. Each
        of
        PAA and RDA, jointly and severally, and each of ALL and JMC severally, represent
        and warrant to the Purchaser that each of the following statements is true,
        accurate and complete:

       

      (a) Organization.
        Except
        as set forth on Schedule
        4.1 (a), each
        of
        the
        Company
        and the Subsidiaries is a corporation duly organized, validly existing, and
        in
        good standing under the laws of the state in which it was incorporated, has
        the
        full corporate power and authority and possesses all governmental
        franchises, licenses,
        permits, authorizations and approvals required to carry on the Business in
        the
        places and as it is now being conducted and to own, lease and sublease the
        properties and assets with respect to the Business which it now owns, leases
        or
        subleases and is qualified to do business as a foreign corporation in each
        of
        the jurisdictions listed under its name in Schedule
        4.1(a)
        attached
        hereto, which constitute all of the jurisdictions where
        the
        nature or character of the property owned, leased or operated by it or the
        nature of the business transacted by it makes such qualification necessary,
        except where the failure to be so qualified or be in good standing would
        not be
        reasonably likely to have a Material Adverse Effect.

      

      (b) Articles
        of Incorporation, Bylaws and Corporate Records. The
        Sellers have heretofore furnished to the Purchaser complete and correct copies
        of the Articles of Incorporation, Bylaws, stock ledgers and all minutes books
        of
        the Board of Directors and its committees and the stockholders of each of
        the
        Company and the Subsidiaries. All material actions taken by each of the Company
        and the Subsidiaries since its organization and incorporation have been duly
        authorized and/or subsequently ratified by the stockholder or Board of
        Directors, as necessary, of the Company or such Subsidiary, as the case may
        be,
        and are set forth in the minute books of the Company or such Subsidiary,
        as the
        case may be. Such minute books contain complete and accurate records of all
        meetings and other corporate actions of the board of directors, committees
        of
        the board of directors, incorporators and stockholders of the Company and
        the
        Subsidiaries since the date of their respective incorporations. All such
        meetings were duly called and held, and a quorum was present and acting
        throughout each such meeting. Such stock ledgers and stock transfer records
        reflect all issuances and registrations of transfer of all shares of capital
        stock of the Company and the Subsidiaries, as the case may be, and certificates
        representing all canceled shares of capital stock have been returned to the
        stock ledger, except where a lost certificate affidavit has been received
        from
        the registered owner (or their lawful representative) of the shares evidenced
        thereby. Execution, delivery and performance of this Agreement and the
        consummation of the transactions contemplated hereby by the Sellers does
        not and
        will not violate any provision of the Articles of Incorporation and Bylaws
        of
        the Company.

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      
        (c) Capitalization
          of the Company. The
          entire authorized capital stock of the Company consists of: (i) 100,000
          of Class
          A Common Stock of which 49,000 shares are issued and outstanding; (ii)
          100,000
          shares of Class B Common Stock of which zero shares are issued and outstanding;
          and (iii) 100,000 of Class A Preferred Stock of which zero shares are issued
          and
          outstanding. All of the issued and outstanding Shares have been duly authorized,
          are validly issued, fully paid and non-assessable and are held of record
          by the
          Sellers, and are free and clear of any Encumbrances
          or any statutory or common law preemptive rights. Except as set forth on
          Schedule
          4.1(c)
          attached
          hereto, there are no outstanding or authorized options, warrants, rights,
          contracts, calls, puts, rights to subscribe, conversion rights or other
          agreements or commitments to which any of the Company or the Sellers is
          a party
          or which are binding upon the Company or the Seller providing for the issuance,
          transfer, disposition or acquisition of any of its capital stock. Except
          as set
          forth on Schedule
          4.1(c)
          attached
          hereto, there is no outstanding or authorized equity appreciation, phantom
          stock
          or similar rights with respect to the Company. There are no dividends which
          have
          accrued or been declared but are unpaid on the outstanding capital stock
          of the
          Company. All Taxes required to be paid in connection with the issuance
          and any
          transfers of the outstanding capital stock of the Company have been paid.
          All
          permits or authorizations required to be obtained from or registrations
          required
          to be effected with any Person in connection with any and all issuances
          of
          securities of the Company since the date of its incorporation have been
          obtained
          or effected, and all securities of the Company have been issued and are
          held in
          accordance with the provisions of all Applicable Law. There are no voting
          trusts, proxies or any other agreements or understandings with respect
          to the
          voting of the capital stock of the Company, which would not otherwise be
          terminated at or before the Closing. Upon consummation of the Closing,
          the
          Company will not have any securities convertible into or exchangeable for
          any
          shares of its capital stock which have been created prior to the Closing,
          nor
          will it have outstanding any rights, options, agreements or arrangements
          to
          subscribe for or to purchase its capital stock or any securities convertible
          into or exchangeable for its capital stock, which has been created prior
          to the
          Closing.

      

       

      (d) Capitalization
        of the Subsidiaries. The
        Schedule
        4.1(d)
        sets
        forth the authorized capital stock of each Subsidiary. All of the issued
        and
        outstanding capital stock of each Subsidiary has been duly authorized, is
        validly issued, fully paid and non-assessable and at the Closing will be
        held of
        record by the Company, and are free and clear of any liens, charges or other
        Encumbrances. There are no outstanding or authorized options, warrants, rights,
        contracts, calls, puts, rights to subscribe, conversion rights or other
        agreements or commitments to which any Subsidiary or the Company is a party
        or
        which are binding upon any Subsidiary or the Company providing for the issuance,
        transfer, disposition or acquisition of any of Subsidiary’s capital stock. There
        is no outstanding or authorized equity appreciation, phantom stock or similar
        rights with respect to any Subsidiary. There are no dividends which have
        accrued
        or been declared but are unpaid on the outstanding capital stock of any
        Subsidiary. All Taxes required to be paid in connection with the issuance
        and
        any transfers of the outstanding capital stock of any Subsidiary have been
        paid.
        All permits or authorizations required to be obtained from or registrations
        required to be effected with any Person in connection with any and all issuances
        of securities of any Subsidiary since its date of incorporation have
        been
        obtained or effected, and all securities of any Subsidiary have been issued
        and
        are held in accordance with the provisions of all Applicable Law. There are
        no
        voting trusts, proxies or any other agreements or understandings with respect
        to
        the voting of the capital stock of any Subsidiary, which would not otherwise
        be
        terminated at or before the Closing. Upon consummation of the Closing, no
        Subsidiary will have any securities convertible into or exchangeable for
        any
        shares of its capital stock which have been created prior to the Closing,
        and no
        Subsidiary will have any outstanding rights, options, agreements or arrangements
        to subscribe for or to purchase its capital stock or any securities convertible
        into or exchangeable for its capital stock, which has been created prior
        to the
        Closing.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      (e) Authority. Each
        Seller
        is
        a natural Person and is competent and has all requisite power and authority
        to
        execute and deliver this Agreement and the other documents, instruments and
        agreements to be entered into by him pursuant hereto, to perform hereunder
        and
        thereunder, and to consummate the transactions identified in this Agreement
        without the necessity of any act or consent of any other Person or entity
        whomsoever. This Agreement and each and every agreement, document and instrument
        to be executed, delivered and performed by each Seller in connection herewith,
        constitute or will, when executed and delivered, constitute the legal, valid
        and
        binding obligation of such Seller, enforceable against him in accordance
        with
        their respective terms, except as enforceability may be limited by bankruptcy,
        insolvency, reorganization, moratorium and other similar laws from time to
        time
        in effect affecting the enforcement of creditors’ rights generally, and except
        as enforcement of remedies may be limited by general equitable
        principles.

       

      (f) Subsidiaries. Schedule
        4.1(f)
        sets
        forth all subsidiaries of the Company (each a “Subsidiary”, and collectively,
        the “Subsidiaries”). Schedule
        4.1(f)
        also
        sets forth the jurisdiction of incorporation and authorized and outstanding
        capital of each Subsidiary and the jurisdictions in which each Subsidiary
        is
        qualified to do business. All the outstanding capital stock of the Subsidiary
        is
        owned directly or indirectly by the Company free and clear of all Encumbrances
        and all material claims or charges of any kind, and is validly issued, fully
        paid and nonassessable. Except for the Subsidiaries, the Company does not
        control directly or indirectly or have any direct or indirect equity
        participation in any company, partnership, trust, joint venture, limited
        liability company or other business association. TWC Export, Inc. does not
        own
        or have any rights to or interests in, whether directly or indirectly, any
        assets or property that is used or relates to the business of the
        Company.

       

      (g) Financial
        Statements. The
        Sellers have delivered to the Purchaser true and complete copies of the
        Company’s (i) audited consolidated balance sheets and related audited
        consolidated statements of income, stockholder’s equity and comprehensive
        income, and cash flows at and for the fiscal years ended December 31, 2005
        and
        2004, including the notes thereto and (ii) the
        unaudited consolidated balance sheet and related unaudited consolidated
        statement of income, stockholder’s equity and comprehensive income, and cash
        flows at and for the nine months ended September 30, 2006 (collectively,
        the
“Financial Statements”). The Company’s audited balance sheet at December 31,
        2005 is referred to herein as the “Balance Sheet.” The Financial Statements (a)
        have been prepared from, are in accordance with, and accurately reflect the
        books and records of the Company and the Subsidiaries, in accordance with
        GAAP
        consistently applied throughout the periods covered thereby and in the instance
        of the financials for the period ended September 30, 2006, except for year
        end
        adjustments consistent with past practices, and (b) are true and correct
        and
        fairly present in all material respects the financial position of the Company
        and the Subsidiary on a consolidated basis as of the respective dates thereof
        and the results of operations, changes in stockholders’ equity and comprehensive
        income (in the case of the year-end Financial Statements), and cash flows
        for
        the periods covered thereby.

       

      (h) Absence
        of Undisclosed Liabilities. Except
        a
        set forth on Schedule
        4.1(h),
        there
        are no Liabilities of the Company or any Subsidiary other than those that
        (i) are disclosed or reserved against on the Balance Sheet or the notes
        thereto; or (ii) have been incurred in the Ordinary Course of Business since
        the
        date of the Balance Sheet. To the Sellers’ Knowledge, the reserves reflected in
        the Financial Statements are adequate, appropriate and reasonable, and have
        been
        calculated in a consistent manner.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      (i) Taxes. Except
        as
        set forth on Schedule
        4.1(i),
        each of
        the Company and the Subsidiaries has duly filed or caused to be filed all
        Tax
        reports and returns that it was required to file. Except as set forth on
        Schedule
        4.1(i),
        all
        such reports and returns were prepared and filed in accordance with Applicable
        Law and, to the Knowledge of the Sellers, are correct and complete in all
        material respects and neither the Company nor any Subsidiary has reported
        on its
        income tax returns any positions taken therein that could give rise to a
        substantial understatement of federal or other income tax owed by the Company
        or
        any stockholder of the Company. No claim has ever been made by an authority
        in a
        jurisdiction where the Company or any Subsidiary does not file Tax returns
        that
        the Company or such Subsidiary, as the case may be, is or may be subject
        to
        taxation by that jurisdiction. Except as set forth on Schedule
        4.1(i),
        all
        Taxes owed by the Company and the Subsidiaries as set forth on any filed
        return
        have been fully paid or fully reserved against in the Financial Statements,
        and
        there is no basis for any claim by any Tax authority against any assets of
        the
        Company on account of the failure or refusal of any stockholder to pay any
        Tax
        payable on account of the income of the Company. The Company and the
        Subsidiaries have withheld and paid all Taxes required to have been withheld
        and
        paid in connection with amounts paid or owing to any employee, creditor,
        independent contractor or other third party. Except as set forth on Schedule
        4.1(i),
        there
        is no action, suit, proceeding, investigation, audit dispute or claim concerning
        any Tax Liability of the Company or any Subsidiary either (i) claimed or
        raised
        by any authority in writing or (ii) as to which the Sellers have any actual
        knowledge, and, to the knowledge of the Sellers, there exists no reasonable
        basis for the making of any such actions, suits, proceedings, investigations,
        audit disputes or claims. Except as set forth on Schedule
        4.1(i),
        there
        is no liability for federal, state, local or foreign income, sales, use,
        employment, excise, property, franchise, ad valorem, license, employment
        or
        other Taxes, assessments, fees, charges or additions to Tax arising out of,
        or
        attributable to, or affecting the Assets or the conduct of the Business,
        for
        which the Company will have any Liability for payment or otherwise in excess
        of
        the amounts so paid by the Company which would be reflected as a liability
        of
        the Company in its financial statements if prepared as of the Closing Date
        in
        accordance with GAAP. Neither the Company nor any Subsidiary has waived any
        statute of limitations in respect of Taxes or agreed to any extension of
        time
        with respect to a Tax assessment or deficiency. Neither the Sellers, with
        respect to the Company, nor the Company, with respect to itself or any
        Subsidiary, has agreed or is required to make any adjustments pursuant to
        Section 481(a) of the Code or any similar provision of other tax law, domestic
        or foreign, by reason of a change in accounting method initiated by it or
        any
        other relevant party nor has it any knowledge that any taxing authority has
        proposed any such adjustment or change in accounting method. Neither the
        Company
        nor any Subsidiary has any application pending with any taxing authority
        requesting permission for any changes in accounting methods. 

      

      Neither
        the Company nor any Subsidiary will be required to include any item of income
        in, or exclude any item of deduction from, taxable income for any taxable
        period
        (or portion thereof) ending after the Closing Date as a result of any (A)
        “closing agreement” as described in Code Section 7121 (or any corresponding or
        similar provision of state, local or foreign income Tax law) executed on
        or
        prior to the Closing Date; (B) intercompany transactions or any excess loss
        account described in Treasury Regulations under Code section 1502 (or any
        corresponding similar provision of state, local or foreign income Tax law);
        (C)
        installment sale or open transaction disposition made on or prior to the
        Closing
        Date; or (D) prepaid amount received on or prior to the Closing
        Date.

      

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      No
        power
        of attorney has been granted by the Company or any Subsidiary with respect
        to
        any matters relating to Taxes that is currently in effect. 

      

      Neither
        the Company nor any Subsidiary has filed any disclosures under Code sections
        6662 or 6011 or comparable provisions of state, local or foreign law to prevent
        the imposition of penalties with respect to any Tax reporting position taken
        on
        any Tax Return. Neither the Company nor any Subsidiary has entered into any
        “listed transactions” as defined in Treasury Regulation Section 1.6011-4(b)(2),
        and the Company and its Subsidiaries have properly disclosed all reportable
        transactions as required by Treasury Regulation Section 1.6011-4, including
        filing Forms 8886 with Tax Returns and with the Office of Tax Shelter Analysis.
        

      

      Neither
        the Company nor any Subsidiary is a party to any tax sharing or tax allocation
        agreement. Neither the Company nor any Subsidiary (a) is a member of an
        affiliated group filing a consolidated federal income tax return or (b) incurred
        any liability for Taxes of any Person under Treasury Regulation Section 1.1502-6
        (or any similar laws) or as a transferee or successor or by contract.

      

      Neither
        the Company nor any Subsidiary has distributed stock of another Person, or
        has
        had its stock distributed by another Person, in a transaction that was purported
        or intended to be governed in whole or in part by Code section 355 or Code
        section 361. 

      

      The
        Company and each Subsidiary has been an S corporation, within the meaning
        of
        Code Section 1361(a)(1) at all times since January 1, 2003 and the Company
        will
        be an S corporation up to and including the day before the Closing Date.
        

      

      Neither
        the Company nor any Subsidiary will be liable for any tax under Code Sections
        1374 or 1375 or any corresponding provisions of state, local or foreign
        law.

      

      Neither
        the sale of the Shares as provided herein nor the resulting change of control
        of
        the Company, nor the inclusion of the Company on the Purchaser's consolidated
        income tax returns (which are filed under Subchapter C of the Internal Revenue
        Code and comparable provisions of state law) will result in any increase
        in the
        tax basis of any asset of the Company or result in any additional Tax liability
        of the Company. 

       

      (j) Tangible
        Property.

      

      (i) Assets.
        Schedule
        4.1(j)
        hereto
        sets forth all plant, machinery, equipment, furniture, leasehold improvements,
        fixtures, vehicles, structures, any related capitalized items and other tangible
        property used in the Business (“Tangible Property”).

      

      (ii) Title
        to Assets.
        Except
        as disclosed in Schedule
        4.1(j)
        attached
        hereto, the Company has good and valid title to, or a valid leasehold interest
        in, all Tangible Property, in each case free and clear of any
        Encumbrances.

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      (iii) Enforceability
        of Personal Property Leases.
        Each of
        the leases for personal property included in the Assets is in full force
        and
        effect and constitutes a legal, valid and binding obligation of the Company
        and
        each other party thereto, enforceable in accordance with its terms, and there
        is
        not existing under any of such leases any default of the Company or any event
        or
        condition which, with notice or lapse of time, or both, would constitute
        a
        default.

       

      (iv) Operating
        Condition.
        All of
        the tangible material Assets are in operating condition and sufficient state
        of
        repair to operate the Business as presently conducted by the Company, and
        is
        inspected, maintained and operated in conformity with all Applicable
        Law.

      

      (v) Sufficiency.
        Other
        than as set forth on Schedule
        4.1(j),
        there
        are no assets owned by any third party which are used in the operation of
        the
        Business, as presently conducted by the Company.

      

      (k) No
        Conflict. Except
        as
        set forth on Schedule
        4.1(k),
        the
        execution and delivery of this Agreement and the other documents, instruments
        and agreements to be entered into pursuant hereto by the Sellers do not,
        and the
        consummation of the transactions contemplated hereby and thereby will not:
        (i)
violate
        or
        conflict with the Articles of Incorporation or Bylaws (or other organizational
        documents) of the Company or any Subsidiary; (ii) violate or conflict with
        any
        Applicable Law binding upon the Company or any Subsidiary, except as would
        not
        be reasonably likely to have a Material Adverse Effect; (iii) violate or
        conflict with, result in a breach of, constitute a default or otherwise cause
        any loss of benefit under any material agreement or other obligation to which
        the Company or any Subsidiary is a party (including, without limitation,
        the
        Contracts set forth on Schedule 4.1(r)(i) attached hereto) or by which either
        of
        them or any of their Assets are bound, except, in each case, for such
        violations, conflicts, breaches, defaults or losses as would not have a Material
        Adverse Effect; or (iv) result in the creation of an Encumbrance pursuant
        to, or
        give rise to any penalty, acceleration of remedies, right of termination
        or
        otherwise cause any alteration of any rights or obligations of any party
        under
        any material contract or agreement to which either the Company or any Subsidiary
        is a party or by which either of them or any of their assets are bound. Except
        as set forth on Schedule
        4.1(k),
        no
        consent, authorization, waiver by or filing with any governmental agency,
        administrative body or other third party is required in connection with the
        execution or performance of this Agreement by the Company or the consummation
        by
        the Company of the transactions contemplated hereby, except for such consents,
        authorizations, waivers or filings, as to which the failure to obtain would
        not
        be reasonably likely to have a Material Adverse Effect.

      

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      Without
        limiting the generality of the foregoing clause, to the Sellers’ knowledge, it
        has not violated or is in violation of any applicable law or regulation,
        including but not limited to (i) the Federal Food, Drug, and Cosmetic Act,
        as
        amended (the “FDC Act”), (ii) the regulations and requirements adopted by the
        United States Food and Drug Administration (the “FDA”), including but not
        limited to the requirements pertaining to cosmetics and over-the-counter
        drugs
        and applicable safety, registration and manufacturing provisions and current
        industry good manufacturing practices, (iii) the Federal Hazardous Substances
        Act, as amended, and applicable regulations and requirements adopted by the
        Consumer Product Safety Commission (the “CPSC”), (iv) applicable state law and
        the requirements established by federal, state and local authorities responsible
        for regulating the manufacture, labeling, or promotion of the Company’s
        Products, and (v) the terms and conditions imposed in any licenses granted
        to
        the Company by any federal or state authority, except where the failure to
        comply, individually or in the aggregate, would not reasonably be expected
        to
        have a Material Adverse Effect

       

      (l) Absence
        of Changes. Except
        as
        disclosed in Schedule
        4.1(1)
        attached
        hereto, since December 31, 2005, the Company and each Subsidiary has conducted
        the Business only in the Ordinary Course of Business and:

      

      (i) neither
        the Company nor any Subsidiary has made any distribution of cash or other
        Assets
        other than distributions made in the Ordinary Course of Business;

      

      (ii) neither
        the Company nor any Subsidiary has (a) sold, leased, licensed, transferred
        or
        assigned any of the Assets, tangible or intangible, in excess of $10,000
        in the
        aggregate, other than for fair consideration in the Ordinary Course of Business
        and the Company has not written up the value of any of the Assets other than
        in
        connection with recording inventory purchases at standard values, or (b)
        sold,
        leased, licensed, transferred, assigned or disposed of any of the Assets
        material to the conduct of the Business.

      

      (iii) neither
        the Company nor any Subsidiary has entered into any written contract, lease,
        sublease or license involving more than $25,000, other than customer contracts,
        subcontractor contracts and vendor contracts related thereto entered into
        in the
        Ordinary Course of Business;

      

      (iv) other
        than customer and vendor purchase orders in the Ordinary Course of Business,
        to
        the Sellers’ knowledge, no party (including, without limitation, the Company and
        any Subsidiary) has accelerated, terminated, modified or canceled any contract,
        agreement, lease, sublease or license (or series of related contracts,
        agreements, leases, subleases and licenses) involving more than $25,000 to
        which
        the Company or any Subsidiary is a party or by which it is bound, and, to
        the
        Sellers’ knowledge, no party (including, without limitation, the Company and any
        Subsidiary) has threatened, or notified the Sellers, the Company or any
        Subsidiary, of its intent to do any of the foregoing;

      

      (v) other
        than pursuant to existing financing arrangements to be extinguished at Closing,
        neither the Company nor any Subsidiary has imposed any written mortgage or
        pledge of, or permitted or allowed the subjection of any lien, charge, security
        interest or Encumbrance of any kind on any of its Assets, tangible or
        intangible;

      

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      (vi) neither
        the Company nor any Subsidiary has made or committed to make any capital
        expenditure (or series of related capital expenditures) involving more than
        $50,000;

      

      (vii) neither
        the Company nor any Subsidiary has created, incurred, assumed or guaranteed
        any
        Indebtedness (including capitalized lease obligations) other than under any
        financing facility that is part of the Closing Indebtedness to be paid off
        at
        Closing;

      

      (viii) neither
        the Company nor any Subsidiary has canceled, amended, delayed or postponed
        the
        payment of accounts payable and other Liabilities; other than in the Ordinary
        Course of Business;

      

      (ix) neither
        the Company nor any Subsidiary has canceled, compromised, waived or released
        any
        right or claim (or series of related rights and claims) other than in the
        Ordinary Course of Business, involving more than $10,000 in the
        aggregate;

      

      (x) there
        has
        been no change made or authorized in the charter, by-laws or other
        organizational documents of the Company or any Subsidiary and there has been
        no
        change in any method of accounting or accounting practice of the Company
        or any
        Subsidiary;

      

      (xi) neither
        the Company nor any Subsidiary has issued, sold or otherwise disposed of,
        or
        authorized for issuance or sale, its capital stock or other equity securities,
        or granted or authorized for issuance or sale any options, warrants or other
        rights to purchase or obtain (including upon conversion or exercise) any
        of its
        capital stock;

      

      (xii) neither
        the Company nor any Subsidiary has declared, set aside or paid any dividend
        or
        distribution with respect to its capital stock or redeemed, purchased or
        otherwise acquired any of their capital stock;

      

      (xiii) neither
        the Company nor any Subsidiary has experienced any damage, destruction or
        loss
        (whether or not covered by insurance) which has had or could have a Material
        Adverse Effect;

      

      (xiv) neither
        the Company nor any Subsidiary has made any new loan to, or entered into
        any
        other transaction with, any of their directors, officers and employees giving
        rise to any claim or right on their part against the Person or on the part
        of
        the Person against them, other than in the Ordinary Course of
        Business;

      

      (xv) neither
        the Company nor any Subsidiary has granted any increase in the compensation,
        fringe benefits, or other compensation of, or paid any bonus or special payment
        of any kind (including increases under any bonus, pension, profit-sharing
        or
        other plan or commitment) to any of their employees with salaries in excess
        of
        $75,000, officers or directors, or Related Parties;

      

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      (xvi) except
        as
        disclosed on Schedule
        4.1(s)(vi),
        neither
        the Company nor any Subsidiary has adopted any (A) bonus, (B) profit-sharing,
        (C) incentive compensation, (D) pension, (E) retirement, (F) medical,
        hospitalization, life or other insurance, (G) severance, (H) other plan,
        contract or commitment for any of its directors, officers or employees, or
        modified or terminated any existing such plan, contract or
        commitment;

      

      (xvii) neither
        the Company nor any Subsidiary has made any charitable or other capital
        contribution other than $5,000 individually or $10,000 in the
        aggregate;

      

      (xviii) there
        has
        not been any other occurrence, commitment, event, incident, action, failure
        to
        act or transaction outside the Ordinary Course of Business involving the
        Company
        or any Subsidiary which has or could reasonably be expected to have a Material
        Adverse Effect; 

      

      (xix) neither
        the Company nor any Subsidiary has received notice of any material adverse
        change in their relationships with any financial institution, customer or
        supplier with which they currently do Business; and 

      

      (xx) neither
        the Company nor any Subsidiary has agreed, whether in writing or otherwise,
        to
        take any of the foregoing actions.

      

      (m) Litigation. Except
        (i) as set forth on Schedule 4.1(m) or (ii) for actions brought by employees
        that are more than three years old and which settled for less than $10,000,
        there are no actions, suits, investigations, arbitrations claims or proceedings
        (“Litigation”) pending or, to the Sellers’ Knowledge, threatened before any
        Governmental Entity (a) against (whether as plaintiff, defendant or otherwise)
        or affecting the Company or any Subsidiary or their directors, officers or
        shareholders in their capacities as such (b) against the Seller relating
        to the
        Shares or the transactions contemplated by this Agreement, and to the knowledge
        of the Sellers there exist no facts or circumstances creating any reasonable
        basis for the institution of any such action, suit, investigation, claim
        or
        proceeding. Schedule 4.1(m) sets forth a complete and accurate list, description
        and outcome of any Litigation against (whether as plaintiff, defendant or
        otherwise) or affecting the Company or any Subsidiary during the last five
        (5)
        years. There is no Litigation pending or, to the Sellers’ Knowledge, threatened
        against the Company or any Subsidiary that materially and adversely affects
        any
        of the Company, any Subsidiary, the Assets or the Business or the transactions
        contemplated by this Agreement and none of the items described in Schedule
        4.1(m),
        individually or in the aggregate, if pursued and/or resulting in a judgment
        against any of the Company or any Subsidiary would have a Material Adverse
        Effect on the Assets or the Business. Except as set forth on Schedule
        4.1(m),
        there
        are no outstanding judgments, decrees, orders or injunctions issued against
        the
        Company or any Subsidiary.

      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      (n) Licenses
        and Permits: Compliance With Law. Each
        of
        the Company and the Subsidiaries possess all material licenses, certificates,
        permits and franchises required to be obtained from federal, foreign, state,
        county, municipal or other public authorities in the operation of the Business,
        and each of the Company and the Subsidiaries is presently conducting the
        Business so as to comply with all Applicable Law and in all material respects
        with all such material licenses, certificates, permits and franchises. Neither
        the Company nor any Subsidiary is in receipt of written notice from any
        Governmental Entity alleging the violation of any Applicable Law and to the
        Knowledge of the Sellers no investigation, inspection, audit, or other
        proceeding by any Governmental Entity involving an allegation of violation
        of
        any Applicable Law is threatened or contemplated. 

       

      (o) Real
        Property Leases. 

      

      (i) Leases.
        Schedule
        4.1(o)
        attached
        hereto, lists all leases (each a “Lease,” and collectively the “Leases”) entered
        into by the Company or any Subsidiary pursuant to which any real property
        is
        occupied or used by the Company or any Subsidiary with respect to the Business
        (the “Leased Property”). The Sellers have delivered to the Purchaser correct and
        complete copies of the Leases (including all amendments thereto) listed in
        Schedule
        4.1(o).
        Except
        as set forth in Schedule
        4.1(o)
        hereto,
        with respect to each Lease listed in Schedule
        4.1(o):
        (i) the
        Leases are legal, valid, binding, enforceable and in full force and effect;
        (ii)
        the Leases will continue to be legal, valid, binding, enforceable and in
        full
        force and effect on identical terms following the Closing, and (iii) there
        are
        no disputes, claims, controversies, oral agreements or forbearance programs
        in
        effect as to the Leases; there are no other agreements that concern the right,
        title or interest in and to the Leases or grant to any other Person the right
        to
        occupy the Premises used in the Business. All rent and other sums and charges
        payable under the Leases are current, no notice of default or termination
        under
        the Leases are outstanding, no termination event or condition or uncured
        default
        on the part of the Company or any Subsidiary or on the part of the landlord
        thereunder exists under the Leases, and no event has occurred and, to the
        Knowledge of Sellers, no condition exists which, with the giving of notice
        or
        the lapse of time or both, would constitute such a default or termination
        event
        or condition. There are no subleases, licenses or other agreements granting
        to
        any person other than the Company any right to the possession, use, occupancy
        or
        enjoyment of the premises demised by the Leases. All of the premises demised
        under the Leases are used in the conduct of the Business. To the Sellers’
Knowledge, no landlord under the Leases have any plans to make any material
        alterations to any of the Leased Property, the construction of which would
        interfere with the use of any portion of the Leased Property. To the Sellers’
Knowledge, no landlord under the Leases have any plans to make any material
        alterations to any of the buildings in which Leased Property is located,
        the
        costs of which alterations would be borne in any part by a tenant under such
        Leases.

      

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      (ii) Leasehold
        Improvements.
        All
        improvements located on the Leased Property are in a state of good maintenance
        and repair and in a condition adequate and suitable for the effective conduct
        therein of the Business conducted and proposed to be conducted by the Company
        or
        any Subsidiary. To the Sellers’ knowledge, the heating, ventilation, air
        conditioning, plumbing and electrical systems at the Leased Properties are
        in
        and will be at Closing in good working order and repair to the extent that
        it is
        Tenant’s obligation. To the knowledge of Sellers, the heating, ventilation, air
        conditioning, plumbing and electrical systems at the Leased Properties are
        in
        and will be at Closing in good working order and repair to the extent that
        it is
        the landlord’s obligation, or the Sellers will have advised the landlord in
        writing, with a copy delivered to the Purchaser, of any defect and requested
        correction of same. The Company has not experienced any material interruption
        in
        such services provided to the Leased Property within the last year.

      

      (p) Real
        Property Ownership. Neither
        the Company nor any Subsidiary owns any real property. 

       

      (q) Intellectual
        Property. 

      

      (i) Schedule
        4.1(q)
        sets
        forth a complete and accurate list of all United States, international and
        state
        (i) Patents and Patent applications, (ii) Trademark registrations and
        applications and all material unregistered Trademarks, (iii) Internet domain
        names, and (iv) Copyright registrations and applications and Software (excluding
        commercially available off the shelf Software), owned by the Company and/or
        any
        Subsidiary or any other person listed on Schedule
        4.1(q)
        or used
        in the Business indicating for each, the applicable jurisdiction, registration
        number (or application number), date issued (or date filed) and descriptions
        of
        such property, together with all licenses related to the foregoing, whether
        the
        Company or any Subsidiary is the licensee or licensor thereunder.

      

      (ii) The
        Company and/or the Subsidiaries, directly or indirectly, owns or presently
        has
        the valid right to use pursuant to license agreements (the “License
        Agreements”), or otherwise, all Intellectual Property currently used in
        connection with the Business as (such Intellectual Property, together with
        the
        License Agreements the “Company Intellectual Property”).

      

      (iii) The
        Intellectual Property set forth on Schedule
        4.1(q)
        is
        solely and exclusively owned by the Company and/or the Subsidiaries free
        and
        clear of all Encumbrances, and as for all registered Intellectual Property,
        the
        Company or a Subsidiary is listed in the records of the appropriate United
        States, state or foreign agency as the sole owner of record for each
        registration and application for any Patent, Trademark, Internet domain name
        and
        Copyright. All of the Intellectual Property registrations and applications
        and
        common law trademarks set forth on Schedule
        4.1(q),
        and the
        trademark rights underlying any trademark registrations, applications and
        common
        law marks set forth on Schedule
        4.1(q),
        are
        valid and subsisting, in full force and effect, and have not been cancelled,
        expired, or abandoned. Neither the Sellers nor the Company has received any
        written, or oral notification of any pending or threatened opposition,
        interference or cancellation proceeding before any court or registration
        authority in any jurisdiction against the items set forth on Schedule
        4.1(q)
        or other
        Company Intellectual Property, directly or indirectly, owned by any of the
        Company or against any Company Intellectual Property not owned by the Company
        or
        any Subsidiary.

      

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      (iv) There
        are
        no settlements, injunctions, forbearances to sue, consents, judgments, or
        orders
        or similar obligations to which the Company or any Subsidiary is a party
        or, to
        the Knowledge of the Sellers, is otherwise bound, which (i) restrict any
        of the
        Company or any Subsidiary’s rights, as the case may be to use any Company
        Intellectual Property, (ii) restrict the Business in order to accommodate
        a
        third party’s Intellectual Property rights or (iii) permit third parties to use
        any Intellectual Property which would otherwise infringe any Company
        Intellectual Property. Neither of the Company or any Subsidiary has licensed
        or
        sublicensed its rights in any Company Intellectual Property other than pursuant
        to the License Agreements set forth on Schedule
        4.1(q)
        and no
        royalties, honoraria or other fees are payable by the Company for the use
        of or
        right to use any Company Intellectual Property in connection with the Business,
        except pursuant to the License Agreements set forth on Schedule
        4.1(q).

      

      (v) The
        License Agreements, permits and other agreements under which either the Company
        or any Subsidiary has rights to the Company Intellectual Property are valid
        and
        binding obligations of the Company and all other parties thereto, enforceable
        in
        accordance with their terms, and the Seller does not have Knowledge of any
        event
        or condition not listed on Schedule 4.1(q) which will result in a violation
        or
        breach of, or constitute (with or without due notice or lapse of time or
        both),
        a default by the Company or any Subsidiary, under any such License Agreement
        or
        other agreement.

      

      (vi) Neither
        the Sellers nor the Company has received written or oral notification that
        the
        conduct of the Business infringes any Intellectual Property rights owned
        or
        controlled by any third party (either directly or indirectly such as through
        contributory infringement or inducement to infringe) or is defamatory or
        violative in any way of any publicity, privacy, or other rights. Neither
        the
        Sellers nor the Company has received any written or oral notification of
        any
        pending or threatened claims or suits (i) alleging that any of the Company’s or
        any Subsidiary’s activities or the conduct of the Business infringes upon or
        constitutes the unauthorized use of the Intellectual Property rights of any
        third party, nor alleging libel, slander, defamation, or other violation
        of a
        personal right, or (ii) challenging the ownership, use, validity or
        enforceability of any Company Intellectual Property.

      

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

      (vii) Except
        as
        set forth on Schedule 4.1(q), to the Knowledge of the Sellers and the Company,
        no third party is misappropriating, infringing, or otherwise violating any
        Company Intellectual Property, and no such claims are pending against a third
        party by the Company or any Subsidiary.

      

      (viii) The
        consummation of the transactions contemplated hereby will not result in the
        loss
        or impairment of the Company’s or any Subsidiary’s right to own or use any of
        the Company Intellectual Property nor require the consent of any Governmental
        Authority or third party in respect of any such Company Intellectual
        Property.

      

      (ix) Neither
        the Company nor any Subsidiary is currently licensing to a third party, and
        has
        not assigned its rights to any Company Intellectual Property anywhere in
        the
        world. 

      

      (x) The
        Company and the Subsidiaries own or have the right to use all Software used
        in
        the Business. No
        unlicensed copies of any Software that is available in consumer retail stores
        or
        otherwise commercially available and
        subject
        to "shrink-wrap" or "click-through" license agreements are installed on any
        of
the
        Company’s or any Subsidiary’s computers
        or computer systems

      

      (r) Contracts. 

      

      (i) Schedule
        4.1(r)(i)
        sets
        forth a list of the following contracts, agreements, binding bids, binding
        proposals, or binding quotations (whether written or oral) to which the Company
        or any Subsidiary is a party or signatory or pursuant to which the Company
        or
        any Subsidiary has third party rights (except with respect to the Leases,
        which
        are set forth on Schedule
        4.1(o),
        which
        is hereby incorporated by reference into Schedule
        4.1(r)(i)
        and made
        a part thereof): (A) contract or series of contracts resulting in a commitment
        or potential commitment for expenditure or other obligation or potential
        obligation, or which provides for the receipt or potential receipt, involving
        in
        excess of Ten Thousand Dollars ($10,000) in any instance, or series of related
        contracts that in the aggregate give rise to rights or obligations exceeding
        such amount, other than any contract or series of contracts for the purchase
        and
        sale of goods in the ordinary course of business involving less than One
        Hundred
        Thousand Dollars ($100,000); (B) indenture, mortgage, promissory note, loan
        agreement, guarantee or other agreement or commitment for the borrowing or
        lending of money or Encumbrance of Assets involving more than Ten Thousand
        Dollars ($10,000) in each instance; (C) agreement which restricts the Company
        or
        any Subsidiary from engaging in any line of business or from competing with
        any
        other Person; and (D) any partnership, shareholder, joint venture, or similar
        agreement or arrangement to which either the Company or the Subsidiary is
        a
        party (collectively, and together with the Leases and all other agreements
        required to be disclosed on any schedule to this Agreement, the “Material
        Agreements”). The Sellers have previously made available to the Purchaser true,
        complete and correct copies of all written Material Agreements. The Company
        is
        not a party to any oral agreement (other than oral agreements with clients
        and
        customers) that is not terminable by the Company upon thirty days’ notice
        without obligation by the Company to the other party.

      

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      (ii) Except
        as
        set forth on Schedule
        4.1(r)(ii),
        each of
        the Material Agreements is in full force and effect and are the valid and
        legally binding obligations of the Company or the Subsidiary which is party
        to
        such Material Agreement and, to the Knowledge of the Company and the Sellers,
        the other parties thereto, enforceable in accordance with their respective
        terms, subject only to bankruptcy, insolvency or similar laws affecting the
        rights of creditors generally and to general equitable principles.

      

      (iii) Neither
        the Sellers, the Company, nor any Subsidiary has received written or oral
        notice
        of default by the Company or the Subsidiary under any of the Material
        Agreements, including any written or oral contract or agreement relating
        to
        borrowed money to which the Company is a party or by or to which it or its
        Assets are bound or subject, and no event has occurred which, with the passage
        of time or the giving of notice or both, would constitute a material default
        by
        the Company or the Subsidiary thereunder. Neither the Company, the Subsidiaries
        nor, to the Knowledge of the Sellers and the Company, any of the other parties
        to any of the Material Agreements is in material default thereunder, nor,
        to the
        Knowledge of the Sellers and the Company, has an event occurred which, with
        the
        passage of time or the giving of notice or both would constitute a material
        default by such other party thereunder. Neither the Sellers, the Company,
        nor
        any Subsidiary has received written or oral notice of the pending or threatened
        cancellation, revocation or termination of any of the Material Agreements,
        including, without limitation, any written or oral agreements relating to
        borrowed money to which the Company or any Subsidiary is a party or by or
        to
        which it or its assets are bound or subject, nor are any of them aware of
        any
        facts or circumstances which are reasonably likely to lead to any such
        cancellation, revocation or termination.

      

      (s) Labor
        Matters and Employees. 

      

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

      (i) Neither
        the Company nor any Subsidiary is a party to or bound by any collective
        bargaining or similar agreement with any labor organization or work rules
        or
        practices agreed to with any labor organization or employee association
        applicable to employees of the Company or any Subsidiary.

      

      (ii) No
        labor
        union has been certified by the National Labor Relations Board as bargaining
        agent for any of the employees of the Company or any Subsidiary; no notice
        has
        been received from any labor union stating that it has been designated as
        the
        bargaining agent for any of said employees; and no petition has been filed
        by
        any labor union requesting an election to determine whether or not it is
        the
        exclusive bargaining agent for any of said employees.

      

      (iii) None
        of
        the employees of the Company or any Subsidiary is represented by any labor
        organization and, to the Knowledge of the Sellers, there has been no union
        organizing activities among the employees of the Company or any Subsidiary
        within the past five years, nor does any question concerning representation
        exist concerning such employees.

      

      (iv) Except
        as
        set forth on Schedule
        4.1(s)(iv)
        attached
        hereto, within the last three (3) years, neither the Company nor any Subsidiary
        has been the subject of any union activity or labor dispute, nor has there
        been
        any strike, dispute, worker slowdown, stoppage or lockout of any kind or
        similar
        labor activity called, or threatened to be called, against the Company or
        any
        Subsidiary; and, except as set forth on Schedule
        4.1(s),
        neither
        the Company nor any Subsidiary has violated in any material respects any
        applicable federal or state law or regulation relating to labor or labor
        practices with regard to the Business, including, without limitation, all
        laws
        relating to labor relations, equal employment opportunities, fair employment
        practices, prohibited discrimination and similar employment activities, and
        neither the Company nor any Subsidiary is a party to any collective bargaining
        agreement affecting the Business.

      

      (v) There
        are
        no unfair labor practices, representation or other proceedings claimed, pending
        or threatened before any Governmental Entity and neither the Sellers nor
        the
        Company knows of any facts or circumstances which might give rise to such
        unfair
        labor practice, representation or other proceeding.

      

      (vi) Except
        as
        disclosed in Schedule
        4.1(s)(vi)
        attached
        hereto and except for at-will employment agreements entered into in the Ordinary
        Course of Business, the Company has not entered into any written or oral
        employment agreement with any director, officer or employee of the Company,
        and
        the Company has not entered into any agreements granting severance benefits
        or
        benefits payable upon a change of control of the Company or of the Business.
        Except as disclosed in Schedule
        4.1(s)(vi)
        attached
        hereto, to the Knowledge of the Sellers, no key employee or group of employees
        has any plans to terminate employment with the Company or any Subsidiary
        as a
        result of the transactions contemplated by this Agreement or otherwise.

      

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      (vii) Schedule
        4.1(s)(vii)
        contains
        the names, descriptive title, and annual salary rates and other compensation
        of
        all officers, directors, consultants and employees of the Company who do
        work
        for the Company. 

      

      (viii) Schedule
        4.1(s)(viii)
        sets
        forth a list of all employee policies, employee manuals or other written
        statements of rules or policies as to working conditions, vacation and sick
        leave applicable to such persons. 

      

      (t) Pension
        and Benefit Plans. 

      

      (i) Schedule
        4.1(t)
        attached
        hereto lists all Employee Benefit Plans that the Company and the Subsidiaries
        maintain, or at any time since January 1, 2000 have maintained, or to which
        the
        Company or the Subsidiary contributes, or at any time since January 1, 2000
        have
        had any obligation to contribute for the benefit of any current or former
        employee of the Company or any Subsidiary. The representations and warranties
        set forth in the following subsections A, B, C, D, E and F are with reference
        to
        such Employee Benefit Plans:

      

      (A) Each
        Employee Benefit Plan (and each related trust or insurance contract) complies,
        in form and in operation in all material respects, and has been maintained
        in
        material compliance with the applicable requirements of ERISA and the Code
        and
        all other applicable law including, but not by way of limitation, the
        requirements of Part 6 of Subtitle B of Title I of ERISA and of Section 4980B
        of
        the Code (together with any regulations and proposed regulations promulgated
        thereunder) and there has been no notice issued by any governmental authority
        questioning or challenging such compliance. All Employee Benefit Plans are
        in
        compliance with Code Section 412, to the extent that it is applicable. None
        of
        the Company or any Subsidiary has or has been party to a defined benefit
        employee pension plan under or subject to ERISA.

      

      (B) All
        required reports, disclosures and descriptions (including Form 5500 Annual
        Reports, Summary Annual Reports and Summary Plan Descriptions) have been
        filed
        or distributed appropriately with respect to each Employee Benefit Plan through
        plan years ending December 31, 2003. All required reports, disclosures and
        descriptions (including Form 5500 Annual Reports, Summary Annual Reports
        and
        Summary Plan Descriptions) through Plan year ended January 31, 2003 have
        been or
        will be prepared and have been or will be filed or distributed appropriately
        with respect to each Employee Benefit Plan.

      

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      (C) All
        contributions (including all employer contributions and employee salary
        reduction contributions) which are due, have been paid to each Employee Pension
        Benefit Plan and all contributions for any period ending on or before the
        Closing Date which are not yet due through Plan year ended December 31, 2004
        have been paid to each Employee Pension Benefit Plan or properly accrued
        prior
        to the Closing Date in accordance with the terms of the plan and past custom
        and
        practice of the Company. All premiums or other payments for all periods ending
        on or before the Closing Date have been paid or properly accrued with respect
        to
        each Employee Welfare Benefit Plan. All tax filings required to be made prior
        to
        the date of Closing with respect to each Employee Benefit Plan have been
        made,
        including but not limited to IRS Forms 990-T and 5330, and any taxes due
        in
        connection with such filings have been paid. 

      

      (D) Each
        Employee Pension Benefit Plan meets the requirements of a “qualified plan” under
        Section 401(a) of the Code and a request has been made for a favorable
        determination letter from the Internal Revenue Service for GUST. No event
        has
        occurred and no condition exists which could result in the revocation of
        such
        letter.

      

      (E) There
        have been no Prohibited Transactions with respect to any Employee Benefit
        Plan.
        Neither the Sellers nor, to the Sellers’ Knowledge, any other Fiduciary has any
        liability for breach of fiduciary duty or any other failure to act or comply
        in
        connection with the administration or investment of the assets of any Employee
        Benefit Plan. No charge, complaint, action, suit, proceeding, hearing,
        investigation, claim or demand against or involving any Employee Benefit
        Plan or
        with respect to the administration or the investment of the assets of any
        Employee Benefit Plan (other than routine claims for benefits) is pending
        or
        threatened. The Sellers do not have any Knowledge of any basis for any such
        charge, complaint, action, suit, proceeding, hearing, investigation, claim
        or
        demand.

      

      (F) With
        respect to each Employee Benefit Plan, the Sellers have furnished to the
        Purchaser correct and complete copies of (1) the plan documents and summary
        plan
        descriptions, (2) the most recent determination letter received from the
        Internal Revenue Service, (3) the most recent Form 5500 Annual Report, together
        with all schedules, as required, filed with the Internal Revenue Service
        or the
        Department of Labor, as applicable, and (4) all related trust agreements,
        insurance contracts and other funding agreements which implement each Employee
        Benefit Plan.

      

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      (i) Neither
        the Company nor any Subsidiary maintains, contributes to or has any liability
        with respect to, and has never maintained, contributed nor been required
        to
        contribute to any Multiemployer Plan. Neither the Company nor any Subsidiary
        has
        incurred, and the Sellers do not have Knowledge that the Company or any
        Subsidiary will incur, any Liability to the PBGC (other than PBGC premium
        payments) or otherwise under Title IV of ERISA (including any withdrawal
        Liability) or under the Code with respect to any Employee Pension Benefit
        Plan
        that the Company or any Subsidiary maintain or at any time maintained or
        to
        which the Company or any Subsidiary contribute or at any time contributed
        or at
        any time been required to contribute unless in each instance such Liability
        has
        been reflected or accrued on the Financial Statements.

      

      (ii) Neither
        the Company nor any Subsidiary maintains, maintained, contributes, contributed
        or been required to contribute to any Employee Welfare Benefit Plan providing
        health, accident or life insurance benefits to former employees, their spouses
        or their dependents other than in accordance with Section 4980B of the
        Code.

      

      (u) Insurance. Schedule
        4.1(u)
        attached
        hereto sets forth the following information with respect to each insurance
        policy (including but not limited to policies providing property, casualty,
        liability and workers’ compensation coverage and bond and surety arrangements)
        to which the Company or any Subsidiary has been a party, a named insured
        or
        otherwise the beneficiary of coverage at any time within the past three (3)
        years (the “Insurance Policies”): 

      

      (i) the
        name,
        address and telephone number of the agent;

      

      (ii) the
        name
        of the insurer, the name of the policyholder and the name of each covered
        insured;

      

      (iii) the
        policy number and the period of coverage;

      

      (iv) the
        scope
        (including an indication of whether the coverage was on a claims made,
        occurrence or other basis) and amount (including a description of how
        deductibles and ceilings are calculated and operate) of coverage;
        and

      

      
        
          
          

        

        
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      (v) a
        description of any retroactive premium adjustments or other loss sharing
        arrangements.

      

      The
        Company has previously provided the Purchaser with true and complete copies
        of
        all of the Insurance Policies, as amended. The Insurance Policies that are
        in
        effect are designated as such on Schedule
        4.1(u)
        (the
“Current Policies”). The Insurance Policies provide customary coverage for the
        Business and are sufficient for compliance by the Company and the Subsidiaries
        with all requirements of Applicable Law and all material agreements to which
        the
        Company or the Subsidiary is a party or by which any of the Assets are bound.
        All of the Current Policies are in full force and effect and are valid and
        enforceable in accordance with their terms, and the Company and the Subsidiaries
        have complied with all terms and conditions of such policies, including premium
        payments, except where such non-compliance would not provide grounds for
        termination or a reduction in or declination of coverage by the insurance
        company. None of the insurance carriers has indicated to the Company or the
        Sellers an intention to cancel, or alter the coverage under, any of the Current
        Policies. Neither the Company nor any Subsidiary has any claim pending against
        any of the insurance carriers under any of the Insurance Policies and there
        has
        been no actual or alleged occurrence of any kind which may give rise to any
        such
        claim and has not made any claims under any policy at any time since January
        1,
        2000. All applications for the Insurance Policies are accurate in all material
        respects. None of such Insurance Policies or arrangements provides for any
        retrospective premium adjustment, experienced-based liability
        or loss sharing arrangement affecting the Company or the Subsidiary. To the
        Knowledge of the Sellers, a true and complete list of all outstanding claims
        for
        medical expenses in excess of $10,000 made by or with respect to any employee
        of
        the Company or any Subsidiary is set forth in Schedule
        4.1(u).

       

      (v) Customers
        and Suppliers. 

      

      (i) Except
        as
        set forth in Schedule 4.1(v), there are no pending disputes or controversies
        between the Company and any major customer or supplier of the Company where
        the
        amount in controversy exceeds, or could reasonably be expected to exceed
        $10,000
        in Losses to the Company, nor, to the Sellers’ Knowledge, are there any facts
        which would impair the relationship of the Company or any Subsidiary with
        its
        major customers or suppliers. The Sellers and the Company have no Knowledge
        that
        any of the Company’s or any Subsidiary’s major customers or suppliers has or is
        contemplating terminating its relationship with the Company or the Subsidiary.
        To the Sellers’ Knowledge, no major customer or supplier has experienced any
        type of work stoppage or other material adverse circumstances or conditions
        that
        may jeopardize or adversely affect the Company’s or any Subsidiary’s
        relationship with any major customer or supplier. 

      

      (ii) Neither
        the Company nor any Person acting with authority on behalf of the Company,
        nor
        any Affiliates of the Company nor the Sellers, acting alone or together,
        has
        with respect to the Business directly or indirectly in violation of Applicable
        Law, given or agreed to give any gift or similar benefit during the past
        two (2)
        years to any customer, supplier, trading company, shipping company, governmental
        employee or other Person who is or may be in a position to help or hinder
        the
        Business (or assist the Company in connection with any actual or proposed
        transaction) which (A) may subject any of the Company to any material damage
        or
        any material penalty in any civil, criminal or governmental litigation,
        proceeding or investigation, (B) if not given, may have had a Material Adverse
        Effect, or (C) if not continued in the future, may have a Material Adverse
        Effect. 

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

      (w) Governmental
        Approvals and Third Party Consents. Except
        as
        disclosed in Schedule
        4.1(w),
        no
        filing or registration with, and no consent, approval, authorization, license,
        permit, certificate or order of any Governmental Entity or any other Person
        is
        required to be made or obtained to permit the Seller to execute, deliver
        or
        perform this Agreement or any instrument or agreement required hereby to
        be
        executed by them at the Closing.

       

      (x) Transactions
        with Related Parties. Except
        as
        disclosed in Schedule 4.1(x) attached hereto, the Company is not a party
        to any
        material transaction with any Person which is a present or former officer
        or
        director or shareholder of or partner of any of the Company, or Affiliate
        or
        family member of such officer, director, shareholder or partner (each such
        party
        being a Related Party and, collectively, the “Related Parties”). There are no
        material commitments to and no material income reflected in the Financial
        Statements that has or have been derived from any person or entity which
        is a
        Related Party and, following the Closing, the Purchaser shall have no obligation
        of any kind or description to any such Related Party other than as set forth
        in
        accordance with this Agreement. Except as reflected in the Financial Statements,
        no material expense relating to the operation of the Business has been borne
        by
        any Person which is a Related Party, the Company does not have any material
        income reflected on the Financial Statements that is dependent upon or
        conditioned on the Business’ affiliation with any Related Party and the Company
        and the Sellers have no reason to believe that any income source will not
        be
        available to the Company after Closing due to lack of sufficient affiliation.
        The Company and the Sellers have no reason to believe that any material expense
        reflected in the Financial Statements will be affected by loss of the Business’
affiliation with any Related Party and has no reason to believe that any
        expense
        will increase for the Company after the Closing due to lack of such affiliation.
        For purposes of this subsection 4.1(y), transactions between the Company
        and the
        Subsidiary shall be disregarded.

       

      (y) Brokers
        and Intermediaries. Except
        as
        set forth in Schedule
        4.1(y),
        neither
        the Company nor any Seller has employed any broker, finder, advisor or
        intermediary in connection with the transactions contemplated by this Agreement
        which would be entitled to a broker’s, finder’s or similar fee or commission in
        connection therewith or upon the consummation thereof. 

       

      (z) Title
        to Securities. At
        the
        Closing, the Sellers will transfer and convey, and the Purchaser will acquire,
        good and marketable title to the Shares, free and clear of all Encumbrances.
        At
        the Closing, the Company will have good and marketable title to all of the
        issued and outstanding shares of the Subsidiaries, free and clear of all
        Encumbrances. Upon the transfer of the Shares to the Purchaser, the Company
        will
        possess ownership of the entire Business necessary to operate the Company
        as an
        on-going concern, including as such Business is presently being conducted
        and
        there will be no material assets not owned or leased by the Company which
        are
        used to conduct the Business of the Company.

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      (aa) List
        of Bank Accounts and Proxies. Set
        forth
        on Schedule
        4.1(aa)
        is: (a)
        the name and address of each bank, trust company, savings and loan association,
        or other institution in which each of the Company or any Subsidiary maintains
        an
        account (cash, securities or other) or safe deposit box; (b) the name and
        phone
        number of each Company and Subsidiary contact person at such bank or
        institution; (c) the account number of the relevant account and a description
        of
        the type of account; (d) the name of each person authorized by each of the
        Company and the Subsidiaries to effect transactions therewith or to have
        access
        to any safe deposit box or vault; and (e) all proxies, powers of attorney
        or
        other like instruments to act on behalf of each of the Company and the
        Subsidiaries in matters concerning its business or affairs.

       

      (bb) Environmental
        and Safety Matters. 

      

      (i) Each
        of
        the Company and the Subsidiaries is currently in compliance with all
        Environmental and Safety Requirements, and neither the Company nor any
        Subsidiary has incurred Liabilities nor is subject to any corrective,
        investigatory or remedial obligations arising under Environmental and Safety
        Requirements which relate to the Company or any Subsidiary or any of their
        respective properties or facilities, except for such matters which are not
        reasonably likely to result in a Material Adverse Effect. 

      

      (ii) Neither
        the Company nor any Subsidiary has treated, stored, disposed of, arranged
        for or
        permitted the disposal of, transported, handled or released any hazardous
        substance causing either of them to incur any Liabilities for response costs,
        natural resource damages or attorneys fees pursuant to the Comprehensive
        Environmental Response, Compensation and Liability Act of 1980, as amended
        (“CERCLA”), or any other Environmental and Safety Requirements, except for such
        actions which are not reasonably likely to give rise to a Material Adverse
        Effect. 

      

      (iii) Neither
        the Company nor any Subsidiary has either expressly or by operation of law,
        assumed or undertaken any liability or corrective, investigatory or remedial
        obligation of any other Person relating to any Environmental and Safety
        Requirements, except for such actions which are not reasonably likely to
        give
        rise to a Material Adverse Effect.

      

      (iv) Neither
        the Company nor any Subsidiary has received any communication (written or
        oral),
        whether from a Governmental Entity, citizens group, employee or otherwise,
        that
        alleges that the Company or any Subsidiary is not in full compliance with
        any
        Environmental and Safety Requirements, and there are no circumstances that
        may
        prevent or interfere with such full compliance in the future. The Company
        has
        delivered to Purchaser prior to the execution of this Agreement all information
        that is in the possession of or reasonably available to the Sellers, the
        Company
        or any Subsidiary regarding environmental matters pertaining to, or the
        environmental condition of, the Businesses of the Company and the Subsidiaries
        or the compliance (or noncompliance) by the Company or any Subsidiary with
        any
        Environmental and Safety Requirements.

      

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

      (cc) Accounts
        Receivable, Notes Receivable, and Costs in Excess of Billing. All
        accounts, notes receivable and costs in excess of billing of each of the
        Company
        and the Subsidiaries as of the date hereof have arisen in the Ordinary Course
        of
        Business, represent valid obligations to such company for sales made, services
        performed or other charges and are, to the Knowledge of the Sellers and the
        Company, not subject to claims or set-off, or other defenses or counter-claims
        except for reserves for bad debts provided on the Financial Statements. All
        items which are required by GAAP to be reflected as accounts and notes
        receivable on the Financial Statements and on the books and records of the
        Company are so reflected and have been recorded in accordance with
        GAAP.

       

      (dd) Investment
        in the Consideration Shares. 

      

      (i) The
        Sellers are acquiring the Consideration Shares for their own account and
        will
        not sell, transfer, or otherwise dispose of any of the Consideration Shares
        or
        any interest therein, without registration under the Securities Act and
        applicable state “blue sky” laws, except in a transaction which in the opinion
        of counsel reasonably acceptable to Purchaser is exempt therefrom. Each Seller
        is an “accredited investor” as that term is defined in rules promulgated under
        the Securities Act. Each Seller has such knowledge and experience in financial
        and business matters as to be capable of evaluating the merits and risk of
        an
        investment in the Purchaser Common Stock and has obtained, in its judgment,
        sufficient information from Purchaser to evaluate the merits and risks of
        an
        investment in the Purchaser Common Stock. Each Seller has been provided the
        opportunity to obtain information and documents concerning Purchaser and
        the
        Purchaser Common Stock, and has been given the opportunity to ask questions
        of,
        and receive answers from, the directors and officers of the Purchaser concerning
        the Purchaser and the Purchaser Common Stock and other matters pertaining
        to
        this investment. Each Seller acknowledges that the offer of the Purchaser
        Common
        Stock will not be reviewed by any Governmental Entity and is being sold to
        such
        Seller in reliance upon exemption from the Securities Act. Each Seller is
        aware
        of the risks inherent in an investment in the Purchaser and specifically
        the
        risks of an investment in the Purchaser Common Stock. In addition, each Seller
        is aware and acknowledges that there can be no assurance of the future viability
        or profitability of the Purchaser, nor can there be any assurance relating
        to
        the current or future price of the Purchaser Common Stock, as quoted on the
        NASDAQ Global Market, or market conditions generally. 

      

      (ii) The
        Sellers will resell the Consideration Shares only pursuant to registration
        under
        the Securities Act or pursuant to an available exemption from registration,
        including in accordance with the provisions of Regulation S adopted under
        the
        Securities Act, and agrees not to engage in hedging transaction with regard
        to
        the Consideration Shares unless in compliance with the Securities
        Act.

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

      (ee) Disclosure. No
        representation or warranty of the Sellers contained in this Agreement, or
        the
        schedules hereto, and no closing certificate furnished by the Sellers to
        the
        Purchaser at the Closing contains or will contain any untrue statement of
        a
        material fact or omits to state a material fact necessary in order to make
        the
        statements contained herein or therein, in light of the circumstances in
        which
        they are made, not misleading.

       

      (ff) Products.
        All of
        the products produced, manufactured, marketed, or under development by the
        Company, including without limitation, all component ingredients and packaging
        and labeling materials (collectively, the “Products”), comply with all federal
        and state laws, regulations, and requirements relating to their safety,
        manufacture, labeling, storage, distribution, and marketing. To the knowledge
        of
        the Sellers, all Products in process or in inventory are not, and all Products
        manufactured, packaged, or distributed by the Company at the time of delivery
        to
        the customers were not, “adulterated” or “misbranded” within the meaning of said
        laws and regulations, nor did any such Product constitute an article prohibited
        from introduction into interstate commerce. 

       

      There
        exists no set of facts (a) which could reasonably be expected to furnish
        a basis
        for the recall, withdrawal or suspension of any Product, approval or consent
        of
        any Governmental Entity with respect to any Product manufactured, distributed
        or
        sold by the Company, (b) which could reasonably be expected to furnish a
        basis
        for the recall, withdrawal or suspension, by order of any state, federal
        or
        foreign court of law, of any Product, or (c) which could reasonably be expected
        to have an adverse effect on the continued operation of any facility of the
        Company or which could otherwise cause the Company or any of its customers
        to
        recall, withdraw or suspend any such Product from the market due to safety
        or
        effectiveness concerns or to change the marketing classification of any such
        Product. There are no defects in the designs, specifications, or process
        with
        respect to any Product sold or otherwise distributed that is reasonably likely
        to give rise to any Losses or that will cause such Product to not be useable
        as
        intended or marketed.

       

      Section
        4.2 Representations
        and Warranties of the Purchaser. The
        Purchaser hereby represents and warrants to the Sellers that each of the
        following statements is true, accurate and complete in all
        respects:

       

      (a) Organization
        and Standing. The
        Purchaser is a company duly organized, validly existing and in good standing
        under the laws of the State of Delaware, and has the full corporate power
        and
        authority to carry on its business in the places and as it is now being
        conducted and to own and lease its properties and assets.

       

      (b) Corporate
        Power and Authority. The
        Purchaser has the full corporate power and authority to execute and deliver
        this
        Agreement and the other documents, instruments, and agreements to be entered
        into pursuant hereto by the Purchaser, to perform hereunder and thereunder,
        and
        to consummate the transactions contemplated hereby and thereby without the
        necessity of any act, approval or consent of any other Person or entity
        whomsoever. The execution, delivery and performance by the Purchaser of this
        Agreement, and each and every other agreement, document and instrument to
        be
        executed, delivered and performed in connection herewith have been, or by
        the
        Closing will be, approved by all requisite corporate action on the part of
        the
        Purchaser and constitute or will, when executed and delivered, constitute
        the
        legal, valid and binding obligation of the Purchaser, enforceable against
        it in
        accordance with their respective terms, except as enforceability may be limited
        by bankruptcy, insolvency, reorganization, moratorium and other similar laws
        from time to time in effect affecting the enforcement of creditors’ rights
        generally, and except as enforcement of remedies may be limited by general
        equitable principles.

       

      
        
          
          

        

        
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      (c) Agreement
        Does Not Violate Other Instruments. The
        execution and delivery of this Agreement and the other documents, instruments,
        and agreements to be entered into pursuant hereto by Purchaser do not, and
        the
        consummation of the transactions contemplated hereby and thereby will not,
        violate any provisions of the Certificate of Incorporation, as amended, or
        Bylaws, as amended, of the Purchaser or constitute an occurrence of default
        under any provision of: any mortgage, deed of trust, conveyance to secure
        debt,
        note, loan, lien, lease, agreement, instrument, or any consent, order, judgment
        or decree to which it is a party or by which it is bound or its assets are
        affected. Purchaser is not and will not be required to obtain any material
        consent from any Person in connection with the
        execution and delivery of this Agreement or the
        consummation or performance of the transactions contemplated hereby
        that has
        not been received prior to Closing.

       

      (d) Litigation. There
        is
        no suit, action, proceeding or claim pending or, to the Purchaser’s Knowledge,
        threatened against or affecting the Purchaser or any of its affiliates that
        would impair the ability of the Purchaser to consummate the transactions
        contemplated by this Agreement or operate the Business or own the Assets
        after
        the Closing.

       

      (e) Approvals. Assuming
        the accuracy of the representations and warranties
        set
        forth in Section 4.1(ee) hereof, no
        filing
        or registration with, and no consent, approval, authorization, license, permit,
        certificate or order of any governmental authority is required by any applicable
        law or by any applicable judgment, order or decree or any applicable rule
        or
        regulation of any governmental authority, to permit the Purchaser to execute,
        deliver or perform this Agreement or any instrument or agreement required
        hereby
        to be executed by it at the Closing.

       

      (f) Brokers
        and Intermediaries. Except
        as
        set forth on Schedule
        4.2(f),
        the
        Purchaser has not employed any broker, finder, advisor or intermediary in
        connection with the transactions contemplated by this Agreement which would
        be
        entitled to a broker’s, finder’s or similar fee or commission in connection
        therewith or upon the consummation thereof.

      

      (g) SEC
        Filings. The
        unaudited consolidated balance sheet and related consolidated statements
        of
        income, cash flows, and changes in stockholders’ equity (together with related
        notes) as of and for the six months ended June 30, 2006, as set forth in
        the
        Purchaser’s Quarterly Report on Form 10-Q, as
        filed
        with the SEC, (x) fairly present in all material respects the financial position
        of the Purchaser as of June 30, 2006 and the results of its operations, cash
        flows, and stockholders’ equity for the six months ended June 30, 2006 and (y)
        were prepared in accordance with GAAP applied on a consistent basis throughout
        such period, except as otherwise indicated in the notes thereto.

       

      
        
          
          

        

        
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      ARTICLE
        V

      COVENANTS

      Section
        5.1 Affirmative
        Covenants of the Sellers. Except
        as
        set forth on Schedule 5.1, from
        the
        date of this Agreement and until the Closing Date, unless otherwise expressly
        contemplated by this Agreement or consented to in writing by the Purchaser,
        the
        Sellers shall cause the Company to:

      

      
        	 	
                (a)

              	
                operate
                  the Business in the Ordinary Course of
                  Business;

              

        	 	 	 

      

      
        	 	
                (b)

              	
                use
                  reasonable efforts to preserve substantially intact the Company’s and each
                  Subsidiary’s business organization and goodwill, maintain the Company’s
                  and each Subsidiary’s rights and franchises, retain the services of the
                  Company’s and each Subsidiary’s respective officers and key employees and
                  maintain the Company’s and each Subsidiary’s relationships with their
                  customers and suppliers;

              

        	 	 	 

      

      
        	 	
                (c)

              	
                maintain
                  and keep their properties and tangible Assets in as good repair
                  and
                  condition as at present, ordinary wear and tear excepted, and maintain
                  supplies in quantities consistent with their customary business
                  practice;

              

        	 	 	 

      

      
        	 	
                (d)

              	
                use
                  reasonable best efforts to keep in full force and effect insurance
                  in
                  amount and scope of coverage to that currently
                  maintained;

              

        	 	 	 

      

      
        	 	
                (e)

              	
                use
                  reasonable efforts to obtain (and to cooperate with the Purchaser
                  in
                  obtaining) any consent, authorization or approval of, or exemption
                  by, any
                  Person required to be obtained or made by the Seller in connection
                  with
                  the transactions contemplated by this
                  Agreement;

              

        	 	 	 

      

      
        	 	
                (f)

              	
                use
                  reasonable efforts to bring about the satisfaction of the conditions
                  precedent to the Closing set forth in Section 3.2 of this Agreement;
                  and

              

        	 	 	 

      

      
        	 	
                (g)

              	
                promptly
                  advise the Purchaser orally and within three (3) business days
                  thereafter,
                  in writing of any change in the Business that has had or is likely
                  to have
                  a Material Adverse Effect upon the
                  Company.

              

      

       

      Section
        5.2 Affirmative
        Covenants of the Sellers Relating to Due Diligence. From
        the
        date of this Agreement and until the Closing Date, the Sellers hereby covenant
        and agree to cause the Company to afford the Purchaser and its Representatives,
        reasonable access to the properties and facilities of the Company, and cause
        the
        Company to make available to Purchaser and its Representatives, all books
        and
        records relating to the Company and to the Business. The rights of access
        and
        investigation provided for in this Section 5.2 shall be conducted during
        normal
        business hours, upon reasonable prior notice and in such manner as not to
        interfere unreasonably with the operation of the Business. The Sellers authorize
        the Purchaser to disclose to such banks, lenders, potential investors and
        investors, as well as the Purchaser’s attorneys, accountants and other financial
        advisors, all financial statements and other information of the Company
        reasonably required by such persons to evaluate an investment in the Purchaser
        provided that such parties are advised of the confidential nature of such
        information. 

       

      
        
          
          

        

        
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      Section
        5.3 Negative
        Covenants of the Sellers. Except
        as
        set forth on Schedule
        5.3,
        the
        Seller hereby covenant and agree that between the date of this Agreement
        and the
        Closing, unless otherwise expressly contemplated by this Agreement or consented
        to in writing by the Purchaser, which shall not be unreasonably withheld,
        the
        Sellers shall not permit the Company to do any of the foregoing (for any
        activity after January 4, 2007, all of the following covenants shall apply
        only
        to actions outside of the Ordinary Course of Business):

      

      (a) make
        any
        distribution to stockholders of cash or other Assets other than distributions
        made in the Ordinary Course of Business;

      

      (b) 
        (i)
        sell, lease, license, transfer or assign any of the Assets, tangible or
        intangible, in excess of $10,000 in the aggregate, other than for fair
        consideration in the Ordinary Course of Business and not write up the value
        of
        any of the Assets other than in connection with recording inventory purchases
        at
        standard values, or (ii) sell, lease, license, transfer, assign or dispose
        of
        any of the Assets material to the conduct of the Business.

      

      (c) enter
        into any written contract, lease, sublease or license involving more than
        $25,000, other than customer contracts, subcontractor contracts and vendor
        contracts related thereto entered into in the Ordinary Course of
        Business;

      

      (d) other
        than customer and vendor purchase orders in the Ordinary Course of Business,
        accelerate, terminate, modify or cancel any contract, agreement, lease, sublease
        or license (or series of related contracts, agreements, leases, subleases
        and
        licenses) involving more than $25,000 to which the Company or any Subsidiary
        is
        a party or by which it is bound;

      

      (e) other
        than pursuant to existing financing arrangements to be extinguished at Closing,
        impose any written mortgage or pledge of, or permit or allow the subjection
        of
        any lien, charge, security interest or Encumbrance of any kind on any of
        its
        Assets, tangible or intangible;

      

      (f) make
        or
        commit to make any capital expenditure (or series of related capital
        expenditures) involving more than $25,000;

      

      (g) create,
        incur, assume or guarantee any Indebtedness (including capitalized lease
        obligations) other than borrowings under existing facilities which will be
        paid
        off at Closing;

      

      (h) cancel,
        amend, delay or postpone the payment of accounts payable and other Liabilities
        other than in the Ordinary Course of Business;

      

      
        
          
          

        

        
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      (i) cancel,
        compromise, waive or release any right or claim (or series of related rights
        and
        claims) other than in the Ordinary Course of Business, involving more than
        $10,000 in the aggregate; 

      

      (j) make
        or
        authorize any change in the charter, by-laws or other organizational documents
        of the Company or any Subsidiary, or make any change in any method of accounting
        or accounting practice of the Company or any Subsidiary;

      

      (k) issue,
        sell or otherwise dispose of, or authorize for issuance or sale, its capital
        stock or other equity securities, or granted or authorized for issuance or
        sale
        any options, warrants or other rights to purchase or obtain (including upon
        conversion or exercise) any of its capital stock;

      

      (l) except
        as
        set forth in Schedule
        5.3,
        declare, set aside or pay any dividend or distribution with respect to its
        capital stock or redeem, purchase or otherwise acquire any of their capital
        stock;

      

      (m) make
        any
        new loan to, or enter into any other transaction with, any of their directors,
        officers and Highly Compensated Employees giving rise to any claim or right
        on
        their part against the Person or on the part of the Person against them,
        other
        than in the Ordinary Course of Business;

      

      (n) grant
        any
        increase in the compensation, fringe benefits, or other compensation of,
        or paid
        any bonus or special payment of any kind (including increases under any bonus,
        pension, profit-sharing or other plan or commitment) to any of their Highly
        Compensated Employees, officers or directors, or Related Parties;

      

      (o) adopt
        any
        (A) bonus, (B) profit-sharing, (C) incentive compensation, (D) pension, (E)
        retirement, (F) medical, hospitalization, life or other insurance, (G)
        severance, (H) other plan, contract or commitment for any of its directors,
        officers or highly compensated employees, or modify or terminate any existing
        such plan, contract or commitment;

      

      (p) make
        any
        charitable or other capital contribution other than immaterial contributions
        of
        soap consistent with past practice;

      

      (q) take
        any
        willful action for the primary purpose of causing any condition to the Closing
        (as set forth in Article III hereof) to be materially delayed or fail to
        be
        satisfied;

      

      (r) terminate
        or modify, or commit or cause or suffer to be committed any act that will
        result
        in material breach or violation of any term of or (with or without notice
        or
        passage of time, or both) constitute a default under or otherwise give any
        Person a basis for non-performance under, any indenture, mortgage, deed of
        trust, loan or credit agreement, lease, license or other agreement, instrument,
        arrangement or understanding, written or oral, other than in the Ordinary
        Course
        of Business;

      

      (s) apply
        any
        Assets to the direct or indirect payment, discharge, satisfaction or reduction
        of any amount payable directly or indirectly to or for the benefit of the
        Sellers or any Affiliate of the Sellers or any Related Party or to the
        prepayment of any such amounts, other than expenses payable in the Ordinary
        Course of Business;

      

      
        
          
          

        

        
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      (t) do
        any
        act, or omit to do any act which would cause a violation or breach of any
        of the
        representations, warranties or covenants of the Sellers or the Company set
        forth
        in this Agreement or cause any representation or warranty set forth herein,
        or
        in any certificate or other document delivered in connection herewith, to
        be
        untrue on the Closing Date;

      

      (u) take
        any
        action which has or could reasonably be expected to have a Material Adverse
        Effect; 

      

      (v) except
        as
        set forth in Schedule
        5.3,
        transfer, directly or indirectly, in any way, any cash, cash equivalents,
        securities, or other assets to the Sellers, or for the benefit of the Sellers,
        including, but not limited to, by way of dividend, loan, repayment of
        indebtedness, payment of fees, or other distribution or transfer;
        or

      

      (w) agree,
        whether in writing or otherwise, to do any of the foregoing. 

      

      Section
        5.4 Affirmative
        Covenants of the Purchaser. The
        Purchaser hereby covenants and agrees that, unless otherwise expressly
        contemplated by this Agreement or consented to in writing by the Sellers,
        the
        Purchaser will and hereby agrees:

      

      (a) to
        comply
        promptly with all requirements with respect to the transactions contemplated
        by
        this Agreement, and furnish information to the Sellers in connection with
        any
        such requirement;

      

      (b) to
        use
        its reasonable efforts to obtain any consent, authorization or approval of,
        or
        exemption by, any Person required to be obtained or made by Purchaser in
        connection with the transactions contemplated by this Agreement;

      

      (c) to
        not
        take any willful action for the primary purpose of causing any condition
        to the
        Closing (as set forth in Article III hereof) to be materially delayed or
        to fail
        to be satisfied;

      

      (d) to
        use
        its reasonable efforts to bring about the satisfaction of the conditions
        precedent to Closing set forth in Section 3.3 of this Agreement;
        and

      

      (e) that
        the
        unaudited consolidated balance sheet and related consolidated statements
        of
        income, cash flows, and changes in stockholders’ equity (together with related
        notes) as of and for the nine months ended September 30, 2006, as set forth
        in
        the Purchaser’s Quarterly Report on Form 10-Q, to be filed with the SEC, (x)
        will fairly present in all material respects the financial position of the
        Purchaser as of September 30, 2006 and the results of its operations, cash
        flows, and stockholders’ equity for the nine months ended September 30, 2006 and
        (y) will be prepared in accordance with GAAP applied on a consistent basis
        throughout such period, except as otherwise indicated in the notes
        thereto.

       

      
        
          
          

        

        
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      Section
        5.5  Preparation
        of Tax Return. 

       

      (a) Tax
        Returns. Sellers
        shall file or cause to be filed when due all Tax returns that are required
        to be
        filed by or with respect to the Company for Tax periods ending before the
        Closing Date, and shall remit, or cause to be remitted by the taxpayers who
        owe
        such Taxes, any Taxes due in respect of such Tax returns. Purchaser shall
        not
        file or cause to be filed any Tax return relating to the Company for Tax
        periods
        ending before the Closing Date without the Sellers’ prior consent (which shall
        not be unreasonably withheld or delayed), other than Tax returns that will
        not
        be materially adverse to the Sellers. Purchaser shall file or cause to be
        filed
        all Tax returns that are required to be filed by or with respect to the Company
        for Taxes with respect to any Tax period that begins before and ends after
        the
        Closing Date (a “Straddle Period”) and shall remit or cause to be remitted the
        amount of Taxes shown on such Tax returns. Sellers shall reimburse Purchaser
        for
        the portion of the Taxes payable for all periods of the Straddle Period
        occurring prior to Closing as determined pursuant to Section 5.5(e). Purchaser
        shall file or cause to be filed when due all other Tax returns that are required
        to be filed by or with respect to the Company, and shall remit or cause to
        be
        remitted any Taxes due in respect of such Tax returns. Sellers or Purchaser
        shall reimburse the other party for any Taxes which are payable with Tax
        returns
        to be filed by the other party pursuant to this Section 5.5(a), in each case,
        within ten (10) days after such returns are filed. 

       

      (b) Cooperation
        on Tax Matters. Purchaser
        and Sellers shall cooperate fully, as and to the extent reasonably requested
        by
        the other party, in connection with the filing of Tax returns relating to
        the
        Company and any audit, litigation or other proceeding with respect to Taxes
        relating to the Company, including any Tax claim. Such cooperation shall
        include
        the retention and (upon the other party’s request) the provision of records and
        information which are reasonably relevant to any such audit, litigation or
        other
        proceeding and making employees available on a mutually convenient basis
        to
        provide additional information and explanation of any material provided
        hereunder or to testify at any proceeding. 

       

      (c) Tax
        Refunds. The
        amount or economic benefit of any refunds of Taxes of the Company for any
        taxable period ending before the Closing Date shall be for the account of
        Seller. The amount or economic benefit of any refunds of Taxes of the Company
        for any taxable period beginning on or after the Closing Date shall be for
        the
        account of Purchaser. The amount or economic benefit of any refunds of Taxes
        of
        the Company for any period beginning on or after the Closing Date shall be
        ratably apportioned between Purchaser and Sellers in the manner described
        in
        Section 5.5(e). Any such amounts owing to Purchaser and Seller, as applicable,
        as provided in this Section 5.5(c) shall be paid by Purchaser or Sellers,
        as
        applicable, within five (5) business days of the receipt of any such refunds.
        

       

      (d) Transfer
        Taxes. Each
        party will bear its own transfer, documentary, sales, use, stamp, registration
        and other such Taxes and fees (including any penalties and interest) incurred
        in
        connection with the transactions contemplated by this Agreement (“Transfer
        Taxes”). Purchaser will, at its own expense, file all necessary Tax returns and
        other documentation with respect to all such transfer, documentary, sales,
        use,
        stamp, registration and other Taxes and fees, and, if required by applicable
        law, Sellers will join in the execution of any such Tax returns and other
        documentation. 

       

      (e) Apportionment
        of Straddle Periods. 

       

      In
        the
        event of any Straddle Period:

       

      
        
          
          

        

        
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                (i)

              	
                personal
                  and intangible property Taxes and any other Taxes levied on a per
                  diem
                  basis (“Per Diem Taxes”) of the Company for any Tax period prior to
                  Closing shall be equal to the amount of such Per Diem Taxes for
                  the entire
                  Straddle Period multiplied by a fraction, the numerator of which
                  is the
                  number of days from the beginning of the relevant Straddle Period
                  up to
                  the day before the Closing Date and the denominator of which is
                  the total
                  number of days in the Straddle Period;
                  and

              

      

      

      
        	 	
                (ii)

              	
                the
                  Taxes of the Company (other than Per Diem Taxes) for any Tax period
                  prior
                  to Closing shall be computed as if such Tax period ended as of
                  the close
                  of business on the day before the Closing
                  Date.

              

      

       

      Section
        5.6 Notification. Each
        party to this Agreement shall promptly notify the other party in writing
        of the
        occurrence, or pending or threatened occurrence, of any event that would
        constitute a breach or violation of this Agreement by any party or that would
        cause any representation or warranty made by the notifying party in this
        Agreement to be false or misleading in any respect (including without
        limitation, any event or circumstance which would have been required to be
        disclosed on any schedule to this Agreement had such event or circumstance
        occurred or existed on or prior to the date of this Agreement). Any such
        notification shall not limit or alter any of the representations, warranties
        or
        covenants of the parties set forth in this Agreement nor any rights or remedies
        that a party may have with respect to a breach of any representation, warranty
        or covenant.

       

      Section
        5.7 Confidentiality. The
        parties hereto hereby agree to treat all of the information required to be
        disclosed or exchanged in connection with this Agreement and any other
        confidential information a party hereto receives from another party hereto
        as
        confidential, to not directly or indirectly use any of such information except
        in connection with this Agreement, and, if this Agreement is terminated for
        any
        reason whatsoever, to keep such information confidential and within ten (10)
        business days after termination of this Agreement for any reason, to return
        to
        such other party all tangible embodiments (and all copies) of such information
        which are in its possession. The parties hereto may disclose on a confidential
        basis the transactions contemplated hereby and any information which such
        party
        may obtain from another party hereto to their respective Boards of Directors,
        senior management personnel, attorneys, accountants, financial advisors,
        prospective investors in the Purchaser or any Affiliates or other professionals
        to the extent necessary to obtain their services in connection with the
        transactions contemplated hereby. Neither party shall have an obligation
        to
        treat as confidential (i) information that was already in such party’s or any of
        such party’s possession prior to disclosure by the other party; (ii) information
        then generally known or available to the public or that later becomes publicly
        available other than through the receiving party; or (iii) information disclosed
        to the party by a third party who was not bound by an obligation of
        confidentiality to the other party. The obligation to maintain the
        confidentiality of information shall also not apply to any information disclosed
        or disclosures made in response to a valid subpoena or similar process or
        to an
        order of a court of competent jurisdiction, provided that the disclosing
        party
        shall have used its reasonable best efforts to notify the other party hereto
        to
        whom the confidential information belongs in time to afford such party an
        opportunity to contest such process or order. Notwithstanding the provisions
        of
        this Section 5.7, in the event that this Agreement is terminated by the Seller
        pursuant to Section 6.2(a) of this Agreement, then the obligations with respect
        to confidential information shall be governed by the confidentiality agreement
        between the parties dated February 23, 2006.

       

      
        
          
          

        

        
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      Section
        5.8 Covenant
        Not to Compete. The
        Sellers acknowledge that in order to assure the Purchaser that the Purchaser
        will retain the value of the Company as a “going concern,” the Sellers, on the
        terms set forth in this Section 5.8, agrees not to utilize their special
        knowledge of the Business of the Company and its relationships with customers,
        prospective customers, suppliers and others or otherwise to compete with
        the
        Business subject to the terms hereafter set forth. Accordingly, subject to
        the
        Closing of the transactions contemplated by this Agreement, each Seller
        covenants and agrees as follows:

      

      (a) During
        the five (5) year period that begins on the Closing Date, such Seller shall
        not,
        whether for its own account or for the account of any other party other than
        the
        Company or Purchaser or its Affiliates, directly or indirectly engage or
        have
        any financial interest in, own, manage, operate, finance, control or participate
        in the ownership, management, operation, financing or control of, be employed
        by, associated with or in any manner connected with, lend their name to or
        any
        similar name to, lend their credit to or render services or advice to, any
        organization or activity which in any manner competes with (A) the Company
        with
        respect to the Business or (B) the Purchaser or its Affiliates with respect
        to
        the Purchaser’s Business. For purposes of this Section 5.8, the term "compete"
        shall mean with respect to the Company or the Purchaser and its Affiliates:
        (i)
        with respect to or in connection with conducting any Business or the Purchaser’s
        Business, calling on, soliciting, taking away, or accepting as a client or
        customer or attempting to call on, solicit, take away or accept as a client
        or
        customer, any individual, person, partnership, company, association or other
        entity or enterprise that is or was a client or customer of or actively
        solicited by the Company or, to such Seller’s Knowledge, the Purchaser or its
        Affiliates on or within two (2) years of the Closing Date; (ii) with respect
        to
        any business reason other than in connection with the Business or the
        Purchaser’s Business, calling on, soliciting, taking away, or accepting as a
        client or customer or attempting to call on, solicit, take away or accept
        as a
        client or customer, any individual, person, partnership, company, association
        or
        other entity or enterprise that is or was a client or customer of the Company
        or, to such Seller’s Knowledge, the Purchaser or its Affiliates on or within two
        (2) years of the Closing Date without the prior written consent of the CEO
        of
        the Purchaser in each instance, which consent will not be unreasonably delayed
        or withheld; (iii) soliciting, taking away or attempting to solicit or take
        away, employ or otherwise engage as an employee, independent contractor or
        otherwise, any person who is or was an employee of the Company or the Purchaser
        or its Affiliates on or within two (2) years of the Closing Date, on behalf
        of
        any individual, person, partnership, company, association or other entity
        or
        enterprise conducting Business or the Purchaser’s Business; (iv) inducing or
        attempting to induce any employee of the Company or the Purchaser and its
        Affiliates to terminate employment with the Company or the Purchaser and
        its
        Affiliates, as the case may be; (v) entering into or attempting to enter
        into
        any business similar to or competing in any way with the Business or the
        Purchaser’s Business. For purposes of this Section 5.8(a), the words "directly
        or indirectly" as they modify the word "compete" shall mean (i) acting as
        an
        agent, representative, consultant, officer, director, manager, independent
        contractor or employee of any individual, person, partnership, company,
        association, limited liability company, limited liability partnership or
        other
        entity or enterprise which competes with the Company, the Business or the
        Purchaser’s Business, (ii) participating in any such competing entity or
        enterprise as an owner, member, partner, limited partner, joint venturer,
        creditor or stockholder (except as a stockholder holding less than a two
        percent
        (2 %) interest in a Company whose shares are traded on a regional or national
        securities exchange or have been registered under Section 12(g) of the Exchange
        Act); and (iii) communicating to any such competing entity or enterprise
        the
        names or addresses or any other information concerning any past, present
        or
        identified prospective client or customer.   

      

      
        
          
          

        

        
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      (b) During
        the five (5) year period that begins on the Closing Date, such Seller shall
        not
        interfere with any of the Company’s, the Purchaser’s or the Purchaser’s
        Affiliates’ relationships with any party, including any party who, during the
        one year period ending on the Closing Date, was an employee, contractor,
        supplier or customer of any of the Company, the Purchaser, or the Purchaser’s
        Affiliates’. Such Seller shall not make public statements which may negatively
        impact any of the Company, the Purchaser or Purchaser’s Affiliates, or any of
        its directors, officers, employees or agents with respect to the customers,
        suppliers, products, personnel or business of Purchaser, Purchaser’s Affiliates,
        and any of the Company,
        and
        Purchaser and its Affiliates shall not make public statements which negatively
        impact such Seller, except to the extent such statements by such Seller,
        the
        Purchaser or Purchaser’s Affiliates are (i) required by the federal securities
        laws or any other laws applicable to the Purchaser or its Affiliates, (ii)
        made
        in a manner consistent with an individual’s fiduciary duties, or (iii) in
        connection with any arbitration, mediation, administrative action, or litigation
        (including, without limitation pleadings, depositions, discovery requests
        and
        testimony) relating to this Agreement or any other Agreement between the
        parties.
        For
        purposes of this Section 5.8(b), “interfere” shall mean intentional or grossly
        negligent acts or conduct that is reasonably likely to hamper, hinder or
        disturb
        the relationships between the Company, the Purchaser or Purchaser’s Affiliates
        and any applicable party; provided, however, that the term “interfere” shall not
        include any act of solicitation under Section 5.8(a)(i), (ii) or (v) hereof
        that
        was permissible in accordance with the terms of Section 5.8(a) at the time
        that
        such act was committed.

      

      (c) Such
        Seller shall not at any time, directly or indirectly, use or purport to
        authorize any Person to use any name, mark, copyright, logo, a trade dress
        or
        other identifying words or images which are the same as or similar to those
        used
        currently or in the past by Purchaser or the Company, in connection with
        any
        product or service, whether or not such use would be in a business competitive
        with that of Purchaser or the Company.

      

      (d) Such
        Seller hereby acknowledges that a breach of the provisions of Sections
        5.8(a)-(c) cannot reasonably or adequately be compensated in damages in an
        action at law; and that a breach of any of the provisions contained in Sections
        5.8(a)-(c) will cause the Company irreparable injury and damage. By reason
        thereof, such Seller hereby agrees that the Company shall be entitled, in
        addition to any other remedies it may have under this Agreement or otherwise,
        to
        preliminary, temporary and permanent injunctive and other equitable relief
        to
        prevent or curtail any actual breach of Sections 5.8(a)-(c) by such Seller;
        provided,
        however,
        that no
        specification in this Agreement of a specific legal or equitable remedy shall
        be
        construed as a waiver or prohibition against the pursuing of other legal
        or
        equitable remedies in the event of such a breach. Such Seller acknowledges
        that
        (a) the business of the Company is national and international in scope and
        its
        products are marketed throughout the United States and in other countries,
        territories and possessions; (b) the Company compete with other businesses
        that
        are or could be located in any part of the United States and in other countries,
        territories and possessions; and (c) the provisions of this Section 5.8 are
        reasonable and necessary to protect the business of the Company and will
        not
        restrict the Seller from earning a livelihood.

       

      
        
          
          

        

        
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      Section
        5.9 Further
        Assurances. At
        any
        time, and from time to time, whether on or after the Closing Date, each party
        shall execute such additional instruments, documents, certifications and
        other
        assurances and take such actions as may be reasonably requested by any other
        party to confirm or perfect or otherwise to carry out the intent and purposes
        of
        this Agreement. 

       

      Section
        5.10 Transfer
        of the Shares. The
        Company hereby waives any and all rights the Company may have under all
        agreements between the Company and the Sellers or otherwise to object to
        the
        transfer to Purchaser of any Shares and hereby covenants not to consent to
        the
        transfer of any Shares to any Person other than Purchaser.

       

      Section
        5.11 Subsequent
        Actions. If
        at any
        time after the Closing the Purchaser will consider or be advised that any
        deeds,
        bills of sale, instruments of conveyance, assignments, assurances or any
        other
        actions or things are necessary or desirable (i) to vest, perfect or
        confirm ownership (of record or otherwise) in Purchaser, its right, title
        or
        interest in, to or under any or all of the Shares, (ii) to vest, perfect or
        confirm ownership (of record or otherwise) in the Company and the Subsidiaries,
        any of its rights, properties or assets or (iii) otherwise to carryout this
        Agreement, the Sellers shall execute and deliver all deeds, bills of sale,
        instruments of conveyance, powers of attorney, assignments and assurances
        and
        take and do all such other actions and things as may be requested by Purchaser
        in order to vest, perfect or confirm any and all right, title and interest
        in,
        to and under such rights, properties or assets in Purchaser or the Company
        or
        the Subsidiary or otherwise to carry out this Agreement.

       

      Section
        5.12 Efforts. Between
        the date
        of this Agreement and the Closing Date, Purchaser and Seller shall each use
        their commercially reasonable efforts to cause the transactions in Section
        3.2
        to be satisfied.

      

      Section
        5.13 Release
        by Sellers. Effective
        as of the Closing
        Date and
        subject to the Seller’s receipt of the Closing Date Consideration Shares and the
        Closing Date Consideration Shares, the Sellers hereby release and forever
        discharge the Company and the Subsidiaries and the Company’s and the
        Subsidiaries’ respective individual, joint or mutual, past, present and future
        representatives, affiliates, principals, officers, employees, insurers,
        subrogors, subrogees, licensees, predecessors, members, directors, managers,
        stockholders, limited partners, general partners, controlling persons,
        subsidiaries, successors and assigns (individually a “Releasee” and
        collectively, the “Releasees”) from any and all claims, demands, proceedings,
        causes of action, orders, obligations, contracts, agreements, debts and
        liabilities whatsoever, whether known or unknown, suspected or unsuspected,
        foreseeable and unforeseeable, liquidated and unliquidated, insured and
        uninsured, both at law and in equity, which the Seller now has, has ever
        had or
        may hereafter have against the respective Releasees arising contemporaneously
        with or prior to the Closing Date or on account of or arising out of any
        matter,
        cause or event occurring contemporaneously with or prior to the Closing Date
        (“Sellers Claims”); provided, however, that nothing contained herein shall
        operate to release any obligation of the Company and the Subsidiary arising
        under this Agreement or the Employment Agreement, dated as of the Closing
        Date,
        between the Company and the Sellers, and the transactions contemplated hereby
        and thereby. 

       

      
        
          
          

        

        
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      Section
        5.14 Acquisition
        Proposals: No Solicitation. In
        consideration of the substantial expenditure of time, effort, and expense
        undertaken by the Purchaser in connection with the negotiation and execution
        of
        this Agreement, the Sellers agree that unless this Agreement has been terminated
        pursuant to the terms hereof or by the mutual agreement of the parties, neither
        the Sellers, nor their respective Affiliates, Representatives, employees
        or
        agents (collectively, “Agents”) will, between the date hereof and the earlier of
        the termination of this Agreement and the Closing, directly or indirectly,
        (i)
        assist, solicit, encourage, negotiate, or accept any proposal (whether solicited
        or unsolicited) (an “Acquisition Proposal”), for, or execute any agreement
        relating to, a sale of all or any part of the Shares, the Company, or their
        respective assets or a sale of any equity or debt security of the Company
        or any
        merger, consolidation, combination, recapitalization, sale of any material
        assets or other transaction involving any of the Company with any other party,
        or (ii) provide any information regarding any of the Company to any third
        party
        for the purpose of soliciting, encouraging or negotiating an Acquisition
        Proposal (it being understood that nothing contained in clauses (i) or (ii)
        above shall restrict the Seller or any of the Agents from providing information
        as required by legal process). In addition, the Sellers shall promptly notify
        the Purchaser in writing of any third party’s Acquisition Proposal, or
        communication in connection with any potential Acquisition Proposal, to the
        Seller or any of the Company, together with all relevant terms and conditions
        thereof. 

       

      Section
        5.15 Termination
        of Certain Liabilities. At
        the
        Closing, the Sellers shall direct the Purchaser to apply the amount deducted
        from the Purchase Price pursuant to Section 2.2(a)(i)(D) to pay, discharge
        and
        satisfy in full the Closing Indebtedness set forth on Schedule 5.15. At the
        Closing, the Sellers shall deliver to the Purchaser evidence reasonable
        satisfactory to the Purchaser that, after the payments required under this
        Section 5.15, the Closing Indebtedness will be completely satisfied and
        discharged, and that the Company and its assets, as the case may be, have
        been
        released from any Indebtedness associated with the Closing
        Indebtedness.

      

      Section
        5.16 Affirmative
        Covenant of PAA.
        Prior
        to Closing, PAA will have provided the landlord to the Essex Facility his
        personal guaranty with respect to all of the obligations of the Company (or
        an Affiliate of the Purchaser) under the Amended Essex Sub-Lease  as
        inducement to release Twincraft as the guarantor under the sub-lease for
        the
        Essex Facility. 

       

      
        
          
          

        

        
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      ARTICLE
        VI

      TERMINATION

       

      Section
        6.1 Termination
        by the Purchaser. This
        Agreement may be terminated by the Purchaser as follows:

      

      (a) upon
        a
        material breach of any representation, warranty, covenant or agreement on
        the
        part of the Sellers set forth in this Agreement, or if any representation
        or
        warranty of the Sellers shall have become untrue in any material respect,
        in
        either case such that the conditions set forth in Section 3.2 of this Agreement
        would be incapable of being satisfied by the Seller on or prior to the Closing;
        provided, that in any case, a willful breach shall be deemed to cause such
        conditions to be incapable of being satisfied for purposes of this Section
        6.1(a), and further provided that such breach or untrue representation or
        warranty, other than a breach of Section 5.14, is not cured within ten (10)
        days
        after notice thereof; 

      

      (b) any
        legal
        proceeding is commenced or threatened by any Governmental Entity or other
        Person
        directed against the consummation of the Closing or any other transaction
        contemplated hereby, and Purchaser reasonably and in good faith deems it
        impractical or inadvisable to proceed in view of such legal proceeding or
        threat
        thereof; 

      

      (c)
         at
        any
        time after 5:00 p.m., New York time, on February 1, 2007 if the transactions
        contemplated by this Agreement have not closed by such time; or

      

      (d) at
        any
        time after 5:00 p.m., New York time, on January 3, 2007, if the Purchaser
        fails
        to have sufficient funds available to consummate the transactions contemplated
        under this Agreement on or before 5:00 p.m., New York time, January 4,
        2007.

      

      Termination
        of this Agreement pursuant to Section 6.1(d) hereof, shall not effect the
        Sellers’ rights under Section 6.6 hereof. 

       

      Section
        6.2 Termination
        by the Seller. This
        Agreement may be terminated by the Sellers as follows:

      

      (a) upon
        a
        breach of any material representation, warranty, covenant or agreement on
        the
        part of Purchaser set forth in this Agreement, or if any material representation
        or warranty of Purchaser shall have become untrue, in either case such that
        the
        conditions set forth in Section 3.3 of this Agreement would be incapable
        of
        being satisfied by Purchaser on or prior to the Closing; provided, that in
        any
        case, a willful breach shall be deemed to cause such conditions to be incapable
        of being satisfied for purposes of this Section 6.2(a), and further provided
        that such breach or untrue misrepresentation or warranty is not cured within
        ten
        (10) days after notice thereof; 

      

      (b) at
        any
        time after 5:00 p.m., New York time, on February 1, 2007 if the transactions
        contemplated by this Agreement have not closed by such time; or

      

      
        
          
          

        

        
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      (c)
         at
        any
        time after 5:00 p.m., New York time, on January 3, 2007, if the Purchaser
        fails
        to provide written evidence to the Seller Representative that sufficient
        funds
        will be available to the Purchaser to consummate the transactions contemplated
        under this Agreement on or before 5:00 p.m., New York time, January 4,
        2007.

      

      Termination
        of this Agreement pursuant to Section 6.2(c) hereof, shall not effect the
        Sellers’ rights under Section 6.6 hereof.

       

      Section
        6.3 Effect
        of Termination.
        In the
        event of termination of this Agreement as provided in Sections 6.1 and 6.2,
        this Agreement (except for the provisions of Sections 8.1 (Expenses), 8.2
        (Governing Law), and this Section 6.3, which shall continue indefinitely,
        Section 5.14 (Acquisition Proposals; No Solicitation) which shall continue
        for
        one year from the Closing Date, and Section 6.6 (Risk of Financing) which
        shall
        continue for six years from the Closing Date) shall forthwith become void
        and
        neither party shall have any further liability to the other under this
        Agreement; provided that nothing herein shall relieve any party from liability
        for fraud or willful breach of this Agreement or the transactions contemplated
        hereby. For the avoidance of doubt, although the Seller will have no further
        obligations under Section 5.14 following termination of this Agreement, Section
        5.14 shall survive termination of this Agreement for purposes of the Purchaser
        bringing any claims relating to breaches of Section 5.14 that occurred prior
        to
        the termination of this Agreement.

       

      Section
        6.4 Notice
        of Termination. A
        party
        shall provide each of the other parties with at least ten (10) days’ notice
        prior to termination under Sections 6.1(a) and (b) or 6.2(a) hereof and the
        opportunity to cure any such deficiency or, if not capable of being cured
        in
        such ten (10) day period, then to commence cure and proceed to complete same
        diligently and in any event within thirty (30) days of such notice.

       

      Section
        6.5 Waiver. At
        any
        time prior to the Closing, each of the parties hereto may (a) extend the
        time for the performance of any of the obligations or other acts of the other
        party hereto, (b) waive any inaccuracies in the representations and
        warranties contained herein or in any document delivered pursuant hereto
        or
        (c) waive compliance with any of the agreements or conditions contained
        herein. Any such extension or waiver shall be valid if set forth in an
        instrument in writing signed by the party to be bound thereby.

      

      Section
        6.6 Risk
        of Financing.
        Notwithstanding any other provision in this Agreement to the contrary, in
        the
        event that:

      

      
        	 	
                (a)

              	
                the
                  transactions contemplated under this Agreement are not consummated
                  on or
                  before January 15, 2007; and

              

      

      

      
        	 	
                (b)

              	
                the
                  failure to consummate the transactions contemplated under this
                  Agreement
                  on or before January 15, 2007 results from the Purchaser’s failure to
                  obtain sufficient financing (whether such financing is obtained
                  from CIT
                  Bank, Inc., third party investors or lenders, or a combination
                  of both
                  (any such financing is hereinafter referred to the “Financing”));
                  and

              

      

       

       

      
        
          
          

        

        
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                (c)

              	
                the
                  Purchaser’s failure to obtain the Financing is not a direct result of an
                  act of God, terrorism, war, or an unforeesable occurrence which
                  is
                  unrelated to the Financing

              

      

      

      then,
        in
        addition to the Purchaser’s right to terminate this Agreement pursuant to
        Section 6.1(c) hereof and the Sellers’ right to terminate this Agreement
        pursuant to Section 6.2(d) hereof, the Purchaser shall pay to the Sellers
        the
        sum of three hundred thousand dollars ($300,000) as liquidated damages resulting
        from such failure. Such payment shall be in lieu of the Sellers’ rights to any
        and all other damages for breach of this Agreement by the Purchaser relating
        to
        the Purchaser’s failure to obtain the Financing. If the Purchaser fails to make
        the foregoing payment to the Sellers within five (5) business days of receiving
        written demand for such payment, then notwithstanding the provisions of 8.5
        hereof, the Sellers shall have the right to seek enforcement of this Section
        6.6
        only and solely with respect to the collection of the liquidated damages
        provided for in this Section 6.6, in a Vermont court applying Vermont law
        and,
        in such event, the Purchaser irrevocably and expressly agrees to: (i) submit
        to
        the jurisdiction of the courts of the State of Vermont for the purpose of
        resolving any disputes among the parties relating to this Section 6.6; (ii)
        irrevocably waive, to the fullest extent permitted by law, any objection
        which
        it may now or hereafter have to the laying of venue of any suit, action or
        proceeding arising out of or relating to this Section 6.6, or any judgment
        entered by any court in respect hereof brought in Chittenden County, Vermont,
        and further irrevocably waive any claim that any suit, action or proceeding
        brought in Chittenden County, Vermont has been brought in an inconvenient
        forum
        and the purchasers, and (iii) pay all of the Sellers’ expenses in enforcing
        their rights under this Section 6.6 including, but not limited to, reasonable
        attorneys’ fees and costs.

      

      ARTICLE
        VII

      INDEMNIFICATION

       

      
        
          Section
            7.1 Survival
            of the Representations and Warranties. The
            representations and warranties of the Sellers and the Purchaser set forth
            in
            this Agreement shall survive the Closing Date and remain in full force
            and
            effect only until 18 months following the Closing Date; provided,
            however,
            that
            the representations and warranties set forth in Sections 4.1(c), 4.1(d),
            4.1(e),
            4.1(i), 4.1(t), 4.1(z) and 4.1(bb) shall survive the Closing Date and
            remain in
            effect until thirty days after the expiration of the applicable statute
            of
            limitations.

           

          Section
            7.2 Effects
            of Investigation. The
            right
            to indemnification, payment of Purchaser Losses or for other remedies
            based on
            any representation, warranty, covenant or obligation of the Sellers or
            the
            Company contained in or made pursuant to this Agreement shall not be
            affected by
            any investigation conducted with respect to, or any knowledge acquired
            (or
            capable of being acquired), except to the extent disclosed on a Schedule
            to this
            Agreement, at any time, whether before or after the execution
            and delivery of this Agreement or the date the Closing occurs, with respect
            to
            the accuracy or inaccuracy of or compliance with, any such representation,
            warranty, covenant or obligation. The waiver of any condition to the
            obligation
            of the Purchaser to consummate the transactions contemplated by this
            Agreement,
            where such condition is based on the accuracy of any representation or
            warranty,
            or on the performance of or compliance with any covenant or obligation,
            shall
            not affect the right to indemnification, payment of Purchaser Losses,
            or other
            remedy based on such representation, warranty, covenant or
            obligation.

        

      

      

      
        
          
          

        

        
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      Section
        7.3 Indemnification
        Generally.
        

       

      
        
          (a)
            By
            the
            Sellers. The
            Sellers and, only in the event that the acquisition of the Shares contemplated
            by this Agreement is not consummated, the Company agree to be responsible
            for
            and shall pay and indemnify and hold harmless Purchaser and its Representatives
            (the “Purchaser Indemnitees”) from, against and in respect of, the amount of any
            and all liabilities, damages, claims, deficiencies, fines, assessments,
            losses,
            Taxes, penalties, interest (collectively, “Losses”), costs and expenses,
            including, without limitation, reasonable fees and disbursements of counsel
            arising from, in connection with, or incident to (i) any breach or violation
            of
            any of the covenants or agreements of the Sellers contained in this Agreement
            or
            any agreement, document or other writing referred to herein and delivered
            pursuant hereto, other than any employment agreement contemplated hereby;
            (ii)
            any breach or violation of any representation or warranty of the Sellers
            contained in this Agreement or any agreement, document or other writing
            referred
            to herein and delivered pursuant hereto, other than any employment agreement
            contemplated hereby; (iii) any and all Taxes for any unaccrued or unreported
            Tax
            liabilities with respect either of the Company or any Subsidiary for
            all periods
            prior to or including the Closing Date; (iv) (A)
            any
            Employee Benefit Plan (except to the extent that such Liability has been
            accrued
            on the Financial Statements) or (B)
            the
            Company’s or any Subsidiary’s failure to fully perform under and comply with the
            requirements of ERISA or applicable law with respect to any Employee
            Benefit
            Plan of the Company, in the case of each of (A)
            and
            (B),
            in
            respect of all periods prior to and including the Closing Date; (v) any
            liability resulting from any Litigation with respect to acts, omissions,
            facts
            or circumstances arising on or prior to the Closing Date involving the
            Sellers,
            the Shares, or the Company, regardless of whether or not such litigation
            was
            disclosed by the Company or any of the Sellers on Schedule
            4.1(m);
            (vi)
            any environmental claims or liabilities arising out of or connected with,
            directly or indirectly, the ownership, lease or use, on or prior to the
            Closing
            Date, by the Company’s leased property set forth on Schedule
            4.1(o);
            and
            (vii) any and all actions, suits, proceedings, demands, assessments or
            judgments, costs and expenses incidental to any of the foregoing. 

           

        

      

      
        
          (b)
            By
            the
            Purchaser. The
            Purchaser agrees to indemnify and hold harmless the Sellers from, against
            and in
            respect of, the full amount of any and all Losses, costs and expenses,
            including, without limitation, reasonable fees and disbursements of counsel
            arising from, in connection with, or incident to (i) any breach or violation
            of
            any of the representations, warranties, covenants or agreements of Purchaser
            contained in this Agreement or any agreement, document or other writing
            referred
            to herein and delivered pursuant hereto, other than any employment agreement
            contemplated hereby; and (ii) any and all actions, suits, proceedings,
            demands,
            assessments or judgments, costs and expenses incidental to any of
            the
            foregoing.

           

        

      

      
        
          (c)
            Indemnity
            Procedure. A
            party
            or parties hereto agreeing to be responsible for or to indemnify against
            any
            matter pursuant to this Agreement is referred to herein as the “Indemnifying
            Party” and the other party or parties claiming indemnity is referred to as the
            “Indemnified Party”.

        

      

      

      
        
          
          

        

        
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      (i) An
        Indemnified Party under this Agreement shall, with respect to claims asserted
        against such party by any third party, give prompt written notice (including
        a
        copy of such claim if such claim is in writing) to the Indemnifying Party
        of any
        liability which might give rise to a claim for indemnity under this Agreement
        (“Claim Notice”), provided, however, that any failure to give such notice will
        not waive any rights of the Indemnified Party, except to the extent the rights
        of the Indemnifying Party are materially prejudiced.

       

      (ii) Subject
        to Section 7.3(c)(iii), the Indemnified Party shall have the right to conduct
        and control, through counsel of its choosing, the defense, compromise or
        settlement of any third Person claim, action or suit against such Indemnified
        Party as to which indemnification will be sought by any Indemnified Party
        from
        any Indemnifying Party hereunder, and in any such case the Indemnifying Party
        shall reasonably cooperate in connection therewith and shall furnish such
        records, information and testimony and attend such conferences, discovery
        proceedings, hearings, trials and appeals as may be reasonably requested
        by the
        Indemnified Party in connection therewith; provided that
        the
        Indemnifying Party may participate, through counsel chosen by it and at its
        own
        expense, in the defense of any such claim, action or suit as to which the
        Indemnified Party has so elected to conduct and control the defense thereof;
        and
provided,
        further,
        that
        the Indemnified Party shall not, without the written consent of the Indemnifying
        Party (which written consent shall not be unreasonably withheld or delayed),
        pay, compromise or settle any such claim, action or suit, except that no
        such
        consent shall be required if, following a written request from the Indemnified
        Party, the Indemnifying Party shall fail, within 14 days after the making
        of
        such request, to acknowledge and agree in writing that, if such claim, action
        or
        suit shall be adversely determined, such Indemnifying Party has an obligation
        to
        provide indemnification hereunder to such Indemnified Party.

      

      
        
          
          

        

        
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      (iii) Notwithstanding
        Section 7.3(c)(ii), if
        any
        third Person claim, action or suit against any Indemnified Party does not
        (i) seek an injunction or other equitable relief against the Indemnified
        Party; (ii) involve criminal proceedings against the Indemnified Party;
        (iii) involve an amount asserted in good faith by a Person entitled to
        indemnification under Sections 7.3(a) or (b), as applicable, with respect
        to
        such claim, when aggregate with all other amounts asserted in good faith
        by all
        Persons entitled to indemnification under Sections 7.3(a) or (b), as applicable,
        pursuant to all other then unresolved Claim Notices and Indemnity Notices,
        exceeds Three Hundred Fifty Thousand and 00/100 Dollars ($350,000);
        (iv) involve a claim that could result in the granting of an equitable
        remedy that would reasonably be expected to have a Material Adverse Effect
        on
        the Company; (v) involve an instance in which the applicable claim is
        against, or if the defendants in any Litigation relating to the applicable
        claim
        include, both the Indemnified Party and the Indemnifying Party and the
        Indemnified Party reasonably concludes in good faith that there are defenses
        available to it that are different or additional to those available to the
        Indemnifying Party; or (vi) involve a conflict of interest exists between
        the Indemnifying
        Party and the Indemnified Party as to such claim; then with respect to each
        such
        claim, action or suit the Indemnifying Party shall have the right to conduct
        and
        control, through counsel of its choosing, the defense, compromise or settlement
        of any such third Person claim, action or suit against such Indemnified Party
        as
        to which indemnification will be sought by any Indemnified Party from any
        Indemnifying Party hereunder, provided that
        the
        Indemnifying Party has acknowledged and agreed in writing that, if the same
        is
        adversely determined, the Indemnifying Party has an obligation to provide
        indemnification to the Indemnified Party in respect thereof, and for only
        so
        long as the Indemnifying Party is diligently pursuing the defense of such
        claim,
        action or suit, and, provided,
        further,
        that in
        any such case the Indemnified Party shall reasonably cooperate in connection
        therewith and shall furnish such records, information and testimony and attend
        such conferences, discovery proceedings, hearings, trials and appeals as
        may be
        reasonably requested by the Indemnifying Party in connection therewith;
provided,
        that
        the
        Indemnified Party may participate, through counsel chosen by it and at its
        own
        expense, in the defense of any such claim, action or suit as to which the
        Indemnifying Party has so elected to conduct and control the defense thereof.
        So
        long as the Indemnifying Party is diligently contesting any such claim in
        good
        faith, the Indemnified Party may pay, settle, or compromise such claim only
        at
        its own expense and the Indemnifying Party will not be responsible for the
        fees
        of separate legal counsel to the Indemnified Party, unless the named parties
        to
        any proceeding include both parties and representation of both parties by
        the
        same counsel would be a conflict of interest for such counsel. If the
        Indemnifying Party does not make such election, or having made such election
        does not, in the good faith reasonable opinion of the Indemnified Party,
        proceed
        diligently to defend such claim, then the Indemnified Party may (after written
        notice to the Indemnifying Party), at the expense of the Indemnifying Party,
        elect to take over the defense of and proceed to handle such claim in its
        discretion and the Indemnifying Party shall be bound by any defense or
        settlement that the Indemnified Party may make in good faith with respect
        to
        such claim. In connection therewith, the Indemnifying Party will fully cooperate
        with the Indemnified Party should the Indemnified Party elect to take over
        the
        defense of any such claim. Notwithstanding the foregoing, the Indemnified
        Party
        shall have the right to pay, settle or compromise any such claim, action
        or
        suit, provided that
        in such
        event the Indemnified Party shall waive any right to indemnity therefor
        hereunder unless the Indemnified Party shall have sought the consent of the
        Indemnifying Party to such payment, settlement or compromise and such consent
        was unreasonably withheld or delayed, in which event no claim for indemnity
        therefor hereunder shall be waived.

       

      
        
          
          

        

        
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      (iv) The
        parties agree to cooperate in defending such third party claims and the
        Indemnified Party shall provide such cooperation and such access to its books,
        records and properties as the Indemnifying Party shall reasonably request
        with
        respect to any matter for which indemnification is sought hereunder; and
        the
        parties hereto agree to cooperate with each other in order to ensure the
        proper
        and adequate defense thereof.

      

      (v) With
        regard to claims of third parties for which indemnification is payable
        hereunder, such indemnification shall be paid by the Indemnifying Party upon
        the
        earlier to occur of: (i) the entry of a judgment against the Indemnified
        Party
        and the expiration of any applicable appeal period, or if earlier, five (5)
        days
        prior to the date that the judgment creditor has the right to execute the
        judgment; (ii) the entry of an unappealable judgment or final appellate decision
        against the Indemnified Party; or (iii) a settlement of the claim.
        Notwithstanding the foregoing, provided that there is no good faith dispute
        as
        to the applicability of indemnification, the reasonable expenses of counsel
        to
        the Indemnified Party shall be reimbursed on a current basis by the Indemnifying
        Party if such expenses are a liability of the Indemnifying Party. With regard
        to
        other claims for which indemnification is payable hereunder, such
        indemnification shall be paid promptly by the Indemnifying Party upon demand
        by
        the Indemnified Party. 

       

      (vi) With
        regard to
        claims
        for which indemnification
        may be
        payable hereunder which do not involve a claim being sought to be collected
        by a
        third party, the Indemnified Party shall with reasonable promptness notify
        the
        Indemnifying Party of such claim, specifying the nature of such claim and
        the
        amount or the estimated amount thereof to the extent then feasible, provided,
        however, that any failure to give such notice will not waive any rights of
        the
        Indemnified Party, except to the extent the rights of the Indemnifying Party
        are
        materially prejudiced. If the Indemnifying Party either accepts such claim
        or
        does not notify the Indemnified Party within twenty days after the date of
        receipt of the claim notice that the Indemnifying Party disputes such claim,
        with a statement of the basis of such position, the amount of such claim
        shall
        be conclusively deemed a liability of the Indemnifying Party hereunder and
        such
        indemnification claim shall be paid promptly by the Indemnifying Party. If
        an
        objection is made in writing in accordance with this Section 7.3(c)(vi),
        the
        Indemnified Party shall respond in a written statement to the objection within
        twenty days and, for forty days thereafter, attempt in good faith to agree
        upon
        the rights of the respective parties with respect to such claim (and, if
        the
        parties should so agree, a memorandum setting forth such agreement shall
        be
        prepared and signed by both parties).

       

      
        
          
          

        

        
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          (d)
            Limitations
            on Indemnification. 

           

        

      

      (i)
         Anything
        in this Agreement to the contrary notwithstanding, no indemnification payment
        shall be made to the Purchaser Indemnitees arising from breaches of
        representations or warranties of the Seller under Section 7.3(a)(ii), until
        the
        Purchaser Losses, costs and expenses aggregate at least $225,000 (the “Basket
        Amount”), at which time the Purchaser Indemnitees shall be indemnified to the
        extent any Purchaser Losses, costs and expenses with respect to such matter
        exists but only for the amount by which all Purchaser Losses, costs and expenses
        exceed the Basket Amount, provided,
        that
        such limitation shall not apply to Purchaser Losses arising from breaches
        of
        representations or warranties made in the indemnification provisions set
        forth
        in Section 7.3 with respect to Sections 4.1(c), 4.1(d), 4.1(e), 4.1(i), 4.1(t),
        4.1(z), 4.1(bb), 5.8, or 8.1 or with respect to a claim of fraud or willful
        misconduct by the Seller. 

      

      (ii) In
        no
        event will any Purchaser Indemnitee be entitled to indemnification hereunder
        for
        the amount of any Purchaser Losses for which the Purchaser has already been
        compensated or made whole in the form of a reduction to the Purchase Price
        equal
        to such amount with respect to any such Purchaser Loss.

      

      (iii) The
        aggregate liability of the Sellers to Purchaser Indemnitees for indemnification
        arising
        from breaches of representations or warranties of the Seller under Section
        7.3(a)(ii) shall not exceed $9,140,220, except that there shall be no limit
        on
        the Seller’s aggregate liability to Purchaser Indemnitees pursuant to this
        Article VI for any breach of Sections 4.1(c), 4.1(d), 4.1(e), 4.1(i), 4.1(t),
        4.1(z), 4.1(bb), 5.8 or 8.1, or with respect to a claim of fraud or willful
        misconduct by the Seller. 

      

      (iv) In
        addition, the indemnification obligations of each party under this Section
        7.3
        relating to breaches of such party’s representations and warranties shall
        terminate on the date on which the survivability of the representations and
        warranties expires as set forth in Section 7.1 hereof.

      

      (v) Notwithstanding
        any provision contained in this Agreement to the contrary, in not event shall
        either ALL or JMC be liable for more than their respective Pro Rata Ownership
        Percentage of Purchaser’s Losses as a result of the indemnification obligations
        under this Section 7.3.

       

      
        
          
          

        

        
          64

          
            

          

        

        
          
          

        

      

      
        
          (e)
            Right
            to Set-off. In
            addition to any other rights the Purchaser may have, should the Sellers
            be
            liable for any indemnification payments under this Article VII to the
            Purchaser
            Indemnitees, or for any payments owing pursuant to Section 2.7 (Working
            Capital
            Adjustment), the Purchaser may in good faith, and upon
            notice to the Sellers specifying in reasonable detail the basis therefor
            and
            subject (in the case of indemnification payments) to the limitations
            in Section
            7.3(c),
            set-off
            and deduct such amounts (the “Right of Set-off”) as follows (i) against the
            Indemnification Escrow Amount with respect to claims for any indemnification
            payments under this Article VII to the Purchaser Indemnitees, in which
            case such
            amounts shall be released from the Indemnification Escrow Fund to the
            Purchaser
            in accordance with the terms of the Escrow Agreement, (ii) against the
            Purchase
            Price Adjustment Escrow Amount with respect to claims for any payments
            owing
            pursuant to Section 2.7 (Working Capital Adjustment), in which case such
            amounts
            shall be released from the Purchase Price Adjustment Escrow Fund to the
            Purchaser in accordance with the terms of the Escrow Agreement, or (iii)
            from
            any payments or obligations, it may have to the Seller for any of the
            2007
            Deferred Consideration Amount or 2008 Deferred Consideration Amount.
            If the
            Purchaser elects to set-off against any Deferred Consideration Shares
            to be
            issued to the Sellers, such shares shall be valued using the average
            closing
            price for shares of Purchaser Common Stock as quoted
            on
            the NASDAQ Global Market, or any other exchange on which the Purchaser
            Common
            Stock is then traded or quoted, for the twenty days on which such stock
            is
            actually traded prior to the date on which such indemnification claim
            is payable
            by the Sellers.
            For the
            avoidance of doubt, the Purchaser may only set-off and deduct any amounts
            owing
            in respect of claims for any payments owing pursuant to Section 2.7 (Working
            Capital Adjustment) against the Purchase Price Adjustment Escrow Fund.
            The
            Purchaser hereby acknowledges and agrees that in the event it has any
            claims
            against the Sellers for any indemnification payments under this Article
            VII, it
            shall first seek to satisfy such claims against the Indemnification Escrow
            Amount.

           

        

      

      
        
          (f)
            Treatment
            of Indemnity Payments. It
            is the
            intent of the parties that amounts paid under this Article VII shall
            represent
            an adjustment to the Purchase Price and the parties will report such
            payments
            consistent with such intent. 

        

      

       

      Section
        7.4 Obligation. Subject
        to the limitations set forth in Section 7.3, all representations, warranties,
        covenants, agreements, and liabilities of the Sellers under this Agreement
        shall
        be the obligation of the Sellers and are only for the benefit of Purchaser
        and
        its successors. None of the provisions of this Agreement shall give rise
        to any
        right of action by or for the Sellers, and the Sellers shall not have any
        rights
        against the Company if a remedy is sought or obtained against the Sellers
        because the Company breaches any representation, warranty, covenant or agreement
        set forth herein.

      

      Section
        7.5 Sellers’
        Representative.
        

      

      (a) Following
        the Closing Date each of the Sellers, and the Sellers’ Representative agrees
        that the Sellers’ Representative shall exercise the rights and fulfill the
        obligations of and otherwise have the authority to act for and on behalf
        of the
        Sellers, including, without limitation, to give and receive notices and
        communications, to act on behalf of the Sellers with respect to any matters
        arising under this Agreement or the Escrow Agreement, including, without
        limitation, to negotiate, enter into settlements and compromises of, and
        commence, prosecute, participate in, settle, dismiss or otherwise terminate,
        as
        applicable, lawsuits and claims, mediation and arbitration proceedings
        including, without limitation, under Article II and VII of this Agreement,
        and
        to comply with orders and awards of courts, mediators and arbitrators with
        respect to such suits, claims or proceedings, and to take all actions necessary
        or appropriate in the judgment of the Sellers’ Representative for the
        accomplishment of the foregoing. Such agency, may be changed by the Sellers
        from
        time to time upon not less than thirty (30) days prior written notice to
        Purchaser; provided,
        however,
        that
        the Sellers’ Representative may not be removed unless the Sellers agree to such
        removal and to the identity of the substituted Sellers’ Representative.

       

      
        
          
          

        

        
          65

          
            

          

        

        
          
          

        

      

      (b) A
        decision, act, consent or instruction of the Sellers’ Representative shall
        constitute a decision, act, consent or instruction from all of the Sellers
        and
        shall be final, binding and conclusive upon each of the Sellers. The Purchaser
        and the Company may rely upon any such decision, act, consent or instruction
        of
        the Sellers’ Representative as being the decision, act, consent or instruction
        of each member of the Sellers. The Purchaser and the Company shall be relieved
        from any liability to any person for any acts done by them in accordance
        with
        such decision, act, consent or instruction of the Sellers’ Representative. In
        furtherance of the foregoing, any reference to a power of the Sellers under
        this
        Agreement, to be exercised or otherwise taken, shall be a power vested in
        the
        Sellers’ Representative. The Sellers acknowledge and agree that the Sellers
        shall only be able to take action permitted hereunder through the Sellers’
Representative and that the Sellers’ Representative has agreed to act as a
        sellers representative. The Sellers’ Representative agrees that it shall not be
        entitled to any fee or other compensation from the Company or the Purchaser
        for
        its services hereunder. Each of the Sellers acknowledges and agrees that
        the
        Purchaser shall be entitled to treat each of them for all purposes under
        this
        Agreement and the Escrow Agreement as if there were no Sellers’ Representative
        appointed to act on their behalf in the event, in the sole and absolute
        discretion of the Purchaser, the Sellers’ Representative does not fulfill any of
        its obligations hereunder or there is any dispute as to its authority hereunder.
        

       

      ARTICLE
        VIII

      MISCELLANEOUS
        PROVISIONS

       

      
        
          Section
            8.1 Expenses. Except
            as
            otherwise expressly provided for in this Agreement, Purchaser will bear
            its
            expenses incurred in connection with the preparation, execution, and
            performance
            of this Agreement, and the Sellers will bear their expenses and the expenses
            of
            the Company and the Subsidiaries incurred prior to and after the Closing
            in
            connection with the preparation, execution, and performance of this
            Agreement.

           

        

      

      Section
        8.2 Governing
        Law. This
        Agreement shall be governed by, and construed in accordance with, the laws
        of
        the State of New York applicable to agreements to be fully performed within
        such
        State.

       

      Section
        8.3 Notices. All
        notices and other communications required or permitted hereunder shall be
        in
        writing (including telecopier communication) and be delivered by personally
        or
        by overnight courier (with written receipt requested) or telecopied (with
        confirmed receipt), to the following addresses (or such other address as
        any
        party shall have designated from time to time by notice to the other
        party):

      

      If
        to the
        Company to:

      

      Twincraft,
        Inc.

      2
        Tigon
        Street

      Winooski,
        VT 05404

      Attn:
        Peter A. Asch

      Fax:
        802
        655-6475

       

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

        

      

      with
        a
        copy to:

      

      If
        to the
        Sellers, then to the Sellers’ Representative:

      Peter
        A.
        Asch

      450
        South
        Willard St.

      Burlington,
        VT 05401

      

      Fax:
        802
        655-6475

       

      in
        each
        case with a copy to:

       

      Lisman
        Webster & Leckerling P.C.

      84
        Pine
        Street

      Burlington,
        VT 05401

      Attention:
        Richard W. Kozlowski

      Fax:
        (802) 864-3629

      

      If
        to the
        Purchaser, to:

      

      Langer,
        Inc.

      450
        Commack Road

      Deer
        Park, New York 11729

      Fax:
        631-667-1203

      Attention:
        Mr. Gray Hudkins, Chief Executive Officer

      

      with
        a
        copy to: 

       

      Kane
        Kessler, P.C.

      1350
        Avenue of the Americas, 26th Floor

      New
        York,
        New York 10019

      Fax:
        212-245-3009

      Attention:
        Robert L. Lawrence, Esq.

      

      All
        such
        notices and other communications shall be effective upon written confirmation
        of
        delivery or if sent by facsimile, upon confirmed receipt of
        transmission.

       

      Section
        8.4 No
        Waiver of Remedies, etc. No
        failure on the part of any party to exercise, and no delay of any party in
        exercising, any right or remedy available hereunder or by law shall operate
        as a
        waiver thereof; nor shall any single or partial exercise of any such right
        or
        remedy by any party preclude any other or further exercise thereof or the
        exercise of any other right by such party. The remedies herein provided are
        cumulative and not exclusive of any remedies provided by law.

       

      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

      Section
        8.5 Injunctive
        Relief; Jurisdiction and Venue. The
        parties agree that irreparable damage would occur in the event that any of
        the
        provisions of this Agreement were not performed in accordance with their
        specific terms or were otherwise breached. It is accordingly agreed that
        the
        parties shall be entitled to an injunction or injunctions to prevent breaches
        of
        this Agreement and to enforce specifically the terms and provisions of this
        Agreement. The parties further agree: (a) that this Agreement shall be subject
        to the exclusive jurisdiction of the courts of New York County, New York,
        with
        the exceptions of the matters in Sections 2.3, 2.4 and 2.7, which are required
        to be resolved by the parties in the manner prescribed by Section 2.5; (b)
        that
        any breach of any term or condition of this Agreement shall be deemed to
        be a
        breach occurring in the State of New York by virtue of a failure to perform
        an
        act required to be performed in the State of New York and irrevocably and
        expressly agree to submit to the jurisdiction of the courts of the State
        of New
        York for the purpose of resolving any disputes among the parties relating
        to
        this Agreement or the transactions contemplated hereby; and (c) to irrevocably
        waive, to the fullest extent permitted by law, any objection which they may
        now
        or hereafter have to the laying of venue of any suit, action or proceeding
        arising out of or relating to this Agreement, or any judgment entered by
        any
        court in respect hereof brought in New York County, New York, and further
        irrevocably waive any claim that any suit, action or proceeding brought in
        New
        York County, New York has been brought in an inconvenient forum.

       

      Section
        8.6 Counterparts. This
        Agreement may be executed in one or more counterparts, each of which when
        so
        executed shall be deemed an original of this Agreement and all of which together
        shall constitute one and the same agreement. Delivery of an executed counterpart
        of a signature page to this Agreement by telecopier shall be effective as
        delivery of a manually executed counterpart of this Agreement, and delivery
        by
        telecopier of an executed counterpart of any amendment or waiver of any
        provision of this Agreement to be executed and delivered hereunder shall
        be
        effective as delivery of a manually executed counterpart thereof, provided,
        however, that in each instance an original executed counterpart shall be
        promptly delivered to the other parties by hand or overnight
        courier.

       

      Section
        8.7 Section
        and Other Headings. The
        sections and other headings contained in this Agreement are for reference
        purposes only and shall not define, limit or extend the meaning or
        interpretation of this Agreement.

       

      Section
        8.8 Entire
        Agreement; Incorporation by Reference. All
        Schedules and Exhibits attached hereto and all certificates, documents and
        other
        instruments contemplated to be delivered hereunder are hereby expressly made
        a
        part of this Agreement as fully as though set forth herein, and all references
        to this Agreement herein or in any of such writings shall be deemed to refer
        to
        and include all of such writings. Except as set forth in Section 5.7, this
        Agreement contains the entire agreement between the parties with respect
        to the
        subject matter hereof and supersedes all prior agreements and understandings,
        both written and oral, among the parties with respect to the subject matter
        hereof.

       

      Section
        8.9 Binding
        Effect. This
        Agreement shall inure to the benefit of and be binding upon the parties and
        their respective heirs, executors, personal representatives, successors and
        permitted assigns. Nothing in this Agreement, express or implied, is intended
        to
        confer on any Person other than the parties, or their respective successors
        or
        permitted assigns, any rights, remedies, obligations or liabilities under
        or by
        reason of this Agreement.

       

      Section
        8.10 Amendment
        or Modification. This
        Agreement may not be amended, supplemented or otherwise modified by the Parties
        in any manner, except by an instrument in writing signed by each of the Seller
        and an authorized officer of Purchaser.

       

      
        
          
          

        

        
          68

          
            

          

        

        
          
          

        

      

      Section
        8.11 Waiver. The
        failure of any party to enforce at any time any of the provisions of this
        Agreement shall in no way be construed to be a waiver of any such provision,
        nor
        in any way to affect the validity of this Agreement or any part thereof or
        the
        right of any party thereafter to enforce each and every such provision, and
        the
        single or partial exercise of any right hereunder by any party shall not
        preclude any other or further exercise of such right or any other right by
        such
        party or the other party.

       

      Section
        8.12 Severability. If
        any
        provision of this Agreement shall be determined by a court pursuant to Section
        7.5 of this Agreement to be invalid or unenforceable in any jurisdiction,
        such
        determination shall not affect the validity or enforceability of the remaining
        provisions of this Agreement in such jurisdiction. If any provision of this
        Agreement, or the application thereof to any Person or entity or any
        circumstance, is found to be invalid or unenforceable in any jurisdiction,
        (a) a
        suitable and equitable provision shall be substituted therefore in order
        to
        carry out, so far as may be valid or enforceable, the unenforceable provision
        and (b) the remainder of this Agreement and the application of such provision
        to
        other Persons, entities or circumstances shall not be affected by such
        invalidity or unenforceability, nor shall such invalidity or unenforceability
        affect the validity or enforceability of such provision, or the application
        thereof, in any other jurisdiction. 

       

      Section
        8.13 Assignment. This
        Agreement may not be assigned by any party without the written consent of
        the
        other party; provided, that Purchaser may assign this Agreement to a Company,
        partnership, or limited liability company of which Purchaser maintains majority
        control.

       

      Section
        8.14 Publicity. No
        public
        announcement or other publicity regarding this Agreement or the transactions
        contemplated hereby shall be made prior to or after the date hereof without
        the
        prior written consent of the Purchaser and the Seller as to form, content,
        timing and manner of distribution. Notwithstanding the foregoing, nothing
        in
        this Agreement shall preclude any party or its affiliates from making any
        public
        announcement or filing pursuant to any federal or state securities laws or
        stock
        exchange rules.

      

      [Signature
        Page Follows]

      

      

      
        
          
          

        

        
          69

          
            

          

        

        
          
          

        

      

      

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

      

      

      
        	
                SELLERS:

              	
                /s/
                  Peter A. Asch

              
	
              	
                Peter
                  A. Asch

              
	 	 
	 	 
	 	
                /s/
                  Richard Asch

              
	 	
                Richard
                  D. Asch

              
	 	 
	 	 
	 	
                 /s/
                  A. Lawrence Litke

              
	 	
                A.
                  Lawrence Litke

              
	 	 
	 	 
	 	
                /s/
                  Joseph M. Candido

              
	 	
                Joseph
                  M. Candido

              
	 	 
	 	 
	 	 
	
                PURCHASER:

              	
                By:
                  /s/ 
                  W. Gray Hudkins

              
	 	
                Name:
                  W. Gray Hudkins

              
	 	
                Title:
                  Chief Executive Officer

              
	 	 
	 	 
	
                Accepted
                  and Agreed to Solely 

              	 
	
                with
                  respect to Section 7.3(a):

              	 
	 	 
	
                COMPANY:

              	
                TWINCRAFT,
                  INC.

              
	 	 
	 	 
	 	
                By:
                  /s/
                  Peter A. Asch

              
	 	
                Name:
                  

              
	 	
                Title:
                  

              
	 	 
	
                Accepted
                  and Agreed to Solely 

              	 
	
                with
                  respect to Section 7.5:

              	 
	 	 
	
                SELLERS’
                  REPRESENTATIVE:

              	 
	 	 
	 	 
	
                /s/
                  Peter A. Asch

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