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Exhibit 10.12  

 
 

STOCK PURCHASE AGREEMENT    
    

        THIS STOCK PURCHASE AGREEMENT ("AGREEMENT") is made and entered into as of
April 14, 2005, by and among: Aptas, Inc., a Delaware corporation ("Purchaser"); and the
following parties (collectively, the "Shareholders" and, individually, a "Shareholder"):  SPENCER TRASK INTELLECTUAL CAPITAL COMPANY
LLC, a Delaware limited liability company ("STIC"), and  INTERNATIONAL BUSINESS MACHINES CORPORATION, a New York corporation
("IBM"); and Kevin Kimberlin, acting
as the Shareholder's Agent. Certain capitalized terms used in this Agreement are defined in Exhibit A. 

RECITALS  

        A.    The Shareholders own an aggregate of 40,000,000 shares of common stock (collectively the "Company
Shares") of Information Services Extended, Inc., a Delaware corporation (the "Company"), which constitute all of the
issued and outstanding shares of capital stock of the Company. 

        B.    The Shareholders wish to sell the Company Shares to Purchaser, and the Purchaser wishes to buy the Company Shares from the
Shareholders on the terms and subject to the conditions set forth in this Agreement (the "Acquisition"). 

AGREEMENT  

        The parties to this Agreement, intending to be legally bound, agree as follows: 

Section 1.  SALE AND PURCHASE OF SHARES; RELATED TRANSACTIONS  

        1.1   Sale and Purchase of Shares. At the Closing, the Shareholders shall sell, assign, transfer and deliver the Company Shares
to the Purchaser, and the Purchaser shall purchase the Company Shares from the Shareholders on the terms and subject to the conditions set forth in this Agreement. 

        1.2   Purchase Price; Holdback of Portion of Purchase Price. 

        (a)   Subject to Section 1.2(b) below, at the Closing, by virtue of the Acquisition and without any further action on
the part of Purchaser, the Company or the Shareholders, the Company Shares shall be converted into the right to receive an aggregate of 4,092,300 newly issued shares of Series 1 Preferred Stock
of Purchaser (the "Purchaser Series 1 Stock"), in accordance with the amounts set forth on  Exhibit B hereto (the "Consideration Shares"). 

        (b)   804,600 of the Consideration Shares (the "Escrow Shares") payable
pursuant to Section 1.2(a) shall be subject to recovery by the Purchaser Indemnitees (in accordance with the respective amounts set forth on  Exhibit B hereto) to satisfy the indemnification
obligations, if any, of the Shareholders pursuant to Section 6 below until the Expiration
Date. The Escrow Shares shall be deemed issued but held by Purchaser for the benefit of the Shareholders until the earlier to occur of (i) the consummation of the IPO; (ii) the
consummation of the Rescission (as defined in the Rescission Agreement); and (iii) January 1, 2006 (such earlier date, the "Rescission Termination
Date"). Not later than ten (10) business days following the Rescission Termination Date, any Escrow Shares held for the benefit of each Shareholder that have not been
used to satisfy the indemnification obligations, if any, of each Shareholder will be distributed to the Shareholders; provided, that, if the
Shareholder's Agent has been provided with a Claim Notice prior to the Rescission Termination Date, then (i) the Escrow Shares necessary to satisfy such claim shall not be distributed until
such claims have been fully and finally resolved, either by means of a written settlement agreement executed on behalf of the Shareholders by the Shareholder's Agent and the Purchaser or by means of a
final non-appealable judgment issued by a court of competent jurisdiction and (ii) all remaining Escrow Shares held for the benefit of each 

 

Shareholder
shall be distributed to the Shareholders. Notwithstanding the release of the Escrow Shares to the Shareholders on the Rescission Termination Date, the Escrow Shares shall continue to be
subject to recovery by the Purchaser Indemnitees to satisfy the indemnification obligations, if any, of the Shareholders pursuant to Section 6 below until the Expiration Date. 

        (c)   All the Consideration Shares (excluding the Escrow Shares) (the "Remaining
Shares") shall be deemed issued but held by the Purchaser for the benefit of the Shareholders solely for the purpose of effecting the transactions contemplated by the
Rescission Agreement. In the event that the transactions contemplated by the Rescission Agreement are not effected prior to the Rescission Termination Date, not later than ten (10) business
days following the Rescission Termination Date, the Remaining Shares will be distributed to the Shareholders in accordance with Exhibit B hereto. 

        1.3   Closing. The closing of the sale of the Shares to Purchaser (the
"Closing") shall take place at the offices of Cooley Godward llp, 380 Interlocken Crescent, Suite 900, Broomfield, Colorado, at 10:00 a.m. on the
date hereof. The date on which the Closing takes place is referred to as the "Closing Date". At the Closing, the parties shall deliver the documents set
forth on Sections 5.1 and 5.2. 

        1.4   Stock Options. Subject to any applicable legal requirements solely with respect to persons who do not serve as employees
or directors of, or consultants to, the Company or Purchaser or any affiliate or successor of the Purchaser following the Closing and who are not accredited investors within the meaning of
Regulation D under the Securities Act, as soon as practicable following the Closing (but in any event no later than 15 days following the Closing), each person holding an option to
purchase shares of common stock of the Company under the Company's 2001 Stock Plan (the "Company Options") shall be given the opportunity to amend such
person's Company Option to provide that (a) such optionee shall be prohibited from excercising any Company Option prior to the Rescission Termination Date and (b) that each Company
Option held by such optionee shall be assumed by the Purchaser and shall become an option to purchase shares of Purchaser common stock on the same terms and conditions (except as otherwise provided in
this Section 1.4) provided under such Company Options and the Company's 2001 Stock Plan. The aggregate number of shares of Purchaser common stock into which the Company Options may be exercised
shall be equal to 975,752. 

        1.5   Exchange of Certificates. At the Closing, each Shareholder shall deliver stock certificates representing the Company
Shares (the "Shareholder Stock Certificates"), duly endorsed for transfer, together with a stock assignment separate from certificate with respect to
the Consideration Shares (a "Stock Assignment"), to the Purchaser. 

        1.6   Further Action. If, at any time after the Closing, any further action is determined by any of the parties to be necessary
or desirable to carry out the sale of the Company Shares consistent with the terms of this Agreement, then the officers and directors of the Company and Purchaser shall be fully authorized to take
such action. At any time after the Closing, the Shareholders shall cooperate with the Purchaser, at the cost of the Purchaser or the Company, and shall execute and deliver such documents and take such
other actions as the Purchaser may reasonably request for the purpose of evidencing the sale of the Company Shares consistent with the terms of this Agreement. 

        1.7   Tax Matters. Purchaser and the Shareholders intend for this transaction to qualify as a tax-free exchange
under Section 368(a)(1)(B) of the Code. 

Section 2.  REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS  

        Each Shareholder severally (and not jointly) represents and warrants, to and for the benefit of the Purchaser Indemnitees as follows (it being understood that,
for the purposes of this Section 2, all references to the Company shall be deemed to include the Company and its Subsidiaries): 

        2.1   Subsidiaries; Due Organization. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware. Each of the Company's Subsidiaries is 

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duly
organized, validly existing and in good standing under the laws of its state or country of organization. Except where the failure to be so qualified or in good standing in such jurisdiction would
not reasonably be expected to have a Material Adverse Effect on the Company, the Company and each of its Subsidiaries is qualified, authorized, registered or licensed to do business as a foreign
corporation and is in good standing in each of the jurisdictions listed in Part 2.1 of the Company Disclosure Schedule. Except as set forth in Part 2.1 of the Company Disclosure
Schedule, the Company has no Subsidiaries and does not own any capital stock of, or any equity interest of any nature in, any Entity. The Company has all necessary power and authority: (i) to
conduct its business in the manner in which its business is currently being conducted; (ii) to own and use its assets in the manner in which its assets are currently owned and used; and
(iii) to perform its obligations under all Material Contracts to which it is a party. The Company is not obligated to make, and is not a party to any Contract under which it may become
obligated to make, any future investment in or capital contribution to any other Entity. The Company has never conducted any business under or otherwise used, for any purpose or in any jurisdiction,
any fictitious name, assumed name, trade name or other names other than those incorporating (in any configuration) "ISx" or "Information Services Extended." 

        2.2   Organizational Documents; Records. The Company has delivered to Purchaser or its Representatives accurate and complete
copies of the certificate of incorporation (if applicable), bylaws and other charter and organizational documents, including all amendments thereto, of the Company and its Subsidiaries.
Part 2.2(a) of the Company Disclosure Schedule lists, and the Company has delivered to Purchaser or its Representatives, accurate and complete copies of: (a) the charters of all
committees of the board of directors of the Company and its Subsidiaries; and (b) any code of conduct or similar policy adopted by the Company or its Subsidiaries or by their respective board
of directors, or any committee of their board of directors. Except as set forth in Part 2.2(b) of the Company Disclosure Schedule, the Company has delivered to Purchaser or its Representatives
accurate and complete copies of (i) the stock records and stock certificates of the Company and its Subsidiaries; and (b) the minutes and other records of the formal duly noticed
meetings and other proceedings (including any actions taken by written consent or otherwise without a meeting) of the stockholders of the Company and its Subsidiaries, the board of directors of the
Company and its Subsidiaries and all committees of the board of directors of the Company and its Subsidiaries. There have been no duly noticed and called meetings or other proceedings of the
stockholders of the Company or its Subsidiaries, the board of directors of the Company or its Subsidiaries or any committee of the board of directors of the Company or its Subsidiaries that are not
fully reflected in such minutes or other records. The stock records and minute books of the Company are accurate, up-to-date and complete and have been maintained in accordance
with commercially reasonable business practices in all material respects. 

        2.3   Capitalization. 

        (a)   Except as set forth in Part 2.3(a) of the Company Disclosure Schedule, the authorized capital stock of the Company
consists of: (i) 100,000,000 shares of common stock, $0.001 par value per share, of which 40,000,000 shares have been issued and are outstanding as of the date of this Agreement and as of the
Closing Date; and (ii) 10,000,000 shares of preferred stock, $0.001 par value per share, of which no shares have been issued or are outstanding. The authorized and outstanding shares of capital
stock of each Subsidiary of the Company is set forth on Part 2.3(a) of the Company Disclosure Schedule. The Company does not hold any shares of its capital stock in its treasury. All of the
outstanding shares of capital stock of the Company and its Subsidiaries have been (i) duly authorized and validly issued and (ii) are fully paid and non-assessable. Except as
set forth in Part 2.3(a) of the Company Disclosure Schedule, the Shareholders together own all the outstanding shares of capital stock of the Company. Except as set forth in Part 2.3(a)
of the Company Disclosure Schedule, the Company owns all the outstanding shares of capital stock of each Subsidiary. 

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        (b)   Except as set forth in Part 2.3(b) of the Company Disclosure Schedule: (i) none of the outstanding shares
of capital stock of the Company is entitled or subject to any preemptive right, right of participation, right of maintenance or any similar right; (ii) none of the outstanding shares of capital
stock of the Company is subject to any right of first refusal in favor of the Company; and (iii) there is no Company Contract relating to the voting or registration of, or restricting any
Person from purchasing, selling, pledging or otherwise disposing of (or granting any option or similar right with
respect to), any shares of capital stock of the Company. The Company is not obligated, and is not bound, by any Contract pursuant to which it may become obligated, to repurchase, redeem or otherwise
acquire any outstanding shares of capital stock of the Company or other securities. All securities of the Company and its Subsidiaries have been issued and granted in compliance with all applicable
securities laws and other applicable Legal Requirements and all requirements set forth in applicable Contracts. Part 2.3(b) of the Company Disclosure Schedule accurately and completely
describes all repurchase rights held by the Company with respect to shares of capital stock of the Company (including shares issued pursuant to the exercise of stock options), and specifies which of
those repurchase rights are currently exercisable. 

        (c)   Except as set forth in Part 2.3(c) of the Company Disclosure Schedule, there is no: (i) outstanding
subscription, option, call, warrant or right (whether or not currently exercisable) to acquire any shares of the capital stock or other securities of the Company; (ii) outstanding security,
instrument or obligation that is or may become convertible into or exchangeable for any shares of the capital stock or other securities of the Company; or (iii) condition or circumstance that
may give rise to or provide a basis for the assertion of a claim by any Person to the effect that such Person is entitled to acquire or receive any shares of capital stock or other securities of the
Company. 

        (d)   Part 2.3(d) of the Company Disclosure Schedule sets forth accurate and complete information regarding
(i) the name and address of each stockholder of the Company and the number and type of shares held by each such stockholder; (ii) the name of each Person who holds an option to purchase
shares of capital stock of the Company pursuant to an equity incentive plan, including the number of shares subject to such option, current exercise price, date of grant or issuance and a list of any
agreements that contain acceleration or other change of control provisions; and (iii) the name of each Person who holds a warrant or other right to purchase shares of capital stock of the
Company, including the number of shares subject to such warrant, current exercise price, date of grant or issuance and any terms of acceleration or other change of control provisions. 

        2.4   Financial Statements. 

        (a)   The Company has delivered to the Purchaser or its Representatives the following financial statements (collectively, the
"Company Financial Statements"): (a) the audited balance sheets of the Company as of December 31, 2003 and December 31, 2002 and
the related audited statements of income and cash flows for the years ended December 31, 2003 and December 31, 2002; and (b) the unaudited consolidated balance sheet (the
"Company Unaudited Balance Sheet") of the Company as of December 31, 2004 (the "Balance Sheet
Date") and the related unaudited statement of income and cash flows for the period then ended. The Company Financial Statements are accurate and complete in all material
respects, have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods covered except as noted therein and present fairly in all
material respects the financial position of the Company as of the respective dates thereof and the results of operations and cash flows of the Company for the periods covered thereby;  provided, that,
the unaudited financial statements are subject to year-end audit adjustments (which will not be material either individually
or in the aggregate) and do not contain all footnotes required under generally accepted accounting principles. 

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        (b)   The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that:
transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability. The Company has
delivered to Purchaser or its Representatives accurate and complete copies of, all written descriptions of, and all policies, manuals and other documents promulgating, any internal accounting controls
which have been adopted and implemented by the Company and are presently in effect. The Company has not entered into any securitization transactions and "off-balance sheet arrangements"
(as defined in Item 303(c) of Regulation S-K under the Exchange Act) since September 1, 2001. 

        2.5   Absence of Changes. Except as set forth in Part 2.5 of the Company Disclosure Schedule, since the Balance Sheet
Date and through the date of this Agreement, (a) there has not been any Material Adverse Effect on the Company; (b) there has not been any loss, damage or destruction to, or any
interruption in the use of, any of the material assets of the Company; (c) the Company has not declared, accrued, set aside or paid any dividend or made any other distribution in respect of any
shares of capital stock or repurchased, redeemed or otherwise reacquired any shares of capital stock or other securities; (d) except as set forth in the Retention Arrangements, the Company has
not amended or waived any of its rights under, or authorized the acceleration of vesting under any provision of any of the Company's equity incentive plans or any other Contract evidencing or relating
to any equity award (whether payable in cash or stock); (e) the Company has not amended its certificate of incorporation or bylaws or other charter or organizational documents and the Company
has not effected any merger, consolidation, recapitalization, stock split or similar transaction; (f) the Company has not made any capital expenditure in excess of $150,000, purchased or
otherwise acquired or sold or otherwise transferred any asset to any other Person or leased or licensed any asset to or from any other Person, in each such case, other than in the ordinary course of
business or in connection with the disposal of obsolete assets; (g) the Company has not entered into any transaction or taken any other action outside the ordinary course of business that would
reasonably be expected to have a Material Adverse Effect on the Company; (h) the Company has not made any payment (whether of interest, principal or otherwise) with respect to any indebtedness
of the Company, excluding however ordinary course vendor and supplier financing as well as non-debt obligations pursuant to customer contracts and strategic partnerships; and
(i) the Company has not agreed, committed or offered (in writing or otherwise) to take any of the actions referred to above. 

        2.6   Title to Assets. Except as set forth in Part 2.6 of the Company Disclosure Schedule, the Company owns, and has
good and valid title to: (a) all assets reflected on the Company Unaudited Balance Sheet; and (b) all other assets reflected in the books and records of the Company as being owned by the
Company. Except as set forth in Part 2.6 of the Company Disclosure Schedule, all of said assets are owned by the Company free and clear of any Encumbrances, except for: (i) any lien for
current taxes not yet due and payable; (ii) any lien arising by operation of law, including, without limitation, materialmen's, mechanics, workmen's and repairmen's liens incurred in the
ordinary course of business; and (iii) minor liens that have arisen in the ordinary course of business and that do not (in any case or in the aggregate) materially detract from the value of the
assets subject thereto or materially impair the operations of the Company. The Company is the lessee of, and holds a valid leasehold interest in: (A) all assets reflected as leased on the
Company Unaudited Balance Sheet; and (B) all other assets reflected in the books and records of the Company as being leased by the Company, and enjoys undisturbed possession of such leased
assets. 

        2.7   Receivables; Customers. Except as set forth on Part 2.7 of the Company Disclosure Schedule, all existing accounts
receivable of the Company (including those accounts receivable reflected on the Company Unaudited Balance Sheet that have not yet been collected and those accounts receivable that have arisen since
the Balance Sheet Date and have not yet been collected): (a) represent valid obligations of customers of the Company arising from bona fide transactions entered into in the 

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ordinary
course of business; and (b) are current and, to the knowledge of the Shareholders, will be collected in full in the ordinary course of business, without any counterclaim or set off,
subject to an allowance for doubtful accounts reserved on the Company Unaudited Balance Sheet. Since the Balance Sheet Date, the Company has not made any loan to any Associate of the Company, other
than routine travel advances made to employees in the ordinary course of business. Part 2.7 of the Company Disclosure Schedule accurately identifies, and provides an accurate and complete
breakdown of the revenues received from, those customers of the Company in each of the fiscal years ended December 31, 2004 and December 31, 2003, which accounted for greater than 95% of
the Company's revenues in each of the fiscal years ended December 31, 2004 and December 31, 2003, respectively. Except as set forth in Part 2.7(c) of the Company Disclosure
Schedule, the Company has not received any written notice or other written communication or written information indicating that any customer identified in Part 2.7 of the Company Disclosure
Schedule may cease dealing with the Company or may otherwise materially reduce the volume of business transacted by such Person with the Company below current levels. 

        2.8   Equipment; Property. All material items of equipment and other material tangible assets owned by or leased to the Company
are adequate for the uses to which they are being put, are in good repair (ordinary wear and tear excepted) and are adequate for the conduct of the business of the Company in the manner in which such
business is currently being conducted. The Company does not own any real property or any interest (other than a leasehold interest) in real property. Part 2.8 of the Company Disclosure Schedule
sets forth a complete and accurate list of all real property leased, subleased or otherwise occupied by the Company and identifying the lessor, rental rate and lease term. 

        2.9   Intellectual Property.

        (a)   Part 2.9(a) of the Company Disclosure Schedule accurately identifies and describes: (i) in Part 2.9
(a)(i) of the Company Disclosure Schedule: (A) the title of the Registered IP and other principal IP owned by the Company that was provided to a current licensee of the Company after
January 1, 2001; (B) the jurisdiction in which such item of Registered IP has been registered or filed and the applicable registration or serial number; and (C) any other Person
that has an ownership interest in such Registered IP and IP; (ii) in Part 2.9(a)(ii) of the Company Disclosure Schedule: (A) the title of all Intellectual Property Rights
or Intellectual Property licensed to the Company that are currently in use by the Company the absence of which would cause a Material Adverse Effect on the Company and for which there is no
commercially reasonable substitute (other than any non-customized software that: (1) is so licensed solely in executable or object code form pursuant to a nonexclusive, internal use
software license, (2) is not incorporated into the products of the Company and (3) is generally available on standard terms for less than $10,500); (B) the corresponding
Contract(s) pursuant to which such Intellectual Property Rights or Intellectual Property is licensed to the Company; and (C) whether the license(s) so granted to the Company are exclusive or
nonexclusive; and (iii) in Part 2.9(a)(iii) of the Company Disclosure Schedule, each Contract pursuant to which any Person has been granted any license under, or otherwise has
received or acquired any right (whether or not currently exercisable) or interest in, any Intellectual Property or Intellectual Property Rights (collectively, the
"IP") of the Company. 

        (b)   The Company has provided to Purchaser a complete and accurate copy of each standard form of (i) employee agreement
containing any assignment or license of IP or any confidentiality provision; (ii) consulting or independent contractor agreement containing any assignment or license of IP or any
confidentiality provision; or (iii) confidentiality or nondisclosure agreement. Part 2.9(b) of the Company Disclosure Schedule accurately identifies each Company IP Contract that
deviates in any material respect from the corresponding standard form agreement provided to Purchaser. Except as set forth in Part 2.9(b) of the Company Disclosure Schedule and except for the
nonexclusive licenses and rights granted in Contracts identified in Part 2.9(a)(iii) of the Company Disclosure Schedule, the Company is not bound by, and no IP of the Company is subject 

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to,
any Contract containing any covenant or other provision that in any way limits or restricts the ability of the Company to use, exploit, assert, or enforce any IP of the Company anywhere in the
world. 

        (c)   Except as set forth in Part 2.9(c) of the Company Disclosure Schedule, the Company exclusively owns all right,
title and interest to and in the IP of the Company (other than IP licensed to the Company, as identified in Part 2.9(a)(ii) of the Company Disclosure Schedule) free and clear of any
Encumbrances (other than nonexclusive licenses granted pursuant to the Contracts listed in Part 2.9(a)(iii) of the Company Disclosure Schedule). Without limiting the generality of the
foregoing: (i) each Person who is or was an employee or independent contractor of the Company and who is or was involved in the creation or development of any IP of the Company has signed a
valid and enforceable agreement containing an irrevocable assignment of Intellectual Property Rights to the Company for which such Person is or was an employee or independent contractor and
confidentiality provisions protecting the IP of the Company; (ii) no Associate of the Company has any claim, right (whether or not currently exercisable) or interest to or in any IP of the
Company; (iii) to the knowledge of the Shareholders, no employee or independent contractor of the Company is bound by or otherwise subject to any Contract restricting him from performing his
duties for the Company or in breach of any Contract with any former employer or other Person concerning Intellectual Property Rights or confidentiality; and (iv) the
Company has taken commercially reasonable steps to maintain the confidentiality of and otherwise protect and enforce its rights in all its proprietary information. 

        (d)   All IP owned by the Company is valid, subsisting and enforceable. Without limiting the generality of the foregoing:
(i) each U.S. patent application and U.S. patent in which the Company has or purports to have an ownership interest was filed within one year of the first printed publication, public use or
offer for sale of each invention described in such U.S. patent application or U.S. patent; (ii) each foreign patent application and foreign patent in which the Company has or purports to have
an ownership interest was filed, or claims priority to a patent application filed, before the time at which each invention described in such foreign patent application or foreign patent was first made
available to the public; (iii) except as set forth in Part 2.9(d) of the Company Disclosure Schedule, to the knowledge of the Shareholders, no trademark (whether registered or
unregistered) or trade name owned, used, or applied for by the Company conflicts or interferes with any trademark (whether registered or unregistered) or trade name owned, used or applied for by any
other Person; (iv) to the knowledge of the Shareholders, each item of IP owned by the Company that is Registered IP is and at all times has been in material compliance with all material Legal
Requirements; (v) Part 2.9(d)(v) of the Company Disclosure Schedule accurately identifies and describes each filing, payment, and action that must be made or taken on or before
the date that is 120 days after the date of this Agreement in order to maintain each such item of Registered IP owned by the Company in full force and effect; (vi) the Company has
provided to Purchaser complete and accurate copies of all applications, correspondence and other material documents related to each such item of Registered IP owned by the Company; and (vii) to
the knowledge of the Shareholders, no interference, opposition, reissue, reexamination or other Legal Proceeding of any nature is or has been pending or, to the knowledge of the Shareholders,
threatened, in which the scope, validity or enforceability of any IP of the Company is being, has been or could reasonably be expected to be contested or challenged and there is no basis for a claim
that any IP of the Company is invalid or unenforceable. 

        (e)   Neither the execution, delivery or performance of any of the Transactional Agreements nor the consummation of any of the
Acquisition will, with or without notice or the lapse of time, result in or give any other Person the right or option to cause or declare: (i) a loss of, or Encumbrance on, any IP of the
Company; (ii) a breach of any Contract listed or required to be listed in Part 2.9(a)(ii) of the Company Disclosure Schedule; (iii) the release, disclosure or delivery 

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of
any IP of the Company by or to any escrow agent or other Person; or (iv) the grant, assignment or transfer to any other Person of any license or other right or interest under, to or in any
of the IP of the Company. 

        (f)    Except as set forth in Part 2.9(f) of the Company Disclosure Schedule, to the knowledge of the Shareholders, no
Person has infringed, misappropriated, or otherwise violated, and no Person is currently infringing, misappropriating or otherwise violating, any IP of the Company. 

        (g)   To the knowledge of the Shareholders, the Company has never infringed (directly, contributorily, by inducement or
otherwise), misappropriated or otherwise violated any Intellectual Property Right of any other Person. 

        (h)   None of the Software of the Company is subject to any "copyleft" or other obligation or condition (including any
obligation or condition under any "open source" license such as the GNU Public License, Lesser GNU Public License or Mozilla Public License) that: (i) could or does require, or could or does
condition the use or distribution of such Company Software on, the disclosure, licensing or distribution of any source code for any portion of such Company Software; or (ii) could or does
otherwise impose any limitation, restriction or condition on the right or ability of the Company to use or distribute any such Software. 

        (i)    Except as set forth on Part 2.9(i)(i) of the Disclosure Schedule, no source code for any Software of the
Company has been delivered, licensed or made available by the Company to any escrow agent or other Person who is not, as of the date of this Agreement, an employee of the Company. Except as set forth
on Part 2.9(i)(ii) of the Disclosure Schedule, the Company has no duty or obligation to deliver, license or make available the source code for any Software to any escrow agent or other
Person who is not, as of the date of this Agreement, an employee of the Company. No event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time) will, or
could reasonably be expected to, result in the delivery, license or disclosure of any source code for any Software of the Company to any other Person who is not, as of the date of this Agreement, an
employee of the Company. 

        2.10 Contracts. 

        (a)   Part 2.10(a) of the Company Disclosure Schedule identifies each Company Contract that constitutes a Material
Contract (other than end user license agreements for Software entered into in the ordinary course of business). The Company has delivered or made available to Purchaser or its Representatives an
accurate and complete copy of each Material Contract of the Company. Each Company Contract that constitutes a Material Contract of the Company is valid and in full force and effect, and is enforceable
in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief and
other equitable remedies. 

        (b)   Except as set forth in the applicable subsections of Part 2.10(b) of the Company Disclosure Schedule:
(i) the Company has not violated or breached in any material respect, or committed any default under, any Material Contract of the Company in any material respect; and, to the knowledge of the
Shareholders, no other Person has violated or breached, or committed any default under, any Material Contract of the Company; (ii) to the knowledge of the Shareholders, no event has occurred,
and no circumstance or condition exists, that (with or without notice or lapse of time) would reasonably be expected to: (A) result in a violation or breach of any of the provisions of any
Material Contract of the Company; (B) give any Person the right to declare a default or exercise any remedy under any Material Contract of the Company; (C) give any Person the right to
receive or require a rebate, chargeback or penalty under any Material Contract of the Company, other than in the ordinary course of business; (D) give any Person the right to accelerate the
maturity or performance of any Material Contract of the Company; (E) result in the 

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disclosure,
release or delivery of any Company Source Code; or (F) give any Person the right to cancel, terminate or modify any Material Contract of the Company; and (iii) the Company
has not received any written notice or other written communication regarding any actual or possible material violation or breach of, or material default under, any Material Contract of the Company, in
each case under clauses (i) through (iii), that would reasonably be expected to have a Material Adverse Effect on the Company. 

        2.11 Liabilities. The Company does not have, and will not become responsible for performing or discharging, any accrued,
contingent or other Liabilities, either matured or unmatured, except for: (a) Liabilities identified as such in the "liabilities" column of the Company Unaudited Balance Sheet or Liabilities
identified in the footnotes of any of the Company Financial Statements; (b) Liabilities that are not required under generally accepted accounting principles to be included in the "liabilities"
column of the Company Unaudited Balance Sheet or in the footnotes thereto; (c) current Liabilities that have been incurred by the Company since the Balance Sheet Date in the ordinary course of
business; (d) Liabilities for performance of obligations under Company Contracts, to the extent such Liabilities are readily ascertainable (in nature, scope and amount) from the copies of such
Company Contracts delivered or made available to Purchaser prior to the date of this Agreement; and (e) Liabilities described in reasonable specificity in any part of the Company Disclosure
Schedule. 

        2.12 Compliance with Legal Requirements. The Company is, and has at all times since December 31, 2001 been, in
compliance in all respects with all applicable Legal Requirements, except where the failure to be in compliance would not reasonably be expected to have a Material Adverse Effect on the Company.
Except as set forth in Part 2.12 of the Company Disclosure Schedule, since December 31, 2001, the Company has not received any written notice or other communication from any Governmental
Body or other Person regarding any actual or possible violation of, or failure to comply with, any Legal Requirement. 

        2.13 Certain Business Practices. Neither the Company nor, to the knowledge of the Shareholders, any director, officer, other
employee or agent of the Company acting in connection with the performance of his duties, has: (a) used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity; (b) made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns or violated any
provision of the Foreign Corrupt Practices Act of 1977, as amended; or (c) made any other unlawful payment. 

        2.14 Governmental Authorizations. The Governmental Authorizations held by the Company and identified in Part 2.14 of
the Company Disclosure Schedule are valid, in full force and effect and constitute all of the Governmental Authorizations necessary to enable the Company to conduct its business in the manner in which
such business is currently being conducted, except where the failure to hold such Governmental Authority would not reasonably be expected to have a Material Adverse Effect on the Company. The Company
is and has at all times since December 31, 2001 been in full compliance in all material respects with all of the terms and requirements of each such Governmental Authorization, and no event has
occurred that might (with or without notice or lapse of time) result in a material violation of any requirement of any such Governmental Authorization, or result in the termination or modification of
any such Governmental Authorization that could be expected to result in a Material Adverse Effect on the Company. 

        2.15 Tax Matters. 

        (a)   Except as set forth in Part 2.15(a) of the Company Disclosure Schedule, each of the Tax Returns required to be
filed by or on behalf of the Company with any Governmental Body with respect to any taxable period ending on or before the Closing Date (the "Company
Returns") (i) has been or will be filed on or before the applicable due date (including any extensions of such due date), and (ii) has been, or will be when
filed, prepared in all material respects in compliance 

9

 

with
all applicable Legal Requirements. All amounts shown on the Company Returns to be due on or before the Closing Date have been or will be paid on or before the Closing Date. 

        (b)   The Company Unaudited Balance Sheet fully accrues all actual and contingent liabilities for Taxes with respect to all
periods through the date of this Agreement in accordance with generally accepted accounting principles, except for liabilities for Taxes incurred since the date of the Company Unaudited Balance Sheet
in the operation of the business of the Company. 

        (c)   No Company Return has ever been audited by any Governmental Body. No extension or waiver of the limitation period
applicable to any of the Company Returns has been granted (by the Company or any other Person), and no such extension or waiver has been requested from the Company. 

        (d)   No claim or Legal Proceeding is pending or, to the knowledge of the Shareholders, has been threatened against or with
respect to the Company in respect of any material Tax. There are no unsatisfied Liabilities for material Taxes (including Liabilities for interest, additions to tax and penalties thereon and related
expenses) with respect to any notice of deficiency or similar document received by the Company with respect to any material Tax (other than liabilities for Taxes asserted under any such notice of
deficiency or similar document which are being contested in good faith by the Company and with respect to which adequate reserves for payment have been established on the Company Unaudited
Balance Sheet). There are no liens for material Taxes upon any of the assets of any of the Company except liens for current Taxes not yet due and payable. The Company has not entered into or become
bound by any agreement or consent pursuant to Section 341(f) of the Code (or any comparable provision of state or foreign Tax laws). The Company has not been or will be, required to include any
adjustment in taxable income for any tax period (or portion thereof) pursuant to Section 481 or 263A of the Code (or any comparable provision of state or foreign Tax laws) as a result of
transactions or events occurring, or accounting methods employed, prior to the Closing. No claim has ever been made by any Governmental Body in a jurisdiction in which the Company does not
file a Tax Return that the Company is or may be subject to taxation by that jurisdiction. 

        (e)   There is no agreement, plan, arrangement or other Contract covering, benefiting or relating to any Associate of the
Company that, considered individually or considered collectively with any other such Contracts, could reasonably be expected to give rise directly or indirectly to the payment of any amount that would
not be deductible pursuant to Section 280G or Section 162 of the Code (or any comparable provision of state or foreign Tax laws). The Company is not and has never been a party to or bound by
any tax indemnity agreement, tax sharing agreement, tax allocation agreement or similar Contract. The Company is not a party to any agreement to compensate any Person for excise taxes payable pursuant
to Section 4999 of the Code. 

        (f)    Other than as set forth in the Rescission Agreement, there is no Company Contract relating to allocating or sharing of
Taxes. The Company: (i) is not liable for Taxes of any other Person and is not currently under any contractual obligation to indemnify any Person with respect to any portion of such Person's
Taxes (except for customary agreements to indemnify lenders or security holders in respect of Taxes); and (ii) is not a party to or bound by any Contract providing for payments by the Company
with respect to any amount of Taxes of any other Person. 

        (g)   The Company has delivered to Purchaser or its Representatives accurate and complete copies of all its Tax Returns. The
Company has not previously elected to be treated as an S Corporation under Section 1361 of the Code. The Company has disclosed on its federal income Tax Returns all positions that could give
rise to a material understatement penalty within the meaning of Section 6662 of the Code or any similar Legal Requirement. 

10

 

        (h)   The Company has not participated and is not currently participating, in a "Listed Transaction" or a "Reportable
Transaction" within the meaning of Treasury Regulation Section 1.6011-4(b)(2) or in a similar transaction under any corresponding or similar Legal Requirement. 

        (i)    The Company has not been either a "distributing corporation" or a "controlled corporation" in a distribution of stock
intended to qualify for tax-free treatment under Section 355 of the Code (a) in the two years prior to the date of this Agreement or (b) which could otherwise
constitute part of a "plan" or "series of related transactions" (within the meaning of Section 355(e) of the Code) in conjunction with the Acquisition. 

        (j)    Neither the Company nor any Entity to whose Liabilities the Company has succeeded has filed or been included in a
consolidated, unitary or combined Tax Return with another Person, other than a group of which the Company is a common parent. 

        (k)   The Company is not and has never been a party to or bound by any tax indemnity agreement, tax sharing agreement, tax
allocation agreement or similar Contract. 

        (l)    Purchaser will not be required to deduct and withhold any amount pursuant to Section 1445(a) of the Code upon the
transfer of the Shares to Purchaser. 

        2.16 Employee and Labor Matters; Benefit Plans. 

        (a)   Part 2.16(a) of the Company Disclosure Schedule accurately sets forth, with respect to each employee of the
Company (including any employee who is on a leave of absence): (i) the name, title and date of hire of such employee, (ii) the aggregate dollar amount of the compensation (including
wages, salary, commissions, director's fees, fringe benefits, bonuses, profit-sharing payments and other payments or benefits of any type) received by such employee with respect to services performed
in the fiscal year ended December 31, 2004; (iii) such employee's annualized compensation as of March 17, 2005; and (iv) each Company Benefit Plan in which such employee
participates or is eligible to participate. Part 2.16(a) accurately sets forth, with respect to each independent contractor of the Company, the same information set forth in clauses
(i) through (iii) of the foregoing sentence. 

        (b)   Part 2.16(b) of the Company Disclosure Schedule accurately identifies each former employee of the Company who is
receiving or is scheduled to receive (or whose spouse or other dependent is receiving or is scheduled to receive) any benefits (other than continued involvement in 401(k) plans and stock option plans
and rights to insurance in accordance with COBRA) relating to such former employee's employment with the Company. 

        (c)   Except as set forth in Part 2.16(c) of the Company Disclosure Schedule, the employment of each of the Company's
employees is terminable by the Company at will. The Company has delivered or made available to Purchaser or its Representatives accurate and complete copies of all employee manuals and handbooks,
disclosure materials, policy statements and other materials relating to the employment of the Associates of the Company that the Company provides to such employees. Except as set forth in
Part 2.16(c) of the Company Disclosure Schedule, to the knowledge of the Shareholders, no employee
intends to terminate his employment with the Company, nor has any such employee threatened or expressed any intention to do so. 

        (d)   Except as set forth in Part 2.16(d) of the Company Disclosure Schedule, the Company is not a party to, or bound
by, any collective bargaining agreement or other Contract with a labor organization representing any of its employees, and there are no labor organizations representing, purporting to represent or, to
the knowledge of the Shareholders, seeking to represent any employees of the Company. There has never been, nor has there been any threat of, any strike, slowdown, work stoppage, lockout, job action,
union organizing activity, question concerning 

11

 

representation
or any similar activity or dispute, affecting the Company or any of its employees. Other than as a result of the Acquisition, no event has occurred, and no condition or circumstance
exists, that might directly or indirectly give rise to or provide a basis for the commencement of any such strike, slowdown, work stoppage, lockout, job action, union organizing activity, question
concerning representation or any similar activity or dispute. 

        (e)   The Company is not or has never been engaged, in any unfair labor practice within the meaning of the National Labor
Relations Act. Except as set forth in Part 2.16(e) of the Company Disclosure Schedule, as of the date of this Agreement, there is no Legal Proceeding, claim, labor dispute or grievance pending
or, to the knowledge of the Shareholders, threatened or reasonably anticipated relating to any employment contract, privacy right, labor dispute, wages and hours, leave of absence, plant closing
notification, workers' compensation policy, long-term disability policy, harassment, retaliation, immigration, employment statute or regulation, safety or discrimination matter involving
any Associate of the Company, including charges of unfair labor practices or discrimination complaints. 

        (f)    No current or former independent contractor of the Company could be deemed to be a misclassified employee. No independent
contractor is eligible to participate in any Benefit Plan of the Company. 

        (g)   Part 2.16(g) of the Company Disclosure Schedule contains an accurate and complete list as of the date hereof of
each Benefit Plan of the Company and each Benefit Agreement of the Company. With respect to each Benefit Plan of the Company, the Company has delivered or made available to Purchaser or its
Representatives: (i) an accurate and complete copy of all documents setting forth the material terms of such Benefit Plan of the Company, including all amendments thereto and all related trust
documents; (ii) a complete and accurate copy of the annual report (Form Series 5500 and all schedules and financial statements attached thereto), if any, required under ERISA or the
Code, with respect to such Benefit Plan of the Company for the three most recent plan years; (iii) if such Benefit Plan of the Company is subject to the minimum funding standards of
Section 302 of ERISA, the most recent annual and periodic accounting of such Benefit Plan's assets; (iv) the most recent summary plan description together with the summaries of material
modifications thereto, if any, required under ERISA with respect to such Benefit Plan; (v) accurate and complete copies of all Contracts relating to such Benefit Plan, including service
provider agreements, insurance contracts, minimum premium contracts, stop-loss agreements, investment management agreements, subscription and
participation agreements and recordkeeping agreements; (vi) all written materials provided to any Associate of the Company relating to such Company Benefit Plan, including acceleration of
payments or vesting schedules or other events that would result in any Liability to the Company or any Affiliate of the Company; (vii) all forms and related notices required under COBRA with
respect to such Company Benefit Plan; (viii) if such Benefit Plan is intended to be qualified under Section 401(a) of the Code, all discrimination tests, if any, required under the Code
for such Company Benefit Plan for the three most recent plan years; and (ix) if such Benefit Plan is intended to be qualified under Section 401(a) of the Code, the most recent United
States Internal Revenue Service determination letter (or opinion letter, if applicable) received with respect to such Benefit Plan. 

        (h)   Each of the Benefit Plans of the Company has been operated and administered in all material respects in accordance with
its terms and with applicable Legal Requirements, including ERISA, the Code, applicable U.S. and non-U.S. securities laws and regulations and applicable foreign Legal Requirements. The
Company has performed all obligations required to be performed by them under each Benefit Plan of the Company and the Company is not in default or violation of the terms of any Benefit Plan. To the
knowledge of the Shareholders, there has been no default or violation by any other party with respect to any term of any Benefit Plan of the Company. Any Benefit Plan of the Company intended to be
qualified under Section 401(a) of the Code has 

12

 

obtained
a favorable determination letter (or opinion letter, if applicable) as to its qualified status under the Code, and to the knowledge of the Shareholders, there is not and there has never been
any event, condition or circumstance that could reasonably be expected to result in disqualification under the Code. No "prohibited transaction," within the meaning of Section 4975 of the Code
or Sections 406 and 407 of ERISA (other than a transaction exempt under Section 408 of ERISA), has occurred with respect to any Benefit Plan of the Company. As of the date of this Agreement,
there are no claims or Legal Proceedings pending, or, to the knowledge of the Shareholders, threatened or reasonably anticipated (other than routine claims for benefits), against any Benefit Plan of
the Company or against the assets of any Benefit Plan of the Company. Each Benefit Plan of the Company can be amended, terminated or otherwise discontinued after the Closing in accordance with its
terms, without Liability to Purchaser or the Company (other than ordinary administration expenses). All contributions, premiums and expenses to or in respect of each Benefit Plan of the Company have
been paid in full or, to the extent not yet due, have been adequately accrued on the Company Unaudited Balance Sheet. 

        (i)    Neither the Company nor any Affiliate of the Company has ever maintained, established, sponsored, participated in, or
contributed to any: (i) Benefit Plan subject to Section 302 or Title IV of ERISA or Section 412 of the Code; (ii) "multiemployer plan" within the meaning of
Section 3(37) of ERISA; (iii) "multiple employer plan" (within the meaning of Section 413(c) of the Code); or (iv) Benefit Plan in which stock of any of the Company or any
Affiliate of the Company is or was held as a "plan asset" within the meaning of the United States Department of Labor Regulations Section 2510.3-101. 

        (j)    Except as set forth in Part 2.16(j) of the Company Disclosure Schedule, neither the execution of this Agreement
nor the consummation of the Acquisition (either alone or in combination with another event, whether contingent or otherwise) will (i) result in any bonus, severance or other payment or
obligation to any Associate of the Company (whether or not under any Benefit Plan of the Company);
(ii) materially increase the benefits payable or provided to, or result in a forgiveness of any indebtedness of, any Associate of the Company; (iii) accelerate the vesting, funding or
time of payment of any compensation, equity award or other similar benefit; (iv) result in any "parachute payment" under Section 280G of the Code (whether or not such payment is
considered to be reasonable compensation for services rendered); or (v) cause any compensation to fail to be deductible under Section 162(m) of the Code or any other provision of the
Code or any similar foreign Legal Requirement. Without limiting the generality of the foregoing (and except as set forth in Part 2.16(j) of the Company Disclosure Schedule), the consummation of
the Acquisition will not result in the acceleration of vesting of any unvested Company Options. 

        (k)   The Company (i) is, and at all times has been, in compliance in all material respects with all applicable Legal
Requirements respecting employment, employment practices, terms and conditions of employment and wages and hours, in each case, with respect to Associates of the Company, including the health care
continuation requirements of COBRA, the requirements of the Family Medical Leave Act of 1993, as amended, the requirements of the Health Insurance Portability and Accountability Act of 1996, as
amended, and any similar provisions of state law; (ii) has withheld and reported all amounts required by any Legal Requirement or Contract to be withheld and reported with respect to wages,
salaries and other payments to any Associate of the Company; (iii) has no Liability for any arrears of wages or any Taxes or any penalty for failure to comply with the Legal Requirements
applicable to any of the foregoing; and (iv) has no Liability for any payment to any trust or other fund governed by or maintained by or on behalf of any Governmental Body with respect to
unemployment compensation benefits, social security or other benefits or obligations for any Associate of the Company (other than routine payments to be made in the normal course of business and
consistent with past practice). 

13

 

        2.17 Environmental Matters. The Company: (i) is and has been in compliance in all material respects with, and has not
been and is not in material violation of or subject to any material Liability under, any applicable Environmental Requirements; and (ii) possesses all material permits and other Governmental
Authorizations required under applicable Environmental Requirements, and is in compliance in all material respects with the terms and conditions thereof. 

        2.18 Insurance. Part 2.18 of the Company Disclosure Schedule accurately sets forth, with respect to each insurance
policy (including directors' and officers' liability insurance but excluding those insurance policies set forth in Part 2.16(a) (or any annex thereto) of the Company Disclosure Schedule)
maintained by or at the expense of the Company: (a) the name of the insurance carrier that issued such policy and policy number of such policy; (b) whether such policy made is a "claims
made" or "occurrences" policy; (c) the annual premiums associated with such policies; and (d) a description of any claims pending under any insurance policies set forth on
Part 2.18 of the Disclosure Schedule. The Company has delivered or made available to Purchaser or its Representatives accurate and complete copies of all such insurance policies. Each of such
policies is valid, enforceable and in full force and effect. The Company has not received any written notice or other written communication regarding any actual or possible: (i) cancellation or
invalidation of any insurance policy; (ii) refusal or denial of any coverage, reservation of rights or rejection of any material claim under any insurance policy; or (iii) material
adjustment in the amount of the premiums payable with respect to any insurance policy. All information provided to insurance carriers (in applications and otherwise) on behalf of the Company is
accurate and complete in all material respects. 

        2.19 Transactions with Affiliates. Except as set forth on Part 2.19 of the Company Disclosure Schedule, the Company is
not a party to any agreement or Contract with any Affiliate of the Company other than on an arms-length basis. 

        2.20 Legal Proceedings; Orders. 

        (a)   There is no pending Legal Proceeding, and, to the knowledge of the Shareholders, no Person has threatened in writing to
commence any Legal Proceeding: (i) against the Company, any Associate of the Company (in his or her capacity as such) or any of the assets owned or used by the Company; or (ii) that
challenges, or that may have the effect of preventing, delaying, making illegal or otherwise interfering with, the Acquisition. To the knowledge of the Shareholders, no event has occurred, and no
claim or dispute exists, that would reasonably be expected to give rise to or serve as a basis for the commencement of any such Legal Proceeding. 

        (b)   There is no order, writ, injunction, judgment or decree to which the Company, or any of the assets owned or used by the
Company, is subject. To the knowledge of the Shareholders, no officer of the Company is subject to any order, writ, injunction, judgment or decree that prohibits such officer or other employee from
engaging in or continuing any conduct, activity or practice relating to the business of the Company. 

        2.21 Authority; Binding Nature of Agreement. Each Shareholder represents that, (a) at the Closing, it will have good
and valid title to the number of shares of capital stock of the Company set forth on Part 2.3(d) of the Company Disclosure Schedule, free and clear of all liens, Encumbrances, equities or
claims, (b) it has the absolute and unrestricted right, power and authority to enter into and to perform its obligations under each of the Transactional Agreements to which such Shareholder is
or may become a party, (c) this Agreement constitutes its legal, valid and binding obligation, enforceable against such Shareholder in accordance with its terms, subject to: (i) laws of
general application relating to bankruptcy, insolvency and the relief of debtors; and (ii) rules of law governing specific performance, injunctive relief and other equitable remedies. 

        2.22 Non-Contravention; Consents. Subject to obtaining the consents, approvals, authorizations or declarations or
making the filings set forth on Part 2.22 of the Company Disclosure Schedule, neither 

14

 

the
execution and delivery of any of the Transactional Agreements, nor the consummation or performance of the Acquisition, will directly or indirectly (with or without notice or lapse of time):
(a) conflict with or result in a violation or breach of any of the terms, conditions or provisions of the certificate of incorporation, bylaws or other charter or organizational documents of
the Company or any of its Subsidiaries; (b) give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization held by the Company;
(c) give any Person the right to (i) declare a default or exercise any remedy under any Material Contract of the Company, (ii) accelerate the maturity or performance of any
Material Contract of the Company or (iii) cancel, terminate or modify any Material Contract of the Company; or (d) result in the imposition or creation of any Encumbrance upon any
assets, except for conflicts, violations, breaches or acts that would not, individually or in the aggregate, be expected to have a Material Adverse Effect on the Company. Except as set forth in
Part 2.22 of the Company Disclosure Schedule, the Company is not nor will it be required to make any filing with or give any notice to, or to obtain any Consent from, any Person in connection
with the execution and delivery of any Transactional Agreement or the consummation of the Acquisition. 

        2.23 Financial Advisor. Except as set forth on Part 2.23 of the Company Disclosure Schedule, neither the Company nor
any Shareholder has agreed or become obligated to pay, or has taken any action that might result in, any Person claiming to be entitled to receive, any brokerage commission, finder's fee or similar
commission or fee in connection with the Acquisition. 

        2.24 Securities Law Matters. Each Shareholder understands that neither the Purchaser Series 1 Stock nor the shares of
common stock of the Purchaser issuable upon conversion thereof (together, the "Purchaser Securities") being issued pursuant to Section 1.2 hereof
have been registered under the Securities Act. Each Shareholder also understands that the Purchaser Securities are being offered and sold pursuant to an exemption from registration contained in the
Securities Act based in part upon such Shareholder's representations contained in this Agreement. Each Shareholder hereby represents and warrants as follows: 

        (a)   Shareholder has substantial experience in evaluating and investing in private placement transactions of securities in
companies similar to the Purchaser so that it is capable of evaluating the merits and risks of its investment in the Purchaser and has the capacity to protect its own interests. Shareholder must bear
the economic risk of this investment indefinitely unless the Securities are registered pursuant to the Securities Act, or an exemption from registration is available. Shareholder understands that the
Purchaser has no present intention of registering the Securities. Shareholder also understands that there is no assurance that any exemption from registration under the Securities Act will be
available and that, even if available, such exemption may not allow Shareholder to transfer all or any portion of the Securities under the circumstances, in the amounts or at the times Shareholder
might propose. 

        (b)   Shareholder is acquiring the Securities for Shareholder's own account for investment only, and not with a view towards
their distribution. Shareholder represents that by reason of its, or of its management's, business or financial experience, Shareholder has the capacity to protect its own interests in connection with
the Acquisition. Further, Shareholder is aware of no publication of any advertisement in connection with the Acquisition. Shareholder has received Purchaser's financial statements and has had an
opportunity to discuss the Purchaser's business, management and financial affairs with directors, officers and management of the Purchaser and has had the opportunity to review the Purchaser's
operations and facilities. Shareholder represents that it has had the opportunity to ask questions of and receive answers from, the Purchaser and its management regarding the terms and conditions of
this investment. 

        (c)   Shareholder represents that it is an accredited investor within the meaning of Regulation D under the Securities
Act. 

15

 

        (d)   Shareholder acknowledges and agrees that the Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available. Shareholder represents that it has been advised or is aware of the provisions of Rule 144 promulgated under the
Securities Act as in effect from time to time, which permits limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions. 

        (e)   If the Shareholder is an individual, then the Shareholder resides in the state or province identified in the address of
set forth on Exhibit B; if the Shareholder is a partnership, corporation, limited liability company or other entity, then the office or offices
of the Shareholder in which its investment decision was made is located at the address or addresses of the Purchaser set forth on Exhibit B. 

Section 3.  REPRESENTATIONS AND WARRANTIES OF PURCHASER  

        Purchaser represents and warrants, to and for the benefit of the Shareholder Indemnitees as follows (it being understood that, for the purposes of this
Section 3, all references to the Purchaser shall be deemed to include the Purchaser and its Subsidiaries): 

        3.1   Subsidiaries; Due Organization. The Purchaser is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware. Each of the Purchaser's Subsidiaries is duly organized, validly existing and in good standing under the laws of its state or country of organization. Except
where the failure to be so qualified or in good standing in such jurisdiction would not reasonably be expected to have a Material Adverse Effect on the Purchaser, the Purchaser and each of its
Subsidiaries is qualified, authorized, registered or licensed to do business as a foreign corporation and is in good standing in each of the jurisdictions listed in Part 3.1 of the Purchaser
Disclosure Schedule. Except as set forth in Part 3.1 of the Purchaser Disclosure Schedule, the Purchaser has no Subsidiaries and does not own any capital stock of, or any equity interest of any
nature in, any Entity. The Purchaser has all necessary power and authority: (i) to conduct its business in the manner in which its business is currently being conducted; (ii) to own and
use its assets in the manner in which its assets are currently owned and used; and (iii) to perform its obligations under all Material Contracts to which it is a party. The Purchaser is not
obligated to make, and is not a party to any Contract under which it may become obligated to make, any future investment in or capital contribution to any other Entity. The Purchaser has never
conducted any business under or otherwise used, for any purpose or in any jurisdiction, any fictitious name, assumed name, trade name or other names other than those incorporating (in any
configuration) "Aptas", "Aptas, Inc." or "Nextron". 

        3.2   Organizational Documents; Records. The Purchaser has delivered to the Company or its Representatives accurate and
complete copies of the certificate of incorporation (if applicable), bylaws and other charter and organizational documents, including all amendments thereto, of the Purchaser and its Subsidiaries.
Part 3.2 of the Purchaser Disclosure Schedule lists, and the Purchaser has delivered to the Company or its Representatives, accurate and complete copies of: (a) the charters of all
committees of the board of directors of the Purchaser and its Subsidiaries; and (b) any code of conduct or similar policy adopted by the Purchaser or its Subsidiaries or by their respective
board of directors, or any committee of their board of directors. The Purchaser has delivered to the Company or its Representatives accurate and complete copies of (i) the stock records and
stock certificates of the Purchaser and its Subsidiaries; and (b) the minutes and other records of the formal duly noticed meetings and other proceedings (including any actions taken by written
consent or otherwise without a meeting) of the stockholders of the Purchaser and its Subsidiaries, the board of directors of the Purchaser and its Subsidiaries and all committees of the board of
directors of the Purchaser and its Subsidiaries. There have been no duly noticed and called meetings or other proceedings of the stockholders of the Purchaser or its Subsidiaries, the board of
directors of the Purchaser or its Subsidiaries or any committee of the board of directors of the Purchaser or its Subsidiaries that are not fully reflected in such minutes or other records. The stock
records and minute books of the Purchaser 

16

 

and
its Subsidiaries are accurate, up-to-date and complete and have been maintained in accordance with commercially reasonable business practices in all material respects. 

        3.3   Capitalization.

        (a)   Intentionally Omitted. 

        (b)   Following the filing of the Purchaser Restated Certificate with the Secretary of State of the State of Delaware, and,
after taking into account the proposed recapitalization of the Purchaser, but prior to the closing of the transactions contemplated by this Agreement and the Series 2 Preferred Stock financing
of Purchaser, pursuant to which all shares of Series B Preferred Stock shall be converted into shares of Purchaser Series 1 Stock on a 4.01 to 1.0 basis, and pursuant to which all shares
of Series A Preferred Stock shall be converted into shares of Purchaser Series 1 Stock on a 3.01 to 1.0 basis (the "Recapitalization"),
the authorized capital stock of the Purchaser will consist of: (i) 50,000,000 shares of common stock, $0.001 par value per share, of which 100,524 shares will have been issued and will be
outstanding; and (ii) 50,000,000 shares of preferred stock, $0.001 par value per share, of which (x) 16,000,000 shares will be designated as Series 1 Preferred Stock, of which
4,955,221 shares will have been issued and will be outstanding, (y) 25,000,000 shares are designated as Series 2 Preferred Stock, none of which will be issued and outstanding. 

        (c)   Following the filing of the Purchaser Restated Certificate with the Secretary of State of the State of Delaware, and,
after taking into account the proposed recapitalization of the Purchaser, but prior to the closing of the transactions contemplated by this Agreement and the Series 2 Preferred Stock financing
of Purchaser, there are (i) 16,667 shares of common stock of Purchaser reserved for issuance under Purchaser's 1999 Equity Incentive Plan, all of which have been granted and are outstanding;
(ii) 3,725,000 shares of common stock of Purchaser reserved for issuance under Purchaser's 2004 Equity Incentive Plan, of which options to purchase 1,069,570 shares of common stock of Purchaser
have been granted and are outstanding; and (iii) outstanding warrants to purchase (x) 75,258 shares of common stock of the Purchaser; and (y) 338,812 shares of Purchaser
Series 1 Stock. 

        (d)   The Purchaser does not hold any shares of its capital stock in its treasury. All of the outstanding shares of capital
stock of the Purchaser have been (i) duly authorized and validly issued and (ii) are fully paid and non-assessable. 

        (e)   Except as set forth in Part 3.3(e) of the Purchaser Disclosure Schedule: (i) none of the outstanding shares
of capital stock of the Purchaser is entitled or subject to any preemptive right, right of participation, right of maintenance or any similar right; (ii) none of the outstanding shares of
capital stock of the Purchaser is subject to any right of first refusal in favor of the Purchaser; and (iii) there is no Purchaser Contract relating to the voting or registration of, or
restricting any Person from purchasing, selling, pledging or otherwise disposing of (or granting any option or similar right with respect to), any shares of capital stock of the Purchaser. The
Purchaser is not obligated, and is not bound, by any Contract pursuant to which it may become obligated, to repurchase, redeem or otherwise acquire any outstanding shares of capital stock of the
Purchaser or other securities. All securities of the Purchaser and its Subsidiaries have been issued and granted in compliance with all applicable securities laws and other applicable Legal
Requirements and all requirements set forth in applicable Contracts. Part 3.3(e) of the Purchaser Disclosure Schedule accurately and completely describes all repurchase rights held by the
Purchaser with respect to shares of capital stock of the
Purchaser (including shares issued pursuant to the exercise of stock options), and specifies which of those repurchase rights are currently exercisable. 

        (f)    Except as set forth in Section 3.3(c) above and Part 3.3(f) of the Purchaser Disclosure Schedule, there is
no: (i) outstanding subscription, option, call, warrant or right (whether or not 

17

 

currently
exercisable) to acquire any shares of the capital stock or other securities of the Purchaser; (ii) outstanding security, instrument or obligation that is or may become convertible
into or exchangeable for any shares of the capital stock or other securities of the Purchaser; or (iii) condition or circumstance that may give rise to or provide a basis for the assertion of a
claim by any Person to the effect that such Person is entitled to acquire or receive any shares of capital stock or other securities of the Purchaser. 

        (g)   Part 3.3(g) of the Purchaser Disclosure Schedule sets forth, as of the date of this Agreement, accurate and
complete information regarding (i) the name and address of each stockholder of the Company and the number and type of shares held by each such stockholder; (ii) the name of each Person
who holds an option to purchase shares of capital stock of the Company pursuant to an equity incentive plan, including the number of shares subject to such option, current exercise price, date of
grant or issuance and a list of any agreements that contain acceleration or other change of control provisions; and (iii) the name of each Person who holds a warrant or other right to purchase
shares of capital stock of the Company, including the number of shares subject to such warrant, current exercise price, date of grant or issuance and any terms of acceleration or other change of
control provisions. 

        (h)   The rights, preferences and privileges of the Purchaser Securities will be as set forth on the Restated Certificate of
Incorporation of the Company, substantially in the form attached hereto as Exhibit C, to be filed with the Secretary of State of the State of
Delaware on or prior to the Closing Date (the "Purchaser Restated Certificate"). When issued in compliance with the provisions of this Agreement and the
Certificate of Incorporation of Purchaser, the Purchaser Securities will be validly issued, fully paid and nonassessable, and will be free of any liens or encumbrances;  provided, however, that the
Purchaser Securities may be subject to restrictions on transfer under state and/or federal securities laws as set forth
herein or as otherwise required by such laws at the time a transfer is proposed. 

        3.4   Financial Statements.

        (a)   The Purchaser has delivered to the Company or its Representatives the following financial statements (collectively, the
"Purchaser Financial Statements"): (a) the unaudited balance sheets of the Company as of December 31, 2003 and December 31, 2002
and the related audited statements of income and cash flows for the years ended December 31, 2003 and December 31, 2002; and (b) the unaudited consolidated balance sheet (the
"Purchaser Unaudited Balance Sheet") of the Purchaser as of December 31, 2004 and the related unaudited statement of income and cash flows for
the period then ended. The Purchaser Financial Statements are accurate and complete in all material respects, have
been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods covered except as noted therein and present fairly in all material
respects the financial position of the Purchaser as of the respective dates thereof and the results of operations and cash flows of the Purchaser for the periods covered thereby;  provided, that, the
unaudited financial statements are subject to year-end audit adjustments (which will not be material either individually
or in the aggregate) and do not contain all footnotes required under generally accepted accounting principles. 

        (b)   The Purchaser maintains a system of internal accounting controls sufficient to provide reasonable assurance that:
transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability. The Purchaser has
delivered to the Company or its Representatives accurate and complete copies of, all written descriptions of, and all policies, manuals and other documents promulgating, any internal accounting
controls which have been adopted and implemented by the Purchaser and are presently in effect. The Purchaser has not entered into any securitization 

18

 

transactions
and "off-balance sheet arrangements" (as defined in Item 303(c) of Regulation S-K under the Exchange Act) since September 1, 2001. 

        3.5   Absence of Changes. Except as set forth in Part 2.5 of the Purchaser Disclosure Schedule, since the Balance Sheet
Date and through the date of this Agreement, (a) there has not been any Material Adverse Effect on the Purchaser; (b) there has not been any loss, damage or destruction to, or any
interruption in the use of, any of the material assets of the Purchaser; (c) the Purchaser has not declared, accrued, set aside or paid any dividend or made any other distribution in respect of
any shares of capital stock or repurchased, redeemed or otherwise reacquired any shares of capital stock or other securities; (d) the Purchaser has not amended or waived any of its rights
under, or authorized the acceleration of vesting under any provision of any of the Company's equity incentive plans or any other Contract evidencing or relating to any equity award (whether payable in
cash or stock); (e) except as contemplated by the Purchaser Restated Certificate, the Purchaser has not amended its certificate of incorporation or bylaws or other charter or organizational
documents and the Purchaser has not effected any merger, consolidation, recapitalization, stock split or similar transaction; (f) the Purchaser has not made any capital expenditure in excess of
$150,000, purchased or otherwise acquired or sold or otherwise transferred any asset to any other Person or leased or licensed any asset to or from any other Person, in each such case, other than in
the ordinary course of business or in connection with the disposal of obsolete assets; (g) the Purchaser has not entered into any transaction or taken any other action outside the ordinary
course of business that would reasonably be expected to have a Material Adverse Effect on the Purchaser; (h) the Purchaser has not made any payment (whether of interest, principal or otherwise)
with respect to any indebtedness of the Purchaser, excluding however ordinary course vendor and supplier financing as well as non-debt obligations pursuant to customer contracts and
strategic partnerships; and (i) the Purchaser has not agreed, committed or offered (in writing or otherwise) to take any of the actions referred to above. 

        3.6   Title to Assets. The Purchaser owns, and has good and valid title to: (a) all assets reflected on the Purchaser
Unaudited Balance Sheet; and (b) all other assets reflected in the books and records of the Purchaser as being owned by the Purchaser. All of said assets are owned by the Purchaser free and
clear of any Encumbrances, except for: (i) any lien for current taxes not yet due and payable; (ii) any lien arising by operation of law, including, without limitation, materialmen's,
mechanics, workmen's and repairmen's liens incurred in the ordinary course of business; and (iii) minor liens that have arisen in the ordinary course of business and that do not (in any case or
in the aggregate) materially detract from the value of the assets subject thereto or materially impair the operations of the Purchaser. The Purchaser is the lessee of, and holds a valid leasehold
interest in: (A) all assets reflected as leased on the Purchaser Unaudited Balance Sheet; and (B) all other assets reflected in the books and records of the Purchaser as being leased by
the Purchaser, and enjoys undisturbed possession of such leased assets. 

        3.7   Receivables; Customers. Except as set forth on Part 3.7 of the Purchaser Disclosure Schedule, all existing
accounts receivable of the Purchaser (including those accounts receivable reflected on the Purchaser Unaudited Balance Sheet that have not yet been collected and those accounts receivable that have
arisen since the Balance Sheet Date and have not yet been collected): (a) represent valid obligations of customers of the Purchaser arising from bona fide transactions entered into in the
ordinary course of business; and (b) are current and, to the knowledge of the Purchaser, will be collected in full in the ordinary course of business, without any counterclaim or set off,
subject to an allowance for doubtful accounts reserved on the Purchaser Unaudited Balance Sheet. Since the Balance Sheet Date, the Purchaser has not made any loan to any Associate of the Purchaser,
other than routine travel advances made to employees in the ordinary course of business. Part 3.7 of the Purchaser Disclosure Schedule accurately identifies, and provides an accurate and
complete breakdown of the revenues received from, each of the two (2) largest customers of the Purchaser in each of the fiscal years ended December 31, 2004 and December 31, 2003,
which customers accounted for greater than 

19

 

95%
of the Purchaser's revenues in each of the fiscal years ended December 31, 2004 and December 31, 2003, respectively. The Purchaser has not received any written notice or other
written communication or written information indicating that any customer identified in Part 3.7 of the Purchaser Disclosure Schedule may cease dealing with the Purchaser or may otherwise
materially reduce the volume of business transacted by such Person with the Purchaser below current levels. 

        3.8   Equipment; Property. All material items of equipment and other material tangible assets owned by or leased to the
Purchaser are adequate for the uses to which they are being put, are in good repair (ordinary wear and tear excepted) and are adequate for the conduct of the business of the Purchaser in the manner in
which such business is currently being conducted. The Purchaser does not own any real property or any interest (other than a leasehold interest) in real property. Part 3.8 of the Disclosure
Schedule sets forth a complete and accurate list of all real property leased, subleased or otherwise occupied by the Purchaser and identifying the lessor, rental rate and lease term. 

        3.9   Intellectual Property.

        (a)   Part 3.9(a) of the Purchaser Disclosure Schedule accurately identifies and describes: (i) in
Part 3.9 (a)(i) of the Purchaser Disclosure Schedule: (A) the title of the Registered IP and other principal IP owned by the Purchaser that was provided to a current licensee of
the Purchaser after January 1, 2001; (B) the jurisdiction in which such item of Registered IP has been registered or filed and the applicable registration or serial number; and
(C) any other Person that has an ownership interest in such Registered IP and IP; (ii) in Part 3.9(a)(ii) of the Purchaser Disclosure Schedule: (A) the title of all
Intellectual Property Rights or Intellectual Property licensed to the Purchaser that are currently in use by the Company the absence of which would cause a Material Adverse Effect on the Purchaser and
for which there is no commercially reasonable substitute (other than any non-customized software that: (1) is so licensed solely in executable or object code form pursuant to a
nonexclusive, internal use software license, (2) is not incorporated into the products of the Purchaser and (3) is generally available on standard terms for less than $10,500);
(B) the corresponding Contract(s) pursuant to which such Intellectual Property Rights or Intellectual Property is licensed to the Purchaser; and (C) whether the license(s) so granted to
the Purchaser are exclusive or nonexclusive; and (iii) in Part 3.9(a)(iii) of the Purchaser Disclosure Schedule, each Contract pursuant to which any Person has been granted any
license under, or otherwise has received or acquired any right (whether or not currently exercisable) or interest in, any Intellectual Property or Intellectual Property Rights (collectively, the
"IP") of the Purchaser. 

        (b)   The Purchaser has provided to the Company a complete and accurate copy of each standard form of (i) employee
agreement containing any assignment or license of IP or any confidentiality provision; (ii) consulting or independent contractor agreement containing any assignment or license of IP or any
confidentiality provision; or (iii) confidentiality or nondisclosure agreement. Part 3.9(b) of the Purchaser Disclosure Schedule accurately identifies each Purchaser IP Contract that
deviates in any material respect from the corresponding standard form agreement provided to the Company. Except for the nonexclusive licenses and rights granted in Contracts identified in
Part 3.9(a)(iii) of the Purchaser Disclosure Schedule, the Purchaser is not bound by, and no IP of the Company is subject to, any Contract containing any covenant or other provision that
in any way limits or restricts the ability of the Purchaser to use, exploit, assert, or enforce any IP of the Purchaser anywhere in the world. has provided to Purchaser a complete and accurate copy of
each standard form of Purchaser IP Contract, including each standard form of: (i) end user license agreement; (ii) development agreement; (iii) distributor or reseller agreement;
(iv) employee agreement containing any assignment or license of IP or any confidentiality provision; (v) consulting or independent contractor agreement containing any assignment or
license of IP or any confidentiality provision; or (vi) confidentiality or nondisclosure agreement. Part 3.9(b) of the Purchaser Disclosure Schedule accurately identifies each Purchaser
IP Contract that deviates in any material respect from the corresponding standard form agreement provided to 

20

 

Purchaser.
Except for the nonexclusive licenses and rights granted in Contracts identified in Part 3.9(a)(iii) of the Purchaser Disclosure Schedule, the Purchaser is not bound by, and no
IP of the Purchaser is subject to, any Contract containing any covenant or other provision that in any way limits or restricts the ability of the Purchaser to use, exploit, assert, or enforce any IP
of the Purchaser anywhere in the world. 

        (c)   The Purchaser exclusively owns all right, title and interest to and in the IP of the Purchaser (other than IP licensed to
the Purchaser, as identified in Part 3.9(a)(i) of the Purchaser Disclosure Schedule) free and clear of any Encumbrances (other than nonexclusive licenses granted pursuant to the
Contracts listed in Part 3.9(a)(iii) of the Purchaser Disclosure Schedule). Without limiting the generality of the foregoing: (i) each Person who is or was an employee or
independent contractor of the Purchaser and who is or was involved in the creation or development of any IP of the Purchaser has signed a valid and enforceable agreement containing an irrevocable
assignment of Intellectual Property Rights to the Purchaser for which such Person is or was an employee or independent contractor and confidentiality provisions protecting the IP of the Purchaser;
(ii) no Associate of the Purchaser has any claim, right (whether or not currently exercisable) or interest to or in any IP of the Purchaser; (iii) no employee or independent contractor
of the Purchaser is bound by or otherwise subject to any Contract restricting him from performing his duties for the Purchaser or in breach of any Contract with any former employer or other Person
concerning Intellectual Property Rights or confidentiality; and (iv) the Purchaser has taken commercially reasonable steps to maintain the confidentiality of and otherwise protect and enforce
its rights in all its proprietary information. 

        (d)   All IP owned by the Purchaser is valid, subsisting and enforceable. Without limiting the generality of the foregoing:
(i) each U.S. patent application and U.S. patent in which the Purchaser has or purports to have an ownership interest was filed within one year of the first printed publication, public use or
offer for sale of each invention described in such U.S. patent application or U.S. patent; (ii) each foreign patent application and foreign patent in which the Purchaser has or purports to have
an ownership interest was filed, or claims priority to a patent application filed, before the time at which each invention described in such foreign patent application or foreign patent was first made
available to the public; (iii) to the knowledge of the Purchaser, no trademark (whether registered or unregistered) or trade name owned, used, or applied for by the Purchaser conflicts or
interferes with any trademark (whether registered or unregistered) or trade name owned, used or applied for by any other Person; (iv) to the knowledge of the Purchaser, each item of IP owned by
the Purchaser that is Registered IP is and at all times has been in material compliance with all material Legal Requirements; (v) Part 3.9(d)(v) of the Purchaser Disclosure
Schedule accurately identifies and describes each filing, payment, and action that must be made or taken on or before the date that is 120 days after the date of this Agreement in order to
maintain each such item of Registered IP owned by the Purchaser in full force and effect; (vi) the Purchaser has provided to the Company complete and accurate copies of all applications,
correspondence and other material documents related to each such item of Registered IP owned by the Purchaser; and (vii) to the knowledge of the Purchaser, no interference, opposition, reissue,
reexamination or other Legal Proceeding of any nature is or has been pending or, to the knowledge of the Purchaser, threatened, in which the scope, validity or enforceability of any IP of the
Purchaser is being, has been or could reasonably be expected to be contested or challenged and there is no basis for a claim that any IP of the Purchaser is invalid or unenforceable. 

        (e)   Neither the execution, delivery or performance of any of the Transactional Agreements nor the consummation of any the
Acquisition will, with or without notice or the lapse of time, result in or give any other Person the right or option to cause or declare: (i) a loss of, or Encumbrance on, any IP of the
Purchaser; (ii) a breach of any Contract listed or required to be listed in Part 3.9(a)(ii) of the Purchaser Disclosure Schedule; (iii) the release, disclosure or delivery
of any IP of the Purchaser by or to any escrow agent or other Person; or (iii) the grant, assignment or transfer to any other Person of any license or other right or interest under, to or in
any of the IP of the Purchaser. 

        (f)    To the knowledge of the Purchaser, no Person has infringed, misappropriated, or otherwise violated, and no Person is
currently infringing, misappropriating or otherwise violating, any IP of the Purchaser. 

21

  

        (g)   To the knowledge of the Purchaser, the Purchaser has never infringed (directly, contributorily, by inducement or
otherwise), misappropriated or otherwise violated any Intellectual Property Right of any other Person. 

        (h)   None of the Software of the Purchaser is subject to any "copyleft" or other obligation or condition (including any
obligation or condition under any "open source" license such as the GNU Public License, Lesser GNU Public License or Mozilla Public License) that: (i) could or does require, or could or does
condition the use or distribution of such Purchaser Software on, the disclosure, licensing or distribution of any source code for any portion of such Purchaser Software; or (ii) could or does
otherwise impose any limitation, restriction or condition on the right or ability of the Company to use or distribute any such Software. 

        (i)    No source code for any Software of the Purchaser has been delivered, licensed or made available by the Purchaser to any
escrow agent or other Person who is not, as of the date of this Agreement, an employee of the Purchaser. The Purchaser has no duty or obligation to deliver, license or make available the source code
for any Software to any escrow agent or other Person who is not, as of the date of this Agreement, an employee of the Purchaser. No event has occurred, and no circumstance or condition exists, that
(with or without notice or lapse of time) will, or could reasonably be expected to, result in the delivery, license or disclosure of any source code for any Software of the Purchaser to any other
Person who is not, as of the date of this Agreement, an employee of the Purchaser. 

        3.10 Contracts.

        (a)   Part 3.10(a) of the Purchaser Disclosure Schedule identifies each Purchaser Contract that constitutes a Material
Contract (other than end user license agreements for Software entered into the ordinary course of business). The Purchaser has delivered or made available to the Company or its Representatives an
accurate and complete copy of each Material Contract of the Purchaser. Each Purchaser Contract that constitutes a Material Contract of the Purchaser is valid and in full force and effect, and is
enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance,
injunctive relief and other equitable remedies. 

        (b)   Except as set forth in the applicable subsections of Part 3.10(b) of the Purchaser Disclosure Schedule:
(i) the Purchaser has not violated or breached in any material respect, or committed any default under, any Material Contract of the Purchaser; and, to the knowledge of the Purchaser, no other
Person has violated or breached, or committed any default under, any Material Contract of the
Purchaser; (ii) to the knowledge of the Purchaser, no event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time) would reasonably be expected
to: (A) result in a violation or breach of any of the provisions of any Material Contract of the Purchaser; (B) give any Person the right to declare a default or exercise any remedy
under any Material Contract of the Purchaser; (C) give any Person the right to receive or require a rebate, chargeback or penalty under any Material Contract of the Purchaser, other than in the
ordinary course of business; (D) give any Person the right to accelerate the maturity or performance of any Material Contract of the Purchaser; (E) result in the disclosure, release or
delivery of any Company Source Code; or (F) give any Person the right to cancel, terminate or modify any Material Contract of the Purchaser; and (iii) the Purchaser has not received any
written notice or other written communication regarding any actual or possible material violation or breach of, or material default under, any Material Contract of the Purchaser, in each case under
clauses (i) through (iii), that would reasonably be expected to have a Material Adverse Effect on the Purchaser. 

        3.11 Liabilities. The Purchaser does not have, and will not become responsible for performing or discharging, any accrued,
contingent or other Liabilities, either matured or unmatured, except for: 

22

 

(a) Liabilities
identified as such in the "liabilities" column of the Purchaser Unaudited Balance Sheet or Liabilities identified in the footnotes of any of the Purchaser Financial Statements;
(b) Liabilities that are not required under generally accepted accounting principles to be in included in the "liabilities" column of the Purchaser Unaudited Balance Sheet or in the footnotes
thereto; (c) current Liabilities that have been incurred by the Purchaser since the Balance Sheet Date in the ordinary course of business; (d) Liabilities for performance of obligations
under Purchaser Contracts, to the extent such Liabilities are readily ascertainable (in nature, scope and amount) from the copies of such Company Contracts delivered or made available to Purchaser
prior to the date of this Agreement; and (e) Liabilities described in reasonable specificity in any part of the Purchaser Disclosure Schedule. 

        3.12 Compliance with Legal Requirements. The Purchaser is, and has at all times since December 31, 2001 been, in
compliance in all respects with all applicable Legal Requirements, except where the failure to be in compliance would not reasonably be expected to have a Material Adverse Effect on the Purchaser.
Since December 31, 2001, the Purchaser has received any written notice or other communication from any Governmental Body or other Person regarding any actual or possible violation of, or
failure to comply with, any Legal Requirement. 

        3.13 Certain Business Practices. Neither the Purchaser nor, to the knowledge of the Purchaser, any director, officer, other
employee or agent of the Purchaser acting in connection with the performance of his duties, has: (a) used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity; (b) made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns or violated any
provision of the Foreign Corrupt Practices Act of 1977, as amended; or (c) made any other unlawful payment. 

        3.14 Governmental Authorizations. The Governmental Authorizations held by the Purchaser and identified in Part 3.14 of
the Purchaser Disclosure Schedule are valid, in full force and effect and constitute all of the Governmental Authorizations necessary to enable the Purchaser to conduct its business in the manner in
which such business is currently being conducted, except where the failure to hold such Governmental Authority would not reasonably be expected to have a Material Adverse Effect on the Purchaser. The
Purchaser is and has at all times since December 31, 2001 been in full compliance in all material respects with all of the terms and requirements of each such Governmental Authorization, and no
event has occurred that might (with or without notice or lapse of time) result in a material violation of any requirement of any such Governmental Authorization, or result in the termination or
modification of any such Governmental Authorization that could be expected to result in a Material Adverse Effect on the Purchaser. 

        3.15 Tax Matters.

        (a)   Each of the Tax Returns required to be filed by or on behalf of the Purchaser with any Governmental Body with respect to
any taxable period ending on or before the Closing Date (the "Purchaser Returns") (i) has been or will be filed on or before the applicable due
date (including any extensions of such due date), and (ii) has been, or will be when filed, prepared in all material respects in compliance with all applicable Legal Requirements. All amounts
shown on the Purchaser Returns to be due on or before the Closing Date have been or will be paid on or before the Closing Date. 

        (b)   The Purchaser Unaudited Balance Sheet fully accrues all actual and contingent liabilities for Taxes with respect to all
periods through the date of this Agreement in accordance with generally accepted accounting principles, except for liabilities for Taxes incurred since the date of the Purchaser Unaudited Balance
Sheet in the operation of the business of the Purchaser. 

        (c)   No Purchaser Return has ever been audited by any Governmental Body. No extension or waiver of the limitation period
applicable to any of the Purchaser Returns has been granted (by 

23

 

the
Purchaser or any other Person), and no such extension or waiver has been requested from the Purchaser. 

        (d)   No claim or Legal Proceeding is pending or, to the knowledge of the Purchaser, has been threatened against or with
respect to the Company in respect of any material Tax. There are no unsatisfied Liabilities for material Taxes (including Liabilities for interest, additions to tax and penalties thereon and related
expenses) with respect to any notice of deficiency or similar document received by the Purchaser with respect to any material Tax (other than liabilities for Taxes asserted under any such notice of
deficiency or similar document which are being contested in good faith by the Purchaser and with respect to which adequate reserves for payment have been established on the Purchaser Unaudited Balance
Sheet). There are no liens for material Taxes upon any of the assets of any of the Purchaser except liens for current Taxes not yet due and payable. The Purchaser has not entered into
or become bound by any agreement or consent pursuant to Section 341(f) of the Code (or any comparable provision of state or foreign Tax laws). The Purchaser has not been or will be, required to
include any adjustment in taxable income for any tax period (or portion thereof) pursuant to Section 481 or 263A of the Code (or any comparable provision of state or foreign Tax laws) as a
result of transactions or events occurring, or accounting methods employed, prior to the Closing. No claim has ever been made by any Governmental Body in a jurisdiction in which the Purchaser does not
file a Tax Return that the Purchaser is or may be subject to taxation by that jurisdiction. 

        (e)   There is no agreement, plan, arrangement or other Contract covering, benefiting or relating to any Associate of the
Purchaser that, considered individually or considered collectively with any other such Contracts, could reasonably be expected to give rise directly or indirectly to the payment of any amount that
would not be deductible pursuant to Section 280G or Section 162 of the Code (or any comparable provision of state or foreign Tax laws). The Purchaser is not and has never been a party to or
bound by any tax indemnity agreement, tax sharing agreement, tax allocation agreement or similar Contract. The Purchaser is not a party to any agreement to compensate any Person for excise taxes
payable pursuant to Section 4999 of the Code. 

        (f)    Other than as set forth in the Rescission Agreement, there is no Purchaser Contract relating to allocating or sharing of
Taxes. The Company: (i) is not liable for Taxes of any other Person and is not currently under any contractual obligation to indemnify any Person with respect to any portion of such Person's
Taxes (except for customary agreements to indemnify lenders or security holders in respect of Taxes); and (ii) is not a party to or bound by any Contract providing for payments by the Purchaser
with respect to any amount of Taxes of any other Person. 

        (g)   The Purchaser has delivered to the Company or its Representatives accurate and complete copies of all its Tax Returns.
The Purchaser has not previously elected to be treated as an S Corporation under Section 1361 of the Code. The Purchaser has disclosed on its federal income Tax Returns all positions that could
give rise to a material understatement penalty within the meaning of Section 6662 of the Code or any similar Legal Requirement. 

        (h)   The Purchaser has not participated and is not currently participating, in a "Listed Transaction" or a "Reportable
Transaction" within the meaning of Treasury Regulation Section 1.6011-4(b)(2) or in a similar transaction under any corresponding or similar Legal Requirement. 

        (i)    The Purchaser has not been either a "distributing corporation" or a "controlled corporation" in a distribution of stock
intended to qualify for tax-free treatment under Section 355 of the Code (a) in the two years prior to the date of this Agreement or (b) which could otherwise
constitute part of a "plan" or "series of related transactions" (within the meaning of Section 355(e) of the Code) in conjunction with the Acquisition. 

24

 

        (j)    Neither the Purchaser nor any Entity to whose Liabilities the Purchaser has succeeded has filed or been included in a
consolidated, unitary or combined Tax Return with another Person, other than a group of which the Purchaser is a common parent. 

        (k)   The Purchaser is not and has never been a party to or bound by any tax indemnity agreement, tax sharing agreement, tax
allocation agreement or similar Contract. 

        3.16 Employee and Labor Matters; Benefit Plans.

        (a)   Part 3.16(a) of the Purchaser Disclosure Schedule accurately sets forth, with respect to each employee of the
Purchaser (including any employee who is on a leave of absence): (i) the name, title and date of hire of such employee, (ii) the aggregate dollar amount of the compensation (including
wages, salary, commissions, director's fees, fringe benefits, bonuses, profit-sharing payments and other payments or benefits of any type) received by such employee with respect to services performed
in the fiscal year ended December 31, 2004; (iii) such employee's annualized compensation as of March 17, 2005; and (iv) each Purchaser Benefit Plan in which such employee
participates or is eligible to participate. Part 3.16(a) accurately sets forth, with respect to each independent contractor of the Purchaser, the same information set forth in clauses
(i) through (iii) of the foregoing sentence. 

        (b)   Part 3.16(b) of the Company Disclosure Schedule accurately identifies each former employee of the Purchaser who is
receiving or is scheduled to receive (or whose spouse or other dependent is receiving or is scheduled to receive) any benefits (other than continued involvement in 401(k) plans and stock option plans
and rights to insurance in accordance with COBRA) relating to such former employee's employment with the Purchaser. 

        (c)   The employment of each of the Purchaser's employees is terminable by the Purchaser at will. The Purchaser has delivered
or made available to the Company or its Representatives accurate and complete copies of all employee manuals and handbooks, disclosure materials, policy statements and other materials relating to the
employment of the Associates of the Purchaser that the Purchaser provides to such employees. To the knowledge of the Purchaser, no employee intends to terminate his employment with the Purchaser, nor
has any such employee threatened or expressed any intention to do so. 

        (d)   The Purchaser is not a party to, or bound by, any collective bargaining agreement or other Contract with a labor
organization representing any of its employees, and there are no labor organizations
representing, purporting to represent or, to the knowledge of the Purchaser, seeking to represent any employees of the Purchaser. There has never been, nor has there been any threat of, any strike,
slowdown, work stoppage, lockout, job action, union organizing activity, question concerning representation or any similar activity or dispute, affecting the Company or any of its employees. Other
than as a result of the Acquisition no event has occurred, and no condition or circumstance exists, that might directly or indirectly give rise to or provide a basis for the commencement of any such
strike, slowdown, work stoppage, lockout, job action, union organizing activity, question concerning representation or any similar activity or dispute. 

        (e)   The Purchaser is not or has never been engaged, in any unfair labor practice within the meaning of the National Labor
Relations Act. As of the date of this Agreement, there is no Legal Proceeding, claim, labor dispute or grievance pending or, to the knowledge of the Purchaser, threatened or reasonably anticipated
relating to any employment contract, privacy right, labor dispute, wages and hours, leave of absence, plant closing notification, workers' compensation policy, long-term disability policy,
harassment, retaliation, immigration, employment statute or regulation, safety or discrimination matter involving any Associate of the Purchaser, including charges of unfair labor practices or
discrimination complaints. 

25

 

        (f)    No current or former independent contractor of the Purchaser could be deemed to be a misclassified employee. No
independent contractor (i) has provided services to the Purchaser for a period of six consecutive months or longer or (ii) is eligible to participate in any Benefit Plan of the
Purchaser. The Purchaser has not ever had any temporary or leased employees that were not treated and accounted for in all respects as employees of the Purchaser. 

        (g)   Part 3.16(g) of the Purchaser Disclosure Schedule contains an accurate and complete list as of the date hereof of
each Benefit Plan of the Purchaser and each Benefit Agreement of the Purchaser. With respect to each Benefit Plan of the Purchaser, the Purchaser has delivered or made available to the Company or its
Representatives: (i) an accurate and complete copy of all documents setting forth the material terms of such Benefit Plan of the Purchaser, including all amendments thereto and all related
trust documents; (ii) a complete and accurate copy of the annual report (Form Series 5500 and all schedules and financial statements attached thereto), if any, required under ERISA or
the Code, with respect to such Benefit Plan of the Purchaser for the three most recent plan years; (iii) if such Benefit Plan of the Purchaser is subject to the minimum funding standards of
Section 302 of ERISA, the most recent annual and periodic accounting of such Benefit Plan's assets; (iv) the most recent summary plan description together with the summaries of material
modifications thereto, if any, required under ERISA with respect to such Benefit Plan; (v) accurate and complete copies of all Contracts relating to such Benefit Plan, including service
provider agreements, insurance contracts, minimum premium contracts, stop-loss agreements, investment management agreements, subscription and participation agreements and recordkeeping
agreements; (vi) all written materials provided to any Associate of the Purchaser relating to such Purchaser Benefit Plan, including acceleration of payments or vesting schedules or other
events that would result in any Liability to the Purchaser or any Affiliate of the Purchaser; (vii) all forms and related notices required under COBRA with respect to such
Purchaser Benefit Plan; (viii) if such Benefit Plan is intended to be qualified under Section 401(a) of the Code, all discrimination tests, if any, required under the Code for such
Company Benefit Plan for the three most recent plan years; and (ix) if such Benefit Plan is intended to be qualified under Section 401(a) of the Code, the most recent United States
Internal Revenue Service determination letter (or opinion letter, if applicable) received with respect to such Benefit Plan. 

        (h)   Each of the Benefit Plans of the Purchaser has been operated and administered in all material respects in accordance with
its terms and with applicable Legal Requirements, including ERISA, the Code, applicable U.S. and non-U.S. securities laws and regulations and applicable foreign Legal Requirements. The
Purchaser has performed all obligations required to be performed by them under each Benefit Plan of the Purchaser and the Company is not in default or violation of the terms of any Benefit Plan. To
the knowledge of the Purchaser, there has been no default or violation by any other party with respect to any term of any Benefit Plan of the Company. Any Benefit Plan of the Purchaser intended to be
qualified under Section 401(a) of the Code has obtained a favorable determination letter (or opinion letter, if applicable) as to its qualified status under the Code, and to the knowledge of
the Purchaser, there is not and there has never been any event, condition or circumstance that could reasonably be expected to result in disqualification under the Code. No "prohibited transaction,"
within the meaning of Section 4975 of the Code or Sections 406 and 407 of ERISA (other than a transaction exempt under Section 408 of ERISA), has occurred with respect to any Benefit
Plan of the Company. As of the date of this Agreement, there are no claims or Legal Proceedings pending, or, to the knowledge of the Purchaser, threatened or reasonably anticipated (other than routine
claims for benefits), against any Benefit Plan of the Purchaser or against the assets of any Benefit Plan of the Purchaser. Each Benefit Plan of the Purchaser can be amended, terminated or otherwise
discontinued after the Closing in accordance with its terms, without Liability to Purchaser or the Company (other than ordinary administration expenses). All contributions, premiums and expenses 

26

 

to
or in respect of each Benefit Plan of the Purchaser have been paid in full or, to the extent not yet due, have been adequately accrued on the Purchaser Unaudited Balance Sheet. 

        (i)    Neither the Purchaser nor any Affiliate of the Purchaser has ever maintained, established, sponsored, participated in, or
contributed to any: (i) Benefit Plan subject to Section 302 or Title IV of ERISA or Section 412 of the Code; (ii) "multiemployer plan" within the meaning of
Section 3(37) of ERISA; (iii) "multiple employer plan" (within the meaning of Section 413(c) of the Code); or (iv) Benefit Plan in which stock of any of the Company or any
Affiliate of the Company is or was held as a "plan asset" within the meaning of the United States Department of Labor Regulations Section 2510.3-101. 

        (j)    Neither the execution of this Agreement nor the consummation of the Acquisition (either alone or in combination with
another event, whether contingent or otherwise) will (i) result in any bonus, severance or other payment or obligation to any Associate of the Purchaser (whether or not under any Benefit Plan
of the Purchaser); (ii) materially increase the benefits payable or provided to, or result in a forgiveness of any indebtedness of, any Associate of the Purchaser; (iii) accelerate the
vesting, funding or time of payment of any compensation, equity award or other similar benefit; (iv) result in any "parachute payment" under Section 280G of the Code (whether or not such
payment is considered to
be reasonable compensation for services rendered); or (v) cause any compensation to fail to be deductible under Section 162(m) of the Code or any other provision of the Code or any
similar foreign Legal Requirement. Without limiting the generality of the foregoing, the consummation of the Acquisition will not result in the acceleration of vesting of any unvested options of the
Purchaser under its 1999 Equity Incentive Plan and 2004 Equity Incentive Plan. 

        (k)   The Purchaser (i) is, and at all times has been, in compliance in all material respects with all applicable Legal
Requirements respecting employment, employment practices, terms and conditions of employment and wages and hours, in each case, with respect to Associates of the Purchaser, including the health care
continuation requirements of COBRA, the requirements of the Family Medical Leave Act of 1993, as amended, the requirements of the Health Insurance Portability and Accountability Act of 1996, as
amended, and any similar provisions of state law; (ii) has withheld and reported all amounts required by any Legal Requirement or Contract to be withheld and reported with respect to wages,
salaries and other payments to any Associate of the Purchaser; (iii) has no Liability for any arrears of wages or any Taxes or any penalty for failure to comply with the Legal Requirements
applicable to any of the foregoing; and (iv) has no Liability for any payment to any trust or other fund governed by or maintained by or on behalf of any Governmental Body with respect to
unemployment compensation benefits, social security or other benefits or obligations for any Associate of the Purchaser (other than routine payments to be made in the normal course of business and
consistent with past practice). 

        3.17 Environmental Matters. The Purchaser: (i) is and has been in compliance in all material respects with, and has
not been and is not in material violation of or subject to any material Liability under, any applicable Environmental Requirements; and (ii) possesses all material permits and other
Governmental Authorizations required under applicable Environmental Requirements, and is in compliance in all material respects with the terms and conditions thereof. 

        3.18 Insurance. Part 3.18 of the Purchaser Disclosure Schedule accurately sets forth, with respect to each insurance
policy (including directors' and officers' liability insurance maintained by the Purchaser maintained by or at the expense of, or for the direct or indirect benefit of, the Purchaser: (a) the
name of the insurance carrier that issued such policy and policy number of such policy; (b) whether such policy made is a "claims made" or "occurrences" policy; (c) the annual premiums
associated with such policies; and (d) a description of any claims pending under any insurance policies set forth on Part 3.18 of the Purchaser Disclosure Schedule. The Purchaser has
delivered or made 

27

 

available
to the Company or its Representatives accurate and complete copies of all such insurance policies. Each of such policies is valid, enforceable and in full force and effect. The Purchaser has
in full force and effect fire and casualty insurance policies, with extended coverage, and insurance against other hazards, risks and liabilities to persons and property to the extent and in the
manner customary for companies in similar businesses similarly situated. Each of such policies is valid, enforceable and in full force and effect. The Purchaser has not received any written notice or
other written communication regarding any actual or possible: (i) cancellation or invalidation of any insurance policy; (ii) refusal or denial of any coverage, reservation of rights or
rejection of any material claim under any insurance policy; or (iii) material adjustment in the amount of the premiums payable with respect to any insurance policy. All information provided to
insurance carriers (in applications and otherwise) on behalf of the Purchaser is accurate and complete in all material respects. 

        3.19 Transactions with Affiliates. Except as set forth on Part 3.19 of the Purchaser Disclosure Schedule, the
Purchaser is not a party to any agreement or Contract with any Affiliate of the Purchaser other than on an arms-length basis. 

        3.20 Legal Proceedings; Orders.

        (a)   There is no pending Legal Proceeding, and (to the knowledge of the Purchaser), no Person has threatened in writing to
commence any Legal Proceeding: (i) against the Purchaser, any Associate of the Purchaser (in his or her capacity as such) or any of the assets owned or used by the Purchaser; or
(ii) that challenges, or that may have the effect of preventing, delaying, making illegal or otherwise interfering with, the Acquisition. To the knowledge of the Purchaser, no event has
occurred, and no claim or dispute exists, that would reasonably be expected to give rise to or serve as a basis for the commencement of any such Legal Proceeding. 

        (b)   There is no order, writ, injunction, judgment or decree to which the Purchaser, or any of the assets owned or used by the
Purchaser, is subject. To the knowledge of the Purchaser, no officer of the Purchaser is subject to any order, writ, injunction, judgment or decree that prohibits such officer or other employee from
engaging in or continuing any conduct, activity or practice relating to the business of the Purchaser. 

        3.21 Authority; Binding Nature of Agreement. The Purchaser has all necessary corporate power and authority to enter into and
to perform its obligations under this Agreement. This Agreement constitutes the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms,
subject to: (i) laws of general application relating to bankruptcy, insolvency and the relief of debtors; and (ii) rules of law governing specific performance, injunctive relief and
other equitable remedies. 

        3.22 Non-Contravention; Consents. Subject to obtaining the approval of the Board of Directors of Purchaser,
neither the execution and delivery of any of the Transactional Agreements, nor the consummation or performance of the Acquisition, will directly or indirectly (with or without notice or lapse of
time): (a) conflict with or result in a violation or breach of any of the terms, conditions or provisions of the certificate of incorporation, bylaws or other charter or organizational
documents of the Purchaser or any of its Subsidiaries; (b) give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization held by
the Purchaser; (c) give any Person the right to (i) declare a default or exercise any remedy under any Material Contract of the Purchaser, (ii) accelerate the maturity or
performance of any Material Contract of the Purchaser or (iii) cancel, terminate or modify any Material Contract of the Purchaser; or (d) result in the imposition or creation of any
Encumbrance upon any assets, except for conflicts, violations, breaches or acts that would not, individually or in the aggregate, be expected to have a Material Adverse Effect on the Purchaser. Except
as set forth in Part 3.22 of the Purchaser Disclosure Schedule, the Purchaser is not nor will it be required to make any filing with or give any notice to, or to obtain any Consent from, any
Person in connection with the execution and delivery of any Transactional Agreement or the 

28

 

consummation
of the Acquisition (other than federal securities and blue sky filings that may properly be made after the Closing). 

        3.23 Financial Advisor. Except as set forth on Part 3.23 of the Purchaser Disclosure Schedule, Purchaser has not
agreed or become obligated to pay, or has taken any action that might result in, any Person claiming to be entitled to receive, any brokerage commission, finder's fee or similar commission or fee in
connection with the Acquisition. 

Section 4. COVENANTS OF THE PARTIES  

        4.1   Employment and Related Matters. Purchaser agrees to assume the obligations set forth in, and take all action necessary to
comply with, the letter agreement, attached hereto as Exhibit D (the "Letter Agreement"). 

        4.2   Disclosure. 

        (a)   Prior to the Closing Date, neither the Company nor any of the Shareholders nor any of their respective Representatives
shall, issue any press release or other public disclosures (other than to its employees, customers and vendors) regarding the Acquisition unless: (a) Purchaser shall have approved such press
release or disclosure in writing; or (b) the Company shall have delivered to Purchaser a copy of a written legal opinion from a reputable law firm confirming that such disclosure is required by
applicable law and, at least 72 hours before such press release or disclosure is issued or made, the Company advises Purchaser of, and consults with Purchaser regarding, the text of such press
release or disclosure. 

        (b)   Following the Closing Date, neither the Company nor any of the Shareholders nor any of their respective Representatives
shall, issue any press release or other public disclosures regarding the Acquisition unless: (a) Purchaser shall have approved such press release or disclosure in writing; or (b) the
Company shall have delivered to Purchaser a copy of a written legal opinion from a reputable law firm confirming that such disclosure is required by applicable law and, at least 72 hours before
such press release or disclosure is issued or made, the Company advises Purchaser of, and consults with Purchaser regarding, the text of such press release or disclosure. 

        4.3   Access to Information. From the date of this Agreement until the Closing Date, upon reasonable prior notice, the
Purchaser shall afford the Shareholders, and the Shareholders shall afford, and shall cause the Company to afford, the Purchaser reasonable access, during normal business hours, to the offices,
properties, books and records of the Purchaser or the Company, as applicable, and furnish to the Shareholders and Purchaser, as applicable, such additional information regarding the Company or the
Purchaser (as applicable) as the Shareholders or the Purchaser may from time to time reasonably request. 

        4.4   Conduct of Company Prior to Closing. The Shareholders shall use reasonable efforts to ensure, and shall use reasonable
efforts to cause the Company to ensure, that, except with the consent of Purchaser, from the date hereof through the Closing Date: 

        (a)   the Company conducts its operations in the ordinary course of business and in substantially the same manner as such
operations have been conducted prior to the date of this Agreement; 

        (b)   the Company shall use its commercially reasonable efforts to (i) preserve intact its current business
organization, (ii) keep available the services of its current officers and employees, (iii) maintain its relations and good will with all suppliers, customers, landlords, creditors,
licensors, licensees, independent contractors and other Persons having business relationships with the Company and (iv) promptly repair, restore or replace any assets that are destroyed or
damaged; 

29

 

        (c)   to the extent requested by the Purchaser, the officers of the Company shall confer with the Purchaser concerning
operational matters outside the ordinary course of business and the status of the Company, including its condition, assets, Liabilities, operations, financial performance and prospects; 

        (d)   the Purchaser is notified immediately of any inquiry, proposal or offer from any Person relating to an acquisition of the
Company and neither the Company nor the Shareholders becomes a party to an agreement providing for the acquisition of the Company or the Company Shares; 

        (e)   the Company does not form any Subsidiary or acquire any equity interest or other interest in any other Entity; 

        (f)    the Company does not incur or assume any Liability, except for current Liabilities incurred in the ordinary course of
business, and the Company does not make any payment (whether of interest, principal or otherwise) with respect to any indebtedness of the Company, including the ISx Debt and the predecessor to such
ISx debt, excluding however ordinary course vendor and supplier financing as well as non-debt obligations pursuant to customer contracts and strategic partnerships, and excluding payments
to the Company's service providers incurred in connection with the Acquisition; 

        (g)   except as specifically set forth in Part 4.4(g) of the Company Disclosure Schedule, the Company does not establish
or adopt any Benefit Plan, employment agreement, retention plan, change of control agreement or similar agreement or pay any bonus or make any profit-sharing or similar payment to, or increase the
amount of the wages, salary, commissions, fees, fringe benefits or other compensation or remuneration payable to, any of its directors, officers, employees or independent contractors;  provided, that,
the annual base salary of employees (other than officers) of the Company may be increased in the ordinary course of business not more
than once per employee in an amount not to exceed $7,500 per employee; and 

        (h)   neither the Company nor any Shareholder enters into any transaction or takes any other action that would reasonably be
expected to constitute a Breach of any representation or warranty made by the Shareholders in this Agreement as of the Closing Date. 

        4.5   Conduct of Purchaser Prior to Closing. The Purchaser shall use reasonable efforts to ensure that, except as set forth on
Part 4.5 of the Purchaser Disclosure Schedule or with the consent of STIC, from the date hereof through the Closing Date: 

        (a)   the Purchaser conducts its operations in the ordinary course of business and in substantially the same manner as such
operations have been conducted prior to the date of this Agreement; 

        (b)   the Purchaser shall use its commercially reasonable efforts to (i) preserve intact its current business
organization, (ii) keep available the services of its current officers and employees, (iii) maintain its relations and good will with all suppliers, customers, landlords, creditors,
licensors, licensees,
independent contractors and other Persons having business relationships with the Company and (iv) promptly repair, restore or replace any assets that are destroyed or damaged; 

        (c)   to the extent requested by the Shareholders, the officers of the Purchaser shall confer with the Shareholders concerning
operational matters outside the ordinary course of business and the status of the Purchaser, including its condition, assets, Liabilities, operations, financial performance and prospects; 

        (d)   the Company is notified immediately of any inquiry, proposal or offer from any Person relating to an acquisition of the
Purchaser and the Purchaser shall not becomes a party to an agreement providing for the acquisition of the Purchaser; 

30

 

        (e)   the Purchaser does not form any Subsidiary or acquire any equity interest or other interest in any other Entity; 

        (f)    the Purchaser does not incur or assume any Liability, except for current Liabilities incurred in the ordinary course of
business, and the Purchaser does not make any payment (whether of interest, principal or otherwise) with respect to any indebtedness of the Purchaser, excluding however ordinary course vendor and
supplier financing as well as non-debt obligations pursuant to customer contracts and strategic partnerships, and excluding payments to the Purchaser's service providers incurred in
connection with the Acquisition; 

        (g)   the Purchaser does not establish or adopt any Benefit Plan, employment agreement, retention plan, change of control
agreement or similar agreement or pay any bonus or make any profit-sharing or similar payment to, or increase the amount of the wages, salary, commissions, fees, fringe benefits or other compensation
or remuneration payable to, any of its directors, officers, employees or independent contractors; provided, that, the annual base salary of employees
(other than officers) of the Company may be increased in the ordinary course of business not more than once per employee in an amount not to exceed $7,500 per employee; 

        (h)   the Purchaser does not enter into any transaction or take any other action that would reasonably be expected to
constitute a Breach of any representation or warranty made by the Purchaser as of the Closing Date. 

        4.6   Filings and Consents; Reasonable Best Efforts. The parties shall ensure that all filings, notices and Consents required
to be made, given and obtained in order to consummate the Acquisition are made, given and obtained on a timely basis. From the date hereof through the Closing Date, the parties shall use their
reasonable best efforts to cause the conditions set forth in Sections 5.1 and 5.2 (as applicable) to be satisfied on a timely basis. 

        4.7   Notification; Updates to Disclosure Schedule. From the date hereof through the Closing Date, the parties shall use
reasonable best efforts to promptly notify the other parties in writing of: (a) the discovery by any Shareholder or the Purchaser (as applicable) of any event, condition, fact or circumstance
that occurred or existed on the date of this Agreement and that caused or constitutes a Breach in any material respect of any representation or warranty made by the Shareholders or by the Purchaser,
as the case may be, in this Agreement; (b) any event, condition, fact or circumstance that occurs, arises or exists after the date of this Agreement and that would cause or constitute a Breach
in any material respect of any representation or warranty made by the Shareholders or by the Purchaser, as the case may be, in this Agreement; (c) any Breach in any material respect of any
covenant or obligation of the Shareholders or the Purchaser, as the case may be; and (d) any event, condition, fact or circumstance that would reasonably be expected to make the timely
satisfaction of any of the conditions set forth in Sections 5.1 or 5.2, as the case may be, impossible or unlikely. No such notification shall be deemed to supplement or amend the Company Disclosure
Schedule or Purchaser Disclosure Schedule, as the case may be, for the purpose of (a) determining the accuracy of any representation or warranty made by the Shareholders or the Purchaser in
this Agreement or (b) determining whether any of the conditions set forth in Section 5 have been satisfied. 

        4.8   No Negotiation. The Shareholders shall use reasonable efforts to ensure, and shall use reasonable efforts to cause the
Company to ensure, that from the date hereof through the Closing Date, neither the Company nor any Shareholder, nor any Representative of the Shareholders or the Company, directly or indirectly:
(i) solicits or encourages the initiation of any inquiry, proposal or offer from any Person (other than the Purchaser) relating to an acquisition of the Company or the Company Shares;
(b) participates in any discussions or negotiations with, or provides any non-public information to, any Person (other than the Purchaser) relating to any proposed acquisition of
the Company or Company Shares; or (c) considers the merits of any unsolicited inquiry, proposal or offer from any Person (other than the Purchaser) relating to an acquisition of the Company or
Company Shares. 

31

 

        4.9   Confidentiality. The terms of the Confidentiality Agreement are incorporated into this Agreement by reference and shall
continue in full force and effect until the Closing, at which time the confidentiality obligations under the Confidentiality Agreement shall terminate. If, for any reason, the sale of the Company
Shares is not consummated, the Confidentiality Agreement shall nonetheless continue in full force and effect. 

Section 5. CLOSING CONDITIONS AND DELIVERABLES OF THE PARTIES  

        5.1   Conditions Precedent to the Purchaser's Obligation to Close. The obligations of Purchaser to consummate the Acquisition
and to take the other actions required to be taken by Purchaser at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be
waived by the Purchaser, in whole or in part, in writing): 

        (a)   Accuracy of Representations. All of the representations and warranties
which are qualified by "in any material respect", "Material Adverse Effect" or other similar materiality qualifier made by the Shareholders in this Agreement, the Shareholder Closing Certificate and
in any certificate or other writing delivered by the Shareholders pursuant to this Agreement shall be true at and as of the Closing Date, as if made at and as of the Closing Date, except for
representations and warranties made as of a specified date which shall be true as of such specified date. All other representations and warranties made by the Shareholders in this Agreement, the
Shareholder Closing Certificate and in any certificate or other writing delivered by the Seller pursuant to this Agreement shall be true in all material respects at and as of the Closing Date, as if
made at and of the Closing Date, except for representations and warranties made as of a specified date which shall be true in all material respects as of such specified date. 

        (b)   Performance of Obligations. The Shareholders shall have performed in all
material respects all of their obligations hereunder required to be performed by them on or prior to the Closing Date. 

        (c)   No Prohibition. No provision of any applicable law or regulation and no
judgment, injunction, order or decree shall prohibit the consummation of the Closing. 

        (d)   Closing Deliverables. At the Closing, the Shareholders shall deliver the
following to the Purchaser: 

        (i)    a certificate, in form and substance reasonably satisfactory to the Purchaser, signed by the secretary of the Company,
dated the Closing Date, certifying as to (i) the organizational documents of the Company as in effect on the Closing Date; and (ii) certificates of good standing of the Company from the
Secretary of State of the States of Delaware and Florida as of a recent date; 

        (ii)   each of the Consents identified in Part 2.22 of the Company Disclosure Schedule; 

        (iii) a certificate, executed by each of the Shareholders (the "Shareholder Closing
Certificate"), setting forth that the conditions in Sections 5.1(a) and 5.1(b) have been met; 

        (iv)  board resolutions of the Company evidencing the election of Kevin Kimberlin to the board of directors of the Company; 

        (v)   the Shareholder Stock Certificates and Stock Assignments; 

        (vi)  the rescission agreement, in the form attached hereto as  Exhibit E, executed by each of the Shareholders (the "Rescission
Agreement"); 

        (vii) the Letter Agreement executed by the Company and STIC; 

32

 

        (viii)  the agreements evidencing the ISx Debt executed by the parties thereto in the forms attached hereto as  Exhibit F, which agreements shall include
an amendment to the UCC-1 financing statement that is currently on file for the benefit of
Kevin Kimberlin Partners, L.P. with the Company listed as the debtor to conform the description of the collateral and other terms and obligations to the terms of the ISx Debt and to assign Kevin
Kimberlin as agent for the lenders pursuant to the terms of the ISx Debt; 

        (ix)  Purchaser's form of Second Amended and Restated Investor Rights Agreement, executed by each of the Shareholders and
Messrs. Downs and Klein (in the case of Messrs. Downs and Klein, with respect to the underlying shares of stock issuable upon exercise of the warrants being issued to them in connection
with the transactions contemplated by this Agreement); 

        (x)   the working capital facility letter, in the form attached hereto as  Exhibit G, executed by STIC, the Company and Purchaser; and 

        (xi)  the M&A letter agreement, in the form attached hereto as  Exhibit H, executed by Spencer Trask Ventures, Inc., STIC, the Company and
Purchaser. 

        (e)   Purchaser Restated Certificate. The Purchaser Restated Certificate shall
have been filed with the Secretary of State of the State of Delaware. 

        5.2   Conditions Precedent to the Shareholders' Obligation to Close. The obligations of the Shareholders to consummate the
Acquisition and to take the other actions required to be taken by the Shareholders at the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any
of which may be waived by the Shareholder's Agent, in whole or in part, in writing): 

        (a)   Accuracy of Representations. All of the representations and warranties
which are qualified by "in any material respect", "Material Adverse Effect" or other similar materiality qualifier made by the Purchaser in this Agreement, the Purchaser Closing Certificate and in any
certificate or other writing delivered by the Purchaser pursuant to this Agreement shall be true at and as of the Closing Date, as if made at and as of the Closing Date, except for representations and
warranties made as of a specified date which shall be true as of such specified date. All other representations and warranties made by the Purchaser in this Agreement, the Purchaser Closing
Certificate and in any certificate or other writing delivered by the Purchaser or Parent pursuant to this Agreement shall be true in all material respects at and as of the Closing Date, as if made at
and of the Closing Date, except for representations and warranties made as of a specified date which shall be true in all material respects as of such specified date. 

        (b)   Performance of Obligations. The Purchaser shall have performed in all
material respects all of its obligations hereunder required to be performed by it on or prior to the Closing Date. 

        (c)   No Prohibition. No provision of any applicable law or regulation and no
judgment, injunction, order or decree shall prohibit the consummation of the Closing. 

        (d)   Closing Deliverables. At the Closing, the Purchaser shall deliver the
following to the Seller: 

        (i)    a certificate, in form and substance reasonably satisfactory to the Shareholder's Agent, signed by the secretary of
Purchaser, dated the Closing Date, certifying as to (i) resolutions adopted by the board of directors of Purchaser approving the execution by Purchaser of the Transactional Agreements;
(ii) the organizational documents of Purchaser as in effect on the Closing Date; and (iii) certificates of good standing from the Secretary of State of the States of Delaware and
Colorado as of a recent date; 

33

 

        (ii)   a certificate, executed by an officer of Purchaser (the "Purchaser Closing
Certificate"), setting forth that the conditions in Sections 5.2(a), 5.2(b) and 5.2(e) have been met; 

        (iii) the Rescission Agreement executed by the Purchaser; 

        (iv)  the Letter Agreement executed by the Purchaser; 

        (v)   the agreements evidencing the ISx Debt executed by the parties thereto in the forms attached hereto as  Exhibit F; 

        (vi)  Purchaser's form of Second Amended and Restated Investor Rights Agreement, executed by the Purchaser; and 

        (vii) an opinion of counsel to the Purchaser in the form attached hereto as  Exhibit I. 

        (e)   Purchaser Restated Certificate. The Purchaser Restated Certificate shall
have been filed with the Secretary of State of the State of Delaware. 

        (f)    Issuance of Consideration Shares. At the Closing, the Purchaser shall
issue the Consideration Shares to the Shareholders, subject to the provisions of Section 1.2. 

Section 6. INDEMNIFICATION  

        6.1   Survival of Representations and Covenants; Limitation on Indemnification Claims. 

        (a)   The covenants of each party to this Agreement shall survive: (i) the Closing of the Acquisition, including,
without limitation, the sale of the Company Shares to the Purchaser. All of said covenants shall remain in full force and effect and shall survive for an unlimited period of time. 

        (b)   The representations, warranties and covenants of the parties hereto, and the rights and remedies that may be exercised by
any Indemnitee, shall be limited to the extent that the matter that is the subject of such Breach was specifically disclosed in any written document, written diligence memorandum or other written
communication to the management or special committee of the board of directors or Representatives of the Purchaser or to the management or board of directors or Representatives of the Company, as the
case may be. 

        (c)   The representations and warranties of the parties hereto shall survive the Closing of the Acquisition, including, without
limitation, the sale of the Shares to the Purchaser. All of said representations and warranties shall remain in full force and effect and shall expire on the Expiration Date;  provided, however, that
(x) the foregoing shall not apply to claims based on fraud; (y) claims pursuant to Section 6.3 below which
shall survive until the second anniversary of the Closing Date; and (y) if a Claim Notice relating to any representation or warranty set forth herein is given to the Purchaser or Shareholder's
Agent, as the case may be, on or prior to such Expiration Date, then, notwithstanding anything to the contrary contained in this Section 6.1(c), such representation or warranty shall not so
expire, but rather shall remain in full force and effect until such time as each and every claim (including any indemnification claim asserted by any Indemnitee under Sections 6.2, 6.3 or 6.4) that is
set forth in such Claim Notice has been fully and finally resolved, either by means of a written settlement agreement executed on behalf of the indemnifying party or parties or by means of a final,
non-appealable judgment issued by a court of competent jurisdiction. 

        (d)   For purposes of this Agreement, a "Claim Notice" relating to a particular
representation or warranty shall be deemed to have been given if any Indemnitee, acting in good faith, delivers to the Purchaser or Shareholder's Agent, as the case may be, a written notice stating
that such Indemnitee reasonably believes that there is or has been a possible Breach of such representation 

34

 

or
warranty and containing (i) a detailed (to the extent reasonably possible based upon the facts known to the party delivering the Claim Notice) description of the circumstances supporting
such Indemnitee's belief that there is or has been such a possible Breach and (ii) a non-binding, preliminary good faith estimate (to the extent reasonably possible based upon the
facts known to the party delivering the Claim Notice) of the aggregate dollar amount of the actual and potential Damages that have arisen and may arise as a direct or indirect result of such possible
Breach. 

        (e)   To the extent that the Purchaser shall receive payment under any insurance policies on account of any claims for which
indemnification may be sought hereunder, the amount (if any) payable by the Shareholders on account of such claims shall be reduced by the amount of such payment or, if the Purchaser shall already
have collected on such claim, then Purchaser shall repay to the Shareholders the amount of such payment. To the extent that the Shareholders shall receive payment under any insurance policies on
account of any claims for which indemnification may be sought hereunder, the amount (if any) payable by Purchaser on account of such claims shall be reduced by the amount of such payment or, if the
Shareholders shall already have collected on such claim, then Shareholders shall repay to Purchaser the amount of such payment. Notwithstanding the foregoing, neither Purchaser nor the Shareholders
shall have any obligation to seek insurance recovery unless the amount of
Damages, as specified in the Claim Notice, minus any applicable Basket Amount exceeds the Insurance Deductible Amount. 

        6.2   Indemnification by the Shareholders. The Shareholders severally (and not jointly) shall hold harmless and indemnify each
of the Purchaser Indemnitees from and against, and shall compensate and reimburse each of the Purchaser Indemnitees for, any Damages that are directly or indirectly suffered or incurred by any of the
Purchaser Indemnitees or to which any of the Purchaser Indemnitees may otherwise become subject (regardless of whether or not such Damages relate to any third-party claim) and that arise directly or
indirectly from or as a direct or indirect result of, or are directly or indirectly connected with: 

        (a)   any Breach by the Shareholders of any representation or warranty of the Shareholders contained in this Agreement or any
other Transactional Agreement; 

        (b)   any Breach of any covenant of the Shareholders contained in this Agreement or any other Transactional Agreement; and 

        (c)   any Proceeding relating directly or indirectly to any Breach, alleged Breach, Liability or matter of the type referred to
in clauses "(a)" or "(b)" above (including any Proceeding commenced by any Purchaser Indemnitee for the purpose of enforcing any of its rights under this Section 6). 

        The
Purchaser Indemnitees shall not be entitled to indemnification pursuant to the provisions of this Section 6.2 until the total amount of all Damages (including the Damages
arising from such Breach and all other Damages arising from any other Breaches of any representations or warranties pursuant to this Section 6.2 (and excluding any Damages arising pursuant to
Section 6.3 below)) exceeds $100,000 (the "Basket Amount") (it being understood and agreed that the Basket Amount is intended as a deductible,
and the Shareholders will not be liable for the first $100,000 of Damages for which the Purchaser Indemnitees are entitled to indemnification). Notwithstanding the foregoing, no Basket Amount shall
apply to (a) claims based on fraud or any claim in the nature of fraud or (b) claims arising pursuant to Section 6.3 below. 

        Subject
to Sections 6.3 and 7.14 below, all of the indemnification obligations of either of the Shareholders shall be satisfied exclusively by deduction from the Escrow Shares;  provided, that, each Shareholder
may elect, at its sole option, to satisfy such indemnification obligation in cash (the
"Shareholder Cap"). Notwithstanding the foregoing, any Breach of any covenant (or any Proceeding relating directly or indirectly to any such failure or
Breach) of the Shareholders contained in Sections 

35

 

1.1,
1.2(b), 1.2(c), 1.4, 1.6, 4.1, 4.2(b), 6.1(e), 6.3, 6.4, 6.5, 6.6, 7.7, 7.8, 7.10 or 7.12 of this Agreement shall be satisfied exclusively by the payment in cash of the amount thereof.
Notwithstanding the foregoing, no limitation shall apply to (a) claims based on fraud or any claim in the nature of fraud or (b) claims arising pursuant to Section 6.3 below. 

        For
purposes of the indemnity obligations under Section 6, the value per share of Purchaser Series 1 Stock shall be deemed to be the Series 1 Value on the date of a
written settlement agreement executed on behalf of the indemnifying party or parties or on the date of receipt of a final, non-appealable judgment issued by a court of competent
jurisdiction; any indemnification obligation that may be satisfied by the surrender of Escrow Shares shall be satisfied by transfer of that number of Escrow Shares with a value (based on such
Series 1 Value) equal to the amount of the indemnification obligation. 

        6.3   Additional Indemnity by STIC. STIC shall hold harmless and indemnify each of the Purchaser Indemnitees from and against,
and shall compensate and reimburse each of the Purchaser Indemnitees for, any Damages that are directly or indirectly suffered or incurred by any of the Purchaser Indemnitees or to which any of the
Purchaser Indemnitees may otherwise become subject (regardless of whether or not such Damages relate to any third-party claim) and that arise directly or indirectly from any claim or Proceeding
commenced by Edgar Downs or Steven Klein as a result of any facts or circumstances occurring prior to the Closing Date, other than any claim brought by either of them in their capacity as a present or
former officer, director or employee of the Company or any affiliate of the Company for indemnification under the Company's organizational documents, applicable law or the indemnification agreement
entered into between each of them and the Company. 

        Notwithstanding
the provisions of Section 6.2, any indemnification obligation of STIC arising pursuant to this Section 6.3 shall be satisfied exclusively in cash and will
not be subject to the Basket Amount or Shareholder Cap. 

        6.4   Indemnification by Purchaser. Purchaser shall hold harmless and indemnify each of the Shareholder Indemnitees from and
against, and shall compensate and reimburse each of the Shareholder Indemnitees for, any Damages that are directly or indirectly suffered or incurred by the Shareholder Indemnitees or to which any of
the Shareholder Indemnitees may otherwise become subject (regardless of whether or not such Damages relate to any third-party claim) and that arise directly or indirectly from or as a direct or
indirect result of, or are directly or indirectly connected with: 

        (a)   any Breach by the Purchaser of any representation or warranty of the Purchaser contained in this Agreement or any other
Transactional Agreement; 

        (b)   any Breach of any covenant of the Purchaser contained in this Agreement or any other Transactional Agreement; or 

        (c)   any Proceeding relating directly or indirectly to any failure or Breach of the type referred to in clauses "(a)" or "(b)"
above (including any Proceeding commenced by the Shareholders for the purpose of enforcing their rights under this Section 6). 

        The
Shareholder Indemnitees shall not be entitled to indemnification pursuant to the provisions of this Section 6.4 until the total amount of all Damages (including the Damages
arising from such Breach and all other Damages arising from any other Breaches of any representations or warranties) exceeds the Basket Amount (it being understood and agreed that the Basket Amount is
intended as a deductible, and the Purchaser will not be liable for the first $100,000 of Damages for which the Shareholder Indemnitees are entitled to indemnification). Notwithstanding the foregoing,
no Basket Amount shall apply to claims based on fraud or any claim in the nature of fraud. 

36

 

        All
of the indemnification obligations of the Purchaser shall be satisfied exclusively by issuing shares of Purchaser Series 1 Stock to each of the Shareholders on a pro rata
basis in accordance with the respective amounts set forth on Exhibit B; provided, that, the
Purchaser may elect, at its sole option, to satisfy such indemnification obligation in cash; and, provided, further,
that, no issuance of shares of Purchaser Series 1 Stock or cash, as the case may be, shall be issued to the Shareholders in respect of
satisfaction of indemnification obligations on or prior the Rescission Termination Date. Notwithstanding the foregoing, any Breach of any covenant (or any Proceeding relating directly or indirectly to
any such failure or Breach) of the Purchaser contained in Sections 1.1, 1.2(b), 1.2(c), 1.4, 1.6, 4.1, 4.2(b), 6.1(e), 6.3, 6.4, 6.5, 6.6, 7.7, 7.8, 7.10 or 7.12 of this Agreement shall be satisfied
exclusively by the payment in cash of the amount thereof. Any indemnification obligation that may be satisfied by issuance to the Shareholders of shares of Purchaser Series 1 Stock shall be
satisfied by issuing that number of shares of Series 1 Stock with a value (based on the Series 1 Value) equal to the amount of the indemnification obligation. The aggregate number of
shares of Purchaser Series 1 Stock that shall be issued by Purchaser on account of claims for which indemnification shall be satisfied by the issuance of shares of Purchaser Series 1
Stock pursuant to the provisions of this Section 6.4 shall not exceed the number of Escrow Shares (as adjusted for stock splits, stock dividends, recapitalizations and the like).
Notwithstanding the foregoing, no limitation shall apply to claims based on fraud or any claim in the nature of fraud. 

        6.5   Defense of Third-Party Claims. An indemnified party shall have the right at its own expense (which is not indemnifiable
hereunder) to participate jointly with the indemnifying party in the defense of any claim, demand, lawsuit or other Proceeding in connection with which the indemnified party claims indemnification
hereunder but, with respect to any issue involved in such claim, demand, lawsuit or other Proceeding as to which an indemnifying party shall have acknowledged the obligation to indemnify the
indemnified party hereunder, such indemnifying party shall have the sole right to settle or otherwise dispose of such claim, demand, lawsuit or other Proceeding on such terms as the indemnifying
party, in its sole and absolute discretion, shall deem appropriate; provided, however, that the indemnifying party shall not agree to any such
settlement or other disposition that provides for injunctive relief against the Purchaser or Shareholders, as applicable, or otherwise provides for any obligations on the part of the Purchaser or
Shareholders, as applicable (other than the payment of monetary damages for which the indemnifying party will be solely responsible), or any loss of rights of the Purchaser or Shareholders, as
applicable, or that results in the admission of Liability of the Purchaser or the Shareholders, as applicable, without the prior written consent of the Purchaser or Shareholder, as applicable. 

        6.6   Exclusivity of Indemnification Remedies. The parties acknowledge and agree that their sole and exclusive remedy with
respect to any and all claims relating to the subject matter of this Agreement (whether in contract, statute, tort, including negligence or otherwise, but excluding any claim based upon fraud or any
claim in the nature of fraud) shall be pursuant to the indemnification provisions set forth in this Section 6. 

Section 7. MISCELLANEOUS PROVISIONS  

        7.1   Shareholder's Agent.

        (a)   By virtue of the approval of this Agreement by the Shareholders, and without further action of any Shareholder, each
Shareholder shall be deemed to have irrevocably constituted and appointed Kevin Kimberlin as agent and attorney-in-fact (the "Shareholder's
Agent") for and on behalf of the Shareholders, with full power of substitution, to act in the name, place and stead of each Shareholder with respect to Section 6 hereof
and the taking by the Shareholder's Agent of any and all actions and the making of any decisions required or permitted to be taken by the Shareholder's Agent under this Agreement or any other
Transactional Agreements, including the 

37

 

exercise
of the power to: (i) give and receive notices and communications under Section 6 of this Agreement; (ii) authorize delivery to Purchaser of Escrow Shares in satisfaction
of claims for indemnification made by Purchaser under this Agreement; (iii) object to claims for indemnification made by Purchaser under this Agreement; and (iv) take all actions
necessary or appropriate in the good faith judgment of the Shareholder's Agent for the accomplishment of the foregoing. The power of attorney granted in this Section 7.1 is coupled with an
interest and is irrevocable, may be delegated by the Shareholder's Agent and shall survive the death or incapacity or assignment of any interest herein of any Shareholder. The identity of the
Shareholder's Agent and the terms of the agency may be changed, and a successor Shareholder's Agent may be appointed, from time to time (including in the event of the death, disability or other
incapacity of the Shareholder's Agent) by Shareholders whose interest in the Escrow Shares exceed 50%, and any such successor shall succeed the Shareholder's Agent as Shareholder's Agent hereunder. No
bond shall be required of the Shareholder's Agent, and the Shareholder's Agent shall receive no compensation for his services in such capacity. 

        (b)   The Shareholder's Agent shall not be liable for any Liability, loss, damage, penalty, fine, cost or expense incurred
other than in the case of fraud by the Shareholder's Agent while acting in good faith and in the exercise of his reasonable judgment and arising out of or in connection with the acceptance or
administration of his duties hereunder (it being understood that any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of lack of fraud). The Escrow Shares shall be
available to indemnify and hold the Shareholder's Agent harmless against any liability, loss, damage, penalty, fine, cost or expense incurred by the Shareholder's Agent other than in the case of fraud
on the part of the Shareholder's Agent and arising out of or in connection with the acceptance or administration of his duties under this Agreement. The Shareholder's Agent shall be entitled to
recover any out-of-pocket costs and expenses reasonably incurred by the Shareholder's Agent in connection with actions taken by the Shareholder's Agent pursuant to the terms of
this Agreement or the Escrow Shares (including the hiring of legal counsel and the incurring of legal fees and costs) from Escrow Shares (and interest accrued thereunder), without the requirement of
any consent or approval by Purchaser. 

        (c)   From and after the Closing Date, a decision, act, consent or instruction of the Shareholder's Agent shall constitute a
decision of all Shareholders and shall be final, binding and conclusive upon each Shareholder, and Purchaser may rely upon any decision, act, consent or instruction of the Shareholder's Agent as being
the decision, act, consent or instruction of each Shareholder. Purchaser is hereby relieved from any liability to any Person for any acts done by Shareholder's Agent and any acts done by Purchaser in
accordance with any such decision, act, Consent or instruction of the Shareholder's Agent. 

        7.2   Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties
hereto. 

        7.3   Waiver. No failure on the part of any party to exercise any power, right, privilege or remedy under this Agreement, and
no delay on the part of any party in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or
partial exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. No party shall be deemed to have
waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth
in a written instrument duly executed and delivered on behalf of such party; and any such waiver shall not be applicable or have any effect except in the specific instance in which it is given. 

        7.4   Entire Agreement; Counterparts; Exchanges by Facsimile. The Transactional Agreements, together with the Confidentiality
Agreement, constitute the entire agreement and supersede all prior 

38

 

agreements
and understandings, both written and oral, among or between any of the parties with respect to the subject matter hereof and thereof. This Agreement may be executed in several counterparts,
each of which shall be deemed an original and all of which shall constitute one and the same instrument. The exchange of a fully executed Agreement (in counterparts or otherwise) by facsimile shall be
sufficient to bind the parties to the terms and conditions of this Agreement. 

        7.5   Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware,
regardless of the laws that might otherwise govern under applicable principles of conflicts of laws. Each of the parties irrevocably waives the right to trial by jury. 

        7.6   Disclosure Schedule. The Company Disclosure Schedule and Purchaser Disclosure Schedule shall be arranged in separate
parts corresponding to the numbered and lettered sections contained in Section 2 and Section 3, as applicable, and the information disclosed in any numbered or lettered part shall be
deemed to relate to and to qualify only the particular representation or warranty set forth in the corresponding numbered or lettered section in Section 2 or Section 3, as applicable,
and shall not be deemed to relate to or to qualify any other representation or warranty unless such relation or qualification is reasonably apparent based on the text of the disclosure. For purposes
of this Agreement, each statement or other item of information set forth in the Company Disclosure Schedule or Purchaser Disclosure Schedule, as applicable, shall be deemed to be a representation and
warranty made (a) by the Shareholders in Section 2 and (b) by the Purchaser in Section 3. 

        7.7   Attorneys' Fees. In any action at law or suit in equity to enforce this Agreement or the rights of any of the parties
under this Agreement, the prevailing party in such action or suit shall be entitled to receive a reasonable sum for its attorneys' fees and all other reasonable costs and expenses incurred in such
action or suit. 

        7.8   Assignability. This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of, the
parties hereto and their respective successors and assigns; provided, however, that (a) neither this Agreement nor any of the Shareholder's
rights or obligations hereunder may be assigned or delegated by the Shareholders without the prior written consent of Purchaser, and any attempted assignment or delegation of this Agreement or any of
such rights or obligations by any Shareholder without Purchaser's prior written consent shall be void and of no effect and (b) neither this Agreement nor any of the Purchaser's rights or
obligations hereunder may be assigned or delegated by the Purchasers without the prior written consent of STIC, and any attempted assignment or delegation of this Agreement or any of such rights or
obligations by any Purchaser without STIC's prior written consent shall be void and of no effect; provided, that, Purchaser shall be able to freely
assign and delegate this Agreement and Purchaser's rights and obligations hereunder following the Closing in connection with an Acquisition or Asset Transfer, as defined in the Purchaser Restated
Certificate. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person (other than: (i) the parties hereto; and (ii) the Indemnitees to the extent of
their respective rights pursuant to Section 6) any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 

39

 

        7.9   Notices. Any notice or other communication required or permitted to be delivered to any party under this Agreement shall
be in writing and shall be deemed properly delivered, given and received when delivered by hand, by registered mail, by courier or express delivery service or by facsimile to the address or facsimile
telephone number set forth beneath the name of such party below (or to such other address or facsimile telephone number as such party shall have specified in a written notice given to the other
parties hereto): 

if
to Purchaser: 

Aptas, Inc.

1517 Blake Street

Second Floor

Denver, CO 80202

Attention: Perry Evans, Chief Executive Officer

Facsimile: (303) 572-1123 

with
a copy to: 

Cooley
Godward LLP

380 Interlocken Crescent

Suite 900

Broomfield, CO 80021

Attention: Brent D. Fassett, Esq.

Facsimile: (720) 566-4099 

if
to the Shareholder's Agent: 

Kevin
Kimberlin

Spencer Trask Intellectual Capital Company LLC

535 Madison Avenue, 18th Floor

New York, New York 10022

Facsimile: (212) 829-4452 

with
a copy to: 

Greenberg
Traurig

401 East Las Olas Blvd.

Suite 2000

Fort Lauderdale, FL 33301

Attention: Bruce March, Esq.

Facsimile: (954) 765-1477 

if
to any Shareholder, to the address set forth on Exhibit B. 

        7.10 Cooperation. The Shareholders agree to cooperate (and to direct the Company to cooperate) fully with Purchaser and to
execute and deliver such further documents, certificates, agreements and instruments and to take such other actions as may be reasonably requested by Purchaser to evidence or reflect the Acquisition
and to carry out the intent and purposes of this Agreement. 

        7.11 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 of this Agreement or the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. If a final judgment of a court of competent jurisdiction declares that any term or provision of this Agreement is invalid or unenforceable, the parties hereto
agree that the court making such determination shall have the power to limit such term or provision, to delete specific words or phrases or to replace such term or provision with a term or provision
that is 

40

 

valid
and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be valid and enforceable as so modified. In the
event such court does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable term or provision with a valid and enforceable term
or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term or provision. 

        7.12 Waiver of Right of Set-Off. The Purchaser Indemnitees hereby waive any right of set-off which
such Purchaser Indemnitees may have against any assets of the Shareholder Indemnitees which they may hold and any amounts which they may owe to the Shareholder Indemnitees for any reason, including,
without limitation any amount owed by Purchaser or any of its Affiliates to STIC and its Affiliates pursuant to the ISx Debt. The Shareholder Indemnitees hereby waive any right of set-off
which such Shareholder Indemnitees may have against any assets of the Purchaser Indemnitees which they may hold and any amounts which they may owe to the Purchaser Indemnitees. 

        7.13 No Additional Representations and Warranties. Purchaser acknowledges that the Shareholders have not made any
representation or warranty, express or implied, as to the accuracy or completeness of any information regarding the Company or the Shareholders, except as expressly set forth in this Agreement
(including the exhibits hereto) and the Company Disclosure Schedule. Each Shareholder acknowledges that the Purchaser has not made any representation or warranty, express or implied, as to the
accuracy or completeness of any information regarding the Purchaser, except as expressly set forth in this Agreement (including the exhibits hereto) and the Purchaser Disclosure Schedule. 

        7.14 Restrictions on Transfer.

        (a)   Each Shareholder agrees not to make any disposition of any Consideration Shares (including the Escrow Shares) at any time
on or prior to the Rescission Termination Date. 

        (b)   The Shareholders shall have the right, at any time following the Rescission Termination Date and subject to any market
stand-off or similar agreement, to sell all or any portion of the Escrow Shares for cash in one or more transactions designated by such Shareholder and the gross proceeds thereof shall
then act in lieu of the Escrow Shares for all purposes under this Agreement. 

        7.15 Construction. For purposes of this Agreement, whenever the context requires: the singular number shall include the
plural, and vice versa; the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender shall include
masculine and feminine genders. The parties hereto agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the
construction or interpretation of this Agreement. As used in this Agreement, the words "include" and "including," and variations thereof, shall not be deemed to be terms of limitation, but rather
shall be deemed to be followed by the words "without limitation." Except as otherwise indicated, all references in this Agreement to "Sections," "Exhibits" and "Schedules" are intended to refer to
Sections of this Agreement and Exhibits and Schedules to this Agreement. The bold-faced headings contained in this Agreement are for convenience of reference only, shall not be deemed to
be a part of this Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement. 

        7.16 Termination. 

        (a)   This Agreement may be terminated at any time prior to the Closing: (a) by mutual written agreement of the
Shareholder's Agent and Purchaser; or (b) by either the Shareholder's Agent or Purchaser if the Closing shall not have been consummated on or before April 30, 2005;  provided, however, that the
right to terminate this Agreement under this Section 7.16 shall not be available to any party whose failure to take
any action required to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to 

41

 

occur
prior to such date. The party desiring to terminate this Agreement pursuant to clause (b) shall give written notice of such termination to the other party. If this Agreement is terminated
as provided in this Section 7.16, this Agreement shall forthwith become void and there shall be no Liability on the part of any party to this Agreement; provided,
that, the provisions of Sections 4.8, 7.5 and this 7.16 shall survive any termination of this Agreement. 

        (b)   Notwithstanding the provisions of subsection (a) above, this Agreement shall terminate in its entirety and shall
become void concurrently with the consummation of the Rescission (as defined in the Rescission Agreement). 

[Remainder of page intentionally left blank]

42

 

        In Witness Whereof, the parties have caused this Agreement to be executed as of the date first above written. 

	 	 	PURCHASER:
	

 	
 	
APTAS, INC.,

a Delaware corporation
	

 	
 	

By:	
 	

/s/  PERRY EVANS      

	 	 	 	 	Perry Evans

President and Chief Executive Officer
	 	 	 	 	 
	

 	
 	
SHAREHOLDERS:
	

 	
 	
SPENCER TRASK INTELLECTUAL CAPITAL COMPANY LLC,

a Delaware limited liability company
	

 	
 	

By:	
 	

/s/  KEVIN KIMBERLIN      

	 	 	Name:	 	Kevin Kimberlin

	 	 	Title:	 	    

	 	 	 	 	 
	

 	
 	
INTERNATIONAL BUSINESS MACHINES CORPORATION,

a New York corporation
	

 	
 	

By:	
 	

/s/  DAVID L. JOHNSON      

	 	 	Name:	 	David L. Johnson

	 	 	Title:	 	Vice President

	 	 	 	 	 
	

 	
 	
SHAREHOLDER'S AGENT
	

 	
 	

/s/  KEVIN KIMBERLIN      
 Kevin Kimberlin

43

   EXHIBIT A

CERTAIN DEFINITIONS  

        For purposes of the Agreement (including this Exhibit A): 

        Acquisition.    "Acquisition" shall have the meaning set forth in Recital B of the Agreement. 

        Affiliate.    "Affiliate" shall mean any Person under common control with the Company or Purchaser, as applicable, within the
meaning of Sections 414(b), (c), (m) and (o) of the Code, and the regulations issued thereunder. 

        Associate.    "Associate" shall mean any current or former employee, independent contractor, officer or director or any
Affiliate of the Company or Purchaser, as applicable. 

        Balance Sheet Date.    "Balance Sheet Date" shall have the meaning set forth in Section 2.4(a) of the Agreement. 

        Basket Amount.    "Basket Amount" shall have the meaning set forth in Section 6.2 of the Agreement. 

        Benefit Agreement.    "Benefit Agreement" shall mean each management, employment, severance, change in control, consulting,
relocation, repatriation or expatriation agreement or other Contract between the Company or Purchaser (as applicable) or any Affiliate of the Company or Purchaser (as applicable) and any Associate of
the Company or Purchaser (as applicable), including the Retention Arrangements, other than any such Contract with an Associate of the Company or Purchaser (as applicable) that is terminable "at will"
without any obligation on the part of the Company or Purchaser (as applicable) or Affiliate of the Company or Purchaser (as applicable) to make any payments or provide any benefits in connection with
such termination. 

        Benefit Plan.    "Benefit Plan" shall mean each employment, consulting, salary, bonus, vacation, deferred compensation,
incentive compensation, stock purchase, stock option or other equity-based, severance, termination, retention, change-in-control, death and disability benefits,
hospitalization, medical, life or other insurance, flexible benefits, supplemental unemployment benefits, other welfare fringe benefits, profit-sharing, pension or retirement plan, program, Contract
or commitment and each other employee benefit plan or arrangement, whether written or unwritten, and whether funded or unfunded, including each "employee benefit plan," within the meaning of
Section 3(3) of ERISA (whether or not ERISA is applicable to such plan), that is or has been sponsored, maintained, contributed to or required to be contributed to by the Company or Purchaser
(as applicable) or any Affiliate of the Company or Purchaser (as applicable) for the benefit of any Associate of the Company or Purchaser (as applicable) or with respect to the Company or Purchaser
(as applicable) or any Affiliate of the Company or Purchaser (as applicable) has or may have any Liability or obligation. 

        Book Entries.    "Book Entries" shall have the meaning set forth in Section 1.5 of the Agreement. 

        Breach.    There shall be deemed to be a "Breach" of a representation, warranty, covenant, obligation or other provision if
there is or has been any inaccuracy in or breach (including any inadvertent or innocent breach) of, or any failure (including any inadvertent failure) to comply with or perform, such representation,
warranty, covenant, obligation or other provision; and the term "Breach" shall be deemed to refer to any such inaccuracy, breach or failure. 

        Claim Notice.    "Claim Notice" shall have the meaning set forth in Section 6.1(d) of the Agreement. 

        Closing.    "Closing" shall have the meaning set forth in Section 1.3 of the Agreement. 

A-1

 

        Closing Date.    "Closing Date" shall have the meaning set forth in Section 1.3 of the Agreement. 

        COBRA. "COBRA" shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended. 

        Code.    "Code" shall mean the Internal Revenue Code of 1986, as amended. 

        Company.    "Company" shall have the meaning set forth in Recital A of the Agreement. 

        Company Contract.    "Company Contract" shall mean any Contract: (a) to which the Company is a party; (b) by which
the Company or any IP of the Company or any other asset of the Company is or may become bound or under which the Company has, or may become subject to, any obligation; or (c) under which the
Company has or may acquire any right or interest. 

        Company Disclosure Schedule.    "Company Disclosure Schedule" shall mean the disclosure schedule that has been prepared by the
Shareholders in accordance with the requirements of Section 7.6 of the Agreement and that has been delivered by the Shareholders to Purchaser on the date of the Agreement. 

        Company Financial Statements.    "Company Financial Statements" shall have the meaning set forth in Section 2.4(a) of the
Agreement. 

        Company IP Contract.    "Company IP Contract" shall mean any Contract to which the Company is or was a party or by which the
Company is or was bound or to which any IP of the Company is or was subject, that contains any assignment or license of, or any covenant not to assert or enforce, any Intellectual Property Right or
that otherwise relates to any IP of the Company or any Intellectual Property developed by, with or for the Company. 

        Company Options.    "Company Options" shall have the meaning set forth in Section 1.4(a) of the Agreement. 

        Company Returns.    "Company Returns" shall have the meaning set forth in Section 2.15(a) of the Agreement. 

        Company Shares.    "Company Shares" shall have the meaning set forth in Recital A of the Agreement. 

        Company Source Code.    "Company Source Code" shall mean the human-readable source code version of any Company Software,
including all calculation formulae embodied in the Company Software, descriptions or details of any algorithms embodied in the Company Software and all annotations, commentary, instructions,
specifications (including design, functional and other technical specifications), programmer notes (technical or otherwise), logic diagrams, flowcharts, input and output layouts, field descriptions,
sort sequences, data dictionaries and file layouts relating to any Company Software. 

        Company Unaudited Balance Sheet.    "Company Unaudited Balance Sheet" shall have the meaning set forth in Section 2.4(a)
of the Agreement. 

        Confidentiality Agreement.    "Confidentiality Agreement" shall mean the Nondisclosure Agreement dated January 27, 2004
between the Company and Purchaser. 

        Consent.    "Consent" shall mean any approval, consent, ratification, permission, waiver or authorization (including any
Governmental Authorization). 

        Consideration Shares.    "Consideration Shares" shall have the meaning set forth in Section 1.2(a) of the Agreement. 

A-2

 

        Contract.    "Contract" shall mean any written, oral or other agreement, contract, subcontract, lease, understanding,
arrangement, instrument, note, option, warranty, purchase order, license, sublicense, insurance policy, benefit plan or legally binding commitment or undertaking of any nature. 

        Damages.    "Damages" shall mean any loss, damage, injury, decline in value, Liability, claim, demand, settlement, judgment,
award, fine, penalty, Tax, fee (including any legal fee, expert fee, accounting fee or advisory fee), charge, cost (including any cost of investigation) or expense of any nature, net of any insurance
recoveries or recoveries from any third parties. 

        Encumbrance.    "Encumbrance" shall mean any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance,
claim, infringement, interference, option, right of first refusal, preemptive right, community property interest or restriction of any nature (including any restriction on the voting of any security,
any restriction on the transfer of any security or other asset, any restriction on the receipt of any income derived from any asset, any restriction on the use of any asset and any restriction on the
possession, exercise or transfer of any other attribute of ownership of any asset). 

        Entity.    "Entity" shall mean any corporation (including any non-profit corporation), general partnership, limited
partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint stock company), firm, society or other
enterprise, association, organization or entity. 

        Environmental Requirement.    "Environmental Requirement" means any U.S. federal, state, local or foreign Legal Requirement,
order, writ, injunction, directive, authorization, judgment, decree, grant, franchise, Contract or other governmental restriction and requirement, whether judicial or administrative, relating to
pollution or protection of human health and safety, natural resources or the environment (including ambient air, surface water, ground water, land surface or subsurface strata). 

        ERISA.    "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended. 

        Escrow Shares.    "Escrow Shares" shall have the meaning set forth in Section 1.2(b) of the Agreement. 

        Exchange Act.    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

        Expiration Date.    "Expiration Date" shall mean the earlier to occur of (a) fifteen (15) months following the
Closing Date and (b) the completion of the audit of Purchaser's 2004 financial statements. 

        Governmental Authorization.    "Governmental Authorization" shall mean any: (a) permit, license, certificate, franchise,
permission, variance, clearance, registration, qualification or authorization issued, granted, given or otherwise made available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement; or (b) right under any Contract with any Governmental Body. 

        Governmental Body.    "Governmental Body" shall mean any: (a) nation, state, commonwealth, province, territory, county,
municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority of any
nature (including any governmental division, department, agency, commission, instrumentality, official, ministry, fund, foundation, center, organization, unit, body or Entity and any court or other
tribunal); or (d) self-regulatory organization. 

        Indemnitees.    "Indemnitees" shall mean the Purchaser Indemnitees and the Shareholder Indemnitees collectively. 

A-3

 

        Insurance Deductible Amount.    "Insurance Deductible Amount" shall mean (a) 1.5 multiplied by (b) the unpaid
portion of the deductible on the insurance policy under which recovery is being sought, at the time such recovery is being sought. 

        Intellectual Property.    "Intellectual Property" shall mean algorithms, application programmers' interfaces (APIs), apparatus,
circuit designs and assemblies, gate arrays, IP cores, net lists, photomasks, semiconductor devices, test vectors, databases, data and results from simulations or tests, design rules, diagrams,
formulae, GDSII files, inventions (whether or not patentable), know-how, logos, marks (including brand names, product names, logos and slogans), methods, network configurations and
architectures, processes, proprietary information, protocols, schematics, simulation methods or techniques, specifications, software, software code (in any form, including source code and executable
or object code), software development tools, subroutines, techniques, test vectors, user interfaces, uniform resource locators (URLs), web sites, works of authorship and other forms of technology
(whether or not embodied in any tangible form and including all tangible embodiments of the foregoing, such as instruction manuals, laboratory notebooks, prototypes, samples, studies and summaries). 

        Intellectual Property Rights.    "Intellectual Property Rights" shall mean all rights of the following types, which may exist or
be created under the laws of any jurisdiction in the world: (a) rights associated with works of authorship, including exclusive exploitation rights, copyrights, moral rights and mask works;
(b) trademark and trade name rights and similar rights; (c) trade secret rights; (d) patent and industrial property rights; (e) other proprietary rights in Intellectual
Property; and (f) rights in or relating to registrations, renewals, extensions, combinations, divisions and reissues of, and applications for, any of the rights referred to in clauses "(a)"
through "(e)" above. 

        IP.    "IP" shall have the meaning set forth in Section 2.9(a) of the Agreement. 

        IPO.    "IPO" shall mean Purchaser's first firm commitment underwritten public offering of its common stock registered under the
Securities Act of 1933, as amended. 

        ISx Debt.    "ISx Debt" shall mean the aggregate indebtedness evidenced by that certain Amended and Restated Secured Convertible
Promissory Note, issued by the Company to Kevin Kimberlin Partners, L.P. on the date hereof, in the principal amount of $14,764.285.39. 

        Legal Proceeding.    "Legal Proceeding" shall mean any action, suit, litigation, arbitration, proceeding (including any civil,
criminal, administrative, investigative or appellate proceeding), hearing, inquiry, audit, examination or investigation commenced, brought, conducted or heard by or before, or otherwise involving, any
court or other Governmental Body or any arbitrator or arbitration panel. 

        Legal Requirement.    "Legal Requirement" shall mean any federal, state, local, municipal, foreign or other law, statute,
constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into
effect by or under the authority of any Governmental Body. 

        Letter Agreement.    "Letter Agreement" shall have the meaning set forth in Section 4.1 of the Agreement. 

        Liability.    "Liability" shall mean any debt, obligation, duty or liability of any nature (including any unknown, undisclosed,
unmatured, unaccrued, unasserted, contingent, indirect, conditional, implied, vicarious, derivative, joint, several or secondary liability), regardless of whether such debt, obligation, duty or
liability would be required to be disclosed on a balance sheet prepared in accordance with generally accepted accounting principles and regardless of whether such debt, obligation, duty or liability
is immediately due and payable. 

A-4

 

        Material Adverse Effect.    "Material Adverse Effect" with respect to any company shall mean any effect, change, event or
circumstance that, is or would reasonably be expected to be or to become materially adverse to, or has or would reasonably be expected to have or result in a material adverse effect on: (a) the
business, condition (financial or otherwise), capitalization, assets (including Intellectual Property), Liabilities (accrued, contingent or otherwise), operations, or financial performance of the
company and its Subsidiaries taken as a whole; or (b) the ability of the company to consummate the Acquisition or to perform any of its covenants or obligations under this Agreement;  provided, that,
 Material Adverse Effect does not mean any one or more of the following effects, events or changes: (i) general changes in
economic conditions; (ii) changes in, or events affecting, the company's industry generally which do not have a materially disproportionate effect on the company and its Subsidiaries, taken as
a whole; (iii) the effect of any change arising in connection with any "act of God" including, without limitation, weather, natural disasters and earthquakes, hostilities, acts of war, sabotage
or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of war, sabotage or terrorism or military actions (except to the extent the effect of such change
has a materially disproportionate effect on the company and its Subsidiaries, taken as a whole, as compared to other persons in the industry in which the company and its Subsidiaries conduct their
business); (iv) changes, effects or events resulting from or arising out of the public announcement of the execution of this Agreement or changes, effects or events resulting from compliance
with this Agreement; (v) the taking of any action by the company that has been approved in writing by the other parties to this Agreement; (vi) any change or effect resulting from a
change in accounting rules or procedures announced by the Financial Accounting Standards Board, the Securities and Exchange Commission or any other accounting body with authority to promulgate U.S.
generally accepted accounting principles; or (vii) any effect, event or change resulting from a Breach of this Agreement by any other party to this Agreement. 

        Material Contract.    "Material Contract" shall mean: 

        (i)    any Contract: (A) relating to the employment of, or the performance of services by, any employee or consultant;
(B) pursuant to which the Company or Purchaser, as applicable, is or may become obligated to make any severance, termination or similar payment to any current or former employee or director; or
(C) pursuant to which the Company or Purchaser, as applicable, is or may become obligated to make any bonus or similar payment (other than payments constituting base salary) in excess of
$100,000 to any current or former employee or director; 

        (ii)   any Company IP Contract or Purchaser IP Contract, as applicable, or any Contract that provides for indemnification of
any Associate of the Company or Purchaser, as applicable, or any current or former agent of the Company or Purchaser, as applicable; 

        (iii) any Contract imposing any restriction on the right or ability of the Company or Purchaser, as applicable: (A) to
compete with any other Person; (B) to solicit, hire or retain any Person as an employee, consultant or independent contractor; or (C) to transact business or deal in any other manner
with any other Person; 

        (iv)  any Contract (other than Contracts evidencing Company Options and options or warrants to purchase shares of capital
stock of Purchaser): (A) relating to the acquisition, issuance, voting, registration, sale or transfer of any securities; (B) providing any Person with any preemptive right, right of
participation, right of maintenance or similar right with respect to any securities; or (C) providing the Company or Purchaser, as the case may be, with any right of first refusal with respect
to, or right to repurchase or redeem, any securities; and 

        (v)   any Contract that has a term of more than 60 days and that may not be terminated by the Company or Purchaser, as
applicable, (without penalty) within 60 days after the delivery of a termination notice and that contemplates or involves the payment or delivery of cash or other consideration in an amount or
having a value in excess of $100,000 in the aggregate, or 

A-5

 

contemplates
or involves the performance of services having a value in excess of $100,000 in the aggregate. 

        Person.    "Person" shall mean any individual, Entity or Governmental Body. 

        Proceeding.    "Proceeding" shall mean any action, suit, litigation, arbitration, proceeding (including any civil, criminal,
administrative, investigative or appellate proceeding and any informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation commenced, brought,
conducted or heard by or before, or otherwise involving, any Governmental Body or any arbitrator or arbitration panel. 

        Purchaser Balance Sheet Date.    "Purchaser Balance Sheet Date" shall have the meaning set forth in Section 3.4 of the
Agreement. 

        Purchaser Closing Certificate.    "Purchaser Closing Certificate" shall have the meaning set forth in
Section 5.2(d)(ii) of the Agreement. 

        Purchaser Contract.    "Purchaser Contract" shall mean any Contract: (a) to which the Purchaser is a party; (b) by
which the Purchaser or any IP of the Purchaser or any other asset of the Purchaser is or may become bound or under which the Purchaser has, or may become subject to, any obligation; or
(c) under which the Purchaser has or may acquire any right or interest. 

        Purchaser Disclosure Schedule.    "Purchaser Disclosure Schedule" shall mean the disclosure schedule that has been prepared by
the Purchaser in accordance with the requirements of Section 7.6 of the Agreement and that has been delivered by the Purchaser to the Shareholders on the date of the Agreement. 

        Purchaser Financial Statements.    "Purchaser Financial Statements" shall have the meaning set forth in Section 3.4 of
the Agreement. 

        Purchaser Indemnitees.    "Purchaser Indemnitees" shall mean (a) the Purchaser, (b) the Purchaser's current and
future affiliates; (c) the respective Representatives of the Persons referred to in clauses "(a)" and "(b); and (d) the respective successors and assigns of the Persons referred to in
clauses "(a)", "(b)" and "(c)" above; provided, however, that the Shareholders shall not be deemed to be "Purchaser Indemnitees". 

        Purchaser IP Contract.    "Purchaser IP Contract" shall mean any Contract to which the Purchaser is or was a party or by which
the Purchaser is or was bound or to which any IP of the Purchaser is or was subject, that contains any assignment or license of, or any covenant not to assert or enforce, any Intellectual Property
Right or that otherwise relates to any IP of the Purchaser or any Intellectual Property developed by, with or for the Purchaser. 

        Purchaser Restated Certificate.    "Purchaser Restated Certificate" shall have the meaning set forth in Section 3.3(g) of
the Agreement. 

        Purchaser Returns.    "Purchaser Returns" shall have the meaning set forth in Section 3.15(a) of the Agreement. 

        Purchaser Securities.    "Purchaser Securities" shall have the meaning set forth in Section 2.24 of the Agreement. 

        Purchaser Series 1 Stock.    "Purchaser Series 1 Stock" shall have the meaning set forth in Section 1.2(a)
of the Agreement. 

        Purchaser Unaudited Balance Sheet.    "Purchaser Unaudited Balance Sheet" shall have the meaning set forth in Section 3.4
of the Agreement. 

A-6

 

        Recapitalization.    "Recapitalization" shall have the meaning set forth in Section 3.3(b) of the Agreement. 

        Registered IP.    "Registered IP" shall mean all Intellectual Property Rights that are registered, filed or issued by, with or
under the authority of any Governmental Body, including all patents, registered copyrights, registered mask works and registered trademarks and all applications for any of the foregoing. 

        Remaining Shares.    "Remaining Shares" shall have the meaning set forth in Section 1.2(c) of the Agreement. 

        Representatives.    "Representatives" shall mean directors, officers, other employees, agents, attorneys, accountants, advisors
and representatives. 

        Rescission Agreement.    "Rescission Agreement" shall have the meaning set forth in Section 5.1(d)(vi) of the
Agreement. 

        Rescission Termination Date.    "Rescission Termination Date" shall have the meaning set forth in Section 1.2(b) of the
Agreement. 

        Retention Arrangements.    "Retention Arrangements" shall mean the Company's employee retention plan and key executive retention
plan described in Part 2.5 of the Company Disclosure Schedule. 

        Securities Act.    "Securities Act" shall mean the Securities Act of 1933, as amended. 

        Series 1 Value.    "Series 1 Value" shall mean (a) on or prior to the consummation of the IPO, $3.275; and
(b) on or following the consummation of the IPO, the average of the closing prices of Purchaser's common stock on all securities exchanges on which such security may at the time be listed, or,
if there has been no sales on any such exchange on any day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day, or, if on any day such security is not
so listed, the average of the representative bid and asked prices quoted in the NASDAQ System as of 4:00 P.M., New York time, or, if on any day such security is not quoted in the NASDAQ System,
the average of the highest bid and lowest asked prices on such day in the domestic over-the-counter market as reported by the National Quotation Bureau, Incorporated, or any
similar successor organization, in each such case averaged over a period of 21 days consisting of the day as of which "Series 1 Value" is being determined and the 20 consecutive business
days prior to such day; provided, that, if such security is not listed on any securities exchange or quoted in the NASDAQ System or the
over-the-counter market, the "Series 1 Value" shall be the fair value thereof determined jointly by the Company and the Shareholder's Agent (if such parties are unable
to reach agreement within a reasonable period of time, such fair value shall be determined by an appraiser jointly selected by the Company and the Shareholder's Agent; the determination of such
appraiser shall be final and binding upon the parties, and the fees and expenses of such appraiser shall be borne equally by the Company and the Shareholders). 

        Shareholder Cap.    "Shareholder Cap" shall have the meaning set forth in Section 6.2 of the Agreement. 

        Shareholder Closing Certificate.    "Shareholder Closing Certificate" shall have the meaning set forth in
Section 5.1(d)(iii) of the Agreement. 

        Shareholder Indemnitees.    "Shareholder Indemnitees" shall mean (a) the Shareholders, (b) each of the
Shareholder's current and future affiliates; (c) the respective Representatives of the Persons referred to in clauses "(a)" and "(b); and (d) the respective successors and assigns of the
Persons referred to in clauses "(a)", "(b)" and "(c)" above. 

A-7

 

        Shareholder's Agent.    "Shareholder's Agent" shall have the meaning set forth in Section 7.1 of the Agreement. 

        Shareholder Stock Certificates.    "Shareholder Stock Certificates" shall have the meaning set forth in Section 1.5 of
the Agreement. 

        Software.    "Software" shall mean any software (including firmware and other software embedded in hardware devices) owned,
developed (or currently being developed), used, marketed, distributed, licensed or sold at any time (other than non-customized third-party software solely for internal use on a
non-exclusive basis). 

        Stock Assignment.    "Stock Assignment" shall have the meaning set forth in Section 1.5 of the Agreement. 

        Subsidiary.    An entity shall be deemed to be a "Subsidiary" of another Person if such Person directly or indirectly owns or
purports to own, beneficially or of record, (a) an amount of voting securities of other interests in such Entity that is sufficient to enable such Person to elect at least a majority of the
members of such Entity's board of directors or other governing body, or (b) at least 50% of the outstanding equity, voting, beneficial or financial interests in such Entity. 

        Tax.    "Tax" shall mean any federal, state, local, foreign or other tax (including any income tax, franchise tax, capital gains
tax, gross receipts tax, value-added tax, surtax, estimated tax, unemployment tax, national health insurance tax, excise tax, ad valorem tax, transfer tax, stamp tax, sales tax, use tax, property tax,
business tax, withholding tax or payroll tax), levy, assessment, tariff, duty (including any customs duty), deficiency or fee, and any related charge or amount (including any fine, penalty, addition
to tax or interest), imposed, assessed or collected by or under the authority of any Governmental Body. 

        Tax Return.    "Tax Return" shall mean any return (including any information return), report, statement, declaration, estimate,
schedule, notice, notification, form, election, certificate or other document or information, and any amendment or supplement to any of the foregoing, filed with or submitted to, or required to be
filed with or submitted to, any Governmental Body in connection with the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or
enforcement of or compliance with any Legal Requirement relating to any Tax. 

        Transactional Agreements.    "Transactional Agreements" shall mean (a) the Agreement; (b) the Shareholder Closing
Certificate; (c) the Purchaser Closing Certificate; (d) the Letter Agreement; (e) the Rescission Agreement; and (f) the certificates and documents delivered pursuant to
Sections 5.1(d) and 5.2(d). 

A-8

   EXHIBIT B  

	Name and Address of Shareholder
 
	 	Purchaser

Series 1 Stock

issued at Closing
	 	Number of

Escrow Shares
	 	Aggregate Number

of Shares of Purchaser

Series 1 Stock

	Spencer Trask Intellectual

Capital Company LLC

535 Madison Avenue

18th Floor

New York, NY 10022

Attention: Bruno Lerer

Telephone: (212) 326-0274

Facsimile: (212) 829-4453	 	3,119,916	 	767,769	 	3,887,685
	

International Business

Machines Corporation

New Orchard Road

Armonk, NY 10504

Attention: Hyman Buchwald

Facsimile: (914) 499-6006	
 	

167,784	
 	

36,831	
 	

204,615

B-1

   EXHIBIT C

PURCHASER RESTATED CERTIFICATE
  Provided Separately Herein  

A-2

 
EXHIBIT D

LETTER AGREEMENT
  Provided Separately Herein  

A-3

 
EXHIBIT E

RESCISSION AGREEMENT
  Provided Separately Herein  

A-4

 
EXHIBIT F

ISx DEBT AGREEMENTS
  Provided Separately Herein  

A-5

 
EXHIBIT G

WORKING CAPITAL FACILITY LETTER
  Provided Separately Herein  

A-6

 
EXHIBIT H

M&A LETTER AGREEMENT
  Provided Separately Herein  

A-7

 
EXHIBIT I

OPINION
  Provided Separately Herein  

A-8

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Exhibit 10.13    
    

        ASSET PURCHASE AGREEMENT  

among: 

YP WEB PARTNERS, LLC,
  a Louisiana limited liability company; 

YPSOLUTIONS.COM, INC.,
  a Nevada corporation; 

THE HAMMACK-JONES GROUP, LLC,
  a Louisiana limited liability company; 

and 

APTAS, INC.,
  a Delaware corporation 

Dated
as of March 31, 2005 

  

	1.	 	SALE OF ASSETS; RELATED TRANSACTIONS	 	1
	 	 	1.1	 	Sale of Assets	 	1
	 	 	1.2	 	Purchase Price	 	2
	 	 	1.3	 	Sales Taxes	 	4
	 	 	1.4	 	Allocation	 	4
	 	 	1.5	 	Closing	 	4
	2.	 	REPRESENTATIONS AND WARRANTIES OF THE MEMBERS AND THE SELLER	 	5
	 	 	2.1	 	Due Organization; No Subsidiaries; Authority	 	5
	 	 	2.2	 	Organizational Documents; Records	 	6
	 	 	2.3	 	Capitalization	 	6
	 	 	2.4	 	Financial Statements	 	6
	 	 	2.5	 	Absence of Changes	 	7
	 	 	2.6	 	Title To Assets	 	8
	 	 	2.7	 	[reserved]	 	8
	 	 	2.8	 	Receivables	 	8
	 	 	2.9	 	Customers	 	9
	 	 	2.10	 	Equipment, Etc.	 	9
	 	 	2.11	 	Real Property	 	9
	 	 	2.12	 	Intellectual Property	 	9
	 	 	2.13	 	Contracts	 	13
	 	 	2.14	 	Liabilities	 	14
	 	 	2.15	 	Compliance with Legal Requirements	 	14
	 	 	2.16	 	Governmental Authorizations	 	15
	 	 	2.17	 	Tax Matters	 	15
	 	 	2.18	 	Employee And Labor Matters	 	16
	 	 	2.19	 	Employee Benefit Plans and Compensation	 	17
	 	 	2.20	 	Environmental Matters	 	20
	 	 	2.21	 	Performance of Services	 	20
	 	 	2.22	 	Insurance	 	20
	 	 	2.23	 	Related Party Transactions	 	21
	 	 	2.24	 	Certain Payments, Etc	 	21
	 	 	2.25	 	Proceedings; Orders	 	21
	 	 	2.26	 	Authority; Binding Nature of Agreements	 	22
	 	 	2.27	 	Non-Contravention; Consents	 	22
	 	 	2.28	 	Brokers	 	23
	 	 	2.29	 	Full Disclosure	 	23
	3.	 	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	 	23
	 	 	3.1	 	Due Organization; No Subsidiaries; Etc	 	23
	 	 	3.2	 	Organizational Documents; Records	 	23
	 	 	3.3	 	Purchaser Financial Statements	 	23
	 	 	3.4	 	Absence of Changes	 	24
	 	 	3.5	 	Brokers	 	24
	 	 	3.6	 	Authority and Related Matters	 	25
	 	 	3.7	 	ISx Financial Statements	 	25
	 	 	3.8	 	Intellectual Property	 	25
	 	 	3.9	 	Liabilities	 	29
	 	 	3.10	 	Proceedings; Orders	 	29
	 	 	3.11	 	ISx Intellectual Property	 	29
	 	 	3.12	 	Full Disclosure	 	29
	4.	 	INVESTMENT REPRESENTATIONS AND COVENANTS	 	30
	 	 	4.1	 	Exemption from Registration	 	30

1

 

	 	 	4.2	 	Legends	 	30
	 	 	4.3	 	Market Stand-Off Agreement	 	30
	 	 	4.4	 	Investment Representations	 	31
	5.	 	INDEMNIFICATION, ETC	 	32
	 	 	5.1	 	Survival of Representations And Covenants	 	32
	 	 	5.2	 	Indemnification By The Members And The Seller	 	33
	 	 	5.3	 	Indemnification By The Purchaser	 	34
	 	 	5.4	 	Setoff	 	35
	 	 	5.5	 	Exclusive Remedy	 	35
	 	 	5.6	 	Defense of Third-Party Claims	 	35
	 	 	5.7	 	Exercise of Remedies By Indemnitees Other Than The Purchaser	 	36
	 	 	5.8	 	Allocation	 	36
	 	 	5.9	 	Insurance and Taxes	 	36
	 	 	5.10	 	In Rem Liability	 	36
	6.	 	CERTAIN COVENANTS	 	37
	 	 	6.1	 	Operation of Business	 	37
	 	 	6.2	 	Notification	 	37
	 	 	6.3	 	No Negotiation	 	37
	 	 	6.4	 	Best Efforts	 	38
	 	 	6.5	 	Confidentiality	 	38
	 	 	6.6	 	Further Actions	 	38
	 	 	6.7	 	Publicity	 	38
	 	 	6.8	 	Change of Name	 	38
	 	 	6.9	 	Payment of Liabilities; Conduct of Business	 	38
	7.	 	CONDITIONS TO CLOSING AND TERMINATION	 	39
	 	 	7.1	 	General	 	39
	 	 	7.2	 	Obligation of the Purchaser	 	39
	 	 	7.3	 	Obligations of the Seller and the Members	 	40
	 	 	7.4	 	Frustration	 	41
	 	 	7.5	 	Termination	 	41
	 	 	7.6	 	Termination Procedures	 	41
	 	 	7.7	 	Effect of Termination	 	41
	8.	 	MISCELLANEOUS PROVISIONS	 	42
	 	 	8.1	 	Further Assurances	 	42
	 	 	8.2	 	Fees and Expenses	 	42
	 	 	8.3	 	Attorneys' Fees	 	42
	 	 	8.4	 	Notices	 	42
	 	 	8.5	 	Time of The Essence	 	44
	 	 	8.6	 	Headings	 	44
	 	 	8.7	 	Counterparts	 	44
	 	 	8.8	 	Governing Law	 	44
	 	 	8.9	 	Successors And Assigns; Parties In Interest	 	44
	 	 	8.10	 	Specific Performance	 	45
	 	 	8.11	 	Waiver	 	45
	 	 	8.12	 	Amendments	 	45
	 	 	8.13	 	Severability	 	45
	 	 	8.14	 	Entire Agreement	 	46
	 	 	8.15	 	Construction	 	46
	 	 	8.16	 	Seller Disclosure Schedule and Purchaser Disclosure Schedule	 	46

2

ASSET PURCHASE AGREEMENT  

        THIS ASSET PURCHASE AGREEMENT is entered into as of March 31, 2005, by and among:  YP WEB PARTNERS, LLC,
 a Louisiana limited liability company (the "Seller");  YPSOLUTIONS.COM, Inc., a Nevada corporation, and THE HAMMACK-JONES GROUP, LLC, a Louisiana
limited liability company (collectively, the "Members"); and APTAS, INC., a Delaware corporation
(the "Purchaser"). Certain capitalized terms used in this Agreement are defined in Exhibit A. 

RECITALS  

        A.    The Members are the sole members of the Seller. 

        B.    The Members and the Seller wish to provide for the sale of substantially all of the assets of the Seller to the Purchaser,
and the assumption of substantially all liabilities of the Seller by the Purchaser, each on the terms set forth in this Agreement. 

AGREEMENT  

        The parties to this Agreement, intending to be legally bound, agree as follows: 

1.     SALE OF ASSETS; RELATED TRANSACTIONS.  

        1.1   Sale of Assets.    The Seller shall, and the Members shall cause the Seller to, cause to be sold, assigned,
transferred, conveyed and delivered to the Purchaser, at the Closing (as defined below), good and valid title to the Assets (as defined below), free of any Encumbrances, on the terms and subject to
the conditions set forth in this Agreement. To the extent either of the Members has any interest in any of the Assets, such Member or Members shall cause to be sold, assigned, transferred, conveyed
and delivered to the Purchaser, free of any Encumbrances, good and valid title to such Assets. For purposes of this Agreement, "Assets" shall mean and include: all of the properties, rights, interests
and other tangible and intangible assets of the Seller (wherever located and whether or not required to be reflected on a balance sheet prepared in accordance with GAAP). Without limiting the
generality of the foregoing, the Assets shall include: 

        (a)   all cash and cash equivalents of the Seller as of the Closing Date, if any; 

        (b)   all accounts receivable, notes receivable and other receivables of the Seller (including all accounts receivable
identified in Part 2.8 of the Seller Disclosure Schedule and all accounts receivable of the Seller that have arisen since December 31, 2004); 

        (c)   all inventories and work-in-progress of the Seller, and all rights to collect from customers (and
to retain) all fees and other amounts payable, or that may become payable, to the Seller with respect to services performed on behalf of the Seller on or prior to the Closing Date; 

        (d)   all equipment, materials, prototypes, tools, supplies, vehicles, furniture, fixtures, improvements and other tangible
assets of the Seller (including the tangible assets identified in Part 2.10 of the Seller Disclosure Schedule); 

        (e)   all advertising and promotional materials possessed by the Seller; 

        (f)    all Intellectual Property and Intellectual Property Rights and related goodwill of the Seller (including the right to use
the names "YPSolutions," "YPSolutions.com," and "YP Web Partners" and variations of each such name, and the Intellectual Property and Intellectual Property Rights identified in Part 2.12 of the
Seller Disclosure Schedule); 

        (g)   all rights of the Seller (and, if applicable, the Members) under the Seller Contracts (including those Contracts
identified in Part 2.13 of the Seller Disclosure Schedule); 

 

        (h)   all Governmental Authorizations held by the Seller (including the Governmental Authorizations identified in
Part 2.16 of the Seller Disclosure Schedule); 

        (i)    all claims (including claims for past infringement or misappropriation of Intellectual Property or Intellectual Property
Rights) and causes of action of the Seller against other Persons (regardless of whether or not such claims and causes of action have been asserted by the Seller), and all rights of indemnity, warranty
rights, rights of contribution, rights to refunds, rights of reimbursement and other rights of recovery possessed by the Seller (regardless of whether such rights are currently exercisable); and 

        (j)    all books, records, files and data of the Seller (but excluding the minute books, stock books and other internal
corporate documents of the Seller). 

        1.2   Purchase Price.

        (a)   As consideration for the sale of the Assets to the Purchaser: 

          (i)  at the Closing, the Purchaser shall pay to the Seller, in cash, a total of $10,000,000; 

         (ii)  at the Closing, the Purchaser shall issue to Seller a promissory note in the face amount of $10,000,000, subject to
conversion, adjustment and offset upon the terms thereof, substantially in the form attached hereto as Exhibit B (the
"Consideration Note"); 

       (iii)  at the Closing, the Seller shall transfer all right, title and interest in and to the Assets, and the Purchaser shall
assume the Assumed Liabilities by delivering to the Seller an Assignment and Assumption Agreement, in substantially the form of Exhibit C (the
"Assignment Agreement"); 

        (b)   For purposes of this Agreement "Assumed Liabilities" shall mean only the following liabilities of the Seller: 

          (i)  all accounts payable and accrued expenses of the Seller that arose from bona fide transactions entered into in the
Ordinary Course of Business that remain unpaid as of the Closing Date, but, with respect to amounts that arose or became payable prior to December 31, 2004, only to the extent and in the amount
reflected in the "accounts payable" entry and the respective accrued expense account entries in the "liabilities" column of the balance sheet of the Seller as of December 31, 2004; and 

         (ii)  the obligations of the Seller under the Contracts identified in Part 2.13 of the Seller Disclosure Schedule, the
Intellectual Property Rights and the Governmental Authorizations, but only to the extent such obligations (A) arise after the Closing Date, (B) do not arise from or relate to any Breach
by the Seller of any provision of any of such Contracts, and (C) do not arise from or relate to any event, circumstance or condition occurring or existing on or prior to the Closing Date that,
with notice or lapse of time, would constitute or result in a Breach of any of such Contracts; 

       (iii)  all other Liabilities of the Seller identified in Part 2.14 of the Seller Disclosure Schedule; 

        (c)   Notwithstanding the foregoing, and notwithstanding anything to the
contrary contained in this Agreement, the "Assumed Liabilities" shall not include, and the Purchaser shall not be required to assume or to perform or discharge: 

          (i)  any Liability of any Member or any other Person, except for the Seller; 

         (ii)  liabilities relating to (x) the promissory note payable to Yellow Magic Incorporated in face amount of $550,000
or (y) the Membership Interest Purchase Agreement between the Seller and Yellow Magic Incorporated, dated September 13, 2003; 

2

 

       (iii)  any Liability of the Seller arising out of or relating to the execution, delivery or performance of any of the
Transactional Agreements or the letter agreement with Legacy Capital, dated July 20, 2004; 

        (iv)  any Liability of the Seller for any fees, costs or expenses of the type referred to in Section 8.2(a) of this
Agreement in excess of the Fee Cap (as defined in Section 8.2(a)); 

         (v)  any Liability of the Seller or any Member arising from or relating to any action taken by the Seller, or any failure on
the part of the Seller to take any action, at any time after the Closing Date; 

        (vi)  any Liability of the Seller arising from or relating to (x) any services performed by the Seller for any
customer, or (y) any claim or Proceeding against the Seller; 

       (vii)  any Liability of the Seller for the payment of any Tax; 

      (viii)  any Liability of the Seller to any employee or former employee of the Seller under or with respect to any Seller
Employee Plan; 

        (ix)  any Liability of the Seller to any Member or any other Related Party (excluding, however, payments in the Ordinary
Course of Business by the Seller to YPSolutions.com, Inc. for the City Boss license); 

         (x)  any Liability under any Contract, if the Seller shall not have obtained, prior to the Closing Date, any Consent required
to be obtained from any Person with respect to the assignment or delegation to the Purchaser of any rights or obligations under such Contract; 

        (xi)  any Liability that is inconsistent with or constitutes an inaccuracy in, or that arises or exists by virtue of any
Breach of, (x) any representation or warranty made by the Seller or any Member in any of the Transactional Agreements, or (y) any covenant or obligation of the Seller or any Member
contained in any of the Transactional Agreements; or 

       (xii)  any other Liability that is not referred to specifically in Section 1.2(b)(i), (b)(ii) or (b)(iii). 

        (d)   On or prior to April 27, 2005, the Purchaser will prepare or cause to be prepared a balance sheet of the Seller as
of the Closing Date (the "Closing Date Balance Sheet") showing the amount of Closing Date Working Capital, along with a statement setting forth in
reasonable detail the method of calculating Closing Date Working Capital, which shall be in accordance with GAAP and consistent with the methodology used in Seller's Financial Statements (as defined
in Section 2.4 below), and shall deliver or cause to be delivered to the Seller such Closing Date Balance Sheet. In the event that the Seller objects to the Purchaser's calculation of the
Closing Date Working Capital, then, within 30 days after the delivery to the Seller of the Closing Date Balance Sheet, the Seller shall deliver to the Purchaser a notice describing in
reasonable detail the Seller's objection to the Purchaser's calculation (an "Objection Notice"), accompanied by a statement setting forth the dollar
amount determined by the Seller to represent the Closing Date Working Capital or a request for additional information from the Purchaser that the Seller may require in order to determine the Closing
Date Working Capital. If the Seller does not deliver an Objection Notice to the Purchaser within the 30-day period referred to in the preceding sentence, then the Purchaser's calculation
of the Closing Date Working Capital shall be binding and conclusive on the Purchaser and the Seller. If the Seller delivers an Objection Notice to the Purchaser within the 30-day period
referred to in this paragraph, and if the Purchaser and the Seller are unable to agree upon the calculation of the Closing Date Working Capital within 15 days after an Objection Notice is
delivered to the Purchaser, the Seller and the Purchaser shall select a nationally recognized accounting firm mutually acceptable to them (the "Neutral
Accountant") to resolve any remaining objections, the cost of which shall be paid by the party 

3

 

whose
assertions regarding the amount of the Closing Date Working Capital differ by the greater amount from the Closing Date Working Capital determined by the Neutral Accountant. If Purchase and
Seller are unable to select the Neutral Accountant within 10 days after the commencement of such selection process, the Neutral Accountant shall be KPMG (or its successor). The Seller and the
Purchaser shall jointly instruct the Neutral Accountant to resolve any unresolved objections within 30 days after referral of the matter to them, and the determination by the Neutral Accountant
of the Closing Date Working Capital, shall be conclusive and binding on the Purchaser and Seller absent fraud or manifest error. During the 30-day period following the Objection Notice,
Seller and Purchaser shall each have access to the other party's working papers and similar materials prepared in connection with the Closing Date Balance Sheet and the Objection Notice, as the case
may be. 

          (i)  If the Seller's Closing Date Working Capital (as finally determined in accordance with this Section 1.2(d))
exceeds $500,000, the Purchaser shall promptly deliver to the Seller (but in no event later than the fifth day after the date on which the Seller's Closing Date Working Capital is finally determined
in accordance with section 1.2(d)) the amount by which the Closing Date Working Capital exceeds $500,000 in immediately available funds. If such payment is not timely made, such payment shall
bear interest from the last day on which it was required to have been paid to the date on which it is finally paid at a rate per annum, compounded daily, equal to the rate reported as the prime rate
from time to time in the Money Rate section of The Wall Street Journal plus 5%, not to exceed, however, the maximum rate allowed by the Laws of the state of Colorado. 

         (ii)  If the Seller's Closing Date Working Capital (as finally determined in accordance with this Section 1.2(d)) is
less than $500,000, the Seller shall promptly deliver to the Purchaser (but in no event later than the fifth day after the date on which the Seller's Closing Date Working Capital is finally
determined in accordance with Section 1.2(d)) the amount by which $500,000 exceeds the Closing Date Working Capital in immediately available funds. If such payment is not timely made, such
payment shall bear interest from the last day on which it was required to have been paid to the date on which it is finally paid at a rate per annum, compounded daily, equal to the rate reported as
the prime rate from time to time in the Money Rate section of The Wall Street Journal plus 5%, not to exceed, however, the maximum rate allowed by the Laws of the state of Colorado. 

        1.3   Sales Taxes.    The Seller shall bear and pay, and shall
reimburse the Purchaser and the Purchaser's affiliates for, any sales taxes, use taxes, transfer taxes or similar taxes that may become payable in connection with the sale of the Assets to the
Purchaser or in connection with any of the other Transactions. 

        1.4   Allocation.    At or prior to the Closing, the Purchaser shall
deliver to the Seller a statement, reasonably acceptable to the Seller, setting forth the Purchaser's good faith determination of the manner in which the consideration referred to in Sections
1.2(a)(i), 1.2(a)(ii) and 1.2(a)(iii) is to be allocated among the Assets. The allocation prescribed by such statement shall be conclusive and binding upon the Members and the Seller for
all purposes, and neither the Seller nor any Member shall file any Tax Return or other document with, or make any statement or declaration to, any Governmental Body that is inconsistent with such
allocation. 

        1.5   Closing. 

        (a)   The closing of the sale of the Assets to the Purchaser (the "Closing")
shall take place at the offices of Cooley Godward llp in Broomfield, Colorado, at 10:00 a.m. on April 7, 2005, at 10:00 a.m. on such date; provided, however, that if any condition
set forth in Section 6.2 has not been satisfied as of such date, then the Purchaser may, at its election, (i) unilaterally postpone the Closing Date by up to thirty (30) days, or
(ii) terminate this Agreement in accordance with 

4

 

Section 6.4
hereof. For purposes of this Agreement, "Closing Date" shall mean the time and date as of which the Closing actually takes place. 

        (b)   At the Closing: 

          (i)  the Seller shall execute and deliver to the Purchaser such bills of sale, endorsements, assignments and other documents
as may (in the reasonable judgment of the Purchaser or its counsel) be necessary or appropriate to assign, convey, transfer and deliver to the Purchaser good and valid title to the Assets free of any
Encumbrances; 

         (ii)  the Purchaser shall pay to the Seller $10,000,000 in cash as contemplated by Section 1.2(a)(i) and issue
the Consideration Notes as contemplated by Section 1.2(a)(ii); 

       (iii)  the parties hereto shall execute and deliver to each other the certificates described in
Section 7.2(d)(ii) and 7.3(c)(i); 

        (iv)  the Purchaser shall execute and deliver to the Seller the Assignment Agreement; 

         (v)  the Seller and The Hammack-Jones Group, LLC shall execute and deliver to the Purchaser a Non-competition
Agreement in the form of Exhibit D-1 hereto, and YPSolutions.com, Inc. shall execute and deliver a Non-competition
Agreement in the form of Exhibit D-2 hereto (collectively, the "Non-competition
Agreements"); 

        (vi)  the Purchaser, the Seller and the Members shall enter into a security agreement, substantially in the form attached
hereto as Exhibit E, providing a security interest in the Assets, which security interest shall support the obligations of the Purchaser with
respect to the obligations evidenced by the Consideration Notes; 

       (vii)  the Purchaser shall enter into Professional Services Agreement with Online Web Marketing Inc., substantially in
the form attached hereto as Exhibit F; 

      (viii)  the Purchaser shall provide executed offer letters to Don Jones, Will Scott and Julius Meaux, substantially in the
forms attached hereto as Exhibits G-1, G-2 and G-3, respectively; 

        (ix)  the Purchaser and the Seller shall enter into the Domain Name Assignment Agreement, substantially in the form attached
hereto as Exhibit H; and 

         (x)  the Seller shall deliver to the Purchaser a fully executed Amendment to the Non-Exclusive License Agreement
between Myareaguide.com, Inc. and YP Web Partners, Inc., in substantially the form attached hereto as Exhibit I (the
"MAG Amendment"). 

2.     REPRESENTATIONS AND WARRANTIES OF THE MEMBERS AND THE SELLER.  

        The Seller and the Members represent and warrant, to and for the benefit of the Indemnitees, as follows: 

        2.1   Due Organization; No Subsidiaries; Authority.    The Seller is
a limited liability company duly organized, validly existing and in good standing under the laws of the State of Louisiana. The Seller is qualified, authorized, registered or licensed to do business
as a foreign limited liability company in each jurisdiction in which the failure to so qualify would have a material adverse effect on the Seller. The Seller is qualified to do business and is in good
standing as a foreign limited liability company in each of the jurisdictions listed in Part 2.1 of the Seller Disclosure Schedule. The Seller does not have any subsidiaries, and does not own,
beneficially or otherwise, any shares or other securities of, or any direct or indirect interest of any nature in, any other Entity. The Seller has never conducted any business under or otherwise
used, for any purpose or in any jurisdiction, any fictitious name, assumed name, trade name or other name, other than "YPSolutions.com" and "YP Web Partners." The Seller has all requisite power and
authority to enter into this Agreement and any Transactional Agreement to which 

5

 

it
is or will be a party and to consummate the Transactions. The execution and delivery of this Agreement and any Transactional Agreement to which such Seller is a party and the consummation of the
Transactions have been duly authorized by all necessary organizational action on the part of the Seller, and no further action is required on the part of the Seller to authorize the Agreement and any
Transactional Agreement to which it is a party and the Transactions. This Agreement and any Transactional Agreement to which it is a party have been duly executed and delivered by the Seller, and
assuming the due authorization, execution and delivery by the other parties to such Transactional Agreements, constitutes or will constitute a legal, valid and binding obligation of the Seller,
enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by principles of public policy and subject to the laws of general application relating to
bankruptcy, insolvency and the relief of debtors and to rules of law governing specific performance, injunctive relief or other equitable remedies. 

        2.2   Organizational Documents; Records.    The Seller has delivered
to (or made available for inspection by) the Purchaser accurate and complete copies of: (i) the organizational documents of the Seller, including its articles of association and operating
agreement, including all amendments thereto; (ii) the membership records of the Seller; and (iii) the minutes and other records of the meetings and other proceedings (including any
actions taken by written consent or otherwise without a meeting) of the members of the Seller, the board of directors of the Seller (or equivalent body) and all committees of the board of directors
(or equivalent body) of the Seller. There have been no meetings or other proceedings of the members of the Seller, the board of directors (or equivalent body) of the Seller or any committee of the
board of directors (or equivalent body) of the Seller that are not reflected in such minutes or other records. The books of account, membership records, minute books and other records of the Seller
are accurate, up-to-date and complete, and have been maintained in accordance with sound and prudent business practices. All of the records of the Seller are in the actual
possession and direct control of the Seller. 

        2.3   Capitalization.    The Members are, and will be as of the
Closing Date, the sole members of the Seller. Except as set forth in Part 2.3 of the Seller Disclosure Schedule, there is no: (a) outstanding subscription, option, call, warrant or right
(whether or not currently exercisable) to acquire any shares of the capital stock, membership interests or other securities of the Seller; (b) outstanding security, instrument or obligation
that is or may become convertible into or exchangeable for any shares of the capital stock, membership interests or other securities of the Seller; or (c) Contract under which the Seller is or
may become obligated to sell or otherwise issue any shares of its capital stock, membership interests or any other securities. No person other than the Members have any right to vote with respect to
the sale of the Assets to the Purchaser or any of the other Transactions. 

        2.4   Financial Statements.    The Seller has delivered to the
Purchaser the following financial statements (collectively, the "Seller Financial Statements"): the audited balance sheets of the Seller as of
September 30, 2004, December 31, 2003 and December 31, 2002, and the related statements of income and retained earnings and cash flows for nine month or the years then ended, as
applicable, together with the notes thereto and the report of Legier & Materne, APAC with respect thereto, and the unaudited balance sheet of the Seller as of December 31, 2004, and the
related statements of income and retained earnings and cash flows for the year then ended. The Seller Financial Statements have been prepared in accordance with GAAP (except that the unaudited
financials statements referred to herein do not have footnotes and the write-off of goodwill reflected in the unaudited financial statements as of December 31, 2004 and for the year
then ended may not be in accordance with GAAP) and present fairly in all material respects the financial position of the Seller as of the respective dates thereof and the results of operations and
cash flows of the Seller for the periods covered thereby. 

6

 

        2.5   Absence of Changes.    Except as set forth in Part 2.5
of the Seller Disclosure Schedule, since December 31, 2004: 

        (a)   there has not been any material adverse change in, and no event has occurred that might have a material adverse effect
on, the business, condition, assets, liabilities, operations, financial performance or net income of the Seller; 

        (b)   there has not been any loss, damage or destruction to, or any interruption in the use of, any of the material assets of
the Seller (whether or not covered by insurance); 

        (c)   the Seller has not (i) declared, accrued, set aside or paid any dividend or made any other distribution in respect
of any of its membership interests, or (ii) repurchased, redeemed or otherwise reacquired any of its membership interests; 

        (d)   the Seller has not paid any bonus or made any loan or advance to any Member, or permitted any draws or other reductions
in the capital account or accounts of the Members; 

        (e)   the Seller has paid and discharged its obligations and liabilities in the Ordinary Course of Business; 

        (f)    the Seller has not purchased or otherwise acquired any asset from any other Person, except for assets acquired by the
Seller in the Ordinary Course of Business; 

        (g)   the Seller has not leased or licensed any asset from any other Person involving an aggregate amount of in excess of
$10,000; 

        (h)   the Seller has not made any capital expenditure in excess of $10,000 as to any individual expenditure or in excess of
$25,000 with respect to all capital expenditures; 

7

  

        (i)    the Seller has not sold or otherwise transferred, or leased or licensed, any asset to any other Person; 

        (j)    the Seller has not written off as uncollectible, or established any extraordinary reserve with respect to, any account
receivable or other indebtedness; 

        (k)   the Seller has not made any loan or advance to any other Person (other than advances of expenses to employees in the
Ordinary Course of Business); 

        (l)    the Seller has not (i) established or adopted any Seller Employee Plan, or (ii) paid any bonus or made any
profit-sharing or similar payment to, or increased the amount of the wages, salary, commissions, fees, fringe benefits or other compensation or remuneration payable to, any of its directors, officers,
employees or independent contractors; 

        (m)  no Seller Contract by which the Seller or any of the assets owned or used by the Seller is or was bound, or under which
the Seller has or had any rights or interest, has been amended or terminated; 

        (n)   the Seller has not incurred, assumed or otherwise become subject to any Liability, other than Liabilities incurred by the
Seller in bona fide transactions entered into in the Ordinary Course of Business; 

        (o)   the Seller has not discharged any Encumbrance or discharged or paid any indebtedness or other Liability, except for
Encumbrances discharged or Liabilities paid in the Ordinary Course of Business; 

        (p)   the Seller has not forgiven any debt or otherwise released or waived any right or claim; 

        (q)   the Seller has not changed any of its methods of accounting or accounting practices in any respect; 

        (r)   the Seller has not entered into any transaction or taken any other action outside the Ordinary Course of Business; and 

        (s)   the Seller has not agreed, committed or offered (in writing or otherwise) to take any of the actions referred to in
clauses "(c)" through "(r)" above. 

        2.6   Title To Assets.    The Seller owns, and has good and valid
title to, the Assets. Except as set forth in Part 2.6 of the Seller Disclosure Schedule, the Assets are owned by the Seller free and clear of any Encumbrances. Part 2.6 of the Seller
Disclosure Schedule identifies the Assets that are being leased or licensed to the Seller. The Assets will collectively constitute, as of the Closing Date, all of the properties, rights, interests and
other tangible and intangible assets necessary to enable the Seller to conduct its business in the manner in which such business is currently being conducted and in the manner in which such business
is proposed to be conducted. 

        2.7   [reserved] 

        2.8   Receivables.    Part 2.8 of the Seller Disclosure
Schedule provides an accurate and complete breakdown and aging of all accounts receivable, notes receivable and other receivables of the Seller as of December 31, 2004. Except as set forth in
Part 2.8 of the Seller Disclosure Schedule, to the knowledge of the Seller, all existing accounts receivable of the Seller (including those accounts receivable reflected on the unaudited
balance sheet of the Seller at December 31, 2004 that have not yet been collected and those accounts receivable that have arisen since December 31, 2004 and have not yet been collected):
(i) represent valid obligations of customers of the Seller arising from bona fide transactions entered into in the Ordinary Course of Business and (ii) are current and will be collected
in full (without any counterclaim or setoff) on or before August 31, 2005 (net of allowance for uncollectible accounts in an aggregate amount not to exceed $30,000). Part 2.8 of the
Seller Disclosure 

8

 

Schedule
identifies all unreturned security deposits and other deposits made by, or held by any Person for the benefit of, the Seller. 

        2.9   Customers.    Part 2.9 of the Seller Disclosure Schedule
accurately identifies, and provides an accurate and complete breakdown of the revenues received from, each customer or other Person that (together which such customer's or other Person's affiliates)
accounted for more than $100,000 of the gross revenues of the Seller in 2003 or 2004. Neither the Seller nor any Member has received any written notice indicating that any customer or other Person
identified or required to be identified in Part 2.9 of the Seller Disclosure Schedule may cease dealing with the Seller or may otherwise reduce the volume of business transacted by such Person
with the Seller below historical levels. To their knowledge, neither the Seller nor any Member has received any unwritten communication indicating that any customer or other Person identified or
required to be identified in Part 2.9 of the Seller Disclosure Schedule may cease dealing with the Seller or may otherwise reduce the volume of business transacted by such Person with the
Seller below historical levels. 

        2.10 Equipment, Etc.    Part 2.10 of the Seller Disclosure
Schedule accurately identifies all equipment, materials, tools, supplies, vehicles, furniture, fixtures, improvements and other tangible assets owned by the Seller that comprise the Assets, and
accurately sets forth the date of acquisition, original cost and book value of each of said assets. Part 2.10 of the Seller Disclosure Schedule also accurately identifies all tangible assets
leased to the Seller. Each Asset identified or required to be identified in Part 2.10 of the Seller Disclosure Schedule: (i) is structurally sound, free of defects and deficiencies and
in good condition and repair (ordinary wear and tear excepted); and (ii) complies in all material respects with, and is being operated and otherwise used in full compliance with, all applicable
Legal Requirements. 

        2.11 Real Property.    The Seller does not own any real property or
any interest in real property, except for the leaseholds created under the real property leases identified in Part 2.11 of the Seller Disclosure Schedule. Part 2.11 of the Seller
Disclosure Schedule provides an accurate and complete description of the premises covered by said leases and the facilities located on such premises. The Seller enjoys peaceful and undisturbed
possession of such premises. 

        2.12 Intellectual Property.

        (a)   Part 2.12(a) of the Seller Disclosure Schedule accurately identifies and describes: 

          (i)  in Part 2.12(a)(i) of the Seller Disclosure Schedule, each proprietary service developed, marketed,
performed or sold by the Seller, and not abandoned, at any time since inception and any product or service currently under development by the Seller; 

         (ii)  in Part 2.12(a)(ii) of the Seller Disclosure Schedule: (A) each item of Registered IP in which the
Seller has or purports to have an ownership interest of any nature (whether exclusively, jointly with another Person or otherwise); (B) the jurisdiction in which such item of Registered IP has
been registered or filed and the applicable registration or serial number; (C) any other Person that has an ownership interest in such item of Registered IP and the nature of such ownership
interest; and (D) each product or service identified in Part 2.12(a)(i) of the Seller Disclosure Schedule that embodies, incorporates, or is based upon or derived from (or, with
respect to products and services under development, that is expected to embody, utilize or be based upon or derived from) such item of Registered IP; 

       (iii)  in Part 2.12(a)(iii) of the Seller Disclosure Schedule: (A) all Intellectual Property Rights or
Intellectual Property licensed to the Seller (other than any non-customized software that: (1) is so licensed solely in executable or object code form pursuant to a nonexclusive,
internal use software license, (2) is not incorporated into, or used directly in the development, manufacturing or distribution of, the products or services of the Seller and (3) is
generally available on standard terms for less than $20,000); (B) the corresponding Contract or 

9

 

Contracts
pursuant to which such Intellectual Property Rights or Intellectual Property is licensed to the Seller; and (C) whether the license or licenses so granted to the Seller are exclusive
or nonexclusive; and 

        (iv)  in Part 2.12(a)(iv) of the Seller Disclosure Schedule, each Contract pursuant to which any Person has been
granted any license under, or otherwise has received or acquired any right (whether or not currently exercisable) or interest in, any Seller IP. 

        (b)   The Seller has provided to the Purchaser a complete and accurate copy of each standard form of Seller IP Contract
currently used by the Seller, including each standard form of: (i) end user license agreement; (ii) development agreement; (iii) distributor or reseller agreement;
(iv) employee agreement containing any assignment or license of Intellectual Property or Intellectual Property Rights or any confidentiality provision; (v) consulting or independent
contractor agreement containing any assignment or license of Intellectual Property or Intellectual Property Rights or any confidentiality provision; or (vi) confidentiality or nondisclosure
agreement. Except for the nonexclusive licenses and rights granted in Contracts identified in Part 2.12(a)(iv) of the Seller Disclosure Schedule, the Seller is not bound by, and no
Seller IP is subject to, any Contract containing any covenant or other provision that in any way limits or restricts the ability of the Seller to use, exploit, assert, or enforce any Seller IP
anywhere in the world. 

        (c)   Except as disclosed in Part 2.12(c) of the Seller Disclosure Schedule, the Seller exclusively owns all right,
title and interest to and in the Seller IP (other than Intellectual Property Rights or Intellectual Property exclusively licensed to the Seller, as identified in Part 2.12(a)(iii) of the
Seller Disclosure Schedule) free and clear of any Encumbrances (other than nonexclusive licenses granted pursuant to the Contracts listed in Part 2.12(a)(iv) of the Seller Disclosure
Schedule). Without limiting the generality of the foregoing: 

          (i)  in Part 2.12(a)(ii) of the Seller Disclosure Schedule, Seller has identified all Registered IP; all
documents and instruments necessary to perfect the rights of the Seller in such Registered IP have been validly executed, delivered and filed in a timely manner with the appropriate Governmental Body; 

         (ii)  each Person who is or was an employee or independent contractor of the Seller and who is or was involved in the creation
or development of any Seller IP that has not been abandoned has signed an
agreement containing an irrevocable assignment of Intellectual Property Rights to the Seller and confidentiality provisions protecting the Seller IP; 

       (iii)  no Seller Employee has any claim, right (whether or not currently exercisable) or interest to or in any Seller IP; 

        (iv)  to the best of the knowledge of the Seller and the Members, no employee or independent contractor of the Seller is:
(A) bound by or otherwise subject to any Contract restricting him or her from performing his or her duties for the Seller; or (B) in breach of any Contract known to the Seller or the
Members with any former employer or other Person concerning Intellectual Property Rights or confidentiality; 

         (v)  no funding, facilities or personnel of any Governmental Body were used, directly or indirectly, to develop or create, in
whole or in part, any Seller IP; 

        (vi)  the Seller has taken all reasonable steps to maintain the confidentiality of and otherwise protect and enforce its
rights in all proprietary information held by the Seller, or purported to be held by the Seller, as a trade secret; 

       (vii)  except as may be disclosed in Part 2.12(c)(vii) of the Seller Disclosure Schedule, since inception the
Seller has never assigned or otherwise transferred ownership of, or agreed 

10

 

to
assign or otherwise transfer ownership of, any Intellectual Property Right to any other Person; 

      (viii)  the Seller is not now nor has ever been a member or promoter of, or a contributor to, any industry standards body or
similar organization that could require or obligate the Seller to grant or offer to any other Person any license or right to any Seller IP; and 

        (ix)  the Seller owns or otherwise has, and after the Closing the Purchaser will continue to have, all Intellectual Property
Rights needed to conduct the business of the Seller as currently conducted and currently planned by the Seller to be conducted. 

        (d)   All Seller IP is valid, subsisting and enforceable. Without limiting the generality of the foregoing: 

          (i)  Seller holds no U.S. patents and has made no patent applications in the U.S.; 

         (ii)  Seller holds no foreign patents and has made no foreign patent applications; 

       (iii)  to the best of the knowledge of the Seller and the Members no trademark (whether registered or unregistered) or trade
name owned, used, or applied for by the Seller conflicts or interferes with any trademark (whether registered or unregistered) or trade name owned, used or applied for by any other Person; 

        (iv)  each item of Seller IP that is Registered IP is and at all times has been in compliance with all Legal Requirements, and
all filings, payments and other actions required to be made or taken to maintain such item of Seller IP in full force and effect have been made by the applicable deadline; 

         (v)  no application for a patent or for a copyright, mask work or trademark registration or any other type of Registered IP
filed by or on behalf of the Seller has been abandoned, allowed to lapse or rejected; 

        (vi)  Part 2.12(d)(vi) of the Seller Disclosure Schedule accurately identifies and describes each filing,
payment, and action that must be made or taken on or before the date that is 120 days after the date of this Agreement in order to maintain each such item of Registered IP in full force and
effect; 

       (vii)  the Seller has provided to the Purchaser complete and accurate copies of all applications, correspondence and other
material documents related to each such item of Registered IP; 

      (viii)  no interference, opposition, reissue, reexamination or other Proceeding of any nature is or has been pending or, to
the best of the knowledge of the Seller and the Members, threatened, in which the scope, validity or enforceability of any Seller IP is being, has been or could reasonably be expected to be contested
or challenged; and 

        (ix)  to the best of the knowledge of the Seller and the Members, there is no basis for a claim that any Seller IP is invalid
or unenforceable. 

        (e)   Except as disclosed in Part 2.12(e) of the Seller Disclosure Schedule, neither the execution, delivery or
performance of any of the Transactional Agreements by the Seller nor the consummation of any of the Transactions will, with or without notice or the lapse of time, result in or give any other Person
the right or option to cause or declare: (i) a loss of, or Encumbrance on, any Seller IP; (ii) a Breach of any
Contract listed or required to be listed in Part 2.12(a)(iii) of the Seller Disclosure Schedule; (iii) the release, disclosure or delivery of any Seller IP by or to any escrow
agent or other Person; or (iv) the grant, assignment or transfer to any other Person of any license or other right or interest under, to or in any of the Seller IP. 

11

 

        (f)    To the best of the knowledge of the Seller and the Members, no Person has infringed, misappropriated, or otherwise
violated, and no Person is currently infringing, misappropriating or otherwise violating, any Seller IP. Part 2.12(f) of the Seller Disclosure Schedule accurately identifies (and the Seller has
provided to the Purchaser a complete and accurate copy of) each letter or other written or electronic communication or correspondence that has been sent or otherwise delivered by or to the Seller or
any Representative of the Seller regarding any actual, alleged or suspected infringement or misappropriation of any Seller IP and provides a brief description of the current status of the matter
referred to in such letter, communication or correspondence. 

        (g)   Except as disclosed in Part 2.12(g) of the Seller Disclosure Schedule, the Seller has never infringed (directly,
contributorily, by inducement or otherwise), misappropriated or otherwise violated any Intellectual Property Right of any other Person. Without limiting the generality of the foregoing: 

          (i)  no product, information or service ever manufactured, produced, distributed, published, used, provided or sold by or on
behalf of the Seller, and no Intellectual Property ever owned, used or developed by the Seller, has ever infringed, misappropriated or otherwise violated any Intellectual Property Right of any other
Person; 

         (ii)  no infringement, misappropriation or similar claim or Proceeding is pending, or to the best of the knowledge of Seller
or the Members has been threatened, against the Seller or against any other Person who may be entitled to be indemnified, defended, held harmless or reimbursed by the Seller with respect to such claim
or Proceeding (other than as described in Parts 2.12(g), 2.14(a) and 2.25 of the Seller Disclosure Schedule); 

       (iii)  to its knowledge, the Seller has never received any notice relating to any actual, alleged or suspected infringement,
misappropriation or violation of any Intellectual Property Right of another Person (other than as described in Parts 2.12(g), 2.14(a) and 2.25 of the Seller Disclosure Schedule); 

        (iv)  the Seller is not bound by any Contract to indemnify, defend, hold harmless or reimburse any other Person with respect
to any intellectual property infringement, misappropriation or similar claim (other
than pursuant to the standard forms of Seller IP Contracts described in Section 2.12(b) or Contracts described in Part 2.12(g) of the Seller Disclosure Schedule); 

         (v)  the Seller has never assumed, or agreed to discharge or otherwise take responsibility for, any existing or potential
liability of another Person for infringement, misappropriation or violation of any Intellectual Property Right (other than pursuant to the standard forms of Seller IP Contracts described in
Section 2.12(b)); and 

        (vi)  no claim or Proceeding involving any Intellectual Property or Intellectual Property Right licensed to the Seller is
pending or, to the best of the knowledge of the Seller and the Members, has been threatened, except for any such claim or Proceeding that, if adversely determined, would not adversely affect:
(A) the use or exploitation of such Intellectual Property or Intellectual Property Right by the Seller; or (B) the manufacturing, distribution or sale of any product or service being
developed, offered, manufactured, distributed or sold by the Seller. 

        (h)   None of the Seller Software (other than Seller Software that is (i) currently under development and (ii) is
not, as of the date hereof, the subject of any license agreements or customer contract of any kind): (i) contains any bug, defect or error (including any bug, defect or error relating to or
resulting from the display, manipulation, processing, storage, transmission or use of date data) that materially and adversely affects the use, functionality or performance of such 

12

 

Seller
Software or any product or system containing or used in conjunction with such Seller Software; or (ii) fails to comply with any applicable warranty or other contractual commitment
relating to the use, functionality or performance of such software or any product or system containing or used in conjunction with such Seller Software. The Seller has provided to the Purchaser a
complete and accurate list of all known bugs, defects and errors in each version and component of the Seller Software. 

        (i)    None of the Seller Software contains any "back door," "drop dead device," "time bomb," "Trojan horse," "virus," or "worm"
(as such terms are commonly understood in the software industry) or any other code designed or intended to have, or capable of performing, any of the following functions: (i) disrupting,
disabling, harming or otherwise impeding in any manner the operation of, or providing unauthorized access to, a computer system or network or other device on which such code is stored or installed; or
(ii) damaging or destroying any data or file without the user's consent. 

        (j)    None of the Seller Software is subject to any "copyleft" or other obligation or condition (including any obligation or
condition under any "open source" license such as the GNU Public License, Lesser GNU Public License or Mozilla Public License) that: (i) could or does require, or could or does condition the
use or distribution of such Seller Software on, the disclosure, licensing or distribution of any source code for any portion of such Seller Software; or (ii) could or does otherwise impose any
limitation, restriction or condition on the right or ability of the Seller to use or distribute any Seller Software. 

        (k)   Except as identified in Part 2.12(k) of the Seller Disclosure Schedule, no source code for any Seller Software has
been delivered, licensed or made available to any escrow agent or other Person who is not, as of the date of this Agreement, an employee of the Seller. The Seller does not have any duty or obligation
(whether present, contingent or otherwise) to deliver, license or make available the source code for any Seller Software to any escrow agent or other Person who is not, as of the date of this
Agreement, an employee of the Seller. No event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time) will, or could reasonably be expected to, result in
the delivery, license or disclosure of any source code for any Seller Software to any other Person who is not, as of the date of this Agreement, an employee of the Seller. 

        2.13 Contracts.

        (a)   The Seller has delivered to the Purchaser accurate and complete copies of all Contracts identified in Part 2.13 of
the Seller Disclosure Schedule, including all amendments thereto. Each Seller Contract is valid and in full force and effect. 

        (b)   Except as set forth in Part 2.13 of the Seller Disclosure Schedule: (i) the Seller has not violated or
breached, or declared or committed any default under, any Seller Contract; (ii) no event has occurred, and no circumstance or condition exists, that might (with or without notice or lapse of
time) (A) result in a violation or breach by the Seller of any of the provisions of any Seller Contract, (B) give Seller the right to declare a default or exercise any remedy under any
Seller Contract, (C) give Seller the right to accelerate the maturity or performance of any Seller Contract, or (D) give Seller the right to cancel, terminate or modify any Seller
Contract; (iii) the Seller has not received any written notice regarding any actual, alleged, possible or potential violation or breach of, or default under, any Seller Contract; and
(iv) the Seller has not waived any right under any Seller Contract. 

        (c)   Except as set forth in Part 2.13 of the Seller Disclosure Schedule, to the best of the knowledge of the Seller and
the Members, each Person against which the Seller has or may 

13

 

acquire
any rights under any Seller Contract is solvent and is able to satisfy all of such Person's current and future monetary obligations and other obligations and Liabilities thereunder. 

        (d)   Except as set forth in Part 2.13 of the Seller Disclosure Schedule, the Seller has never guaranteed or otherwise
agreed to cause, insure or become liable for, and the Seller has never pledged any of its assets to secure, the performance or payment of any obligation or other Liability of any other Person. The
performance of the Seller Contracts by the Seller will not result in any violation of or failure to
comply with any Legal Requirement. No Person is renegotiating, or has the right to renegotiate, any amount paid or payable to the Seller under any Seller Contract or any other term or provision of any
Seller Contract. 

        (e)   The Contracts identified in Part 2.13 of the Seller Disclosure Schedule collectively constitute all of the
Contracts necessary to enable the Seller to conduct its business in the manner in which such business is currently being conducted. 

        2.14 Liabilities.

        (a)   Except as set forth in Part 2.14 of the Seller Disclosure Schedule, the Seller has no Liabilities, except for:
(i) liabilities identified as such in the "liabilities" columns of the audited balance sheet of the Seller included in the Financial Statements; (ii) Liabilities incurred by the Seller
in bona fide transactions entered into in the Ordinary Course of Business since December 31, 2004; (iii) obligations under the Contracts listed in Part 2.13 of the Seller
Disclosure Schedule; and (iv) the other Liabilities of Seller listed in Part 2.14 of the Seller Disclosure Schedule. 

        (b)   Part 2.14 of the Seller Disclosure Schedule: (i) provides an accurate and complete breakdown and aging of
the accounts payable of the Seller as of December 31, 2004; (ii) provides an accurate and complete breakdown of any customer deposits or other deposits held by the Seller as of the date
of this Agreement; and (iii) provides an accurate and complete breakdown of all notes payable and other indebtedness of the Seller as of the date of this Agreement. 

        (c)   Except as set forth in Part 2.14 of the Seller Disclosure Schedule, the Seller has not paid, and the Seller is not
and will not become liable for the payment of, any fees, costs or expenses of the type referred to in Section 8.2(a). 

        (d)   Neither the Seller nor any Member has, at any time, (i) made a general assignment for the benefit of creditors,
(ii) filed, or had filed against it, any bankruptcy petition or similar filing, (iii) suffered the attachment or other judicial seizure of all or a substantial portion of its assets,
(iv) admitted in writing its inability to pay its debts as they become due, or (v) taken or been the subject of any action that may have an adverse effect on its ability to comply with
or perform any of its covenants or obligations under any of the Transactional Agreements. 

        2.15 Compliance with Legal Requirements.    Except as set forth in
Part 2.15 of the Seller Disclosure Schedule: (a) the Seller is in compliance with each Legal Requirement that is applicable to it or to the conduct of its business or the ownership or
use of any of its assets; (b) the Seller has at all times been in compliance with each Legal Requirement that is or was applicable to it or to the conduct of its business or the ownership or
use of any of its assets; (c) no event has occurred, and no condition or circumstance exists, that might (with or without notice or lapse of time) constitute or result directly or indirectly in
a violation by the Seller of, or a failure on the part of the Seller to comply with, any Legal Requirement in all material respects; and (d) the Seller has not received, at any time, any
written notice from any Governmental Body or any other Person regarding (i) any actual, alleged, possible or potential violation of, or failure to comply with, any Legal Requirement, or
(ii) any actual, alleged, possible or potential obligation on the part of the Seller to undertake, or to bear all or any portion of the cost of, any cleanup or any remedial, corrective or
response action of any nature. The Members and the Seller have delivered to the Purchaser an accurate and complete copy of each report, study, 

14

 

survey
or other document to which the Members or the Seller has access that addresses or otherwise relates to the compliance of the Seller with, or the applicability to the Seller of, any Legal
Requirement. 

        2.16 Governmental Authorizations.    Part 2.16 of the Seller
Disclosure Schedule identifies: (a) each Governmental Authorization that is held by the Seller; and (b) each other Governmental Authorization that, to the best of the knowledge of each
of the Members and the Seller, is held by any employee of the Seller and relates to or is useful in connection with the business of the Seller. The Members and the Seller have delivered to the
Purchaser accurate and complete copies of all of the Governmental Authorizations identified in Part 2.16 of the Seller Disclosure Schedule, including all renewals thereof and all amendments
thereto. Each Governmental Authorization identified or required to be identified in Part 2.16 of the Seller Disclosure Schedule is valid and in full force and effect. Except as set forth in
Part 2.16 of the Seller Disclosure Schedule: (i) the Seller is and has at all times been in compliance in all material respects with all of the terms and requirements of each
Governmental Authorization identified or required to be identified in Part 2.16 of the Seller Disclosure Schedule; (ii) no event has occurred, and no condition or circumstance exists,
that might (with or without notice or lapse of time) (A) constitute or result directly or indirectly in a violation of or a failure by the Seller to comply with any term or requirement of any
Governmental Authorization identified or required to be identified in Part 2.16 of the Seller Disclosure Schedule, or (B) result directly or indirectly in the revocation, withdrawal,
suspension, cancellation, termination or modification of any Governmental Authorization identified or required to be identified in Part 2.16 of the Seller Disclosure Schedule; (iii) the
Seller has never received any written notice from any Governmental Body or any other Person regarding (A) any actual, alleged, possible or potential violation of or failure to comply with any
term or requirement of any Governmental Authorization, or (B) any actual, proposed, possible or potential revocation, withdrawal, suspension, cancellation, termination or modification of any
Governmental Authorization; and (iv) all applications required to have been filed for the renewal of the Governmental Authorizations required to be identified in Part 2.16 of the Seller
Disclosure Schedule have been duly filed on a timely basis with the appropriate Governmental Bodies, and each other notice or filing required to have been given or made with respect to such
Governmental Authorizations has been duly given or made on a timely basis with the appropriate Governmental Body. The Governmental Authorizations identified in Part 2.16 of the Seller
Disclosure Schedule constitute all of the Governmental Authorizations necessary (i) to enable the Seller to conduct its business in the manner in which such business is currently being
conducted, and (ii) to permit the Seller to own and use its assets in the manner in which they are currently owned and used. 

        2.17 Tax Matters.

        (a)   Each Tax required to have been paid, or claimed by any Governmental Body to be payable, by the Seller has been duly paid
in full on a timely basis. Any Tax required to have been withheld or collected by the Seller has been duly withheld and collected; and (to the extent required) each such Tax has been paid to the
appropriate Governmental Body. 

        (b)   Part 2.17 of the Seller Disclosure Schedule accurately identifies each examination or audit of any Tax Return of
the Seller that has been conducted since inception. The Members and the Seller have delivered to the Purchaser accurate and complete copies of all audit reports and similar documents (to which any
Member or the Seller has access) relating to such Tax Returns. 

        (c)   Except as set forth in Part 2.17 of the Seller Disclosure Schedule, no claim or other Proceeding is pending, or to
the best of the knowledge of the Seller and the Members has been threatened, against or with respect to the Seller in respect of any Tax. There are no unsatisfied Liabilities for Taxes (including
liabilities for interest, additions to tax and penalties thereon and related expenses) with respect to any notice of deficiency or similar document received by the 

15

 

Seller.
The Seller has not entered into or become bound by any agreement or consent pursuant to Section 341(f) of the Code. 

        (d)   There is no agreement, plan, arrangement or other Contract covering any Seller Employee that, individually or
collectively, could give rise directly or indirectly to the payment of any amount that would not be deductible pursuant to Section 280G or Section 162 of the Code. 

        (e)   The Seller has delivered to (or made available for inspection by) the Purchaser accurate and complete copies of all Tax
Returns that have been filed on behalf of or with respect to the Seller since inception. Except as disclosed in Part 2.17 of the Seller Disclosure Schedule, the information contained in such
Tax Returns is accurate and complete in all material respects. 

        2.18 Employee And Labor Matters.

        (a)   Part 2.18(a) of the Seller Disclosure Schedule accurately sets forth, with respect to each employee of the Seller
who will be employed by the Purchaser on the Closing Date (including any employee of the Seller who is on a leave of absence or on layoff status): 

          (i)  the name of such employee and the date as of which such employee was originally hired by the Seller; 

         (ii)  such employee's title, and a description of such employee's duties and responsibilities; 

       (iii)  the aggregate dollar amount of the compensation (including wages, salary, commissions, director's fees, fringe
benefits, bonuses, profit-sharing payments and other payments or benefits of any type) received by such employee from the Seller with respect to services performed in 2004; 

        (iv)  such employee's annualized compensation as of the date of this Agreement; 

         (v)  each Seller Employee Plan in which such employee participates or is eligible to participate; and 

        (vi)  any Governmental Authorization that is held by such employee and that relates to or is useful in connection with the
Seller's business. 

16

  

        (b)   Except as set forth in Part 2.18(b) of the Seller Disclosure Schedule, the employment of each of the Seller's
employees who will be employed by the Purchaser on the Closing Date is terminable by the Seller at will and any such termination would not result in any amount of severance or other payment owing to
such employee. The Seller has delivered to the Purchaser accurate and complete copies of all employee manuals and handbooks, disclosure materials, policy statements and other materials relating to the
employment of the current and former employees of the Seller. 

        (c)   To the best of the knowledge of the Seller and the Members, as to each employee of the Seller who will be employed by the
Purchaser on the Closing Date: 

          (i)  such employee does not intend to terminate his employment with the Seller; 

         (ii)  such employee has not received an offer to join a business that may be competitive with the Seller's business; and 

       (iii)  such employee is not a party to or is not bound by any confidentiality agreement, noncompetition agreement or other
Contract (with any Person other than the Seller) that may have an adverse effect on: (A) the performance by such employee of any of his duties or responsibilities as an employee of the Seller;
or (B) the Seller's business or operations. 

        (d)   Part 2.18(d) of the Seller Disclosure Schedule accurately sets forth, with respect to each independent contractor
of the Seller whose services will be continued by the Purchaser after the Closing Date: 

          (i)  the name of such independent contractor and the date as of which such independent contractor was originally hired by the
Seller; 

         (ii)  a description of such independent contractor duties and responsibilities; 

       (iii)  the aggregate dollar amount of the compensation (including all payments or benefits of any type) received by such
independent contractor from the Seller with respect to services performed in 2004; 

        (iv)  the terms of compensation of such independent contractor; and 

         (v)  any Governmental Authorization that is held by such independent contractor and that relates to or is useful in connection
with the Seller's business. 

        (e)   Except as set forth in Part 2.18(e) of the Seller Disclosure Schedule, the Seller is not a party to or bound by,
and the Seller has never been a party to or bound by, any employment agreement or any union contract, collective bargaining agreement or similar Contract. 

        (f)    There has never been any slowdown, work stoppage, labor dispute or union organizing activity, or any similar activity or
dispute, affecting the Seller, any such slowdown, work stoppage, labor dispute or union organizing activity or any similar activity or dispute. To the best of the knowledge of the Seller and the
Members, no event has occurred, and no condition or circumstance exists, that might directly or indirectly give rise to or provide a basis for the commencement of any such slowdown, work stoppage,
labor dispute or union organizing activity or any similar activity or dispute. There are no actions, suits, claims, labor disputes or grievances pending or, to the best of the knowledge of the Seller
and the Members, threatened or reasonably anticipated relating to any labor, safety or discrimination matters involving any Seller Employee, including, without limitation, charges of unfair labor
practices or discrimination complaints. 

        2.19 Employee Benefit Plans and Compensation.

        (a)   Part 2.19(a) of the Seller Disclosure Schedule contains an accurate and complete list as of the date hereof of
each Seller Employee Plan and each Seller Employee Agreement. The Seller 

17

 

does
not intend nor has it committed to establish or enter into any new Seller Employee Plan or Seller Employee Agreement, or to modify any Seller Employee Plan or Seller Employee Agreement (except to
conform any such Seller Employee Plan or Seller Employee Agreement to the requirements of any applicable Legal Requirements, in each case as previously disclosed to the Purchaser in writing or as
required by this Agreement). 

        (b)   The Seller has delivered to the Purchaser: (i) correct and complete copies of all documents setting forth the
terms of each Seller Employee Plan and each Seller Employee Agreement, including all amendments thereto and all related trust documents; (ii) the three most recent annual reports (Form
Series 5500 and all schedules and financial statements attached thereto), if any, required under ERISA or the Code in connection with each Seller Employee Plan; (iii) if the Seller
Employee Plan is subject to the minimum funding standards of Section 302 of ERISA, the most recent annual and periodic
accounting of Seller Employee Plan assets; (iv) the most recent summary plan description together with the summaries of material modifications thereto, if any, required under ERISA with respect
to each Seller Employee Plan; (v) all material written Contracts relating to each Seller Employee Plan, including administrative service agreements and group insurance contracts;
(vi) all written materials provided to any Seller Employee relating to any Seller Employee Plan and any proposed Seller Employee Plans, in each case, relating to any amendments, terminations,
establishments, increases or decreases in benefits, acceleration of payments or vesting schedules or other events that would result in any liability to the Seller or any Seller Affiliate;
(vii) all correspondence to or from any Governmental Body relating to any Seller Employee Plan; (viii) all COBRA forms and related notices; (ix) all insurance policies in the
possession of the Seller or any Seller Affiliate pertaining to fiduciary liability insurance covering the fiduciaries for each Seller Employee Plan; (x) all discrimination tests required under
the Code for each Seller Employee Plan intended to be qualified under Section 401(a) of the Code for the three most recent plan years; and (xi) the most recent IRS determination or
opinion letter issued with respect to each Seller Employee Plan intended to be qualified under Section 401(a) of the Code. 

        (c)   The Seller and each of the Seller Affiliates have performed all material obligations required to be performed by them
under each Seller Employee Plan and are not in material default or material violation of, and neither the Seller nor any of the Members have knowledge of any material default or material violation by
any other party to, the terms of any Seller Employee Plan, and each Seller Employee Plan has been established and maintained substantially in accordance with its terms and in substantial compliance
with all applicable Legal Requirements, including ERISA and the Code. Any Seller Employee Plan intended to be qualified under Section 401(a) of the Code has obtained a favorable determination
letter (or opinion letter, if applicable) as to its qualified status under the Code. No "prohibited transaction," within the meaning of Section 4975 of the Code or Sections 406 and 407 of
ERISA, and not otherwise exempt under Section 408 of ERISA, has occurred with respect to any Seller Employee Plan. There are no claims or Proceedings pending, or, to the best of the knowledge
of the Seller and the Members threatened or reasonably anticipated (other than routine claims for benefits), against any Seller Employee Plan or against the assets of any Seller Employee Plan. Each
Seller Employee Plan (other than any Seller Employee Plan to be terminated prior to the Closing in accordance with this Agreement) can be amended, terminated or otherwise discontinued after the
Closing in accordance with its terms, without liability to the Purchaser, the Seller or any Seller Affiliate (other than ordinary administration expenses). There are no audits, inquiries or
Proceedings pending or, to the best of the knowledge of the Seller and the Members threatened, by the IRS, DOL, or any other Governmental Body with respect to any Seller Employee Plan. Neither the
Seller nor any Seller Affiliate has ever incurred any penalty or tax with respect to any Seller Employee Plan under Section 502(i) of ERISA or Sections 4975 through 4980 of the Code. The 

18

 

Seller
and each Seller Affiliates have made all contributions and other payments required by and due under the terms of each Seller Employee Plan. 

        (d)   Neither the Seller nor any Seller Affiliate has ever maintained, established, sponsored, participated in, or contributed
to any: (i) Seller Pension Plan subject to Title IV of ERISA; or (ii) "multiemployer plan" within the meaning of Section (3)(37) of ERISA. Neither the Seller nor any Seller
Affiliate has ever maintained, established, sponsored, participated in or contributed to, any Seller Pension Plan in which stock of the Seller or any Seller Affiliate is or was held as a plan asset.
The fair market value of the assets of each funded Foreign Plan, the liability of each insurer for any Foreign Plan funded through insurance, or the book reserve established for any Foreign Plan,
together with any accrued
contributions, is sufficient to procure or provide in full for the accrued benefit obligations, with respect to all current and former participants in such Foreign Plan according to the actuarial
assumptions and valuations most recently used to determine employer contributions to and obligations under such Foreign Plan, and no transaction contemplated by this Agreement shall cause any such
assets or insurance obligations to be less than such benefit obligations. 

        (e)   No Seller Employee Plan provides (except at no cost to the Seller or any Seller Affiliate), or reflects or represents any
liability of the Seller or any Seller Affiliate to provide, retiree life insurance, retiree health benefits or other retiree employee welfare benefits to any Person for any reason, except as may be
required by COBRA or other applicable Legal Requirements. Other than commitments made that involve no future costs to the Seller or any Seller Affiliate, neither the Seller nor any Seller Affiliate
has ever represented, promised or contracted (whether in oral or written form) to any Seller Employee (either individually or to Seller Employees as a group) or any other Person that such Seller
Employee(s) or other person would be provided with retiree life insurance, retiree health benefit or other retiree employee welfare benefits, except to the extent required by applicable Legal
Requirements. 

        (f)    Except as set forth in Part 2.19(f) of the Seller Disclosure Schedule, and except as expressly required or
provided by this Agreement, neither the execution of this Agreement nor the consummation of the transactions contemplated hereby will (either alone or upon the occurrence of any additional or
subsequent events) constitute an event under any Seller Employee Plan, Seller Employee Agreement, trust or loan that will or may result (either alone or in connection with any other circumstance or
event) in any payment (whether of severance pay or otherwise), acceleration, forgiveness of indebtedness, vesting, distribution, increase in benefits or obligation to fund benefits with respect to any
Seller Employee. 

        (g)   Except as set forth in Part 2.19(g) of the Seller Disclosure Schedule, the Seller and each of the Seller
Affiliates: (i) are, and at all times have been, in substantial compliance with all applicable Legal Requirements respecting employment, employment practices, terms and conditions of employment
and wages and hours, in each case, with respect to Seller Employees, including the health care continuation requirements of COBRA, the requirements of FMLA, the requirements of HIPAA and any similar
provisions of state law; (ii) have withheld and reported all amounts required by applicable Legal Requirements or by Contract to be withheld and reported with respect to wages, salaries and
other payments to Seller Employees; (iii) are not liable for any arrears of wages or any taxes or any penalty for failure to comply with the Legal Requirements applicable of the foregoing; and
(iv) are not liable for any payment to any trust or other fund governed by or maintained by or on behalf of any Governmental Body with respect to unemployment compensation benefits, social
security or other benefits or obligations for Seller Employees (other than routine payments to be made in the normal course of business and consistent with past practice). Except as disclosed in
Part 2.19(g) of the Seller Disclosure Schedule, there are no pending or, to the best of the knowledge of the Seller and the Members, threatened 

19

 

or
reasonably anticipated claims or Proceedings against the Seller or any Seller Affiliate under any worker's compensation policy or long-term disability policy. 

        (h)   To the best of the knowledge of the Seller and the Members, no Seller Employee is obligated under any Contract or subject
to any judgment, decree, or order of any court or other Governmental Body that would interfere with such Person's efforts to promote the interests of the Seller or that would interfere with the
business of the Seller or any Seller Affiliate. Neither the execution nor the delivery of this Agreement, nor the carrying on of the business of the Seller or any Seller Affiliate as presently
conducted nor any activity of such shareholder or Seller Employees in connection with the carrying on of the business of the Seller or any Seller Affiliate as presently conducted will, to the best of
the knowledge of the Seller and the Members, conflict with, result in a breach of the terms, conditions or provisions of, or constitute a default under, any Contract under which any of such
shareholders or Seller Employees is now bound. 

        2.20 Environmental Matters.

        (a)   The Seller is not liable or potentially liable for any response cost or natural resource damages under
Section 107(a) of CERCLA, or under any other so-called "superfund" or "superlien" law or similar Legal Requirement, at or with respect to any site. 

        (b)   The Seller has never received any notice from any Governmental Body or other Person regarding any actual, alleged,
possible or potential Liability arising from or relating to the presence, generation, manufacture, production, transportation, importation, use, treatment, refinement, processing, handling, storage,
discharge, release, emission or disposal of any Hazardous Material. No Person has ever commenced or threatened to commence, any contribution action or other Proceeding against the Seller in connection
with any such actual, alleged, possible or potential Liability; and no event has occurred, and no condition or circumstance exists, that may directly or indirectly give rise to, or result in the
Seller becoming subject to, any such Liability. 

        (c)   The Seller has never generated, manufactured, produced, transported, imported, used, treated, refined, processed,
handled, stored, discharged, released or disposed of any Hazardous Material (whether lawfully or unlawfully), nor permitted (knowingly or otherwise) any Hazardous Material to be generated,
manufactured, produced, used, treated, refined, processed, handled, stored, discharged, released or disposed of (whether lawfully or unlawfully): (i) on or beneath the surface of any real
property that is, or that has at any time been, owned by, leased to, controlled by or used by the Seller; (ii) in or into any surface water, groundwater, soil or air associated with or adjacent
to any such real property; or (iii) in or into any well, pit, pond, lagoon, impoundment, ditch, landfill, building, structure, facility, improvement, installation, equipment, pipe, pipeline,
vehicle or storage container that is or was located on or beneath the surface of any such real property or that is or has at any time been owned by, leased to, controlled by or used by the Seller. 

        2.21 Performance of Services.    All services that have been
performed on behalf of the Seller were performed in all material respects in full conformity with the terms and requirements of all applicable warranties and other Contracts and with all applicable
Legal Requirements. The Purchaser will not incur or otherwise become subject to any Liability arising directly or indirectly from any services performed by the Seller. There is no claim pending or, to
the best knowledge of the Seller and the Members being threatened, against the Seller relating to any services performed by the Seller, and, to the best of the knowledge of the Members and the Seller,
there is no basis for the assertion of any such claim. 

        2.22 Insurance.    Part 2.22 of the Seller Disclosure
Schedule identifies each insurance claim made by the Seller since December 31, 2002. No event has occurred, and no condition or circumstance exists, that might (with or without notice or lapse
of time) directly or indirectly give rise to or serve as a basis 

20

 

for
any such insurance claim. The Seller has not received: (i) any written notice regarding the actual or possible cancellation or invalidation of any of the Seller's insurance policies or
regarding any actual or possible adjustment in the amount of the premiums payable with respect to any of said policies; (ii) any written notice regarding any actual or possible refusal of
coverage under, or any actual or possible rejection of any claim under, any of the Seller's insurance policies; or (iii) any written indication that the issuer of any of the Seller's insurance
policies may be unwilling or unable to perform any of its obligations thereunder. 

        2.23 Related Party Transactions.    Except as set forth in
Part 2.23 of the Seller Disclosure Schedule: (a) no Related Party has any direct or indirect interest of any nature in any of the assets of the Seller; (b) no Related Party is
indebted to the Seller; (c) since December 31, 2002, no Related Party has entered into, or has had any direct or indirect financial interest in, any Seller Contract, transaction or
business dealing of any nature involving the Seller; (d) no Related Party is competing, or has at any time since December 31, 2002 competed, directly or indirectly, with the Seller;
(e) no Related Party has any claim or right against the Seller; and (f) no event has occurred, and no condition or circumstance exists, that might (with or without notice or lapse of
time) directly or indirectly give rise to or serve as a basis for any claim or right in favor of any Related Party against the Seller. 

        2.24 Certain Payments, Etc.    The Seller has not, and to the best
knowledge of the Seller and the Members no officer, employee, agent or other Person associated with or acting for or on behalf of the Seller has, at any time, directly or indirectly: (a) used
any funds of the Seller (i) to make any unlawful political contribution or gift or for any other unlawful purpose relating to any political activity, (ii) to make any unlawful payment to
any governmental official or employee, or (iii) to establish or maintain any unlawful or unrecorded fund or account of any nature; (b) made any false or fictitious entry, or failed to
make any entry that should have been made, in any of the books of account or other records of the Seller; (c) made any payoff, influence payment, bribe, rebate, kickback or unlawful payment to
any Person; (d) performed any favor or given any gift which was not deductible for federal income tax purposes; (e) made any payment (whether or not lawful) to any Person, or provided
(whether lawfully or unlawfully) any favor or anything of value (whether in the form of property or services, or in any other form) to any Person, for the purpose of obtaining or paying for
(i) favorable treatment in securing business, or (ii) any other special concession; or (f) agreed, committed or offered (in writing or otherwise) to take any of the actions
described in clauses "(a)" through "(e)" above. 

        2.25 Proceedings; Orders.    Except as set forth in
Part 2.25 of the Seller Disclosure Schedule, there is no pending Proceeding, and to the best of the knowledge of the Seller and the Members no Person has threatened to commence any Proceeding:
(i) that involves the Seller or that otherwise relates to or might affect the business of the Seller or any of the Assets (whether or not the Seller is named as a party thereto); or
(ii) that challenges, or that may have the effect of preventing, delaying, making illegal or otherwise interfering with, any of the Transactions. Except as set forth in Part 2.25 of the
Seller Disclosure Schedule, to the best of the knowledge of the Seller and the Members no event has occurred, and no claim, dispute or other condition or circumstance exists, that might directly or
indirectly give rise to or serve as a basis for the commencement of any such Proceeding. Except as set forth in Part 2.25 of the Seller Disclosure Schedule, no Proceeding has ever been
commenced by or against the Seller. The Members and the Seller have delivered to the Purchaser accurate and complete copies of all pleadings, correspondence and other written materials (to which any
of the Members or the Seller has access and which are not subject to the attorney client privilege or work product doctrine) that relate to the Proceedings identified in Part 2.25 of the Seller
Disclosure Schedule. There is no Order to which the Seller, or any of the assets owned or used by the Seller, is subject; and none of the Members or any other Related Party is subject to any Order
that relates to the Seller's business or to any of the assets of the Seller. To the best of the knowledge of the Seller and the Members, no employee of the Seller is subject to any Order that may
prohibit employee from engaging in or continuing any conduct, activity or practice relating to the business of the Seller. There is no proposed 

21

 

Order
that, if issued or otherwise put into effect, (i) may have an adverse effect on the business, condition, assets, liabilities, operations, financial performance or net income of the Seller
or on the ability of any Member or the Seller to comply with or perform any covenant or obligation under any of the Transactional Agreements, or (ii) may have the effect of preventing,
delaying, making illegal or otherwise interfering with any of the Transactions. 

        2.26 Authority; Binding Nature of Agreements.

        (a)   The Seller has the absolute and unrestricted right, power and authority to enter into and to perform its obligations
under each of the Transactional Agreements to which it is or may become a party. 

        (b)   Each of the Members has the absolute and unrestricted right, power and capacity to enter into and to perform his
obligations under each of the Transactional Agreements to which he is or may become a party. This Agreement constitutes the legal, valid and binding obligation of each of the Members, enforceable
against each of the Members in accordance with its terms, except as such enforceability may be limited by principles of public policy and subject to the laws of general application relating to
bankruptcy, insolvency and the relief of debtors and to rules of law governing specific performance, injunctive relief or other equitable remedies. Upon the execution of each of the other
Transactional Agreements at the Closing, each of such other Transactional Agreements to which any of the Members is a party will constitute the legal, valid and binding obligation of such Member and
will be enforceable against such Member in accordance with its terms, except as such enforceability may be limited by principles of public policy and subject to the laws of general application
relating to bankruptcy,
insolvency and the relief of debtors and to rules of law governing specific performance, injunctive relief or other equitable remedies. 

        2.27 Non-Contravention; Consents.    Except as set
forth in Part 2.27 of the Seller Disclosure Schedule, neither the execution and delivery of any of the Transactional Agreements by the Seller or the Members, nor the consummation or performance
of any of the Transactions by the Seller or the Members, will directly or indirectly (with or without notice or lapse of time): 

        (a)   contravene, conflict with or result in a violation of, or give any Governmental Body or other Person the right to
challenge any of the Transactions or to exercise any remedy or obtain any relief under, any Legal Requirement or any Order to which any of the Members or the Seller, or any of the assets of the
Seller, is subject; 

        (b)   cause the Purchaser or any affiliate of the Purchaser to become subject to, or to become liable for the payment of, any
Tax; 

        (c)   contravene, conflict with or result in a violation of any of the terms or requirements of, or give any Governmental Body
the right to revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that is to be included in the Assets or is held by the Seller or any employee of the Seller; 

        (d)   contravene, conflict with or result in a violation or breach of, or result in a default under, any provision of any
Seller Contract; 

        (e)   give any Person the right to (i) declare a default or exercise any remedy under any Seller Contract,
(ii) accelerate the maturity or performance of any Seller Contract, or (iii) cancel, terminate or modify any Seller Contract; or 

        (f)    result in the imposition or creation of any Encumbrance upon or with respect to any of the Assets. 

Except
as set forth in Part 2.27 of the Seller Disclosure Schedule, neither the Seller nor any Member was, is or will be required to make any filing with or give any notice to, or to obtain any
Consent from, 

22

 

any
Person in connection with the execution and delivery of any of the Transactional Agreements or the consummation or performance of any of the Transactions. 

        2.28 Brokers.    Except as disclosed in Part 2.28 of the
Seller Disclosure Schedule, neither the Seller nor any Member has agreed or become obligated to pay, or has taken any action that might result in any Person claiming to be entitled to receive, any
brokerage commission, finder's fee or similar commission or fee in connection with any of the Transactions. 

        2.29 Full Disclosure.    None of the Transactional Agreements or
the Seller Disclosure Schedule contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements herein or therein, as the case may be, in light of
the circumstances under which such statements were made, not misleading. All of the information set forth in the Seller Disclosure Schedule, and all other information regarding the Seller and its
business, condition, assets, liabilities, operations, financial performance and net income that has been furnished to the Purchaser or any of the Purchaser's Representatives by or on behalf of any
Member or the Seller or by any Representative of any Member or of the Seller, is accurate and complete in all material respects. 

3.     REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

        The
Purchaser represents and warrants, to and for the benefit of the Seller, as follows: 

        3.1   Due Organization; No Subsidiaries; Etc.    The Purchaser is a
corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Purchaser is qualified, authorized, registered or licensed to do business as a foreign
corporation in each jurisdiction in which the failure to so qualify would have a material adverse effect on the Purchaser. The Purchaser does not have any subsidiaries, and does not own, beneficially
or otherwise, any shares or other securities of, or any direct or indirect interest of any nature in, any other Entity. The Purchaser has never conducted any business under or otherwise used, for any
purpose or in any jurisdiction, any fictitious name, assumed name, trade name or other name, other than "Aptas, Inc.," AccelX," "ImpulseSale.com, Inc." and "Nextron
Communications, Inc." 

        3.2   Organizational Documents; Records.    The Purchaser has
delivered to (or made available for inspection by) the Seller accurate and complete copies of: (i) the organizational documents of the Purchaser, including its certificate of incorporation,
including all amendments thereto; (ii) the stock records of the Purchaser; and (iii) the minutes and other records of the meetings and other proceedings (including any actions taken by
written consent or otherwise without a meeting) of the shareholders of the Purchaser, the board of directors of the Purchaser and all committees of the board of directors of the Purchaser. There have
been no meetings or other proceedings of the shareholders of the Purchaser, the board of directors of the Purchaser or any committee of the board of directors of the Purchaser that are not fully
reflected in all material respects in such minutes or other records. The books of account, stock records, minute books and other records of the Purchaser are accurate,
up-to-date and complete, and have been maintained in accordance with sound and prudent business practices. All of the records of the Purchaser are in the actual possession and
direct control of the Purchaser. 

        3.3   Purchaser Financial Statements.    The Purchaser has delivered
to the Seller the following financial statements (collectively, the "Purchaser Financial Statements"): (i) the unaudited balance sheets of the
Purchaser as of December 31, 2004, December 31, 2003 and December 31, 2002, and the related statements of income, retained earnings and cash flows for the years then ended. The
Purchaser Financial Statements have been prepared in accordance with GAAP (except that the Purchaser Financial Statements do not have footnotes) and present fairly in all material respects the
financial position of the Purchaser as of the respective dates thereof and the results of operations and cash flows of the Purchaser for the periods covered thereby. 

23

   
        3.4   Absence of Changes.    Except as set forth in Part 3.4
of the Purchaser Disclosure Schedule, since December 31, 2004: 

        (a)   there has not been any adverse change in, and no event has occurred that might have an adverse effect on, the business,
condition, assets, liabilities, operations, financial performance or net income of the Purchaser; 

        (b)   there has not been any loss, damage or destruction to, or any interruption in the use of, any of the material assets of
the Purchaser (whether or not covered by insurance); 

        (c)   the Purchaser has not (i) declared, accrued, set aside or paid any dividend or made any other distribution in
respect of any shares of capital stock or other securities, or (ii) repurchased, redeemed or otherwise reacquired any shares of capital stock or other securities; 

        (d)   the Purchaser has not purchased or otherwise acquired any asset from any other Person, except for supplies acquired by
the Purchaser in the Ordinary Course of Business; 

        (e)   the Purchaser has not leased or licensed any asset from any other Person; 

        (f)    the Purchaser has not made any capital expenditure; 

        (g)   the Purchaser has not sold or otherwise transferred, or leased or licensed, any asset to any other Person; 

        (h)   the Purchaser has not written off as uncollectible, or established any extraordinary reserve with respect to, any account
receivable or other indebtedness; 

        (i)    the Purchaser has not made any loan or advance to any other Person; 

        (j)    no Contract by which the Purchaser or any of the assets owned or used by the Purchaser are or were bound, or under which
the Purchaser have or had any rights or interest, has been amended or terminated; 

        (k)   the Purchaser has not incurred, assumed or otherwise become subject to any Liability, other than Liabilities incurred by
the Purchaser in bona fide transactions entered into in the Ordinary Course of Business; 

        (l)    the Purchaser has not discharged any Encumbrance or discharged or paid any indebtedness or other Liability, except for
Encumbrances discharged or Liabilities paid in the Ordinary Course of Business; 

        (m)  the Purchaser has not forgiven any debt or otherwise released or waived any right or claim other than in the Ordinary
Course of Business; 

        (n)   the Purchaser has not changed any of its methods of accounting or accounting practices in any respect; 

        (o)   the Purchaser has not entered into any transaction or taken any other action outside the Ordinary Course of Business; 

        (p)   the Purchaser has not agreed, committed or offered (in writing or otherwise) to take any of the actions referred to in
clauses "(c)" through "(o)" above; and 

        (q)   the Purchaser has paid and discharged its obligations and liabilities in the Ordinary Course of Business. 

        3.5   Brokers.    The Purchaser has not become obligated to pay, and
has not taken any action that might result in any Person claiming to be entitled to receive, any brokerage commission, finder's fee or similar commission or fee in connection with any of the
Transactions. 

24

 

        3.6   Authority and Related Matters.    The Purchaser has all
requisite power and authority to enter into this Agreement and any Transactional Agreement to which it is or will be a party and to consummate the Transactions. The execution and delivery of this
Agreement and any Transactional Agreement to which the Purchaser is a party and the consummation of the Transactions have been duly authorized by all necessary organizational action on the part of the
Purchaser, and no further action is required on the part of the Purchaser to authorize the Agreement and any Transactional Agreement to which it is a party and the Transactions. This Agreement and any
Transactional Agreement to which it is a party have been duly executed and delivered by the Purchaser, and assuming the due authorization, execution and delivery by the other parties to such
Transactional Agreements, constitutes or will constitute a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except that such
enforceability may be limited by principles of public policy and subject to the laws of general application relating to bankruptcy, insolvency and the relief of debtors and to rules of law governing
specific performance, injunctive relief or other equitable remedies. 

        3.7   ISx Financial Statements.    Purchaser has delivered to the
Seller the following financial statements in the form provided to it by Information Services Extended, Inc., a Delaware corporation ("ISx")
(collectively, the "ISx Financial Statements"): (i) the audited balance sheets of ISx as of December 31, 2003 and December 31,
2002, and the related statements of income and retained earnings and cash flows for the years then ended, together with the notes thereto and the report of Ernst & Young with respect thereto;
and (ii) the unaudited balance sheet of ISx as of December 31, 2004 and the related statements of income and cash flows for the year then ended. The ISx Financial Statements have been
prepared in accordance with GAAP (except that the financial statements referred to in clause "(ii)" of this Section 3.7 do not have footnotes) and present fairly in all material respects the
financial position of ISx as of the respective dates thereof and the results of operations and cash flows of ISx for the periods covered thereby. 

        3.8   Intellectual Property.

        (a)   Part 3.8(a) of the Purchaser Disclosure Schedule accurately identifies and describes: 

          (i)  in Part 3.8(a)(i) of the Purchaser Disclosure Schedule, each proprietary service developed, marketed,
performed or sold by the Purchaser at any time since December 31, 2001, and not abandoned, and any product or service currently under development by the Purchaser; 

         (ii)  in Part 3.8(a)(ii) of the Purchaser Disclosure Schedule: (A) each item of Registered IP in which
the Purchaser has or purports to have an ownership interest of any nature (whether exclusively, jointly with another Person or otherwise); (B) the jurisdiction in which such item of Registered
IP has been registered or filed and the applicable registration or serial number; (C) any other Person that has an ownership interest in such item of Registered IP and the nature of such
ownership interest; and (D) each product or service identified in Part 3.8(a)(i) of the Purchaser Disclosure Schedule that embodies, incorporates or is based upon or derived from
(or, with respect to products and services under development, that is expected to embody, utilize or be based upon or derived from) such item of Registered IP; 

       (iii)  in Part 3.8(a)(iii) of the Purchaser Disclosure Schedule: (A) all Intellectual Property Rights or
Intellectual Property licensed to the Purchaser (other than any non-customized software that: (1) is so licensed solely in executable or object code form pursuant to a nonexclusive,
internal use software license, (2) is not incorporated into, or used directly in the development, manufacturing or distribution of, the products or services of the Purchaser and (3) is
generally available on standard terms for less than $20,000); (B) the corresponding Contract or Contracts pursuant to which such Intellectual Property Rights or Intellectual 

25

 

Property
is licensed to the Purchaser; and (C) whether the license or licenses so granted to the Purchaser are exclusive or nonexclusive; and 

        (iv)  in Part 3.8(a)(iv) of the Purchaser Disclosure Schedule, each Contract pursuant to which any Person has
been granted any license under, or otherwise has received or acquired any right (whether or not currently exercisable) or interest in, any Purchaser IP. 

        (b)   The Purchaser has provided to the Seller a complete and accurate copy of each standard form of Purchaser IP Contract
currently used by the Purchaser, including each standard form of: (i) end user license agreement; (ii) development agreement; (iii) distributor or reseller agreement;
(iv) employee agreement containing any assignment or license of Intellectual Property or Intellectual Property Rights or any confidentiality provision; (v) consulting or independent
contractor agreement containing any assignment or license of Intellectual Property or Intellectual Property Rights or any confidentiality provision; or (vi) confidentiality or nondisclosure
agreement. Except for the nonexclusive licenses and rights granted in Contracts identified in Part 3.8(a)(iv) of the Purchaser Disclosure Schedule, the Purchaser is not bound by, and no
Purchaser IP is subject to, any Contract containing any covenant or other provision that in any way limits or restricts the ability of the Purchaser to use, exploit, assert, or enforce any Purchaser
IP anywhere in the world. 

        (c)   Except as disclosed in Part 3.8(c) of the Purchaser Disclosure Schedule, the Purchaser exclusively owns all right,
title and interest to and in the Purchaser IP (other than Intellectual Property Rights or Intellectual Property exclusively licensed to the Purchaser, as identified in
Part 3.8(a)(iii) of the Purchaser Disclosure Schedule) free and clear of any Encumbrances (other than nonexclusive licenses granted pursuant to the Contracts listed in
Part 3.8(a)(iv) of the Purchaser Disclosure Schedule). Without limiting the generality of the foregoing: 

          (i)  in Part 3.8(a)(ii) of the Purchaser Disclosure Schedule, Purchaser has identified all Registered IP; all
documents and instruments necessary to perfect the rights of the Purchaser in such Registered IP have been validly executed, delivered and filed in a timely manner with the appropriate Governmental
Body; 

         (ii)  each Person who is or was an employee or independent contractor of the Purchaser and who is or was involved in the
creation or development of any Purchaser IP has signed an agreement containing an irrevocable assignment of Intellectual Property Rights to the Purchaser and confidentiality provisions protecting the
Purchaser IP; 

       (iii)  no Employee of the Purchaser has any claim, right (whether or not currently exercisable) or interest to or in any
Purchaser IP; 

        (iv)  to the best of the knowledge of the Purchaser, no employee or independent contractor of the Purchaser is:
(A) bound by or otherwise subject to any Contract restricting him or her from performing his or her duties for the Purchaser; or (B) in breach of any Contract known to the Purchaser with
any former employer or other Person concerning Intellectual Property Rights or confidentiality; 

         (v)  no funding, facilities or personnel of any Governmental Body were used, directly or indirectly, to develop or create, in
whole or in part, any Purchaser IP; 

        (vi)  the Purchaser has taken all reasonable steps to maintain the confidentiality of and otherwise protect and enforce its
rights in all proprietary information held by the Purchaser, or purported to be held by the Purchaser, as a trade secret; 

       (vii)  except as may be disclosed in Part 3.8(c)(vii) of the Purchaser Disclosure Schedule, since
December 31, 2001, the Purchaser has never assigned or otherwise transferred ownership of, or agreed to assign or otherwise transfer ownership of, any Intellectual Property Right to any other
Person; 

26

 

      (viii)  the Purchaser is not now nor has ever been a member or promoter of, or a contributor to, any industry standards body
or similar organization that could require or obligate the Purchaser to grant or offer to any other Person any license or right to any Purchaser IP; and 

        (ix)  the Purchaser owns or otherwise has all Intellectual Property Rights needed to conduct the business of the Purchaser as
currently conducted. 

        (d)   All Purchaser IP is valid, subsisting and enforceable. Without limiting the generality of the foregoing: 

          (i)  to the best of the knowledge of the Purchaser no trademark (whether registered or unregistered) or trade name owned,
used, or applied for by the Purchaser conflicts or interferes with any trademark (whether registered or unregistered) or trade name owned, used or applied for by any other Person; 

         (ii)  to the best of the knowledge of the Purchaser, there is no basis for a claim that any Purchaser IP is invalid or
unenforceable. 

        (e)   Except as disclosed in Part 3.8(e) of the Purchaser Disclosure Schedule, neither the execution, delivery or
performance of any of the Transactional Agreements by the Purchaser nor the consummation of any of the Transactions will, with or without notice or the lapse of time, result in or give any other
Person the right or option to cause or declare: (i) a loss of, or Encumbrance on, any Purchaser IP; (ii) a Breach of any Contract listed or required to be listed in
Part 3.8(a)(iii) of the Purchaser Disclosure Schedule; (iii) the release, disclosure or delivery of any Purchaser IP by or to any escrow agent or other Person; or (iv) the
grant, assignment or transfer to any other Person of any license or other right or interest under, to or in any of the Purchaser IP. 

        (f)    To the best of the knowledge of the Purchaser, no Person has infringed, misappropriated, or otherwise violated, and no
Person is currently infringing, misappropriating or otherwise violating, any Purchaser IP. Part 3.8(f) of the Purchaser Disclosure Schedule accurately identifies (and the Purchaser has provided
to the Purchaser a complete and accurate copy of) each letter or other written or electronic communication or correspondence that has been sent or otherwise delivered by or to the Purchaser regarding
any actual, alleged or suspected infringement or misappropriation of any Purchaser IP and provides a brief description of the current status of the matter referred to in such letter, communication or
correspondence. 

        (g)   Except as disclosed in Part 3.8(g) of the Purchaser Disclosure Schedule, the Purchaser has never infringed
(directly, contributorily, by inducement or otherwise), misappropriated or otherwise violated any Intellectual Property Right of any other Person. Without limiting the generality of the foregoing: 

          (i)  no product, information or service ever manufactured, produced, distributed, published, used, provided or sold by or on
behalf of the Purchaser, and no Intellectual Property ever owned, used or developed by the Purchaser, has ever infringed, misappropriated or otherwise violated any Intellectual Property Right of any
other Person; 

         (ii)  no infringement, misappropriation or similar claim or Proceeding is pending, or to the best of the knowledge of the
Purchaser has been threatened, against the Purchaser or against any other Person
who may be entitled to be indemnified, defended, held harmless or reimbursed by the Purchaser with respect to such claim or Proceeding; 

       (iii)  to its knowledge, the Purchaser has never received any notice relating to any actual, alleged or suspected
infringement, misappropriation or violation of any Intellectual Property Right of another Person; 

27

 

        (iv)  the Purchaser is not bound by any Contract to indemnify, defend, hold harmless or reimburse any other Person with
respect to any intellectual property infringement, misappropriation or similar claim (other than pursuant to the standard forms of Purchaser IP Contracts described in Section 3.8(b)); 

         (v)  the Purchaser has never assumed, or agreed to discharge or otherwise take responsibility for, any existing or potential
liability of another Person for infringement, misappropriation or violation of any Intellectual Property Right (other than pursuant to the standard forms of Purchaser IP Contracts described in
Section 3.8(b)); and 

        (vi)  no claim or Proceeding involving any Intellectual Property or Intellectual Property Right licensed to the Purchaser is
pending or, to the best of the knowledge of the Purchaser, has been threatened, except for any such claim or Proceeding that, if adversely determined, would not adversely affect: (A) the use or
exploitation of such Intellectual Property or Intellectual Property Right by the Purchaser; or (B) the manufacturing, distribution or sale of any product or service being developed, offered,
manufactured, distributed or sold by the Purchaser. 

        (h)   None of the Purchaser Software (other than Purchaser Software that is (i) currently under development and
(ii) is not, as of the date hereof, the subject of any license agreements or customer contract of any kind): (i) contains any bug, defect or error (including any bug, defect or error
relating to or resulting from the display, manipulation, processing, storage, transmission or use of date data) that materially and adversely affects the use, functionality or performance of such
Purchaser Software or any product or system containing or used in conjunction with such Purchaser Software; or (ii) fails to comply with any applicable warranty or other contractual commitment
relating to the use, functionality or performance of such software or any product or system containing or used in conjunction with such Purchaser Software. 

        (i)    None of the Purchaser Software contains any "back door," "drop dead device," "time bomb," "Trojan horse," "virus," or
"worm" (as such terms are commonly understood in the software industry) or any other code designed or intended to have, or capable of performing, any of the following
functions: (i) disrupting, disabling, harming or otherwise impeding in any manner the operation of, or providing unauthorized access to, a computer system or network or other device on which
such code is stored or installed; or (ii) damaging or destroying any data or file without the user's consent. 

        (j)    None of the Purchaser Software is subject to any "copyleft" or other obligation or condition (including any obligation or
condition under any "open source" license such as the GNU Public License, Lesser GNU Public License or Mozilla Public License) that: (i) could or does require, or could or does condition the
use or distribution of such Purchaser Software on, the disclosure, licensing or distribution of any source code for any portion of such Purchaser Software; or (ii) could or does otherwise
impose any limitation, restriction or condition on the right or ability of the Purchaser to use or distribute any Purchaser Software. 

        (k)   Except as identified in Part 3.8(k) of the Purchaser Disclosure Schedule, no source code for any Purchaser
Software has been delivered, licensed or made available to any escrow agent or other Person who is not, as of the date of this Agreement, an employee of the Purchaser. The Purchaser does not have any
duty or obligation (whether present, contingent or otherwise) to deliver, license or make available the source code for any Purchaser Software to any escrow agent or other Person who is not, as of the
date of this Agreement, an employee of the Purchaser. No event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time) will, or could reasonably be
expected to, result in the delivery, license or disclosure of any source code for any Purchaser Software to any other Person who is not, as of the date of this Agreement, an employee of the Purchaser. 

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        3.9   Liabilities.

        (a)   Except as set forth in Part 3.9 of the Purchaser Disclosure Schedule, the Purchaser has no Liabilities, except
for: (i) Liabilities identified as such in the "liabilities" columns of the Purchaser Unaudited Balance Sheet; (ii) Liabilities incurred by the Purchaser in bona fide transactions
entered into in the Ordinary Course of Business since December 31, 2004; and (iii) the other Liabilities of Purchaser listed in Part 3.9 of the Purchaser Disclosure Schedule. 

        (b)   Except as set forth in Part 3.9 of the Purchaser Disclosure Schedule, ISx has no Liabilities, except for
(i) Liabilities identified as such in the "liabilities" columns of the ISx Financial Statements; (ii) Liabilities incurred by ISx in bona fide transactions entered into the Ordinary
Course of Business since December 31, 2004; and (iii) the other Liabilities of ISx listed in Part 3.9 of the Purchaser Disclosure Schedule. 

        (c)   Neither the Purchaser nor ISx has, at any time, (i) made a general assignment for the benefit of creditors,
(ii) filed, or had filed against it, any bankruptcy petition or similar filing, (iii) suffered the attachment or other judicial seizure of all or a substantial portion of its assets,
(iv) admitted in writing its inability to pay its debts as they become due, or (v) taken or been the subject of any action that may have an adverse effect on its ability to comply with
or perform any of its covenants or obligations under any of the Transactional Agreements. 

        3.10 Proceedings; Orders.    Except as set forth in
Part 3.10 of the Purchaser Disclosure Schedule, there is no pending Proceeding, and to the best of the knowledge of the Purchaser no Person has threatened to commence any Proceeding:
(i) that involves the Purchaser or ISx or that otherwise relates to or might affect the business of the Purchaser or ISx (whether or not the Seller is named as a party thereto); or
(ii) that challenges, or that may have the effect of preventing, delaying, making illegal or otherwise interfering with, any of the Transactions. Except as set forth in Part 3.10 of the
Purchaser Disclosure Schedule, to the best of the knowledge of the Purchaser no event has occurred, and no claim, dispute or other condition or circumstance exists, that might directly or indirectly
give rise to or serve as a basis for the commencement of any such Proceeding. Except as set forth in Part 3.10 of the Purchaser Disclosure Schedule, no Proceeding has ever been commenced by or
against the Purchaser or ISx. The Purchaser has delivered to the Seller accurate and complete copies of all pleadings, correspondence and other written materials (to which the Purchaser has access and
which are not subject to the attorney client privilege or work product doctrine) that relate to the Proceedings identified in Part 3.10 of the Purchaser Disclosure Schedule. There is no Order
to which the Purchaser or ISx, or any of the assets owned or used by the Purchaser or ISx, is subject; and neither the Purchaser nor ISx is subject to any Order that relates to their respective
business or to any of the assets of the Purchaser or ISx. To the best of the knowledge of the Purchaser, no employee of the Purchaser or ISx is subject to any Order that may prohibit the employee from
engaging in or continuing any conduct, activity or practice relating to the business of the Purchaser or ISx, respectively. There is no proposed Order that, if issued or otherwise put into effect,
(i) may have an adverse effect on the business, condition, assets, liabilities, operations, financial performance or net income of the Purchaser or ISx or on the ability of the Purchaser with
or perform any covenant or obligation under any of the Transactional Agreements, or (ii) may have the effect of preventing, delaying, making illegal or otherwise interfering with any of the
Transactions. 

        3.11 ISx Intellectual Property.    To the knowledge of the
Purchaser, the representations and warranties made by ISx in Section 2.9 of that certain Stock Purchase Agreement, to be dated on or about March 29, 2005 and in the form delivered to the
Seller, between the Purchaser and ISx (the "Stock Purchase Agreement"), as qualified by the Disclosure Schedule (as defined in the Stock Purchase
Agreement and as in effect as of the date hereof), are true and correct in all material respects. 

        3.12 Full Disclosure.    None of the Transactional Agreements or
the Purchaser Disclosure Schedule contains any untrue statement of a material fact or omits to state a material fact necessary to make the 

29

 

statements
herein or therein, as the case may be, in light of the circumstances under which such statements were made, not misleading. All of the information set forth in the Purchaser Disclosure
Schedule, and all other information regarding the Purchaser and its business, condition, assets, liabilities, operations, financial performance and net income that has been furnished to the Seller or
any of the Purchaser's Representatives by or on behalf of Purchaser, is accurate and complete in all material respects. 

4.     INVESTMENT REPRESENTATIONS AND COVENANTS

        Each
of the Seller and each Member (each, for purposes of this Section 4, an "Investor") represents and warrants to the Purchaser,
individually as to itself and not the other Member, as follows: 

        4.1   Exemption from Registration. Such Investor agrees and acknowledges that
the Consideration Notes will be issued as "restricted securities" as defined under Rule 144 of the Securities Act, in a transaction exempt from registration under the Securities Act, by reason
of Section 4(2) thereof or Regulation D thereunder, provided such exemption is available for such Consideration Notes. 

        4.2   Legends. Such Investor agrees and acknowledges that all certificates
representing the Consideration Notes deliverable to such Investor pursuant to this Agreement and any instruments subsequently issued with respect thereto or in substitution therefor shall bear the
following legend, in addition to any other legends required by law or as set forth in the Consideration Notes: 

        THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND ARE "RESTRICTED SECURITIES" AS DEFINED IN
RULE 144 PROMULGATED UNDER THE SECURITIES ACT. SUCH SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISTRIBUTED EXCEPT (I) PURSUANT TO A REGISTRATION STATEMENT
DECLARED OR ORDERED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT, OR (II) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, AND IN THE CASE OF ANY SALE, OFFER OF SALE, PLEDGE, HYPOTHECATION OR OTHER DISTRIBUTION EFFECTED PURSUANT TO CLAUSE (II) ABOVE, PURSUANT TO AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
THE ISSUER OF SUCH SECURITIES THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT AS TO SUCH SALE, OFFER OF SALE, PLEDGE, HYPOTHECATION OR OTHER DISTRIBUTION. THIS CERTIFICATE MUST BE
SURRENDERED TO THE
ISSUER HEREOF OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE TRANSFER OF ANY INTEREST IN THE SECURITIES REPRESENTED HEREBY. 

        Upon
the written request of a holder of the Consideration Notes, the Purchaser shall remove the foregoing legend from the certificates evidencing such Consideration Notes and issue to
such holder new certificates therefor, free of any transfer legend if, with such request, the Purchaser shall have received an opinion of counsel to the holder, such opinion to be reasonably
satisfactory to the Purchaser, to the effect that any transfers by said holder of such Consideration Notes may be made to the public without compliance with either Section 5 of the Securities
Act or pursuant to Rule 144(k). In no event will such legend be removed if such opinion is based upon the "private offering" exemption of Section 4(2) of the Securities Act. 

        4.3   Market Stand-Off Agreement. Such Investor agrees that it
shall not sell, dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any shares
of common stock of the Purchaser (or other securities of the Purchaser) held by such Investor, for a period of time specified by the managing underwriter(s) (not to exceed one hundred eighty
(180) days) following the effective date of a 

30

 

registration
statement of the Company filed under the Act. Such Investor agrees to execute and deliver such other agreements as may be reasonably requested by the Purchaser and/or the managing
underwriter(s) which are consistent with the foregoing or which are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Purchaser may impose
stop-transfer instructions with respect to such shares of common stock (or other securities) until the end of such period. The underwriters of the Purchaser's common stock are intended
third-party beneficiaries of this Section 4.3 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 

        4.4   Investment Representations.

        (a)   Such Investor understands and acknowledges that the Consideration Notes to be issued to such Investor are being issued in
reliance upon the exemption from the registration requirements of the Securities Act afforded by Section 4(2) and/or Regulation D of the Securities Act, and that such shares will not be
registered under the Securities Act or any state securities or "blue sky" law. 

        (b)   Except to the extent otherwise provided for in connection with, or otherwise not applicable in light of, the express
provisions of any of the Transactional Agreements, the Consideration Notes to be issued as consideration pursuant hereto are being acquired by such Investor pursuant to the terms and subject to the
conditions of this Agreement and for such Investor's own account and for investment purposes only, and not with a view to any public resale, public distribution or other public offering thereof, in
each case within the meaning of the Securities Act or any state securities or "blue sky" law. 

        (c)   Such Investor understands and acknowledges that the Consideration Notes to be issued to it may not be sold or otherwise
disposed of, except pursuant to registration under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act. 

        (d)   Such Investor has such knowledge and experience in financial and business matters that such Investor is capable of
evaluating the merits and risks of the prospective investment in the Consideration Notes, and such Investor is able to bear the economic consequences thereof. 

31

  

        (e)   In making the decision to acquire the Consideration Notes, such Investor has relied upon his independent investigations
and, to the extent believed by such Investor to be appropriate, such Investor's representative, including such Member's own professional, tax and other advisors, and has not relied upon any
representation or warranty from the Purchaser or any of its Representatives with respect to the value of the Consideration Notes or the Tax consequences of the Transactions. 

        (f)    Such Investor has been given a full opportunity to examine all documents relating to the Transactions, and to ask
questions of, and to receive answers from, the Purchaser and its Representatives concerning the terms of the Transactions and such other information as such Investor desires in order to evaluate an
investment in the Consideration Notes and all such questions have been answered to the full satisfaction of such Investor. 

        (g)   Such Investor is an "accredited investor" within the meaning of SEC Rule 501 of Regulation D, as presently
in effect. 

5.     INDEMNIFICATION, ETC.  

        5.1   Survival of Representations And Covenants.

        (a)   Subject to the provisions of Section 5.1(b), the representations, warranties, covenants and obligations of each
party to this Agreement shall survive: (i) the Closing and the sale of the Assets to the Purchaser; (ii) any sale or other disposition of any or all of the Assets by the Purchaser; and
(iii) the dissolution of any party to this Agreement. 

        (b)   The representations, warranties, covenants and obligations of each party shall survive the Closing to the extent provided
in this Section 5.1(b). The Specified Representations and covenants or obligations to be performed after the Closing shall survive and continue indefinitely. All other representations and
warranties and related sections of the Seller Disclosure Schedule and the Purchaser Disclosure Schedule and all covenants to have been performed prior to the Closing shall survive the Closing for a
period of twelve (12) months after the date of the Closing, except that the representations and warranties set forth in Sections 2.17 and 2.20 shall survive the Closing until the expiration of
the statute of limitations applicable to claims against the Seller. For purposes of this Agreement, the "Specified Representations" shall mean the
representations and warranties set forth in Sections 2.1, 2.3, 2.6 and 2.26 and Sections 3.1 and 3.6 and the related sections of the Seller Disclosure Schedule and the Purchaser Disclosure Schedule,
as applicable. Notwithstanding anything to the contrary herein, if a Claim Notice (as defined below) relating to any representation or warranty set forth in any of said Sections is given to the a
party required to provide indemnification pursuant to this Section 5 on or prior to the first anniversary of the Closing Date, then, notwithstanding anything to the contrary contained in this
Section 5.1(b), such representation or warranty shall not so expire, but rather shall remain in full force and effect until such time as each and every claim that is based directly or
indirectly upon, or that relates directly or indirectly to, any Breach or alleged Breach of such representation or warranty has been fully and finally resolved, either by means of a written settlement
agreement executed by the parties hereto, or by means of a final, non-appealable judgment issued by a court of competent jurisdiction. 

        (c)   Notwithstanding anything to the contrary contained in Section 5.1(b) (and without limiting the generality of
anything contained in Section 5.1(a)), if any party to this Agreement had knowledge, on or prior to the Closing Date, of any circumstance that constitutes or that has given rise or could
reasonably be expected to give rise, directly or indirectly, to any Breach of any representation or warranty by such party in this Agreement or the Seller Disclosure Schedule or Purchaser Disclosure
Schedule, as applicable, then such representation or warranty shall not 

32

 

expire,
but rather shall remain in full force and effect for an unlimited period of time (regardless of whether any Claim Notice relating to such representation or warranty is ever given). 

        (d)   For purposes of this Agreement, a "Claim Notice" relating to a particular representation or warranty shall be deemed to
have been given if any party to this Agreement, acting in good faith, delivers (in accordance with Section 8.4 hereof) to the party to this Agreement from which indemnification is to be sought
a written notice stating that such party believes that there is or that it has reasonable cause to believe there has been a Breach of such representation or warranty and containing (i) a brief
description of the circumstances supporting such party's belief that there is or has been such a possible Breach, and (ii) a non-binding, preliminary estimate of the aggregate
dollar amount of the actual and potential Damages that have arisen and may arise as a direct or indirect result of such possible Breach. 

        (e)   For purposes of this Agreement, each statement or other item of information set forth in the Seller Disclosure Schedule
and the Purchaser Disclosure Schedule shall be deemed to be a representation and warranty made by the Seller and the Purchaser, respectively, in this Agreement. 

        5.2   Indemnification By The Members And The Seller.

        (a)   The Members and the Seller, jointly and severally, shall hold harmless and indemnify each of the Indemnitees from and
against, and shall compensate and reimburse each of the Indemnitees for, any Damages that are directly suffered or incurred by any of the Indemnitees or to which any of the Indemnitees may otherwise
become subject at any time (regardless of whether or not such Damages relate to any third-party claim) and that arise directly or indirectly from or as a direct or indirect result of, or are directly
or indirectly connected with: 

          (i)  any Breach of any representation or warranty made by the Members or the Seller in Section 2 of this Agreement as
of the date of this Agreement; 

         (ii)  any Breach of any representation, warranty, statement, information or provision contained in the Seller Disclosure
Schedule related to Section 2 of this Agreement, the Closing Certificate or in any other document delivered or otherwise made available to the Purchaser or any of its Representatives by or on
behalf of any Member, the Seller or any Representative of any Member or of the Seller; 

       (iii)  any Breach of any representation, warranty, covenant or obligation of any Member or the Seller contained in any of the
Transactional Agreements; 

        (iv)  any Liability of the Seller or of any Related Party, other than the Assumed Liabilities; or 

         (v)  any Proceeding relating directly or indirectly to any Breach, alleged Breach, Liability or matter of the type referred to
in clause "(i)" through "(iv)" above (including any Proceeding commenced by any Indemnitee for the purpose of enforcing any of its rights under this Section 9). 

        (b)   Each of the Members shall, severally but not jointly, hold harmless and indemnify each of the Indemnitees from and
against, and shall compensate and reimburse each of the Indemnitees for, any Damages that are directly or indirectly suffered or incurred by any of the Indemnitees or to which any of the Indemnitees
may otherwise become subject at any time (regardless of whether or not such Damages relate to any third-party claim) and which arise directly or indirectly from or as a direct or indirect result of,
or are directly or indirectly connected with, any Breach of any representation or warranty made by such Member in Section 4 of this Agreement as of the date of this Agreement. 

33

 

        (c)   Subject to Section 5.2(d), neither the Seller nor any Member shall be required to make any indemnification payment
pursuant to Sections 5.2(a)(i) through (v) or Section 5.2(b) for any Breach as set forth in such Sections until such time as, and to the extent that, the total amount of all
Damages (including the Damages arising from such Breach and all other Damages arising from any other Breaches of any representations, warranties or covenants) that have been directly or indirectly
suffered or incurred by any one or more of the Indemnitees, or to which any one or more of the Indemnitees has or have otherwise become subject, exceeds $100,000 (the
"Basket"). Except in the case of fraud or willful misrepresentation, the maximum liability of each Member under Section 5.2(b) shall not exceed
one-half of the Aggregate Overall Cap. Except in the case of fraud or willful misrepresentation, the maximum liability of the Members and the Seller for indemnification pursuant to
Sections 5.2(a)(i) through (iii) and 5.2(a)(v) shall not exceed the Aggregate Overall Cap. Claims under Sections 5.2(a) and 5.2(b) shall be aggregated in determining whether
claims for Damages exceed one-half of the Aggregate Overall Cap or the Aggregate Overall Cap, as applicable. 

        (d)   The limitation on the indemnification obligations of the Members and the Seller that is set forth in
Section 5.2(c) shall not apply to any Breach arising directly or indirectly from any circumstance of which any of the Members or the Seller had Knowledge on or prior to the Closing Date. 

        5.3   Indemnification By The Purchaser.

        (a)   The Purchaser shall hold harmless and indemnify the Seller, the Members and their respective Representatives from and
against, and shall compensate and reimburse them for, any Damages that are directly or indirectly suffered or incurred by them or any of them or to which they or any of them may otherwise become
subject at any time (regardless of whether or not such Damages relate to any third-party claim) and that arise directly or indirectly from or as a direct or indirect result of, or are directly or
indirectly connected with: 

          (i)  any failure on the part of the Purchaser to perform and discharge the Assumed Liabilities on a timely basis; 

         (ii)  any Breach of the Purchaser Specified Representations; 

       (iii)  any Breach of any representation, warranty, statement, information or provision contained in the Purchaser Disclosure
Schedule related to the Purchase Specified Representations; or 

        (iv)  any Proceeding relating directly or indirectly to any failure or Breach of the type referred to in clause "(i)", "(ii)",
or "(iii)" above (including any Proceeding commenced by the Seller, the Members or any of their Representatives for the purpose of enforcing its rights under this Section 5.3). 

For
purposes of this Agreement, the "Purchaser Specified Representations" shall mean the representations set forth in Sections 3.1 through 3.6 hereof, inclusive. 

        (b)   The Purchaser shall not be required to make any indemnification payment pursuant to Sections 5.3(a)(ii) through
5.3(a)(iv) for any Breach as set forth in such Section until such time as, and to the extent that, the total amount of all Damages (including the Damages arising from such Breach and all other
Damages arising from any other Breaches of its representations or warranties) that have been directly or indirectly suffered or incurred by the Seller, or to which the Seller have otherwise become
subject, exceeds $100,000 in the aggregate. Except in the case of fraud or willful misrepresentation, the maximum liability of the Purchaser pursuant to this Section 5 for indemnification
pursuant to Sections 5.3(a)(ii) through 5.3(a)(iv) shall not exceed the Aggregate Overall Cap. 

34

 

        (c)   The Purchaser shall hold harmless and indemnify the Seller, the Members and their respective Representatives from and
against, and shall compensate and reimburse them for, any Damages that are directly or indirectly suffered or incurred by them or any of them or to which they or any of them may otherwise become
subject at any time (regardless of whether or not such Damages relate to any third-party claim) and that arise directly or indirectly from or as a direct or indirect result of, or are directly or
indirectly connected with any Breach of a representation or warranty contained in this agreement, other than the Purchaser Specified Representations (the "Unspecified
Representations"), which damages are a result of the Purchaser's fraud. The indemnification set forth in this Section 5.3(c) shall be the sole recourse available to the
Seller or its affiliates with respect to any Breach of the Unspecified Representations. 

        5.4   Setoff.    The Purchaser shall have the limited right to
withhold and deduct any sum that may be owed to any Indemnitee under this Section 5 from any amount payable by any Indemnitee to the Seller or any Member in respect of the Consideration Notes.
The withholding and deduction of any such sum shall operate for all purposes as a complete discharge (to the extent of such sum) of the obligation to pay the amount from which such sum was withheld
and deducted. Except as provided above in this Section 5.4, the Indemnitees shall not be entitled to set off against or deduct from any payment due to the Members or the Seller pursuant to the
Transactional Agreements any claims for indemnification pursuant to Section 5.2. 

        5.5   Exclusive Remedy.    Except in the case of (i) fraud or
willful misrepresentation, (ii) a Breach of either of the Non-compete Agreements, or (iii) any injunctive remedy or similar equitable relief to which a party may be entitled,
the sole and exclusive remedy for any breach of a warranty, representation, covenant or obligation in the Transactional Agreements shall be as set forth in this Section 5. 

        5.6   Defense of Third-Party Claims.

        (a)   Promptly after receipt by an indemnified party under Section 5.2 or Section 5.3 of notice of the assertion
or commencement by any third person or entity of any claim, investigation, proceeding or action (collectively, a "Claim") with respect to which any
indemnifying party may become obligated to indemnify, hold harmless, compensate or reimburse an indemnified party pursuant to this Section 5, such indemnified party will, if a claim is to be
made against an indemnifying party under such Section or if the indemnified party intends to take such claim into account in calculating the limitations described in Section 5.2(b) or
Section 5.3(b), as applicable, give notice to the indemnifying party of the commencement of such Claim, but the failure to notify the indemnifying party will not relieve the indemnifying party
of any liability that the indemnifying party may have to any indemnified party, except to the extent that the indemnifying party demonstrates that the defense of such action is prejudiced by the
indemnified party's failure to give such notice. 

        (b)   The indemnified party shall afford the indemnifying party the opportunity to assume the defense of any claim as to which
notice is given under Section 5.6(a) at the sole expense of the indemnifying party. If the indemnifying party so undertakes to assume the defense of such Claim: 

          (i)  the indemnifying party shall proceed to defend such Claim in a diligent manner with counsel reasonably satisfactory to
the indemnified party; 

         (ii)  the indemnifying party shall keep the indemnified party informed of all material developments and events relating to
such Claim; 

       (iii)  the indemnified party shall have the right to participate in the defense of such Claim, provided, however, the counsel
retained by the indemnified party shall be at the sole cost and expense of the indemnified party, and further provided, that counsel retained by the indemnifying party shall be lead counsel in the
defense of such Claim; and 

35

 

        (iv)  the indemnifying party shall not settle, adjust or compromise such Claim without the prior written consent of the
indemnified party which shall not be unreasonably withheld or delayed. 

        (c)   If the indemnifying party fails to promptly undertake the defense of such Claim or having undertaken such defense
thereafter fails to do so diligently and in good faith, then the indemnified party may proceed with the defense of such Claim and: 

          (i)  all expenses incurred and relating to the defense of such Claim shall be borne and paid exclusively by the indemnifying
party; 

         (ii)  the indemnifying party shall make available to the indemnified party any documents and materials in the possession or
control of the indemnifying party that may be necessary to the defense of such Claim; 

       (iii)  the indemnified party shall keep the indemnifying party informed of all material developments and events relating to
such Claim; and 

        (iv)  the indemnified party shall have the right to settle, adjust or compromise such Claim with the consent of the
indemnifying party which shall not be unreasonably withheld or delayed. 

        5.7   Exercise of Remedies By Indemnitees Other Than The
Purchaser.    No Indemnitee (other than the Purchaser or any successor thereto or assign thereof) shall be permitted to assert any indemnification claim or exercise
any other remedy under this Agreement unless the Purchaser (or any successor thereto or assign thereof) shall have consented to the assertion of such indemnification claim or the exercise of such
other remedy. 

        5.8   Allocation.    Any payment of indemnification pursuant to
Section 5.2 shall be treated by the parties for tax purposes as an adjustment to the purchase price described in Section 1.4 of this Agreement. 

        5.9   Insurance and Taxes.    Notwithstanding anything herein to the
contrary, any amount paid by any third party (including, without limitation, an insurance carrier) to or on behalf of an indemnified party or otherwise reimbursed to any indemnified party with respect
to a matter as to which indemnification is provided and any tax benefit received by an indemnified party with respect to a matter as to which indemnification is provided shall reduce in each instance
the amount to be paid by an indemnifying party to an indemnified party with respect to such matter. 

        5.10 In Rem Liability.    Notwithstanding anything to the contrary
in this Agreement, and except as set forth in this Section 5.10, the Purchaser irrevocably and unconditionally agrees that (i) the Purchaser shall have no recourse to the Seller and the
Members or to the assets of the Seller and the Members other than the Consideration Note for the payment of indemnification obligations of the Seller and the Members pursuant to this Section 5
and (ii) the Purchaser shall enforce payment of indemnification claims against the Seller and the Members pursuant to this Section 5 solely from the Consideration Note and no deficiency
or other action shall be maintained against the Seller or the Members for payment thereof or personal liability therefor. For purposes of this paragraph and the Purchaser's enforcement of its rights
hereunder by setoff against the Consideration Note, (i) prior to any conversion of the Consideration Note into common stock of the Purchaser, claims for indemnification shall be setoff against
the Outstanding Principal Amount (as defined in the Consideration Note) on a dollar for dollar basis and (ii) after conversion of the Consideration Note into common stock of the Purchaser, each
share of common stock of the Purchaser shall have an amount equal to the fair market value of such share on the date of the payment of the claim for indemnification pursuant to this Section 5.
The foregoing limitation shall not apply to (i) Damages incurred by the Purchaser due to the Seller's, or any Member's, fraud or willful misrepresentation, or 

36

 

(ii) a
Breach by the Seller or either Member of any representation, warranty, covenant or obligation of such Member contained in either of the Non-competition Agreements. 

6.     CERTAIN COVENANTS.  

        6.1   Operation of Business.    The Members and the Seller shall
ensure that, during the Pre-Closing Period: 

        (a)   the Seller conducts its operations exclusively in the Ordinary Course of Business; 

        (b)   the Seller (i) preserves intact its current business organization, (ii) keeps available the services of its
current officers and employees, (iii) maintains its relations and good will with all suppliers, customers, landlords, creditors, licensors, licensees, employees, independent contractors and
other persons having business relationships with the Seller, and (iv) promptly repairs, restores or replaces any Assets that are destroyed or damaged; 

        (c)   the officers or Representatives of the Seller, at the request of Purchaser, confer with the Purchaser concerning
operational matters and otherwise, at the request of Purchaser, report to the Purchaser
concerning the status of the Seller's business, condition, assets, liabilities, operations and financial performance; 

        (d)   the Seller does not (i) declare, accrue, set aside or pay any dividend or make any other distribution in respect
of any membership interest or other securities excluding tax distributions in an amount not in excess of 42% of the taxable income of Seller for the three months ended March 31, 2005, plus
additional distributions necessary, in the good faith determination of the Seller, to reduce the amount of Seller's Working Capital, as of the Closing Date, to a amount equal to approximately
$500,000), or (ii) repurchase, redeem or otherwise reacquire any membership interest or other securities, or (iii) sell or otherwise issue any membership interests; 

        (e)   the Seller does not change any of its methods of accounting or accounting practices in any respect; 

        (f)    the Seller does not agree, commit or offer (in writing or otherwise) to take any of the actions described in clauses
"(a)" through "(e)" of this Section 6.1. 

        6.2   Notification.    During the Pre-Closing Period,
each party shall promptly notify the other parties in writing of: (a) the discovery by such party of any event, condition, fact or circumstance that occurred or existed on or prior to the date
of this Agreement and that caused or constitutes a Breach of any representation or warranty made by such party in this Agreement; (b) any event, condition, fact or circumstance that occurs,
arises or exists after the date of this Agreement and that would cause or constitute a Breach of any representation or warranty made by such party in this Agreement if (i) such representation
or warranty had been made as of the time of the occurrence, existence or discovery of such event, condition, fact or circumstance, or (ii) such event, condition, fact or circumstance had
occurred, arisen or existed on or prior to the date of this Agreement; (c) any Breach of any covenant or obligation of such party; and (d) any event, condition, fact or circumstance that
may make the timely satisfaction of any of the conditions set forth in Section 7 impossible or unlikely. 

        6.3   No Negotiation.    The Members and the Seller shall ensure
that, during the Pre-Closing Period, neither the Seller nor any Representative of the Seller, directly or indirectly: (a) solicits or encourages the initiation of any inquiry,
proposal or offer from any Person (other than the Purchaser) relating to any merger, sale of all or substantially all assets, or sale of all or substantially all outstanding membership interests of
the Seller (an "Acquisition Transaction"); (b) participates in any discussions or negotiations with, or provides any non-public
information to, any person (other than the Purchaser) relating to any proposed Acquisition Transaction; or (c) considers the merits of any unsolicited inquiry, proposal or offer from any Person
(other than the Purchaser) relating to any Acquisition Transaction. 

37

 

        6.4   Best Efforts.    During the Pre-Closing Period,
each party hereto shall use its best efforts to cause the conditions set forth in Section 7 to be satisfied on a timely basis. 

        6.5   Confidentiality.    The Members and the Seller shall ensure
that, during the Pre-Closing Period, without the prior written consent of the Purchaser: (a) neither the Seller nor any Representative of the Seller, issues or disseminates any
press release or other publicity or otherwise makes any disclosure of any nature (to any supplier, customer, landlord, creditor or employee of the Seller or to any other Person) regarding any of
transaction contemplated by this Agreement or the existence or terms of this Agreement, except to the extent that the Seller is required to make any such disclosure in order to comply with
Section 7.2(c) hereof. 

        6.6   Further Actions.    From and after the Closing Date, the
Members and the Seller shall cooperate with the Purchaser and the Purchaser's affiliates and Representatives, and shall execute and deliver such documents and take such other actions as the Purchaser
may reasonably request, for the purpose of evidencing the Transactions and putting the Purchaser in possession and control of all of the Assets. Without limiting the generality of the foregoing, from
and after the Closing Date, the Seller shall promptly remit to the Purchaser any funds that are received by the Seller and that are included in, or that represent payment of receivables included in,
the Assets. The Seller: (a) hereby irrevocably authorizes the Purchaser, at all times on and after the Closing Date, to endorse in the name of the Seller any check or other instrument that is
made payable to the Seller and that represents funds included in, or that represents the payment of any receivable included in, the Assets; and (b) hereby irrevocably nominates, constitutes and
appoints the Purchaser as the true and lawful attorney-in-fact of the Seller (with full power of substitution) effective as of the Closing Date, and hereby authorizes the
Purchaser, in the name of and on behalf of the Seller, to execute, deliver, acknowledge, certify, file and record any document, to institute and prosecute any Proceeding and to take any other action
(on or at any time after the Closing Date) that the Purchaser may deem appropriate for the purpose of collecting, asserting, enforcing or perfecting any claim, right or interest of any kind that is
included in or relates to any of the Assets. The power of attorney referred to in the preceding sentence is and shall be coupled with an interest and shall be irrevocable, and shall survive the
dissolution or insolvency of the Seller. 

        6.7   Publicity.    Without limiting the generality of anything
contained in Section 6.5, the parties hereto shall ensure that, on and at all times after the Closing Date: (a) no press release or other publicity concerning any of the Transactions is
issued or otherwise disseminated by or on behalf of any party without the other parties' written consent; (b) the parties hereto continue to keep the terms of this Agreement and the other
Transactional Agreements strictly confidential; and (c) the Members and the Seller keep strictly confidential, and neither the Seller nor any Member shall use or disclose to any other Person,
any non-public document or other information that relates directly or indirectly to the business of the Seller, the Purchaser or any affiliate of the Purchaser. 

        6.8   Change of Name.    Not later than immediately after the
Closing, the Seller and the YPSolutions.com, Inc. shall each change its name to a name that does not include the words "YP Solutions," "YP Web Partners" or any variation of either such name and
that is reasonably satisfactory to Purchaser. 

        6.9   Payment of Liabilities; Conduct of Business.    Following the
Closing, the Seller shall (i) cease the conduct of its business operations, and (ii) pay and discharge all of its liabilities other than the Assumed Liabilities. 

38

 

7.     CONDITIONS TO CLOSING AND TERMINATION  

        7.1   General.    The obligation of each party to effect the Closing
is subject to the satisfaction, at or prior to the Closing, of each of the following condition: 

        (a)   No temporary restraining order, preliminary or permanent injunction or other order preventing the consummation of the
Closing shall have been issued since the date of this Agreement by any U.S. federal or state court of competent jurisdiction and shall remain in effect; and no U.S. federal or state law, statute,
rule, regulation or decree that makes consummation of the Closing illegal shall have been enacted or adopted since the date of this Agreement and shall remain in effect. 

        7.2   Obligation of the Purchaser.    The obligations of Purchaser to
effect the Closing are subject to the satisfaction, at or prior to the Closing Date, of each of the following conditions: 

        (a)   The representations and warranties of the Seller and the Members set forth in this Agreement (excluding any
representation or warranty that refers specifically to "the date of this Agreement," "the date hereof" or any other date other than the Closing Date) shall be accurate in all material respects as of
the Closing Date as if made on and as of the Closing Date (it being understood that, for purposes of determining the accuracy of such representations and warranties, (i) any update of or
modification to the Seller Disclosure Schedule made or purported to have been made after the date of this Agreement shall be disregarded, (ii) any inaccuracy that results from or relates to the
announcement or pendency of the Closing or any of the other transactions contemplated by this Agreement shall be disregarded, and (iii) any inaccuracy that results from or relates to the taking
of any action contemplated by this Agreement shall be disregarded). 

        (b)   Each of the covenants and obligations that Seller is required to comply with or to perform at or prior to the Closing
shall have been complied with or performed in all material respects. 

39

  

        (c)   All consents, approvals, authorizations, filings and notices identified on Part 2.27 of the Seller Disclosure
Schedule shall have been obtained, made or given and shall be in full force and effect. 

        (d)   The following agreements and documents shall have been delivered to the Purchaser (and, if appropriate, to the Seller),
and shall be in full force and effect: 

          (i)  Non-competition Agreements in the form of  Exhibit D-1 and D-2

         (ii)  a certificate, executed by an executive officer of Seller, confirming that the conditions set forth in paragraphs "(a),"
"(b)," "(c)" and "(e)" of this Section 7.2 have been duly satisfied; and 

       (iii)  all other documents and agreements to be delivered by the Seller as specified in Section 1.5(b) hereof shall
have been delivered as provided herein. 

        (e)   There shall have been no material adverse change in the financial condition or results of operations of the Seller since
the date of this Agreement; provided, however, that for purposes of determining whether there shall have been any such material adverse change, any adverse change resulting from or relating to the
announcement or pendency of the Closing or any of the other transactions contemplated by this Agreement shall be disregarded, and any adverse change resulting from or relating to the taking of any
action contemplated by this Agreement shall be disregarded. 

        (f)    The Seller shall have Closing Date Working Capital of not less than $500,000. 

        (g)   The Purchaser shall have received equity financing, following the date hereof, in the minimum gross amount of
$13,000,000. 

        7.3   Obligations of the Seller and the Members.    The obligation of
Seller and the Members to effect the Closing is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

        (a)   The representations and warranties of Purchaser set forth in this Agreement (excluding any representation or warranty
that refers specifically to "the date of this Agreement," "the date hereof" or any other date other than the Closing Date) shall be accurate in all material respects as of the Closing Date as if made
on and as of the Closing Date (it being understood that, for purposes of determining the accuracy of such representations and warranties, (i) any update of or modification to the Purchaser
Disclosure Schedule made or purported to have been made after the date of this Agreement shall be disregarded, (ii) any inaccuracy that results from or relates to the taking of any action
contemplated by this Agreement shall be disregarded). 

        (b)   Each of the covenants and obligations that Purchaser is required to comply with or to perform at or prior to the Closing
shall have been complied with or performed in all material respects. 

        (c)   The following documents shall have been delivered to Seller of other parties, as applicable, and shall be in full force
and effect: 

          (i)  a certificate, executed on behalf of Purchaser by an executive officer of Purchaser, confirming that the conditions set
forth in paragraphs "(a)," "(b)" and "(d)" of this Section 7.3 have been duly satisfied; 

         (ii)  Employment Agreements in the form attached hereto as Exhibits G-1,
G-2 and G-3 have been delivered to the parties named therein; and 

       (iii)  all other documents and agreements to be delivered by the Purchaser as specified in Section 1.5(b) hereof shall
have been delivered as provided herein. 

40

 

        (d)   The purchase by the Purchaser of at least 95% of the outstanding capital stock of ISX has closed or will close
simultaneously with the Closing. 

        (e)   There shall have been no material adverse change in the financial condition or results of operations of the Purchaser
since the date of this Agreement; provided, however, that for purposes of determining whether there shall have been any such material adverse change, any adverse change resulting from or relating to
the announcement or pendency of the Closing or any of the other transactions contemplated by this Agreement shall be disregarded, and any adverse change resulting from or relating to the taking of any
action contemplated by this Agreement shall be disregarded. 

        7.4   Frustration.    Neither Purchaser nor Seller may rely on the
failure of any condition set forth in this Section 7 to be satisfied if such failure was caused by such party's failure to comply with or perform any of its covenants or obligations set forth
in this Agreement. 

        7.5   Termination.    This Agreement may be terminated prior to the
Closing: 

        (a)   by the Purchaser if (i) there is a material Breach of any covenant or obligation of the Seller or the Members and
such Breach shall not have been cured within three days after the delivery of notice thereof to the Seller, or (ii) the Purchaser reasonably determines that the timely satisfaction of any
condition set forth in Section 7.2, on or as of the Closing Date, has become impossible or impracticable (other than as a result of any failure on the part of the Purchaser to comply with or
perform its covenants and obligations set forth in this Agreement); 

        (b)   by the Seller if (i) there is a material Breach of any covenant or obligation of the Purchaser and such Breach
shall not have been cured within three days after the delivery of notice thereof to the Purchaser, or (ii) the Seller reasonably determines that the timely satisfaction of any condition set
forth in Section 7.3, on or as of the Closing Date, has become impossible or impracticable (other than as a result of any failure on the part of the Seller or any of the Members to comply with
or perform any covenant or obligation set forth in this Agreement); 

        (c)   by the Purchaser on or after April 7, 2005, if the Closing has not occurred as of such date (other than as a
result of any failure on the part of the Purchaser to comply with or perform its covenants and obligations under this Agreement); 

        (d)   by the Seller on or after April 7, 2005 if the Closing has not taken place as of such date (other than as a result
of any failure on the part of any the Seller to comply with or perform any covenant or obligation set forth in this Agreement); or 

        (e)   by the mutual written consent of the Purchaser and the Seller. 

        7.6   Termination Procedures.    If the Purchaser wishes to terminate
this Agreement pursuant to Section 7.5, the Purchaser shall deliver to the Seller a written notice stating that the Purchaser is terminating this Agreement and setting forth a brief description
of the basis on which the Purchaser is terminating this Agreement. If the Seller wishes to terminate this Agreement pursuant to Section 7.5, the Seller shall deliver to the Purchaser a written
notice stating that the Seller is terminating this Agreement and setting forth a brief description of the basis on which the Seller is terminating this Agreement. 

        7.7   Effect of Termination.    If this Agreement is terminated
pursuant to this Section 7, all further obligations of the parties under this Agreement shall terminate; provided, however, that no party shall
be relieved of any obligation or other liability arising from any Breach by such party of any provision of this Agreement. 

41

 

8.     MISCELLANEOUS PROVISIONS.  

        8.1   Further Assurances.    Each party hereto shall execute and/or
cause to be delivered to each other party hereto such instruments and other documents, and shall take such other actions, as such other party may reasonably request (prior to, at or after the Closing)
for the purpose of carrying out or evidencing any of the Transactions. 

        8.2   Fees and Expenses.

        (a)   Except as set forth in Section 5 regarding indemnification obligations of the Purchaser, the Members and the
Seller shall bear and pay all fees, costs and expenses (including all legal fees and expenses payable to Phelps Dunbar LLP and Legier & Materne APCA) in excess of $80,000.00 (the
"Fee Cap") that have been incurred or that are in the future incurred by, on behalf of or for the benefit of the Members or the Seller in connection
with: (i) the negotiation, preparation and review of any letter of intent or similar document relating to any of the Transactions; (ii) the investigation and review conducted by the
Purchaser and its Representatives with respect to the business of the Seller (and the furnishing of information to the Purchaser and its Representatives in connection with such investigation and
review); (iii) the negotiation, preparation and review of this Agreement (including the Seller Disclosure Schedule), the other Transactional Agreements and all bills of sale, assignments,
certificates, opinions and other instruments and documents delivered or to be delivered in connection with the Transactions; (iv) the preparation and submission of any filing or notice required
to be made or given in connection with any of the Transactions, and the obtaining of any Consent required to be obtained in connection with any of the Transactions; and (v) the consummation and
performance of the Transactions. 

        (b)   Except as set forth in Section 5 regarding indemnification obligations of the Seller and the Members, the
Purchaser shall bear and pay all fees, costs and expenses (including all legal fees and expenses
payable to Cooley Godward llp) that have been incurred or that are in the future incurred by or on behalf of the Purchaser in connection with: (i) the negotiation, preparation and review of any
letter of intent or similar document relating to any of the Transactions; (ii) the investigation and review conducted by the Purchaser and its Representatives with respect to the business of
the Seller; (iii) the negotiation, preparation and review of this Agreement, the other Transactional Agreements and all bills of sale, assignments, certificates, opinions and other instruments
and documents delivered or to be delivered in connection with the Transactions; and (iv) the consummation and performance of the Transactions. 

        8.3   Attorneys' Fees.    If any legal action or other legal
proceeding relating to any of the Transactional Agreements or the enforcement of any provision of any of the Transactional Agreements is brought against any party to this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys' fees, costs and disbursements (in addition to any other relief to which the prevailing party may be entitled). 

        8.4   Notices.    Any notice or other communication required or
permitted to be delivered to any party under this Agreement shall be in writing and shall be deemed properly delivered, given and received when (a) delivered by hand, (b) delivered by
facsimile to a facsimile number given below, provided that a copy is sent the same day by a nationally recognized overnight delivery service (receipt requested) or (c) when received by the
addressee, if sent by a nationally recognized overnight delivery 

42

 

service
(receipt requested), in each case as follows (or to such other address or facsimile telephone number as such party shall have specified in a written notice given to the other parties hereto): 

	 	 	(i)	 	if to the Members:
	 	 	 	 	 
	 	 	 	 	YPSolutions.com, Inc.

1240 East 100 South #5

St. George, UT 84790

Attention: Shane Brinkerhoff

Fax: (435) 652-3066
	 	 	 	 	 
	 	 	 	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	Phelps Dunbar LLP

365 Canal Street, Suite 2000

New Orleans, Louisiana 70130

Attention: Mark A. Fullmer, Esq.

Fax: (504) 568-9130
	 	 	 	 	 
	 	 	 	 	The Hammack-Jones Group, LLC

3445 North Causeway Blvd., Suite 401

Metairie, Louisiana 70002

Attention: Donald Jones

Fax: (504) 297-2170
	 	 	 	 	 
	 	 	 	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	Phelps Dunbar LLP

365 Canal Street, Suite 2000

New Orleans, Louisiana 70130

Attention: Mark A. Fullmer, Esq.

Fax: (504) 568-9130
	 	 	 	 	 
	 	 	(ii)	 	if to the Purchaser:
	 	 	 	 	 
	 	 	 	 	Aptas, Inc.

1517 Blake Street

2nd Floor

Denver, CO 80202

Fax: (303) 572-1123
	 	 	 	 	 
	 	 	 	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	Cooley Godward LLP

380 Interlocken Crescent

Suite 900

Broomfield, CO 80021

Attention: Brent D. Fassett, Esq.

Fax: (720) 566-4099
	 	 	 	 	 

43

 

	 	 	(iii)	 	if to the Company:
	 	 	 	 	 
	 	 	 	 	YP Web Partners, LLC

d/b/a YPsolutions.com

3445 North Causeway Blvd.

Suite 401

Metairie, LA 70002

Fax: (504) 297-2168
	 	 	 	 	 
	 	 	 	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	Phelps Dunbar LLP

365 Canal Street, Suite 2000

New Orleans, Louisiana 70130

Attention: Mark A. Fullmer, Esq.

Fax: (504) 568-9130

        8.5   Time of The Essence.    Time is of the essence of this
Agreement. 

        8.6   Headings.    The underlined headings contained in this
Agreement are for convenience of reference only, shall not be deemed to be a part of this Agreement and shall not be referred to in connection with the construction or interpretation of this
Agreement. 

        8.7   Counterparts.    This Agreement may be executed in several
counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one agreement. 

        8.8   Governing Law.

        (a)   This Agreement shall be construed in accordance with, and governed in all respects by, the internal laws of the State of
Colorado (without giving effect to principles of conflicts of laws). 

        (b)   Any legal action or other legal proceeding relating to this Agreement or the enforcement of any provision of this
Agreement may be brought or otherwise commenced in any state or federal court located in the County of Denver, Colorado. Each party to this Agreement: 

          (i)  expressly and irrevocably consent and submit to the jurisdiction of the federal court located in the County of Denver,
Colorado; provided, however, that in the event that the federal court does not have, or declines to exercise, jurisdiction over such matter, then each
party to this Agreement expressly and irrevocably consents and submits to the jurisdiction of each state and federal court located in the County of Denver, Colorado (and each appellate court located
in the State of Colorado), in connection with any such legal proceeding; 

         (ii)  agrees that each state and federal court located in the County of Denver, Colorado shall be deemed to be a convenient
forum; and 

       (iii)  agrees not to assert (by way of motion, as a defense or otherwise), in any such legal proceeding commenced in any state
or federal court located in the County of Denver, Colorado, any claim that such party is not subject personally to the jurisdiction of such court, that such legal proceeding has been brought in an
inconvenient forum, that the venue of such proceeding is improper or that this Agreement or the subject matter of this Agreement may not be enforced in or by such court. 

        8.9   Successors And Assigns; Parties In Interest.

        (a)   This Agreement shall be binding upon: the Seller and its successors and assigns (if any); each Member and such Member's
personal representatives, executors, administrators, estate, heirs, 

44

 

successors
and assigns (if any); and the Purchaser and its successors and assigns (if any). This Agreement shall inure to the benefit of: the Seller; the Members; the Purchaser; the other Indemnitees;
the Representatives of the Seller and the Members; and the respective successors and assigns (if any) of the foregoing. 

        (b)   No party to this Agreement shall be permitted to assign any of his or its rights or delegate any of his or its
obligations under this Agreement without the prior written consent of the other parties hereto which shall not be unreasonably withheld or delayed. 

        (c)   Except for the provisions of Section 5 hereof, none of the provisions of this Agreement is intended to provide any
rights or remedies to any Person other than the parties to this Agreement and their respective successors and assigns (if any). Without limiting the generality of the foregoing, (i) no employee
of the Seller shall have any rights under this Agreement or under any of the other Transactional Agreements, and (ii) no creditor of the Seller shall have any rights under this Agreement or any
of the other Transactional Agreements. 

        8.10 Specific Performance.    The parties agree that: (a) in
the event of any Breach or threatened Breach by any party of any covenant, obligation or other provision set forth in this Agreement, the other parties shall be entitled (in addition to any other
remedy that may be available to it) to seek (i) a decree or order of specific performance or mandamus to enforce the observance and performance of such covenant, obligation or other provision,
and (ii) an injunction restraining such Breach or threatened Breach; and (b) no party shall be required to provide any bond or other security in connection with any such decree, order or
injunction or in connection with any related action or Proceeding. 

        8.11 Waiver.

        (a)   No failure on the part of any Person to exercise any power, right, privilege or remedy under this Agreement, and no delay
on the part of any Person in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial
exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. 

        (b)   No Person shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or
remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly executed and delivered on behalf of such Person; and
any such waiver shall not be applicable or have any effect except in the specific instance in which it is given. 

        8.12 Amendments.    This Agreement may not be amended, modified,
altered or supplemented other than by means of a written instrument duly executed and delivered on behalf of the Purchaser, the Seller and the Members. 

        8.13 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. If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is invalid or
unenforceable, the parties hereto agree that the court making such determination shall have the power to limit the term or provision, to delete specific words or phrases, or to replace any invalid or
unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this
Agreement shall be enforceable as so modified. In the event such court does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid or
unenforceable term or provision with a valid and enforceable term or provision that will 

45

 

achieve,
to the extent possible, the economic, business and other purposes of such invalid or unenforceable term. 

        8.14 Entire Agreement.    The Transactional Agreements set forth
the entire understanding of the parties relating to the subject matter thereof and supersede all prior agreements and understandings among or between any of the parties relating to the subject matter
thereof. 

        8.15 Construction.

        (a)   For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice
versa; the masculine gender shall include the feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender shall include the masculine and
feminine genders. 

        (b)   The parties hereto agree that any rule of construction to the effect that ambiguities are to be resolved against the
drafting party shall not be applied in the construction or interpretation of this Agreement. 

        (c)   As used in this Agreement, the words "include" and "including," and variations thereof, shall not be deemed to be terms
of limitation, but rather shall be deemed to be followed by the words "without limitation." 

        (d)   Except as otherwise indicated, all references in this Agreement to "Sections" and "Exhibits" are intended to refer to
Sections of this Agreement and Exhibits to this Agreement. 

        8.16 Seller Disclosure Schedule and Purchaser Disclosure
Schedule.    The disclosures in the Disclosure Schedule and the Purchaser Disclosure Schedule shall expressly refer to a Section of this Agreement; provided, however,
that disclosures in the Disclosure Schedule (or the Purchaser Disclosure Schedule) expressly referring to a Section of this Agreement may incorporate by reference the disclosures in the Disclosure
Schedule (or the Purchaser Disclosure Schedule) with respect to any other Section of this Agreement; and provided further, that any fact or circumstance disclosed with respect to a particular Section
shall likewise be deemed to be a disclosure with respect to another Section if the fact or circumstances disclosed may reasonably be deemed pertinent to such other Section and such pertinence is
apparent from the text of the disclosure. 

46

 

        The
parties to this Agreement have caused this Agreement to be executed and delivered as of March 31, 2005. 

	 	 	YP WEB PARTNERS, LLC,

a Louisiana limited liability company
	 	 	 	 
	 	 	By:	/s/  DONALD F. JONES      

	 	 	 	 
	 	 	Title:	President

	 	 	 	 
	 	 	 	 
	 	 	APTAS, INC.,

a Delaware corporation
	 	 	By:	/s/  CURTIS FLETCHER      

	 	 	 	 
	 	 	Title:	VP Finance

	 	 	 	 
	 	 	 	 
	 	 	YPSOLUTIONS.COM, INC.,

a Nevada corporation
	 	 	 	 
	 	 	By:	/s/  SHANE BRINKERHOFF      

	 	 	 	 
	 	 	Title:	President

	 	 	 	 
	 	 	 	 
	 	 	THE HAMMACK-JONES GROUP, LLC,

a Louisiana limited liability company
	 	 	 	 
	 	 	By:	/s/  DONALD F. JONES      

	 	 	 	 
	 	 	Title:	President

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	[SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT]

47

   Exhibit A  

CERTAIN DEFINITIONS  

        For purposes of the Agreement (including this Exhibit A): 

        Acquisition Transaction.    "Acquisition Transaction" shall mean any transaction involving: (a) the sale or other
disposition of all or any portion of the business or assets of the Seller (other than in the Ordinary Course of Business); (b) the issuance, sale or other disposition of (i) any capital
stock or other securities of the Seller, (ii) any option, call, warrant or right (whether or not immediately exercisable) to acquire any capital stock or other securities of the Seller, or
(iii) any security, instrument or obligation that is or may become convertible into or exchangeable for any capital stock or other securities of the Seller; or (c) any merger,
consolidation, business combination, share exchange, reorganization or similar transaction involving the Seller. 

        Agreement.    "Agreement" shall mean the Asset Purchase Agreement to which this Exhibit A is attached (including the
Disclosure Schedule and the Purchaser Disclosure Schedule), as it may be amended from time to time. 

        Aggregate Overall Cap.    "Aggregate Overall Cap" shall mean the "Outstanding Principal Amount" of the Consideration Note (as
defined therein). 

        Breach.    There shall be deemed to be a "Breach" of a representation, warranty, covenant, obligation or other provision if
there is or has been (a) any inaccuracy in or breach (including any inadvertent or innocent breach) of, or any failure (including any inadvertent failure) to comply with or perform, such
representation, warranty, covenant, obligation or other provision, or (b) any claim (by any Person) or other circumstance that is inconsistent with such representation, warranty, covenant,
obligation or other provision; and the term "Breach" shall be deemed to refer to any such inaccuracy, breach, failure, claim or circumstance. 

        CERCLA.    "CERCLA" shall mean the Comprehensive Environmental Response, Compensation and Liability Act. 

        Closing Date Working Capital.    "Closing Date Working Capital" means the excess of the Seller's current assets over the
aggregate of the total liabilities that are included in the Assumed Liabilities, excluding deferred revenue, each determined in accordance with GAAP and consistent with the Seller's past practices,
calculated as of the Closing Date; provided, however,that the Seller's current assets that are not part of the Assets shall be excluded from such
calculation. 

        COBRA.    "COBRA" shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended. 

        Code.    "Code" shall mean the Internal Revenue Code of 1986, as amended. 

        Consent.    "Consent" shall mean any approval, consent, ratification, permission, waiver or authorization of any Person
(including any Governmental Authorization). 

        Contract.    "Contract" shall mean any written, oral, implied or other agreement, contract, understanding, arrangement,
instrument, note, guaranty, indemnity, representation, warranty, deed, assignment, power of attorney, certificate, purchase order, work order, insurance policy, benefit plan, commitment, covenant,
assurance or undertaking of any nature. 

        Damages.    "Damages" shall include any loss, damage, injury, Liability, claim, demand, settlement, judgment, award, fine,
penalty, Tax, fee (including any reasonable legal fee, reasonable expert fee, reasonable accounting fee or reasonable advisory fee), charge, cost (including any cost of investigation) 

A-1

 

or
expense of any nature. Notwithstanding the foregoing, the amount of any Damages incurred by any party shall be reduced, for purposes of calculating
the amount of any indemnity payments owed to that party, by the amount of any insurance payments received with respect to such Damages, and by the amount of any Tax benefit relating to such Damages.
"Damages" shall, in no case, include punitive damages. 

        DOL.    "DOL" shall mean the United States Department of Labor. 

        Encumbrance.    "Encumbrance" shall mean any lien, pledge, hypothecation, charge, mortgage, security interest, encumbrance,
equity, trust, equitable interest, claim, preference, right of possession, lease, tenancy, license, encroachment, covenant, infringement, interference, Order, proxy, option, right of first refusal,
preemptive right, community property interest, legend, defect, impediment, exception, reservation, limitation, impairment, imperfection of title, condition or restriction of any nature (including any
restriction on the transfer of any asset, any restriction on the receipt of any income derived from any asset, any restriction on the use of any asset and any restriction on the possession, exercise
or transfer of any other attribute of ownership of any asset), except (a) mortgages or security interests securing particular liabilities or obligations reflected in the Financial Statements,
(b) liens for current taxes not yet due and liens arising by operation of law with respect to obligations that are not delinquent or are being contested in good faith and described in the
disclosure Schedule, and (c) with respect to real property, (i) minor imperfections of title, if any, none of which is substantial in amount, detracts from the value or impairs the use
of the property subject thereto or impairs the operations of the Seller, and (ii) zoning laws and other land use restrictions that do not impair the present or the Seller's present anticipated
use of the property subject thereto. 

        Entity.    "Entity" shall mean any corporation (including any non-profit corporation), general partnership, limited
partnership, limited liability partnership, joint venture, estate, trust, cooperative, foundation, society, political party, union, company (including any limited liability company or joint stock
company), firm or other enterprise, association, organization or entity. 

        ERISA.    "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended. 

        FMLA.    "FMLA" shall mean the Family Medical Leave Act of 1993, as amended. 

        Foreign Plan.    "Foreign Plan" shall mean: (i) any plan, program, policy, practice, Contract or other arrangement
mandated by a Governmental Body other than the United States; (ii) any Seller Employee Plan maintained or contributed to by the Seller or any Seller Affiliate that is not subject to United
States law; and (iii) any Seller Employee Plan that covers or has covered Seller Employees whose services are performed primarily outside of the United States. 

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

        Governmental Authorization.    "Governmental Authorization" shall mean any: (a) permit, license, certificate, franchise,
concession, approval, consent, ratification, permission, clearance, confirmation, endorsement, waiver, certification, designation, rating, registration, qualification or authorization issued, granted,
given or otherwise made available by or under the authority of any Governmental Body or pursuant to any Legal Requirement; or (b) right under any Contract with any Governmental Body. 

        Governmental Body.    "Governmental Body" shall mean any: (a) nation, principality, state, commonwealth, province,
territory, county, municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental
authority of any nature (including any governmental division, subdivision, department, agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, 

A-2

 

representative,
organization, unit, body or Entity and any court or other tribunal); (d) multi-national organization or body; or (e) individual, Entity or body exercising, or entitled to
exercise, any executive, legislative, judicial, administrative, regulatory, police, military or taxing authority or power of any nature. 

        Hazardous Material.    "Hazardous Material" shall include: (a) any petroleum, waste oil, crude oil, asbestos, urea
formaldehyde or polychlorinated biphenyl; (b) any waste, gas or other substance or material that is explosive or radioactive; (c) any "hazardous substance," "pollutant," "contaminant,"
"hazardous waste," "regulated substance," "hazardous chemical" or "toxic chemical" as designated, listed or defined (whether expressly or by reference) in any statute, regulation or other Legal
Requirement (including CERCLA and any other so-called "superfund" or "superlien" law and the respective regulations promulgated thereunder); (d) any other substance or material
(regardless of physical form) or form of energy that is subject to any Legal Requirement which regulates or establishes standards of conduct in connection with, or which otherwise relates to, the
protection of human health, plant life, animal life, natural resources, property or the enjoyment of life or property from the presence in the environment of any solid, liquid, gas, odor, noise or
form of energy; and (e) any compound, mixture, solution, product or other substance or material that contains any substance or material referred to in clause "(a)," "(b)," "(c)" or "(d)" above. 

        HIPAA.    "HIPAA" shall mean the Health Insurance Portability and Accountability Act of 1996, as amended. 

        Immaterial Contract.    "Immaterial Contract" shall mean any Seller Contract that: (a) was entered into by the Seller in
the Ordinary Course of Business; (b) has a term of less than 90 days or may be terminated by the Seller (without penalty) within 60 days after the delivery of a termination notice
by the Seller to the other party thereto; and (d) does not contemplate or involve the payment of cash or other consideration in an amount or having a value in excess of $50,000. 

        Indemnitees.    "Indemnitees" shall mean the following Persons: (a) the Purchaser; (b) the Purchaser's current and
future affiliates; (c) the respective Representatives of the Persons referred to in clauses "(a)" and "(b)" above; and (d) the respective permitted successors and assigns of the Persons
referred to in clauses "(a)," "(b)" and "(c)" above. 

        Intellectual Property.    "Intellectual Property" shall mean algorithms, APIs, apparatus, IP cores, net lists, databases, data
collections, diagrams, formulae, inventions (whether or not patentable),
know-how, logos, marks (including brand names, product names, logos, and slogans), methods, network configurations and architectures, processes, proprietary information, protocols,
schematics, specifications, software, software code (in any form, including source code and executable or object code), subroutines, techniques, user interfaces, URLs, web sites, works of authorship
and other forms of technology (whether or not embodied in any tangible form and including all tangible embodiments of the foregoing, such as instruction manuals, laboratory notebooks, prototypes,
samples, studies and summaries). Web Boss? 

        Intellectual Property Rights.    "Intellectual Property Rights" shall mean all past, present, and future rights of the following
types, which may exist or be created under the laws of any jurisdiction in the world: (A) rights associated with works of authorship, including exclusive exploitation rights, copyrights, moral
rights and mask works; (B) trademark and trade name rights and similar rights; (C) trade secret rights; (D) patent and industrial property rights; (E) other proprietary
rights in Intellectual Property; and (F) rights in or relating to registrations, renewals, extensions, combinations, divisions, and reissues of, and applications for, any of the rights referred
to in clauses "(A)" through "(E)" above. 

        IRS.    "IRS" shall mean the United States Internal Revenue Service. 

A-3

 

        Knowledge.    References to "knowledge" and phrases such as "to the knowledge of," "to their knowledge" or the like, when
referring to the Seller or the Members, shall mean the knowledge of Donald Jones, Shane Brinkerhoff, Julius Meaux, and Will Scott. 

        Legal Requirement.    "Legal Requirement" shall mean any federal, state, local, municipal, foreign or other law, statute,
legislation, constitution, principle of common law, resolution, ordinance, code, edict, decree, proclamation, treaty, convention, rule, regulation, ruling, directive, pronouncement, requirement,
specification, determination, decision, opinion or interpretation issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by or under the authority of
any Governmental Body. 

        Liability.    "Liability" shall mean any debt, obligation, duty or liability of any nature (including any unknown, undisclosed,
unmatured, unaccrued, unasserted, contingent, indirect, conditional, implied, vicarious, derivative, joint, several or secondary liability), regardless of whether such debt, obligation, duty or
liability would be required to be disclosed on a balance sheet prepared in accordance with GAAP and regardless of whether such debt, obligation, duty or liability is immediately due and payable. 

        Order.    "Order" shall mean any: (a) order, judgment, injunction, edict, decree, ruling, pronouncement, determination,
decision, opinion, verdict, sentence, subpoena, writ or award issued, made, entered, rendered or otherwise put into effect by or under the authority of any court, administrative agency or other
Governmental Body or any arbitrator or arbitration panel; or (b) Contract with any Governmental Body entered into in connection with any Proceeding. 

        Ordinary Course of Business.    An action taken by or on behalf of a Person shall not be deemed to have been taken in the
"Ordinary Course of Business" unless such action is recurring in nature, is consistent with the past practices of such Person and is taken in the ordinary course of the normal
day-to-day operations of such Person. 

        Pre-Closing Period.    The "Pre-Closing Period" shall mean the period beginning on the date hereof and
ending on the earlier of the Closing or the date on which this Agreement is terminated in accordance with Section 7.5 hereof. 

        Purchaser Disclosure Schedule.    "Purchaser Disclosure Schedule" shall mean the schedule (dated as of the date of the
Agreement) delivered to Seller and the Members by the Purchaser, a copy of which is attached to this Agreement. 

        Purchaser IP.    "Purchaser IP" shall mean all Intellectual Property Rights and Intellectual Property in which the Purchaser has
(or purports to have) an ownership interest or an exclusive license or similar exclusive right. 

        Purchaser IP Contract.    "Purchaser IP Contract" shall mean any Contract to which the Purchaser is or was a party or by which
the Purchaser is or was bound, that contains any assignment or license of, or any covenant not to assert or enforce, any Intellectual Property Right or that otherwise relates to any Purchaser IP or
any Intellectual Property developed by, with or for the Purchaser. 

        PBGC.    "PBGC" shall mean the United States Pension Benefit Guaranty Corporation. 

        Person.    "Person" shall mean any individual, Entity or Governmental Body. 

        Proceeding.    "Proceeding" shall mean any action, suit, litigation, arbitration, proceeding (including any civil, criminal,
administrative, investigative or appellate proceeding and any informal proceeding), prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation commenced, brought, conducted
or heard by or before, or otherwise involving, any Governmental Body or any arbitrator or arbitration panel. 

A-4

 

        Purchaser Software.    "Purchaser Software" shall mean any software (including firmware and other software embedded in hardware
devices) owned, developed (or currently being developed), used, marketed, distributed, licensed or sold by the Purchaser at any time (other than non-customized third-party software
licensed to the Purchaser for internal use on a non-exclusive basis). 

        Registered IP.    "Registered IP" shall mean all Intellectual Property Rights that are registered, filed, or issued under the
authority of, with or by any Governmental Body, including all patents, registered copyrights, registered mask works and registered trademarks and all applications for any of the foregoing. 

        Related Party.    Each of the following shall be deemed to be a "Related Party": (a) each individual who is, or who has
at any time been, an officer of the Seller; (b) each member of the family of each of the individuals referred to in clause "(a)" above; and (c) any Entity (other than the Seller) in
which any one of the individuals referred to in clauses "(a)" and "(b)" above holds or held (or in which more than one of such individuals collectively hold or held), beneficially or otherwise, a
controlling interest or a material voting, proprietary or equity interest. 

        Representatives.    "Representatives" shall mean officers, directors, employees, agents, attorneys, accountants, advisors and
representatives. 

        Seller Affiliate.    "Seller Affiliate" shall mean any Person, directly or indirectly, controlling, controlled by or under
common control with the Seller. 

        Seller Contract.    "Seller Contract" shall mean any Contract: (a) to which the Seller is a party; (b) by which
the Seller or any of its assets is or may become bound or under which the Seller has, or may become subject to, any obligation; or (c) under which the Seller has or may acquire any right or
interest. 

        Seller Disclosure Schedule.    "Seller Disclosure Schedule" shall mean the schedule (dated as of the date of the Agreement)
delivered to the Purchaser by the Members and the Seller, a copy of which is attached to the Agreement. 

        Seller Employee.    "Seller Employee" shall mean any current or former employee, independent contractor or director of the
Seller or any Seller Affiliate. 

        Seller Employee Agreement.    "Seller Employee Agreement" shall mean each management, employment, severance, consulting,
relocation, repatriation or expatriation agreement or other Contract between the Seller or any Seller Affiliate and any Seller Employee, other than any such management, employment, severance,
consulting, relocation, repatriation or expatriation agreement or other Contract with a Seller Employee which is terminable "at will" without any obligation on the part of the Seller or any Seller
Affiliate to make any payments or provide any benefits in connection with such termination. 

        Seller Employee Plan.    "Seller Employee Plan" shall mean any plan, program, policy, practice, Contract or other arrangement
providing for compensation, severance, termination pay, deferred compensation, performance awards, stock or stock-related awards, fringe benefits or other employee benefits or remuneration of any
kind, whether written, unwritten or otherwise, funded or unfunded, including each "employee benefit plan," within the meaning of Section 3(3) of ERISA (whether or not ERISA is applicable to
such plan), that is or has been maintained, contributed to, or required to be contributed to, by the Seller or any Seller Affiliate for the benefit of any Seller Employee, or with respect to which the
Seller or any Seller Affiliate has or may have any liability or obligation, except such definition shall not include any Seller Employee Agreement. 

A-5

 

        Seller IP.    "Seller IP" shall mean all Intellectual Property Rights and Intellectual Property in which the Seller has (or
purports to have) an ownership interest or an exclusive license or similar exclusive right. 

        Seller IP Contract.    "Seller IP Contract" shall mean any Contract to which the Seller is or was a party or by which the Seller
is or was bound, that contains any assignment or license of, or any covenant not to assert or enforce, any Intellectual Property Right or that otherwise relates to any Seller IP or any Intellectual
Property developed by, with or for the Seller. 

        Seller Pension Plan.    "Seller Pension Plan" shall mean each Seller Employee Plan that is an "employee pension benefit plan,"
within the meaning of Section 3(2) of ERISA. 

        Seller Software.    "Seller Software" shall mean any software (including firmware and other software embedded in hardware
devices) owned, developed (or currently being developed), used, marketed, distributed, licensed or sold by the Seller at any time (other than non-customized third-party software licensed
to the Seller for internal use on a non-exclusive basis). 

        Tax.    "Tax" shall mean any tax (including any income tax, franchise tax, capital gains tax, estimated tax, gross receipts tax,
value-added tax, surtax, excise tax, ad valorem tax, transfer tax, stamp tax, sales tax, use tax, property tax, business tax, occupation tax, inventory tax, occupancy tax, withholding tax or payroll
tax), levy, assessment, tariff, impost, imposition, toll, duty (including any customs duty), deficiency or fee, and any related charge or amount (including any fine, penalty or interest), that is, has
been or may in the future be (a) imposed, assessed or collected by or under the authority of any Governmental Body, or (b) payable pursuant to any tax-sharing agreement or
similar Contract. 

        Tax Return.    "Tax Return" shall mean any return (including any information return), report, statement, declaration, estimate,
schedule, notice, notification, form, election, certificate or other document or information that is, has been or may in the future be filed with or submitted to, or required to be filed with or
submitted to, any Governmental Body in connection with the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or enforcement of or
compliance with any Legal Requirement relating to any Tax. 

        Transactional Agreements.    "Transactional Agreements" shall mean: (a) the Agreement; (b) the Escrow Agreement;
(c) the Assignment Agreement; (d) the Non-competition Agreements referred to in Section 1.5(b)(vi) of the Agreement; and (e) the Consideration Notes. 

        Transactions.    "Transactions" shall mean (a) the execution and delivery of the respective Transactional Agreements, and
(b) all of the transactions contemplated by the respective Transactional Agreements, including: (i) the sale of the Assets by the Seller to the Purchaser in accordance with the
Agreement; (ii) the assumption of the Assumed Liabilities by the Purchaser pursuant to the Assignment Agreement; and (iii) the performance by the Seller, the Members and the Purchaser,
as applicable, of their respective obligations under the Transactional Agreements, and the exercise by the Seller, the Members and the Purchaser, as applicable, of their respective rights under the
Transactional Agreements. 

A-6

Exhibit B  

FORM OF CONSIDERATION NOTE  

Provided Separately Herein

Exhibit C  

ASSIGNMENT AND ASSUMPTION AGREEMENT  

Provided Separately Herein

Exhibit D-1  

NON-COMPETITION AGREEMENT (SELLER AND HAMMACK-JONES GROUP)  

Provided Separately Herein

Exhibit D-2  

NON-COMPETITION AGREEMENT (YPSOLUTIONS.COM, INC.)  

Provided Separately Herein

Exhibit E  

SECURITY AGREEMENT  

Provided Separately Herein

Exhibit F  

PROFESSIONAL SERVICES AGREEMENT  

Provided Separately Herein

Exhibit G-1  

DON JONES OFFER LETTER  

Provided Separately Herein

Exhibit G-2  

WILL SCOTT OFFER LETTER  

Provided Separately Herein

Exhibit G-3  

JULIUS MEAUX OFFER LETTER  

Provided Separately Herein

Exhibit H  

DOMAIN NAME ASSIGNMENT AGREEMENT  

Provided Separately Herein

Exhibit I  

MAG AMENDMENT  

Provided Separately Herein

QuickLinks

Exhibit 10.13

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