Document:

EX-10.13 HILCO SERIES E COMMON STOCK PURCHASE WARR

 

EXHIBIT
10.13

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR (B)
AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS
WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF THIS WARRANT, INCLUDING SECTION 2(f) HEREOF. THE
SECURITIES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE NUMBER SET FORTH ON THE FACE HEREOF
PURSUANT TO SECTION 2(f) HEREOF.

BROOKSIDE TECHNOLOGY HOLDINGS CORP.

Warrant To Purchase Common Stock

	 	 	 	 	 
	Warrant No.: E-1
	 	Number of Shares: 61,273,835
	Date of Issuance: September 26, 2007
	 	 	 	 

Brookside Technology Holdings Corp., a Florida corporation (the “Company”), hereby certifies that,
for Ten United States Dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Hilco Financial, LLC, a Delaware limited liability
company, the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject
to the terms set forth below, to purchase from the Company upon surrender of this Warrant (if
required by Section 2(f)), at any time or times on or after the date hereof, but not after
11:59 P.M. New York City time on the Expiration Date (as defined in Section 1(b) below)
sixty-one million two hundred seventy-three thousand eight hundred thirty-five (61,273,835) fully
paid nonassessable shares of Common Stock (as defined in Section 1(b) below) of the Company
(the “Warrant Shares”) at the Warrant Exercise Price (as defined in Section 1(b) below);
provided, however, that in no event shall the Holder be entitled or required to
exercise this Warrant for a number of Warrant Shares in excess of that number of Warrant Shares
that, upon giving effect to such exercise, would cause the aggregate number of shares of Common
Stock beneficially owned by the Holder and its affiliates to exceed 9.99% of the outstanding shares
of the Common Stock following such exercise. For purposes of the foregoing proviso, the aggregate
number of shares of Common Stock beneficially owned by the Holder and its affiliates shall include
the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which
the determination of such proviso is being made, but shall exclude shares of Common Stock that
would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant and (ii)
exercise, conversion or exchange of the unexercised, unconverted or unexchanged portion of any
other securities of the Company beneficially owned by the Holder

 

 

and its affiliates, subject to a limitation on conversion, exercise or exchange analogous to the
limitation contained herein. Except as set forth in the preceding sentence, for purposes of this
paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended. For purposes of this Warrant, in determining the
number of outstanding shares of Common Stock the Holder may rely on the number of outstanding
shares of Common Stock as reflected in (1) the Company’s most recent Form 10-QSB or Form 10-Q or
Form 10-KSB or Form 10-K, as the case may be, (2) a more recent public announcement by the Company
or (3) any other written (including e-mail) notice by the Company or its transfer agent setting
forth the number of shares of Common Stock outstanding. Upon the written request of the Holder,
the Company shall promptly, but in no event later than two (2) Business Days following the receipt
of such request, confirm in writing to the Holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion, exercise or exchange of securities of the Company, including
this Warrant, if any, by the Holder and its affiliates, since the date as of which such number of
outstanding shares of Common Stock was reported.

     Section 1.

          (a) Credit Agreement. This Warrant was issued in connection with that certain Credit
Agreement, dated as of even date herewith, among the Company and Hilco Financial, LLC (as such
agreement may be amended from time to time as provided in such agreement, the “Credit Agreement”)
or issued in exchange or substitution therefor or replacement thereof. Each capitalized term used,
and not otherwise defined herein, shall have the meaning ascribed thereto in the Credit Agreement.

          (b) Definitions. The following words and terms as used in this Warrant shall have the
following meanings:

               (i) “Common Stock” means (i) the Company’s common stock, $0.001 par value per share, and (ii)
any capital stock into which such Common Stock shall have been changed or any capital stock
resulting from a reclassification of such Common Stock.

               (ii) “Convertible Securities” means any stock or securities (other than Options) directly or
indirectly convertible into or exchangeable or exercisable for Common Stock.

               (iii) “Delivery Date” means the date of receipt by the Company of a Put Notice.

               (iv) “Expiration Date” means the date that is five (5) years after the Warrant Date (as
defined in Section 13) or, if such date does not fall on a Business Day, then the next
Business Day.

               (v) “Fair Market Value” means the fair market value of the Company’s entire equity, on a
fully-diluted basis, determined on a going concern basis as between a willing buyer and a willing
seller and taking into account all relevant factors

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determinative of value without giving effect to any discount for any lack of liquidity
attributable to a lack of a public market for such security, any block discount or discount
attributable to the size of any Person’s holdings of such security, any minority interest or any
voting rights thereof or lack thereof, plus (to the extent not otherwise taken into consideration
in the determination of fair market value of the Company’s entire common equity) the aggregate
amount of cash or property payable or to be surrendered to the Company upon exercise or conversion
of Options and Convertible Securities, and the principal amount of any debt constituting
Convertible Securities, which are then exercisable and “in-the-money.” The Company and the Holder
will use reasonable efforts to determine Fair Market Value, but if such parties are unable to agree
on Fair Market Value within ten (10) days after meeting for the purpose of determining the Fair
Market Value, the Company and the Holder shall, within ten (10) days after such initial 10-day
period, mutually select an appraiser to make a determination of the Fair Market Value (who shall
make such determination within thirty (30) days after selection); provided that if the parties are
unable to agree upon the selection of an appraiser within such 10-day period, the Fair Market Value
shall be determined as follows: the Company and the Holder, shall, within five (5) days after
their failure to agree upon the selection of an appraiser, each select their own appraiser to
determine the “Fair Market Value.” Each such appraiser shall make a determination of the “Fair
Market Value” within thirty (30) days after the date of selection. If the “Fair Market Value” as
determined by one appraiser is within ten percent (10%) of the “Fair Market Value” determined by
the other appraiser, then the Fair Market Value shall be the average of the “Fair Market Values”
determined by the two appraisers. If the “Fair Market Value” determined by one appraiser is not
within ten percent (10%) of the “Fair Market Value” of the other appraiser, then such two
appraisers shall promptly select a third appraiser, which appraiser shall make a determination of
the “Fair Market Value” as promptly as possible but, in any event, within seventy-five (75) days
after the Delivery Date, and the Fair Market Value shall be the median of the “Fair Market Values”
determined by the three appraisers. The determination of the Fair Market Value pursuant to the
preceding sentences shall be final and binding upon the Company and the Holder of Underlying
Warrant Stock. All fees and expenses of the appraisers determining the Fair Market Value of the
Company shall be borne by the Company.

               (vi) “Person” means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization or a government or any department
or agency thereof or any other legal entity.

               (vii) “Principal Market” means, with respect to the Common Stock or any other security, the
principal securities exchange or trading market for the Common Stock or such other security.

               (viii) “Put Price” shall equal, with respect to each share of Underlying Warrant Stock, the
quotient obtained by dividing (i) the Fair Market Value of the Company as of the Delivery Date by
(ii) the sum of the total number of shares of Common Stock outstanding as of the Delivery Date plus
the number of shares of Common Stock issuable upon exercise or conversion of any Options or
Convertible Securities as of the Delivery Date, in each case only to the extent such Options and
Convertible Securities are exercisable and “in-the-money” on the Delivery Date. The expenses of
determining the Put Price shall be borne by the Company.

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               (ix) “Registration Rights Agreement” means that certain Registration Rights Agreement, dated
as of even date herewith, between the Company and Hilco Financial, LLC, as such agreement may be
amended, restated or modified and in effect from time to time.

               (x) “Securities Act” means the Securities Act of 1933, as amended.

               (xi) “Trading Day” means any day on which the Common Stock is traded on the Principal Market;
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to
trade, or actually trades, on such exchange or market for less than 4.5 hours.

               (xii) “Underlying Warrant Stock” means (i) the shares of Common Stock issued or issuable upon
exercise of this Warrant assuming this Warrant were exercised in full immediately prior to the date
of the consummation of the Change in Control, without giving effect to any limitations on exercise
hereof and (ii) any shares of Common Stock issued or issuable with respect to the securities
referred to in clause (i) above by way of stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other reorganization.

               (xiii) “Warrant” means this Warrant and all Warrants issued in exchange, transfer or
replacement thereof pursuant to the terms of this Warrant.

               (xiv) “Warrant Exercise Price” shall be equal to, with respect to any Warrant Share, $0.1370,
subject to adjustment as hereinafter provided.

               (xv) “Weighted Average Price” means, for any security as of any date, the dollar
volume-weighted average price for such security on its Principal Market during the period beginning
at 9:30 a.m. New York City time (or such other time as its Principal Market publicly announces is
the official open of trading) and ending at 4:00 p.m. New York City time (or such other time as its
Principal Market publicly announces is the official close of trading) as reported by Bloomberg
Financial Markets (or any successor thereto) (“Bloomberg”) through its “Volume at Price” functions,
or if the foregoing does not apply, the dollar volume-weighted average price of such security in
the over-the-counter market on the electronic bulletin board for such security during the period
beginning at 9:30 a.m. New York City time (or such other time as such over-the-counter market
publicly announces is the official open of trading), and ending at 4:00 p.m. New York City time (or
such other time as such over-the-counter market publicly announces is the official close of
trading) as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for
such security by Bloomberg for such hours, the average of the highest closing bid price and the
lowest closing ask price of any of the market makers for such security as reported in the “pink
sheets” by the National Quotation Bureau, Inc. If the Weighted Average Price cannot be calculated
for such security on such date on any of the foregoing bases, the Weighted Average Price of such
security on such date shall be the fair market value as mutually determined by the Company and the
Holder. If the Company and the Holder are unable to agree upon the fair market value of the Common
Stock, then such dispute shall be resolved pursuant to Section 2(a). All such
determinations shall be appropriately adjusted for any stock dividend, stock split, stock
combination or other similar transaction during any period during which the Weighted Average Price
is being determined.

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     Section 2. Exercise of Warrant.

          (a) Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder
hereof then registered on the books of the Company, in whole or in part, at any time on any
Business Day on or after the opening of business on the date hereof and prior to 11:59 P.M. New
York City time on the Expiration Date by (i) delivery of a written notice, in the form of the
exercise notice attached as Exhibit A hereto (the “Exercise Notice”), of the Holder’s
election to exercise this Warrant, which notice shall specify the number of Warrant Shares to be
purchased, (ii) (A) payment to the Company of an amount equal to the Warrant Exercise Price
multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the
“Aggregate Exercise Price”) by wire transfer of immediately available funds (or by check if the
Company has not provided the Holder with wire transfer instructions for such payment) or (B) by
notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as
defined in Section 2(e)), and (iii) if required by Section 2(f) or unless the
Holder has previously delivered this Warrant to the Company and it or a new replacement Warrant has
not yet been delivered to the Holder, the surrender to a common carrier for overnight delivery to
the Company as soon as practicable following such date, of this Warrant (or an indemnification
undertaking, in customary form, with respect to this Warrant in the case of its loss, theft or
destruction pursuant to Section 10); provided, that if such Warrant Shares are to
be issued in any name other than that of the registered Holder of this Warrant, such issuance shall
be deemed a transfer and the provisions of Section 7 shall be applicable. In the event of
any exercise of the rights represented by this Warrant in compliance with this Section
2(a), on the second (2nd) Business Day (the “Warrant Share Delivery Date”) following
the date of its receipt of the Exercise Notice, the Aggregate Exercise Price (or notice of Cashless
Exercise) and if required by Section 2(f) (or unless the Holder has previously delivered
this Warrant to the Company and it or a new replacement Warrant has not yet been delivered to the
Holder), this Warrant (or an indemnification undertaking, in customary form, with respect to this
Warrant in the case of its loss, theft or destruction pursuant to Section 10) (the
“Exercise Delivery Documents”), (A) provided that the transfer agent is participating in The
Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program and provided that the
Holder is eligible to receive shares through DTC, the Company shall credit such aggregate number of
shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s
balance account with DTC through its Deposit Withdrawal Agent Commission system or (B) the Company
shall issue and deliver to the address specified in the Exercise Notice, a certificate, registered
in the name of the Holder or its designee, for the number of shares of Common Stock to which the
Holder shall be entitled. Upon the later of the date of delivery of (x) the Exercise Notice and
(y) the Aggregate Exercise Price referred to in clause (ii)(A) above or notification to the Company
of a Cashless Exercise referred to in Section 2(e), the Holder shall be deemed for all
purposes to have become the Holder of record of the Warrant Shares with respect to which this
Warrant has been exercised (the date thereof being referred to as the “Deemed Issuance Date”),
irrespective of the date of delivery of this Warrant as required by clause (iii) above or the

certificates evidencing such Warrant Shares. In the case of a dispute as to the determination of
the Warrant Exercise Price, the Weighted Average Price of a security or the arithmetic calculation
of the number of Warrant Shares, the Company shall promptly issue to the Holder the number of
shares of Common Stock that is not disputed and shall submit the disputed determinations or
arithmetic calculations to the Holder via facsimile within two (2) Business Days after receipt of
the Holder’s Exercise Notice. If the Holder and the Company are unable to agree upon the
determination of the Warrant

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Exercise Price, the Weighted Average Price or arithmetic calculation of the number of Warrant
Shares within three (3) Business Days of such disputed determination or arithmetic calculation
being submitted to the Holder, then the Company shall immediately submit via facsimile (i) the
disputed determination of the Warrant Exercise Price or the Weighted Average Price to an
independent, reputable investment banking firm agreed to by the Company and the Holder or (ii) the
disputed arithmetic calculation of the number of Warrant Shares to its independent, outside public
accountant. The Company shall cause the investment banking firm or the accountant, as the case may
be, to perform the determinations or calculations and notify the Company and the Holder of the
results no later than three (3) Business Days after the time it receives the disputed
determinations or calculations. Such investment banking firm’s or accountant’s determination or
calculation, as the case may be, shall be deemed conclusive absent error.

          (b) If this Warrant is submitted for exercise, as may be required by Section 2(f), and
unless the rights represented by this Warrant shall have expired or shall have been fully
exercised, the Company shall, as soon as practicable and in no event later than three (3) Business
Days after receipt of this Warrant (the “Warrant Delivery Date”) and at its own expense, issue a
new Warrant identical in all respects to this Warrant exercised except it shall represent rights to
purchase the number of Warrant Shares purchasable immediately prior to such exercise under this
Warrant, less the number of Warrant Shares with respect to which such Warrant is exercised
(together with, in the case of a Cashless Exercise, the number of Warrant Shares surrendered in
lieu of payment of the Exercise Price).

          (c) No fractional shares of Common Stock are to be issued upon the exercise of this Warrant,
but rather the number of shares of Common Stock issued upon exercise of this Warrant shall be
rounded up or down to the nearest whole number (with 0.5 rounded up).

          (d) If the Company shall fail for any reason or for no reason (x) to issue and deliver to the
Holder within three (3) Business Days of receipt of the Exercise Delivery Documents a certificate
for the number of shares of Common Stock to which the Holder is entitled or to credit the Holder’s
balance account with DTC for such number of shares of Common Stock to which the Holder is entitled
upon the Holder’s exercise of this Warrant or (y) to issue and deliver to the Holder on the Warrant
Delivery Date a new Warrant for the number of shares of Common Stock to which the Holder is
entitled pursuant to Section 2(b) hereof, if any, then the Company shall, in addition to
any other remedies under this Warrant or the Credit Agreement or otherwise available to the Holder,
pay as additional damages in cash to the Holder on each day after such third (3rd) Business Day
that such shares of Common Stock are not issued and delivered to the Holder, in the case of clause
(x) above, or such third (3rd) Business Day that such Warrant is not delivered, in the case of
clause (y) above, an amount equal to the sum of (i) 0.5% of the product of (A) the number of shares
of Common Stock not issued to the Holder on or prior to the Warrant Share Delivery Date and (B) the
Weighted Average Price of the Common Stock on the Warrant Share Delivery Date, in the case of the
failure to deliver Common Stock, and (ii) if the Company has failed to deliver a Warrant to the
Holder on or prior to the Warrant Delivery Date, 0.5% of the product of (x) the number of shares of
Common Stock issuable upon exercise of the Warrant as of the Warrant Delivery Date, and (y) the
Weighted Average Price of the Common Stock on the Warrant Delivery Date; provided that in no event
shall cash damages accrue pursuant to this Section 2(d) during the period, if any, in which
any Warrant Shares are the subject of a bona fide dispute that is subject to and being resolved

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pursuant
to, and in compliance with the time periods and other provisions of, the dispute resolution provisions of
Section 2(a). Alternatively, subject to the dispute resolution provisions of Section
2(a), at the election of the Holder made in the Holder’s sole discretion, the Company shall pay
to the Holder, in lieu of the additional damages referred to in the preceding sentence (but in
addition to all other available remedies that the Holder may pursue hereunder and under the Credit
Agreement), 110% of the amount that (A) the Holder’s total purchase price (including brokerage
commissions, if any) for shares of Common Stock purchased to make delivery in satisfaction of a
sale by the Holder of the shares of Common Stock to which the Holder is entitled but has not
received upon an exercise, exceeds (B) the net proceeds received by the Holder from the sale of the
shares of Common Stock to which the Holder is entitled but has not received upon such exercise.

     (e) Notwithstanding anything contained herein to the contrary, the Holder may at any time
prior to the Expiration Date, at its election exercised in its sole discretion, exercise this
Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be
made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to
receive upon such exercise the “Net Number” of shares of Common Stock determined according to the
following formula (a “Cashless Exercise”):

     Net Number = (A x B) — (A x C)

                                            B

          For purposes of the foregoing formula:

A= the total number of shares with respect to which
this Warrant is then being exercised;

B= the arithmetic average of the Weighted Average
Price of the Common Stock on each of the ten (10)
consecutive Trading Days immediately preceding the
date of the delivery of the Exercise Notice; and

C= the Warrant Exercise Price then in effect for the
applicable Warrant Shares at the time of such
exercise.

          (f) Book-Entry. Notwithstanding anything to the contrary set forth herein, upon
exercise of this Warrant in accordance with the terms hereof, the Holder shall not be required to
physically surrender this Warrant to the Company unless it is being exercised for all of the
Warrant Shares represented by the Warrant. The Holder and the Company shall maintain records
showing the number of Warrant Shares exercised and issued and the dates of such exercises or shall
use such other method, reasonably satisfactory to the Holder and the Company, so as not to require
physical surrender of this Warrant upon each such exercise. In the event of any dispute or
discrepancy, such records of the Company establishing the number of Warrant Shares to which the
Holder is entitled shall be controlling and determinative in the absence of demonstrable error.
Notwithstanding the foregoing, if this Warrant is exercised as aforesaid, the Holder may not
transfer this Warrant unless the Holder first physically surrenders this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the

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Holder a new Warrant of like tenor, registered as the Holder may request, representing in the
aggregate the remaining number of Warrant Shares represented by this Warrant. The Holder and any
assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of
this paragraph, following exercise of any portion of this Warrant, the number of Warrant Shares
represented by this Warrant may be less than the number stated on the face hereof. Each Warrant
shall bear the following legend:

ANY TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF
THIS WARRANT, INCLUDING SECTION 2(f) HEREOF. THE SECURITIES
REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE NUMBER SET FORTH ON
THE FACE HEREOF PURSUANT TO SECTION 2(f) HEREOF.

     Section 3. Covenants as to Common Stock. The Company hereby covenants and agrees as
follows:

          (a) This Warrant is, and any Warrants issued in substitution for or replacement of this
Warrant will upon issuance be, duly authorized and validly issued.

          (b) All Warrant Shares that may be issued upon the exercise of the rights represented by this
Warrant will, upon issuance and receipt of payment therefor from the Holder (including pursuant to
a Cashless Exercise, as applicable), be validly issued, fully paid and nonassessable and free from
all taxes, liens and charges with respect to the issue thereof.

          (c) During the period within which the rights represented by this Warrant may be exercised,
the Company will at all times have authorized and reserved at least 150% of the number of shares of
Common Stock needed to provide for the exercise of the rights then represented by this Warrant.

          (d) If, and so long as, any shares of Common Stock shall be listed on any securities exchange
or quoted on the OTC Bulletin Board or other quotation system or trading market, the shares of
Common Stock issuable upon exercise of this Warrant shall be so listed or quoted; and the Company
shall so list (or cause to be quoted) on such exchange, quotation system or market, and shall
maintain such listing or quotation of, any other shares of capital stock of the Company issuable
upon the exercise of this Warrant if and so long as any shares of the same class shall be listed or
quoted on such securities exchange, or quotation system or market.

          (e) The Company will not, by amendment of its articles of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant. Without limiting the generality
of the foregoing, the Company (i) will not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above $0.001 per share, and (ii) will take all such

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actions as may be necessary or appropriate in order that the Company may validly and legally
issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant.

          (f) This Warrant will be binding upon any entity succeeding to the Company by merger,
consolidation or acquisition of all or substantially all of the Company’s assets.

     Section 4. Taxes. The Company shall pay any and all taxes that may be payable with
respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant.

     Section 5. Warrant Holder Not Deemed a Shareholder. No Holder, as such, of this
Warrant shall be entitled to vote or receive dividends or be deemed the holder of shares of the
Company for any purpose (other than to the extent that the Holder is deemed to be a beneficial
holder of shares under applicable securities laws after taking into account the limitation set
forth in the first paragraph of this Warrant), nor shall anything contained in this Warrant be
construed to confer upon the Holder hereof, as such, any of the rights of a shareholder of the
Company or any right to vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the Deemed Issuance Date of the Warrant Shares that the Holder is then entitled to receive
upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be
construed as imposing any liabilities on the Holder to purchase any securities (except to the
extent set forth in an Exercise Notice) or as a shareholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this
Section 5, the Company will provide the Holder with copies of the same notices and other
information given to the stockholders of the Company generally, contemporaneously with the giving
thereof to the stockholders.

     Section 6. Representations of Holder. The Holder, by the acceptance hereof,
represents that it is acquiring this Warrant, and upon exercise hereof (other than pursuant to a
Cashless Exercise) will acquire the Warrant Shares, for its own account and not with a view
towards, or for resale in connection with, the public sale or distribution of this Warrant or the
Warrant Shares, except pursuant to sales registered or exempted under the Securities Act;
provided, however, that by making the representations herein, the Holder does not
agree to hold this Warrant or any of the Warrant Shares for any minimum or other specific term and
reserves the right to dispose of this Warrant and the Warrant Shares at any time in accordance with
or pursuant to a registration statement or an exemption under the Securities Act. The Holder
further represents, by acceptance hereof, that, as of this date, the Holder is an “accredited
investor” as such term is defined in Rule 501(a)(3) of Regulation D promulgated by the Securities
and Exchange Commission under the Securities Act. Each delivery of an Exercise Notice, other than
in connection with a Cashless Exercise, shall constitute confirmation at such time by the Holder of
the representations concerning the Warrant Shares set forth in the first two sentences of this
Section 6, unless contemporaneous with the delivery of such Exercise Notice the Holder
notifies the Company in writing that it is not making such representations (a “Representation
Notice”). If the Holder delivers a Representation Notice in connection with an exercise, it shall
be a condition to the Holder’s exercise of this Warrant and the Company’s obligations set forth in
Section 2 in connection with such exercise, that the Company receive such other
representations as the Company considers reasonably necessary to assure the Company that the
issuance of its

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securities upon exercise of this Warrant shall not violate any United States or state
securities laws.

     Section 7. Ownership and Transfer.

          (a) The Company shall maintain at its principal executive offices (or such other office or
agency of the Company as it may designate by notice to the Holder), a register for this Warrant, in
which the Company shall record the name and address of the person in whose name this Warrant has
been issued, as well as the name and address of each transferee. The Company may treat the person
in whose name any Warrant is registered on the register as the owner and holder thereof for all
purposes, notwithstanding any notice to the contrary, but in all events recognizing any transfers
made in accordance with the terms of this Warrant.

          (b) The Company is obligated to register the Warrant Shares for resale under the Securities
Act pursuant to the Registration Rights Agreement and the initial Holder of this Warrant (and
certain assignees thereof) is entitled to the registration rights in respect of the Warrant Shares
as set forth in the Registration Rights Agreement.

     Section 8. Adjustment of Warrant Exercise Price and Number of Warrant Shares. The
Warrant Exercise Price and the number of shares of Common Stock issuable upon exercise of this
Warrant shall be adjusted from time to time as follows:

          (a) Adjustment of Warrant Exercise Price and Number of Shares upon Issuance of Common
Stock. If and whenever on or after the Warrant Date (as defined in Section 13), the
Company issues or sells, or is deemed to have issued or sold, any shares of Common Stock (including
the issuance or sale of shares of Common Stock owned or held by or for the account of the Company),
for a consideration per share less than a price (the “Applicable Price”) equal to the Warrant
Exercise Price in effect immediately prior to such issuance or sale, then immediately after such
issue or sale the Warrant Exercise Price then in effect shall be reduced to an amount equal to such
consideration per share. Upon each such adjustment of the Warrant Exercise Price pursuant to the
immediately preceding sentence, the number of shares of Common Stock acquirable upon exercise of
this Warrant shall be adjusted to the number of shares determined by multiplying the Warrant
Exercise Price in effect immediately prior to such adjustment by the number of shares of Common
Stock acquirable upon exercise of this Warrant immediately prior to such adjustment and dividing
the product thereof by the Warrant Exercise Price resulting from such adjustment.

          (b) Effect on Warrant Exercise Price of Certain Events. For purposes of determining
the adjusted Warrant Exercise Price under Section 8(a) above (which, for the avoidance of
doubt, the Company expressly agrees shall mean, at any date after the Warrant Date, for all
purposes of this Section 8, including for purposes of determining whether the Company has
issued or sold, or shall be deemed to have issued or sold, any shares of Common Stock for a
consideration per share less than a price equal to the Applicable Price), the following shall be
applicable:

               (i) Issuance of Options. If the Company in any manner grants or sells any Options and
the lowest price per share for which one share of Common Stock is issuable

-10-

 

upon the exercise of any such Option or upon conversion, exchange or exercise of any
Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price,
then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold
by the Company at the time of the granting or sale of such Option for such price per share. For
purposes of this Section 8(b)(i), the “lowest price per share for which one share of Common
Stock is issuable upon exercise of any such Option or upon conversion, exchange or exercise of any
Convertible Security issuable upon exercise of any such Option” shall be equal to the sum of the
lowest amounts of consideration (if any) received or receivable by the Company with respect to any
one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option and
upon conversion, exchange or exercise of any Convertible Security issuable upon exercise of such
Option. No further adjustment of the Warrant Exercise Price shall be made upon the actual issuance
of such Common Stock or of such Convertible Securities upon the exercise of such Options or upon
the actual issuance of such Common Stock upon conversion, exchange or exercise of such Convertible
Securities.

               (ii) Issuance of Convertible Securities. If the Company in any manner issues or sells
any Convertible Securities and the lowest price per share for which one share of Common Stock is
issuable upon such conversion, exchange or exercise thereof is less than the Applicable Price, then
such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the issuance or sale of such Convertible Securities for such price per
share. For the purposes of this Section 8(b)(ii), the “lowest price per share for which
one share of Common Stock is issuable upon such conversion, exchange or exercise” shall be equal to
the sum of the lowest amounts of consideration (if any) received or receivable by the Company with
respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon
conversion, exchange or exercise of such Convertible Security. No further adjustment of the
Warrant Exercise Price shall be made upon the actual issuance of such Common Stock upon conversion,
exchange or exercise of such Convertible Securities, and if any such issue or sale of such
Convertible Securities is made upon exercise of any Options for which adjustment of the Warrant
Exercise Price had been or are to be made pursuant to other provisions of this Section
8(b), no further adjustment of the Warrant Exercise Price shall be made by reason of such issue
or sale.

               (iii) Change in Option Price or Rate of Conversion. If the purchase, exchange or
exercise price provided for in any Options, the additional consideration, if any, payable upon the
issue, conversion, exchange or exercise of any Convertible Securities, or the rate at which any
Options or Convertible Securities are convertible into or exchangeable or exercisable for Common
Stock changes at any time, the Warrant Exercise Price in effect at the time of such change shall be
adjusted to the Warrant Exercise Price that would have been in effect at such time had such Options
or Convertible Securities provided for such changed purchase, exchange or exercise price,
additional consideration or changed conversion rate, as the case may be, at the time initially
granted, issued or sold and the number of shares of Common Stock acquirable hereunder shall be
correspondingly readjusted. For purposes of this Section 8(b)(iii), if the terms of any
Option or Convertible Security that was outstanding as of the date of issuance of this Warrant are
changed in the manner described in the immediately preceding sentence, then such Option or
Convertible Security and the Common Stock deemed issuable upon exercise, conversion or exchange
thereof shall be deemed to have been issued as of the date

-11-

 

of such change. No adjustment shall be made if such adjustment would result in an increase of
the Warrant Exercise Price then in effect.

          (c) Effect on Warrant Exercise Price of Certain Events. For purposes of determining
the adjusted Warrant Exercise Price under Sections 8(a) and 8(b) above (which, for the
avoidance of doubt, the Company expressly agrees shall mean, at least as of any date after the
Warrant Date, for all purposes of this Section 8, including for purposes of determining
whether the Company has issued or sold, or shall be deemed to have issued or sold, any shares of
Common Stock for a consideration per share less than a price equal to the Applicable Price), the
following shall be applicable:

               (i) Calculation of Consideration Received. In case any Options are issued in
connection with the issue or sale of other securities of the Company, together comprising one
integrated transaction or series of related transactions, (A) the Options will be deemed to have
been issued for a consideration equal to the greatest of (I) $0.01, (II) the specific aggregate
consideration, if any, allocated to such Options, and (III) the Black-Scholes Value (as defined
below) of such Options (the greatest of (I), (II) and (III), the “Option Consideration”) and, for
purposes of applying the provisions of this Section 8, the Option Consideration shall be
allocated pro rata among all the shares of Common Stock issuable upon exercise of such Options to
determine the consideration per each such share of Common Stock and (B) the other securities will
be deemed to have been issued for an aggregate consideration equal to the aggregate consideration
received by the Company for the Options and other securities (determined as provided below with
respect to each share of Common Stock represented thereby), less the Option Consideration. If any
Common Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or
sold for cash, the consideration received therefor will be deemed to be the net amount received by
the Company therefor. If any Common Stock, Options or Convertible Securities are issued or sold
for a consideration other than cash, the amount of such consideration received by the Company will
be the fair value of such consideration, except where such consideration consists of marketable
securities, in which case the amount of consideration received by the Company will be the Weighted
Average Price of such securities on the date of receipt of such securities. If any Common Stock,
Options or Convertible Securities are issued to the owners of the non-surviving entity in
connection with any merger in which the Company is the surviving entity, the amount of
consideration therefor will be deemed to be the fair value of such portion of the net assets and
business of the non-surviving entity as is attributable to such Common Stock, Options or
Convertible Securities, as the case may be. The fair value of any consideration other than cash or
securities will be determined jointly by the Company and the Holder. If such parties are unable to
reach agreement within ten (10) days after the occurrence of an event requiring valuation (the
“Valuation Event”), the fair value of such consideration will be determined within five (5)
Business Days after the tenth (10th) day following the Valuation Event by an independent, reputable
appraiser jointly selected by the Company and the Holder. The determination of such appraiser
shall be final and binding upon all parties absent error, and the fees and expenses of such
appraiser shall be borne by the Company.

               (ii) Record Date. If the Company takes a record of the holders of Common Stock for
the purpose of entitling them (1) to receive a dividend or other distribution payable in Common
Stock, Options or in Convertible Securities or (2) to subscribe for or

-12-

 

purchase Common Stock, Options or Convertible Securities, then such record date will be deemed
to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or
sold upon the declaration of such dividend or the making of such other distribution or the date of
the granting of such right of subscription or purchase, as the case may be.

               (iii) Black-Scholes Value. The “Black-Scholes Value” of any Options shall mean the
sum of the amounts resulting from applying the Black-Scholes pricing model to each such Option,
which calculation is made with the following inputs: (i) the “option striking price” being equal to
the lowest exercise price possible under the terms of such Option on the date of the issuance of
such Option (the “Valuation Date”), (ii) the “interest rate” being equal to the Federal Reserve US
H.15 T Note Treasury Constant Maturity 1 Year rate on the Valuation Date (as reported by Bloomberg
through its “ALLX H15T” function (accessed by typing “ALLX H15T” [GO] on a Bloomberg terminal, and
inserting the date of the Valuation Date and then looking at the row entitled “Treas Const Mat 1
Year” under the column entitled “Previous Value”)), or if such rate is not available then such
other similar rate as mutually agreed to by the Company and the Holder, (iii) the “time until
option expiration” being the time from the Valuation Date until the expiration date of such Option,
(iv) the “current stock price” being equal to the Weighted Average Price of the Common Stock on the
Valuation Date, (v) the “volatility” being the 100-day historical volatility of the Common Stock as
of the Valuation Date (as reported by the Bloomberg “HVT” screen), and (vi) the “dividend rate”
being equal to zero. Within three (3) Business Days after the Valuation Date, each of the Company
and the Holder shall deliver to the other a written calculation of its determination of the
Black-Scholes Value of the Options. If the Holder and the Company are unable to agree upon the
calculation of the Black-Scholes Value of the Options within five (5) Business Days of the
Valuation Date, then the Company shall submit via facsimile the disputed calculation to an
investment banking firm (jointly selected by the Company and the Holder) within seven (7) Business
Days of the Valuation Date. The Company shall cause such investment banking firm to perform the
calculations and notify the Company and the Holder of the results no later than ten (10) Business
Days after the Valuation Date. Such investment banking firm’s calculation of the Black-Scholes
Value of the Options shall be deemed conclusive absent error. The Company shall bear the fees and
expenses of such investment banking firm for providing such calculation.

          (d) Adjustment of Warrant Exercise Price upon Subdivision or Combination of Common
Stock. If the Company at any time after the date of issuance of this Warrant subdivides (by
any stock split, stock dividend, recapitalization or otherwise) its outstanding shares of Common
Stock into a greater number of shares, the Warrant Exercise Price in effect immediately prior to
such subdivision will be proportionately reduced and the number of shares of Common Stock
obtainable upon exercise of this Warrant will be proportionately increased. If the Company at any
time after the date of issuance of this Warrant combines (by combination, reverse stock split or
otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Warrant
Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of shares of Common Stock obtainable upon exercise of this Warrant will be
proportionately decreased. Any adjustment under this Section 8(d) shall become effective
at the close of business on the date the subdivision or combination becomes effective.

-13-

 

          (e) Distribution of Assets. If the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, by
way of return of capital or otherwise (including any distribution of cash, stock or other
securities, property or options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a “Distribution”), at any time after the issuance of
this Warrant, then, in each such case:

               (i) the Warrant Exercise Price in effect immediately prior to the close of business on the
record date fixed for the determination of holders of Common Stock entitled to receive the
Distribution shall be reduced, effective as of the close of business on such record date, to a
price determined by multiplying such Warrant Exercise Price by a fraction of which (A) the
numerator shall be the Weighted Average Price of the Common Stock on the Trading Day immediately
preceding such record date minus the value of the Distribution (as determined in good faith by the
Company’s board of directors) applicable to one share of Common Stock, and (B) the denominator
shall be the Weighted Average Price of the Common Stock on the trading day immediately preceding
such record date; and

               (ii) either (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall be
increased to a number of shares equal to the number of shares of Common Stock obtainable
immediately prior to the close of business on the record date fixed for the determination of
holders of Common Stock entitled to receive the Distribution multiplied by the reciprocal of the
fraction set forth in the immediately preceding clause (i), or (B) in the event that the
Distribution is of common stock of a company whose common stock is traded on a national securities
exchange or a national automated quotation system, then the Holder shall receive an additional
warrant, the terms of which shall be identical to those of this Warrant, except that such warrant
shall be exercisable for the amount of the assets that would have been payable to the Holder
pursuant to the Distribution had the Holder exercised this Warrant immediately prior to such record
date and with an exercise price equal to the amount by which the exercise price of this Warrant was
decreased with respect to the Distribution pursuant to the terms of the immediately preceding
clause (i).

          (f) Certain Events. If any event occurs of the type contemplated by the provisions of
this Section 8 but not expressly provided for by such provisions (including the granting of
stock appreciation rights, phantom stock rights or other rights with equity features), then the
Company’s board of directors will make an appropriate adjustment in the Warrant Exercise Price and
the number of shares of Common Stock obtainable upon exercise of this Warrant; provided that no
such adjustment will increase the Warrant Exercise Price or decrease the number of shares of Common
Stock obtainable as otherwise determined pursuant to this Section 8.

          (g) Notices.

               (i) As soon as reasonably practicable, but in no event later than two (2) Business Days, upon
any adjustment of the Warrant Exercise Price, the Company will give written notice thereof to the
Holder, setting forth in reasonable detail, and certifying, the calculation of such adjustment;
provided, however, that neither the timing of giving any such

-14-

 

notice nor any failure by the Company to give such a notice shall effect any such adjustment
or the effective date thereof.

               (ii) The Company will give written notice to the Holder at least ten (10) days prior to the
date on which the Company closes its books or takes a record (A) with respect to any dividend or
distribution upon the Common Stock, (B) with respect to any pro rata subscription offer to holders
of Common Stock or (C) for determining rights to vote with respect to any Organic Change (as
defined below), dissolution or liquidation, provided that such information shall be made known to
the public prior to or in conjunction with such notice being provided to the Holder.

               (iii) The Company will also give written notice to the Holder at least ten (10) days prior to
the date on which any Organic Change, dissolution or liquidation will take place, provided that
such information shall be made known to the public prior to or in conjunction with such notice
being provided to the Holder.

     Section 9. Purchase Rights; Reorganization, Reclassification, Consolidation, Merger or
Sale. (a) In addition to any adjustments pursuant to Section 8 above, if at any time
the Company grants, issues or sells any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property pro rata to the record holders of any class of its
capital stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms
applicable to such Purchase Rights, the aggregate Purchase Rights that the Holder could have
acquired if the Holder had held the number of shares of Common Stock acquirable upon complete
exercise of this Warrant immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the
record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights.

          (b) Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all
or substantially all of the Company’s assets to another Person or other transaction that is
effected in such a way that holders of Common Stock are entitled to receive (either directly or
upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common
Stock is referred to herein as “Organic Change.” Prior to the consummation of any (i) sale of all
or substantially all of the Company’s assets to an acquiring Person or (ii) other Organic Change
following which the Company is not a surviving entity, the Company will secure from the Person
purchasing such assets or the successor resulting from such Organic Change (in each case, the
“Acquiring Entity”) a written agreement (in form and substance satisfactory to the Holder) to
deliver to the Holder in exchange for such Warrant, a security of the Acquiring Entity evidenced by
a written instrument substantially similar in form and substance to this Warrant and satisfactory
to the Holder (including, an adjusted warrant exercise price equal to the value for the Common
Stock reflected by the terms of such consolidation, merger or sale, and exercisable for a
corresponding number of shares of Common Stock acquirable and receivable upon exercise of the
Warrant (without regard to any limitations on exercises), if the value so reflected is less than
the Warrant Exercise Price in effect immediately prior to such consolidation, merger or sale).
Prior to the consummation of any other Organic Change, the Company shall make appropriate provision
(in form and substance satisfactory to the Holder, without regard to any limitation on exercise
thereof) to ensure that the

-15-

 

Holder will thereafter have the right to acquire and receive in lieu of or in addition to (as
the case may be) the shares of Common Stock immediately theretofore acquirable and receivable upon
the exercise of this Warrant (without regard to any limitations on exercises), such shares of
stock, securities or assets that would have been issued or payable in such Organic Change with
respect to or in exchange for the number of shares of Common Stock that would have been acquirable
and receivable upon the exercise of this Warrant as of the date of such Organic Change (without
taking into account any limitations or restrictions on the exerciseability of this Warrant).

     Section 10. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated or destroyed, the Company shall promptly, on receipt of an indemnification
undertaking in customary form (or in the case of a mutilated Warrant, the Warrant), issue a new
Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

     Section 11. Notice. Any notices, consents, waivers or other communications required
or permitted to be given under the terms of this Warrant must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

          If to the Company:

Brookside Technology Holdings Corp.

7703 North Lamar Blvd, Suite 500

Austin, TX 78752

Facsimile: (813) 854-1045

Attention: Michael Nole

          With copy to:

Shumaker, Loop & Kendrick, LLP

101 East Kennedy Boulevard, Suite 2800

Tampa, Florida

Facsimile: (813) 229-1660

Attention: Julio Esquivel, Esq.

If to the initial Holder of this Warrant, to it at the address and facsimile number set forth on
the Credit Agreement, with copies to the Holder’s representatives as set forth in the Credit
Agreement, or, in the case of the Holder or any other Person named above, at such other address
and/or facsimile number and/or to the attention of such other person as the recipient party has
specified by written notice to the other party at least five (5) Business Days prior to the
effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the
sender’s facsimile machine containing the time, date, recipient facsimile number and an image of
the first page of such transmission or (C) provided by a nationally recognized overnight

-16-

 

delivery service shall be rebuttable evidence of personal service, receipt by facsimile or deposit
with a nationally recognized overnight delivery service in accordance with clause (i), (ii) or
(iii) above, respectively.

     Section 12. Date. The date of this Warrant is September 26, 2007 (the “Warrant
Date”). This Warrant, in all events, shall be wholly void and of no effect after 11:59 P.M., New
York City time, on the Expiration Date, except that notwithstanding any other provisions hereof,
the provisions of Section 7 shall continue in full force and effect after such date as to
any Warrant Shares or other securities issued upon the exercise of this Warrant.

     Section 13. Put Arrangement.

          (a) Notwithstanding anything to the contrary contained herein and without limiting any of the
Holder’s rights and remedies hereunder and under the Credit Agreement and the Registration Rights
Agreement, at any time after the earliest to occur of a (a) the occurrence of an Event of Default
and (b) a Change of Control (each, a “Trigger Event”), the Holder will have the right to cause the
Company to purchase (the “Put”) all (but not less than all) of the Underlying Warrant Stock then in
existence and held by the Holder at the Put Price by delivering a written notice (the “Put Notice”)
to the Company.

          (b) Upon the delivery of any Put Notice, the Company will be obligated to purchase all of the
Underlying Warrant Stock (the shares representing the Underlying Warrant Stock being referred to as
the “Put Shares”) at a mutually agreeable time and place, which will in no event be later than
ninety (90) days after the receipt by the Company of the Put Notice (the “Put Closing”).

          (c) At any Put Closing, the Holder of Underlying Warrant Stock shall deliver to the Company
certificates representing the Put Shares and/or the Warrant held by such holder, as applicable, and
the Company shall deliver to such holder, by cashier’s or certified check or wire transfer of
immediately available funds payable to such holder, an amount equal to the product of (x) the Put
Price multiplied by (y) the number of Put Shares.

          (d) If the Company fails to satisfy its obligations pursuant to the Put, the Holder of the
Underlying Warrant Stock may pursue any and all rights and remedies at law or in equity.

          (e) Notwithstanding the foregoing provisions of this Section 13, this subsection (e)
shall apply in the event of a Change of Control. The Company shall give the Holder at least ten
(10) days prior written notice of any transaction that results in a Change of Control (a “Change of
Control Transaction”). If the Holder delivers a Put Notice at least five (5) days prior to such
Change of Control Transaction, the Put Closing shall be held on the same date as the closing of the
Change of Control Transaction and, at the election of the Holder, the Fair Market Value of the
Company for purposes of calculating the Put Price shall be the product of (A) the highest price per
share of Common Stock paid (whether directly or indirectly by way of a purchase of assets of the
Company) by an independent third-party in such Change of Control Transaction and (B) the sum of the
total number of shares of Common Stock outstanding as of the closing of the Change of Control
Transaction plus the number of shares of Common Stock

-17-

 

issuable upon exercise or conversion of any Options or Convertible Securities as of the
closing of the Change of Control Transaction, in each case to the extent such Options and
Convertible Securities are exercisable and “in the money” as of (including as a result of), or are
otherwise being cashed out in connection with, the closing of the Change of Control Transaction and
in each case calculated as of the closing of the Change of Control Transaction. For purposes of
this paragraph, “price per share paid” means all cash and other property, if any, payable to any
holder of Common Stock or their Affiliates in connection with such transaction, and includes all
amounts payable over time, all contingent payments, all fees and all other amounts. The Holder may
deliver the Company all of the Warrant (rather than shares of Warrant Shares) held by the Holder in
satisfaction of the sale of the Holder’s Underlying Warrant Stock hereunder, in which event the Put
Price will be reduced by the Exercise Price of the Warrant(s) so delivered.

     Section 14. Amendment and Waiver. Except as otherwise provided herein, the provisions
of this Warrants may be amended and the Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company has obtained the written
consent of the Holder.

     Section 15. Descriptive Headings; Governing Law. The descriptive headings of the
several sections and paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by the internal laws of the State
of Illinois, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Illinois.

     Section 16. Rules of Construction. Unless the context otherwise requires, (a) all
references to Articles, Sections, Schedules or Exhibits are to Articles, Sections, Schedules or
Exhibits contained in or attached to this Warrant, (b) each accounting term not otherwise defined
in this Warrant has the meaning assigned to it in accordance with GAAP, (c) words in the singular
or plural include the singular and plural and pronouns stated in either the masculine, the feminine
or neuter gender shall include the masculine, feminine and neuter and (d) the use of the word
“including” in this Warrant shall be by way of example rather than limitation.

     Section 17. Information Rights. The Company covenants and agrees that Sections
6.1(a), (b) and (c) of the Credit Agreement are incorporated by reference mutatis mutandis with the
same force and effect as if such covenant were set forth in full herein, whether or not the
commitments to lend are terminated under the Credit Agreement and the Credit Agreement is thereby
discharged and terminated, with the effect and result that the Company will deliver each and all of
the financial statements, reports, certificates and other information referred to in said Sections
6.1(a), (b) and (c) as and to the extent therein provided. The Company further agrees, upon the
request of the Holder, to provide any qualified institutional buyer designated by the Holder, such
financial and other information as the Holder may reasonably determine to be necessary in order to
permit compliance with the informational requirements of Rule 144A under the Securities Act of
1933, as amended in connection with the resale of Warrants if, at the time of request, the Company
is not subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act
of 1934, as amended. For purposes of this Section 17, the term

-18-

 

“qualified institutional buyer” shall have the meaning specified in Rule 144A under the
Securities Act.

     Section 18. No Effect Upon Lending Relationship. Anything herein contained to the
contrary notwithstanding, nothing contained in this Warrant shall affect, limit or impair the
rights and remedies of Hilco Financial, LLC, any of its affiliates, or its successors and
transferees, or any other lender in their respective capacities as lenders to the Company or any of
its Subsidiaries (each, a “Subject Person”) pursuant to any agreement under which the Company or
any of its subsidiaries has borrowed money. Without limiting the generality of the foregoing, no
Subject Person, in exercising its rights as a lender, shall have any duty to consider (i) its
status as a direct or indirect shareholder or other equityholder of the Company, (ii) the interests
of the Company or any of its subsidiaries, or (iii) any duty it may have to any other direct or
indirect shareholder or other equityholder of the Company, except as may be required under the
applicable loan documents or by commercial law applicable to creditors generally.

[Signature Page Follows]

-19-

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed as of September ___,
2007.

	 	 	 	 	 
	 	BROOKSIDE TECHNOLOGY HOLDINGS CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Warrant

 

 

EXHIBIT A TO WARRANT

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

BROOKSIDE TECHNOLOGY HOLDINGS CORP.

     The undersigned holder hereby exercises the right to purchase ____________________ of the shares
of Common Stock (“Warrant Shares”) of BROOKSIDE TECHNOLOGY HOLDINGS CORP., a Florida corporation
(the “Company”), evidenced by the attached Warrant (the “Warrant”). Capitalized terms used herein
and not otherwise defined shall have the respective meanings set forth in the Warrant.

     1. Form of Warrant Exercise Price. The holder intends that payment of the Warrant Exercise
Price shall be made as:

	 	 	 	 	 
	 

	 	_______
	 	a “Cash Exercise” with respect to                                          Warrant
Shares; and/or
	 
	 

	 	_______
	 	a “Cashless Exercise” with respect to                                          Warrant
Shares (to the extent permitted by the terms of the Warrant).

     2. Payment of Warrant Exercise Price. In the event that the holder has elected a Cash
Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder
shall pay the Aggregate Exercise Price in the sum of $                                         to the Company in
accordance with the terms of the Warrant.

     3. Delivery of Warrant Shares. The Company shall deliver                      Warrant Shares in
accordance with the terms of the Warrant in the following name and to the following address:

     Issue to:                                                             
                    

     Facsimile 
Number:
 

     DTC 
Participant Number and Name (if electronic book entry transfer):
 

     Account 
Number (if electronic book entry transfer): 
 

Date: _______________ __, ______

	 	 	 	 	 
	Name of Registered Holder

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 

ACKNOWLEDGMENT

     The Company hereby acknowledges this Exercise Notice and hereby directs American Registrar &
Transfer Co. to issue the above indicated number of shares of Common Stock in accordance with the
Transfer Agent Instructions dated ___________, 200_ from the Company and acknowledged and
agreed to by American Registrar & Transfer Co.

	 	 	 	 	 
	 	BROOKSIDE TECHNOLOGY HOLDINGS CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

EXHIBIT B TO WARRANT

FORM OF WARRANT POWER

     FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to ______________, Federal
Identification No. ___________, a warrant to purchase ____________ shares of the capital stock of
Brookside Technology Holdings Corp., a Florida corporation, represented by warrant certificate no.
______, standing in the name of the undersigned on the books of said corporation. The undersigned
does hereby irrevocably constitute and appoint _______________, attorney to transfer the warrants of
said corporation, with full power of substitution in the premises.

Dated: _________, 200_

	 	 	 	 	 
	 	
 	 
	 
	 	Name:  	 	 
	 	Title:EX-10.14 US VOICE & DATA MEMBERSHIP PURCHASE AGRMT

 

EXHIBIT
10.14

MEMBERSHIP INTEREST PURCHASE AGREEMENT

by and between

BROOKSIDE TECHNOLOGY HOLDINGS CORP.,

and

THE MICHAEL P. FISCHER IRREVOCABLE DELAWARE TRUST

UNDER AGREEMENT DATED APRIL 5, 2007,

MICHAEL P. FISCHER,

THE M. SCOTT DIAMOND IRREVOCABLE DELAWARE TRUST

UNDER AGREEMENT DATED APRIL 23, 2007,

AND

M. SCOTT DIAMOND

 

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

     THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”), dated as of this September
14th,
2007, is by and between BROOKSIDE TECHNOLOGY HOLDINGS CORP. (the “Purchaser”), and
The Michael P. Fischer Irrevocable Delaware Trust under Agreement dated April 5, 2007, and The M.
Scott Diamond Irrevocable Delaware Trust under Agreement dated April 23, 2007 [together, the
“Members” and together with Michael P. Fischer (“Fischer”) and M. Scott Diamond (“Diamond”), the
“Seller Group”].

RECITALS

     A. The Members are the registered and beneficial owners of all of the issued and outstanding
membership interests (the “Interests”) of US Voice and Data, LLC, an Indiana limited liability
company (the “Company”).

     B. The Members desire to sell to the Purchaser, and the Purchaser desires to purchase from the
Members, all of the Interests, subject to the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth in this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

ARTICLE I DEFINITIONS

     “Accepted Expenses” has the meaning set forth in Section 2.5(a).

     “Affiliate” of any Person means any person directly or indirectly controlling, controlled by,
or under common control with, any such Person and any officer, director or controlling person of
such Person.

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

     “Ancillary Agreements” means the Escrow Agreement, Registration Rights Agreement, the
Non-Competition Agreement to be signed by each member of the Seller Group, the Diamond Employment
Agreement, the Fischer Employment Agreement, the Member Release and each agreement, document,
instrument or certificate contemplated by this Agreement or to be executed by the Purchaser or the
Seller Group in connection with the consummation of the transactions contemplated by this
Agreement, in each case only as applicable to the relevant party or parties to such Ancillary
Agreement, as indicated by the context in which such term is used.

     “Annualized 2007 EBITDA” has the meaning set forth in Section 2.4(a).

     “Arbitration Firm” means a regional or national, reputable accounting firm unaffiliated with
either the Purchaser, the Company or the Members during the two (2) years prior to the date of the
dispute.

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     “Cap” has the meaning set forth in Section 7.3(c).

     “Claims Notice” has the meaning set forth in Section 7.2(a).

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

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

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

     “Closing Balance Target” means $1,058,000.00 or such other amount as the parties agree upon as
provided in Section 2.3.

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

     “Closing Payment” has the meaning set forth in Section 2.2(a).

     “Code” means the Internal Revenue Code of 1986, as amended.

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

     “Contracts” means all contracts, agreements (including, without limitation, employment and
non-competition agreements), leases (whether real or personal property), commitments, instruments,
guarantees, bids, orders and proposals and all oral understandings.

     “Controlled Group” has the meaning set forth in Section 4.13(e).

     “Copyright” means all copyrights, copyrightable works, mask work rights, rights in databases,
data collections, copyright registrations and applications for copyright registration and
equivalents and counterparts of the foregoing.

     “Deductible” has the meaning set forth in Section 7.3(c).

     “Deposit” means Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) in cash.

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

     “Diamond Employment Agreement” has the meaning set forth Section 3.2(d).

     “Domain Names” means all Internet electronic addresses, uniform resource locators and
alphanumeric designations associated therewith and all registrations for any of the foregoing,
including, without limitation, any and all rights to the following names and domain names:
http://www.usvoice-data.com.

     “Earnout Payment” has the meaning set forth in Section 2.5(a).

     “EBITDA” means the Company’s net income plus, federal and state corporate income tax (if
applicable), interest expense, and depreciation, and amortization expense attributable to the
Company’s operations only calculated in accordance with GAAP consistently applied in a manner

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consistent with Company’s past practices; provided, further that EBITDA shall not include
overhead allocations of Purchaser.

     “EBITDA Statement” has the meaning set forth in Section 2.4.

     “EBITDA Target” means $2,366,000 or such other amount as the parties agree upon as provided in
Section 2.4.

     “Employee Plan” or collectively, “Employee Plans” has the meaning set forth in Section
4.13(a). 

     “Environment” means soil, surface waters, groundwater, land, stream sediments, surface or
subsurface strata, ambient air, indoor air or indoor air quality, including, without limitation,
any material or substance used in the physical structure of any building or improvement.

     “Environmental Condition” means any condition of the Environment with respect to the Real
Property, with respect to any property previously owned, leased or operated by the Company to the
extent such condition of the Environment existed at the time of such ownership, lease or operation,
or with respect to any other real property at which any Hazardous Material generated by the
operation of the business of the Company prior to the Closing Date has been treated, stored or
disposed of, which violates any Environmental Law, or even though not violative of any
Environmental Law, nevertheless results, or could possibly result: in any Release, or Threat of
Release, damage, loss, cost, expense, claim, demand, order or liability.

     “Environmental Law” means any federal, state or local law, regulation, rule, ordinance, common
law, policy or guideline relating to the health, safety or protection of the Environment, Releases
of Hazardous Materials into the Environment, workplace safety or injury to persons relating to
Releases of Hazardous Materials into the Environment.

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

     “Escrow Agreement” has the meaning set forth in Section 2.5(b).

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

     “Estimated Closing Balance Statement” has the meaning set forth in Section 2.3(a).

     “Expiration Date” has the meaning set forth in Section 7.3(a).

     “Excluded Representations” has the meaning set forth in Section 7.3(a).

     “Extraordinary Expense” has the meaning set forth in Section 2.5(a).

     “Family Affiliate” means any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or
sister- in-law, including adoptive relationships, of any Person.

     “Financial Statements” has the meaning set forth in Section 4.19(a).

     “Financing” has the meaning set forth in Section 5.8.

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     “Financing Commitments” has the meaning set forth in Section 5.8.

     “First Acceptance Notice” has the meaning set forth in Section 2.5(b).

     “First Calculation Period” has the meaning set forth in Section 2.5(a)(i).

     “First Calculation Statement” has the meaning set forth in Section 2.5 (b).

     “First Dispute Notice” has the meaning set forth in Section 2.5(c).

     “First Target” has the meaning set forth in Section 2.5(a)(i).

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

     “Fischer Employment Agreement” has the meaning set forth Section 3.2(e).

     “Floor Price” means One Dollar ($1.00) per Share.

     “Fourth Acceptance Notice” has the meaning set forth in Section 2.5(h).

     “Fourth Calculation Period” has the meaning set forth in Section 2.5(a)(iv).

     “Fourth Calculation Statement” has the meaning set forth in Section 2.5 (iv)(b).

     “Fourth Dispute Notice” has the meaning set forth in Section
2.5(i).

     “Fourth Target” has the meaning set forth in Section 2.5(a)(iv).

     “GAAP” has the meaning set forth in Section 2.3.

     “Governmental Authority” means any government or political subdivision or regulatory
authority, whether federal, state, local or foreign, or any agency or instrumentality of any such
government or political subdivision or regulatory authority, or any federal state, local or foreign
court or arbitrator.

     “Guarantee” by any Person means any obligation, contingent or otherwise, of such Person
directly or indirectly guaranteeing or otherwise supporting in whole or in part the payment of any
Indebtedness or other obligation of any other Person and, without limiting the generality of the
foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (a) to
purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation of such other Person (whether
arising by virtue of partnership arrangements, by agreement to keep-well, to purchase assets,
goods, securities or services, to take-or-pay or to maintain financial statement conditions or
otherwise) or (b) entered into for the purpose of assuring in any other manner the obligee of such
Indebtedness or other obligations of the payment of such Indebtedness or to protect such obligee
against loss in respect of such Indebtedness (in whole or in part); provided, however, that the
term Guarantee shall not include endorsements for deposit or collection in the Ordinary Course of
Business. The term “Guarantee” used as a verb has a correlative meaning.

     “Hazardous Material” means any pollutant, toxic substance, including asbestos and
asbestos-containing materials, hazardous waste, hazardous material, hazardous substance,

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contaminant, petroleum or petroleum-containing materials, radiation and radioactive materials,
leaded paints, toxic mold and other harmful biological agents, and polychlorinated biphenyls as
defined in, the subject of, or which could give rise to, liability under any Environmental Law.

     “Indebtedness” of any Person means: either (a) any liability of any Person (i) for borrowed
money (including the current portion thereof), or (ii) under any reimbursement obligation relating
to a letter of credit, bankers’ acceptance or note purchase facility, or (iii) evidenced by a bond,
note, debenture or similar instrument (including a purchase money obligation), or (iv) for the
payment of money relating to leases that are required to be classified as capitalized lease
obligations in accordance with GAAP, or (v) for all or any part of the deferred purchase price of
property or services (other than trade payables), including any “earnout” or similar payments or
any non- compete payments, or (vi) under interest rate swap, hedging or similar agreements or (b)
any liability of others described in the preceding clause (a) that such Person has Guaranteed, that
is recourse to such Person or any of its assets or that is otherwise its legal liability or that is
secured in whole or in part by the assets of such Person. For purposes of this Agreement,
Indebtedness includes (A) any and all accrued interest, success fees, prepayment premiums,
make-whole premiums or penalties and fees or expenses actually incurred (including attorneys’ fees)
associated with the prepayment of any Indebtedness, (B) any and all amounts owed by the Company to
any of their Affiliates, including, without limitation, the Members, and (C) any and all bonuses or
incentive payments owed by the Company to any of their employees.

     “Indemnified Party” has the meaning set forth in Section 7.2(a).

     “Indemnifying Party” has the meaning set forth in Section 7.2(a).

     “Intellectual Property” means Copyrights, Domain Names, Patents, Software, Trademarks and
Trade Secrets.

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

     “Interim Financial Statements” has the meaning set forth in Section 4.19(a).

     “Investment” means any equity interest, directly or indirectly, in any Person.

     “IRS” means the Internal Revenue Service.

     “Knowledge” means the actual knowledge of Diamond and Fischer, or knowledge obtained or
obtainable by any of the foregoing in the exercise of commercially reasonable diligence in the
normal course of business or conduct of duties.

     “Law” means any law, statute, code, ordinance, regulation, interpretation, ruling
or other requirement of any Governmental Authority.

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

     “Liability Claim” has the meaning set forth in Section 7.2(a).

     “Liens” has the meaning set forth in Section 2.1.

     “Litigation Conditions” has the meaning set forth in Section 7.2(b).

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     “Losses” has the meaning set forth in Section 7.1.

     “Material Adverse Change” shall mean any change, event, violation, inaccuracy, circumstance,
or effect that is, or could reasonably expected to be, materially adverse to the business, assets
(including intangible assets), liabilities, financial condition, results of operations or business
prospects of the Company taken as whole or on the ability of the Members to consummate timely the
transactions contemplated herein.

     “Material Customers” has the meaning set forth in Section 4.27(a).

     “Material Suppliers’’ has the meaning set forth in Section 4.27(b).

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

     “Member Release” has the meaning set forth in Section 3.2(f).

     “Non-Competition Agreement” has the meaning set forth in Section 3.2(c).

     “Objectionable Expenses” has the meaning set forth in Section 2.5(a).

     “Order” means any order, judgment, injunction, award, decree, ruling, charge or writ of any
Governmental Authority.

     “Ordinary Course of Business” means the ordinary course of business of the Company consistent
with past custom and practice (including with respect to quantity and frequency).

     “Other Jurisdictions” has the meaning set forth in Section 4.30.

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

     “Patents” means all patents, industrial and utility models, industrial designs, certificates
of invention and other indicia of invention ownership issued or granted by any Governmental
Authority, and all applications, provisionals, reissues, re-examinations, extensions, divisions,
continuations (in whole or in part) and equivalents and counterparts of the foregoing.

     “Permit” means any environmental permit, license, approval, consent or authorization issued by
a federal, state or local governmental authority.

     “Permitted Liens” means Liens for current Taxes, assessments, fees and other charges by
Governmental Authorities that are not due and payable as of the Closing Date.

     “Person”means any individual, sole proprietorship, partnership, corporation, limited
liability company, unincorporated society or association, trust or other entity.

     “Purchase Price” has the meaning set forth in Section 2.2.

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

     “Purchaser’s Business” has the meaning set forth in Section 8.l(a).

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     “Purchaser’s Confidential Information” has the meaning set forth in Section 8.l(a).

     “Real Property” means any and all real property and interests in real property of the Company,
including the Owned Real Property and the Leased Real Property, any real property leaseholds and
subleaseholds, purchase options, easements, licenses, rights to access and rights of way and any
other real property otherwise owned, occupied or used by the Company.

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

     “Registration Rights Agreement” has the meaning set forth in Section 3.2(g).

     “Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, migrating, disposing or dumping of a Hazardous Material
into the Environment (including, without limitation, the abandonment or discarding of barrels,
containers and other closed receptacles containing any Hazardous Materials) and any condition that
results in the exposure of a Person to a Hazardous Material.

     “Republic Bank Calculation” has the meaning set forth in Section 2.2(b).

     “Republic Bank Estimated Payment” has the meaning set forth in Section 2.2(b).

     “Republic Bank Net Profit” has the meaning set forth in Section 2.2(b).

     “Returns” means all Tax returns, statements, reports and forms (including estimated Tax or
information returns and reports).

     “SEC” has the meaning set forth in Section 6.7(a).

     “Second Acceptance Notice” has the meaning set forth in Section 2.5(d).

     “Second Calculation Period” has the meaning set forth in Section 2.5(a)(ii).

     “Second Calculation Statement” has the meaning set forth in Section 2.5(d).

     “Second Dispute Notice” has the meaning set forth in Section 2.5(e).

     “Second Target” has the meaning set forth in Section 2.5(a)(ii).

     “Securities Act” has the meaning set forth in Section 6.1.

     “Seller Group” has the meaning set forth in the preamble.

     “Selling Expenses” means all unpaid costs, fees and expenses of outside professionals incurred
by the Company relating to the process of selling the Company whether incurred in connection with
this Agreement or otherwise, including, without limitation, all legal fees, accounting, tax,
investment banking fees and expenses.

     “Share” or “Shares” means one or more shares of common stock of the Purchaser, $0.001 par
value per share.

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     “Software” means all computer software and code, including assemblers, applets, compilers,
source code, object code, development tools, design tools, user interfaces and data, in any form or
format, however fixed.

     “Subsidiary” means any Person of which at least 20% of the outstanding shares or other equity
interests having ordinary voting power for the election of directors or comparable managers of such
Person are at the time owned by the Company, by one or more directly or indirectly wholly or
partially owned subsidiaries of the Company or by the Company and one or more such subsidiaries,
whether or not at the time the shares of any other class or classes or other equity interests of
such Person shall have or might have voting power by reason of the happening of any contingency.

     “Tangible Personal Property” has the meaning set forth in Section 4.7(c).

     “Tax” means (a) any net income, alternative or add-on minimum tax, gross income, gross
receipts, sales, use, ad valorem, value added, transfer, franchise, profits, license, withholding
on amounts paid to or by the Company, payroll, employment, excise, severance, stamp, occupation,
premium, property, environmental or windfall profit tax, GST, custom, duty or other tax,
governmental fee or other like assessment or charge of any kind whatsoever, together with any
interest, penalty, addition to tax or additional amount imposed by any Taxing Authority, whether
disputed or not, (b) any liability of the Company for the payment of any amounts of any of the
foregoing types as a result of being a member of an affiliated, consolidated, combined or unitary
group or being a party to any agreement or arrangement whereby liability of the Company for payment
of such amounts was determined or taken into account with reference to the liability of any other
Person and (c) any liability of the Company for the payment of any amounts as a result of being a
party to any tax sharing agreements or arrangements (whether or not written) binding on the Company
or with respect to the payment of any amounts of any of the foregoing types as a result of any
express or implied obligation to indemnify any other Person.

     “Tax Matter” has the meaning set forth in Section 6.3.

     “Taxing Authority” means any Governmental Authority responsible for the administration or the
imposition of any Tax.

     “Third Acceptance Notice” has the meaning set forth in Section 2.5(f).

     “Third Calculation Period” has the meaning set forth in Section 2.5(a)(iii).

     “Third Calculation Statement” has the meaning set forth in Section 2.5(f).

     “Third Dispute Notice” has the meaning set forth in Section 2.5(f).

     “Third Target” has the meaning set forth in Section 2.5(a)(iii).

     “Threat of Release” means a substantial likelihood of a Release that requires action to
prevent or mitigate damage or injury to health, safety or the Environment that might result from
such Release.

     “Trademarks” means all trademarks, trade names, fictitious business names, service marks,
certification marks, collective marks and other proprietary rights to words, names, slogans,
symbols, logos, devices, sounds, other things or combination thereof used to identify, distinguish
and indicate

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the source or origin of goods or services, and all registrations, renewals and applications
for registration, equivalents and counterparts of the foregoing, and the goodwill of the Company
associated with each of the foregoing.

     “Trade Secrets” means all inventions, discoveries, ideas, processes, designs, models,
formulae, patterns, compilations, programs, devices, methods, techniques, processes, know-how,
proprietary information, customer lists, software code, technical information, data and databases,
drawings and blueprints, and all other information and materials that would constitute a trade
secret under applicable law.

     “Trading Market’’ means the following markets or exchanges on which the Shares are listed or
quoted for trading on the date in question: the American Stock Exchange, the Nasdaq Capital Market,
the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC
Bulletin Board.

     “Uncollectible Accounts” means accounts receivable that are over ninety (90) days old on the
date of the Closing Balance Statement.

     “VWAP” means the price determined by the first of the following clauses that applies: (a) if
the Shares are then listed or quoted on a Trading Market, the daily volume weighted average price
of the Shares for the ten (10) consecutive trading days ending one (1) trading day before the
conversion notice is delivered on the Trading Market on which the Shares are then listed or quoted
for trading as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City
time) to 4:02 p.m. (New York City time); (b) if the OTC Bulletin Board is not a Trading Market, the
volume weighted average price of the Shares for the ten (10) consecutive trading days ending one
(1) trading day before the conversion notice is delivered on the OTC Bulletin Board; (c) if the
Shares are not then quoted for trading on the OTC Bulletin Board and if prices for the Shares are
then reported in the “Pink Sheets” published by Pink Sheets, LLC (or a similar organization or
agency succeeding to its functions of reporting prices), the volume weighted average bid price per
Share so reported for the last ten (10) trades before the conversion notice is delivered; or (d) in
all other cases, the fair market value of a Share as determined by an independent appraiser
selected together by the Members and the Purchaser.

ARTICLE II PURCHASE AND SALE

     2.1 Purchase and Sale of the Interests. Subject to the terms and conditions of this
Agreement, at the Closing, the Purchaser shall purchase from the Members and the Members shall
sell, transfer, assign, convey and deliver to the Purchaser, all of the Interests, free and clear
of any mortgage, pledge, hypothecation, rights of others, claim, security interest, encumbrance,
title defect, title retention agreement, voting trust agreement, interest, option, lien, charge or
similar restrictions or limitations, including any restriction on the right to vote, sell or
otherwise dispose of the Interests (collectively, the
“Liens”).

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     2.2 Purchase Price. In full consideration for the transfer of the Interests, and the
members of the Seller Group entering into the form of Non-Competition Agreement attached as Exhibit
A hereto, at the Closing the Purchaser shall pay or cause to be paid to the Members and the Seller
Group, subject to the adjustments set forth below, and less any and all outstanding Indebtedness
and Selling Expenses of the Company as of the Closing Date, the
following (the “Purchase Price”):

     (a) Closing Payment. The Purchaser shall pay Nine Million and No/100 Dollars
($9,000.000.00) at Closing in immediately available funds less the Deposit previously paid by the
Purchaser (the “Closing Payment”). The Closing Payment shall be payable to the Members and the
Seller Group as set forth on Schedule 2.2(a) hereto and shall include the One Hundred
Thousand and No/100 Dollars ($100,000.00) being paid in full consideration of the Seller Group
entering into the form of Non-Competition Agreement attached hereto as Exhibit A.

     (b) Republic Bank Net Profit. The Purchaser shall pay to the Members the net
profit (revenue actually received by the Company after deduction of all related costs and
expenses, including without limitation all related costs of goods sold, selling, general
and administrative expenses, shipping and freight expenses, and taxes, all calculated in
accordance with GAAP and in a manner consistent with the Company’s past practices) to the
Company from sale by the Company to Republic Bank of the Company’s services and products
from the inception of its agreement with Republic Bank through the Closing Date (“Republic
Bank Net Profit”). To satisfy this obligation, at Closing, Purchaser shall pay to the
Members Seven Hundred Eighty Eight Thousand Four Hundred Two and No/100 Dollars
($788,402.00), which represents an estimate of the Republic Bank Net
Profit through July 31, 2007 (the “Republic Bank Estimated
Payment,”). Within ninety (90) days after the Closing
Date, the Seller Group shall prepare and deliver, or cause to be prepared and delivered, to
the Purchaser a calculation of the Republic Bank Net Profit (the “Republic Bank
Calculation”), prepared in accordance with GAAP and in a manner consistent with the
Company’s past practices. The Purchaser shall thereafter have the right to review and
accept or dispute the Republic Bank Calculation, and the Republic Bank Calculation shall
thereafter be determined using the same protocol established in Section 2.3(c), and
once so finalized, any discrepancy between the Republic Bank Net Profit and the Republic
Bank Estimated Payment shall be paid using the same protocol established in Section
2.3(d) and (e), with respect to the Closing Balance Purchase Price Adjustment. The
Republic Bank Net Profit shall be payable to and allocated between the Members in the same
proportions as the Closing Payment.

     (c) Post-Closing Payments. After Closing, the Purchaser shall deliver to the
Members in the proportions set forth on Schedule 2.2(a) hereto, additional
consideration as follows:

	 	i.	 	Seven Hundred Fifty Thousand and
No/100 Dollars ($750,000.00) on the six month anniversary of the
Closing Date, payable in cash;
	 
	 	ii.	 	Seven Hundred Fifty Thousand and
No/100 Dollars ($750,000.00) on the 12 month anniversary of the
Closing Date, payable in cash;
	 
	 	iii.	 	Seven Hundred Fifty Thousand and
No/100 Dollars ($750,000.00) on the 18 month anniversary of the
Closing Date, payable in cash; and

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	 	iv.	 	Seven Hundred Fifty Thousand and
No/100 Dollars ($750,000.00) on the 24 month anniversary of the
Closing Date, payable in cash.

     In the event any of the post-closing payments required by this Agreement are not paid when
due, the amount that was required to be paid but which has not been paid shall accrue interest at
an annual interest rate of 12% until the date it is paid.

     (d) Pre-Payment/Acceleration. Any of the foregoing post-closing payments may
be prepaid by the Purchaser at any time without penalty. The post-closing payments are part
of the Purchase Price and are not subject to any post-closing event or dependent upon any
post-closing condition whatsoever. However, if, during the employment period of Michael
Fischer and/or Scott Diamond, the Purchaser shall terminate either or both of their
employment without “Cause,” or should either or both of them terminate their respective
employment because of “Constructive Termination,” as such terms are defined in their
respective Employment Agreements, then in either of such events, any and all unpaid Post
Closing Payments referred to in Section 2.2 (c) shall be deemed to be, whereupon
the same shall be, immediately due and payable in full, whereupon Purchaser shall pay to
the applicable Member [the Fischer Trust if the termination without Cause or Constructive
Termination is Fischer, and the Diamond Trust if the termination without Cause or
Constructive Termination is Diamond] all of the unpaid Post-Closing Payments, without
regard to the due dates set forth in Section 2.2 (c) above. A Member shall have the
option to receive its portion of any of the foregoing payments in Shares by providing
written notice to the Purchaser at least ten (10) days prior to the applicable payment due
date. The conversion price per Share shall be seventy-five percent (75%) of the VWAP, but
not less than the Floor Price in any event.

     (e) Shares. At Closing, in addition to the Closing Payment referred to in
Section 2.2(a) above, the Purchaser shall also issue Seven Million (7,000,000)
Shares to the Members in the proportions set forth on Schedule 2.2(a).

     2.3 Closing Balance Purchase Price Adjustment.

     (a) The Seller Group has prepared and delivered to the Purchaser a good faith estimate
as of July 31, 2007 of the calculation of the amount (the “Estimated Closing Balance
Statement”) if any, by which (i) the Company’s fixed assets, cash, cash equivalents,
accounts receivable, inventory and other current assets, including prepaid taxes, prepaid
insurance and other assets included in current assets, as of July 31, 2007 (excluding any
deferred compensation assets, current and deferred income tax assets, interest receivable,
advances to officers, and intercompany accounts receivable) exceed (ii) the Company’s
accounts payable and accrued liabilities (excluding Indebtedness, Selling Expenses, accrued
interest payable, advances from officers, and intercompany accounts payable as of July 31,
2007) (the “Estimated Closing Balance”). The Closing Balance Statement must be prepared, in accordance with
generally accepted accounting principles (“GAAP”), in a manner consistent with the
Company’s past practices and balance sheet as of December 31, 2006. At the Closing:

               (i) if the Estimated Closing Balance is less than the Closing Balance Target, then the
Purchase Price will be adjusted downward by an amount equal to such deficiency; and

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          (ii) if the Estimated Closing Balance exceeds the Closing Balance Target, then the Purchase
Price will be adjusted upward by an amount equal to such excess.

     (b) Within ninety (90) days after the Closing Date, the Seller Group shall prepare and
deliver, or cause to be prepared and delivered, to the Purchaser a closing balance statement (the
“Closing Balance Statement”) setting forth the calculation of the amount, if any, by which (i) the
Company’s fixed assets, cash, cash equivalents, accounts receivable, inventory and other current
assets, including prepaid taxes, prepaid insurance and other assets included in current assets, as
of the point in time immediately prior to the Closing Date (excluding any deferred compensation
assets, current and deferred income tax assets, interest receivable, advances to officers, and
intercompany accounts receivable) exceed (ii) the Company’s accounts payable and accrued
liabilities (excluding Indebtedness, Selling Expenses, accrued interest payable, advances from
officers, and intercompany accounts payable as of the point in time immediately prior to the
Closing Date) (the “Closing Balance”). The Closing Balance Statement must be prepared, in
accordance with GAAP and in a manner consistent with the Company’s past practices and balance sheet
as of December 3 1,2006.

     (c) Following the delivery of the Closing Balance Statement, the Seller Group will allow the
Purchaser and its representatives, upon reasonable advance notice, reasonable access during regular
business hours to all work papers, books and records and all additional information used in
preparing the Closing Balance Statement and will make the Seller Group’s members, employees and
independent certified public accountants reasonably available to discuss such papers, books,
records and information. In the event that the Purchaser disagrees with the Closing Balance
Statement, it shall notify the Seller Group in writing within thirty (30) days after receipt of the
Closing Balance Statement of such disagreement, stating the facts of the disagreement and the
calculation of the Closing Balance by the Purchaser, and including therewith a copy of any
financial information used in making the calculation other than that information previously
provided by the Seller Group. In the event that the Purchaser does not notify the Seller Group of a
dispute with respect to the Closing Balance Statement within such 30-day period, such statement
will be final, conclusive and binding on the parties. In the event of such notification of a
dispute, the Purchaser and the Members shall negotiate in good faith to resolve such dispute. If
the Purchaser and the Members, notwithstanding such good faith effort, fail to resolve such dispute
within thirty (30) days after the Purchaser advises the Seller Group of the Purchaser’s objections,
then the Purchaser and the Members jointly shall engage the Arbitration Firm to resolve such
dispute and compute the Closing Balance. In making its calculation, the Arbitration Firm shall
consider only the items or amounts in dispute (and to the extent required, any other items or
amounts necessary to derive the disputed items or amounts). Such determination shall be made within
thirty (30) days after the date on which the Arbitration Firm begins its review and shall be final,
conclusive and binding on the parties. The fees, costs and expenses of the Arbitration Firm shall
be borne by the party whose calculation of the Closing Balance is furthest from the Arbitration
Firm’s calculation.

     (d) If the Closing Balance (as finally determined pursuant to Section 2.3(c)) is less than the
Estimated Closing Balance, then the Purchase Price will be adjusted downward by an amount equal to
such deficiency and the Members shall pay or cause to be paid to the Purchaser, by bank wire
transfer of immediately available funds to an account designated in writing by the Purchaser, an
amount in cash equal to such deficiency within thirty (30)

13

 

business days from the date on which the Closing Balance is finally determined pursuant to
Section 2.3.

     (e) If the Closing Balance (as finally determined pursuant to Section 2.3(c)) is
greater than the Estimated Closing Balance and an adjustment had previously been made to the
Purchase Price under Section 2.3(a), then the Purchase Price will be adjusted upward by an
amount equal to such excess over the previously adjusted Purchase Price and the Purchaser shall pay
or cause to be paid to the Members, by bank wire transfer of immediately available funds to an
account designated in writing by the Members, an amount in cash equal to such excess within thirty
(30) business days from the date on which Closing Balance is finally determined pursuant to
Section 2.3.

     (f) If the Closing Balance includes adjustments to accounts receivable due to Uncollectible
Accounts, the Company will promptly pay over to the Members, pro rata, any subsequent collection by
the Company on such Uncollectible Accounts after they are received by the Company. The Company will
take efforts in the Ordinary Course of Business to collect the Uncollectible Accounts.

2.4 EBITDA Purchase Price Adjustment.

     (a) The Members have prepared and delivered, or caused to be prepared and delivered, to the
Purchaser an EBITDA statement (the “EBITDA Statement ”) setting forth the calculation of the
Company’s EBITDA for the period beginning January 1,2007 through July 31,2007, as such EBITDA
would be annualized pro forma for the remainder of the 2007 calendar year (“Annualized 2007
EBITDA”). The EBITDA Statement must be prepared, in accordance with GAAP, in a manner consistent
with the Company’s past practices and EBITDA as of December 31, 2006.

     (b) The Annualized 2007 EBITDA must be equal to or greater than the EBITDA Target.

2.5 Earnout.

     (a) Except as set forth in Section 2.5(i), then at the time specified in Section
2.5(b), Section 2.5(d),
Section 2.5 (f) , and Section 2.5(h) below, as
applicable, the Purchaser shall pay, as part of the Purchase Price due hereunder, to the Members in
the proportions set forth on Schedule 2.2(a), an earnout payment or earnout payments, if earned,
pursuant to the formula below (each or together hereinafter referred
to as the “Earnout Payment”).
It is the intention of the parties that in calculating each Earnout Payment, the Company be
evaluated as it existed prior to the purchase herein contemplated, and therefore, all expenses
attributed in any way to Purchaser’s overhead shall be excluded from the calculation of EBITDA.
Furthermore, if Purchaser causes the Company to incur one or more expenses (not related to
Purchaser’s overhead) that are not consistent with the past practices of the Company consistently
applied, including but not limited to, opening a new office, developing a new line of business, or
developing a new product line (each an “Extraordinary Expense” and collectively “Extraordinary
Expenses ”), then provided that Fischer and Diamond remain employed by the Company (a) Purchaser
shall, prior to incurring the expense, discuss such action with the Fischer and Diamond and (b)
once the aggregate total of all Extraordinary Expenses exceeds (i) $75,000 in the aggregate during
the First Calculation Period, (ii)

14

 

$150,000 in the aggregate during the Second Calculation Period,
(iii) $150,000 in the aggregate during the Third Calculation Period, or (iv) $75,000 in the aggregate during the
Fourth Calculation Period, promptly notify Fischer and Diamond in writing that such thresholds have
been exceeded. Fischer and Diamond, acting jointly, shall have ten (10) days from the date of each
such notice to object in writing to some or all of such Extraordinary Expenses. The Extraordinary
Expenses to which Fischer and Diamond timely and properly object shall be referred to herein as the
“Objectionable Expenses” and all other Extraordinary Expenses shall be referred to as “Accepted
Expenses.” Any Accepted Expenses shall be subtracted from the total of the Extraordinary Expenses
and thereafter each time the Purchaser causes the Company to incur one or more additional
Extraordinary Expenses that, when added to the Objectionable Expenses for such period, cause any of
the thresholds set forth above to be exceeded, the Purchaser shall again promptly notify Fischer
and Diamond of such event and Fischer and Diamond shall have the opportunity to object to those
expenses in the same manner set forth above. If the Objectionable Expenses, in the aggregate,
incurred in any measurement period exceed the thresholds set forth above for such period, then all
expenses and revenues associated with those Objectionable Expenses shall be excluded from the
calculation of EBITDA for all calculation periods impacted by such expenses. Notwithstanding
anything to the contrary, Purchaser shall be entitled to approve and implement any action which
gives rise to an Extraordinary Expense, and cause the Company to incur such expense, and Fischer
and Diamond shall cooperate and use their commercially reasonable efforts to implement such actions
in good faith regardless of whether they object to the action.

     (i) Without regard to the actual Closing Date, in the event that EBITDA during the
period beginning with July 1, 2007 and ending on December 31, 2007 (the “First Calculation
Period ”) is greater than One Million Two Hundred Fifty Thousand and No/100 Dollars
($1,250,000.00) (the “First Target ”), the Earnout Payment shall be equal to fifty percent
(50%) of the EBITDA of the Company in excess of the First Target;

     (ii)
In the event that EBITDA during the period beginning with January 1, 2008 and
ending on December 31, 2008 (the “Second Calculation Period”) is greater than Two Million
Five Hundred Thousand and No/100 Dollars ($2,500,000.00) (the “Second Target ”), the
Earnout Payment shall be equal to fifty percent (50%) of the EBITDA of the Company in
excess of the Second Target;

     (iii) In the event that EBITDA during the period beginning with January 1, 2009 and
ending on December 31, 2009 (the “Third Calculation Period”) is greater than Two Million
Five Hundred Thousand and No/100 Dollars ($2,500,000.00) (the “Third Target”), the Earnout
Payment shall be equal to fifty percent (50%) of the EBITDA of the Company in excess of the
Third Target; and

     (iv) In the event that EBITDA during the period beginning with January 1, 2010 and
ending on June 30, 2010 (the “Fourth Calculation Period”) is greater than One Million Two
Hundred Fifty Thousand and No/100 Dollars ($1,250,000.00) (the “Fourth Target”), the
Earnout Payment shall be equal to fifty percent (50%) of the EBITDA of the Company in
excess of the Fourth Target.

15

 

     (b) The Purchaser shall provide the Members with a written statement of its calculation (the
“First Calculation Statement ”) of the Earnout Payment pursuant to Section 2.5(a)(i) on the
earlier of (i) the date the Purchaser completes its audit for 2007 or (ii) March 31, 2008. The
First Calculation Statement shall include, in addition to the Purchaser’s calculation of EBITDA
derived for the First Calculation Period and the Earnout Payment due in connection therewith, all
of the information, work papers and supporting information necessary to demonstrate same. The
Earnout Payment shall be payable (i) in cash no later than April 30, 2008 (A) after receipt by the
Purchaser of notice from the Members that they have accepted the First Calculation Statement (a
“First Acceptance Notice”), or (B) after expiration of the period during which a First Dispute
Notice may be delivered if neither a First Dispute Notice nor a First Acceptance Notice are
delivered, or (ii) into escrow pursuant to the Escrow Agreement attached as Exhibit B hereto (the
“Escrow Agreement ”) pending the resolution of any disagreement pursuant to Section 2.5(c),
as the case may be, provided, further, that a Member shall have the option to receive its portion
of an Earnout Payment in Shares by providing written notice to the Purchaser at the earlier of (a)
the time that the First Acceptance Notice is delivered, (b) April 20,2008, or (c) at the time that
an Earnout Payment is required to be delivered into escrow pending the resolution of any
disagreement pursuant to Section 2.5(c). The conversion price per Share shall be
seventy-five percent (75%) of the VWAP, but not less than the Floor Price in any event.

     (c) Following the delivery of the First Calculation Statement, the Purchaser will allow the
Members and its representatives, upon reasonable advance notice, reasonable access during regular
business hours to all work papers, books and records and all additional information used in
preparing the First Calculation Statement and will make the Purchaser’s officers, employees,
representatives and accountants reasonably available to discuss such papers, books, records and
information. In the event that the Members disagree with the First Calculation Statement, it shall
notify (the “First Dispute Notice”) the Purchaser in writing within thirty (30) days after receipt
of the First Calculation Statement of such disagreement, stating the facts of the disagreement and
the calculation of the Earnout Payment pursuant to Section 2.5(a)(i) by the Members, and
including therewith a copy of any financial information used in making the calculation other than
that information previously provided by the Purchaser. If a First Dispute Notice is not given
within such thirty (30) day period, then the First Calculation Statement shall be deemed to be
final, conclusive and binding on the parties. In the event a First Dispute Notice is timely given,
the Members and the Purchaser shall meet and attempt in good faith to resolve the items or amounts
in dispute. If the Purchaser and the Members notwithstanding such good faith effort, are unable to
reach an agreement within thirty (30) days after receipt by the Purchaser of the First Dispute
Notice, then the Purchaser and the Members jointly shall engage the Arbitration Firm to review the
disputed items or amounts and compute the disputed portion of the Earnout Payment due, if any,
pursuant to Section 2.5(a)(i). In making its calculation, the Arbitration Firm shall
consider only the items or amounts in dispute (and to the extent required, any other items or
amounts necessary to derive the disputed items or amounts). Such determination shall be made within
thirty (30) days after the date on which the Arbitration Firm begins its review and shall be
final, conclusive and binding on the parties. The fees, costs and expenses of the Arbitration Firm
shall be borne by the party whose calculation of the Earnout Payment pursuant to Section
2.5(a)(i) is furthest from the Arbitration Firm’s calculation.

     (d) The Purchaser shall provide the Members with a written statement of its calculation (the
“Second Calculation Statement ”) of the Earnout Payment pursuant to

16

 

Section 2.5(a)(ii) on the earlier of (i) the date the Purchaser completes its audit
for 2005 or (ii) March 31, 2009. The Second Calculation Statement shall include, in addition to the
Purchaser’s calculation of EBITDA derived for the Second Calculation Period and the Earnout Payment
due in connection therewith, all of the information, work papers and supporting information
necessary to demonstrate same. The Earnout Payment shall be payable (i) in cash no later than April
30, 2009 (A) after receipt by the Purchaser of notice from the Members that they have accepted the
Second Calculation Statement (a “Second Acceptance Notice ”), or (B) after expiration of the period
during which a Second Dispute Notice may be delivered if neither a Second Dispute Notice nor a
Second Acceptance Notice are delivered, or (ii) into escrow pursuant to the Escrow Agreement
attached as Exhibit B hereto pending the resolution of any disagreement pursuant to Section
2.5(e), as the case may be, provided, further, that a Member shall have the option lo receive
its portion of an Earnout Payment in Shares by providing written notice to the Purchaser at the
earlier of (a) the time that the Second Acceptance Notice is delivered, (b) April 20, 2009, or (c)
at the time that an Earnout Payment is required to be delivered into escrow pending the resolution
of any disagreement pursuant to Section 2.5(e). The conversion price per Share shall be
seventy- five percent (75%) of the VWAP, but not less than the Floor Price in any event.

     (e) Following the delivery of the Second Calculation Statement, the Purchaser will allow the
Members and its representatives, upon reasonable advance notice, reasonable access during regular
business hours to all work papers, books and records and all additional information used in
preparing the Second Calculation Statement and will make the Purchaser’s officers, employees,
representatives and accountants reasonably available to discuss such papers, books, records and
information. In the event that the Members disagree with the Second Calculation Statement, it shall
notify (the “Second Dispute Notice ”) the Purchaser in writing within thirty (30) days after receipt
of the Second Calculation Statement of such disagreement, stating the facts of the disagreement and
the calculation of the Earnout Payment pursuant to Section 2.5(a)(ii) by the Members, and
including therewith a copy of any financial information used in making the calculation other than
that information previously provided by the Purchaser. If a Second Dispute Notice is not given
within such thirty (30) day period, then the Second Calculation Statement shall be deemed to be
final, conclusive and binding on the parties. In the event a Second Dispute Notice is timely given,
the Members and the Purchaser shall meet and attempt in good faith to resolve the items or amounts
in dispute. If the Purchaser and the Members notwithstanding such good faith effort, are unable to
reach an agreement within thirty (30) days after receipt by the Purchaser of the Second Dispute
Notice, then the Purchaser and the Members jointly shall engage the Arbitration Firm to review the
disputed items or amounts and compute the disputed portion of the Earnout Payment due, if any,
pursuant to Section 2.5(a)(ii). In making its calculation, the Arbitration Firm shall
consider only the items or amounts in dispute (and to the extent required, any other items or
amounts necessary to derive the disputed items or amounts). Such determination shall be made within
thirty (30) days after the date on which the Arbitration Firm begins its review and shall be final.
conclusive and binding on the parties. The fees, costs and expenses of the Arbitration Firm shall
be borne by the party whose calculation of the Earnout Payment pursuant to Section
2.5(a)(ii) is furthest from the Arbitration Firm’s calculation.

     (f) The Purchaser shall provide the Members with a written statement of its calculation (the
“Third Calculation Statement ”) of the Earnout Payment pursuant to Section 2.5(a)(iii) on
the earlier of (i) the date the Purchaser completes its audit for 2009 or (ii)

17

 

March 31, 2010. The Third Calculation Statement shall include, in addition to the
Purchaser’s calculation of EBITDA derived for the Third Calculation Period and the Earnout Payment
due in connection therewith, all of the information, work papers and supporting information
necessary to demonstrate same. The Earnout Payment shall be payable (i) in cash no later than April
30, 2010 (A) after receipt by the Purchaser of notice from the Members that they have accepted the
Third Calculation Statement (a “Third Acceptance Notice”), or (B) after expiration of the period
during which a Third Dispute Notice may be delivered if neither a Third Dispute Notice nor a Third
Acceptance Notice are delivered, or (ii) into escrow pursuant to the Escrow Agreement attached as
Exhibit B hereto pending the resolution of any disagreement pursuant to Section 2.5(g), as
the case may be, provided, further, that a Member shall have the option to receive its portion of
an Earnout Payment in Shares by providing written notice to the Purchaser at the earlier of (a) the
time that the Third Acceptance Notice is delivered, (b) April 20, 2010, or (c) at the time that an
Earnout Payment is required to be delivered into escrow pending the resolution of any disagreement
pursuant to Section 2.5(g). The conversion price per Share shall be seventy-five percent
(75%) of the VWAP, but not less than the Floor Price in any event.

     (g) Following the delivery of the Third Calculation Statement, the Purchaser will allow the
Members and its representatives, upon reasonable advance notice, reasonable access during regular
business hours to all work papers, books and records and all additional information used in
preparing the Third Calculation Statement and will make the Purchaser’s officers, employees,
representatives and accountants reasonably available to discuss such papers, books, records and
information. In the event that the Members disagree with the Third Calculation Statement, it shall
notify (the “Third Dispute Notice ”) the Purchaser in writing within thirty (30) days after receipt
of the Third Calculation Statement of such disagreement, stating the facts of the disagreement and
the calculation of the Earnout Payment pursuant to Section 2.5(a)(iii) by the Members, and
including therewith a copy of any financial information used in making the calculation other than
that information previously provided by the Purchaser. If a Third Dispute Notice is not given
within such thirty (30) day period, then the Third Calculation Statement shall be deemed to be
final, conclusive and binding on the parties. In the event a Third Dispute Notice is timely given,
the Members and the Purchaser shall meet and attempt in good faith to resolve the items or amounts
in dispute. If the Purchaser and the Members notwithstanding such good faith effort, are unable to
reach an agreement within thirty (30) days after receipt by the Purchaser of the Third Dispute
Notice, then the Purchaser and the Members jointly shall engage the Arbitration Firm to review the
disputed items or amounts and compute the disputed portion of the Earnout Payment due, if any,
pursuant to Section 2.5(a)(iii). In making its calculation, the Arbitration Firm shall
consider only the items or amounts in dispute (and to the extent required, any other items or
amounts necessary to derive the disputed items or amounts). Such determination shall be made within
thirty (30) days after the date on which the Arbitration Firm begins its review and shall be final,
conclusive and binding on the parties. The fees, costs and expenses of the Arbitration Firm shall
be borne by the party whose calculation of the Earnout Payment pursuant to Section
2.5(a)(iii) is furthest from the Arbitration Firm’s calculation.

     (h) The Purchaser shall provide the Members with a written statement of its calculation (the
“Fourth Calculation Statement ”) of the Earnout Payment pursuant to Section 2.5(a)(iv) no
later than September 30, 2010. The Fourth Calculation Statement shall include, in addition to the
Purchaser’s calculation of EBITDA derived for the Fourth

18

 

Calculation Period and the Earnout Payment due in connection therewith, all of the
information, work papers and supporting information necessary to demonstrate same. The Earnout
Payment shall be payable (i) in cash no later than October 31, 2010 (A) after receipt by the
Purchaser of notice from the Members that they have accepted the Fourth Calculation Statement (a
“Fourth Acceptance Notice ”), or (B) after expiration of the period during which a Fourth Dispute
Notice may be delivered if neither a Fourth Dispute Notice nor a Fourth Acceptance Notice are
delivered, or (ii) into escrow pursuant to the Escrow Agreement attached as Exhibit B hereto
pending the resolution of any disagreement pursuant to Section 2.5(i) as the case may be,
provided, further, that a Member shall have the option to receive its portion of an Earnout Payment
in Shares by providing written notice to the Purchaser at the earlier of (a) the time that the
Fourth Acceptance Notice is delivered, (b) October 20, 2010, or (c) at the time that an Earnout
Payment is required to be delivered into escrow pending the resolution of any disagreement pursuant
to Section 2.5(i). The conversion price per Share shall be seventy-five percent (75%) of
the VWAP, but not less than the Floor Price in any event.

     (i) Following the delivery of the Fourth Calculation Statement, the Purchaser will allow the
Members and its representatives, upon reasonable advance notice, reasonable access during regular
business hours to all work papers, hooks and records and all additional information used in
preparing the Fourth Calculation Statement and will make the Purchaser’s officers, employees,
representatives and accountants reasonably available to discuss such papers, books, records and
information. In the event that the Members disagree with the Fourth Calculation Statement, it shall
notify (the “Fourth Dispute Notice ”) the Purchaser in writing within thirty (30) days after receipt
of the Fourth Calculation Statement of such disagreement, stating the facts of the disagreement and
the calculation of the Earnout Payment pursuant to Section 2.5(a)(iv) by the Members, and
including therewith a copy of any financial information used in making the calculation other than
that information previously provided by the Purchaser. If a Fourth Dispute Notice is not given
within such thirty (30) day period, then the Fourth Calculation Statement shall be deemed to be
final, conclusive and binding on the parties. In the event a Fourth Dispute Notice is timely given,
the Members and the Purchaser shall meet and attempt in good faith to resolve the items or amounts
in dispute. If the Purchaser and the Members notwithstanding such good faith effort, are unable to
reach an agreement within thirty (30) days after receipt by the Purchaser of the Fourth Dispute
Notice, then the Purchaser and the Members jointly shall engage the Arbitration Firm to review the
disputed items or amounts and compute the disputed portion of the Earnout Payment due, if any,
pursuant to Section 2.5(a)(iv). In making its calculation, the Arbitration Firm shall
consider only the items or amounts in dispute (and to the extent required, any other items or
amounts necessary to derive the disputed items or amounts). Such determination shall be made within
thirty (30) days after the date on which the Arbitration Firm begins its review and shall be final,
conclusive and binding on the parties. The fees, costs and expenses of the Arbitration Firm shall
be borne by the party whose calculation of the Earnout Payment pursuant to Section
2.5(a)(iv) is furthest from the Arbitration Firm’s calculation.

     (j) The Purchaser shall not be required to pay the Earnout Payment if:

	 	(i)	 	the Members have been adjudicated as having been in breach of this Agreement,
provided, however, that if only one of the Members is
adjudicated as having been in breach of this Agreement, then the

19

 

	 	 	 	Purchaser shall pay the Earnout Payment to the non-breaching Member
in accordance with this Section 2.5;

	 	(ii)	 	Fischer and Diamond have been adjudicated as having been in breach of
their respective Employment Agreements, other than paragraphs 5 through 9
of their respective Employment Agreements, provided, however, if only one
of Fischer or Diamond is in breach of their Employment Agreements, other
than paragraphs 5 through 9 of their respective Employment Agreements, then
the Purchaser shall pay the Earnout Payment to the non-breaching person in
accordance with this Section 2.5; or
	 
	 	(iii)	 	Fischer and Diamond have been adjudicated as having been in breach of
their respective Non-Competition Agreements or paragraphs 5 through 9 of
their respective Employment Agreements, provided, however, that if only one
of Fischer or Diamond is in breach of their Non-Competition Agreements or
paragraphs 5 through 9 of their respective Employment Agreements, then the
Purchaser shall pay one half of the Earnout Payment to the non-breaching
person in accordance with this Section 2.5;

provided, further, that since adjudication through litigation takes a substantial amount of
time, if the Purchaser makes a claim or claims against the Members for breach of this
Agreement or against either Fischer or Diamond for breach of their respective Non-
Competition Agreements or Employment Agreements, the Purchaser may pay the Earnout Payment
into escrow pending the adjudication of the claim or claims pursuant to the Escrow Agreement
attached as Exhibit B hereto.

ARTICLE III CLOSING AND DELIVERIES

     3.1 Closing. Unless this Agreement is terminated prior to the Closing Date (as defined
below), the closing of the purchase and sale of the Interests (the “Closing”) shall take place on
or before August 31,2007 (the “Closing Date”), through overnight mail between the parties
respective counsel, unless a specific date and place is agreed to in writing by the parties hereto.

     3.2 Deliveries by the Members. At the Closing, the Members shall deliver, or cause to
be delivered, to the Purchaser the following items:

(a) a receipt evidencing receipt by the Members of the Purchase Price;

(b) a copy of the Escrow Agreement, duly executed by each Member;

     (c) a copy of the non-competition agreements, in the form attached hereto as
Exhibit A, by and between each member of the Seller Group, the Company and the
Purchaser, duly executed by each member of the Seller Group (each hereinafter referred to
as a “Non-Competition Agreement ”);

20

 

     (d) a copy of the Diamond Employment Agreement, in the form attached hereto as
Exhibit C, by and between Diamond and the Company, duly executed by Diamond (the
“Diamond Employment Agreement”);

     (e) a copy of the Fischer Employment Agreement, in the form attached hereto as
Exhibit D, by and between Fischer and the Company, duly executed by Fischer (the
“Fischer Employment Agreement”);

     (f) a copy of a member release, in the form attached hereto as Exhibit E, duly
executed by each member of the Seller Group (the “Member Release ”);

     (g) a copy of a Registration Rights Agreement in the form attached hereto as
Exhibit H, by and between the Company and each Member, duly executed by each Member
(the “Registration Rights Agreement ‘);

     (h) (i) a certificate or certificates representing all of the Interests with duly
executed power(s) attached in proper form for transfer to the Purchaser and (ii) any other
documents that are necessary to transfer to the Purchaser good and valid title to the
Interests, with any necessary transfer tax stamps affixed or accompanied by evidence that
all stock transfer Taxes have been paid;

     (i) a reasonably current good standing certificate for the Company issued by the
Secretary of State of the State of Indiana and by the secretary of state in each state in
which the Company is qualified to do business as a foreign company;

     (j) copies of the Articles of Organization of the Company, certified by the Secretary
of State of the State of Indiana, and copies of the operating agreement of the Company,
certified by an officer of the Company;

     (k) the original limited liability company record books of the Company;

     (1) a certificate of an officer of the Company, dated as of the Closing Date, setting
forth in sufficient detail acceptable to the Purchaser the aggregate amount of (i)
Indebtedness of the Company, and (ii) Selling Expenses as of the Closing Date;

     (m) appropriate termination statements under the Uniform Commercial Code and other
instruments as may be requested by the Purchaser to extinguish all Indebtedness of the
Company, and all security interests related thereto, to the extent directed by the
Purchaser;

     (n) all of the consents listed on Schedule 4.6;

     (o) written resignations of each director and officer of the Company and listed on
Schedule 3.2(o); and

     (p) such other documents and instruments as the Purchaser shall reasonably request to
consummate the transactions contemplated by this Agreement.

     3.3 Deliveries by the Purchaser. At Closing, the Purchaser shall deliver, or cause to be
delivered, to the Members the following items:

21

 

     (a) copies of resolutions of the Board of Directors of the Purchaser approving the
execution and delivery of this Agreement and the Ancillary Agreements, and the consummation
of the transactions contemplated hereby and thereby, certified by an officer of the
Purchaser;

     (b) the Purchase Price payable as set forth in Section 2.2; 

     (c) a copy of the Escrow Agreement, duly executed by the Purchaser;

     (d) a copy of the Diamond Employment Agreement, duly executed by the Company;

     (e) a copy of the Fischer Employment Agreement, duly executed by the Company;

     (f) a copy of the Registration Rights Agreement, duly executed by the Purchaser; and

     (g) such other documents and instruments as the Members shall reasonably request to
consummate the transactions contemplated by this Agreement.

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

     The Seller Group hereby represents and warrants to the Purchaser, as follows:

     4.1 Existence 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 Indiana and is duly
authorized, qualified or licensed to do business as a foreign limited liability company in each of
the jurisdictions set forth on Schedule 4.1. The Company is not qualified to do business in
any jurisdiction other than as set forth on Schedule 4.1 and neither the nature of the
business conducted by the Company, nor the property owned, licensed or operated by the Company
requires the Company to qualify to do business as a foreign limited liability company in any other
jurisdiction.

     4.2 Power. The Company has the requisite corporate or other power and authority to
(a) own or lease and to operate its properties and assets as and where currently owned, operated
and leased and (b) carry on its business as currently conducted.

     4.3 Validity and Enforceability. The Members have the capacity to execute, deliver and
perform the Members’ obligations under this Agreement and the Ancillary Agreements. This Agreement
and each of the Ancillary Agreements have been duly executed and delivered by the Members and,
assuming due authorization, execution and delivery by the Purchaser, represent the legal, valid and
binding obligations of the Members, enforceable against the Members in accordance with their
respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, fraudulent conveyance and other similar Laws and principles of equity affecting creditors’
rights and remedies generally. No further action on the part of the Members is or will be required
in connection with the transactions contemplated by this Agreement or the Ancillary Agreements.

22

 

     
4.4 Capitalization of the Company. The Interests constitute all of the outstanding
membership interests of the Company, all of which have been duly authorized and validly issued and
are fully paid and non-assessable, and there no other equity interests in the Company. Except as
set forth on Schedule 4.4, there are no outstanding options, warrants, rights, calls,
subscriptions, claims of any character, agreements, obligations, convertible or exchangeable
securities, or other commitments, contingent or otherwise, of any kind obligating the Company to
issue, directly or indirectly, any additional equity securities. Except as set forth on
Schedule 4.4 there are no agreements, commitments or contracts relating to the issuance,
sale, transfer or voting of any equity securities or other securities of the Company. Except as
listed on Schedule 4.4, the Company has no Subsidiaries or other Investments.

     4.5 No Conflict. Neither the execution of this Agreement or the Ancillary Agreements
to which the Members are a party nor the performance by the Members of their obligations hereunder
or thereunder will (a) violate or conflict with the Articles of Organization or operating agreement
of the Company or any Law or Order, (b) violate, conflict with or result in a breach or termination
of, or otherwise give any Person additional rights or compensation under, or the right to terminate
or accelerate, or constitute (with notice or lapse of time, or both) a default under the terms of
any Contract to which the Company is a party or by which any of the assets or the properties of the
Company are bound or (c) result in the creation or imposition of any Lien with respect to any of
the assets or properties of the Company.

     4.6 Consents. Except as set forth on Schedule 4.6, no consent, approval or
authorization of any Person, including any Governmental Authority, is required to be made or
obtained by the Company in connection with the execution and delivery by the Members of this
Agreement or the Ancillary Agreements or the consummation of the transactions contemplated hereby
or thereby.

     4.7 Property.

     (a) Title. Each Member has good and marketable title to the Interests, free
and clear of all Liens. Upon the consummation of the transactions contemplated by this
Agreement, the Purchaser will acquire good and valid title to the Interests, free and
clear of all Liens. Other than the Permitted Liens, the Company has (i) good and
marketable indefeasible fee simple title to the real property, together with all of the
improvements thereon, to those properties set forth on Schedule 4.7(a) (the “Owned
Real Property”) and (ii) good and marketable title to, valid and enforceable leasehold
interests in, or a valid and enforceable license to, all of its other tangible assets and
properties (including, without limitation, the Leased Real Property).

     (b) Real Property Leases. Schedule 4.7(b) sets forth a true and
complete description of all real property leased, licensed to or otherwise used or
occupied (but not owned) by the Company (collectively, the “Leased Real Property”)
including the address thereof, the annual fixed rental, the expiration of the term, any
extension options and any security deposits. A true and correct copy of each such lease,
license or occupancy agreement, and any amendments thereto, with respect to the Leased
Real Property (collectively, the “Real Property Leases”) has been delivered to the
Purchaser, and no changes have been made to any Real Property Leases since the date of
delivery. All of the Leased Real Property is used or occupied by the Company pursuant to a
Real Property Lease. Each Real Property Lease is in full force and effect and is valid,
binding and enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization,

23

 

moratorium, liquidation, fraudulent conveyance and other
similar Laws and principles of equity affecting creditors’ rights and remedies generally.
There are no existing defaults by the Company or the lessor under any of the Real Property
Leases, and no event has occurred which (with notice, lapse of time or both) could
reasonably be expected to constitute a breach or default under any of the Real Property
Leases by any party or give any party the right to terminate, accelerate or modify any
Real Property Lease. Except as set forth on Schedule 4.7(b),(i) no consent is
required from the lessor under any of the Real Property Leases in order to consummate the
transactions contemplated by this Agreement and the Ancillary Agreements and (ii) no
Affiliate or Family Affiliate of the Company or member of the Seller Group is the owner or
lessor of any Leased Real Property.

     (c) Tangible Personal Property. Schedule 4.7(c) sets forth a true and
complete list, by category, of all equipment, machinery and other similar tangible personal
property, with an individual original cost of $5,000 or more, that is owned or leased by the
Company (the “Tangible Personal Property”). The Company is in possession of all the
Tangible Personal Property.

     (d) Absence of Violations. Except as set forth on Schedule 4.7(d):

     (i) None of the Real Property, nor the leasing, occupancy or use of the Real
Property, is in material violation of any Law, including, without limitation, any
building, zoning, environmental or other ordinance, code, rule or regulation, and
there are no work orders, notices of deficiency or notices of violation issued by
any Governmental Authority affecting the Real Property.

     (ii) The Company has obtained all permits necessary for the operation of the
business of the Company at the Real Property, and is zoned to permit the current
use of the Real Property.

     (e) Reassessments. To the knowledge of the Seller Group, there is not now
pending nor contemplated any reassessment of any parcel included in the
Real Property that could result in a change in the rent, additional rent or other sums
and charges payable by the Company under any agreement relating to the Real Property.

     (f) No Condemnation. To the knowledge of the Seller Group, there is no pending
condemnation, expropriation, eminent domain or similar proceeding affecting all or any
portion of the Real Property. The Members have not received any written notice or oral
notice of any such proceeding, and the Members have no Knowledge that any such proceeding
is contemplated.

     (g) Condition of Property. There are no material defects in, mechanical
failure of, or damage to, the Real Property. The mechanical, electrical and HVAC systems
serving the Real Property are in good working condition, subject to ordinary wear and tear
consistent with the age of the systems.

     4.8 Necessary Property and Condition of Property. The Company is the only operation
through which the Company’s business is conducted. The assets and properties owned, leased or
licensed by the Company are in good condition and repair (subject to normal wear and tear

24

 

consistent with the age of the assets and properties), have been adequately maintained and
constitute all of the properties necessary to conduct the Company’s business as it is currently
conducted.

     4.9 Litigation. Except as set forth on Schedule 4.9. there is no instance in
which the Company is or has been within the three-year period prior to the Closing Date (a) subject
to any unsatisfied Order or (b) a party or is threatened to be made a party to any complaint,
action, suit, proceeding, hearing or investigation of any Person or Governmental Authority. No
event has occurred or circumstances exist that could give rise to or serve as a basis for the
commencement of any complaint, action, suit, proceeding, hearing or investigation of any Person or
Governmental Authority. There are no judicial or administrative actions, proceedings or
investigations pending or, to their Knowledge, threatened that question the validity of this
Agreement, the Ancillary Agreements or any of the transactions contemplated hereby or thereby.
Without limiting the generality of the foregoing, there are no pending or, to their Knowledge,
threatened actions by any Governmental Authority to modify the zoning classification of, or to
condemn or take by power of eminent domain (or purchase in lieu thereof), or to classify as a
landmark, or otherwise to take or restrict in any way the right to use, develop or alter, all or
any part of the Real Property.

     
4.10 Compliance with Laws. The Company is now, and has been within the past three
years, in compliance with all Laws and Orders, including, without limitation, those respecting (a)
labor and employment Laws, standards and practices (including, without limitation, all payroll and
payroll withholding practices associated therewith), (b) zoning, and (c) Intellectual Property.
Neither the Company nor the Seller Group has Knowledge of any proposed Law or Order that would be
applicable to the Company and that would adversely affect any assets, properties, liabilities,
operations or prospects of the Company.

     
4.11 Conduct of Business. Since May 10, 2007, the business and operations of the
Company has been conducted in the Ordinary Course of Business and there has not been any Material
Adverse Change in the operation of the business or the performance or financial condition of the
Company. Without limiting the generality of the foregoing, since May 10, 2007, and except as set
forth on Schedule 4.11, the Company has not:

     (a) borrowed any amount or incurred or become subject to any liability in excess of
$10,000.00, except (i) current liabilities incurred in the Ordinary Course of Business,
(ii) liabilities under Contracts entered into in the Ordinary Course of Business and (iii)
borrowings under lines of credit existing on such date;

     (b) sold, assigned, licensed, leased or transferred (including, without limitation,
transfers with employees, Affiliates, the members of the Seller Group or their respective
Family Affiliates) any assets or properties except in the Ordinary Course of Business, or
cancelled any debts or claims;

     (c) waived any rights of value or suffered any losses in the Ordinary Course of
Business;

     (d) declared or paid any dividends or other distributions with respect to any equity
interests of the Company or redeemed or purchased, directly or indirectly, any equity
interests of the Company;

25

 

     (e) taken any other action or entered into any other transaction (including any transactions
with employees, Affiliates, members of the Seller Group or their respective Family Affiliates)
other than in the Ordinary Course of Business or the transactions contemplated by this Agreement
and the Ancillary Agreements;

     (f)
(i) increased the salary, wages or other compensation rates of any officer, employee,
director or consultant except in the Ordinary Course of Business, (ii) failed to pay profit-sharing
bonuses and any other regularly-paid bonuses to any officer, employee. director or consultant in a
manner that is not consistent with the Ordinary Course of Business, (iii) made or granted any
increase in any Employee Plan, or amended or terminated any existing Employee Plan, or adopted any
new Employee Plan or (iv) made any commitment or incurred any liability to any labor organization;

     (g) made any capital expenditures or commitments therefor in excess of $10,000.00;

     (h) made any change in accounting or Tax principles, practices or policies from those
utilized in the preparation of the Financial Statements;

     (i) made any write-off or write-down of or made any determination to write-off or write-down
any of its assets and properties, except in the Ordinary Course of Business.

     (j) made any change in its general pricing practices or policies or any change
in its credit or allowance practices or policies;

     (k) entered into any amendment, modification, termination (partial or complete) or granted any
waiver under or given any consent with respect to any Contract that is required to be disclosed in
the schedules to this Agreement;

     (l) commenced or terminated any line of business; or

     (m) received written notice from any customer or supplier that such customer or supplier has
ceased, may cease or will cease to do business with it.

     4.12
Labor Matters.

     (a)
Union and Employee Contracts. Except as set
forth on Schedule 4.12(a),
(i) the Company is not a party to, bound by or currently negotiating any written or oral
employment, services, fee, union, collective bargaining, agency, management, independent
contractor, consulting or similar type of agreements, contracts or arrangements, including, without
limitation, any change of control, termination or severance, employee compensation or benefits,
bonus, retention bonus, profit-sharing, equity option, unusual or special employment compensation
arrangements, (ii) the Company has not agreed to recognize any union or other collective bargaining
unit and (iii) no union or collective bargaining unit has been certified as representing the
employees of the Company and no organizational attempt has been made or, to their Knowledge,
threatened by or on behalf of any labor union or collective bargaining unit with respect to any
employees of the Company. Except as set forth on
Schedule 4.12(a), neither the Company nor
any of its respective predecessors has experienced any labor strike, dispute, slowdown or stoppage
or any other labor difficulty

26

 

during the past five years. The Company does not employ any employee
who cannot be dismissed immediately without notice and without further liability to the Company,
subject to applicable laws, rules and regulations relating to employment discrimination.

     (b) List of Employees, etc. Schedule 4.12(b)
sets forth a list of the employees,
consultants and independent contractors of the Company, their positions, their dates of hire,
whether their status is active or inactive (and if inactive, the reason that they are inactive and
their expected return to work date), their work status (full-time, part-time, temporary, casual,
etc.), the rate of all regular and special compensation payable to each such person in any and all
capacities and any regular or special compensation that will be payable to each such person in any
and all capacities as of the Closing Date other than the then current accrual of regular payroll
compensation. The Company has no Knowledge that any of the employees with respect to the Company’s
business intends to terminate their employment relationship with the Company.

     (c) Labor and Employee Laws. There are no audits, complaints, claims or charges
pending, outstanding, or to their Knowledge, anticipated or threatened, nor are there any orders,
decisions, directions or convictions currently registered or outstanding by any Governmental
Authority against or in respect of the Company under any Laws, and without limiting the generality
of the foregoing, there are no outstanding, pending or threatened charges or complaints against the Company relating to unfair labor practices or
discrimination or under any legislation relating to employees, labor or labor relations. The
Company has paid in full all amounts owing under applicable workers compensation legislation, and
the workers’ compensation claims experience of the Company would not permit a penalty reassessment
under such legislation. There are no charges or orders requiring the Company to comply outstanding
under applicable occupational health and safety legislation.

     4.13Employee Benefit Plans.

     
(a) Schedule 4.13 sets forth a complete list of (i) all “employee benefit plans,” as
defined in Section 3(3) of ERISA, (ii) all other severance pay, salary, disability, continuation,
bonus, incentive, equity purchase, retirement, pension, profit sharing or deferred compensation,
post-retirement, employee group insurance, plans, contracts, programs, funds or arrangements of any
kind and (iii) all other employee benefit plans, contracts, programs, funds or arrangements
(whether written or oral, qualified or nonqualified, funded or unfunded, foreign or domestic,
currently effective or terminated) and any trust, escrow or similar agreement related thereto,
whether or not funded, in respect of any present or former employees, directors, officers, members,
consultants or independent contractors of the Company or with respect to which the Company has made
or is required to make payments, transfers or contributions in respect of any present or former
employees, directors, officers, members, consultants or independent contractors of the Company (all
of the above being individually or collectively referred to as an “Employee Plan” or “Employee
Plans,” respectively). The Company has no liability with respect to any plan, arrangement or
practice of the type described in the preceding sentence other than the Employee Plans.

     (b) True and complete copies of the following materials have been delivered to the Purchaser:
(i) all current and prior plan documents for each Employee Plan and amendments thereto or, in the
case of an unwritten Employee Plan, a written description

27

 

thereof. (ii) all determination letters from the IRS with respect to any of the Employee Plans, including if any Employee Plan relies on an
opinion letter issued by the IRS to the prototype or master plan sponsor, a copy of that IRS
opinion letter, (iii) all current and prior summary plan descriptions, summaries of material
modifications, annual reports and summary annual reports or, if any of these is not required, a
written statement to that effect including the reason, (iv) all current and prior trust agreements,
insurance contracts and other documents relating to the funding or payment of benefits under any
Employee Plan, (v) the most recent and two years prior actuarial reports and financial statements
relating to any Employee Plan and (vi) any other documents, forms or other instruments relating to
any Employee Plan, the delivery of which to the Purchaser would not violate applicable Law.

     (c) Each Employee Plan has, to their Knowledge, been maintained, operated and administered in
compliance with its terms and any related documents or agreements and in material compliance with
all applicable Laws. There have been no prohibited transactions or breaches of any of the duties
imposed on “fiduciaries” (within the meaning of Section 3(21) of ERISA) by ERISA with respect to
the Employee Plans that could result in any liability or excise Tax under ERISA or the Code being imposed on the
Company.

     (d) Each Employee Plan intended to be qualified under Section 401(a) of the Code is, to their
Knowledge, so qualified and has been determined by the IRS to be so qualified, and each trust
created thereunder has been determined by the IRS to be exempt from Tax under the provisions of
Section 501(a) of the Code, and, to their Knowledge, nothing has occurred since the date of any
such determination that could reasonably be expected to give the IRS grounds to revoke such
determination.

     (e) Neither the Company nor any member of the “Controlled Group” currently has, to their
Knowledge, and at no time in the past has had, an obligation to contribute to a “defined benefit
plan” as defined in Section 3(35) of ERISA, a pension plan subject to the funding standards of
Section 302 of ERISA or Section 412 of the Code, a “multiemployer plan” as defined in Section 3(37)
of ERISA or Section 414(f) of the Code or a “multiple employer plan” within the meaning of Section
210(a) of ERISA or Section 413(c) of the Code. For purposes of this Agreement, “Controlled Group”
means any member of any trade or business (whether or not incorporated) (i) under common control
within the meaning of Section 4001(b)(l) of ERISA with the Company or (ii) which together with the
Company is treated as a single employer under Section 414(t) of the Code.

     (f) With respect to each group health plan benefiting any current or former employee of the
Company or any member of the Controlled Group that is subject to Section 4980B of the Code, the
Company and each member of the Controlled Group has complied, to their Knowledge, with the
continuation coverage requirements of Section 4980B of the Code and Part 6 of Subtitle B of Title I
of ERISA.

     (g) With respect to each group health plan that is subject to Section 1862(b)(l) of the Social
Security Act (42 U.S.C. 1395y(b)), the Company has complied, to their Knowledge, with the secondary
payer requirements of Section 1862(b)(l) of such Act.

     (h) No Employee Plan is or at any time was, to their Knowledge, funded through a “welfare
benefit fund” as defined in Section 419(e) of the Code, and no benefits under any Employee Plan are
or at any time have been provided through a voluntary employees’

28

 

beneficiary association (within
the meaning of subsection 501(c)(9) of the Code) or a supplemental unemployment benefit plan
(within the meaning of Section 501(c)(17) of the Code).

     (i) INTENTIONALLY DELETED

     (j) There is no pending or, to their Knowledge, threatened assessment, complaint, proceeding
or investigation of any kind in any court or before any Governmental Authority with respect to any
Employee Plan (other than routine claims for benefits), nor is there any basis for one.

     (k) All (i) insurance premiums required to be paid with respect to, (ii)
benefits, expenses and other amounts due and payable under and (iii) contributions, transfers
or payments required to be made to, any Employee Plan prior to the Closing Date have, to their
Knowledge, been paid, made or accrued on or before the Closing Date.

     (l) With respect to any insurance policy that has, or does, provide funding for benefits under
any Employee Plan, (i) no insurance company issuing any such policy is in receivership,
conservatorship, liquidation or similar proceeding and no such proceedings with respect to any
insurer are imminent and (ii) there is, to their Knowledge, no liability of the Company in the
nature of a retroactive rate adjustment, loss sharing arrangement or other actual or contingent
liability, nor would there be any such liability if such insurance policy was terminated on the
Closing Date.

     (m) No Employee Plan, to their Knowledge, provides benefits, including, without limitation,
death or medical benefits, beyond termination of service or retirement other than (i) coverage
mandated by Law or (ii) death or retirement benefits under any Employee Plan that is intended to be
qualified under Section 401(a) of the Code.

     (n) The execution and performance of this Agreement and the Ancillary Agreements will not, to
their Knowledge, (i) constitute a stated triggering event under any Employee Plan that will result
in any payment (whether of severance pay or otherwise) becoming due from the Company to any current
or former officer, employee, director or consultant (or dependants of such Persons) or (ii)
accelerate the time of payment or vesting or increase the amount of compensation due to any current
or former officer, employee, director or consultant (or dependents of such Persons) of the Company.

     (o) The Company has reserved all rights necessary to amend or terminate each of the Employee
Plans without the consent of any other person.

     (p) No Employee Plan provides benefits to any Person who is not a current or former employee
of the Company or a dependent or other beneficiary of any such current or former employee.

     (q) All contributions required to be paid with respect to workers’ compensation arrangements
of the Company has, to their Knowledge, been made or accrued as a liability in the Financial
Statements.

29

 

     (r) All contributions, transfers and payments in respect of any Employee Plan, other than
transfers incident to an incentive stock option plan within the meaning of Section 422 of the Code,
to their Knowledge, have been or are fully deductible under the Code.

     (s) The Company has not agreed, promised or committed to institute any plan, program,
arrangement or agreement for the benefit of employees or former employees of the Company other than
the Employee Plans, or to make any amendments to, or increase benefits under, any of the Employee
Plans.

     (t) No amount that could be received (whether in cash or property or the vesting of property)
as a result of any of the transactions contemplated by this Agreement by any employee, officer or
director of the Company or any of their affiliates who is a “disqualified individual” (as such term
is defined in proposed Treasury Regulation Section 1.280G-1) under any employment, severance or
termination agreement, other compensation arrangement or Employee Plan currently in effect would,
to their Knowledge, be characterized as an “excess parachute payment” (as such term is defined in
Section 280G(b)(l) of the Code).

     (u) No employees or former employees of the Company who have at any time been represented by a
collective bargaining agent or whose terms and conditions of employment have been at any time
governed by a collective bargaining agreement, or their beneficiaries or dependants, are entitled
to receive a survivor transition benefit.

     4.14 Environmental. Except as set forth on Schedule 4.14:

     (a) There are no underground tanks and related pipes, pumps and other facilities regardless of
their use or purpose whether active or abandoned at the Real Property.

     (b) There is no asbestos nor any asbestos-containing materials used in, applied to or in any
way incorporated in any building, structure or other form of improvement on the Real Property. The
Company does not sell and has not sold any product containing asbestos or that utilizes or
incorporates asbestos-containing materials in any way.

     (c) The Company presently is and has been in material compliance with all Environmental Laws
applicable to the Real Property or formerly owned, leased or operated locations or the Company’s
business, and there exist no Environmental Conditions that require reporting, investigation,
assessment, cleanup, remediation or any other type of response action pursuant to any Environmental
Law or that could be the basis for any liability of any kind pursuant to any Environmental Law.

     (d) (i) The Company has not generated, manufactured, refined, transported, treated, stored,
handled, disposed, transferred, produced or processed any Hazardous Materials at or upon the Real
Property or formerly owned, leased or operated locations, except in compliance with all applicable
Environmental Laws; (ii) there has been no Release or Threat of Release of any Hazardous Material
at or in the vicinity of the Real Property that requires or may require reporting, investigation,
assessment, cleanup, remediation or any other type of response action pursuant to any Environmental
Law; and (iii) there has been no Release or Threat of Release of any Hazardous Material at or in
the vicinity of locations formerly owned, leased or operated by the Company that requires or may
require reporting,

30

 

investigation, assessment, cleanup, remediation or any other type of response
action by the Company pursuant to any Environmental Law.

     (e) The Company has not (i) entered into or been subject to any consent decree,
compliance order or administrative order with respect to the Real Property or formerly
owned, leased or operated locations or any facilities or
operations thereon; (ii) received notice under the citizen suit provisions of any
Environmental Law; (iii) received any request for information, notice, demand letter,
administrative inquiry or formal or informal complaint or claim with respect to any
Environmental Condition; or (iv) been subject to or, to their Knowledge, threatened with
any governmental or citizen enforcement action with respect to any Environmental Law.

     (f) (i) There currently are effective all Permits required under any Environmental Law
which are necessary for the Company’s activities and operations at the Real Property and
for any past or ongoing alterations or improvements at the Real Property; (ii) any
applications for renewal of such Permits have been submitted on a timely basis; and (iii)
such Permits can be transferred without changes to their terms or conditions.

     (g) The Company has made available to the Purchaser copies of all documents, records
and information in its possession or control concerning Environmental Conditions,
including, without limitation, previously conducted environmental audits and documents
regarding any disposal of Hazardous Materials at, upon or from the Real Property or
formerly owned, leased or operated locations, spill control plans and environmental agency
reports and correspondence.

     4.15 Contracts. Schedule 4.15 sets forth all of the Contracts to which the
Company is a party or to which any of the assets of the Company is bound. The Company has provided
to the Purchaser true and complete copies of each such Contract, as amended to date. Each Contract
listed on Schedule 4.15 (or required to be set forth on Schedule 4.15) is a valid,
binding and enforceable obligation of the Company, as applicable, enforceable in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
fraudulent conveyance and other similar Laws and principles of equity affecting creditors’ rights
and remedies generally. With respect to the Contracts set forth on Schedule 4.15 (or
required to be set forth on Schedule 4.15): (a) neither the Company nor any other party
thereto is in material default under or in violation of any Contract; (b) no event has occurred
which (with notice or lapse of time, or both) would constitute such a default or violation by the
Company and there is no such default or violation by the other party to any Contract; and (c) the
Company has not released any of its material rights under any Contract.

     4.16
Licenses and Permits. Schedule 4.16 sets forth a true and complete list and description
of all licenses, permits and other authorizations of any Governmental Authority held by the Company
and used by the Company in the conduct of its business. The Company is in compliance with the terms
of such licenses, permits and authorizations and there is no pending or, to its Knowledge,
threatened, termination, expiration or revocation of any of the foregoing. Except for the licenses,
permits and authorizations set forth on Schedule 4.16, there are no licenses, permits or other
authorizations, whether written or oral, necessary or required for the conduct of the business of
the Company.

31

 

     4.17 Intellectual Property.

     (a) Schedule 4.17(a) sets forth, with owner, countries, registration and application
numbers and dates indicated, as applicable, and in the case of unregistered Trademarks, country of
use and date of first use, a complete and correct list of all the following Intellectual Property
owned by the Company: (i) Patents, (ii) Copyright registration(s) and applications; (iii)
Trademarks (whether registered or not); (iv) Software programs; and (v) Domain Names. Schedule
4.17(a) also sets forth all Software used (but not owned) by the Company. All fees associated
with maintaining any Intellectual Property required to have been set forth on Schedule
4.17(a) have been paid in full in a timely manner to the proper Governmental Authority. Except
as set forth on Schedule 4.17(a), all of the Intellectual Property listed thereon and owned
by the Company is registered, valid and enforceable.

     (b) Except pursuant to a Contract set
forth on Schedule 4.15 or as otherwise set forth on
Schedule 4.17(a), all of the Intellectual Property used by the Company in the conduct of
the Company’s business is owned by the Company and the Company has the sole and exclusive right to
use such Intellectual Property for the like thereof as currently conducted for any purpose, free
from (i) any Liens (except for Permitted Liens incurred in the Ordinary Course of Business) and
(ii) any requirement of any past, present or future royalty payments, license fees, charges or
other payments or conditions or restrictions whatsoever. Except pursuant to a Contract set forth on
Schedule 4.15, the Company has not licensed or otherwise granted any right to any Person
under any lntellectual Property owned or licensed to the Company or has otherwise agreed not to
assert any such Intellectual Property against any Person.

     (c) No director, officer, member, employee, consultant, contractor, agent or other
representative of the Company, owns or claims any rights in (nor has any of them made application
for) any Intellectual Property used by the Company.

     (d) The Company has entered into confidentiality and nondisclosure agreements with all of
their directors, officers, employees, consultants, contractors and agents and any other Person with
access to the Trade Secrets of the Company to protect the confidentiality and value of such Trade
Secrets, and there has not been any breach by any of the foregoing to any such agreement. The
source code for Software owned by the Company has not been disclosed, delivered or made available
to any Person not an employee of the Company, and the Company has not agreed to or undertaken to or
in any other way promised to provide such source code to any such Person.

     (e) The Company does not infringe or otherwise violate and has not infringed or otherwise
violated any Intellectual Property right of any other Person. None of the Intellectual Property
owned by the Company or exclusively licensed to them is being infringed or otherwise violated by
any other Person.

     (f) Except as set forth on Schedule 4.8, no claim, demand, complaint, action, suit,
proceeding, hearing or investigation has been made or threatened, nor is there any claim, demand,
complaint, action, suit, proceeding, hearing or investigation that is
pending or, to their Knowledge, is threatened, that (i) challenges the rights of the Company
in respect of any Intellectual Property, (ii) asserts that the operation of the business of the
Company is, was or

32

 

will be infringing or otherwise in violation of any Intellectual Property, or is (except as set
forth in a Contract listed on Schedule 4.15) required to pay any royalty, license fee,
charge or other amount with regard to any Intellectual Property or (iii) claims that any default
exists under any agreement or arrangement set forth or required to be set forth on Schedule
4.15. Except as set forth on Schedule 4.9, none of the Intellectual Property owned by
the Company is or has been subject to any Order, and neither the Company has not been subject to
any Order in respect of any other Person’s Intellectual Property.

     (g) All data and personal information used or maintained by the Company has been
collected, maintained, used and transferred in accordance with the Company’s applicable data
protection principles and policies. No Person has claimed any compensation from the Company
for the loss of or unauthorized disclosure or transfer of personal data, and no facts or
circumstances exist that might give rise to such a claim.

     4.18 Insurance. Schedule 4.18 sets forth a true and complete list and brief
description (including all applicable premiums and deductibles) of all policies of, and binders
evidencing, life, fire, workmen’s compensation, product liability, general liability and other
forms of insurance, including title insurance owned or maintained by the Company, all pending
claims thereunder, and all resolved claims made thereunder after December 31, 2003. Such policies
are in full force and effect, the Company is not in default under any of them, all policies are
paid in full and no premiums are due prior to September 30, 2007. The current limits of liability
of all insurance policies of the Company have not been exhausted and/or are not impaired. No notice
of cancellation or termination or nonrenewal has been received with respect to any such policy. No
reservation of rights letter in the defense of claims has been issued by a carrier in connection
with a policy set forth on Schedule 4.18. During the last three years, the Company has not
been refused any insurance with respect to its business or its assets, nor has coverage been
limited by any insurance carrier to which the Company has applied for insurance or with which the
Company has carried insurance. No event relating to the Company has occurred that could reasonably
be expected to result in a retroactive upward adjustment in premiums, audit adjustment in premiums,
experience based liability or loss sharing cost adjustment under any of the insurance policies set
forth on Schedule 4.18. The insurance maintained by the Company is sufficient to comply
with all applicable Laws and Contracts to which the Company is a party. To their Knowledge, no
insurance carrier providing insurance to the Company is in receivership, conservatorship,
liquidation or similar proceedings, and no such proceeding with respect to any such carrier is
imminent.

     4.19 Financial Statements.

     (a) Schedule 4.19 sets forth true and complete copies of (i) the audited
balance sheets of the Company as of December 31, 2006 and 2005 and the unaudited balance
sheets of the Company as of December 31, 2004 and the related statements of income and
members’ equity for the years then ended, together with the notes thereto, and the other
financial information included therewith (collectively, the “Financial Statements”), and
(ii) the unaudited balance sheet as of May 31, 2007 and the related statements of income and
members’ equity for the 5-month period then ended (collectively, the “Interim Financial
Statements”).

     (b) The Financial Statements present fairly, in all material respects, the financial
position, results of operations and members’ equity of the Company at the dates and for the
time periods indicated, and have been prepared by the management of the Company in a

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manner consistent with past accounting practices. The Interim Financial Statements present
fairly in all material respects the financial position, results of operations and members’
equity of the Company at the date and for the period indicated and have been prepared
consistent with prior Interim Financial Statements, and have been reviewed by the management
of the Company. The Financial Statements and the Interim Financial Statements were derived
from the books and records of the Company.

     4.20 Undisclosed Liabilities. Except as reflected in the Interim Financial Statements
or as set forth on Schedule 4.20, the Company has no liabilities (whether accrued,
absolute, contingent, unliquidated or otherwise, whether due or to become due, whether known or
unknown, regardless of when asserted) arising out of transactions or events entered into prior to
the Closing Date, or any action or inaction, or any state of facts existing, with respect to or
based upon transactions or events occurring prior to the Closing Date, except liabilities that have
arisen after the date of the Interim Financial Statements in the Ordinary Course of Business.

     4.21 Accounts Receivable. All accounts and notes receivable of the Company represent
sales actually made in the Ordinary Course of Business or valid claims as to which full performance
has been rendered by the Company. The reserve on the Interim Financial Statements against the
accounts receivable for returns and bad debts has been calculated in a manner consistent with past
practice. All of the accounts and notes receivable of the Company are, in the aggregate,
collectible in full, net of the reserve therefor, in the Ordinary Course of Business. No counter
claims, defenses or offsetting claims with respect to the accounts or notes receivable of the
Company are pending or, to their Knowledge, threatened. All of the accounts and notes receivable of
the Company relate solely to sales of goods or services to customers of the Company, none of whom
are Affiliates or Family Affiliates of the Company or the Seller Group.

     4.22 Inventories. Substantially all inventory is in good and fully useable condition
(to the same extent as if such inventory were brand new) and is merchantable, or suitable and
usable for the production or completion of merchantable products, for sale in the Ordinary Course
of Business as first quality goods at normal mark-ups. None of such inventory is obsolete,
discontinued, damaged, overage, or of below standard quality or merchantability, except for items
that have been written down to realizable market value on the Financial Statements. Each item of
such inventory is reflected in the books and records of the Company on the basis of a complete
physical count as of December 31, 2006, and is valued at the lower of cost, on a first-in,
first-out basis, or market. The present quantity of such inventory is sufficient to serve
adequately the customers of the Company in the Ordinary Course of Business. Substantially all
inventory is listed for sale by a current supplier of the Company in their current product offering
and is in a package or container that has been consistently used in the manufacturing process on an
ongoing basis. Finished goods in such inventory conform to the applicable specifications of the
Company, including all applicable warranties, whether express or implied, given in connection with
the sales of such goods and under Laws, and are free from defects in design, workmanship, and
material. The Company also maintains sufficient inventories of spare and replacement parts to meet
any repair and replacement obligations in the Ordinary Course of Business, under applicable
warranties or otherwise.

     4.23 Bank Accounts. Schedule 4.23 sets forth a true and complete list of the
name and address of (a) each bank with which the Company has an account or safe deposit box and the
name of each Person authorized to draw thereon or have access thereto and (b) the name of each
Person holding a power of attorney on behalf of the Company.

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     4.24 Product Liability and Warranty

     (a) Each product sold or otherwise delivered by the Company has been in conformity with
all applicable contractual commitments and all express and implied warranties, and the
Company has no liability (and there is no basis for any present or future action, suit,
proceeding, hearing, investigation, charge, complaint, claim or demand against the Company)
for replacement or repair of any such products or other damages in connection therewith,
subject only to the reserve for product warranty claims set forth in the Interim Financial
Statements. No product manufactured, sold, leased or delivered by the Company is subject to
any guaranty, warranty or other indemnity beyond the applicable standard terms and conditions
of sale, lease or service. Schedule 4.24 sets forth true and complete copies of the
standard terms and conditions of sale, lease or service of the Company (containing applicable
guaranty, warranty and indemnity provisions).

     (b) The Company has no liability, and there is no basis for any present or future
action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand against
the Company giving rise to any liability, arising out of any injury to Person or property as
a result of the ownership, possession or use of a product manufactured, sold, leased or
delivered by the Company.

     4.25 Indebtedness. Schedule 4.25 sets forth a true and complete list of the
individual components (indicating the amount and the Person to whom such Indebtedness is owed) of
all the Indebtedness outstanding with respect to the Company as of the Closing Date.

     4.26 Taxes. Except as set forth on Schedule 4.26:

     (a) All Tax Returns required to be filed prior to the Closing Date by or on behalf of
the Company have been duly and timely filed in accordance with applicable Laws, and are
true, correct and complete in all respects. The Company, and/or the members of the Seller
Group acting on its behalf, has not executed any extension of the statute of limitations on
the assessment or collection of any Tax with respect to which the applicable limitations
period has not expired. The Company has never had any Tax deficiency proposed or assessed
against it nor has the Company ever executed any waiver of any statute of limitations on the
assessment or collection of any Tax. In the case of Taxes for the current period not yet
due, the Company and/or the members of the Seller Group have made adequate provision in its
financial statements as a current liability for the payment of all Taxes for which the
Company is or may become liable for payment.

     (b) Pursuant to Code Section 708(b)(l)(A) and Section 1.708-l(b)(l) of the Treasury
Regulations, a termination of the Company’s federal tax status as a partnership will occur
immediately after the Closing. Accordingly, the Company will cease to exist for federal
income tax purposes immediately after the Closing. The Members shall be solely responsible
for the filing of a final Company short-period Form 1065, US. Return Of Partnership Income,
reflecting all of the Company’s partnership items (as defined under Code Section 6231(a)(3)
and the Regulations thereunder) required to be taken into account up until the date of
Closing and the payment of any and all taxes related to Company partnership items required
to be taken into account up until the date of Closing. Revenue Ruling 99-6, 1999-1 C.B. 432
describes the federal income tax treatment resulting to the Company, the Seller Group and
the Purchaser from this transaction.

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     (c) (i) No federal, state, local or foreign audits or other administrative proceedings or
court proceedings are presently pending with regard to any Taxes or Tax Returns of the Company, and
the Company has not received a written notice of any material pending or proposed claims, audits or
proceedings with respect to Taxes, (ii) the Company has not received any notice of deficiency or
assessment from any Governmental Authority for any amount of Tax that has not been fully settled or
satisfied, and no such deficiency or assessment is proposed, (iii) the Company has disclosed on its
Tax Returns all positions taken therein that could give rise to a substantial understatement of
Taxes within the meaning of Code Section 6662 or any similar statute or regulation under state,
local and foreign law, and (iv) the Company has never executed any waiver of any statute of
limitations on the assessment or collection of any Tax.

     (d) There are no Tax Liens upon any assets or property of the Company except for Liens for
current Taxes not yet due and payable.

     (e) The Company is and always has been treated as a partnership for federal income tax
purposes.

     (f) The Company is not and has never been a party to any tax-sharing agreement with any
person.

     (g) The Company is not and has not been a United States real property holding corporation (as
defined in Section 897(c)(2) of the Code) during the applicable period specified in Section
897(c)(1)(A)(ii) of the Code.

     (h) The Company has no contract, agreement plan, or other similar type of arrangement
currently in place covering any person that, individually or collectively, could give rise to the
payment of any amount that would not be deductible by reason of Section 280G of the Code, or would
constitute compensation in excess of the limitation set forth in Section 162(m) of the Code. The
Company is not obligated to make any “gross-up” or similar payment to any Person on account of any
Tax under Section 4999 of the Code.

     (i) The Company has not agreed to make, nor is it required to make, any adjustment under
Section 481(a) of the Code (or any similar provision of state, local or foreign law) by reason of a
change in accounting method or otherwise, and, the Internal Revenue Service has not proposed any
such adjustment or change in accounting method. The Company will not be required to include any
item of income in, or exclude any item of deduction from, taxable income for any taxable period (or
portion thereof) ending after the Closing Date as a result of any: (i) “closing agreement” as
described in Section 7121 of the Code (or any corresponding provision of state, local or foreign
income Tax law); (ii) installment sale or open transaction disposition made on or prior to the
Closing Date; or (iii) prepaid amount received on or prior to the Closing Date.

     (j) The Company is not subject to any private letter ruling of the Internal Revenue Service or
comparable rulings of other Taxing Authorities. No power of attorney currently in force has been
granted by the Company concerning any Tax matter.

     (k) The Company has complied (and until the Closing Date will comply) in all material respects
with the provisions of the Code relating to the withholding and payment of

36

 

Taxes, including, without limitation, the withholding and reporting requirements under Code
sections 1441 through 1464, 3401 through 3406, and 6041 through 6049, as well as similar provisions
under any other laws, and have, within the time and in the manner prescribed by law, withheld from
employee wages and paid over to the proper Taxing Authorities all amounts required. The Company has
undertaken in good faith to appropriately classify all service providers as either employees or
independent contractors for all Tax purposes.

     (l) The Company has not or has not ever had a permanent establishment or other taxable
presence in any foreign country, as determined pursuant to applicable foreign law and any
applicable Tax treaty or convention between the United States and such foreign country.

     (m) The Company has disclosed to the Internal Revenue Service on the appropriate Tax Returns
any Reportable Transaction in which the Company has participated. Company has retained all
documents and other records pertaining to any Reportable Transaction in which the Company has
participated, including documents and other records listed in Treasury Regulation Section 1.601
1-4(g) and any other documents or other records which are related to any Reportable Transaction in
which the Company has participated but not listed in Treasury Regulation Section 1.601 1-4(g).

     (n) None of the Company’s payroll, property, or receipts, or other factors used in a
particular state’s apportionment or allocation formula results in an apportionment or allocation of
business income to any state other than Indiana and Kentucky, and the Company has no nonbusiness
income that is allocated, apportioned, or otherwise sourced to any other state.

     4.27 Customers and Suppliers.

     (a) Customers. Schedule 4.27(a) sets forth the 10 largest customers of the
Company measured by dollar volume of sales for the fiscal year ended December 31, 2006 (the
“Material Customers”). Purchaser acknowledges that Company’s business is project oriented and that
while repeat business and on-going maintenance agreements with customers exist, Material Customers
may not continue to be customers of the Company and such Material Customers are likely to reduce
materially their respective business with the Company from the levels achieved during the fiscal
year ended December 31,2006; however since the fiscal year ended December 31, 2006, no Material
Customer has terminated its relationship with the Company or, to their Knowledge, have threatened
to do so; and the Company is not involved in any material claim, dispute or controversy with any
Material Customer.

     (b) Suppliers. Schedule 4.27(b) sets forth the 10 largest suppliers of the
Company measured by dollar volume of sales for the fiscal year ended December 31, 2006 (the
“Material Suppliers”). (i) All Material Suppliers continue to be suppliers of the Company; (ii)
since the fiscal year ended December 31, 2006, no Material Supplier has terminated its relationship
with the Company or, to their Knowledge, have threatened to do so; and (iii) the Company is not
involved in any material claim, dispute or controversy with any Material Supplier. To their
Knowledge, no supplier to the Company supplies goods or services used in connection with the
Company’s business not available from another source.

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     4.28 Related Party Transactions. Except as set forth on Schedule 4.28, none of
the Company, the members of the Seller Group or any of their respective Affiliates or Family
Affiliates, nor any current or former director, officer or employee of the Company, (a) has or
during the last three fiscal years has had any direct or indirect interest (i) in, or is or during
the last three fiscal years was, a director, officer or employee of, any Person that is a client,
customer, supplier, lessor, lessee, debtor, creditor or competitor of the Company or (ii) in any
material property, asset or right that is owned or used by the Company in the conduct of the
Company’s business or (b) is, or during the last three fiscal years has been, a party to any
agreement or transaction with the Company. There is no outstanding indebtedness of any current or
former director, officer, employee or consultant of the Company or the members of the Seller Group
or any of their respective Affiliates or Family Affiliates to the Company.

     4.29 Brokers. Except as set forth on Schedule 4.29, no Person has acted
directly or indirectly as a broker, finder or financial advisor for the Company or the members of
the Seller Group in connection with the negotiations relating to the transactions contemplated by
this Agreement, and no Person is entitled to any fee or commission or like payment in respect
thereof based in any way on any agreement, arrangement or understanding made by or on behalf of the
Company or the members of the Seller Group.

     4.30 Unclaimed Funds. Except as disclosed on Schedule 4.30, (i) the Company has no
liabilities, at or as of the Closing Date, under the unclaimed funds or unclaimed property laws of
the State of Indiana or any jurisdiction in which the Company transacts business (“Other
Jurisdictions”), except liabilities reflected on the Interim Financial Statements, (ii) the
Company has timely and properly reported and surrendered all unclaimed funds and unclaimed property
to the State of Indiana and all Other Jurisdictions in accordance with the laws of the State of
Indiana and the Other Jurisdictions, and (iii) the Company has complied with, is not in violation
of or delinquent in any respect to, the unclaimed funds or unclaimed property laws of the State of
Indiana and the Other Jurisdictions and have not paid, received notice of or otherwise been
subjected to any civil or criminal penalties, including, without limitation, any fines, interest
payments or other penalties, under such laws.

     4.31 Disclosure. The Seller Group hereby represents and warrants to the Purchaser that
the statements contained in this Article IV are correct and complete as of the date of this
Agreement and shall be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement throughout this Article
IV), except as set forth in the disclosure schedules accompanying this Agreement and initialed
by the parties. Neither the Seller Group nor the Company has intentionally withheld from the
Purchaser any material facts relating to the assets, properties, liabilities, business operations,
financial condition, results of operations or prospects of the Company’s business. Neither this
Agreement (including the exhibits and schedules hereto), the Ancillary Agreements nor any other
agreement, document, certificate or written statement furnished to the Purchaser by or on behalf of
the Company in connection with this Agreement, the Ancillary Agreements or the transactions
contemplated hereunder or thereunder contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained in this Agreement or
therein not misleading.

ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     The Purchaser hereby represents and warrants to the Seller Group as follows:

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     5.1 Existence and Good Standing. The Purchaser is a corporation duly incorporated,
validly existing and in good standing under the laws of Texas.

     5.2 Power. The Purchaser has the corporate power and authority to execute, deliver and
perform fully its obligations under this Agreement and the Ancillary Agreements.

     5.3 Validity and Enforceability. The Purchaser has the capacity to execute, deliver
and perform its obligations under this Agreement and the Ancillary Agreements. This Agreement and
each of the Ancillary Agreements have been duly executed and delivered by the Purchaser and,
assuming due authorization, execution and delivery by the Members, represent the legal, valid and
binding obligation of the Purchaser, enforceable against the Purchaser in accordance with their
respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, fraudulent conveyance and other similar Laws and principles of equity affecting
creditors’ rights and remedies generally. No further action on the part of the Purchaser is or will
be required in connection with the transactions contemplated by this Agreement or the Ancillary
Agreements.

     5.4 No Conflict. Neither the execution of this Agreement or the Ancillary Agreements,
nor the performance by the Purchaser of its obligations hereunder or thereunder will (a) violate or
conflict with the Purchaser’s Articles of Incorporation or any Law or Order or (b) violate,
conflict with or result in a breach or termination of, or otherwise give any Person additional
rights or compensation under, or the right to terminate or accelerate, or constitute (with notice
or lapse of time, or both) a default under the terms of any note, deed, lease, instrument, security
agreement, mortgage commitment, contract, agreement, license or other instrument or oral
understanding to which the Purchaser is a party.

     5.5 Consents. No consent, approval or authorization of any Person, including any
Governmental Authority, is required in connection with the execution and delivery by the Purchaser
of this Agreement or the Ancillary Agreements or the consummation of the transactions contemplated
hereby or thereby.

     5.6 Valid Issuance. The Shares of the Purchaser to be issued pursuant to the
transactions contemplated herein will be duly authorized, validly issued, fully paid,
non-assessable, free of any Liens and not subject to any preemptive rights or rights of first
refusal created by statute or the Purchaser’s Articles of Incorporation or Bylaws or any agreement
to which the Purchaser is a party or is bound.

     5.7 Brokers. No Person has acted directly or indirectly as a broker, finder or
financial advisor for the Purchaser in connection with the negotiations relating to the
transactions contemplated by this Agreement, and no Person is entitled to any fee or commission or
like payment in respect thereof based in any way on any agreement, arrangement or understanding
made by or on behalf of the Purchaser.

     5.8 Disclosure. The Purchaser hereby represents and warrants to the Seller Group that
the statements contained in this Article V are correct and complete as of the date of this
Agreement and shall be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement throughout this Article
V), except as set forth in the disclosure schedules accompanying this Agreement and initialed
by the parties. Purchaser has not intentionally withheld from the Seller Group any material facts
relating to the business

39

 

operations and financial condition, or prospects of the Purchaser’s business or Purchaser’s
financial ability to close on the purchase herein contemplated. Neither this Agreement (including
the exhibits and schedules hereto), the Ancillary Agreements nor any other agreement, document,
certificate or written statement furnished to the Seller Group in connection with this Agreement,
the Ancillary Agreements or the transactions contemplated hereunder or thereunder contains any
untrue statement of a material fact or omits to state a material fact necessary in order to make
the statements contained in this Agreement or therein not misleading.

ARTICLE VI INVESTMENT REPRESENTATIONS

     6.1 No Registration. The Members understand that the Shares which comprises a portion
of the Purchase Price will not, when issued, be registered under the Securities Act of 1933, as
amended (the “Securities Act”) or any state securities laws on the grounds that the issuance of the
Shares is exempt from registration pursuant to Section 4(2) of the Securities Act and applicable
state securities laws, and that the reliance of the Purchaser on such exemptions is predicated in
part on the representations, warranties, covenants and acknowledgments of the Members set forth in
this Section.

     6.2 Accredited Investors. The Members represent and warrant that the Members are
“accredited investors” as defined under the Securities Act.

     6.3 Legend. The Members represent and warrant that the Shares to be acquired by the
Members upon consummation of the transactions described in this Agreement will be acquired by the
Members for the Members’ own accounts, not as a nominee or agent, and without a view to resale or
other distribution within the meaning of the Securities Act and the rules and regulations
thereunder, and that the Members will not distribute any of the Shares in violation of the
Securities Act. The certificates representing the Shares shall bear restrictive legends in
substantially the following form:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933 (THE “ACT”) OR ANY STATE SECURITIES LAWS AND MAY ONLY BE SOLD OR OTHERWISE
TRANSFERRED IF THE HOLDER HEREOF COMPLIES WITH THE ACT AND APPLICABLE SECURITIES
LAWS.

TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY A
REGISTRATION RIGHTS AGREEMENT.”

In addition, the Shares shall bear any legend required by the securities or “Blue Sky” laws of any
state where the Members reside as well as any other legend deemed appropriate by the Purchaser or
its counsel.

     6.4 Rule 144. The Members (i) acknowledge that the Shares issued to the Members at the
Closing must be held indefinitely by the Members unless subsequently registered under the
Securities Act or an exemption from registration is available, (ii) are aware that any routine
sales of Shares made pursuant to Rule 144 under the Securities Act may be made only in limited
amounts and in accordance with the terms and conditions of that Rule and that in such cases where
the Rule is not applicable, compliance with some other registration exemption will be required, and
(iii) are aware that Rule 144 is not currently available for use by the Members for resale of any
of the Shares to be acquired by the Members upon consummation of the transactions described in this
Agreement.

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     6.5 Knowledge and Experience. The Members represent and warrant to the Purchaser that
the Members, either alone or together with the assistance of the Members’ professional advisors,
have such knowledge and experience in financial and business matters such that the Members are
capable of evaluating the merits and risks of the Members’ investment in any of the Shares to be
acquired by the Members upon consummation of the transactions described in this Agreement.

     6.6 Access to Information. The Members confirm that the Members have had the
opportunity to ask questions of and receive answers from the Purchaser concerning the terms and
conditions of the Members’ investment in the Shares, and the Members have received to the
satisfaction of the Members, such additional information, in addition to that set forth herein,
about the Purchaser’s operations and the terms and conditions of the offering as the Members have
requested.

     6.7 Transfers. In order to ensure compliance with the Securities Act, the Members
agree that after the Closing the Members will not sell or otherwise transfer or dispose of Shares
or any interest therein (unless such shares have been registered under the Securities Act) without
first complying with either of the following conditions, the expenses and costs of satisfaction of
which shall be fully borne and paid for by the Members:

	 	(a)	 	the Purchaser shall have received a written legal opinion from the Members’ legal
counsel, which opinion and counsel shall be satisfactory to the Purchaser in the exercise of
its reasonable judgment, or a copy of a “no-action” or interpretive letter of the Securities
and Exchange Commission (the “SEC”) specifying the nature and circumstances of the proposed
transfer and indicating that the proposed transfer will not be in violation of any of the
registration provisions of the Securities Act and the rules and regulations promulgated
thereunder; or
	 
	 	(b)	 	the Purchaser shall have received an opinion from its own counsel to the effect that the
proposed transfer will not be in violation of any of the registration provisions of the
Securities Act and the rules and regulations promulgated thereunder;

provided, however, that if the requested transfer is to be made pursuant to Rule 144 and Rule 144
actually permits such transfer, the Members shall not be required to prepare, provide or pay for
the legal opinion required to make such transfer but instead, upon the receipt of all appropriate
documentation necessary for the Purchaser’s counsel to prepare the requisite legal opinion, the
Purchaser shall instruct its counsel to prepare such legal opinion and shall bear the cost of such
counsel.

     The Members also agree that the certificates or instruments representing the Shares to be
issued to the Members pursuant to this Agreement may contain a restrictive legend noting the
restrictions on transfer described in this Section and required by federal and applicable state
securities laws, and that appropriate “stop-transfer” instructions will be given to the Purchaser’s
transfer agent, if any, provided that this Section 6.7 shall no longer be applicable to any Shares
following its transfer pursuant to a registration statement effective under the Securities Act or
in compliance with Rule 144 or if the opinion of counsel referred to above is to the further effect
that transfer restrictions and the legend referred to herein are no longer required in order to
establish compliance with any provisions of the Securities Act.

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ARTICLE VII INDEMNIFICATION

     7.1 General Indemnification Obligation.

     (a) The Seller Group, jointly and severally, shall indemnify and hold halmless the Purchaser,
the Company and their respective officers, directors, employees, agents, representatives and
Affiliates from and against any and all losses, liabilities, claims, damages, penalties, fines,
judgments, awards, settlements, costs, fees, expenses (including, without limitation, reasonable
attorneys’ fees) and disbursements (collectively, the
“Losses”) by any of the foregoing arising out
of or otherwise in respect of (i) any inaccuracies in any representation or warranty, or any breach
of any covenant or agreement, of the Seller Group contained in this Agreement (including any
schedule or exhibit attached hereto) or any Ancillary Agreement; (ii) any Indebtedness or Selling
Expenses of the Company not fully paid on the Closing Date; (iii) any Taxes in respect of the
period prior to Closing; and (iv) any and all complaints, actions, suits, proceedings, hearings or
investigations of any Person or Governmental Authority arising out of, or relating to, the
business, operations or actions of the Company and their respective predecessors, officers,
directors, employees, agents and representatives on or prior to the Closing Date, including but not
limited to any of the foregoing disclosed by the Seller Group on Schedule 4.9 hereto.

     (b) The Purchaser shall indemnify and hold harmless the Seller Group, and their respective
beneficiaries, heirs, administrators, and representatives from and against any and all Losses by
any of the foregoing arising out of or otherwise in respect of (i) any inaccuracies in any
representation or warranty, or any breach of any covenant or agreement, of the Purchaser contained
in this Agreement (including any schedule or exhibit attached hereto) or any Ancillary Agreement;
(ii) any Taxes in respect of the period after Closing; and (iii) any and all complaints, actions,
suits, proceedings, hearings or investigations of any Person or Governmental Authority arising out
of, or relating to, the business, operations or actions of the Company and their respective
predecessors, officers, directors, employees, agents and representatives after the Closing Date.

     7.2 Notice and Opportunity to Defend.

     (a) Notice of Asserted Liability. As soon as is reasonably practicable after the
Seller Group becomes, on the one hand, or the Purchaser becomes, on the other hand, aware of any
claim that it or they has or have under Section 7.1 that may result in a Loss (a “Liability
Claim”), such party (the “Indemnified Party”) shall give notice of the Liability Claim (a “Claims
Notice”) to the other party (the “Indemnifying Party”). A Claims Notice shall describe the
Liability Claim in reasonable detail and shall indicate the amount (estimated, if necessary and to
the extent feasible) of the Loss that has been or may be suffered by the Indemnified Party. No
delay in or failure to give a Claims Notice by the Indemnified Party to the Indemnifying Party
pursuant to this Section 7.2(a) shall adversely affect any of the other rights or remedies
which the Indemnified Party has under this Agreement, or alter or relieve the Indemnifying Party of
its obligation to indemnify the Indemnified Party, except and only to the extent that such delay or
failure has prejudiced the Indemnifying Party.

     (b) Opportunity to Defend Third Party Claims. The Indemnifying Party shall have the
right, exercisable by written notice to the Indemnified Party within thirty (30) days

42

 

of receipt
of a Claims Notice from the lndemnified Party of the commencement or assertion of any Liability
Claim in respect of which indemnity may be sought under this Article VII for a third party
Liability Claim, to assume and conduct the defense of such Liability Claim, in accordance with the
limits set forth in this Agreement, with counsel selected by the Indemnifying Party and reasonably
acceptable to the Indemnified Party; provided, however, that (i) the defense of such Liability
Claim by the Indemnifying Party will not, in the reasonable judgment
of the Indemnified Party, have
a material adverse effect on the Indemnified Party; (ii) the Indemnifying Party has sufficient
financial resources, in the reasonable judgment of the lndemnified Party, to satisfy the amount of
any adverse monetary judgment that is reasonably likely to result; and (iii) the Liability Claim
solely seeks (and continues to seek) monetary damages (the conditions set forth in clauses (i)
through (iii) are collectively referred to as the “Litigation Conditions”). If the Indemnifying
Party does not assume the defense of a Liability Claim in accordance with this Section
7.2(b), the Indemnified Party may continue to defend the Liability Claim. If the Indemnifying
Party has assumed the defense of a Liability Claim as provided in this Section 7.2(b), the
Indemnifying Party will not be liable for any legal expenses subsequently incurred by the
Indemnified Party in connection with the defense of the Liability Claim; provided,
however, that if (A) any of the Litigation Conditions cease to be met or (B) the
Indemnifying Party fails to take reasonable steps necessary to defend diligently such Liability
Claim, the Indemnified Party may assume its own defense, and the Indemnifying Party shall be liable
for all reasonable costs or expenses paid or incurred by the Indemnified Party in connection with
such defense. The Indemnifying Party or the Indemnified Party, as the case may be, shall have the
right to participate in (but not control), at its own expense, the defense of any Liability Claim
which the other is defending as provided in this Agreement. The Indemnifying Party, if it shall
have assumed the defense of any Liability Claim as provided in this Agreement, shall not, without
the prior written consent of the Indemnified Party, consent to a settlement of, or the entry of any
judgment arising from, any such Liability Claim which (x) does not include as an unconditional term
thereof the giving by the claimant or the plaintiff to the Indemnified Party a complete release
from all liability in respect of such Liability Claim, or (y) grants any injunctive or equitable
relief, or (z) may reasonably be expected to have an adverse effect on the affected business of the
Indemnified Party. The Indemnified Party shall have the right to settle any Liability Claim, the
defense of which has not been assumed by the Indemnifying Party.

     7.3
Survivability; Limitations.

     (a) The representations and warranties of the Seller Group and the Purchaser contained in this
Agreement or in any Ancillary Agreement shall survive for a period ending on the eighteen (18)
month anniversary of the Closing Date (the “Expiration Date”); provided, however,
that (i) the Expiration Date for any Liability Claim relating to a breach of or an inaccuracy in
the representations and warranties set forth in Section 4.10 (Compliance with Laws),
Section 4.13 (Employee Benefit Plans), Section 4.14 (Environmental) and Section
4.26 (Taxes) shall be the expiration of the applicable statute of limitations (taking into
account any extensions, suspension or tolling under applicable
Law); (ii) there will be no Expiration Date for any Liability Claim relating to a breach of or
inaccuracy in the representations and warranties set forth in Section 4.1 (Existence and
Good Standing), Section 4.2 (Power), Section 4.3 (Validity and Enforceability),
Section 4.4 (Capitalization of the Company), and Section 4.7(a) (Title) (the
representations and warranties set forth in clauses (i) and (ii) of this Section 7.3(a)
are, collectively, the “Excluded Representations”)

43

 

and (iii) any Liability Claim pending on any
Expiration Date for which a Claims Notice has been given in accordance with Section 7.2(a)
on or before such Expiration Date may continue to be asserted and indemnified against until finally
resolved. All of the covenants and agreements of the Seller Group and the Purchaser contained in
this Agreement shall survive after the Closing Date in accordance with their terms for an
indefinite period.

     (b) Subject to the limitations set forth in this Section 7.3, the Purchaser may set
off any Liability Claim it may have against the Seller Group against any amounts that may be
payable by the Purchaser to the Seller Group, including any amounts to be paid to the Seller Group
pursuant to the terms of this Agreement or any Ancillary Agreement.

     (c) Notwithstanding anything to the contrary contained in this Article VII or
elsewhere in this Agreement, the Seller Group shall not have any liability as a result of any
inaccuracy in any representation or warranty in this Agreement (i) unless and until the aggregate
amount of all such Losses sustained by the Purchaser exceeds One Hundred Thousand and No/100
Dollars ($100,000) (the “Deductible”), in which case, the Seller Group shall be liable for all
such Losses without regard to the Deductible or (ii) in excess of Six Million Dollars
($6,000,000.00) (the “Cap”), provided, however, that the Deductible and the Cap shall not apply
with respect to fraud or intentional misrepresentation, or with respect to the matters set forth in
Section 7.1(a)(ii) and (a)(iii)above.

ARTICLE
VIII CONFIDENTIALITY; PUBLIC DISCLOSURE

     8.1 Confidentiality.

     (a) From and after the Closing, without the prior written consent of the Purchaser, the Seller
Group shall not, except on behalf of the Purchaser, directly or indirectly, use any of the
Purchaser’s Confidential Information (as defined below) for the Seller Group’s own purposes or for
the benefit of any other person, firm, corporation, partnership or other entity or disclose any of
Purchaser’s Confidential lnformation to any person, firm, corporation, partnership or other entity.
As used herein, the term “Purchaser’s Confidential Information” means (i) all of the Purchaser’s
confidential business information, trade secrets (as defined under applicable statute or common
law), innovations and inventions, expertise and know-how, customer information, pricing
information, vendor information, intellectual property and other non-public information concerning
the Purchaser’s Business (as defined below) and (ii) except as set forth below, any and all
information relating to the terms of the transactions contemplated by this Agreement. As used
herein, the term “Purchaser’s Business” means the business of the Purchaser as conducted on and
prior to the date hereof, as well as the business that the Purchaser is acquiring pursuant hereto.
“Purchaser’s Confidential Information” does not
include information which: (i) is in or enters the public domain or is or becomes generally
known in the industry without breach of the confidentiality obligations in this Agreement; or (ii)
is received by the Seller Group from a third party without any breach of any obligation of
confidentiality in respect of such information provided that the receipt of such information is not
subject to any obligations of confidentiality. Notwithstanding the foregoing, the Seller Group may
disclose Purchaser’s Confidential Information in the following circumstances: (A) disclosure to
third parties to the extent that the Purchaser’s Confidential Information is required to be
disclosed pursuant to a court order or as otherwise required by law, provided that the Seller Group
promptly notifies the Purchaser as early as practicable upon learning of such requirement; and (B)

44

 

disclosure to legal counsel for the Seller Group, accountants or professional advisors to the
extent necessary for them to advise upon the interpretation or enforcement of this Agreement.

     (b) Prior to the Closing, the Purchaser and the Seller Group will be bound by the
Nondisclosure Agreement entered into between the Purchaser, the Company and the Seller
Group and all obligations of and duties to the Company set forth in such agreement shall be
deemed to be obligations of and duties to both the Company and the Seller Group.

     8.2 Press Releases. Each party hereto agrees that, except as otherwise set forth in
Section 8.3, unless approved by the other party in advance, which consent shall not be
unreasonably withheld, such party will not make any public announcement, issue any press release or
other publicity or, except as contemplated in this Agreement, confirm any statements by any person
not a party to this Agreement concerning the transactions contemplated hereby. Notwithstanding the
foregoing, each party hereto reserves the right to make any disclosure if such party, in its
reasonable discretion, deems such disclosure required by law. In that event, such party shall use
reasonable efforts to provide to the other party the text of such disclosure sufficiently in
advance to enable the other party to have a reasonable opportunity to comment thereon.

     8.3 Securities Filings. The Purchaser may make a public release from time to time of
all material information related to the terms of the transactions currently contemplated by this
Agreement as required by federal and state securities laws. The Purchaser shall provide the Members
with public disclosures and securities filings in connection with new disclosure of information
related to the terms of the transactions contemplated by this Agreement, including but not limited
to the relevant portions of Form 8-K, Form 10-Q and Form 10-K filings. The Members acknowledge that
the purpose of the notice pursuant to this Section 8.3 is not for them to comment on such
disclosures and filings but rather to provide some minimal notice to the Members prior to the
public release of such information.

ARTICLE IX COVENANTS RELATING TO CONDUCT OF BUSINESS

     During the period from the date of this Agreement and continuing until the Closing, the Seller
Group agrees (except as expressly contemplated by this Agreement or to the extent that the
Purchaser shall otherwise consent in writing) that:

     9.1 Ordinary Course. They shall carry on the business of the Company in the Ordinary
Course of Business and to the extent consistent with such business, use all reasonable efforts
consistent with past practice and policies to preserve intact its present business organization,
keep available the services of its present officers and key employees and preserve its
relationships with customers, suppliers and others having business dealings with it to the end that
its goodwill and ongoing business shall be unimpaired as a result of the transactions contemplated
hereby, provided, further, without limitation of the foregoing, that they shall not:

     (a) issue or sell, or contract to issue or sell, any equity in the Company or any
securities convertible into or exchangeable for equity of the Company or securities,
warrants, options or rights to purchase any of the foregoing;

     (b) purchase or redeem any membership interests of the Company;

45

 

     (c) other than distributions to the Members necessary to distribute cash to pay the Tax
obligations of the Members prior to Closing arising from the net income earned by the Company prior
to Closing, declare or pay any dividends or agree to make any other distribution with respect to
any membership interests of the Company to the extent that the Company’s Closing Balance falls
below the Closing Balance Target;

     (d) amend the Company’s Articles of Organization or operating agreement;

     (e) increase the compensation paid to any officer, director or employee of the Company, other
than in the Ordinary Course of Business;

     (f) deplete the Company’s working capital or fail to pay any obligation in a timely manner
(except obligations disputed in good faith),

     (g) borrow any amount or incur or become subject to any liability except (i) current
liabilities incurred in the Ordinary Course of Business, (ii) liabilities under Contracts entered
into in the Ordinary Course of Business; and (iii) borrowings under lines of credit existing on
such date;

     (h) waive any rights of value or suffer any losses in the Ordinary Course of Business:

     (i) take any other action or enter into any other transaction (including any transactions with
employees, Affiliates, members or their respective Family Affiliates) other than in the Ordinary
Course of Business or the transactions contemplated by this Agreement and the Ancillary Agreements;

     (j) (i) make or grant any increase in any Employee Plan, or amend or terminate any existing
Employee Plan, or adopt any new Employee Plan or (ii) make any commitment or incur any liability to
any labor organization;

     (k) make any capital expenditures or commitments therefore in excess of
$10,000.00;

     (1) make any change in accounting or Tax principles, practices or policies from those utilized
in the preparation of the Financial Statements;

     (m) make any write-off or write-down of or make any determination to write-off or write-down
any of its assets and properties;

     (n) make any change in its general pricing practices or policies or any change in its credit
or allowance practices or policies, including, but not limited to, accelerating the collection of
accounts receivable or other obligations owed to the Company in the Ordinary Course of Business.

     (0) enter into any amendment, modification, termination (partial or complete) or grant any
waiver under or give any consent with respect to any Contract that is required to be disclosed in
the schedules to this Agreement; or

46

 

     (p) commence or terminate any line of business.

     9.2 No Other Bids. In consideration of the substantial expenditure of time, effort and
expense to be undertaken by the Purchaser in connection with its due diligence review and the
consummation of the transactions contemplated hereby, the Seller Group represents and warrants that
upon the execution hereof and until the Closing Date, unless this Agreement is terminated pursuant
to Article XI herein, they will not, and will not permit the Company or its
representatives, officers, directors, members or employees to initiate, negotiate or discuss with
any other person or entity (other than the other party hereto) the sale and purchase of the
Company, or a substantial interest therein, whether by purchase of assets or membership interests,
merger or other transaction

ARTICLE X CONDITIONS PRECEDENT

     10.1 Conditions to Each Party’s Obligation. The respective obligation of each party
hereunder shall be subject to the satisfaction prior to the Closing Date of the following
conditions:

     (a) Approval. All authorizations, consents, orders or approvals of, or
declarations or filings with, or expiration of waiting periods imposed by, any Governmental
Authority necessary for the consummation of the transactions contemplated by this Agreement
shall have been filed, occurred or been obtained.

     (b) Legal Action. No action, suit or proceeding shall have been instituted or
threatened before any court or governmental body seeking to challenge or restrain the
transactions contemplated hereby.

     10.2 Conditions of Obligations of the Purchaser. In addition to the conditions set
forth in Section 10.1 the obligations of the Purchaser to effect the transactions
contemplated hereby are subject to the satisfaction of the following conditions unless waived by
the Purchaser:

     (a) Representations and Warranties. The representations and
warranties of the Seller Group set forth in this Agreement, when read together with
the Schedules, shall be true and correct in all material respects as of the date of this
Agreement and as of the Closing Date as though made on and as of the Closing Date, and the
Purchaser shall have received a certificate signed by the Seller Group to such effect.

     (b) Performance of Obligations of the Seller Group. The Members shall have
performed all obligations required to be performed by them under this Agreement prior to
the Closing Date, and the Purchaser shall have received a certificate signed by the Seller
Group to such effect.

     (c) No Material Adverse Change. There shall have been no Material Adverse
Change.

     (d) Consents and Actions. All requisite consents of any third parties to the
transactions contemplated by this Agreement shall have been obtained in a form acceptable
to the Purchaser in its sole but reasonably exercised discretion, including the consents of
the parties to the Contracts to the assignment of such Contracts to the Purchaser.

47

 

     11.3 No Assignment. The rights and obligations of the parties under this Agreement may
not be assigned without the prior written consent of the other parties to this Agreement.
Notwithstanding the previous sentence, the Purchaser may, without the consent of the Seller Group,
assign its rights under this Agreement to any lender of the Purchaser or to any Affiliate of the
Purchaser.

     11.4 Headings. The headings contained in this Agreement are included for purposes of
convenience only and shall not affect the meaning or interpretation of this Agreement.

     11.5 Integration, Modification and Waiver. This Agreement, together with the exhibits,
schedules and certificates or other instruments delivered under this Agreement, constitutes the
entire agreement between the parties with respect to the subject matter of this Agreement and
supersedes all prior understandings of the parties. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by each of the parties to this
Agreement. No waiver of any of the provisions of this Agreement shall be deemed to be or shall
constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party
making the waiver.

     11.6 Construction. The parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this Agreement. Any reference to any federal, state, local or foreign statute
or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless
the context requires otherwise. The word “including” shall mean including without limitation. Any
reference to the singular in this Agreement shall also include the plural and vice versa.

     11.7 Severability. If any provision of this Agreement or the application of any
provision of this Agreement to any party or circumstance shall, to any extent, be adjudged invalid
or unenforceable, the application of the remainder of such provision to such party or circumstance,
the application of such provision to other parties or circumstances, and the application of the
remainder of this Agreement shall not be affected thereby.

     11.8 Notices. All notices and other communications required or permitted under this
Agreement must be in writing and will be deemed to have been duly given (a) when delivered in
person, (b) when dispatched by electronic facsimile transfer (if confirmed in writing by mail
simultaneously dispatched), (c) one business day after having been dispatched by a nationally
recognized overnight courier service or (d) three business days after being sent by registered or
certified mail, return receipt requested, postage prepaid, to the appropriate party at the address
or facsimile number specified below:

If to the Seller Group:

Michael P. Fischer

11500 Blankenbaker Access Dr.

Suite 103

Louisville, KY 40299

Facsimile No.: 502-479-3657

49

 

M. Scott Diamond

11500 Blankenbaker Access Dr.

Suite 103

Louisville, KY 40299

Facsimile No.: 502-479-3657

The Michael P. Fischer

Irrevocable Delaware Trust

1 1500 Blankenbaker Access Dr.

Suite 103

Louisville, KY 40299

Facsimile No.: 502-479-3657

The M. Scott Diamond

Irrevocable Delaware Trust

11500 Blankenbaker Access Dr.

Suite 103

Louisville, KY 40299

Facsimile No.: 502-479-3657

with a copy to:

Kruger, Schwartz & Morreau

Two Paragon Centre, Suite 220

6040 Dutchmans Lane

Louisville, Kentucky 40205

Attn: Rand E. Kruger, Esq.

Facsimile No.: (502) 485-9220

If to the Purchaser:

Brookside Technology Holdings Corp.

7703 N. Lamar Boulevard

Suite 500

Austin, Texas 78752

Attn: Michael Nole, Chief Executive Officer

Facsimile: (813) 854-1045

with a copy to:

Shumaker, Loop & Kendrick, LLP

Suite 2800

101 East Kennedy Boulevard

Tampa, Florida 33602

Attention: Julio C. Esquivel, Esq.

Facsimile No.: (813) 229-1660

50

 

Any party may change its address or facsimile number for the purposes of this Section 11.8
by giving notice as provided in this Agreement.

     11.9 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Kentucky without regard to principles of conflicts of law.

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

     11.11 Attorneys’ Fees. In the event of any action or proceeding arising out of or
relating to this Agreement or the breach, termination, validity, interpretation, or enforcement of
this Agreement, the prevailing party shall be entitled to recover all costs and reasonable
attorneys’ fees incurred, including, without limitation, costs and attorneys’ fees incurred in any
investigations, trials, bankruptcy or insolvency proceedings, and appeals.

[the remainder of this page has been intentionally left blank]

51

 

     IN WITNESS WHEREOF, the parties have executed or have caused this Agreement to be executed as of
the day and year first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	“COMPANY”	 	“PURCHASER	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	US VOICE AND DATA, LLC	 	BROOKSIDE TECHNOLOGY HOLDINGS CORP.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	 	 	By:	 	/s/ MICHAEL NOLE	 	 
	 

	 	Name:	 	 	 	 	 	Name:	 	MICHAEL NOLE	 	 
	 

	 	Title:	 	 	 	 	 	Title:	 	CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	“SELLER GROUP”	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	MICHAEL P. FISCHER	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	M. SCOTT DIAMOND	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	THE MICHAEL P. FISCHER	 	 
	 	 	 	 	 	 	IRREVOCABLE DELAWARE TRUST	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	THE M. SCOTT DIAMOND	 	 
	 	 	 	 	 	 	IRREVOCABLE DELAWARE TRUST	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 	 	 

52

 

     IN WITNESS WHEREOF, the parties have executed or have caused this Agreement to be executed as
of the day and year first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	“COMPANY”	 	“PURCHASER	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	US VOICE AND DATA, LLC	 	BROOKSIDE TECHNOLOGY HOLDINGS CORP.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ MICHAEL FISCHER	 	By:	 	 	 	 	 	 
	 

	 	Name:	 	MICHAEL FISCHER	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	Manager
	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	“SELLER GROUP”	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	/s/ MICHAEL P. FISCHER	 	 
	 	 	 	 	 	 	MICHAEL P. FISCHER	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	/s/ M. SCOTT DIAMOND	 	 
	 	 	 	 	 	 	M. SCOTT DIAMOND	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	THE MICHAEL P. FISCHER	 	 
	 	 	 	 	 	 	IRREVOCABLE DELAWARE TRUST	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ JAMES W. TRAVER	 	 
	 

	 	 	 	 	 	 	 	Name:
	 	JAMES W. TRAVER	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	Special Purpose Officer,
 NAT
City Trust Co. of Delaware	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	THE M. SCOTT DIAMOND	 	 
	 	 	 	 	 	 	IRREVOCABLE DELAWARE TRUST	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ JAMES W. TRAVER	 	 
	 

	 	 	 	 	 	 	 	Name:
	 	JAMES W. TRAVER	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	Special Purpose Officer,
 NAT
City Trust Co. of Delaware	 	 

52

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