Document:

<PAGE>   1
                                                                   EXHIBIT 10.23

                              DATED                                   1997
                              --------------------------------------------

              P.N. KING, D.W. BYATT, A.J. PINKNEY AND J BYATT (1)

                            GENOMIC SOLUTIONS, INC.           (2)

                 ----------------------------------------------

                                    AGREEMENT
                 for the sale and purchase of the entire issued
                         share capital of PBA TECHNOLOGY
                                     LIMITED

                 ----------------------------------------------

                                   Wragge & Co
                                   Birmingham

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                                    CONTENTS
                                    --------
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CLAUSE                                             HEADING                                          PAGE

<S>                                                                                                    <C>
 1 Definitions and interpretation ......................................................................1

 2 Sale of the Sale Shares.............................................................................10

 3 Consideration ......................................................................................11

 4 Rescission..........................................................................................11

 5 Escrow Completion and Completion....................................................................11

 6 Post-Completion matters.............................................................................14

 7 Executive Shareholders' Representations and warranties..............................................15

 8 Purchaser's Representations and Warranties .........................................................19

 9 Restrictive covenants ..............................................................................24

10 Pre-Completion matters (including condition precedent and related undertaking) .....................26

11 Continuing effects of this Agreement ...............................................................27

12 Announcements.......................................................................................27

13 Initial Public Offering ............................................................................27

14 Releases, waivers etc., by the parties..............................................................27

15 Notices.............................................................................................28

16 Time................................................................................................29

17 Entire Agreement....................................................................................29

18 Alterations.........................................................................................29

19 Severability........................................................................................30

20 Counterparts........................................................................................30

21 Payment of costs....................................................................................30

22 Successors and Assigns .............................................................................30

23 Applicable law and submission to jurisdiction ......................................................31

Schedule I..The Vendors................................................................................32
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<TABLE>

<S>                                                                                                  <C>
Schedule 2..The Company ...............................................................................35

Schedule 3..The Purchaser..............................................................................36
         Part A Genomic Solutions Inc . ...............................................................36
         Part B B.I. Systems Corporation ..............................................................37

Schedule 4 ..
         Part A - The Property ........................................................................38
         Part B - The Purchaser's Properties ..........................................................39

Schedule 5..
         Matters represented and warranted ............................................................40
         Part A - General Warranties...................................................................41
         Part B - Taxation Warranties..................................................................54

Schedule 6.. Conditions, related undertaking and pre-Completion restrictions...........................62

Schedule 7..
         Part A - Limitation on Warranties ............................................................68
         Part B - Limitation on Purchaser's Warranties ................................................69

Schedule 8.. Purchaser's Warranties....................................................................71
         Part A - General Warranties ..................................................................71
         Part B - Purchaser's Taxation Warranties......................................................78
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AGREED FORM DOCUMENTS
DOCUMENT                                                           Clause
<S>                                                                <C>
Management Accounts                                                   1
Opinion                                                               5
Waiver of pre-emption rights                                          5
Vendors' Powers of Attorney                                           5
Investor Agreement                                                    5
</TABLE>

<PAGE>   4

THIS AGREEMENT is dated                                1997 and is made BETWEEN:

(1)  DAVID WILLIAM BYATT of 26 The Paddock, Eaton Ford, St. Neots,
     Cambridgeshire, PE19 5SA, ARTHUR JOHN PINKNEY of 7 Burnt Close, St. Neots,
     Cambridgeshire PE19 2LZ, PAUL NICHOLAS KING of The Homestead, Church Road,
     Glatton, Huntingdon, Cambridgeshire PE19 5RR and JACQUELINE BYATT of 26 The
     Paddock, Eaton Ford, St Neots, Cambridgeshire, PE19 5SA (together the
     "Executive Shareholders"); and

(2)  GENOMIC SOLUTIONS, INC., a Delaware corporation whose principal place of
     business is at 525 Avis Drive, Suite 10, Ann Arbor, Michigan 48108, United
     States of America ("THE PURCHASER", save that where the context permits
     "THE PURCHASER" shall be deemed to include B.I. Systems Corporation and its
     subsidiaries).

WHEREAS

(A)  The Company (as defined below) is a private company limited by shares.

(B)  The Executive Shareholders are directors and shareholders of the Company
     and represent the Vendors (as defined below).

(C)  The Vendors have agreed to sell and the Purchaser has agreed to purchase
     the Sale Shares (as defined below) upon the terms and subject to the
     conditions of this Agreement.

(D)  Jacqueline Byatt has agreed to enter into this Agreement at the request of
     the Purchaser in order to provide additional comfort to the Purchaser in
     relation to the giving of the Warranties and for that purpose only and in
     that context alone shall be deemed to be included in the definition of
     "Executive Shareholders".

NOW IT IS HEREBY AGREED as follows:

I    DEFINITIONS AND INTERPRETATION

     In this Agreement unless the context otherwise requires:

1.1  "THE ACCOUNTS" means the Company's audited accounts, prepared in compliance
     with section 226 CA 1985 for the financial year ended on the Accounts Date,
     including the notes to those accounts and the associated directors' and
     auditors' reports;

     "THE ACCOUNTS DATE" means 31st May 1997;

     "ACCOUNTS RELIEF" means any Relief the availability of which has been
     shown as an asset in the Accounts or the Purchaser's Accounts or which has
     been taken into account in computing (and so reducing) any provision for
     deferred taxation which appears in the Accounts or the Purchaser's Accounts
     or which has resulted in no provision for deferred taxation being shown in
     the Accounts or the Purchaser's Accounts;

                                       1
<PAGE>   5

"BUSINESS DAY" means a day (excluding Saturdays and Sundays) on which clearing
banks are ordinarily open for the transaction of normal banking business in the
City of London;

"CA 1985" means the Companies Act 1985;

"THE COMPANY" means PBA Technology Limited (No. 2315315) whose registered office
is at Unit 3, Forge Close, Little End Road, Eaton Socon, St Neots,
Cambridgeshire, PE19 3TP;

"COMPLETION" means completion of the sale and purchase of the Sale Shares by
the performance by the parties of their respective obligations under clause 5;

"THE COMPLETION DATE" means the date upon which the final Condition is fulfilled
or waived (not being after 31st January 1998);

"THE CONDITIONS" means the conditions specified in part A of schedule 6;

"THE CONFIDENTIAL INFORMATION" means trade secrets and information equivalent to
them (including but not limited to formulae, processes, methods, knowledge and
Know-how) in connection with the products manufactured, produced, distributed
and sold and the services supplied by the Company and the customers and
suppliers of the Company and which are for the time being confidential to the
Company;

"THE CONSIDERATION SECURITIES" means the 1,500,000 (one million five hundred
thousand) shares of common stock of the Purchaser valued at $1.75 per share;

"THE DISCLOSURE LETTER" means the letter of the same date as this Agreement from
the Vendors' Solicitors to the Purchasers Solicitors disclosing certain matters
in relation to the Warranties which has been delivered to the Purchaser's
Solicitors prior to the execution of this Agreement;

"ENVIRONMENT" means the environment as defined in section 1(2) of the
Environmental Protection Act 1990 and includes ambient air, land surface or
subsurface strata, any surface water (whether inland or maritime) and any ground
water;

"ENVIRONMENTAL CLAIM" means any claim, notice of violation, prosecution, demand,
action, official warning, abatement or other order or notice (conditional or
otherwise) relating to any Environmental Matters and any other notification or
order requiring compliance with the terms of any Environmental Licence or
Environmental Law;

"ENVIRONMENTAL DAMAGE" means any pollution, contamination, degradation, damage
or injury caused by, related to or arising from or in connection with the
presence, generation, use, handling, processing, treatment, storage,
transportation, disposal or Release of any Hazardous Substance;

"ENVIRONMENTAL LAWS" means any Official Requirements, relating to the
protection of the Environment or the control or prevention or remedying of
Environmental Damage whether in the United Kingdom or in the United States of
America;

                                       2
<PAGE>   6

"ENVIRONMENTAL LIABILITIES" means any liabilities, responsibilities, claims,
losses, costs (including remedial, removal, response, abatement, clean-up,
investigative and/or monitoring costs), damages, expenses, charges, assessments,
liens, penalties and fines which are incurred by, asserted against or imposed
upon a person as a result of or in connection with:

(1)  any violation of or non-compliance with Environmental Laws (including the
     failure to procure or violation of any Environmental Licence required by
     Environmental Laws); or

(2)  any Environmental Damage;

"ENVIRONMENTAL LICENCE" means any permit, licence, authorization, consent or
other approval obtained or which ought to have been obtained pursuant to any
Environmental Law at any time by the Company or the Purchaser and/or in relation
to the business carried on by the Company or the Purchaser,

"ENVIRONMENTAL MATTERS" includes any of the following (1) any generation,
deposit, disposal, keeping, treatment, transportation, transmission, handling or
manufacture of any Relevant Substance; (2) nuisance, noise, defective premises,
health and safety at work or elsewhere; (3) the carrying out of a development
(as defined in section 55(l) Town and Country Planning Act 1990); and (4) the
pollution, conservation or protection of the Environment whether relating to man
or any living organisms supported by the Environment or any other matter
whatsoever affecting the Environment or any part of it;

"ESCROW COMPLETION" means completion of the matters set out in clause 5.2
subject only to fulfilment of the Conditions;

"ESCROW COMPLETION DATE" means the date of this Agreement;

"Event" means any event, act, transaction, action or omission (whether or not
the Company or the Purchaser is a party thereto) and includes the disposal of
the Sale Shares pursuant to this Agreement, any change in the residence of any
person for the purposes of Tax, the death or dissolution of any person, the
receipt or accrual of any income profits or gains, any distribution, any
transfer, payment, loan or advance, and any event which is deemed to have
occurred or is treated or regarded as having occurred for the purposes of Tax
Legislation;

"EVENT OF DEFAULT" means:

(a)  the death of a Key Individual; or

(b)  any fire, flood, accident, computer failure or other calamity occurring
     after the execution of this Agreement in consequence of which the Company
     or the Purchaser (as the case may be) suffers a general interruption of its
     business which the party suffering such event estimates will be of a
     duration of ninety days or more; or

                                        3

<PAGE>   7

(c)  an Insolvency Event suffered by the Company or the Purchaser (as the case
     may be; or

(d)  the service on the Company or the Purchaser (as the case may be) of a writ
     or similar legal process claiming damages (liquidated or unliquidated) of
     an amount equal to or exceeding 50% of the net asset value of the Company
     or the Purchaser (as the case may be) as shown in the Accounts or the
     Purchaser's Accounts

"GUARANTEE" means any guarantee, indemnity, suretyship, letter of comfort or
other assurance, security or right of set-off given or undertaken by a person to
secure or support the obligations (actual or contingent) of any third party
and whether given directly or by way of counter-indemnity to any third party who
has provided a Guarantee;

"HAZARDOUS SUBSTANCE" means any waste, pollutant, hazardous or toxic substance
(meaning any substance of whatever nature which may be harmful to human health
or any other living creature or organism), gas, oil petroleum or
petroleum-derived substance or waste, including any such substance regulated
under or defined in any Environmental Law;

"HOLDING COMPANY" shall bear the meaning given to that expression in section 736
CA 1985;

"ICTA" means the Income and Corporation Taxes Act 1988;

"INCOME PROFITS OR GAINS" includes income profits or gains (including capital
gains) of any description and from any source and income profits or gains which
are deemed to be earned accrued or received for the purposes of any Tax;

"INSOLVENCY EVENT" means in relation to either the Company or the Purchaser,
where such party ceases to trade, or is unable to pay its debts as they fall due
or has a petition presented or a meeting convened for the purpose of winding up
such party, or such party enters into liquidation compulsorily or compounds with
its creditors generally or an administration order is made in relation to it or
it has a receiver or administrative receiver appointed over all or a substantial
part of its assets or distraint is levied over any of its assets or any similar
or analogous order is made or proceeding is commenced or officer is appointed
or action is taken in the United States of America or any other jurisdiction
outside the United Kingdom in consequence of debt;

"INVESTOR AGREEMENT" means an agreement in the agreed form executed in several
counterparts by each Vendor and the Purchaser;

"THE INTELLECTUAL PROPERTY" means all the Intellectual Property Rights used by
the Company or the Purchaser as at the date of this Agreement and at any time
prior to Completion;

"INTELLECTUAL PROPERTY RIGHTS" means patents, registered designs, trade marks
and service marks (whether registered or not), copyright, design rights, and all
similar

                                       4

<PAGE>   8

property rights, including those subsisting (in any part of the world) in
inventions, designs, drawings, performances, computer programs, semiconductor
topographies, plant varieties, confidential information, business or brand
names, goodwill or the style of presentation of goods or services and in
applications for protection thereof,

"THE KEY DATE" means 31st January 1998;

"KEY INDIVIDUAL" in the case of the Company, means intellectual William Byatt,
Arthur John Pinkney or Paul Nicholas King, and, in the case of the Purchaser,
means Jeff Williams or Jeff Stiegman;

"KNOW-HOW" means all industrial and commercial information and techniques,
accounts, records and information (wherever situate) pertaining to the
activities of the Company;

"THE MANAGEMENT ACCOUNTS" means the management accounts of the Company for the
period from 1st June 1997 to 30th November 1997 (both dates inclusive) in the
agreed form;

"THE NOMINATED ACCOUNT" means the Vendor's Solicitors client account numbered
70468312 at Barclays Bank Plc, Church Street, Peterborough, PE1 1XE, Sort Code
20-67-37, or such other account as the Vendors' Solicitors shall in writing
specify;

"OFFICIAL REQUIREMENT" means any law, statute, ordinance, pact, decree, treaty,
code, rule, regulation, directive, order, notice or official published plan or
policy with legal or actual force in any geographical area and/or in any class
of persons;

"THE OPINION" means the legal opinion in the agreed form delivered by the
Purchaser's US Attorneys to the Vendors' Solicitors;

"THE ORDINARY SHARES" means the 1,386,608 (one million three hundred and eighty
six thousand six hundred and eight) issued ordinary shares of 10p each in the
capital of the Company as refmcd to in column (3)(a) of schedule 1;

"PERMITTED TRANSFEREE" means:

(a)  in relation to the Executive Shareholders:

     (i)  that Executive Shareholder's spouse, lineal descendants and
          ascendants; or

     (ii) a family trust, the beneficiaries or which are the relevant Executive
          Shareholder or the relevant Executive Shareholder's spouse, lineal
          descendants or ascendants;

(b)  in relation to the Purchaser, a holding company or subsidiary of the
     Purchaser or a subsidiary of such holding companies.

"THE PREFERENCE SHARES" means the 90,000 (ninety thousand) issued participating
redeemable preference shares at L1 each in the capital of the Company as
referred to in column (3)(b)of schedule 1;

                                        5

<PAGE>   9

"THE PROPERTY" means the leasehold properly details of which are set out in
schedule 4;

"THE PURCHASER'S ACCOUNTS" means the consolidated accounts of B.I. Systems
Corporation and subsidiaries for the period ending 31st July 1997 together with
any notes and reports attached thereto;

"THE PURCHASER'S ACCOUNTS DATE" means 31st July 1997,

"THE PURCHASER'S AUDITORS" means Arthur Andersen of Suite A, 2401 Plymouth
Road, Ann Arbor, Michigan, 48105-2158, USA,

"THE PURCHASER'S DISCLOSURE LETTER" means the letter of the same date as this
Agreement from the Purchaser's Solicitors to the Vendors' Solicitors disclosing
certain matters in relation to the Purchaser's Warranties which has been
delivered to the Vendors' Solicitors prior to the execution of this Agreement;

"THE PURCHASER'S MANAGEMENT ACCOUNTS" means the management accounts of the
Purchaser for the period from 1st August 1997 to 30th November 1997 (both dates
inclusive) in the agreed form;

"THE PURCHASER'S PROPERTIES" means the properties details of which are set out
in part B of schedule 4;

"THE PURCHASER'S SOLICITORS means Wragge & Co of 55 Colmore Row, Birmingham,
B3 2AS;

"THE PURCHASER'S TAX WARRANTIES" means the Purchaser's Warranties as to the
matters stated in Part B of schedule 8;

"THE PURCHASER'S US ATTORNEYS" means Jaffe, Rain, Heuer & Weiss of Suite 2400,
One Woodward Avenue, Detroit, Michigan 48226, USA;

"THE PURCHASER'S WARRANTIES" means the warranties contained in clause 8 and
schedule 8;

"RELATED COMPANY" in relation to any company means any subsidiary or holding
company of that company or any subsidiary of any such holding company;

"RELEASE" means any release, spillage, emission, leaking, pumping, injection,
deposit, disposal, discharge, leaching, migration or any other form of movement
into or through the Environment or into or out of any property;

"RELEVANT AUTHORITY" means any person or authority (including any nation,
national or local governmental or international organisation and any subdivision
or agency or executive arm of any of them) with legal or de facto power to
impose and/or enforce compliance with any Official Requirements;

"RELEVANT BREACH" means any event, matter or circumstance which is inconsistent
with, contrary to or otherwise a breach of any of the Warranties;

                                       6

<PAGE>   10

"RELEVANT SUBSTANCE" means any substance whatsoever (whether in a solid or
liquid form or in the form of a gas or vapour and whether alone or in
combination with any other substance) or waste (as defined in the Environmental
Protection Act 1990) which is capable of causing harm to man or any other living
organism supported by the Environment or damaging the Environment or public
health or welfare;

"RELIEF means in respect of the Company or the Purchaser any loss, relief,
allowance, exemption, set-off, deduction, credit, right to payment or other
relief available in relation to Tax or to the computation of income profits or
gains for the purposes of Tax

"REMEDIAL ACTION" means all actions required to:

(1)  clean up, remove, treat, render harmless or in any other way adjust or
     manage Hazardous Substances in the Environment;

(2)  prevent the Release of Hazzardous Substances and ensure that they do not
     endanger or threaten to endanger public health or welfare or the
     Environment; or

(3)  perform pre-remedial studies and investigations or post-remedial monitoring
     and care;

"RESPECTIVE PROPORTIONS" means (in relation to the Vendors) the respective
proportions shown in column (4) of schedule 1;

"THE RESTRICTED PRODUCTS" means:

(a)  all products which are manufactured, produced, distributed or sold by the
     Company at the Completion Date (including, without prejudice to the
     generality of the foregoing all products in the Flexys range and related
     consumables); and

(b)  any other products which are of a type similar to and competing with any of
     the products referred to in (a) above;

"THE RESTRICTED SERVICES" means:

(a)  all services which are supplied by the Company at the Completion Date
     (including without prejudice to the generality of the foregoing, the
     provision of field services and technical services in relation to the
     Restricted Products); and

(b)  any other services which are of a type similar to and competing with any
     of the services referred to in (a) above;

"THE SALE SHARES" means the Ordinary Shares and the Preference Shares;

THE "SCHEMES" means the personal pension schemes (as defined in ICTA 1988) to
which the Company contributes in respect of the following employees:

(c)  A J Pinkney

                                       7

<PAGE>   11

(d)  D W Byatt

(e)  I Fox

(f)  J Evans

(g)  M Eddy

"SECURITY INTEREST" means in relation to the Company or the Purchaser a
mortgage, lien, pledge, charge, hypothecation or other security interest (or an
agreement or committment to create any of them), but excluding:

(a)  any lien arising in the ordinary course of business to secure amounts which
     are not material;

(b)  any unpaid vendor's or supplier's lien arising in the ordinary course of
     the Company's or the Purchaser's trading business to secure amounts due in
     respect of goods or services sold or supplied; and

(c)  liens arising by operation of law, including a banker's lien

"SUBSIDIARY" means a subsidiary (as defined by sections 736 and 736A CA 1985) or
a subsidiary undertaking (as defined by section 258 CA 1985);

"SYSTEMS" means any computer hardware, software, networking equipment or other
equipment used by the Company or the Purchaser which is reliant upon microchip
technology

"TAX" means:

(a)  all forms of taxation whenever created or imposed and whether of the United
     Kingdom or elsewhere including (without limitation) corporation tax,
     advance corporation tax, income tax (including income tax or amounts
     equivalent to income tax required to be deducted or withheld from or
     accounted for in respect of any payment) capital gains tax, inheritance
     tax, value added tax, landfill tax, stamp duty, stamp duty reserve tax,
     general or business rates, customs & excise duties, national insurance,
     social security or similar contributions and any other taxes, levies,
     duties, charges, imposts or withholdings similar to or corresponding with
     or replaced by any of the foregoing; and

(b)  all penalties, fines, charges, surcharges and interest in relation to
     taxation within paragraph (a) or to any return or information required to
     be provided for the purposes of any such taxation;

"TAX AUTHORITY" means the Inland Revenue, HM Customs & Excise, the Department of
Social Security and any other governmental, statutory, state, provincial or
local government authority, body or official (whether within or outside the
United Kingdom) involved in the assessment, collection or administration of Tax;

"TAX LEGISLATION" means any statute, enactment, law or regulation providing for
the imposition of Tax;

                                       8
<PAGE>   12

     "TAX LIABILITY" means a liability to make an actual payment of, or of an
     amount in respect of, Tax whether or not such Tax is also or alternatively
     chargeable against or attributable to any other person and whether or not
     the Company or the Purchaser as the case may be shall or may have a right
     of recovery or reimbursement against any other person;

     "THE TAX WARRANTIES" means the Warranties as to the matters stated in Part
     B of schedule 5;

     "TCGA 1992" means the Taxation of Chargeable Gains Act 1992;

     "VATA 1994" means the Value Added Tax Act 1994;

     "THE VENDORS" means those persons, including the Executive Shareholders,
     whose names and addresses are stated in schedule 1;

     "THE VENDORS" Solicitors" means Hewiston Becke + Shaw of Stuart House, City
     Road, Peterborough, PE1 1QF;

     "WARRANTIES" means the warranties contained in clause 7.1 and schedule 5;

1.2  a document expressed to be "IN THE AGREED FORM" means a document in a form
     which has been agreed by the parties contemporaneously with or before the
     execution of this Agreement and which has, for the purposes of
     identification, been initialled by them or on their behalf,

1.3  references to a clause or schedule are to a clause of, or a schedule to,
     this Agreement, references to this Agreement include its schedules and
     references in a schedule or part of a schedule to a paragraph are to a
     paragraph of that schedule or that part of that schedule;

1.4  references to this Agreement or any other document or to any specified
     provision of this Agreement or any other document are to this Agreement,
     that document or that provision as in force for the time being and as
     amended from time to time in accordance with the terms of this Agreement or
     that document or, as the case may be, with the agreement of the relevant
     parties;

1.5  words importing the singular include the plural and vice versa, words
     importing a gender include every gender and references to persons include
     corporations, partnerships and other unincorporated associations or bodies
     of persons;

1.6  the contents table and the descriptive headings to clauses, schedules and
     paragraphs (and summaries in parentheses of the scope of any statutory
     provisions in the Tax Warranties) are inserted for convenience only, have
     no legal effect and shall be ignored in the interpretation of this
     Agreement,

1.7  all agreements, obligations and liabilities (whether under warranties,
     representations, indemnities or otherwise) on the part of any two or more
     of the Vendors are joint and several and shall be construed accordingly;

                                       9

<PAGE>   13

1.8  the words and phrases "other", "including" and "in particular" shall not
     limit the generality of any preceding words or be construed as being
     limited to the same class as the preceding words where a wider construction
     is possible;

1.9  a person is connected with another person if he is so connected within the
     meaning of section 839 ICTA 1988;

1.10 reference to an Event occurring on or before Completion shall be deemed to
     include:

     (a)  any combination of two or more Events all of which shall have
          occurred on or before Completion; and

     (b)  any Event which is treated or deemed to occur on or before Completion
          for the purposes of any Tax.

1.11
     (a)  "enactment" means any statute or statutory provision (whether of the
          United Kingdom or elsewhere), subordinate legislation (as defined by
          section 21(l) Interpretation Act 1978) and any other subordinate
          legislation made under any such statute or statutory provision;

     (b)  a reference to any enactment shall be construed as including a
          reference to:

          (1)  any enactment which that enactment has directly or indirectly
               replaced (whether with or without modification), and

          (ii) that enactment as re-enacted, replaced or modified from time to
               time, whether before, on or after the date hereof,

          provided that this clause 1.11 shall not increase the liability of
          any party above that which appertains at the date hereof.

2   SALE OF THE SALE SHARES

2.1  Subject to clause 10, the Vendors shall sell to the Purchaser and the
     Purchaser shall purchase from the Vendors the Sale Shares.

2.2  The Executive Shareholders shall procure that the Vendors shall sell and
     transfer the Sale Shares free from all claims, liens, charges, encumbrances
     and equities and other rights exercisable by third parties and with full
     title guarantee.

2.3  Title to, beneficial ownership of, and any risk attaching to, the Sale
     Shares shall pass on Completion and the Sale Shares shall be sold and
     purchased together with all rights and benefits attached or accruing to
     them at Completion (including the right to receive all dividends,
     distributions or any return of capital declared, paid or made by the
     Company on or after Completion).

2.4  The Purchaser shall not be obliged to complete the purchase of any of the
     Sale Shares unless the purchase of all the Sale Shares is completed
     simultaneously.

                                       10

<PAGE>   14

3    CONSIDERATION

3.1  The consideration for the sale of the Sale Shares shall be:

     (a)  in respect of the Ordinary Shares, the allotment and issue credited as
          fully paid to each of the Vendors of the number of Consideration
          Securities as is shown in column 3(a) of Schedule 1 on Completion; and

     (b)  in respect of the Preference Shares, the payment in cash to Mr. A
          Biddle of the sum of Pound Sterling 90,000.

3.2  The Consideration Securities shall rank pari passu in all respects with the
     common stock of the Purchaser in issue at the date hereof.

4    RESCISSION

4.1  If at any time before Completion the Purchaser or the Executive
     Shareholders become aware of an Event of Default (whether in consequence of
     notice under clause 10.4 or otherwise), the Purchaser or the Executive
     Shareholders (on behalf of the Vendors) shall be entitled to rescind this
     Agreement on or before Completion by notice to the Executive Shareholders
     or the Vendors' Solicitors or the Purchaser or the Purchaser's Solicitors
     as the case may be without any liability on its or their part.

4.2  If the either party duly exercises their right of rescission under clause
     4.1 it or they shall have no other claim and in particular clause 7.4 and
     clause 8.4 shall not apply.

4.3  Any failure or omission by the Purchaser or the Executive Shareholders
     as the case may be to exercise their respective right of rescission under
     clause 4.1 shall not in any way prejudice or be construed as a waiver of
     its rights under this Agreement to claim damages, compensation or indemnity
     under the Warranties or Purchaser's Warranties as the case may be or
     otherwise in respect of any loss or damage resulting from the Event of
     Default.

4.4  In no circumstances shall the right of rescission under clause 4.1 be
     exercisable after Completion.

5    ESCROW COMPLETION AND COMPLETION

5.1  Completion shall take place at the offices of the Purchaser's Solicitors
     (or at such other place as the parties may agree) in two stages on the
     Escrow Completion Date and on the Completion Date.

5.2  On the Escrow Completion Date all (but not part only unless the parties
     shall so agree) the following business shall be transacted:

     (a)  the Executive Shareholders shall procure the delivery to the
          Purchaser's Solicitors on the agreed basis of:

          (i)  transfers in respect of the Sale Shares duly executed in escrow
               and completed in favour of the Purchaser, together with the
               certificates therefor and the duly executed powers of attorney
               or other authorities under which any of the transfers have been
               executed;

                                       11

<PAGE>   15

     (ii) such other documents as may be required to give a good title to the
          Sale Shares and to enable the Purchaser to become the registered
          holders thereof;

    (iii) (as agents for the Company) all its statutory and minute books
          written up to date) and its Common Seal, Certificate of Incorporation,
          any Certificate or Certificates of Incorporation on Change of Name,
          books of account and copies of its Memorandum and Articles of
          Association;

     (iv) evidence in a form satisfactory to the Purchaser that all Guarantees
          given by the Company in respect of liabilities of any of the Vendors
          have been released;

     (v)  the deeds and documents of title to the Property;

     (vi) waivers in the agreed form executed as deeds by each of the Vendors of
          rights of pre-emption conferred on him by the Articles of Association
          of the Company or otherwise over Sale Shares hereby agreed to be sold
          by the other Vendors;

    (vii) powers of attorney in the agreed form executed by each of the Vendors
          in favour of the Purchaser empowering the Purchaser to exercise the
          Vendors' rights as shareholders of the Company pending stamping and
          registration of the transfers referred to in clause 5.2(a)(i); and

    (viii)the Investor Agreement duly executed in escrow by the Vendors.

(b)  The Executive Shareholders shall (subject to and effective from
     Completion):

     (i)  cause the transfers mentioned in clause 2.2 to be resolved to be
          registered (subject only to their being duly stamped) notwithstanding
          any provision to the contrary in the Articles of Association of the
          Company or otherwise;

     (ii) cause Jeffrey Williams to be validly appointed as an additional
          Director of the Company; and

     (iii)alter the current accounting reference period of the Company so as to
          end on 31st December 1997.

(c)  The Purchaser shall deliver to the Vendors' Solicitors on the agreed basis:

     (i)  stock certificates in the agreed form in respect of the Consideration
          Securities to be allotted and issued pursuant to clause 3.1; and

     (ii) the Opinion.

(d)  The parties shall join in procuring that (subject to and effective from
     Completion) all existing bank mandates in force for the Company shall be
     altered (in such manner as the Purchaser shall at Completion require) to
     reflect appointment referred to above.

                                       12

<PAGE>   16

5.3  In respect of each Condition, the party responsible for satisfying or
     procuring the satisfaction of such Condition shall forthwith give written
     notice to the other party of the satisfaction of such Condition, together
     with reasonable evidence thereof. Upon notification of the fulfilment of
     the final outstanding Condition being received by the recipient party:

     (a)  the Vendors' Solicitors shall deliver to the Purchaser's Solicitors a
          letter confirming that no Event of Default has occurred in relation
          to the Company; and

     (b)  the Purchaser's Solicitors shall deliver to the Vendors' Solicitors a
          letter confirming that no Event of Default has occurred in relation to
          the Purchaser,

          the letters referred to in clauses 5.3(a) and (b) being hereinafter
          referred to as the "NO DEFAULT LETTERS".

5.4  Prior to Completion, the Purchaser undertakes to use its reasonable
     endeavours to procure the approval of the terms of the Investor Agreement
     from holders representing the majority of the shares of each class of the
     Series M and C Preferred Shares in the capital of the Purchaser and the
     approval of the shareholders representing 50% or more of the Subject Common
     Stock held by holders of the Series B Preferred Shares as such phrase is
     defined in the Investor Agreement.

5.5  On the Completion Date, provided that Escrow Completion shall have taken
     place and the No Default Letters shall have been delivered by the Vendors'
     Solicitors and the Purchasers' Solicitors and vice versa, Completion shall
     automatically take place whereupon:

     (a)  all the documents and things delivered and matters transacted subject
          to Completion shall automatically be released and become unconditional
          in accordance with the terms of such delivery and transactions (and
          the Executive Shareholders hereby irrevocably and unconditionally
          authorise the Purchaser's Solicitors (on behalf of the Purchaser) to
          date at such time all undated documents delivered at Escrow
          Completion); and

     (b)  the Purchaser shall pay the sum of Pound Sterling 90,000 (being the
          amount of consideration payable in respect of the Preference Shares)
          to the Nominated Account of the Vendors' Solicitors (who are hereby
          authorised to receive it on such account) and payment into such
          account shall constitute a good discharge to the Purchaser in respect
          of such amount.

5.6  If Completion has not occurred before 23.59 hours Eastern Standard Time on
     the Key Date then this Agreement shall terminate and cease to have effect
     (save in respect of clauses 12 and 21.2) and all such documents and things
     shall be returned to the party entitled thereto (or to their solicitors)
     and all such transactions shall become void.

5.7  In this clause 5, "on the agreed basis" means, in relation to the documents
     and things delivered to the Purchasers' Solicitors in accordance with
     clause 5.2(a) conditional upon and to be held to the Vendors' Solicitors'
     order pending Completion and to be released unconditionally to the
     Purchaser upon Completion and, in relation to the documents and things
     delivered to the Vendors' Solicitors in accordance with clause

                                       13

<PAGE>   17

     5.2(c) means conditional upon and to be held to the Purchasers' Solicitors
     order pending Completion and to be released unconditionally to the Vendors
     upon Completion.

5.8  The Purchaser and the Executive Shareholders undertake to indemnify the
     Purchaser's Solicitors and the Vendors' Solicitors against any liability,
     loss, cost, damage or expense which the Purchaser's Solicitors or the
     Vendors' Solicitors or either of them in connection with the issue and
     delivery of the No Default Letters, except insofar as any such liability or
     other matter arises by reason of the gross negligence or bad faith of the
     Purchaser's Solicitors or the Vendors' Solicitors (as the case may be).

5.9  The parties acknowledge that it is intended that Mr John Wynne Williams
     shall resign as a Director of the Company at the meeting of the board of
     directors of the Company convened for 7th January 1998.

6    POST-COMPLETION MATTERS

6.1  The Executive Shareholders shall execute or, so far as each is able,
     procure that any necessary third party (including the other Vendors) shall
     execute all such documents and/or do or, so far as each is able, procure
     the doing of such acts and things as the Purchaser shall after Completion
     require in order to give effect to this Agreement and any documents entered
     into pursuant to it and to give to the Purchaser the full benefit of all
     the provisions of this Agreement.

6.2

     (a)  Immediately following Completion the Purchaser shall procure that Mr
          P.N. King is appointed to the board of directors of the Purchaser as
          the nominated director of the Executive shareholders ("THE NOMINATED
          DIRECTOR") for a term expiring on the date of the annual general
          meeting of the Purchaser to be held in 1999.

     (b)  Subject to clauses 6.2(c) and 6.2(d) the Purchaser shall propose such
          of the Executive Shareholders (or a third party of appropriate
          business experience (subject to the approval of the board of directors
          of Purchaser, such approval not to be unreasonably withheld) as a
          majority of the Executive Shareholders shall nominate for appointment
          to the board of directors of the Purchaser as Nominated Director at
          the annual general meeting to the Purchaser to be held in 1999 and at
          each subsequent annual general meeting.

     (c)  The Purchaser's obligation to propose a Nominated Director for
          election to its board of directors pursuant to clause 6.2(b) shall be
          exercisable at the discretion of the remaining directors of the
          Purchaser, the exercise of such discretion to be by reference to the
          performance of the Nominated Director during the period since the
          previous annual general meeting and in particular the contribution the
          has made to the business of the Purchasers during such period;

     (d)  The Nominated Director shall forthwith resign, and if he refuses to
          resign, shall forthwith be removed, from the board of directors of the
          Purchaser (and

                                       14

<PAGE>   18

          The Executive Shareholders shall thereafter have no further right to
          nominate a Nominated Director):

          (i)  prior to the filing of a registration statement or equivalent
               document with the US Securities and Exchange Commission in
               relation to an Initial Public Offering in respect of its common
               stock; or

          (ii) upon the Executive Shareholders ceasing to be the beneficial
               owners of in aggregate 50% or more of the Consideration
               Securities allotted to them pursuant to this Agreement by reason
               of a sale, transfer or other disposal of such Consideration
               Securities other than to a Permitted Transferee.

7    EXECUTIVE SHAREHOLDERS' REPRESENTATIONS AND WARRANTIES

7.1  In consideration of the Purchaser entering into this Agreement the
     Executive Shareholders hereby warrant to the Purchaser (for itself and as
     trustee for its successors in title):

     (a)  (subject to clause 7.2(a) and the limitation provisions set out in
          part A of schedule 7) in the terms set out in schedule 5;

     (b)  that any statement in schedule 5 which is qualified as being made "so
          far as the Executive Shareholders are aware" or "to the best of the
          knowledge, information and belief of the Executive Shareholders" or
          any similar expression has been so qualified after due diligent and
          careful enquiries of the Executive Shareholders; and

     (c)  The Executive Shareholders further hereby warrant to the Purchaser
          (for itself and as trustee for its successors in title):

          (i)  in the same terms as those set out in clause 7.1(a) and (b);
               and

          (ii) that the terms so warranted shall be deemed to be repeated
               immediately before Completion with reference to the facts and
               circumstances then prevailing.
7.2

     (a)  The Warranties are qualified to the extent, but only to the extent, of
          those matters fully and fairly disclosed in the Disclosure Letter and
          for this purpose "fully and fairly disclosed" means disclosed in such
          manner and in such detail as to enable a reasonable purchaser to make
          an informed and accurate assessment of the matter concerned.

     (b)  Each of the paragraphs in schedule 5:

          (i)  shall be construed as a separate and independent representation
               and/or warranty; and

                                       15

<PAGE>   19

          (ii) save as expressly otherwise provided in this Agreement, shall not
               be limited by reference to any other paragraph in schedule 5 or
               by any other provision of this Agreement;

          and the Purchaser shall have a separate claim and right of action in
          respect of every Relevant Breach of each such representation or
          warranty.

7.3  The Executive Shareholders shall procure that neither the Executive
     Shareholders nor the Company shall do or permit or procure any act or
     omission before Completion which would constitute a breach of any of the
     Warranties if they were given at Completion or which would make any of the
     Warranties inaccurate or misleading in any material respect if they were so
     given.

7.4  In the event of any Relevant Breach of any of the Warranties which relate
     to debtors, creditors, stock or Tax if the effect of the Relevant Breach is
     that:

     (a)  the Sale Shares are worth less than their value would have been if the
          Relevant Breach had not occurred; or

     (b)  any asset of the Company is extinguished or is worth less than its
          value would have been if the Relevant Breach had not occurred; or

     (c)  the Company is or will be under a liability or an increased or
          substituted liability which would not have existed if the Relevant
          Breach had not occurred; or

     (d)  there does not accrue to the Company some benefit, gain or profit
          which could reasonably have been expected to accrue to the Company if
          the Relevant Breach had not occurred;

     the Purchaser shall (subject to clause 4.2) be entitled by notice in
     writing given to any of the Executive Shareholders at any time after
     Completion to require the Executive Shareholders to make good the resultant
     loss to the Purchaser in accordance with the provisions of clauses 7.5 to
     7.8

7.5  For the purposes of clause 7.4, the amount required to make good the loss
     to the Purchaser or the Company resulting from a Relevant Breach as
     described in clause 7.4 ("THE COMPENSATION SUM") shall be either (at the
     Purchaser's option):

     (a)  an amount equal to the amount by which in consequence of the Relevant
          Breach the value of the Sale Shares falls short of the value they
          would have had if the Relevant Breach had not occurred; or

     (b)  the appropriate sum (as defined in clause 7.6).

7.6  For the purposes of clause 7.5(b) "THE APPROPRIATE SUM" means:

     (a)  if the effect of the Relevant Breach is as stated in clause 7.4(a),
          the amount by which the value of the Sale Shares falls short of the
          value they would have had if the Relevant Breach had not occurred;

                                       16

<PAGE>   20

(b)  if the effect of the Relevant Breach is as stated in clause 7.4(b), the
     amount by which the value of the assets of the Company falls short of the
     value they would have had if the Relevant Breach had not occurred; or

(c)  if the effect of the Relevant Breach is as stated in clause 7.4(c), the
     amount by which the liabilities of the Company exceed what would have been
     their amount if the Relevant Breach had not occurred; or

(d)  if the effect of the Relevant Breach is as stated in clause 7.4(d), an
     amount equal to the capitalised value of any such benefit, gain or profit
     as is mentioned in that clause which could reasonably have been expected to
     accrue to the Company if the Relevant Breach had not occurred but which
     does not or will not accrue to it in the circumstances specified in that
     clause;

     plus in each case such additional amount (if any) as may be necessary to
     put the Company into the same position in financial terms as would have
     existed if there had been no such breach.

7.7  The Executive Shareholders may elect to satisfy a claim made under any of
     the Warranties (a "WARRANTY CLAIM") by either:

     (a)  paying the amount of the Warranty Claim in cash to the Purchaser; or

     (b)  transferring to the Purchaser such number of Consideration Securities
          as shall satisfy the Warranty Claim at a price per Consideration
          Security determined in accordance with clause 7.8; or

     (c)  a combination of the methods described in paragraphs (a) and (b) of
          this clause 7.7

7.8  For the purposes of clauses 7.7(b) and 7.13(b) the deemed value of the
     Consideration Securities payable thereunder shall be the greater of:

     (a)  US $1.75 per share; and

     (b)

          (i)  if the Consideration Securities are listed on a recognised
               exchange at the date on which the claim made pursuant to clause
               7.4 is determined or settled in favour of the Purchaser (the
               "Settlement Date"), the average of the mid-market price of a
               share in the common stock of the Purchaser for the five business
               days immediately preceding the Settlement Date; or

          (ii) if the Consideration Securities are not listed on a recognised
               exchange on the Settlement Date, the market value of the
               Consideration Securities at the Settlement Date which shall be
               calculated by valuing the Common Stock of the Purchaser as a
               whole.

7.9  For the purposes of clause 7.8(b)(ii), the valuation of the Consideration
     Securities payable pursuant to clause 7.7(b) or clause 7.14(b) shall be
     that percentage of the

                                       17

<PAGE>   21

          value of the Purchaser's common stock taken as a whole as the
          Consideration Securities in question comprise of the total number of
          the common stock of the Purchaser issued at that time. This valuation
          shall be agreed between the parties contemporaneously with the
          settlement or determination of the Warranty Claim. If within 7 days of
          the Settlement Date the parties are unable to agree the valuation, the
          matter shall forthwith be referred to the Purchaser's Auditors or,
          if the Executive Shareholders do not agree on the appointment of the
          Purchaser's Auditors for this purpose, an independent US accountant of
          not less than five years standing to be agreed between the parties and
          in default of agreement to be appointed by the American Institute of
          Chartered Public Accountants. The said Purchaser's Auditors or
          independent accountant shall be instructed to certify the valuation of
          the common stock and of the Consideration Securities payable pursuant
          to clause 7.7(b) or clause 7.13(b) and shall be instructed to deliver
          such certificate within 28 days of the date of the referral. In so
          certifying the said Purchaser's Auditors or the accountant shall act
          as an expert and not as an arbitrator and his decision shall be final
          and binding upon the parties (save in the event of manifest error) and
          the cost of so certifying shall be borne by the party requesting the
          adjudication.

7.10      The amount of the loss suffered by the Purchaser in consequence of any
          Relevant Breach as measured by any of the payments which the Purchaser
          is entitled to require to be made under clause 7.4 shall be deemed to
          have been within the contemplation of the parties on entering into
          this Agreement.

7.11      The rights and remedies conferred on the Purchaser under this
          Agreement are cumulative and are additional to, and not exclusive of,
          any rights or remedies provided by law or otherwise available at any
          time to the Purchaser in respect of any Relevant Breach (including but
          not limited to the right to damages for any loss or additional loss
          suffered by the Purchaser).

7.12

          (a)  The Purchaser's right or ability to claim damages, compensation
               or other relief in respect of any Relevant Breach shall not be
               affected or limited, and the amount recoverable shall not be
               reduced, on the grounds that the Purchaser may before Completion
               have had constructive or implied knowledge of the matter giving
               rise to the claim; and

          (b)  Without prejudice to the generality of clause 7.12(a) the rights
               and remedies of the Purchaser shall not be affected or limited in
               any way by any investigation made by or on behalf of the
               Purchaser into the Company or any report on the prepared at the
               instance of or made available to the Purchaser.

7.13 The Executive Shareholders undertake to indemnify the Purchaser against any
     costs (including legal costs on an indemnity basis), expenses and other
     liabilities (together with any VAT thereon which is not recoverable by the
     Purchaser) ("COSTS") which the Purchaser may reasonably incur, either
     before or after the commencement of any action, in connection with:

     (a)  the settlement of any claim by the Purchaser that there has been a
          Relevant Breach of the Warranties; or

                                       18

<PAGE>   22
         (b)  any legal proceedings in which the Purchaser claims that there has
              been a Relevant Breach of the Warranties and in which judgment is
              given for the Purchaser; or

         (c)  the enforcement of any such settlement or judgment.

    7.14 The Executive Shareholders may elect to satisfy any demand for Costs
         payable pursuant to clause 7.13 by either:

         (a)  paying the costs in cash to the Purchaser; or

         (b)  transferring to the Purchaser such number of Consideration
              Securities as shall satisfy the Costs at a price per Consideration
              Security determined in accordance with clause 7.8; or

         (c)  a combination of the methods described in paragraphs (a) and (b)
              of this clause 7.14.

    7.15 The Warranties shall not in any respect be extinguished or affected by
         Completion.

    7.16 Each of the Executive Shareholders agrees with the Purchaser (for
         itself and as trustee for the Company and the Company's directors,
         employees, agents and advisers):

         (a)  that the giving by the Company and/or any of its directors,
              employees, agents or advisers to any of the Executive Shareholders
              or their agents or advisers of any information or opinion in
              connection with the Warranties or the Disclosure Letter or
              otherwise in relation to the business or affairs of the Company or
              in connection with the negotiation and preparation of this
              Agreement or the Disclosure Letter shall not be deemed a
              representation, warranty or guarantee to the Executive
              Shareholders of the accuracy of such information or opinion;

         (b)  to waive any right or claim which he may have against the Company
              and/or any of its directors, employees agents or advisers for any
              error, omission or misrepresentation in any such information or
              opinion; and

         (c)  that any such right or claim shall not constitute a defence to any
              claim by the Purchaser under or in relation to this Agreement
              (including the Warranties).

    8    PURCHASER'S REPRESENTATIONS AND WARRANTIES

    8.1  In consideration of the Executive Shareholders entering into this
         Agreement the Purchaser hereby warrants to the Executive Shareholders
         (for themselves, the Vendors and for their successors in title):

         (a)  (subject to clause 8.2(a) and the limitation provisions set out in
              part B of schedule 7) in the terms set out in schedule 8;

         (b)  that any statement in schedule 8 which is qualified as being made
              "so far as the Purchaser is aware " or "to the best of the
              knowledge information and belief of the Purchaser" or any similar
              expression has been so qualified after

                                       19

<PAGE>   23

              due diligent and careful enquiry by the Purchaser of Jeffrey
              Williams and Steven Richvalsky; and

         (c)  the Purchaser hereby further warrants to the Executive
              Shareholders on behalf of the Vendors (for themselves and for
              their successors in title):

              (i)   in the same terms as those set out in clause 8.1(a) and
                    (b); and

              (ii)  that the terms so warranted shall be deemed to be repeated
                    immediately before Completion with reference to the facts
                    and circumstances then prevailing.

    8.2

         (a)  the Purchaser's Warranties are qualified to the extent, but only
              to the extent, of those matters fully and fairly disclosed in the
              Purchaser's Disclosure Letter and the Opinion and for this
              purpose "fully and fairly disclosed" means disclosed in such
              manner and in such detail as to enable a reasonable vendor to make
              an informed and accurate assessment of the matter concerned;

         (b)  each of the paragraphs in schedule 8:

              (i)   shall be construed as a separate and independent
                    representation and/or warranty; and

              (ii)  save as expressly otherwise provided in this Agreement shall
                    not be limited by reference to any other paragraph in
                    schedule 8 or by any other provisions of this Agreement; and

              (iii) the Executive Shareholders shall have separate claims and
                    rights of action in respect of any Relevant Breach of each
                    such representation or warranty Provided that, for the
                    avoidance of doubt, the Executive Shareholders shall between
                    them only have a single claim and right of action in respect
                    of each Relevant Breach.

         8.3  The Purchaser shall not carry out any act or permit or procure any
              act or omission before Completion which would constitute a breach
              of any of the Purchaser's Warranties if they were given at
              Completion or which would make any of the Purchaser's Warranties
              inaccurate or misleading in any material respect if they were so
              given.

         8.4  In the event of any Relevant Breach of the Purchaser's Warranties
              which relate to creditors or Tax if the effect of the Relevant
              Breach is that:

              (a)   the Consideration Securities are worth less than their value
                    would have been if the Relevant Breach had not occurred; or

              (b)   any asset of the Purchaser is extinguished or is worth less
                    than its value would have been if the Relevant Breach had
                    not occurred; or

                                       20

<PAGE>   24

              (c)   the Purchaser is or will be under a liability or an
                    increased or substituted liability which would not have
                    existed if the Relevant Breach had not occurred; or

              (d)   there does not accrue to the Purchaser such benefit, gain or
                    profit which could reasonable have been expected to accrue
                    to the Purchaser if the Relevant Breach had not occurred;

              the Executive Shareholders shall (subject to clause 4.2) be
              entitled by notice in writing given to the Purchaser at any time
              after Completion to require the Purchase to make good the
              resultant loss to the Vendors in accordance with the provisions of
              clauses 8.5 to 8.7.

         8.5  For the purposes of clause 8.4, the amount required to make good
              the loss to the Vendors resulting from a Relevant Breach as
              described in clause 8.4 ("THE COMPENSATION SUM") shall be the
              appropriate sum (as defined in clause 8.6).

         8.6  For the purposes of clause 8.5 "the APPROPRIATE SUM" means:

              (a)   if the effect of the Relevant Breach is as stated in clause
                    8.4(a) the amount by which the value of the Consideration
                    Securities falls short of the value they would have had if
                    the Relevant Breach had not occurred;

              (b)   if the effect of the Relevant Breach is as stated in clause
                    8.4(b) the amount by which the value of the assets of the
                    Purchaser falls short of the value they would have had if
                    the Relevant Breach had not occurred; or

              (c)   if the effect of the Relevant Breach is as stated in clause
                    8.4(c) the amount by which the liabilities of the Purchaser
                    exceed what would have been their amount if the Relevant
                    Breach had not occurred; or

              (d)   if the effect of the Relevant Breach is as stated in clause
                    8.4(d) an amount equal to the capitalised value of any such
                    benefit, gain or profit as is mentioned in that clause
                    which  could reasonably have been expected to accrue to the
                    Purchaser if the Relevant Breach had not occurred but which
                    does not or will not accrue to it in the circumstances
                    specified in that clause

              PLUS in each case, such additional amounts (if any) as may be
              necessary to put the Vendors into the same position in financial
              terms as would have existed if there had been no such breach.

         8.7  The Purchaser may elect to satisfy a claim made under any of the
              Purchaser's Warranties (a "PURCHASER'S WARRANTY CLAIM") by either:

              (a)   paying the amount of the Purchaser's Warranty Claim in cash
                    to the Executive Shareholders who shall allocate such amount
                    between the Vendors in accordance with the Respective
                    Proportions shown in column (4) of schedule 1 but so that
                    the Purchaser's payment to the Executive Shareholders shall
                    discharge the Purchaser's liability and the Purchaser shall
                    not be concerned with the allocation to the Vendors; or

                                       21

<PAGE>   25

              (b)   allotting to the Vendors such number of additional shares of
                    common stock of the Purchaser (credited as fully paid)
                    ("ADDITIONAL SHARES") as shall satisfy the Purchaser's
                    Warranty Claim at a price per Additional Share determined in
                    accordance with clause 8.8;

              (c)   a combination of the methods described in paragraphs (a) or
                    (b).

         8.8  For the purposes of clauses 8.7(b) and 8.12(b) the issue price of
              the Additional Shares to be allotted thereunder shall be the
              greater of:

              (a)   US $1.75 per share; and

              (b)

                    (i)   if the common stock of the Purchaser is listed on a
                          recognised exchange at the date on which the claim
                          made pursuant to clause 8.4 is settled or determined
                          in favor of the Executive Shareholders (the
                          "DETERMINATION DATE"), the average of the mid-market
                          price of a share in the common stock of the Purchaser
                          for the five business days immediately preceding the
                          Determination Date; or

                    (ii)  if the common stock of the Purchaser is not listed on
                          a recognised exchange on the Determination Date, the
                          market value of a share of the common stock of the
                          Purchaser at the Determination Date. This market value
                          shall be agreed between the parties contemporaneously
                          with the settlement or determination of the
                          Purchaser's Warranty Claim. If within 7 days of the
                          Determination Date the parties are unable to agree the
                          valuation, the matter shall forthwith be referred to
                          the Purchaser's Auditors or, if the Executive
                          Shareholders do not agree on the appointment of the
                          Purchaser's Auditors for this purpose, an independent
                          US accountant of not less than five years standing to
                          be agreed between the parties and in default of
                          agreement to be appointed by the American Institute of
                          Chartered Public Accountants. The said Purchaser's
                          Auditors or independent accountant shall be instructed
                          to certify the market value of a share of the common
                          stock and shall be instructed to deliver such
                          certificate within 28 days of the date of the
                          referral. In so certifying the said Purchaser's
                          Auditor or the accountant shall act as an expert (save
                          in the event of manifest error) and the cost of so
                          certifying shall be borne by the party requesting the
                          adjudication.

         8.9  The rights and remedies conferred on the Executive Shareholders
              and the Vendors under this Agreement are cumulative and are
              additional to, and not exclusive of, any rights or remedies
              provided by law or otherwise available at any time to the
              Executive Shareholders in respect of any Relevant Breach
              (including but limited to the right to damages for any loss or
              additional loss suffered by the Vendors).

         8.10

              (a)   The Executive Shareholders' or Vendors' right or ability to
                    claim damages, compensation or other relief in respect of
                    any Relevant Breach shall not be affected or limited, and
                    the amount recoverable shall not be reduced, on the

                                       22

<PAGE>   26

                    grounds that the Executive Shareholders may before
                    Completion shall have had constructive or implied knowledge
                    of the matter giving rise to the claim; and

              (b)   without prejudice to the generality of clause 8.10(a) the
                    rights and remedies of the Executive Shareholders shall not
                    be affected or limited in any way by any investigation made
                    by or on behalf of the Executive Shareholders into the
                    Purchaser or any report prepared at the instance of or made
                    available to the Executive Shareholders.

         8.11 The Purchaser undertakes to indemnify the Executive Shareholders
              against any costs (including legal costs on an indemnity basis),
              expenses and other liabilities (together with any VAT thereon
              which is not recoverable by the Executive Shareholders) ("COSTS")
              which the Executive Shareholders may reasonably incur, either
              before or after the commencement of any action, in connection
              with:

              (a)   the settlement of any claim by the Executive Shareholders
                    that there has been a Relevant Breach of the Purchaser's
                    Warranties; or

              (b)   any legal proceedings in which the Executive Shareholders
                    claims that there has been a Relevant Breach of the
                    Purchaser's Warranties and in which judgment is given for
                    the Executive Shareholders; or

              (c)   the enforcement of any such settlement or judgment.

         8.12 The Purchaser may elect to satisfy any demand for Costs payable
              pursuant to clause 8.11 by either:

              (a)   paying the Costs in cash to the Executive Shareholders; or

              (b)   allotting to the Executive Shareholders (credited as fully
                    paid) such number of Additional Shares as shall satisfy the
                    Costs at a price per share determined in accordance with the
                    provisions of clause 8.8; or

              (c)   a combination of the methods described in paragraphs (a) or
                    (b) of this clause 8.12.

         8.13 The Purchaser's Warranties shall not in any respect be
              extinguished or affected by Completion.

         8.14 The Purchaser agrees with the Vendors:

              (a)   that giving to the Purchaser of any information or opinion
                    in connection with the Purchaser's Warranties or the
                    Purchaser's Disclosure Letter or otherwise in relation to
                    the business or affairs of the Purchaser or in connection
                    with the negotiation and preparation of this Agreement or
                    the Purchaser's Disclosure Letter by any of the Purchaser's
                    officers, employees, agents or advisors shall not be deemed
                    a representation warranty or guarantee to the Purchaser of
                    the accuracy of such information or opinion;

                                       23

<PAGE>   27

              (b)   to waive any right or claim which the Purchaser may have
                    against any of its officers, employees, agents or advisors
                    for any error, omission or misrepresentation in any such
                    information or opinion; and

              (c)   that any such right or claim should not constitute a defence
                    to any claim to the Executive Shareholders under or in
                    relation to this Agreement including the Purchaser's
                    Warranties.

         8.15 The amount of the loss suffered by the Executive Shareholders in
              consequence of an Relevant Breach as measured by any of the
              payments which the Executive Shareholders are entitled to require
              to be made under clause 8.4 shall be deemed to have been within
              the contemplation of the parties on entering into this Agreement.

         9    RESTRICTIVE COVENANTS

         9.1  Each of the Executive Shareholders undertakes with the Company and
              the Purchaser that without the prior consent in writing of the
              Purchaser (such consent not to be unreasonably withheld and shall
              be deemed to have been given by the Purchaser in the event that
              the Company terminates the employment or engagement as a
              consultant (as the case may be) of an Executive Shareholder on
              grounds other than would entitle the Company to terminate such
              employment or engagement under the terms of the relevant Executive
              Shareholder's service agreement or consultancy agreement) he will
              not directly or indirectly, whether by himself, his employees or
              agents and whether on his own behalf or on behalf of any other
              person, firm or company or otherwise howsoever, for a period of 3
              years from the Completion Date:

              (a)   in relation to the Restricted Products or any of them or the
                    Restricted Services or any of them solicit or canvass,
                    accept orders from or otherwise deal with any person, firm,
                    company or other organisation who:

                    (i)   was a customer or supplier of the Company at any time
                          during the 3 years prior to the Completion Date; or

                    (ii)  at the Completion Date was in the process of
                          negotiating or contemplating doing business with the
                          Company,

                    and with whom that Executive Shareholder had personal
                    dealings in the course of his employment;

              (b)   solicit or entice away or endeavour to solicit or entice
                    away from the Company any director or manager or salesman or
                    other person employed or otherwise engaged by the Company on
                    the Completion Date, whether or not that person would commit
                    any breach of his contract of employment by reason of his
                    leaving the service of the Company;

              (c)   employ or otherwise engage any person who at the Completion
                    Date or during the period of 3 years prior thereto was
                    employed or otherwise engaged by the Company and who by
                    reason thereof is or is reasonably likely to be in
                    possession of any of the Confidential Information;

                                       24

<PAGE>   28

              (d)   be employed or engaged in any company, firm or business
                    which as regards any goods or services is a supplier to or a
                    customer of the Company.

         9.2  Clause 9.1 shall be deemed to be repeated herein with the
              substitution of the period "12 months from the Termination Date in
              relation to that Executive Shareholder" for the period "3 years
              from the date of Completion".

         9.3  Each of the Executive Shareholders undertakes with the Purchaser
              that he will not at any time after Completion directly or
              indirectly, whether by himself, his employees or agents or
              otherwise howsoever:

              (a)   engage in any trade or business or be associated with any
                    person firm or company engaged in any trade or business
                    using the name PBA or any name incorporating the words PBA
                    or any similar name or names or any colourable imitation
                    thereof (provided that for the avoidance of doubt this
                    clause 9.3(a) shall not apply to "PBT" the trading name of
                    Precision Beam Technologies Limited of which Mr. King is a
                    shareholder);

              (b)   (subject to clause 9.5(a)) in the course of carrying on any
                    trade or business, claim, represent or otherwise indicate
                    any present association with the Company or, for the purpose
                    of obtaining or retaining any business or custom, claim,
                    represent or otherwise indicate any past association with
                    the Company;

              (c)   (subject to clause 9.5(b)) without the consent of the
                    Company or the Purchaser use, whether on his own behalf or
                    on behalf of any third party, or divulge to any third party,
                    any of the Confidential Information.

         9.4  Subject to clause 9.5(b) each of the Executive Shareholders
              undertakes with the Company and the Purchaser that, if the Company
              shall have obtained any of the Confidential Information from any
              third party under an agreement including any restriction on
              disclosure known to him, he will not at any time without the
              consent of the Company or the Purchaser infringe that restriction.

         9.5

              (a)   The restriction in clause 9.3(b) shall not operate to
                    prohibit any of the Executive Shareholders who continues in
                    the employment of the Company after Completion from
                    claiming, representing or indicating his association in that
                    capacity with the Company during the continuance of that
                    employment and in accordance with the terms of his service
                    agreement.

              (b)   Me restrictions in clauses 9.3(c) and 9.4 shall not apply:

                    (i)   in respect of any of the Confidential Information
                          which is in or becomes part of the public domain,
                          other than through a breach of the obligations of
                          confidentiality set out in this Agreement; or

                    (ii)  to any of the Executive Shareholders to the extent
                          that he is required to disclose Confidential
                          Information by any applicable law, governmental order,
                          decree, regulation, licence or rule or pursuant to the
                          regulations of any securities exchange or regulatory
                          or govenmental body to which he is subject provided
                          that in the event that any Executive

                                       25
<PAGE>   29

                    Shareholder receives such an order or decree the Executive
                    Shareholder shall forthwith notify the Purchaser of that
                    fact and if objections are permitted under such order or
                    decree provide the Purchaser with sufficient information to
                    enable the Purchaser to object to the making of such order
                    or decree.

         9.6  Each of the Executive Shareholders agrees with the Purchaser that
              the restrictive covenants in clauses 9.1 to 9.3 inclusive are
              reasonable and necessary for the protection of the value of the
              Sale Shares and the Company and that having regard to that fact
              those covenants do not work harshly on him.

         10   PRE-COMPLETION MATTERS INCLUDING CONDITION PRECEDENT AND RELATED
              UNDERTAKING)

         10.1 The obligations of the parties for the sale and purchase of the
              Sale Shares under this Agreement are conditional on the fulfilment
              of the Conditions on or before the Key Date.

         10.2 If all the Conditions are not fulfilled an or before the Key Date,
              all obligations of the parties under this Agreement shall
              terminate (except those under clauses 12 and 21.2, which shall
              remain in force) and no party shall have any claim against the
              others under them except in respect of any breach of any of those
              clauses. Each of the parties undertakes to the other that they
              shall not at any time thereafter use, whether on their own behalf
              or on behalf of any third party, or divulge to any third party,
              any Confidential Information relating to that other party.

         10.3 The parties shall procure that pending Completion or the earlier
              termination of the obligations of the parties under this Agreement
              pursuant to clause 10.2:

              (a)   each of the parties and their authorised representatives are
                    given full access to the Properties or the Purchaser's
                    Properties (as the case may be) and to all the books and
                    records of the Company or the Purchaser and that the
                    directors and employees of the Company or the Purchaser are
                    instructed to give promptly all such information and
                    explanations with respect to the business and affairs of the
                    Company or the Purchaser as the other party or their
                    authorised representatives may reasonably request;

              (b)   the other of them is provided with copies of all board
                    papers and management reports and accounts relating to the
                    Company or the Purchaser (as the case may be) together with
                    such other information relating thereto as the other of them
                    may reasonably require;

              (c)   no material decision concerning the business, assets or
                    affairs (or any part thereof) of either of them is taken
                    without the prior written consent of the other; and

              (d)   the Company complies with the restrictions in part C of
                    Schedule 6 and during the said period the Purchaser
                    undertakes to comply with the restrictions in part D of
                    schedule 6.

                                       26

<PAGE>   30

         10.4 Each of the parties hereby undertakes with the others that they
              will forthwith give notice in writing to the other of any event,
              matter or circumstance of which it becomes aware on or after
              the execution of this Agreement and before Completion and which:

              (a)   is an Event of Default; or

              (b)   is a Relevant Breach, or would (whether with the giving of
                    notice, lapse of time or otherwise) constitute a
                    Relevant Breach upon the Warranties being repeated
                    immediately prior to Completion, or

              (c)   otherwise constitutes a breach of this Agreement by either
                    of the parties.

         11   CONTINUING, EFFECTS OF AGREEMENT

         11.1 No restriction in this Agreement or in any other agreement or
              arrangement of which it forms part which is registrable under the
              Restrictive Trade Practices Act 1976 or 1977 ("the Acts") shall
              come into effect until the day after particulars of this Agreement
              and any of the other agreement or arrangement of which it forms
              part have been furnished to the Director General of Fair Trading
              in accordance with the Acts, unless this Agreement and any other
              agreement or arrangement of which it forms part falls within any
              of the classes of non-notifiable agreements established by
              statutory instrument under the Acts.

         11.2 Subject to clause 11.1 all of the provisions of this Agreement
              shall so far as they are capable of being performed or observed
              continue in full force and effect notwithstanding Completion
              except in respect of those matters then already performed and
              Completion shall not constitute a waiver of any of the Purchaser's
              or Executive Shareholders rights in relation to this Agreement.

         12   ANNOUNCEMENTS

         12.1 Save as (but only to the extent) expressly required by law, all
              announcements or circulars by, of or on behalf of any of the
              parties hereto and relating to the sale and purchase hereunder
              shall be in terms to be approved in writing by the parties in
              advance of issue.

         13   INITIAL PUBLIC OFFERING

         13.1 The parties acknowledge that it is the present intention of the
              Purchaser to seek a listing on a recognised securities exchange in
              conjunction with an Initial Public Offering ("IPO"). The parties
              further acknowledge, however, that the decision to proceed with an
              1PO and the timing of such decision will remain subject to the
              sole discretion of the Purchaser having regard to such matters as
              market conditions.

         14   RELEASES, WAIVERS ETC., BY THE PARTIES

         14.1 The parties may, in their discretion, in whole or in part release,
              compound or compromise, or waive their rights or grant time or
              indulgence in respect of, any liability to them under this
              Agreement and the Purchase may do so as regards any one or more of
              the Executive Shareholders under that liability without in any way

                                       27

<PAGE>   31

              prejudicing or affecting the liability of or their rights against
              any other of them in respect of the same or a like liability,
              whether joint and several or otherwise.

         14.2 Subject to clause 14.3, neither the single or partial exercise or
              temporary or partial waiver by the parties of any right, nor the
              failure by the parties to exercise in whole or in part any right
              or to insist on the strict performance of any provision of this
              Agreement, nor the discontinuance, abandonment or adverse
              determination of any proceedings taken by a party to enforce any
              right or any such provision shall (except for the period or to the
              extent covered by any such temporary or partial waiver) operate as
              a waiver of, or preclude any exercise or enforcement or (as the
              case may be) further or other exercise or enforcement by a party
              of, that or any other right or provision.

         14.3 All references in this clause 14 to:

              (a)   any right shall include any power, right or remedy conferred
                    by this Agreement on, or provided by law or otherwise
                    available to a party; and

              (b)   any failure to do something shall include any delay in doing
                    it.

         14.4 The giving by a party of any consent to any act which by the terms
              of this Agreement requires such consent shall not prejudice the
              right of a party to withhold or give consent to the doing of any
              similar act.

         14.5 Without prejudice to the generality of clause 14.1, if any
              Executive Shareholder shall for any reason not be liable hereunder
              in respect of any Relevant Breach or be released by the Purchaser
              from any such liability, the other Executive Shareholders shall
              remain liable in full in respect of such breach notwithstanding
              and without prejudice to their right to a contribution.

         15   NOTICES

         15.1 Except as otherwise provided in this Agreement, every notice under
              this Agreement shall be in writing and shall be deemed to be duly
              given if it (or the envelope containing it) identifies the party
              to whom it is intended to be given as the addressee and:

              (a)   it is delivered by being handed personally to the addressee
                    (or, where the addressee is a corporation, any one of its
                    directors or its secretary); or

              (b)   it is delivered by being left in a letter box or other
                    appropriate place for the receipt of letters at the
                    addressee's authorized address; or

              (c)   the envelope containing the notice is properly addressed to
                    the addressee at his authorised address and duly posted by
                    the recorded delivery service (or by airmail registered post
                    if overseas) or the notice is duly transmitted to that
                    address by facsimile transmission;

              and, in proving the giving or service of such notice, it shall be
              conclusive evidence to prove that the notice was duly given within
              the meaning of this clause 15.

                                       28

<PAGE>   32

         15.2 A notice sent by post (or the envelope containing it) shall not be
              deemed to be duly posted for the purposes of clause 15.1(c) unless
              it is put into the post properly stamped or with all postal or
              other charges in respect of it otherwise prepaid.

         15.3 For the purposes of this clause 15 the authorised address of each
              of the Executive Shareholders shall be the address of the Vendors'
              Solicitors or (in the case of notices transmitted by facsimile
              transmission) the facsimile number of the Vendors' Solicitors and
              the authorised address of (respectively) the Purchaser and the
              Company shall be the address of its registered office for the time
              being or (in the case of notices transmitted by facsimile
              transmission) its facsimile number at that address.

         15.4 Any notice duly given within the meaning of clause 15.1 shall be
              deemed to have been both given and received:

              (a)   if delivered in accordance with clause 15.1(a) or
                    15.1(b) on such delivery;

              (b)   if it is duly posted or transmitted in accordance with
                    clause 15.1(c) by any of the methods therein specified, on
                    the second (or, when sent airmail, fifth) business day after
                    the day of posting or (in the case of a notice transmitted
                    by facsimile transmission) upon receipt by the sender of the
                    correct transmission report.

         15.5 For the purposes of this clause 15 "notice" shall include any
              request, demand, instruction, communication or other document.

         16   TIME

         16.1 Time shall be of the essence of this Agreement as regards any
              time, date or period whether as originally fixed or as altered in
              any manner provided herein.

         17   ENTIRE AGREEMENT

         17.1 This Agreement (together with all documents which are required by
              its terms to be entered into by the parties or any of them and any
              terms of any other documents which this Agreement expressly
              preserves and all other documents which are in the agreed form and
              are entered into by the parties or any of them in connection with
              this Agreement) sets out the entire agreement and understanding
              between the parties in connection with the Company and the sale
              and purchase of the Sale Shares and other matters described in it
              and supersedes in its entirety the provisions of the letter of
              intent made between the parties dated 27th October 1997. Each of
              the parties acknowledges (and the Executive Shareholders confirm
              on behalf of the Vendors) that on agreeing to enter into this
              Agreement it has not relied on any warranties, representations or
              undertakings except those expressly set out in this Agreement.

         18   ALTERATIONS

         18.1 No purported alteration of this Agreement shall be effective
              unless it is in writing, refers specifically to this Agreement and
              is duly executed by each party hereto.

                                       29

<PAGE>   33

         19   SEVERABILITY

         19.1 Each provision of this Agreement is severable and distinct from
              the others. The parties intend that every such provision shall be
              and remain valid and enforceable to the fullest extent permitted
              by law. If any such provision is or at any time becomes to any
              extent invalid, illegal or unenforceable under any enactment or
              rule of law, it shall to that extent be deemed not to form part of
              this Agreement but (except to that extent in the case of that
              provision) it and all other provisions of this Agreement shall
              continue in full force and effect and their validity, legality and
              enforceability shall not be thereby affected or impaired,
              provided that the operation of this clause would not negate the
              commercial intent and purpose of the parties under this Agreement.

         19.2 If any provision of this Agreement is illegal or unenforceable as
              a result of any time period specified herein being in excess of
              that permitted by a regulatory, authority, that provision shall
              take effect with the substitution of a shorter period acceptable
              to the relevant regulatory authorities subject to it not negating
              the commercial intent of the parties under this Agreement.

         20   COUNTERPARTS

         20.1 This Agreement may be entered into in the form of two or more
              counterparts each executed by one or more of the parties but,
              taken together, executed by all and, provided that all the parties
              so enter into the Agreement, each of the executed counterparts,
              when duly exchanged or delivered, shall be deemed to be an
              original, but, taken together, they shall constitute one
              instrument.

         21   PAYMENT OF COSTS

         21.1 Subject to clause 21.2 the Purchaser shall be responsible for the
              payment at Completion of the legal and other costs of both parties
              incurred solely in relation to the negotiation, preparation and
              completion of this Agreement and all ancillary documents provided
              that the Purchaser shall not be obliged to pay the Vendors' costs
              to the extent they exceed $100,000.

         21.2 In the event that Completion does not occur, each of the parties
              shall be responsible for his or its respective legal and other
              costs incurred in relation to the negotiation, preparation and
              completion of this Agreement and all ancillary documents.

         22   SUCCESSORS AND ASSIGNS

         22.1 This Agreement shall be binding on and shall enure for the
              benefit of the successors in title and personal representatives of
              each party.

         22.2 Save as provided in clause 22.3, none of the parties hereto shall
              be entitled to assign the benefit of any rights under this
              Agreement.

         22.3 The benefit of this Agreement (including the Warranties and the
              Purchaser's Warranties) shall be freely assignable by the parties
              to a Permitted Transferee and, in the event of any such
              assignment, all references in this Agreement to the Purchaser or
              the Executive Shareholders as the case may be shall be deemed to
              include their assigns. If any assignee ceases to satisfy the
              definition of "Permitted Transferee" then

                                       30

<PAGE>   34

              the assigning party share procure that the benefit of the
              Agreement is re-assigned to them immediately.

         22.4 Save as provided in clause 22.3, to the extent that this Agreement
              enures for the benefit of any person who is not a party to this
              Agreement, no such person shall have any right of action
              against any of the parties.

         23   APPLICABLE LAW AND SUBMISSION TO JURISDICTION

         23.1 This Agreement shall be governed by and construed in accordance
              with English law and the parties hereby submit to the
              non-exclusive jurisdiction of the High Court of Justice in
              England for the purpose of hearing and determining any suit,
              action or proceedings which may arise out of or in connection with
              this Agreement.

         IN WITNESS whereof this Agreement has been entered into the day and
         year first above Written.

                                       31<PAGE>   1
                                                                   EXHIBIT 10.24

                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT (the "Agreement") is made and entered
into as of April 22, 1998, by and among GENOMIC SOLUTIONS INC., a Delaware
corporation ("Purchaser"), INSIGHT BIOMEDICAL IMAGING, INC., a Delaware
corporation ("Seller"), and SANDRA REEVES and NIGEL FLEMING, the majority
shareholders of Seller (collectively, the "Shareholders").

                                    RECITALS:

         A. Among other things, Seller is engaged in the business of designing,
developing, manufacturing, marketing, selling and servicing cellular based
research and clinical instrumentation products worldwide (the "Meridian
Business").

         B. Seller desires to sell, and Purchaser desires to purchase, all of
the operating assets of Seller now or previously used or usable which are in
connection with the operation of the Meridian Business, and certain other
intangible assets associated with the Meridian Business, for the consideration
and upon the terms and conditions set forth below. Seller acquired all such
assets from Meridian Instruments, Inc.

         NOW, THEREFORE, for and in consideration of the foregoing Recitals, the
mutual covenants and agreements contained herein and other good and valuable
consideration, the receipt and adequacy of which are hereby mutually
acknowledged, the parties agree as follows:

                                    ARTICLE I

         PURCHASE AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES

         1.1 PURCHASE AND SALE OF MERIDIAN ASSETS. Subject to all of the terms
and conditions contained in this Agreement, and except as provided below, on the
Closing Date (defined below), Seller shall sell, transfer, assign and deliver to
Purchaser, and Purchaser shall purchase from Seller, all assets and properties
of every kind and nature, real and personal, tangible and intangible, wherever
situated, owned by Seller or in which Seller has any right or interest, that are
used or usable in connection with the Meridian Business (all such assets and
properties being referred to in this Agreement as the "Meridian Assets"),
including, without limitation, the following:

                  (a) Inventories. All inventories of whatever nature or kind
         relating to the Meridian Business;

                  (b) Equipment and Other Personal Property. All equipment,
         machinery, furniture and fixtures, motor vehicles, office machines,
         maintenance and office supplies, signs, leasehold improvements, and all
         other tangible personal property ("Personal Property") used or usable
         in connection with the Meridian Business, including, without
         limitation, the assets listed on the attached Schedule 1.1(b);

<PAGE>   2
                  (c) Business Records. To the extent they relate to the
         Meridian Business or the Meridian Assets, all data bases, sales and
         business records, inventory records, product specifications,
         correspondence, maintenance, operating and production records,
         personnel records of Seller's employees, credit records (or copies
         thereof) of customers and vendors, customer and vendor lists, marketing
         or other studies, cost and pricing information, and originals or copies
         of all books, records and other documents which relate to the Meridian
         Business or the Meridian Assets;

                  (d) Licenses. To the extent permitted under applicable law or
         regulation, all Licenses (defined below);

                  (e) Intangibles. All right, title and interest, if any, which
         Seller has in any intangible property, rights or claims relating to the
         Meridian Business or to the Meridian Assets to be transferred,
         including, without limitation, the non-exclusive transferable worldwide
         license under U.S. Patent Re 34, 214 granted by Molecular Dynamics,
         Inc., all right, title and interest, if any, which Seller has in the
         names "Meridian" and "Insight", and all variations of those names,
         provided that this Section shall not preclude Seller's use of "Insight"
         in its corporate name, goodwill to the extent the same exists, patents
         and applications for patents, copyrights (including registrations) and
         applications for copyrights, trademarks and applications for
         trademarks, service marks and applications for service marks, logos and
         other commercial symbols, trade names and the like, and interests
         thereunder, telephone numbers, prepaid expenses, credits, claims for
         refund and other prepaid items, and all other property and rights used
         or usable in connection with the Meridian Business, of whatever kind or
         nature, whether or not specifically referred to in this Agreement
         ("Intangibles");

                  (f) Accounts Receivable. All accounts, customer accounts and
         notes receivable relating to the Meridian Business, which have been
         booked after March 24, 1998, including without limitation, those
         described on the attached Schedule 1.1(f) (the "Purchased Accounts
         Receivable").

                  (g) Meridian Business Contracts, Leases and Agreements. All
         agreements, leases and service contracts (i) to which Seller is a
         party, to which the Meridian Assets are subject or which relate to the
         Meridian Business, and (ii) which are listed on the attached Schedule
         1.1(g) (the "Assumed Meridian Business Contracts");

                  (h) Warranty Rights. All third party warranties in favor of
         Seller relating to the Meridian Business or the Meridian Assets,
         whether express or implied, and claims arising under warranties,
         representations and guaranties made to Seller in connection with the
         Meridian Business;

                  (i) Litigation Claims. All claims and rights concerning any
         litigation in which, in connection with or with respect to the Meridian
         Business, Seller is a claimant; and

                                       2
<PAGE>   3

                  (j) Cash. All cash received by Seller to the extent set forth
         in Section 13.12.

         1.2 EXCLUDED ASSETS. Notwithstanding anything to the contrary contained
in Section 1.1 above, the following assets (collectively, the "Excluded Assets")
are not being sold by Seller to Purchaser and shall not be included as part of
the Meridian Assets to be conveyed:

                  (a) Assets Not Related to the Meridian Business. Any and all
         assets not owned by Seller, or in which Seller does not have an
         interest, and any and all assets whether or not owned by Seller, not
         used or usable in connection with the Meridian Business;

                  (b) Subsidiary. Seller's interest in Meridian Instruments Far
         East ("MIFE") and any and all assets and liabilities associated in any
         way with MIFE;

                  (c) Cash on Hand. All cash on hand, except to the extent
         contemplated in Section 13.12;

                  (d) Securities. All marketable securities of whatever nature
         or kind;

                  (e) Corporate Records. The minute books, stock books,
         corporate seal and other corporate records of Seller relating to its
         organization and existence;

                  (f) Excluded Contracts. Any and all oral or written contracts,
         leases or agreements other than the Assumed Meridian Business Contracts
         (the "Excluded Meridian Business Contracts");

                  (g) Excluded Inventory. Those items listed on the attached
         Schedule 1.2(g).

                  (h) Tax Returns. All tax returns of Seller and all tax refunds
         due Seller from any governmental agency;

                  (i) Employee Benefit Plans. The Employee Benefit Plans
         (defined below) and, any other employee benefit plans of Seller; and

                  (j) Other Excluded Assets. Those items listed on the attached
         Schedule 1.2(j).

         1.3 ASSUMPTION OF LIABILITIES. Purchaser shall not assume, or purchase
the Meridian Assets subject to, and Purchaser shall not be liable for, any
liabilities of Seller, regardless of nature, type or kind, whether matured or
contingent, except for those obligations of Seller arising from and after the
Closing Date with respect to (i) the Assumed Meridian Business Contracts, and
(ii) Seller's trade payables that are both directly related to the Meridian
Business and listed on the attached Schedule 1.3. The assumption by Purchaser of
any of Seller's liabilities shall in no way expand the rights or remedies of any
third party against Purchaser or Seller as compared to the rights and remedies
which such third party would have had against Seller had Purchaser

                                       3
<PAGE>   4

not assumed the liabilities. Seller shall perform, pay and discharge when due
all of its obligations and liabilities other than those which Purchaser has
specifically agreed to assume pursuant to this Section 1.3, as well as any other
known, contingent or unknown liabilities of Seller.

                                   ARTICLE II

                     PURCHASE PRICE, PAYMENT AND ALLOCATION

         2.1 CONSIDERATION. For and in consideration of the Meridian Assets,
Purchaser shall pay to Seller Six Hundred Fifty Thousand Dollars ($650,000) (the
"Purchase Price"), as follows: (i) Purchaser shall pay to the parties listed on
the attached Schedule 2.1 (the "Secured Creditors") the amounts set forth
opposite their respective names; and (ii) Purchaser shall pay the balance of the
Purchase Price to Seller, by certified check or wire transfer of immediately
available funds at the Closing (defined below). For all purposes relevant to
this Agreement, all amounts paid to the Secured Creditors shall be deemed to
have been paid by Purchaser to Seller and then by Seller to such Secured
Creditors. Contemporaneously with the payments to the Secured Creditors, such
Secured Creditors shall deliver to Purchaser releases or discharges, in form and
content acceptable to Purchaser, of their Liens on or in the Meridian Assets as
identified in Schedule 3.7.

         2.2 PURCHASE PRICE ALLOCATION. The Purchase Price shall be allocated
among the Meridian Assets in the manner set forth on the attached Schedule 2.2.
Seller and Purchaser agree that the consideration payable for the Meridian
Assets is set forth on the attached Schedule 2.2 and is consistent with their
negotiations and agreement; and Seller and Purchaser shall each act in a manner
consistent with Schedule 2.2 in (i) filing Internal Revenue Form 8594, captioned
"Asset Acquisition under Section 1060"; and (ii) paying sales and other transfer
taxes and making any and all other tax filings in connection with the purchase
and sale of the Meridian Assets pursuant to this Agreement.

                                   ARTICLE III

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

         Seller and the Shareholders understand that each of the following
representations, warranties and covenants are material and have been and will be
relied on by Purchaser in connection with the consummation of the transactions
contemplated in this Agreement. Seller and the Shareholders jointly and
severally represent, warrant and covenant to Purchaser that the statements
contained in this Article III are true, correct and complete in all respects as
of the date of this Agreement and will be true, correct and complete in all
respects as of the Closing Date (as though made on the Closing Date); provided,
however, that the representations and warranties of the Shareholders are limited
to Sections 3.1, 3.2, 3.22. and 3.23 only, to reflect the scope of their limited
involvement with the Seller:

         3.1 ORGANIZATION. Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. Seller
has full corporate power and authority,

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<PAGE>   5

and all franchises, licenses and permits, necessary to own, lease and operate
its respective properties and assets and to carry on its businesses as presently
conducted. The attached Schedule 3.1 sets forth each jurisdiction in which the
Seller is licensed or qualified to do business as a foreign corporation. Seller
is duly qualified to do business as a foreign corporation in all jurisdictions
where the nature of its business makes such qualification necessary. Except as
set forth on Schedule 3.1, Seller has no wholly or partially owned subsidiaries,
and Seller does not own or control, in whole or in part, any other corporation,
association, limited liability company, partnership or other business entity or
association.

         3.2 POWER AND AUTHORITY. Seller and the Shareholders have, and on the
Closing Date will have, all requisite power and authority to enter into, carry
out and perform their obligations under this Agreement and all other instruments
and agreements contemplated in this Agreement. The execution of this Agreement
and the consummation of the transactions contemplated herein have been duly
authorized and approved by Seller's Board of Directors and shareholders in
accordance with applicable law and Seller's constituent documents. This
Agreement constitutes, and all agreements and instruments contemplated hereby
when executed and delivered in accordance with the terms of this Agreement will
constitute, valid and binding obligations of Seller and the Shareholders,
enforceable in accordance with their respective terms, except to the extent
limited by bankruptcy, insolvency, and other laws of general application
relating to or affecting the enforcement of creditors' rights and general equity
principles.

         3.3 ABSENCE OF VIOLATIONS. Neither the execution, delivery, performance
or compliance of or with this Agreement or any other agreements contemplated
herein, nor the consummation of the transactions contemplated herein, will (i)
violate, conflict with, or constitute a default or breach of Seller's
Certificate of Incorporation or bylaws, or other constituent documents; (ii)
constitute a violation by Seller or the Shareholders of any law, rule,
regulation, ordinance, order, writ, injunction, decree or judgment applicable to
Seller or the Shareholders and affecting the Meridian Assets or Meridian
Business; (iii) result, or with the passage of time will result, in any breach
or violation of, or be in conflict with or constitute a default under, or give
to others any rights of termination or cancellation of, or accelerate the
performance required by or maturity of, any document or instrument binding on or
affecting Seller or the Shareholders, the Meridian Assets or the Meridian
Business, subject to obtaining the consents set forth on the attached Schedule
3.22; or (iv) result in the creation of any lien, charge or encumbrance on any
of the Meridian Assets.

         3.4 FINANCIAL STATEMENTS. The attached Schedule 3.4 consists of
Seller's compiled balance sheets and the related statements of operations,
retained earnings and cash flows for Seller for its first fiscal year ended
December 31, 1997, issued by management (the "Annual Financial Statements"), and
the pro forma interim financial statements for the quarter ended March 31, 1998
(the "Existing Pro Forma Interim Statements"). Seller shall promptly deliver not
later than the 5th business day of each next succeeding month, the month-end
financial statements of Seller beginning with the month ended April 30, 1998 and
continuing through the month preceding the month in which the Closing Date
occurs, each certified by Seller's Chief Financial Officer (the "Monthly
Statements" and together with the Existing Pro Forma Interim Statements, the
"Interim Statements", and together with the Existing Pro Forma Interim

                                       5
<PAGE>   6

Statements and the Annual Financial Statements, the "Statements"). The Annual
Financial Statements are true, correct and complete in all material respects,
present fairly and accurately the financial position of Seller as at such dates
and the results of its operations and earnings for the periods indicated
thereon, and have been prepared in accordance with generally accepted accounting
principles consistently applied throughout the periods indicated ("GAAP"). The
Interim Statements have been or will be prepared in accordance with GAAP, except
to the extent disclosed in the Existing Pro Forma Interim Statements. The
Statements make full and adequate provisions for all obligations, liabilities or
commitments, whether fixed or contingent as of the respective periods described
in them.

         3.5 NO UNDISCLOSED LIABILITIES OR CHANGES. Except as disclosed on the
attached Schedule 3.5 or reflected in the Statements, and except for current
liabilities incurred by Seller in the ordinary course of the Meridian Business
since March 24, 1998, Seller has not incurred any debts, liabilities or
obligations of any nature or kind, whether absolute, accrued, contingent or
otherwise, and whether due or to become due, including without limitation, any
debts, liabilities (including tax liabilities due or to become due) or
obligations relating to or arising out of any act, transaction, circumstance or
state of facts which occurred or existed on or before the date as of which this
representation is made. Seller is not aware of any existing, proposed or
threatened change which could result in a material adverse change to Seller, the
Meridian Business, the Meridian Assets or the future prospects of the Meridian
Business. Since March 24, 1998, there has not occurred any material adverse
change in the Meridian Assets, the Meridian Business or the liabilities,
business, financial condition, operations, results of operations or future
prospects of Seller or the Meridian Business, and from such date through the
Closing Date, Seller has and will maintain the Meridian Assets in a prudent
manner in the ordinary course, and will carry on the Meridian Business in the
ordinary course, consistent with past practices. Except as set forth in Schedule
3.5, Seller has not: (i) permitted or suffered any material adverse change in
its Meridian Assets, other than sales of inventory, if any, in the ordinary and
normal course of the Meridian Business consistent with past practices; (ii)
suffered any material change, destruction or loss adversely affecting the
Meridian Assets; (iii) suffered any event or condition of any character, which
materially and adversely affects the Meridian Business or Meridian Assets; (iv)
entered into any employment, bonus, deferred compensation, incentive
compensation, service award, pension, retirement or other benefit arrangement,
other than employment arrangements entered into in the ordinary course of the
Meridian Business and terminable "at will" by the Seller or the employee; (v)
entered into any, or amended or terminated any existing, material contract,
agreement, franchise, permit or license concerning or relating to the Meridian
Business or the Meridian Assets; (vi) incurred any material debts or obligations
or mortgaged, pledged or subjected to lien any of the Meridian Assets or its
properties, or entered into any commitment to borrow money or guaranteed any
debts or obligations of any person or entity, which will encumber the Meridian
Assets after conveyance to the Purchaser or will otherwise be binding on the
Purchaser; (vii) sold or transferred any of the Meridian Assets or its
properties, except in the ordinary course of the Meridian Business, or canceled,
compromised or waived any debts, claims or rights of material nature; (viii)
suffered any strike, unauthorized work stoppage, organizing attempts,
grievances, or any like activities, affecting any of its employees; (ix)
discharged or satisfied any lien or encumbrance, or paid any obligation or
liability, except current liabilities becoming due in the ordinary course of the
Meridian Business; (x) terminated or modified any

                                       6
<PAGE>   7

material agreement, right or license benefiting Seller or the Meridian Business;
(xi) revalued its assets; (xii) instituted, settled or agreed to settle any
litigation, action or proceeding before any court or governmental body
materially affecting the Meridian Business or the Meridian Assets; (xiii) in
connection with the Meridian Business, failed to replenish its inventories, if
any, and supplies in a normal and customary manner or made any purchase
commitment in excess of normal, ordinary and usual requirements, or made any
material change in its selling, pricing, advertising or personnel practices;
(xiv) made any change in accounting principles or methods, or in the manner of
keeping books, accounts and records of Seller; (xv) entered into any transaction
concerning or relating to the Meridian Business other than in the ordinary
course of the Meridian Business, other than this Agreement; (xvi) entered into
any agreement or made any payment of any nature, directly or indirectly, to any
shareholder, director, officer, employee or affiliate of Seller, except as
compensation for services performed in amounts consistent with past practices or
goods purchased in the ordinary course of Meridian Business; (xvii) made any
distributions of any nature whatsoever directly or indirectly to any person or
firm who is a shareholder or owner of Seller; or (xviii) entered into any
agreement or made any commitment to do any of the things described in clauses
(i) through (xvii) above. Further, without the prior written approval of
Purchaser, from the date hereof through the Closing Date, Seller shall not,
whether by act or omission, voluntarily or involuntarily, cause or allow any of
the events or things described in clauses (i) through (xviii) above to occur.

         3.6 TAX MATTERS. Seller has duly filed all tax returns and reports
required to be filed by it, including, where applicable, all federal, foreign,
state, county and local income, gross receipts, excise, import, property,
franchise, ad valorem, license, sales, use, and withholding tax reports and
returns. Seller has filed all reports required by law or regulation to be filed
and has duly paid, or accrued on its books of account and will pay when due, all
duties and charges due or assessed against it, the Meridian Business or the
Meridian Assets. There are not now, nor on the Closing Date will there be, any
assessments, charges, paybacks or obligations requiring payment of any nature or
description against any of the Meridian Assets which remain unpaid, except for
current taxes not yet due or payable and except for the liabilities to be
assumed by Purchaser pursuant to Section 1.3.

         3.7 TANGIBLE PROPERTY. Seller has good and marketable title to and owns
each item of tangible Personal Property used in the Meridian Business or
reflected on Seller's books and records as owned by it and used in connection
with the Meridian Business, free and clear of all title defects and objections,
security interests, liens, charges and encumbrances of any nature whatsoever
("Liens") other than those Liens set forth on the attached Schedule 3.7, all of
which will be released at or prior to the Closing. Seller will convey to
Purchaser all Personal Property necessary for the conduct of the Meridian
Business as presently conducted, free and clear of all Liens, and Schedule
1.1(b) attached hereto contains a true and complete list of all Personal
Property used in the operation of the Meridian Business as presently conducted.
Except as disclosed on Schedule 3.7, Seller does not lease any item of tangible
Personal Property used in the Meridian Business to or from any third party (all
leased tangible Personal Property is referred to in this Agreement as the
"Leased Personal Property" and, together with the Leased Real Property (defined
below), the "Leased Property").

                                       7
<PAGE>   8

         3.8 REAL PROPERTY OWNED. Seller does not own, and has never owned, in
whole or in part, any real property which is or was used, in any way, in
connection with the Meridian Business.

         3.9 REAL PROPERTY LEASED. The attached Schedule 3.9 lists and briefly
describes all real properties leased or subleased to Seller and used in
connection with the operation of the Meridian Business (the "Leased Real
Property"). Except as set forth on Schedule 3.9, no property insurer or similar
body has made any recommendations with respect to any parcel of Leased Real
Property which have not been complied with, and all structures on the Leased
Real Property meet all qualifications for "highly protected risk" classification
for fire insurance purposes. Except as set forth on Schedule 3.9, and except for
the properties identified in Schedule 3.9, Seller has never leased or subleased
any real property for use in connection with the operation of the Meridian
Business. Seller has delivered to Purchaser true, correct and complete copies of
the leases and subleases listed on the attached Schedule 3.9. Except as
disclosed on Schedule 3.9, all of the Meridian Assets are located at the Leased
Real Property. Except as set forth on the attached Schedule 3.9, with respect to
each such lease or sublease:

                  (a) the lease or sublease is legal, valid, binding,
         enforceable and in full force and effect;

                  (b) the lease or sublease will continue to be legal, valid,
         binding, enforceable and in full force and effect on identical terms
         following the Closing;

                  (c) neither Seller nor any other party to the lease or
         sublease is in breach or default, and no event has occurred which, with
         notice or lapse of time, could constitute such a breach or default or
         permit termination, modification or acceleration under the lease or
         sublease;

                  (d) no party to the lease or sublease has repudiated any of
         its provisions;

                  (e) there are no disputes, oral agreements or forbearance
         programs in effect as to the lease or sublease;

                  (f) Seller has not assigned, transferred, conveyed, mortgaged,
         deeded in trust or encumbered all or any portion of its interest in the
         leasehold or subleasehold;

                  (g) all facilities leased or subleased under the lease or
         sublease have been operated and maintained in accordance with
         applicable laws, rules and regulations;

                  (h) all facilities leased or subleased under the lease or
         sublease are supplied with utilities and other services necessary for
         the operation of such facilities; and

                  (i) all facilities leased or subleased under the lease or
         sublease are in good operating condition, and would not, with ordinary
         wear and tear, require major repair or replacement during the remainder
         of the lease term.

                                       8
<PAGE>   9

         3.10 INTELLECTUAL PROPERTY. The attached Schedule 3.10 sets forth a
complete and accurate list of all patents and applications for patents,
copyrights (including registrations) and applications for copyrights, trademarks
and applications for trademarks, service marks and applications for service
marks and logos and other commercial symbols used in connection with the
Meridian Business, and any and all assumed and corporate names (other than its
current name, as set forth in the preamble to this Agreement) under which Seller
has in the past conducted or is currently conducting business. Except as
disclosed on Schedule 3.10, Seller's use of the Intangibles is not governed by
or pursuant to a license or similar agreement from any third party. Seller owns
or has the right to use all of the Intangibles and all other rights necessary
for the operation of the Meridian Business. Seller has taken all reasonable
security measures to protect the secrecy, confidentiality, and value of its
Intangibles. With respect to each Intangible:

                  (a) Seller owns and possesses all right, title and interest in
         and to the Intangible;

                  (b) no charge, complaint, action, suit, proceeding, hearing,
         investigation, claim or demand has been instituted, is pending or, to
         Seller's knowledge, is threatened, which challenges the legality,
         validity, enforceability, use or ownership of the Intangible, except to
         the extent set forth in letters dated October 3, 1997 and December 3,
         1997 from Optiscan Inc., copies of which are attached to Schedule 3.10;

                  (c) Seller's use of such Intangible does not interfere with,
         infringe upon, misappropriate or otherwise conflict with the rights of
         others, and such item is not being interfered with, infringed upon,
         misappropriated or violated by others and is not subject to any
         outstanding judgment, order, decree, stipulation, injunction or charge;

                  (d) Seller has never received any charge, complaint, claim or
         notice of interference, infringement, misappropriation or violation
         with respect to the Intangible;

                  (e) no license, agreement or permission pertaining to the
         Intangible has been granted by Seller; and

                  (f) Seller has not agreed to indemnify any person or entity
         for or against any interference, infringement, misappropriation or
         violation with respect to the Intangible.

         3.11 INVENTORY. Seller's inventory of the Meridian Business is, and
Seller's work-in-process of the Meridian Business, when completed will be,
merchantable and fit for the purpose for which it was procured or manufactured,
useable and saleable in the ordinary course of the Meridian Business, and
carried on the Statements at an amount not in excess of net realizable value.

         3.12 CONTRACTS. The attached Schedule 3.12 is a true, complete and
accurate list of all material agreements, leases and contracts concerning or
relating to the Meridian Business and to which Seller is a party or to which the
Meridian Assets are subject, whether oral or written (the "Meridian Business
Contracts"). Except for the Meridian Business Contracts, Seller is not a

                                       9
<PAGE>   10

party to any material written or oral agreement, lease or contract affecting or
relating to the Meridian Assets or the Meridian Business in any way. The
Meridian Business Contracts constitute all material agreements, documents and
leases necessary for the operation of the Meridian Business as presently
conducted. Seller has delivered to Purchaser true and correct copies of all such
written Meridian Business Contracts and a comprehensive summary of all such
Meridian Business Contracts which are oral. All of the Assumed Meridian Business
Contracts are valid, in full force and effect, and enforceable in accordance
with their terms, and, except to the extent disclosed in Schedule 3.22, all of
the Assumed Meridian Business Contracts are assignable to Purchaser in
accordance with their terms. None of the Assumed Meridian Business Contracts
have been terminated or canceled by Seller or the other parties thereto with
respect to the current year or future years. Further, no party to an Assumed
Meridian Business Contract has limited its business relationship with Seller in
any material respect. No party to any Assumed Meridian Business Contract is in
material default, nor has any notice of default been received by Seller, and,
there exists no event, condition or occurrence which, after notice or lapse of
time, or both, could constitute a material default under any Assumed Meridian
Business Contract. Seller and every other party to the Assumed Meridian Business
Contracts have in all respects performed or are performing all obligations
required to be performed by them. This Agreement and the consummation of the
transactions contemplated herein will not violate or cause a default under any
of the Assumed Meridian Business Contracts.

         3.13 COMPLIANCE WITH LAWS; PERMITS AND LICENSES. Seller is in
compliance with all laws, rules, regulations and orders applicable to it, its
operation of the Meridian Business, its lease of the Leased Property or the
Meridian Assets. To Seller's knowledge, neither Seller's use of the Meridian
Assets, or its lease of the Leased Property, nor the operation of the Meridian
Business violates any laws, rules, regulations or orders. The attached Schedule
3.13 lists all federal, state, local and foreign governmental franchises,
permits, licenses or other authorizations held by Seller in connection with its
ownership or use of the Meridian Assets, its lease of the Leased Property or its
operation of the Meridian Business (the "Licenses"), true and correct copies of
all of which have been delivered to Purchaser. All of the Licenses are in full
force and effect, and except to the extent disclosed in Schedule 3.22, are
assignable or transferable to Purchaser in connection with the consummation of
the transactions contemplated in this Agreement. Seller has obtained all
permits, licenses, franchises and other authorizations necessary or desirable
with respect to, and has complied with all laws applicable to, the operation of
the Meridian Business, the ownership of the Meridian Assets or the lease of the
Leased Property, and Seller has not engaged in any activity which would cause
revocation or suspension of any of the Licenses. Except as set forth on Schedule
3.13, no action or proceeding looking to or contemplating the revocation or
suspension of any of the Licenses is pending or threatened.

         3.14 ACCOUNTS RECEIVABLE. The attached Schedule 1.1(f) contains a true
and complete list of all notes and accounts receivable of Seller which are
related to the Meridian Business and which have been booked since March 24,
1998. At the Closing, Seller shall deliver to Purchaser a true and complete list
of all notes and accounts receivable of Seller booked since March 24, 1998,
which are related to the Meridian Business. Except as set forth on the attached
Schedule 3.14, all Purchased Accounts Receivable of Seller are (i) to the extent
applicable, reflected properly on the Statements; (ii) valid receivables from
bona fide sales arising in the ordinary

                                       10
<PAGE>   11

course of business; (iii) subject to no defenses, set-offs or counterclaims; and
(iv) current and collectible in the ordinary course of business.

         3.15 INSURANCE. Except as set forth on the attached Schedule 3.15,
Seller has maintained and now maintains insurance with respect to the Meridian
Assets, the Leased Property and the Meridian Business, covering property damage
by fire or other casualty, and against such liabilities, claims and risks,
including, without limitation, product liability and workers compensation, and
in such amounts as is customary or appropriate in the industry. Schedule 3.15
contains a true and correct summary of all such insurance policies now
maintained by Seller setting forth the names of the insured and the insurer,
policy numbers, the types of coverage, premium payments or basis of payment,
deductible amounts and limits of coverage. Except as set forth on Schedule 3.15,
no such policy of insurance is subject to any deductible, self-insured
retention, retrospective rating agreement, indemnification agreement or any
other method or device by which the insured person is subject to all or any part
of the liability for any or all claims. True, correct and complete copies of all
insurance policies listed on Schedule 3.15 have been delivered to Purchaser. All
current insurance policies will be in full force and effect through the Closing
Date. Those policies scheduled to expire before the Closing Date will be renewed
or replaced with comparable coverage. Except as set forth in Schedule 3.15, no
event has occurred forming the basis of any present property, casualty,
fidelity, liability or workers compensation claim against Seller and relating to
the Meridian Assets, the Leased Property or the Meridian Business which has not
been reported to the appropriate carrier, is not fully covered by insurance or
which may reasonably be expected to exceed the available limits of liability of
the applicable insurance policy or policies. There has been no material breach
of any of Seller's obligations under any of the insurance policies referred to
in Schedule 3.15. All policies listed in Schedule 3.15 are carried in amounts
and with carriers sufficient to fulfill the requirements of the Meridian
Business and all laws or ordinances in effect in jurisdictions or locations
where the Seller conducts the Meridian Business and which require Seller to
maintain such coverage. Since acquiring the Meridian Assets, Seller has not been
denied insurance coverage or had insurance coverage revoked or rescinded by a
carrier in respect of the Meridian Assets, the Leased Property or the Meridian
Business. There are no outstanding requirements or recommendations by any
insurance company that issued any policy of insurance to Seller or by any board
of fire underwriters or other similar body or by any governmental authority
exercising similar functions which require or recommend any changes in the
conduct of the Meridian Business or any repairs or other work to be done with
respect to any of the Meridian Assets or the Leased Property. The attached
Schedule 3.15 contains all available loss runs setting forth all property,
general and products liability and workers compensation claim activity against
the Meridian Business, including the date and place of the occurrence, the
claimant's name, reserves, amounts paid, a brief description of the incident and
whether the claim is open or closed. Except as set forth on Schedule 3.15,
Seller does not know of any occurrence, circumstance, or event which could
reasonably be expected to result in any such claim.

         3.16 EMPLOYEES. The attached Schedule 3.16 contains a complete and
accurate list of: (i) all of Seller's employees who perform services or duties
in connection with the Meridian Business (the "Meridian Business Employees");
(ii) each such Meridian Business Employee's salary or hourly rate currently in
effect and annual bonus (last paid or payable), if any; (iii) all

                                       11
<PAGE>   12

fringe benefits or incentive paid or payable to each Meridian Business Employee
and the total value of such other fringe benefits and incentives (including the
number of each Meridian Business Employee's accrued but unused vacation days);
and (iv) any bonus or other payment earned but not yet paid such Meridian
Business Employee. From March 24, 1998 through the Closing Date, Seller has not
and will not increase the compensation payable or to become payable, or the
benefits provided to, any Meridian Business Employee except in the ordinary
course of business consistent with past practices and only after prior notice to
Purchaser. All accrued vacation, sick days and personal days due Seller's
Meridian Business Employees terminate as of the anniversary date of each such
Meridian Business Employee's employment with the Seller. Except as set forth on
the attached Schedule 3.16, all Meridian Business Employees are actually at
work, and no Meridian Business Employees are currently on leave of absence,
layoff, military leave, suspension, sick leave, workers' compensation, salary
continuance or short or long term disability or otherwise not actively
performing his or her work during all normally scheduled business hours. To
Seller's knowledge, there are no charges with respect to or relating to the
Meridian Business pending before the Equal Employment Opportunity Commission or
any agency relating to unlawful employment practices. To Seller's knowledge,
there are no internal claims of sexual harassment or any other form of
discrimination relating to the Meridian Business.

         3.17 EMPLOYEE BENEFITS. Except for the employee benefit plans listed on
Schedule 3.17 (collectively, the "Employee Benefit Plans"), Seller is not a
party to or bound by, and has no liability with respect to, any profit sharing,
stock option, pension, severance, retirement, stock purchase, hospitalization,
group or individual life, disability or health insurance, or employee welfare
benefit or similar plan or agreement. True and correct copies of each Employee
Benefit Plan and all documents pursuant to which the Employee Benefit Plans are
maintained, administered and funded have been delivered to Purchaser. Seller
shall timely pay all amounts due under or with respect to the Employee Benefit
Plans, and Seller does not, nor will it prior to the Closing Date, participate
in, contribute to, nor employ any persons covered by a multiemployer plan, as
defined in Section 3(37) of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA"), and has not, and will not, prior to the Closing Date,
incur any withdrawal liability within the meaning of Title IV of ERISA. Seller
has materially complied with, and will through and after the Closing Date,
continue to materially comply with the Employee Benefit Plans and all
requirements of law relating thereto and Purchaser shall have no liability or
responsibility whatsoever with respect to the Employee Benefit Plans. Seller has
no liability or reasonable expectation of liability with respect to (i) any
employee pension benefit plan (within the meaning of Section 3(2) of ERISA) that
is subject to Title IV of ERISA, (ii) any multiemployer plan (within the meaning
of Section 3(37) of ERISA), (iii) any employee benefit plan described in Section
4063 of ERISA or Section 413(c) of the Internal Revenue Code of 1986, as amended
and Treasury regulations promulgated thereunder, or (iv) any employee benefit
plan providing health, life or other welfare-type benefits to current, future or
former employees, independent contractors, directors or shareholders (and/or
their dependents), other than continuation coverage required pursuant to Part 6
of Subtitle B of Title I of ERISA or applicable state continuation coverage law.

                                       12
<PAGE>   13

         3.18 EMPLOYEE RELATIONS. Except as set forth on the attached Schedule
3.18, there are no written or oral collective bargaining or other employment
contracts, agreements or understandings with or affecting any Meridian Business
Employee. Except as set forth on the attached Schedule 3.18, hours worked by,
and payments made to, all Meridian Business Employees have been in compliance
with the Fair Labor Standards Act and other applicable federal, state or local
laws. Except as set forth on the attached Schedule 3.18, all payments determined
to be due from Seller on account of any Meridian Business Employee's work,
health or welfare insurance, under any agreement, whether oral or written, will
have been paid as of the Closing Date. Any amounts due to or with respect to all
Meridian Business Employees, including health and welfare or workers
compensation benefits, incurred prior to the Closing Date, which cannot be
determined on or before the Closing Date, shall be paid by Seller immediately on
determination, and Purchaser shall not, in any way, be deemed to be liable for
any such amounts. Except as set forth on the attached Schedule 3.18, there are
no vacation monies which have been earned by any Meridian Business Employee
under any agreement, whether oral or written, that have not been paid, nor are
there any severance payments which could become payable by Purchaser under the
terms of any oral or written agreement or commitment. Except for the Employee
Benefit Plans, Seller has no pension, profit sharing, retirement or similar
plan, or other employee benefit plan, in effect. Except as set forth on the
attached Schedule 3.18, (i) there is no unfair labor practice charge or
complaint concerning the Meridian Business or any Meridian Business Employee
pending before any governmental agency in any jurisdiction in which Seller
conducts business; (ii) there is no labor strike or material slowdown, work
stoppage, lockout or other collective labor action actually pending or
threatened against or affecting the Meridian Business, and Seller has not
experienced any strike or material slowdown, work stoppage, lockout or other
collective labor action in connection with the Meridian Business or by or with
respect to any Meridian Business Employees; (iii) there is no representation
claim or petition concerning the Meridian Business or any Meridian Business
Employee pending before any governmental agency in any jurisdiction in which
Seller conducts business, and no question concerning representation exists
relating to the Meridian Business Employees; (iv) there are no charges with
respect to or relating to the Meridian Business pending before the Equal
Employment Opportunity Commission or any agency in any jurisdiction in which
Seller conducts business responsible for the prevention of unlawful employment
practices; (v) there are no internal charges or claims against Seller concerning
the Meridian Business for sexual harassment or discrimination of any kind; (vi)
Seller has not received formal notice from any governmental agency responsible
for the enforcement of labor or employment laws of an intention to conduct an
investigation of the Meridian Business and no such investigation is currently in
progress; and (vii) to Seller's knowledge, no key Meridian Business Employee or
group of Meridian Business Employees has any plans to terminate employment with
Seller prior to Closing or to refuse employment with Purchaser after Closing.

         3.19 ENVIRONMENTAL, HEALTH AND SAFETY MATTERS. Seller has complied in
all material respects with all laws (including rules and regulations thereunder)
of all applicable federal, state, local and foreign governments, and their
respective agencies, concerning the environment, public health and safety and
employee health and safety, and no charge, complaint, action, suit, proceeding,
hearing, investigation, claim, demand or notice has been filed or commenced
against any of them alleging any failure to comply with any such law or
regulation,

                                       13
<PAGE>   14

including, limiting, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, the Federal Water Pollution
Control Act of 1972, the Clean Air Act of 1970, the Safe Drinking Water Act of
1974, the Toxic Substances Control Act of 1976, the Refuse Act of 1989, the
Emergency Planning and Community Right-to-Know Act of 1986, the Federal Resource
Conservation and Recovery Act, the Michigan Natural Resources and Environmental
Protection Act, each as amended, or any other law of any government or agency
concerning the storage, treatment, handling, transport, disposal, or the release
or threatened release of hazardous substances or hazardous materials, public
health and safety or pollution or protection of the environment (collectively,
the "Environmental Statutes"). Except as set forth on Schedule 3.19, no
environmental conditions have existed on the Leased Real Property while leased
by Seller, and no environmental conditions currently exist on the Leased Real
Property that violated or currently violate any Environmental Statue, where such
environmental conditions will result in Purchaser incurring any costs or
expenses for damages, fines, penalties, environmental remediation expenses or
environmental removal expenses as a result of actions or proceedings by any
federal, state or local environmental protection agency or department or by any
third party. Except as set forth on Schedule 3.19, there are no Hazardous
Substances, as defined, currently utilized at or, currently stored at the Leased
Real Property except for those for which permits have been obtained and are in
effect or are present in a manner or in quantities which do not require issuance
of permits under the Environmental Statutes. Except as set forth on Schedule
3.19, there is no contamination in soils or groundwater of or beneath the Leased
Real Property above levels that exceed remediation standards based on
regulations, guidance or risk-based criteria warranting studies or remediation
or both which would have any reasonable likelihood, singly or in the aggregate,
of materially adversely affecting the Meridian Assets or the Meridian Business.
"Hazardous Substances" shall mean any material presently listed, defined,
designated or classified as hazardous, toxic or radioactive, under any
Environmental Statute, whether by type or by quantity, and petroleum or any
derivative or by-product thereof.

         3.20 LITIGATION. Except as set forth on the attached Schedule 3.20,
there are no actions, suits, investigations or proceedings pending or, to
Seller's knowledge, threatened against Seller, the Meridian Business, the
Meridian Assets or the Leased Property, at law or in equity, before any federal,
state, municipal or other governmental department, commission, board, agency,
court or instrumentality which could affect, in any way, the Meridian Business,
the Meridian Assets or the Leased Property. Except as set forth on Schedule
3.20, Seller is not in default with respect to nor is in violation of any order,
writ, injunction or decree of any court or other governmental department,
commission, board, agency or instrumentality which relates or could relate to,
or the default with respect to which or the violation of which could affect, the
Meridian Business, the Meridian Assets or the Leased Property in any way.

         3.21 WARRANTIES. All products manufactured by Seller in connection with
the Meridian Business are in conformity with all applicable contractual
commitments and all express and implied warranties, and Seller has no liability
(and there is no basis for any present or future charge, complaint, action,
suit, proceeding, hearing, investigation, claim or demand against Seller giving
rise to any liability) for replacement of any such products or other damages in
connection therewith.

                                       14
<PAGE>   15

         3.22 CONSENTS. Except as set forth on the attached Schedule 3.22, no
consent, approval or authorization of, or designation, declaration or filing
with, any governmental authority or agency or any other third party is required
on the part of Seller or the Shareholders in connection with the valid execution
and delivery of this Agreement or the consummation of the transactions herein
contemplated.

         3.23 BROKERS' FEE. Neither Seller nor the Shareholders will be liable
for any business broker's fee or similar fees or expenses in connection with the
transaction contemplated in this Agreement.

         3.24 MERIDIAN ASSETS; TITLE. Upon consummation of the transactions
contemplated in this Agreement, Purchaser will acquire title to all of the
Meridian Assets, free and clear of all Liens. The Meridian Assets consist of all
properties and assets necessary for the operation of the Meridian Business as
presently conducted by Seller, and no officer, director, employee, shareholder
or affiliate of Seller owns or has an interest in any properties or assets
necessary for the operation of the Meridian Business as presently conducted.

         3.25 DISCLOSURE. No representation or warranty by the Seller or the
Shareholders contained in this Agreement and no statement contained in any
certificate or other instrument furnished or to be furnished pursuant hereto or
in connection with the transaction contemplated hereby, contains or will contain
any untrue statement of a material fact, or omits or will omit to state a
material fact, necessary in order to make any of the statements herein or
therein not misleading, or necessary in order to provide Purchaser with all
pertinent information regarding the Meridian Assets, the Leased Property and the
Meridian Business.

                                   ARTICLE IV

         REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER

         Purchaser understands that each of the following representations,
warranties and covenants are material and have been and will be relied on by
Seller in connection with the consummation of the transactions contemplated in
this Agreement. Purchaser represents, warrants and covenants to Seller that the
statements contained in this Article IV are true, correct and complete in all
respects as of the date of this Agreement and will be true, correct and complete
in all respects as of the Closing Date, as though made on the Closing Date:

         4.1 ORGANIZATION. Purchaser is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. Purchaser
has full corporate power and authority, and all franchises, licenses and
permits, necessary to own, lease and operate its respective properties and
assets and to carry on its businesses as presently conducted. The Purchaser is
licensed to do business as a foreign corporation in the State of Michigan.

         4.2 POWER AND AUTHORITY. Purchaser has, and at the Closing Date will
have, all requisite power and authority to enter into this Agreement and all
other instruments and agreements contemplated hereby, and to carry out and
perform its obligations under this

                                       15
<PAGE>   16

Agreement. The execution of this Agreement and the consummation of the
transactions contemplated in this Agreement have been, or by the Closing Date
will have been, duly authorized and approved by Purchaser's Board of Directors.
This Agreement constitutes, and all agreements and instruments contemplated
herein when executed and delivered in accordance with the terms of this
Agreement will constitute, valid and binding obligations of Purchaser,
enforceable in accordance with their respective terms, except to the extent
limited by bankruptcy, insolvency, and other laws of general application
relating to or affecting the enforcement of creditors' rights and general equity
principles.

         4.3 ABSENCE OF VIOLATIONS. Neither the execution, delivery or
performance of or compliance with this Agreement and all other agreements
contemplated herein, nor the consummation of the transactions contemplated
herein, will (i) violate, conflict with, or constitute a default or breach of
Purchaser's Certificate of Incorporation, bylaws or other constituent documents,
(ii) constitute a violation by Purchaser of any law, rule, regulation,
ordinance, order, writ, injunction, decree or judgment applicable to Purchaser,
or (iii) result in any breach or violation of, or be in conflict with or
constitute a default under, any mortgage, indenture, contract, agreement, lease,
or instrument in any way binding on Purchaser.

         4.4 BROKERS' FEE. Purchaser is not liable for any business broker's
fee, or similar fee or expense, in connection with the transaction contemplated
in this Agreement.

                                    ARTICLE V

         CONDITIONS PRECEDENT TO PURCHASER'S OBLIGATION AT CLOSING

         The obligation of Purchaser to consummate the transactions contemplated
in this Agreement at the Closing is subject to the satisfaction of all of the
following conditions, any of which may be waived in writing by Purchaser:

         5.1 ACCURACY OF REPRESENTATIONS. All representations and warranties
made by Seller and the Shareholders in this Agreement shall have been true and
correct in all material respects on the date of this Agreement and shall be true
and correct on the Closing Date with the same force and effect as if they had
been made on and as of said date.

         5.2 PERFORMANCE OF AGREEMENT. Seller and the Shareholders shall have
performed and complied with all of its obligations under this Agreement which
are to have been performed or complied with on or prior to the Closing Date, and
Seller and the Shareholders shall have executed and delivered all of the
documents contemplated in this Agreement, all of which shall be satisfactory to
Purchaser.

         5.3 CONSENTS AND WAIVERS. Seller shall have obtained all consents,
authorizations, approvals and waivers necessary for the consummation of the
transaction contemplated in this Agreement.

                                       16
<PAGE>   17

         5.4 BOARD APPROVAL. The transactions herein contemplated shall have
been approved by the Board of Directors of Purchaser.

         5.5 DUE DILIGENCE. Purchaser shall have completed and be satisfied with
the results of its due diligence investigation of Seller's assets, liabilities
and prospects in its sole discretion. In connection with Purchaser's due
diligence investigation, Seller shall have fully cooperated with Purchaser and
shall have made available to Purchaser Seller's accountants, attorneys, lenders,
employees, officers and other representatives and all records, books of account,
documents and information which Purchaser, its agents, representatives,
attorneys, accountants or lenders may from time-to-time request, so that
Purchaser may investigate all aspects of Seller, the Meridian Business, the
Meridian Assets, the Leased Property and the prospects and financial condition
of the Meridian Business.

         5.6 LITIGATION. There shall not be any litigation, action, suit, claim,
proceeding, order, investigation or inquiry pending or threatened before any
court or quasi-judicial or administrative agency to, or pursuant to which a
judgment, order, decree, stipulation, injunction or charge could be entered
which would; (i) enjoin or prevent the consummation of the transactions
contemplated in this Agreement, (ii) cause any of the transactions contemplated
in this Agreement to be rescinded following consummation, (iii) adversely affect
the right of Purchaser to own, operate or control the Meridian Business, the
Meridian Assets or the Leased Property, or (iv) otherwise have a material
adverse effect on the operations or financial condition of the Meridian
Business, the Meridian Assets or the Leased Property. In addition, no such
litigation, action, suit, claim, proceeding, order, investigation or inquiry
shall have been initiated between the date of this Agreement and the Closing
Date.

         5.7 UPDATING OF DISCLOSURE SCHEDULES. From the date of this Agreement
until the Closing, Seller shall have used its best efforts to update all of the
Schedules to this Agreement and shall have promptly notified Purchaser of any
material changes or additions or events which may cause any change or addition
to any such Schedules or in any representation or warranty made pursuant to
Section 4 above. The provisions of this Section 5.7 and any notice by Seller
pursuant to this Section 5.7 shall not be deemed in any way to constitute a
waiver by Purchaser of the condition set forth in Section 5.1 above which
provides in part that the representations and warranties of Seller set forth in
Section 3 above shall be true and correct on the date of this Agreement and on
the date of the Closing.

         5.8 NO ENCUMBRANCES. All of the Meridian Assets shall be owned free and
clear of all Liens. Any and all Liens and security interests shall be released
and discharged, including but not limited to the Liens listed on Schedule 3.7.
In addition to the releases and discharges to be delivered to Purchaser as
contemplated in Section 2.1, the Secured Creditors shall deliver such other
documents as Purchaser shall deem necessary to effect a release or discharge of
any of the Liens or security interests.

         5.9 TAX LETTER REQUEST. Seller shall complete, execute and file a Tax
Letter Request (Michigan Department of Treasury Form C-3351), with the Michigan
Department of Treasury within three (3) business days of the date of this
Agreement. Promptly upon receipt of a Tax

                                       17
<PAGE>   18

Letter from the Michigan Department of Treasury, Seller shall deliver a copy of
the Tax Letter to Purchaser.

         5.10 TERMINATION. This Agreement shall not have been terminated
pursuant to Section 12.1 of this Agreement.

                                   ARTICLE VI

               CONDITIONS PRECEDENT TO SELLER'S AND SHAREHOLDERS'
                              OBLIGATION AT CLOSING

         The obligation of Seller and the Shareholders to consummate the
transactions contemplated by this Agreement at the Closing is subject to the
satisfaction of all of the following conditions, any of which may be waived in
writing by Seller:

         6.1 ACCURACY OF REPRESENTATIONS. All representations and warranties
made by Purchaser in this Agreement shall have been true and correct in all
material respects on the date of this Agreement and shall be true and correct on
the Closing Date with the same force and effect as if they had been made on and
as of said date.

         6.2 PERFORMANCE OF AGREEMENT. Purchaser shall have performed and
complied with all of its obligations under this Agreement which are to have been
performed or complied with on or prior to the Closing Date, and Purchaser shall
have executed and delivered all of the documents contemplated in this Agreement,
all of which shall be satisfactory to Seller.

         6.3 SHAREHOLDERS AND BOARD APPROVAL. Seller shall have obtained the
requisite approval of its Board of Directors and shareholders to effect the
transactions contemplated by this Agreement.

         6.4 TERMINATION. This Agreement shall not have been terminated pursuant
to Section 12.1 of this Agreement.

                                   ARTICLE VII

                                     CLOSING

         7.1 The closing (the "Closing") of the transactions contemplated in
this Agreement will be held at the offices of Purchaser's counsel, Jaffe, Raitt,
Heuer & Weiss, Professional Corporation, One Woodward Avenue, Suite 2400,
Detroit, MI 48226, as soon as reasonably possible following the negotiation and
preparation of this Agreement and the attendant documents and after the
conditions set forth in the documents and in Article V and Article VI of this
Agreement are satisfied. The date on which the Closing is held is referred to in
this Agreement as the "Closing Date". In any event, the Closing shall occur no
later than April 30, 1998.

                                       18
<PAGE>   19

         7.2 At the Closing, Seller and the Shareholders shall deliver or cause
to be delivered to Purchaser:

                  (a) A Warranty Bill of Sale and Assignment and Assumption
         Agreement in the form attached hereto as Document 7.2(a) (the "Warranty
         Bill of Sale, Assignment of Assumption Agreement").

                  (b) Certificates of title to the vehicles listed on the
         attached Schedule 1.1(b), if any.

                  (c) A Covenant not to Compete and Confidentiality Agreement
         (the "Covenant"), the form of which is attached to this Agreement as
         Document 7.2(c).

                  (d) A Sharing Agreement (the "Sharing Agreement"), the form of
         which is attached to this agreement as Document 7.2(d)

                  (e) An opinion of counsel of Seller and the Shareholders,
         addressed to Purchaser, the form of which is attached to this Agreement
         as Document 7.2(e).

                  (f) A Sublease (the "Sublease"), the form of which is attached
         to this Agreement as Document 7.2(f).

                  (g) All of the Meridian Assets.

                  (h) Termination statements discharging and releasing any and
         all Liens and security interests, including but not limited to those
         Liens listed on Schedule 3.7.

                  (i) A copy of Seller's Certificate of Incorporation, certified
         by the Delaware Secretary of State and a Certificate of Good Standing
         for Seller issued by the Delaware Secretary of State and each and every
         other state in which Seller is authorized to do business. All such
         documents shall be dated not earlier then ten (10) days prior to the
         Closing Date.

                  (j) A certificate, executed by an officer of Seller, to the
         effect that (i) all of the representations, warranties and covenants
         made by Seller and Shareholders in this Agreement are true and correct
         on the Closing Date with the same effect as though made on and as of
         the Closing Date, (ii) all covenants and agreements undertaken to be
         performed by Seller and the Shareholders under this Agreement have been
         taken or performed, (iii) since the date of this Agreement, Seller has
         operated the Meridian Business only in the ordinary course, and (iv)
         there has been no material adverse change in the Meridian Business, the
         Meridian Assets or the Leased Property from the date of this Agreement
         to the Closing Date. Attached to such certificate shall be a copy of
         Seller's bylaws and a copy of the minutes or resolutions approving the
         transactions contemplated in this Agreement, and the persons executing
         such certificate shall certify that, as of the Closing Date, such
         bylaws and minutes or resolutions are true, complete

                                       19
<PAGE>   20

         and correct, have not be altered or repealed and are in full force and
         effect.

                  (k) The Intervening Period Payment, as defined in Section
         13.12.

                  (l) Such other documents and instruments as may be reasonably
         requested by counsel for Purchaser.

         7.3 At the Closing, Purchaser shall deliver or caused to be delivered
to Seller:

                  (a) The Purchase Price.

                  (b) The Warranty Bill of Sale, Assignment and Assumption
         Agreement.

                  (c) The Covenant.

                  (d) The Sharing Agreement.

                  (e) The Sublease.

                  (f) A copy of Purchaser's Certificate of Incorporation,
         certified by the Delaware Secretary of State and a Certificate of Good
         Standing for Purchaser issued by the Delaware Secretary of State and
         the Michigan Department of Consumer and Industry Services. All such
         documents shall be dated not earlier then ten (10) days prior to the
         Closing Date.

                  (g) An opinion of counsel to Purchaser, addressed to Seller,
         the form of which is attached to this Agreement as Document 7.3(g).

                  (h) A certificate, executed by an officer of Purchaser, to the
         effect that (i) all of the representations, warranties and covenants
         made by Purchaser in this Agreement are true and correct on the Closing
         Date with the same effect as though made on and as of the Closing Date,
         and (ii) all covenants and agreements undertaken to be performed by
         Purchaser under this Agreement have been taken or performed. Attached
         to such certificate shall be a copy of Purchaser 's bylaws and a copy
         of the minutes or resolutions approving the transactions contemplated
         in this Agreement, and the officer of Purchaser executing such
         certificate shall certify that, as of the Closing Date, such bylaws and
         minutes or resolutions are true, complete and correct, have not be
         altered or repealed and are in full force and effect.

                  (i) Such other documents and instruments as may be reasonably
         requested by counsel for Purchaser.

                                       20
<PAGE>   21

                                  ARTICLE VIII

                                EMPLOYEE MATTERS

         8.1 SALARIED AND HOURLY EMPLOYEES.

                  (a) Termination. As used in this Section 8.1, the term "Active
         Employees" means those salaried or hourly Meridian Business Employees
         who are actively employed as of the Closing Date (i.e., who are not, as
         of the date immediately preceding the Closing Date, on leave of
         absence, layoff, military leave, suspension, sick leave, workers'
         compensation, salary continuance or long-term or short-term disability
         or otherwise not actively performing his or her work during all
         normally scheduled business hours ("Inactive Employees")). Seller shall
         terminate all of the Active Employees except M. Randal Olinger
         ("Olinger"), James Jenks ("Jenks") and Jon Carrington ("Carrington") on
         or as of the Closing Date and shall timely pay all such terminated
         employees any amounts due through the Closing Date for accrued wages
         and benefits. In addition, Seller shall timely pay all Active Employees
         who do not become Continued Employees for all accrued but unused
         vacation. Purchaser shall credit all Continued Employees with a number
         of vacation days with Purchaser equal to the number of accrued but
         unused vacation days such Continued Employee had with Seller as of the
         Closing Date. Purchaser shall not assume any liability for, inherit or
         succeed to any employment relationship or any pending labor or employee
         relations case, or any employment or collective bargaining agreements.

                  (b) Obligation to Hire. Subject to Section 8.1(e) below,
         effective as of the Closing Date, Purchaser shall offer employment to
         all of the Active Employees (other than those identified on the
         attached Schedule 8.1(b) and also other than Olinger, Jenks and
         Carrington) on terms and conditions which are substantially similar to
         those under which Purchaser employs persons of similar skill,
         experience and training as the Active Employees. For the purposes of
         this Section 8.1, the term "Continued Employees" means those Active
         Employees accepting such offers of employment.

                  (c) Inactive Employees. Inactive Employees who, but for the
         fact that they were not actively employed as of the Closing Date, would
         have been Active Employees may apply for employment with Purchaser when
         their leave ends or when they are fit for regular duties, and if, at
         the time, Purchaser has need for an employee with the Inactive
         Employee's skill, experience, and training, and subject to Section
         8.1(d) below, Purchaser shall offer employment to that Inactive
         Employee on terms and conditions which are substantially similar to
         those under which Purchaser then employs persons of similar skill,
         experience and training as such Inactive Employee. On commencement of
         employment with Purchaser, such Inactive Employee shall, for the
         purposes of this Section 8.1, be considered a Continued Employee.

                                       21
<PAGE>   22

                  (d) No Right to Continued Employment. After the Closing,
         Purchaser may evaluate its employment needs with respect to the
         Meridian Business, and no provision of this Agreement is intended to or
         shall confer on any Continued Employee any right to continued
         employment after the Closing Date.

                  (e) Employee Benefit Plans for Continued Employees. Effective
         as of their commencement of employment with Purchaser, all Continued
         Employees shall be covered under the employee benefit plans then
         maintained by Purchaser, subject to the terms and conditions of such
         plans (including without limitation, service and other eligibility
         conditions); provided, however, that such coverage shall not apply to
         dependents of Continued Employees who, on the date the Continued
         Employee becomes eligible for coverage, are confined to their home or a
         hospital. Seller agrees to continue coverage to such dependents until
         they are no longer restricted from their normal activity or the
         employment of the Continued Employee with Purchaser terminates. If a
         Continued Employee whose dependent is disabled should terminate
         employment with Purchaser before such dependent is able to resume
         normal activities, Seller shall provide COBRA notice and, if benefits
         are elected, shall provide coverage to such dependent for as long as
         the dependent is eligible for COBRA coverage. Seller shall retain all
         liability to fully perform, pay and discharge all incurred but unpaid
         claims under the insurance programs provided to employees of the
         Meridian Business immediately preceding the Closing Date.

                  (f) No Obligation Under Seller's Employee Benefit Plans.
         Purchaser shall assume no liability or obligation arising under or
         pursuant to Seller's Employee Benefit Plans. Seller shall indemnify and
         hold Purchaser harmless from any obligation or liability incurred or
         arising with respect to Seller's Employee Benefit Plans. Effective as
         of the Closing Date, Seller shall cause the accrued benefit derived by
         each Active Employee employed by Seller from Seller's pension plans, if
         any, to be one hundred percent (100%) vested and nonforfeitable. Seller
         shall retain all liabilities and obligations, and Purchaser shall
         assume no liability or obligation with respect to any Active Employee,
         Inactive Employee or former employee of Seller who does not become a
         Continued Employee.

                  (g) Retiree Medical Plans. Seller shall retain all assets and
         liabilities relating to its retiree medical plans and with respect to
         its Meridian Business Employees who retired before or on the Closing
         Date and all expenses relating to such retiree medical plans.

                  (h) Workers' Compensation Claims. Seller is and shall be fully
         responsible and liable for all workers' compensation benefits payable
         to the Meridian Business Employees for any claim for such benefits
         arising as the result of an injury or occupational disease sustained
         while employed by Seller. Seller acknowledges that Purchaser shall have
         no greater obligation with respect to hiring any Meridian Business
         Employees who, as of the Closing Date, are on workers' compensation
         leave than it shall have to any other Inactive Employee. However, on
         reasonable notice and during normal business hours, Purchaser shall
         make its employees available to Seller for the purposes of defending
         workers' compensation claims by Meridian Business Employees.

                                       22
<PAGE>   23

                  (i) WARN Act. Seller shall be responsible for ensuring that
         all requirements of the Worker Adjustment and Retraining Notification
         Act, as amended (the "WARN Act") are met in connection with this
         Agreement and the transactions contemplated by this Agreement,
         including but not limited to, providing proper notices to employees of
         Seller and to others. Seller also shall be responsible for all payments
         due its current or former employees under the WARN Act.

                                   ARTICLE IX

                                 OTHER COVENANTS

         9.1 BEST EFFORTS. From the date hereof and prior to the Closing, Seller
will use its best efforts, and will cooperate with Purchaser, to secure all
necessary consents, approvals, authorizations, exemptions and waivers from third
parties as shall be required in order to enable Seller to effect the
transactions contemplated hereby, and will otherwise use its best efforts to
cause the consummation of such transactions in accordance with the terms and
conditions hereof.

         9.2 COVENANT TO ASSIST PURCHASER'S RETENTION OF SELLER'S EMPLOYEES. As
a necessary inducement to cause Purchaser to enter into this Agreement, Seller
covenants, warrants and agrees, that it shall use its best efforts to assure
Purchaser's retention of all current Active Employees of Seller (except Olinger,
Jenks and Carrington) to whom Purchaser offers employment pursuant to Section
8.1(b) above.

                                    ARTICLE X

                   INVESTIGATION, SURVIVAL AND INDEMNIFICATION

         10.1 INVESTIGATION. The investigation by Purchaser and its employees,
agents and representatives, of the Meridian Assets, the Meridian Business and
any other matters concerning Seller prior to or subsequent to the Closing Date,
shall not negate or diminish the representations and warranties of Seller and
the Shareholders contained or provided for herein except to the extent Seller
can demonstrate that Purchaser had actual knowledge of an inaccurate warranty or
representation.

         10.2 SURVIVAL. The representations and warranties set forth in Sections
3 and 4 of this Agreement shall survive for a period of two (2) years after the
Closing Date except that the representations and warranties contained in
Sections 3.1, 3.2, 3.3, 3.7, 3.22, 3.24, 4.1, 4.2 and 4.3 shall survive the
Closing Date indefinitely, the representations and warranties set forth in
Section 3.19 shall survive the Closing Date for a period of six (6) years, and
the representations and warranties set forth in Section 3.6 shall survive the
Closing Date for the applicable statute of limitations period; except that such
representations and warranties shall survive the Closing Date indefinitely if
they relate to a tax liability of the Meridian Business that is based on
misrepresentation or fraud.

                                       23
<PAGE>   24

         10.3 INDEMNIFICATION OF PURCHASER BY SELLER. Seller hereby agrees
indemnify, defend, and hold harmless Purchaser, and its officers, directors,
shareholders, employees, successors and assigns (collectively, the "Purchaser
Parties"), from and against any and all liability, loss, costs or expenses which
any of the Purchaser Parties may suffer and become liable for as a result of or
in connection with:

                  (a) any inaccuracy or misrepresentation in, or breach of any
         representation or warranty of Seller and the Shareholders contained in,
         this Agreement, any of the documents contemplated in this Agreement
         (the "Attendant Documents") or any certificate, schedule, list or other
         instrument to be furnished by Seller or the Shareholders to Purchaser
         pursuant to this Agreement or any of the Attendant Documents;

                  (b) any breach or failure of Seller or the Shareholders to
         perform any covenant or agreement required to be performed by Seller or
         the Shareholders pursuant to this Agreement or any of the Attendant
         Documents;

                  (c) Seller's non-compliance with the provisions of any bulk
         transfer law applicable to the transactions contemplated in this
         Agreement;

                  (d) The Employee Benefit Plans;

                  (e) Seller's obligation under Section 8.1(i);

                  (f) Seller's failure to obtain appropriate releases or
         discharges of any and all Liens or security interests on or in the
         Meridian Assets, including but not limited to the Liens listed on
         Schedule 3.7, notwithstanding Purchaser's waiver of satisfaction in
         whole or in part of the conditions precedent set forth in Section 5.8;

                  (g) any claim, demand, suit, action or legal, administrative
         or other proceeding by any person (other than a party) or any federal,
         state or local department, agency or other governmental body (a "Third
         Party Claim") against any of the Purchaser Parties resulting from,
         arising out of or in any way related to (i) the failure of Seller or
         the Shareholders to perform, pay or discharge any liability not assumed
         by Purchaser, (ii) the operation of the Meridian Business by Seller
         prior to the Closing, or (iii) any actual or alleged defect in any
         product manufactured by Seller prior to the Closing; and

                  (h) any and all actions, suits, proceedings, demands,
         assessments, judgments, costs and expenses, including reasonable
         attorneys' and consultants' fees (collectively, "Related Expenses"),
         incident to any of the foregoing;

         provided, however, that within sixty (60) days after learning of the
         assertion of any Third Party Claim against which any Purchaser Party
         claims indemnification under this Section 10.3, such Purchaser Party
         shall notify Seller and afford it the opportunity to join in the
         defense or settlement thereof at Seller's own expense with counsel of
         its choosing, and such Purchaser Party shall cooperate fully to make
         available to Seller all pertinent

                                       24
<PAGE>   25

         information under its control or in its possession. Such Purchaser
         Party shall have the right to afford Seller the opportunity to assume
         the defense or settlement of such Third Party Claims at its own expense
         with counsel of its choosing, provided that Seller shall not settle any
         such claim without the prior written consent of such Purchaser Party.

         10.4 INDEMNIFICATION OF PURCHASER BY THE SHAREHOLDERS. Shareholders
hereby agree to jointly and severally indemnify, defend, and hold harmless the
Purchaser Parties, from and against any and all liability, loss, costs or
expenses which any of the Purchaser Parties may suffer and become liable for as
a result of or in connection with:

                  (a) any inaccuracy or misrepresentation in, or breach of any
         representation or warranty of Seller and the Shareholders contained in
         Sections 3.1, 3.2, 3.22 and 3.23 of this Agreement;

                  (b) any breach or failure of Seller or the Shareholders to
         perform any covenant or agreement required to be performed by Seller or
         the Shareholders pursuant to this Agreement or any of the Attendant
         Documents;

                  (c) any Third Party Claim against any of the Purchaser Parties
         resulting from, arising out of or in any way related to (i) the failure
         of Seller or the Shareholders to perform, pay or discharge any
         liability not assumed by Purchaser, (ii) the operation of the Meridian
         Business by Seller prior to the Closing, or (iii) any actual or alleged
         defect in any product manufactured by Seller prior to the Closing; and

                  (d) any and all Related Expenses, incident to any of the
         foregoing;

         provided, however, that within sixty (60) days after learning of the
         assertion of any Third Party Claim against which any Purchaser Party
         claims indemnification under this Section 10.4, such Purchaser Party
         shall notify the Shareholders and afford them the opportunity to join
         in the defense or settlement thereof at the Shareholders' own expense
         with counsel of their choosing, and such Purchaser Party shall
         cooperate fully to make available to the Shareholders all pertinent
         information under its control or in its possession. Such Purchaser
         Party shall have the right to afford the Shareholders the opportunity
         to assume the defense or settlement of such Third Party Claims at its
         own expense with counsel of its choosing, provided that the
         Shareholders shall not settle any such claim without the prior written
         consent of such Purchaser Party.

         10.5 INDEMNIFICATION OF SELLER. Purchaser hereby agrees to indemnify
and hold harmless Seller, its shareholders, officers, directors, successors and
assigns (collectively the "Seller Parties") from and against any and all
liability, loss, cost or expense which any of the Seller Parties may suffer or
become liable for as a result of or in connection with:

                  (a) any inaccuracy or misrepresentation in, or breach of any
         representation or warranty of Purchaser contained in, this Agreement,
         any of the Attendant Documents or any certificate, schedule, list or
         other instrument to be furnished by Purchaser to Seller

                                       25
<PAGE>   26

         pursuant to this Agreement or any of the Attendant Documents;

                  (b) any breach or failure of Purchaser to perform any covenant
         or agreement required to be performed by Purchaser pursuant to this
         Agreement or any of the Attendant Documents;

                  (c) any Third Party Claim against any of the Seller Parties
         resulting from, arising out of or in any way related to (i) the failure
         of Purchaser to perform, pay or discharge any liability assumed
         pursuant to Section 1.3, (ii) the operation of the Meridian Business
         after the Closing, or (iii) any actual or alleged defect in any product
         manufactured by Purchaser after the Closing; and

                  (d) any and all Related Expenses incident to any of the
         foregoing;

         provided, however, that within sixty (60) days after learning of the
         assertion of any Third Party Claim against which any Seller Party
         claims indemnification under this Section 10.5, such Seller Party shall
         notify Purchaser and afford it the opportunity to join in the defense
         or settlement thereof at Purchaser's own expense with counsel of its
         choosing, and such Seller Party shall cooperate fully to make available
         to Purchaser all pertinent information under its control or in its
         possession. Such Seller Party shall have the right to afford Purchaser
         the opportunity to assume the defense or settlement of such Third Party
         Claims at its own expense with counsel of its choosing, provided that
         Purchaser shall not settle any claim with the prior written consent of
         such Seller Party.

         10.6 COOPERATION. The parties hereto shall use reasonable efforts to
minimize the obligation of the others to indemnify hereunder, by, among other
reasonable things and without limiting the generality of the foregoing, taking
such reasonable remedial action as they believe may minimize such obligation and
seeking to the maximum extent possible reimbursement from insurance carriers
under applicable insurance policies covering any such liability.

         10.7 ASSIGNMENT OF CLAIMS. The parties hereto agree that upon
satisfaction of the obligation to indemnify hereunder, and in consideration
thereof, to assign to the party making such payment or giving such credit, any
and all claims, causes of action and demands of whatever kind and nature which
such indemnified party may have against any person, firm or other entity giving
rise to such indemnified loss, and to reasonably cooperate in any efforts to
recover therefrom.

         10.8 SETTLEMENT OF CLAIMS. Notwithstanding anything herein contained to
the contrary, in order to protect the Purchaser from any event which could
materially adversely affect the Meridian Business, customers of the Meridian
Business, or the Meridian Assets, Purchaser shall be entitled to settle any
claims or actions, the defense of which Seller or the Shareholders would
otherwise be entitled to assume or join in pursuant to the provisions hereof,
provided Purchaser gives Seller not less than fifteen (15) days prior written
notice of such claim or action and the proposed settlement. The terms of such
settlement shall be binding upon Seller and the Shareholders so long as they are
commercially reasonable measured in the context of the matter

                                       26
<PAGE>   27

settled and not in respect of other considerations of the Purchaser.

         10.9 REMEDIES NOT EXCLUSIVE. The Purchaser Parties shall be entitled to
exercise and resort to all rights and remedies for misrepresentation or breach
as are afforded to the Purchaser Parties at law or in equity, including, without
limitation, rescission, specific performance, action for damages, adjustment to
the Purchase Price or such other remedies and relief as may be afforded to the
Purchaser Parties under this Agreement or by a court of competent jurisdiction.
Neither the existence or exercise of any specific remedies is intended to be
exclusive of or impair or otherwise adversely affect in any manner whatsoever
any rights, remedies or relief otherwise available to the Purchaser Parties, and
each and every right and remedy will be cumulative and in addition to every
other right and remedy provided in this Agreement or by law.

         10.10 RIGHT OF OFFSET. Any amounts payable by Purchaser to Seller or
the Shareholders under this Agreement or the Attendant Documents may, at the
option of Purchaser, be set off against any amounts due Purchaser by Seller or
the Shareholders under this Agreement or any of the other documents contemplated
in this Agreement.

         10.11 LIMITATION ON INDEMNITIES. Any provision of this Agreement to the
contrary notwithstanding, no claim for indemnification by any Purchaser against
Seller and/or the Shareholders (which, for the purposes of this sentence only,
shall be considered a collective body, and shall be referred to as the "Seller
Group" and shall be considered a single party), or by the Seller Group against
Purchaser, shall be valid and assertible unless the amount of such claim exceeds
Two Thousand Five Hundred Dollars ($2,500.00) (the "Minimum Claim Amount") and
unless and until the aggregate amount of all claims exceeds Twenty-Five Thousand
Dollars ($25,000.00) (the "Basket Amount"), and then such party may only seek
indemnification to the extent all claims exceed the Basket Amount; provided
however, that all claims shall count toward the Basket Amount, regardless of
whether they exceed the Minimum Claim Amount. Notwithstanding any provision of
this Agreement to the contrary notwithstanding, the Minimum Claim Amount and the
Basket Amount shall not apply to: (i) the failure of Purchaser to perform, pay
or discharge any liability assumed pursuant to Section 1.3; (ii) the failure of
Seller to perform, pay or discharge any liability not assumed by Purchaser
pursuant to Section 1.3; (iii) any claim relating to Seller's non-compliance
with the provisions of any bulk transfer law or the WARN Act; (iv) the operation
of the Meridian Business after the Closing; (v) any party's failure to comply
with its affirmative obligations under this Agreement; or (vi) Seller's
indemnification obligations under Section 10.3(f) above or any breach of the
representations and warranties set forth in the first sentence of Section 3.24
or the first and second sentences of Section 3.7.

         10.12 ARBITRATION.

                  (a) If a party hereto has any claim against any other party
         hereto under this Agreement, the party seeking recovery shall set forth
         the amount of the claim and the circumstance in a written demand to the
         party from whom recovery is sought (the "Demand"). If the party from
         whom recovery is sought gives the party seeking recovery a written
         rejection of the Demand within thirty (30) days of its receipt of the
         Demand, then the claim shall be submitted to arbitration under Section
         10.12(b). If the party from

                                       27
<PAGE>   28

         whom recovery is sought does not give the party seeking recovery a
         written rejection of the Demand within thirty (30) days of its receipt
         of the Demand, then the validity and the amount of the claim set forth
         in the Demand shall be conclusive and shall be due and payable from the
         party from whom recovery is sought.

                  (b) If the party from whom recovery is sought gives the party
         seeking recovery a written rejection of the Demand, as set forth in
         Section 10.12(a), then the parties shall submit the claim set forth in
         the Demand to binding arbitration, in the Detroit, Michigan area under
         the Commercial Arbitration Rules of the American Arbitration
         Association ("AAA") then pertaining before a panel of three arbitrators
         one of whom shall be selected by Purchaser, one of whom shall be
         collectively selected by Seller and the Shareholders and the third of
         whom shall be selected by the other two. The award rendered by the
         arbitrators shall be final and binding, and a judgment may be entered
         upon such award in a court of competent jurisdiction. All of the
         parties to this Agreement hereby consent to the jurisdiction of the
         courts of the State of Michigan for purposes of entering judgment with
         respect to such award. Once any award shall be made hereunder (and
         shall become final), the parties shall promptly comply with the terms
         of such award and shall share equally the cost of arbitration;
         provided, however, if the arbitrators find 100% in favor of one party,
         then the losing party shall pay the entire cost of arbitration and
         reimburse the prevailing party for all of its actual costs incurred
         including attorney fees.

                                   ARTICLE XI

                           DESTRUCTION OR CONDEMNATION

         11.1 DESTRUCTION. In the event any part of the Meridian Assets shall be
damaged or destroyed prior to the Closing Date, Seller shall notify Purchaser
thereof, which notice shall include a description of the damage and all
pertinent insurance information. If the use of the Meridian Assets or the
operation of the Meridian Business is materially affected by such damage or
destruction or the cost to repair such damage or destruction exceeds Twenty Five
Thousand and 00/100 ($25,000.00) Dollars, whether or not covered by insurance,
Purchaser shall have the right to terminate this Agreement by notifying Seller
within ten (10) days following the date Purchaser receives notice of such
occurrence, in which event Seller, the Shareholders and Purchaser shall have no
further obligation or liability to the others hereunder. If Purchaser does not
elect to terminate this Agreement, or notify Seller within the said ten (10) day
period, on the Closing Date Seller shall assign to Purchaser all of Seller's
right, title and interest in and to the proceeds of any insurance presently
carried by or payable to Seller.

                                       28
<PAGE>   29

                                   ARTICLE XII

                                   TERMINATION

         12.1 TERMINATION. This Agreement may be terminated at any time before
the Closing:

                  (a) by mutual consent of Purchaser and Seller; or

                  (b) by Purchaser if any of the conditions set forth in Article
         V of this Agreement have not been fulfilled, satisfied or waived by
         April 30, 1998;

                  (c) by Seller or the Shareholders if any of the conditions set
         forth in Article V of this Agreement have not been fulfilled, satisfied
         or waived by April 30, 1998; or

                  (d) by Purchaser in accordance with Section 11.1.

         12.2 EFFECT OF TERMINATION. If this Agreement is terminated in
accordance with Section 12.1 of this Agreement, it shall be null and void and
have no further force or effect, except as provided in the immediately following
sentence. In the event a party terminates this Agreement as a result of a
material breach by another party, then such party shall be entitled to recover
from the defaulting party all out-of-pocket expenses incurred by it and any of
its affiliates (including, without limitation, legal and accounting fees and
expenses) in connection with (a) the preparation, drafting and negotiation of
this Agreement and any other document related to the transactions contemplated
hereunder (the "Professional Expenses") and (b) the due diligence review by
Purchaser and its affiliates of Seller's business, properties, operations and
financial condition; provided that the parties agree that a failure to satisfy
the conditions precedent contained in Sections 5.1 and 6.1 shall not be deemed a
material breach of this Agreement if such failure relates to a representation
and warranty which either (i) was true and correct as of the date of this
Agreement but became not true and correct as of the Closing due to intervening
events, acts or omissions not within the control of the party making such
representation and warranty or (ii) shall be curable and the party making such
representation and warranty agrees, in writing, to cure such breach within a
reasonable time period acceptable to the other party and to indemnify and hold
harmless the other party in the manner and to the extent set forth in Article X.

         12.3 EXPENSES AND LIABILITY. Except as otherwise provided in this
Agreement, each of the parties will pay its own costs and expenses relating to
the transactions provided for in this Agreement irrespective of when incurred.

                                       29
<PAGE>   30

                                  ARTICLE XIII

                                  MISCELLANEOUS

         13.1 NOTICES. All notices, elections, demands, requests, consents,
approvals, statements or other communications (collectively, "notices or
demands") upon any party hereto desired or required to be given under any of the
provisions hereof shall be given or made only by being in writing and: (i)
delivered personally to the party to whom it is directed; (ii) sent by facsimile
(with hard copy to follow in the manner described in clause (iii) below); or
(iii) sent by first class mail or overnight express mail, postage and charges
prepaid, addressed to the party to whom it is directed, at the following
addresses or fax numbers, or at such other address or fax numbers as the parties
may hereafter indicate by written notice as provided herein.

<TABLE>
<S>                                               <C>
         IF TO SELLER:                            WITH A REQUIRED COPY TO:
         Insight Biomedical Imaging, Inc.         Loomis, Ewert, Parsley, Davis & Gotting
         340 Granite Street Suite 200             232 S. Capital Avenue #1000
         Manchester, New Hampshire  03102         Lansing, Michigan
         Attn: Bruce Reeves                       Attn: Michael G. Oliva
         Fax: (603) 641-9535                      Fax: (517) 482-7227

         IF TO PURCHASER:                         WITH A REQUIRED COPY TO:
         Genomic Solutions Inc.                   Jaffe, Raitt, Heuer & Weiss
         4355 Varsity Drive                       Professional Corporation
         Ann Arbor, Michigan 48108                Suite 2400
         Attn:  Jeff Williams                     One Woodward Avenue
         Fax: (734) 975-4808                      Detroit, MI  48226
                                                  Attn: Peter Sugar, Esq.
                                                  Fax: (313) 961-8358
</TABLE>

Except as otherwise provided in this Agreement, any such notice or demand (x)
given or made in the manner indicated in clause (i) or (ii) of this Section 13.1
shall be deemed to be given or made on the day on which it was delivered or
faxed (provided that the sender's fax machine indicates that the fax was
completed); and (y) given or made in the manner indicated in clause (iii) of
this Section 13.1 shall be deemed to be given or made on the second business day
after the day on which it was deposited in a regularly maintained receptacle for
the deposit of the United States mail, or in the case of overnight express mail,
on the business day immediately following the day on which it was deposited in a
regularly maintained receptacle for the deposit of overnight express mail.

         13.2 HEADINGS. The headings contained in this Agreement are for
reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

         13.3 CONSTRUCTION. This Agreement has been executed in, and shall be
construed and enforced in accordance with the laws of the State of Michigan,
with regard to such state's

                                       30
<PAGE>   31

conflicts of laws doctrine. Seller, the Shareholders and Purchaser acknowledge
that each of them has equally participated in the final wording of this
Agreement. Accordingly, the parties agree that this Agreement shall be construed
equally against each party, and shall not be more harshly construed against one
party by reason of the fact that such party's counsel may have prepared this,
the final version of the Agreement between the parties hereto.

         13.4 BENEFIT. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns.

         13.5 ENTIRE AGREEMENT. This Agreement, including the Schedules attached
or to be attached hereto, is and shall be deemed to be the complete and final
expression of the agreement between the parties as to the matters herein
contained and relative thereof, and supersedes any previous agreements between
the parties pertaining to such matters.

         13.6 SEVERABILITY. If any part of this Agreement is held to be invalid
or unenforceable under the laws of any jurisdiction where this Agreement is to
be governed or sought to be enforced, the remaining provisions shall be
enforceable to the maximum extent permitted by law; provided that the remaining
provisions effectuate the intent of the parties as manifested herein.

         13.7 WAIVER. The waiver by any party of any breach of any provision
hereof shall not operate or be construed as a waiver of any subsequent or
similar breach.

         13.8 AMENDMENT. This Agreement may only be amended by written agreement
executed by the parties hereto.

         13.9 NO ASSIGNMENT; BENEFIT. No party may assign its rights and
obligations under this Agreement without the prior written consent of the other
parties. This Agreement shall be binding on and inure to the benefit of the
parties and their respective successors and assigns.

         13.10 FURTHER ASSURANCES. From time to time after the Closing Date, at
Purchaser's request and without further consideration, Seller and the
Shareholders shall execute and deliver or cause to be executed and delivered
such further instruments of conveyance, assignment and transfer and shall take
such other action as Purchaser may reasonably request in order more effectively
to convey, transfer, reduce to possession or record title to any of the Meridian
Assets purchased pursuant hereto or to otherwise carry out the purpose and
intent of this Agreement. Upon the request of Purchaser, Seller and the
Shareholders will cooperate and will use their best efforts to have the
officers, directors and other employees of Seller cooperate with Purchaser on or
after the Closing Date by furnishing information, evidence, testimony and other
assistance in connection with any actions, proceedings, arrangements or disputes
involving Purchaser and which are based upon contracts, leases, arrangements or
acts of Seller which were in effect or occurred on or prior to the Closing Date.

         13.11 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall be considered one and

                                       31
<PAGE>   32

the same agreement. Photostatic or facsimile reproductions of this Agreement may
be made and relied upon to the same extent as originals.

         13.12 INTERVENING PERIOD. Notwithstanding anything in this Agreement to
the contrary, all cash received by Seller in respect of purchase orders
outstanding as of or received after March 24, 1998, except for those orders
listed on Schedule 13.12, shall be paid to Purchaser at the Closing (the
"Intervening Period Payment").

         13.13 ACTIVE EMPLOYEE REIMBURSEMENTS. On the Closing Date, Purchaser
shall reimburse Seller for all wages paid to Active Employees by Seller which
were earned between April 13, 1998 and the Closing Date. Purchaser shall also
reimburse Seller for its out of pocket expenses incurred with respect to the
Active Employees' health and welfare or workers compensation benefits incurred
between April 13, 1998 and the Closing Date.

         13.14 NO THIRD PARTY BENEFICIARIES. The obligations undertaken by
Purchaser, Seller and the Shareholders in this Agreement are for the benefit of
Purchaser, Seller and the Shareholders only, and neither any creditor of
Purchaser, Seller or of any of the Shareholders, nor any other party (other than
a successor in interest to Purchaser, Seller or the Shareholders), shall have
the right to rely on or enforce the provisions of this Agreement as a
third-party beneficiary or otherwise.

             [The remainder of this page intentionally left blank.]

                                       32
<PAGE>   33

         IN WITNESS WHEREOF, the parties hereto have caused this Asset Purchase
Agreement to be fully executed as of 14th April, 1998.

                             SELLER:

                             INSIGHT BIOMEDICAL IMAGING, INC.,
                             a Delaware corporation

                             By: /s/ Bruce Reeves
                                ------------------------------------------
                             Its: President and CEO
                                 -----------------------------------------

                             SHAREHOLDERS

                             /s/ Sandra Reeves
                             ---------------------------------------------
                             Sandra Reeves

                             /s/ Nigel Fleming
                             ---------------------------------------------
                             Nigel Fleming

                             PURCHASER:

                             GENOMIC SOLUTIONS INC., a Delaware corporation

                             By: /s/ Jeffrey S. Williams
                             ---------------------------------------------
                                      Jeffrey S. Williams, President and
                                      Chief Executive Officer

                                       33

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