Document:

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON
     EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
     SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES
     LAWS OF ANY STATE OF THE UNITED STATES. THESE SECURITIES MAY NOT BE
     OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS SUCH SECURITIES
     ARE REGISTERED UNDER THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS
     OR SUCH SECURITIES ARE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
     IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT
     OR ANY APPLICABLE STATE SECURITIES LAW AND THE COMPANY WILL BE
     PROVIDED WITH OPINION OF COUNSEL IN A FORM REASONABLY ACCEPTABLE TO
     THE COMPANY OR OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO
     CONFIRM THAT SUCH EXEMPTIONS ARE AVAILABLE.

     WITHOUT COMPLIANCE WITH ALL APPLICABLE CANADIAN SECURITIES
     LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE
     SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED IN CANADA OR TO OR
     FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL SEPTEMBER 11, 2007.

                               THINKPATH INC.

                           CONVERTIBLE DEBENTURE

                                MAY 10, 2007

No. ___                                                               US$400,000

         This Convertible Debenture (the "DEBENTURE") is issued on May 10, 2007
(the "CLOSING DATE") by ThinkPath Inc., an Ontario, Canada corporation (the
"COMPANY"), to Trafalgar Capital Specialized Investment Fund, Luxembourg
(together with its permitted successors and assigns, the "HOLDER") pursuant to
exemptions from registration under the Securities Act of 1933, as amended, and
applicable state securities laws.

                                   ARTICLE I.

         SECTION 1.01 PRINCIPAL AND INTEREST. For value received, the Company
hereby promises to pay to the order of the Holder on May 10, 2009 (the
"Repayment Date") in lawful money of the United States of America and in
immediately available funds the principal sum of Four Hundred Thousand U.S.
Dollars (US$400,000) together with interest on the unpaid principal of this
Debenture at the rate of twelve percent (12%) per annum compounded monthly, to
the extent unpaid, from the date hereof until paid. Interest shall be computed
on the basis of a 365-day year and the actual days elapsed and the Holder shall
deduct two (2) interest payments at each Closing (as defined in the Securities
Purchase Agreement) on the then outstanding balance. At the Holder's option, the
entire principal amount and all accrued interest shall be either (a) paid to the
Holder on the second (2nd) year anniversary from the date hereof or (b)

<PAGE>

converted in accordance with Section 1.02 herein provided, however, that in no
event shall the Holder be entitled to convert this Debenture for a number of
common shares of the Company ("Common Shares") in excess of that number of
Common Shares which, upon giving effect to such conversion, would cause the
aggregate number of Common Shares beneficially owned by the Holder and its
affiliates to exceed 4.99% of the outstanding shares of the Common Shares
following such conversion.

         SECTION 1.02 OPTIONAL CONVERSION. The Holder is entitled, at its
option, to convert, and sell on the same day or at any subsequent time, at any
time and from time to time, until payment in full of this Debenture, all or any
part of the principal amount of the Debenture, plus accrued interest, into
Common Shares at the price per share (the "CONVERSION PRICE") equal to ninety
percent (90%) of the Volume Weighted Average Price ("VWAP") as quoted by
Bloomberg L.P. for the ten (10) trading days immediately preceding the
Conversion Date (as defined herein). As used herein, "PRINCIPAL MARKET" shall
mean The National Association of Securities Dealers Inc.'s Over-The-Counter
Bulletin Board, Nasdaq Capital Market, Nasdaq Global Market or American Stock
Exchange. If the Common Shares are not traded on a Principal Market, the VWAP
shall mean, the reported VWAP for the Common Shares, as furnished by the
National Association of Securities Dealers, Inc., for the applicable periods. No
fraction of shares or scrip representing fractions of shares will be issued on
conversion, but the number of shares issuable shall be rounded to the nearest
whole share. To convert this Debenture, the Holder hereof shall deliver written
notice thereof, substantially in the form of Exhibit "A" to this Debenture, with
appropriate insertions (the "CONVERSION NOTICE"), to the Company at its address
as set forth herein. The date upon which the conversion shall be effective (the
"CONVERSION DATE") shall be deemed to be the date set forth in the Conversion
Notice.

         This Debenture may not be converted unless an exemption is available
from the registration requirements under the United States Securities Act of
1933, as amended (the "U.S. Securities Act"), and the securities laws of all
applicable states, and the Company has received an opinion of counsel or other
evidence to such effect reasonably satisfactory to it; PROVIDED, HOWEVER, that a
holder who purchased this Debenture in the Company's private placement of such
securities will not be required to deliver an opinion of counsel in connection
with the conversion of this Debenture. Upon conversion of this Debenture, the
certificate representing the Conversion Shares will bear a legend restricting
transfer without registration under the U.S. Securities Act and applicable state
securities laws unless an exemption from registration is available and will
contain any other restrictions required by applicable United States federal or
state securities laws. Further, without compliance with all applicable Canadian
securities legislation, this Debenture and any securities received upon
conversion of this Debenture, may not be sold, transferred, hypothecated or
otherwise traded in Canada or to or for the benefit of a Canadian resident until
September 11, 2007.

         SECTION 1.03 RESERVATION OF COMMON SHARES. The Company shall reserve
and keep available out of its authorized but unissued Common Shares, solely for
the purpose of effecting the conversion of this Debenture, such number of Common
Shares as shall from time to time be sufficient to effect such conversion, based
upon the Conversion Price. If at any time the Company does not have a sufficient
number of Conversion Shares authorized and available, then the Company shall
call and hold a special meeting of its shareholders within thirty (30) days of
that time for the sole purpose of increasing the number of authorized Common
Shares.

                                      -2-
<PAGE>

         SECTION 1.04 RIGHT OF REDEMPTION. The Company at its option shall have
the right to redeem, with three (3) business days advance written notice (the
"REDEMPTION NOTICE"), a portion or all outstanding convertible debenture. The
redemption price shall be one hundred fifteen percent (115%) of the amount
redeemed including accrued interest (the "Redemption Amount"). The Company shall
deliver to the Holder the Redemption Amount on the third (3rd) business day
after the Redemption Notice.

         SECTION 1.05 MANDATORY REDEMPTION. Following the twelve month
anniversary of the First Closing (as defined in the Securities Purchase
Agreement), the Company shall redeem this Debenture using a straight line
amortization at a rate of five percent per month of the outstanding principal
balance on this and all outstanding Debentures, adjusted for the Redemption
Premium, plus any accrued interest. The Company may make such redemptions in
cash or registered shares of the Company's Common Shares.

         SECTION 1.06 INTEREST PAYMENTS. The interest so payable will accrue in
favor of the person in whose name this Debenture is registered. At the time such
interest is payable, the Holder, in its sole discretion, may elect to receive
the interest in cash (via wire transfer or certified funds) or in the form of
Common Shares. In the event of default, as described in Article III Section 3.01
hereunder, the Holder may elect that the interest be paid in cash (via wire
transfer or certified funds) or in the form of Common Shares. If paid in the
form of Common Shares, the amount of stock to be issued will be calculated as
follows: the value of the stock shall be the Conversion Price on: (i) the date
the interest payment is due; or (ii) if the interest payment is not made when
due, the date the interest payment is made. A number of Common Shares with a
value equal to the amount of interest due shall be issued. No fractional shares
will be issued; therefore, in the event that the value of the Common Shares per
share does not equal the total interest due, the Company will pay the balance in
cash.

         SECTION 1.07 PAYING AGENT AND REGISTRAR. Initially, the Company will
act as paying agent and registrar. The Company may change any paying agent,
registrar, or Company-registrar by giving the Holder not less than ten (10)
business days' written notice of its election to do so, specifying the name,
address, telephone number and facsimile number of the paying agent or registrar.
The Company may act in any such capacity.

         SECTION 1.08 [RESERVED]

         Section 1.09 CURRENCY EXCHANGE RATE PROTECTIONS.

                  (a) "Closing Date Exchange Rate", as to each Closing Date,
         means the Euro to US dollar spot exchange rate as quoted in the London
         edition of the Financial Times on such Closing Date.

                  (b) "Repayment Exchange Rate" means in relation to each date
         of a Conversion Notice or date of a Redemption Notice, the Euro to US
         dollar spot exchange rate as quoted by in the London edition of the
         Financial Times on such date.

                                      -3-
<PAGE>

                  (c) If on the date of any Conversion Notice or Redemption
         Notice, the Repayment Exchange Rate is less than the corresponding
         Closing Date Exchange Rate for such Convertible Debenture, then the
         number of Shares to be issued shall be increased by the same percentage
         as results from dividing the Closing Date Exchange Rate by the relevant
         Repayment Exchange Rate. By way of example, if the number of Shares to
         be issued in respect of a particular Conversion Notice or Redemption
         Notice would, but for this Section 1.09, be 1,000 and if the Closing
         Date Exchange Rate is 1.80 and the relevant Repayment Exchange Rate is
         1.75, then 1,029 Shares will be issued in relation to that Conversion
         Notice or Redemption Notice, as the case may be.

                  (d) If on the Repayment Date or any Interest Repayment Date,
         the Cash Payment Date Exchange Rate, as defined below is less than the
         Closing Date Exchange Rate then the amount of cash required to satisfy
         the amounts due at such time shall be increased by the same percentage
         as results from dividing the Closing Date Exchange Rate by the relevant
         Cash Payment Date Exchange Rate. "Cash Payment Date Exchange Rate"
         means in relation to each Repayment Date or Interest Repayment Date the
         Euro to US dollar spot exchange rate as quoted in the London edition of
         the Financial Times on such date. By way of example, if the amount of
         cash required to repay all amounts due on such date would, but for this
         Section 1.09, be $1,000 and if the Closing Date Exchange Rate is 1.80
         and the relevant Repayment Date Exchange Rate is 1.75 then the amount
         of cash from the Cash Payment required to repay all amounts due on such
         date will be $1,028.57.

                                  ARTICLE II.

         SECTION 2.01 AMENDMENTS AND WAIVER OF DEFAULT. The Debenture may not be
amended. Notwithstanding the above, without the consent of the Holder, the
Debenture may be amended to cure any ambiguity, defect or inconsistency, or to
provide for assumption of the Company obligations to the Holder.

                                  ARTICLE III.

         SECTION 3.01 EVENTS OF DEFAULT. An Event of Default is defined as
follows: (a) failure by the Company to pay amounts due hereunder within fifteen
(15) days of the date of maturity of this Debenture; (b) failure by the Company
to comply with the terms of the Irrevocable Transfer Agent Instructions attached
to the Securities Purchase Agreement; (c) failure by the Company for ten (10)
days after notice to it to comply with any of its other agreements in the
Debenture; (d) events of bankruptcy or insolvency; (e) a breach by the Company
of its obligations under the Securities Purchase Agreement which is not cured by
the Company within ten (10) days after receipt of written notice thereof. Upon
the occurrence of an Event of Default, the Holder may, in its sole discretion,
accelerate full repayment of all debentures outstanding and accrued interest
thereon or may, notwithstanding any limitations contained in this Debenture
and/or the Securities Purchase Agreement, convert all debentures outstanding and
accrued interest thereon into Common Shares pursuant to Section 1.02 herein.

                                      -4-
<PAGE>

         SECTION 3.02 FAILURE TO ISSUE UNRESTRICTED COMMON SHARES. As indicated
in Article III Section 3.01, a breach by the Company of its obligations under
the Securities Purchase Agreement shall be deemed an Event of Default, which if
not cured within ten (10) days, shall entitle the Holder to accelerate full
repayment of all debentures outstanding and accrued interest thereon or,
notwithstanding any limitations contained in this Debenture and/or the
Securities Purchase Agreement, to convert all debentures outstanding and accrued
interest thereon into Common Shares pursuant to Section 1.02 herein. The Company
acknowledges that failure to honor a Notice of Conversion shall cause
irreparable harm to the Holder.

                                  ARTICLE IV.

         SECTION 4.01 RIGHTS AND TERMS OF CONVERSION. Subject to the terms
hereof, this Debenture, in whole or in part, may be converted at any time
following the Closing Date, into Common Shares at a price equal to the
Conversion Price as described in Section 1.02 above.

         SECTION 4.02 RE-ISSUANCE OF DEBENTURE. When the Holder elects to
convert a part of the Debenture, then the Company shall reissue a new Debenture
in the same form as this Debenture to reflect the reduced original principal
amount.

         SECTION 4.03 TERMINATION OF CONVERSION RIGHTS. The Holder's right to
convert the Debenture into the Common Shares in accordance with this Debenture
shall terminate on the date that is the third (3rd) year anniversary from the
date hereof and this Debenture shall be automatically converted on that date in
accordance with the formula set forth in Section 1.02 hereof, and the
appropriate Common Shares and amount of interest shall be issued to the Holder.

                                   ARTICLE V.

         SECTION 5.01 ANTI-DILUTION. In the event that the Company shall at any
time subdivide the outstanding Common Shares, or shall issue a stock dividend on
the outstanding Common Shares, the Conversion Price in effect immediately prior
to such subdivision or the issuance of such dividend shall be proportionately
decreased, and in the event that the Company shall at any time combine the
outstanding Common Shares, the Conversion Price in effect immediately prior to
such combination shall be proportionately increased, effective at the close of
business on the date of such subdivision, dividend or combination as the case
may be.

         SECTION 5.02 CONSENT OF HOLDER TO SELL CAPITAL STOCK OR GRANT SECURITY
INTERESTS. Except for the Securities Purchase Agreement dated the date hereof
between the Company and Trafalgar Capital Specialized Investment Fund,
Luxembourg, so long as any of the principal of or interest on this Debenture
remains unpaid and unconverted, the Company shall not, without the prior consent
of the Holder, issue or sell (i) any Common Shares or Preferred Stock without
consideration or for a consideration per share less than its fair market value
determined immediately prior to its issuance, (ii) issue or sell any Preferred
Stock, warrant, option, right, contract, call, or other security or instrument
granting the holder thereof the right to acquire Common Shares without
consideration or for a consideration per share less than such Common Shares'
fair market value determined immediately prior to its issuance, (iii) other than
as in effect on the Closing Date, enter into any security instrument granting
the holder a security interest in any of the assets of the Company, or (iv) file
any registration statement on Form S-8 related to anything other than shares
underlying an employee benefit plan that have been or will be awarded to
employees and/or directors of the Company and its subsidiaries.

                                      -5-
<PAGE>

                                  ARTICLE VI.

         SECTION 6.01 NOTICE. Notices regarding this Debenture shall be sent to
the parties at the following addresses, unless a party notifies the other
parties, in writing, of a change of address:

If to the Company, to:                   ThinkPath Inc.
                                         55 University Avenue, Suite 505
                                         Toronto, Ontario Canada M5J 2H7
                                         Attn: Mr. Declan French, CEO
                                         Telephone:
                                         Facsimile:

With a copy to:                          Gersten Savage LLP
                                         600 Lexington Avenue - 9th Floor
                                         New York, NY 10022
                                         Attn: Arthur S. Marcus, Esq.
                                         Telephone: 212 752-9700
                                         Facsimile: 212 980-5192

If to the Holder:                        Trafalgar Capital Specialized
                                         Investment Fund, Luxembourg
                                         8-10 Rue Mathias Hardt
                                         BP 3023
                                         Luxembourg L-1030
                                         Facsimile:
                                         011-44-207-405-0161
                                         and
                                         001-786-323-1651

With a copy to:                          James G. Dodrill II, P.A.
                                         5800 Hamilton Way
                                         Boca Raton, FL  33496
                                         Attention:        James Dodrill, Esq.
                                         Telephone:        (561) 862-0529
                                         Facsimile:        (561) 892-7787

         SECTION 6.02 GOVERNING LAW. This Debenture shall be deemed to be made
under and shall be construed in accordance with the laws of the State of Florida
without giving effect to the principals of conflict of laws thereof. Each of the
parties consents to the jurisdiction of the U.S. District Court sitting in the
District of the State of Florida or the state courts of the State of Florida
sitting in Broward County, Florida in connection with any dispute arising under
this Debenture and hereby waives, to the maximum extent permitted by law, any
objection, including any objection based on FORUM NON CONVENIENS to the bringing
of any such proceeding in such jurisdictions.

                                      -6-
<PAGE>

         SECTION 6.03 SEVERABILITY. The invalidity of any of the provisions of
this Debenture shall not invalidate or otherwise affect any of the other
provisions of this Debenture, which shall remain in full force and effect.

         SECTION 6.04 ENTIRE AGREEMENT AND AMENDMENTS. This Debenture represents
the entire agreement between the parties hereto with respect to the subject
matter hereof and there are no representations, warranties or commitments,
except as set forth herein. This Debenture may be amended only by an instrument
in writing executed by the parties hereto.

         SECTION 6.05 COUNTERPARTS. This Debenture may be executed in multiple
counterparts, each of which shall be an original, but all of which shall be
deemed to constitute on instrument.

         IN WITNESS WHEREOF, with the intent to be legally bound hereby, the
Company as executed this Debenture as of the date first written above.

                                      THINKPATH INC.

                                      By:
                                      Name:
                                      Title:

                                      -7-
<PAGE>

                                   EXHIBIT "A"

                              NOTICE OF CONVERSION

        (TO BE EXECUTED BY THE HOLDER IN ORDER TO CONVERT THE DEBENTURE)

TO:

         The undersigned hereby irrevocably elects to convert US$ ______________
of the principal amount of the above Debenture into Common Shares of THINKPATH
INC., according to the conditions stated therein, as of the Conversion Date
written below.

CONVERSION DATE:
                                     -------------------------------------------
APPLICABLE CONVERSION PRICE:
                                     -------------------------------------------
SIGNATURE:
                                     -------------------------------------------
NAME:
                                     -------------------------------------------
ADDRESS:
                                     -------------------------------------------
AMOUNT TO BE CONVERTED:              US$
                                        ----------------------------------------
AMOUNT OF DEBENTURE UNCONVERTED:     US$
                                        ----------------------------------------
CONVERSION PRICE PER SHARE:          US$
                                        ----------------------------------------
NUMBER OF COMMON SHARES
TO BE ISSUED:
                                     -------------------------------------------
PLEASE ISSUE THE COMMON SHARES
IN THE FOLLOWING NAME
AND TO THE FOLLOWING ADDRESS:
                                     -------------------------------------------
ISSUE TO:
                                     -------------------------------------------
AUTHORIZED SIGNATURE:
                                     -------------------------------------------
NAME:
                                     -------------------------------------------
TITLE:
                                     -------------------------------------------
PHONE NUMBER:
                                     -------------------------------------------

BROKER DTC PARTICIPANT CODE:
                                     -------------------------------------------
ACCOUNT NUMBER:
                                     -------------------------------------------

                                       A-1

<PAGE>

         The undersigned represents, warrants and certifies as follows (only one
of the following must be checked):

     A.|_| The undersigned holder (a) purchased these Debentures directly
           from the Company pursuant to a written purchase agreement for the
           purchase of such securities, and (b) is converting these Debentures
           for its own account and not on behalf of any other person; OR

     B.|_| The undersigned holder has delivered to the Company a written opinion
           of counsel of recognized standing or such other evidence in form and
           substance satisfactory to the Company to the effect that an exemption
           from the registration requirements of the United States Securities
           Act of 1933, as amended (the "U.S. Securities Act"), and applicable
           state securities laws is available for the issuance of the Conversion
           Shares.

The undersigned holder understands that the certificate representing the
Conversion Shares will bear a legend restricting transfer without registration
under the U.S. Securities Act and applicable state securities laws unless an
exemption from registration is available and will contain any other restrictions
required by applicable United States federal or state securities laws or
Canadian securities laws. With respect to Box A above, the undersigned holder
agrees to provide any additional information that the Company may reasonably
request to establish that an exemption or exclusion from registration under the
U.S. Securities Act is available for the issuance of the Conversion Shares.
Unless Box B above is checked, certificates representing Conversion Shares will
not be registered or delivered to an address in the United States.

If Box B is checked, any opinion tendered or other evidence delivered must be in
form and substance reasonably satisfactory to the Company. Holders planning to
deliver such documentation in connection with the conversion of a Debenture
should contact the Company in advance to determine whether such documentation
will be acceptable to the Company.

                                      A-2kl05058_ex10-1.htm

    
      

    

    
       Exhibit
        10.1
        

         

         

         

         

         

         

         

         

         

         

         

         

        MEMBERSHIP
          INTEREST PURCHASE AGREEMENT

         

        by
          and
          among

         

         

        STEVEN
          MADDEN, LTD.

         

        and

         

        The
          Members

         

        of

         

        COMPO
          ENHANCEMENTS, LLC 

         

        Dated
          as
          of May 16, 2007

         

         

         

         

         

         

        
 

        

        
          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

              
              

            

          

        

         

         

        TABLE
          OF CONTENTS

         

      

    

    
      
                                                                                    
Page    

       

      ARTICLE
        I    
Certain
        Definitions                                                                        1

       

      ARTICLE
        II    Purchase
        and
        Sale                                                                                                         6

      2.1    Purchase
        and Sale of Company Interests                                                                  6

      2.2    Cash
        Purchase Price                                                                                                                     
        7 

      2.3    Post-Closing
        Adjustments                                                                                   7

      2.4    Earn-Out
        Payment                                                                                 
        9

       

      ARTICLE
        III          Closing                                                                                                    
        9 

      3.1           
        Closing
        Date                                                                                                   9

      3.2           
        Certain
        Actions at Closing. At the Closing:                                                                              9

       

      ARTICLE
        IV          Representations
        and Warranties of Sellers                                                                                             
        10

      4.1           
        Organization
        and Good Standing                                                                      10

      4.2           
        Capitalization                                                                                                10

      4.3           
        Authorization                                                                               11

      4.4           
        No
        Conflicts                                                                                                 
        11

      4.5           
        Financial
        Statements; Undisclosed Liabilities                                                        
11

      4.6           
        Taxes                                                                                     
        12

      4.7           
        Title
        to
        Properties; Absence of Encumbrances                                                              
        13

      4.8           
        Intellectual
        Property                                                                                    
        14

      4.9           
        Contracts
        and Agreements                                                                                        
        16

      4.10         
        Insurance                                                                                      
        18

      4.11         
        Litigation                                                                                       
        18

      4.12         
        Condition
        and Sufficiency of Assets                                                                               
        18

      4.13         
        Compliance
        with Law; Licenses                                                                                
        19

      4.14         
        Employees                                                                                     19

      4.15         
        Employee
        Benefit Plans                                                                      
        22

      4.16         
        Environmental
        Matters                                                                                       
        24

      4.17         
        Bank
        Accounts and Powers of Attorney                                                                         25

      4.18         
        Absence
        of Certain Changes                                                                     25

      4.19         
        Books
        and
        Records                                                                             
        28

      4.20         
        Transactions
        with Affiliated Persons                                                                       
        28

      4.21         
        Absence
        of Certain Business Practices                                                            28

      4.22         
        Brokers
        and Finders                                                                                    
        28

      4.23         
        Restrictions
        on Business Activities                                                                 
        29

      4.24         
        Payables                                                                                        
        29

      4.25         
        Receivables                                                                                   
        29

      4.26         
        Business
        Relations                                                                              
        29

      4.27         
        Disclosure                                                                                             
        29

       

      ARTICLE
        V    Representations
        and Warranties of Madden                                                                          
        30

      5.1    Organization
        and Good Standing                                                                      
        30

       

       

       

      
        
          i

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.2    Authorization                                                                                                               
        30

      5.3    No
        Conflicts; Consents                                                                              
        30

      5.4    Litigation                                                                                       
        30

      5.5    Brokers
        and Finders                                                                            
        30

      5.6    Investment
        Intent                                                                                
        30

      5.7    Sufficient
        Funds                                                                                   
        31

       

      ARTICLE
        VI   Covenants
        of Sellers                                                                           
        31

      6.1    Ordinary
        Course                                                                           
        31

      6.2    Conduct
        of Business                                                                           
        31

      6.3    Certain
        Filings                                                                                      
        33

      6.4    Consents
        and Approvals                                                                    33

      6.5    Efforts
        to Satisfy Conditions                                                                                     
        34

      6.6    Further
        Assurances                                                                            
        34

      6.7    Notification
        of Certain
        Matters                                                                                                 
        34

       

      ARTICLE
        VII         Covenants
        of Madden                                                                        
        34

      7.1    Certain
        Filings                                                                              
        34

      7.2    Efforts
        to Satisfy Conditions                                                                             
        34

      7.3    Further
        Assurances                                                                            
        35

      7.4    Notification
        of Certain Matters                                                                 
        35

       

      ARTICLE
        VIII        Certain
        Other Agreements                                                                                         
        35

      8.1    Certain
        Tax
        Matters                                                                                                            
        35

      8.2    Company
        Payments                                                                                            
        36

      8.3    Matters
        Relating to Randel                                                                        
        36

       

      ARTICLE
        IX          Conditions
        Precedent to Obligations of Madden                                                           
        37

      9.1    Representations
        and Warranties                                                                       
        37

      9.2    Compliance
        with Covenants                                                                      
        37

      9.3    Lack
        of
        Adverse Change                                                                    
37

      9.4    Update
        Certificate                                                                                                
        38

      9.5    Regulatory
        Approvals                                                                                        
        38

      9.6    Consents
        of Third Parties                                                                                  
        38

      9.7    No
        Violation of Orders                                                                                        38

      9.8    Employment
        Agreement                                                                             38

      9.9    Transaction
        Documents                                                                                             38

      9.10         
        Other
        Closing Matters                                                                                38

       

      ARTICLE
        X   Conditions
        Precedent to Obligations of Sellers                                                              38

      10.1         
        Representations
        and Warranties                                                                      39

      10.2         
        Compliance
        with Covenants                                                                              39

      10.3         
        Update
        Certificate                                                                                39

      10.4         
        Regulatory
        Approvals                                                                                        39

      10.5         
        No
        Violation of Orders                                                                        39

      10.6         
        Transaction
        Documents                                                                             39

      10.7         
        Other
        Closing Matters                                                                                39

       

       

      
        
          ii

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      ARTICLE
        XI          Termination
        of Agreement                                                                                                 
        39

      11.1         
        Conditions
        for Termination                                                                       
        39

      11.2         
        Effect
        of
        Termination                                                                          
        40

       

      ARTICLE
        XII         Indemnification                                                                            40

      12.1         
        Survival
        of Representations, Warranties and Covenants                                                             40

      12.2         
        Indemnification
        by Silverman                                                                    
        41

      12.3         
        Indemnification
        by Madden                                                                      
        42

      12.4         
        Assumption
        of Defense                                                                     
42

      12.5         
        Non-Assumption
        of Defense                                                                            
        43

      12.6         
        Indemnified
        Party’s Cooperation as to Proceedings                                                             
        43

      12.7         
        Payments
        Treated as Purchase Price Adjustment                                                         
        44

       

      ARTICLE
        XIII       Miscellaneous                                                                                              
        44

      13.1         
        Expenses                                                                                       
        44

      13.2         
        Entirety
        of Agreement                                                                                        
        44

      13.3         
        Notices                                                                                  
        44

      13.4         
        Amendment                                                                                  
        44

      13.5         
        Waiver                                                                                   
        44

      13.6         
        Counterparts;
        Facsimile                                                                               45

      13.7         
        Assignment;
        Binding Nature; No Beneficiaries                                                       45

      13.8         
        Headings                                                                                45

      13.9         
        Governing
        Law; Jurisdiction                                                                 
 45

      13.10       
        Construction;
        Units                                                                             
        45

      13.11       
        Negotiated
        Agreement                                                                        
        46

      13.12       
        Public
        Announcements                                                                       
        46

      13.13       
        Remedies
        Cumulative                                                                           
        46

      13.14       
        Severability                                                                            
46

      13.15       
        WAIVER
        OF
        JURY TRIAL                                                                     
        46

      13.16      
        Authority
        of Seller Representative                                                                     
        46

      

       

      iii

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
              

              

            

          

        

      

      
 

      MEMBERSHIP
        INTEREST PURCHASE AGREEMENT

       

      THIS
        MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”), dated as of May 16,
        2007, is entered into by and among Steven Madden, Ltd., a Delaware corporation
        (“Madden”) and the individuals and/or entities set forth on the signature pages
        hereto (each a “Seller” and collectively, “Sellers”).

       

      RECITALS

       

      WHEREAS,
        Sellers collectively own all of the issued and outstanding ownership interests
        of Compo Enhancements, LLC, a Connecticut limited liability company (the
        “Company”); and

       

      WHEREAS,
        Madden desires to acquire and Sellers desire to sell, all of the issued and
        outstanding ownership interests of the Company on the terms and conditions
        contained herein and in the Earn Out Agreement (as defined below).

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants and
        agreements hereinafter set forth, the parties hereto, intending to be legally
        bound, hereby agree as follows:

       

      ARTICLE
        I

       

      Certain
        Definitions

       

      “Additional
        Working Capital Consideration” has the meaning set forth in Section
        2.3(b)(i).

       

      “Adjustment
        Payment Date” means a date which is within three (3) Business Days after the
        Final Closing Balance Sheet is deemed final, binding and
        conclusive.

       

      “Affiliate
        Loans” means loans made to Affiliated Persons by the Company.

       

      “Affiliated
        Persons” means Sellers, any trustee or beneficiary of Sellers, any spouse of
        Sellers or any Immediate Family Member of Sellers, or any other Person (other
        than the Company) that, directly or indirectly, alone or together with others,
        controls, is controlled by or is under common control with the Company, Sellers
        or any trustee, beneficiary, spouse or Immediate Family Member of
        Sellers.

       

      “Agreement”
        has the meaning set forth in the preamble.

       

      “Balance
        Sheet” means the balance sheet of the Company as of April
        30,
        2007.

       

      “Business
        Day” means any day that is not a Saturday or Sunday or a legal holiday on which
        banks are authorized or required by law to be closed in New York, New
        York.

       

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

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

       

      “Closing”
        has the meaning set forth in Section 3.1.

       

      “Closing
        Balance Sheet” means the balance
        sheet of the Company as of the close of business on the Closing
        Date.

       

      “Closing
        Date” has the meaning set forth in Section 3.1.

       

      “COBRA”
        has the meaning set forth in Section 4.15(c).

       

      “Code”
        means the U.S. Internal Revenue Code of 1986, as amended, or any successor
        statute.

       

      “Company”
        has the meaning set forth in the recitals.

       

      “Company
        IP Rights” has the meaning set forth in Section 4.8(a).

       

      “Company
        IP Rights Agreements” has the meaning set forth in
        Section 4.8(b).

       

      “Company
        Interests” has the meaning set forth in Section 2.1.

       

      “Contracts”
        has the meaning set forth in Section 4.9(a).

       

      “Delivery
        Date” has the meaning set forth in Section 2.3(a)(ii).

       

      “Disclosure
        Schedule” means the disclosure schedules of Sellers accompanying this
        Agreement.

       

      “Dispute
        Notice” has the meaning set forth in Section 2.3(a)(ii).

       

      “Earn-Out
        Agreement” means the Earn-out Agreement among Sellers and Madden, which has been
        executed and delivered prior to or simultaneously with the execution and
        delivery of this Agreement and which shall become effective as of the Closing,
        attached hereto as Exhibit
        A.

       

      “Earn-Out
        Payment” has the meaning set forth in Section 2.4.

       

      “Employee
        Benefit Plan” has the meaning set forth in Section 4.15(a).

       

      “Employment
        Agreement” means the employment agreement between Madden and Jeff Silverman
        which has been executed and delivered prior to or simultaneously with the
        execution and delivery of this Agreement and which shall become effective
        as of
        the Closing, attached hereto as Exhibit
        B.

       

      “Encumbrance”
        means any lien, pledge, mortgage, security interest, charge, restriction,
        adverse claim or other encumbrance of any kind or nature
        whatsoever.

       

       

      
        
          2

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Environment”
        means soil, surface water, ground water, land, stream sediments, surface
        or
        subsurface strata, ambient air and any environmental medium.

       

      “Environmental
        Law” means any Law that governs protection or improvement of human health or the
        Environment.

       

      “Environmental
        Permit” means any permit, registration, certificate, certification, license,
        authorization, consent or approval of any Governmental Body required or issued
        under Environmental Laws.

       

      “ERISA”
        has the meaning set forth in Section 4.15(a).

       

      “ERISA
        Affiliate” has the meaning set forth in Section 4.15(a).

       

      “Final
        Allocation” has the meaning set forth in Section 8.1(b)(ii).

       

      “Final
        Closing Balance Sheet” has the meaning set forth in Section
        2.3(a)(iii).

       

      “Financial
        Statements” means the unaudited income statements of the Company as of the
        fiscal year ended December 31, 2006.

       

      “GAAP”
        means U.S. generally accepted accounting principles, as in effect on the
        date of
        this Agreement, consistently applied.

       

      “Governmental
        Body” means any governmental or regulatory body, agency, authority, commission,
        department, bureau, court, tribunal, arbitrator or arbitral body (public
        or
        private), or political subdivision, in any jurisdiction.

       

      “Hazardous
        Materials” means without regard to amount or concentration (a) any element,
        compound, gas or chemical that is defined, listed, classified or regulated
        as
        hazardous or toxic under any Environmental Law, including, without limitation,
        any material or substance that is defined as a “hazardous waste,” “hazardous
        material,” “hazardous substance,” “extremely hazardous waste,” “restricted
        hazardous waste,” “subject waste,” “contaminant,” “waste,” “toxic waste,” “toxic
        substance” or similar term under any provision of any Environmental Law; (b)
        petroleum, petroleum-based or petroleum-derived products; and (c) any substance
        containing polychlorinated biphenyls, asbestos, lead, urea formaldehyde or
        radon
        gas.

       

      “HIPAA”
        has the meaning set forth in Section 4.15(c).

       

      “Immediate
        Family Member” with respect to any Person who is an individual, means each of
        such Person’s spouse, children (whether by blood or adoption), grandchildren,
        parents, siblings and trusts for the benefit of any of the
        foregoing.

       

      “Indemnification
        Obligations” means the respective indemnification obligations of Sellers or
        Madden under Article XII.

       

      “Independent
        Accounting Firm” means an independent accounting firm mutually acceptable to
        Madden and the Seller Representative (which accounting firm has not, within
        the

       

       

      
        
          3

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      prior
        12
        months, provided services to Madden, any affiliate of Madden, Sellers or
        any
        Affiliated Person). If Madden and the Seller Representative are unable to
        agree
        upon an independent accounting firm within thirty (30) days after the Seller
        Representative’s delivery of the Dispute Notice to Madden, an independent
        accounting firm selected by Madden (which accounting firm has not, within
        the
        prior 12 months, provided services to Madden or any affiliate of Madden)
        and an
        independent accounting firm selected by the Seller Representative (which
        accounting firm has not, within the prior 12 months, provided services to
        Sellers, the Company or any Affiliated Person) shall select an independent
        accounting firm (which accounting firm has not, within the prior 12 months,
        provided services to Madden, any affiliate of Madden, Sellers or any Affiliated
        Person) and such independent accounting firm shall be the “Independent
        Accounting Firm.”

       

      “Intellectual
        Property Rights” means all intellectual property rights, including trademarks,
        service marks, internet domain names, slogans, logos, trade names, and the
        goodwill associated therewith, patents, copyrights, in both published and
        unpublished works, and all registrations and applications for any of the
        foregoing, rights of publicity/privacy, franchises, licenses, proprietary
        know-how, proprietary trade secrets, proprietary customer lists, proprietary
        vendor lists, proprietary information, proprietary processes, proprietary
        formulae, proprietary computer programs and applications, proprietary layouts,
        proprietary specifications, proprietary designs, proprietary inventions,
        proprietary development tools and all documentation and media constituting,
        describing or relating to the above, including manuals, memoranda and records
        wherever created throughout the world.

       

      “IRS”
        means the U.S. Internal Revenue Service.

       

      “Knowledge”
        means, the knowledge, at any time of: in the case of Sellers and the Company,
        Silverman and those employees of the Company with primary responsibility
        for the
        relevant matter; and in the case of Madden, Jamieson A. Karson and Ed
        Rosenfeld.

       

      “Law”
        means any law in any jurisdiction (including common law), statute, code,
        ordinance, rule, regulation, permit, order, decree or other requirement or
        guideline.

       

      “Licenses”
        has the meaning set forth in Section 4.13(b).

       

      “Loss,”
        in respect of any matter, means any loss, liability, cost, expense, judgment,
        settlement or damage arising as a result of such matter, including reasonable
        attorneys’, consultants’ and other advisors’ fees and expenses, reasonable costs
        of investigating or defending any claim, action, suit or proceeding or of
        avoiding the same or the imposition of any judgment or settlement and reasonable
        costs of enforcing any Indemnification Obligations.

       

      “Madden”
        has the meaning set forth in the preamble.

       

      “Madden
        Disclosure Schedule” means the disclosure schedule of Madden accompanying this
        Agreement.

       

      “Madden
        Indemnified Parties” has the meaning set forth in Section 12.2(a).

       

       

      
        
          4

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Material
        Adverse Effect” means any material adverse effect on the business, operations,
        assets, condition (financial or otherwise), prospects, liabilities,
        or results of operations of the Company.

       

      “Net
        Working Capital” means, as of the Closing Date, the cash, inventory, accounts
        receivable and prepaid expenses of the Company, minus the accounts payable,
        accrued employee expenses, and Taxes payable, if any, of the Company, in
        each
        case, as such terms have the meanings assigned to them by GAAP.

       

      “Permitted
        Encumbrances” has the meaning set forth in Section 4.7(c).

       

      “Person”
        means an individual, partnership, venture, unincorporated association,
        organization, syndicate, corporation, limited liability company, or other
        entity, trust, trustee, executor, administrator or other legal or personal
        representative or any government or any agency or political subdivision thereof.
        

       

      “Pre-Closing
        Period” means all taxable periods ending on or before the Closing Date and the
        portion ending on or before the Closing Date of any taxable period that includes
        (but does not begin or end on) the Closing Date.

       

      “Real
        Property” has the meaning set forth in Section 4.7(a).

       

      “Real
        Property Documents” has the meaning set forth in Section 4.7(a).

       

      “Real
        Property Interests” has the meaning set forth in Section 4.7(a).

       

      “Randel”
        means James Randel, a Seller.

       

      “Release”
        means any releasing, spilling, leaching, pumping, leaking, pouring, emitting,
        emptying, discharging, depositing, injecting, escaping, dumping, migrating
        or
        disposing, whether intentional or otherwise, of any Hazardous Material into
        the
        Environment.

       

      “Remedial
        Action” means
        all
        actions, including any capital on-going operating expenditures, required
        by any
        Governmental Body or voluntarily undertaken, on or in connection with any
        property, to (A) clean up, remove, contain, treat, or in any other way address
        any Hazardous Material or other substance; (B) prevent the Release or threat
        of
        Release, or minimize the further Release, of any Hazardous Material or other
        substance so it does not migrate or endanger or threaten to endanger public
        health or welfare or the indoor or outdoor Environment; (C) perform pre-remedial
        studies and investigations or post-remedial monitoring and care; or (D) bring
        facilities on any property and operations conducted thereon into compliance
        with
        all Environmental Laws and Environmental Permits. Remedial Action shall include,
        without limitation, remedial actions conducted off-site to address conditions
        emanating from any property currently or previously owned, leased or operated
        by
        the Company.

       

      “Returns”
        means any and all returns, reports, and information statements with respect
        to
        Taxes required to be filed with a taxing or any other Governmental Body
        (including the IRS), domestic or foreign, including consolidated, combined
        and
        unitary tax returns, and returns in connection with any Employee Benefit
        Plan.

       

       

      
        
          5

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Revised
        Closing Balance Sheet” has the meaning set forth in Section
        2.3(a)(ii).

       

      “SEC”
        means the U.S. Securities and Exchange Commission.

       

      “Seller”
        and “Sellers” have the meanings set forth in the preamble.

       

      “Seller
        Indemnified Parties” has the meaning set forth in Section 12.3(a).

       

      “Seller
        Representative” means Silverman, or any other Seller(s) designated as Seller
        Representative(s) pursuant to the terms of this Agreement.

       

      “Silverman”
        means Jeffrey Silverman.

       

      “Straddle
        Period” has the meaning set forth in Section 8.1(a)(ii).

       

      “Tax”
or
        “Taxes” means taxes, fees, levies, duties, tariffs, imposts and governmental
        impositions or charges of any kind payable to any Governmental Body in any
        jurisdiction including (i) income, capital, franchise, profits, gross receipts,
        ad
        valorem,
        net
        worth, value added, sales, use, service, real or personal property, special
        assessments, capital stock, license, payroll, withholding, employment,
        employment insurance, estimated, social security, workers’ compensation,
        unemployment compensation, utility, severance, production, excise, stamp,
        occupation, premiums, windfall profits, transfer and gains taxes, and (ii)
        interest, penalties, additional taxes and additions to tax imposed with respect
        thereto.

       

      “Threatened
        Release” means a substantial likelihood of a Release which requires action to
        prevent or mitigate damage to the Environment that may result from such
        Release.

       

      “Transaction
        Documents” means this Agreement, the Employment Agreement, and the Earn-Out
        Agreement.

       

      “U.S.”
        means the United States of America.

       

      “Working
        Capital Adjustment” has the meaning set forth in Section 2.3(b).

       

      “Working
        Capital Refund” has the meaning set forth in Section 2.3(b)(ii).

       

      ARTICLE
        II

       

      Purchase
        and Sale

       

      2.1  Purchase
        and Sale of Company Interests.
        Subject
        to and upon the terms and conditions hereinafter set forth, at the Closing,
        and
        in reliance upon the representations, warranties, covenants and other agreements
        contained in this Agreement or made pursuant hereto, Sellers hereby agree
        to
        sell, assign, transfer and deliver to Madden, and Madden hereby agrees to
        purchase from Sellers, all of the issued and outstanding ownership interests
        of
        the Company as set forth in Section 2.1 of the Disclosure Schedule (collectively
        the “Company Interests”).

       

       

      
        
          6

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.2  Cash
        Purchase Price.

       

      (a)  In
        consideration of the aforesaid sale, assignment, transfer and delivery of
        the
        Company Interests, on the Closing Date Madden shall pay or cause to be paid
        to
        Sellers, in cash, an aggregate amount (the “Cash Purchase Price”) equal to (i)
        six million two hundred seventy five thousand dollars ($6,275,000). The Cash
        Purchase Price shall be allocated among Sellers according to the percentages
        set
        forth on Schedule
        A
        hereto.
        The Cash Purchase Price may be adjusted as provided for in Section 2.3 hereof.
        

       

      (b)  All
        payments of cash pursuant to Section 2.2(a) shall be made in immediately
        available funds by wire transfer to an account or accounts (the “Cash Purchase
        Price Accounts”) specified by the Seller Representative at least two (2)
        Business Days prior to the date such payments are to be made.

       

      2.3  Post-Closing
        Adjustments.

       

      (a)  Closing
        Balance Sheet.

       

                         
        (i)  Preparation
        of Closing Balance Sheet.
        As
        promptly as practicable, but in any event within seventy-five (75) days after
        the Closing Date, Madden shall

              
        prepare and deliver to the Seller Representative (A) the Closing Balance
        Sheet,
        which Closing Balance Sheet shall be prepared in accordance with GAAP applied
        on
        a basis

                      
        consistent with the preparation of the Balance Sheet, and (B) a calculation
        of
        Net Working Capital as of the close of business on the Closing Date based
        upon
        the Closing

                      
        Balance Sheet, which shall explain in reasonable detail such calculation
        of Net
        Working Capital.

       

                                 
        (ii)  Closing
        Balance Sheet Disputes.
        The
        Seller Representative may dispute the amount of the Net Working Capital
        reflected on the Closing Balance Sheet

                      
        by sending written notice (a “Dispute Notice”) to Madden within thirty (30) days
        after Madden’s delivery of the Closing Balance Sheet and Net Working Capital
        calculation to

                      
        the Seller Representative (such delivery date, the “Delivery Date”). The Dispute
        Notice shall identify, in reasonable detail, each disputed item on the Closing
        Balance Sheet

                      
        specifying the amount of such dispute. In the event of such a dispute, Madden
        and the Seller Representative shall attempt in good faith to reconcile their
        differences

                      
        (including providing information that is reasonably requested by the other
        party), and any resolution by them as to any disputed items shall be final,
        binding and conclusive

                      
        on the parties and shall be evidenced by a writing signed by Madden and the
        Seller Representative, including a revised Closing Balance Sheet (the “Revised
        Closing Balance

                      
        Sheet”), reflecting such resolution. If Madden and the Seller Representative are
        unable to resolve all disputed items within twenty (20) days after the Seller
        Representative’s

                      
        delivery of the Dispute Notice to Madden, then Madden and the Seller
        Representative shall promptly evidence any resolved disputes in a writing
        signed
        by Madden and the

                      
        Seller Representative and submit any remaining disputed items for final binding
        resolution to the Independent Accounting Firm. If any remaining disputed
        items
        are submitted

                      
        to the Independent Accounting Firm for resolution (A) each party will furnish
        to
        the Independent Accounting Firm such workpapers and other documents and
        information

       

       

      
        
          7

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                      
        relating to the remaining disputed items as the Independent Accounting Firm
        may
        reasonably request and are available to such party, and each party will be
        afforded the

                      
        opportunity to present to the Independent Accounting Firm any material relating
        to the disputed items and to discuss the resolution of the disputed items
        with
        the

                      
        Independent Accounting Firm; (B) each party will use its good faith
        commercially reasonable efforts to cooperate with the resolution process
        so that
        the disputed items can

                      
        be resolved within forty-five (45) days after submission of the disputed
        items
        to the Independent Accounting Firm; (C) the determination by the
        Independent Accounting

                      
        Firm, as set forth in a written notice to Madden and the Seller Representative
        (which written notice shall include a Revised Closing Balance Sheet), shall,
        subject to the

                       provisions
        of Section 2.3(a)(iii), be final, binding and conclusive on the parties;
        and
        (D) the fees and disbursements of the Independent Accounting Firm shall be
        allocated

                      
        between Madden and Sellers in the same proportion that the aggregate amount
        of
        the disputed items submitted to the Independent Accounting Firm that are
        unsuccessfully

                      
        disputed by each party (as finally determined by the Independent Accounting
        Firm) bears to the total amount of all disputed items submitted to the
        Independent Accounting

                      
        Firm.

       

                                
         (iii)    
Final
        Closing Balance Sheet.
        The
        Closing Balance Sheet, or, if one has been adopted pursuant to Section
        2.3(a)(ii), the Revised Closing Balance Sheet,

                      
        shall be deemed to be final, binding and conclusive on Madden and Sellers
        (the
“Final Closing Balance Sheet” upon the earliest of (A) the failure of the Seller
        Representative

                      
        to deliver to Madden the Dispute Notice within thirty (30) days after the
        Delivery Date; (B) the resolution of all disputes by Madden and the Seller
        Representative, as

                      
        evidenced by a Revised Closing Balance Sheet; and (C) the resolution of all
        disputes by the Independent Accounting Firm, as evidenced by a Revised Closing
        Balance Sheet.

                      
        Any adjustment of the Cash Purchase Price based on the Final Closing Balance
        Sheet, shall be made in accordance with Section 2.3(b) hereof.

       

      (b)  Post-Closing
        Working Capital Adjustment.
        Upon
        the Final Closing Balance Sheet being deemed final, binding and conclusive
        pursuant to Section 2.3(a)(iii), an adjustment to the Cash Purchase Price
        shall
        be made as follows (the “Working Capital Adjustment”):

       

                                 
        (i)  In
        the
        event that the Net Working Capital reflected on the Final Closing Balance
        Sheet
        is at a deficit less than five hundred twenty five thousand dollars

              
        ($525,000), then Madden shall
        be obligated to pay to Seller on the Adjustment Payment Date the Additional
        Working Capital Consideration (as defined below) in immediately

                      
        available funds by wire transfer to an account or accounts specified, in
        writing, by Seller. The “Additional Working Capital Consideration” means the
        amount by which the

                      
        Net Working Capital reflected on the Final Closing Balance Sheet is at a
        deficit
        less than five hundred twenty five thousand dollars ($525,000).

       

                                 
        (ii)      In
        the
        event that the Net Working Capital reflected on the Final Closing Balance
        Sheet
        is at a deficit in excess of five
        hundred twenty five thousand

                      
        dollars ($525,000),then
        Sellers shall be obligated to pay Madden on the Adjustment Payment Date the
        Working Capital Refund (as defined below) in immediately available

                      
        funds by wire transfer to an account specified, in writing, by Madden. The
        “Working 

       

       

      
        
          8

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                      
        Capital Refund” means the amount by which the Net Working Capital on the Final
        Closing Balance Sheet is at a deficit in excess of five hundred twenty five
        thousand dollars

                      
        ($525,000).

       

      2.4  Earn-Out
        Payment.
        Madden
        shall also pay to Sellers certain payments (collectively, the “Earn-Out
        Payment”) in an amount, and pursuant to the terms, set forth in the Earn-Out
        Agreement.

       

      ARTICLE
        III

       

      Closing

       

      3.1  Closing
        Date.
        Subject
        to the fulfillment or waiver by the beneficiary thereof of the agreements
        and
        conditions precedent set forth in Articles IX and X, the closing of the
        transactions contemplated hereby (the “Closing”) shall be held two (2) Business
        Days after the satisfaction or waiver of the conditions to closing set forth
        in
        Articles IX and X of this Agreement, at 10:00 a.m., prevailing local time,
        at the offices of Kramer Levin Naftalis & Frankel LLP, 1177 Avenue of the
        Americas, New York, New York 10036, or on such other date or at such other
        time
        or place as may be agreed to in writing by Madden and the Seller Representative.
        The date on which the Closing actually occurs is herein referred to as the
        “Closing Date.”

       

      3.2  Certain
        Actions at Closing.
        At the
        Closing:

       

      (a)  Sellers
        shall deliver, or cause to be delivered, to Madden certificates representing
        the
        Company Interests (as appropriate), accompanied by transfer powers duly endorsed
        in blank or duly executed instruments of transfer;

       

      (b)  to
        the
        extent not previously executed and/or delivered, Sellers shall execute and/or
        deliver, or cause to be executed and/or delivered to Madden each of the
        Transaction Documents and any other document, certificate or other instrument
        required to be executed and/or delivered by Sellers and/or the Company under
        this Agreement at or prior to the Closing;

       

      (c)  to
        the
        extent not previously executed and/or delivered, Madden shall execute and/or
        deliver to Sellers each of the Transaction Documents and any other document,
        certificate or other instrument required to be executed and/or delivered
        by
        Madden under this Agreement at or prior to the Closing; and

       

      (d)  Sellers
        shall be liable for and shall pay all stamp, transfer and similar Taxes,
        direct
        or indirect, if any, attributable to the transfer of the Company Interests
        and,
        in connection therewith, shall affix any necessary transfer stamps to the
        certificates (or transfer powers) evidencing the Company Interests.

       

       

      
        
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      ARTICLE
        IV

       

      Representations
        and Warranties of Sellers

       

      Sellers
        hereby represent and warrant, jointly and severally, to Madden as
        follows:

       

      4.1  Organization
        and Good Standing.
        The
        Company is a limited liability company duly organized, validly existing and
        in
        good standing under the laws of the State of Connecticut. The Company has
        full
        power and authority to own or lease its properties and to carry on its business
        as it is now being conducted. The Company is duly qualified to transact business
        and is in good standing in each jurisdiction wherein the nature of the business
        done or the property owned, leased or operated by it requires such
        qualification, except where the failure to be so qualified would not be
        reasonably likely to have a Material Adverse Effect. Copies of the
        organizational documents (including, as applicable, certificate of formation,
        articles of organization or operating agreement) of the Company have been
        delivered to Madden and are true, complete and accurate in all respects.
        The
        ownership interest register, ownership interest transfer records, minutes
        and
        records of the Company have been made available to Madden and are true, complete
        and accurate in all respects. The Company has no direct or indirect subsidiaries
        and does not own any ownership or equity interest in any Person.

       

      4.2  Capitalization.

       

      (a)  The
        capitalization of the Company is as set forth in Section 2.1 of the Disclosure
        Schedule. The Company Interests are all of the issued and outstanding ownership
        interests of the Company, and have been duly authorized and are validly issued
        and outstanding, fully paid and non-assessable. Each Seller represents that
        as
        to himself or herself, he/she owns, beneficially and of record, and has valid
        and marketable title to, and the right to transfer to Madden, all of the
        Company
        Interests set forth opposite such Seller’s name in Section 2.1 of the Disclosure
        Schedule, free and clear of any and all Encumbrances. At the Closing, Madden
        will own, and will have valid and marketable title to, all of the issued
        and
        outstanding ownership interests of the Company, free and clear of any and
        all
        Encumbrances. No Person other than Madden has any written or oral agreement,
        arrangement, understanding or option for, or any right or privilege (whether
        by
        law, preemption or contract) that is or is capable of becoming an agreement,
        arrangement, understanding or option for, the purchase or acquisition from
        the
        Company or any Person of, any ownership interests or other securities of
        the
        Company.

       

      (b)  There
        are
        no outstanding or authorized options, warrants, purchase agreements,
        participation agreements, subscription rights, conversion rights, exchange
        rights or other securities, contracts, arrangements, understanding or
        commitments that could require the Company to issue, sell or otherwise cause
        to
        become outstanding any of its authorized but unissued ownership interests
        or any
        securities convertible into, exchangeable for or carrying a right or option
        to
        purchase ownership interests, or to create, authorize, issue, sell or otherwise
        cause to become outstanding any new class of ownership interests. None of
        the
        issued and outstanding ownership interests of the Company have been issued
        in
        violation of any rights of any Person or in violation of the registration
        requirements of any applicable jurisdiction’s securities Laws.

       

       

      
        
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      4.3  Authorization.
        Each
        Seller has full legal capacity and authority to enter into and carry out
        such
        Seller’s obligations under this Agreement and the other applicable Transaction
        Documents, and to consummate the transactions contemplated hereby and thereby,
        and is not under any prohibition or restriction, contractual, statutory or
        otherwise, against doing so. This Agreement and the Earn-Out Agreement have
        been
        duly executed and delivered by Sellers and, assuming due authorization,
        execution and delivery by Madden, constitute legal, valid and binding
        obligations of Sellers, enforceable against Sellers in accordance with their
        respective terms, except as such enforceability may be limited by applicable
        bankruptcy, insolvency, moratorium or other laws affecting the rights of
        creditors generally and by general principles of equity.

       

      4.4  No
        Conflicts.
        Except
        as set forth in Section 4.4 of the Disclosure Schedule, neither the execution
        and delivery by Sellers or the Company of this Agreement or any of the
        Transaction Documents to which Sellers or the Company are a party, nor the
        consummation of the transactions contemplated hereby or thereby, will, with
        or
        without notice or lapse of time or both, directly or indirectly, (i) conflict
        with or violate the organizational documents (including, as applicable, articles
        of organization, certificate of formation, operating agreement or articles
        of
        association) of or resolutions adopted by the directors, members, or
        equityholders of the Company, (ii) conflict with, violate, result in the
        breach of any term of, result in the acceleration of performance of any
        obligation under, constitute a default under, give any Person the right to
        cancel, terminate or modify, or require the consent or approval of or any
        notice
        to or filing with any third party or Governmental Body, (x) any note, mortgage,
        deed of trust, lease or other agreement or instrument to which Sellers or
        the
        Company is a party or by which Sellers or the Company or any of their respective
        properties or assets are bound, or (y) any Law, order, decree, writ, injunction,
        or License of any Governmental Body having jurisdiction over Sellers or the
        Company or any of their respective properties or assets, or (iii) create an
        Encumbrance on any of the ownership interests or properties or assets of
        the
        Company.

       

      4.5  Financial
        Statements; Undisclosed Liabilities.

       

      (a)  Except
        as
        set forth in Section 4.5(a) of the Disclosure Schedule, the Financial Statements
        (true, complete and accurate copies of which have been previously delivered
        to
        Madden) have been prepared from the books and records of the Company in
        accordance with GAAP throughout the periods covered thereby and fairly present
        the financial condition of the Company as at the date thereof. 

       

      (b)  As
        of the
        date of the Balance Sheet, other than those (i) set forth in Section 4.5(b)
        of
        the Disclosure Schedule or (ii) which are reflected or reserved against on
        the
        Balance Sheet the Company had no liabilities, debts or obligations (whether
        absolute, accrued, contingent or otherwise). Since the date of the Balance
        Sheet, the Company (i) has conducted its business in the ordinary course
        and in
        a commercially reasonable manner, (ii) has not incurred any liabilities,
        debts
        or obligations (whether absolute, accrued, contingent or otherwise), except
        for
        liabilities incurred in the ordinary course of business and in a commercially
        reasonable manner, which such liabilities are consistent with the
        representations and warranties contained in this Agreement and (iii)
        notwithstanding anything to the contrary in clause (i) or (ii) of this sentence
        and except as set forth in Section 4.5(b) of the Disclosure Schedule, has
        not
        incurred any liability, debt or obligation (whether absolute, accrued,
        contingent or otherwise) to or of any 

       

       

      
        
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      Affiliated
        Person or made any Affiliate Loans. Since the date of the Balance Sheet,
        there
        has been no Material Adverse Effect, and no event has occurred or facts or
        circumstances exist which would be reasonably likely to result in a Material
        Adverse Effect.

       

      4.6  Taxes.

       

      (a)  Except
        as
        set forth in Section 4.6(a) of the Disclosure Schedule, the Company has timely
        filed with the appropriate taxing authorities all Returns required to be
        filed
        by it (taking into account any extension of time to file). The information
        on
        such Returns is complete and accurate. The Company has paid, or, where payment
        is not yet due, has established an adequate accrual on the Balance Sheet,
        in
        accordance with GAAP for the payment of all Taxes (whether or not shown on
        any
        Return) due and payable. There are no liens for Taxes (other than for Permitted
        Encumbrances) upon the properties or assets of the Company.

       

      (b)  Except
        as
        set forth in Section 4.6(b) of the Disclosure Schedule, no unpaid and unresolved
        deficiencies for Taxes have been claimed, proposed or assessed, in each case
        in
        writing, by any taxing authority or other Governmental Body with respect
        to the
        Company for any Pre-Closing Period, and there are no pending or, to the
        Knowledge of Sellers or the Company, threatened audits, investigations, claims
        or assessments for or relating to any liability in respect of Taxes of or
        with respect to the Company. The Company has not requested any extension
        of time
        within which to file any currently unfiled Returns in respect of any Taxes
        and
        no waiver or extension of a statutory period of limitations for the assessment
        of any Taxes is in effect with respect to the Company.

       

      (c)  Except
        as
        set forth in Section 4.6(c) of the Disclosure Schedule, (i) the Company has
        made
        or will make provision for all Taxes payable by them with respect to any
        Pre-Closing Period which have not been paid prior to the Closing Date which
        amounts will be reflected on the Balance Sheet; (ii) the provisions for Taxes
        with respect to the Company for the Pre-Closing Period (excluding any reserve
        for deferred Taxes established to reflect timing differences between book
        and
        Tax income) are adequate to cover all Taxes with respect to such period;
        (iii) the Company has withheld and paid all Taxes required to have been
        withheld and paid in connection with amounts paid or owing to any employee,
        independent contractor, creditor, shareholder or other third party; (iv)
        all
        material elections with respect to Taxes affecting the Company as of the
        date
        hereof are set forth in Section 4.6(c)(iv) of the Disclosure Schedule;
        (v) the Company is not subject to the Tax imposed on certain built-in gains
        under Section 1374 of the Code or the Tax imposed under Section 1375 of the
        Code
        or any corresponding provisions of applicable state law; (vi) there are no
        advance tax rulings in respect of any Tax issued to or pending between or
        with
        respect to the Company and any taxing authority or any other written agreements
        with a Tax authority with regard to any Tax; (vii) the tax year end for the
        Company is December 31; (viii) the Company is not liable for Taxes of any
        other Person, and is neither currently under any contractual obligation to
        or a
        party to any tax sharing agreement nor any other agreement providing for
        payments by the Company with respect to Taxes; (ix) the Company is not a
        party to any joint venture, partnership or other arrangement or contract
        which
        could be treated as a partnership for income tax purposes; (x) the Company
        has
        not granted any Person a power of attorney with respect to Taxes; (xi) the
        Company has not entered into any sale leaseback or any leveraged lease
        transaction; (xii) the Company, as of the Closing Date, has not agreed or
        will
        be required, as a result of a change in method of accounting

       

       

      
        
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      or
        otherwise, to include any adjustment under Section 481 of the Code (or any
        corresponding provision of state, local, or foreign law) in taxable income
        for
        any period after the Closing Date; (xiii) Section 4.6(c)(xiii) of the Disclosure
        Schedule contains a list of all jurisdictions in which the Company is required
        to file any Return, and no written claim has ever been made by a taxing
        authority in a jurisdiction where the Company does not currently file Returns
        that the Company is or may be subject to taxation by that jurisdiction; (xiv)
        the Company has not filed or been included in a combined, consolidated or
        unitary return (or substantial equivalent thereof) of any Person; (xv) the
        Company is not obligated under any agreement with respect to industrial
        development bonds or other obligations with respect to which the excludability
        from gross income of the holder for Federal or state income tax purposes
        could
        be affected by the transactions contemplated hereunder; (xvi) the Company
        has
        not engaged in any transaction for which its participation is required to
        be
        disclosed under Treasury Regulation § 1.6011.4; (xvii) the Company is not a
“consenting corporation” under Section 341(f) of the Code or any corresponding
        provision of Law; (xviii) the Company has not since its inception been a
        party
        to a transaction intended to qualify under Section 355 of the Code or under
        so
        much of Section 356 of the Code as relates to Section 355 of the Code; and
        (xix)
        the Company has not made an election and is not required to treat any of
        its
        assets as owned by another Person for Federal income tax purposes or as
        tax-exempt bond financed property or tax-exempt use property within the meaning
        of Section 168 of the Code (or any corresponding provision of Law).

       

      4.7  Title
        to Properties; Absence of Encumbrances.

       

      (a)  Section
        4.7(a)
        of the
        Disclosure Schedule contains a complete list by address of all real property
        owned, leased, operated or used by the Company (collectively, the “Real
        Property”), indicating the nature of the interest of the Company therein
        (collectively, the “Real Property Interests”). No litigation, condemnation,
        expropriation, eminent domain or similar proceeding affecting all or any
        portion
        of any Real Property is pending or to the Knowledge of Sellers of the Company
        threatened.
        The
        Company has furnished to Madden true, complete and accurate copies of all
        documents relating to the Real Property Interests including, without limitation,
        all leases, licenses, deeds, evidences of ownership, evidences of possession,
        amendments, estoppel certificates, subordination, non disturbance and attornment
        agreements and assignment and/or assumption agreements (collectively, the
“Real
        Property Documents”), including rent rolls and operating expense statements (if
        applicable). There are no oral agreements with respect to any Real Property
        Interest. No Real Property Document requires that the consent or approval
        of any
        third party be obtained in order to consummate the transactions contemplated
        by
        this Agreement, nor do such transactions violate any Real Property Document
        or
        cause the Company to be in default under any Real Property Document. Neither
        Sellers nor the Company have given or received any notice of any notice of
        default under any Real Property Document, and neither Sellers nor the Company
        are in default thereunder. No option to extend, renew, surrender, terminate
        or
        purchase arising under any Real Property Document has been exercised. No
        guaranty or other undertaking with respect to the performance of any obligation
        arising under any Real Property Document has been delivered by the Company.
        All
        service, management, leasing and other similar agreements with respect to
        any
        Real Property Interest are terminable upon no more than thirty (30) days’ prior
        notice.

       

      (b)  Except
        as
        set forth in Section 4.7(b) of the Disclosure Schedule, the Company has good,
        marketable and insurable (in the case of Real Property Interests) title to
        all

       

       

      
        
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      of
        the
        properties and assets, real and personal, tangible and intangible, it owns
        or
        purports to own, including those reflected on its books and records and on
        the
        Balance Sheet (except those sold or disposed of subsequent to the date thereof
        in the ordinary course of business and in a commercially reasonable manner),
        free and clear of all Encumbrances, except for Permitted Encumbrances. Except
        as
        set forth in Section 4.7(b) of the Disclosure Schedule, the Company has a
        valid
        and enforceable fee, leasehold, license or other interest in all of the other
        properties and assets, real or personal, tangible or intangible, which are
        used
        in the operation of the business of the Company, free and clear of all
        Encumbrances, except for Permitted Encumbrances. Except as set forth in Section
        4.7(b) of the Disclosure Schedule, none of the properties or assets owned,
        leased, operated or used by the Company is subject to any lease, sublease,
        license sublicense or other agreement granting to any other Person any right
        to
        the use, occupancy or enjoyment of such property or any portion thereof and
        no leasehold interest of the Company is proposed to be surrendered or
        terminated. 

       

      (c)  “Permitted
        Encumbrances” means (i) liens for Taxes not yet due and payable or which are
        being diligently contested in good faith by appropriate proceedings and as
        to
        which appropriate reserves (to the extent required by GAAP) have been
        established in the books and records of the Company; (ii) mechanics’,
        materialmen’s, carriers’, warehousemen’s, landlord’s and similar liens securing
        obligations not yet delinquent or which are being diligently contested in
        good
        faith by appropriate proceedings and as to which appropriate reserves (to
        the
        extent required by GAAP) have been established in the books and records of
        the
        Company.

       

      (d)  With
        respect to each lease of Real Property, except as set forth in Section 4.7(d)
        of
        the Disclosure Schedule: (i) all base rents, percentage rents (if owing in
        accordance with the terms of the applicable lease) and additional rents have
        been paid, (ii) no waiver, indulgence or postponement of the lessee’s
        obligations has been granted by the lessor, (iii) there exists no event of
        default or event, occurrence, condition or act which, with the giving of
        notice,
        the lapse of time or the happening of any other event or condition, would
        become
        a default under the lease, and (iv) all of the covenants to be performed
        by any
        other party under the lease have been fully performed. Section 4.7(a) of
        the
        Disclosure Schedule contains a list of all of the leases of Real Property
        setting out, in respect of each such lease, a description of the leased premises
        by shopping centre or location. Section 4.7(d) of the Disclosure Schedule
        identifies the leases of Real Property that contain rent escalation provisions
        which may be triggered as a result of the change of control of the Company
        as
        tenant thereunder. The present use of each lease of Real Property is permitted
        under the terms of such lease.

       

      4.8  Intellectual
        Property.

       

      (a)  Except
        as
        set forth in Section 4.8(a) of the Disclosure Schedule, the Company owns,
        or has
        the valid right to use or license, all Intellectual Property Rights as used
        in
        the Company’s business as presently conducted and as it is expected to be
        conducted as of the Closing (such Intellectual Property Rights hereinafter
        referred to as the “Company IP Rights”). The Company IP Rights are sufficient to
        conduct the Company’s business.

       

      (b)  The
        execution, delivery and performance of this Agreement and the consummation
        of
        the transactions contemplated hereby will not (i) constitute a breach of
        any
        instrument or agreement governing any Company IP Rights (the “Company IP Rights

       

       

      
        
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      Agreements”),
        (ii) cause the forfeiture or termination or give rise to a right of forfeiture
        or termination of any Company IP Rights, or (iii) impair the right of the
        Company or, after the Closing, Madden, to own, use or license any Company
        IP
        Rights or portion thereof on the same terms as applied to Sellers prior to
        the
        Closing Date.

       

      (c)  Except
        as
        set forth in Section 4.8(c) of the Disclosure Schedule, there are no royalties,
        honoraria, fees or other payments payable by the Company to any Person for
        the
        use by the Company of any Company IP Rights.

       

      (d)  Except
        as
        set forth in Section 4.8(d) of the Disclosure Schedule, (i) the conduct of
        the
        business of the Company as presently conducted, does not and will not violate
        or
        infringe any Intellectual Property Rights of any other Person, and (ii) there
        is
        no pending or, to the Knowledge of Sellers and the Company, threatened claim
        or
        litigation contesting the validity, ownership, registrability, right to use
        or
        right to license any Company IP Rights, nor is there any valid or reasonable
        basis for any such claim, nor has the Company or any Seller received any
        notice
        asserting that any Company IP Rights or the proposed use, registration or
        license thereof infringes or otherwise violates, or will infringe or otherwise
        violate the rights of such Person.

       

      (e)  Except
        as
        set forth in Section 4.8(e)(i) of the Disclosure Schedule, the Company has
        taken
        all reasonable and practicable steps to safeguard and maintain the secrecy
        and
        confidentiality of its trade secrets. Sellers have delivered to Madden true,
        complete and accurate copies of all agreements that any directors, officers,
        employees, contractors or consultants of the Company have executed regarding
        (i)
        the protection of proprietary information, and (ii) the assignment to the
        Company of all Intellectual Property Rights arising from the services performed
        for the Company by such persons. Except as set forth in Section 4.8(e)(ii)
        of
        the Disclosure Schedule, no current or prior directors, officers, employees,
        consultants or contractors of the Company claim or have a right to claim
        an
        ownership interest in any Company IP Rights.

       

      (f)  Section
        4.8(f)
        of the
        Disclosure Schedule separately lists (i) all licenses and other agreements
        under
        which the Company or any Person granted rights by the Company uses any Company
        IP Rights, and (ii) all licenses and other agreements under which the Company
        or
        any Person granted rights by the Company uses any Intellectual Property of
        any
        other Person. All such licenses and other agreements are valid, enforceable,
        in
        full force and effect, and without breach and will continue to be so without
        change in any provision or term thereof after the Closing.

       

      (g)  Except
        as
        set forth in Section 4.8(g) of the Disclosure Schedule, neither Sellers,
        nor the
        Company has (i) sent any notice, made any claim, or filed any action asserting
        that any Person’s use of, or application for, any Intellectual Property Rights
        infringes upon or otherwise violates any Company IP Rights, and (ii) no Person
        is infringing upon or otherwise violating any Company IP Rights, or has filed
        to
        register any Intellectual Property Rights which, if used by any third party,
        would infringe upon or otherwise violate the Company IP Rights.

       

      (h)  Section
        4.8(h)
        of the
        Disclosure Schedule sets forth a list of all patents, trademarks, service
        marks,
        trade dress, copyrights, slogans, trade names, and internet domain names
        comprising the Company IP Rights, including without limitation all registrations
        and 

       

       

      
        
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      applications
        for any of the foregoing owned, licensed, used or filed by or on behalf of
        the
        Company anywhere in the world. For each trademark listed in Section 4.8(h)
        of
        the Disclosure Schedule, identify the trademark, the jurisdiction, the
        registration/application number, the registrant/applicant, the class of
        goods/services, the status (including any rejections and the basis therefore),
        and the principal terms of any license governing any such trademark. All
        applications, registrations and licenses listed in Section 4.8(h) of the
        Disclosure Schedule, unless otherwise indicated, are in full force and effect
        and have not been cancelled, expired, rejected or abandoned. Except as set
        forth
        in Section 4.8(d) of the Disclosure Schedule, there is no pending, existing
        or,
        to the Knowledge of Sellers and the Company, threatened opposition,
        interference, cancellation, proceeding or other legal or governmental proceeding
        before any court or Governmental Body against or involving the applications
        or
        registrations listed in Section 4.8(h) of the Disclosure Schedule.

       

      4.9  Contracts
        and Agreements.

       

      (a)  Section
        4.9(a)
        of the
        Disclosure Schedule sets forth a true, complete and accurate list of each
        of the
        following contracts, agreements, arrangements, instruments or understandings,
        whether oral or written, to which the Company is a party or by which the
        Company
        or its assets or properties are bound, except for purchase orders entered
        into
        by the Company with customers, contractors, manufactures and suppliers in
        the
        ordinary course of business and on forms previously supplied to Madden
        (collectively, the “Contracts”):

       

      (i)  each
        employment or other similar agreement providing for compensation, severance
        or a
        fixed term of employment in respect of services performed by

                      
        any employees of the Company;

       

      (ii)     each
        management, consulting, subcontractor, retainer or other similar type of
        agreement under which services are provided by any Person to the

                      
        Company in excess of $25,000
        per
        annum
        or $50,000
        in
        the aggregate;

       

      (iii)    each
        other agreement or commitment for services and supplies provided by any other
        Person to the Company with a term of more than one (1) year or

                      
        requiring payments of more than
        $25,000 per annum or $50,000 in the aggregate;

       

                         
        (iv)    each
        agreement or commitment for the supply of products or services by the Company
        to
        any other Person with a term of more than one (1) year (other

                      
        than those that are terminable upon not more than thirty (30) days’ notice by
        the Company without penalty) or involving payments of more than $25,000 per
        annum or $50,000

                      
        in the aggregate;

       

                                 
        (v)     each
        agreement that restricts in any manner the operation of the business of the
        Company as presently conducted, including each agreement that

                      
        restricts the ability of the Company to conduct business in any geographic
        or
        product market, buy or sell particular goods or services, buy or sell goods
        or
        services from any

                     
        other Person or solicit customers, employees or other service
        providers;

       

       

      
        
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        (vi)    each
        agreement with an Affiliated Person, or, to the Knowledge of Sellers and
        the
        Company, with any entity which an officer or director of the
        Company

                      
        holds an interest;

       

                                                 
        (vii)   each
        lease (as lessor, lessee, sublessor or sublessee) of any real
        property;

       

                                                
        (viii)   each
        lease (as lessor, lessee, sublessor or sublessee) of any tangible personal
        property requiring payment during its term or any extension or
        renewal

                     
        thereof in excess of $25,000;

       

                         
        (ix)     each
        license (as licensor, licensee, sublicensor or sublicensee) of any Intellectual
        Property Rights (other than licenses of commercially available,

                      
        “packaged, off the shelf,” shrink-wrap or click-through computer
        software);

       

      (x)     
        each
        agreement under which any money has been or may be borrowed or loaned, or
        any
        note, bond, factoring agreement, indenture or other evidence of

                      
        indebtedness has been  issued
        or assumed, and each guaranty (including “take-or-pay” and “keepwell”
agreements) of any evidence of indebtedness or other obligation, or

                      
        of the net worth, of any Person;

       

                                                 
        (xi)     each
        mortgage agreement, deed of trust, security agreement, purchase money agreement,
        conditional sales contract or capital lease;

       

                                 
        (xii)    each
        partnership, joint venture or similar agreement;

       

                                
        (xiii)    each
        agreement relating to ownership interests (or other securities, as applicable)
        of the Company, including operating agreements, member- or

                      
        stockholder agreements, voting agreements, and any agreements granting
        preferential rights to acquire ownership interests (or other securities,
        as
        applicable) of the Company

                      
        or containing restrictions with respect to the payment of dividends or other
        distributions in respect of the ownership interests or other securities of
        the
        Company;

       

                                                
        (xiv)    each
        agreement or commitment to make unpaid capital expenditures in excess of
        $25,000;

       

                                                
        (xv)     each
        agreement containing a change of control provision;

       

                                                
        (xvi)    each
        agreement or other arrangement providing for the development of software
        for, or
        license of software (other than off-the-shelf, shrink-wrap, or
        click-

                      
        through software applications) or Intellectual Property Rights to, the Company,
        which software or Intellectual Property Rights are used or incorporated in
        any
        of the Company

                      
        Products, including rights of publicity;

       

                                                
        (xvii)   each
        agreement with respect to any Company IP Rights;

       

                                                
        (xviii)  each
        agreement or arrangement with respect to advertising (including co-op
        advertising) for the Company or any of its services;

       

       

      
        
          17

        

        
          
          

          
            

          

        

        
          
          

        

      

       

                                                 
        (xix)   each
        agreement that obligates the Company to indemnify a third party;
        and

       

                                                 
        (xx)    each
        other agreement (or group of agreements) having an indefinite term or a fixed
        term of more than one (1) year (other than those that are
        terminable

                      
        upon not more than thirty (30)
        days’ notice by the Company without penalty), or requiring aggregate payments by
        the Company in excess of $25,000 per year or the loss of

                      
        which could reasonably be expected to have, directly or indirectly, individually
        or in the aggregate, a Material Adverse Effect.

       

      Complete
        copies of all written (and summaries of all oral) Contracts required to be
        disclosed pursuant to this Section 4.9(a) have been previously delivered
        to
        Madden.

       

      (b)  The
        Contracts are legal, valid, binding and in full force and effect and are
        enforceable by the Company in accordance with their respective terms, except
        as
        such enforceability may be limited by bankruptcy, insolvency, moratorium
        and
        other similar laws affecting creditors’ rights generally and by general
        principles of equity. Except as set forth in Section 4.9(b) of the Disclosure
        Schedule, the Company is not (with or without the lapse of time or the giving
        of
        notice, or both) in breach of or in default under any of the Contracts, and,
        to
        the Knowledge of Sellers and the Company, no other party to any of the Contracts
        is (with or without the lapse of time or the giving of notice, or both) in
        breach of or in default under any of the Contracts.

       

      4.10    
        Insurance.
        All
        insurance policies currently maintained by the Company, under which the Company
        is insured are accurately listed in Section 4.10 of the Disclosure Schedule
        and
        complete copies of such policies have been previously delivered to Madden.
        Each
        such insurance policy is in full force and effect (and to the Knowledge of
        Sellers and the Company, free from any presently exercisable right of
        termination on the part of the insurance company issuing such policy prior
        to
        the expiration of the term of such policy) and all premiums due and payable
        in
        respect thereof have been paid. There are no pending claims with respect
        to the
        Company or its properties or assets under any such insurance policy. The
        Company
        has not received notice of cancellation or non-renewal of any such policy.
        The
        transactions contemplated by this Agreement will not give rise to a right
        of
        termination of any such policy by the insurance company issuing the same
        prior
        to the expiration of the term of such policy.

       

      4.11    
        Litigation.
        Except
        as set forth in Section 4.11 of the Disclosure Schedule, and except with
        respect
        to environmental matters (which are addressed in Section 4.16 of this
        Agreement), there is no lawsuit, governmental investigation or legal,
        administrative or arbitration action or proceeding pending or, to the Knowledge
        of Sellers and the Company, threatened against any Seller, the Company or
        any of
        their properties or assets, or any director, officer or employee of the Company,
        in his or her capacity as such, and the Company is not identified as a party
        subject to any restrictions or limitations under any judgment, order or decree
        of any Governmental Body.

       

      4.12    
        Condition
        and Sufficiency of Assets.
        The
        properties and assets owned, leased, operated or used by the Company in the
        conduct or operation of its business are in good operating condition and
        repair
        and are suitable for the purposes for which they are used and are 

       

       

      
        
          18

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      all
        of
        the properties and assets necessary for the conduct and operation of the
        business of the Company as currently conducted. The Company is the sole owners
        of all material properties and assets, including trademarks, utilized in
        the
        conduct or operation of the business of the Company, except for properties
        and
        assets leased or licensed to the Company pursuant to Contracts listed in
        Section
        4.9(a) of the Disclosure Schedule, to which the Company has a valid lease
        or
        license. 

       

      4.13    
        Compliance
        with Law; Licenses.

       

      (a)  Except
        as
        set forth in Section 4.13(a) of the Disclosure Schedule, the Company is and
        has
        been in compliance in all material respects with all applicable Laws, orders
        and
        decrees governing the conduct or operation of its business, and with all
        of its
        Licenses. Neither Sellers nor the Company has received any notice of any
        violation of any such Law, order, decree or License, and to the Knowledge
        of
        Sellers and the Company, no such violation has been threatened.

       

      (b)  All
        material governmental licenses, approvals, authorizations, registrations,
        consents, orders, certificates, decrees, franchises and permits (collectively,
        “Licenses”) of the Company, are listed in Section 4.13(b) of the Disclosure
        Schedule. Such Licenses are all of the material Licenses necessary for the
        Company’s ownership and operation of its properties and assets, manufacturing,
        marketing, sale and distribution of the Company Products by the Company and
        the
        conduct and operation of its business. All such Licenses are in full force
        and
        effect; and no proceeding is pending or, to the Knowledge of Sellers and
        the
        Company, threatened, seeking the revocation or limitation of any such License.
        To the Knowledge of Sellers and the Company, there exists no state of facts
        which could cause any Governmental Body to limit, revoke or fail to renew
        any
        License related to or in connection with any business as currently conducted
        or
        operated by the Company.

       

      4.14    
        Employees.

       

      (a)  Section
        4.14(a) of the Disclosure Schedule sets forth, as of April
        30, 2007,
        the
        total number of employees of the Company and indicates the jurisdiction in
        which
        each such employee is employed. The Company generally has good relationships
        with its employees.

       

      (b)  Except
        as
        set forth in Section 4.14(b) of the Disclosure Schedule, the Company (i)
        is and
        has been in compliance with all applicable Laws (including any legal obligation
        to engage in affirmative action), agreements and contracts relating to former,
        current, and prospective employees, independent contractors and “leased
        employees” (within the meaning of Section 414(n) of the Code or other similar
        law) of the Company, workplace practices, and terms and conditions of employment
        with the Company or retention by the Company, including all such Laws,
        agreements and contracts relating to wages, hours, collective bargaining,
        employment discrimination, human rights, immigration, disability, civil rights,
        fair labor standards, occupational safety and health, workers’ compensation, pay
        equity, termination of employment or wrongful discharge and violation of
        the
        potential rights of such former, current, and prospective employees, independent
        contractors and leased employees, and (ii) has timely prepared and filed
        all
        appropriate forms (including U.S. Immigration and Naturalization Service
        Form
        I-9) required by any relevant Law or Governmental Body. The Company is not
        engaged in any unfair labor practice.

       

       

      
        
          19

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
         

         

        (c)  Other
          than as set forth on Section 4.14(c) of the Disclosure Schedule, no collective
          bargaining agreement with respect to the business of the Company is currently
          in
          effect or, to the Knowledge of Sellers and the Company, being
          negotiated.  The Company has no obligation to negotiate any other
          collective bargaining agreement, and, to the Knowledge of Sellers and the
          Company, no employees of the Company that are not already so covered desire
          to
          be covered by a collective bargaining agreement and  there are no
          threatened or pending union organizing efforts in connection
          therewith.

         

        (d)  No
          strike, slowdown or work stoppage is occurring or has occurred since the
          inception of the Company nor, to the Knowledge of Sellers and the Company,
          is
          threatened or has been threatened within the last year, with respect to
          the
          employees of the Company.

         

        (e)  There
          is
          no representation or certification claim or petition pending before any
          labor
          agency or board (including the U.S. National Labor Relations Board) of
          which the
          Company or any Seller has been notified and, to the Knowledge of Sellers
          and the
          Company, no question concerning representation has been raised or threatened
          respecting the employees of the Company.  No union or employee
          bargaining agency has applied or threatened to apply to any labor agency
          or
          board to have the Company declared a common, related or successor employer
          pursuant to any applicable Laws.

         

        (f)  Except
          as
          set forth in Section 4.14(f) of the Disclosure Schedule, no notice has
          been
          received by the Company or any Seller of any complaint or proceeding filed
          against the Company claiming that the Company has or may have violated
          any
          applicable employment standards, human rights or other labor legislation
          or
          employment Laws, or of any complaints or proceedings of any kind involving
          the
          Company or, to the Knowledge of Sellers and the Company, against any of
          the
          employees of the Company or threatened to be filed against the Company
          before
          any agency, labor relations board or Governmental Body (including, but
          not
          limited to, the U.S. National Labor Relations Board and U.S. Equal Employment
          Opportunity Commission).  No notice has been received by the Company
          or any Seller of the intent of any agency or other Governmental Body responsible
          for the enforcement of labor or employment Laws to conduct an investigation
          of
          the Company, and no such investigation is in progress.

         

        (g)  There
          are
          no outstanding orders or charges against the Company under any occupational
          health or safety legislation and, to the Knowledge of Sellers and the Company,
          none have been threatened.  All material levies, assessments,
          penalties, fines, liens and surcharges made against the Company pursuant
          to all
          applicable workers compensation legislation as of the date of the Balance
          Sheet
          have been paid or have been reserved for or accrued on the Balance Sheet
          by the
          Company and the Company has not as of the Closing Date, been reassessed
          under
          any such legislation and there are no claims or potential claims which
          may
          adversely affect the accident cost experience of the Company.  To the
          Knowledge of Sellers and the Company, no audit of the Company is being
          performed
          or threatened pursuant to any workers’ compensation
          legislation.  There have been no material levies, assessments or
          penalties imposed or, to the Knowledge of Sellers and the Company, threatened
          against the Company since the date of the Balance Sheet.

         

        (h)  A
          schedule has been delivered to Madden setting forth a true, complete and
          accurate list, as of April 30, 2007, of all of the employees, officers,
          independent contractors

         

         

        
          
            20

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        and
          consultants of the Company, and with respect to each such employee, officer,
          independent contractor and consultant:  (i) the total compensation
          (including, without limitation, salary, bonuses, incentive compensation,
          fees or
          other remuneration) received by such individual in the immediately preceding
          fiscal year of the Company, (ii) such individual’s current compensation,
          (iii) such individual’s current title, (iv) the number of years of
          continuous service of such employee or officer and the period of service
          of such
          independent contractor or consultant with the Company, and (v) outstanding
          loans
          to such individuals.  Amounts have been withheld by the Company from
          its employees for all periods in compliance with applicable
          law.  Federal, state, local and foreign returns, as required by
          applicable law, have been filed by the Company for all periods for which
          returns
          were due with respect to employee income tax withholding, social security,
          employment insurance and unemployment taxes and employer health taxes or
          premiums and the amounts shown thereof to be due and payable have been
          paid,
          together with any interest and penalties that are due as a result of the
          failure
          by the Company to file such returns when due and pay when due the amounts
          shown
          thereon to be due.  Section 4.14(h) of the Disclosure Schedule
          accurately sets forth a complete and correct list of all employment, management,
          consulting or other agreements with any Persons retained by the Company
          as
          employees, “leased employees” (within the meaning of Section 414(n) or (o) of
          the Code or other similar Law), management or other independent consultants,
          sales representatives, sales or commission agents and distributors, true,
          complete and accurate copies of which have been delivered to
          Madden.

         

        (i)       
          Section
          4.14(i) of the Disclosure Schedule accurately sets forth all severance
          or
          continuing payment obligations (either as part of a plan or otherwise)
          of the
          Company, as well as all unpaid severance or continuing payments of any
          kind
          (other than pursuant to a plan or program described in Section 4.15 hereof)
          which are due or claimed in writing to be due from the Company to any Person
          whose employment with the Company was terminated.  The consummation of
          the transactions contemplated hereby, either alone or in combination with
          another event, with respect to each director, officer, employee, independent
          contractor and consultant of the Company, will not result in (A) any payment
          (including, without limitation, severance, unemployment compensation or
          bonus
          payments) becoming due under any Employee Benefit Plan or agreement, (B)
          any
          increase in the amount of compensation, benefits or fees payable to any
          such
          individual or (C) any acceleration of the vesting or timing of payment
          of
          benefits, compensation or fees payable to any such individual.

         

        (j)        Section
          4.14(j) of the Disclosure Schedule accurately sets forth all accrued, but
          unused, vacation time of all employees of the Company as of April 30, 2007
          and
          the policies of the Company with respect thereto.  All amounts due for
          all salary, wages, bonuses, commissions, vacation with pay and other benefits
          have either been paid or are accurately reflected on the Balance
          Sheet.

         

        (k)  Except
          as
          set forth in Section 4.14(h) of the Disclosure Schedule, each employee
          of the
          Company is employed on an at-will basis and the Company has no any written
          or
          oral agreements with any employees which would interfere with the ability
          to
          discharge such employees. To the Knowledge of Sellers and the Company,
          no key
          employee and no group of employees of the Company has any plans to terminate
          or
          modify their status as an employee or employees of the Company (including
          upon
          consummation of the transactions contemplated hereby).

         

         

         

        
          
            21

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        (l)       
          Neither
          any Seller nor the Company has promised, made any written or oral statements
          or
          representations or distributed any written material to, any employees,
          directors, officers, consultants, independent contractors, agents,
          representatives or other personnel of the Company regarding continued (x)
          employment or terms of employment, (y) continued engagement, or (z) continued
          receipt of any particular benefit, with or from the Company subsequent
          to the
          date hereof or the Closing Date.

         

        4.15    
          Employee
          Benefit Plans.

         

        (a)  Section
          4.15(a) of the Disclosure Schedule lists all Employee Benefit
          Plans.  “Employee Benefit Plan” means any “employee benefit plan” as
          defined in Section 3(3) of the Employee Retirement Income Security Act
          of 1974,
          as amended from time to time (“ERISA”), all similar plans maintained outside the
          United States and not required by applicable Law (a “Non-U.S. Plan”) and any
          other plan, policy, program, practice, agreement, understanding or arrangement
          (whether written or oral) providing compensation or other benefits to any
          current or former officer, employee or consultant (or to any dependent
          or
          beneficiary thereof), of the Company or any ERISA Affiliate, which are
          now, or
          within the last six (6) years were, maintained by the Company or any ERISA
          Affiliate, or with respect to which the Company or any ERISA Affiliate
          has or
          may have any liability, including but not limited to any obligation to
          contribute, including all employee pension, profit-sharing, savings, retirement,
          incentive, bonus, deferred compensation, vacation, holiday, cafeteria,
          medical,
          disability, life, accident or other insurance, stock purchase, stock option,
          stock appreciation right, phantom stock, restricted stock or other equity-based
          compensation plans, and any other plans, policies, programs, practices
          or
          arrangements.  “ERISA Affiliate” means any entity (whether or not
          incorporated) other than the Company that, together with the Company, is
          or
          could reasonably be expected to be deemed to be a member of a controlled
          group
          of corporations within the meaning of Section 414(b) of the Code, of a
          group of
          trades or businesses under common control within the meaning of Section
          414(c)
          of the Code.

         

        (b)  Section
          4.15(b) of the Disclosure Schedule sets forth each employment agreement,
          contract or Employee Benefit Plan that is subject to Section 409A of the
          Code
          and any such Employee Benefit Plan has been operated in good faith compliance
          with available treasury guidance since January 1, 2005.

         

        (c)  The
          Company has delivered to Madden true, complete and accurate copies of (i)
          any
          employment or severance agreements and any procedures and policies relating
          to
          the employment of employees of the Company and the use of temporary employees
          and independent contractors by the Company (including written summaries
          of any
          procedures and policies that are unwritten), (ii) plan texts, instruments
          and
          amendments thereto (including written summaries of any unwritten plan or
          amendment) for all Employee Benefit Plans and related trust agreements,
          insurance and other contracts (including policies), summary plan descriptions,
          and summaries of material modifications and material communications distributed
          to the participants of each Employee Benefit Plan (and written summaries
          of any
          other communications that were not written), and (iii) forms or written
          communications explaining employee and related beneficiaries rights under
          Part 6
          of Subtitle B of Title I of ERISA and Section 4980B of the Code (“COBRA”), or
          certifying group health insurance coverage pursuant to Part 7 of Subtitle
          B of
          Title I of ERISA and Chapter 100 of the Code (“HIPAA”).

         

         

         

        
          
            22

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        (d)  Neither
          the Company nor any ERISA Affiliate maintains or contributes to, or has
          ever
          maintained or contributed to, a “pension plan” within the meaning of Section
          3(2) of ERISA.

         

        (e)  The
          Company has never maintained an Employee Benefit Plan that is a severance
          plan
          or program.

         

        (f)       
          No
          event
          has occurred in connection with which the Company or any Employee Benefit
          Plan,
          directly or indirectly, could be subject to any liability under ERISA,
          the Code
          or any other Law or governmental order applicable to any Employee Benefit
          Plan.  Neither the Company nor any ERISA Affiliate has agreed to
          indemnify or is required to indemnify any person against liability incurred
          under, or for a violation or failure to satisfy the requirements of, any
          Law.

         

        (g)  Each
          Employee Benefit Plan may, by its terms, be amended or terminated at any
          time,
          and no additional liabilities to the Company or to such plan will arise
          on
          account of any such termination (including, but not limited to, retrospective
          premium adjustments or early cancellation penalties).

         

        (h)  There
          are
          no actions, claims (other than routine claims for benefits), lawsuits or
          arbitrations pending or threatened with respect to any Employee Benefit
          Plan or
          against any fiduciary of any Employee Benefit Plan, and there are no facts
          that
          could give rise to any such actions, claims, lawsuits or
          arbitrations.

         

        (i)       
          Each
          Employee Benefit Plan which is a “welfare plan” within the meaning of Section
          3(1) of ERISA and which provides health, disability or death benefits is
          fully
          insured.

         

        (j)       
          No
          Employee Benefit Plan provides for post-retirement medical, health, life
          or
          death benefits (through insurance or otherwise) or provides for the continuation
          of such benefits or coverage for any participant or any dependent or beneficiary
          of any participant after such participant’s retirement or other termination of
          employment, except as may be required by COBRA or any other similar
          law.  There has been no communication to any person providing services
          to the Company that that could reasonably be expected to promise or grant
          any
          such person any retiree health or life insurance or any retiree death benefits,
          except as required by COBRA or any other similar law.

         

        (k)  All
          notices, filings and disclosures required by ERISA and the Code (including
          COBRA
          notices and the provision of summary plan descriptions) have been timely
          made.

         

        (l)       
          The
          Company has not proposed, announced or agreed to create any additional
          Employee
          Benefit Plans or to amend or modify any Employee Benefit Plan in a manner
          that
          would (i) cause an increase in benefits under such Employee Benefit Plan,
          (ii)
          cause the creation of new benefits or (iii) change any employee coverage
          that
          would cause an increase in the expense of maintaining such Plan.

         

        (m)     
          The
          consummation of the transactions contemplated by this Agreement, either
          alone or
          in combination with any other event, will not result in (i) any payment
          (including,

         

         

         

        
          
            23

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

         

        without
          limitation, severance, unemployment compensation, bonus payments or otherwise)
          becoming due to any current or former director, officer, employee or consultant
          of the Company, (ii) any increase in the amount of compensation or benefits
          payable in respect of any director, officer, employee or consultant of
          the
          Company, (iii) any acceleration of the vesting or timing of payment of
          any
          benefits or compensation payable in respect of any director, officer, employee
          or consultant of the Company, or (iv) any “parachute payment” under Section
          280G of the Code, whether or not such amount may be considered reasonable
          compensation for personal services rendered.

         

        (n)  There
          are
          no pending or threatened investigations by any Governmental Body involving
          or
          relating to any Employee Benefit Plan or pending claims (except for routine
          claims for benefits payable in the normal operation of the Employee Benefit
          Plans), suits or proceedings against any Employee Benefit Plan, the Company,
          any
          Seller, the trustees of any Seller, or any fiduciary or trustee of any
          Employee
          Benefit Plan, nor, to the Knowledge of Sellers and the Company, are there
          any
          facts that could give rise to any liability in the event of such investigation,
          claim, suit or proceeding.

         

        (o)  No
          condition exists as a result of which the Company could have any material
          liability, whether actual or contingent, including any obligation under
          any
          Employee Benefit Plan, as a result of or arising out of any misclassification
          of
          any person performing services for the Company as an independent contractor
          or
          the employee of a third party rather than as an employee of the
          Company.

         

        (p)  Section
          4.15(p) of the Disclosure Schedule sets forth annual costs for the last
          calendar
          year associated with the maintenance of each Employee Benefit Plan, including,
          without limitation, annual premiums and contributions.

         

        (q)  Section
          4.15(q) of the Disclosure Schedule sets forth a true, complete and accurate
          list
          of (i) all agreements with consultants obligating the Company to make annual
          cash payments in an amount exceeding $25,000; and (ii) all agreements with
          respect to the services of “leased employees” (within the meaning of Section
          414(n) or (o) of the Code) whether or not such “leased employees” participate in
          any of the Employee Benefit Plans.  No individual performs services
          for the Company as an employee of a third party, including any “leased
          employee.”

         

        (r)       
          No
          Employee Benefit Plan that is not a Non-U.S. Plan covers any non-U.S.
          employees.

         

        4.16    
          Environmental
          Matters.

         

        (a)  Except
          as
          set forth in Section 4.16 of the Disclosure Schedule:

         

        (i)  the
          Company is in material compliance with all applicable Environmental
          Laws;

         

                                           
          (ii)     the
          Company possess all Environmental Permits that are required for the lawful
          operation of the business and each such Environmental Permit is in
          full force
          and effect and the Company
          is in compliance with such Environmental Permits and

         

         

        
          
            24

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

                
no
          proceeding is pending or to the Knowledge of Sellers and the Company threatened
          and no grounds exist to revoke, suspend,
          modify
          or limit any such Environmental Permit;

         

                                            (iii)    
          neither
          any Seller nor the Company has received any oral or written notice with
          respect
          to the business of, or any property currently or formerly owned or leased
          by the
          Company

                         from
          any Governmental Body or Person alleging that the Company is in violation
          of any
          Environmental Law;

         

                                           
          (iv)     neither
          any Seller nor the Company has received any oral or written notice from
          any
          Governmental Body or Person that it is or may be required to conduct any
          Remedial Action

                        
          as a result of the operation of its business, or on any property currently
          or
          formerly owned or leased by the Company;

         

                                           
          (v)      there
          has
          been no Release of a Hazardous Material at or from any real property currently
          or formerly owned or leased by the Company that would subject the Company
          to
          liability

                        
          under any Environmental Law, nor has any Seller or the Company received
          written
          notice that it is a potentially responsible party under any Environmental
          Law;
          and

         

                                           
          (vi)     the
          Company has not managed, handled, generated, manufactured, refined, recycled,
          discharged, emitted, buried, processed, produced, reclaimed, stored, treated,
          transported, or

                        
          disposed of any Hazardous Substance, except in compliance with all Environmental
          Laws.

         

        (b)  Sellers
          have provided Madden with all environmental audits or assessments in the
          possession of the Company relating to the business of, or any property
          owned or
          leased by, the Company.

         

        4.17    
          Bank
          Accounts and Powers of Attorney.  Section 4.17 of the Disclosure
          Schedule sets forth the name of each bank in which the Company has an account,
          lock box or safe deposit box, the number of each such account, lock box
          and safe
          deposit box, and the names of all Persons authorized to draw thereon or
          have
          access thereto.  Except as set forth in Section 4.17 of the Disclosure
          Schedule, no Person holds any power of attorney from the Company.

         

        4.18    
          Absence
          of Certain Changes.  Since the date of the Balance Sheet, the
          Company has operated its business in the ordinary course and has maintained
          its
          relationships with customers, vendors, suppliers, employees, agents and
          others
          in a commercially reasonable manner, and there has not occurred any event,
          development or change which, individually or in the aggregate, has had
          or could
          be reasonably expected to have a Material Adverse Effect. Without limiting
          the
          generality of the immediately preceding sentence and except as set forth
          in
          Section 4.18 of the Disclosure Schedule, since the date of the Balance
          Sheet,
          the Company has not:

         

                                           
          (i)  amended
          or otherwise modified its organizational documents (including, as applicable,
          its articles or organization, certificate of formation, operating agreement
          or
          articles of

                
          association) or altered, through merger, liquidation, reorganization,
          restructuring or in any other fashion its corporate structure or
          ownership;

         

         

        
          
            25

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

                                           
          (ii)      issued
          or
          sold, or authorized for issuance or sale, or granted any options or made
          other
          agreements, arrangements or understandings of the type referred to in Section
          4.2(b) 

                         with
          respect to any of its ownership interests or any other of its securities
          or
          altered any term of any of its outstanding ownership interests (or other
          securities) or made any change in its outstanding

                        
          ownership interests or other securities or its capitalization, whether
          by reason
          of a reclassification, recapitalization, stock or interest split or combination,
          exchange or readjustment of interests or

                        
          shares, dividend
          or otherwise;

         

                                                   
          (iii)     mortgaged,
          pledged or granted any security interest in any of its assets, except Permitted
          Encumbrances and security interests solely in tangible personal property
          granted

                        
          pursuant to any purchase money agreement, conditional sales contract or
          capital
          lease under which, solely with respect to conditional sales contracts and
          capital leases, there exists an aggregate

                        
          future liability not in excess of $25,000 per contract or lease (which
          amount
          was not more than the purchase price for such personal property and which
          security interest does not extend to any other

                        
          item or items of personal property);

         

                                           
          (iv)    declared,
          set aside, made or paid any dividend or other distribution to any holder
          with
          respect to its ownership interests or other securities;

         

                                           
          (v)     redeemed,
          purchased or otherwise acquired, directly or indirectly, any of its ownership
          interests or other securities;

         

                                           
          (vi)    increased
          the compensation of any of its non-executive employees, except in the ordinary
          course of business and in a commercially reasonable manner, or increased
          the

                        
          compensation of any of its executive officers;

         

                                           
          (vii)   adopted
          or, except as required by Law, amended, any Employee Benefit Plan;

         

                                           
          (viii)  extended,
          terminated or modified any Contract, permitted any renewal notice period
          or
          option period to lapse with respect to any Contract or received any written
          notice of

                        
          termination of any Contract, except for terminations of Contracts upon
          their
          expiration during such period in accordance with their terms;

         

                                           
          (ix)     incurred
          or assumed any indebtedness for borrowed money or guaranteed any obligation
          or
          the net worth of any Person, except for endorsements of negotiable instruments
          for

                        
          collection in the ordinary course of business and in a commercially reasonable
          manner;

         

                                           
          (x)      incurred
          any liability, debt or obligation (whether absolute, accrued, contingent
          or
          otherwise) to or of any Affiliated Person, or made any Affiliate
          Loans;

         

                                           
          (xi)     discharged
          or satisfied any Encumbrance other than those then required to be discharged
          or
          satisfied during such period in accordance with their original
          terms;

         

         

        
          
            26

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

                                           
          (xii)    paid
          any
          material obligation or liability (absolute, accrued, contingent or otherwise),
          whether due or to become due, except for any current liabilities, and the
          current portion of

                
          any long term liabilities shown on the Financial Statements or incurred
          since
          the date of the Balance Sheet in the ordinary course of business and in
          a
          commercially reasonable manner;

         

                                           
          (xiii)   sold,
          transferred, leased to others or otherwise disposed of any assets having
          a fair
          market value in excess of $25,000, except sales of inventory in the ordinary
          course of

                        
          business and dispositions of obsolete assets no longer used or useful in
          the
          business of the Company, in each case in the ordinary course of business
          and in
          a commercially reasonable manner;

         

                                           
          (xiv)   cancelled,
          waived or compromised any debt or claim;

         

                                           
          (xv)    suffered
          any damage or destruction to, loss of, or condemnation or eminent domain
          proceeding relating to any of its tangible properties or assets (whether
          or not
          covered by

                  insurance)
          which has had or would reasonably be likely to have a Material Adverse
          Effect;

         

                                           
          (xvi)   lost
          the
          employment services of any employee whose annual salary exceeded
          $25,000;

         

                                           
          (xvii)  made
          any
          loan or advance to any Person, other than travel and other similar routine
          advances to employees in the ordinary course of business and in a commercially
          reasonable

                        
          manner;

         

                                           (xviii) 
          purchased
          or acquired any capital stock or other securities of any other corporation
          or
          any ownership interest in any other business enterprise or Person;

         

                                            (xix)  
          made
          any
          capital expenditures or capital additions or betterments in amounts which
          exceeded $25,000, in the aggregate;

         

                                           
          (xx)    changed
          its method of accounting or its accounting principles or practices, including
          any policies or practices with respect to the establishment of reserves
          for
          work-in-process

                        
          and accounts receivable, utilized in the preparation of the Financial
          Statements, other than as required by GAAP;

         

                                           
          (xxi)   instituted
          or settled any litigation or any legal, administrative or arbitration action
          or
          proceeding before any court or Governmental Body relating to it or any
          of its
          properties or 

                        
          assets;

         

                                           
          (xxii)  made
          any
          settlements or new elections or changed any current elections with respect
          to
          its Taxes;

         

                                          
          (xxiii)  entered
          into any transaction with any Affiliated Person not otherwise disclosed
          in the
          Disclosure Schedule;

         

         

        
          
            27

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

         

                                          
          (xxiv)  entered
          into any agreements, commitments or contracts, except those made in the
          ordinary
          course of business and in a commercially reasonable manner; or

         

                                           
          (xxv)  entered
          into any agreement or commitment to do any of the foregoing.

         

        4.19   
          Books
          and Records.  The books and records of the Company with respect to
          the Company, its operations, employees and properties have been maintained
          in
          the usual, regular and ordinary manner, all entries with respect thereto
          have been accurately made, and all transactions involving the Company have
          been
          accurately accounted for.

         

        4.20   
          Transactions
          with Affiliated Persons.

         

        (a)  Except
          (i) for employment relationships otherwise disclosed pursuant to this Agreement
          between employees and the Company, (ii) for remuneration by the Company
          for
          services rendered as a director, officer or employee of the Company, or
          (iii) as
          set forth in Section 4.20(a) of the Disclosure Schedule, (A) the Company
          does not, and has not since its inception, in the ordinary course of business
          or
          otherwise, directly or indirectly, purchased, leased or otherwise acquired
          any
          property or obtained any services from, or sold, leased or otherwise disposed
          of
          any property or furnished any services to any Affiliated Person; (B) the
          Company does not owe any amount to any Affiliated Person; (C) no Affiliated
          Person owes any amount to the Company; and (D) no part of the property
          or assets
          of any Affiliated Person is used by the Company in the conduct or operation
          of
          the business of the Company.

         

        (b)  Except
          as
          set forth in Section 4.20(b) of the Disclosure Schedule, the Company has
          no
          outstanding any Affiliate Loans.

         

        4.21   
          Absence
          of Certain Business Practices.  Neither Sellers, the Company, nor
          any of their directors or officers, nor to the Knowledge of Sellers and
          the
          Company, any of the employees or agents of the Company or any of their
          respective shareholders, directors, officers, employees or agents, have
          directly
          or indirectly (a) made any contribution or gift which contribution or gift
          is in
          violation of any applicable Law, (b) made any bribe, rebate, payoff, influence
          payment, kickback or other payment to any Person, private or public, regardless
          of form, whether in money, property or services (i) to obtain favorable
          treatment in securing business, (ii) to pay for favorable treatment for
          business
          secured, (iii) to obtain special concessions or for special concessions
          already obtained for or in respect of the Company or any Affiliated Person,
          or
          (iv) in violation of any Law or legal requirement, or (c) established or
          maintained any fund or asset of the Company that has not been recorded
          in the
          books and records of the Company.

         

        4.22    
          Brokers
          and Finders.  Except as set forth in Section 4.22 of the
          Disclosure Schedule, no broker, finder or investment advisor has been engaged
          by
          Sellers or the Company in connection with the transactions contemplated
          by this
          Agreement.  Sellers (and not the Company) shall be responsible for and
          shall pay all fees, commissions and costs of any such broker, finder or
          investment advisor.

         

         

        
          
            28

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        4.23    
          Restrictions
          on Business Activities.  Except as set forth in Section 4.23 of
          the Disclosure Schedule, there is no judgment, injunction, order or decree
          binding upon the Company or any Seller or, to the Knowledge of Sellers
          and the
          Company, threatened, that has or could reasonably be expected to have the
          effect
          of prohibiting or impairing the conduct of the business by the Company
          as
          currently conducted or any business practice of the Company, including
          the
          acquisition of property, the sale of products, the provision of services,
          the
          hiring of employees, and the solicitation of customers, in each case either
          individually or in the aggregate.

         

        4.24    
          Payables.  Except
          as set forth in Section 4.24 of the Disclosure Schedule, all accounts payable
          of
          the Company  have arisen in the ordinary course of
          business.  All items which are required by GAAP to be reflected as
          payables on the Financial Statements and on the books and records of the
          Company
          are so reflected and have been recorded in accordance with GAAP and in
          a
          commercially reasonable manner.  There has been no material adverse
          change since April 30, 2007 in the amount or delinquency of accounts payable
          of
          the Company.

         

        4.25    
          Receivables.  Except
          as set forth in Section 4.25 of the Disclosure Schedule, all accounts receivable
          of the Company  have arisen in the ordinary course of business,
          represent valid obligations to the Company arising from bona fide transactions,
          and are not subject to claims, set-off, or other defenses or
          counterclaims.  All items which are required by GAAP to be reflected
          as receivables on the Financial Statements and on the books and records
          of the
          Company are so reflected and have been recorded in accordance with GAAP
          and in a
          commercially reasonable manner.

         

        4.26    
          Business
          Relations.  Other than as set forth in Section 4.26 of the
          Disclosure Schedule, (i) the Company is not required to provide any bonding
          or
          any other financial security arrangements in connection with any transaction
          with any customer or supplier, (ii) since April 30, 2007, neither any Seller
          nor
          the Company has received any notice of any disruption (including delayed
          deliveries or allocations by suppliers) in the availability of any materials
          or
          products used in the Company’s business, nor do any of them have reason to
          believe that any such disruption will occur in connection with the business
          of
          the Company, other than as set forth in Section 4.26 of the Disclosure
          Schedule.  Other than as set forth in Section 4.26 of the Disclosure
          Schedule, there are no sole source suppliers of goods, equipment or services
          used by the Company (other than public utilities) with respect to which
          practical alternative sources of supply are unavailable.

         

        4.27    
          Disclosure.  No
          representation or warranty by Sellers contained in this Agreement or any
          Transaction Document or any statement or certificate furnished by Sellers
          to
          Madden or its representatives in connection herewith or therewith or pursuant
          hereto or thereto contains any untrue statement of a material fact, or
          omits to
          state any material fact required to make the statements herein or therein
          contained not misleading.  There is no fact (other than matters of a
          general economic or political nature which do not affect the Company’s business
          uniquely) known to Sellers which might reasonably be expected to have a
          Material
          Adverse Effect.

         

         

        
          
            29

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        ARTICLE
          V

         

        Representations
          and Warranties of Madden

         

        Madden
          represents and warrants to Sellers as follows:

         

        5.1  Organization
          and Good Standing.  Madden is a corporation duly organized,
          validly existing and in good standing under the laws of the State of Delaware
          and has full corporate power and authority to enter into and carry out
          its
          obligations under this Agreement.

         

        5.2  Authorization.  The
          execution and delivery by Madden of this Agreement and the other Transaction
          Documents to which Madden is a party have been duly authorized by all necessary
          corporate action required on the part of Madden.  This Agreement and
          the other Transaction Documents to which Madden is a party have been duly
          executed and delivered by Madden and, assuming due authorization, execution
          and
          delivery by Sellers and/or the Company, as applicable, constitute legal,
          valid
          and binding obligations of Madden, enforceable against Madden in accordance
          with
          their respective terms, except as such enforceability may be limited by
          applicable bankruptcy, insolvency, moratorium or other laws affecting the
          rights
          of creditors generally and by general principles of equity.

         

        5.3  No
          Conflicts; Consents.  Neither the execution and delivery by Madden
          of this Agreement nor any of the Transaction Documents to which Madden
          is a
          party nor the consummation by Madden of the transactions contemplated hereby
          or
          thereby will (i) conflict with or violate the charter or by-laws of Madden,
          or (ii) conflict with, violate, result in the breach of any term of,
          constitute a default under or require the consent or approval of or any
          notice
          to or filing with any Person under, any note, mortgage, deed of trust or
          other
          agreement or instrument to which Madden is a party or by which Madden is
          bound,
          or any Law, decree, writ or injunction of any Governmental Body having
          jurisdiction over Madden, except with respect to clause (ii) where such
          conflict, violation, breach or default, or the failure to obtain such consent
          or
          approval, give such notice or make such filing, would not materially adversely
          impair the ability of Madden to consummate the transactions contemplated
          hereby.

         

        5.4  Litigation.  No
          lawsuit, governmental investigation or legal, administrative, or arbitration
          action or proceeding is pending or, to the Knowledge of Madden, threatened
          against Madden, or any director, officer or employee of Madden in his or
          her
          capacity as such, which questions the validity of this Agreement or seeks
          to
          prohibit, enjoin or otherwise challenge the consummation of the transactions
          contemplated hereby.

         

        5.5  Brokers
          and Finders.  Except as set forth in Section 5.5 of the Madden
          Disclosure Schedule, no broker, finder or financial advisor has been engaged
          by
          Madden in connection with the transactions contemplated by this
          Agreement.  Madden shall be responsible for and shall pay all fees,
          commissions and costs of any such broker, finder or financial
          advisor.

         

        5.6  Investment
          Intent.  Madden is acquiring all of the Company Interests for its
          own account and for investment purposes and not with a view to the sale
          or other
          distribution of any of the Company Interests.

         

         

         

         

        
          
            30

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        5.7  Sufficient
          Funds.  At the Closing, Madden will have all funds necessary and
          sufficient to enable Madden to perform its obligations under this Agreement
          and
          to consummate the transactions contemplated hereby.

         

        ARTICLE
          VI

         

        Covenants
          of Sellers

         

        Sellers
          hereby covenant and agree as follows:

         

        6.1  Ordinary
          Course.  From the date hereof until the Closing, other than as
          contemplated by this Agreement or as set forth in Section 6.1 of the Disclosure
          Schedule, Sellers will (a) cause the Company  to (i) maintain its
          existence in good standing, (ii) maintain in effect all of its presently
          existing insurance coverage (or substantially equivalent insurance coverage),
          preserve its business organization substantially intact, keep the services
          of
          its present principal employees and preserve its present business
          relationships with its material suppliers and customers,
          (iii) maintain the lines of business of the Company, and (iv) in all
          respects conduct its business in the usual and ordinary course and in a
          commercially reasonable manner, without a material change in current operational
          policies, and (b) permit Madden, its accountants, its legal counsel and
          its
          other representatives reasonable access to the management, accountants,
          legal
          counsel, minute books and stock or interest transfer records, other books
          and
          records, contracts, agreements, properties and operations of the Company
          at all
          reasonable times upon reasonable notice, subject, in each case to the
          restrictions set forth in Section 6.2.

         

        6.2  Conduct
          of Business.  From the date hereof until the Closing, other than
          as contemplated by this Agreement or as set forth in Section 6.2 of the
          Disclosure Schedule, Sellers will cause the Company not to do any of the
          following without the prior written consent of Madden (either individually
          or in
          the aggregate):

         

        (i)  amend
          or
          otherwise modify its organizational documents (including, as applicable,
          articles of organization, certificate of formation, operating agreement
          or
          articles of association)

                        
          or alter, through merger, liquidation,
          reorganization, restructuring or in any other fashion, its structure or
          ownership;

         

                                                   
          (ii)      other
          than pursuant to Section 2.1, issue or sell, or authorize for issuance
          or sale,
          or grant any options or make other agreements, arrangements or understandings
          of
          the type

                        
          referred to in Section 4.2(b) with respect to any of its ownership interests
          or
          any other of its securities, or alter any term of any of its outstanding
          ownership interests (or other securities) or make any

                        
          change in its outstanding ownership interests or other securities or its
          capitalization, whether by reason of a reclassification, recapitalization,
          stock
          or interest split or combination, exchange or

                        
          readjustment of interests or shares, dividend or otherwise;

         

                           
          (iii)     mortgage,
          pledge or grant any security interest in any of its assets, except (A)
          Permitted
          Encumbrances and (B) security interests solely in tangible personal property
          granted

                        
          pursuant to any purchase money agreement, conditional sales contract or
          capital
          lease under which, solely with respect to conditional sales contracts and
          capital

         

         

        
          
            31

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

                        
          leases, there exists an aggregate future
          liability not in excess of $25,000 per contract or lease (which amount
          is not
          more than the purchase price for such personal property and which security
          interest

                       
          does not extend
          to any other item or
          items
          of personal property);

         

                                                   
          (iv)    declare,
          set aside, make or pay any dividend or other distribution to any holder
          with
          respect to its ownership interests or other securities;

         

                                                   
          (v)     redeem,
          purchase or otherwise acquire, directly or indirectly, any of its ownership
          interests or other securities;

         

                                                   
          (vi)    increase
          the compensation of any of its non-executive employees, except in the ordinary
          course of business and in a commercially reasonable manner, or increase
          the

         

                        
          compensation of any of its executive officers;

         

                                                   
          (vii)   adopt
          or,
          except as otherwise required by Law, amend, any Employee Benefit Plan or
          enter
          into any collective bargaining agreement;

         

                                                  
          (viii)   extend,
          terminate or modify any Contract or permit any renewal notice period or
          option
          period to lapse with respect to any Contract, except for terminations of
          Contracts upon their

                        
          expiration during such period in accordance with their terms;

         

                                                  
          (ix)      incur
          or
          assume any indebtedness for borrowed money or guarantee any obligation
          or the
          net worth of any Person, except for endorsements of negotiable instruments
          for

                        
          collection in the ordinary course of business;

         

                                                   
          (x)  incur
          any
          liability, debt or obligation (whether absolute, accrued, contingent or
          otherwise) to or of any Affiliated Person, or make any Affiliate
          Loans;

         

                                                   
          (xi)     discharge
          or satisfy any Encumbrance other than those which are required to be discharged
          or satisfied during such period in accordance with their original
          terms;

         

                                                   
          (xii)    pay
          any
          material obligation or liability (absolute, accrued, contingent or otherwise),
          whether due or to become due, except for any current liabilities, and the
          current portion of any

                        
          long term liabilities shown on the Financial Statements or incurred since
          the
          date of the Balance Sheet in the ordinary course of business and in a
          commercially reasonable manner;

         

                                                  
          (xiii)    sell,
          transfer, lease to others or otherwise dispose of any of its properties
          or
          assets having a fair market value in excess of $25,000, except sales of
          inventory and dispositions of

               
                   obsolete assets no longer used
          or useful in its business, in each case in the ordinary course of business
          and
          in a commercially reasonable manner;

         

                                                   
          (xiv)   cancel,
          waive or compromise any debt or claim;

         

         

        
          
            32

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                                                   
          (xv)    make
          any
          loan or advance to any Person, other than travel and other similar routine
          advances to employees in the ordinary course of business and in a commercially
          reasonable

                        
          manner;

         

                                                   
          (xvi)   purchase
          or acquire any capital stock or other securities of any other corporation
          or any
          ownership interest in any other business enterprise or Person;

         

                                                  
          (xvii)   make
          any
          capital expenditures or capital additions or betterments in amounts which
          exceed
          $25,000 in the aggregate;

         

                                                 
          (xviii)   change
          its method of accounting or its accounting principles or practices, including
          any policies or practices with respect to the establishment of reserves
          for
          work-in-process,

                        
          inventory and accounts receivable, utilized in the preparation of the Financial
          Statements, other than as required by GAAP;

         

                                                  
          (xix)     institute
          or settle any litigation or any legal, administrative or arbitration action
          or
          proceeding before any court or Governmental Body relating to it or any
          of its
          properties or

                        
          assets;

         

                                                  
          (xx)      make
          any
          settlements or new elections, or change any current elections, with respect
          to
          its Taxes;

         

                                                   
          (xxi)    (a)
          enter
          into any agreements, commitments or contracts for any Real Property leases,
          (b)
          terminate or close any facility or operation, or (c) surrender or diminish
          any
          leasehold

                        
          interest of the Company in any Real Property Interest;

         

                                                  
          (xxii)    enter
          into any transaction with any Affiliated Person;

         

                                                  
          (xxiii)   enter
          into any other agreements, commitments or contracts, except those made
          in the
          ordinary course of business and in a commercially reasonable manner;
          or

         

                                                  
          (xxiv)   enter
          into any agreement or commitment to do any of the foregoing.

         

        6.3  Certain
          Filings.  Sellers agree to make or cause to be made all filings
          with Governmental Bodies that are required to be made by Sellers or by the
          Company to carry out the transactions contemplated by this
          Agreement.  Sellers agree to assist, and to cause the Company to
          assist Madden in making all such filings, applications and notices as may
          be
          necessary or desirable in order to obtain the authorization, approval or
          consent
          of any Governmental Body which may be reasonably required or which Madden
          may
          reasonably request in connection with the consummation of the transactions
          contemplated hereby.

         

        6.4  Consents
          and Approvals.  Sellers agree to use their good faith commercially
          reasonable efforts to obtain, or to cause the Company to obtain, as promptly
          as
          practicable, but not later than the Closing in any event, all consents,
          authorizations, approvals and waivers required in connection with the
          consummation of the transactions contemplated by this Agreement.

         

         

        
          
            33

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        6.5  Efforts
          to Satisfy Conditions.  Sellers agree to use their good faith
          commercially reasonable efforts to satisfy the conditions set forth in
          Article
          IX.

         

        6.6  Further
          Assurances.  Sellers agree to execute and deliver, and to cause
          the Company to execute and deliver, such additional documents and instruments,
          and to perform such additional acts as Madden may reasonably request to
          effectuate or carry out and perform all the terms, provisions and conditions
          of
          this Agreement and the other Transaction Documents and the transactions
          contemplated hereby and thereby and to effectuate the intent and purposes
          hereof.

         

        6.7  Notification
          of Certain Matters.  Promptly after obtaining knowledge thereof,
          Sellers shall notify Madden in writing of (a) the occurrence or
          non-occurrence of any fact or event which causes or would be reasonably
          likely
          to cause (i) any representation or warranty of Sellers contained in this
          Agreement to be untrue or inaccurate in any material respect at any time
          from
          the date hereof to the Closing Date or (ii) any covenant, condition or
          agreement
          of Sellers in this Agreement not to be complied with or satisfied in any
          material respect, and (b) any failure of Sellers to comply with or satisfy
          any
          covenant, condition or agreement to be complied with or satisfied by Sellers
          hereunder in any material respect; provided, however, that no such
          notification shall affect the representations or warranties of Sellers,
          or the
          right of Madden to rely thereon, or the conditions to the obligations of
          Madden
          except as provided in the following sentence.  If Sellers notify
          Madden in writing of any matter referred to in the preceding clause (a)(i)
          and
          Madden nevertheless consummates the transactions contemplated hereby, Madden
          shall have no claim against Sellers for a breach of such representation
          or
          warranty based on the information contained in such
          notification.  Sellers shall give prompt notice in writing to Madden
          of any notice or other communication from any third party alleging that
          the
          consent of such third party is or may be required to be obtained by Sellers
          or
          the Company in connection with the transactions contemplated by this
          Agreement.

         

        ARTICLE
          VII

         

        Covenants
          of Madden

         

        Madden
          hereby covenants and agrees as follows:

         

        7.1  Certain
          Filings.  Madden agrees to make or cause to be made all filings
          with Governmental Bodies that are required to be made by Madden or its
          affiliates to carry out the transactions contemplated by this
          Agreement.  Madden agrees to assist Sellers in making all such
          filings, applications and notices as may be necessary or desirable in order
          to
          obtain the authorization, approval or consent of any Governmental Body
          which may
          be reasonably required or which Sellers may reasonably request in connection
          with the consummation of the transactions contemplated hereby.

         

        7.2  Efforts
          to Satisfy Conditions.  Madden agrees to use its good faith
          commercially reasonable efforts to satisfy the conditions set forth in
          Article X
          hereof that are within its control.

         

         

        
          
            34

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        7.3  Further
          Assurances.  Madden agrees to execute and deliver such additional
          documents and instruments, and to perform such additional acts, as Sellers
          may
          reasonably request to effectuate or carry out and perform all the terms,
          provisions and conditions of this Agreement and the other Transaction Documents
          and the transactions contemplated hereby and thereby to effectuate the
          intent
          and purposes hereof.

         

        7.4  Notification
          of Certain Matters.  Promptly after obtaining knowledge thereof,
          Madden shall notify Sellers of (a) the occurrence or non-occurrence of any
          fact or event which causes or would be reasonably likely to cause (i) any
          representation or warranty of Madden contained in this Agreement to be
          untrue or
          inaccurate in any material respect at any time from the date hereof to
          the
          Closing Date or (ii) any covenant, condition or agreement of Madden in this
          Agreement not to be complied with or satisfied in any material respect
          and
          (b) any failure of Madden to comply with or satisfy any covenant, condition
          or agreement to be complied with or satisfied by it hereunder in any material
          respect; provided, however, that no such notification shall affect
          the representations or warranties of Madden or Sellers’ right to rely thereon,
          or the conditions to the obligations of Sellers except as provided in the
          following sentence.  If Madden notifies Sellers in writing of any
          matter referred to in the preceding clause (a)(i) and Sellers nevertheless
          consummate the transactions contemplated hereby, Sellers shall have no
          claim
          against Madden for a breach of such representation or warranty based on
          the
          information contained in such notification.  Madden shall give prompt
          notice in writing to Sellers of any notice or other communication from
          any third
          party alleging that the consent of such third party is or may be required
          to be
          obtained by Madden in connection with the transactions contemplated by
          this
          Agreement.

         

        ARTICLE
          VIII

         

        Certain
          Other Agreements

         

        8.1  Certain
          Tax Matters.  The parties hereby further covenant and agree as
          follows:

         

        (a)  Tax
          Returns and Cooperation.

         

                         
            (i)  Sellers
          shall, or shall use good faith commercially reasonable efforts to cause
          the
          Company to, prepare and timely file, in a commercially reasonable manner,
          (x)
          all Returns and

                        
          amendments thereto required to be filed by or for the Company for all taxable
          periods ending on or before the Closing Date.  Madden will be given a
          reasonable opportunity to review and comment on

                       
          all such Returns required to be filed after the date hereof.

         

                           
          (ii)      Sellers
          shall be liable for all Taxes of the Company for all Pre-Closing Periods
          (other
          than to the extent that the liability for those Taxes is provided for on
          the
          Final Closing Balance

                        
          Sheet) and all Taxes of Sellers for any taxable year or taxable
          period.  Notwithstanding the foregoing, in the case of any taxable
          period that includes (but does not begin or end on) the Closing Date (a
          

                        
          “Straddle Period”), the portion of the Taxes of the Company for such Straddle
          Period attributable to the period prior to close of the Closing Date shall
          be
          treated as Taxes of a Pre-Closing Period for

         

         

        
          
            35

          

          
            
            

            
              

            

          

          
            
            

          

        

         

                        
          purposes of this Section 8.1(a)(ii).  The amount of Straddle Period
          Taxes of the Company that are treated as Taxes of a Pre-Closing Period
          shall be
          computed (x) in the case of income, franchise, sales,

                        
          or similar Taxes, pursuant to an interim closing of the books method by
          assuming
          that the Company had a taxable year or period which ended on the Closing
          Date,
          except that exemptions, allowances

                        
          or deductions that are calculated on an annual basis, such as the deduction
          for
          depreciation, shall be apportioned on a per-diem basis and (y) in the case
          of
          real property Taxes, personal property taxes

                        
          and similar ad valorem obligations by prorating such Taxes owed for the
          Straddle
          Period on a per-diem basis.

         

                                                   
          (iii)     Except
          as
          provided above with respect to Straddle Periods, the Company shall be liable
          for
          any and all Taxes imposed on them relating to or apportioned to any taxable
          year
          or

                        
          portion thereof beginning on or after the Closing Date and ending after
          the
          Closing Date.

         

                                                   
          (iv)    Madden
          and Sellers shall each cooperate fully, as and to the extent reasonably
          requested by the other party, in connection with the filing of Returns
          pursuant
          to this Section 8.1

                        
          (a) and any audit, litigation or other proceeding with respect to
          Taxes.  Such cooperation shall include the retention and (upon the
          other party’s request) the provision of records and information
          which

                        
          are reasonably relevant to any such audit, litigation or other proceeding
          and
          making employees available on a mutually convenient basis to provide additional
          information and explanation of any

                        
          material provided hereunder.  Sellers (before the Closing) and Madden
          (after the Closing) shall each cause the Company (A) to retain all books
          and
          records with respect to Tax matters pertinent to them

                        
          relating to any taxable period beginning before the Closing Date until
          the
          expiration of the statutory period of limitations of the respective taxable
          periods, and to abide by all record retention

                        
          agreements entered into with any taxing authority, and (B) to give the
          other
          party reasonable written notice prior to transferring, destroying or discarding
          any such books and records and, if the other

                        
          party so requests, Sellers or Madden, as the case may be, shall allow the
          other
          party to take possession of such books and records.

         

                                                   
          (v)      Madden
          and Sellers further agree, upon request, to use good faith commercially
          reasonable efforts to obtain any certificate or other document from any
          Governmental Body or any other Person as may be necessary to mitigate,
          reduce or
          eliminate any Tax that could be imposed (including, but not limited to,
          with
          respect to the transactions contemplated hereby); provided that such certificate
          or other document does not increase the Tax of Madden or Sellers.

         

        8.2  Company
          Payments.  Simultaneously with the payment of the Purchase Price,
          Madden shall make a capital contribution to the Company of one million
          nine
          hundred thousand dollars ($1,900,000), which the Sellers have directed
          the
          Company to pay as set forth on Schedule B attached hereto.

         

        8.3  Matters
          Relating to Sellers other than Silverman.

         

        (a)  Notwithstanding
          anything herein to the contrary, Madden hereby acknowledges that, other
          than as
          a result of a breach by a Seller of such Seller’s representations 

         

         

        
          
            36

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        in
          the
          third sentence of Section 4.2(a) of this Agreement, only Silverman (and
          no other
          Seller) shall have any liability to Madden of any kind or nature with respect
          to
          this Agreement or the Transaction Documents.  Madden hereby
          acknowledges that it has not relied on any representation, warranty, statement
          or communication or, lack thereof, from any of the Sellers other than Silverman,
          except with respect to each Seller’s representations in third sentence of
          Section 4.2(a) of this Agreement.  Madden acknowledges that it has
          performed its own due diligence with respect to its acquisition of the
          Company.  Except as set forth in this Section 8.3(a) Madden hereby
          releases each and all of the Sellers other than Silverman from any and
          all
          liability or obligation of any kind or nature whatsoever from now until
          the end
          of time with respect to this Agreement or the Transaction Documents or
          any other
          theory of law by which a Seller could have any liability or obligation
          to
          Madden.

         

        (b)  In
          the
          event that the personal guarantee of Randel under that
          certain  Equipment Lease Agreement, dated April 21, 2006, between the
          Company and General Electric Capital Corporation shall not be terminated
          as of
          the Closing, Madden shall indemnify Randel for any amount Randel pays with
          respect to such guarantee.

         

        ARTICLE
          IX

         

        Conditions
          Precedent to Obligations of Madden

         

        The
          obligations of Madden under Article II and Article III shall be subject
          to the
          satisfaction at or prior to the Closing of the following conditions, any
          one or
          more of which may be waived by Madden:

         

        9.1  Representations
          and Warranties.  Each and every representation and warranty of
          Sellers contained in this Agreement, and any schedule or any certificate
          delivered pursuant hereto, shall have been true, complete and accurate
          when made
          and shall be repeated at the Closing and (a) if qualified by materiality
          (or any
          variation of such term), shall be true, complete and accurate as of the
          Closing
          Date, except that any such representation or warranty that is made as of
          a
          specified date shall only be required to be true, complete and accurate
          as of
          that date, and (b) if not qualified by materiality (or any variation of
          such
          term), shall be true, complete and accurate in all material respects as
          of the
          Closing Date, except that any such representation or warranty that is made
          as of
          a specified date shall only be required to be true, complete and accurate
          in all
          material respects as of that date.

         

        9.2  Compliance
          with Covenants.  Sellers shall have performed and observed all
          covenants and agreements to be performed or observed by Sellers under this
          Agreement at or before the Closing.

         

        9.3  Lack
          of Adverse Change.  Since the date of the Balance Sheet, there has
          not occurred any circumstance or event which, individually or in the aggregate,
          has had or is reasonably likely to result in a Material Adverse Effect,
          including a material decrease in the revenue of the Company.

         

         

        
          
            37

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        9.4  Update
          Certificate.  Madden shall have received a favorable certificate,
          dated  the Closing Date, signed by Silverman as to the matters set
          forth in Sections 9.1, 9.2 and 9.3.

         

        9.5  Regulatory
          Approvals.  All approvals and consents of Governmental Bodies
          required to carry out the transactions contemplated by this Agreement shall
          have
          been obtained.

         

        9.6  Consents
          of Third Parties.  All consents from third parties to Contracts or
          otherwise that are required to be listed in Section 4.4 of the Disclosure
          Schedule in order to avoid a misrepresentation under Section 4.4 shall
          have been
          obtained in writing in a form reasonably satisfactory to Madden.

         

        9.7  No
          Violation of Orders.  No preliminary or permanent injunction or
          other order issued by any Governmental Body, nor any statute, rule, regulation,
          decree or executive order promulgated or enacted by any Governmental Body,
          that
          (a) declares this Agreement invalid or unenforceable in any material respect,
          (b) prevents or significantly delays the consummation of the transactions
          contemplated hereby, or (c) imposes or will impose restrictions on Madden’s
          right or ability to operate the business of the Company shall be in effect;
          and
          no action or proceeding before any Governmental Body shall have been instituted
          or, to the Knowledge of Sellers or the Company, threatened by any Governmental
          Body, or by any other Person, which (i) seeks to prevent or delay the
          consummation of the transactions contemplated by this Agreement or (ii)
          challenges the validity or enforceability of this Agreement, (iii) seeks
          to
          impose restrictions on Madden’s right or ability to operate the business of the
          Company, or (iv) seeks to require Madden to dispose of any of its businesses,
          operations, properties or assets or any claim relating to the equity of
          the
          Company.

         

        9.8  Employment
          Agreement.  Madden and Silverman shall have entered into the
          Employment Agreement, and the Employment Agreement shall be in full force
          and
          effect with no notice that Silverman does not intend to honor the Employment
          Agreement.

         

        9.9  Transaction
          Documents.  The Company and Sellers shall have entered into each
          of the other Transaction Documents to which they are a party.

         

        9.10    
          Other
          Closing Matters.  Madden shall have received such other supporting
          information in confirmation of the representations, warranties, covenants
          and
          agreements of Sellers and the satisfaction of the conditions to Madden’s
          obligation to close hereunder as Madden or its counsel may reasonably
          request.

         

        ARTICLE
          X

         

        Conditions
          Precedent to Obligations of Sellers

         

        The
          obligations of Sellers under Article II and Article III shall be subject
          to the
          satisfaction at or prior to the Closing of the following conditions, any
          one or
          more of which may be waived by Sellers:

         

         

         

        
          
            38

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        10.1    
          Representations
          and Warranties.  Each and every representation and warranty of
          Madden contained in this Agreement, and any schedule or any certificate
          delivered pursuant hereto, shall have been true, complete and accurate
          when made
          and shall be repeated at the Closing and (a) if qualified by materiality
          (or any
          variation of such term), shall be true, complete and accurate as of the
          Closing
          Date, except that any such representation or warranty that is made as of
          a
          specified date shall only be required to be true, complete and accurate
          as of
          that date, and (b) if not qualified by materiality (or any variation of
          such
          term), shall be true, complete and accurate in all material respects as
          of the
          Closing Date, except that any such representation or warranty that is made
          as of
          a specified date shall only be required to be true, complete and accurate
          in all
          material respects as of that date.

         

        10.2    
          Compliance
          with Covenants.  Madden shall have performed and observed all
          covenants and agreements to be performed or observed by it under this Agreement
          at or before the Closing.

         

        10.3    
          Update
          Certificate.  Sellers shall have received a favorable certificate,
          dated the Closing Date, signed by Madden as to the matters set forth in
          Sections
          10.1 and 10.2.

         

        10.4    
          Regulatory
          Approvals.  All approvals and consents of Governmental Bodies
          required to carry out the transactions contemplated by this Agreement shall
          have
          been obtained.

         

        10.5    
          No
          Violation of Orders.  No preliminary or permanent injunction or
          other order issued by any Governmental Body, nor any statute, rule, regulation,
          decree or executive order promulgated or enacted by any Governmental Body,
          that
          declares this Agreement invalid or unenforceable in any material respect
          or that
          prevents or significantly delays the consummation of the transactions
          contemplated hereby shall be in effect.

         

        10.6    
          Transaction
          Documents.  Madden shall have entered into each of the other
          Transaction Documents to which it is a party.

         

        10.7    
          Other
          Closing Matters.  Sellers shall have received such other
          supporting information in confirmation of the representations, warranties,
          covenants and agreements of Madden and the satisfaction of the conditions
          to
          Sellers’ obligations to close hereunder as the Seller Representative or its
          counsel may reasonably request.

         

        ARTICLE
          XI

         

        Termination
          of Agreement

         

        11.1   
          Conditions
          for Termination.  This Agreement may be terminated:

         

        (a)  at
          any
          time prior to the Closing by mutual consent of Madden and Sellers;

         

        (b)  by
          Madden
          if the Closing shall not have been consummated by seventy-five (75) days
          after
          the date hereof, unless such failure of consummation shall be due to a
          material
          breach of any representation or warranty, or the nonfulfillment in any
          material
          respect, 

         

         

         

        
          
            39

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

      

       

      

        (a)  and
          failure to cure such nonfulfillment as set forth in clause (d) below, of
          any
          covenant or agreement contained herein on the part of Madden; or

         

        (b)  by
          Sellers if the Closing shall not have been consummated by seventy-five
          (75) days
          after the date hereof, unless such failure of consummation shall be due
          to a
          material breach of any representation or warranty, or the nonfulfillment
          in any
          material respect, and failure to cure such nonfulfillment as set forth
          in clause
          (d) below, of any covenant or agreement contained herein on the part of
          Sellers;
          or

         

        (c)  by
          Madden, on the one hand, or Sellers, on the other hand, if Madden or any
          Seller
          fails to cure a material breach of any provision of this Agreement within
          fifteen (15) days after its receipt of written notice of such breach from
          the
          non-breaching party, provided, however, that a party shall not be entitled
          to
          terminate this Agreement pursuant to this Section 11.1(d) if it is also
          in
          material breach of any provision of this Agreement.

         

        1.2  Effect
          of Termination.
          Upon
          the termination of this Agreement for any reason, Madden and Sellers shall
          have
          no liability or further obligations arising out of this Agreement, except
          for
          any liability resulting from any intentional breach of a representation,
          warranty or covenant contained in this Agreement prior to termination.
          Furthermore, the provisions of Sections 4.23, 5.5, this Section 11.2 and
          Articles XII and XIII shall survive any termination of this
          Agreement.

         

        ARTICLE
          II

          

        Indemnification

         

        12.1    
          Survival
          of Representations, Warranties and Covenants.
          The
          parties to this Agreement hereby agree that the remedy for any breach of
          a
          representation or warranty, covenant or agreement contained in this Agreement
          shall be the indemnification provisions set out in this Article XII;
provided,
          however,
          that
          nothing in this Section 12.1 shall prohibit any party from seeking specific
          performance or injunctive relief against any other party in respect of
          a breach
          by such other party of any covenant hereunder; and provided further,
          that
          nothing in this Section 12.1 shall limit any party’s remedies for a breach of a
          covenant occurring prior to the Closing.

         

        (a)  The
          representations and warranties of the parties contained in this Agreement,
          any
          schedule or any certificate delivered pursuant hereto, shall survive the
          Closing
          and shall continue in full force and effect (a) in the case of the
          representations and warranties of Sellers and Madden contained in Sections
          4.6,
          4.15, 4.16, 4.23 and 5.5 until thirty (30) days following the expiration of
          the applicable statutory period of limitations with respect to the matter
          to
          which the claim relates, as such limitation period may be extended from
          time to
          time, (b) in the case of the representations and warranties of Sellers
          and
          Madden contained in Sections 4.1, 4.2, 4.3, 4.20, 5.1 and 5.2, indefinitely,
          and
          (c) in the case of all other representations and warranties of the parties
          contained in this Agreement, and in any schedule or any certificate delivered
          pursuant hereto, until twenty-four (24) months after the Closing Date.
          Each
          party hereto shall be entitled to rely on any such representation or warranty
          regardless of any independent knowledge of such party or any inquiry or
          investigation made by or on behalf of 

         

         

        40

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        such
          party. Notwithstanding the foregoing, any representation or warranty in
          respect
          of which indemnity may be sought hereunder shall survive the time at which
          it
          would otherwise terminate pursuant to this Section 12.1 if notice of the
          breach
          thereof shall have been given to the party against whom such indemnity
          may be
          sought prior to the expiration of the applicable survival period.

         

        (b)  The
          parties’ covenants and agreements under this Agreement shall survive the Closing
          indefinitely unless a shorter period of performance is specified with respect
          to
          such covenant or agreement.

         

        12.2    
          Indemnification
          by Silverman.

         

        (a)  Subject
          to Sections 12.2(b) and 12.7, Silverman shall indemnify and hold harmless
          Madden, its affiliates and each of their respective stockholders, directors,
          officers, employees, agents and representatives (other than Silverman),
          and the
          successors and assigns of each of the foregoing (collectively, the “Madden
          Indemnified Parties”) from and against any Loss incurred or suffered by such
          Person as a result of or arising from, without duplication:

         

                          
          (i)         a
          breach
          by any Seller of any representation or warranty made by Sellers in this
          Agreement or any schedule or certificate delivered pursuant hereto
          or

                         thereto;
          and

         

                                                   
          (ii)  a
          failure
          by any Seller to perform or comply with any covenant or agreement on the
          part of
          Sellers contained herein.

         

        Any
          amount paid pursuant to this Section 12.2(a) shall be paid to Madden or,
          at
          Madden’s election, to the Company and shall be the amount required to put
          Madden, the Company, as the case may be, in the position it or they would
          have
          been in had such representation, warranty, covenant or agreement not been
          breached. 

         

        (b)  Notwithstanding
          Section 12.2(a):

         

                           
          (i)  Silverman
          shall not have any obligation to indemnify the Madden Indemnified Parties
          from
          and against any Loss under clause (i) of Section 12.2(a) until

         

                
          the Madden Indemnified Parties have suffered aggregate Losses collectively
          hereunder, in excess of two hundred
          thousand dollars ($200,000); provided that such
          threshold

                        
          shall not apply to any Loss as a result of, arising from or in connection
          with a
          breach by any Seller of a representation or warranty contained in Section
          4.1,
          Section 4.2,

                        
          Section 4.3, Section 4.6, Section 4.20 or Section 4.23 herein; and

         

                           
          (ii)  Silverman
          shall not have any obligation to indemnify the Madden Indemnified Parties
          from
          and against any Loss under clause (i) of Section 12.2(a) to the

                        
          extent the Madden Indemnified Parties have suffered aggregate Losses
          collectively hereunder, in excess of five million dollars ($5,000,000);
          provided that such
          aggregate limit

                        
          shall not apply to any Loss as a result of, arising from or in connection
          with a
          breach by any Seller of a representation or warranty contained in Section
          4.1,
          Section 4.2,

                        
          Section 4.3, Section 4.6, Section 4.20 or Section 4.23 herein.

         

         

        
          
            41

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        (c)  Notwithstanding
          anything to the contrary contained in Section 12.2(b) or anywhere else
          in this
          Agreement, Silverman shall indemnify and hold harmless the Madden Indemnified
          Parties, without limitation, from and against any and all Losses incurred
          or
          suffered by such Person after the Closing Date as a result of or arising
          from
          any fraudulent act or willful or intentional misconduct by the Company
          prior to
          the Closing Date, or by any Seller.

         

        (d)  Indemnity
          as to Preschoolians.
          Silverman hereby agrees to indefinitely indemnify the Madden Indemnified
          Parties
          for any and all Losses incurred by any of them in connection with, relating
          to
          or arising from the so called “Preschoolians” business.

         

        

        12.3    
          Indemnification
          by Madden.

         

        (a)  Madden
          shall indemnify and hold harmless Sellers and each of Sellers’ agents and
          representatives, and the successors and assigns of each of the foregoing
          (the
“Seller Indemnified Parties”), from and against any Loss incurred or suffered by
          such Person as a result of or arising from:

         

                                   
          (i)  a
          breach
          by Madden of any representation or warranty made by Madden in this Agreement
          or
          in any schedule or certificate delivered pursuant hereto or

                        
          thereto; and

         

                                   
          (ii)  a
          failure
          by Madden to perform or comply with any covenant or agreement on the part
          of
          Madden contained herein; 

         

        Any
          amount paid pursuant to this Section 12.3(a) shall be the amount required
          to put
          Sellers in the position Sellers would have been in had such representation,
          warranty, covenant or agreement not been breached.

         

        (b)  Notwithstanding
          anything to the contrary contained in this Agreement, Madden shall indemnify
          and
          hold harmless the Seller Indemnified Parties from and against any Loss
          incurred
          or suffered by Sellers after the Closing Date as a result of or arising
          from any
          fraudulent acts or willful misconduct by Madden. The Seller Indemnified
          Parties
          shall not take any action the purpose or intent of which is to prejudice
          the
          defense of any claim subject to indemnification hereunder or to induce
          a third
          party to assert a claim subject to indemnification hereunder.

         

        12.4    
          Assumption
          of Defense.
          An
          indemnified party shall promptly give notice to each indemnifying party
          after
          obtaining knowledge of any matter as to which recovery may be sought against
          such indemnifying party because of the indemnity set forth above, and,
          if such
          indemnity shall arise from the claim of a third party, shall permit such
          indemnifying party to assume the defense of any such claim or any proceeding
          resulting from such claim; provided,
          however,
          that
          failure to give any such notice promptly shall not affect the indemnification
          provided under this Article XII, except to the extent such indemnifying
          party
          shall have been actually and materially prejudiced as a result of such
          failure.
          Notwithstanding the foregoing, an indemnifying party may not assume the
          defense
          of any such third-party claim if it does not demonstrate to the reasonable
          satisfaction of the indemnified party that it has adequate financial resources
          to defend such claim and pay any and all Losses that may result therefrom,
          or if
          the 

         

         

        
          
            42

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        claim
          (i)
          is reasonably likely to result in imprisonment of the indemnified party,
          (ii) is
          reasonably likely to result in an equitable remedy which would materially
          impair
          the indemnified party’s ability to exercise its rights under this Agreement, or
          impair Madden’s right or ability to operate the Company, or (iii) names both the
          indemnifying party and the indemnified party (including impleaded parties)
          and
          representation of both parties by the same counsel would create a conflict.
          If
          an indemnifying party assumes the defense of such third party claim, such
          indemnifying party shall agree prior thereto, in writing, that it is liable
          under this Article XII to indemnify the indemnified party in accordance
          with the
          terms contained herein in respect of such claim, shall conduct such defense
          diligently, shall have full and complete control over the conduct of such
          proceeding on behalf of the indemnified party and shall, subject to the
          provisions of this Section 12.4, have the right to decide all matters of
          procedure, strategy, substance and settlement relating to such proceeding;
          provided,
          however,
          that
          any counsel chosen by such indemnifying party to conduct such defense shall
          be
          reasonably satisfactory to the indemnified party, and the indemnifying
          party
          will not without the written consent of the indemnified party consent to
          the
          entry of any judgment or enter into any settlement with respect to the
          matter
          which does not include a provision whereby the plaintiff or the claimant
          in the
          matter releases the indemnified party from all liability with respect thereto,
          or which may be reasonably expected to have an adverse effect on the indemnified
          party and does not provide that the indemnified party is without fault,
          or, with
          respect to an indemnification relating to Taxes, if such settlement could
          affect
          the Taxes of the Company or the Madden Indemnified Parties for a period
          or
          portion thereof beginning on or after the Closing Date. The indemnified
          party
          may participate in such proceeding and retain separate co-counsel at its
          sole
          cost and expense. Failure by an indemnifying party to notify the indemnified
          party of its election to defend any such claim or proceeding by a third
          party
          within thirty (30) days after notice thereof shall be deemed a waiver by
          such
          indemnifying party of its right to defend such claim or action.

         

        12.5    
          Non-Assumption
          of Defense.
          If no
          indemnifying party is permitted or elects to assume the defense of any
          such
          claim by a third party or proceeding resulting therefrom, the indemnified
          party
          shall diligently defend against such claim or litigation in such manner
          as it
          may deem appropriate and, in such event, the indemnifying party or parties
          shall
          promptly reimburse the indemnified party for all reasonable out-of-pocket
          costs
          and expenses, legal or otherwise, incurred by the indemnified party and
          its
          affiliates in connection with the defense against such claim or proceeding,
          as
          such costs and expenses are incurred. Any counsel chosen by such indemnified
          party to conduct such defense must be reasonably satisfactory to the
          indemnifying party or parties, and only one counsel shall be retained to
          represent all indemnified parties in an action (except that if litigation
          is
          pending in more than one jurisdiction with respect to an action, one such
          counsel may be retained in each jurisdiction in which such litigation is
          pending). The indemnified party shall not settle or compromise any such
          claim
          without the written consent of the indemnifying party, which consent shall
          not
          be unreasonably withheld.

         

        12.6    
          Indemnified
          Party’s Cooperation as to Proceedings.
          The
          indemnified party will cooperate in all reasonable respects with any
          indemnifying party in the conduct of any proceeding as to which such
          indemnifying party assumes the defense. For the cooperation of the indemnified
          party pursuant to this Section 12.6, the indemnifying party or parties
          shall
          promptly reimburse the indemnified party for all reasonable out-of-pocket
          costs
          and expenses, legal or otherwise, incurred by the indemnified party or
          its
          affiliates in connection therewith, as such costs and expenses are
          incurred.

         

         

        
          
            43

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

         

        12.7    
          Payments
          Treated as Purchase Price Adjustment.
          To the
          extent permitted by applicable law, any payment by Madden, the Company
          or
          Sellers under this Article XII will be treated for Tax purposes as an adjustment
          to the consideration hereunder for the Company Interests.

         

        ARTICLE
          III

         

        Miscellaneous

         

        13.1    Expenses.
          Except as otherwise explicitly set forth herein, whether or not the transactions
          contemplated hereby are consummated, each party hereto shall pay all costs
          and
          expenses incurred by such party in respect of the transactions contemplated
          hereby. All expenses incurred by the Company with respect to the transactions
          contemplated hereby for the benefit of Sellers prior to the Closing, including,
          without limitation, expenses for legal and investment advisory services,
          shall
          be paid by Sellers.

         

        13.2   
          Entirety
          of Agreement.
          This
          Agreement (including the Disclosure Schedule, the Madden Disclosure Schedule
          and
          all other schedules, exhibits and appendices hereto), together with the
          other
          Transaction Documents (including the schedules and exhibits thereto) and
          certificates and other instruments delivered hereunder and thereunder,
          state the
          entire agreement of the parties, merge all prior negotiations, agreements
          and
          understandings, if any, and state in full all representations, warranties,
          covenants and agreements which have induced this Agreement. Each party
          agrees
          that in dealing with third parties no contrary representations will be
          made..

         

        13.3    
          Notices. All notices, demands and communications of any kind which any
          party hereto may be required or desire to serve upon another party under
          the
          terms of this Agreement shall be in writing and shall be given by: (a)
          personal
          service upon such other party; (b) mailing a copy thereof by certified
          or
          registered mail, postage prepaid, with return receipt requested; (c) sending
          a
          copy thereof by Federal Express or equivalent courier service; or
          (d) sending a copy thereof by facsimile, in each case to the parties at the
          respective addresses and facsimile numbers set forth on the signature pages
          hereto.

         

        In
          case
          of service by Federal Express or equivalent courier service or by facsimile
          or
          by personal service, such service shall be deemed complete upon delivery
          or
          transmission, as applicable. In the case of service by mail, such service
          shall
          be deemed complete on the fifth Business Day after mailing. The addresses
          and
          facsimile numbers to which, and persons to whose attention, notices and
          demands
          shall be delivered or sent may be changed from time to time by notice served
          as
          hereinabove provided by any party upon any other party.

         

        13.4   
          Amendment.
          This
          Agreement may be modified or amended only by an instrument in writing,
          duly
          executed by all of the parties hereto.

         

        13.5    Waiver.
          No waiver by any party of any term, provision, condition, covenant, agreement,
          representation or warranty contained in this Agreement (or any breach thereof)
          shall be effective unless it is in writing executed by the party against
          which
          such waiver is to be enforced. No waiver shall be deemed or construed as
          a
          further or continuing waiver of 

         

         

        
          
            44

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        any
          such
          term, provision, condition, covenant, agreement, representation or warranty
          (or
          breach thereof) on any other occasion or as a waiver of any other term,
          provision, condition, covenant, agreement, representation or warranty (or
          of the
          breach of any other term, provision, condition, covenant, agreement,
          representation or warranty) contained in this Agreement on the same or
          any other
          occasion.

         

        13.6    
          Counterparts;
          Facsimile.
          For the
          convenience of the parties, any number of counterparts hereof may be executed,
          each such executed counterpart shall be deemed an original and all such
          counterparts together shall constitute one and the same instrument. Facsimile
          transmission of any signed original counterpart and/or retransmission of
          any
          signed facsimile transmission shall be deemed the same as the delivery
          of an
          original.

         

        13.7    
          Assignment;
          Binding Nature; No Beneficiaries.
          This
          Agreement may not be assigned by any party hereto without the written consent
          of
          Madden and Sellers; provided,
          however,
          that
          Madden may assign its rights hereunder to any affiliate of Madden which
          assumes
          the obligations of Madden hereunder, but no such assignment shall relieve
          Madden
          of any such obligations. Subject to the preceding sentence, this Agreement
          shall
          be binding upon, inure to the benefit of, and be enforceable by the parties
          hereto and their respective heirs, personal representatives, legatees,
          successors and permitted assigns. Except as otherwise expressly provided
          in
          Article XII, this Agreement shall not confer any rights or remedies upon
          any
          Person other than the parties hereto and their respective heirs, personal
          representatives, legatees, successors and permitted assigns.

         

        13.8    
          Headings.
          The
          headings in this Agreement are inserted for convenience only and shall
          not
          constitute a part hereof.

         

        13.9    
          Governing
          Law; Jurisdiction.
          This
          Agreement and all the transactions contemplated hereby, and all disputes
          between
          the parties under or related to this Agreement or the facts and circumstances
          leading to its execution, whether in contract, tort, or otherwise, shall
          be
          governed by, and construed and enforced in accordance with, the laws of
          the
          State of New York including, without limitation, Section 5-1401 of the
          New York
          General Obligations Law and New York Civil Practice Laws and Rules 327.
          In the
          event of any controversy or claim arising out of or relating to this Agreement
          or the breach or alleged breach hereof, each of the parties hereto irrevocably
          (a) submits to the non-exclusive jurisdiction of any New York State court
          sitting in the County of New York or any federal court sitting in U.S.
          District
          Court for the Southern District of the State of New York, (b) waives any
          objection which it may have at any time to the laying of venue of any action
          or
          proceeding brought in any such court, (c) waives any claim that such action
          or
          proceeding has been brought in an inconvenient forum, and (d) agrees that
          service of process or of any other papers upon such party by registered
          mail at
          the address to which notices are required to be sent to such party under
          Section
          13.3 shall be deemed good, proper and effective service upon such
          party.

         

        13.10  
          Construction;
          Units.
          In this
          Agreement (i) words denoting the singular include the plural and vice versa,
          (ii) “it” or “its” or words denoting any gender include all genders,
          (iii) the word “including” shall mean “including without limitation,”
whether or not expressed, (iv) any reference to a statute shall mean the
          statute
          and any regulations thereunder in force as of the date of this Agreement
          or the
          Closing Date, as applicable, unless otherwise 

         

         

         

        
          
            45

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        expressly
          provided, (v) any reference herein to a Section, Article, Schedule or Exhibit
          refers to a Section or Article of or a Schedule or Exhibit to this Agreement
          or
          the Disclosure Schedule, as applicable, unless otherwise stated, and (vi)
          when
          calculating the period of time within or following which any act is to
          be done
          or steps taken, the date which is the reference day in calculating such
          period
          shall be excluded and if the last day of such period is not a Business
          Day, then
          the period shall end on the next day which is a Business Day. 

         

        13.11   Negotiated
          Agreement.
          Madden
          and Sellers acknowledge that they have been advised and represented by
          counsel
          in the negotiation, execution and delivery of this Agreement and the Transaction
          Documents and accordingly agree that if an ambiguity exists with respect
          to any
          provision of this Agreement or the Transaction Documents, such provision shall
          not be construed against any party because such party or its representatives
          drafted such provision.

         

        13.12  
          Public
          Announcements.
          Neither
          Madden nor Sellers shall issue any press release or make any other public
          announcement concerning this Agreement or the transactions contemplated
          hereby
          without the prior written approval of Madden, in the case of an announcement
          by
          Sellers, and Sellers, in the case of an announcement by Madden; provided,
          however,
          that
          Madden or its affiliates may, upon written notice to Sellers, describe
          this
          Agreement and the transactions contemplated hereby in any press release
          or
          filing with the SEC or other Governmental Body it is required to make under
          applicable Law, and if required, necessary or desirable, file this Agreement
          with the SEC.

         

        13.13  
          Remedies
          Cumulative.
          The
          remedies provided for or permitted by this Agreement shall be cumulative
          and the
          exercise by any party of any remedy provided for herein shall not preclude
          the
          assertion or exercise by such party of any other right or remedy provided
          for
          herein.

         

        13.14  
          Severability.
          If any
          provision of this Agreement is found by a court of competent jurisdiction
          to be
          invalid or unenforceable, such provision shall not affect the other provisions,
          but such invalid or unenforceable provision shall be deemed modified to
          the
          extent necessary to render it valid and enforceable, preserving to the
          fullest
          extent permissible the intent of the parties set forth herein.

         

        13.15 
          WAIVER
          OF JURY TRIAL.
          MADDEN
          AND SELLERS HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY
          LAW,
          ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER
          BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS
          AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT OR ANY OF THE TRANSACTIONS
          CONTEMPLATED HEREBY OR THEREBY.

         

        13.16  
          Authority
          of Seller Representative.

         

        (a)  In
          order
          to facilitate the consummation of the transactions contemplated by this
          Agreement and the other Transaction Documents and the resolution of certain
          matters after the Closing between Madden and Sellers, Sellers hereby appoint
          Silverman as the Seller 

         

         

         

        
          
            46

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        Representative
          who shall serve as the attorney-in-fact and agent for each Seller in connection
          with the transactions contemplated by this Agreement and the other Transaction
          Documents. By executing and delivering this Agreement, the Seller Representative
          (i) accepts his appointment and authorization as attorney-in-fact and agent
          on
          behalf of each Seller in accordance with the terms of this Agreement and
          (ii)
          agrees to perform his obligations under, and otherwise comply with, this
          Agreement.

         

        (b)  The
          Seller Representative has the authority, without restriction, to (i) prepare,
          finalize, approve and authorize all exhibits, schedules and other attachments
          to
          any of this Agreement, the other Transaction Documents, and the other contracts,
          certificates, instruments and documents delivered by or on behalf of Sellers
          pursuant to this Agreement and the other Transaction Documents; (ii) deliver
          to
          Madden on behalf of Sellers the share or interest certificates (as appropriate)
          representing all of the Company Interests; (iii) execute, deliver, and
          accept
          delivery, on behalf of each Seller, any other agreements, certificates,
          instruments and documents to be delivered by or on behalf of Sellers pursuant
          to
          this Agreement or the other Transaction Documents; (iv) execute, deliver,
          and
          accept delivery, on behalf of each Seller, such amendments as may be deemed
          by
          the Seller Representative in his sole and absolute discretion to be appropriate
          under this Agreement or the other Transaction Documents; (v) bind Sellers
          by all
          notices received, by all agreements and determinations made, and by all
          agreements, certificates, instruments and other documents executed and
          delivered
          by Sellers under the Transaction Documents (including in connection with
          the
          post-Closing adjustments pursuant to Section 2.3 of this Agreement and
          the
          Earn-Out Payment); (vi) dispute or refrain from disputing any claim made
          by
          Madden under any Transaction Document; (vii) negotiate and compromise any
          dispute which may arise under, and exercise or refrain from exercising
          remedies
          available under, any Transaction Document (including in connection with
          the
          post-Closing adjustments pursuant to Section 2.3 of this Agreement and
          the
          Earn-Out Payment) and sign any releases or other documents with respect
          to such
          dispute or remedy; (viii) waive any condition contained in any Transaction
          Document; (ix) give any and all consents under any Transaction Document;
          (x)
          dispute or refrain from disputing the Contingent Purchase Price Statement
          (as
          defined in the Earn-Out Agreement) delivered in connection with the Earn-Out
          Agreement, or to deliver or refrain from delivering a Notice of Election
          in
          connection with the Earn-Out Agreement; (xi) give such instructions and
          perform
          such actions and refrain from performing such actions as the Seller
          Representative shall in his sole and absolute discretion deem necessary
          or
          appropriate to carry out the provisions of any Transaction Document; (xii)
          receive any payments made to any Seller pursuant to any Transaction Document;
          and (xiii) disburse to Sellers payments made to the Seller Representative
          under
          any Transaction Document in accordance with the allocation referred to
          in
          Section 2.2(a) hereof.

         

        (c)  By
          executing and delivering this Agreement, each Seller hereby jointly and
          severally agrees to indemnify and hold the Seller Representative harmless
          for
          any and all liability, loss, cost, damage or expense (including attorneys’ fees)
          reasonably incurred or suffered as a result of the performance of his duties
          as
          Seller Representative under any Transaction Document, except such that
          arises
          from such Seller Representative’s gross negligence or willful
          misconduct.

         

        (d)  Madden
          and the other Madden Indemnified
          Parties shall be entitled to deal exclusively with the Seller Representative
          as
          the sole and exclusive representative and agent of 

         

         

        
          
            47

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        Sellers
          in respect of this Agreement and the other Transaction Documents and all
          matters
          arising under or pertaining to this Agreement and any Transaction Document.
          Without limiting the foregoing, (i) any notice, communication, demand,
          claim, action or proceeding required or permitted hereunder may be delivered
          by
          Madden to or brought by Madden against the Seller Representative in his
          capacity
          as agent and representative of Sellers with the same effect, and which
          shall be
          binding and effective to the same degree, as if delivered to or brought
          against
          all Sellers or any of them individually and (ii) any settlement or other
          agreement of Madden with the Seller Representative in his capacity as agent
          and
          representative of Sellers in respect of all matters arising under or pertaining
          to this Agreement or any Transaction Document shall have the same effect,
          and be
          binding upon, all Sellers to the same degree as if made with all Sellers
          or any
          of them individually. Any decision, act, consent or instruction of the
          Seller
          Representative shall be final, binding and conclusive upon each Seller,
          and
          Madden may rely upon any such decision, act, consent or instruction of
          the
          Seller Representative as being the decision, act, consent or instruction
          of
          every Seller. Madden is hereby relieved from any liability to any Person
          for any
          acts done by it in accordance with any decision, act, consent or instruction
          of
          the Seller Representative.

         

        (e)  Madden
          and any other Madden Indemnified Party shall be entitled to regard as the
          Seller
          Representative the Person identified to it as such in accordance with the
          provisions of this Agreement unless and until Madden shall have received
          written
          notice, executed by Jeff Silverman, of the designation of another Seller
          or
          Sellers as the Seller Representative(s). 

         

        

        [Signature
          pages follow]

         

        
          
            48

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

       

      
        IN
          WITNESS WHEREOF, the
          parties hereto have duly executed and delivered this Agreement as of the
          date
          first set forth above.

         

        
          	 	
                  STEVEN
                    MADDEN, LTD.

                   

                
	
                  Address:

                  52-16
                    Barnett Ave.

                  Long
                    Island City, New York 11104

                  Attention:
                    Awadhesh Sinha 

                  Facsimile
                    No.: (718) 446-5999

                	
                   

                  By:/s/
                    Jamieson A. Karson

                       
                    Name: Jamieson
                    A. Karson

                       
                    Title: Chairman
                    and Chief Executive Officer

                
	 	 
	
                  with
                    copies to:

                	 
	 	 
	
                  Kramer
                    Levin Naftalis & Frankel LLP

                  1177
                    Avenue of the Americas

                  New
                    York, New York 10036

                  United
                    States of America

                  Attention:
                    James A. Grayer, Esq. 

                  Facsimile
                    No.: (212) 715-8000

                	 
	 	 
	 	 

        

        

         

         

        
 

        
          
            
              49

            

            
              
              

              
                

              

            

            
              
              

            

          

        

        

        

        
          	 	
                  SELLERS

                
	
                  Address:

                	 
	
                   

                  ___________________________________

                  ___________________________________

                  Facsimile
                    No.: ( )

                	
                   

                   

                  /s/
                    Jeffrey Silverman

                  Jeffrey
                    Silverman

                
	 	 

        

        ___________________________________

        ___________________________________

        
          	
                  Address:

                	 
	
                   

                  
                    ___________________________________

                    ___________________________________

                  

                  Facsimile
                    No.: ( )

                	
                   

                   

                  /s/
                    James Randel

                  James
                    Randel

                
	 	 

        

        

        
          	
                  Address:

                	 
	
                  ___________________________________

                  
                    ___________________________________

                  

                   

                  Facsimile
                    No.: ( )

                	
                   

                   

                  /s/
                    Ron Offir

                  Ron
                    Offir

                
	 	 

        

        

        
          	
                  Address:

                	 
	
                  ___________________________________

                  
                    ___________________________________

                  

                   

                  Facsimile
                    No.: ( )

                	
                   

                   

                  /s/
                    Godfrey Baker

                  Godfrey
                    Baker

                
	 	 

        

        

        
          	
                  Address:

                	 
	
                  ___________________________________

                  
                    ___________________________________

                  

                   

                  Facsimile
                    No.: ( )

                	
                   

                   

                  /s/
                    Alyse Nathan

                  Alyse
                    Nathan

                
	 	 

        

        

        
          	
                  Address:

                	 
	
                  ___________________________________

                  
                    ___________________________________

                  

                   

                  Facsimile
                    No.: ( )

                	
                   

                   

                  /s/
                    Andrew Rosca

                  Andrew
                    Rosca

                
	 	 

        

        

         

         

        50

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