Document:

EXHIBIT 10.1

                       TELENATIONAL COMMUNICATIONS INC.

                           STOCK PURCHASE AGREEMENT

                                 BY AND AMONG

                           RAPID LINK, INCORPORATED

                                     AND

                           APEX ACQUISITIONS, INC.

                                 May 3, 2006

                           STOCK PURCHASE AGREEMENT

      This STOCK PURCHASE AGREEMENT (this "Agreement"), dated as of May 3,
 2006 (the "Execution Date"), is entered into by and among Rapid Link,
 Incorporated, a Delaware corporation ("Buyer"), and Apex Acquisitions,
 Inc., a Delaware corporation (the "Stockholder") in its capacity as the sole
 stockholder of Telenational Communications Inc., a Delaware corporation (the
 "Company").  Christopher Canfield and Michael Prachar are made a party to
 this Agreement for purposes of Section 6.6 only.

                                  RECITALS

      A.   The Company is engaged in the business of providing domestic and
 international long-distance telephone services to end-user customers.

      B.   The Stockholder is the sole record and beneficial owner of all of
 the issued and outstanding capital stock of the Company, consisting of 1,000
 shares of common stock, $0.0001 par value per share (the "Company Shares").

      C.   Buyer desires to purchase all, but not less than all, of the
 Company Shares, and Stockholder desires to sell all of the Company Shares,
 on the terms and subject to the conditions set forth in this Agreement.

                                  AGREEMENT

      NOW, THEREFORE, in consideration of the foregoing and the respective
 representations, warranties, covenants, and agreements set forth in this
 Agreement and other good and valuable consideration, the receipt and
 sufficiency of which all parties mutually acknowledge, the parties,
 intending to be legally bound, agree as follows:

                                  ARTICLE I
                         DEFINITIONS AND CONSTRUCTION

      Section 1.1    Definitions.  For purposes of this Agreement,
 capitalized terms not otherwise defined in this Agreement shall have the
 following meanings:

      "Actual Net Working Capital" shall mean the Net Working Capital as of
 the Closing Date and as recorded on the Closing Balance Sheet.

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

      "Business Day" shall mean any day other than a Saturday, Sunday or
 legal holiday in the State of California.

      "Buyer Common Stock" shall mean shares of Buyer's common stock. $0.001
 par value per share.

      "Buyer Shares" shall mean the Initial Stock Payment and the Contingent
 Stock Payment.

      "Closing Balance Sheet" shall mean the balance sheet of the Company,
 dated as of the Closing Date.

      "Current Assets" shall mean, in respect of any period, all assets
 expected to be converted into cash or otherwise realized in the 12 months
 following the balance sheet date and recorded as current assets in the
 Financial Statements and the Closing Balance Sheet in accordance with
 GAAP, including, but not limited to, cash and cash equivalents, accounts
 receivable, notes receivable, interest receivable, prepaid expenses, and
 current assets and any provisions recorded thereon.

      "Current Liabilities" shall mean, in respect of any period, all
 liabilities expected to be settled in the 12 months following the balance
 sheet date and recorded as current liabilities in the Financial Statements
 and the Closing Balance Sheet in accordance with GAAP, including, but not
 limited to, accounts payable, accrued expenses, accrued payroll liabilities,
 interest payable, deferred revenue and the current portion of any debt
 obligations.

      "Encumbrance" shall mean a mortgage, charge, pledge, lien, option,
 restriction, claim, right of first refusal, right of preemption, third party
 right or interest or other encumbrance or security interest of any kind or
 similar right or any other matter affecting title.

      "First Performance Period" shall mean the three-month period commencing
 on the Closing Date.

      "GAAP" shall mean, at any particular time, accounting principles
 generally accepted in the United States of America, consistently applied on
 a going concern basis and, with respect to interim financial statements,
 subject to normal year-end adjustments.

      "Material Adverse Effect" shall mean, with respect to a specified
 party, any change or effect, as the case may be, that has, or is reasonably
 likely to have, individually or in the aggregate, a material adverse impact
 on the assets, business, prospects or financial position of such party and
 its subsidiaries taken as a whole.

      "Monthly Gross Profit" shall mean the Company's monthly gross margin
 from all retail and wholesale sales, calculated on a combined basis, before
 the Company's selling, general and administrative expenses.  Monthly Gross
 Profit shall be calculated in accordance with GAAP consistently applied and
 in accordance with the historical accounting practices of the Company.

      "Net Working Capital" shall mean (i) Current Assets minus (ii) Current
 Liabilities.

      "Person" shall mean an individual, company, partnership, limited
 liability company, limited liability partnership, joint venture, trust
 or unincorporated organization, joint stock corporation or other similar
 organization, government or any political subdivision thereof, or any other
 legal entity.

      "Sale of the Buyer" means (i) any direct or indirect sale or exchange
 by the stockholders of Buyer of all or substantially all of the capital
 stock of Buyer, (ii) a merger in which Buyer is a party and in which the
 stockholders of Buyer prior to such transaction do not retain at least a
 majority of the beneficial interest in the voting stock of the surviving
 entity after such merger, or (iii) a sale, transfer or other disposition in
 any transaction or series of transaction of all or substantially all of the
 assets of Buyer.

      "Second Performance Period" shall mean the 12-month period commencing
 on the Closing Date and ending on the first anniversary thereof.

      "Target Net Working Capital" shall mean Net Working Capital equal to
 $0.

      "Taxes" shall mean all taxes, assessments, charges, duties, fees,
 levies or other governmental charges, including but not limited to, all
 federal, state, local, foreign or other income, profits, unitary, business,
 franchise, capital stock, real property, personal property, intangible
 taxes, withholding, Medicare, unemployment compensation, disability,
 transfer, sales, use, excise and other taxes, assessments, charges, duties,
 fees, or levies of any kind whatsoever (whether or not requiring the filing
 of Tax Returns) and all deficiency assessments, additions to tax, penalties
 and interest.

      1.2  Construction.

           (a)  The headings and captions used herein are intended for
 convenience of reference only, and shall not modify or affect in any manner
 the meaning or interpretation of any of the provisions of this Agreement.

           (b)  As used herein, the singular shall include the plural, the
 masculine and feminine genders shall include the neuter, and the neuter
 gender shall include the masculine and feminine, unless the context
 otherwise requires.

           (c)  The words "hereof," "herein," and "hereunder," and words of
 similar import, when used in this Agreement shall refer to this Agreement as
 a whole and not to any particular provision of this Agreement.

           (d)  All references herein to Sections, Schedules or Exhibits
 shall be deemed to refer to Sections of and Schedules or Exhibits to this
 Agreement, unless specified to the contrary.  All Exhibits and Schedules to
 this Agreement are integral parts of this Agreement as if fully set forth
 herein.

           (e)  The words "include," "includes" and "including" when used
 herein shall be deemed in each case to be followed by the words "without
 limitation."

           (f)  "To the knowledge of" or any similar phrase shall be deemed
 to mean that a Person (i) is actually aware of a particular fact or matter
 or (ii) could be expected to discover or otherwise become aware of that fact
 or matter had they made reasonable inquiry of appropriate employees and
 agents of the Company or other appropriate third parties, as the case may
 be, with respect to the matter in question.

           (g)  As all parties participated in negotiating and drafting this
 Agreement, no rule of construction shall apply to this Agreement which
 construes ambiguous language in favor of or against any party by reason of
 that party's role in drafting this Agreement.

                                  ARTICLE II
                 PURCHASE AND SALE OF COMPANY SHARES; CLOSING

      Section 2.1    Purchase and Sale of Company Shares.  The Stockholder
 hereby sells, transfers, assigns, and delivers to Buyer, and Buyer hereby
 purchases, accepts, assumes, and receives, good and marketable title and
 interest in and to the Company Shares, free and clear of any Encumbrances,
 restrictive agreements, or adverse claims of any nature whatsoever.

      Section 2.2    Purchase Price.  The "Purchase Price" for the Company
 Shares shall consist of:

           (i)  an amount of cash equal to $1,000,000, all of which shall be
      payable in accordance with the provisions set forth in Section 2.4(a)
      below (the "Initial Cash Payment");

           (ii)  up to 9,587,500 shares of Buyer Common Stock, subject to
      adjustment as set forth in Section 2.3(a) below, and issuable to the
      Stockholder in accordance with the provisions of Section 2.4(b) below
      (the "Initial Stock Payment");

           (iii)  an amount of cash up to $500,000, subject to adjustment
      as set forth in Section 2.3(b) and Section 2.5 below, and payable to
      the Stockholder in accordance with the provisions of Section 2.4(c)
      below (the "Contingent Cash Payment"); and

           (iv)  up to 9,587,500 shares of Buyer Common Stock, subject to
      adjustment as set forth in Section 2.3(c) below, and such shares to be
      issuable to the Stockholder in accordance with the provisions of
      Section 2.4(d) below (the "Contingent Stock Payment").

 In connection with all stock issuances hereunder, Buyer shall not be
 required to issue any fractional shares or scrip.  All fractional shares
 shall be rounded up to the nearest whole number of shares of Buyer Common
 Stock.

      Section 2.3    Purchase Price Adjustments.

          (a)   Initial Stock Payment Adjustment.  Within 30 days after the
 Closing Date, Buyer's independent accountant shall determine the average
 Monthly Gross Profit for the 12-month period ended December 31, 2005 (the
 "Fiscal 2005 Average Monthly Gross Profit").  In the event that the Fiscal
 2005 Average Monthly Gross Profit is less than $300,000 (the "Target Average
 Monthly Gross Profit"), then the Initial Stock Payment shall be reduced by
 an amount equal to 9,587,500 multiplied by a fraction whose numerator is the
 Target Average Monthly Gross Profit less the Fiscal 2005 Average Monthly
 Gross Profit and whose denominator is the Target Average Monthly Gross
 Profit.

          (b)   Contingent Cash Payment Adjustment.  Within 45 days after the
 expiration of the First Performance Period, Buyer' independent accountant
 shall determine the Company's average Monthly Gross Profit for the First
 Performance Period (the "First Average Monthly Gross Profit").  In the event
 that the First Average Monthly Gross Profit is less than the Target Average
 Monthly Gross Profit, then the Contingent Cash Payment shall be reduced by
 an amount equal to $500,000 multiplied by a fraction whose numerator is the
 Target Average Monthly Gross Profit less the First Average Monthly Gross
 Profit and whose denominator is the Target Average Monthly Gross Profit.

          (c)   Contingent Stock Payment Adjustment.  Within 90 days after
 the expiration of the Second Performance Period, Buyer's independent
 accountant shall determine the Company's aggregate Monthly Gross Profit for
 the Second Performance Period (the "Second Aggregate Monthly Gross Profit").
 In the event that the Company's Second Aggregate Monthly Gross Profit is
 less than $3,600,000 (the "Target Aggregate Monthly Gross Profit"), then
 the Contingent Stock Payment shall be reduced by a number of shares to be
 determined as follows:

               (i)   the product obtained by multiplying $3,000,000 by a
      fraction whose numerator is the Target Aggregate Monthly Gross Profit
      less the Second Aggregate Monthly Gross Profit and whose denominator is
      the Target Aggregate Monthly Gross Profit;

               (ii)  divided by the volume weighted average closing price
      per share of Buyer Common Stock as reported on the Over-the-Counter
      Bulletin Board (or any other securities exchange or inter-dealer
      quotation system on which the Buyer Common Stock is then listed) for
      the 15 consecutive trading days ending on the day prior to the first
      anniversary of the Closing Date (the "Per Share Price"); provided,
      however, that such Per Share Price shall be not less than $0.13 per
      share and not greater than $0.25 per share.

          (d)   Each computation of actual Monthly Gross Profit provided for
 in this Section 2.3 shall be made by Buyer's independent accounting firm
 (the "Computation").  Upon completion of each Computation by Buyer's
 independent accounting firm, the Computation shall be delivered to the
 Stockholder.  The Stockholder shall have 30 days from the date on which
 such Computation is delivered to it to review the Computation (the "Review
 Period").  If the Stockholder disagrees in any respect with any item or
 amount shown or reflected in such Computation, the Stockholder may, on or
 prior to the last date of the Review Period, deliver a written notice to
 Buyer setting forth, in reasonable detail, each disputed item or amount
 and the basis for the Stockholder's disagreement therewith, together with
 supporting calculations (the "Dispute Notice").  The Dispute Notice shall
 set forth the Stockholder's position as to the proper amount for each
 disputed item.  If no Dispute Notice is received by Buyer with respect
 to the Computation on or prior to the last day of the Review Period, such
 Computation shall be deemed accepted by the Stockholder (the "Final
 Computation").

      Within 30 days after Buyer's receipt of a Dispute Notice, Buyer and
 the Stockholder shall endeavor in good faith to resolve the items in dispute
 with respect to the Computation.  If Buyer and the Stockholder are unable to
 resolve the items in dispute within 30 days after the Dispute Notice is
 received by Buyer, Buyer and the Stockholder shall jointly contact, and
 shall retain the services of KBA Group, LLP (the "Accounting Firm").
 The Accounting Firm retained by Buyer and the Stockholder shall conduct a
 review of the Computation, any related work papers of Buyer's independent
 accounting firm with respect to the Computation, the Dispute Notice and
 any supporting documentation as the Accounting Firm in its sole discretion
 deems necessary or appropriate, and the Accounting Firm shall conduct such
 hearings or hear such presentations by the parties hereto as the Accounting
 Firm in its sole discretion deems necessary or appropriate.  The Accounting
 Firm shall be bound by the provisions of this Section 2.3 in its
 determination of the Calculation.

      The Accounting Firm shall, as promptly as practicable and in no event
 later than 60 days following the date of its retention, deliver to the
 Stockholder and Buyer a report (the "Adjustment Report") which the
 Accounting Firm shall, after considering all matters set forth in the
 Dispute Notice and review of the related materials provided by Buyer,
 Buyer's independent accounting firm and the Stockholder, determine what
 adjustments, if any, should be made to the Computation, subject to the
 requirement that the Computation be determined in accordance with the
 provisions of this Section 2.3.  The Adjustment Report shall set forth, in
 reasonable detail, the Accounting Firm's determination with respect to each
 of the disputed items or amounts specified in the Dispute Notice, and the
 revisions, if any, to be made to the Computation, together with supporting
 calculations.  The Stockholder shall pay one-half, and Buyer shall pay one-
 half, of the fees and expenses of the Accounting Firm incurred in connection
 with the matters referred to in this Section 2.3  The Adjustment Report
 setting forth the Final Computation shall be final and binding upon Buyer
 and the Stockholder.

      Section 2.4    Payment of Purchase Price.

           (a)  Initial Cash Payment.  Within five Business Days after the
 Closing, upon surrender to Buyer of certificates representing all and not
 less than all of the Company Shares, Buyer shall pay to the Stockholder the
 Initial Cash Payment.  The Initial Cash Payment will be payable by means
 of wire transfer to the account specified in writing to Buyer by the
 Stockholder not less than five Business Days before the Closing Date.

           (b)  Initial Stock Payment.  Within five Business Days after the
 later to occur of (i) the delivery of the Final Computation of the Fiscal
 2005 Average Monthly Gross Profit and (ii) the Closing, Buyer shall issue
 and deliver to the Stockholder certificates, registered in the name of the
 Stockholder, representing a number of shares of Buyer Common Stock equal to
 the Initial Stock Payment, as adjusted pursuant to Section 2.3(a) above.

           (c)  Contingent Cash Payment.  In respect of the First Performance
 Period, within five Business Days after delivery of the Final Computation of
 the First Average Monthly Gross Profit, Buyer shall pay to the Stockholder
 an amount in cash equal to the Contingent Cash Payment, as adjusted pursuant
 to Section 2.3(b) above and Section 2.5 below.

           (d)  Contingent Stock Payment.  In respect of the Second
 Performance Period, within five Business Days after the delivery of the
 Final Computation of the Second Aggregate Monthly Gross Profit, Buyer shall
 deliver to the Stockholder certificates representing the Contingent Stock
 Payment, as adjusted pursuant to Section 2.3(c) above.

      Section 2.5    Working Capital Adjustment.  The Purchase Price shall be
 subject to adjustment by the amount (the "Adjustment Amount"), if any, that
 the Actual Net Working Capital of the Company as reflected in the Closing
 Balance Sheet is less than the Target Net Working Capital.  Within 60 days
 after the Closing Date, Buyer's independent accountants shall perform a
 review of the financial statements of the Company for the period beginning
 December 31, 2005 and ended the Closing Date, including a balance sheet (the
 "Closing Balance Sheet").  The Closing Balance Sheet shall be prepared based
 on the same accounting principles, assumptions and methodologies as those
 used to prepare the Balance Sheet (as hereinafter defined).  The Closing
 Balance Sheet shall be delivered to the Stockholder and Buyer within 60 days
 after the Closing Date.  Upon delivery of the Closing Balance Sheet, the
 Purchase Price will be decreased, but not increased, by the Adjustment
 Amount.  The Adjustment Amount shall be computed by subtracting the Target
 Net Working Capital from the Actual Net Working Capital.  In the event the
 Adjustment Amount is negative, the Purchase Price shall be reduced by such
 amount and the Contingent Cash Payment shall be reduced by such amount.

      Section 2.6    Provisions Relating to the Buyer Common Stock.

           (a)  As of the Closing Date and subject to the restrictions set
 forth in Section 2.6(b), Stockholder shall have all rights with respect to
 the shares of Buyer Common Stock issued to and beneficially owned by the
 Stockholder, including voting rights and dividend rights, as all other
 holders of Buyer Common Stock.

           (b)  The Buyer Shares issued pursuant to this Agreement shall not
 be registered under the Securities Act of 1933, as amended (the "Securities
 Act").  Any sale, assignment, gift, pledge, disposal, or other transfer of
 the Buyer Shares must be made in compliance with the Securities Act.  Each
 certificate representing Buyer Shares shall bear substantially the following
 legend:

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER
      THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD,
      ASSIGNED, TRANSFERRED, PLEDGED, OR OTHERWISE DISPOSED OF EXCEPT IN
      COMPLIANCE WITH THE REQUIREMENTS OF ALL SUCH LAWS.

           (c)  The Buyer Shares shall be issued to the Stockholder with the
 following rights:

                (i)  Piggyback Registration Rights.  If at any time for a
           period of three years after the date hereof Buyer shall determine
           to register any of its shares of Buyer Common Stock on its own
           behalf under the Securities Act, Buyer shall include in such
           registration statement all of the Buyer Shares for registration
           therewith, on terms and conditions that are standard and customary
           with respect to such registrations.

                (ii)  Demand Registration Right.  At any time following the
           consummation of a transaction constituting a Sale of Buyer, but in
           no event later than the third anniversary of the Closing Date, the
           Stockholder may demand registration under the Securities Act of
           all or any portion of the Buyer Shares beneficially owned by the
           Stockholder.

                (iii)  Transferability to Successors.  The registration
           rights provided in this Section 2.6(c) shall inure for the benefit
           of the successors in interest of the Stockholder, whether by
           merger, consolidation or acquisition.

      This Section 2.6(c) shall survive the Closing.

           (d)  Transfers Pursuant to Rule 144.  Buyer shall use its
 commercially reasonable best efforts to take all action as may be reasonably
 required as a condition to the availability of Rule 144 under the Securities
 Act (or any successor exemptive rule hereinafter in effect) with respect to
 the Buyer Shares.  Buyer agrees to provide to the Stockholder upon written
 notice (A) a written statement by Buyer as to its compliance with the
 reporting requirements of Rule 144, (B) a copy of the most recent annual
 report or quarterly report of Buyer as filed with the Securities and
 Exchange Commission (the "SEC"), and (C) such other reports and documents as
 a stockholder of Buyer may reasonably request in availing itself of any rule
 or regulation of the SEC allowing a stockholder of Buyer to sell any of its
 shares of Buyer Common Stock without registration under the Securities Act.
 Buyer further agrees to use its commercially reasonable best efforts to
 facilitate and expedite transfers of Buyer Shares pursuant to Rule 144 under
 the Securities Act, which efforts shall include, but not be limited to,
 timely notice to its transfer agent to expedite such transfer(s) of the
 Buyer Shares.

                                 ARTICLE III
              REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDER

      Except as set forth in the Disclosure Schedule attached to this
 Agreement, which is incorporated by reference herein (the "Disclosure
 Schedule"), the Stockholder hereby represents and warrants to Buyer as
 follows:

      Section 3.1    Organization and Qualification; Stockholder.

           (a)  The Company is a corporation duly organized, validly
 existing, and in good standing under the laws of the State of Delaware, has
 all requisite power and authority to own, lease, and operate its properties
 and to carry on its business as it is now being conducted, and is duly
 qualified and in good standing to do business in each jurisdiction in which
 the nature of the business conducted by it or the ownership or leasing of
 its properties makes such qualification necessary, other than where the
 failure to be so duly qualified and in good standing would not have a
 Material Adverse Effect.

           (b)  Stockholder is a corporation duly organized, validly
 existing, and in good standing under the laws of the State of Delaware, has
 all requisite power and authority to own, lease, and operate its properties
 and to carry on its business as it is now being conducted, and is duly
 qualified and in good standing to do business in each jurisdiction in which
 the nature of the business conducted by it or the ownership or leasing of
 its properties makes such qualification necessary, other than where the
 failure to be so duly qualified and in good standing would not have a
 Material Adverse Effect.

           (c)  The Stockholder beneficially and of record owns, in the
 aggregate, 1,000 shares of Company common stock, $0.0001 par value per
 share (the "Company Common Stock"), which represents all of the issued
 and outstanding capital stock of the Company, free and clear of any
 Encumbrances, limitations on voting rights, charges, and all other adverse
 claims.  Schedule 3.1(c) sets forth the name of each officer, director and
 stockholder of the Stockholder.

      Section 3.2    Governing Documents.  The Stockholder has furnished
 to Buyer true, complete, and correct copies of (a) the certificate of
 incorporation and bylaws of the Company, each as amended or restated to
 the date of this Agreement (the "Company Governing Documents") and (b) the
 certificate of incorporation and bylaws of Stockholder, each as amended or
 restated to the date of this Agreement.  The Company is not in violation of
 any material provision of the Company Governing Documents and the Company
 Governing Documents remain in full force and effect.

      Section 3.3    Capitalization.

           (a)  The authorized capital stock of the Company consists of 1,000
 shares of Company Common Stock, all of which are issued and outstanding.  No
 shares of Company Common Stock are reserved for any purpose.  Each of the
 outstanding shares of Company Common Stock is duly authorized, validly
 issued, and fully paid and non-assessable, and has not been issued in
 violation of (nor are any of the authorized shares of Company Common Stock
 subject to) any preemptive or similar rights under the Company Governing
 Documents, federal or state securities laws, or any agreement to which the
 Company is a party or by which it is bound.

           (b)  The Company does not (i) directly or indirectly own, (ii)
 have any agreement to purchase or otherwise acquire, or (iii) hold any
 interest convertible into or exchangeable or exercisable for, any equity
 interest in any Person.

           (c)  There are no options, warrants, or other rights, agreements,
 arrangements, or commitments of any character to which the Company is a
 party or by which it is bound relating to the issued or unissued Company
 Common Stock or other securities of the Company or obligating the Company
 to grant, issue, or sell any shares of Company Common Stock or other
 securities.  There are no agreements, arrangements, or commitments of any
 character (contingent or otherwise) pursuant to which any Person is or may
 be entitled to receive any payment based on the revenues or earnings, or
 calculated in accordance therewith, of the Company.  There are no voting
 trusts, proxies, or other agreements or understandings with respect to the
 voting of any shares of Company Common Stock.

           (d)  There are no obligations, contingent or otherwise, of the
 Company to (i) repurchase, redeem, or otherwise acquire the capital stock or
 other securities of the Company; or (ii) provide material funds to, or make
 any material investment in (in the form of a loan, capital contribution, or
 otherwise), or provide any guarantee with respect to the obligations of any
 Person.

      Section 3.4    Authority.  The Stockholder has full power and authority
 to execute and deliver this Agreement and the other documents contemplated
 by this Agreement (the "Ancillary Agreements") to which the Stockholder
 is a party, to perform the obligations hereunder and thereunder, and to
 consummate the transactions contemplated hereby and thereby.  This Agreement
 and the Ancillary Agreements to which the Stockholder is a party have been
 duly executed and delivered by the Stockholder and, assuming the due
 authorization, execution, and delivery of this Agreement and the Ancillary
 Agreements by Buyer, constitute the legal, valid, and binding obligations
 of the Stockholder, enforceable in accordance with their respective terms,
 subject to the general principles of equity, regardless of whether
 considered in a proceeding in equity or at law.

      Section 3.5    No Conflict; Required Filings and Consents.

           (a)  Except as set forth in Schedule 3.5(a) of the Disclosure
 Schedule, the execution and delivery of this Agreement and the Ancillary
 Agreements by the Stockholder do not, and the consummation of the
 transactions contemplated hereby and thereby shall not, (i) conflict with
 or violate the Company Governing Documents; (ii) to the knowledge of the
 Stockholder, conflict with or violate in any material respect any federal,
 state, foreign, or local law, statute, ordinance, rule, regulation, order,
 judgment, or decree (collectively, "Laws") applicable to the Company or by
 which any of its properties is bound or subject; or (iii) result in any
 breach of or constitute a default (or an event that with notice or lapse of
 time or both would become a default) under, or give to any other Person any
 rights of termination, amendment, acceleration, or cancellation of, or
 require payment under, or result in the creation of an Encumbrance on any
 of the properties or assets of the Company pursuant to, any material note,
 bond, mortgage, indenture, contract, agreement, lease, license, permit,
 franchise, or other instrument or obligation to which the Company is a
 party or by or to which any of its properties is bound or subject.

           (b)  Except as set forth in Schedule 3.5(b) of the Disclosure
 Schedule, the execution and delivery of this Agreement and the Ancillary
 Agreements by the Stockholder do not, and the consummation of the
 transactions contemplated hereby and thereby shall not, require either
 the Company or the Stockholder to obtain any consent, license, permit,
 approval, waiver, authorization, or order of, or to make any filing with or
 notification to, (i) any governmental or regulatory authority, foreign or
 domestic (federal, state, or local) (collectively, "Governmental Entities")
 or (ii) any party to any Contract.

      Section 3.6    Permits; Compliance.  The Company is in possession
 of all material franchises, grants, authorizations, licenses, permits,
 easements, variances, exemptions, consents, certificates, approvals, and
 orders necessary to own, lease, and operate its properties and to carry on
 its business as it is now being conducted and currently proposed to be
 conducted (collectively, the "Company Permits"), and there is no action,
 proceeding, or investigation pending or, to the knowledge of the
 Stockholder, threatened regarding suspension or cancellation of any of
 the Company Permits.  Except for instances that would not have a Material
 Adverse Effect on the Company, the Company is not in conflict with or in
 default or violation of (a) any Law applicable to the Company or by or to
 which any of its properties is bound or to which it may be subject or (b)
 any of the Company Permits.  Neither the Stockholder nor the Company has
 received any written notice with respect to possible conflicts, defaults,
 or violations of Laws from any Governmental Entity.

      Section 3.7    Financial Statements.

           (a)  The Company has delivered to Buyer the Company's (i) audited
 balance sheet as of December 31, 2005 (the "Balance Sheet") and the related
 income statement and cash flow statement for the period ended December 31,
 2005, (ii) unaudited balance sheet as of February 28, 2006 and the related
 income statement and cash flow statement for the two-month period ended
 February 28, 2006, and (iii) any notes relating thereto (collectively, the
 "Financial Statements").  The Financial Statements are attached hereto as
 Schedule 3.7 of the Disclosure Schedule, are complete and correct in all
 material respects and have been prepared in accordance with GAAP
 consistently applied.  The Financial Statements present fairly the financial
 condition, operating results and cash flows of the Company as of the dates
 and during the periods indicated therein.  Except to the extent reflected or
 reserved against or disclosed in the Financial Statements, or as listed on
 Schedule 3.7(a) of the Disclosure Schedule, the Company has no liabilities
 or obligations of any kind, known or unknown, whether accrued, absolute,
 contingent or otherwise, other than liabilities incurred in the ordinary
 course of business consistent with past practices of the Company since
 December 31, 2005 that will be reflected on the Closing Balance Sheet to
 be prepared and presented to the Stockholder and Buyer after the Closing
 in accordance with Section 2.5 hereof.

           (b)  No part of any receivable or other amount shown or reflected
 in the Financial Statements as being due to the Company has been written
 off, written down, waived or released for an amount less than the book value
 by the Company.

           (c)  Since December 31, 2004, the Company's business has not
 been materially affected by the loss of any customer, or of any source of
 supply or by the cancellation or loss of any order or contract nor, to the
 Stockholder's knowledge, are there any circumstances likely to lead thereto.

           (d)  The Company and the Stockholder have disclosed to Buyer (i)
 all significant deficiencies known to the Company and the Stockholder in the
 design or operation of internal controls which could adversely affect the
 Company's ability to record, process, summarize and report financial data
 and has identified for Buyer any material weaknesses in internal controls,
 and, (ii) to the Stockholder's knowledge any fraud, whether or not material,
 that involves management or other employees who have a significant role in
 the Company's disclosure controls and procedures.

           (e)  The Company and the Stockholder have disclosed on Schedule
 3.7(e) of the Disclosure Schedule any significant changes in internal
 controls or in other factors that could significantly affect internal
 controls during or subsequent to any of the periods covered by the
 Financial Statements, including any corrective actions taken with
 regard to significant deficiencies and material weaknesses.

      Section 3.8    Absence of Certain Changes.  Since December 31, 2005,
 except as set forth on Schedule 3.8 of the Disclosure Schedule, and except
 for transactions contemplated by this Agreement, the Company has conducted
 its business only in the ordinary course and consistent with past practice,
 and has not:

           (a)  suffered any Material Adverse Effect;

           (b)  incurred any liabilities or obligations (absolute, accrued,
 contingent or otherwise) except current liabilities incurred and liabilities
 under contracts entered into in the ordinary course of business and
 consistent with past practice (including obligations or liabilities arising
 from one transaction or a series of related or similar transactions, and
 all periodic installments or payments under any lease or other agreement
 providing for periodic installments or payments, as a single obligation
 or liability), or increased, or experienced any change in any assumptions
 underlying or methods of calculating any bad debt, contingency or other
 reserves;

           (c)  declared, set aside or paid any non-cash dividend or
 distribution in respect of shares of Company Common Stock or other
 securities of the Company or redeemed, purchased or otherwise acquired
 any shares of Company Common Stock or other securities of the Company;

           (d)  issued, delivered, or sold, or authorized the issuance,
 delivery or sale of, any share of Company Common Stock or any option or
 rights with respect thereto, or modification or amendment of any right of
 any holder of outstanding shares of Company Common Stock or options with
 respect thereto;

           (e)  paid, discharged or satisfied any claims, liabilities or
 obligations (absolute, accrued, contingent, known or unknown, or otherwise)
 other than the payment, discharge or satisfaction in the ordinary course of
 business and consistent with past practice of liabilities or obligations
 reflected or reserved against in the Balance Sheet or incurred in the
 ordinary course of business and consistent with past practice since
 December 31, 2005;

           (f)  permitted or allowed any of the assets or properties of the
 Company to be subjected to any Encumbrance except for (i) warehousemen's,
 mechanics', materialmen's, repairmen's or other like liens arising in the
 ordinary course of business consistent with past practice securing sums
 which are not overdue, (ii) pledges or deposits to secure obligations under
 worker's compensation laws or similar legislation, (iii) deposits to secure
 public or statutory obligations of the Company or (iv) deposits to secure
 surety, appeal or customs bonds in the ordinary course of business
 consistent with past practice (collectively "Permitted Liens");

           (g)  written down the value of any inventory or written off as
 uncollectible any notes or accounts receivable with a value greater than
 $25,000;

           (h)  canceled any debts, or waived any claims or rights of
 substantial value;

           (i)  sold, transferred or otherwise disposed of any of its
 properties or assets, except in the ordinary course of business and
 consistent with past practice;

           (j)  disposed of or permitted to lapse any rights to the use of
 any patent, trademark, trade name or copyright, or disposed of or disclosed
 to any Person other than an Affiliate any invention, discovery, know-how,
 trade secret, formula, process or other intellectual property not
 theretofore a matter of public knowledge;

           (k)  granted any general increase in the compensation of employees
 of the Company (including any such increase pursuant to any bonus, pension,
 profit sharing or other plan or commitment) or any increase in the
 compensation payable or to become payable to any employee of the Company in
 excess of merit increases consistent with past practice, and no such
 increase is customary on a periodic basis or required by agreement or
 understanding;

           (l)  made any capital expenditure or commitment for capital
 expenditures, other than those capital expenditures or commitments that
 have been paid in full;

           (m)  made any change in any method of accounting or accounting
 practice or failed to maintain the books and records of the Company in the
 ordinary course of business and consistent with past practice;

           (n)  failed to maintain any of its properties or equipment in
 good operating condition and repair, subject to ordinary wear and tear;

           (o)  failed to maintain in full force and effect all existing
 policies of insurance at least at such levels as were in effect prior to
 such date or canceled any such insurance or, to its knowledge, taken or
 failed to take any action that would enable the insurers under such policies
 to avoid liability for claims arising out of occurrences prior to the
 Closing; or

           (p)  agreed in writing or otherwise to take any action with
 respect to any of the matters described in this Section 3.8.

      Section 3.9    Litigation.

           (a)  Except as set forth in Schedule 3.9(a) of the Disclosure
 Schedule, there is no action, suit, claim, investigation or proceeding,
 whether at Law or in equity (a "Claim"), pending or, to the knowledge of the
 Stockholder, threatened that questions the validity of this Agreement or the
 Ancillary Agreements or any action taken or to be taken by the Company or
 the Stockholder in connection with the consummation of the transactions
 contemplated hereby or thereby or which seeks to prohibit, enjoin or
 otherwise challenge any of the transactions contemplated hereby or thereby.

           (b)  Schedule 3.9(b) of the Disclosure Schedule sets forth an
 accurate and complete list, and a brief description (setting forth the names
 of the parties involved, the court or other Governmental Entity involved,
 the relief sought and the substantive allegations and the status thereof),
 of each Claim pending or, to the knowledge of the Stockholder, threatened
 against or affecting the Company or the Stockholder.  None of the pending or
 threatened Claims set forth on Schedule 3.9(b) of the Disclosure Schedule,
 if adversely determined, would individually or in the aggregate, result in a
 Material Adverse Effect.  To the knowledge of the Stockholder no event has
 occurred and no circumstance, matter or set of facts exist which would
 constitute a valid basis for the assertion by any third party of any Claim,
 other than those listed on Schedule 3.9(b) of the Disclosure Schedule.
 Except as set forth in Schedule 3.9(b) of the Disclosure Schedule, there is
 no outstanding or, to the knowledge of the Stockholder, threatened judgment,
 injunction, judgment, order or consent or similar decree or agreement
 (including, without limitation, any consent or similar decree or agreement
 with any Governmental Entity) against, affecting or naming the Company or
 the Stockholder.

           (c)  To the Stockholder's knowledge, except as disclosed in
 Schedule 3.9(c) of the Disclosure Schedule, there is no claim (whether based
 on statute, negligence, breach of warranty, strict liability or any other
 theory) pending or, to the knowledge of the Stockholder, threatened relating
 directly or indirectly to any product manufactured or sold, or any services
 performed, by the Company.

      Section 3.10   Employee Benefit Plans; Labor Matters.

           (a)  Set forth in Schedule 3.10(a) of the Disclosure Schedule is a
 complete and correct list of all "employee benefit plans" (as defined in the
 Employee Retirement Income Security Act of 1974, as amended ("ERISA")), all
 plans or policies providing for "fringe benefits" (including, without
 limitation, vacation, paid holidays, personal leave, employee discount,
 educational benefit, or similar programs), and each other bonus, incentive,
 compensation, deferred compensation, profit sharing, stock, severance,
 retirement, health, life, disability, group insurance, employment, stock
 option, stock purchase, stock appreciation right, supplemental unemployment,
 layoff, consulting, or any other similar plan, agreement, policy, or
 understanding (whether written or oral, qualified or nonqualified, currently
 effective or terminated), and any trust, escrow, or other agreement related
 thereto that (i) is or has been established, maintained, or contributed to
 by the Company or any ERISA Affiliate (as hereinafter defined) or with
 respect to which the Company or any ERISA Affiliate has any liability, or
 (ii) provides benefits, or describes policies or procedures applicable, to
 any officer, employee, director, former officer, former employee, or former
 director of the Company or any ERISA Affiliate, or any dependent thereof,
 regardless of whether funded (each, an "Employee Plan", and collectively,
 the "Employee Plans"). For purposes of this Agreement, "ERISA Affiliate"
 means, as appropriate, the Company and each Person or other trade or
 business, whether or not incorporated, that is or has been treated as a
 single employer or controlled group member with each pursuant to Section
 414 of the Internal Revenue Code of 1986, as amended (the "Code"), or ERISA
 Section 4001.

           (b)  No written or oral representations have been made to any
 employee or officer or former employee or officer of the Company promising
 or guaranteeing any coverage under any employee welfare plan for any period
 of time beyond the end of the current plan year (except to the extent of
 coverage required under Code Section 4980B), and no Employee Plan provides
 benefits to any employee of the Company, any ERISA Affiliate, or any
 employee's dependents after the employee terminates employment other than as
 required by Law.  The consummation of the transactions contemplated by this
 Agreement shall not accelerate the time of payment or vesting, or increase
 the amount of compensation (including amounts due under Employee Plans) due
 to any employee, officer, former employee, or former officer of the Company.

           (c)  Except as set forth on Schedule 3.10(c) of the Disclosure
 Schedule, all employees of the Company are terminable at will, and to the
 knowledge of the Stockholder, there are no binding commitments, written
 or oral, to any present or former director, officer, agent, or employee
 concerning his or her term, condition, or benefits of employment by the
 Company other than as set forth in Schedule 3.10(c) of the Disclosure
 Schedule.

           (d)  With respect to each Employee Plan, the Stockholder has
 furnished to Buyer true, correct, and complete copies (to the extent
 applicable or existing) of (i) the plan documents and summary plan
 description; (ii) the most recent determination letter received from the
 Internal Revenue Service (the "IRS"); (iii) the annual reports required to
 be filed for the two most recent plan years of each such Employee Plan;
 (iv) all related trust agreements, insurance contracts, or other funding
 agreements that implement such Employee Plan; and (v) all other documents,
 records, or other materials related thereto requested by Buyer.

           (e)  Set forth on Schedule 3.10(e) of the Disclosure Schedule
 is a complete list of all employee pension benefit plans maintained by the
 Company or any ERISA Affiliate or with respect to which the Company or any
 ERISA Affiliate contributes or has any liability ("Employer Contribution
 Plans").  Each Employer Contribution Plan meets the qualification
 requirements of the Code in form and operation, and such Employer
 Contribution Plan, and each trust (if any) forming a part thereof,
 have received a favorable determination letter from the IRS as to the
 qualification under the Code of such Employer Contribution Plan and the
 tax-exempt status of such related trust, and, to the knowledge of the
 Stockholder, nothing has occurred since the date of such determination
 letter that could be expected to adversely affect the qualification of such
 Employer Contribution Plan or the tax-exempt status of such related trust.

           (f)  Neither the Company, nor any ERISA Affiliate, nor any plan
 fiduciary of any Employee Plan, has engaged in any transaction in violation
 of Section 406(a) or (b) of ERISA or any "prohibited transaction" (as
 defined in Section 4975(c)(1) of the Code) that could subject the Company,
 any ERISA Affiliate, or Buyer to any Taxes, penalties, or other liabilities
 resulting from such prohibited transaction.  No condition exists that would
 subject the Company, any ERISA Affiliate, or Buyer to any excise tax,
 penalty tax, or fine related to any Employee Plan.

           (g)  There are no agreements that shall or may provide payments
 to any officer, employee, stockholder, or highly compensated individual that
 shall be "parachute payments" under Code Section 280G that are nondeductible
 to the Company, or subject to Tax under Code Section 4999 for which the
 Company or any ERISA Affiliate would have withholding liability.

           (h)  There is no Employee Plan that is or was subject to Part 3 of
 Title I of ERISA or Title IV of ERISA; each Employee Plan has been operated
 in all material respects in compliance with ERISA, the Code, and all other
 applicable Laws; none of the Employee Plans is or was a "multiple employer
 plan" or "multi-employer plan" (as described or defined in ERISA or the
 Code), nor has the Company or any ERISA Affiliate ever contributed or been
 required to contribute to any such plan; there are no material unfunded
 liabilities existing under any Employee Plans; and each Employee Plan that
 has not been terminated could be terminated as of the Closing Date without
 any material liability to Buyer, the Company, or any ERISA Affiliate.  All
 required contributions to the Employee Plans have been made timely.

           (i)  The Company is not now (nor has ever been) a party to any
 collective bargaining or other labor union contract, and the Company is not
 in negotiations concerning a collective bargaining agreement.  The Company
 is in material compliance with all applicable Laws respecting employment,
 employment practices, and wages and hours.  There is no pending or, to the
 knowledge of the Stockholder, threatened labor dispute, strike, or work
 stoppage against the Company that may interfere with the business activities
 of the Company.  Neither the Company nor any of its representatives or
 employees has committed any unfair labor practices in connection with the
 operation of the Company's business, and there is no pending or, to the
 knowledge of the Stockholder, threatened charge or complaint against the
 Company by the National Labor Relations Board or any comparable Governmental
 Entity.

           (j)  Schedule 3.10(j) of the Disclosure Schedule sets forth, and
 the Stockholder has provided to Buyer true and correct copies of, each of
 the following with respect to the Company: (i) all employment agreements
 with officers or employees; (ii) any severance agreements, programs,
 policies, plans, or arrangements, whether or not written; (iii) all
 agreements with consultants obligating the Company to make annual cash
 payments in an amount exceeding $10,000; and (iv) all non-competition
 agreements.

           (k)  The Company has not amended or taken any other action
 with respect to any of its Employee Plans or any of the plans, programs,
 agreements, policies, or other arrangements described in this Section 3.10
 since December 31, 2005.

      Section 3.11   Taxes.

           (a)  All returns and reports (the "Tax Returns") of or with
 respect to any Tax that are required to be filed by or with respect to the
 Company or its business or activities have been duly and timely filed.  All
 Taxes that have been or are due have been timely paid in full, except Taxes
 that are being contested in good faith by appropriate proceedings and for
 which the Company shall have set aside on its books adequate reserves.  The
 Company is not subject to taxation by any jurisdiction where it does not
 file Tax Returns, except where the failure to do so would not have a
 Material Adverse Effect on the Company.  All withholding Tax requirements
 imposed on or with respect to the Company have been satisfied in full in all
 respects.  No penalty, interest, or other charge is due with respect to the
 late filing of any such Tax Return or late payment of any such Tax.

           (b)  Except as set forth on Schedule 3.11(b) of the Disclosure
 Schedule, there is not in force any extension of time with respect to the
 due date for the filing of any Tax Return of or with respect to the Company
 nor any waiver or agreement for any extension of time for the assessment,
 collection, or payment of any Tax of or with respect to the Company.

           (c)  There are no pending audits, actions, proceedings,
 investigations, disputes, or claims with respect to or against the Company
 for or with respect to any Taxes; no assessment, deficiency, or adjustment
 has been assessed or proposed with respect to any Tax Return of or with
 respect to the Company; and, to the knowledge of the Stockholder, there is
 no reasonable basis on which any claim for material Taxes can be asserted
 against the Company, other than those disclosed (and to which are attached
 true and complete copies of all audit or similar reports) on Schedule
 3.11(c) of the Disclosure Schedule.  The Stockholder has delivered to Buyer
 correct and complete copies of all Tax Returns, examination reports, and
 statements of any deficiencies assessed against or agreed to by the Company
 during the past five years.

           (d)  Neither the Company nor the Stockholder is a party to any
 written Tax allocation or sharing agreements or any unwritten Tax allocation
 or sharing arrangements.  The Company is not liable for the Taxes of any
 Person under federal, state, foreign, or local Law as a transferee,
 successor, by contract, or otherwise.

           (e)  Except for inchoate statutory liens for current Taxes not yet
 due, no liens for Taxes exist upon the assets of the Company.

           (f)  The Company shall not be required to include any amount in
 income for any taxable period beginning after December 31, 2005 as a result
 of a change in accounting method for any taxable period ending on or before
 December 31, 2005 or pursuant to any agreement with any Tax authority with
 respect to any such taxable period.

           (g)  Except as set forth on Schedule 3.11(g) of the Disclosure
 Schedule, no property of the Company is held in an arrangement for which
 partnership Tax Returns are being filed, and the Company does not own any
 interest in any controlled foreign corporation (as defined in Section 957 of
 the Code), passive foreign investment company (as defined in Section 1296 of
 the Code), foreign trust, or other Person the income of which is required to
 be included in the income of the Company.

           (h)  No property of the Company is "tax-exempt use property"
 (within the meaning of Section 168(h) of the Code) or "tax-exempt bond
 financed property" (within the meaning of Section 168(g)(5) of the Code).

           (i)  Except as set forth on Schedule 3.11(i) of the Disclosure
 Schedule, none of the transactions contemplated by this Agreement shall
 result in any Tax liability or the recognition of any item of income or
 gain to the Company.

           (j)  The Company has not made an election under Section 341(f) of
 the Code, and it is not a United States real property holding corporation
 within the meaning of Code Section 897(c)(2) during the applicable period
 specified in Code Section 897(c)(1)(A)(ii).

      Section 3.12   Certain Business Practices.  To the knowledge of the
 Stockholder, neither the Company nor any director, officer, stockholder,
 agent, or employee of the Company has: (a) used any funds on behalf of the
 Company for unlawful contributions, gifts, entertainment, or other unlawful
 expenses relating to political activity; (b) made any unlawful payment to
 foreign or domestic government officials or employees or to foreign or
 domestic political parties or campaigns or violated any provision of the
 Foreign Corrupt Practices Act of 1977, as amended; or (c) made any other
 unlawful payment.

      Section 3.13   Brokers; Other Transactions.  No broker, finder, or
 investment banker is entitled to any brokerage, finders, or other fee or
 commission in connection with the transactions contemplated by this
 Agreement based upon arrangements made by or on behalf of the Company or
 the Stockholder.  The Stockholder is not a party or subject to any actual
 or prospective agreement, arrangement, or understanding, written or oral,
 express or implied, involving any transaction that is inconsistent with the
 Stockholder's execution and delivery of this Agreement.

      Section 3.14   Insurance.  Schedule 3.14 of the Disclosure Schedule
 lists all insurance policies currently in effect under which the Company
 is a beneficiary or an insured.  As of the date of this Agreement, the
 Stockholder is not aware of any notice that any of the policies listed on
 Schedule 3.14 of the Disclosure Schedule have been or shall be canceled
 prior to its scheduled termination date, or would not be renewed
 substantially on the same terms now in effect if the insured party requested
 renewal or has received notice from any of its insurance carriers that any
 insurance premiums shall be subject to increase in an amount materially
 disproportionate to the amount of the increases with respect thereto (or
 with respect to similar insurance) in prior years.  The Company is not in
 default under any such policy and all premiums due and payable with respect
 to such coverage have been paid or accrued.

      Section 3.15   Properties, Contracts; Leases and Other Agreements; Bank
 Accounts.

           (a)  The Company has good and valid title to, or a valid leasehold
 interest in, all of the properties and assets owned by it or used in the
 operation of the Company's business, including, without limitation, each
 item of equipment and other personal property, tangible, intangible or
 otherwise, included as an asset in the Balance Sheet (other than inventory
 and equipment disposed of in the ordinary course of business since December
 31, 2005) and to each item of personal property, acquired since December 31,
 2005, free and clear of any Encumbrances except (x) Permitted Liens, and (y)
 as set forth in Schedule 3.15(a) of the Disclosure Schedule.  Schedule
 3.15(a) of the Disclosure Schedule contains a detailed list as of December
 31, 2005 of all machinery, equipment, vehicles, furniture and other personal
 property owned or used by the Company in the operation of its business,
 having an original cost of $10,000 or more.

           (b)  The Company does not own any real estate.  All leasehold
 interests for real property and any material personal property used by the
 Company in its business are held pursuant to lease agreements which are
 valid and enforceable in accordance with their terms, the agreements for
 which are listed on Schedule 3.15(b) of the Disclosure Schedule.  To the
 knowledge of the Stockholder, all such properties comply in all material
 respects with all applicable private agreements (to which the Company is a
 party), zoning requirements and other Laws relating thereto and there are no
 condemnation proceedings pending or, to the knowledge of the Stockholder,
 threatened with respect to such properties.  The Company has not assigned or
 subleased its interests under such leases or the assets covered thereby.
 Each such lease has been duly and validly executed, is in full force and
 effect and constitutes the valid and binding agreement of the Company
 thereto.

           (c)  Except as set forth on Schedule 3.15(c) of the Disclosure
 Schedule, and excluding trade accounts payable incurred in the ordinary
 course of business and payable to Persons other than Affiliates of the
 Company, the Company does not have any liabilities for borrowed funds,
 extensions of credit or other advances that are subject to repayment whether
 pursuant to a written agreement, oral understanding or course of conduct,
 and whether reflected on the Financial Statements as indebtedness, accounts
 payable or otherwise, and any such liability set forth on Schedule 3.15(c)
 of the Disclosure Schedule may be prepaid at any time without premium or
 penalty.

           (d)  Except as set forth in Schedule 3.15(d) of the Disclosure
 Schedule, the Company is not currently a party to any agreements, contracts
 or commitments relating to the acquisition of the assets or capital stock of
 any other business enterprise.

           (e)  Except as set forth in Schedule 3.15(e) of the Disclosure
 Schedule, the Company is not a party to any agreements, loans, contracts,
 leases, guarantees, letters of credit, lines of credit or commitments of
 the Company not referred to elsewhere in this Agreement which:

                (i)  involve potential payments by the Company or incurring
      by the Company of costs or obligations, of more than $10,000 in the
      aggregate;

                (ii)  involve payments based on profits of the Company;

                (iii)  relate to the future purchase of goods or services
      in excess of the requirements of the business of the Company at current
      levels or for normal operating purposes;

                (iv) include powers of attorney or grants of agency by the
      Company;

                (v)  cannot be canceled by the Company without penalty or
      premium on no more than 30 days notice;

                (vi)  were not made in the ordinary course of business; or

                (vii)  otherwise materially affect the business of the
      Company or financial condition of the Company.

           (f)  Except as set forth in Schedule 3.15(f) of the Disclosure
 Schedule, no current contracts material to the business of the Company are
 terminable or are subject to modification by reason of the consummation of
 the transactions contemplated by this Agreement and the Ancillary Agreements
 and the Company has not received notice of any potential termination or
 modification of such contracts.

           (g)  Except as set forth in Schedule 3.15(g) of the Disclosure
 Schedule, to the knowledge of the Stockholder, the Company is not in
 default, technical or otherwise, of any real estate lease, equipment lease,
 loan or credit agreement, or any other contract or agreement to which the
 Company is a party , and to the knowledge of the Stockholder no event or
 condition has occurred or exists which, with the passage of time, giving of
 notice or both, would cause any party to be in default thereunder.

           (h)  Set forth on Schedule 3.15(h) of the Disclosure Schedule is
 an accurate and complete list showing the name and address of each bank,
 securities broker, mutual fund, investment company, investment adviser or
 other financial institution or similar Person with which the Company has an
 account, including the account or box number and the names of all Persons
 authorized to draw thereon or have access thereto.

           (i)  Except as set forth on Schedule 3.15(i) of the Disclosure
 Schedule all material contracts and agreements to which the Company is a
 party ("Contracts") (i) are valid and enforceable in accordance with their
 respective terms, subject to the general principles of equity, regardless of
 whether considered in a proceeding in equity or at law; (ii) no Default (as
 hereinafter defined) exists under any Contract either by the Company or, to
 the knowledge of the Stockholder, by any other party thereto; (iii) neither
 the Company nor the Stockholder is aware of the assertion by any third party
 of any claim of Default or breach under any of the Contracts; and (iv)
 neither the Company nor the Stockholder has knowledge of any present
 intention on the part of any significant currently existing customer or
 supplier or other business partner of the Company to either (A) terminate or
 significantly adversely change its current existing business relationship
 with the Company either now or in the foreseeable future, or (B) fail to
 renew or extend its current existing business relationship with the Company
 at the end of the term of any existing contractual arrangement such entity
 may have with the Company.  For purposes of this Agreement, the term
 "Default" means, with respect to any Contract, (x) any material breach of or
 default under such Contract, (y) any event, other than the normal passage of
 time, which would (either with or without notice or lapse of time or both)
 give rise to any right of termination, cancellation or acceleration of any
 obligation to repay with respect to such Contract, or (z) any event, other
 than the normal passage of time, which would result in either a significant
 increase in the obligations or liabilities of, or a loss of any significant
 benefit to, the party in question under such Contract.

           (j)  Set forth on Schedule 3.15(j) of the Disclosure Schedule is
 an accurate and complete list showing all Contracts whereby the Company is
 providing products or services of any kind to a third party where the value
 of such Contract equals or exceeds $25,000.

           (k)  Except as set forth on Schedule 3.15(k) of the Disclosure
 Schedule, the Company has not granted any right of first refusal or similar
 right in favor of any third party with respect to any material portion of
 its properties or assets or entered into any non-competition agreement or
 similar agreement restricting its ability to engage in any business in any
 location.

      Section 3.16   Intellectual Property.  Schedule 3.16 of the Disclosure
 Schedule sets forth a complete and correct list of each patent application,
 trademark (whether or not registered), trademark application, trade name,
 service mark, copyright and other proprietary intellectual property
 (including, without limitation, proprietary computer software, whether
 in object or source form) owned or used by the Company (the "Company
 Intellectual Property").  To the knowledge of the Stockholder, the Company
 Intellectual Property, if any, is valid and enforceable, and the Company
 has the exclusive right to use such Company Intellectual Property.  To the
 knowledge of the Stockholder, the current use by the Company of such Company
 Intellectual Property, if any, does not infringe the rights of any other
 Person, and no other Person is infringing the rights of the Company in any
 such Company Intellectual Property.

      Section 3.17   Environmental Matters.  Except for matters disclosed in
 Schedule 3.17 of the Disclosure Schedule: (a) the properties, operations,
 and activities of the Company comply currently with, and have at all times
 complied, in all material respects with, all applicable Environmental Laws
 (as hereinafter defined); (b) the Company (or its properties or operations)
 is not subject to any existing, pending, or, to the knowledge of the
 Stockholder, threatened action, suit, claim, investigation, inquiry, or
 proceeding by or before any Governmental Entity under any Environmental
 Law; (c) there are no physical or environmental conditions existing on any
 property used by the Company or resulting from any of its operations or
 activities, past or present, at any location, that would give rise to any
 on-site or off-site remedial obligations or other liabilities imposed under
 any Environmental Laws or that would affect the soil, groundwater, surface
 water, or human health; (d) to the knowledge of the Stockholder, there has
 been no exposure of any Person or property to hazardous substances or any
 pollutant or contaminant, nor has there been any release of hazardous
 substances or any pollutant or contaminant into the environment, by the
 Company or in connection with any of its properties or operations; and
 (e) the Stockholder has made available to Buyer all internal and external
 environmental audits and studies and all correspondence on environmental
 matters in the possession of the Company relating to any of its current or
 former properties or operations.

      For purposes of this Agreement, the term "Environmental Laws" means any
 and all Laws or orders of any Governmental Entity pertaining to health or
 the environment currently in effect in any and all jurisdictions in which
 the Company owns property or conducts business, including without
 limitation, the Comprehensive Environmental, Response, Compensation, and
 Liability Act of 1980 ("CERCLA"), as amended; the Resource Conservation and
 Recovery Act of 1976 ("RCRA"), as amended; any state Laws implementing the
 foregoing federal laws; and all other environmental conservation or
 protection Laws.  For purposes of this Agreement, the terms "hazardous
 substance" and "release" have the meanings specified in CERCLA and RCRA, and
 the term "disposal" has the meaning specified in RCRA; provided, however,
 that to the extent the Laws of the state in which the property is located
 establish a meaning for "hazardous substance," "release," or "disposal"
 that is broader than that specified in either CERCLA or RCRA, such broader
 meaning shall apply.

      Section 3.18   Licenses; Etc.

           (a)  Schedule 3.18(a) of the Disclosure Schedule contains a list
 and description of all currently effective material permits, licenses, and
 authorizations of and registrations and qualifications with, Governmental
 Entities and self-regulatory organizations applicable to the business of the
 Company.

           (b)  Except as set forth on Schedule 3.18(b) of the Disclosure
 Schedule, none of the items required to be disclosed on Schedule 3.18(a) of
 the Disclosure Schedule is terminable as the result of, has increased rights
 or obligations as a result of, or becomes vested or accelerated by, or
 otherwise requires the consent or other approval of any other Person with
 respect to or as a result of, the transactions contemplated by this
 Agreement.  The Company is in compliance in all material respects under
 all licenses and permits by which any of its properties or assets is bound
 and, to the knowledge of the Stockholder, (i) no event has occurred that
 constitutes a violation or breach of or a default (with the passage of time
 or the giving of notice or both) in respect of any thereof, and (ii) each of
 the other parties thereto or bound thereby has performed all the obligations
 required to be performed by it to date and is not in default thereunder.
 Each of the items required to be disclosed in Schedule 3.18(a) of the
 Disclosure Schedule is in full force and constitutes a legal, valid, and
 binding obligation of the Company and the other parties thereto, enforceable
 in accordance with its terms, subject to the general principles of equity,
 regardless of whether considered in a proceeding in equity or at law.
 Except as set forth on Schedule 3.18(b) of the Disclosure Schedule, the
 Stockholder does not know of any material client or customer that intends to
 terminate its relationship with the Company as a result of the consummation
 of the transactions contemplated by this Agreement or any of the related
 transactions.  True and complete copies of all items required to be
 disclosed on Schedule 3.18(a) of the Disclosure Schedule have been delivered
 to Buyer.

      Section 3.19   Contracts to Acquire an Interest in the Company.  Other
 than this Agreement, there are no contracts, agreements, understandings,
 or other rights, whether written or oral, granted by the Company or the
 Stockholder to any Person pursuant to which such Person may be entitled
 to receive an equity interest in the Company or any payment with respect
 thereto.

      Section 3.20   Employees.

           (a)  Schedule 3.20(a) of the Disclosure Schedule sets forth an
 accurate, correct, and complete list of all employees of the Company as of
 the Execution Date, including name, title or position, the present annual
 compensation or wage rate, any interests in any bonus or incentive
 compensation plan, and any other perquisite or form of non-cash
 compensation.  To the knowledge of the Stockholder, no employee is subject
 to a non-competition or any other form of agreement, whether written or
 oral, that would prevent such employee from continuing as an employee of the
 Company or Buyer, as the case may be, upon consummation of the transactions
 contemplated by this Agreement or devoting his or her full talents,
 knowledge, and efforts to the Company or Buyer, as the case may be,
 upon consummation of the transactions contemplated by this Agreement.

           (b)  Schedule 3.20(b) of the Disclosure Schedule sets forth an
 accurate and complete list of all loans, debts, and other obligations
 (collectively, "Employee Loans") owed by any employee of the Company that
 shall remain outstanding after the Closing.

      Section 3.21   Securities Law Matters.  The Stockholder represents and
 warrants to Buyer the following:

           (a)  Stockholder is an "accredited investor" as that term is
 defined in Rule 501 of Regulation D under the Securities Act.

           (b)  Stockholder, by reason of its business and financial
 experience, has the capacity to protect its interests in investments in
 illiquid securities such as the Buyer Shares.  Stockholder has carefully
 evaluated its financial resources and investment position and the risks
 associated with an investment in the Buyer Shares and is able to bear the
 economic risk of such investment.  Stockholder has adequate means for
 providing for its current needs and contingencies and has no need for
 liquidity in this investment.  Stockholder's overall commitment to
 investments that are not readily marketable is not disproportionate to its
 net worth and Stockholder's investment in the Buyer Shares shall not cause
 such overall commitment to become excessive.

           (c)  Stockholder has reviewed the merits of an investment in the
 Buyer Shares with tax and legal counsel and an investment advisor to the
 extent deemed advisable by Stockholder.  Stockholder acknowledges that it
 has been given a full opportunity to ask questions of and to receive answers
 from the officers, agents, and representatives of Buyer concerning the terms
 and conditions of the investment and the business of Buyer and to obtain
 such other information as desired in order to evaluate an investment in the
 Buyer Shares.  Stockholder further acknowledges that it has relied solely
 upon its own independent investigations, and has received no representation
 or warranty from Buyer or any of its Affiliates, employees, or agents, other
 than as set forth herein.  Stockholder further acknowledges and understands
 that no federal or state Governmental Entity has made any finding or
 determination as to the fairness of an investment in, or any recommendation
 or endorsement of, the Buyer Shares.

           (d)  Stockholder understands that the Buyer Shares to be issued
 pursuant to this Agreement shall constitute "restricted securities" within
 the meaning of Rule 144 under the Securities Act and may not be sold,
 pledged, or otherwise transferred in the absence of an effective
 registration statement pertaining thereto under the Securities Act and under
 any applicable state securities laws or an exemption from the registration
 requirements thereof.  Stockholder further understands that each certificate
 representing the Buyer Shares shall bear substantially the legend set forth
 in Section 2.6(b) above.

           (e)  Stockholder acknowledges and agrees that the acquisition
 of Buyer Shares shall be solely for Stockholder's account, and not for the
 account of any other Person or with a view to any resale or distribution
 thereof.  Stockholder understands that the Buyer Shares have not been
 registered under the Securities Act, or the securities laws of certain
 states, in reliance upon specific exemptions from registration thereunder,
 and agrees that the Buyer Shares may not be sold, offered for sale,
 transferred, pledged, hypothecated or otherwise disposed of except in
 compliance with the Securities Act and applicable state securities laws.
 Stockholder further understands that, except as specifically set forth in
 this Agreement, Buyer has no obligation to cause the Buyer Shares to be
 registered under the Securities Act or to comply with any exemption under
 the Securities Act.

           (f)  Stockholder understands that the representations and
 warranties set forth in this Section 3.21 are being provided to determine
 whether the Buyer Shares may be issued to Stockholder pursuant to Section
 4(2) of the Securities Act and similar exemptions under applicable state
 securities laws.  Stockholder shall notify Buyer immediately of any change
 in any such information occurring prior to the Closing.

      Section 3.22   Debt Owed to Stockholder.  As of the Execution Date,
 there are no outstanding loans or other debt obligations due to the
 Stockholder from the Company, and all debt obligations owed by the Company
 to the Stockholder prior to Closing shall have been forgiven by the
 Stockholder prior to the Closing Date.

      Section 3.23   Accounts Receivable.  All accounts receivable of the
 Company that are reflected on the Balance Sheet or on the accounting records
 of the Company as of the Execution Date (collectively, the "Accounts
 Receivable") represent valid obligations arising from sales actually made
 or services actually performed in the ordinary course of business of the
 Company.  Unless paid prior to the Closing Date, the Accounts Receivable
 are or will be as of the Closing Date current and collectible net of the
 respective reserves shown on the Balance Sheet or on the accounting records
 of the Company as of the Closing Date (which reserves are adequate and
 calculated consistent with past practice in accordance with GAAP).  There is
 no contest, claim, or right of set-off that are not reserved for under any
 Contract with any obligor of an Accounts Receivable relating to the amount
 or validity of such Accounts Receivable, as so reserved.  Schedule 3.23
 of the Disclosure Schedule contains a complete and accurate list of all
 Accounts Receivable as of the date of the Balance Sheet, which list sets
 forth the aging of such Accounts Receivable.

      Section 3.24   Inventory.  All inventory of the Company consists of a
 quality and quantity usable and salable in the ordinary course of business
 of the Company, except for obsolete items and items of below standard
 quality, all of which have been written off or written down to net
 realizable value in the Balance Sheet or on the accounting records of the
 Company as of the Execution Date, as the case may be.  All inventories not
 written off have been priced at the lower of cost or market on a first in,
 first out basis.  Schedule 3.24 of the Disclosure Schedule contains a
 complete and accurate list of all inventory of the Company as of the date
 of the Balance Sheet.

      Section 3.25   No Undisclosed Liabilities.  Except as set forth in
 Schedule 3.25 of the Disclosure Schedule, the Company has no liabilities
 or obligations of any nature, except for (i) liabilities or obligations
 reflected or reserved against in the Balance Sheet, and (ii) current
 liabilities incurred in the ordinary course of business of the Company
 since the respective dates thereof, none of which are material.

      Section 3.26   Ownership of Company Shares.  The Company Shares are
 owned of record and beneficially by the Stockholder and constitute all of
 the securities owned of record or beneficially by the Stockholder and the
 Stockholder has the right to sell, assign, transfer and deliver the Company
 Shares.  The Stockholder has sole voting power and sole dispositive power
 with respect to all of the Company Shares.  All of the Company Shares are
 free and clear of all Encumbrances.  As of the Closing, the Stockholder has,
 and shall have as of the Closing Date, the ability to vote all of the
 Company Shares entitled to vote on this Agreement and the transactions
 contemplated hereby.  Upon the Closing, Buyer will acquire good and valid
 title to the Company Shares free and clear of any Encumbrances.

      3.27 Relationships with Affiliates.

           (a)  Except as set forth in reasonable detail on Schedule 3.27(a)
 of the Disclosure Schedule, no officer, director or employee of the Company
 or the Stockholder or any of their respective Affiliates, or any immediate
 family member of any of the foregoing, provides or causes to be provided to
 the Company any assets, services or real property facilities, and the
 Company does not provide or cause to be provided to any such officer,
 director, employee, Stockholder or Affiliate, or any immediate family member
 of any of the foregoing, any assets, services or real property facilities.
 Except as set forth in reasonable detail on Schedule 3.27(a) of the
 Disclosure Schedule, neither the Stockholder nor any of its Affiliates
 (other than the Company) has any interest of any nature in any of the assets
 used in connection with the operation of (or otherwise related to) the
 business of the Company.

           (b)  Schedule 3.27(b) of the Disclosure Schedule sets forth a true
 and complete list and brief description of all Contracts pursuant to which
 the Stockholder or any of the Company's officers, directors or employees,
 or their respective Affiliates or immediate family members, (i) have a
 pecuniary interest in any supplier, vendor or customer of the Company or
 any Person with which the Company is in competition (excluding shares of
 publicly traded stock or securities aggregating less than three percent of
 the outstanding shares thereof), (ii) is indebted to the Company, (iii) is
 a party to any non-employment related Contract or transaction with the
 Company, or (iv) have any debts, liabilities or obligations guaranteed by
 the Company, or the Company is a surety or accommodation party with respect
 thereto.

      Section 3.28   Accuracy of Information.  Neither the representations or
 warranties of the Stockholder in this Agreement nor any statement contained
 in the Disclosure Schedule, certificates or other written statements and
 information furnished to Buyer or its representatives by or on behalf of
 the Stockholder or the Company in connection with the negotiation, execution
 and delivery of this Agreement and the Ancillary Agreements, and the
 transactions contemplated hereby and thereby contain any material
 misstatement of fact or omit to state a material fact or any fact necessary
 to make the statements contained herein and therein, in light of the
 circumstances under which such statements are made, not misleading.  As of
 the Execution Date, to the Stockholder's knowledge, there is no material
 fact relating to the business, operations, financial condition or prospects
 of the Company that has not been set forth or referred to in this Agreement,
 the Ancillary Agreements or the Disclosure Schedule, certificates,
 statements or information heretofore furnished to Buyer.

                                  ARTICLE IV
                   REPRESENTATIONS AND WARRANTIES OF BUYER

      Buyer hereby represents and warrants to the Stockholder as follows:

      Section 4.1    Organization.  Buyer is a corporation duly organized,
 validly existing, and in good standing under the laws of Delaware, and is
 duly qualified and in good standing to do business as a foreign corporation
 in each jurisdiction in which the failure to be so qualified and in good
 standing would affect the validity or enforceability of this Agreement or
 would have a Material Adverse Effect on Buyer.

      Section 4.2    Authority.  Buyer has all requisite corporate power
 and authority to execute and deliver this Agreement and the Ancillary
 Agreements, to perform its obligations hereunder and thereunder, and to
 consummate the transactions contemplated hereby and thereby.  The execution
 and delivery of this Agreement and the Ancillary Agreements by Buyer and the
 consummation by Buyer of the transactions contemplated hereby and thereby
 have been duly authorized by all necessary corporate action and no other
 corporate proceedings on the part of Buyer is necessary to authorize this
 Agreement and the Ancillary Agreements or to consummate the transactions
 contemplated hereby and thereby.  This Agreement and the Ancillary
 Agreements have been duly executed and delivered by Buyer and, assuming
 the due authorization, execution, and delivery of this Agreement and the
 Ancillary Agreements by the Stockholder, constitute the legal, valid, and
 binding obligations of Buyer, enforceable in accordance with their
 respective terms, subject to the general principles of equity, regardless
 of whether considered in a proceeding in equity or at law.

      Section 4.3    No Conflict; Required Filings and Consents.

           (a)  The execution and delivery of this Agreement and the
 Ancillary Agreements by Buyer do not, and the consummation of the
 transactions contemplated hereby and thereby shall not, (i) conflict with or
 violate the organizational and governing documents of Buyer, in each case as
 amended or restated as of the date of this Agreement (including, without
 limitation, the certificate of incorporation or bylaws); (ii) to the
 knowledge of Buyer, conflict with or violate any Laws applicable to Buyer or
 by which any of its properties is bound or subject; or (iii) result in any
 breach of or constitute a default (or an event that with notice or lapse of
 time or both would become a default) under, or give to others any rights of
 termination, amendment, acceleration or cancellation of, or result in the
 creation of an Encumbrance on any of the properties or assets of Buyer
 pursuant to, any material note, bond, mortgage, indenture, contract,
 agreement, lease, license, permit, franchise, or other instrument or
 obligation to which Buyer is a party or by or to which Buyer or any of
 its properties is bound or subject.

           (b)  The execution and delivery of this Agreement and the
 Ancillary Agreements by Buyer does not, and the consummation of the
 transactions contemplated by this Agreement and the Ancillary Agreements
 shall not, require Buyer to obtain any consent, license, permit, approval,
 waiver, authorization, or order of, or to make any filing with or
 notification to, any Governmental Entity.

      Section 4.4    Financial Ability to Close.  Buyer, at Closing, shall
 have the financial ability to perform its obligations under this Agreement.

      Section 4.5    Public Filings.  Buyer has made available to the
 Stockholder true and complete copies of its annual report on Form 10-KSB for
 the fiscal year ended October 31, 2005, its quarterly reports on Form 10-QSB
 for the fiscal quarter ended January 31, 2006, all current reports on Form
 8-K filed since January 1, 2006, and its proxy statement in connection with
 the 2005 annual meeting of stockholders (collectively, the "SEC Documents")
 and shall make available to the Stockholder any similar SEC Documents filed
 with the SEC.  As of their respective filing dates, each SEC Document
 complied, or shall comply, in all material respects with the requirements of
 the Securities Exchange Act of 1934, as amended, and as of their respective
 dates none of the SEC Documents contained, or shall contain, any untrue
 statement of a material fact or omitted to state a material fact required to
 be stated therein or necessary in order to make the statements therein, in
 light of the circumstances under which they were made, not misleading.

      Section 4.6    No Material Adverse Change.  There has been no material
 adverse effect on the business, operations, assets, financial condition, or
 results of operations of Buyer or its ability to consummate the transactions
 contemplated hereby since the annual report on Form 10-KSB for the period
 ended October 31, 2005, except as may be disclosed by Buyer in any SEC
 Document.

      Section 4.7    Securities Law Compliance.  Assuming the representations
 and warranties of Stockholder set forth in Section 3.21 hereof are true and
 correct, the issuance of the Buyer Shares pursuant to this Agreement shall
 be exempt from the registration requirements of the Securities Act and all
 applicable state securities or "Blue Sky" laws.  Buyer has given the
 Stockholder and its agents and representatives, and agrees to continue to
 give the Stockholder and its agents and representatives through the Closing
 Date, the opportunity to ask questions of, and receive answers from,
 executive officers of Buyer concerning Buyer and the Buyer Shares.

                                  ARTICLE V
                            PRE-CLOSING COVENANTS

      The parties agree as follows with respect to the period between the
 Execution Date and the Closing Date:

      Section 5.1    General.  Each of Buyer and the Stockholder will use
 all commercially reasonable efforts to take all action and to do all things
 necessary, proper, or advisable in order to consummate and make effective
 the transactions contemplated by this Agreement.

      Section 5.2    Operation of Business.  Stockholder and the Company
 shall use all commercially reasonable efforts to preserve substantially
 intact the Company's business organization and present relationships with
 its customers, suppliers and employees and to maintain all of its insurance
 currently in effect.  Neither the Stockholder nor the Company will take any
 action that could reasonably be expected to have a Material Adverse Effect
 on the Company or the transactions contemplated by this Agreement and the
 Ancillary Agreements.  From the Execution Date through the Closing Date,
 without the prior written consent of Buyer, neither the Company nor the
 Stockholder will engage in any practice, take any action, or enter into
 any transaction outside the ordinary course of the Company's business or
 inconsistent with past practice.  Without limiting the generality of the
 foregoing:

           (a)  The Company will not sell, lease, transfer, convey, assign
 or otherwise dispose of any interest in any assets, tangible or intangible,
 other than for a fair consideration in the ordinary course of the Company's
 business, or as contemplated by this Agreement.

           (b)  The Company will not enter into any agreement, contract,
 lease or license (or series of related agreements, contracts, leases and
 licenses) outside the ordinary course of the Company's business.

           (c)  The Company will not accelerate, extend, materially modify,
 renew, terminate or cancel any agreement, contract, lease or license (or
 series of related agreements, contracts, leases and licenses) involving more
 than $10,000 to which the Company is a party or by which it is bound outside
 the ordinary course of the Company's business, without the prior consent of
 Buyer.

           (d)  The Company will not impose any Encumbrance upon any of its
 assets, tangible or intangible.

           (e)  The Company will not make any capital expenditure (or series
 of related capital expenditures) outside the ordinary course of the
 Company's business.

           (f)  The Company will not make any capital investment in, any loan
 to, or any acquisition of the securities or assets of, any other Person (or
 series of related capital investments, loans and acquisitions) outside the
 ordinary course of the Company's business.

           (g)  The Company will not issue any note, bond or other debt
 security or create, incur, assume, or guarantee any indebtedness for
 borrowed money or capitalized lease obligation involving more than $10,000
 in the aggregate.

           (h)  The Company will not merge with any other Person, consolidate
 or sell or consent to the sale of any of the material assets of the Company
 or acquire any material assets outside the ordinary course of the Company's
 business.

           (i)  The Company will not authorize or effect any change or
 amendment in the Company Governing Documents.

           (j)  The Company will not declare or pay any dividend, or make
 any distribution to the Stockholder, or repurchase or redeem any of its
 outstanding capital stock.

           (k)  The Company will not issue or sell any shares of capital
 stock of the Company or any other equity interest or any beneficial interest
 therein (including, without limitation, any options or warrants).

           (l)  The Company will not, except as otherwise required by Law or
 consistent with past practices, take any action with respect to the grant
 of any severance or termination pay (other than pursuant to policies or
 agreements of the Company as the case may be, in effect on the Execution
 Date).

           (m)  The Company will not make any change in the key management
 structure of the Company, including without limitation the hiring of
 additional officers or the termination of existing officers.

           (n)  The Company will not make any material Tax elections.

           (o)  The Company will not fail to maintain any material asset in
 substantially its current state of repair, normal wear and tear excepted.

           (p)  The Company will not make any material change in its
 accounting policies or practices.

           (q)  The Company will not waive, settle or release any claim or
 cause of action.

           (r)  The Company will not declare or issue any bonus or other
 such payments to, or increase the salary or wages of, whether or not in the
 ordinary course of the Company's business, any management or executive
 employees of the Company.

           (s)  The Company will not commit or agree to any of the foregoing.

      Section 5.3    Access to Information.  Upon reasonable notice and
 subject to applicable Laws relating to the exchange of information, the
 Company and the Stockholder shall afford to the officers, employees,
 accountants, counsel and other representatives of Buyer, full access during
 normal business hours during the period prior to the Closing Date, and in a
 manner so as not to interfere with the normal business operations of the
 Company, to all of its properties, books, contracts, commitments and records
 for the purpose of updating any review of such items performed prior to the
 Execution Date and, during such period, the Stockholder and the Company
 shall make available all other information concerning its business,
 properties and personnel as Buyer may reasonably request.  It is the
 intention of the parties hereto that Buyer shall conduct an examination of
 the Company prior to the Closing Date in order to confirm compliance with
 the representations, warranties and covenants set forth in this Agreement.

      Section 5.4    Notice of Developments.  The Stockholder will give
 prompt written notice to the other parties of any material adverse
 development in the Company's business, operations, financial condition or
 results of operations.  Each party hereto will give prompt written notice to
 the other party of any material adverse development causing a breach of any
 of such party's own representations and warranties set forth herein.  No
 disclosure by any party pursuant to this Section 5.4 shall be deemed to
 amend or supplement any schedule hereto or to prevent or cure any
 misrepresentation, breach of warranty, or breach of covenant, nor shall a
 decision to close the transactions contemplated hereby be considered a
 waiver in respect of any such matter.

      Section 5.5    Exclusivity.  In light of the consideration given and
 the actions undertaken by Buyer prior to the execution of this Agreement,
 neither the Stockholder nor the Company will (a) solicit, initiate or
 actively encourage the submission of any proposal or offer from any Person
 relating to the acquisition of any material equity interest in, or any
 substantial portion of the assets, of the Company (including any acquisition
 structured as a merger, consolidation or share exchange) or (b) participate
 in any discussions or negotiations regarding, furnish any information with
 respect to, assist or participate in, or facilitate in any other manner any
 effort or attempt by any Person to do or seek any of the foregoing.  The
 Stockholder will notify Buyer immediately if any Person makes any proposal
 or offer with respect to any of the foregoing.

                                  ARTICLE VI
                       COVENANTS; ADDITIONAL AGREEMENTS

      Section 6.1    Stockholder Release.  Effective as of the Closing Date,
 the Stockholder, for the Stockholder and its officers, directors, employees,
 stockholders, agents, representatives, successors, and assigns, hereby fully
 and unconditionally releases and forever discharges and holds harmless the
 Company and each of its officers, directors, employees, stockholders,
 agents, representatives, successors, and assigns from any and all claims,
 demands, losses, costs, expenses (including reasonable attorneys' fees and
 expenses), obligations, liabilities, and/or damages (collectively, "Claims")
 of every kind and nature whatsoever, whether or not now existing or known,
 relating in any way, directly or indirectly, to the Company that the
 Stockholder may now have or may hereafter claim against the Company or any
 of its employees, officers, directors, successors, and assigns, arising
 prior to the Closing; provided, however, that the foregoing release does not
 in any way affect any Claims that the Stockholder may have that may arise
 under this Agreement or the Ancillary Agreements.

      Section 6.2    Consent of the Stockholder.  For purposes of the state
 corporate law governing the Company, this Agreement constitutes the written
 consent of the Stockholder with respect to the sale of the Company Shares
 and the business of the Company to Buyer, approving the execution and
 delivery of this Agreement and the consummation of the transactions
 contemplated hereby.

      Section 6.3    Information for Filings.  Subject to the requirements
 of Section 4.3(b) herein, the Stockholder shall furnish Buyer with all
 information concerning the Stockholder and the Company as may be required
 for inclusion in any application or filing made by Buyer to any Governmental
 Entity in connection with the transactions contemplated by this Agreement.

      Section 6.4    Publicity.  Buyer and the Stockholder shall cooperate
 with each other in the development and distribution of all news releases and
 other public disclosures relating to the transactions contemplated by this
 Agreement.  Neither Buyer, on the one hand, nor Stockholder, on the other
 hand, shall issue or make, or allow to have issued or made, any press
 release or public announcement concerning the transactions contemplated by
 this Agreement without the advance approval in writing of the form and
 substance thereof by the other parties, unless otherwise required by
 applicable legal or stock exchange requirements.

      Section 6.5    Transaction Costs.  Each of the Stockholder and Buyer
 shall pay all attorneys', accountants', finders', brokers', investment
 banking and other fees, costs and expenses incurred by such party in
 connection with the preparation, negotiation, execution, and performance of
 this Agreement or any of the transactions contemplated by this Agreement.

      Section 6.6    Non-Competition.

           (a)  The Stockholder, Christopher Canfield and Michael Prachar
 (each, a "Non-Compete Party," and collectively, the "Non-Compete Parties")
 acknowledge and agree that this Agreement is entered into in connection
 with the sale of a business and that, as part of the consideration and as a
 material inducement for the execution of this Agreement and the purchase of
 the business, Buyer has required that the Non-Compete Parties enter into
 this Section 6.6.  The Non-Compete Parties acknowledge and agree that Buyer
 would not enter into this Agreement or purchase the business absent the Non-
 Compete Parties' covenants contained in this Section 6.6.  The Non-Compete
 Parties also acknowledge that Buyer's acquisition of the business includes
 the acquisition of special and confidential knowledge and information
 known only to the Non-Compete Parties regarding the business, including
 information regarding operations, plans, strategies, markets, methods of
 competing, customers and potential customers, vendors and potential vendors,
 suppliers, intellectual property, know-how, trade secrets, and other
 information, which knowledge and information would provide invaluable
 benefits to competitors and potential competitors of Buyer and the use,
 loss, dilution, or impairment of which by the Non-Compete Parties or any
 other Person could materially damage Buyer and the business acquired.  The
 Non-Compete Parties also acknowledge that the nature of the business is not
 confined by geography and that current technology and business and
 communications methods enable and shall enable the Non-Compete Parties
 and their respective Affiliates to offer products and services and conduct
 business with customers and potential customers and other Persons having
 business dealings with Buyer related to the business without regard to
 geographic location.

           (b)  Each of the Non-Compete Parties covenants and agrees
 that, for a period beginning on the Closing Date and ending on the second
 anniversary of the Closing Date (the "Non-Compete Applicable Date"), without
 the written permission of Buyer, such Non-Compete Party shall not, directly
 or indirectly, anywhere within the United States (the "Non-Compete Area"):
 (i) engage (whether as owner, partner, stockholder, investor, adviser,
 consultant, contracting party, or referring source, or otherwise) in any
 business that is substantially similar to or in competition with the
 business conducted by Buyer or its successors or Affiliates (including,
 without limitation, the Company) at any time prior to the Non-Compete
 Applicable Date (except that a Non-Compete Party may beneficially own less
 than three percent of the common equity of a publicly traded entity); (ii)
 solicit or attempt to solicit any competing business or competing employment
 from any Person that the Non-Compete Party or any Person that was employed
 by the Non-Compete Party called upon, solicited, or conducted business with
 prior to the Non-Compete Applicable Date, including, but not limited to,
 customers, clients, and prospective customers and clients of Buyer and its
 successors or Affiliates (including, without limitation, the Company), in
 each instance for the purpose of employing such services in a manner that
 competes with the business of Buyer as set forth in Section 6.6(b)(i); or
 (iii) recruit or hire, attempt to or assist in any attempt to recruit or
 hire, or discuss employment or hiring with, any Person who is an employee of
 Buyer or its successors or Affiliates (including, without limitation, the
 Company).

           (c)  The Non-Compete Parties acknowledge that this Section 6.6 is
 necessary to protect the interests of Buyer and its Affiliates and that the
 restrictions and remedies contained in this Agreement are reasonable in
 light of the consideration and other value that the Non-Compete Parties have
 accepted pursuant to this Agreement.  If any provision of this Section 6.6
 should be found by any court of competent jurisdiction to be unreasonable by
 reason of its being too broad as to the period of time, territory, or scope,
 then, and in that event, such provision shall nevertheless remain valid and
 fully effective, but shall be considered to be amended so that the period
 of time, territory, or scope set forth herein shall be changed to be the
 maximum period of time, the largest territory, or the broadest scope, as the
 case may be, that would be found reasonable and enforceable by such court.

      Section 6.7    Confidential Information.

          (a)   The Stockholder acknowledges that it and its officers,
 directors, stockholders, employees, agents and representatives, have had
 access to confidential information of the Company, and may in the future
 have access to information proprietary to, used by, or in the possession of
 Buyer and its Affiliates (including, without limitation, the Company), or
 any of their respective customers or not generally known in the industry,
 including, but not limited to, records regarding sales, price and cost
 information, marketing plans, trade secrets, know-how, computer programs,
 source code, intellectual property, customer names, customer lists, sales
 techniques, distribution plans or procedures, and other material relating to
 the business of Buyer and its Affiliates, including, without limitation, the
 Company (the "Confidential Information"), and for the Stockholder and for
 each Affiliate of the Stockholder (other than the Company), agrees for the
 period equivalent to the non-competition covenant in Section 6.6, not to use
 the Confidential Information other than for the sole benefit of Buyer or its
 Affiliates or to disclose such Confidential Information to any Person that
 is not an officer or employee (except that if, at such time, such
 Confidential Information is subject to a policy of Buyer or its Affiliates
 restricting disclosure to non-officers, Stockholder shall not disclose such
 information to non-officers) of Buyer at the time of such disclosure,
 without the prior written consent of Buyer; provided, however, that nothing
 herein shall prevent the Stockholder from disclosing any such information
 (i) pursuant to the order of any court or administrative agency or in any
 pending legal or administrative proceeding, or otherwise as required by
 applicable Law or compulsory legal process, (ii) to the extent that such
 information becomes publicly available other than by reason of disclosure by
 Stockholder in violation of this paragraph, and (iii) to Stockholder's legal
 counsel and other experts or agents who are informed of the confidential
 nature of such information.  The Stockholder further acknowledges that this
 covenant to maintain Confidential Information is necessary to protect the
 goodwill and proprietary interests of Buyer and its Affiliates (including,
 without limitation, the Company) and that the restriction against the
 disclosure of Confidential Information and the associated remedies are
 reasonable in light of the consideration and other value Stockholder has
 accepted pursuant to this Agreement.

          (b)   The Stockholder agrees, upon the request of Buyer after the
 Closing Date, immediately to, at Stockholder's option, either destroy and
 certify the same in writing or surrender to Buyer all Confidential
 Information and all copies thereof and information containing Confidential
 Information in the Stockholder's possession or control as well as all other
 papers, documents, electronic media, or property of Buyer or its successors
 or Affiliates (including, without limitation, the Company) coming into the
 Stockholder's possession or control.

          (c)   If any provision of this Section 6.7 should be found by any
 court of competent jurisdiction to be unreasonable by reason of its being
 too broad as to the period of time, territory, or scope, then, and in that
 event, such provision shall nevertheless remain valid and fully effective,
 but shall be considered to be amended so that the period of time, territory,
 or scope set forth shall be changed to be the maximum period of time, the
 largest territory, or the broadest scope, as the case may be, which would be
 found reasonable and enforceable by such court.

      Section 6.8    Further Assurances.  Following the Closing, each party
 hereto agrees to cooperate fully with the other parties hereto and to
 execute such further instruments, documents and agreements and to give such
 further written assurances, as may be reasonably requested by any other
 party at that other party's cost to give effect to the transactions
 described herein and contemplated hereby.  The Stockholder will use best
 efforts to cooperate with Buyer and to discuss the Financial Statements, the
 internal controls of the Company and the disclosure controls and procedures
 of the Company in connection with Buyer's efforts to comply with the rules
 and regulations affecting public companies, including without limitation,
 the Sarbanes-Oxley Act of 2002 and any rules and regulations relating
 thereto.

      Section 6.9    Tax Matters.

           (a)  Liability for Tax Matters.  The Stockholder shall be liable
 for and pay, and pursuant to Article VII shall indemnify and hold harmless
 Buyer and its Affiliates (including, without limitation, the Company
 following the consummation of the transactions contemplated hereby) from
 and against all Taxes (whether assessed or unassessed) applicable to the
 business, assets, or results of operations of the Company in each case
 attributable to all periods of time up to and including the Closing Date.
 The Stockholder shall be entitled to any refund or credit therefor of any
 Taxes applicable to the business, assets, or results of operations of the
 Company in each case attributable to all periods of time up to and including
 the Closing Date.  Buyer shall be liable for and pay, and pursuant to
 Article VII shall indemnify and hold harmless the Stockholder from and
 against all Taxes (whether assessed or unassessed) applicable to the
 business, assets, or results of operations of the Company in each case
 attributable to all periods of time following the Closing Date.  Buyer shall
 be entitled to any refund or credit therefor of any Taxes applicable to the
 business, assets, or results of operations of the Company in each case
 attributable to all periods of time following the Closing Date.

           (b)  Tax Returns.  Each party shall prepare and timely file when
 due all Tax Returns in respect of pre-Closing Date and post-Closing Date Tax
 periods that are required under applicable Law with respect to the business,
 assets, and results of operations of the Company, and shall each remit (or
 cause to be remitted) any Taxes due in respect of such returns.

           (c)  Reimbursement; Notice.  Each party shall promptly pay the
 other for any Taxes for which such party is liable under this Section 6.9,
 but in no event later than five days prior to the due date of the payment
 of such Taxes.  The parties agree to negotiate in good faith to resolve any
 disputes regarding the payment of any Taxes pursuant to this Section 6.9.
 Within a reasonable period of time prior to the payment of any such Tax, the
 party paying such Tax shall give written notice to the other party of the
 Tax payable and the portion that is the liability of such party, although
 failure to do so shall not relieve the other party from its liability
 hereunder.

           (d)  Assistance and Cooperation.  After the Closing Date, each
 party shall (and shall cause its respective Affiliates, representatives, and
 agents to):

                (i)  assist the other party in preparing any Tax Returns that
      such other party is responsible for preparing and filing in accordance
      with this Section 6.9;

                (ii) cooperate fully in preparing for any audits of, or
      disputes with taxing authorities regarding, any Tax Returns described
      in this Section 6.9; and

                (iii)     making available to the other party and to any
      taxing authority as reasonably requested all information, records, and
      documents relating to the Taxes described in this Section 6.9.

      Section 6.10   Working Capital Loan.  Immediately upon the
 determination of Actual Net Working Capital, Buyer shall execute a
 promissory note in the form attached hereto as Exhibit A in an aggregate
 principal amount equal to the Actual Net Working Capital, which amount
 shall not be less than $200,000 (the "Loan").  In the event that Actual Net
 Working Capital is less than $200,000, the Contingent Cash Payment shall be
 reduced by an amount equal to the difference between $200,000 and the Actual
 Net Working Capital.  The Loan shall bear interest at the rate of eight
 percent per annum and shall be payable in 12 equal monthly installments
 beginning on the date that is the later to occur of (i) 30 days from the
 Closing Date or (ii) the date that Actual Net Working Capital is determined
 by Buyer's independent accountants pursuant to Section 2.5 above (the
 "Repayment Commencement Date").  The Loan shall be due and payable in full
 on the 12-month anniversary of the Repayment Commencement Date.

      Section 6.11   Employment and Non-Compete Agreements.  Concurrently
 with the execution of this Agreement, Buyer shall enter into an employment
 and non-compete agreement with each of Christopher Canfield and Michael
 Prachar in substantially the form attached hereto as Exhibit B, and which
 agreements shall have substantially the same material terms and conditions
 (exclusive of terms relating to the amount of executive compensation,
 benefits and other perquisites, which may vary from one executive to
 another) as Buyer's employment agreements with its key executive officers.

      Section 6.12   Board Representation.  Effective as of the Closing Date,
 by appropriate action of the board of directors or the stockholders of
 Buyer, Christopher Canfield shall be elected or appointed to the Buyer's
 board of directors.

      Section 6.13   Maintain as Subsidiary.  Unless otherwise mutually
 agreed to by Buyer and the Stockholder, Buyer shall maintain the existence
 of the Company as a wholly-owned subsidiary of the Buyer until such time as
 the Contingent Stock Payment has been paid to the Stockholder in accordance
 with the terms of Section 2.4(d) above.

                                 ARTICLE VII
                               INDEMNIFICATION

      Section 7.1    Indemnification of Buyer.  The Stockholder shall
 indemnify and hold Buyer, its subsidiaries, and their respective directors,
 officers, employees, and agents (collectively, the "Buyer Parties") harmless
 from any and all Claims that any Buyer Party may suffer or incur as a result
 of or relating to the breach or inaccuracy (except that in determining the
 dollar amount of Claims resulting from the breach or inaccuracy of any
 representation or warranty that is qualified by the concept of materiality,
 such qualification shall not be taken into account) of any of the
 representations, warranties, covenants, or agreements made by the
 Stockholder in this Agreement.

      Section 7.2    Indemnification of Stockholder.

           (a)  General.  Buyer shall indemnify and hold the Stockholder,
 its subsidiaries, and their respective directors, officers, employees, and
 agents (collectively, the "Stockholder Parties") harmless from any and all
 Claims that any Stockholder Party may suffer or incur as a result of or
 relating to the breach or inaccuracy (except that in determining the dollar
 amount of Claims resulting from the breach or material inaccuracy of any
 representation or warranty that is qualified by the concept of materiality,
 such qualification shall not be taken into account), of any of the
 representations, warranties, covenants, or agreements made by Buyer in this
 Agreement or pursuant to the Ancillary Agreements.

           (b)  Cygnus-Related Matters.  In addition to the indemnification
 obligations set forth in Section 7.2(a), Buyer shall also indemnify and hold
 the Stockholder, Christopher Canfield and Michael Prachar (collectively,
 the "Apex Parties") harmless from any and all Claims that any Apex Party
 may suffer or incur as a result of any Claim asserted by Cygnus
 Telecommunications Technology, LLC ("Cygnus") or its Affiliates arising
 from any infringement of Cygnus' patent rights, including the patent rights
 related to Cygnus' "Call-back Services" by Buyer or any of its Affiliates
 (exclusive of any Apex Party) prior to or following the Closing Date, other
 than Claims arising as a result of the willful misconduct or gross
 negligence of any Apex Party.

      Section 7.3    Notice.  Any party entitled to receive indemnification
 under this Article VII (the "Indemnified Party") agrees to give prompt
 written notice to the party or parties required to provide such
 indemnification (the "Indemnifying Parties") upon the occurrence of any
 indemnifiable claim or the assertion of any claim or the commencement of
 any action or proceeding in respect of which such a claim may reasonably be
 expected to occur (a "Loss Claim"), but the Indemnified Party's failure to
 give such notice shall not affect the obligations of the Indemnifying Party
 under this Article VII except to the extent that the Indemnifying Party is
 materially prejudiced thereby and shall not affect the Indemnifying Party's
 obligations or liabilities otherwise than under this Article VII.  Such
 written notice shall set forth a reference to the event or events forming
 the basis of such loss or Loss Claim and the estimated amount involved,
 unless such amount is uncertain or contingent, in which event the
 Indemnified Party shall give a later written notice when the amount becomes
 fixed or determinable.

      Section 7.4    Defense of Claims.  The Indemnifying Party may elect to
 assume and control the defense of any Loss Claim, including the employment
 of counsel reasonably satisfactory to the Indemnified Party and the payment
 of expenses related thereto, if (a) the Indemnifying Party provides
 reasonable evidence to the Indemnified Party of its financial ability to
 satisfy such indemnification obligation; (b) the Loss Claim does not seek to
 impose any liability or obligation on the Indemnified Party other than for
 money damages; and (c) the Loss Claim does not relate to the Indemnified
 Party's relationship with its customers or employees.  If such conditions
 are satisfied and the Indemnifying Party elects to assume and control the
 defense of a Loss Claim, then (i) the Indemnifying Party shall not be liable
 for any settlement of such Loss Claim effected without its prior written
 consent; (ii) the Indemnifying Party may settle such Loss Claim without the
 consent of the Indemnified Party; and (iii) the Indemnified Party may employ
 separate counsel and participate in the defense thereof, but the Indemnified
 Party shall be responsible for the fees and expenses of such counsel unless
 the Indemnifying Party has failed to adequately assume the defense of such
 Loss Claim or to employ counsel with respect thereto.  If such conditions
 are not satisfied, the Indemnified Party may assume and control the defense
 of the Loss Claim; provided, however, that the Indemnified Party may not
 settle any such Loss Claim without the consent of the Indemnifying Party,
 which consent shall not be unreasonably withheld (and the Indemnifying Party
 shall not be liable for any Claims resulting from a settlement effected in
 violation of this clause).

      Section 7.5    Calculation of Loss Claim.  The indemnification
 obligation of an Indemnifying Party shall be reduced so as to give effect to
 any net reduction in federal, state, local, or foreign income or franchise
 Tax liability realized at any time by it in connection with the satisfaction
 of a Loss Claim with respect to which indemnification is sought hereunder
 (which for purposes of this Section 7.5, the parties agree shall be based
 upon a marginal Tax rate of 35%).  The indemnification obligation of an
 Indemnifying Party shall also be reduced to the extent of any insurance
 proceeds available; provided, however, that the appropriate claimant shall
 use its commercially reasonable efforts to obtain insurance proceeds from
 its applicable insurance coverage.  Additionally, the Indemnified Party
 shall refund to the Indemnifying Party any amount of its losses that are
 subsequently recovered by it pursuant to a settlement or otherwise.

      Section 7.6    Survival of Representations and Warranties; Remedies.
 All representations and warranties made in or pursuant to this Agreement
 shall survive the execution and delivery of this Agreement and the
 consummation of the transactions contemplated hereby and continue for a
 period of 24 months from the Closing Date; provided, however, that (a) the
 representations and warranties contained in Sections 3.1(b), 3.1(c), 3.3,
 3.4, and 4.2 shall survive indefinitely, (b) the representations and
 warranties contained in Sections 3.11 and 3.17 shall survive for a period
 equal to all applicable statute of limitations regarding Loss Claims made
 with respect to such subject matter, and (c) any claim for indemnity under
 this Article VII shall survive the time at which it would otherwise
 terminate if a claim for indemnification shall have been commenced prior to
 such time and such claim or proceeding is pending and is being maintained in
 good faith, then such claim shall continue until the final disposition of
 such claim.  Each party agrees that no other party to this Agreement shall
 be under any duty, express or implied, to make any investigation of any
 representation or warranty made by any other party to this Agreement, and
 that no failure to so investigate shall be considered negligent or
 unreasonable.  All remedies under this Agreement shall be cumulative
 and not exclusive.

                                 ARTICLE VIII
                        CLOSING; CONDITIONS TO CLOSING

      Section 8.1    Closing; Closing Date.  The transfer of the Company
 Shares and the closing of the transactions contemplated by this Agreement
 (the "Closing") shall take place within five Business Days following the
 satisfaction or waiver of the conditions precedent set forth in Sections
 8.2 and 8.3 at the offices of Stradling Yocca Carlson & Rauth, 233 Wilshire
 Boulevard, Suite 830, Santa Monica, California 90401; provided, however,
 that such date shall be no later than July 7, 2006, unless otherwise
 mutually agreed to by the parties hereto.  The date of the Closing is
 referred to from time to time herein as the "Closing Date."

      Section 8.2    Conditions to Obligations of Buyer to Close.  The
 obligations of Buyer to consummate the Closing shall be subject to the
 satisfaction, on or before the Closing Date, of each and every one of the
 following conditions, all or any of which may be waived, in whole or in
 part, by Buyer, provided, however, that in the event that any or all of such
 conditions are waived, such waiver shall be for all purposes and not only
 for purposes of closing the transactions contemplated hereby, and the
 conditions so waived shall not serve as a basis for indemnification under
 Section 7.2 hereof.

           (a)  Representations and Warranties; Covenants.  The
 representations and warranties of the Stockholder contained in this
 Agreement shall be true and correct in all material respects as of the
 Closing, with the same force and effect as if made as of the Closing, and
 the covenants and agreements contained in this Agreement to be complied with
 by the Stockholder at or prior to the Closing shall have been complied with
 in all material respects.

           (b)  No Order.  No action or proceeding shall have been instituted
 against the Buyer or any of its Affiliates or any officer or director of the
 Buyer or any of its Affiliates which seeks to, or would render it unlawful
 as of the Closing to effect the transactions contemplated hereby in
 accordance with the terms hereof or creates or poses a risk of creating a
 limitation on the Buyer to own the Company Shares, and no such action shall
 seek damages in a material amount by reason of the consummation of the
 transactions contemplated hereby.

           (c)  No Material Adverse Effect.  No event or events shall have
 occurred since the Execution Date, or be reasonably likely to occur, which
 have, or could reasonably be expected to result in, a Material Adverse
 Effect.

           (d)  Due Diligence Review.  Buyer and its representatives shall
 have completed a due diligence review of the Company and its business and
 shall be satisfied, in Buyer's sole discretion, with the results of such
 review and investigation.

           (e)  Financing.  Buyer shall have obtained financing in an amount
 sufficient to pay the Initial Cash Payment and all fees and expenses of
 Buyer arising in connection with the transactions contemplated by this
 Agreement and the Ancillary Agreements, plus an additional $500,000 to fund
 the working capital needs of Buyer following the Closing, and all conditions
 precedent to funding under such financing arrangements (other than the
 purchase and sale contemplated hereby)  shall have been satisfied or waived.

           (f)  Deliveries.  The Stockholder shall have made or stand willing
 and able to make all the deliveries to the Buyer set forth in Section 8.5.

      Section 8.3    Conditions to Obligations of Stockholder.  The
 obligations of the Stockholder to consummate the Closing shall be subject
 to the satisfaction, on or before the Closing Date, of each and every one of
 the following conditions, all or any of which may be waived, in whole or in
 part, by the Stockholder, provided, however, that in the event that any or
 all of such conditions are waived, such waiver shall be for all purposes and
 not only for purposes of closing the transactions contemplated hereby, and
 the conditions so waived shall not serve as a basis for indemnification
 under Section 7.1 hereof.

           (a)  Representations and Warranties; Covenants.  The
 representations and warranties of Buyer contained in this Agreement shall
 be true and correct in all material respects as of the Closing, with the
 same force and effect as if made as of the Closing and the covenants and
 agreements contained in this Agreement to be complied with by Buyer at or
 prior to the Closing shall have been complied with in all material respects.

           (b)  No Order.  No action or proceeding shall have been instituted
 against the Stockholder, the Company or any of their respective Affiliates
 or any officer or director of the Stockholder, the Company or any of their
 respective Affiliates which seeks to, or would, render it unlawful as of the
 Closing to effect the transactions contemplated hereby in accordance with
 the terms hereof or would restrain, prohibit or otherwise interfere with the
 effective operation of all or any material portion of the business of the
 Company, and no such action shall seek damages in a material amount by
 reason of the consummation of the transactions contemplated hereby.

           (c)  Consents.  Each of the consents set forth on Schedule 3.5(a)
 of the Disclosure Schedule shall have been duly obtained and delivered to
 the Stockholder.

           (d)  Deliveries.  Buyer shall have made or stand willing and able
 to make all the deliveries to Stockholder set forth in Section 8.4.

      Section 8.4    Deliveries by Buyer at Closing.  Concurrently herewith,
 Buyer has delivered or shall cause to be delivered such documents and
 instruments as may be necessary or appropriate to carry out the transactions
 contemplated by this Agreement.

      Section 8.5    Deliveries by the Stockholder at Closing.  Concurrently
 herewith, the Stockholder has delivered or shall cause to be delivered the
 following:

           (a)  Certificates, with fully executed stock powers evidencing
 the Company Shares and any other documentation necessary or appropriate to
 effect the transfer of ownership thereof to Buyer;

           (b)  Certificate of the corporate secretary of the Company,
 substantially in the form attached hereto as Exhibit C;

           (c)  Officer's certificate of the Company, substantially in the
 form attached hereto as Exhibit D;

           (d)  Legal opinion of Livingston - Mix LLP, counsel to the
 Stockholder, substantially in the form attached hereto as Exhibit E; and

           (e)  Such other endorsements, documents, or instruments as may be
 necessary to carry out the transactions contemplated by this Agreement.

                                  ARTICLE IX
                                 TERMINATION

      Section 9.1    Termination of Agreement.  Buyer and the Stockholder may
 terminate this Agreement as provided below:

           (a)  Buyer and the Stockholder may terminate this Agreement by
 mutual written consent at any time prior to the Closing Date;

           (b)  The Stockholder may terminate this Agreement by giving
 written notice to Buyer at any time prior to the Closing Date in the event
 Buyer has breached any material representation, warranty or covenants
 contained in this Agreement in any material respect, the Stockholder has
 notified Buyer of the breach, and the breach has continued without cure for
 a period of ten days after the notice of breach; and

           (c)  Buyer may terminate this Agreement by giving written notice
 to the Stockholder at any time prior to the Closing Date in the event (i)
 the Stockholder has breached any material representation, warranty or
 covenant contained in this Agreement in any material respect, Buyer has
 notified the Stockholder of the breach, and the breach has continued without
 cure for a period of ten days after the notice of breach, or (ii) Buyer is
 dissatisfied with its due diligence review of the Company.

      Section 9.2    Effect of Termination.  If this Agreement is terminated
 pursuant to Section 9.1, all rights and obligations of the parties hereto
 shall terminate without any liability of any party to the other party.

                                  ARTICLE X
                                MISCELLANEOUS

      Section 10.1   Notices.  All notices that are required or may be given
 pursuant to this Agreement must be in writing and delivered personally, by a
 recognized courier service, by a recognized overnight delivery service, by
 telecopy or by registered or certified mail, postage prepaid, to the parties
 at the following addresses (or to the attention of such other person or such
 other address as any party may provide to the other parties by notice in
 accordance with this Section 10.1):

       If to Buyer:  Rapid Link, Incorporated
                     17383 Sunset Boulevard, Suite 350
                     Los Angeles, California 90272
                     Attention: John Jenkins, Chief Executive Officer
                     Telecopy: (310) 573-7067

 If to Stockholder:  Apex Acquisitions, Inc.
                     P.O. Box 8658
                     52 Marks Lane
                     Breckenridge, Colorado 80424
                     Attention: Christopher Canfield, Chief Executive Officer
                     Telecopy: (402) 392-7545

 Any such notice or other communication shall be deemed to have been given
 and received on the day it is personally delivered and signed for by
 addressee or, if delivered by courier or overnight delivery service or sent
 by telecopy, on the date received, or if mailed, three days after sending.

      Section 10.2   Further Assurances.  Each party agrees to execute any
 and all documents and to perform such other acts as may be necessary or
 expedient to further the purposes of this Agreement and the transactions
 contemplated by this Agreement.

      Section 10.3   Counterparts.  This Agreement may be executed in one or
 more counterparts for the convenience of the parties to this Agreement, all
 of which together shall constitute one and the same instrument.

      Section 10.4   Assignment.  Neither this Agreement nor any of the
 rights, interests or obligations under this Agreement shall be assigned or
 delegated by any party, without the prior written consent of the other
 parties; except that Buyer may assign its rights (but not its obligations)
 under this Agreement to any direct or indirect subsidiary of Buyer.  This
 Agreement is not intended to confer any rights or benefits to any Person
 (including, without limitation, any employees of the Company) other than the
 parties to this Agreement and the indemnification rights pursuant to Section
 7.1 to the Buyer Parties and pursuant to Section 7.2 to the Stockholder
 Parties.

      Section 10.5   Entire Agreement.  This Agreement and the related
 documents contained as Exhibits and Schedules to this Agreement or expressly
 contemplated by this Agreement contain the entire understanding of the
 parties relating to the subject matter hereof and supersede all prior
 written or oral and all contemporaneous oral agreements and understandings
 relating to the subject matter hereof.  This Agreement cannot be modified
 or amended except in writing signed by the party against whom enforcement
 is sought.  The Exhibits and Schedules to this Agreement are hereby
 incorporated by reference into and made a part of this Agreement for all
 purposes.

      Section 10.6   Specific Performance.  The parties hereby acknowledge
 and agree that the failure of any party to perform its agreements and
 covenants under this Agreement, including, without limitation, failure to
 take all actions as are necessary on its part to the consummation of the
 transactions contemplated by this Agreement or any violation of the
 covenants set forth in Sections 6.6 and 6.7, may cause irreparable injury
 to the other parties for which damages, even if available, may not be an
 adequate remedy.  Accordingly, each party hereby agrees that any other party
 may seek injunctive relief by any court of competent jurisdiction to compel
 performance of such party's obligations and to the granting by any court of
 the remedy of specific performance of its obligations under this Agreement
 or any Ancillary Agreement.

      Section 10.7   Governing Law.  This Agreement shall be governed by, and
 construed in accordance with, the substantive laws of the State of Delaware,
 without giving effect to any conflicts-of-law, rule, or principle that might
 require the application of the laws of another jurisdiction.

      Section 10.8   Jurisdiction; Venue; Service of Process.  Each party
 hereby consents and agrees that the federal or state courts of the State of
 California (located in Los Angeles, California) shall have jurisdiction to
 hear, determine, and enforce any claims or disputes arising out of or
 related to the provisions of this Agreement.  Each party hereby irrevocably
 waives any objection to the laying of venue in such courts, including,
 without limitation, any claim based on improper venue or forum non
 conveniens.  Nothing in this Agreement shall be deemed or operate to
 preclude the enforcement of any judgment or order obtained in such forum or
 the taking of any action under this Agreement to enforce such judgment or
 order in any other forum.  Each party hereby agrees that service of all
 writs, process, and summons in any suit, claim, action, or proceeding
 arising out of or related to the provisions of this Agreement may be made by
 certified mail, return receipt requested, in accordance with Section 10.1.

      10.9 Severability.  If any one or more of the provisions contained
 herein, or the application thereof in any circumstance, is held invalid
 or unenforceable in any respect for any reason, the validity, legality
 and enforceability of any such provision in every other respect and of the
 remaining provisions hereof shall not be in any way impaired or affected,
 and all such remaining provisions hereof shall be enforceable in accordance
 with their terms.

      10.10     Attorneys' Fees.  Should any litigation be commenced between
 the parties concerning the rights or obligations of the parties under this
 Agreement, the party prevailing in such litigation shall be entitled, in
 addition to such other relief as may be granted, to a reasonable sum as and
 for its attorneys' fees and costs in such litigation.  This amount shall be
 determined by the court in such litigation or in a separate action brought
 for that purpose.

      IN WITNESS WHEREOF, each of the parties to this Agreement has caused
 this Agreement to be executed as of the date first written above by their
 respective officers thereunto duly authorized.

                          "Buyer"

                          Rapid Link, Incorporated,
                          a Delaware corporation

                          By:
                              -----------------------------------------------
                              John Jenkins, Chief Executive Officer

                          "Stockholder"

                          Apex Acquisitions, Inc.,
                          a Delaware corporation

                          By:
                              -----------------------------------------------
                               Christopher Canfield, Chief Executive Officer

                          As to Section 6.6 only:

                          ---------------------------------------------------
                          Christopher Canfield

                          ---------------------------------------------------
                          Michael PracharEXHIBIT 10.2

                 AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT

      THIS AMENDMENT NO. 1 (this "Amendment") to the Stock Purchase Agreement
 dated as of May 3, 2006 (the "Purchase Agreement"), by and between Rapid
 Link, Incorporated, a Delaware corporation (the "Buyer"), and Apex
 Acquisitions, Inc., a Delaware corporation (the "Stockholder") in its
 capacity as the sole stockholder of Telenational Communications Inc., a
 Delaware corporation (the "Company"), is made and entered into as of May 5,
 2006 by and among the Buyer and the Stockholder.  Capitalized terms used and
 not otherwise defined in this Amendment shall have the meanings ascribed to
 them in the Purchase Agreement.

                                   RECITALS

      A.   Section 2.2(i) of the Purchase Agreement provides that the Initial
 Cash Payment shall be paid by wire transfer of immediately available funds.

      B.   Buyer and the Stockholder have agreed to amend the Purchase
 Agreement to provide for the payment of the Initial Cash Payment by a
 promissory note in the aggregate principal amount of $1,000,000.

      C.   In consideration for this amendment, Buyer and Stockholder have
 agreed to amend the Purchase Agreement to provide for the determination
 and payment of the Contingent Stock Payment following the First Performance
 Period.

      NOW, THEREFORE, for good and valuable consideration, the receipt and
 sufficiency of which are hereby acknowledged, the Parties hereby agree as
 follows:

                                  AGREEMENT

 1.   Amendment.

      1.1  Section 1.1 of the Purchase Agreement is hereby amended to delete,
 in its entirety, the definition of "Second Performance Period."

      1.2  Section 2.2(i) of the Purchase Agreement is hereby amended and
 restated in its entirety as follows:

           "(i) a promissory note in the aggregate principal amount of
 $1,000,000 (the "Note"), the form of which is attached hereto as Exhibit
 2.2(i), which shall be issued in accordance with the provisions set forth
 in Section 2.4(a) below (the "Initial Note Payment");"

      1.3  Section 2.3(c) of the Purchase Agreement is hereby amended and
 restated in its entirety as follows:

      "(c) Contingent Stock Payment Adjustment.  Within 45 days after the
 expiration of the First Performance Period, Buyer's independent accountant
 shall determine the Company's aggregate Monthly Gross Profit for the First
 Performance Period (the "First Aggregate Monthly Gross Profit").  In the
 event that the Company's First Aggregate Monthly Gross Profit is less than
 $900,000 (the "Target Aggregate Monthly Gross Profit"), then the Contingent
 Stock Payment shall be reduced by a number of shares to be determined as
 follows:

           (i)  the product obtained by multiplying $750,000 by a fraction
      whose numerator is the Target Aggregate Monthly Gross Profit less the
      First Aggregate Monthly Gross Profit and whose denominator is the
      Target Aggregate Monthly Gross Profit;

           (ii) divided by the volume weighted average closing price per
      share of Buyer Common Stock as reported on the Over-the-Counter
      Bulletin Board (or any other securities exchange or inter-dealer
      quotation system on which the Buyer Common Stock is then listed) for
      the 15 consecutive trading days ending on the day prior to the first
      anniversary of the Closing Date (the "Per Share Price"); provided,
      however, that such Per Share Price shall be not less than $0.13 per
      share and not greater than $0.25 per share."

      1.4  Section 2.4(a) of the Purchase Agreement is hereby amended and
 restated in its entirety as follows:

      "(a) Initial Note Payment.  On the Closing Date, upon surrender to
 Buyer of certificates representing all and not less than all of the Company
 Shares, Buyer shall issue to the Stockholder the Note.  The Note shall be
 secured by all of the Company Shares as provided in that certain Stock
 Pledge Agreement by and between Buyer and the Stockholder, the form of
 which is attached hereto as Exhibit 2.4(a) (the "Pledge Agreement")."

      1.5  Section 2.4(d) of the Purchase Agreement is hereby amended and
 restated in its entirety as follows:

      "(a) Contingent Stock Payment.  In respect of the First Performance
 Period, within five Business Days after the delivery of the Final
 Computation of the First Aggregate Monthly Gross Profit, Buyer shall deliver
 to the Stockholder certificates representing the Contingent Stock Payment,
 as adjusted pursuant to Section 2.3(c) above."

      1.6  Section 6.11 of the Purchase Agreement is hereby amended and
 restated in its entirety as follows:

      "Section 6.11  Employment and Non-Compete Agreements.  Within 30 days
 of the Closing Date, Buyer shall enter into an employment and non-compete
 agreement with each of Christopher Canfield and Michael Prachar (the
 "Telenational Executives"), in form and substance reasonably acceptable to
 the Telenational Executives, and which agreements shall have substantially
 the same material terms and conditions (exclusive of terms relating to
 levels of compensation, including the amount of base salary, potential
 bonuses, benefits and other perquisites, which may vary from one executive
 to another) as Buyer's employment agreements with its key executive
 officers."

      1.7  Section 8.2(e) of the Purchase Agreement is hereby deleted in its
 entirety and replaced with the following:

           "(e) reserved"

      1.8  Section 8.4 of the Purchase Agreement is hereby amended and
 restated in its entirety as follows:

      "Section 8.4   Deliveries by Buyer at Closing.  Concurrently
 herewith, Buyer has delivered or shall cause to be delivered the
 following:

           (a)  The Note;

           (b)  The Pledge Agreement; and

           (c)  Such documents and instruments as may be necessary or
 appropriate to carry out the transactions contemplated by this
 Agreement."

 2.   Miscellaneous.

      2.1  Enforceability of Purchase Agreement.  Except as specifically
 amended hereby, all of the terms of the Purchase Agreement shall remain and
 continue in full force and effect and are hereby confirmed in all respects.

      2.2  Authority; Severability.  Each party hereto warrants that the
 person signing below is authorized to sign this Amendment on its behalf and
 to bind it to the terms of this Amendment.  Should any provision of this
 Amendment be held by a court of competent jurisdiction to be invalid or
 illegal, such invalidity or illegality shall not invalidate the whole of
 this Amendment, but rather this Amendment shall be construed as if it did
 not contain the invalid or illegal part, and the rights and obligations of
 the parties shall be construed and enforced accordingly.

      2.3  Entire Agreement.  This Amendment, together with the Purchase
 Agreement, sets forth the entire agreement and understanding among
 the parties as to the subject matter hereof and supersedes all prior
 discussions, agreements and understandings of any and every nature among
 them.

      2.4  Governing Law.  This Amendment shall be governed by and construed
 in accordance with the internal laws of the State of Delaware, without
 regard to the choice of law provisions thereof.

      2.5  Counterparts.  This Amendment may be executed in counterparts and
 the signature pages may be combined to create a document binding on all of
 the parties hereto.

      IN WITNESS WHEREOF, Buyer and the Stockholder have caused their duly
 authorized representatives to execute this Amendment No. 1 to Stock Purchase
 Agreement as of the date first written above.

                          STOCKHOLDER:

                          Apex Acquisitions, Inc.,
                          a Delaware corporation

                          By:
                             ------------------------------------------------
                             Christopher Canfield, Chief Executive Officer

                          BUYER:

                          Rapid Link, Incorporated,
                          a Delaware corporation

                          By:
                             ------------------------------------------------
                             John Jenkins, Chief Executive Officer

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