Document:

EX-10.146

Exhibit 10.146

ASSET PURCHASE AGREEMENT

Asset Purchase Agreement entered into as of May 17, 2007, by and among Empagio Acquisition
LLC, a Delaware limited liability company (the “Buyer”), Empagio, Inc. a Delaware limited liability
company (the “Seller”) and HALO Technology Holdings, Inc., a Nevada corporation (the “Parent”).
The Buyer, the Parent and the Seller are referred to collectively herein as the “Parties.”

The Parent owns one hundred percent (100%) of the issued and outstanding capital stock of the
Seller. This Agreement contemplates a transaction in which the Buyer will purchase substantially
all of the assets (and assume certain of the liabilities) of the Seller in return for cash and
other consideration as set forth herein.

Now, therefore, in consideration of the premises and the actual promises herein made, and in
consideration of the representations, warranties, and covenants herein contained, the Parties agree
as follows.

Section 1. Definitions.

"Accountant” shall have the meaning set forth in §2(g) below.

"Acquired Assets” means all right, title, and interest in and to all of the assets of
the Seller, including all of its (a) tangible personal property (such as supplies,
equipment, furniture, automobiles, (b) agreements, contracts, indentures, mortgages, instruments,
Security Interests, guaranties, other similar arrangements, and rights thereunder, (c) franchises,
approvals, permits, licenses, orders, registrations, certificates, variances, exemptions, and
similar rights obtained from governments and governmental agencies (the “Permits”), (d)
Intellectual Property, goodwill associated therewith, licenses and sublicenses granted and obtained
with respect thereto, and rights thereunder, remedies against infringements thereof, and rights to
protection of interests therein under the laws of all jurisdictions, (e) any interest in any real
property, fixtures, improvements, and fittings thereon, leaseholds and subleaseholds therein, and
easements, rights-of-way, and other appurtenants thereto (such as appurtenant rights in and to
public streets), (f) leases, subleases, and rights thereunder, (g) prepayments, prepaid expenses,
and deferred items, claims, deposits, refunds, causes of action, chooses in action, rights of
recovery, rights of set off, and rights of recoupment, (h) accounts, notes, and other receivables,
and (i) books, records, ledgers, files, documents, correspondence, lists, plats, architectural
plans, drawings, and specifications, creative materials, advertising and promotional materials,
studies, reports, and other printed or written materials, AND (j) Cash and all other material
assets necessary to operate the business of the Seller as conducted by it prior to the Closing
Date; provided, however, that the Acquired Assets shall not include (i) the items
as set forth on Exhibit A attached hereto and all rights thereunder (the “Excluded
Assets”), (ii) the corporate charter, qualifications to conduct business as a foreign
corporation, arrangements with registered agents relating to foreign qualifications, taxpayer, and
other identification numbers, seals, minute books, stock transfer books, blank stock certificates,
and other documents relating to the organization, maintenance, and existence of the Seller as a
corporation, or (iii) any of the rights of the Seller under this Agreement.

"Adjusted Purchase Price” shall have the meaning set forth in §2(g)(ii) below.

"Adverse Consequences” means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments, orders, decrees,
rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, Liabilities,
obligations, Taxes, liens, losses, expenses, and fees, including court costs and reasonable
attorneys’ fees and expenses. For the avoidance of doubt, Adverse Consequences shall not include
any liability of Seth Bernstein or Chatham Capital Partners LLC, Chatham Investment Fund III, LLC,
for their own actions or failure to act, as a result of being named as defendants in Crestview
Capital Partners LLC v. Halo Technology Holdings, Inc., Empagio, Inc. Chatham Capital Partners LLC,
Chatham Investment Fund III, LLC and Seth Bernstein, Circuit Court of Cook County, Illinois, County
Department, Chancery Division, Case No. 07CH12078.

"Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated
under the Securities Exchange Act.

"Affiliated Group” means any affiliated group within the meaning of Code Sec. 1504.

“Agreement” this Asset Purchase Agreement.

"Assumed Liabilities” means (a) all trade account payables and accrued expenses of the
Seller which are listed on Exhibit B hereto (which Exhibit shall exclude liabilities of the
Seller related to any Litigation ), (b) all trade account payables and accrued expenses of the
Seller which have arisen in the ordinary course of business since the date of the Most Recent
Fiscal Month End, (c) all obligations of the Seller under the agreements, contracts, leases,
licenses, and other arrangements referred to in the definition of Acquired Assets, and (d) all
other Liabilities and obligations of the Seller set forth in an Appendix to the Disclosure
Schedule; provided, however, that the Assumed Liabilities shall not include (i) any
Liability of the Seller for unpaid Taxes or for income, transfer, sales, use, and other Taxes
arising in connection with the consummation of the transactions contemplated hereby, (ii) any
obligation of the Seller to indemnify any Person (including the Parent) by reason of the fact that
such Person was a director, officer, employee, or agent of the Seller or was serving at the request
of any such entity as a partner, trustee, director, officer, employee, or agent of another entity
(whether such indemnification is for judgments, damages, penalties, fines, costs, amounts paid in
settlement, losses, expenses, or otherwise and whether such indemnification is pursuant to any
statute, charter document, bylaw, agreement, or otherwise), (iii) all Liabilities and obligations
of the Seller under its Employee Benefit Plans, (iv) all Liabilities and obligations relating to
the Excluded Assets (including accounts payable and accrued expenses), (v) all liabilities and
obligations relating to funded indebtedness of the Seller, (vi) any Liability of the Seller for
costs and expenses incurred in connection with this Agreement and the transactions contemplated
hereby, or (vii) any obligation which should have been performed by Seller prior to the Closing
Date or (viii) any Liability or obligation of the Seller under this Agreement.

"Buyer” has the meaning set forth in the preface above.

"Cash” means cash and cash equivalents (including marketable securities and short term
investments) calculated in accordance with GAAP applied on a basis consistent with the preparation
of the Financial Statements.

“Cash Consideration” the meaning set forth in §2(c)(i) below.

"Closing” has the meaning set forth in §2(d) below.

"Closing Date” has the meaning set forth in §2(d) below.

"Closing Date Balance Sheet” has the meaning set forth in §2(g)(ii) below.

“Closing Payment” the meaning set forth in §2(c)(iii).

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

"Compensation Program” shall have the meaning set forth in §9(b) below.

“Contingent Payment” shall have the meaning set forth in §2(c)(iv) below.

"Controlled Group of Corporations” has the meaning set forth in Code Sec. 1563.

“Deferred Payment Date” has the meaning set forth in §2(C)(i).

“Deferred Payments” has the meaning set forth in §2(C)(i).

“Deposit” means the $250,000 deposited by the Buyer with the Seller on the date of
execution of this Agreement and any interest accrued thereon.

"Disclosure Schedule” has the meaning set forth in §3 below.

“Domain Names” means Internet electronic addresses, uniform resource locators and

alphanumeric designations associated therewith registered with or assigned by any domain name
registrar, domain name registry or other domain name registration authority as part of an
electronic address on the Internet and all applications for any of the foregoing.

"Draft Closing Date Balance Sheet” has the meaning set forth in §2(g) below.

"Employee Benefit Plan” means any (a) nonqualified deferred compensation or retirement
plan or arrangement which is an Employee Pension Benefit Plan, (b) qualified defined contribution
retirement plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified defined
benefit retirement plan or arrangement which is an Employee Pension Benefit Plan (including any
Multiemployer Plan), (d) Employee Welfare Benefit Plan, or (e) any bonus, incentive, severance,
stock option, stock purchase, short-term disability plan or other material fringe benefit plan,
program or arrangement, including policies concerning holidays, vacations and salary continuation
during short absences for illness or otherwise.

"Employee Pension Benefit Plan” has the meaning set forth in ERISA Sec. 3(2).

"Employee Welfare Benefit Plan” has the meaning set forth in ERISA Sec. 3(1).

"Environmental Health. and Safety Laws” means the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, the Resource Conservation and Recovery Act of
1976, the Clean Air Act, the Federal Water Pollution Control Act, the Safe Drinking Water Act, the
Toxic Substance Control Act, the Emergency Planning and Community Right-to-Know Act of 1986, the
Hazardous Material Transportation Agreement, and the Occupational Safety and Health Act of 1970,
each as amended, together with all other laws (including rules, regulations, codes, plans,
injunctions, judgments, orders, decrees, rulings, and charges thereunder) of federal, state, local,
and foreign governments (and all agencies thereof) concerning pollution or protection of the
environment, public health and safety, or employee health and safety, including laws relating to
emissions, discharges, releases, or threatened releases of pollutants, contaminants, or chemical,
industrial, hazardous, or toxic materials (including petroleum products and asbestos) or wastes
into ambient air, surface water, ground water, or lands or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport, or handing of
pollutants, contaminants, or chemical, industrial, hazardous, or toxic materials or wastes
(“Hazardous Substances”).

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

"Estimated Net Working Capital” shall mean the Seller’s good faith estimate of its Net
Working Capital as of the Closing Date as set forth on a certificate signed by an officer of the
Seller delivered to the Buyer.

"Fiduciary” has the meaning set forth in ERISA Sec. 3(21).

"Financial Statements” has the meaning set forth in §3(g)

"Excluded Assets” has the meaning set forth in the definition of Acquired Assets.

"GAAP” means United States generally accepted accounting principles as in effect from
time to time.

"Guarantor” has the meaning set forth in the definition of “Guaranty” hereunder.

“Guaranty” means the guaranty of the Buyer’s obligations dated the hereof executed by
Seth Bernstein (the “Guarantor”) in favor of the Seller, the form of which is attached as
Exhibit D-1 hereto.

"Hazardous Substances” has the meaning set forth in the definition of Environmental,
Health, and Safety Laws.

“Holdback” has the meaning set forth in §2(c)(i).

"Indemnified Party” has the meaning set forth in §8(d) below.

"Indemnifying Party” has the meaning set forth in §8(d)(i) below.

“Information Systems” means all computer hardware, databases and data storage systems,
computer, data, database and communications networks (other than the Internet), architecture
interfaces and firewalls (whether for data, voice, video or other media access, transmission or
reception) and other apparatus used to create, store, transmit, exchange or receive information in
any form.

“Initial Purchase Price” has the meaning set forth in §2(c)(i).

"Intellectual Property” means (a) all trade secrets and confidential business
information (including customer and supplier lists, ideas, research and development, know-how,
formulas, compositions, and techniques, technical data, designs, drawings, specifications, pricing
and cost information, and business and marketing plans and proposals), (b) all trademarks, service
marks, trade dress, logos, trade names, and corporate names, together with all translations,
adaptations, derivations, and combinations thereof and including all goodwill associated therewith,
and all applications, registrations, and renewals in connection therewith, (c) all inventions
(whether patentable or unpatentable and whether or not reduced to practice), all improvements
thereto, and all patents, patent applications, and patent disclosures, together with all
reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations
thereof, (d) all copyrightable works, all copyrights, and all applications, registrations, and
renewals in connection therewith, (e) all mask works and all applications, registrations, and
renewals in connection therewith, (f) all Software (including data and related documentation), (g)
all other proprietary rights, (h) all copies and tangible embodiments thereof (in whatever form or
medium), and (h) all Domain Names.

“Interest Period” means a period commencing on the date specified in §2(c) and
ending on the date specified in §2(c) except that (i) each such Interest Period that commences on
the last business day of a calendar month (or on any day for which there is no numerically
corresponding day in the appropriate subsequent calendar month) shall end on the last business day
of the appropriate subsequent calendar month; and (ii) if an Interest Period would end on a day
that is not a London business day, such Interest Period shall be extended to the next business day
unless such London business day would fall in the next calendar month, in which event such Interest
Period shall end on the immediately preceding business day.

“Liability” means any liability (whether known or unknown, whether asserted or
unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or
unliquidated, and whether due or to become due), including any liability for Taxes.

“LIBOR” means the LIBOR Interest Rate that is the offered rate for deposits of U.S.
Dollars in an amount approximately equal to the amount of the unpaid Deferred Payments for an
Interest Period specified in §2(c) which the British Bankers’ Association fixes as its LIBOR rate
as of 11:00 a.m. London time on the day which is two London banking days prior to each date the
LIBOR is set pursuant to §2(c). If such day is not a London banking day, LIBOR shall be
determined on the next preceding day which is a London banking day. If for any reason the parties
cannot determine such offered rate by the British Bankers’ Association, the parties shall mutually
agree on a replacement index based on the arithmetic mean of the quotations, if any, of the
interbank offered rate by first class banks in London or New York for deposits in comparable
amounts and maturities.

“Limited Guaranty” means the limited guaranty dated the date hereof of the Buyer’s
obligations hereunder, including payment of the Deferred Payments and the Contingent Payment
executed by the Guarantor in favor of the Seller, the form of which is attached as Exhibit
D-2 hereto.

“Litigation” the meaning set forth in §3(t).

"Most Recent Balance Sheet” means the balance sheet contained within the Most Recent
Financial Statements.

"Most Recent Financial Statements” has the meaning set forth in §3(g) below.

"Most Recent Fiscal Month End” has the meaning set forth in §3(g) below.

"Most Recent Fiscal Year End” has the meaning set forth in §3(g) below.

"Multiemployer Plan” has the meaning set forth in ERISA Sec. 3(37).

"Net Working Capital” means the sum of Seller’s cash and cash equivalents, accounts
receivable (net of allowances for doubtful accounts), prepaid expenses (and not including any
amounts due to Parent or any other Affiliate of the Seller), and other current assets, but not
including any amounts due from Parent or any other Affiliate of the Seller, all of which are
Acquired Assets less the sum of accounts payable, accrued liabilities (not including any
amounts due the Parent or any other Affiliate of the Seller and specifically excluding liabilities
related to deferred revenue), and other current liabilities, all of which are Assumed Liabilities,
all as shown on the Closing Date Balance Sheet. Net Working Capital shall be calculated as set
forth on Exhibit C.

“Non-Competition and Related Assignments” has the meaning set forth in §6(a)(vi)
below.

“Object Code” means computer software that is substantially or entirely in binary
form and that is intended to be directly executable by a computer after suitable processing and
linking but without any intervening steps of compilation or assembly.

“Parent” has the meaning in the preface above.

"Party” has the meaning set forth in the preface above.

"PBGC” means the Pension Benefit Guaranty Corporation.

"Permits” has the meaning set forth in the definition of Acquired Assets.

"Person” means an individual, a partnership, a corporation, an association., a joint
stock company, a limited liability company or partnership, a trust, a joint venture, an
unincorporated organization, or a governmental entity (or any department, agency, or political
subdivision thereof).

"Preliminary Purchase Price” has the meaning set forth §2(c)

"Prohibited Transaction” has the meaning set forth in ERISA Sec. 406 and Code Sec.
4975.

"Reportable Event” has the meaning set forth in ERISA Sec.

4043.

"Securities Act” means the Securities Act of 1933, as amended.

"Securities Exchange Act” means the Securities Exchange Act of 1934, as amended.

"Security Interest” means any lien, encumbrance, mortgage, pledge, charge, or other
security interest.

"Seller” has the meaning set forth in the preface above.

“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. For purposes of this Agreement, Software includes all
software that is in the development, transition or similar phase.

“Source Code” computer software that may be displayed or printed in human readable
form, including all related programmer comments, annotations, flowcharts, diagrams, help text, data
and data structures, instructions, procedural, object oriented or other human readable code, and
that is not intended to be executed directly by a computer without an intervening step of
compilation or assembly.

"Subsidiary” means any corporation with respect to which a specified Person (or a
Subsidiary thereof) owns a majority of the common stock or has the power to vote or direct the
voting of sufficient securities to elect a majority of the directors.

"Tax” means any federal, state, local, or foreign income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental
(including taxes under Code Sec. 59A), customs duties, capital stock, franchise, profits,
withholding, social security (or similar), unemployment, disability, real property, personal
property, sales, use, transfer, registration, value added, alternative or add-on minimum,
estimated, or other tax of any kind whatsoever, including and interest, penalty, or addition
thereto, whether disputed or not.

“Tax Return” means any return, declaration, report, claim for refund, or information
return or statement relating to Taxes, including any Exhibit or attachment thereto, and including
any amendment thereof.

"Third Party Claim” has the meaning set forth in 8(c)(i) below.

“Transferred Employees” has the meaning set forth in §9(b)(i) below.

Section 2. Basic Transaction.

(a) Purchase and Sale of Assets.  At the Closing, and on and subject to the terms and
conditions of this Agreement, the Buyer agrees to purchase from the Seller, and the Seller agrees
to sell, transfer, convey, and deliver to the Buyer, all of the Acquired Assets free and clear of
any Security Interests for the consideration with respect to the Acquired Assets specified below
in this §2.

(b) Assumption of Liabilities. On and subject to the terms and conditions of this
Agreement, the Buyer agrees to assume and become responsible for all of the Assumed Liabilities at
the Closing. The Buyer will not assume or have any responsibility, however, with respect to any
other obligation or Liability of the Seller not included within the definition of Assumed
Liabilities.

(c) Purchase Price.

(i) The aggregate initial purchase price to be paid by the Buyer for the Acquired Assets is
$16,000,000 (the “Initial Purchase Price”), paid as follows. On the date of execution of
this Agreement, Buyer has paid to Seller the Deposit, and at the Closing, Buyer shall pay over to
the Seller $13,750,000 in cash (the “Cash Consideration”) $250,000 of such Cash
Consideration (the “Holdback”) shall be deposited on the Closing Date with Rogin, Nassau, Caplan,
Lassman & Hirtle, LLC (“Rogin”) . On each of September 30, 2008 and June 30, 2009 (each a
“Deferred Payment Date”), Buyer shall pay to Seller (or Seller’s designee) the sum of $1,000,000 in
cash (the “Deferred Payments”) plus simple interest accrued on such Deferred Payments from the
Closing Date at a per annum rate of LIBOR plus 4% per annum (the “Rate”). The Rate shall continue
to accrue on any unpaid principal balance of the Deferred Payments only for so long as any portion
of the Deferred Payment remains unpaid. On the Closing Date through the fifteen month anniversary
thereof (such anniversary date being the “Change Date”), the Rate shall equal the LIBOR for an
Interest Period of 12 months. On the Change Date through June 30, 2009, the Rate shall convert to
LIBOR for an Interest Period of nine (9) months. There shall be no prepayment penalty if Buyer
prepays the Deferred Payments. Seller’s right to the Deferred Payments and any Contingent Payment
shall be an unsecured obligation of the Buyer and subordinated to the senior lender and Chatham
Capital and/or its successors and/or assigns and shall at all times rank junior and subordinate to
any present or future secured indebtedness of the Buyer and any extension, amendment, or additional
or replacement financing thereof. If the Buyer (or the business purchased hereunder) is sold (by
stock sale, merger (if Buyer is not the surviving entity), sale of all or substantially all of its
assets or otherwise) any unpaid Deferred Payments shall be due and payable upon the closing of such
sale.

(ii) Not later than five (5) business days prior to the Closing Date, the Seller shall deliver
to the Buyer (i) a pro forma consolidated estimate of the Acquired Assets and Assumed Liabilities
as of the Closing Date and an unaudited consolidated statement of the Acquired Assets and Assumed
Liabilities as of the close of business on the most recent month, prepared in conformity with GAAP
and (ii) and the Estimated Net Working Capital. If the Estimated Net Working Capital is less than
$517,550 (such shortfall being a “Working Capital Underage”), the Buyer shall subtract the
amount of the Working Capital Underage from the Initial Purchase Price. If the Estimated Net
Working Capital exceeds $517,000 (the “Working Capital Excess”), then the Buyer shall add
the amount of the Working Capital Excess to the Initial Purchase Price paid at Closing. The
Initial Purchase Price, reduced or increased, as the case may be, by a Working Capital Excess or a
Working Capital Underage, is herein referred to as the “Preliminary Purchase Price”).

(iii) At the Closing, the Buyer will purchase the Purchased Assets from Seller and will assume
the Assumed Liabilities, upon and subject to the terms and conditions of this Agreement and in
reliance upon the representations, warranties covenants and agreements of the Seller contained
herein, and will pay or cause to be paid to the Seller the Cash Consideration (the “Closing
Payment”) by wire transfer of immediately available funds at the Closing to such account(s)
designated in writing by the Seller at least three (3) business days prior to the Closing Date.

(iv) If the Buyer is sold (by stock sale, merger, sale of all or substantially all of its
assets or otherwise) prior to the fifth (5th) anniversary of the Closing Date, Buyer
and/or its stockholders shall cause to be paid to Seller or Seller’s successors or assigns from the
proceeds of the sale and not later than that date of the closing of the sale an amount equal to (x)
ten percent (10%) of the proceeds of such sale, reduced by (y) $1.0 million (the “Contingent
Payment”). Proceeds of the sale means, the sum of the aggregate (A) amount of cash
consideration paid for Buyer (or its assets), (B) implied value of any equity interest retained in
the acquiring company by Buyer or its members, (C) value of any assets retained by the Buyer after
the sale, (D) amount of any seller financing provided by the Buyer or its members in connection
with the transaction and (E) amount of any other quantifiable consideration included as part of a
transaction to be received by the Buyer or its members (in their sole capacity as such) in
connection with the transaction (i.e., deferred payments) minus (F) the costs or other expenses
incurred in connection with such transaction, including, without limitation, any Tax liability
incurred by the Buyer. The Contingent Payment shall rank in priority of payment on a pari passu
basis with that of the holders of the Buyer’s common equity The portions of the net proceeds of
the sale described in (C), (D), and/or (E) may be paid when such amounts are received. For purposes
of this §2(c)(iv), the term “net proceeds” shall mean the proceeds of such sale reduced by the
costs of such sale, payment of all debt which is prior to right to the Buyer’s equity and payment
of all equity senior in right to the Buyer’s common equity.

(d) The Closing. The closing of the transactions contemplated by this Agreement (the
"Closing”) shall take place at the offices of Rogin, Nassau, Caplan, Lassman & Hirtle, LLC,
CityPlace 1, 22nd Floor, 185 Asylum Street, Hartford, Connecticut 06103, commencing at
9:00 a.m. local time on the second business day following the satisfaction or waiver of all
conditions to the obligations of the Parties to consummate the transactions contemplated hereby
(other than conditions with respect to actions the respective Parties will take at the Closing
itself) or such other date as the Parties may mutually determine (the “Closing Date”);
provided, however, that the Closing Date shall be no later than May 18, 2007; provided, however,
that the Buyer may extend such Closing Date to May 25, 2007, at its sole discretion.
Notwithstanding the foregoing, the Buyer shall pay to the Seller the sum of $10,000 for each
business day commencing on May 21, 2007, through May 25, 2007 (to a maximum of $50,000, such total
being the “Extension Payments”), so long as the parties hereto have not consummated the Closing.
Notwithstanding the foregoing, if the Buyer may terminate this Agreement pursuant to §7(a)(ii)
hereunder at any time during the period from May 21, 2007, through May 25, 2007, the Buyer shall
not be liable for any Extension Payments. The Extension Payments shall be made to Seller on the
Closing Date with the Cash Consideration.

(e) Deliveries at the Closing. At the closing, (i) the Seller will deliver to the
Buyer the various certificates, instruments, and documents referred to in §6(a) below; (ii) the
Buyer will deliver to the Seller the various certificates, instruments, and documents referred to
in §6(b) below; (iii) the Seller will execute, acknowledge (if appropriate), and deliver to the
Buyer (A) assignments (including real property and Intellectual Property transfer documents) in the
forms attached hereto as Exhibits E-1 through E-     and (B) such other instruments of sale,
transfer, conveyance, and assignment as the Buyer and its counsel may request; (iv) the Buyer will
execute, acknowledge (if appropriate), and deliver to the Seller (A) an assumption in the form
attached hereto as Exhibit F  and (B) such other instruments of assumption as the Seller
and its counsel may reasonably request

(f) Allocation. The Parties agree to allocate the Preliminary Purchase Price (and all
other capitalizable costs) among the Acquired Assets for all purposes (including financial
accounting and tax purposes) in accordance with the allocation Exhibit attached hereto as
Exhibit G, as amended to reflect any adjustment as provided herein.

(g) Post-Closing Adjustment for Net Working Capital.

(i) Within 60 days after the Closing Date, the Buyer will prepare and deliver to the
Seller (x) a draft consolidated balance sheet (the “Draft Closing Date Balance
Sheet”) for the Acquired Assets and the Assumed Liabilities as of the close of business
on the Closing Date, and (y) a computation and determination of the Net Working Capital, and
(z) a computation and determination of the Adjusted Purchase Price in accordance with the
provisions of this §2(g). The Buyer will prepare the Draft Closing Date Balance Sheet in
accordance with GAAP (other than exceptions to GAAP noted in the definition of Net Working
Capital).

(ii) If the Seller has any objections to the Draft Closing Date Balance Sheet, it will
deliver a detailed statement describing its objections to the Buyer within 30 days after
receiving the Draft Closing Date Balance Sheet. The Buyer and the Seller will use reasonable
efforts to resolve any such objections themselves. If the Parties do not obtain a final
resolution within 30 days after the Buyer has received the statement of objections, however,
the Buyer and the Seller will select an accounting firm mutually acceptable to them to
resolve any remaining objections. If the Buyer and the Seller are unable to agree on the
choice of an accounting firm, they will select a nationally-recognized accounting firm by
lot (the “Accountant”) which shall be jointly instructed by the Buyer and the Seller
to determine the Net Working Capital and the Adjusted Purchase Price. The Accountant shall
deliver to each of the Buyer and the Seller its determinations within 30 days after
receiving the joint instructions from the Buyer and the Seller, and the determinations of
the Accountant will be forth in writing and will be conclusive and binding upon the Parties.
The expenses of the Accountant shall be born equally by the Buyer and the Seller. The
Buyer will give the Seller the Draft Closing Date Balance Sheet, revised to reflect the
Accountant’s determinations. The “Closing Date Balance Sheet” shall mean the Draft
Closing Date Balance Sheet, together with any revisions thereto pursuant to this § 2(g)
(ii), including the determination of the Accountant. The “Adjusted Purchase Price”
shall mean the Preliminary Purchase Price, together with any revisions thereto pursuant to
this §2(g) (ii), including the determination of the Accountant.

(iii) The Buyer will make the work papers and back-up materials used in preparing the
Draft Closing Date Balance Sheet available to the Seller and its accountants and other
representatives at reasonable times and upon reasonable notice at any time during (A) the
preparation by the Buyer of the Draft Closing Date Balance Sheet, (B) the review by the
Seller of the Draft Closing Balance Sheet, and (C) the resolution by the Parties of any
objection thereto.

(iv) The Adjusted Purchase Price will be determined by adjusting the Preliminary
Purchase Price as follows:

(A) The Preliminary Purchase Price will be increased by the amount, if any, by
which the Net Working Capital exceeds the Estimated Net Working Capital; and

(B) The Preliminary Purchase Price will be decreased by the amount, if any, by
which the Net Working Capital is less than the Estimated Net Working Capital.

(v) If the Adjusted Purchase Price exceeds the Preliminary Purchase Price, the Buyer
shall pay to the Seller an amount in cash equal to such excess by delivery of cash payable
by wire transfer or delivery of other immediately available funds. If the Adjusted Purchase
Price is less than the Preliminary Purchase Price, (i) Rogin shall distribute to the Buyer,
from the Holdback, an amount in cash equal to such deficiency and (ii) if the deficiency
exceeds the Holdback, the Seller shall pay to the Buyer by delivery of cash payable by wire
transfer or delivery of other immediately available funds the amount by which the deficiency
exceeds the Holdback. After any required distributions of the Holdback are made to the
Buyer pursuant to the preceding sentence, the balance of the Holdback (if any) shall be
disbursed to the Seller. In connection with the distribution of the Holdback, the parties
hereunder shall provide such joint instructions as Rogin shall require. Such payment shall
be made no later than five business days after (A) the 30th day after the Draft Closing Date
Balance Sheet has been given by the Buyer to the Seller, if the Seller has not objected to
the Draft Closing Date Balance Sheet within such 30 day period; (B) the Buyer and the Seller
have resolved any objection raised by the Seller; or (C) the date the determination of the
Accountant described in clause (ii) above is given to the Buyer and the Seller.

Section 3. Representations and Warranties of the Seller and the Parent.

The Seller and the Parent jointly and severally represent and warrant that the statements
contained in this §3 are correct and complete as of the date of this Agreement and except for
representations and warranties which are made as to a date certain will 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), except as set forth in the disclosure schedule accompanying this Agreement
(the “Disclosure Schedule”). The Disclosure Schedule will be arranged in paragraphs corresponding
to the lettered and number paragraphs contained in this §3.

(a) Organization; Capitalization. Each of the Parent and the Seller is a corporation
duly organized, validly existing, and in good standing under the laws of the jurisdiction of its
incorporation. The Parent is the sole shareholder of the Seller. There are no outstanding or
authorized options, warrants, purchase rights, subscription rights, exchange rights, or other
contracts or commitments that require the Seller to issue, sell, or otherwise cause to become
outstanding any of its capital stock.

(b) Authorization of Transaction. Each of the Seller and the Parent has full power
and authority (including full corporate power and authority) to execute and deliver this Agreement
and to perform its obligations hereunder. Without limiting the generality of the foregoing, the
board of directors of the Seller and the Parent has each duly authorized the execution, delivery,
and performance of this Agreement by each of the Seller and the Parent. This Agreement constitutes
the valid and legally binding obligation of the Seller and the Parent, enforceable in accordance
with its terms and conditions.

(c) Noncontravention. Neither the execution and the delivery of this Agreement, nor
the consummation of the transactions contemplated hereby (including the assignments and assumptions
referred to in §2 above), will violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any government, governmental
agency, or court to which the Parent or the Seller is subject or any provision of the charter or
bylaws of any of the Seller or the Parent. Other than as would not reasonably be expected to have
a material adverse effect on the Acquired Assets, the execution and the delivery of this Agreement,
and the consummation of the transactions contemplated hereby will not conflict with, result in a
breach of, constitute a default under, result in the acceleration of, create in any party the right
to accelerate, terminate, modify, or cancel, or require any notice under any material agreement,
contract, lease, license, instrument, or other arrangement to which any of the Seller, or the
Parent is a party or by which it is bound or to which any of its assets is subject (or result in
the imposition of any Security Interest upon any of its assets). Neither the Seller nor the Parent
needs to give any notice to, make any filing with, or obtain any authorization, consent, or
approval of any government or governmental agency in order for the Parties to consummate the
transactions contemplated by this Agreement (including the assignments and assumptions referred to
in §2 above), except as set forth on §3(c) of the Disclosure Schedule.

(d) Brokers’ Fees. Neither the Seller nor the Parent has any Liability or
obligation to pay any fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement for which the Buyer could become liable or obligated.

(e) Title to Assets. The Seller has good and marketable title to, or a valid
leasehold interest in, the properties and assets used by them, located on their premises, or shown
on the Most Recent Balance Sheet or acquired after the date free and clear of all Security
Interests, except for properties and assets disposed of in the ordinary course of business since
the date of such Most Recent Balance Sheet. Without limiting the generality of the foregoing, the
Seller has good and marketable title to all of the Acquired Assets, free and clear of any Security
Interest or restriction on transfer.

(f) Subsidiaries. The Seller has no Subsidiary of any kind.

(g) Financial Statements. Attached hereto as Exhibit H are the following
financial statements (collectively, the “Financial Statements”): (i) consolidated and
consolidating balance sheets and statements of income, changes in stockholders’ equity, and cash
flow as of and for the fiscal year ended June 30, 2006 (the “Most Recent Fiscal Year End”) for the
Seller; and (ii) unaudited consolidated and consolidating balance sheet and statements of income,
changes in stockholders’ equity, and cash flow (the “Most Recent Financial Statements”) as of and
for the period ending April 30, 2007 (the “Most Recent Fiscal Month End”) for the Seller. The
Financial Statements (including the notes thereto) have been prepared in accordance with GAAP
applied on a consistent basis throughout the periods covered thereby, present fairly the financial
condition of the Seller as of such dates and the results of operations of the Seller for such
periods are correct and complete, and are consistent with the books and records of the Seller
(which books and records are correct and complete).

(h) Events Subsequent to Most Recent Fiscal Year End. Since the Most Recent Fiscal
Year End, there has not been any material adverse change in the business, financial condition,
operations, results of operations, or future prospects of any of the Seller. Since the Most Recent
Fiscal Month End, the Seller has conducted its respective businesses only in the ordinary and usual
course, and except as set forth in §3(h) of the Disclosure Schedule, there have not occurred any of
the events set forth in §5(d) hereof.

(i) Undisclosed Liabilities. The Seller has no Liability (and there is no basis for
any Liability), except for (i) Liabilities set forth on the Most Recent Financial Statements; and
(ii) Liabilities which have arisen after the Most Recent Fiscal Month End in the ordinary course of
business .

(j) Legal Compliance. The Seller and its respective predecessors and Affiliates have
complied with all applicable laws (including rules, regulations, codes, plans, injunctions,
judgments, orders, decrees, rulings, and charges thereunder) of federal, state, local, and foreign
governments (and all agencies thereof), except where any non-compliance would reasonably be
expected to not have a material adverse effect on the business or operations of the Acquired
Assets, and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand,
or notice has been filed or commenced against any of them alleging any failure so to comply.

(k) Tax Matters.

(i) The Seller has filed all Tax Returns that it was required to file. To the Seller’s
knowledge, all such Tax Returns were correct and complete, all Taxes owed by the Seller have
been paid and there is no dispute or claim concerning any Tax Liability of the Seller either
(A) claimed or raised by any authority in writing or (B) as to which the Seller has
knowledge. The Seller is not currently the beneficiary of any extension of time within
which to file any Tax Return. To Seller’s knowledge, no claim has ever been made by an
authority in a jurisdiction where any of the Seller does not file Tax Returns that it is or
may be subject to taxation by that jurisdiction. There are no Security Interests on any of
the assets of any of the Seller that arose in connection with any failure (or alleged
failure) to pay any Tax.

(ii) The Seller has withheld and paid all Taxes required to have been withheld and paid
in connection with amounts paid or owing to any employee, independent contractor, creditor,
stockholder, or other third party.

(iii) The Seller has not waived any statute of limitations in respect of Taxes or
agreed to any extension of time with respect to a Tax assessment or deficiency.

(iv) The Seller has not made any payments, is not obligated to make any payments, or is
a party to any agreement that under certain circumstances could obligate it to make any
payments that will not be deductible under Code Sec. 280G. The Seller has not been a United
States real property holding corporation within the meaning of Code Sec. 897(c)(2) during
the applicable period specified in Code Sec. 997(c) (1) (A) (ii). The Seller is not a party
to any Tax allocation or sharing agreement. The Seller (A) is not a member of an
Affiliated Group filing a consolidated federal income Tax Return (other than a group the
common parent of which was the Parent) and (B) has no Liability for the Taxes of any Person
under Treas. Reg. §1.1502-6 (or any similar provision of state, local, or foreign law), as a
transferee or successor, by contract, or otherwise.

(1) Real Property.

(i) The Seller owns no real property.

(ii) §3(l)(ii) of the Disclosure Schedule lists and describes briefly all real property
leased or subleased to or by the Seller. The Seller has made available to the Buyer correct
and complete copies of the leases and subleases listed in §3(l) (ii) of the Disclosure
Schedule (as amended to date). With respect to each lease and sublease listed in §3(l) (ii)
of the Disclosure Schedule:

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

(B) to Seller’s knowledge no party to the lease or sublease is in breach or default,
and no event has occurred which, with notice or lapse of time, would constitute a breach or
default or permit termination, modification, or acceleration thereunder;

(C) to Seller’s knowledge no party to the lease or sublease has repudiated any
provision thereof;

(D) the Seller has not assigned, transferred, conveyed, mortgaged, deeded in trust, or
encumbered any interest in the leasehold or subleasehold other than encumbrances that will
be released at or before the Closing;

(E) to the Seller’s knowledge, all facilities leased or subleased thereunder have
received all approvals of governmental authorities (including licenses and permits) required
in connection with the operation thereof and have been operated and maintained in accordance
with applicable laws. rules, and regulations; and

(F) all facilities leased or subleased thereunder are supplied with utilities and other
services necessary for the operation of the Acquired Assets.

(m) Intellectual Property.

(i) The Seller owns or has the right to use pursuant to license, sublicense, agreement,
or permission all Intellectual Property used in the operation of its businesses as presently
conducted. Each item of Intellectual Property owned or used by the Seller on the Closing
Date will be owned or available for use by the Buyer on substantially similar terms and
conditions immediately subsequent to the Closing hereunder. The Seller has acted with
commercial reasonableness in maintaining and protecting its Intellectual Property.

(ii) The Seller has not interfered with, infringed upon, misappropriated, or otherwise
come into conflict with any Intellectual Property rights of third parties, and the Seller
has never received any charge, complaint, claim, demand, or notice alleging any such
interference, infringement, misappropriation, or violation (including any claim that the
Seller must license or refrain from using any Intellectual Property rights of any third
party). To the Seller’s knowledge, no third party has interfered with, infringed upon,
misappropriated, or otherwise come into conflict with any Intellectual Property rights of
the Seller.

(iii) §3(m)(iii) of the Disclosure Schedule identifies each patent or registration
which has been issued to any of the Seller with respect to any of its Intellectual Property,
identifies each pending patent application or application for registration which the Seller
has made with respect to any of its Intellectual Property, and identifies each license,
agreement, or other permission which the Seller has granted to any third party with respect
to any of its Intellectual Property (together with any exceptions, other than rights
granted under license agreements with customers). The Seller has delivered to the Buyer
correct and complete copies of all such patents, registrations, applications, licenses,
agreements, and permissions (as amended to date) and has made available to the Buyer correct
and complete copies of all other written documentation evidencing ownership and prosecution
(if applicable) of each such item. §3(m)(iii) of the Disclosure Schedule also identifies
each trade name or unregistered trademark used by any of the Seller in connection with any
of its businesses. With respect to each item of Intellectual Property required to be
identified in §3(m)(iii) of the Disclosure Schedule:

(A) the Seller possesses all right, title, and interest in and to the item,
free and clear of any Security Interest, license, or other restriction;

(B) the item is not subject to any outstanding injunction, judgment, order,
decree, ruling, or charge;

(C) to the Seller’s knowledge, no action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand is pending or threatened which
challenges the legality, validity, enforceability, use, or ownership of the item;
and;

(D) the Seller has never agreed to indemnify any Person for or against any
interference, infringement, misappropriation, or other conflict with respect to the
item (other than customary infringement indemnity provisions included in customer
and reseller agreements).

(iv) §3(m)(iv) of the Disclosure Schedule identifies each item of Intellectual Property that
any third party owns and that the Seller uses pursuant to license, sublicense, agreement, or
permission. The Seller has delivered to the Buyer correct and complete copies of all such licenses,
sublicenses, agreements, and permissions (as amended to date). With respect to each such item of
used Intellectual Property required to be identified in 53(m)(iv) of the Disclosure Schedule:

(A) the license, sublicense, agreement, or permission covering the item is legal,
valid, binding, enforceable, and in full force and effect;

(B) assuming the Buyer complies with all assignment or consent obligations, the
license, sublicense, agreement, or permission will continue to be legal, valid, binding,
enforceable, and in full force and effect on identical terms following the consummation of
the transactions contemplated hereby (including the assignments and assumptions referred
to in §2 above);

(C) to the Seller’s knowledge, no party to the license, sublicense, agreement, or
permission is in breach or default, and no event has occurred which with notice or lapse of
time would constitute a breach or default or permit termination, modification, or
acceleration thereunder;

(D) to Seller’s knowledge, no party to the license, sublicense, agreement, or
permission has repudiated any provision thereof;

(E) to Seller’s knowledge, the underlying item of Intellectual Property is not subject
to any outstanding injunction, judgment, order, decree, ruling, or charge;

(F) to the Seller’s knowledge, no action, suit, proceeding, hearing, investigation,
charge, complaint, claim, or demand is pending or threatened which challenges the legality,
validity, or enforceability of the underlying item of Intellectual Property; and

(G) the Seller has not granted any sublicense or similar right with respect to the
license, sublicense, agreement, or permission (other than rights granted to customers and
resellers of the Seller).

	 	(v)	 	The Seller will not interfere with, infringe upon, misappropriate, or otherwise

come into conflict with, any Intellectual Property rights of third parties as a result of
the continued operation of its businesses as presently conducted.

(n) Tangible and Intangible Assets. The Seller owns or leases all machinery,
equipment and other tangible assets necessary for the conduct of its businesses as presently
conducted. The Seller owns or licenses all intangible assets necessary for the conduct of its
business are presently conducted. Each such tangible asset is free from defects (patent and
latent), has been maintained in accordance with normal industry practice, is in good operating
condition and repair (subject to normal wear and tear), and is suitable for the purposes for which
it presently is used.

(o) Reserved.

(p) Contracts. §3(p) of the Disclosure Schedule lists the following contracts and
other agreements to which a the Seller is a party:

(i) any agreement (or group of related agreements) for the lease of personal property
to or from any Person providing for lease payments in excess of $25,000 per annum;

(ii) any agreement (or group of related agreements) for the purchase or sale of
supplies, products, or other personal property, or for the furnishing or receipt of
services, the performance of which will extend over a period of more than one year, that
would result in a material loss to the Seller if terminated, or that involves consideration
in excess of $25,000;

(iii) any agreement concerning a partnership or joint venture;

(iv) any agreement (or group of related agreements) under which it has created,
incurred, assumed, or guaranteed any indebtedness for borrowed money, or any capitalized
lease obligation, or under which it has imposed a Security Interest on any of its assets,
tangible or intangible;

(v) any agreement concerning confidentiality or non-competition;

(vi) any agreement involving the Parent and its Affiliates (other than the Seller);

(vii) any profit sharing, stock option, stock purchase, stock appreciation, deferred
compensation, severance, or other plan or arrangement for the benefit of its current or
former directors, officers, and employees;

(viii) any collective bargaining agreement;

(ix) any agreement for the employment of any individual on a full-time, part-time,
consulting, or other basis or providing severance benefits;

(x) any agreement under which it has advanced or loaned any amount to any of its
directors, officers, and employees outside the ordinary course of business;

(xi) any other agreement (or group of related agreements) the performance of which
involves consideration in excess of $25,000; or

(xii) any agreement under which the consequences of a default or termination could have
a material adverse effect on the business, financial condition, operations, results of
operations, or future prospects of the Seller.

The Seller has delivered to the Buyer a correct and complete copy of each written agreement listed
in §3(p) of the Disclosure Schedule (as amended to date) and a written summary setting forth the
terms and conditions of each oral agreement referred to in §3(p) of the Disclosure Schedule. With
respect to each such agreement: (A) to Seller’s knowledge the agreement is legal, valid, binding,
enforceable, and in full force and effect; (B) the agreement will continue to be legal, valid,
binding, enforceable, and in full force and effect on identical terms following the consummation of
the transactions contemplated hereby (including the assignments and assumptions referred to in §2
above); (C) to Seller’s knowledge no party is in breach or default, and no event has occurred which
with notice or lapse of time would constitute a or default, or permit termination, modification, or
acceleration, under the agreement; and (D) to Seller’s knowledge no party has repudiated any
provision of such agreement.

(q) Notes and Accounts Receivable. All notes and accounts receivable of the Seller
are reflected properly on its books and records, are valid receivables subject to no setoff or
counterclaims, are current and collectible, and will be collected in accordance with their terms at
their recorded amounts, subject only to the reserve for bad debts set forth on the Most Recent
Balance Sheet as adjusted for the passage of time through the Closing Date in accordance with the
past custom and practice of the Seller.

(r) Powers of Attorney. There are no outstanding powers of attorney executed on
behalf of the Seller.

(s) Insurance. §3(s) of the Disclosure Schedule sets forth an accurate description of
each insurance policy (including policies providing property, casualty, liability, and workers’
compensation coverage and bond and surety arrangements) to which the Seller has been a party, a
named insured, or otherwise the beneficiary of coverage at any time within the past two years. The
Seller has been covered during the past two years by insurance in scope and amount customary and
reasonable for the businesses in which it has engaged during the aforementioned period. §3(5) of
the Disclosure Schedule describes any self-insurance arrangements affecting any of the Seller.

(t) Litigation. §3(t) of the Disclosure Schedule sets forth each instance in which
the Seller (i) is subject to any outstanding injunction, judgment, order, decree, ruling, or charge
or (ii) is a party or is threatened to be made a party to any action, suit, proceeding, hearing, or
investigation of, in, or before any court or quasi-judicial or administrative agency of any
federal, state, local, or foreign jurisdiction or before any arbitrator (collectively,
“Litigation”). The parties hereto accept, agree and acknowledge that the Buyer is not assuming any
liability hereunder with respect to any litigation of the Seller or the Parent, including, without
limitation, the Litigation disclosed on §3(u) of the Disclosure Schedule and no such Litigation or
litigation shall be an “Assumed Liability” hereunder.

(u) Employees.

(i) To Seller’s knowledge, no executive, key employee, or group of employees has any
plans to terminate employment with the Seller.

(ii) Except as set forth on §3(u) of the Disclosure Schedule, (A) the Seller is not a party to
any collective bargaining agreement or similar agreement with respect to its employees; (B) there
is no labor strike, dispute, slowdown, work stoppage, or lockout in effect or threatened against or
otherwise affecting or involving the business of the Seller nor has any such labor controversy
occurred within the past two years; (C) there is no grievance which might have a material adverse
effect and no arbitration proceeding is pending or threatened and no claim therefor has been
asserted nor has any such action occurred within the past three years; (D) there is no unfair labor
practice charge or complaint pending or threatened relating to the business of the Seller; (E) no
representation question has been brought to the attention of the Seller respecting any of the
employees or the Seller within the past three years, nor are there any campaigns being conducted to
solicit cards from any of the employees of the Seller to authorize representation by any labor
organization; (F) no collective bargaining agreement relating to any of the employees of the Seller
is being negotiated; (G) payment in full to all of the employees of any of the Seller of all
undisputed wages (which Buyer hereunder has not assumed), salaries, commissions, bonuses, benefits,
and other compensation due to such employees or otherwise arising under any policy, practice,
agreement, plan, program, statute, or other law has been made; (H) no facility of the Seller has
been closed, there have not been any layoffs of any of their employees or implementations of any
early retirement, separation, or window program within the past three years with respect to the
Seller, other than as contemplated herein, are there any plans or announcements of any such action
or program for the future; (I) the Seller is in compliance with its obligations pursuant to the
Workers Adjustment and Retraining Notification Act of 1986, as amended (“WARN”), and all other
notification and bargaining obligations arising under any collective bargaining agreement or
statute.

(v) Employee Benefits.

(i) §3(v) of the Disclosure Schedule lists each Employee Benefit Plan that the Seller
maintains or to which the Seller contributes.

(A) Each such Employee Benefit Plan (and each related trust, insurance
contract, or fund) complies in form and in operation in all respects with the
applicable requirements of ERISA, the Code, and other applicable laws.

(B) All required reports and descriptions (including Form 5500 Annual Reports,
Summary Annual Reports, PBGC-l’s, and Summary Plan Descriptions) have been filed or
distributed appropriately with respect to each such Employee Benefit Plan. The
requirements of Part 6 of Subtitle B of Title I of ERISA and of Code Sec. 4980B have
been met with respect to each employee Benefit plan which is an Employee Welfare
Benefit Plan

(C) All contributions (including all employer contributions and employee salary
reduction contributions) which are due have been paid to each such Employee Benefit
Plan which is an Employee Pension Benefit Plan and all contributions for any period
ending on or before the Closing Date which are not yet due have been paid to each
such Employee Pension Benefit Plan or accrued in accordance with the past custom and
practice of the Seller. All premiums or other payments for all periods ending on or
before the Closing Date have been paid with respect to each such Employee Benefit
Plan which is an Employee Welfare Benefit Plan.

(B) The Seller has delivered to the Buyer correct and complete copies of the
plan documents and Summary Plan Descriptions for each such Employee Benefit Plan.

(ii) With respect to each Employee Benefit Plan that the Seller and the Controlled Group of
Corporations which includes the Seller maintains or ever has maintained or to which any of then
contributes, ever has contributed, or ever has been required to contribute:

(A) No such Employee Benefit Plan which is an Employee Pension Benefit Plan
(other than any Multiemployer Plan) has been completely or partially terminated or
been the subject of a Reportable Event as to which notices would be required to be
filed with the PBGC. No proceeding by the PBGC to terminate any such Employee
Pension Benefit Plan (other than any Multiemployer Plan) has been instituted or
threatened.

(B) There have been no Prohibited Transactions with respect to any such
Employee Benefit Plan. No Fiduciary has any Liability for breach of fiduciary duty
or any other failure to act or comply in connection with the administration or
investment of the assets of any such Employee Benefit Plan. No action, suit,
proceeding, hearing, or investigation with respect to the administration or the
investment of the assets of any such Employee Benefit Plan (other than routine
claims for benefits) is pending or threatened. The Seller has no knowledge of any
basis for any such action, suit, proceeding, hearing, or investigation.

(C) None of the Seller has incurred, or will incur, any Liability to the PBGC
(other than PBGC premium payments) or otherwise under Title IV of ERISA (including
any withdrawal Liability) or under the Code with respect to any such Employee
Benefit Plan which is an Employee Pension Benefit Plan.

(iii) Except as set forth on §3(x) to the Disclosure Schedule, none of the Seller and
the other members of the Controlled Group of Corporations that includes the Seller
contributes to, ever has contributed to, or ever has been required to contribute to any
Multiemployer Plan or has any Liability (including withdrawal Liability) under any
Multiemployer Plan.

(iv) Except as set forth on §3(v) to the Disclosure Schedule, the Seller does not
maintain or ever has maintained or contributes, ever has contributed, or ever has been
required to contribute to any Employee Welfare Benefit Plan providing medical, health, or
life insurance or other welfare-type benefits for current or future retired or terminated
employees, their spouses, or their dependents (other than in accordance with Code Sec.
4980B).

(w) Guaranties. Except for guarantees which will be extinguished at the Closing, the
Seller is not a guarantor or otherwise is liable for any Liability or obligation (including
indebtedness) of any other Person.

(x) Environment, Health. and Safety.

(i) The Seller and its predecessors and Affiliates have complied with all
Environmental, Health, and Safety Laws, and no action, suit, proceeding, hearing,
investigation, charge, complaint, claim, demand, or notice has been served, filed, or
commenced against any of them alleging any failure so to comply. §3(x) of the Disclosure
Schedule accurately sets forth a list of all the Permits used in the business of the Seller
and all environmental audits or assessments or occupational health studies undertaken by or
on behalf of the Seller or governmental agencies with respect to matters relating to the
Environmental, Health, and Safety Laws. The Seller has complied with all other limitations,
restrictions, conditions, standards, prohibitions, requirements, obligations, schedules, and
timetables which are contained in, all Environmental, Health, and Safety Laws.

(ii) The Seller has not handled or disposed of any substance, arranged for the disposal
of any substance, exposed any employee or other individual to any substance or condition, or
owned or operated any property or facility in any manner that could form the basis for any
present or future action, suit, proceeding, hearing, investigation, charge, complaint,
claim, or demand against the Seller giving rise to any Liability) for damage to any site,
location, or body of water (surface or subsurface), for any illness of or personal injury to
any employee or other individual, or for any reason under any Environmental. Health, and
Safety Law.

(iii) To Seller’s knowledge, all properties and equipment used in the business of the
Seller and are free of Hazardous Substances.

(iv) To Seller’s knowledge, no underground storage tanks, as defined in the Resource
Conservation and Recovery Act of 1970, as amended; or under any applicable state law, are
present on any of the properties used by the Seller, and no such tanks were previously
abandoned or removed.

(y) Certain Business Relationships with the Seller. Except as set forth in §3(y),
none of the Parent and its Affiliates has been involved in any business arrangement or relationship
with the Seller within the past 12 months, and none of the Parent or its Affiliates owns any asset,
tangible or intangible, which is used in the business of the Seller.

(z) Customers. §3(z) of the Disclosure Schedule sets forth (i) the names of the 10
largest customers of the Seller, in terms of revenues over the last 12 months, and (ii) the
revenues by the Seller to each such customer. The Seller has not received any notice nor has any
knowledge that any such customer intends to terminate or materially reduce its business with the
Seller and no such customer has terminated or materially reduced its business with the Seller in
the last twelve months.

(aa) Information Systems. §3(aa) lists all the Information Systems used by the
Seller and operated by any other Person. Except for the Internet and those Information Systems set
forth on §3(aa) of the Disclosure Schedule, all Information Systems used by the Seller in the
conduct of the business are owned, controlled and operated by the Seller and are not wholly or
partly dependent upon any Information System of any other Person (other than the Internet). All
Information Systems used by the Seller in the conduct of the business are sufficient for the
conduct of the business as currently conducted. The Seller uses reasonable means to protect the
security and integrity of all Information Systems used by the Seller in the conduct of the
business.

(ab) Disclosure. The representations and warranties contained in this §3 do not
contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements and information contained in this §3 not misleading.

Section 4. Representations and Warranties of the Buyer. The Buyer represents and
warrants to the Seller that the statements contained in this §4 are correct and complete as of the
date of this Agreement and will 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 §4),
except as set forth in the Disclosure Schedule. The Disclosure Schedule will be arranged in
paragraphs corresponding to the lettered and numbered paragraphs contained in this §4.

(a) Organization of the Buyer. The Buyer is a limited liability company duly
organized, validly existing, and in good standing under the laws of the jurisdiction of its
incorporation.

(b) Authorization of Transaction. The Buyer has full power and authority (including
full company power and authority) to execute and deliver this Agreement and to perform its
obligations hereunder. This Agreement constitutes the valid and legally binding obligation of the
Buyer, enforceable in accordance with its terms and conditions.

(c) Noncontravention. Neither the execution and the delivery of this Agreement, nor
the consummation of the transactions contemplated hereby (including the assignments and assumptions
referred to in §2 above), will (i) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any government, governmental
agency, or court to which the Buyer is subject or any provision of its articles of organization or
operating agreement or (ii) conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any party the right to accelerate, terminate, modify, or
cancel, or require any notice under any agreement, contract, lease, license, instrument, or other
arrangement to which the Buyer is a party or by which it is bound or to which any of its assets is
subject. The Buyer does not need to give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any government or governmental agency in order for the
Parties to consummate the transactions contemplated by this Agreement (including the assignments
and assumptions referred to in §2 above).

(d) Brokers’ Fees. The Buyer has no Liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the transactions contemplated by this
Agreement for which the Seller could become liable or obligated.

Section 5 Pre-Closing Covenants. The Parties agree as follows with respect to
the period between the execution of this Agreement and the Closing.

(a) General. Each of the Parties will use its best efforts to take all action and to
do all things necessary, proper, or advisable in order to consummate and make effective the
transactions contemplated by this Agreement (including satisfaction, but not waiver, of the closing
conditions set forth in §6 below).

(b) Operation of Business. The Seller will not engage in any practice, take any
action, or enter into any transaction outside the ordinary course of business. Without limiting
the generality of the foregoing, the Seller will not:

(i) declare, set aside, or pay any dividend or make any distribution with respect to
its capital stock (whether in cash or in kind) or redeem, purchase, or otherwise acquire any
of its capital stock;

(ii) sell, lease, transfer, or assign any of its assets, tangible or intangible, to any
third party (including any intercompany transfer) other than for a fair consideration in the
ordinary course of business;

(iii) enter into any agreement, contract, lease, or license (or series of related
agreements, contracts, leases, and licenses) either involving more than $25,000 or outside
the ordinary course of business;

(iv) accelerate, terminate, modify, or cancel any agreement, contract, lease, or
license (or series of related agreements, contracts, leases, and licenses) involving more
than $25,000 to which the Seller is a party;

(v) impose any Security Interest upon any of its assets, tangible or intangible;

(vi) make any capital expenditure (or series of related capital expenditures) either
involving more than $25,000 or outside the ordinary course of business; in addition, the
Seller will notify the Buyer prior to making any material capital expenditures that
otherwise would not be prohibited by the terms of this clause (vi);

(vii) make any capital investment in, any loan to, or any acquisition of the securities
or assets of, any other Person (or series of related capital investments, loans, and
acquisitions);

(viii) delay or postpone the payment of accounts payable and other Liabilities outside
the ordinary course of business;

(ix) accelerate the collection of accounts, notes, or other receivables;

(x) cancel, compromise, waive, or release any right or claim (or series of related
rights and claims) either involving more than $25,000 or outside the ordinary course of
business;

(xi) grant any license or sublicense of any rights under or with respect to any
Intellectual Property (other than customer licenses in the ordinary course of business);

(xii) change or authorize a change in the charter or bylaws of the Seller;

(xiii) issue, sell or otherwise dispose of any of its capital stock, or grant any
options, warrants, or other rights to purchase or obtain (including upon conversion,
exchange, or exercise) any of its capital stock;

(xiv) make any loan to, or enter into any other similar transaction with any of its
directors, officers, and employees or other Affiliate;

(xv) enter into any employment contract or collective bargaining agreement, written or
oral, or modify the terms of any existing such contract or agreement;

(xvi) grant any increase in the compensation (including base salary and bonus) of any
of its directors, officers, and employees;

(xvii) make any other change in employment terms for any of its directors, officers,
and employees; and

(xviii) make or pledge to make any charitable or other capital contribution outside the
ordinary course of business.

(c) Preservation of Business. The Seller will use commercially reasonable efforts to
keep its business and properties substantially intact, including its present operations, physical
facilities, working conditions, and relationships with lessors, licensers, suppliers, customers,
and employees.

(d) Full Access. The Seller will permit representatives of the Buyer to have full
access to all premises, properties, personnel, books, records (including Tax records), contracts,
and documents of or pertaining to the Seller. This access includes access for the Buyer to conduct
environmental assessment investigations of the premises and properties. The Seller will fully
cooperate with such environmental assessment investigation.

(e) Notice of Developments. Each Party will give prompt written notice to the other
party of any breach of any of its own representations and warranties in §3 and §4 above. No
disclosure by any Party pursuant to this §5(e), however, shall be deemed to amend or supplement the
Disclosure Schedule or to prevent or cure any misrepresentation, breach of warranty, or breach of
covenant.

(f) Exclusivity. Each of the Seller and the Parent will not (and will not cause or
permit any of its directors, officers, employees, or agents to) (i) solicit, initiate, or encourage
the submission of any proposal or offer from any Person relating to the acquisition of any capital
stock or other voting securities, or any substantial portion of the assets, of the Seller
(including any acquisition structured as a merger, consolidation, or share exchange), or (ii)
participate in any discussions or negotiations regarding, furnish any information with respect to,
assist or participate in, or facilitate in any other manner any effort or attempt by any Person to
do or seek any of the foregoing. Each of the Seller and the Parent will notify the Buyer in
writing immediately if any Person makes any proposal, offer, inquiry, or contact with respect to
any of the foregoing.

(g) Repayment of Indebtedness and Release of Liens. At the Closing, Seller shall use
the Cash Consideration to repay funded indebtedness and to take all action necessary to cause any
Security Interest in respect of the Acquired Assets to be released and terminated as of the Closing
Date, to permit Buyer to grant a perfected first priority security interest in the Acquired Assets
to the Buyer’s lenders (if any) and to otherwise facilitate any loan to be made to the Buyer, the
proceeds of which will be used to fund Buyer’s obligations under this Agreement.

Section 6. Conditions to Obligation to Close.

(a) Condition to Obligation of the Buyer. The obligation of the Buyer to consummate
the transactions to be performed by it in connection with the Closing is subject to satisfaction of
the following conditions:

(i) the representations and warranties set forth in §3 above shall be true and correct
in all material respects at and as of the Closing Date;

(ii) the Seller shall have performed and complied with all of its covenants hereunder
in all material respects through the Closing;

(iii) the Seller shall have procured all of the third party consents specified in §3(c)
above, other than consents which if not obtained would not reasonably be expected to have a
material adverse effect on the Buyer’s use of the Acquired Assets;

(iv) no action, suit, or proceeding shall be pending before any court or quasi-judicial
or administrative agency of any federal, state, local, or foreign jurisdiction wherein an
unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent
consummation of any of the transactions contemplated by this Agreement, (B) cause any of the
transactions contemplated by this Agreement to be rescinded following consummation, or (C)
affect adversely the right of the Buyer to own any of the Acquired Assets or to operate the
former businesses of the Seller, or (D) affect adversely the right of the Seller to own its
assets and to operate its businesses and no such injunction, judgment, order, decree,
ruling, or charge shall be in effect);

(v) Reserved;

(vi) The Seller shall have assigned to Buyer those certain agreements described in
§3(p)(v)(2-3) of the Disclosure Schedule. (the “Non-Competition and Related Assignments.”);

(vii) the Seller shall have delivered to the Buyer no later than the second business
day prior to the Closing Date the officer’s certificate setting forth the Estimated Net
Working Capital;

(viii) the Seller shall have delivered to Buyer, Chatham Capital and Buyer’s senior
lender, an opinion of its counsel, dated as of the Closing Date, in form, substance and
content reasonably satisfactory to the Buyer, Chatham Capital and Buyer’s Senior Lender;

(ix) the Seller shall have delivered to Buyer a payoff letter of Fortress Credit Corp., such
letter to be in form, substance and content reasonably satisfactory to the Buyer, and such letter
shall contain appropriate “release” language with respect to any of the Acquired Assets; and

(x) the Seller shall have provided evidence of the release of any Security Interest on
the Acquired Assets in form and content reasonably satisfactory to the Buyer;

(xi) the Seller shall have provided a certificate from Seller’s and the Parent’s
corporate secretary, in form and content reasonably satisfactory to the Buyer, regarding
Seller’s and the Parent’s certificate of incorporation, bylaws, good standing, the
incumbency of the Seller’s and the Parent’s officers, and all board and/or shareholder
resolutions relating to the subject matter and consummation of this Agreement;

(xii) the Seller shall have provided such bills of sale and assignments, endorsements,
and other documents and instruments of conveyance and transfer, all in form reasonably
satisfactory to the Buyer, as shall be necessary and effective to transfer and assign to,
and vest in, Buyer to all of Seller’s rights, title and interest to the Acquired Assets;

(xiii) all actions to be taken by the Seller in connection with consummation of each of
the transactions contemplated hereby and all certificates, opinions, instruments, and other
documents required to effect the transactions contemplated hereby will be satisfactory in
form and substance to the Buyer;

(xiv) Seller shall have changed its name from Empagio, Inc. and shall have provided to
Buyer such documents, instruments or agreements permitting the Buyer to use the name
“Empagio” and to change its corporate name to “Empagio LLC ” or any variant thereof;

(xvi) the parties hereto shall have entered into an intercreditor agreement(s) or
similar type agreements with each of Chatham Capital and the Buyer’s senior lender; and

(xiii) the Seller shall have delivered to the Buyer a certificate to the effect that
each of the conditions specified above in §6(a)(i) – (xvii) is satisfied in all respects.

The Buyer may waive any condition specified in this §6(a) if it executes a writing so stating
at or prior to the Closing.

(b) Conditions to Obligation of the Seller. The obligation of the Seller to
consummate the transactions to be performed by it in connection with the Closing is subject to
satisfaction of the following conditions:

(i) the representations and warranties set forth in §4 above shall be true and correct
in all material respects at and as of the Closing Date;

(ii) the Buyer shall have performed and complied with all of its covenants hereunder in
all material respects through the Closing;

(iii) no action, suit, or proceeding shall be pending before any court or
quasi-judicial or administrative agency of any federal, state, local, or foreign
jurisdiction wherein an unfavorable injunction, judgment, order, decree, ruling, or charge
would (A) prevent consummation of any of the transactions contemplated by this Agreement or
(B) cause any of the transactions contemplated by this Agreement to be rescinded following
consummation (and no such injunction, judgment, order, decree, ruling, or charge shall be in
effect);

(iv) the Buyer shall have provided the Cash Consideration to the Seller, as described
in §2;

(v) the Buyer shall have delivered to Seller an opinion of its counsel, Rogin, Nassau,
Caplan, Lassman & Hirtle, LLC, dated as of the Closing Date, in form, substance and content
reasonably satisfactory to the Seller;

(v) the Buyer shall have provided a certificate from Buyer’s and the Buyer’s manager or
other company officer, in form and content reasonably satisfactory to the Seller, regarding
Buyer’s articles of organization , operating agreement, good standing, the incumbency of
officers, and all board and/or member resolutions relating to the subject matter and
consummation of this Agreement

(vi) the parties shall have entered into an intercreditor agreement(s) or similar type
agreements with each of Chatham Capital and the Buyer’s senior lender;

(vii) all actions to be taken by the Buyer in connection with consummation of the
transactions contemplated hereby and all certificates, opinions, instruments, and other
documents required to effect the transactions contemplated hereby will be satisfactory in
form and substance to the Seller; and .

(viii) the Buyer shall have delivered to the Seller a certificate to the effect that
each of the conditions specified above in §6(b)(i) – (vii) is satisfied in all respects;

The Seller may waive any condition specified in this §6(b) if it executes a writing so stating
at or prior to the Closing.

Section 7. Termination.

(a) Termination of Agreement. The Parties may terminate this Agreement as provided
below:

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

(ii) the Buyer may terminate this Agreement by giving written notice to the Seller at
any time prior to the Closing (A) in the event the Seller or the Parent has breached any
representation, warranty, or covenant contained in this Agreement in any material respect in
a manner that cannot be cured prior to the Closing (including, without limitation, any
Closing condition set forth in §6(a)) or (B) if the Closing shall not have occurred on or
before May 18, 2007, as the same may be extended as set forth herein (the “Termination
Date”), by reason of the failure of any condition precedent under §6(a) hereof (unless the
failure results primarily from the Buyer itself breaching any representation, warranty, or
covenant in any material respect contained in this Agreement); and

(iii) the Seller may terminate this Agreement by giving written notice to the Buyer at
any time prior to the Closing in the event the Buyer has breached any representation,
warranty, or covenant contained in this Agreement in any material respect (including,
without limitation, any Closing condition set forth in §6(b)), or (B) if the Closing shall
not have occurred on or before the Termination Date, by reason of the failure of any
condition precedent under §6(b) hereof (unless the failure results primarily from the Seller
itself breaching any representation, warranty, or covenant in any material respect contained
in this Agreement).

(b) Effect of Termination.

(i) If the Parties terminate this Agreement under §7(a)(i), all rights and obligations
of the Parties hereunder shall terminate without any Liability of any Party;

(ii) If the Buyer has grounds to terminate the Agreement under §7(a)(ii)(A) or (B), Buyer may
either (x) terminate the Agreement, in which case the Buyer will be entitled to liquidated damages
paid by the Seller to the Buyer of $250,000 (such damages to be paid by the Seller refunding the
Deposit within three (3) business days of notice of termination) and upon payment of such damages
all rights and obligations of the Parties hereunder shall terminate without any further Liability
of any Party; or (y) proceed under §7(c) below.

(iii) If Seller has grounds to terminate the Agreement under §7(a)(iii), Seller may terminate
this Agreement and pursue any claims, suits or actions, under the Agreement or otherwise, in law or
in equity, against the Buyer or the Guarantor;

provided, however, any liability of the Guarantor shall be limited as set forth in the
Guaranty.

(c) Specific Performance. Notwithstanding anything in this Agreement to the contrary,
if, on the Closing Date, the Buyer (i) has complied with all of the conditions to Closing contained
in §6(b), and (ii) has notified the Seller of its intention to consummate the transactions
contemplated under this Agreement, and (iii) is ready and able to pay the Preliminary Purchase
Price and furnishes evidence to that effect to the Seller, and if the Closing does not then occur
due to the refusal of the Seller to so consummate the transactions contemplated under this
Agreement, the Buyer will be entitled, at its sole discretion, to specifically enforce the terms of
this Agreement in a court of competent. The parties hereto accept, agree and acknowledge that the
subject matter of this Agreement is of a unique and extraordinary character which gives it a
peculiar value, the loss of which may not be reasonably or adequately compensated in damages in any
action at law, and therefore the Buyer may apply for the remedy of specific performance as
described herein, at its sole discretion.

Section 8. Survival and Indemnification.

(a) Survival of Representations and Warranties. All of the representations,
warranties, covenants, and agreements contained in this Agreement and in any certificate or
schedule writing delivered pursuant hereto have been relied upon and shall survive the Closing
provided, that any representation and warranty contained in §3 and §4 shall be fully
effective and enforceable only for a period from the Closing Date through and until the second
anniversary of the Closing Date and shall thereafter be of no further force or effect, except as to
claims for indemnification timely made pursuant to this §8 which shall survive until resolved or
judicially determined.

(b) Indemnification Provisions for the Benefit of the Buyer.

(i) In the event of a misrepresentation or breach (or in the event any third party
alleges facts that, if true, would mean a misrepresentation or breach) of any of the
Seller’s or Parent’s representations, warranties, and covenants contained in this Agreement,
and, provided the Buyer makes a written claim for indemnification against the Seller
pursuant to §10(g) below within the survival period set forth in §8(a) above, then the
Seller and the Parent each, jointly and severally, agrees to indemnify the Buyer from and
against any Adverse Consequences the Buyer may suffer through and after the date of the
claim for indemnification (including any Adverse Consequences the Buyer may suffer after the
end of any applicable survival period) resulting from, arising out of, relating to, in the
nature of, or caused by the misrepresentation or breach (or the alleged misrepresentation or
breach).

(ii) The Seller and the Parent each agrees, jointly and severally, to indemnify the
Buyer from and against any Adverse Consequences the Buyer may suffer resulting from, arising
out of, relating to, in the nature of, or caused by:

(A) any Liability of the Seller which is not an Assumed Liability (including,
without limitation, (i) any Liability of the Seller that becomes a Liability of the
Buyer under any bulk transfer law of any jurisdiction, under any common law doctrine
of de facto merger or successor liability, or otherwise by operation of law or (ii)
or any Adverse Consequences the Buyer may suffer in connection with the Litigation),
including, but not limited to all pending litigation against the Seller as set forth
in Schedule §3(t); or

(B) any Liability of any of the Seller’s for the unpaid Taxes of the Seller under
Treas. Req. §1.1502-6 (or any similar provision of state, local, or foreign law), as
a transferee or successor, by contract, or otherwise.

(c) Indemnification Provisions for the Benefit of the Seller.

(i) In the event of a misrepresentation or breach (or in the event any third party
alleges facts that, if true, would mean a misrepresentation or breach) any of the Buyer’s
representations, warranties, and covenants contained in this Agreement, and, provided the
Seller makes written claim for indemnification against the Buyer pursuant to §10(g) below
within the survival period set forth in §8(a) above, then the Buyer agrees to indemnify the
Seller from and against any Adverse Consequences the Seller may suffer through and after the
date of the claim for indemnification (including any Adverse Consequences the Seller may
suffer after the end of any applicable survival period) resulting from, arising out of,
relating to, in the nature of, or caused by the breach (or the alleged breach).

(ii) The Buyer agrees to indemnify the Seller and the Parent from and against any
Adverse Consequences the Seller or Parent may suffer resulting from, arising out of,
relating to, in the nature of, or caused by (x) any Assumed Liability or (y) the Buyer’s
operation of the Acquired Assets (so long as such Adverse Consequences are not the result of
the Seller’s or the Parent’s actions or failure to act prior to the Closing Date).

(d) Matters Involving Third Parties.

(i) If any third party shall notify any Party (the “Indemnified Party”) with respect to
any matter (a “Third Party Claim”) which may give rise to a claim for
indemnification against the other Party (the “Indemnifying Party”) under this §8,
then the party to be so indemnified (the “Indemnified Party”) shall promptly notify the
Indemnifying Party thereof in writing; provided, however, that no delay on
the part of the Indemnified Party in notifying the Indemnifying Party shall relieve the
Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the
Indemnifying Party thereby is prejudiced.

(ii) The Indemnifying Party will have the right to defend the Indemnified Party against
the Third Party Claim with counsel of its choice satisfactory to the Indemnified Party so
long as (A) the Indemnifying Party notifies the Indemnified Party in writing within 10
business days after the Indemnified Party has given notice of the Third Party Claim that the
Indemnifying Party will indemnify the Indemnified Party from and against any Adverse
Consequences the Indemnified Party may suffer resulting from, arising out of, relating to,
in the nature of, or caused by the Third Party Claim, (B) the Third Party Claim involves
only money damages and does not seek an injunction or other equitable relief, (C) settlement
of, or an adverse judgment with respect to, the Third Party Claim is not, in the good faith
judgment of the Indemnified Party, likely to establish a precedential custom of practice
adverse to the continuing business interests of the Indemnified Party, and (D) the
Indemnifying Party conducts the defense of the Third Party Claim actively and diligently.

(iii) So long as the Indemnifying Party is conducting the defense of the Third Party
Claim in accordance with §8(d) (ii) above, (A) the Indemnified Party may retain separate
co-counsel at its sole cost and expense and participate in the defense of the Third Party
Claim, (3) the Indemnified Party will not consent to the entry of any judgement or enter
into any settlement with respect to the Third Party Claim without the prior written consent
of the Indemnifying Party (not to be withheld unreasonably), and (C) the Indemnifying Party
will not consent to the entry of any judgment or enter into any settlement with respect to
the Third Party Claim without the prior written consent of the Indemnified Party (not to be
withheld unreasonably).

(iv) In the event any of the conditions in §8(d)(ii) above is or becomes unsatisfied,
however, (A) the Indemnified Party may defend against, and consent to the entry of any
judgment or enter into any settlement with respect to, the Third Party Claim in any manner
it reasonably may deem appropriate (and the Indemnified Party need not consult with, or
obtain any consent from, any Indemnifying Party in connection therewith), (B) the
Indemnifying party will reimburse the Indemnified Party promptly and periodically for the
costs of defending against the Third Party Claim (including reasonable attorneys’ fees and
expenses), and (C) the Indemnifying Party will remain responsible for any Adverse
Consequences the Indemnified Party may suffer resulting from, arising out of, relating to,
in the nature of, or caused by the Third Party Claim to the fullest extent provided in this
§8.

(e) Other Indemnification Provisions. The foregoing indemnification provisions under
this §8 are the sole remedy available to any Party to this agreement, other than for actual fraud.

(f) Certain Limitations. No Party shall have any liability under §8(b)(i) unless and
until the amount of the aggregate indemnification obligations hereunder exceeds $25,000, whereupon
the Indemnifying Party shall indemnify, defend, protect and hold harmless the Indemnified Party for
all damages. The indemnity obligation of the Seller and the Parent under §8(b)(i) shall be limited
to the Deferred Payments plus any accrued interest thereon, and shall be offset solely against the
Deferred Payments, plus any accrued interest thereon.

Section 9. Other Agreements and Covenants.

(a) Employees.

(i) The Buyer shall offer to hire on the Closing Date substantially all current active
employees of the Seller, except those employees on lay-off, leave of absence, long-term
disability, and short-term disability, who shall remain the responsibility of the Seller.
The Buyer shall provide to the Transferred Employees (as hereinafter defined) on the day
following the Closing the wage and salary levels in effect immediately prior to the Closing
Date (the “Compensation Program”); provided, however, that the
foregoing shall not preclude or interfere in any way, in the right of the Buyer to modify
all or any portion of the Compensation Program to comply with applicable law or for any
other reason which the Buyer, in its sole discretion, determines at any time after the
Closing. Those employees who accept the Buyer’s offer of employment shall be referred to as
“Transferred Employees”, effective as of the Closing Date (or with respect to those
employees on an authorized lave or disability, the date of such acceptance). For the
avoidance of doubt, for purposes of the first sentence of this Section 9(a)(i), Buyer shall
be considered to have complied with such sentence if Buyer offers to hire a number of
employees of the Seller equal to no less than (y) the current number of employees of the
Seller, minus (z) five.

(ii) With respect to any unused vacation time to which a Transferred Employee is
entitled immediately prior to the Closing Date, the Buyer shall be liable after the Closing
Date for, and shall permit Transferred Employees to take, such vacation time to the extent
such vacation time is set forth on Exhibit B.

(iii) The Seller shall not, at any time within the 60-day period prior to the Closing
Date effectuate a “plant closing” or “mass layoff”, as those terms are defined in WARN,
affecting in whole or in part any of its sites of employment facility, operating units, or
employees.

(iv) In the event the Buyer decides to engage in conduct that might trigger an
obligation to provide notice under WARN, the Seller agrees to cooperate with the Buyer and
take any action required to permit timely notice under WARN to any person, entity, or party
entitled to notice pursuant to WARN and to take such other reasonable action as may be
helpful to the Buyer in that regard.

(v) Transferred Employees will be eligible to participate in the Buyer’s employee
benefit plans and programs extended to similarly situated employees of the Buyer in
accordance with the terms of such plans, and will receive service credit under the Buyer’s
plans for eligibility and vesting for service with the Seller. Buyer agrees to offer
benefit programs substantially similar to the plans and programs in which Transferred
Employees currently are eligible to participate. Notwithstanding the foregoing, Seller
acknowledges that the Buyer will not offer  or be obligated to offer Transferred Employees
stock options, restricted stock or similar programs which may have previously been offered
by the Seller or Parent.

(vi) The Buyer will assume all obligations to Transferred Employees which are reflected
on the Most Recent Balance Sheet or accrued in the ordinary course of business since the
date of the Most Recent Balance Sheet; and will assume all obligations under any written
employment agreements to which Transferred Employees are parties which have been disclosed
in the Schedules attached hereto. On the day prior to the Closing Date, the Seller shall
terminate all of its employees in accordance with all applicable labor and employment laws.
Any termination liability which is not assumed by Buyer as described above and relating to
any of such employees, including without limitation accrued benefits and vacation pay, COBRA
liability (so called), compensation and bonuses, severance pay and the like, or any other
item, shall be the sole and absolute obligation of the Seller. In extension of the
foregoing, the Seller is indemnifying Buyer with respect to any such termination liability
pursuant to the indemnity set forth in §8 above and such liability shall not be subject to
the $25,000 “basket” limitation set forth in §8(f).

Section 10 Non-Competition, Non-Solicitation, Confidentiality.  In consideration of
the benefits of this Agreement to Seller and Parent and in order to induce Buyer to enter into this
Agreement, Seller and Parent hereby covenants and agrees as follows:

(a) from and after the Closing Date and until the second year anniversary of the Closing Date,
Parent (except as noted herein), Seller and its Affiliates shall not, directly or indirectly, as a
partner, stockholder, proprietor, consultant, joint venturer, investor or in any other capacity:

(i) engage in, or own, manage, operate or control, or participate in the ownership,
management, operation or control of, any business or entity which engages anywhere in North
America in the delivery of products of services which are competitive in any way with any
of the following products and services of the Seller (all of which are now or were formerly
offered by the Seller): (a) LifeView HR; (b) Payroll Manager; (c) Benefits Manager; (d)
Human Resources Manager; (e) Management Reporting; (f) LifeView HRMS Reporting; or (g)
Symphony HR. The foregoing limitation contained in this (i) shall not be applicable to the
Parent;

(ii) hire or solicit to perform services (as an employee, consultant or otherwise) any
Persons who are or, within the two year period from the Closing Date, employees of the Buyer
or take any actions which are intended to persuade any employee of Buyer to terminate his or
her association with Buyer; provided, however, that general solicitations of
employment published in a journal, newspaper or other publication of general circulation and
not specifically directed towards such employees shall not be deemed to constitute
solicitation for purposes of this subparagraph (ii); or

(iii) solicit any customer of Buyer to purchase products or services which could be
supplied by Buyer after the Closing Date using the Acquired Assets.

(b) From and after the Closing Date, Parent, Seller and its Affiliates shall keep confidential
and not disclose to any other Person or use for their own benefit or the benefit of any other
Person, any information regarding the Acquired Assets and /or the business of the Seller. The
obligation of Parent, the Seller and their Affiliates under this paragraph (b) shall not apply to
information which: (i) is or becomes generally available to the public without breach of the
commitment provided for in this paragraph (b); or (ii) is required to be disclosed by law, order or
regulation of a court or tribunal or government authority; provided, however, that
in any such case, Parent or Seller shall notify Buyer as early as reasonably practicable prior to
disclosure to allow Buyer to take appropriate measures to preserve the confidentiality of such
information.

(c) Parent and Seller acknowledge that, given the nature of the business of Seller, the
covenants contained in this § 10 contain reasonable limitations as to time, geographical area and
scope of activity to be restrained, and do not impose a greater restraint than is necessary to
protect and preserve for the benefit of Buyer the goodwill of Seller and to protect the legitimate
business interests of the Buyer. If, however, any provision of this §10 is determined by any court
of competent jurisdiction to be unenforceable by reason of its extending for too long a period of
time or over too large a geographic area or by reason of its being too extensive in any other
respect or for any other reason it will be interpreted to extend only over the longest period of
time for which it may be enforceable and/or over the largest geographical area as to which it may
be enforceable and/or to the maximum extent in all other aspects as to which it may be enforceable,
all as determined by such court and in such action. Parent and Seller agree that Buyer’s remedies
at law for any breach or threat of breach by Seller or Parent of the provisions of this §10 will
be inadequate, and that Buyer shall be entitled to equitable remedies, including, without
limitation, an injunction or injunctions, without the necessity for the posting of a bond or other
collateral security, to prevent breaches of the provisions of this §10 and to enforce specifically
the terms and provisions hereof.

Section 11. Miscellaneous.

(a) Press Releases and Public Announcements. No Party shall issue any press release
or make any public announcement relating to the subject matter of this Agreement without the prior
written approval of the other Party; provided, however, that each of the Buyer and
the Parent may disclose the subject matter of this Agreement to its lenders and may make any public
disclosure it believes in good faith is required by applicable law concerning its securities
registered under the Securities Exchange Act of 1934, as amended (in which case the disclosing
Party will use its best efforts to advise the Seller prior to making the disclosure).

(b) No Third-Party Beneficiaries. This Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors and permitted
assigns.

(c) Entire Agreement. This Agreement (including the documents referred to herein)
constitutes the entire agreement between the Parties and supersedes any prior understandings,
agreements, or representations by or between the Parties, written or oral, to the extent they
related in any way to the subject matter hereof.

(d) Succession and Assignment. This Agreement shall be binding upon and inure to the
benefit of the Parties named herein and their respective successors and permitted assigns. No
Party may assign either this Agreement or any of its rights, interests, or obligations hereunder
without the prior written approval of the other Party; provided, however, that the Buyer may assign
its rights under this Agreement to any senior secured institutional lender, including, without
limitation, Chatham Capital.

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

(f) Headings. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

(g) Notices. All notices, requests, demands, claims, and other communications
hereunder will be in writing. Any notice, request, demand, claim, or other communication hereunder
shall be deemed duly given upon receipt if it is sent by facsimile, or reputable express courier,
and addressed or otherwise sent to the intended recipient as set forth below:

If to the Seller:

Empagio, Inc.

c/o Halo Technology Holdings, Inc.

200 Railroad Avenue, Third Floor

Greenwich, Connecticut 06830

Attn: Ernest (JR) Mysogland

If to the Buyer:

[Buyer]

     

     

     

Copy to:

Rogin, Nassau, Caplan, Lassman & Hirtle, LLC

CityPlace I, 22nd Floor

185 Asylum Street

Hartford, CT 06103

Attention: Steven D. Bartelstone, Esq.

Fax: (860) 278-2179

Any Party may send my notice, request, demand, claim, or other communication hereunder to the
intended recipient at the address on facsimile number set forth above using any other means
(including personal delivery, messenger service, ordinary mail, or electronic mail), but no such
notice, request, demand, claim, or other communication shall be deemed to have been duly given
unless and until it actually is received by the intended recipient. Any party may change the
address of facsimile number to which notices, requests, demands, claims, and other communications
hereunder are to be delivered by giving the other Party notice in the manner herein set forth.

(h) Governing Law. This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Connecticut without giving effect to any choice or conflict
of law provision or rule (either of the State of Connecticut or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of Connecticut.

(i) Amendments and Waivers. No amendment of any provision of this Agreement shall be
valid unless the same shall be in writing and signed by each of the Parties hereto. The Seller may
consent to any such amendment at any time prior to the Closing with the prior authorization of its
board of directors. No waiver by any Party of any default, misrepresentation, or breach of
warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior
or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in
any way any rights arising by virtue of any prior or subsequent such occurrence.

(j) Severability. Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability
of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.

(k) Expenses. Each of the Parties will bear its own costs and expenses (including
legal fees and expenses) incurred in connection with this Agreement and the transactions
contemplated hereby. The Seller also agrees that it has not paid any of the foregoing amounts to
any third party, and will not pay any such amounts to any third party until after the Closing, with
respect to any of the costs and expenses of it and the Parent (including any of their legal fees
and expenses, in each case in connection with this Agreement or any of the transactions
contemplated hereby.

(l) Construction. 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. Nothing
in the Disclosure Schedule shall be deemed adequate to disclose an exception to a representation or
warranty made herein unless the Disclosure Schedule identifies the exception with reasonable
detail. The Parties intend that each representation, warranty, and covenant contained herein shall
have independent significance. If any Party has breached any representation, warranty, or covenant
contained herein in any respect, the fact that there exists another representation, warranty, or
covenant relating to the same subject matter (regardless of the relative levels of specificity)
which the Party has not breached shall not detract from or mitigate the fact that the Party is in
breach of the first representation, warranty, or covenant.

(m) Incorporation of Exhibits and Schedules. The Exhibits and Schedules (including
the Disclosure Schedule) identified in this Agreement are incorporated herein by reference and made
a part hereof.

(n) Bulk Transfer Laws. The Buyer acknowledges that the Seller will not comply with
the provisions of any bulk transfer laws of any jurisdiction in connection with the transactions
contemplated by this Agreement.

(o) Further Assurances. The parties shall cooperate reasonably with each other in
connection with any steps required to be taken as part of their respective obligations under this
Agreement, and shall (a) furnish upon request to each other such further information; (b) execute
and deliver to each other such other documents, instruments or agreements; and (c) do such other
acts and things, all as any party may reasonably request for the purpose of carrying out the intent
of this Agreement, including, without limitation, the execution and delivery of any documents,
instruments or agreements required by any registry of the Domain Names to transfer said Domain
Names to the Buyer and the obtaining by Buyer of “clearance certificates” or similar items relating
to any state tax obligation of the Seller. In furtherance of the foregoing, the Seller and the
Parent shall, at the Buyer’s request, take any and all actions requested by Buyer, including but
not limited to, cooperating and/or prosecuting any suit, action or other proceeding in connection
with the enforcement by Buyer of the non-competition agreements assigned to Buyer which by their
terms are not assignable and/or the assignment of which has not been consented to by any other
party thereto. Any costs or expenses incurred by Parent or the Seller in connection with the
enforcement of the Non-Competition and Related Assignments shall be borne by the Buyer. The Buyer
shall direct and control any such enforcement action by the Seller or the Parent.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above
written.

PARENT:

HALO TECHNOLOGY HOLDINGS, INC.

By: /s/ Jude Sullivan

Name: Jude Sullivan

Title: Director of M&A

SELLER:

EMPAGIO , INC.

By: /s/ Jude Sullivan

Name: Jude Sullivan

Title: Duly Authorized

BUYER:

EMPAGIO ACQUISITION LLC

By: /s/ Seth Bernstein

Name: Seth Bernstein

Title: ManagerEX-10.147

EXHIBIT 10.147

THIS AMENDMENT AGREEMENT No. 4 (this Amendment Agreement) is dated as of May 17, 2007

BETWEEN:

	(1)	 	HALO TECHNOLOGY HOLDINGS, INC. (formerly Warp Technology Holdings, Inc.), a Nevada
corporation, as borrower (the Company); and

	(2)	 	FORTRESS CREDIT CORP., in its capacity as agent to the Lenders under the Credit Agreement
referred to below (in that capacity, the Agent).

WHEREAS:

	(A)	 	The Company, the Lenders (referred to therein) and the Agent are parties to that certain
credit agreement dated August 2, 2005, as amended by Amendment No. 1 dated as of October 26,
2005, Amendment No. 2 dated as of October 11, 2006 and Amendment No. 3 dated as of November
20, 2007 (the Credit Agreement).

(B) The Company failed to make the (i) last two installments of a mandatory prepayment
pursuant to Clause 7.2(b) of the Credit Agreement and Section 3(a) of Amendment No. 3 to
the Credit Agreement (Amendment No. 3), in the amount of US$500,000 due on February 28,
2007 and in the amount of US$1,000,000 due on March 30, 2007 and (ii) the scheduled
principal repayment on in the amount of $833,063 due on May 2, 2007.

(C) The Company failed to pay the full amount of interest accrued on the Loan for the
Interest Period commencing on (and including) April 1, 2007 and ending on (and including)
April 30, 2007 and the Company owes interest at the Default Rate for the period commencing
on (and including) March 1, 2007 and ending on (and including) April 30, in accordance with
Clause 8.4 of the Credit Agreement, in an aggregate amount of $106,741.19;

(D) The Company failed to pay to the Agent for the benefit of the Lenders a reorganization
success fee pursuant to Section 3(d) of Amendment No. 3 in the amount of US$200,000 on
March 30, 2007.

(E) The Company failed to pay to the Agent for the benefit of the Lenders the final
installment of an amendment fee pursuant to Section 10(a) of Amendment No. 3 in the amount
of US$100,000.

(F) This Amendment Agreement is supplemental to and amends the Credit Agreement. The
Company and the Agent have agreed that the Credit Agreement should be amended as set forth
in this Amendment Agreement.

IT IS AGREED as follows:

	1.	 	INTERPRETATION

	1.1	 	Definitions

Terms defined in the Credit Agreement (by reference or otherwise) have, unless expressly
defined in this Amendment Agreement, the same meanings in this Amendment Agreement.

	1.2	 	Construction

The provisions of Clause 1.2 (Construction) of the Credit Agreement apply to this
Amendment Agreement as though they were set out in full in this Amendment Agreement, except
that references to “this Agreement” are to be construed as references to this Amendment
Agreement.

	2.	 	EFFECT OF AMENDMENT AGREEMENT

With effect on and from the date of this Amendment Agreement, the Credit Agreement
will be amended by, and the rights and obligations of the parties thereto relating to their
future performance under the Credit Agreement will be governed by and construed in
accordance with, the Credit Agreement as amended, modified and supplemented by this
Amendment Agreement.

	3.	 	AMENDMENTS AND WAIVERS

Notwithstanding anything contained in the Credit Agreement to the contrary, the Company and
the Agent hereby agree that:

	 	(a)	 	Provided that the Agent and Lenders have complied with the terms hereof, the
Company shall cause Empagio, Inc. (Empagio) to sell its assets and assign its
liabilities to Empagio Acquisition Corporation (the Purchaser) pursuant to the Asset
Purchase Agreement entered into as of May 17, 2007, by and among the Purchaser,
Empagio, the Company and Seth Bernstein, as Guarantor, a copy of which is attached
hereto as Annex I (the Empagio Purchase Agreement);

	 	(b)	 	immediately upon receipt of the same, the Company shall pay to the Agent the
full amount of the deposit to be paid by the Purchaser under the Empagio Purchase
Agreement, which the Agent shall hold as collateral for the Company’s obligations
hereunder pending the closing of the sale of the Company’s equity interest in Empagio
to the Purchaser under the Empagio Purchase Agreement (the Disposition), which deposit
shall be applied by Agent upon the Disposition towards payment of amounts due under
Section 3(c);

	 	(c)	 	simultaneously with the closing of the Disposition (the Disposition Date),
the Company shall pay to the Agent an amount equal to US$12,750,000 (i) less the
amount of the deposit paid to the Agent under Section 3(b) hereof, (ii) plus each of
(x) the amount equal to the Working Capital Excess (as defined in the Empagio Purchase
Agreement), if there is any Working Capital Excess, and (y) the amount, if any, by
which US$250,000 exceeds the amount to be paid to Richard Bigelow in connection with
the closing of the Disposition (the Bigelow Payment);

	 	(d)	 	the Company shall pay to the Agent US$250,000 on July 31, 2007;

	 	(e)	 	each of the payments to be made by the Company to the Agent in clauses (b),
(c) and (d) above shall be applied towards payment of (i) the reorganization success
fee payable pursuant to Section 3(d) of Amendment No. 3 equal to US$200,000, (ii) the
final installment of the amendment fee payable pursuant to Section 10(a) of Amendment
No. 3 equal to US$100,000, (iii) an amendment fee to the Agent for the benefit of the
Lenders equal to US$100,000 as consideration for entering into this Amendment
Agreement, (iv) any amounts then due and owing under the Credit Agreement, and (v) a
partial prepayment of the outstanding principal amount of the Loan;

	 	(f)	 	the Company shall pay to the Agent an amount equal to US$135,041.49 no later
than 5:00 PM (New York time) on May 17, 2007, which shall be applied to the payment of
each of (i) interest at the Default Rate for the period commencing on (and including)
March 1, 2007 and ending on (and including) April 30, in the amount of US$106,741.19
and (ii) interest at the Default Rate for the period commencing on (and including) May
1, 2007 and ending on (and including) May 17, 2007, in the amount of US$ 28,300.30
(such amounts collectively referred to as the Unpaid Interest);

	 	(g)	 	the Company shall ensure that the Disposition Date occurs on or prior to May
31, 2007;

	 	(h)	 	the Company shall deliver to the Agent each of (i) documentation provided to
or received from the Purchaser evidencing the actual working capital adjustment
calculated under the Empagio Purchase Agreement on or prior to the Disposition Date or
thereafter in accordance with the Empagio Purchase Agreement, and (ii) documentation
satisfactory to the Agent evidencing the amount of the Bigelow Payment on or prior to
the Disposition Date,;

	 	(i)	 	the Credit Agreement is amended by deleting the definition of “Maturity Date”
in its entirety and replacing it with the following:

	 	 	 	“Maturity Date” means September 28, 2007;

	 	(j)	 	so long as no Event of Default has occurred after the date hereof, the
Company shall not be required to make the principal repayment currently scheduled to
be due on August 2, 2007;

	 	(k)	 	for the avoidance of any doubt, (i) the Company shall be required to pay
Interest (including any Interest that accrues at the Default Rate) as and when
Interest becomes due under the Credit Agreement, (ii) the Company shall be required to
repay the Loan in full on or prior to the Maturity Date; and (iii) there is no Default
Rate interest due under the Credit Agreement as of the date hereof other than the
Unpaid Interest;

	 	(l)	 	the Company shall deliver to the Agent, on or prior to August 31, 2007,
evidence that the Company has entered into a commitment letter (in form and substance
reasonably satisfactory to the Agent) with a third party (reasonably satisfactory to
the Agent) to either make a loan available to or purchase assets from the Company in
or for an amount which will be sufficient to enable the Company to repay the Loan in
full on or prior to the Maturity Date;

	 	(m)	 	for the avoidance of any doubt, if any Deferred Payments (as defined in the
Empagio Purchase Agreement) are made to the Company prior to the date on which the
Loan and all other amounts owing to any Lender or the Agent under the Credit Agreement
have been paid in full in cash, such Deferred Payments shall be paid to the Agent.

	 	(n)	 	for avoidance of any doubt, (i) the Company may not assign, transfer or
otherwise monetize any of its rights under the Empagio Purchase Agreement (including
the right to receive Deferred Payments), (ii) the Company shall not agree to any
amendment or modification to the Empagio Purchase Agreement without prior written
consent of the Agent; acting in its sole discretion and (iii) all of the Company’s
rights under the Empagio Purchase Agreement (including the right to receive Deferred
Payments) constitutes Collateral under the Security Agreement dated August 2, 2005
between the Company and the Agent and the Company is granting the Agent a first
priority security interest in all such rights;

	 	(o)	 	the Credit Agreement is amended by deleting Schedule 15 (Financial Terms and
Covenants) to the Credit Agreement in its entirety;

	 	(p)	 	Tranche C is no longer available to be borrowed and that each Lender’s
remaining Commitment is hereby cancelled; and for the avoidance of doubt, except for
the unused facility fee in the amount of $27,083.33 which has accrued until and
including the date hereof and which is due on May 31, 2007, no other commitment fees
or other amounts will be due to the Lenders in connection with Tranche C;

	 	(q)	 	the Company ‘s failure to comply with its obligations under this Section 3 or
the termination of the Empagio Purchase Agreement for any reason whatsoever (unless
caused by the Agent refusing to negotiate in good faith the terms of the release
letter described in Section 3(r)) shall constitute an immediate Event of Default under
the Credit Agreement, and, for the avoidance of any doubt, the Company’s failure to
comply with its payment obligations under Section 3(b), 3(c), 3(d), 3(f) and 3(p)
shall constitute an immediate Event of Default under Section 19.2 of the Credit
Agreement; and

	 	(r)	 	the Agent agrees that, upon receipt of the indefeasible and irrevocable
payment of all amounts set forth in Section 3(c) it will release its security interest
in the assets being sold by Empagio to the Purchaser pursuant to the Empagio Purchase
Agreement, and that on the Disposition Date it will, if requested by the Purchaser,
enter into a letter in form and substance reasonably satisfactory to the Agent
confirming that such release will occur immediately upon receipt of the indefeasible
and irrevocable payment of all amounts set forth in Section 3(c).

	4.	 	REPRESENTATIONS AND WARRANTIES

	4.1	 	Representations and Warranties

The Company makes each representation and warranty set out in Clauses 4.2 (Powers and
Authority) through 4.6 (Credit Agreement) of this Amendment Agreement to each Finance
Party.

	4.2	 	Powers and authority

It has the power to enter into and perform, and has taken all necessary action to
authorize the entry into and performance of this Amendment Agreement and the transactions
contemplated by this Amendment Agreement.

	4.3	 	Legal validity

	 	(a)	 	This Amendment Agreement is its legally binding, valid and enforceable
obligation.

	 	(b)	 	This Amendment Agreement is in the proper form for its enforcement in the
jurisdiction of its incorporation.

	4.4	 	Non-conflict

The entry into and performance by it of, and the transactions contemplated by, this
Amendment Agreement do not and will not:

	 	(a)	 	conflict with any law or regulation applicable to it; or

	 	(b)	 	conflict with its constitutional documents; or

	 	(c)	 	conflict with any document which is binding upon it or any of its assets or
constitute a default or termination event (however described) under any such document,
in each case to an extent or in a manner which:

	 	(i)	 	has a Material Adverse Effect;

	 	(ii)	 	could reasonably be expected to result in any liability on
the part of any Finance Party to any third party; or

	 	(iii)	 	could require the creation of any Lien over any asset in
favor of a third party.

	4.5	 	Authorizations

All authorizations required by it in connection with the entry into, performance and
validity and enforceability of, and the transactions contemplated by, this Amendment
Agreement have been obtained or effected (as appropriate) and are in full force and effect.

	4.6	 	Credit Agreement

The Company hereby represents and warrants that, on the date of this Amendment
Agreement, the representations and warranties set out in Clauses 15.2 (Status) through
15.16 (United States laws) of the Credit Agreement:

	 	(a)	 	are true with each such representation and warranty being understood to mean
such representation and warranty as amended (if amended at all) pursuant to Clause 3
(Amendments) of this Amendment Agreement; and

	 	(b)	 	would also be true if references to “this Agreement” were construed as
references to the Credit Agreement as amended by this Amendment Agreement.

provided, however, that with respect to the representations and
warranties set out in Clause 15.10 (Litigation), (i) the litigation filed in Georgia state
court (State of Georgia Civil Action Number 2007CV131153, Awald et al. v. Halo Technology
Holdings, Inc.), were such litigation determined adversely to the Company, and (ii) the
litigation filed in Illinois state court, Circuit Court of Cook County, Illinois, County
Department, Chancery Division, Case No. 07CH12078 (the “Crestview Suit”) were such
litigation determined adversely to the Company, then either such litigation would likely
have a Material Adverse Effect.

	4.7	 	Acknowledgment of Reliance

The Company acknowledges that it makes such representations and warranties with the
intention of persuading Agent (on behalf of the Lenders) to enter into this Amendment
Agreement and that the Agent has entered into this Amendment Agreement on the basis of, and
in full reliance on, each of such representations and warranties.

	5.	 	GOVERNING LAW, ETC.

This Amendment Agreement is governed by the laws of the State of New York. The
provisions of Clauses 36 (Governing Law) and 37 (Enforcement) of the Credit Agreement are
incorporated by reference into this Amendment Agreement as if fully set out herein, with
each reference to “this Agreement” (including in the definition of Finance Documents) being
understood to be a reference to this Amendment Agreement.

	6.	 	SEVERABILITY

If any provision of this Amendment Agreement is or becomes illegal, invalid or
unenforceable in any jurisdiction, that shall not affect:

	 	(a)	 	the legality, validity or enforceability in that jurisdiction of any other
provision of this Amendment Agreement; or

	 	(b)	 	the legality, validity or enforceability in any other jurisdiction of that or
any other provision of this Amendment Agreement.

	7.	 	COUNTERPARTS

This Amendment Agreement may be executed in any number of counterparts, and this has
the same effect as if the signatures on the counterparts were on a single copy of this
Amendment Agreement.

	8.	 	COMPLETE AGREEMENT

This Amendment Agreement, the Credit Agreement and the other Finance Documents contain
the complete agreement between the Parties on the matters to which such agreements relate
and supersede all prior commitments, agreements and understandings, whether written or
oral, with respect to those matters.

	9.	 	NATURE OF THIS AMENDMENT AGREEMENT

	 	(a)	 	By signing this Amendment Agreement, the Parties designate this Amendment
Agreement as a Finance Document.

	 	(b)	 	Except as specifically amended by this Amendment Agreement, the Credit
Agreement is and shall continue to be in full force and effect and is hereby in all
respects ratified and confirmed. The Credit Agreement and this Amendment Agreement
will be read and construed as a single document.

	10.	 	RELEASE

The Company on behalf of itself, its Subsidiaries and Affiliates hereby acknowledge,
effective upon the date of this Amendment Agreement, that the Company and its Subsidiaries
and Affiliates, have no defense, counterclaim, offset, cross-complaint, claim or demand of
any kind or nature whatsoever that can be asserted to reduce or eliminate all or any part
of any Obligor’s liability to repay all amounts due and owing under the Credit Agreement or
to seek affirmative relief or damages of any kind or nature from the Agent, any Lender or
any of their past and present officers, partners, members, directors, servants, agents,
attorneys, assigns, employees, heirs, parents, subsidiaries, or any other Person acting for
or on behalf of any of them. The Company and its Subsidiaries and Affiliates, all their
successors, assigns, Subsidiaries and Affiliates and any Person acting for or on behalf of,
or claiming through them, hereby fully, finally and forever release and discharge the Agent
and the Lenders and all of the Agent’s and Lenders’ past and present officers, partners,
members, directors, servants, agents, attorneys, assigns, employees, heirs, parents,
subsidiaries, and each Person acting for or on behalf of any of them (collectively, the
“Released Parties”) of and from any and all past, present and future actions,
causes of action, demands, suits, claims, liabilities, Liens, lawsuits, adverse
consequences, amounts paid in settlement, costs, damages, debts, deficiencies, diminution
in value, disbursements, expenses, losses and other obligations of any kind or nature
whatsoever, whether in law, equity or otherwise (including without limitation those arising
under 11 U.S.C. §§ 541-550 and interest or other carrying costs, penalties, legal,
accounting and other professional fees and expenses, and incidental, consequential and
punitive damages payable to third parties), whether known or unknown, fixed or contingent,
direct, indirect, or derivative, asserted or unasserted, foreseen or unforeseen, suspected
or unsuspected, liquidated or unliquidated, matured or unmatured, now existing, heretofore
existing or which may heretofore accrue against any of the Released Parties, whether held
in a personal or representative capacity, and which are based on any act, fact, event or
omission or other matter, cause or thing occurring at or from any time prior to and
including the date hereof in any way, directly or indirectly arising out of, connected with
or relating to the Credit Agreement and the transactions contemplated thereby, and all
other agreements, certificates, instruments and other documents and statements (whether
written or oral) related to any of the foregoing or to the documents related to the
transaction contemplated herein. The parties agree that none of Crestview Capital Master,
LLC and Crestview Capital Partners LLC shall be considered an “Affiliate” of the Company
for the purposes of this paragraph.

The Agent, for and on behalf of itself and the Finance Parties, hereby acknowledges
that the existing defaults described in Whereas clauses (B), (C), (D) and (E) of this
Amendment Agreement shall be deemed to be cured upon payment of the amounts payable
pursuant to Sections 3(b), 3(c), 3(d) and 3(f) of this Amendment Agreement.

The undersigned, intending to be legally bound, have executed and delivered this Amendment
Agreement on the date stated at the beginning of this Amendment Agreement.

Signatories

Company

HALO TECHNOLOGY HOLDINGS, INC.

By: /s/ Ernest C. Mysogland

Name: Ernest C. Mysogland

Title: Executive Vice President

	 	 	 
	Agent	 	 
	FORTRESS CREDIT CORP.,

	 	

	 
	 	 
	as Agent for and on behalf of the Finance Parties

	 
	 	 
	By:

	 	/s/ Marc K. Furstein

Name: Marc K. Furstein

	 	 	Title: Chief Operating Officer

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