Document:

exv4w1

 

EXHIBIT 4.1

SHARE SALE AND PURCHASE AGREEMENT

BETWEEN

WEATHER INVESTMENTS II S.A.R.L.

AS PURCHASER

AND

ENEL INVESTMENT HOLDING BV

AS SELLER

AND

ENEL S.p.A.

IN RELATION TO CERTAIN UNDERTAKINGS

AND

MR. NAGUIB SAWIRIS

AND

OS HOLDING

AND

APRIL HOLDING

AND

WEATHER INVESTMENTS S.R.L

IN RESPECT OF

NO. 91,681,074 SHARES OF WIND TELECOMUNICAZIONI S.p.A.

 

 

CONTENTS

Articles:

	1.	 	DEFINITIONS — INTERPRETATION
	 
	 	 	 
	 
	2.	 	SALE OF THE SHARES
	 
	 	 	 
	 
	3.	 	PURCHASE PRICE PAYMENT OF THE PURCHASE PRICE
	 
	 	 	 
	 
	4.	 	CONDITION PRECEDENT TO THE CLOSING- MATERIALLY ADVERSE CHANGES
	 
	 	 	 
	 
	5.	 	OBLIGATIONS OF THE PARTIES TO BE FULFILLED
PRIOR TO THE CLOSING — KEY EMPLOYEES
	 
	 	 	 
	 
	6. 	 	INTERIM MANAGEMENT
	 
	 	 	 
	 
	7. 	 	CLOSING
	 
	 	 	 
	 
	8. 	 	REPRESENTATIONS AND WARRANTIES BY ENEL AND THE SELLER
	 
	 	 	 
	 
	9. 	 	REPRESENTATIONS AND WARRANTIES BY THE BUYER
	 
	 	 	 
	 
	10. 	 	INDEMNIFICATION FOR BREACH OF THE
REPRESENTATIONS, WARRANTIES BY ENEL AND THE SELLER
	 
	 	 	 
	 
	11.	 	REPRESENTATIONS AND WARRANTIES BY ENEL AND THE SELLER IN RELATION TO TELLAS SA AND
INDEMNIFICATION
	 
	 	 	 
	 
	12. 	 	OTHER COVENANTS OF THE PARTIES
	 
	 	 	 
	 
	13. 	 	MISCELLANEOUS
	 
	 	 	 
	 
	14. 	 	GOVERNING LAW AND JURISDICTION

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THIS AGREEMENT IS MADE IN LONDON ON MAY 26, 2005

by and between

Enel Investment Holding BV, a company duly organised and validly existing under the laws of The
Netherlands, with its registered office at Amsterdam, Weteringschans 28, represented by its
Chairman, Mr. Biagio Cinelli by virtue of the resolution of the Board of Directors dated May 25,
2005, (hereinafter referred to as the “Seller”);

and

Enel S.p.A., an Italian company with its registered office at Rome, viale Regina Margherita n. 137,
corporate capital Euro 6,124,838,588.00, registered with the Register of Companies of Rome with
number 00811720580 (“Enel”), hereby represented by Mr. Carlo Tamburi, born in Rome, Italy, on 1
January 1959, duly empowered pursuant to a power of attorney dated May 25, 2005, (hereinafter
referred to as “Enel”);

 - on one hand -

and

Weather Investments II S.a.r.l., a company duly organised and validly existing under the laws of
Luxembourg, with its registered office at 65, Boulevard Grande-Duchesse Charlotte, L-1331
Luxembourg, represented by its Manager Naguib Sawiris by virtue of its By-laws, (hereinafter
referred to as the “Buyer”);

and

Mr. Naguib Sawiris, born in Cairo, on 15 June, 1954, resident in Cairo, Nile City towers, Cornish
El Nile, Ramlet Beaulac, Cairo, Egypt (hereinafter also referred to as “NS”),

and

April Holding, a company incorporated under the laws of the Cayman Islands, whose registered office
is situated at M&C Corporate Services Ltd., P.O. Box 309GT, Ugland House, South Church Street,
George Town, Grand Cayman, Cayman Islands;

and

OS Holding, a company incorporated under the laws of the Cayman Islands, whose registered office is
situated at M&C Corporate Services Ltd., P.O. Box 309GT, Ugland House, South Church Street, George
Town, Grand Cayman, Cayman Islands;

and

Weather Investments S.r.l., a company duly organised and validly existing under the laws of Italy,
with its registered office in Roma, Piazza dei SS. Apostoli 80, represented by its sole director
Mr. Alessandro Benedetti, born in Sassuolo, 13 July, 1961, (hereinafter referred to as the
“Newco”);

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 - on the other hand -

RECITALS:

	(a)	 	Wind Telecomunicazioni S.p.A. is a company duly incorporated and validly organised under the
laws of Italy, with its registered offices at via Cesare Giulio Viola 48, fiscal code and
number of registration at the Register of the Companies of Rome no. 05410741002, with a
corporate capital, fully paid in, of Euro 146,100,000.00, divided into no. 146,100,000.00
ordinary shares (hereinafter referred to as the “Company”);
	 
	(b)	 	the Seller owns no. 91,681,074 shares of the Company representing the 62.75% of the share
capital of the Company, and all the residual no. 54,418,926 shares representing 37.25% of the
share capital of the Company are owned by Enel;
	 
	(c)	 	the Company directly and indirectly controls the companies indicated in Schedule A
(hereinafter referred to as the “Subsidiaries”);
	 
	(d)	 	the Company is engaged worldwide, also through the Subsidiaries, in the business of fixed and
mobile telecommunication;
	 
	(e)	 	based on the above and upon and subject to the terms and conditions contained herein, the
Seller intends to sell to the Buyer and the Buyer intends to purchase from the Seller, the
Shares;
	 
	(f)	 	simultaneously with the execution of this agreement, Enel and the Buyer enter into a put and
call option agreement attached hereto as Schedule F (the “Put and Call Option
Agreement”), having as the subject matter no. 9,166,620 shares of the Company;
	 
	(g)	 	Enel, in its capacity as controlling company of the Seller agrees to undertake certain
obligations and to release certain representations and warranties under this Agreement.

NOW, THEREFORE, on the basis of the foregoing Recitals, which — together with the Schedules hereto
— are an integral and essential part of this Agreement, and the mutual covenants and undertakings
set forth herein, the Seller, Enel, the Buyer, NS, Newco, OS Holding, April Holding, (hereinafter
collectively referred to as the “Parties” or, individually, as the “Party”) agree as follows:

	1.	 	DEFINITIONS — INTERPRETATION
	 
	1.1	 	Definitions. Without prejudice to any other of the definitions and/or expression defined
elsewhere in this Agreement, the following terms and expressions shall have, in this
Agreement, the following meanings:
	 
	 	 	“Accounting Principles” means the accounting principles provided for by the Italian Civil
Code as interpreted by the “Consigli Nazionali degli Ordini dei Dottori

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	 	 	Commercialisti e dei Ragionieri” or, in their absence, the accounting principles prepared by
the International Accounting Standards Committee (l.A.S.C.);
	 
	 	 	“Agreed Rate” means an interest rate per annum equal to the interbank offered rate for
three (3) month Euro deposits shown at page EURIBOR01 of the Reuters screen (or such other
page as may replace that page) as being applicable on the first Business Day of each three
(3) month period (or fraction thereof) in respect of which interest is payable pursuant to
this Agreement, it being agreed that, for the purposes of this Agreement:

	 	(i)	 	interest will be computed on the basis of the number of days actually elapsed
divided by 365;
	 
	 	(ii)	 	if not paid on the last day of each three (3) month period (or, if such day is
not a Business Day, on the Business Day immediately preceding) interest will be
compounded as of such last day;
	 
	 	(iii)	 	for the purposes hereof, the term “month” will mean the lapse of time beginning
on a given day of a calendar month and ending on the corresponding day of the following
calendar month or, if such month does not have a corresponding day, on the last day of
such month;

	 	 	“Agreement” means this share sale and purchase agreement by and between the the Parties,
including its Recitals and Schedules, as it may be amended in writing from time to time;
	 
	 	 	“Antitrust Clearance”: means (x) alternatively (i) the expiry of the 30 days period referred
to in article 16.4 of the law 287/90 without the issuance by the Autorità Garante della
Concorrenza e del Mercato of any decision to open an investigation file (“istruttoria”); or
(ii) the communication of the decision of the AGCM not to open an investigation file; or
(iii) in the event that the AGCM opens an investigation file, the communication of the
conclusion of the investigation pursuant to article 18.2 of the law 287/90 within the terms
indicated in article 16.8 thereof, without requiring any amendment to the terms of this
Agreement and without any prohibition, in whole or in part, of the transaction provided for
by this Agreement; or (y) the clearance, authorisation, waiver or similar communication by
the EU Commission, if competent (the authorities listed under (x) and (y) above, to the
extent one of them is competent, hereinafter referred to as “Antitrust Authority”);
	 
	 	 	“Bidco” means the wholly owned subsidiary of Pikco to be incorporated pursuant to Section
5.2 below;
	 
	 	 	“Business Day” means any day in which the banks are normally open for business both in Milan
and in Rome;
	 
	 	 	“Closing” means the completion of all the acts, operations and transactions indicated
in Article 7;
	 
	 	 	“Closing Date” means the 30th Business Day following the satisfaction of all
Conditions (as defined in Section 4.1), provided that after 10 Business Days following the
satisfaction of all Conditions, interests shall accrue on the Purchase Price at the Agreed
Rate plus 300 basis points;

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	 	 	“Consolidated Balance Sheet” means the consolidated balance sheet of the Wind Group relating
to the financial year ending on December 31, 2004, attached hereto as Schedule 1.1;
	 
	 	 	“Control” has the meaning set forth in Article 2359 no. 1 of the Italian Civil Code and
“Controlled” shall be construed accordingly;
	 
	 	 	“Credit Facilities Agreement” means the agreement entered into on or about the Execution
Date by Newco in order to refinance the Senior Facilities;
	 
	 	 	“Encumbrance” means any charge, pledge, mortgage, sequestration, privilege, lien, usufruct,
right of interest of a third party;
	 
	 	 	“Execution Date” means the date of the execution of this Agreement by the signatories of the
Parties;
	 
	 	 	“FincoLux 1” means the company to be incorporated pursuant to Section 5.4 below;

 

“FincoLux 2” means the company to be incorporated pursuant to Section 5.5 below;
	 
	 	 	“Insurance Policies” shall mean those insurance policies entered into by Enel in order to
cover also risks of the Wind Group listed under Schedule 8.1.12;
	 
	 	 	“Intellectual Property” shall mean the intellectual property listed under Schedule 1.1
bis;
	 
	 	 	“Key Employees” means the employees of the Company listed in Schedule 1.1 ter;
	 
	 	 	“Knowledge” if referred to the Seller or to Enel in the context of the warranties and
representations given by the same in this Agreement, shall mean the knowledge that the
directors of Enel should have according to the requirements set forth by Article 2497 of the
Italian Civil Code;
	 
	 	 	“Luxco” means the wholly owned subsidiary of Newco to be incorporated pursuant to Section 5.3
below;
	 
	 	 	“Material Adverse Change” means:

	 	1)	 	with respect to the Senior Facilities any effect, event or matter (including
the loss of any significant license or authorisation) which is materially adverse to
(a) the ability of the Wind Group to perform its payment obligations if and when due
(taking into account financial resources available to it from its Subsidiaries) under
existing Senior Facilities agreement, and/or (b) the ability of the Wind Group to
comply with its obligations under clause 22 (Financial Undertakings) of the Senior
Facilities agreement;
	 
	 	2)	 	with respect to the Company and its Subsidiaries taken as a whole, any
effect, event or matter (including the loss of any significant license or
authorisation) which is materially adverse and disruptive to the business,

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	 	 	 	assets, or financial condition of the Company and its Subsidiaries (taken as whole),
until the Closing Date;

	 	 	“Material Contract” means any contract entered into by any company of the Wind Group which
involves the expenditure of more than Euro 10 million for each calendar year;
	 
	 	 	“Newco” means Weather Investments S.r.l. the newly incorporated, to be wholly owned
subsidiary of the Buyer.
	 
	 	 	“Pikco” means the wholly owned subsidiary of Newco to be incorporated pursuant to Section
5.1 below;
	 
	 	 	“Purchase Price” means the price for the sale of the Shares set forth in Section 3.1.;
	 
	 	 	“Senior Facilities” means the long term loan facilities enjoyed by the Wind Group to be
refinanced at Closing, details of which are given in Schedule 1.1 quinquies;
	 
	 	 	“Shares” means no. 91,681,074 shares of the Company owned by the Seller;
	 
	 	 	“Shareholders Agreement” shall mean the shareholders agreement referred to under Section 7.2
(f).
	 
	 	 	“Tax” means all taxes imposed by any public authority (whether national or local), together
with any interest, penalty, residual tax charge or addition to tax, wherever arising, and
including environmental taxes;
	 
	 	 	“Tax Authority” shall mean any competent governmental, state, provincial or local authority
in charge of imposing any Tax;
	 
	 	 	“TLC Authorizations” shall mean the authorizations listed under Schedule 1.1 sexies;
	 
	 	 	“Wind Group” means collectively the Company and the Subsidiaries excluding Wind PPC Holding
and Tellas S.A.;
	 
	1.2	 	Interpretation. In this Agreement, unless the context otherwise requires:

	 	(a)	 	references to a recital, an Article, a Section, a paragraph or a Schedule, are
to a recital of, an Article of, a Section of, a paragraph of, or a Schedule to, this
Agreement, and references to this Agreement include its recitals and its Schedules;
	 
	 	(b)	 	the headings of an Article, a Section or of a Schedule of this Agreement are
indicated for clarification purposes, only and, consequently, they do not form an
integral part of this Agreement and may not be used for purposes of interpretation;

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	 	(c)	 	words introduced by the word “other” shall not be given a restrictive meaning
because they are preceded by words referring to a particular class of acts, matters or
things;
	 
	 	(d)	 	general words shall not be given a restrictive meaning because they are
followed by words which are particular examples of the acts, matters or things covered
by the general words and the word “including” shall be construed without limitation.

	2.	 	SALE OF THE SHARES
	 
	2.1	 	Sale and Purchase of the Shares. Upon the terms and subject to the conditions set forth in
this Agreement, the Seller undertakes to sell and transfer the full ownership of all (but not
part of) the Shares, free and clear of all Encumbrances, to the Buyer, and the Buyer
undertakes to purchase the full ownership of all (but not part of) the Shares, free and clear
of all Encumbrances, according to the provisions of the following Article 7.
	 
	2.2	 	Pre-emptive right. Enel hereby waives the exercise of the pre-emptive rights (diritto di
prelazione) or similar rights however existing with respect to the sale and transfer of the
Shares owned by the Seller to the Buyer.
	 
	2.3	 	Obligation to assign. Immediately after the incorporation of Bidco, the Buyer shall assign to
Bidco all the rights and obligations arising out of this Agreement, pursuant to Article 1406
and followings of the Italian Civil Code, provided that Bidco will be a wholly owned
subsidiary of Pikco, which, in turn, is a wholly owned subsidiary of Newco. It is understood
and agreed that such assignment is hereby expressly accepted by the Seller and Enel.
	 
	 	 	However, after the assignment under this Section 2.3, pursuant to article 1408 of the
Italian Civil Code, the Buyer will remain jointly and severally liable with Bidco, with
respect to all the obligations to be fulfilled by the Buyer according to this Agreement.
	 
	3.	 	PURCHASE PRICE — PAYMENT OF THE PURCHASE PRICE
	 
	3.1	 	Purchase Price. The total consideration for the Shares shall be the amount of Euro
2,986,000,000.00 (two thousand nine hundred eighty six million). The Purchase Price is fixed
and not subject to any adjustment.
	 
	3.2	 	Payment of the Purchase Price. The Purchase Price shall be paid by the Buyer or Bidco
pursuant to Section 2.3 above, to the Seller on the Closing Date in immediately available
funds to the bank account that the Seller will communicate to the Buyer or Bidco in writing no
later than 5 Business Days before the Closing Date.
	 
	4.	 	CONDITIONS PRECEDENT TO THE CLOSING — MATERIALLY ADVERSE CHANGES
	 
	4.1	 	Conditions precedent. This Agreement and the obligations of the Seller and

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	 	 	the Buyer to effect the Closing hereunder shall be conditional upon:

	 	(i)	 	the Antitrust Clearance having been obtained; and
	 
	 	(ii)	 	no written indications having been received from the Ministry of
Communications or the Autorità Garante per le Comunicazioni (“AGCOM”) that any
declarations, general authorizations or individual licences granted to the Company by
the Ministry of Communications and AGCOM under which the Company operates, which are
necessary for the Company to operate its telecommunications network and services, are
likely to be revoked or materially modified as a result of this Agreement.
	 
	 	(iii)	 	Enel and any relevant subsidiary having waived its right, under the
outsourcing agreement entered into with the Company on March 11, 2005, to terminate
such agreement as consequence the change of control in the Company pursuant to the
completion of this Agreement;
	 
	 	(iv)	 	T.E.R.NA. S.p.A. — Trasmissione Elettricità Rete
Nazionale S.p.A. — having
waived its right, under the outsourcing agreement entered into with the Company on
March 25, 2005, to terminate such agreement as consequence the change of control in
the Company pursuant to the completion of this Agreement;

	 	 	(hereinafter referred to as, individually, the “Condition” or, together, “Conditions”), as
provided below.

 

Conditions from (ii) to (iv) above are in the sole interest of the Buyer which has the right
to waive any of them and, as a consequence, to consider any of such Conditions satisfied for
the purpose of this Agreement.
	 
	4.2	 	Timing.

	 	(i)	 	The Buyer undertakes to file and deliver the request for the Antitrust Clearance
relating to the transaction contemplated by this Agreement to the Antitrust Authority
within 15 Business Days from the Execution Date.
	 
	 	(ii)	 	Enel and the Seller undertake to give and to cause to be given by the Wind Group,
also pursuant to article 1381 of the Italian Civil Code — timely for the purpose of this
Agreement — all communications and notices due to be given to the AGCOM and any other
government body, pursuant to the relevant licences and authorisations or under the
applicable law or regulation.

	4.3	 	Cooperation between the Parties. The Buyer and the Seller shall closely cooperate in order to
obtain satisfaction of the Conditions.
	 
	 	 	With respect to the Conditions (i) the Buyer will prepare with utmost care the communication
to the Antitrust Authority, (ii) the Seller will provide the Buyer with all information
relating to the Wind Group necessary to prepare the above communication, (iii) the Buyer
shall keep the Seller regularly informed on the processing necessary to obtain the Antitrust
Clearance and provide the Seller with copies of all the relevant documentation, (iv) the
Buyer shall provide Enel and the Seller with all information necessary to the extent of
making communications and or notices to AGCOM and or the other government bodies.
	 
	4.4	 	Termination. In the event that, notwithstanding the effort of the Parties, all the Conditions
have not been satisfied within four months from the Execution Date:

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	 	(a)	 	the Parties shall immediately consult and they will endeavour to overcome any
possible difficulty or hurdle in order to satisfy the relevant Condition/s;
	 
	 	(b)	 	in particular, in the event that in order to obtain the Antitrust Clearance the
Antitrust Authority requires amendments to this Agreement, the Parties will negotiate
in good faith the possible amendments and measures in order to comply with the request
of such authority, to the extent that the request of Antitrust Authority will not
result in a substantial modification of this Agreement, divestitures or in a
substantial increase of the economic burden of the Parties, or of the companies of the
Wind Group.

	 	 	In the event that the Conditions are not satisfied within seven months from the Execution
Date the Agreement will be null and void and the Parties will be released from any
obligation hereunder.
	 
	4.5	 	Materially adverse changes. The Buyer shall be entitled to withdraw from this Agreement and
not to proceed with the Closing in the event that prior to the Closing a Material Adverse
Change takes place.
	 
	5.	 	OBLIGATIONS OF THE PARTIES TO BE FULFILLED PRIOR TO THE CLOSING — KEY EMPLOYEES
	 
	5.1	 	Incorporation of Pikco. The Buyer, as controlling quotaholder of Newco, shall procure the
incorporation by Newco of Pikco, in the form of a Società per azioni with registered office in
Italy, and with a by-laws reflecting the provisions of the Shareholders’ Agreement to the
maximum extent possible according to the applicable laws as soon as practicable after the date
hereof, for the purposes specified under Section 7.2 (a) below.
	 
	5.2	 	Incorporation of Bidco. The Buyer, as indirect controlling shareholder of Pikco, shall
procure the incorporation by Pikco of Bidco, in the form of a Società per azioni with
registered office in Italy and with a by-laws reflecting the provisions of the Shareholders’
Agreement to the maximum extent possible according to the applicable laws, as soon as
practicable after the incorporation of Pikco for the purposes specified under Section 2.3
above.
	 
	5.3	 	Incorporation of Luxco. The Buyer shall incorporate, in the form of a limited liability
company, a company with registered office in Luxembourg as soon as practicable after the date
hereof for the purposes specified under Section 7.2(a) (vii), (viii) and (ix) below and with a
by-laws reflecting the provisions of the Shareholders’ Agreement to the maximum extent
possible according to the applicable laws.
	 
	5.4	 	Incorporation of FincoLux 1. The Buyer, as indirect controlling shareholder of Pikco, shall
procure the incorporation by Pikco of FincoLux 1, in the form of a limited liability company
with registered office in Luxembourg as soon as practicable after the incorporation of Pikco
for the purposes specified under Section 7.2 below.

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	5.5	 	Incorporation of FincoLux 2. The Buyer, as indirect controlling shareholder of Pikco and
Bidco, shall procure the incorporation by Bidco of FincoLux 2, in the form of a limited
liability company with registered office in Luxembourg as soon as practicable after the
incorporation of Bidco for the purposes specified under Section 7.2 below.
	 
	5.6	 	Buyer’s right of access. The Seller shall allow, as from the Execution Date, the Buyer and
any person authorised by it, upon reasonable notice and subject to such confidentiality
undertakings as the Seller may reasonably require, full access to the premises (provided that
no more than 15 persons are allowed from time to time to access the premises), books and
records (including management accounts) of the Company and the Subsidiaries, to the extent
that this does not imply difficulties to the ordinary course of business.
	 
	5.7	 	No Breach of the Interim Management Provisions. The Seller and Enel shall procure that (save
only as may be necessary to give effect to this Agreement) neither the Company nor any of the
Subsidiaries shall do any act before the Closing Date which would constitute a breach of the
provisions of Section 6.1 of this Agreement.
	 
	5.8	 	Indemnity. In the event that the Seller is in breach of the obligations set out under
Sections 5.6, 5.7, 5.11 and/or 5.13, it shall pay the Buyer an indemnity pursuant to article
1382 of the Italian Civil Code, determined as follows: in case of breach of Section 5.6 above,
(i) up to a maximum amount of Euro 1,000,000.00 (one million) in relation to each breach of
any obligation set out in Section 5.6, while (ii) in relation to each breach of any obligation
set out in Section 5.7 above and Sections 5.11 and 5.13 below, up to a maximum amount of Euro
10,000,000.00 (ten million).
	 
	 	 	Notwithstanding the provision as above, the Buyer shall be entitled to claim compensation for
additional damages that it may incur in.
	 
	5.9	 	Key Employees. Enel and the Seller shall not terminate, prior to the Closing Date, the
employment agreements of all the Key Employees with the Company nor they shall enter into any
agreement providing for their termination (even on a mutual basis). Should Enel be violating
its commitment as above, it shall reimburse to the Company the cost of termination of their
employment. Should any Key Employees decide to leave the Company before the Closing Date or as
a consequence of the transactions provided for in this Agreement and, following such leave the
relevant Key Employees join Enel or any company belonging to Enel’s group of companies within
the following three months, Enel shall reimburse to the Company the cost attributable to the
non-competition undertaking of the relevant Key Employees, if any.
	 
	5.10	 	Put and Call. Enel and the Buyer, simultaneously with the execution of this Agreement, sign
and exchange between them the Put and Call Option Agreement relating to no. 9,166,620 shares
of the Company.
	 
	5.11	 	Tellas. Enel shall procure that the transfer agreement with Wind concerning the shares of
Wind PPC Holding (in relation to the 50%+1 shares of Tellas S.A.) signed as of December
18th, 2004, but not yet implemented will be mutually

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	     	 	terminated with effect as of the relevant date of execution and Tellas will continue to be a
subsidiary of the Company. The Seller undertakes not to terminate the intercompany loan
granted to Tellas for an amount equal to Euro 30 million the expiration of which shall be
postponed to December 31, 2007.

	5.12	 	Enel’s right of access. The Buyer shall cause Newco, Pikco and Bidco to allow, as from the
Execution Date, Enel and any person authorised by it, upon reasonable notice and subject to
such confidentiality undertakings as the Buyer, Newco, Pikco and Bidco may reasonably require,
full access to the premises (provided that no more than 5 persons per each of the above
referred companies are allowed from time to time to access the premises), books and records
(including management accounts) of Newco, Pikco, and Bidco.
	 
	5.13	 	Merger of Iol and Enel.net in Wind. Enel shall procure that the competent body of Wind,
Enel.net S.p.A. and Italia on line S.p.A. revocate the merger of Enel.net S.p.A. and Italia on
line S.p.A. in Wind.
	 
	5.14	 	Refinancing of the Company. Before the Closing, the Board of Directors of the Company shall
resolve (i) the adherence of the Company to the Credit Facilities Agreement and (ii) the
granting of an irrevocable mandate in favour of Enel, pursuant to Article 1723, second
paragraph, of the Civil Code, in order to request, on behalf of the Company, the drawdown of
A1 Term Loans, as defined in the Credit Facilities Agreement, for an amount of Euro 328
million. The above mandate shall also estabilish that in the drawdown notice Enel, on behalf
of the Company, shall request that the relevant amount is used as repayment of the
Company-Wind Loan, as defined in the Credit Facilities Agreement, by way of a deposit on an
account secured in the interest of Enel to guarantee the payment of the purchase price of the
shares to be transferred under the Put and Call Option Agreement. The actions set out in this
Section 5.14 shall take place at costs and expenses of the Company.
	 
	5.15	 	Limitation to disposal of shares. NS and/or the Buyer, as the case may be, shall not have the
right to transfer any of the shares in Newco to any third party without (i) disclosing the
relevant ultimate beneficial shareholder of such third party to Enel and (ii) the prior
approval of Enel (which may not be unreasonably withheld, and if denied, to be accompanied by
written and objective motivation). Subject to such disclosure and prior approval of Enel,
from the date hereof until the Closing has taken place, NS and/or the Buyer shall not have the
right to transfer to any financial investor a number of shares in Newco exceeding 10 (ten)
percent of Newco outstanding share capital.
	 
	6.	 	INTERIM MANAGEMENT
	 
	6.1	 	The Company. The Seller shall, in addition and without limiting the provisions of Section 5
above, procure that, from the Execution Date and until the Closing Date and without the prior
written consent by the Buyer (which will not be unreasonably witheld, and if denied, will have
to be accompanied by a motivated reason in the best interest of the Company and/or any of the
Subsidiaries, as the case may be) which shall be deemed as granted in the event that after
five calendar days from the receipt of the relevant request addressed by email to NS at
nsawiris@otelecom.com (with a copy to Hassan Abdou at

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	 	 	habdou@otelecom.com) or designated representatives, no communication to the contrary is
received by the Seller and the Company:

	 	(i)	 	the Company and the Subsidiaries shall do nothing which will or would
significantly injure the goodwill of their respective businesses; and
	 
	 	(ii)	 	neither the Company nor any of the Subsidiaries shall enter into any contract
or commitment or do anything which, in any such case, is either out of the ordinary
and usual course of their business and which materially affects the assets or
liabilities of any of such companies or their ability to carry on their respective
businesses as now conducted. In particular, the Seller shall procure that from the
Execution Date until the Closing Date neither the Company nor any of the Subsidiaries
shall:

	 	a.	 	make any alteration to its memorandum or articles of
association or any other document or agreement establishing, evidencing or
relating to its constitution;
	 
	 	b.	 	alter the nature or scope of its business;
	 
	 	c.	 	manage its business otherwise than in accordance with its
business and trading policies and practice to date in accordance with
existing and past practice, except as may be necessary to comply with changes
in relevant laws;
	 
	 	d.	 	enter into any agreement or arrangement or permit any
action whereby another company becomes its subsidiary or subsidiary
undertaking;
	 
	 	e.	 	enter into any transaction other than on arms’ length
terms;
	 
	 	f.	 	acquire (whether by one transaction or by a series of
transactions) the whole or a substantial or material part of the business,
undertaking or assets of any other person;
	 
	 	g.	 	dispose of (whether by one transaction or by a series of
transactions) the whole or any substantial or material part of its business,
undertaking or (except in the ordinary course of business) any other of its
assets, except for the participation held by the Company in Mobilmat S.p.A.
and for the intercompany transfer of the 0.72% of the capital of IT Net
S.r.l. and Mondo Wind S.r.l.;
	 
	 	h.	 	place binding new orders concerning capital expenditures
beyond an individual value or a cumulative orders of the same nature and in
the same context of Euro ten million (even if already planned in the quarter
for the budget adopted for the year 2005), with the expceptions of order
necessary to ensure compliance with coverage or other UMTS licence
undertakings, provided that in the case described under this letter (h), the
relevant consent shall be deemed as granted after 48 hours from the relevant
notice.
	 
	 	i.	 	Other than in the ordinary course of business, including
the restructuring of outstanding derivatives with the purpose of matching any
changes in a “reset date” of the underlying indebtedness; enter into any
loans, borrowings or other form of funding or financial facility or
assistance, or enter into any foreign exchange contracts, interest rate
swaps, collars, guarantees or agreements or other interest rate instruments
or any contracts or arrangements relating to derivatives or differences, or
in respect of

Page 13 of 40

 

	 	 	 	which the financial outcome is to any extent dependent upon future
movements of an index or rate of currency exchange or interest, or in the
future price of any securities or commodities;
	 
	 	j.	 	grant any loans or other financial facilities or assistance
to or any guarantees or indemnities for the benefit of any person or create
or allow to subsist any Encumbrance over the whole or any substantial part of
its undertaking, property or assets, other than in favour of companies of the
Wind Group;
	 
	 	k.	 	with the exception of agreements in the context of agency
or contents providers relationships, enter into any out of the ordinary
course of business joint venture, partnership or agreement or arrangement for
the sharing of or assets;
	 
	 	l.	 	enter into any death, retirement, profit sharing, bonus,
share option, share incentive or other scheme for the benefit of any of its
officers or employees or make any variation (including, but without
limitation, any increase in the rates of contribution) to any such existing
scheme or effect any key man insurance;
	 
	 	m.	 	commence, compromise or discontinue any legal or
arbitration proceedings (other than routine debt collection and matters
within an individual value of Euro 5 million);
	 
	 	n.	 	prematurely repay or prepay any loans, borrowings or other
financial facilities or assistance made available to it, except for
prepayments or repayments within the Wind Group;
	 
	 	o.	 	terminate the employment or office of any of its directors,
officers or senior employees (here meaning an employee whose present gross
annual remuneration exceeds Euro 100,000.00 or appoint any new director,
officer or senior employee or materially alter the terms of employment or
engagement of any director, senior employee or consultant;
	 
	 	p.	 	declare, make or pay any dividend or distribution (whether
of capital, profits or reserves); and/or
	 
	 	q.	 	enter into a, make or permit any material amendment,
variation, deletion, addition, renewal or extension to or of, or terminate or
give any notice or intimation of termination of, any Material Contract.

	 	 	It is however understood that (x) in case the Buyer does not consent to any action that the
Company or the Seller deem necessary and/or appropriate in order to avoid any event which
could give rise to a liability of ENEL and/or the Seller under this Agreement, then the
Buyer and the Company will not be entitled to any indemnification under this Agreement and
(y) in case this Agreement terminates due to the provisions set forth under Article 4
hereof, then the Seller shall not have right to indemnification arising from the legitimate
exercise of the rights of the Buyer under this Article 6.1.
	 
	6.2	 	OTH. NS, also on behalf of his family, and OS Holding and April Holding undertake and shall
procure that, from the Execution Date and until the Closing Date and without the prior written
consent of Enel (which will not be unreasonably witheld, and if denied, will have to be
accompanied by a motivated reason) which shall be deemed as granted in the event that after
five calendar days from the receipt of the relevant request, no communication to the contrary

Page 14 of 40

 

	 	 	is received by NS, no action, resolution or determination of the matters specified below
shall be taken by OTH and its subsidiaries, and no action shall be taken by the board of
directors of OTH and its subsidiaries and shall cause that no such action, resolution or
determination shall be taken by such boards, in addition and without limiting the provisions
of Section 5 above:

	 	(i)	 	any creation, authorization, increase in the authorized amount or
issuance of shares of any class or series of capital stock of OTH and any
obligation or security convertible into or exchangeable for shares of any class
or series of capital stock of OTH or any options, warrants or other rights to
acquire any class or series of capital stock of OTH;
	 
	 	(ii)	 	any merger, consolidation, reorganization or other business
combination with a third party involving OTH, or any of its subsidiaries or any
acquisition of OTH, or any of its subsidiaries by a third party that
substantially alters the nature of the business or assets of OTH, or any of its
subsidiaries;
	 
	 	(iii)	 	any reduction of OTH’s ownership interests in ECMS, Mobilink
(Pakistan affiliate), Djezzy (Algerian affiliate).

	 	 	Any transactions between OTH and/or any of its subsidiaries and himself, any member
of his family or their respective business affiliations shall be on arms-length,
market terms.
	 
	 	 	In case of:

	 	(i)	 	revocation of, loss or transfer by OTH and/or
any of its subsidiaries, of any of the licenses, permits or approvals
in Egypt, Algeria or Pakistan currently held by OTH and/or any of its
subsidiaries (the “OTH Licenses”); provided that any such revocation
or loss of the OTH Licenses is attributable to the action or inaction
of OTH, and/or any of its subsidiaries (for the avoidance of doubt,
any action or inaction by the partner of OTH in ECMS shall not be
attributable to OTH), (ii) material adverse changes or limitations to
the terms of any of the OTH Licenses provided that any such changes or
limitations to the Licenses are attributable to the action or inaction
of OTH, and/or any of its subsidiaries (for the avoidance of doubt,
any action or inaction by the partner of OTH in ECMS shall not be
attributable to OTH), (iii) a decision by OTH, and/or any of its
subsidiaries to invest and/or conduct operations in any country which
the Government of Italy considers officially hostile to Italian
national or international interests (for the sake of clarity, all
Countries where OTH Licences are current at the date hereof, shall not
be considered hostile), (iv) any action or series of actions or
inaction by OTH and/or any of its subsidiaries which result in
mismanagement of OTH and/or any of its subsidiaries the effect of
which is materially adverse and disruptive to the business, assets, or
financial condition of OTH and its subsidiaries (taken as whole), (v)
change of control of OTH, ECMS, Mobilink (Pakistan affiliate), Djezzy
(Algerian affiliate);

Page 15 of 40

 

	 	(ii)	 	as well as should any breach to the obligations
and undertakings set forth under this Section 6.2 occur,

	 	 	 	such events shall entitle Enel and/or the Seller — as the case may be — to
terminate this Agreement pursuant to article 1456 of the Italian Civil
Code; in such event, the provisions set forth under Section 7.6 below shall
apply.

	7.	 	CLOSING AND POST CLOSING ACTIONS
	 
	7.1	 	Closing. Subject to the satisfaction of the Conditions in Article 4, the Closing shall take
place on the Closing Date at the offices of Enel S.p.A. in Rome, viale Regina Margherita 137,
at 10.00 a.m., or at such other place and/or time and/or date which may be mutually agreed
upon by the Parties.
	 
	7.2	 	Closing and post Closing actions. At the Closing, each Party shall do or procure to be done
all acts necessary in order to consummate the transactions contemplated by this Agreement as
follows:

	 	(a)	 	the Buyer shall:

	 	(i)	 	pay or cause or have caused to be paid by Bidco to the Seller
the Purchase Price by wiring in immediately available funds (via an electronic
transfer or other transfer methods having similar simultaneous effect) the
relevant amount to the bank accounts previously designated by the Seller in
accordance with the provisions of Section 3.2 and the Seller shall acknowledge
in writing receipt of the Purchase Price;
	 
	 	(ii)	 	pay or cause to be paid to the appropriate entities or persons
and in the appropriate manner, any stamp, transfer or similar taxes or charges
levied by any governmental authority on the transfer of the Shares;
	 
	 	(iii)	 	execute and deliver or cause to be executed and delivered such
transfer or other instruments in respect of the purchase and sale of the Shares
contemplated hereunder (including a “fissato bollato”, if needed) as may be
necessary, under applicable law, to properly effect the purposes of this
Agreement;
	 
	 	(iv)	 	cause or have caused the repayment of all amounts (including,
without limitation, principal, accrued interest, commitment fee to Enel,
attesting full release of Enel by the Ministero dell’Economia e delle Finanze
from Enel’s obligations deriving from the guarantee issued by Sanpaolo IMI in
favour of the Ministero dell’Economia e delle Finanze in connection with the
deferred portion of the UMTS licence payment, equal to Euro 224.4 million as of
December 31, 2004. The Buyer shall also deliver appropriate documents, in a
form reasonably satisfactory to Enel, attesting full release of Enel by Banca
Intesa S.p.A. and all of the other banks composing the pool referred below from
any and all obligations deriving from the corporate guarantee issued

Page 16 of 40

 

	 	 	 	in favour of a pool of banks led by Banca Intesa S.p.A., guaranteeing the
amount of Euro 232.9 million with respect to the debt of the Company
towards the above referred pool of banks;

	 	(v)	 	cause or have caused the shareholders meeting of Newco to be
held and to resolve upon the adoption of the new by-laws, with a by-laws
reflecting the provisions of the Shareholders’ Agreement to the maximum extent
possible according to the applicable laws;
	 
	 	(vi)	 	cause that the shareholders meeting of Newco validly resolves a
share capital increase and a contribution for share premium partially reserved
to Enel, which shall simultaneously be underwritten:
	 
	 	 	 	(a) by way of contribution in kind by April Holding and OS Holding of a
number of general depositary receipts (“GDRs”) representing 50% plus 1
share of the share capital and related rights of Orascom Telecom (“OTH”)
(the “OTH Contribution”) and Euro 500 million in cash; and
	 
	 	 	 	(b) by way of contribution by Enel of Euro 305 million in cash.
	 
	 	 	 	The Buyer, NS and Enel acknowledge that independently from the value
resulting from the assessment rendered by an expert or by an auditing
firm pursuant to article 2465 of the Italian Civil Code on the OTH
Contribution and therefore independently from the value of the
contributions performed by each of them, as a result of such capital
increase, the corporate capital of Newco shall be divided as follows:

	 	–	 	94.8% to the Buyer and
	 
	 	–	 	5.2% to Enel;

	 	(vii)	 	cause that the quotaholders meeting of Luxco validly resolves a
share capital increase, which shall be fully underwritten by way of contribution
in kind by the Newco of a number of GDRs representing 38.1% of the share capital
of OTH (the “OTH Contribution 2”);
	 
	 	(viii)	 	cause that Newco sells to Luxco a number of GDRs representing 11.9% of the share
capital of OTH for a consideration equal to Euro 1,2 billion;
	 
	 	(ix)	 	to this end, cause the subscription by Luxco of a loan agreement and
a drawdown for an overall amount of Euro 1,2 billion, securing the relevant
obligations by granting in favour of the lenders a pledge over (i) a number of
GDRs representing 55,000,001 shares, so to say 50% plus 1 of the share capital of
OTH and (ii) a portion of its quota in Newco representing 51% of the share capital
of same Newco;

Page 17 of 40

 

	 	(x)	 	cause or have caused that the quotaholders meeting of Newco validly
resolves a new share capital increase reserved to Enel, which shall be
underwritten and paid by Enel in the period starting on January 15, 2006 and
ending on June 30, 2006, 2006 by way of contribution in kind of its entire
participation in Wind (the “Wind Contribution”) net of any possible transfer of
shares pursuant to the Put and Call Option Agreement, provided that such
obligation to contribute shall be subject to the exercise (x) by Bidco of its call
option rights set forth under the Put and Call Option Agreement and within 5
business days following the exercise of the referred call option right or (y) by
Enel of its put option rights set forth under the Put and Call Option Agreement
and within 5 business days following the exercise of the referred put option
right. The Buyer, NS and Enel acknowledge that independently from the value
resulting from the assessment rendered by an expert pursuant to article 2465 of
the Italian Civil Code on the Wind Contribution, as a result of such capital
increase, the corporate capital of Newco shall be divided as follows:

	 	–	 	73.9% to the Buyer and
	 
	 	–	 	26.1% to Enel;

	 	(xi)	 	cause the shareholders’ meeting of Pikco to be held and to resolve
upon a share capital increase and a share premium of Euro 2,005 million in the
aggregate to be simultaneously fully underwritten and paid by Newco by way of
contribution in cash of the same amount;
	 
	 	(xii)	 	cause the shareholders’ meeting of Bidco to be held and to resolve
upon a share capital increase up to Euro 2,505 million to be simultaneously fully
underwritten and paid by Pikco by way of contribution in cash of the same amount;
	 
	 	(xiii)	 	cause the subscription between FincoLux 2 and Bidco of a bridge loan agreement
and the drawdown by FincoLux 2 of an overall amount of Euro 1,750 million, less
any amount should be drawn under a PIK bridge facility between FincoLux 1 and
Pikco, up to Euro 500 million; so that, as a result of the above actions, Bidco
shall have received funds for an amount of Euro 3,755 million;
	 
	 	(xiv)	 	cause the execution by the companies of the Wind Group of new
insurance policies in relation to the risks covered by the Insurance Policies,
holding harmless and indemnified Enel from all the costs and liabilities arising
out of the Insurance Policies;
	 
	 	(xv)	 	own the entire corporate capital of Newco, with the exception of the
above provisions, and cause that Newco owns the entire share capital of Pikco and
Pikco owns the entire share capital of Bidco;
	 
	 	(xvi)	 	have assigned this Agreement to Bidco in accordance to Section 2.3
of this Agreement;

Page 18 of 40

 

	 	(xvii)	 	cause the refinancing of the Senior Facilities and any other obligation of Enel
or the Seller related to the Senior Facilities, at costs and expenses of the
Company;

	 	(b)	 	the Seller shall:

	 	(i)	 	deliver, and/or cause to be delivered, to the Buyer the
certificates representing the Shares, duly endorsed in a manner legally
sufficient, under applicable laws, to transfer to the Buyer good and marketable
title to such Shares and to properly register the Buyer in the Shareholders’
Ledger of the Company;
	 
	 	(ii)	 	execute and deliver, and/or cause to be executed and delivered,
such other instruments (including a “fissato bollato”, if needed) as may be
necessary, under, applicable law, to vest in the Buyer good and marketable
title to the Shares and to otherwise properly effect the purposes of this
Agreement;

	 	(c)	 	Enel shall subscribe and fully pay the corporate capital increase of Newco
provided for under Section 7.2 (a) (vi) above for an amount equal to Euro 305 million.
	 
	 	(d)	 	The Seller and the Buyer shall execute and deliver (and/or they shall cause to
execute and deliver) such other documents, as may be required, to duly transfer the
Shares to the Buyer and to enable the Buyer to become the registered holder thereof.
The Parties involved will promptly co-operate in order to consummate the transactions
mentioned above.
	 
	 	(e)	 	The Seller and Enel shall:

	 	(i)	 	cause the directors and, to any possible extent, the statutory
auditors of each company of the Wind Group, to resign effective as of the
Closing Date and to declare in writing that they have received up to the
Closing Date any and all remunerations connected to their respective offices
and that no company of the Wind Group owes them any money for any reason
whatsoever; and
	 
	 	(ii)	 	cause the shareholders’ meeting of the Company and of each of
the Subsidiaries to be held and to resolve upon the appointment of the new
board of directors of the Company and of each of the Subsidiaries composed of
ten members, seven of which designated by the Bidco and three designated by
Enel as indicated in the Shareholders Agreement;
	 
	 	(iii)	 	cause the shareholders’ meeting of the Company and of each of
the Subsidiaries to be held and to resolve upon the appointment of the board of
the statutory auditors of the Company and of each of the Subsidiaries as
indicated in the Shareholders Agreement;

Page 19 of 40

 

	 	(iv)	 	cause the extraordinary shareholders’ meeting of the Company to
be held and to resolve upon the adoption of the new by-laws reflecting the
provisions of the Shareholders’ Agreement to the maximum extent possible
according to the applicable laws;
	 
	 	(v)	 	cause the shareholders meeting of the Company to be held and to
resolve upon a corporate capital increase of Euro one million, plus Euro 399
million as share premium, which shall simultaneously be fully underwritten and
paid by Enel, by setting off the amounts due by the Company to Enel under the
shareholders loan and by setting off the intercompany receivables due by the
Company to Enel for an overall amount equal to Euro 400 million.

	 	(f)	 	The Parties shall duly sign and exchange between them the Shareholders Agreement
regulating their respective rights and obligations in the form attached hereto as
Schedule 7.2(f);
	 
	 	(g)	 	After Closing, Enel shall undertake to subscribe the corporate capital of Newco
pursuant to Section 7.2 (a)(x) in accordance with the terms and conditions provided
herein, so that Enel will have no more direct interest in the Company.

	7.3	 	Ownership. The Seller warrants that the Shares are and, on the Closing Date, will be free
and clear of all liens, pledges, encumbrances, options, charges or rights of third parties of
any kind whatsoever and that the Seller has and will have, on the same date, the full right,
power, and authority to transfer and deliver such Shares in, accordance with the
terms of this Agreement.
	 
	7.4	 	Transfer of Title. Upon the occurrence of the Closing, the Buyer will acquire title to and
beneficial ownership of the Shares as of the Closing Date.
	 
	7.5	 	Timing and effectiveness. All of the actions, executions, productions, remittances and
deliveries under the above Section 7.2, provided to be taken and made at Closing, shall take
place — with the exception of the subscription described under Section 7.2(a)(vii) and 7.2(g)
 — simultaneously, meaning that no action, execution, production, remittance and delivery shall
be effective unless all other actions, executions, productions, remittances and deliveries
shall be fully and regularly performed, so that all actions and transactions constituting the
Closing shall be regarded as a single transaction.
	 
	7.6	 	Liquidated Damages. In the event that the Closing does not take place for any breach
attributable to the Buyer, Newco, Pikco and Bidco, the Buyer shall be obliged to pay —
pursuant to Article 1382 of the Italian Civil Code — to the Seller and/or to Enel, at Enel’s
discretion, the amount of Euro 100,000,000.00 (one hundred million). Such obligation is
guaranteed by a bank guarantee delivered as of the date hereof in the text attached hereto as
Schedule 7.6.
	 
	 	 	Notwithstanding this provision, the Seller shall be entitled to claim payment for any
additional damages that should be incurred in.
	 
	7.7	 	Termination event. In the event that on or prior to the Closing Date, the representation
under Section 9 (v) below results to be untrue, inaccurate or

Page 20 of 40

 

	 	 	incomplete, the Seller and/or Enel shall have the right to terminate the Agreement pursuant
to article 1456 of the Italian Civil Code; in such event, the provisions set forth under
Section 7.6 above shall apply.

	7.8	 	Proceedings against the Company’s directors. The Buyer undertakes to procure that,
immediately after the Closing Date, a shareholders’ meeting of the Company validly resolves to
discharge and release, pursuant to article 2393 and 2476, fifth paragraph, as applicable, of
the Italian Civil Code, all present and past directors and statutory auditors of each of the
companies of the Wind Group from and against any liability vis-à-vis the Company or the
relevant Subsidiary. Furthermore, the Buyer shall hold harmless and indemnify all present and
past directors and statutory auditors of all the Companies from and against any and all such
liabilities vis-à-vis the Company or its shareholders.
	 
	8.	 	REPRESENTATIONS AND WARRANTIES BY ENEL AND THE SELLER
	 
	8.1	 	Representations and warranties by the Seller and Enel. The Seller and Enel hereby jointly
represent and warrant to the Buyer the following representations and warranties, and
acknowledge that they are correct and true as at the Execution Date and shall be repeated as
at the Closing Date, unless otherwise expressly specified herebelow. Save as provided by
Section 10.3.(a)(i)(3) below, the Seller and Enel acknlowledge that the fact that a due
diligence exercise was conducted by the Buyer will not limit the following representations and
warranties. Each of the representations and warranties shall be separate and independent and,
save as expressly provided, also with reference to the contents of the Schedules attached to
this Agreement, shall not be limited by reference to any other representation and warranties
or anything else in this Agreement.
	 
	8.1.1	 	Corporate power and authorizations

	 	(i)	 	The Seller and Enel have full corporate power and authority to execute and
deliver the Agreement and to consummate the transactions contemplated hereby.
	 
	 	(ii)	 	The Agreement constitutes a legally valid and binding obligation of the Seller
and Enel, and the entry into the Agreement and/or the performance by the Seller and Enel
of their respective obligations hereunder do not conflict with their respective
constitutive documents, any agreement to which the Seller or Enel are bound or any law
or regulation (regolamento) applicable to the Seller or to Enel or violate any judgement
applicable to the Seller or Enel or any company of the Wind Group, which could have a
material adverse effect on the Wind Group.
	 
	 	(iii)	 	The Seller and Enel may enter into the Agreement and consummate the transactions
contemplated hereby as they have obtained the approval by their competent corporate
bodies and without the necessity of obtaining the prior consent, authorisation, or
approval by or from any third parties or public authorities, except for the approvals
referred to in Section 4 above.
	 
	 	(iv)	 	Except as disclosed under Schedule 8.1.1 (iv) hereto, the execution and
delivery of this Agreement and the consummation of the transactions

Page 21 of 40

 

	 	 	 	contemplated hereby do not, in any material respect, conflict with, or result in the
breach of, or constitute a default under, or give rise to a right of termination,
cancellation or acceleration under, the TLC Authorisations listed under Schedule
8.1.1 (iv) hereto, or any Material Contract.

	8.1.2	 	Shares — Share capital of the Company and the Subsidiaries

	 	(i)	 	The Shares are all the shares of the Company owned by the Seller. The Shares are
legally and validly issued and fully paid in. The Seller lawfully owns the Shares (as
described in recitals (b) above), and the Shares will be at the Closing free and clear
of all Encumbrances save as provided for under the Senior Facilities. The Seller has the
right, power and capacity to sell, assign and deliver the Shares to the Buyer in
accordance with the terms of the Agreement.
	 
	 	(ii)	 	The Company owns the shares of the Subsidiaries free and clear of all
Encumbrances, except for those deriving from the Senior Facilities and those set forth
in Schedule 8.1.2 (ii).
	 
	 	(iii)	 	There is no agreement or undertaking pursuant to which any person or entity is
or could become entitled to request the issue of new shares by the Company or the
Subsidiaries and/or the transfer of any of the issued and authorized shares (including
the Shares) except as set forth in Schedule 8.1.2 (iii) and save as provided for
under the Senior Facilities.
	 
	 	(iv)	 	The Company and the Subsidiaries have neither issued any convertible or
exchangeable securities against shares, or any other securities which could give rise to
a capital increase, nor have they issued any securities granting the right to any amount
which the Company and the Subsidiaries (as the case may be) might distribute, or the
voting rights in the general meetings of the Company and the Subsidiaries or which could
result in any limitation of the rights attached to the issued shares, save as provided
for under the Senior Facilities.

	8.1.3	 	Incorporation, existence and good standing

	 	(i)	 	Each company of the Wind Group is duly incorporated, organized and validly
existing under the law of their respective jurisdiction and all TLC Authorizations
listed under Schedule 8.1.3 (i) are in full force and effect and are sufficient
to carry out the business of the Wind Group as currently conducted.
	 
	 	(ii)	 	Each company of the Wind Group is in good standing under the laws of their
respective jurisdiction; they have not defaulted in respect of any filing of any report
or declaration required by corporate law and by the relevant by-laws, the lack of which
may be material for the prosecution of their activity.
	 
	 	(iii)	 	Except as disclosed in Schedule 8.1.3 (iii), each company of the Wind
Group has never had any liquidator, receiver or any other similar official appointed.
None of the companies of the Wind Group has been subject to any insolvency or bankruptcy
process whatsoever and no such

Page 22 of 40

 

	 	 	 	appointment or process is pending. None of the companies of the Wind Group is
insolvent as at the date hereof.
	 
	 	(iv)	 	Exclusively as of the Closing Date, each of the companies of the Wind Group shall
have a share capital at least equal to the minimum required by law and sufficient in
respect of the requirements provided by the TLC Authorizations.
	 
	 	(v)	 	Exclusively as of the Closing Date, the consolidated net financial position of
the Wind Group, before the capital increase provided under Section 7.2(e)(v), calculated
according to Schedule 8.1.3 (v), will be not higher than Euro 7,569 million.

	8.1.4	 	Partnership, Subsidiaries and Branches

	 	(i)	 	No company of the Wind Group holds, directly or indirectly, any participation in
any company or consortium except as disclosed under
Schedule 8.1.4 (i) hereto.
	 
	 	(ii)	 	No company of the Wind Group has subsidiaries other than Wind PPC Holding, Tellas
SA and those set forth in Schedule A, and owns, directly or indirectly, any interest in
any other person, corporation or has any branch office or permanent establishment in any
country other than Italy, except as disclosed under Schedule 8.1.4 (ii) hereto.

	8.1.5	 	Conduct of the Business — Compliance with laws

	 	(i)	 	Any of the company of the Wind Group has in full force and effect all TLC
Authorizations;
	 
	 	(ii)	 	there has been no notice by any competent authority threatening in writing the
revocation, suspension or denial to renew of any of such TLC Authorizations.

	8.1.6	 	Consolidated Balance Sheet
	 
	 	 	The Consolidated Balance Sheet give a true and fair view of the financial position and
results of the operations of the Company and the Subsidiaries, according to Accounting
Principles, as of December 31, 2004 and for the year ended on said date.
	 
	8.1.7	 	Accounting books and records
	 
	 	 	The accounting books and records of each company of the Wind Group are complete and correct
in all material respect and have been properly kept in compliance with applicable laws and
regulations as in force at the relevant time in the respective jurisdictions.

	8.1.8	 	Tangible Assets

Page 23 of 40

 

	 	 	Any company of the Wind Group has a valid contractual relationship in connection with the
assets which is necessary to conduct its business as currently conducted. All properties and
assets material to the operations of each company of the Wind Group are reflected in the
Consolidated Balance Sheet or in the respective accounting records. All of the tangible
properties and assets, as a whole, owned by each company of the Wind Group are in normal
operating conditions and repair, normal wear and tear excepted.
	 
	 	 	(ii) No liabilities, commitments or obligation exist — arising to a materiality level in
respect of the whole of the relevant assets — by operation of law or contract with respect to
any real estate properties which have been previously owned, leased, possessed or used by
each the company of Wind Group or in which each company of the Wind Group has held any
rights.
	 
	 	 	(iii) with the exception of the assets subject to a contractual relationship different from
ownership, all equipments, including professional equipments of a tangible nature (such as
machinery, computer equipment, furniture and office equipment) used by each company of the
Wind Group are duly registered in the relevant company’s records.

	8.1.9	 	Intellectual Property Rights

	 	(i)	 	The Intellectual Property includes all intellectual property which the Company
and/or the Subsidiaries own or otherwise have the benefit of, necessary for the conduct
of the business as it is currently conducted of each company of the Wind Group;
	 
	 	(ii)	 	to the Sellers’ and Enel’s Knowledge, the use of the Intellectual Property does
not infringe upon, constitute a misappropriation of, or otherwise violate the rights of,
any party, in any material respect;
	 
	 	(iii)	 	all material Intellectual Property owned by the Wind Group is fully assignable
by each company of the Wind Group and may be used by the same without payment of any
material license fee;
	 
	 	(iv)	 	all trademarks owned by the Wind Group listed under the Intellectual Property,
have been duly registered or registration has been regularly applied for, except as
disclosed under Schedule 8.1.9 (iv) hereto;
	 
	 	(v)	 	there is no proceeding pending which relates to any Intellectual Property owned
by the Wind Group.

	8.1.10	 	Receivables
	 
	 	 	Except as disclosed in Schedule 8.1.10, the receivables of each company of the Wind
Group deriving from commercial transactions as reflected in the Consolidated Balance Sheet
are true and free and clear of any Encumbrance.
	 
	 	 	The provisions allocated in the receivables depreciation fund (fondo svalutazione crediti) of
the Company are, in the whole, sufficient to cover any shortfall or bad debt and there are
not receivables which will not be recovered by the Company within 180 days from the relevant
maturity date the aggregate amount of which exceeds the above provisions at any given time.

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	8.1.11	 	Material Contracts

	 	(i)	 	No party with whom any company of the Wind Group has entered into a Material
Contract has given written notice of its intention to terminate such contract.
	 
	 	(ii)	 	No party with whom any company of the Wind Group has entered into a Material
Contract is in material breach of such contract, except as disclosed under Schedule
8.1.11 (ii) hereto.
	 
	 	(iii)	 	The companies of the Wind Group are not in material breach of any Material
Contract, except as disclosed under Schedule 8.1.11 (iii) hereto.

	8.1.12	 	Insurance
	 
	 	 	Schedule 8.1.12 contains a list of insurance policies in force and effect as of the
Execution Date. None of the companies of the Wind Group is in default with respect to the
payment of any premiums under any such insurance policies or has failed to give any notice or
to present any claim under any such insurance policy in a due and timely fashion. No notice
has been received by any company of the Wind Group notifying termination by the relevant
insurer of any such policy.
	 
	8.1.13	 	Employees

	 	(i)	 	All the Wind Group’s current employees (the “Employees”) are regularly recorded
in the relevant pay-rolls of each company of the Wind Group; no employee of any of the
companies of the Wind Group is entitled to a salary higher than that recorded in the
relevant payroll.
	 
	 	(ii)	 	Except as disclosed under Schedule 8.1.13 (ii) hereto, all the
obligations provided by the applicable collective bargaining and other collective
agreements applicable to the executive Employees (dirigenti) and other employees of any
company of the Wind Group have been fully complied with; the companies of the Wind Group
has regularly paid all its Employees and any deferred payment due to them has been duly
accounted for in the Consolidated Balance Sheet.
	 
	 	(iii)	 	Except for what regards the chief executive officer and except as disclosed
under Schedule 8.1.13 (iii) hereto, no companies of the Wind Group has in place
any retirement plan, bonus scheme, profit sharing agreement, applicable to the relevant
Employees.
	 
	 	(iv)	 	Except for what regards the chief executive officer and except as disclosed under
Schedule 8.1.13 (iv) hereto, no stock option plan or incentive plan granting the
right to subscribe for or acquire any shares or financial instruments issued by the
companies of the Wind Group are available for any Employee, manager or directors of the
companies of the Wind Group.
	 
	 	(v)	 	Except as disclosed under Schedule 8.1.13 (v) hereto, all the companies
of the Wind Group have made all filings and taken all actions required to be made or
taken, under applicable social security, labour and welfare laws and regulations, with
respect to each Employee. All social security and

Page 25 of 40

 

	 	 	 	welfare charges due under the relevant employment agreements have been fully paid
or, to the extent that they were not payable on December 31, 2004, are adequately
reserved for in the Consolidated Balance Sheet.
	 
	 	(vi)	 	Except as disclosed under Schedule 8.1.13 (vi) hereto, neither voluntary pension,
nor other social voluntary benefits of any company of the Wind Group, including
agreements with or undertakings towards any Employees or executives are in force and
binding on any company of the Wind Group.

	8.1.14	 	Agents
	 
	 	 	Except as disclosed under Schedule 8.1.14 hereto, to the Seller’s and Enel’s
Knowledge, the obligations of each company of the Wind Group deriving from any agency
agreement listed under Schedule 8.1.14 hereto have been fulfilled by the relevant company of
the Wind Group in all material respects and no written notice of termination of said
agreements for breach attributable to any company of the Wind Group has been served or
notified by registered letter with return receipt requested in the period between March 31,
2004 and March 31, 2005 by the relevant agents. All insurance and social security payments
owed by the relevant company of the Wind Group (with respect to any agency agreement) have
been regularly paid or reserved for in the Consolidated Balance Sheet.
	 
	8.1.15	 	Taxes and other charges

	 	(i)	 	Except as disclosed under Schedule 8.1.15 (i) hereto, each company of the
Wind Group has duly and timely filed (taking into account any extension of time to file
granted or obtained) all Tax Returns that it was required to file.
	 
	 	(ii)	 	Except as disclosed under Schedule 8.1.15 (ii) hereto, all such tax
returns were correct and complete in all material respects. All Taxes owed by each
company of the Wind Group have been duly and timely paid (taking into account any
extension of time to file granted or obtained) or reserved against in the Consolidated
Balance Sheet.
	 
	 	(iii)	 	Except as disclosed under Schedule 8.1.15 (iii) hereto, no deficiency
for any amount of Tax have been asserted or assessed (in writing) by relevant
authorities, and is still pending, against any companies of the Wind Group.
	 
	 	(iv)	 	Except as disclosed under Schedule 8.1.15 (iv) hereto, no Amnesties (as
hereinbelow defined) relating to Tax matters has been entered into by any of the
companies of the Wind Group.

	8.1.16	 	Litigation and other Disputes — Investigation
	 
	 	 	Schedule 8.1.16 contains a complete list of all litigation of whatever nature in
which the companies of the Wind Group are involved as of the Execution Date. As to all suit,
administrative, arbitration or other legal proceedings pending against any of the companies
of the Wind Group amounts have been reserved against in the relevant Consolidated Balance
Sheet for the period thereof, in

Page 26 of 40

 

	 	 	accordance with the Accounting Principles. Except as disclosed under Schedule 8.1.16
bis, no claims or litigation has been threatened by means of registered letter with
return receipt requested, in the period between March 31, 2004 and March 31, 2005 which may
result in a liability exceeding the amount of Euro 200,000.00. None of the pending litigation
prevents at the Execution Date any of the companies of the Wind Group from conducting their
business as it is currently conducted.

	8.1.17	 	Intra-group transactions
	 
	 	 	Except as disclosed under Schedule 8.1.17, all the agreements and transactions with
related parties (as defined in the IAS 24) have been entered into, performed, paid or
received at arm’s length conditions, and in exchange for services actually provided or
received in the best interest of the Wind Group.
	 
	8.1.18	 	Absence of changes since January 1, 2005

	 	 	Except as otherwise disclosed and/or provided for under this Agreement, since January 1, 2005
and until the Execution Date each company of the Wind Group has conducted their respective
business in the ordinary course.
	 
	 	 	Except as disclosed under Schedule 8.1.18 hereto, since January 1, 2005 to the
Execution Date, there has not occurred or arisen, with respect to each company of the Wind
Group:

	 	(i)	 	any Material Adverse Change;
	 
	 	(ii)	 	any extraordinary event or any extraordinary loss suffered or any waiver of any
debts, claims, rights under any contract which is material for its business;
	 
	 	(iii)	 	any sale, assignment, transfer, pledge, lease or other disposal of any
individual fixed asset with a book value in excess of €200,000.00;
	 
	 	(iv)	 	any increase by more than 5% in the rates of compensation (including bonuses)
payable to any employee or acceleration in the rate at which any of such compensations
accrues, except if requested by any applicable laws, regulations and agreements;
	 
	 	(v)	 	any hiring of any executive employee (“dirigente”), having an annual gross salary
(including bonuses) in excess of Euro 300,000 R.A.L.;
	 
	 	(vi)	 	any change in accounting methods, principles or practices;
	 
	 	(vii)	 	distribution of any dividends, interim dividends and/or available reserves of
any kind whatsoever; or
	 
	 	(viii)	 	a buy-back of shares of any company of the Wind Group, or any other action aimed at
redeeming any shares of any of such companies.

	8.1.19	 	Environment
	 
	 	 	In relation to environmental matters, the Company has obtained the certification ISO 14001
in relation to each year from 2000 to 2004. To the Knowledge of the Enel and the Seller, no
audit or review carried out by the

Page 27 of 40

 

	 	 	Company evidenced any fact which could prevent the renewal of such certification.
	 
	 	 	Except as disclosed under Schedule 8.1.19 hereto, to the Seller’s and Enel’s
Knowledge, no company of the Wind Group has received by any competent authority any written
notice of violation of any applicable environmental laws or regulations.

	8.1.20	 	Information Technology
	 
	 	 	The IT system is adequate to conduct the Company’s business as currently carried out.
	 
	 	 	The Seller represents that during the 12-month period preceeding the Execution Date no
disruption to the Company’s activity was caused by a general malfunctioning of the IT system
that was not capable to be cured according to the Company’s procedures.
	 
	8.1.21	 	Right of way

For the purposes of this Section, “Backbone” shall mean the backbone transport fiber optic
infrastructure consisting of the physical layer built up by fiber optic cables, technical sites and
ducts used to connect the different nodes (fixed switching exchanges, MSC, PoP.) of the
telecommunication network at national level.

For the purposes of this Section, “Fixed Access Transport Infrastructure” shall mean the fixed
access transport infrastructure, implemented in local areas (mainly in principal cities)
consisting of the physical layer built up by ducts, fiber optic cables and technical sites. It is
used to connect together the different telecommuncation nodes (fixed switching exchanges, MSC, BSC,
PoP, PoI, LLU sites) installed in local area, to convey the traffic flow to the Backbone network
and viceversa and to connect clients.

	 	(i)	 	The Wind Group is entitled to use or has full and valid ownership, as the
case may be, on the Backbone.
	 
	 	(ii)	 	The agreements entered into by the companies of the Wind Group for the use of
the rete dorsale, as described therein, are those listed under Schedule 8.1.21 (i)
(“Network Agreements”). The Network Agreements are in full force and effect.
	 
	 	(iii)	 	The agreements entered into for the installation, maintenance and running of
the network pertaining to the companies of the Wind Group having an annual value in
excess of Euro 1 million, are those listed under Schedule 8.1.21 (ii) hereto (the
“Maintenance Agreements”) and have been duly entered into.
	 
	 	(iv)	 	The Maintenance Agreements are in full force and effect and no material
breach occurred which could give the other parties a right of termination, except as
set forth in Schedule 8.1.21 (iii).
	 
	 	(v)	 	As to the infrastructures located in streets, highways, alleys or the like
which fall under ANAS competence, the companies of the Wind Group have not entered
into any agreement which provides for (i) the payment in favour of ANAS, or third
parties, of royalties or (ii) the undertaking of

Page 28 of 40

 

	 	 	 	obligations more burdensome than those usually requested by the public authorities
for the granting of rights of ways.
	 
	 	(vi)	 	Except as disclosed under Schedule 8.1.21 (v) hereto, no claims by third
parties have been received by any company of the Wind Group in relation to the use of
the Backbone.
	 
	 	(vii)	 	Wind has valid and good title in connection with the Fixed Access
Transportation Infrastructure.

	8.1.22	 	Fair Trade and competition
	 
	 	 	Except as disclosed under Schedule 8.1.22 hereto, no agreement, practice or arrangement
carried on by the companies of the Wind Group or to which the companies of the Wind Group
are or have been a party:
	 
	 	 	(a)     is or has been the subject of any notified enquiry, complaint, investigation
or proceeding in respect of Article 81 or 82 of the

        Treaty; or
	 
	 	 	(b)     has been notified in the last six months to the European Commission and/or to
the EFTA Surveillance Authority.
	 
	 	 	The companies of the Wind Group have not given any assurance or undertaking to any relevant
competition Authority which remains binding on it and is not subject to or in default or
contravention of any such assurance or undertaking or any article, act, decision,
direction, regulation, order or other undertaking relating to any matter referred to in
this paragraph which remains binding on it.

	8.1.23	 	Privacy
	 
	 	 	The companies of the Wind Group are in compliance in all material
respects with the laws and regulations relating to the data
privacy (e.g. law 675/1996, 196/2003 and subsequent amendments and
related implementation instruments).

	8.1.24	 	Trading
	 
	 	 	(i)  The total number of SIM cards, in the first week of March, was not less than 11,900,000;
	 
	 	 	(ii)  the total number of active Fixed Line Subscribers, meaning the total number of direct
and indirect (Carrier PreSelection) plus the calling Carrier Selection Customers on a one
month basis, as of February 2005, was not less than 2,343,000;
	 
	 	 	(iii)   the number of Internet Registrations, meaning registrations defined in the Portal
Database (Libero and other minor portals) and having the possibility of using Portal
services, e.g. mail, as of December 31, 2004, was not less than 17,000,000;
	 
	 	 	(iv)   the number of customers paying connection, meaning the total number of Broadband
customers and total number of Narrowband customers on a one month basis, as of February 2005,
was not less than 2,842,000.

Page 29 of 40

 

	9.	 	REPRESENTATIONS AND WARRANTIES BY THE BUYER, APRIL HOLDING AND OS HOLDING
	 
	 	 	The Buyer, April Holding and OS Holding make to the Seller the following representations and
warranties, and acknowledges that they are correct and true as of the Execution Date and
that they shall be correct and true as of the Closing Date.

	 	(i)	 	The Buyer, April Holding and OS Holding have full corporate power and authority
to execute and deliver the Agreement and each other document or instrument delivered in
connection herewith and to consummate the transactions contemplated hereby.
	 
	 	(ii)	 	The Agreement constitutes a legally valid and binding obligation of the Buyer,
April Holding and OS Holding, and the entry into the Agreement and/or the performance by
the Buyer, April Holding and OS Holding of their respective obligations hereunder do not
conflict with their respective constitutive documents, any agreement to which the Buyer,
April Holding and OS Holding, or their assets, are bound or any law or regulation
applicable to the Buyer, April Holding and OS Holding.
	 
	 	(iii)	 	The Buyer, April Holding and OS Holding may enter into the Agreement
and consummate the transactions contemplated hereby as they have obtained the approval
by its competent corporate bodies and without the necessity of obtaining the prior
consent, authorisation, or approval by or from any third parties or public authorities,
except for the approval of the Antitrust Authority and or any other government body set
forth in Section 4.1 above.
	 
	 	(iv)	 	The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby will not conflict with, or result in the breach of,
or constitute a default under, or give rise to a right of termination, cancellation or
acceleration under, the Articles of Incorporation or the By-laws of the Buyer,
April Holding and OS Holding or the authorisations and licenses necessary to
conduct the business as presently conducted, or any agreement or instrument by which
the Buyer, April Holding and OS Holding are bound, or violate any judgement,
order, injunction, award, decree, law or regulation applicable to the Buyer,
April Holding and OS Holding.
	 
	 	(v)	 	Luxco, Newco, Pikco and Bidco are newly or inactive incorporated companies
which until the Closing shall have not operated and shall have not incurred in any
indebtedness or liabilities whatsoever.
	 
	 	(vi)	 	Except as provided in this Agreement and for the Encumbrances granted in favor of
Banca IMI in connection with the transaction herein, the GDRs contemplated in this
Agreement are free and clear from any Encumbrance and can validly be contributed as
provided herein.

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	10.	 	INDEMNIFICATION FOR BREACH OF THE REPRESENTATIONS AND WARRANTIES BY ENEL AND THE SELLER
	 
	10.1	 	Payment obligation.
	 
	 	 	Subject to the provisions of Section 10.3, Enel and the Seller, jointly and severally,
shall pay to the Company the following amounts:

	 	(i)	 	any and all liabilities of each company of the Wind Group of any nature,
whether absolute, accrued, contingent (“sopravvenienza passiva”) or otherwise,
existing as of December 31, 2004 or arising directly out of any acts, omissions or
transactions of each company of the Wind Group, or circumstances respectively,
occurring, entered into or existing prior to December 31, 2004 which are not reflected
in the Consolidated Balance Sheet;
	 
	 	(ii)	 	any and all deficiencies in the assets (“insussistenza dell’attivo”) of each
company of the Wind Group reflected in the Consolidated Balance Sheet;
	 
	 	(iii)	 	any and all costs, losses or damages incurred and paid by each company of
the Wind Group which would not have been so incurred, any and all losses,
liabilities, costs and expenses (including reasonable attorney’s fees) incident to any
of the foregoing, if all representations and warranties of Enel and the Seller
contained in this Agreement had been true, correct and accurate, to the extent that
such costs, losses or damages are not indemnified under Paragraphs (i) or (ii)
preceding.
	 
	 	 	 	To the extent that such damages are not indemnifiable under Paragraphs (i) through (iii)
preceding, Enel and the Seller shall jointly and severally pay to the Buyer any and all
damages incurred by the Buyer — proportionally to the
Buyer’s shareholding in the Company —
as a consequence of any breach of the representations and warranties of the Enel and Seller
contained in this Agreement or provided under this Agreement (including all costs and
expenses relating thereto).

	10.2	 	Exclusive Remedy.
	 
	 	 	The remedies provided for in this Section 10, after the Closing shall be the sole and
exclusive remedies available to the Buyer and/or to the benefit of the Company for the
breach of the representations and warranties set out in Section 8 of this Agreement.
	 
	10.3	 	Exclusions and Limitations.

	 	(a)	 	The liability of Enel and/or the Seller under this Agreement shall be subject
to the following restrictions and limitations:
	 
	 	(i)	 	Enel and/or the Seller shall not be liable to the Buyer and/or any of the
companies of the Wind Group:

	 	(1)	 	if the sum due in connection with any single occurrence
(provided that a series of repeated occurrence of the same type or nature shall
be considered as one single event) giving rise to liability which is

Page 31 of 40

 

	 	 	 	notified to the Seller pursuant to Subsection 10.5(a) amounts less than Euro
50,000.00 (fifty thousand);
	 
	 	(2)	 	until the aggregate of all amounts that would otherwise be due
pursuant hereto in connection with any events giving rise to the liability of
Enel and/or the Seller thereunder exceeds Euro 15,000,000.00 (fifteen million),
provided that if such limit is exceeded, the Buyer shall be entitled to recover
merely the excess over Euro 15,000,000.00 (fifteen million);
	 
	 	(3)	 	for the liabilities, deficiencies in the assets and costs,
losses or damages resulting from the content of the disclosures under Section 8
above including the relevant Schedules;

	 	(ii)	 	The liability of Enel and/or the Seller under this Agreement shall be limited
to the maximum aggregate amount of Euro 750,000,000.00 (seven hundred and fifty
million).
	 
	 	(iii)	 	Any sum payable by Enel and/or the Seller under this Agreement shall be
reduced by an amount corresponding to:

	 	(1)	 	any contingency funds or provisions recorded in the
Consolidated Balance Sheet in relation to the event that caused the breach of
the representation and warranty in relation to which the payment of the
indemnification is requested; It remains understood that if (i) the amount of
any allowance, provision or reserve reflected in the Consolidated Balance Sheet
is found to be in excess of the matter for which such allowance, provision or
reserve was made, and (ii) any increase in assets (sopravvenienze attive) and
any decrease in the liabilities (minusvalenza delle passività) of the Company
and/or of the Subsidiaries vis-à-vis the values recorded in the Consolidated
Balance Sheet, occurs, the amount of such excess shall be applied to increase
the threshold of Euro 15,000,000 (fifteen million) set out in Section 10.3
(a)(i)(2) of this Agreement.
	 
	 	(2)	 	payments received by any of the companies of the Wind Group
under any insurance or similar policies or indemnification agreements or
obligation of which any company of the Wind Group is the beneficiary, in
relation to the event that caused the breach of the representation and warranty
in relation to which the payment of the indemnification is requested.

	 	(iv)	 	In no event will Enel and/or the Seller be responsible to the Buyer and/or
any of the Companies of the Wind Group in respect of:

	 	(1)	 	any actual or alleged breach of the representations and
warranties contained in this Agreement (other than representations and
warranties concerning title to any properties — including absence of liens and
encumbrances thereon taxes, social security, environmental matters and health
and safety matters) which is notified to the Seller later than 18 (eighteen)
months from the Closing Date;
	 
	 	(2)	 	any actual or alleged breach of the representations and
warranties concerning environmental matters and health and safety matters,
contained in this Agreement which is notified to Enel and/or the Seller later
than 24 (twenty four) months from the Closing Date; or

Page 32 of 40

 

	 	(3)	 	any actual or alleged breach of the representations and
warranties concerning Taxes, social security, or employment matters, contained
in this Agreement which is notified to Enel and/or the Seller later than 20
(twenty) Business Days following the date on which any claim by the competent
authorities or other interested party or, parties in respect of matters covered
by such representations and warranties is finally barred by statute of
limitations applicable to such claim,

	 	 	 	provided, however, that the time limits provided under this Paragraph
(a)(iv) in respect of any actual or alleged breach of the representations or
warranties of the Seller referred to therein shall not restrain the enforceability
of a timely notice to the Seller of the kind referred to in Subsection 10.5(a).
	 
	 	(v)	 	Where the Buyer or any of the companies of the Wind Group is at any time
entitled to recover from some other person any sum in respect of any loss or any
matter giving rise to a claim against the Seller and/or Enel under any other provision
of this Agreement, the Buyer shall, and shall procure that the Company or the relevant
Subsidiary shall, undertake all necessary steps to enforce such recovery prior to
taking action against the Seller and/or Enel (other than to notify the Seller of the
claim against the Seller in accordance with Section 10.3(a)(iv)). If the Buyer or the
Company or the relevant Subsidiary recovers any amount from such other person, the
amount of the claim against the Seller and/or Enel shall be reduced by the amount
recovered, less all reasonable expenses incurred by the Buyer or the Company or the
relevant Subsidiary in recovering that sum from such other person.
	 
	 	(vi)	 	If the Seller and/or Enel pay at any time to the Buyer and/or any of the
companies of the Wind Group an amount pursuant to a claim under any provision of this
Agreement and the Buyer or any of the Companies subsequently becomes entitled to
recover from some other person any sum in respect of any matter giving rise to such
claim, the Buyer: (i) shall, and shall procure that the Company or the relevant
Subsidiary shall, take all necessary steps to enforce such recovery; and (ii) shall
immediately repay to the Seller and/or Enel so much of the amount paid by the Seller
and/or Enel to the Buyer or any of the Companies as does not exceed the sum recovered
from such other person less all reasonable expenses incurred by the Buyer or any of
the Companies in recovering that sum from such other person.
	 
	 	(vii)	 	No claim may be made against the Seller and/or Enel to the extent that such
claim arises from:

	 	(a)	 	any increase in the rates of tax or any change in law or
practice or any change in accountancy practice or principles, being an
increase, withdrawal or change made, in any such case, after the date of this
Agreement;
	 
	 	(b)	 	any differences between the Accounting Principles and the
bases, methods or policies of accounting used by the Buyer, the Company and/or
the Subsidiaries; or

Page 33 of 40

 

	 	(c)	 	any changes after Closing in the bases, methods or policies of
accounting of the Company and/or the Subsidiaries.

	 	(b)	 	Anything in this Agreement and, in particular (but without limitation), in
Section 10.3(a) to the contrary notwithstanding, none of the limitations to the
Buyer’s right of indemnification shall apply to the representations and warranties
concerning the full ownership of the Shares, the absence of Encumbrances on the Shares
and the right of the Seller to transfer the Shares to the Buyer.
	 
	 	(c)	 	In the event that, at any time between the Closing Date and the date upon
which the liability of Enel and Seller pursuant to this Agreement shall expire
pursuant to Paragraph (a)(iv) preceding, any law, regulation, order or decree should
be enacted in Italy having as an effect the right to settle, in whole or in part, any
matter regarding any company of the Wind Group covered by the Enel’s or the Seller’s
indemnity hereunder (any such law, regulation, order or, decree is hereinafter
referred to as an “Amnesty”), the following provisions shall apply:

	 	(i)	 	Enel and the Seller shall have the right to notify the Buyer of
their request that any of the companies of the Wind Group avails itself of the
Amnesty;
	 
	 	(ii)	 	the Buyer shall have the right to determine in its sole
discretion (irrespective of any request of Enel and the Seller under Paragraph
(i) preceding), whether or not such company or companies of the Wind Group
should avail itself of the Amnesty;
	 
	 	(iii)	 	if the Buyer elects to proceed with an Amnesty without the
prior agreement or request of Enel or the Seller, all costs and expenses of
such Amnesty shall be shared between the Parties in the proportion to be
determined by mutual agreement of same or, failing such agreement, to be
determined pursuant to Article 1349 of the Italian Civil Code by an arbitrator
appointed jointly by the Parties or, in the absence of an agreement by the
Parties within 20 Business Days, appointed by the President of the Court of
Rome;
	 
	 	(iv)	 	if the Buyer elects to proceed with an Amnesty in agreement
with Enel or the Seller or pursuant to the request of Enel and the Seller
hereunder, all costs and expenses of such Amnesty shall be borne by Enel and
the Seller;
	 
	 	(v)	 	if the Buyer elects not to proceed with an Amnesty
notwithstanding the request of Enel and the Seller pursuant to Paragraph (i)
preceding, it shall be free to do so, but the liability of Enel and the Seller
under Section 10.1 in respect of the matter constituting the subject of such
Amnesty shall be limited to the amount that would have been paid by the Seller
pursuant to Paragraph (iv) preceding had the Buyer elected to proceed with the
Amnesty in accordance with the Seller’ request.

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	10.4	 	Interest. On any amount to be paid pursuant to this Section 10, interest shall be due by the
Enel and the Seller (without need for prior- notice or protest) at the Agreed Rate for the
period comprised between the date on which demand for the payment of any indemnity thereunder
is made in writing by the Buyer pursuant to Subsection 10.5(a) and the tenth (10th) Business
Day following receipt of such demand by the Seller, and thereafter at a rate per annum equal
to three (3) percentage points over the Agreed Rate until payment is actually received by the
Buyer, provided, however, that, if proceedings are commenced for the payment of principal
amounts in respect of which interest is due pursuant to this Section 10.4, anything herein to
the contrary notwithstanding, such interest shall accrue at the Agreed Rate during the period
between the date on which the demand for payment referred to hereinabove is made by the Buyer
to the Enel and the Seller and the date on which an arbitration award is issued and
communicated to the Parties.
	 
	10.5	 	Handling of Claims. If any event occurs which could give rise to a liability of Enel and the
Seller under this Agreement in respect of any warranties or representations contained herein,
the following provisions shall apply:

	 	(a)	 	without prejudice to the provisions of Subsection 10.3(a)(iv), the Buyer
shall give prompt written notice to Enel and the Seller of such event and shall
provide all reasonable particulars thereof, provided that any delay in giving such
notice shall not discharge Enel and the Seller of their obligations under this
Agreement, except to the extent of any damages actually incurred by Enel the Seller as
a result of such delay or otherwise in connection to an increase of the damages of the
Company attributable to such delay.
	 
	 	(b)	 	Enel and the Seller shall have the right to participate, and, to the maximum
extent permitted by law, join, at its cost, by counsel or, counsels of its choosing,
in the defence of any claim, action, suit or proceeding asserted or initiated against
any company of the Wind Group and/or the Buyer constituting the subject matter of a
notice to the Seller and/or Enel referred to under Paragraph (a) preceding.
	 
	 	(c)	 	The Buyer shall properly and diligently defend, and (when applicable) shall
reasonably co-operate to cause each company of the Wind Group to properly and
diligently defend any third party claim, suit, action or proceeding of the kind
referred to under Paragraph (b) preceding.
	 
	 	(d)	 	The Buyer shall not make or accept any settlement of any claim, action, suit
or proceeding of the kind referred to under Paragraph (b) preceding, nor shall make
acquiescence thereto or, as the case may be, to any demand, assessment, judgement or
order constituting the subject matter of a notice to the Seller and/or Enel of the
kind referred to under Paragraph (a) preceding or, as the case may be, having resulted
from any such claim, action, suit or proceeding, nor shall (to the extent of its
ability) permit any company of the Wind Group to do so, without the prior, written
consent of the Seller and/or Enel, which consent shall not be withheld without
reasonable and sound justification and shall be presumed unless denied in writing
(together with supporting

Page 35 of 40

 

	 	 	 	justifications) not later than ten (10) Business Days following receipt by Enel or
the Seller of the Buyer’s written request therefor.

	 	(e)	 	If a firm offer is made to a company of the Wind Group or the Buyer to settle
any matter giving rise to the liability of Enel and/or the Seller under this Article
10 which Enel and/or the Seller, but not the Buyer, are willing to accept, the Buyer
and/or the Company or the relevant Subsidiary (as the case may be) shall be free not
to enter into such settlement and to commence or continue litigation, at its/their own
expense, and the liability of Enel and/or the Seller under Section 10.1 for the
relevant claim shall be limited to the amount of the proposed settlement for the
individual claim.

	11.	 	REPRESENTATIONS AND WARRANTIES BY ENEL AND THE SELLER IN RELATION TO TELLAS AND
INDEMNIFICATION
	 
	11.1.	 	Balance Sheet
	 
	 	 	Except for as disclosed under Schedule 11.1, the 2004 balance sheet of Tellas SA
(“Tellas Balance Sheet”) give a true and fair view of the financial position and results of
the operations of Tellas SA as of December 31, 2004 and for the year ended on said date.
	 
	11.2	 	Absence of changes since January 1, 2005
	 
	 	 	Since January 1, 2005 and until the Execution Date, Tellas SA has conducted its business in
the ordinary course.
	 
	 	 	Since January 1, 2005 to the Execution Date, there has not occurred or arisen, with respect
to Tellas SA:

	 	(i)	 	any extraordinary event or any extraordinary loss suffered or any waiver of any
debts, claims, rights under any contract which is material for its business;
	 
	 	(ii)	 	any sale, assignment, transfer, pledge, lease or other disposal of a substantial
part of the assets;
	 
	 	(iii)	 	any hiring of any executive employee (“dirigente”), having an annual gross
salary in excess of Euro 200,000;
	 
	 	(iv)	 	any change in accounting methods, principles or practices.

	11.3	 	Indemnification for breaches of the representation of Enel and the Seller provided under
Sections 11.1 and 11.2
	 
	 	 	Enel and the Seller shall jointly and severally pay to the Buyer any and all damages incurred by
the Buyer — proportionally to its shareholding in Tellas SA — as a consequence of any breach of the
representations and warranties of Enel and Seller contained in this Section 11 except for the
liabilities, deficiencies in the assets and costs, losses or damages resulting from the content of
the discousures under this Section 11 including the relevant Schedules.

Page 36 of 40

 

	 	 	The provisions set forth from Sections 10.2 to 10.5 shall apply mutatis mutandis to the right of
indemnification of the Wind PPC Holding NV for breaches of the representation and warranties
provided under Sections 11.1 and 11.2 with the only exception of the provisions of Sections 10.3
(a) (i) and 10.3 (a) (ii). The threshold provided under Section 10.3 (a) (iii) shall be deemed
equal to Euro 500,000.00.
	 
	 	 	The liability of Enel and/or the Seller under this Section 11 shall be subject to the following
restrictions and limitations:

	 	(i)	 	Enel and/or the Seller shall not be liable to the Buyer and/or Tellas SA until the aggregate of all amounts that would otherwise be due pursuant hereto in
connection with any events giving rise to the liability of Enel and/or the Seller
thereunder exceeds Euro 500,000.00, provided that if such limit is exceeded, the Buyer
shall be entitled to recover merely the excess over Euro 500,000.00.
	 
	 	(ii)	 	The liability of Enel and/or the Seller under this Section 11 shall be limited to the
maximum aggregate amount of Euro 5,000,000.00 (five million).

	12.	 	OTHER COVENANTS OF THE PARTIES
	 
	12.1	 	No Enticing — Confidentiality
	 
	 	 	The Seller and Enel hereby agree and covenant as follows:

	 	(a)	 	for a period of 1 (one) year after the Closing Date, each of Enel and the
Seller shall not, and shall cause its Affiliates not to, solicit, without the prior
written agreement of the Buyer, the employment of any Employees which are comprised in
the categories of “dirigenti” or “quadri” in excess of 5 dirigenti (but excluding Key
Employees), 20 quadri and 50 employees;
	 
	 	(b)	 	for a period of 3 (three) years from the Closing Date, each of Enel and the
Seller shall keep, and shall cause its Affiliates and their directors and employees to
keep, secret and confidential, all information in its/their possession relating to
each company of the Wind Group and its activities, except for information that is or
falls into the public domain or otherwise communicated to third parties through no
fault of Enel or the Seller or of their Affiliates or its or their directors and
employees or is released pursuant to an order of any Court, arbitrator or other
similar body.

	12.2	 	Smooth Transition. In order to facilitate the transition of the Wind Group to the Buyers’
group, upon request of the Buyer, Enel shall continue to provide to the Wind Group the
treasury services as they are currently provided, for a period up to three months from the
Closing Date. In the event that the Buyer does not request such services within ten days from
the Closing Date, the agreement providing for such treasury services shall immediately
terminate without any additional cost for the Wind Group.
	 
	12.3	 	Press release and announcement. No publicity, release of announcement to the public
concerning the existence, negotiation, execution or delivery of this Agreement, or any of the
provisions contained herein, or the transactions contemplated hereby or any matter ancillary
thereto, shall be made by either

Page 37 of 40

 

	 	 	Party prior to, or on, or after the Closing Date, without the prior written consent of the
other Party, as to both form and contents, which consent and approval shall not be
unreasonably withheld; provided however that nothing herein shall prevent either Party from
making any announcement or filing mandatory required by laws, regulations or by the rules
and regulations of any stock exchange or other regulatory body having jurisdiction on the
Buyer or the Seller.
	 
	13.	 	MISCELLANEOUS
	 
	13.1	 	Survival. This Agreement will remain in full force and effect even after the Closing Date in
respect to all its provisions which by their nature are not intended to be fulfilled at the
Closing, without being necessary for any Party to reiterate or otherwise confirm its
commitment with respect thereof.
	 
	13.2	 	Entire agreement. This Agreement (together with all documents which are required by its terms
to be entered into by the Parties) supersedes any agreement, verbally or in writing entered
between the Parties prior to the date hereof in respect of the sale and purchase of all the
Shares.
	 
	13.3	 	Amendment. No amendment to this Agreement shall be effective against any Party to this
Agreement unless made in writing and signed by such Party.
	 
	13.4	 	Failure and waiver. The failure of any Party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver of any right hereunder, nor
shall it deprive that Party of the right thereafter to insist upon the strict adherence to
that term or any other terms of this Agreement.
	 
	 	 	A waiver of any term, provision or condition of, or consent granted under, this Agreement
shall be effective only if given in writing and signed by the waiving or consenting Party
and only for the purpose for which it is given.
	 
	13.5	 	Severability. The invalidity for any reason or the unenforceability of any provisions (or
part thereof) of this Agreement shall not affect the validity, legality or enforceability of
any other provisions of this Agreement (or part thereof); it being agreed and understood by
the Parties that if any provision (or part thereof) is or at any time becomes to any extent
invalid, illegal or unenforceable, the Parties shall negotiate to any possible legal extent
and in good faith such replacement provisions or such changes to this Agreement as may be
necessary to implement the transactions contemplated herein in the manner originally agreed.
	 
	13.6	 	Assignment. Exception made for the provisions of Section 2.3 above and for the provisions of
the financing agreements mentioned in this Agreement, this Agreement shall be binding upon and
inure to the benefit of the Parties hereto and may not be assigned by the Seller or the Buyer
without the prior written consent of the other Party except for the right of the Buyer to
assign any of its current and future monetary receivables towards the Seller and/or Enel under
this Agreement to the finance parties participating, in any capacity, in the various financing
transactions to be carried out in connection with the share acquisition the benefit of the
representation and warranties and of the indemnification rights to its financing banks.

Page 38 of 40

 

	13.7	 	Costs and expenses. The Seller and the Buyer will each bear its own fees and expenses,
including but not limited to legal fees and expenses, incurred in connection with the
negotiations, preparation and execution of this Agreement and the transaction contemplated
hereby.
	 
	 	 	Any costs, expenses, taxes, duties or charges of any kind levied in connection with the sale
and transfer of the Shares shall be paid by the Buyer.
	 
	13.8	 	Notice, communications and election of domicile. Unless otherwise provided for in any other
provision of this Agreement, any notice, communication or other document required or permitted
to be given under this Agreement shall be made in writing and in English and shall be deemed
to have been duly and validly given: (a) in the case of notice sent by registered, certified
or express mail or international courier, upon receipt of the same, and (b) in the case of
notice sent by telefax upon acknowledgement of successful and complete transmission by the fax
machine of the sending party; addressed, in all cases, as follows:

	 	(i)	 	if to Enel or to the Seller:

Enel S.p.A.

Viale Regina Margherita, 137

00139 Roma

Facsimile no.: +39 06 85097866

Attention of: Salvatore Cardillo, head of legal department;

	 	(ii)	 	if to the Buyer, to Newco, to Bidco, to Luxco, to Pikco:

Nile City towers, Cornish El Nile, Ramlet Beaulac,

Cairo, Egypt

Fax: +202 461 50 54

Attention of Mr. Naguib Sawiris;

	 	 	or to such other address, facsimile no. or to such other person as any Party shall have last
designated by notice to the other Party in accordance with the provisions of this Section
13.8.
	 
	 	 	Mr. Naguib Sawiris elects domicile, to any effect of this Agreement, in Rome, Piazza SS:
Apostoli 80 c/o SAE-Capital S.p.A., Italy.

	13.9	 	Counterparts. This Agreement may be executed in any number of counterparts, and each
counterpart shall constitute an original instrument, but all such separate counterparts shall
constitute one and the same agreement.
	 
	13.10	 	Joint obligation. NS acknowledges and accepts to be joint obligor — pursuant to Article 1292
of the Italian Civil Code — with the Buyer, Newco, Bidco, Pikco, April Holding, OS Holding,
Luxco, for all the obligations and undertakings provided on their respective side in this
Agreement.
	 
	13.11	 	Initialization. NS underwrites the Agreement and gives proxy to Mr. Stefano Speroni, Esq.,
to initial the previous pages and the Enclosures.
	 
	14.	 	GOVERNING LAW AND JURISDICTION

Page 39 of 40

 

	14.1	 	Governing law. This Agreement shall be governed by, and construed and interpreted in
accordance with the laws of Italy.
	 
	14.2	 	Jurisdiction. Any and all disputes relating to or arising from this Agreement shall be
exclusively submitted to the competence of the Court of Rome.

IN WITNESS WHEREOF, the Parties have executed or caused this Agreement to be executed by their
respective officers or representatives thereunto duly authorized, in London on May 26, 2005.

Weather Investments II S.A.R.L.

/s/ Naguib Onsi Sawiris

Enel Investment Holding BV

/s/ Biagio Cinelli

Enel S.p.A.

/s/ Carlo Tamburi

Naguib Sawiris, as a joint obligor with each of the Buyer, Newco, Bidco, Pikco, April Holding, OS
Holding, Luxco.

/s/ Naguib Onsi Sawiris

OS Holding, as for the obligations relating to the contribution the OTH GDRs in Newco and to OTH
interim period

/s/ Naguib Onsi Sawiris

April Holding, as for the obligations relating to the contribution the OTH GDRs in Newco and to OTH
interim period

/s/ Naguib Onsi Sawiris

Weather Investments S.r.l.

/s/ Alessandro Benedetti

Page 40 of 40Exhibit 10.33

================================================================================

                            ASSET PURCHASE AGREEMENT

                                      AMONG

                         FINANCIAL DATA SOLUTIONS, INC.,

                           SOUTHWEST COMMUNITY BANCORP

                                       AND

                             FLOAT ACQUISITION CORP.

                           Closing Date: June 7, 2005

================================================================================

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE
1    DEFINITIONS..............................................................1

2    SALE OF ASSETS; CLOSING..................................................4
     2.1.    Sale of Assets...................................................4
     2.2.    Consideration....................................................5
     2.3.    Net Current Assets Adjustment to Purchase Price..................5
     2.4.    Accounts Receivable Adjustment to Purchase Price.................6
     2.5.    Buyer's Assumption of Liabilities................................7
     2.6.    Closing..........................................................7
     2.7.    Deliveries by Seller Parties at Closing..........................7
     2.8.    Deliveries by Buyer at Closing...................................8

3    REPRESENTATIONS AND WARRANTIES OF THE SELLER PARTIES.....................9
     3.1.    Organization and Power...........................................9
     3.2.    Authorization....................................................9
     3.3.    No Conflict......................................................9
     3.4.    Title to Purchased Assets........................................9
     3.5.    Condition of Purchased Assets...................................10
     3.6.    Financial Statements............................................10
     3.7.    Accounts Receivable; Credits....................................10
     3.8.    Pre-Bill........................................................10
     3.9.    Litigation......................................................10
     3.10.   Compliance with Law.............................................11
     3.11.   Absence of Undisclosed Liabilities..............................11
     3.12.   Absence of Certain Changes......................................11
     3.13.   Contracts.......................................................12
     3.14.   Intellectual Property...........................................12
     3.15.   Real Property...................................................14
     3.16.   Environmental Matters...........................................14
     3.17.   Labor; ERISA....................................................15
     3.18.   Taxes...........................................................15
     3.19.   Capitalization; Relationships with Related Persons..............16
     3.20.   Brokers.........................................................16
     3.21.   Insurance.......................................................16
     3.22.   Powers of Attorney..............................................16
     3.23.   Debt............................................................17
     3.24.   Solvency........................................................17
     3.25.   Statements not Misleading.......................................17

4    REPRESENTATIONS AND WARRANTIES OF BUYER.................................17
     4.1.    Organization and Power of Buyer.................................17
     4.2.    Authorization...................................................18

                                       i
<PAGE>

     4.3.    No Conflict.....................................................18
     4.4     Brokers.........................................................18

5    COVENANTS...............................................................18
     5.1.    Further Assurances; Cooperation.................................18
     5.2.    Covenants not to Compete........................................19
     5.3.    Use of Names....................................................21
     5.4.    Passage of Title and Risk of Loss...............................21
     5.5.    Transfer of Goodwill and Business...............................22
     5.6.    Expenses; Transfer Taxes........................................22
     5.7.    Taxes...........................................................22
     5.8.    Employment Matters..............................................23
     5.9.    Contingent Payment..............................................24
     5.10.   Motor Vehicles..................................................24

6    INDEMNIFICATION.........................................................24
     6.1.    Indemnified Losses..............................................24
     6.2.    Indemnification by Seller Parties...............................24
     6.3.    Indemnification By Buyer........................................25
     6.4.    Third Party Claims Against Buyer................................25
     6.5     Third Party Claims Against Seller...............................25
     6.6.    Procedures; No Waiver; Exclusivity..............................25
     6.7.    Set-Off.........................................................27
     6.8.    Survival........................................................27
     6.9.    Limitations on Indemnification by the Seller Parties............28
     6.10.   Exclusive Remedy................................................28

7    MISCELLANEOUS...........................................................28
     7.1.    Notices.........................................................28
     7.2.    Entire Agreement................................................29
     7.3.    Counterparts....................................................29
     7.4.    Parties in Interest; Assignment.................................29
     7.5.    Governing Law...................................................29
     7.6.    Schedules and Headings..........................................29
     7.7.    Amendment.......................................................29
     7.8.    Waiver..........................................................29
     7.9.    Joint and Several Liability.....................................30
     7.10.   Facsimile Signatures............................................30
     7.11    Press Release...................................................30

                                       ii
<PAGE>

EXHIBITS AND SCHEDULES
----------------------

Exhibit A    --      Escrow Agreement
Exhibit B    --      Opinion of Counsel to the Seller Parties
Exhibit C    --      Bill of Sale, Assignment and Conveyance
Exhibit D    --      Form of Lease Assignment
Exhibit E    --      Assumption of Liabilities

Schedule 1A      --      Assumed Liabilities
Schedule 1B      --      Purchased Assets
Schedule 2.7     --      Consents Required for Closing
Schedule 3.3     --      Consents, Etc.
Schedule 3.4     --      Title to Purchased Assets
Schedule 3.6     --      Reference Date Balance Sheet
Schedule 3.13    --      Contracts
Schedule 3.14    --      Intellectual Property
Schedule 3.15    --      Real Property
Schedule 3.17    --      Labor; ERISA
Schedule 3.18    --      Taxes
Schedule 3.19    --      Capitalization
Schedule 3.20    --      Brokers
Schedule 3.21    --      Insurance
Schedule 3.23    --      Debt
Schedule 5.8     --      Severance Obligations
Schedule 5.9     --      Contingent Payment

                                      iii
<PAGE>

                            ASSET PURCHASE AGREEMENT

     This ASSET PURCHASE AGREEMENT (the "Agreement") is executed as of June 7,
2005, by and among FINANCIAL DATA SOLUTIONS, INC., a corporation incorporated
under the laws of the State of California ("Seller"), SOUTHWEST COMMUNITY
BANCORP, a corporation incorporated under the laws of the State of California
(the "Stockholder" and together with Seller, the "Seller Parties") and FLOAT
ACQUISITION CORP., a corporation incorporated under the laws of the State of
Delaware ("Buyer") (collectively, the "parties").

                                    RECITALS

     WHEREAS, Buyer wishes to purchase from Seller, and Seller wishes to sell to
Buyer, the Purchased Assets (as defined below) upon the terms and conditions of
this Agreement; and

     WHEREAS, in order to induce Buyer to purchase the Purchased Assets, the
Stockholder, who will receive a direct, tangible and material benefit from the
transactions contemplated by this Agreement by virtue of the fact that the
Stockholder is the owner of 100% of the outstanding capital stock of Seller, is
willing to be party to this Agreement as set forth herein.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements hereinafter set forth, the parties hereto agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

     For purposes of this Agreement, the following terms shall have the
following meanings:

     "Accounts Receivable" shall mean (a) all accounts receivable and other
rights to payment from customers of Seller and the full benefit of all security
for such accounts or rights to payment, including all accounts receivable
representing amounts receivable in respect of goods shipped or products sold or
services rendered to customers of Seller, (b) all other accounts or notes
receivable of Seller and the full benefit of all security for such accounts or
notes, and (c) any claim, remedy or other right related to any of the foregoing.

     "Assumed Liabilities" shall mean only the duties, liabilities or
obligations of Seller, if any, arising after the Closing Date in connection with
the items identified on Schedule 1A, except as otherwise noted on Schedule 1A,
and shall specifically exclude, among other things, (i) any liabilities for
employment, income, sales, property or other Taxes incurred or accrued by
Seller, including without limitation as a result of this transaction; (ii) any
fees or expenses incurred by Seller in connection with this transaction; (iii)
any debt, payables or other liabilities to Related Persons other than salary and
other payroll related expenses that may be specifically set forth on Schedule
1A; (iv) any liabilities related to any employee benefit plan, including,

<PAGE>

without limitation, any 401(k), any profit sharing or pension plan, whether or
not sponsored by Seller, any deferred compensation payables, accrued bonus
payables, any stock option plan or stock option, other accrued liabilities, and
any COBRA-related obligations; (v) any and all liability related to Seller's
Real Property except as specifically set forth in the Lease Assignments; (vi)
any litigation pending against Seller; (vii) any warranty liability to Seller's
customers, including any liability arising out of or relating to any breach by
Seller of any obligation to a customer that occurred prior to the Closing; and
(viii) any liability or obligation constituting or arising out of any Debt of
Seller.

     "Business" shall mean the business of item processing, remittance
processing, lockbox processing, statement rendering and document imaging and
records management services to banks, credit unions and other financial
institutions and intermediaries.

     "Closing" shall mean the consummation of the purchase and sale transaction
described herein.

     "Closing Date" shall mean the date on which the Closing occurs, as
specified in Section 2.6.

     "Current Assets" shall mean all Accounts Receivable, cash, inventory and
prepaid expenses (including without limitation, pre-paid postage) of Seller and
other assets classified as current assets in accordance with GAAP.

     "Current Liabilities" shall mean all trade accounts payable and deferred
revenue obligations (whether categorized as deferred revenue or as customer
deposits), accrued sales commissions, accrued costs of sales and amounts owing
to vendors and suppliers for goods and services provided before the Closing Date
but invoiced after the Closing Date, all amounts attributable to accrued
vacation (whether or not Seller has historically included the same as a current
liability on its balance sheet), and other debts, liabilities and obligations
that are classified as current liabilities in accordance with GAAP.

     "Debt", as applied to any Person, means: (a) indebtedness or liability of
such Person for borrowed money, or with respect to deposits or advances of any
kind, or for the deferred purchase price of property or services; (b) all
obligations of such Person evidenced by notes bonds, debentures or similar
instruments, (c) all obligations of such Person under conditional sale or other
title retention agreements relating to property or assets purchased by such
Person, (d) all obligations of such Person for the deferred purchase price of
property or services; (e) all obligations of such Person as lessee under capital
leases; (f) current liabilities of such Person in respect of the present value
of unfunded vested benefits under any employee benefit plan; (g) obligations of
such Person under letters of credit, bankers acceptances, or comparable
arrangements; (h) obligations of such Person arising under acceptance
facilities; (i) guaranties; endorsements (other than for collection or deposit
in the ordinary course of business), and other contingent obligations of such
Person to purchase, to provide funds for payment, to supply funds to invest in
any Persons, or otherwise to assure a creditor against loss; (j) all obligations
of such Person secured by any Lien on any of such Person's assets or property,
whether or not the obligations have assumed, and (k) all obligations of such
Person in respect of interest rate protection agreements, foreign currency
exchange agreements or other interest or exchange rate hedging arrangements.

                                       2
<PAGE>

     "Excluded Assets" shall mean those items listed as such on Schedule 1B
hereto.

     "Financial Statements" shall have the meaning assigned to it in Section
3.6.

     "GAAP" shall mean United States generally accepted accounting principles
consistently applied.

     "Governmental Entity" shall mean any court, administrative agency,
commission, state, municipality or other governmental authority or
instrumentality, domestic or foreign, national or international.

     "Knowledge" - an individual will be deemed to have "Knowledge" of a fact or
other matter if:

     (a) such individual is actually aware of that fact or matter; or

     (b) a prudent individual would discover or otherwise become aware of that
fact or matter in the course of conducting a reasonably comprehensive
investigation regarding the accuracy of any representation or warranty contained
in this Agreement.

     Seller and Stockholder will be deemed to have "Knowledge" of a particular
fact or other matter if Frank Mercardante, Alan Lane, Fred Mirzaian, or Peg
Caffarel has Knowledge of that fact or other matter (as set forth in (a) and (b)
above).

     "Leases" shall mean the lease agreements described on Schedule 3.15.

     "Liens" shall mean all liabilities, claims, liens, charges, pledges,
security interests, options, restrictions or other encumbrances of any kind.

     "Material Adverse Effect" means any circumstance, change in, or effect on,
the Business or Seller that, individually or in the aggregate with any other
circumstances, changes in, or effects on, Seller or the Business: (a) is, or
could be, materially adverse to the business, operations, assets or liabilities
(including, without limitation, contingent liabilities), employee relationships,
customer or supplier relationships, prospects, results of operations or the
condition (financial or otherwise) of the Business, or (b) could materially
adversely affect the ability of Buyer to operate or conduct the Business in the
manner in which it is currently operated or conducted, or contemplated to be
conducted, by Seller, or (c) could impair the ability of Seller to consummate
the transactions contemplated by this Agreement.

     "Net Current Assets" shall mean the amount of Current Assets included in
the Purchased Assets minus the amount of Current Liabilities included in the
Assumed Liabilities.

     "Permitted Liens" shall have the meaning assigned to it in Section 3.4.

                                       3
<PAGE>

     "Person" shall be construed broadly and shall include an individual, a
partnership, a corporation, a limited liability company, an association, a joint
stock company, a trust, a joint venture, an unincorporated organization or a
Governmental Entity (or any department, agency or political subdivision
thereof).

     "Purchase Price" shall mean the aggregate amount to be paid by Buyer to
Seller for the Purchased Assets and includes the cash consideration payable
pursuant to Section 2.2(a), the Primary Escrow Funds payable pursuant to Section
2.2(b) ) and the Contingency Escrow Funds payable pursuant to Section 2.2(c).

     "Purchased Assets" shall mean all of Seller's property and assets, whether
real, personal or mixed, tangible and intangible, of every kind and description,
wherever located, including without limitation those items identified on
Schedule 1B, but excluding the Excluded Assets.

     "Records" shall mean all books of account, general, financial and
accounting records, files, invoices, payment authorizations, correspondence to
and from customers, suppliers and payors, and other data and information owned
by Seller.

     "Reference Date" shall mean March 31, 2005.

     "Reference Date Balance Sheet" shall mean the unaudited balance sheet for
Seller as of the Reference Date.

     "Related Person" shall mean any officer, director, stockholder, employee or
consultant of Seller or any holder of five percent (5%) or more of any class of
stock of Seller or any member of the immediate family of any such officer,
director, stockholder, employee or consultant or any entity controlled by any
such officer, director, stockholder, employee or consultant or by a family
member of any such officer, director, stockholder, employee or consultant.

     "Taxes" (or "Tax" where the context requires) shall mean all federal,
state, county, city, local, foreign and other taxes (including, without
limitation, premium, excise, value added, sales, use, occupancy, gross receipts,
franchise, ad valorem, severance, capital levy, production, transfer,
withholding, employment, unemployment compensation, payroll-related and property
taxes, import duties and other governmental charges and assessments), whether or
not measured in whole or in part by net income, including deficiencies,
interest, additions to tax or interest or penalties with respect thereto.

                                    ARTICLE 2

                             SALE OF ASSETS; CLOSING

     Section 2.1. Sale of Assets. At the Closing, Seller shall sell, assign,
transfer, convey and deliver to Buyer, free and clear of all Liens (except
Permitted Liens), good and marketable title to all of the Purchased Assets. It
is intended that the consummation of the purchase and sale of the Purchased
Assets will transfer the Business to Buyer as a going concern with all of the
assets, properties and rights used in or required for the operation and conduct
of the Business as of the Closing Date.

                                       4
<PAGE>

     Section 2.2. Consideration. The Purchase Price shall be $9,000,000, subject
to the adjustments set forth in this Agreement, including without limitation in
Sections 2.3 and 2.4 hereof. Buyer shall pay the Purchase Price by delivery in
the following manner:

     (a) $7,635,000 in cash by wire transfer at Closing to Seller;

     (b) $600,000 (the "Primary Escrow Funds") in cash by wire transfer at
Closing to U.S. Bank National Association (the "Escrow Agent"), to be held under
an escrow agreement in substantially the form of Exhibit A (the "Escrow
Agreement"). A portion of the Primary Escrow Funds equal to the difference
between (X) $300,000 and (Y) the amount of any Reduction in Net Current Assets
(as defined in Section 2.3 below) plus the amount of any Pending Claim Amounts
(as defined in the Escrow Agreement) shall be paid to Seller within [ten (10]
days after the later of (i) the final determination of Final Net Current Assets
in accordance with Section 2.3 below and (ii) the payment to Buyer of any
Reduction in Net Current Assets due Buyer as a result of the determination of
Final Net Current Assets in accordance with Section 2.3 below, and the balance
of the Primary Escrow Funds shall be paid to Seller on the one (1) year
anniversary of the Closing Date, all in accordance with the Escrow Agreement but
subject to the terms and conditions described in this Agreement, including,
without limitation, in Sections 2.3, 2.4 and 6.7 hereof; and

     (c) $765,000 (the "Contingency Escrow Funds") in cash by wire transfer at
Closing to the Escrow Agent, to be held under the Escrow Agreement, said
Contingency Escrow Funds to be paid to Seller as provided in Section 5.9, but
subject to Buyer's rights to recover the Contingency Escrow Funds as provided in
Section 5.9 and the Escrow Agreement.

     Section 2.3. Net Current Assets Adjustment to Purchase Price.

     (a) Estimated Net Current Assets. Within sixty (60) days following the
Closing Date, Buyer will prepare, or cause to have prepared, and deliver to
Seller a balance sheet of the Business and a statement of the Net Current Assets
of the Business as of the Closing Date. As prepared by Buyer, this statement of
the Net Current Assets shall be referred to as the "Estimated Net Current
Assets." The Estimated Net Current Assets shall be prepared in accordance with
GAAP.

     (b) Objection. The Estimated Net Current Assets shall be deemed accepted by
Seller and binding unless Seller sends Buyer a written objection thereto within
fifteen (15) days following Seller's receipt thereof. In the event that Seller
delivers a timely written objection as aforesaid, and Buyer and Seller are
unable to resolve such objection within fifteen (15) days after Buyer is
notified of Seller's objection, the matters in dispute shall be submitted for
final and binding determination to a firm of independent certified public
accountants of national recognition and standing jointly selected by Buyer and
Seller (the "Accountants"). The Accountants shall prepare their resolution
statement within forty-five (45) days of appointment. In the event that the
parties are required to agree on the identity of the Accountants but are unable

                                       5
<PAGE>

to do so, then the firm to be used shall be selected by lot from among the "Big
4" accounting firms having offices in the Hartford, Connecticut area, other than
those firms which have had a material relationship with Buyer or Seller. The
Estimated Net Current Assets proposed by Buyer, as adjusted by agreement of
Seller and Buyer or finally determined by the Accountants, as applicable, to
reflect the resolution of any timely objections made thereto by Seller in
accordance with this paragraph, shall constitute the "Final Net Current Assets"
and shall be binding on the parties hereto. Buyer and Seller shall each pay
their own expenses of preparing and analyzing the Estimated Net Current Assets
and resolving objections thereto. The fees and expenses of the Accountants used
to resolve objections will be borne equally by Buyer and Seller.

     (c) Access to Information. Solely in connection with the preparation of the
Estimated Net Current Assets and the Final Net Current Assets:

         (i) Buyer shall give Seller and its accountants reasonable access to
     the books and records of the Business, and shall cause employees of the
     Business to cooperate with them and provide them with all information
     reasonably requested, all after receiving reasonable notice from them of
     their requirements and reaching agreement as to mutually convenient times
     for review; and

         (ii) Buyer and the Seller Parties, to the extent within their
     respective control, shall give to each other and their agents access to the
     books, financial records, work papers and other materials and documents
     used or produced in connection with the preparation of the Estimated Net
     Current Assets and the Final Net Current Assets.

     (d) Final Net Current Assets. In the event that the Final Net Current
Assets are less than $925,000 (the difference is referred to as a "Reduction in
Net Current Assets"), the Seller Parties shall be jointly and severally liable
for such difference as a reduction in the cash portion of the Purchase Price.
Buyer shall be entitled to set-off the amount of such Reduction in Net Current
Assets from the Primary Escrow Funds in accordance with Section 6.7 of this
Agreement, and, to the extent the Reduction in Net Current Assets exceeds the
amount of the Primary Escrow Funds then available under the Escrow Agreement,
the Seller Parties shall pay the difference to Buyer within (10) days after
receipt of written demand therefor.

     Section 2.4. Accounts Receivable Adjustment to Purchase Price.

     (a) Receivable Shortfall. Buyer and the Seller Parties agree that the
Purchase Price payable to Seller shall be reduced to the extent that the
Accounts Receivable have not been collected by Buyer within ninety (90) days
following the Closing Date (the "Collection Period").

     (b) Adjustment to Purchase Price. Within sixty (60) days following the end
of the Collection Period, Buyer shall prepare and furnish to Seller a statement
setting forth the Accounts Receivable and all payments made thereon, calculated
as of the end of the Collection Period, and the amount, if any, owing from the
Seller Parties to Buyer pursuant to Section 2.4(a) (a "Receivable Shortfall").
The Seller Parties shall be jointly and severally liable for the Receivable

                                       6
<PAGE>

Shortfall. Buyer shall set-off the Receivable Shortfall from the Primary Escrow
Funds in accordance with Section 6.7 and, to the extent the amount of the
Receivable Shortfall exceeds the amount of the Primary Escrow Funds then
available under the Escrow Agreement, the Seller Parties shall pay the
difference to Buyer within (10) days after receipt of written demand therefor.
Upon payment of the Receivable Shortfall, at Seller's request, Buyer shall
assign to Seller those Accounts Receivable which were uncollected at the end of
the Collection Period and Seller may thereafter collect such re-assigned
Accounts Receivable for Seller's own account.

     (c) Collection of Accounts Receivable. Between the Closing Date and the end
of the Collection Period, Buyer shall use reasonable efforts consistent with its
usual and customary collection practices to collect the Accounts Receivable,
provided that Buyer shall not be obligated to resort to litigation.

     (d) Payments in Transit after the Closing. Any payments that are received
by Seller after the Closing Date in respect of Accounts Receivable shall be
owned by and deemed the property of Buyer, and Seller shall turn over to Buyer
all such amounts within ten (10) days of receipt thereof.

     Section 2.5. Buyer's Assumption of Liabilities. On the terms and subject to
the conditions set forth in this Agreement, and in further consideration of the
transfer of the Purchased Assets, at the Closing Buyer shall assume only those
duties, liabilities or obligations of Seller included in the Assumed
Liabilities.

     Section 2.6. Closing. The Closing shall take place (via facsimile,
telephone, mail and other mutually acceptable means of communication and
delivery) simultaneously at the offices of Buyer's counsel, Shipman & Goodwin
LLP in Hartford, Connecticut and Seller's counsel, Horgan, Rosen, Beckham &
Coren, L.L.P in Calabasas, California on the date hereof or at such other time
and location as the parties hereto shall agree in writing.

     Section 2.7. Deliveries by Seller Parties at Closing. At the Closing,
Seller shall convey, transfer, assign and deliver to Buyer all of the Purchased
Assets, including good and merchantable title to all personal property included
therein, free and clear of all Liens (except Permitted Liens). The Seller
Parties shall deliver to Buyer:

     (a) The Escrow Agreement fully executed by Seller and Escrow Agent;

     (b) An opinion of the Seller Parties' counsel, dated the Closing Date, to
the effect and substantially in the form of Exhibit B to this Agreement;

     (c) Evidence of authorization to change Seller's name, and documents
sufficient to effectuate such change and to convey to Buyer all rights in the
names Financial Data Solutions, Inc. and FDSI;

     (d) Bill of Sale in the form of Exhibit C, and such assignments and other
instruments of transfer as may be reasonably satisfactory to Buyer's counsel,
and with such consents to the conveyance, transfer and assignment thereof as may
be necessary to effect the conveyance, transfer, assignment and delivery of the
Purchased Assets and to vest in Buyer the title specified in this Section and to
assure to Buyer the full benefit of the Purchased Assets, including without
limitation:

                                       7
<PAGE>

         (i) the transfer of all registered Proprietary Rights of Seller (as
     such term is defined in Section 3.14 hereof) and applications therefor; and

         (ii) the consents listed on Schedule 2.7;

     (e) Releases of all Liens (other than Permitted Liens) on the Purchased
Assets;

     (f) A Lease Assignment and Assumption among Seller, Buyer and the landlord
under each Lease, with respect to each Lease, in the form attached hereto as
Exhibit D, fully executed by Seller and each respective landlord (the "Lease
Assignments");

     (g) Good Standing Certificate of recent date for Seller from the Secretary
of State of the States of California;

     (h) A Secretary's Certificate with respect to Seller's Certificate of
Incorporation, By-laws, director and stockholder resolutions and officer
incumbency, in form and substance satisfactory to Buyer;

     (i) Evidence, satisfactory to Buyer, that Southwest Community Bank has
entered into a new customer agreement (or an amendment to its existing customer
agreement) with Seller (to be assigned to Buyer at Closing) pursuant to which
the term of such agreement expires no earlier than the third anniversary of the
Closing, and pursuant to which the termination fee payable by the Stockholder in
certain circumstances is equal to 70% of the expected payments over the
remainder of the term of the agreement, in form and substance satisfactory to
Buyer; and

     (j) Such other documents and instruments as Buyer or Buyer's counsel may
reasonably request to better evidence or effectuate the transactions
contemplated hereby.

     Simultaneously with the delivery referred to in this Section, the Seller
Parties shall take or cause to be taken all such actions as may reasonably be
required to put Buyer in actual possession and operating control of the
Purchased Assets.

     Section 2.8. Deliveries by Buyer at Closing. At the Closing, Buyer shall
deliver to Seller:

     (a) The Escrow Agreement fully executed by Buyer;

     (b) Assumption Agreement in the form attached hereto as Exhibit E, fully
executed by Buyer, pursuant to which Buyer assumes, as of the Closing Date, the
Assumed Liabilities;

     (c) The Lease Assignments, fully executed by Buyer;

                                       8
<PAGE>

     (d) In accordance with Section 2.2(a) of this Agreement, Buyer shall
deliver to Seller an amount equal to $7,635,000, constituting the cash portion
of the Purchase Price; and

     (e) In accordance with Section 2.2(b) and (c) of this Agreement, Buyer
shall deliver to the Escrow Agent the Primary Escrow Funds and the Contingency
Escrow Funds;

                                    ARTICLE 3

              REPRESENTATIONS AND WARRANTIES OF THE SELLER PARTIES

     The Seller Parties hereby jointly and severally represent and warrant to
Buyer as follows:

     Section 3.1. Organization and Power. Seller is a corporation duly
organized, validly existing and in good standing under the laws of the State of
California. The Stockholder is a corporation duly organized, validly existing
and in good standing under the laws of the State of California. Seller has full
power and authority to own its properties and conduct the business presently
being conducted by it. Each Seller Party has full legal power, authority and
capacity to execute this Agreement and to consummate the transactions
contemplated by this Agreement.

     Section 3.2. Authorization. The execution, delivery and performance of this
Agreement by Seller Parties have been duly authorized and approved by all
requisite action on the part of their directors and stockholders. This Agreement
constitutes the valid and binding obligation of each Seller Party and is
enforceable against each Seller Party in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium, and other similar laws relating to or limiting creditors' rights
generally and by equitable principles.

     Section 3.3. No Conflict. The execution and delivery of this Agreement do
not, and the consummation of the transactions contemplated hereby and the
compliance with the terms hereof will not (a) violate any law, judgment, order,
decree, statute, ordinance, rule or regulation applicable to any Seller Party,
or any permit, license or approval of any Governmental Entity, (b) conflict with
any provision of Seller's Articles of Incorporation or By-laws or the
Stockholder's Articles of Incorporation or By-laws, (c) result in any violation
of, and will not conflict with, or result in a breach of any terms of, or
constitute a default under, any mortgage, license, instrument or agreement to
which any Seller Party is a party or by which any Seller Party or any of the
Purchased Assets is bound or create any Lien upon any of the Purchased Assets,
or (d) except as set forth on Schedule 3.3, require any notice to, or consent,
approval, order or authorization of, or the registration, declaration or filing
with, any Governmental Entity or other Person, including, without limitation,
under any Contract.

     Section 3.4. Title to Purchased Assets. Seller has good, valid and
marketable title to all of the Purchased Assets, free and clear of all Liens,
except those Liens set forth on Schedule 3.4 ("Permitted Liens"). No other party
has any rights or claims to possession of any of the Purchased Assets. None of
the Purchased Assets are subject to any option, contract, arrangement or

                                       9
<PAGE>

understanding that would restrict Seller's ability to transfer the Purchased
Assets to Buyer as contemplated herein. The Purchased Assets constitute all
assets, rights and properties used by Seller to operate, or necessary to operate
the Business as operated by Seller prior to Closing. Neither Stockholder nor any
other Related Person of Seller owns, leases or licenses assets, properties or
other rights used in the conduct of the Business. All employees engaged in
conducting the Business are employees of Seller.

     Section 3.5. Condition of Purchased Assets. All of the tangible property
included in the Purchased Assets is in good operating condition and repair,
ordinary wear and tear excepted, and in the state of maintenance, repair and
operating condition required for the proper operation and use thereof in the
ordinary and usual course of business by Seller.

     Section 3.6. Financial Statements. Seller has delivered to Buyer financial
information respecting Seller (the "Financial Statements"), as follows: (i) the
Reference Date Balance Sheet, a copy of which is attached hereto as Schedule
3.6; (ii) an unaudited income statement of Seller for the three (3) months ended
as of the Reference Date; (iii) an audited balance sheet for Seller as of
December 31, 2004; and (iv) an audited income statement for Seller for the year
ended on December 31, 2004. The Financial Statements fairly present the
financial position and results of operations of Seller for the periods then
ended and the financial position of Seller at the dates thereof and were
prepared in accordance with GAAP; provided, however, the unaudited Financial
Statements (i) are subject to normal recurring year-end adjustments and (ii) do
not contain all footnote disclosures required by GAAP. Seller's books of account
are and, during the period covered by the Financial Statements were, correct and
complete in all material respects, fairly and accurately reflect or reflected
the income, expenses, assets and liabilities of Seller, including the nature
thereof and the transactions giving rise thereto, and provide or provided a fair
and accurate basis for the preparation of the Financial Statements.

     Section 3.7. Accounts Receivable; Credits. The Accounts Receivable recorded
on the books of Seller are bona fide and good, and are collectible in the
amounts shown on the books of account of Seller. No Account Receivable has been
released by Seller, in whole or in part, so as to reduce its value. There are no
outstanding customer credits or allowances (including allowances for bad debts)
which have been authorized by Seller prior to the Closing Date. The
uncollectibility of any Accounts Receivable resulting in an adjustment to the
Purchase Price based on a Receivable Shortfall in accordance with Section 2.4
shall not be considered a breach of the representation and warranty of
collectibility contained in this Section 3.7.

     Section 3.8. Pre-Bill. Seller has not pre-billed or received prepayment for
products to be sold, services to be rendered, or expenses to be incurred
subsequent to the Closing Date, except in the ordinary course of business and
consistent with Seller's prior practices, with a corresponding current liability
included on the Reference Date Balance Sheet.

     Section 3.9. Litigation. There is no suit, action or proceeding pending
against or affecting any Seller Party or the employees of Seller relating to the
Business, the Purchased Assets, or the transactions contemplated hereby, nor is
there any such suit, action or proceeding threatened against any Seller Party or
any of the employees of Seller. Neither Seller nor the Business is subject to
any order of a Governmental Entity.

                                       10
<PAGE>

     Section 3.10. Compliance with Law. Seller has all necessary licenses,
permits and other approvals of Governmental Entities necessary to operate the
Business as now conducted, each of which is in good standing, and Seller has
conducted the Business and properly filed all necessary reports in accordance
with applicable laws and regulations.

     Section 3.11. Absence of Undisclosed Liabilities. Seller does not have any
liabilities or obligations, either accrued, contingent or otherwise, which are
not reflected in (i) the Reference Date Balance Sheet or (ii) this Agreement or
the Schedules hereto, except as have been incurred in the ordinary course of
business since the Reference Date.

     Section 3.12. Absence of Certain Changes. Since the Reference Date, neither
Seller nor the Business has or will have as of the Closing:

     (a) suffered any adverse change in its financial condition, assets,
liabilities, net worth or business from that shown on the Reference Date Balance
Sheet that, either individually or in the aggregate, has had a Material Adverse
Effect;

     (b) suffered any damage, destruction or loss, whether or not covered by
insurance, adversely affecting its properties or the Business;

     (c) declared or paid or agreed to declare or pay any dividends or
distributions of any cash or other assets of any kind whatsoever;

     (d) mortgaged, pledged, hypothecated or otherwise encumbered any of its
material assets, tangible or intangible;

     (e) sold or transferred any of its assets, property or rights, or canceled
or agreed to cancel any of its debts or claims, except for fair value, in the
ordinary course of business;

     (f) suffered any Material Adverse Effect with respect to its relationships
with customers or employees, or with respect to its contracts with customers;

     (g) incurred any commitment (through negotiations or otherwise) or any
liability to any labor organization, or been involved in any labor dispute;

     (h) increased the amount of its Debt or other obligations or liabilities by
more than $75,000 in the aggregate;

     (i) entered or agreed to enter into any agreement or arrangement granting
any preferential rights to purchase a material part of its assets, property or
rights;

     (j) placed any orders for materials, merchandise or supplies in exceptional
or unusual quantities based upon past operating practices or accepted orders
from customers under conditions relating to price, terms or payment, time or
delivery, or like matters materially different from the conditions regularly and
usually specified on acceptance of orders for similar merchandise from customers
similarly situated;

                                       11
<PAGE>

     (k) made any change in the accounting practices or methods followed by it;

     (l) engaged in any restructuring or changed its constitutive documents; or

     (m) entered into any other transaction, or been involved in any event or
experienced any condition of any character, that, either individually or in the
aggregate, has had a Material Adverse Effect on Seller, any of the Purchased
Assets or the Business.

     Section 3.13. Contracts. Schedule 3.13 lists all of the contracts, leases,
arrangements and understandings including, without limitation, sales orders,
purchase orders and distribution agreements, which relate to the Business as it
is conducted by Seller, other than the Proprietary Agreements (which are listed
on Schedule 3.14) (the "Contracts"), each of which was entered into, arrived at
or conducted on behalf of Seller with appropriate authority and in accordance
with Seller's customary practices. Seller has fulfilled all material obligations
required pursuant to the Contracts to have been performed by Seller prior to the
date hereof. Neither Seller nor, to any Seller Party's Knowledge, the other
parties to such Contracts, arrangements and understandings are in default
thereof and all Contracts are valid and in effect. No customer, supplier or
vendor of Seller has given any notice or made any threat or otherwise revealed
an intent to cancel or otherwise terminate its relationship with Seller, to
materially and adversely change the relationship, to substantially reduce the
volume of business it currently does with Seller or to refuse to renew any
Contract when it expires. Except as set forth on Schedule 3.13, there are not,
and since January 1, 2002, there have not been, any claims (whether or not
resulting in litigation or threatened litigation) by customers of the Business
pursuant to any warranty, milestone, benchmark or performance standard or other
similar commitments of Seller.

     Section 3.14. Intellectual Property.

     (a) Except as set forth on Schedule 3.14(a), Seller owns (or, in the case
of "shrink wrap," "click wrap" or other off the shelf software, possesses the
perpetual, royalty-free license and other rights to use) the Proprietary Rights
(as defined in Section 3.14(e) below) used by Seller in connection with the
Business or related to any Purchased Asset, all of which are in good standing
and uncontested and free and clear of any liens or any deposit arrangements and
none of the same are owned or licensed or held by any Related Person.

     (b) Except as set forth on Schedule 3.14(b), Seller is not infringing upon
or, otherwise acting adversely to, any Proprietary Rights, including trade
secrets, owned by any other Person or Persons. Except as set forth on Schedule
3.14(b), no claim, suit, demand, proceeding or, investigation is pending or has
been asserted and, to the best Knowledge of the Seller Parties, no claim, suit,
demand, proceeding or investigation is threatened with respect to, based on or
alleging infringement of, any such rights of any third party, or challenging the
validity or effectiveness of any license for such rights, and there is no basis
for any such claim, suit, demand, proceeding or investigation. Except as set
forth on Schedule 3.14(b), no such Proprietary Rights infringe or violate any

                                       12
<PAGE>

Proprietary Rights of any Person. Seller has taken all actions reasonably
necessary to maintain and protect those Proprietary Rights which it owns or uses
or have been licensed to Seller. Each employee and officer of Seller has
executed an agreement with Seller regarding confidentiality and proprietary
information and to Seller's and Stockholder's Knowledge, no employee is in
violation thereof.

     (c) Schedule 3.14(c) lists all contracts, agreements, commitments or
licenses relating to the Proprietary Rights to which Seller is a party or by
which it is bound, including, without limitation, all license agreements
(including, without limitation, all forms of "shrink wrap" or "click wrap" and
other license agreements), agreements for software acquisition, development
agreements, author agreements, publishing agreements and OEM, VAR and other
distribution agreements (the "Proprietary Rights Agreements"). The Proprietary
Rights Agreements include all such contracts, agreements, commitments or
licenses to which Seller is a party or by which it is bound related to Seller's
Proprietary Rights. Seller has delivered to Buyer true and complete copies of
all of the Proprietary Rights Agreements prior to the execution of this
Agreement. To each Seller Party's Knowledge, all of the Proprietary Rights
Agreements are in full force and effect and enforceable in accordance with their
terms and there is no violation or default under the Proprietary Rights
Agreements. To each Seller Party's Knowledge, no event has occurred or
circumstance exists which with notice or lapse of time or both would constitute
an event of default, or give rise to a right of termination or cancellation, or
result in the loss or adverse modification of any right or benefit under any of
the Proprietary Rights Agreements. No party to any Proprietary Rights Agreement
has given Seller written notice of or made a claim with respect to, and no
Seller Party is otherwise aware of, any material breach or default under any
thereof. There have been no oral or written modifications to the terms or
provisions of any of the Proprietary Rights Agreements. No amount payable to
Seller or reserved under any Proprietary Rights Agreement has been assigned by
Seller or anticipated and no amount payable to Seller under any Proprietary
Rights Agreement is in arrears or has been collected in advance and to each
Seller Party's Knowledge, there exists no offset or defense to payment of any
amount under a Proprietary Rights Agreement. No Contract and no Proprietary
Agreement contains any non-compete covenant, exclusivity clause or other
restriction that would limit Buyers' ability to engage in the Business.

     (d) Schedule 3.14(d) contains a true and complete list of all trademarks,
trademark registrations, and applications therefor, service marks, service
names, trade names, domain names, patents and patent applications, copyrights
and copyright registrations, and applications therefor, wholly or partially
owned, licensed held or used by Seller or in the conduct of the Business.

     (e) For purposes hereof, "Proprietary Rights" shall mean know-how,
technology or other intellectual property, including, without limitation, all
trade secrets, customer and vendor information, lists and databases, including,
without limitation, customer, mailing and subscription lists, proprietary
processes, methods and apparatus, information not known to the general public,
any literary work, whether or not copyrightable, ideas, concepts, designs,
discoveries, formulae, patents, patent applications, product and service
developments, inventions, improvements, processes, disclosures, trademarks,

                                       13
<PAGE>

trademark applications, trade names, fictional business names, service marks,
copyrights, copyright applications, logos, all rights in internet web sites and
internet domain names, software, source codes and materials, object codes and
materials, algorithms, techniques, architecture, mask work rights, prototypes,
engineering and design models, information with respect to firmware and
hardware, and any information relating to any product or program which has
either been developed, acquired or licensed for or by Seller, including the
maintenance, modification or enhancement thereof and all publishing and
manufacturing information (including with respect to custom chips, boards and
other components) and all license agreements (whether as licensor or licensee)
relating thereto.

     Section 3.15. Real Property. All leases to real property to which Seller is
a party are listed on Schedule 3.15. Seller has delivered to Buyer a true,
correct and complete copy of each Lease and any and all ancillary documents
pertaining thereto (including, but not limited to, all amendments, consents for
alterations and documents recording variations and evidence of commencement
dates and expiration dates). Each Lease is legal, valid, binding, enforceable
against Seller and in full force and effect and represents the entire agreement
between the landlord thereunder and Seller with respect to the property subject
thereto. To each Seller Party's Knowledge, nothing impairs Seller's ability to
enforce its rights under the Leases against the landlords. Seller has not
received any notice of a breach or default under any Lease, and Seller has not
granted to any other Person any rights, adverse or otherwise, under any Lease.
Neither Seller nor (to the Knowledge of any Seller Party) any other party to any
Lease, is in breach or default in any material respect, and, to the Knowledge of
each Seller Party, no event has occurred that, with notice or lapse of time
would constitute such a breach or default or permit termination, modification or
acceleration under any Lease. The rental set forth in each Lease is the actual
rental being paid, and there are no separate agreements or understandings with
respect to the same. Other than the leasehold interests created by the Leases,
Seller holds no interests in real property of any kind. The premises subject to
the Leases are not subject to any zoning ordinance, Lien, or other restriction
or encumbrance which would have a Material Adverse Effect on the Business or the
use and enjoyment of such property in the manner in which such property is
currently used and enjoyed. To the each Seller Party's Knowledge, there is no
planned or threatened taking or condemnation of all or any part of such
premises.

     Section 3.16. Environmental Matters. Seller is not now and has not been in
the past in violation of any applicable statute, law or regulation relating to
the environment or occupational health and safety and no material expenditures
are or will be required in order to comply with any such existing statute, law
or regulation. No Hazardous Materials (as defined below) are used or have been
used, stored, or disposed of by Seller or, to the Knowledge of the Seller
Parties, by any other Person on any real property owned or occupied by Seller in
violation of applicable statute, law or regulation. For the purposes of the
preceding sentence, "Hazardous Materials" shall mean (a) materials which are
listed or otherwise defined as "hazardous" or "toxic" under any applicable
local, state, federal and/or foreign laws and regulations that govern the
existence and/or remedy of contamination on property, the protection of the
environment from contamination, the control of hazardous wastes, or other
activities involving hazardous substances, including building materials or (b)
any petroleum products or nuclear materials.

                                       14
<PAGE>

     Section 3.17. Labor; ERISA.

     (a) Except as set forth on Schedule 3.17, Seller is not, and, as of the
Closing Date will not be, a party to any employment, severance or consulting
agreement or to any collective bargaining agreement, nor are its employees
members of a collective bargaining unit or union, nor has there been any
unionization activity. Seller has complied with all laws relating to the
employment of labor, including provisions relating to wages, hours, collective
bargaining, and the payment of unemployment, workers' compensation, Social
Security, payroll, withholding and similar Taxes, and is not liable for any
arrears of wages, compensation fund contributions or any Taxes or penalties for
failure to comply with such laws. Schedule 3.17 attached hereto contains a list
of all persons employed by Seller at the Closing Date with their respective
current salaries, any commission compensation received during the last twelve
(12) months and a description of all benefits provided by Seller to its
employees. No employee of Seller has given any notice or made any threat, or
otherwise revealed an intent, to cancel or otherwise terminate his or her
relationship with Seller or indicated an intention not to accept employment with
Buyer, if employment is offered. At the Closing Date, all employees are
terminable at will by Seller and will be free of all employment obligations to
Seller and all non-competition and confidentiality covenants in favor of Seller
and will be free to become employees of Buyer, if Buyer so desires.

     (b) Schedule 3.17 lists of all "employee benefit plans" as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA") and any other plans pursuant to which Seller has any continuing
obligation to provide benefits (including without limitation, equity, deferred
compensation, severance, retirement, and medical or life insurance) to any
present or former employee, or any beneficiary thereof. Seller has furnished
Buyer with a complete and accurate copy of each such plan. No such plan requires
Buyer to assume any employment, compensation, fringe benefit, pension, profit
sharing or deferred compensation agreement or plan in respect of any employee,
and Seller does not and has not contributed to or maintained a "multiemployer
plan" (as defined in ERISA Section 3(37)).

     Section 3.18. Taxes. Except as set forth on Schedule 3.18:

     (a) Seller Parties have prepared and filed or caused to be prepared and
filed, all federal, state, local and foreign returns, estimates, information
statements and reports, including without limitation, all informational returns
("Returns") relating to any and all Taxes concerning or attributable to Seller,
the Purchased Assets or the Business ("Business-Related Taxes") which either
Seller Party is required to file on or before the Closing and such Returns
("Business-Related Returns") were true and accurate and were completed in
accordance with applicable law when filed.

     (b) Seller Parties have (i) paid all Business-Related Taxes they are
required to pay and (ii) withheld with respect to Seller's employees all federal
and state income taxes, FICA, FUTA and other Taxes required to be withheld, and
Seller Parties have not been delinquent in the payment of any Business-Related
Tax nor is there any Business-Related Tax deficiency outstanding, proposed or
assessed against Seller Parties.

                                       15
<PAGE>

     (c) No audit or other examination of any Business-Related Return is
presently in progress, nor has either Seller Party been notified of any request
for such an audit or other examination.

     (d) Seller does not have any liabilities for unpaid Taxes which have not
been accrued or reserved against on the Reference Date Balance Sheet, whether
asserted or unasserted, contingent or otherwise, and no Seller Party has any
Knowledge of any basis for the assertion of any such liability attributable to
Seller, the Purchased Assets or the Business.

     (e) The transactions contemplated herein are not subject to the tax
withholding provisions of Code Section 3406 or Subchapter A of Chapter 3 of the
Code or any other provision of law.

     Section 3.19. Capitalization; Relationships with Related Persons.

     (a) Schedule 3.19 sets forth a true and complete list of all holders of
capital stock of Seller, and of all holders of rights, options or warrants to
acquire capital stock of Seller, and of all holders of securities convertible
into or exchangeable or exercisable for capital stock of Seller.

     (b) No Related Person (including, without limitation, the Stockholder) has
any interest in any property (whether real, personal, or mixed and whether
tangible or intangible) used in or pertaining to the Business. Neither Seller
nor any Related Person of Seller (including, without limitation, the
Stockholder), is, or has owned (of record or as a beneficial owner) an equity
interest or any other financial or profit interest in, a Person that has (a) had
business dealings or a material financial interest in any transaction with the
Business, or (b) engaged in competition with Seller with respect to any line of
the products or services of Seller in any market presently served by Seller. No
Related Person of Seller (including, without limitation, the Stockholder) is a
party to any Proprietary Agreement or Contract.

     Section 3.20. Brokers. Except as set forth on Schedule 3.20, there are no
claims for brokerage commissions, finder's fees or similar compensation arising
out of or due to any act of or on behalf of any Seller Party in connection with
the transactions contemplated by this Agreement.

     Section 3.21. Insurance. Seller is adequately insured in respect of the
Business and the Purchased Assets and will continue to be so insured with
respect to all events occurring prior to the Closing Date, in amounts and
against risks that are commercially reasonable. Schedule 3.21 lists all policies
of insurance and bonds covering the assets and operations of Seller as of the
date hereof. All of such insurance policies and bonds covering Seller and the
Business are in full force and effect and no written notice of termination of
any such insurance policies or bonds has been received by Seller. Seller has not
received any written communication or other written notice regarding any actual
or possible refusal of any coverage or rejection of any claim related to the
Business.

     Section 3.22. Powers of Attorney. No Person has any power of attorney to
act on behalf of Seller in connection with any of its properties or business
affairs other than such powers to so act as normally pertain to the officers of
Seller.

                                       16
<PAGE>

     Section 3.23. Debt. Set forth in Schedule 3.23 hereto is a complete and
correct list of all Debt of Seller other than trade debt incurred in the
ordinary course of business, none of which is overdue unless such trade debt is
being contested diligently and in good faith by appropriate proceedings and
appropriate cash reserves have been established therefor. The maximum principal
or face amounts of the obligations set forth, which are outstanding and which
can be outstanding, are correctly stated, and all Liens of any nature given or
agreed to be given as security therefor are correctly described or indicated in
such Schedule.

     Section 3.24. Solvency.

     (a) Seller is not now insolvent and will not be rendered insolvent by the
transactions contemplated by this Agreement. As used in this section,
"insolvent" means that the sum of the debts and other probable liabilities of
Seller exceeds the present fair saleable value of Seller's assets.

     (b) Immediately after giving effect to the consummation of the transactions
contemplated by this Agreement: (i) Seller will be able to pay its remaining
liabilities as they become due in the usual course of its business; (ii) Seller
will not have unreasonably small capital, given its circumstances; (iii) Seller
will have assets (calculated at fair market value) that exceed its remaining
liabilities; and (iv) taking into account all pending and threatened litigation,
final judgments against Seller in actions for money damages are not reasonably
anticipated to be rendered at a time when, or in amounts such that, Seller will
be unable to satisfy any such judgments promptly in accordance with their terms
(taking into account the maximum probable amount of such judgments in any such
actions and the earliest reasonable time at which such judgments might be
rendered) as well as all other obligations of Seller. The cash available to
Seller after Closing, after taking into account all other anticipated uses of
the cash, will be sufficient to pay all such liabilities, debts and judgments
promptly in accordance with their terms.

     Section 3.25. Statements not Misleading. The Seller Parties have fully
complied with all of Buyer's (and Buyer's counsel's) due diligence requests and
have provided Buyer with all information and documentation requested by Buyer
and Buyer's counsel. The Seller Parties have disclosed all facts, events or
transactions which are material to the Purchased Assets and the Business. No
representation or warranty of any Seller Party or document furnished by any
Seller Party hereunder is false or inaccurate in any material respect or
contains or will contain any untrue statement of a material fact or omits or
will omit to state any fact necessary to make the statements contained herein or
therein not misleading.

                                    ARTICLE 4

                     REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer hereby represents and warrants to Seller, as of the Closing Date, as
follows:

     Section 4.1. Organization and Power of Buyer. Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware. Buyer has full corporate power and authority to own its properties and
conduct the business presently being conducted by it, to execute this Agreement,
and to consummate the transactions contemplated by this Agreement.

                                       17
<PAGE>

     Section 4.2. Authorization. The execution, delivery and performance of this
Agreement by Buyer have been duly authorized and approved by all requisite
action on the part of Buyer, and this Agreement constitutes the valid and
binding obligation of Buyer and is enforceable against Buyer in accordance with
its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium, and other similar laws relating to or
limiting creditors' rights generally and by equitable principles.

     Section 4.3. No Conflict. The execution and delivery of this Agreement does
not, and the consummation of the transactions contemplated hereby and the
compliance with the terms hereof will not, (a) violate any law, judgment, order,
decree, statute, ordinance, rule or regulation applicable to Buyer, or any
permit, license or approval of any Governmental Entity, (b) conflict with any
provision of Buyer's certificate of incorporation or by-laws, (c) result in any
violation of, and will not conflict with, or result in a breach of any terms of,
or constitute a default under, any mortgage, instrument or agreement to which
Buyer is a party or by which Buyer is bound, or (d) require any notice to, or
consent, approval, order or authorization of, or the registration, declaration
or filing with, any Governmental Entity or other third party, which, in the case
of clause (c) or (d), would have a material adverse effect on Buyer's ability to
consummate the transactions contemplated by this Agreement.

     Section 4.4. Brokers. There are no claims for brokerage commissions,
finder's fees or similar compensation arising out of or due to any act of or on
behalf of Buyer in connection with the transactions contemplated by this
Agreement.

                                    ARTICLE 5

                                    COVENANTS

     Section 5.1. Further Assurances; Cooperation.

     (a) The Seller Parties will provide such other information, and execute and
deliver all such other and additional instruments, notices, releases,
undertakings, consents and other documents, and will do all such other acts and
things, as may be reasonably requested by Buyer as necessary to assure to Buyer
all the rights and interests granted or intended to be granted under this
Agreement. The Seller Parties shall take or shall cause to be taken such other
reasonable actions as Buyer may require more effectively to transfer, convey and
assign to, and vest in, Buyer, and put Buyer in possession of, the Purchased
Assets as contemplated by this Agreement. In the event that any of the Purchased
Assets cannot be fully and effectively transferred to Buyer without the consent
of a third party or parties, and if at the Closing Buyer shall have waived its
right to receive at the Closing such consent, the Seller Parties shall
thereafter be obligated to use their best efforts to assure to Buyer the
benefits of such contract, commitment, other arrangement or other Purchased
Asset.

                                       18
<PAGE>

     (b) The Seller Parties have prior to the Closing and will continue after
Closing to (i) permit Buyer's appropriate officers, employees and accountants a
to meet with the officers, employees and accountants of Seller Parties
responsible for Seller's financial statements, the internal controls of Seller
and the disclosure controls and procedures of Seller to discuss such matters as
Buyer may deem necessary or appropriate for Buyer to satisfy its obligations
under Sections 302 and 906 of the Sarbanes-Oxley Act of 2003 and any rules and
regulations relating thereto, and (ii) afford to Buyer's accountants access to
such books and records as are necessary or appropriate for the purposes of
preparing audited statements of the Business for periods prior to Closing, if
necessary.

     Section 5.2. Covenants not to Compete.

     (a) Non-Competition. For the Non-Compete Period (as that term is defined
below), neither Seller nor Stockholder shall directly or indirectly, anywhere in
the United States of America (the "Territory") engage in competition with Buyer
or an affiliate thereof, in any manner or capacity (e.g., as an advisor,
principal, agent, partner, member, officer, director, shareholder, employee,
member of any association, or otherwise), in the Business (together, the
"Competitive Activities"), or in the design, development, manufacture,
distribution, marketing, licensing or selling of products, services or systems
which are competitive with the products, services or systems being sold,
marketed or produced by, or which are under development by, Buyer or an
affiliate thereof at the time of the Closing or during the Non-Compete Period.
No Seller Party shall own, participate in the ownership of, lend money,
guarantee loans, make gifts of money or other property, or otherwise lend
financial or other assistance in any form to any Person, firm, association,
partnership, venture, corporation or other business entity which is engaged in,
or will within the Non-Compete Period engage in, any of the activities
prohibited by this Section 5.2. Nothing set forth in this Section 5.2(a) shall
be deemed to prohibit the Stockholder or its Affiliates (as defined below) from
engaging in the commercial banking business, including accepting and maintaining
deposits, lending money and providing other financial accommodations and
providing ancillary services typical of a commercial bank, but excluding item
processing services.

     (b) Limitation on Covenant. Ownership by a Seller Party, as a passive
investment, of less than one percent (1%) of the outstanding shares of capital
stock of any corporation listed on a national securities exchange or publicly
traded in the over-the-counter market shall not constitute a breach of this
Section 5.2.

     (c) Customers. In addition to the more general restrictions set forth
above, for a period of three (3) years from the Closing Date, neither Seller nor
any Stockholder, nor any of their affiliates shall, directly or indirectly,
either on such party's own account or in conjunction with or on behalf of any
other Person, firm or company, solicit any Person, firm or company who was a
customer or client of Seller, Buyer or an affiliate of Buyer as of the Closing,
for business which is competitive with the business, activities, products,
services or systems provided by Seller, Buyer or any affiliate of Buyer as of
the Closing Date.

                                       19
<PAGE>

     (d) Employees. For a period of three (3) years from the Closing Date, no
Seller Party shall, either on such party's own account or in conjunction with or
on behalf of any other Person, firm or company, employ, solicit, entice away or
attempt to employ, solicit or entice away from Buyer or any affiliate of Buyer
any person who at the date hereof is, or at the date of or within the year
preceding such employment, solicitation, enticement or attempt shall have been,
an officer, manager, consultant or employee of Buyer or any affiliate of Buyer.
Notwithstanding anything to the contrary herein, this Section 5.2(d) shall not
be deemed to prohibit the employment by the Stockholder or its Affiliates of any
individual who initiates contact for purposes of seeking employment with such
party, including in response to a general advertisement that is not directed at
employees (or former employees) of Buyer or its affiliates.

     (e) Confidentiality. No Seller Party will at any time hereafter make use of
or disclose or divulge to any Person (other than to officers or employees of
Buyer whose province it is to know the same) any information (other than any
information properly available to the public or disclosed or divulged pursuant
to an order of a court of competent jurisdiction) relating to Buyer or the
Business, the identity of the customers and suppliers of Buyer or the Business,
or the products, finances, contractual arrangements, business or methods of
business of Buyer or the Business and shall use its best endeavors to prevent
the publication or disclosure of any such information. Each Seller Party
acknowledges that many of the Purchased Assets are trade secrets which Buyer has
purchased and which Seller Parties are forever restricted from using or
disclosing. If, in connection with the business or affairs of Seller, any Seller
Party shall have obtained trade secrets or other confidential information
belonging to any third party under an agreement which contained restrictions on
disclosure by any Seller Party, then the Seller Parties will not at any time
infringe such restrictions.

     (f) Injunctive Relief. Each Seller Party acknowledges that any violation of
any provision of this Section 5.2 will cause irreparable harm to Buyer, that
damages for such harm will be incapable of precise measurement and that, as a
result, Buyer will not have an adequate remedy at law to redress the harm caused
by such violations. Therefore, in the event of a violation of Section 5.2 by any
Seller Party, each Seller Party agrees that, in addition to its other remedies,
Buyer shall be entitled, without the necessity of either proof of actual damage
or the posting of a bond, to injunctive relief, including but not limited to an
immediate temporary injunction, temporary restraining order and/or preliminary
or permanent injunction to restrain or enjoin any such violation. Each Seller
Party acknowledges that any violation of this Section 5.2 will cause Buyer
irreparable harm and that such irreparable harm will affect Buyer at its
principal place of business in Glastonbury, Connecticut, and, therefore, each
Seller Party does hereby submit to jurisdiction before any state or federal
court sitting in the State of Connecticut, at Buyer's election, and each Seller
Party hereby waives any right to raise the question of jurisdiction and venue in
any action that Buyer may bring in any such court against any Seller Party.

     (g) Severability. The parties understand and agree that the covenant set
forth in this Section 5.2 shall be construed as a series of separate covenants
not to compete, one covenant for each state within the Territory, one for each
separate line of the Competitive Activities, and one for each month of the
Non-Compete Period. Should any clause, portion or paragraph of this Section 5.2

                                       20
<PAGE>

be unenforceable or invalid for any reason, such unenforceability or invalidity
shall not affect the enforceability or validity of the remainder of this Section
5.2. Should any particular covenant or restriction, including but not limited to
the covenants and restrictions of Section 5.2(a), 5.2(c), 5.2(d) and 5.2(e), be
held to be unreasonable or unenforceable for any reason, including without
limitation the time period, geographical area and scope of activity covered by
such covenant, then a court may modify any such covenant or restriction in order
to give it effect and allow it to be enforced to the greatest extent that would
be reasonable and enforceable.

     (h) Acknowledgment. Each Seller Party acknowledges that this covenant not
to compete is a mandatory condition precedent to the Closing of the transactions
contemplated by this Agreement, and that, in the absence of the preceding
covenant not to compete, Buyer would not have consented to the Closing.

     (i) Non-Compete Period.

         (i)  The Non-Compete Period shall be three (3) years after the Closing
     Date or, if ordered by a court of competent jurisdiction, one of the
     periods of time listed in clause (ii).

         (ii) If ordered by a court of competent jurisdiction, the Non-Compete
     Period shall be one of the following periods of time:

              (A)  two (2) years and six (6) months from the Closing Date;

              (B)  two (2) years from the Closing Date;

              (C)  one (1) year and six (6) months from the Closing Date;

              (D)  one (1) year from the Closing Date; or

              (E)  six (6) months from the Closing Date.

     (j) Affiliates of Stockholder. Stockholder shall cause all entities
directly or indirectly controlled by, controlling or under common control with
it (collectively, its "Affiliates") to comply with all obligations and
restrictions applicable to Stockholder under this Section 5.2, as though each
such Affiliate were a party to this Section 5.2 as "Stockholder" and a "Seller
Party" hereunder.

     Section 5.3. Use of Names. From and after the Closing Date, Seller and the
Stockholder shall cease to use the names Financial Data Solutions, FDSI or any
similar name and, as indicated in Section 2.7(c), Seller shall change its
corporate name at Closing.

     Section 5.4. Passage of Title and Risk of Loss. Legal title, equitable
title, and risk of loss with respect to the property and rights to be
transferred hereunder shall not pass to Buyer until the property or right is
transferred at the Closing and possession thereof is delivered to Buyer.

                                       21
<PAGE>

     Section 5.5. Transfer of Goodwill and Business. From and after the Closing
Date, the Seller Parties shall, when requested to do so by Buyer, provide
reasonable good faith assistance to effectuate a smooth transfer of the Business
and goodwill to Buyer.

     Section 5.6. Expenses; Transfer Taxes. All costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be
paid by the party incurring such expense. Any sales, use, franchise, conveyance
or other transfer Tax which becomes payable by any of the parties to this
Agreement as a result of the conveyance and transfer from Seller to Buyer of the
Purchased Assets or otherwise as a result of the transactions contemplated
hereby and any other transfer or documentary Taxes or any filing or recording
fees applicable to such conveyance and transfer shall be paid by the Seller
Parties, and the Seller Parties shall promptly provide Buyer with proof of
payment of such Taxes.

     Section 5.7. Taxes.

     (a) Continuing Obligation. The Seller Parties shall be responsible for and
pay or cause to be paid when due all of Taxes attributable to, levied or imposed
upon or incurred in connection with Seller, the Purchased Assets or the Business
relating or pertaining to the period (or that portion of any period) ending on
or prior to the Closing Date. The Seller Parties shall continue to timely file
within the time period for filing, or any extension granted with respect
thereto, all of Returns required to be filed in connection with Seller, the
Business and/or the Purchased Assets and such Returns shall be true and correct
and completed in accordance with applicable laws.

     (b) Status at Closing. At Closing, Seller Parties shall have (i) paid or
cause to be paid all Taxes attributable to, levied or imposed upon or incurred
in connection with Seller, the Purchased Assets or the Business and required to
be paid as of such time, and (ii) withheld with respect to its employees of
Seller and the Business all federal and state income taxes, FICA, FUTA and other
Taxes required to be withheld as of such time, if any.

     (c) Tax Elections. No new elections with respect to Taxes, or any changes
in current elections with respect to Taxes, affecting the Business or the
Purchased Assets shall be made by Seller Parties after the date of this
Agreement without the prior written consent of Buyer.

     (d) Cooperation and Records Retention. The Seller Parties and Buyer shall
each (i) provide the others with such assistance as may reasonably be requested
by any of them in connection with the preparation of any Return, audit or other
examination by any taxing authority or judicial or administrative proceeding
relating to liability for Taxes, (ii) retain and provide the others with any
records or other information which may be relevant to such Return, audit or
examination, proceeding or determination, and (iii) provide the others with any
final determination of any such audit or examination, proceeding or
determination that affects any amount required to be shown on any Return of the
others for any period. Without limiting the generality of the foregoing, Buyer
and the Seller Parties shall retain, until the applicable statutes of
limitations (including any extensions) have expired, copies of all Returns,
supporting work schedules and other records or information which may be relevant
to such Returns for all Tax periods or portions thereof ending before or
including the Closing Date and shall not destroy or otherwise dispose of any
such records without first providing the other party with a reasonable
opportunity to review and copy the same.

                                       22
<PAGE>

     Section 5.8. Employment Matters.

     (a) Seller will terminate, effective upon Closing, the employment of all
employees of the Business whom Buyer has indicated a desire to employ (the
"Designated Employees"), and Seller shall pay all compensation or other money
due to the Designated Employees with respect to their employment and termination
by Seller through and including the Closing Date. The Seller Parties shall
cooperate with Buyer in Buyer's efforts to hire the Designated Employees as
Buyer deems desirable for the continuation of the Business, and Seller shall,
and hereby does, release any Designated Employees who accept employment with
Buyer from their obligations under any non-competition or confidentiality
agreement in favor of Seller, to the extent necessary to allow them to become
employed by Buyer.

     (b) Seller shall be liable for any and all amounts due any current or
former employee of Seller that is not a Designated Employee (each a
"Non-Designated Employee" and together "Non-Designated Employees") including
without limitation as a result of or in connection with the termination by
Seller of such Non-Designated Employees. In addition, Seller shall be
responsible for complying with the requirements of the Consolidated Omnibus
Budget Reconciliation Act of 1985 ("COBRA") and any other applicable law
regarding health plan continuation coverage with respect to Non-Designated
Employees, including (i) the provision of any required COBRA notices, and (ii)
the provision of health plan continuation coverage in accordance with COBRA.
Seller shall be responsible for all costs, liabilities and expenses associated
with such obligations under COBRA or other applicable law, including
reimbursement to Buyer for any costs it incurs as a result of Seller's failure
to fulfill such obligations.

     (c) Seller may be obligated to pay severance to the two (2) employees
listed on Schedule 5.8 (one of whom is a Designated Employee and one of whom is
a Non-Designated Employee) in the amounts set forth on Schedule 5.8. Buyer
agrees to reimburse Seller for a portion of the severance payment made by Seller
to each of such employees as a result of such employee's termination of
employment at Closing in an amount equal to the lesser of (i) one-half of the
severance payment, and (ii) the amount set forth on Schedule 5.8 for such
employee. Seller shall provide to Buyer within 45 days of the Closing a report
setting forth the severance payments actually made to each such employee, along
with a calculation of Buyer's resulting obligation to Seller. Subject to the
resolution of any disputes over such report and calculation, Buyer shall pay to
Seller the amount owing on or before the date that is 60 days after Closing.

                                       23
<PAGE>

     Section 5.9. Contingent Payment.

     The Contingency Escrow Funds shall be payable to Buyer or Seller, as
provided and subject to the terms and conditions set forth in Schedule 5.9.

     Section 5.10. Motor Vehicles.

     The Purchased Assets include two motor vehicles, which motor vehicles are
described on Schedule 3.4. Such motor vehicles are subject to auto loans in the
amounts set forth on Schedule 3.4, and are subject to liens securing such loans.
Seller agrees to repay in full such auto loans, have such liens released and
convey to Buyer title to such motor vehicles free and clear of all liens and
security interests, all within 30 days of Closing, and Buyer agrees to reimburse
Seller for the amount of the loan pay-offs simultaneously with conveyance of
title to Buyer.

                                    ARTICLE 6

                                 INDEMNIFICATION

     Section 6.1. Indemnified Losses. For the purpose of this Article 6 and when
used elsewhere in this Agreement, "Losses" shall mean and include any and all
liability, loss, damage, claim, expense, cost, fine, fee, penalty, obligation or
injury including those resulting from any and all actions, suits, proceedings,
demands, assessments or judgments, together with reasonable costs and expenses
including the attorneys' fees and other legal costs and expenses relating
thereto.

     Section 6.2. Indemnification by Seller Parties. The Seller Parties hereby
jointly and severally agree to indemnify and hold harmless Buyer against and in
respect of any Losses which arise out of or result from:

     (a) any breach by the Seller Parties of any representation or warranty of
the Seller Parties made herein or in any certificate, document, writing or
instrument delivered by any Seller Party pursuant to this Agreement;

     (b) any breach by any Seller Party of any covenant or obligation of such
Seller Party in this Agreement or in any agreement, certificate, document,
writing or instrument delivered by the Seller Parties pursuant to or in
connection with this Agreement;

     (c) any liability or obligation of Seller or the Business as operated
through the Closing Date or otherwise arising out of the ownership or operation
of Seller, the Business or the Purchased Assets prior to the Closing, other than
the Assumed Liabilities, whether or not such liability or obligation was
disclosed to Buyer, including, without limitation, sales and use Taxes for all
periods ending on or prior to the Closing Date;

     (d) any noncompliance with bulk sales or fraudulent conveyance laws with
respect to the transactions contemplated by this Agreement; and

                                       24
<PAGE>

     (e) as provided in Section 6.4 hereof.

     Section 6.3. Indemnification By Buyer. Subject to the limitations set forth
in this Article 6, Buyer agrees to indemnify and hold harmless Seller against
and in respect of any Losses which arise out of or result from:

     (a) any breach by Buyer of any representation or warranty of Buyer made
herein or in any certificate, document, writing or instrument delivered by Buyer
pursuant to this Agreement;

     (b) any breach by Buyer of any covenant or obligation of Buyer in this
Agreement or in any other agreement, certificate, document, writing or
instrument delivered by Buyer pursuant to or in connection with this Agreement;

     (c) the Assumed Liabilities; and

     (d) as provided in Section 6.5 hereof.

     Section 6.4. Third Party Claims Against Buyer. The Seller Parties further
agree to jointly and severally indemnify and hold Buyer harmless from and
against any and all Losses resulting from causes of action or claims of any kind
asserted by unrelated third parties arising from any liability of any nature
incurred in connection with any action, suit, proceeding, claim or demand by any
person or entity where any of the alleged or actual breach, default, act,
omission or other grounds therefore is attributable to events occurring prior to
the Closing and related to Seller, the Business or the Purchased Assets,
including, without limitation, any and all Losses attributable to goods,
products and services provided by Seller prior to the Closing Date, whether or
not such litigation, proceeding or claim is pending, threatened, or asserted
before, on or after the Closing Date.

     Section 6.5. Third Party Claims Against Seller. Subject to the limitations
set forth in this Article 6, Buyer further agrees to indemnify and hold Seller
harmless from and against any and all Losses resulting from causes of action or
claims of any kind asserted by unrelated third parties arising from any
liability of any nature incurred in connection with any action, suit,
proceeding, claim or demand by any person or entity where any of the alleged or
actual breach, default, act, omission or other grounds therefore is attributable
to events occurring after the Closing and related to Buyer or the Purchased
Assets, whether or not such litigation, proceeding or claim is pending,
threatened, or asserted before, on or after the Closing Date.

     Section 6.6. Procedures; No Waiver; Exclusivity.

     (a) All claims for indemnification by a party pursuant to this Article 6 in
connection with an action, suit or proceeding shall be made in accordance with
the provisions of this Section 6.6. The party entitled to indemnification under
this Article 6 (the "Indemnified Person") shall give prompt written notification
to the Person obligated to provide such indemnification (the "Indemnifying
Person") of the commencement of any action, suit or proceeding relating to a
third party claim for which indemnification pursuant to this Article 6 may be

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sought; provided, however, that no delay on the part of the Indemnified Person
in notifying the Indemnifying Person shall relieve the Indemnifying Person from
any liability or obligation under this Article 6 except to the extent of any
damage or liability caused solely by or arising out of such delay. Within 20
days after delivery of such notification, the Indemnifying Person may, upon
written notice thereof to the Indemnified Person, assume control of the defense
of such action, suit or proceeding with counsel reasonably satisfactory to the
Indemnified Person, provided (i) the Indemnifying Person acknowledges in writing
to the Indemnified Person that the Indemnifying Person shall indemnify the
Indemnified Person with respect to all elements of such action, suit or
proceeding and any damages, fines, costs or other liabilities that may be
assessed against the Indemnified Person in connection with such action, suit or
proceeding, and (ii) the third party seeks monetary damages only. If the
Indemnifying Person does not so assume control of such defense, the Indemnified
Person shall control such defense. The party not controlling such defense may
participate therein at its own expense; provided, that if the Indemnifying
Person assumes control of such defense and the Indemnified Person is advised by
counsel in writing that the Indemnifying Person and the Indemnified Person may
have conflicting interests or different defenses available with respect to such
action, suit or proceeding, the reasonable fees and expenses of counsel to the
Indemnified Person shall be considered "Losses" for purposes of this Agreement.
The party controlling such defense shall keep the other party advised of the
status of such action, suit or proceeding and the defense thereof and shall
consider in good faith recommendations made by the other party with respect
thereto. An Indemnified Person shall not agree to any settlement of such action,
suit or proceeding without the prior written consent of the Indemnifying Person,
which shall not be unreasonably withheld or delayed. The Indemnifying Person
shall not agree to any settlement or the entry of a judgment in any action, suit
or proceeding without the prior written consent of the Indemnified Person, which
shall not be unreasonably withheld (it being understood that it is reasonable to
withhold such consent if, among other things, the settlement or the entry of a
judgment (A) lacks a complete release of the Indemnified Person for all
liability with respect thereto or (B) imposes any liability or obligation on the
Indemnified Person).

     (b) In the event that Buyer receives an invoice, demand for payment or
other claim by a third party (which has not risen to the level of an action,
suit or proceeding requiring notice and compliance with the more formal
procedures set forth in Section 6.6(a)) and if in the circumstances Buyer could
reasonably determine that such claim is a liability for which Buyer may seek
indemnity under this Article 6, then Buyer shall give Seller written notice of
such claim, together with a copy of the invoice or other demand (or if none is
available, then a brief description of the claim). Seller shall have 15 days
from the date of such notice to either pay the claim in the amount asserted, or
contest the claim and pay to the third party an agreed upon, reduced amount in
satisfaction of the claim. Within such 15 day period, Seller shall advise Buyer
(in writing) as to what action Seller has taken with respect to the claim.
Absent Seller's discharge of the claim within such 15 days period and notice
thereof to Buyer, Buyer shall thereafter be free to pay the claim (and if Buyer
believes it is entitled to indemnification for such amount, may seek
indemnification under this Article 6, subject to Seller's right described
elsewhere in this Article 6 and the Escrow Agreement to object to Buyer's right
to indemnification).

                                       26
<PAGE>

     Section 6.7. Set-Off.

     (a) Buyer shall be entitled to a set-off against the Primary Escrow Funds
for any amounts payable to Buyer pursuant to this Article 6 or under Sections
2.3 or Section 2.4 (a "Claimed Set-Off"). Nothing in this Section 6.7 shall be
construed or interpreted as a limitation on Buyer's right to indemnification in
accordance with this Article 6.

     (b) Buyer shall give Seller written notice of any Claimed Set-Off. Except
in the case of a Claimed Set-Off made pursuant to Section 2.3 or 2.4 of this
Agreement (which claims Buyer may make only once a Reduction in Net Current
Assets or Receivable Shortfall has been finally determined in accordance with
such Sections), Seller shall have fifteen (15) days from the date of Buyer's
written notice to object to the Claimed Set-Off. Seller shall make any objection
to a Claimed Set-Off in writing and shall forward the same to both Buyer and the
Escrow Agent in the case of a claim against the Primary Escrow Funds (an "Escrow
Claim"). If Seller does not timely object to an Escrow Claim, or in the case of
any Claimed Set-Off made pursuant to Section 2.3 or 2.4 of this Agreement, Buyer
may give unilateral written notice to the Escrow Agent to release a portion of
the Primary Escrow Funds equivalent to the Claimed Set-Off (with a copy of such
unilateral notice to the Seller Parties), which written notice the Seller
Parties hereby acknowledge to be sufficient to authorize the Escrow Agent to
release the Primary Escrow Funds as directed by Buyer.

     (c) If the Seller Parties do timely object to a Claimed Set-Off, except in
the case of a Claimed Set-Off made pursuant to Section 2.3 or 2.4 of this
Agreement, the Escrow Agent shall not release any portion of the Primary Escrow
Funds to Buyer until the Escrow Agent receives instructions which are signed by
Buyer and Seller, or until the dispute has been definitively resolved by court
proceedings. If the Seller Parties do timely object and Seller and Buyer are
unable to agree to the amount of the Claimed Set-Off within thirty (30) days,
either Seller or Buyer may institute court proceedings for a determination of
the amount of the Claimed Set-Off. If the Seller Parties object to a Claimed
Set-Off, or during the pendency of Seller's fifteen (15) day notice period,
Buyer may require the Escrow Agent to retain a portion of the Primary Escrow
Funds to cover an Escrow Claim by giving the Escrow Agent unilateral written
notice to retain said portion of the Primary Escrow Funds (with a copy of such
unilateral notice to the Seller Parties), which written notice the Seller
Parties hereby acknowledge to be sufficient to authorize the Escrow Agent to
retain said portion of the Primary Escrow Funds as directed by Buyer, and in
which event the Escrow Agent shall not release that portion of the Primary
Escrow Funds to Seller in accordance with the Escrow Agreement until the Escrow
Agent receives instructions which are signed by both Buyer and Seller, or until
the dispute has been definitively resolved by court proceedings.

     Section 6.8. Survival. All representations and warranties made by the
Seller Parties and Buyer herein (except for those set forth in Sections 3.1,
3.2, 3.4, 3.14, 4.1 and 4.2, which shall survive indefinitely and those set
forth in Sections 3.16, 3.17 and 3.18, which shall survive until expiration of
the applicable statute of limitation), or in any certificate, document, writing
or instrument delivered pursuant to this Agreement, shall survive the Closing
for a period of three (3) years following the Closing Date. No claim may be
asserted under Section 6.2(a) or 6.3(a) with respect to breach of a
representation or warranty after the three (3) year anniversary of the Closing

                                       27
<PAGE>

Date (except for claims for breach of a representation or warranty set forth in
Section 3.1, 3.2, 3.4, 3.14, 3.16, 3.17, 3.18, 4.1 or 4.2), provided that claims
as to which written notice is given prior to such date may be prosecuted
thereafter. The indemnity obligations set forth in Sections 6.2(b), (c) and (d),
Sections 6.3(b) and (c), Section 6.4 and Section 6.5 shall survive indefinitely.

     Section 6.9. Limitations on Indemnification by the Seller Parties.
Notwithstanding any other provision of this Article 6, the Seller Parties shall
not be liable to Buyer under Section 6.2(a) for breach of representations and
warranties (a) until the total of all Losses with respect to such matters
exceeds $25,000, after which, subject to this Section 6.9, the Seller Parties
shall be liable back to dollar one, such that such amount is a threshold and not
a deductible (the "Threshold"), and (b) for Losses in excess of the Purchase
Price (the "Cap"), provided that the Seller Parties' liability under Section
6.2(a) for Losses that arise from the breach of the representations and
warranties of Seller set forth in Sections 3.1, 3.2, 3.4, 3.14, 3.16, 3.17 and
3.18 shall not be subject to the Cap. Nothing set forth in this Section 6.7
limits the Seller Parties' liability and obligations under Sections 2.3, 2.4,
6.2(b), 6.2(c), 6.2(d) or 6.4, or under any other Section or provision of this
Agreement, except for Section 6.2(a), notwithstanding the fact that the facts or
circumstances giving rise to a claim under any such Section also constitute a
breach of a representation or warranty and/or give rise to a claim under Section
6.2(a).

     Section 6.10. Exclusive Remedy. The provisions of this Article 6 set forth
the sole and exclusive remedy of the parties hereto with respect to any matter
or event described in this Article 6, provided however that the provisions of
this Article 6 shall not limit the rights or remedies of Buyer with respect to
the breach of Sections 5.2 or 5.3.

                                    ARTICLE 7

                                  MISCELLANEOUS

     Section 7.1. Notices. All notices, requests, demands and other
communications hereunder shall be in writing and delivered personally or sent by
overnight delivery, postage prepaid to the addresses set forth below:

     To Buyer:

           Float Acquisition Corp.
           300 Winding Brook Drive
           Glastonbury, CT 06033
           Attention:  Chief Financial Officer

     With a copy to:

           Thomas N. Tartaro, Esq.
           Vice President, General Counsel & Secretary
           Open Solutions Inc.
           300 Winding Brook Drive
           Glastonbury, CT 06033

                                       28
<PAGE>

     To any Seller Party:

           Southwest Community Bancorp
           5810 El Camino Real
           Carlsbad, CA  92008
           Attention: Chief Executive Officer

     With a copy to:

           S. Alan Rosen, Esq.
           Horgan, Rosen, Beckham & Coren, LLP
           23975 Park Sorrento, Suite 200
           Calabasas, CA 91302

     Section 7.2. Entire Agreement. This Agreement (including the schedules and
exhibits hereto) constitutes the sole understanding of the parties with respect
to the subject matter hereof.

     Section 7.3. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     Section 7.4. Parties in Interest; Assignment. This Agreement shall inure to
the benefit of, and be binding upon, the parties hereto and their respective
successors and assigns, provided that no Seller Party may assign or delegate
this Agreement or any right, liability or obligation hereunder without Buyer's
prior written consent and any assignment or delegation by any Seller Party
without the prior written consent of Buyer shall be void and of no force or
effect.

     Section 7.5. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Connecticut, without
reference to its conflicts of laws principles.

     Section 7.6. Schedules and Headings. All of the schedules and exhibits
attached hereto are a part of this Agreement and all of the matters contained
therein are incorporated herein by reference. The descriptive headings of the
several Articles and Sections of this Agreement are inserted for convenience
only and do not constitute part of this Agreement.

     Section 7.7. Amendment. This Agreement may be amended only by the parties
hereto by any instrument in writing signed by or on behalf of each of the
parties hereto.

     Section 7.8. Waiver. Any term or provision of this Agreement may be waived
only in writing by the party or parties who are entitled to the benefits being
waived.

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<PAGE>

     Section 7.9. Joint and Several Liability. All obligations and liabilities
of Seller and/or any Stockholder under this Agreement shall be the joint and
several obligations and liabilities of all of the Seller Parties.

     Section 7.10. Facsimile Signatures. Facsimile signatures shall be fully
binding and effective for all purposes and shall be given the same effect as
original signatures. If any party delivers a copy of this Agreement containing a
facsimile signature, such party shall promptly forward copies containing
original signatures to the other party; provided, however, that the copies
containing the facsimile signatures shall remain binding even if the document
containing original signatures is not sent to the other party.

     Section 7.11 Press Release. No Seller Party shall make any public
announcement or issue any press release relating to this Agreement, or any
related agreements or transactions contemplated hereby or thereby, provided
however, that nothing herein shall prevent Seller from making any disclosure
required by law.

        [The remainder of this page is intentionally left blank; the next
                     succeeding page is a signature page.]

                                       30
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Asset
Purchase Agreement as of the date first above written.

FINANCIAL DATA SOLUTIONS, INC.               FLOAT ACQUISITION CORP.

By: /s/ Alan J. Lane                         By: /s/ Carl D. Blandino
    -----------------------------------          -------------------------------
    Name:  Alan J. Lane                          Name:  Carl D. Blandino
    Title: Chief Executive Officer               Title: Secretary and Treasurer

SOUTHWEST COMMUNITY BANCORP

By: /s/ Frank J. Mercardante
    -----------------------------------
    Name:  Frank J. Mercardante
    Title: Chief Executive Officer

<PAGE>

                                    EXHIBIT A

                                ESCROW AGREEMENT

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