Document:

Exhibit 10.2

 

CONFORMED EXECUTED VERSION

 

Agreement and Plan of Merger
and Reorganization

 

 

by and
among

 

 

THINK PARTNERSHIP INC., f/k/a CGI HOLDING
CORPORATION

 

iLEAD ACQUISITION SUB, INC.,

 

THK, LLC,

 

iLEAD MEDIA, INC.,

 

BRADY WHITTINGHAM,

 

DAVID NELSON

 

and

 

ROBERT SEOLAS

 

 

Dated as of
April 27, 2006

 

 

	
  Article I  
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  Article II  
  THE MERGER

  	
  12

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  The Merger

  	
  12

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Effective Time

  	
  12

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Effect of the
  Merger

  	
  12

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Articles of
  Incorporation and Bylaws

  	
  12

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Directors and
  Officers

  	
  12

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Effect on
  iLead’s Capital Structure

  	
  13

  
	
   

  	
   

  	
   

  
	
  2.7

  	
  Options and
  Warrants

  	
  13

  
	
   

  	
   

  	
   

  
	
  2.8

  	
  Taking of
  Necessary Action; Further Action

  	
  13

  
	
   

  	
   

  	
   

  
	
  2.9

  	
  Tax-Deferred
  Reorganization

  	
  14

  
	
   

  	
   

  	
   

  
	
  Article III  
  Restrictions on Transfer Registration

  	
  14

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Restrictions on
  Transfer

  	
  14

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Registration

  	
  14

  
	
   

  	
   

  	
   

  
	
  Article IV  
  Representations and Warranties of the Shareholders and iLead

  	
  14

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Organization and
  Qualification

  	
  14

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Subsidiaries

  	
  15

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Articles of
  Incorporation, Bylaws and Corporate Records

  	
  15

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  Authorization;
  Enforceability

  	
  15

  
	
   

  	
   

  	
   

  
	
  4.5

  	
  No Violation or
  Conflict

  	
  15

  
	
   

  	
   

  	
   

  
	
  4.6

  	
  Governmental
  Consents and Approvals

  	
  16

  
	
   

  	
   

  	
   

  
	
  4.7

  	
  Capital
  Structure

  	
  16

  
	
   

  	
   

  	
   

  
	
  4.8

  	
  Financial
  Statements

  	
  16

  
	
   

  	
   

  	
   

  
	
  4.9

  	
  Conduct in the
  Ordinary Course; Absence of Changes

  	
  17

  
	
   

  	
   

  	
   

  
	
  4.10

  	
  Property

  	
  17

  
	
   

  	
   

  	
   

  
	
  4.11

  	
  Personal
  Property

  	
  18

  
	
   

  	
   

  	
   

  
	
  4.12

  	
  Approval of
  Directors and Shareholders

  	
  19

  
	
   

  	
   

  	
   

  
	
  4.13

  	
  Insurance

  	
  19

  
	
   

  	
   

  	
   

  
	
  4.14

  	
  Permits

  	
  19

  
	
   

  	
   

  	
   

  
	
  4.15

  	
  Taxes

  	
  19

  
	
   

  	
   

  	
   

  
	
  4.16

  	
  Labor Matters

  	
  21

  
	
   

  	
   

  	
   

  
	
  4.17

  	
  Employees and
  Related Agreements; ERISA

  	
  22

  
	
   

  	
   

  	
   

  
	
  4.18

  	
  Environmental
  and Health/Safety Matters

  	
  24

  

 

 

	
  4.19

  	
  Certain
  Interests

  	
  26

  
	
   

  	
   

  	
   

  
	
  4.20

  	
  Litigation

  	
  26

  
	
   

  	
   

  	
   

  
	
  4.21

  	
  Intellectual
  Property and Web Sites

  	
  27

  
	
   

  	
   

  	
   

  
	
  4.22

  	
  Inventories

  	
  27

  
	
   

  	
   

  	
   

  
	
  4.23

  	
  Receivables

  	
  27

  
	
   

  	
   

  	
   

  
	
  4.24

  	
  Residency;
  Investment Sophistication; Background

  	
  27

  
	
   

  	
   

  	
   

  
	
  4.25

  	
  Brokers

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.26

  	
  Banks and
  Brokerage Accounts

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.27

  	
  Indebtedness and
  Liabilities

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.28

  	
  Contracts

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.29

  	
  Spyware/Adware

  	
  29

  
	
   

  	
   

  	
   

  
	
  4.30

  	
  Material
  Information

  	
  30

  
	
   

  	
   

  	
   

  
	
  Article V  
  Representations and Warranties of THK, iLead Acquisition Sub and THK LLC

  	
  30

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Organization and
  Qualification

  	
  30

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Capital
  Structure

  	
  30

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Authorization;
  Enforceability

  	
  31

  
	
   

  	
   

  	
   

  
	
  5.4

  	
  No Violation or
  Conflict

  	
  31

  
	
   

  	
   

  	
   

  
	
  5.5

  	
  Governmental
  Consents and Approvals

  	
  32

  
	
   

  	
   

  	
   

  
	
  5.6

  	
  Litigation

  	
  32

  
	
   

  	
   

  	
   

  
	
  5.7

  	
  Interim
  Operations

  	
  32

  
	
   

  	
   

  	
   

  
	
  5.8

  	
  Brokers

  	
  32

  
	
   

  	
   

  	
   

  
	
  5.9

  	
  SEC Filings;
  Financial Statements; S-3 Status

  	
  32

  
	
   

  	
   

  	
   

  
	
  5.10

  	
  Investigation
  and Evaluation

  	
  33

  
	
   

  	
   

  	
   

  
	
  5.11

  	
  Forecasts,
  Projects, Etc

  	
  33

  
	
   

  	
   

  	
   

  
	
  5.12

  	
  Material
  Information

  	
  33

  
	
   

  	
   

  	
   

  
	
  Article VI  
  COVENANTS

  	
  33

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Performance

  	
  33

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Regulatory and
  Other Authorizations; Notices and Consents

  	
  34

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Notification

  	
  34

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Conduct of
  Business Pending Closing

  	
  34

  
	
   

  	
   

  	
   

  
	
  6.5

  	
  Tax-Deferred
  Reorganization

  	
  35

  
	
   

  	
   

  	
   

  
	
  6.6

  	
  Post Closing
  Bonus Pool

  	
  35

  

 

 

	
  6.7

  	
  Final Merger

  	
  35

  
	
   

  	
   

  	
   

  
	
  Article VII  
  EMPLOYMENT MATTERS

  	
  36

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Current
  Employees

  	
  36

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Management of
  Surviving LLC

  	
  36

  
	
   

  	
   

  	
   

  
	
  Article VIII  
  POST-CLOSING PAYMENTS TO SHAREHOLDERS

  	
  38

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Earnout

  	
  38

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Right to Pay
  Additional Portion of Earnout Payment in Cash

  	
  39

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Calculation of
  Pre-Tax Earnings Amount

  	
  39

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Additional Cash
  Payment

  	
  39

  
	
   

  	
   

  	
   

  
	
  Article IX  
  CONDITIONS PRECEDENT TO CLOSING

  	
  40

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Conditions
  Precedent to the Obligations of the Parties

  	
  40

  
	
   

  	
   

  	
   

  
	
  Article X  
  INDEMNIFICATION

  	
  44

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Survival of
  Representations, Warranties and Covenants

  	
  44

  
	
   

  	
   

  	
   

  
	
  10.2

  	
  Indemnification

  	
  44

  
	
   

  	
   

  	
   

  
	
  10.3

  	
  Third Party
  Claim

  	
  45

  
	
   

  	
   

  	
   

  
	
  10.4

  	
  Set-Off

  	
  46

  
	
   

  	
   

  	
   

  
	
  10.5

  	
  Sole and
  Exclusive Remedy

  	
  46

  
	
   

  	
   

  	
   

  
	
  10.6

  	
  No Liability for
  Tax Treatment

  	
  46

  
	
   

  	
   

  	
   

  
	
  Article XI  
  TERMINATION

  	
  46

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Termination

  	
  46

  
	
   

  	
   

  	
   

  
	
  Article XII  
  TAX MATTERS

  	
  47

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Tax Returns

  	
  47

  
	
   

  	
   

  	
   

  
	
  12.2

  	
  Contest
  Provisions

  	
  48

  
	
   

  	
   

  	
   

  
	
  12.3

  	
  Assistance and
  Cooperation

  	
  49

  
	
   

  	
   

  	
   

  
	
  Article XIII  
  MISCELLANEOUS

  	
  49

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Notices

  	
  49

  
	
   

  	
   

  	
   

  
	
  13.2

  	
  Entire Agreement

  	
  50

  
	
   

  	
   

  	
   

  
	
  13.3

  	
  Binding Effect

  	
  50

  
	
   

  	
   

  	
   

  
	
  13.4

  	
  Assignment

  	
  50

  
	
   

  	
   

  	
   

  
	
  13.5

  	
  Modifications
  and Amendments

  	
  50

  
	
   

  	
   

  	
   

  
	
  13.6

  	
  Waivers

  	
  51

  
	
   

  	
   

  	
   

  
	
  13.7

  	
  No Third Party
  Beneficiary

  	
  51

  
	
   

  	
   

  	
   

  
	
  13.8

  	
  Severability

  	
  51

  

 

 

	
  13.9

  	
  Publicity

  	
  51

  
	
   

  	
   

  	
   

  
	
  13.10

  	
  Governing Law

  	
  52

  
	
   

  	
   

  	
   

  
	
  13.11

  	
  Counterparts;
  Facsimile Signatures

  	
  52

  
	
   

  	
   

  	
   

  
	
  13.12

  	
  Headings

  	
  52

  
	
   

  	
   

  	
   

  
	
  13.13

  	
  Expenses

  	
  52

  
	
   

  	
   

  	
   

  
	
  13.14

  	
  Further
  Assurances

  	
  52

  
	
   

  	
   

  	
   

  
	
  13.15

  	
  Arbitration

  	
  52

  
	
   

  	
   

  	
   

  
	
  13.16

  	
  Incorporation by
  Reference

  	
  52

  

 

 

EXHIBITS

 

	
  Exhibit A

  	
  Articles of Merger

  
	
  Exhibit B-1

  	
  Whittingham Employment Agreement

  
	
  Exhibit B-2

  	
  Nelson Employment Agreement

  
	
  Exhibit B-3

  	
  Seolas Employment Agreement

  
	
  Exhibit C

  	
  Registration Rights Agreement

  
	
  Exhibit D

  	
  Other Interests Acquisition Letter Agreement

  
	
  Exhibit E

  	
  Voting Agreement

  
	
  Exhibit F

  	
  Shareholder Warrant Agreements

  

 

SCHEDULES

 

	
  Schedule 4.1

  	
  iLead Organization & Qualification

  
	
  Schedule 4.7

  	
  Capital Structure

  
	
  Schedule 4.8

  	
  Financial Statements

  
	
  Schedule 4.10(a)

  	
  Owned Property

  
	
  Schedule 4.10(b)

  	
  Leased Property

  
	
  Schedule 4.11(a)

  	
  Tangible Personal Property

  
	
  Schedule 4.13

  	
  Insurance

  
	
  Schedule 4.14

  	
  Permits

  
	
  Schedule 4.15

  	
  Taxes

  
	
  Schedule 4.17(a)

  	
  Employees

  
	
  Schedule 4.18(h)

  	
  Environmental and Health/Safety Matters

  
	
  Schedule 4.18(i)

  	
  Business Assets Containing PCBs/Asbestos

  
	
  Schedule 4.18(j)

  	
  Locations of Hazardous Substances

  
	
  Schedule 4.19

  	
  Certain Interests

  
	
  Schedule 4.20

  	
  Seller Litigation

  
	
  Schedule 4.25

  	
  Brokers

  
	
  Schedule 4.26

  	
  Cash on hand/Banks and Brokerage Accounts

  
	
  Schedule 4.28

  	
  Contracts

  
	
  Schedule 5.1

  	
  THK/THK LLC/iLead Acquisition Sub Organization and Qualification

  
	
  Schedule 5.2(a)

  	
  Capital Structure

  
	
  Schedule 5.2(b)

  	
  Capital Contribution Obligations

  
	
  Schedule 5.5

  	
  Governmental Consents and Approvals

  
	
  Schedule 5.6

  	
  Buyer Litigation

  
	
  Schedule 5.9

  	
  Consolidated Financial Statements

  
	
  Schedule 6.6

  	
  Pre-Merger Employees

  
	
  Schedule 9.1(h)(9)

  	
  iLead Option Cancellation Agreement

  

 

 

AGREEMENT
AND PLAN OF MERGER AND REORGANIZATION

 

This Agreement and Plan
of Merger and Reorganization (“Agreement”) made and entered into as of
April 27, 2006 by and among THINK PARTNERSHIP INC., f/k/a CGI HOLDING
CORPORATION, a Nevada corporation (“THK”), iLEAD ACQUISITION SUB, INC.,
a Utah corporation company and wholly owned subsidiary of THK (“iLead
Acquisition Sub”), THK, LLC, a Delaware limited liability company and
wholly-owned subsidiary of THK (“THK LLC”), iLEAD MEDIA, INC., a Utah
corporation (“iLead”), and BRADY WHITTINGHAM (“Whittingham”),
DAVID NELSON (“Nelson”) and ROBERT SEOLAS (“Seolas”), as the
shareholders of iLead (individually, a “Shareholder” and collectively
the “Shareholders”).  THK, iLead
Acquisition Sub, THK, LLC, iLead and the Shareholders are sometimes referred to
herein each, individually, as a “Party” and, collectively, as the “Parties”.

 

WITNESSETH:

 

WHEREAS, iLead is engaged
in the business of various Internet marketing and related services
(collectively, the “Business”);

 

WHEREAS, the Board of
Directors of THK, the Boards of Directors and shareholders (to the extent
required) of iLead Acquisition Sub and the managers and members of THK LLC and
iLead have each approved this Agreement and the Merger and the Final Merger (as
defined below), in accordance with the laws of their respective States of
incorporation or formation, and the terms and conditions set forth herein;

 

WHEREAS, this Agreement
contemplates a merger of the iLead Acquisition Sub with and into iLead in
accordance with the terms of this Agreement (the “Merger”), pursuant to
which the Shareholders will receive cash and common stock of the THK in
exchange for their shares of capital stock of iLead.  The Merger then shall be followed, as soon as
reasonably practicable, by a merger of the iLead Surviving Company with and
into THK LLC (the “Final Merger”). 
It is the intention of the Parties that the Merger be mutually
interdependent with and a condition precedent to the Final Merger and that the
Final Merger shall, through the binding commitment evidenced by Section 6.7, be
effected, as soon as reasonably practicable, following the Effective Time and
without the further approval, authorization or direction from or by any of the
Parties.  It is the further intention of
the Parties that, upon consummation of the Merger and the Final Merger, there
will be achieved a single end result and the shareholders of iLead at the
Effective Time will receive the same economic benefit and/or ownership interest
in THK as such Shareholders would have received had iLead been merged directly
with and into THK LLC; and

 

WHEREAS, subject to
Section 10.6 hereof, for federal income tax purposes, it is intended that the
Merger and the Final Merger, considered together as a single integrated
transaction, shall qualify as a reorganization within the meaning of Section
368(a)(1)(A) of the Internal Revenue Code of 1986, as amended (the “Code”),
and the regulations promulgated thereunder and that this Agreement shall
constitute a “plan of reorganization” within the meaning of Treasury Regulation
Section 1.368-2(g).

 

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants, representations and
warranties herein contained, and for other good and valuable consideration, the
receipt, adequacy and legal sufficiency of which are hereby mutually
acknowledged, intending to be legally bound, the Parties hereby agree as
follows:

 

ARTICLE I

DEFINITIONS

 

In addition to terms
defined elsewhere in this Agreement, the following terms when used in this
Agreement shall have the respective meanings set forth below:

 

“Aboveground Storage
Tanks” has the meaning given in Section 6901 et seq., as amended, of RCRA,
or any applicable state or local statute, law, ordinance, code, rule,
Regulation, order ruling, or decree governing Aboveground Storage Tanks or
Underground Storage Tanks.

 

“Action” means any
claim, demand, action, cause of action, chose in action, right of recovery,
right of set-off, suit, arbitration, inquiry, proceeding or investigation by or
before any Governmental Authority.

 

“Additional Cash
Payment” is defined in Section 8.4.

 

“Affiliate” means,
with respect to a specified Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, is controlled by or is
under common control with such Person, and without limiting the generality of
the foregoing, includes, with respect to the specified Person: (a) any other
Person which beneficially owns or holds 10% or
more of the outstanding voting securities or other securities convertible into
voting securities of such Person, (b) any other Person of which the specified
Person beneficially owns or holds 10% or more of the outstanding voting
securities or other securities convertible into voting securities, or (c) any
director, officer or employee of such Person.

 

“Agreement” is
defined in the recitals to this Agreement.

 

“Approved Liabilities”
is defined in Section 4.27.

 

“Articles of Merger”
is defined in Section 2.2.

 

“Audited Closing Date
Balance Sheet” means the balance sheet of iLead as of the Closing Date, as
audited by the THK Accountants.

 

“Audited Financials”
is defined in Section 4.8.

 

“Bonus Pool” is
defined in Section 6.6.

 

“Bonus Pool Amount”
is defined in Section 6.6.

 

2

 

“Business” is
defined in the recitals to this Agreement.

 

“Business Assets”
is defined in Section 4.18(a).

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which banks are
required or authorized to be closed in the city of Chicago, Illinois.

 

“Cash Consideration”
is defined in Section 2.6.

 

“CERCLA” has the
meaning given in the Environmental Law definition.

 

“Claims of Any Nature”
is defined in Section 4.27.

 

“Closing” shall
mean the delivery of the documents referred to in Article IX and filing of the
documents referred to in Article II.

 

“Closing Date”
shall mean the day on which the Closing takes place.  The Closing shall be held at the offices of
Reed Smith LLP, 435 Sixth Avenue, Pittsburgh, PA 15219, unless another place is
agreed to in writing by the Parties.

 

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

 

“Company Financials”
is defined in Section 4.8.

 

“Contract” means
any contract, plan, undertaking, understanding, agreement, license, lease,
note, mortgage or other binding commitment, whether written or oral.

 

“Copyrights” mean
all copyrights (registered or otherwise) and registrations and applications for
registration thereof, and all rights therein provided by multinational treaties
or conventions.

 

“Court” means any
court or arbitration tribunal of the United States, any domestic state, or any
foreign country, and any political subdivision thereof.

 

“Database” means
all data and other information recorded, stored, transmitted and retrieved in
electronic form.

 

“Documents” means
this Agreement together with the Articles of Merger, the Schedules and Exhibits
hereto, the iLead Disclosure Schedule, and the other agreements, documents and
instruments required or contemplated to be executed in connection herewith.

 

“Earnout Payment”
is defined in Section 8.1.

 

“Effective Time”
is defined in Section 2.2.

 

3

 

“Employee Agreement”
means each management, employment, bonus, loan or other extension of credit,
change in control, retention, severance, consulting, non-compete,
confidentiality, or similar agreement or contract any part of which is in
effect on the date of this Agreement or the Closing Date between iLead and any
employee pursuant to which iLead provides annual compensation in excess of
$50,000 or any severance benefit or annual payment in excess of $25,000.

 

“Employee Plans”
means all employee benefit plans (as defined in Section 3(3) of ERISA) and all
bonus, stock or other security option, stock or other security purchase, stock
or other security appreciation rights, incentive, deferred compensation,
retirement or supplemental retirement, severance, golden parachute, vacation,
cafeteria, dependent care, medical care, employee assistance program, education
or tuition assistance programs, insurance and other similar fringe or employee
benefit plans, programs or arrangements, and any current or former employment
or executive compensation or severance agreements, written or otherwise, which
have ever been sponsored or maintained or entered into for the benefit of, or
relating to, any present or former employee or manager of iLead, or any trade
or business (whether or not incorporated) which is a member of a controlled
group or which is under common control with iLead, within the meaning of
Section 414 of the Code (an “ERISA Affiliate”), whether or not such plan
is terminated.

 

“Employee Salaries
Letter” is defined in Section 4.16(a).

 

“Employee Warrant
Agreements” is defined in Section 9.1(i).

 

“Environmental Law”
means, as enacted and in effect on or prior to the Closing Date, all federal,
state, regional or local statutes, laws, rules, regulations, codes, orders,
plans, injunctions, decrees, rulings, and changes or ordinances or judicial or
administrative interpretations thereof, any of which govern (or purport to
govern) or relate to pollution, protection of the environment, public health
and safety, air emissions, water discharges, hazardous or toxic substances,
solid or hazardous waste or occupational health and safety, as any of these
terms are or may be defined in such statutes, laws, rules, regulations, codes,
orders, plans, injunctions, decrees, rulings and changes or ordinances, or judicial
or administrative interpretations thereof, including, without limitation, the
United States Department of Transportation Table (49 C.F.R. 172, 101) or by the
Environmental Protection Agency as hazardous substances (40 C.F.R. Part 302)
and any amendments thereto; the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended by the Superfund Amendment
and Reauthorization Act of 1986 (“SARA”) and by subsequent amendments,
42 U.S.C. §9601, et seq. (hereinafter, collectively, “CERCLA”); the
Solid Waste Disposal Act, as amended by the Resource Conversation and Recovery
Act of 1976 and subsequent Hazardous and Solid Waste Amendments of 1984, 42
U.S.C. §6901 et seq. (hereinafter, collectively “RCRA”); the Hazardous
Materials Transportation Act, as amended, 49 U.S.C. §1801, et seq.; the Federal
Water Pollution Control Act, as amended, 33 U.S.C. §1311, et seq.; the Clean
Air Act, as amended, 42 U.S.C. §7401 7642; the Toxic Substances Control Act, as
amended, 15 U.S.C. §2601 et seq.; the Federal Insecticide, Fungicide, and
Rodenticide Act, as amended, 7 U.S.C. §136 136y; the Emergency Planning and
Community Right to Know Act of 1986, as amended, 42 U.S.C. §11001, et seq.
(Title III of SARA); the Occupational Safety and Health Act of 1970, as
amended, 29 U.S.C. §651, et seq. (“OSHA”).

 

4

 

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

 

“Final Merger” is
defined in the recitals to this Agreement.

 

“First Twelve Quarters”
means the first twelve (12) full calendar quarters following the Closing Date.

 

“First Twelve Quarters
Pre-Tax Earnings” means the aggregate pre-tax earnings of the Business
during the First Twelve Quarters, determined in accordance with GAAP consistently
applied, as certified by the THK Accountants.

 

“GAAP” means
United States generally accepted accounting principles and practices in effect
from time to time consistently applied.

 

“Governmental
Authority” means any governmental or legislative agency or authority (other
than a Court) of the United States, any domestic state, or any foreign country,
and any political subdivision or agency thereof, and includes any authority
having governmental or quasi-governmental powers, including any administrative
agency or commission.

 

“Hardware” means
all mainframes, midrange computers, personal computers, notebooks, servers,
switches, printers, modems, drives, peripherals and any component of any of the
foregoing.

 

“Hazardous Substance”
means any Hazardous Substance, as defined in CERCLA, and any other chemical,
compound, product, solid, gas, liquid, pollutant, contaminant or material which
is regulated under any Environmental Law, and includes without limitation,
asbestos or any substance containing asbestos, polychlorinated biphenyls and
petroleum (including crude oil or any fraction thereof).

 

“iLead” is defined
in the preamble to this Agreement.

 

“iLead Acquisition Sub”
is defined in the preamble to this Agreement.

 

“iLead Certificates”
is defined in Section 2.6.

 

“iLead Common Stock”
is defined in Section 2.6.

 

“iLead Surviving
Company” is defined in Section 2.1.

 

“Indebtedness”
means, with respect to any Person, (a) all indebtedness of such Person, whether
or not contingent, for borrowed money, (b) all obligations of such Person for
the deferred purchase price of property or services, (c) all obligations of
such Person evidenced by notes, bonds, debentures or other similar instruments,
(d) all indebtedness created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such Person
(even though the rights and remedies of a creditor or a lender under such an
agreement in the event of default are limited to repossession or sale of such
property), (e) all

 

5

 

obligations of such
Person as lessee under leases that have been or should be, in accordance with
GAAP, recorded as capital leases, (f) all obligations, contingent or otherwise,
of such Person under acceptance, letter of credit or similar facilities, (g)
all obligations of such Person to purchase, redeem, retire, defease or
otherwise acquire for value any capital stock of such Person or any warrants,
rights or options to acquire such capital stock, valued, in the case of
redeemable preferred stock, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends, (h) all Indebtedness
of others referred to in clauses (a) through (g) above guaranteed directly or
indirectly in any manner by such Person, or in effect guaranteed directly or
indirectly by such Person through an agreement (1) to pay or purchase such
Indebtedness or to advance or supply funds for the payment or purchase of such
Indebtedness, (2) to purchase, sell or lease (as lessee or lessor) property, or
to purchase or sell services, primarily for the purpose of enabling the debtor
to pay the Indebtedness or to assure the holder of such Indebtedness against
loss, (3) to supply funds to or in any other manner invest in the debtor
(including any agreement to pay for property or services irrespective of
whether such property is received or such services are rendered) or (4)
otherwise to assure a creditor against loss and all Indebtedness referred to in
clauses (a) through (g) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on property (including, without limitation, accounts and contract
rights) owned by such Person, even though such Person has not assumed or become
liable for the payment of such Indebtedness.

 

“Information System”
means any combination of Hardware, Software and/or Database(s) employed
primarily for the creation, manipulation, storage, retrieval, display and use of
information in electronic form or media.

 

“Intellectual Property”
means (a) inventions, whether or not patentable, whether or not reduced to
practice or whether or not yet made the subject of a pending Patent application
or applications, (b) ideas and conceptions of potentially patentable subject
matter, including, without limitation, any patent disclosures, whether or not
reduced to practice and whether or not yet made the subject of a pending Patent
application or applications, (c) Patents, (d) Trademarks, (e) Copyrights, (f)
Software, (g) trade secrets and confidential, technical or business information
(including ideas, formulas, compositions, inventions, and conceptions of
inventions whether patentable or unpatentable and whether or not reduced to practice),
(h) whether or not confidential, technology (including know-how and show-how),
manufacturing and production processes and techniques, research and development
information, drawings, specifications, designs, plans, proposals, technical
data, copyrightable works, financial, marketing and business data, Databases,
Information Systems, pricing and cost information, business and marketing plans
and customer and supplier lists and information, (i) copies and tangible
embodiments of all the foregoing, in whatever form or medium, (j) all rights to
obtain and rights to apply for Patents, and to register Trademarks and
Copyrights, (k) all rights under any license agreement and any license,
registered user agreement, technology or material, transfer agreement, and
other agreements or instruments with respect to items in (a) to (j) above; and
(l) all rights to sue and recover and retain damages and costs and attorneys’
fees for present and past infringement of any of the Intellectual Property
rights hereinabove set out.

 

“Inventories”
means all inventories, including, without limitation, merchandise, raw
materials, work-in-process, finished goods, replacement parts, packaging,
office supplies,

 

6

 

maintenance supplies,
computer parts and supplies and Hardware related to the Business maintained,
held or stored by or for iLead at any location whatsoever and any prepaid
deposits for any of the same.

 

“IRS” shall mean
the United States Internal Revenue Service.

 

“Knowledge” means
(a) in the case of an individual, knowledge of a particular fact or other
matter if such individual is actually aware of such fact or other matter, and
(b) in the case of a Person (other than an individual) such Person will be
deemed to have Knowledge of a particular fact or other matter if any individual
who is serving, or has at any time served, as a director, manager, officer,
partner, executor, or trustee of such Person (or in any similar capacity) has,
or at any time had, actual knowledge of such fact or other matter.

 

“Law” means all laws, statutes, ordinances and
Regulations of any Governmental Authority including all decisions of Courts
having the effect of law in each such jurisdiction.

 

“Leased Property”
means any property leased by iLead as tenant, together with, to the extent
leased by iLead all buildings and other structures, facilities or improvements
currently or hereafter located thereon, all fixtures, systems, equipment and
items of personal property of iLead attached or appurtenant thereto, and all
easements, licenses, rights and appurtenances relating to the foregoing.

 

“Leases” is
defined in Section 4.10(d).

 

“Liabilities”
means any and all debts, liabilities and obligations, whether accrued or fixed,
absolute or contingent, matured or unmatured or determined or determinable,
including, without limitation, those arising under any Law (including, without
limitation, any Environmental Law), Action or Order, liabilities for Taxes and
those liabilities arising under any Contract.

 

“Liens” means any
mortgage, pledge, security interest, attachment, encumbrance, lien (statutory
or otherwise), option, conditional sale agreement, right of first refusal,
first offer, termination, participation or purchase, or charge of any kind
(including any agreement to grant any of the foregoing), provided, however,
that the term “Lien” shall not include: (a) liens for Taxes, assessments
and charges any Governmental Authority due and being contested in good faith
and diligently by appropriate proceedings (and for the payment of which
adequate provision has been made); (b) servitudes, easements, restrictions,
rights-of-way and other similar rights in real property or any interest therein
granted to any third party; (c) liens for Taxes either not due and payable or
due but for which notice of assessments has not been given; (d) undetermined or
inchoate liens, charges and privileges incidental to current construction or
current operations and statutory liens, charges, adverse claims, security
interests or encumbrances of any nature whatsoever claimed or held by any
Governmental Authority which have not at the time been filed or registered
against the title to the asset or served upon iLead pursuant to Law or which
relate to obligations not due or delinquent; (e) assignments of insurance
provided to third party landlords (or their mortgagees) pursuant to the terms
of any lease, and liens or rights reserved in any lease for rent or for
compliance with the terms of such lease; (f) liens granted in the ordinary

 

7

 

course of the Business,
as applicable, to any public utility, municipality or Government Authority in
connection with the operations of the Business, as applicable, other than liens
granted for borrowed money; (g) deposits or pledges made in connection with, or
to secure payment of, workers’ compensation, unemployment insurance, old age
pension or other social security programs mandated under applicable Laws; and
(h) restrictions on transfer of securities imposed by applicable state and
federal securities Laws.

 

“Litigation” means
any suit, action, arbitration, cause of action, claim, complaint, criminal
prosecution, investigation, inquiry, demand letter, governmental or other
administrative proceeding, whether at law or at equity, before or by any Court,
Governmental Authority, arbitrator or other tribunal.

 

“Loss” and “Losses”
are defined in Section 10.2(a).

 

“Material Adverse
Effect” means any circumstance, change in, or effect that, individually or
in the aggregate: (a) is, or could be, materially adverse to the business,
operations, assets or Liabilities (including, without limitation, contingent
Liabilities), results of operations or the condition (financial or otherwise)
of the Person, or (b) could materially adversely affect the ability of the
Person to operate or conduct its business in the manner in which it is
currently operated or conducted, or contemplated to be conducted or operated;
provided, however, that in determining whether a Material Adverse Effect has
occurred, any effect to the extent attributable to the following shall not be
considered:  (a) changes in Laws, rules
or regulations of general applicability or interpretations thereof by
Governmental Authority; (b) changes in prevailing interest rates; (c) changes
in general economic conditions; (d) changes affecting the Internet marketing
industry generally; (e) any actions taken or omitted to be taken pursuant to
the terms of this Agreement; and (f) any effects resulting from the
announcement of this Agreement.

 

“Merger” is
defined in the recitals to this Agreement.

 

“Merger Consideration”
is defined in Section 2.6.

 

“Nelson” is
defined in the preamble to this Agreement.

 

“Nelson Employment
Agreement” is defined in Section 9.1(h).

 

“Option Cancellation
Agreement” means the agreement set forth on Schedule 9.1(h)(9)
hereto.

 

“Order” shall mean
any judgment, order, writ, injunction, ruling, stipulation, determination,
award or decree of or by, or any settlement under the jurisdiction of, any
Court or Governmental Authority.

 

“Other Interests”
is defined in Section 9.1(h)(12).

 

“Other Interests
Acquisition Letter Agreement” is defined in Section 9.1(h)(12).

 

8

 

“Owned Property”
means any property owned by iLead together with all buildings and other
structures, facilities or improvements currently or hereafter located thereon,
all fixtures, systems, equipment and items of personal property of iLead
attached or appurtenant thereto and all easements, licenses, rights and
appurtenances relating to the foregoing.

 

“Owned Property Leases”
is defined in Section 4.10(a).

 

“Party” or “Parties”
is defined in the recitals to this Agreement.

 

“Patents” mean all
national (including the United States) and multinational statutory invention
registrations, patents, patent registrations and patent applications, including
all reissues, divisions, continuations, continuations-in-part, extensions and
reexaminations, and all rights therein provided by multinational treaties or conventions
and all improvements to the inventions disclosed in each such registration,
patent or application.

 

“Permits” means
any licenses, permits, pending applications, consents, certificates,
registrations, approvals and authorizations.

 

“Person” means any
natural person, corporation, limited liability company, unincorporated
organization, partnership, association, joint stock company, joint venture,
trust or any other entity.

 

“Pre-Tax Earnings
Amount”, subject to Section 8.3, means the amount, if any, by which (i) an
amount equal to one-third of the First Twelve Quarters Pre-Tax Earnings exceeds
(ii) $3,682,688.

 

“Property” means
the Leased Property and the Owned Property.

 

“RCRA” has the
meaning given in the Environmental Law definition.

 

“Receivables” means
any and all accounts receivable, notes, book debts and other amounts due or
accruing due to a Person, whether or not in the ordinary course of its
business, together with any unpaid financing charges accrued thereon.

 

“Registration Rights
Agreement” is defined in Section 9.1(h).

 

“Regulation” means
any rule or regulation of any Governmental Authority.

 

“Release” means
any release, spill, emission, leak, pumping, injection, deposit, disposal,
discharge, dispersal, leaching or migration (as such terms are used or defined
in the Environmental Laws) of a Hazardous Substance into the indoor or outdoor
environment or into or out of any Property, including the movement of Hazardous
Substances through or in the air, soil, surface water, groundwater or property.

 

“SEC” means the
United States Securities and Exchange Commission.

 

9

 

“SEC Reports” is
defined in Section 5.9(a).

 

“Securities Act”
means the Securities Act of 1933, as amended from time to time.

 

“Seolas” is
defined in the preamble to this Agreement.

 

“Seolas Employment
Agreement” is defined in Section 9.1(h).

 

“Set-Off” is
defined in Section 10.4.

 

“Shareholder” and “Shareholders”
are defined in the preamble to this Agreement.

 

“Shareholder Warrant
Agreements” is defined in Section 9.1(i).

 

“Shareholders
Employment Agreements” is defined in Section 9.1(h).

 

“Software” means
any and all (a) computer programs, including any and all software
implementations of algorithms, models and methodologies, whether in source code
or object code, (b) Databases and compilations, including any and all data and
collections of data, whether machine readable or otherwise, (c) descriptions,
flow-charts and other work product used to design, plan, organize and develop
any of the foregoing, (d) the technology supporting any Internet site(s)
operated by or on behalf of the Person and (e) all documentation, including
user manuals and training materials, relating to any of the foregoing.

 

“Stock Consideration”
is defined in Section 2.6.

 

“Straddle Period”
means any taxable period that includes (but does not end on) the Closing Date.

 

“Subsidiary” or “Subsidiaries”
of a specified Person means any other Person in which such Person owns,
directly or indirectly, more than 50% of the outstanding voting securities or
other securities convertible into voting securities, or which may effectively
be controlled, directly or indirectly, by such Person.

 

“Tangible Personal
Property” is defined in Section 4.11(a).

 

“Tax” or “Taxes”
means any and all federal, state, local, or foreign taxes, fees, levies,
duties, tariffs, imposts, and other charges of any kind (together with any and
all interest, penalties, additions to tax and additional amounts imposed with
respect thereto) imposed by any Governmental Authority or other taxing
authority, including, without limitation: taxes or other charges on or with
respect to income, franchises, windfall or other profits, gross receipts,
property, sales, use, capital stock, payroll, employment, disability, social security,
workers’ compensation, unemployment compensation, or net worth; taxes or other
charges in the nature of excise, withholding, ad valorem, stamp, transfer,
value added, or gains taxes; license, registration and documentation fees; and
customs’ duties, tariffs, and similar charges, whether computed on a separate
or consolidated, unitary or combined basis or in any other manner, whether
disputed or

 

10

 

not and including any
obligation to indemnify or otherwise assume or succeed to the Tax liability of
any other Person, together with any interest or penalty, addition to tax or
additional amount imposed by any Governmental Authority.

 

“Tax Returns”
means returns, reports and information statements, including any schedule or
attachment thereto, with respect to Taxes required to be filed with the IRS or
any other Governmental Authority or other taxing authority or agency, domestic
or foreign, including consolidated, combined and unitary tax returns.

 

“THK” is defined
in the preamble to this Agreement.

 

“THK Accountants”
means THK’s independent certified public accountants.

 

“THK Common Stock”
means the Common Stock, $.001 par value per share, of THK.

 

“THK LLC” is
defined in the preamble to this Agreement.

 

“Trademarks” mean
all trademarks, service marks, trade dress, logos, trade names and corporate
names, whether or not registered, including all common law rights, and
registrations and applications for registration thereof, including, but not
limited to, all marks registered in the United States Patent and Trademark
Office, the Trademark Offices of the States and Territories of the United
States of America, and the Trademark Offices of other nations throughout the
world, and all rights therein provided by multinational treaties or
conventions.

 

“Unapproved
Liabilities” is defined in Section 10.2.

 

“Underground Storage
Tanks” has the meaning given in Section 6901 et seq., as amended, of RCRA,
or any applicable state or local statute, law, ordinance, code, rule, Regulation,
order ruling, or decree governing Aboveground Storage Tanks or Underground
Storage Tanks.

 

“Utah Department of
Commerce” means the Utah Department of Commerce, Division of Corporations
and Commercial Code.

 

“Waste” means
agricultural wastes, biomedical wastes, biological wastes, bulky wastes,
construction and demolition debris, garbage, household wastes, industrial solid
wastes, liquid wastes, sludge, solid wastes, special wastes, used oils, and
yard trash.

 

“Web Sites” means
all web sites, domain names, and associated internet properties, rights, titles
and interests in any way directly or indirectly used in or associated with the
Business.

 

“Whittingham” is
defined in the preamble to this Agreement.

 

“Whittingham
Employment Agreement” is defined in Section 9.1(h).

 

11

 

ARTICLE II

THE MERGER

 

2.1           The
Merger.  At the Effective Time, in
accordance with the laws of the State of Utah and the terms and conditions of
the Documents, iLead Acquisition Sub shall be merged with and into iLead.  From and after the Effective Time, the
separate corporate existence of iLead Acquisition Sub shall cease and iLead, as
the surviving corporation in the Merger, shall continue its existence under the
laws of the State of Utah as a wholly-owned subsidiary of THK.  iLead, as the surviving corporation after the
Merger, is hereinafter sometimes referred to as the “iLead Surviving Company.”

 

2.2           Effective
Time.  Subject to the provisions of
this Agreement, on the Closing Date or as soon thereafter as is practicable,
the Parties shall cause the Merger to become effective by executing and filing
with the Utah Department of Commerce Articles of Merger in accordance with the
form required pursuant to Section 16-10a-1105 of the Utah Revised Business
Corporation Act, which forms shall be prepared by counsel to iLead and THK, and
attached hereto as Exhibit A and made a part hereof (the “Articles of
Merger”), the date and time of such filing, or such later date and time as
may be agreed upon by the Parties and specified therein, being hereinafter
referred to as the “Effective Time”. 
The Parties hereto shall take all necessary steps to pre-clear the
Merger with the Utah Department of Commerce in order that on the Closing Date,
the Articles of Merger may be filed with the Utah Department of Commerce and
become effective upon filing.

 

2.3           Effect
of the Merger.  At the Effective
Time, the Merger shall have the effect set forth in the Documents and in the
applicable provisions of law.  Without
limiting the generality of the foregoing, and subject thereto, at the Effective
Time all of the assets, properties, rights, privileges, immunities, powers and
franchises of iLead and iLead Acquisition Sub shall vest in the iLead Surviving
Company, and all of the debts, liabilities and duties of iLead and iLead
Acquisition Sub shall become the debts, liabilities and duties of the iLead
Surviving Company.

 

2.4           Articles
of Incorporation and Bylaws.  From
and after the Effective Time and without further action on the part of the
Parties, the Articles of Incorporation and Bylaws of iLead Acquisition Sub
immediately prior to the Effective Time shall be the Articles of Incorporation
and Bylaws of iLead Surviving Company until amended in accordance with the respective
terms thereof.

 

2.5           Directors
and Officers.  The directors and
officers of iLead Surviving Company immediately prior to the Effective Time
shall be the directors and officers immediately following the Effective Time,
it being expressly agreed that Whittingham shall be a director and the
President of iLead Surviving Company and shall report to the President and the
Chief Operating Officer of THK as described more fully in the Whittingham
Employment Agreement, Nelson shall be a director and a Vice President of iLead
Surviving Company and shall report to the President of iLead Surviving Company
as described more fully in the Nelson Employment Agreement and Seolas shall be
a Vice President of iLead Surviving Company and shall report to the President
of iLead Surviving Company as described more fully in the Seolas Employment
Agreement, each to hold office in accordance with the Articles of Incorporation
and Bylaws of

 

12

 

iLead Acquisition
Sub, in each case, until their respective successors are duly elected or
appointed and qualified or until their earlier death, resignation or removal in
accordance with their respective Shareholder Employment Agreement and iLead
Acquisition Sub’s Articles of Incorporation and Bylaws.

 

2.6           Effect
on iLead’s Capital Structure.  At the
Effective Time, by virtue of the Merger and without any action on the part of
the Parties or the holders of the following securities: (x) All of issued and
outstanding shares of common stock of iLead immediately prior to the Effective
Time (“iLead Common Stock”) shall be converted automatically into the
right to receive Nine Million Two Hundred Six Thousand Seven Hundred Twenty
Dollars ($9,206,720) (the “Cash Consideration”) and shares of THK Common
Stock having an aggregate value of Nine Million Two Hundred Six Thousand Seven
Hundred Twenty Dollars ($9,206,720), such stock to be valued at $1.98 per share
(the “Stock Consideration”, and collectively with the Cash Consideration
and the Earnout Payment (if any) and the Additional Cash Payment (if any), the “Merger
Consideration”).  From and after the
Effective Time, all iLead Common Stock shall automatically be redeemed and
canceled and shall cease to exist, and each holder of a certificate, if any,
that previously represented any such iLead Common Stock (collectively, the “iLead
Certificates”) shall cease to have any rights with respect thereto other
than the right to receive, if any, their portion of the Merger Consideration
(including the Earnout Payment).  The
Merger Consideration shall be deemed to have been issued in full satisfaction
of all rights pertaining to the iLead Common Stock, and after the Effective
Time, there shall be no further registration or transfers of iLead Common
Stock.  If after the Effective Time, any
iLead Certificates are presented to iLead Surviving Company for any reason,
they shall be cancelled and exchanged as provided in this Section 2.6. If any
iLead Certificates representing iLead Common Stock shall have been lost, stolen
or destroyed, THK shall issue in exchange for such lost, stolen or destroyed
certificates, upon the making of an affidavit of that fact by the holder
thereof, the applicable Merger Consideration; provided,
however, that THK may, in its discretion and as a condition precedent to
the issuance and delivery thereof, require the owner of such lost, stolen or
destroyed certificates to deliver a bond in such sum as it may reasonably
direct as indemnity against any claim that may be made against THK or iLead Surviving
Company with respect to the certificates alleged to have been lost, stolen or
destroyed.

 

2.7           Options
and Warrants.  Prior to the Effective Time, the
Shareholders, at the Shareholders’ sole expense, shall take all actions
necessary to cause all iLead Common Stock other than the iLead Common Stock
held by the Shareholders which is being exchanged for the Merger Consideration
in accordance with Section 2.6, and all options, warrants and other contractual
or other rights to purchase or otherwise acquire or convert into iLead Common
Stock, if any, to be cancelled, extinguished and terminated.

 

2.8           Taking
of Necessary Action; Further Action. 
If, at any time and from time to time after the Effective Time, any
further action is necessary or desirable to carry out the purposes of this
Agreement and to vest in the iLead Surviving Company full right, title and
possession of all properties, assets, rights, privileges, powers and franchises
of iLead and iLead Acquisition Sub, the officers and managers of iLead and the
iLead Surviving Company shall be and are fully authorized and directed, in the
name of and on behalf of their respective companies, to take, or cause to be
taken, all such lawful and necessary action as is not inconsistent with this

 

13

 

Agreement.  THK shall cause iLead Acquisition Sub and THK
LLC to perform all of their obligations relating to this Agreement and the
transactions contemplated hereby.

 

2.9           Tax-Deferred
Reorganization.  Subject to Section 10.6 hereof, the Parties
intend to adopt this Agreement as a tax-deferred plan of reorganization and
agree to treat the Merger and the Final Merger, considered together as a single
integrated transaction, as a reorganization in accordance with the provisions
of Section 368(a)(1)(A) of the Code for U.S. tax purposes.  After the Merger, THK, iLead Acquisition Sub
and THK LLC shall, and shall cause iLead to: 
(A) report on their respective tax returns and tax filings the
transactions contemplated by this Agreement as a tax-free reorganization
(except for cash paid) under Section 368(a)(1)(A) of the Code; (B) keep their
records, and file in connection with their federal and state income tax
returns, all such information as may be required by Section 1.368-3 of the
Treasury Regulations (and corresponding state rules and regulations) with
respect to the transactions contemplated by this Agreement; (C) refrain from
taking any action or tax reporting position which would be inconsistent with
such qualification of the transactions contemplated hereunder as a tax-free
reorganization (except for cash paid) under Section 368(a)(1)(A) of the Code
unless otherwise required by a “determination” (as defined in Section
1313(a)(1) of the Code) or by applicable state or local law (and then only to
the extent required by such applicable state or local tax law); and (D) comply
with all the requirements of Section 368(a)(1)(A) of the Code and the
administrative pronouncements thereunder applicable to the transactions
contemplated by this Agreement.

 

ARTICLE III

RESTRICTIONS ON TRANSFER REGISTRATION

 

3.1           Restrictions
on Transfer.  All certificates
representing THK Common Stock issued pursuant to this Agreement shall bear a
legend stating that the THK Common Stock has not been registered under the
Securities Act, and may not be transferred or sold without such registration or
an exemption therefrom.

 

3.2           Registration.  At the Closing, THK and the Shareholders
shall enter into the Registration Rights Agreement.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS AND ILEAD

 

In order to
induce THK, iLead Acquisition Sub and THK LLC to enter into this Agreement and
to consummate the transactions contemplated hereby, the Shareholders and iLead
hereby jointly and severally represent and warrant to each of THK, iLead
Acquisition Sub and THK LLC, as of the date of this Agreement, as follows, it
be understood and agreed that, unless the context requires otherwise, all
references to iLead in this Article IV shall be deemed to refer to and include
iLead and its Subsidiary on a consolidated basis:

 

4.1           Organization
and Qualification.  iLead is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Utah, with full corporate power and

 

14

 

authority to own,
lease and operate its properties and to conduct its business as now conducted
except where failure to be so organized, existing and in good standing would
not reasonably be expected to have a Material Adverse Effect on iLead, and is
duly licensed or qualified to transact business as a foreign corporation and is
in good standing in each of the jurisdictions listed on Schedule 4.1,
which are the only jurisdictions in which the failure to be so licensed or
qualified could have a Material Adverse Effect on iLead.

 

4.2           Subsidiaries.  iLead does not have any Subsidiaries and does
not own, directly or indirectly, any equity or other ownership interest of any
Person.

 

4.3           Articles
of Incorporation, Bylaws and Corporate Records.  True, correct and complete copies of each of
(a) the Articles of Incorporation of iLead as amended and in effect on the date
hereof, (b) the Bylaws of iLead as amended and in effect on the date hereof and
(c) the minute books of iLead, have been previously made available to THK and
iLead Acquisition Sub.  The minute book
contains complete and accurate records of all meetings and other actions of the
directors, committees of the directors, organizers and Shareholders of iLead
from the date of its organization to the date hereof.

 

4.4           Authorization;
Enforceability.  iLead has the
corporate power and authority to own, hold, lease and operate its properties
and assets, to carry on its business as currently conducted and to execute,
deliver and perform its obligations under this Agreement and the other
Documents to which it is a party.  The
execution, delivery and performance of this Agreement and the other Documents
to which it or he is a party and the consummation of the transactions contemplated
herein and therein have been duly authorized and approved by the directors of
iLead and the Shareholders, and no other action on the part of iLead or the
Shareholders is necessary to consummate the transactions contemplated by this
Agreement and the other Documents.  This
Agreement and each of the other Documents to be executed and delivered by iLead
and the Shareholders has been or, at the Closing, will be duly executed and
delivered by, and constitute the legal, valid and binding obligations of, iLead
and the Shareholders, respectively, are enforceable against iLead and the
Shareholders in accordance with their terms, except as enforcement may be
limited by bankruptcy, insolvency reorganization, moratorium and similar laws
relating to or affecting creditor rights generally or by general equity
principles (regardless of whether enforcement is sought in a proceeding in
equity or at law).

 

4.5           No Violation or
Conflict.  None of (a) the
execution and delivery by iLead and the Shareholders of this Agreement and the
other Documents to be executed and delivered by iLead or the Shareholders, (b)
the consummation by iLead and the Shareholders of the transactions contemplated
by this Agreement and the other Documents or (c) the performance of this
Agreement and the other Documents required by this Agreement to be executed and
delivered by iLead or the Shareholders at the Closing will (1) conflict with or
violate the Articles of Incorporation or the Bylaws of iLead, (2) conflict with
or violate any Law, Order or Permit applicable to iLead or the Shareholders, or
by which iLead’s properties or the iLead Common Stock are bound or affected, or
(3) result in any breach or violation of, or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or
impair iLead’s rights or alter the rights or obligations of any third party
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, or result in the creation of any Lien on any of the properties
or assets of iLead pursuant to, any Contract, Permit or other

 

15

 

instrument or
obligation to which iLead is a party or by which iLead or its properties are
bound or affected except, in the case of clause (2) or (3) above, for any
conflict, breach, violation, default or other occurrence that would not,
individually or in the aggregate, have a Material Adverse Effect on iLead.

 

4.6           Governmental
Consents and Approvals.  Except for
the Articles of Merger, the execution, delivery and performance of this
Agreement and the other Documents by iLead and the Shareholders do not and will
not require any consent, approval, authorization, Permit or other order of,
action by, filing with or notification to, any Governmental Authority.

 

4.7           Capital
Structure.  The Shareholders own 100%
of the outstanding iLead Common Stock. 
The Shareholders are the record and beneficial owners and holders of the
iLead Common Stock free and clear of all Liens. 
Schedule 4.7 sets forth the number of shares of iLead Common
Stock owned by each Shareholder.  Except
as described above, there will be no equity interests or other securities of
iLead authorized, issued, reserved for issuance or otherwise outstanding at the
Closing.  Without limiting the generality
of the foregoing, none of Ben Bertola, Craig Anderson, Madison Parker or Rich
Christiansen nor any of the current, former or prospective shareholders of Web
House USA, Inc., WinDaily Inc., Killer Deals LLC, Free Blvd., Affiliate Bank.com,
Oral Bright, Inc., eFamily Network, Inc. or any other Person in which
Whittingham has or had an interest (including without limitation the entities
listed on Schedule 4.19) owns or is entitled to any iLead Common Stock
or has or will have claim with respect to any of the Merger Consideration.  All of the outstanding iLead Common Stock is
duly authorized, validly issued, fully paid and non-assessable, and not subject
to, or issued in violation of, any kind of preemptive, subscription or any kind
of similar rights. There are no bonds, debentures, notes or other Indebtedness
of iLead having the right to vote (or convertible into securities having the
right to vote) on any matters on which the Shareholders are eligible or
required to vote.  There are no other
outstanding securities, options, warrants, calls, rights, commitments,
agreements, arrangements or undertakings of any kind (contingent or otherwise)
to which iLead is a party or bound obligating iLead to issue, deliver or sell,
or cause to be issued, delivered or sold, additional voting securities of iLead
or obligating iLead to issue, grant, extend or enter into any agreement to
issue, grant or extend any security, option, warrant, call, right, commitment,
agreement, arrangement or undertaking that will survive the Closing.  There are no outstanding contractual
obligations of iLead to repurchase, redeem or otherwise acquire any capital
stock (or options to acquire any such capital stock) or other security or equity
interest of iLead which will survive the Closing.  All of the issued and outstanding iLead
Common Stock was issued in compliance with all applicable federal and state
securities laws and is owned by the Shareholders.

 

4.8           Financial
Statements.  Schedule 4.8 sets
forth the audited consolidated balance sheets of iLead as of December 31, 2004,
and December 31, 2005, respectively, and the related audited consolidated
income statement and statement of cash flows for the periods ended December 31,
2004 and December 31, 2005 accompanied by the auditor’s report thereon (the “Audited
Financials” or the “Company Financials”).  The Company Financials (i) have been prepared
in accordance with the books and records of the Person to which they relate and
(ii) are complete and correct have been prepared in accordance with GAAP
consistently applied for the periods presented. 
The Company Financials present fairly the financial condition and
operating results of iLead as of the dates and during the periods indicated
therein.

 

16

 

4.9           Conduct
in the Ordinary Course; Absence of Changes. 
Since December 31, 2005, iLead has conducted the Business in the
ordinary course, consistent with past practice, and there has been no change in
the Business which has had, or could reasonably be anticipated to result in, a
Material Adverse Effect on iLead.

 

4.10         Property.

 

(a)           Part
I of Schedule 4.10(a) lists (1) the street address of each parcel of Owned
Property, and (2) any and all leases of all or any portion of any of Owned
Property (“Owned Property Leases”).  Any
parcel of Owned Property that is not subject to an Owned Property Lease is
occupied by iLead and is used solely for the conduct of the Business.  Part II of Schedule 4.10(a) lists for each
Owned Property Lease (i) the street address of each parcel subject to an Owned
Property Lease, (ii) the identity of the lessor, lessee and current occupant
(if different from lessee/lessor) under each Owned Property Lease, (iii) the
term, the security deposit, if any, and rental payment terms of the Owned
Property Leases (and any subleases) pertaining to each Owned Property Lease,
(iv) any commissions due now or in the future on any Owned Property Lease or in
connection with an option to extend or renew and (v) any amendments to the Owned
Property Leases.

 

(b)           Schedule
4.10(b) lists (1) the street address of each parcel of Leased Property, (2) the
identity of the lessor, lessee and current occupant (if different from lessee)
of each such parcel of Leased Property, and (3) the term and rental payment
terms of the leases (and any subleases) pertaining to each such parcel of
Leased Property.

 

(c)           iLead
has made available to THK and iLead Acquisition Sub true and correct copies of
each deed for each parcel of Owned Property and, to the extent available, for
each parcel of Leased Property, and all title insurance policies, title
reports, surveys, certificates of occupancy, environmental reports and audits,
appraisals, other title documents and other documents relating to or otherwise
affecting the Owned Property, the Leased Property or the operation of the
Business thereon or any other uses thereof.

 

(d)           iLead
has delivered, or made available to THK and iLead Acquisition Sub, true and
correct copies of all leases and subleases listed in Schedules 4.10(a) and (b)
and any and all ancillary documents pertaining thereto (including, but not
limited to, all amendments, consents for alterations and documents recording
variations and evidence of commencement dates and expiration dates) (the “Leases”).  With respect to each Lease:

 

(1)           each
Lease is the legal, valid and binding, obligation of the parties thereto,
enforceable against each party, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or affecting creditor rights generally or by general equity principles
(regardless of whether enforcement is sought in a proceeding in equity or at
law);

 

(2)           none
of (a) the execution and delivery by iLead and each of the Shareholders of this
Agreement and the other Documents, (b) the consummation by iLead and the
Shareholders of the transactions contemplated by this Agreement and the other
Documents, or (c) the performance by iLead and the Shareholders of this
Agreement and the other

 

17

 

Documents will (1)
conflict with or violate the terms of any Lease or (2) result in any breach or
violation of or constitute a default (or an event with notice or lapse of time
or both would become a default) under, or impair iLead’s rights or alter the
rights or obligations of any third party under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any Lease;

 

(3)           neither
iLead nor, to the Knowledge of iLead and the Shareholders, any other party to
any Lease, is in breach or default, and, to the Knowledge of iLead and the
Shareholders no event has occurred that, with notice or lapse of time would
constitute a breach or default or permit termination, modification or
acceleration under the Lease; and

 

(4)           the
rental set forth in each Lease is the actual rental being paid, and there are
no separate agreements or understandings regarding the amount of rent.

 

4.11         Personal
Property.

 

(a)           Schedule
4.11(a) lists each item or distinct group of machinery, equipment, tools,
supplies, furniture, fixtures, vehicles, rolling stock and other tangible
personal property with a cost in excess of $5,000 used in the Business and
owned or leased by iLead (the “Tangible Personal Property”).

 

(b)           iLead has
delivered or made available to THK and iLead Acquisition Sub correct and
complete copies of all Contracts, including equipment Leases, for Tangible
Personal Property and any and all ancillary documents pertaining thereto.  With respect to each Contract for Tangible
Personal Property:

 

(1)           each
Contract, together with all ancillary documents delivered pursuant to the first
sentence of this Section 4.11(b), is the legal, valid and binding obligation of
the parties thereto, enforceable against each of the parties in accordance with
the terms thereof except as enforcement may be limited by bankruptcy,
insolvency or other similar laws affecting the enforcement of creditor rights
generally or by general equity principles (regardless of whether enforcement is
sought in a proceeding in equity or at law);

 

(2)           neither
iLead nor, to the Knowledge of iLead and the Shareholders, any other party to
any lease, is in breach or default, and no event has occurred that, with notice
or lapse of time would constitute such a breach or default or permit
termination, modification or acceleration under, any lease; and

 

(3)           none of
(a) the execution and delivery by iLead and the Shareholders of this Agreement
and the other Documents, (b) the consummation by iLead and the Shareholders of
the transaction contemplated by this Agreement and the other Documents, (c) the
performance by iLead or the Shareholders of this Agreement and the other
Documents required by this Agreement will (1) conflict with or violate the
terms of any lease or (2) result in any breach or violation of or constitute a
default (or an event with notice or lapse of time or both would become a
default) under, or impair iLead’s rights or alter the rights or obligations of
any

 

18

 

third
party under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any lease.

 

(c)           All
Tangible Personal Property is adequate and usable for the use and purposes for
which it is currently used, is in good operating condition, and has been
maintained and repaired in accordance with good business practice.

 

4.12         Approval
of Directors and Shareholders.  The
directors of iLead have, at a meeting duly called and held at which all
directors of iLead were present or by a unanimous written consent:  (a) approved and declared advisable this
Agreement; (b) determined that the Merger and other transactions contemplated
by this Agreement are advisable, fair to and in the best interest of iLead and
the Shareholders; (c) recommended to the Shareholders of iLead (1) approval of
the Merger and the other transactions contemplated hereby and (2) approval and
adoption of this Agreement; and (d) directed that this Agreement be submitted
to the Shareholders of iLead for their approval and adoption.  The Shareholders of iLead have approved the
Merger and this Agreement after full disclosure to the Shareholders of the
terms of this Agreement and the transactions contemplated hereby, including without
limitation the Shareholders Employment Agreements and the Shareholder Warrant
Agreements.

 

4.13         Insurance.  iLead has furnished or made available to THK
and iLead Acquisition Sub true and complete copies of all insurance policies
and fidelity bonds covering the assets, business, equipment, properties and
operations of iLead relating to the Business, a list of which (by type,
carrier, policy number, limits, premium and expiration date) is set forth in Schedule
4.13.  All such insurance policies
are in full force and effect and will remain in full force and effect with
respect to all events occurring prior to the Effective Time.

 

4.14         Permits.  Schedule 4.14 lists all Permits used
in or otherwise required to conduct the Business.  Each of the Permits is valid and in full
force and effect.

 

4.15         Taxes.  Except as set forth in Schedule 4.15
hereto:

 

(a)           All Tax
Returns and reports in respect of Taxes required to be filed with respect to
iLead or the Business have been timely filed,

 

(b)           all Taxes
required to be shown on such returns and reports or otherwise due have been
timely paid,

 

(c)           all such
returns and reports are true, correct and complete,

 

(d)           no
adjustment relating to such returns has been proposed formally or informally by
any Governmental Authority and, to the Knowledge of iLead and the Shareholders,
no basis exists for any such adjustment,

 

(e)           there are
no pending or, to the Knowledge of iLead and the Shareholders, threatened
actions or proceedings for the assessment or collection of Taxes against iLead
or insofar as either relates to the activities or income of iLead or the
Business or could result in Liability to iLead whether joint or several any
corporation that was includible in the filing of a return with iLead on a
consolidated or combined basis,

 

19

 

(f)            no
consent under Section 341(f) of the Code has been filed with respect to iLead,

 

(g)           there are
no Tax Liens on any assets of iLead or of the Business,

 

(h)           iLead has
withheld and paid all Taxes required to have been withheld and paid in
connection with any amounts paid or owing to any employee, independent
contractor, creditor, shareholder, or other third party, and all Forms W-2 and
1099 required with respect thereto have been properly completed and timely
filed,

 

(i)            iLead has
not consented to extend the time in which any Taxes may be assessed or
collected by any taxing authority,

 

(j)            iLead has
not requested or been granted an extension of the time for filing any Tax
Return to a date later than the Closing Date,

 

(k)           there are no
Liens for Taxes (other than for current Taxes not yet due and payable) upon
iLead’s assets,

 

(l)            iLead
will not be required:

 

(1)           as a
result of a change in method of accounting for a taxable period ending on or
prior to the Closing Date, to include any adjustment under Section 481(c) of
the Code (or any corresponding provision of state, local or foreign law) in
taxable income for any taxable period (or portion thereof) beginning after the
Closing Date or

 

(2)           as a
result of any “closing agreement,” as described in Section 7121 of the Code (or
any corresponding provision of state, local or foreign law), to include any
item of income or exclude any item of deduction from any taxable period (or
portion thereof) beginning after the Closing Date,

 

(m)          iLead is
not a party to or bound by any tax allocation or tax sharing agreement and does
not have any current or potential contractual obligation to indemnify any other
Person with respect to Taxes,

 

(n)            to the
Knowledge of iLead and the Shareholders, there is no basis for any assessment,
deficiency notice, 30-day letter or similar notice with respect to any Tax to
be issued to iLead with respect to any period on or before the Closing Date,

 

(o)           iLead has
not made any payments, and is or will not become obligated (under any Contract
entered into on or before the Closing Date) to make any payments, that will not
be deductible under Section 280G of the Code (or any corresponding provision of
state, local or foreign law),

 

(p)           iLead has
not been a United States real property holding corporation within the meaning
of Section 897(c)(2) of the Code (or any corresponding provision of state,
local or foreign law) during the applicable period specified in Section
897(c)(1)(a)(ii) of the Code (or any corresponding provision of state, local or
foreign law),

 

20

 

(q)           no claim
has ever been made in writing by a taxing authority in a jurisdiction where
iLead does not file Tax Returns that iLead is or may be subject to Taxes
assessed by such jurisdiction,

 

(r)            iLead
does not have any physical presence in any foreign country, as defined in the
relevant tax treaty between the United States of America and such foreign
country,

 

(s)           true,
correct and complete copies of all income and sales Tax Returns filed by or
with respect to iLead for the past two (2) years have been furnished or made
available to THK, and

 

(t)            iLead
will not be subject to any Taxes pursuant to Section 1374 or Section 1375 of
the Code (or any corresponding provision of state, local or foreign law) with
respect to the transactions contemplated by this Agreement.

 

4.16         Labor
Matters.

 

(a)           The name,
place of employment, the current annual salary rates, bonuses, deferred or
contingent compensation, pension, accrued vacation, “golden parachute” and
other like benefits paid or payable (in cash or otherwise) in 2004 and 2005,
the date of employment and a description of position and job function of each
current salaried employee, officer, manager, consultant or agent of iLead is
accurately stated in that certain letter dated the date of this Agreement from
the Shareholders to Gerard M. Jacobs, the President and Chief Executive Officer
of THK (the “Employee Salaries Letter”).

 

(b)           No
employment, consulting, severance pay, continuation pay, termination or
indemnification agreements or other similar agreements of any nature (whether
in writing or oral) exist between iLead and any current or former shareholder,
officer, director, employee or consultant, except such indemnification as may
be provided in the Bylaws or other charter documents of iLead, copies of which
have been provided to THK.

 

(c)           iLead is
not a party to any collective bargaining agreement or other labor union
Contract applicable to persons employed by iLead and

 

(1)           there are
no controversies, strikes, slowdowns or work stoppages pending or, to the
Knowledge of iLead and the Shareholders, threatened by any employee against
iLead;

 

(2)           there are
no unfair labor practice complaints pending against iLead before the National
Labor Relations Board or any other Governmental Authority or involving any
current or former employee of iLead;

 

(3)           iLead has
complied with all applicable Laws relating to the employment of labor,
including those related to wages, hours, collective bargaining and the payment
and withholding of taxes and other sums as required by any Governmental
Authority and have withheld and paid to any appropriate Governmental Authority,
or are holding for payment not yet due to such Governmental Authority, all amounts
required to be withheld from

 

21

 

employees
of iLead and are not liable for any arrears of wages, taxes, penalties or other
sums for failure to comply with any of the foregoing;

 

(4)           iLead has
paid in full to all its employees, or adequately accrued for in accordance with
GAAP, all wages, salaries, commissions, bonuses, benefits and other
compensation due to or on behalf of its employees; provided however, that iLead’s employees have until the end of a
calendar year to use accrued vacation;

 

(5)           there is
no claim with respect to payment of wages, salary or overtime pay that has been
asserted or is now pending or threatened before any Governmental Authority with
respect to any Persons currently or formerly employed by iLead;

 

(6)           there is
no charge or proceedings with respect to a violation of any occupational safety
or health standards that has been asserted or is now pending or threatened with
respect to iLead; and

 

(7)           there is
no charge of discrimination in employment or employment practices, for any
reason, including, without limitation, age, gender, race, religion or other
legally protected category, which has been asserted and not settled or is now
pending or threatened before the United States Equal Employment Opportunity
Commission, or any other Governmental Authority in any jurisdiction in which
iLead has employed or currently employs any Person.

 

4.17         Employees
and Related Agreements; ERISA.

 

(a)           Schedule
4.17(a) contains a true and complete list of each Employee Plan and each
Employee Agreement of iLead.  iLead has
no plan or commitment, whether legally binding or not, to establish any new
Employee Plan, to enter into any Employee Agreement or to modify or to terminate
any Employee Plan or Employee Agreement (except to the extent required by law
as previously disclosed to THK, or as required by this Agreement), or has any
intention to do any of the foregoing been communicated to employees.

 

(b)           iLead has
provided to THK and iLead Acquisition Sub (1) current, true and complete
copies of each Employee Plan and each Employee Agreement, including all
amendments thereto, and trust or funding agreements with respect thereto, (2)
the two most recent annual actuarial valuations, if any, prepared for each
Employee Plan, (3) the two most recent annual reports (Series 5500 and all
schedules thereto), if any, required under ERISA in connection with each
Employee Plan or related trust, (4) a statement of alternative form of
compliance pursuant to Department of Labor Regulation §2520.104-23, if any,
filed for each Employee Plan which is an “employee pension benefit plan” as
defined in Section 3(2) of ERISA for a select group of management or highly
compensated employees, (5) the most recent determination letter received from
the IRS, if any, for each Employee Plan and related trust which is intended to
satisfy the requirements of Section 401(a) of the Code, (6) if the Employee
Plan is funded, the most recent annual and periodic accounting of Employee Plan
assets and (7) the most recent summary plan description together with the most
recent summary of modifications, if any, required under ERISA with respect to
each Employee Plan.

 

22

 

(c)           Except to
the extent any action does not have a Material Adverse Effect on iLead, (1)
iLead has performed all obligations required to be performed by it under each
Employee Plan and Employee Agreement and is not in default under or in
violation of any Employee Plan or Employee Agreement, (2) each Employee Plan
has been established and maintained in accordance with its terms and in
compliance with all requirements of Laws, (3) each Employee Plan intended to
qualify under Section 401 of the Code is so qualified and a determination
letter has been issued by the IRS to the effect that each Employee Plan is so
qualified and that each trust forming a part of any Employee Plan is exempt
from tax pursuant to Section 501(a) of the Code and, to the Knowledge of iLead
and the Shareholders, no circumstances, exist which could reasonably be
expected to adversely affect this qualification or exemption, (4) no “prohibited
transaction,” within the meaning of Section 4975 of the Code or Section 406 of
ERISA, has occurred with respect to any Employee Plan, (5) there are no
actions, proceedings, arbitrations, suits or claims pending or, to the
Knowledge of iLead and the Shareholders, threatened or anticipated (other than
routine claims for benefits), with respect to any Employee Plan or Employee
Agreement, (6) no event or transaction has occurred with respect to any
Employee Plan that would result in the imposition of any tax under Chapter 43
of Subtitle D of the Code, (7) no Employee Plan is under audit or investigation
by the IRS, the Department of Labor or other Governmental Authority and, to the
Knowledge of iLead and the Shareholders, no audit or investigation is pending
or threatened, (8) no liability under any Employee Plan has been funded or has
any obligation been satisfied with the purchase of a Contract from an insurance
company as to which iLead has received notice that insurance company is
insolvent or is in rehabilitation or any similar proceeding, (9) iLead has
timely deposited and transmitted, or accrued, all amounts withheld from
employees for contributions or premium payments for each Employee Plan into the
appropriate trusts or accounts and (10) each Employee Plan that allows loans to
plan participants has been operated in accordance with the plan’s written loan
policy; in addition, all outstanding loans from all Employee Plans are current
as of the Closing Date, and there are no loans in default.

 

(d)           iLead is
not the sponsor, and does not maintain, contribute to, or have any liability in
respect of, and has never sponsored, maintained, contributed to, or had any
liability in respect of, or been required to contribute to, an “employee
pension benefit plan” within the meaning of Section 3(2) of ERISA that is
subject to Title IV of ERISA, or a “multiple employer plan” (within the meaning
of Section 413 of the Code).

 

(e)           iLead (1)
does not maintain or contribute to any Employee Plan that provides, or has any
liability to provide, life insurance, medical, severance or other employee
welfare benefits to any employee upon his or her retirement or termination of
employment, except as may be required by Section 4980B of the Code or otherwise
at the expense of the employee, and (2) does not have any obligation or
agreement (whether in oral or written form) to any employee (either
individually or to employees as a group) that such employee(s) would be
provided with life insurance, medical, severance or other employee welfare
benefits upon their retirement or termination of employment, except to the
extent required by Section 4980B of the Code or otherwise at the expense of the
employee.

 

(f)            The
execution of, and performance of this Agreement and the Other Documents and the
transactions contemplated hereby and thereby will not constitute an event under
any Employee Plan or Employee Agreement that will result in any payment
(whether of

 

23

 

severance
pay or otherwise), acceleration, forgiveness of indebtedness, vesting,
distribution, increase in benefits or obligation to fund benefits with respect
to any employee.

 

(g)           No
Employee Plan or Employee Agreement is funded by a trust described in Section
501(c)(9) of the Code.

 

(h)           iLead is
not (1) a Shareholders of a “controlled group of corporations,” or an “affiliated
service group” within the meanings of Sections 414(b) or (m) of the Code, (2)
required to be aggregated with any Person under Section 414(o) of the Code; or
(3) under “common control,” with any Person within the meaning of Section
4001(a)(14) of ERISA or Section 414(c) of the Code.

 

(i)            iLead has
complied with the requirements of the HIPAA Medical Privacy Regulations with
respect to each Employee Plan that is subject to such requirements and with
respect to iLead’s status as a “covered entity” as defined therein.

 

4.18         Environmental
and Health/Safety Matters.

 

(a)           To the
Knowledge of iLead and the Shareholders, iLead is and has at all times been in
compliance with Environmental Laws applicable to assets used in the Business (“Business
Assets”), and the Business and iLead is not currently liable for any
penalties, fines or forfeitures for failure to comply with Environmental Laws,
except for any non-compliance as would not have a Material Adverse Effect on
iLead.

 

(b)           iLead has
obtained, or caused to be obtained (except where such failure to obtain has not
resulted in a Material Adverse Effect), and, to the Knowledge of iLead and the
Shareholders, is in compliance with, all applicable Permits required by
Environmental Laws and necessary for the operation of the Business, except for
any non-compliance as would not have a Material Adverse Effect on iLead.  Copies of such Permits have been provided to
THK and iLead Acquisition Sub.  There are
no administrative or judicial investigations, notices, claims or other
proceedings pending or, to the Knowledge of iLead and the Shareholders,
threatened by any Governmental Authority or third parties against iLead or any
of the Business Assets which question the validity or entitlement of iLead to
any Permit wherein an unfavorable decision, ruling or finding could have a
Material Adverse Effect on iLead.

 

(c)           iLead has
neither received nor does it or the Shareholders have Knowledge of any non-compliance
order, warning letter, investigation, notice of violation, claim, suit, action,
judgment, or administrative or judicial proceeding pending or threatened
against or involving iLead, issued by any Governmental Authority or third party
with respect to any Environmental Laws, which has not been resolved to the
satisfaction of the issuing Governmental Authority or third party and which could
have a Material Adverse Effect on iLead.

 

(d)           To the
Knowledge of iLead and the Shareholders, iLead has not generated, manufactured,
used, recycled, transported, transferred, stored, handled, treated, discharged,
Released or disposed of, nor has it allowed or arranged for any third parties
to generate, manufacture, use, recycle transport, transfer, store, handle,
treat, discharge, Release or dispose of, Hazardous Substances or other Waste
(which, for purposes of this Section 4.18(d) only,

 

24

 

Waste
shall include white goods and recyclable materials) to or at any location,
including property currently or previously owned by it, other than a site
lawfully allowed or permitted by the Environmental Laws or other applicable
requirements of Laws to receive such Hazardous Substances or other Waste for
such purposes, nor has it performed, arranged for or allowed by any method or
procedure such generation, manufacture, use, recycling, transportation,
transfer, storage, treatment, spillage, leakage, dumping, discharge, Release or
disposal in contravention of any Environmental Laws, except such as would not
have a Material Adverse Effect on iLead.

 

(e)           To the
Knowledge of iLead and the Shareholders, iLead neither caused, nor allowed to
be caused or permitted, either by action or inaction, a Release or discharge,
or threatened Release or discharge, of any Hazardous Substance on, into or
beneath the surface of any parcel owned or leased by iLead or to any properties
adjacent thereto which would have a Material Adverse Effect on iLead.  To the Knowledge of iLead and the
Shareholders, there has neither occurred, nor is there presently occurring, a
Release or discharge, or threatened Release or discharge, of any Hazardous Substances
on, into or beneath the surface of any parcel owned or leased by iLead or to
any properties adjacent thereto which would have a Material Adverse Effect on
iLead.

 

(f)            To the
Knowledge of iLead and the Shareholders, iLead has neither generated, handled,
manufactured, treated, stored, used, recycled, shipped, transported,
transferred, or disposed of, nor has it allowed or arranged, by Contract or
otherwise, for any third parties to generate, handle, manufacture, treat,
store, use, recycle, ship, transport, transfer or dispose of, any Hazardous
Substances or other Waste to or at a site which, pursuant to Environmental Laws
or any similar state law has been placed or been proposed for placement on the
National Priorities List or its state equivalent.  Neither iLead nor the Shareholders have
received written notice, and neither iLead nor the Shareholders have Knowledge
of any facts which could give rise to any notice, that iLead is a potentially
responsible party for a federal or state environmental cleanup site or for
corrective action under Environmental Laws. 
iLead has not submitted nor was required to submit any notice pursuant
to Section 103(c) of CERCLA with respect to any parcel owned or leased by
iLead.  iLead has not received any
written request for information in connection with any federal or state
environmental cleanup site, or in connection with any of real property or
premises where iLead has transported, transferred or disposed of Hazardous
Materials or other Wastes.  iLead has
neither been required, nor has it undertaken, any response or remedial actions
or clean up actions of any kind at the request of any Governmental Authorities
or at the request of any other third party. 
To the Knowledge of iLead and the Shareholders, iLead has no liability
under any Environmental Laws for personal injury, property damage, natural
resource damage, or clean up obligations.

 

(g)           To the
Knowledge of iLead and the Shareholders, there are no Aboveground Storage Tanks
or Underground Storage Tanks on any of the Property.

 

(h)           Schedule
4.18(h) is a true and complete schedule of (1) all material environmental
audits, assessments, investigations or occupational health studies, of which
iLead or the Shareholders has Knowledge, undertaken by, or on behalf of, iLead,
relating to or affecting iLead or any of the Property, and (2) all citations
issued under OSHA, or similar state or local statutes, laws, ordinances, codes,
rules, regulations, orders, rulings, or decrees, relating to or affecting iLead
or any of the Property.

 

25

 

(i)            Schedule
4.18(i) contains a list of the Business Assets which have been confirmed to
contain PCBs or “asbestos” or “asbestos containing material” (as such terms are
identified under the Environmental Laws). 
iLead has operated and continues to operate in compliance with all
Environmental Laws governing the handling, use and exposure to and disposal of
PCBs or asbestos or asbestos containing materials, except where such
noncompliance would not have a Material Adverse Effect on iLead There are no
claims, actions, suits, governmental investigations or proceedings brought by
any Governmental Authority or third party pending, or, to the Knowledge of
iLead and the Shareholders, threatened against or directly affecting iLead, the
Business Assets or the Business relating to the use, handling or exposure to
and disposal of PCBs or asbestos or asbestos containing materials in connection
with their assets and operations.

 

(j)            Schedule
4.18(j) is a true and complete schedule of the operations and activities,
and locations thereof, which have been conducted and are being conducted by
iLead on any of the Property which have involved the generation, accumulation,
storage, treatment, transportation, labeling, handling, manufacturing, use,
recycling, spilling, leaking, dumping, discharging, release or disposal of any
Hazardous Substances.

 

4.19         Certain
Interests.

 

(a)           Except as
set forth on Schedule 4.19, no officer, director or Shareholder of
iLead, and no relative or spouse (or relative of such spouse) who resides with,
or is a dependent of, any Shareholder, officer or director:

 

(1)           has any
direct or indirect financial interest in any competitor, supplier or customer
of iLead, provided, however, that the ownership of securities representing no
more than 3% of the outstanding voting power of any competitor, supplier or
customer, and which are also listed on any national securities exchange or
traded actively in the national over-the-counter market, shall not be deemed to
be a “financial interest” so long as the Person owning the securities has no
other connection or relationship with the competitor, supplier or customer;

 

(2)           owns,
directly or indirectly, in whole or in part, or has any other interest in any
tangible or intangible property which iLead uses or has used in the conduct of
the Business or otherwise; or

 

(3)           has
outstanding any Indebtedness to iLead.

 

(b)           iLead has
no Indebtedness, Liabilities or any other obligation of any nature whatsoever
to, any officer, manager or Shareholders of iLead or to any relative or spouse
(or relative of such spouse) who resides with, or is a dependent of, any such
officer, manager or member.

 

4.20         Litigation.  Except as set forth on Schedule 4.20,
there are no Actions pending or, to the Knowledge of iLead and the
Shareholders, threatened against, relating to or affecting iLead or the
Business before any Court, Governmental Agency or any arbitrator or
mediator.  Neither iLead nor the Shareholders
is subject to any Order, including but not limited to any Order which prohibits
or restricts the consummation of the transactions contemplated hereby or
restricts in any way the ownership or operations of iLead or the Business.

 

26

 

4.21         Intellectual
Property and Web Sites.  Except for
Software, content, or other similar services/property purchased on a
non-exclusive basis through Contracts with vendors all of which Contracts are
in full force and effect and none of which Contracts are currently subject to
any contractual disputes nor have been threatened with cancellation or
non-renewal by such vendors, iLead has the exclusive rights, titles and
interests in and to any and all Intellectual Property and all of the Web Sites
used by, being developed by, or otherwise associated with the present or
anticipated future operations of the Business.

 

4.22         Inventories.  The Inventory of iLead as reflected in the
Company Financials are in proper working order and of merchantable quality,
which can be sold in the ordinary course of the Business in a fashion
consistent with the historical sales results, efficiencies, terms, conditions,
pricing, and inventory turnover patterns of the Business, subject to any
reserve for inventory of the face of the Company Financials as adjusted for the
passage of time through the date of this Agreement.

 

4.23         Receivables.  The Receivables of iLead as reflected in the
Company Financials, consist solely of bona fide
accounts receivable generated by the Business in the ordinary course, which can
be collected in the ordinary course of the Business in a manner consistent with
the historical collection results, efficiencies, policies, procedures and
patterns of the Business, subject to any reserve for bad debts on the face of
the Company Financials as adjusted for the passage of time through the date of
this Agreement.

 

4.24         Residency;
Investment Sophistication; Background.  Each of the Shareholders (a) is a
resident of the State of Utah, (b) is an “accredited investor” as defined in
Section 501 of Regulation D promulgated under the Securities Act and capable of
evaluating the potential risks of an investment in THK Common Stock, (c) has
received, read and understands the public filings of THK with the SEC,
including but not limited to THK’s amended Annual Reports on amended Forms
10-KSB for the years ended December 31, 2003, December 31, 2004 and December
31, 2005, including the amended and restated financial statements and “Risk
Factors” contained therein, and THK’s amended Quarterly Reports on amended
Forms 10-QSB for the quarters ended March 31, 2005, June 30, 2005 and September
30, 2005 and Current Reports on Form 8-K, the Registration Statement on Form
SB-2, as amended (SEC File No. 333-121761), and the Proxy Statement for its
Annual Meeting scheduled for March 14, 2006 and amendments to any of the
foregoing filed with the SEC, including the amended and restated financial
statements contained therein, (d) has been afforded a full opportunity to
conduct such additional “due diligence” investigation of THK, its Subsidiaries
and iLead Acquisition Sub, including their respective businesses, management,
balance sheets, financial results, prospects and risk factors as the
Shareholders have deemed appropriate, (e) has retained and has been advised by
his own competent lawyers and accountants in regard to the preparation,
negotiation and execution of this Agreement and the transactions contemplated
herein, (f) has never been charged, indicted or convicted of any criminal
offense, excepting only minor traffic violations, and (g) is acquiring the
shares of THK Common Stock issued as part of the Merger Consideration in good
faith solely for his own account with the present intention of holding such
shares for purposes of investment, and is not acquiring such shares with a view
to or for subdivision, distribution, fractionalization or distribution thereof,
in whole or in part, or as an underwriter or conduit to other beneficial owners
or subsequent purchasers.

 

27

 

4.25         Brokers.  Except as set forth on Schedule 4.25,
neither iLead nor the Shareholders have employed any financial advisor, broker,
finder, consultant or advisor, and neither iLead nor the Shareholders have
incurred nor will incur any broker’s, finder’s, investment banking, consultant,
advisory or similar fees, commissions or expenses in connection with the
transactions contemplated by this Agreement.

 

4.26         Banks and
Brokerage Accounts.  Schedule
4.26 sets forth (1) a true and complete list of the names and locations of
all banks, trust companies, securities brokers and other financial institutions
at which iLead has an account or safety deposit box or maintains a banking,
custodial, trading or other similar relationship, (2) a true and complete list
and description of each account, safety deposit box and relationship,
indicating in each case the account number, the names of the respective
officers, employees, agents or other similar representatives of iLead having
signatory power with respect thereto and the current balances in the accounts
or safety deposit boxes, and (3) a list of each debenture, note, and other
evidence of indebtedness, stock, security (including rights to purchase and
derivative securities or rights), interests in joint ventures and general and
limited partnerships, mortgage loans and other investment or portfolio assets
owned of record or beneficially by iLead, the legal name of the record and
beneficial owner thereof, the location of the certificates, if any, therefor,
the maturity date, if any, and any stock or bond powers or other authority for
transfer granted with respect thereto.

 

4.27         Indebtedness
and Liabilities.  On the Closing
Date, iLead will be free and clear of all Indebtedness and Liabilities, including
but not limited to liens, obligations, claims and encumbrances, actual or
contingent, known or unforeseen, including but not limited to bank loans,
shareholder loans, payroll claims, bonus and commission claims, unpaid payroll
taxes, other unpaid taxes, pension obligations, employment discrimination
claims, sexual harassment claims, breach of contract claims, credit card
chargebacks, lawsuits, stock options, stock warrants, phantom stock plans,
stock appreciation rights or plans, deferred compensation agreements, purchase
agreements that cannot be cancelled by iLead at any time, consulting
agreements, employment agreements other than the Employment Agreement referred
to in Section 9.1(h)(4), severance agreements or “change of control” agreements
of any nature, and any other liabilities of any nature whatsoever
(collectively, “Claims of Any Nature”) excepting only those liabilities
shown on the Company Financials, as previously provided by the Shareholders to
THK, and (ii) liabilities or obligations that have arisen in the ordinary
course of iLead’s business from December 31, 2005 until the Closing Date (the “Approved
Liabilities”).

 

4.28         Contracts.  Schedule 4.28 sets forth a list, as of
the date of this Agreement, of all Contracts to which iLead is a party
including:

 

(a)           any
Contract (or group of related Contracts) for the purchase or sale of raw
materials, commodities, supplies, products, or other personal property, or for
the furnishing or receipt of services, not entered into in the ordinary course
of business;

 

(b)           any
Contract concerning a partnership, joint venture or limited liability company
venture;

 

(c)           any
Contract (or group of related Contracts) under which it has created, incurred,
assumed, or guaranteed any Indebtedness for borrowed money, in excess of
$10,000 or

 

28

 

pursuant
to which a Lien has been placed on any of its assets, tangible or intangible,
in excess of $10,000;

 

(d)           any
Contract concerning confidentiality or non-competition;

 

(e)           any
Contract between the Shareholders or their Affiliates and iLead;

 

(f)            any
Contract under which iLead has advanced or loaned monies to any manager,
officer or employee;

 

(g)           any
Contract which restricts iLead from engaging in the Business anywhere in the
world;

 

(h)           any
settlement or similar Contract, the performance of which will require iLead to
pay, or entitles iLead to receive, after the Closing Date consideration in
excess of $10,000;

 

(i)            any
Contract relating to any acquisition, divestiture, merger or similar
transaction involving consideration in excess of $10,000, which contains
representations, warranties, covenants, indemnities or other obligations which
are still in effect;

 

(j)            any
powers of attorney (other than a power of attorney given in the ordinary course
of business for routine Tax matters);

 

(k)           any
Contract relating to pending capital expenditures of iLead in excess of
$10,000;

 

(l)            any
Contract under which iLead has advanced or loaned any other Person amounts in
the aggregate exceeding $10,000; and

 

(m)          any other
Contract (or group of related Contracts) the performance of which involves
consideration in excess of $50,000.

 

iLead has
delivered, or made available, to THK, a correct and complete copy of each
written Contract listed in Schedule 4.28 (as amended to date) and a
written summary setting forth the material terms and conditions of each oral
Contract, if any, referred to in Schedule 4.28.  Each Contract is the legal, valid, binding
obligation of the parties thereto, enforceable against each party except as
enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or affecting creditor rights generally
or by general equity principles (regardless of whether enforcement is sought in
a proceeding in equity or at law).  No
party to any Contract is in breach or default, and no event has occurred that
with notice or lapse of time would constitute a material breach or default, or
permit termination, modification, or acceleration, under the Contract.

 

4.29         Spyware/Adware.  To the Knowledge of iLead and the
Shareholders, iLead has not received any complaints of “adware,” “spyware” or “cookie
stuffing” arising from or related to the Business of iLead.  iLead does not engage or utilize “adware,” “spyware”
or “cookie

 

29

 

stuffing” and has
taken commercially reasonable efforts to avoid such practices by its employees
and agents.

 

4.30         Material
Information.  All material
information concerning iLead has been provided by iLead and the Shareholders to
THK and iLead Acquisition Sub.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THK, iLEAD ACQUISITION SUB AND THK LLC

 

In order to
induce the Shareholders and iLead to enter into this Agreement and to consummate
the transactions contemplated hereby, THK and iLead Acquisition Sub hereby
jointly and severally represent and warrant to each of the Shareholders and
iLead, as of the date of this Agreement, as follows:

 

5.1           Organization and
Qualification.  Each of THK
and iLead Acquisition Sub is a corporation duly organized, validly existing and
in good standing under the laws of its respective state of incorporation with
full power and authority to own, lease and operate its properties and to
conduct its business as now conducted, except where failure to be so organized,
existing and in good standing would not reasonably be expected to have a
Material Adverse Effect on THK or iLead Acquisition Sub.  Each of THK and iLead Acquisition Sub is duly
qualified or licensed as a foreign corporation in each of the jurisdictions
listed on Schedule 5.1 which are the only jurisdictions in which the failure to
be so licensed or qualified could have a Material Adverse Effect on THK or
iLead Acquisition Sub.  Each of THK,  iLead Acquisition Sub, THK LLC has made
available to the Shareholders and iLead true, complete and correct copies of
its charter or organizational documents, as amended to date, including the
respective Articles of Incorporation and Bylaws or Certificate of Formation and
limited liability company agreement of each. 
All of the issued and outstanding shares of common stock of iLead
Acquisition Sub, or other equity interests in, iLead Acquisition Sub are (a)
duly authorized, validly issued, fully paid, non-assessable, (b) owned,
directly or indirectly, by THK free and clear of all Liens, and (c) free of any
restriction, including, without limitation, any restriction which prevents the
payment of dividends to THK, or otherwise restricts the right to vote, sell or
otherwise dispose of such ownership interest other than restrictions under the
Securities Act and state securities laws. 
THK LLC is a limited liability company and is wholly-owned by THK.  THK LLC is duly organized, validly existing
and in good standing under the laws of the state of Delaware and is qualified
to do business in the state of Utah.

 

5.2           Capital Structure.  The authorized capital stock of THK consists
of (a) 200,000,000 shares of THK Common Stock and (b) 5,000,000 shares of “blank
check” Preferred Stock, 500,000 shares of which have been designated “Series
One Preferred Stock” and 26,500 shares of which have been designated “Series A
Convertible Preferred Stock”.  As of
April 19, 2006:  (1) 44,561,836
shares of THK Common Stock were issued and outstanding, (2) 26,500 shares of
Series A Convertible Preferred Stock were issued and outstanding and no shares
of Series One Preferred Stock were issued or outstanding, (3) 2,500,000 shares
of THK Common Stock were held in the treasury of THK, (4) 17,199,345 shares of
THK Common Stock were duly reserved for future issuance pursuant to warrants or
options issued or granted by THK and

 

30

 

(5) 13,250,000
shares of THK Common Stock were duly reserved for future issuance pursuant to
conversion of the Series A Convertible Preferred Stock.  All outstanding shares of THK Common Stock
are, and all shares of THK Common Stock to be issued in connection with the
consummation of the transactions contemplated by this Agreement will be, when
issued in accordance with the terms hereof, duly authorized, validly issued,
fully paid and non-assessable, and not subject to, or issued in violation of,
any kind of preemptive, subscription or any kind of similar rights.  There are no bonds, debentures, notes or
other indebtedness of THK having the right to vote (or convert into securities
having the right to vote) on any matters on which stockholders of THK may
vote.  Except as described on Schedule
5.2(a) hereof, there are no outstanding securities, options, warrants,
calls, rights, commitments, agreements, arrangements or undertakings of any
kind (contingent or otherwise) to which THK is a party or bound obligating THK
to issue, deliver or sell, or cause to be issued, delivered or sold, additional
shares of capital stock or other voting securities of THK or obligating THK to
issue, grant, extend or enter into any agreement to issue, grant or extend any
security, option, warrant, call, right, commitment, agreement, arrangement or
undertaking.  Except as set forth on Schedule
5.2(b), neither THK nor iLead Acquisition Sub is subject to any obligation
or requirement to provide funds for, or to make any investment (in the form of
a loan or capital contribution) to, or in, any Person.  All of the issued and outstanding shares of
THK Common Stock were issued in compliance with all applicable federal and
state securities laws.

 

5.3           Authorization;
Enforceability.  Each of
THK,  iLead Acquisition Sub and THK LLC
has the corporate or company power and authority to execute, deliver and
perform their respective obligations under this Agreement and the other
Documents to which it is or they are a party. 
The execution, delivery and performance of this Agreement and the other
Documents to which it is or they are a party and the consummation of the
transactions contemplated herein and therein have been duly authorized and
approved by the board of directors of THK, the shareholder and board of
directors of iLead Acquisition Sub and managers and members of THK LLC, and no
other action by either entity or its equity holders is necessary to consummate
the transactions contemplated by this Agreement and the other Documents.  This Agreement and each of the other
Documents to be executed and delivered by each of THK, iLead Acquisition Sub
and THK LLC have been duly executed and delivered by, and constitute the legal,
valid and binding obligations of, each of them, enforceable against each of
them, in accordance with their terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting creditor rights generally or by general equity
principles (regardless of whether enforcement is sought in a proceeding in
equity or at law).

 

5.4           No Violation or
Conflict.  None of (a) the
execution and delivery by THK,  iLead
Acquisition Sub and THK LLC of this Agreement and the other Documents to be
executed and delivered by each of THK, 
iLead Acquisition Sub and THK LLC, (b) consummation by each of THK, iLead
Acquisition Sub and THK LLC of the transactions contemplated by this Agreement
and the other Documents, or (c) the performance of this Agreement and the other
Documents required by this Agreement to be executed and delivered by each of
THK, iLead Acquisition Sub and THK LLC at the Closing, will (1) conflict with
or violate the charter documents of any of them, (2) conflict with or violate
any Law, Order or Permit applicable to any of them or by which their properties
are bound or affected, or (3) result in any breach or violation of or
constitute a default (or an event that with notice or lapse of time or both
would become a default)

 

31

 

under, or impair
the rights of THK,  iLead Acquisition Sub
or THK LLC or alter the rights or obligations of any third party under, or give
to others any rights of termination, amendment, acceleration or cancellation
of, or result in the creation of any Lien on any of the properties or assets of
either THK, iLead Acquisition Sub or THK LLC pursuant to, any Contract, Permit
or other instrument or obligation to which THK, iLead Acquisition Sub or THK
LLC is a party or by which THX, iLead Acquisition Sub or THK LLC or its
properties are bound or affected except, in the case of clause (2) or (3)
above, for any conflict, breach, violation, default or other occurrence that
would not individually or the aggregate, have a Material Adverse Effect on THK,
iLead Acquisition Sub or THK LLC.

 

5.5           Governmental
Consents and Approvals.  Except
as set forth on Schedule 5.5, the execution, delivery and performance of
this Agreement and the other Documents by each of THK, iLead Acquisition Sub
and THK LLC do not and will not require any consent, approval, authorization,
Permit or other order of, action by, filing with or notification to, any
Governmental Authority.

 

5.6           Litigation.  Except as set forth on Schedule 5.6,
there are no Actions pending or, to the Knowledge of THK, threatened, against
THK, iLead Acquisition Sub or THK LLC, which, if adversely determined, would
have a Material Adverse Effect on THK.

 

5.7           Interim Operations.  iLead Acquisition Sub and THK LLC were formed
solely for the purpose of engaging in the transactions contemplated by this
Agreement, and neither of them have engaged in any other business activities or
conducted its operations except as contemplated in this Agreement.

 

5.8           Brokers.  Neither THK, 
iLead Acquisition Sub nor THK LLC has employed any financial advisor,
broker or finder, and neither THK, iLead Acquisition Sub nor THK LLC has
incurred and will not incur any broker’s, finder’s, investment banking or
similar fees, commissions or expenses in connection with the transactions
contemplated by this Agreement.

 

5.9           SEC
Filings; Financial Statements; S-3 Status.

 

(a)           THK has
timely filed all forms, reports and documents required to be filed by it with
the SEC since January 1, 2005 through the date of this Agreement (collectively,
the “SEC Reports”).  As of the
respective dates they were filed (and if amended or superceded by a filing
prior to the date of this Agreement, then on the date of such filing), none of
the SEC Reports contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to make
the statements made therein, in the light of the circumstances under which they
were made, not misleading.

 

(b)           Except as
set forth on Schedule 5.9, each of the consolidated financial statements
(including, in each case, any notes thereto) contained in the SEC Reports was
prepared in accordance with GAAP applied on a consistent basis throughout the
periods indicated (except as may be indicated in the notes thereto or, in the
case of unaudited statements, as permitted by Form 10-QSB or 8-K promulgated by
the SEC) and each presented fairly, in all material respects, the consolidated
financial position and results of operations of THK and its consolidated
subsidiaries as at the respective dates thereof and for the respective periods

 

32

 

indicated
therein, except as otherwise noted therein (subject, in the case of unaudited
statements, to normal and recurring year-end adjustments which were not and are
not expected, individually or in the aggregate, to be material).

 

(c)           THK meets
the requirements for the use of the Form S-3 Registration Statement for the
registration of the THK Common Stock acquired by the Shareholders pursuant to
the Stock Consideration and Earnout Payment.

 

5.10         Investigation and
Evaluation.  THK, iLead
Acquisition Sub and THK LLC acknowledge that (i) they are experienced in the
operation of the type of business conducted by iLead; (ii) THK, iLead
Acquisition Sub and THK LLC and their directors, officers, managers, attorneys,
accountants and advisors have been given the opportunity to examine to the full
extent deemed necessary and desirable by them all books, records and other
information with respect to the iLead; (iii) THK, iLead Acquisition Sub and THK
LLC have taken full responsibility for determining the scope of their
investigations of iLead and for the manner in which such investigations have
been conducted, and have examined iLead to THK’s, iLead Acquisition Sub’s and
THK LLC’s full satisfaction; (iv) THK, iLead Acquisition Sub and THK LLC are
fully capable of evaluating the adequacy and accuracy of the information
obtained by them in the course of such investigations; (v) THK, iLead
Acquisition Sub and THK LLC have not relied on iLead with respect to any matter
in connection with their evaluation of iLead other than the representations and
warranties of iLead specifically set forth in Article IV or elsewhere in this
Agreement or in the Schedules hereto; and (vi) iLead is making no
representations or warranties, express or implied, of any nature whatever with
respect to iLead other than the representations and warranties of iLead
specifically set forth in Article IV or elsewhere in this Agreement or in the
Schedules hereto.

 

5.11         Forecasts,
Projects, Etc.  THK,  iLead Acquisition Sub and THK LLC acknowledge
that (i) they have taken full responsibility for evaluating the adequacy,
completeness and accuracy of various forecasts, projections, opinions and
similar material previously furnished to them by iLead in connection with their
investigation of iLead and its related assets and liabilities; (ii) there
are uncertainties inherent in attempting to make projections and forecasts and
render opinions; (iii) THK, iLead Acquisition Sub and THK LLC are familiar
with such uncertainties; and (iv) THK, iLead Acquisition Sub and THK LLC
are not relying on any projections, forecasts or opinions furnished to them by
iLead.

 

5.12         Material
Information.  All material
information concerning THK, iLead Acquisition Sub and THK LLC has been made
available to the Shareholders and iLead.

 

ARTICLE VI

COVENANTS

 

6.1           Performance.  Subject to the terms and conditions provided
in this Agreement, each of the Parties shall use its respective best efforts in
good faith to take or cause to be taken as promptly as practicable all
reasonable actions that are within its power to cause to be performed and
fulfilled those of the conditions precedent to its obligations to consummate
the transactions

 

33

 

contemplated by
this Agreement that are dependent upon its actions, including obtaining all
necessary approvals, to the end that the transactions contemplated hereby will
be fully and timely consummated, it being agreed that, subject to the terms and
conditions provided in this Agreement, the Parties will use their best efforts
to close the transactions contemplated by this Agreement as soon as practicable
after the execution of this Agreement.

 

6.2           Regulatory
and Other Authorizations; Notices and Consents.

 

(a)           Each
of the Parties will use its best efforts to obtain all authorizations,
consents, orders and approvals of all Governmental Authorities and officials
that may be or become necessary for its execution and delivery of, and the
performance of its obligations pursuant to, this Agreement and the other
Documents and will cooperate fully with each of the Parties in promptly seeking
to obtain all such authorizations, consents, orders and approvals.

 

(b)           Each
of the Parties shall give promptly such notices to third parties and use its best
efforts to obtain such third party consents and estoppel certificates as the
Parties may deem necessary or desirable in connection with the consummation of
the transactions contemplated by this Agreement and the other Documents.  The Parties shall cooperate with each other
and use all reasonable efforts to assist in giving such notices and obtaining
such consents and estoppel certificates.

 

6.3           Notification.  From the date hereof until the Closing, each
Party to this Agreement shall promptly notify the other Parties in writing of
the occurrence, or pending or threatened occurrence, of (a) any event that
would constitute a breach or violation of this Agreement by any Party or that
could reasonably be anticipated to cause any representation or warranty made by
the notifying Party in this Agreement to be false or misleading in any respect
(including without limitation, any event or circumstance which would have been
required to be disclosed on the applicable disclosure Schedule if such event or
circumstance occurred or existed on or prior to the date of this Agreement),
and (b) all other material developments outside the ordinary course of business
affecting the assets, Liabilities, business, financial condition, operations,
results of operations, customer or supplier relations, employee relations,
projections or prospects of such Party, it being agreed that any filing made by
THK with the SEC shall be deemed to have been delivered to iLead and the
Shareholders and to satisfy the obligations of THK and iLead Acquisition Sub
under this Section 6.3(b).  Any such
notification shall not limit or alter any of the representations, warranties or
covenants of the Parties set forth in this Agreement nor any rights or remedies
a Party may have with respect to a breach of any representation, warranty or
covenant.

 

6.4           Conduct
of Business Pending Closing.

 

(a)           At
all times prior to the Closing Date, iLead covenants and agrees that it shall
conduct the Business only in the ordinary course of its Business consistent
with past practices, and iLead shall use its commercially reasonable efforts
consistent with past practices to preserve intact the Business and to keep
available satisfactory relationships with suppliers, customers and others
having business relationships with it; provided that the Shareholders
shall be permitted to cause iLead to transfer, assign, release or otherwise
dispose of cash in excess of that required for iLead to comply with Section
9.1(j).

 

34

 

(b)           Except
in regard to the proviso in Section 6.4(a) above, from the date of this
Agreement until the Closing Date there shall not be any increases or decreases
in compensation, capital expenditures, asset sales or affiliate transactions
involving iLead and/or the Shareholders, nor shall there be any unusual cash
withdrawals, unusual payments, unusual Contracts or contract provisions, or
other unusual transactions or business practices involving iLead and/or the
Shareholders.

 

(c)           At
all times prior to the Closing Date, except as otherwise set forth in this
Agreement, iLead Acquisition Sub covenants and agrees that it will not,
directly or indirectly, conduct any business or incur any Liabilities
(contingent or otherwise).

 

(d)           iLead
and the Shareholders agree that during the period from the date hereof until
the Closing Date, iLead and the Shareholders shall refrain from entering into,
participating in, or responding to any negotiations, discussions, Contracts,
letters of intent, or other arrangements of any nature with any third parties
(other than THK and iLead Acquisition Sub) regarding a disposition of iLead’s
Business or assets, the sale of the capital stock of iLead or any actions which
might have the effect of impeding, delaying or making more costly the Merger; provided,
however, that the agreement in this Section 6.4(d) shall automatically
terminate if THK has not satisfied the condition set forth in Section 9.1(k) on
or before May 27, 2006.

 

6.5           Tax-Deferred
Reorganization.  Subject to Section
10.6 hereof, none of the Parties or their Affiliates, before or after the
Closing, shall take or omit to take any action, if the act or failure to act
might interfere with the treatment of the Merger and the Final Merger,
considered together as a single integrated transaction, as a tax-deferred
reorganization under Section 368 of the Code.

 

6.6           Post
Closing Bonus Pool.  In the event the
Shareholders are entitled to any Earnout Payments pursuant to Article VIII, THK
shall cause additional capital to be contributed to THK LLC to create a bonus
pool (the “Bonus Pool”).  The
Bonus Pool shall be used to pay bonuses to the pre-merger employees of iLead
identified in Schedule 6.6 (the “Pre-Merger Employees”).  The amount of additional capital to be
contributed by THK to the Bonus Pool shall be an amount equal to five percent
(5%) of the Earnout Payment (the “Bonus Pool Amount”), before taking
into account deduction of the Bonus Pool Amount, it being understood and agreed
that the cash portion of the Earnout Payment paid to the Shareholders shall be
decreased by an amount equal to the Bonus Pool Amount.  Distribution of the Bonus Pool among the
Pre-Merger Employees shall be determined by Whittingham if and when the Bonus
Pool payments are made.  The obligations
of THK under this Section shall survive the Closing.

 

6.7           Final
Merger.  As soon as reasonably
practicable following the Closing, but at least one business day after the
business day of the Effective Time and in no event later than the close of
business on the fifth business day immediately following the business day of
the Effective Time, iLead Surviving Company shall merge with and into THK
LLC.  From and after the effectiveness of
the Final Merger, the separate corporate existence of iLead Surviving Company
shall cease and THK LLC shall continue as the surviving entity in the Final
Merger.  Subject to Section 10.6, THK and
THK LLC shall take all such steps and actions as shall be

 

35

 

reasonably
required to cause iLead Surviving Company and THK LLC to consummate the Final
Merger as set forth in this Section 6.7.

 

ARTICLE VII

EMPLOYMENT MATTERS

 

7.1           Current
Employees.  The aggregate annual base
salary of each person employed by THK LLC shall initially be as set forth in
the Employee Salaries Letter.  Subject to
Section 7.2, THK LLC shall establish a bonus and commission plan that will
allow each non-management employee the opportunity to earn the same bonus and
commission as could have been earned during the calendar year in which the
Closing Date occurs pursuant to iLead’s bonus and commission plans.  Unless otherwise determined by Whittingham
but subject to Section 7.2, each non-management employee will receive base
compensation no less than the base compensation (or in the case of bonus or
commissioned employees, the opportunity to earn not less than the bonus or
commission structure) provided to such non-management employee is employed by
iLead immediately prior to the Closing Date and provided further that nothing
contained herein shall be deemed to constitute an employment agreement or
entitle any person to employment with THK LLC.

 

7.2           Management
of THK LLC.

 

(a)           From and
after the Effective Time, until his respective successor is duly elected and
qualified, Whittingham shall serve as the President of THK LLC pursuant to the
Whittingham Employment Agreement, with authority and responsibility to manage
and control the day-to-day operations of THK LLC pursuant to the Certificate of
Formation and limited liability company agreement of THK LLC and subject to the
overall control of the board of managers of THK LLC and THK.

 

(b)           Notwithstanding
the provisions of clause (a) above, neither THK LLC nor any of its Subsidiaries
may take or agree to take, and the Shareholders shall not cause, assist or
participate in any fashion in THK LLC or any of its Subsidiaries taking or
agreeing to take, any of the following actions, without the prior express
approving vote of the board of directors of THK LLC and THK, respectively:

 

(1)           amend the
Certificate of Formation and limited liability company agreement of THK LLC;

 

(2)           wind-up,
liquidate, dissolve or reorganize THK LLC, or adopt a plan or proposal
contemplating any of the foregoing;

 

(3)           approve
the annual budget of THK LLC for any fiscal year, or approve any course of
action which is likely to cause THK LLC to incur expenses or to make capital
expenditures in amounts materially different from the amounts set forth in the
relevant budget;

 

(4)           elect or
remove officers of THK LLC;

 

(5)           change the
base or bonus compensation structure of any of the senior management level
employees of THK LLC;

 

36

 

(6)           enter
into, modify or terminate any employment agreements, severance agreements,
profit sharing plans, pension plans, or similar agreements with any employee
of, or consultant to, THK LLC;

 

(7)           issue
securities of THK LLC, including debt or equity securities, options, rights or
warrants, or any other securities which are convertible into or exchangeable
for common stock or other equity interests of THK LLC;

 

(8)           register
any securities of THK LLC;

 

(9)           merge,
consolidate or combine THK LLC with any other corporation, partnership or other
entity;

 

(10)         sell assets
of THK LLC, other than in the ordinary course of business;

 

(11)         purchase,
sell, lease, acquire or dispose of stock or assets valued at $25,000 or more,
including acquiring another company, division or line of business (other than
as provided for in THK LLC’s annual budget approved in accordance with this
Section 7.2);

 

(12)         declare or
pay any distribution in respect of any securities of THK LLC, or redeem,
acquire or retire any securities;

 

(13)         make, or
commit to make, during any fiscal year capital expenditures or enter into
capital leases (other than capital expenditures and capital leases provided for
in THK LLC’s annual budget approved in accordance with this Section 7.2) which,
in the aggregate, exceed $25,000;

 

(14)         enter into
any Contract, commitment or arrangement of any nature with any corporation,
partnership or other entity directly or indirectly owned or controlled by, or
an Affiliate of, any employee of THK LLC, or by any relative of any employee of
THK LLC;

 

(15)         borrow,
issue bonds or notes, or otherwise incur debt or guarantee any debt (other than
accounts payable incurred in the ordinary course of business, and any
borrowing, issuance of bonds or notes, or other debt or guarantees of any debt
provided for in THK LLC’s annual budget approved in accordance with this
Section 7.2);

 

(16)         mortgage,
pledge, grant a security interest, or otherwise encumber the assets of THK LLC
(other than any mortgage, pledge, grant of security interest, or other
encumbrance provided for in THK LLC’s annual budget approved in accordance with
this Section 7.2);

 

(17)         initiate or
settle any lawsuit or arbitration proceeding involving THK LLC, other than
actions to collect debts owed to THK LLC;

 

(18)         retain
independent certified public accountants to audit the books and financial
records of THK LLC;

 

(19)         create or
change any committee of the board of managers of THK LLC;

 

37

 

(19)         issue any
press release of any type without the prior written approval of the chief
executive officer of THK; or

 

(20)         take any
action referred to in clauses (1) through (19) above, inclusive, relating to
any subsidiary of THK LLC.

 

ARTICLE VIII

POST-CLOSING PAYMENTS TO SHAREHOLDERS

 

8.1           Earnout.  Following the
Closing Date, the Merger Consideration may be increased as follows: the Shareholders
shall be eligible to receive, on a pro rata basis determined based on their
percentage of the total number of outstanding shares of iLead Common Stock
shown on Schedule 4.7, a contingent consideration payment (the “Earnout
Payment”) based on the Pre-Tax Earnings Amount.  Such Earnout Payment, if any, shall be made
by THK to the Shareholders in an amount based upon the earnings target reached
as set forth below, fifty percent (50%) of which (less the Bonus Pool Amount)
shall be payable in cash by wire transfer of immediately available funds and
fifty percent (50%) of which shall be payable in THK Common Stock valued at the
average closing price (in U.S. Dollars) per share of THK Common Stock on the
last five trading days of the First Twelve Quarters.  The Earnout Payment shall be payable as
follows:

 

(a)           If
the Pre-Tax Earnings Amount is less than $533,333, then no Earnout Payment
shall be payable to the Shareholders;

 

(b)           If
the Pre-Tax Earnings Amount is equal to or between $533,333 and $1,199,999, then
the Earnout Payment shall be equal to Three Million Dollars ($3,000,000) less
the Bonus Pool Amount and be payable to the Shareholders;

 

(c)           If
the Pre-Tax Earnings Amount is equal to or between $1,200,000 and $1,866,665,
then the Earnout Payment shall be equal to Six Million Dollars ($6,000,000)
less the Bonus Pool Amount and be payable to the Shareholders;

 

(d)           If
the Pre-Tax Earnings Amount is equal to or between $1,866,666 and $2,533,332,
then the Earnout Payment shall be equal to Nine Million Dollars ($9,000,000)
less the Bonus Pool Amount and be payable to the Shareholders;

 

(e)           If
the Pre-Tax Earnings Amount is equal to or between $2,533,333 and $3,199,999,
then the Earnout Payment shall be equal to Twelve Million Dollars ($12,000,000)
less the Bonus Pool Amount and be payable to the Shareholders;

 

(f)            If
the Pre-Tax Earnings Amount is equal to or between $3,200,000 and $3,866,665,
then the Earnout Payment shall be equal to Fifteen Million Dollars
($15,000,000) less the Bonus Pool Amount and be payable to the Shareholders;
and

 

(g)           If
the Pre-Tax Earnings Amount is equal to $3,866,666 or higher, then the Earnout
Payment shall be equal to Eighteen Million Dollars ($18,000,000) less the Bonus
Pool Amount and be payable to the Shareholders.

 

38

 

The Earnout Payment, if
required to be delivered by THK to the Shareholders as described above, shall
be delivered by THK to the Shareholders within thirty (30) days following the
receipt by THK from the THK Accountants of the calculations of the Pre-Tax
Earnings Amount.  THK will use good faith
efforts to cause the THK Accountants to deliver such calculations as promptly
as practicable following the end of the First Twelve Quarters, but in no event
later than the date on which THK files its applicable SEC report for such
quarter.

 

8.2           Right
to Pay Additional Portion of Earnout Payment in Cash.  Notwithstanding any provision to the contrary
in this Agreement, THK, in its sole discretion, shall be permitted to pay to the
Shareholders any portion of the Earnout Payment to be paid in shares of THK
Common Stock (“Earnout Stock”) that is required to be paid under Section
8.1 in cash in lieu of shares of THK Common Stock to the extent that such
portion of the Earnout Stock Consideration would cause the total portion of the
Merger Consideration to be paid by THK pursuant to this Agreement in shares of
THK Common Stock to exceed 20% of the shares of THK Common Stock issued and
outstanding immediately prior to the Effective Time.  THK covenants and agrees that it will seek
approval from its shareholders for the issuance of the Earnout Stock
Consideration to the extent it does or will exceed 20% of the outstanding
shares of THK Common Stock at the next annual or special meeting of its
shareholders held after the annual meeting scheduled for March 14, 2006 or any
postponements or adjournments thereof. 
The rights set forth in the first sentence of this Section 8.2 shall
terminate if such shareholder approval is obtained.

 

8.3           Calculation
of Pre-Tax Earnings Amount.  The THK
Accountant shall calculate the Pre-Tax Earnings Amount using GAAP consistently
applied for each period.  When
calculating the Pre-Tax Earnings Amount, any expenses for taxes and
amortization of goodwill and other assets arising from the consummation of the
transactions contemplated by this Agreement shall not be included.  Any payments made from the Bonus Pool created
pursuant to Section 6.6 shall not be included when calculating the Pre-Tax
Earnings Amount.  Further, unless THK and
the Shareholders mutually agree, no charge against the earnings of iLead
Surviving Company or THK LLC shall be allowed for any expenses of THK in the
nature of overhead, management fee or otherwise, when calculating the Pre-Tax
Earnings Amount, other than (i) expenses incurred by THK but allocated and
charged to iLead Surviving Company or THK LLC and directly related to preparing
the financial statements of iLead Surviving Company or THK LLC and its
Subsidiaries or to determining or certifying the Pre-Tax Earnings Amount and
(ii) expenses or other charges incurred by THK and arising from or related to
any claim asserted by or against iLead Surviving Company or THK LLC.

 

8.4           Additional
Cash Payment.  Following the Closing
Date, the Shareholders shall be entitled to an additional cash payment in an
aggregate amount of Two Hundred Fifty Thousand Dollars ($250,000) (the “Additional
Cash Payment”) if, at any time during the first five (5) calendar month
period following the Closing Date, (a) the unrestricted cash of the iLead
Surviving Company or THK LLC in its checking and savings accounts exceeds
$750,000 and (b) at the same time, the Receivables with an age of less
than sixty (60) days and restricted and unrestricted cash of iLead Surviving
Company or THK LLC exceed the Liabilities of iLead Surviving Company or THK LLC
by at least $1.00.  The Additional Cash
Payment, if required to be delivered by THK to the Shareholders as described
above, shall be delivered by THK to the Shareholders, by wire transfer of
immediately available funds, within thirty (30) days following

 

39

 

receipt by THK
from the THK Accountants of written confirmation that the conditions set forth
in this Section 8.4 have been satisfied. 
THK will use good faith efforts to cause the THK Accountants to deliver
such written confirmation as promptly as practicable after the Shareholders
notify THK that the Shareholders believe the conditions set forth in this
Section 8.4 have been satisfied.  The
Additional Cash Payment, if made, shall be considered part of the Merger
Consideration.

 

ARTICLE IX

CONDITIONS PRECEDENT TO CLOSING

 

9.1           Conditions
Precedent to the Obligations of the Parties.  The obligation of each of the Parties to
consummate the transactions described in this Agreement shall be subject to the
fulfillment on or before the Closing of the following conditions
precedent.  Any failure of iLead or the
Shareholders to fulfill any of the conditions precedent set forth below in
subsections (a), (c), (e), (f), (g), (h), (j) and (k) on or before the Closing
may be waived in writing by THK, in whole or in part, in THK’s sole
discretion.  Any failure of THK or iLead
Acquisition Sub to fulfill any of the conditions precedent set forth below in
subsections (b), (d), (e), (f), (g) and (i) on or before the Closing may be
waived in writing by the Shareholders, in whole or in part, in the Shareholders’
sole discretion.  The condition precedent
set forth below in subsection (1) may be waived in writing by the Shareholders,
in whole or part, in the Shareholders’ sole discretion.

 

(a)           Representations,
Warranties and Covenants of the Shareholders and iLead.  The representations and warranties of the
Shareholders and iLead contained in this Agreement shall have been true and
correct in all material respects when made and shall be true and correct in all
material respects as of the Closing, with the same force and effect as if made
as of the Closing Date, other than such representations and warranties that are
expressly made as of another date (which shall be true and correct in all
material respects as of the date when made), and the covenants and agreements
contained in this Agreement to be complied with by the Shareholders and iLead
on or before the Closing shall have been complied with, and THK and iLead
Acquisition Sub shall have received a certificate from the Shareholders and
iLead to such effects signed by the Shareholders and by a duly authorized
officer of iLead.

 

(b)           Representations,
Warranties and Covenants of THK and iLead Acquisition Sub.  The representations and warranties of each of
THK and iLead Acquisition Sub contained in this Agreement shall have been true
and correct in all material respects when made and shall be true and correct in
all material respects as of the Closing, with the same force and effect as if
made as of the Closing Date, other than such representations and warranties
that are expressly made as of another date (which shall be true and correct in
all material respects as of the date when made), and the covenants and
agreements contained in this Agreement to be complied with by THK and iLead
Acquisition Sub on or before the Closing shall have been complied with, and
iLead shall have received a certificate to such effects signed by a duly
authorized officer of THK and iLead Acquisition Sub.

 

(c)           No
Adverse Change of iLead.  No events
or conditions shall have occurred which, individually or in the aggregate, have
had, or will reasonably be anticipated to give rise to, any Material Adverse
Effect on iLead.

 

40

 

(d)           No
Adverse Change of THK or iLead Acquisition Sub.  No events or conditions shall have occurred
which, individually or in the aggregate, have had, or will reasonably be
anticipated to give rise to, any Material Adverse Effect on THK or iLead
Acquisition Sub.

 

(e)           Governmental
Approvals.  Any and all approvals
from Governmental Authorities required for the lawful consummation of the
transactions contemplated by this Agreement and the other Documents shall have
been obtained.  The Articles of Merger
shall have been filed with the Utah Department of Commerce.

 

(f)            Consents.  Any and all required consents and approvals
from third parties for the consummation of the transactions contemplated by
this Agreement and the other Documents shall have been obtained, including
without limitation in the case of THK, approval by AMEX of the listing of the
shares of THK Common Stock to be issued under this Agreement (including the
Earnout Stock) and the Shareholder Warrant Agreements, it being understood and
agreed that THK shall have no obligation to list any of the THK Common Stock to
be issued under this Agreement (including the Earnout Stock) or the Shareholder
Warrant Agreements if, as a condition or consequence of such listing
application, AMEX advises THK that it will integrate the transactions
contemplated by this Agreement with any prior transaction for which THK has
obtained listing approval prior to the date of this Agreement or would
otherwise take adverse action will respect to any prior listing approval
(including rescission or amendment thereof).

 

(g)           No
Actions, Suits or Proceedings.  No
Order of any Court or Governmental Authority shall have been issued
restraining, prohibiting, restricting or delaying the consummation of the
transactions contemplated by this Agreement and the other Documents. No
Litigation shall be pending or, to the Knowledge of the Parties to this
Agreement, threatened, before any Court or Governmental Authority to restrain,
prohibit, restrict or delay, or to obtain damages or a discovery order in
respect of this Agreement or the consummation of the transactions contemplated
hereby.  No insolvency proceeding of any
character including without limitation, bankruptcy, receivership,
reorganization, dissolution or arrangement with creditors, voluntary or
involuntary, relating to iLead shall be pending, and iLead shall not have taken
any action in contemplation of, or which would constitute the basis for, the institution
of any such proceedings.

 

(h)           iLead/Shareholders
Deliveries.  At the Closing, iLead
and the Shareholders, to the extent applicable, shall take the following
actions:

 

(1)           Each
of the Shareholders shall deliver to THK, in a form reasonably satisfactory to
THK, an affidavit executed by such Shareholder issued pursuant to and in
compliance with Treasury Regulations Section 1.1445-2(b)(2) and dated as of the
Closing Date, certifying that such Shareholder is not a foreign person;

 

(2)           The
Shareholders shall convey, give, grant, assign and transfer to iLead Surviving
Company or THK LLC any and all rights, titles and interests of any nature
whatsoever that the Shareholders may have in, or to, the ownership or use of
any and all

 

41

 

Intellectual Property
used in or associated with iLead or the Business and not otherwise transferred
to iLead prior to the Closing;

 

 

(3)           The
Shareholders shall convey, give, grant, assign and transfer to iLead Surviving
Company or THK LLC any and all rights, titles and interests of any nature
whatsoever, legal or beneficial, active or passive, that the Shareholders may
have in, or to any other Person, business or “website” involving the sale or
provision of information, goods or services over the Internet;

 

(4)           Whittingham
shall execute and deliver an employment agreement substantially in the form of Exhibit
B-1 attached hereto (the “Whittingam Employment Agreement”); Nelson
shall execute and deliver an employment agreement substantially in the form of Exhibit
B-2 attached hereto (the “Nelson Employment Agreement”); and Seolas
shall execute and deliver an employment agreement substantially in the form of Exhibit
B-3 attached hereto (the “Seolas Employment Agreement”)
(collectively, the “Shareholder Employment Agreements”).

 

(5)           The
Shareholders shall execute and deliver a registration rights agreement
substantially in the form set forth in Exhibit C attached hereto (the “Registration
Rights Agreement”);

 

(6)           The
Shareholders shall have delivered iLead Certificates evidencing all of the
iLead Common Stock to THK.

 

(7)           iLead
shall deliver to THK the Audited Financials, prepared in accordance with GAAP,
accompanied by a signed, unqualified opinion of Blackman Kallick Bartelstein
LLP, all acceptable to THK in its sole, absolute discretion.

 

(8)           iLead
shall deliver a certificate, with supporting bank statements, stating the
amount of cash on deposit on the Closing Date in unrestricted accounts
maintained by iLead;

 

(9)           Each
holder of any option, warrant, or other contractual right to acquire any equity
interest of iLead, if any, shall deliver the executed “Option Cancellation
Agreement” set forth on Schedule 9.1(h)(9) hereto;

 

(10)         iLead
shall deliver all minute books and corporate records to THK;

 

(11)         iLead
shall deliver a copy of the resolutions duly, validly and unanimously adopted
by the directors and Shareholders of iLead, certified by the secretary,
authorizing and approving the execution, delivery and performance of this
Agreement and the other Documents and the transactions contemplated hereby and
thereby;

 

(12)         Whittingham
shall execute and deliver a letter agreement substantially in the form set
forth in Exhibit D attached hereto (the “Other Interests Acquisition
Letter Agreement”) pursuant to which THK shall have the right to acquire
Whittingham’s

 

42

 

interests in certain
other entities as set forth in the Whittingham Employment Agreement (the “Other
Interests”) for a fixed price of one (1)
times trailing twelve (12) months’ earnings if Whittingham does not sell or
otherwise dispose of the Other Interests within the six (6) month period
following the Closing;

 

(13)         Whittingham
shall execute and deliver a voting agreement substantially in the form set
forth in Exhibit E attached hereto, pursuant to Whittingham shall have
agreed to certain matters with respect to voting of shares of THK Common Stock
owned or acquired by Whittingham on terms acceptable to THK in and Whittingham
in their respective sole discretion; and

 

(14)         iLead
and the Shareholders shall deliver such other Documents and instruments as THK
or its counsel may reasonably request.

 

(i)            THK/THK
LLC/iLead Acquisition Sub Deliveries. 
At the Closing, THK,  iLead
Acquisition Sub and THK LLC, to the extent applicable, shall take the following
action:

 

(1)           THK
shall have delivered the Cash Consideration to the Shareholders by wire
transfer of immediately available funds and a signed irrevocable letter to THK’s
stock transfer agent to deliver the Stock Consideration to the Shareholders in
accordance with Section 2.6.

 

(2)           THK shall
cause THK LLC to execute and deliver the Whittingham Employment Agreement, the
Nelson Employment Agreement and the Seolas Employment Agreement;

 

(3)           THK shall
execute and deliver the Registration Rights Agreement;

 

(4)           THK, iLead
Acquisition Sub and THK LLC shall deliver a copy of the resolutions duly,
validly and unanimously adopted by the board of directors of THK and of iLead
Acquisition Sub, by the board of managers of THK, LLC, by the shareholders of
iLead Acquisition Sub and by the members of THK LLC certified by their
respective officers authorizing and approving the execution, delivery and
performance of this Agreement and the other Documents and the transactions
contemplated hereby and thereby; and

 

(5)           THK shall
execute and deliver to the Shareholders warrants to purchase THK Common Stock
pursuant to warrant agreements substantially in the form attached hereto as Exhibit
F (the “Shareholder Warrant Agreements”).

 

(j)            Elimination
of Long-Term Debt; Receivables; Cash in Excess of Liabilities. iLead shall
demonstrate to THK and iLead Acquisition Sub that, as of the Closing Date, (i)
iLead’s aggregate cash in its checking and savings accounts equals at Least One
Hundred Thousand Dollars ($100,000) and (ii) iLead’s aggregate restricted and
unrestricted cash and Receivables of iLead with an age of less than sixty (60)
days exceed its Liabilities by at least $250,000 (the amount of such excess,
the “Excess Amount”).  THK and
iLead Acquisition Sub expressly agree that iLead may, at its election,
distribute cash dividends to its shareholders prior to the Closing Date in an
amount equal to the Excess Amount; provided that on the Closing Date,

 

43

 

iLead shall not have any
Liability for amounts owing any advisor or agent retained by iLead or the
Shareholders in connection with the transactions contemplated by this
Agreement.  In addition, neither iLead
nor the Shareholders shall be responsible for any amounts owing any advisor or
agent retained by THK or iLead Acquisition Sub in connection with the
transactions contemplated by this Agreement.

 

(k)           Financing.  THK shall have successfully raised the Nine
Million Two Hundred Six Thousand Seven Hundred Twenty Dollars ($9,206,720) for the Cash Consideration on terms and conditions
acceptable to THK in its sole discretion.

 

(l)            Tax-Deferred
Reorganization.  iLead shall be
satisfied, in its sole discretion, that the Merger and the Final Merger,
considered together as a single integrated transaction, will qualify as a
tax-deferred reorganization under Section 368(a) of the Code.

 

(m)          Merger
of Web House USA and iLead.  iLead
shall provide evidence of the merger of Web House USA, Inc. and iLead, with
iLead to be the surviving entity, on terms reasonably satisfactory to THK.

 

(n)           Payments
under Settlement Agreements.  iLead
shall provide evidence that Whittingham has made the payments required under
the Amended and Restated Settlement, Release and Indemnification Agreements
with Ben Bertola and Craig Christiansen.

 

ARTICLE X

INDEMNIFICATION

 

10.1         Survival
of Representations, Warranties and Covenants.  The representations and warranties contained
in this Agreement shall survive for 2 years from the Closing Date, except that
the representations and warranties in Sections 4.7 and 4.15 shall survive until
the expiration of the applicable statute of limitations.  All covenants and agreements contained in
this Agreement (and in the corresponding covenants and agreements set forth in
any of the Documents) shall survive the Closing and continue in full force
until fully performed in accordance with their terms.

 

10.2         Indemnification.

 

(a)           The
Shareholders jointly and severally agree to indemnify and hold harmless THK,
iLead Acquisition Sub and THK LLC, and each of their respective successors and
assigns, together with all of their officers and managers, from and against any
and all losses, damages, liabilities, obligations, costs or expenses (any one
such item being herein called a “Loss” and all such items being herein
collectively called “Losses”) which are caused by or arise out of (1)
any breach or default in the performance by the Shareholders or iLead of any
covenant or agreement of the Shareholders or iLead contained in this Agreement;
(2) any breach of warranty or inaccurate or erroneous representation made
by the Shareholders or iLead herein or in any Schedule (including the
Disclosure Schedule) delivered to THK, iLead Acquisition Sub or THK LLC
pursuant hereto or in any certificate or other instrument delivered by or on
behalf of the Shareholders or iLead pursuant hereto; and (3) any and all
actions, suits, proceedings, claims, demands, judgments, costs and expenses
(including reasonable legal fees) arising out of the

 

44

 

foregoing, if, and then
only to the extent that, such aggregate Losses exceed an aggregate of Fifty
Thousand Dollars ($50,000).  Without
limiting the generality of the immediately preceding sentence, the Shareholders
jointly and severally shall fully indemnify and hold harmless THK,  iLead Acquisition Sub and THK LLC and the
other indemnified parties described above from and against all Claims of Any
Nature regarding iLead created or incurred prior to the Closing other than the
Approved Liabilities (“Unapproved Liabilities”) until the applicable
statutes of limitations expire in regard to such liabilities if such aggregate
Unapproved Liabilities exceed Fifty Thousand Dollars ($50,000).

 

(b)           THK,
iLead Acquisition Sub and THK LLC jointly and severally agree to indemnify and
hold harmless the Shareholders, and their respective successors and assigns,
from and against any and all Losses which are caused by or arise out of (1) any
material breach or default in the performance by THK, iLead Acquisition Sub or
THK LLC of any covenant or agreement of THK, iLead Acquisition Sub or THK LLC
contained in this Agreement; (2) any breach of warranty or inaccurate or
erroneous representation made by THK, iLead Acquisition Sub or THK LLC herein,
in this Agreement or in any Schedule delivered to the Shareholders or iLead
pursuant hereto or in any certificate or other instrument delivered by or on
behalf of THK, iLead Acquisition Sub or THK LLC pursuant hereto; and (3) any
and all actions, suits, proceedings, claims, demands, judgments, costs and
expenses (including reasonable legal fees) arising out of the foregoing, if,
and then only to the extent that, such aggregate Losses exceed an aggregate of
Fifty Thousand Dollars ($50,000).

 

(c)           Any
indemnified party seeking indemnification hereunder shall give to the party
obligated to provide indemnification to such indemnified party a notice
describing in reasonable detail the facts giving rise to any claim for
indemnification hereunder and shall include in such notice the amount or the
method of computation of the amount of such claim, and a reference to the
provision of this Agreement or any other agreement, document or instrument
executed pursuant hereto or in connection herewith upon which such claim is
based.  After the giving of any notice
pursuant hereto, the amount of indemnification to which an indemnified party
shall be entitled under this Article X shall be determined by the written
agreement between the indemnified party and the indemnifying party or by a
final judgment or decree of any Court of competent jurisdiction.

 

(d)           Except
in the case of fraud or intentional misrepresentation, the maximum aggregate
liability of the Shareholders, on the one hand, and THK, iLead Acquisition Sub
and THK LLC, on the other hand, for indemnification under Sections 10.2(a) and
10.2(b), respectively, shall not exceed the total value of the Merger
Consideration (assuming that the maximum Earnout Payment and Additional Payment
are made).

 

10.3         Third
Party Claim.  If any third person
asserts a claim against an indemnified party hereunder that, if successful,
might result in a claim for indemnification against any indemnifying party
hereunder, the indemnifying party shall be given prompt written notice thereof
and shall have the right (a) to participate in the defense thereof and be
represented, at this or its own expense, by advisory counsel selected by it,
and (b) to approve any settlement if the indemnifying party is, or will
be, required to pay any amounts in connection therewith. Notwithstanding the
foregoing, if within ten (10) Business Days after delivery of the indemnified

 

45

 

party’s notice
described above, the indemnifying party indicates in writing to the indemnified
party that, as between such parties, such claims shall be fully indemnified for
by the indemnifying party as provided herein, then the indemnifying party shall
have the right to control the defense of such claim, provided that the
indemnified party shall have the right (1) to participate in the defense
thereof and be represented, at his or its own expenses, by advisory counsel
selected by it, and (2) to approve any settlement if the indemnified party’s
interests are, or would be, affected thereby, which approval shall not be
unreasonably withheld, conditioned or delayed.

 

10.4         Set-Off.  THK shall have the right to set-off the
amount of any of THK’s Losses and/or Unapproved Liabilities which are indemnifiable
by the Shareholders pursuant to this Article X against any Earnout Payment or
Additional Cash Payment that is or may be due and owing to the Shareholders
pursuant to Article VIII of this Agreement (the “Set-Off”).  The Shareholders shall remain jointly and
severally liable for the amount of all THK Losses in excess of the Set-Off.

 

10.5         Sole
and Exclusive Remedy.  Prior to or in
connection with the Closing, the Parties will have available to them all
remedies available under the Law, including specific performance or other
equitable remedies.  After the Closing,
except in the case of fraud or intentional misrepresentation, the rights set
forth in this Article X will be the exclusive remedy for breach or inaccuracy
of any of the representations and warranties contained in Article III and
Article IV of this Agreement occurring on or prior to the Closing Date and will
be in lieu of contract or other remedies.

 

10.6         No
Liability for Tax Treatment. 
Notwithstanding anything in this Agreement, THK, iLead Acquisition Sub
and THK LLC shall not be liable for any taxes or other Losses that may be
suffered or incurred by the Shareholders if the Merger and the other
transactions contemplated by this Agreement do not qualify for tax-free
treatment under Section 368(a) of the Code or otherwise.

 

ARTICLE XI

TERMINATION

 

11.1         Termination.

 

(a)           iLead
and the Shareholders, on the one hand, and THK and iLead Acquisition Sub, on
the other hand, shall have the right to terminate this Agreement in the event
that one of the conditions precedent to Closing set forth in Section 9.1 cannot
be met (other than as a result of a breach of or failure to perform under this
Agreement by the Party seeking to terminate this Agreement).

 

(b)           This
Agreement shall terminate if the Closing does not occur by May 27, 2006, unless
such date is extended by mutual agreement of the Parties.

 

46

 

ARTICLE XII

TAX MATTERS

 

12.1         Tax
Returns.

 

(a)           Subject to
Section 12.1(d), the Shareholders shall prepare and file or cause to be filed
when due (taking into account all extensions properly obtained) all income Tax
Returns (including IRS Form 11205) that are required to be filed by or with
respect to iLead for taxable years or periods ending on or before the Closing
Date, and the Shareholders shall remit or cause to be remitted any Taxes due in
respect of such Tax Returns, and THK shall prepare and file or cause to be
filed when due (taking into account all extensions properly obtained) all Tax
Returns that are required to be filed by or with respect to iLead Surviving
Company or THK LLC for taxable years or periods ending after the Closing Date
and THK shall remit or cause to be remitted any Taxes due in respect of such
Tax Returns.

 

(b)           From and
after the Closing, the Shareholders shall indemnify THK, pursuant to, but not
subject to the limitations set forth in, Article X, for all (1) Taxes imposed
on iLead for any taxable year or period, or portion thereof, that ends on or
before the Closing Date and (2) net income Taxes of any Person (other than
iLead) imposed on iLead as a transferee or successor, by contract or pursuant
to any requirement of laws, which net income Taxes relate to an event or
transaction occurring before the Closing Date. 
In the case of a Straddle Period, the Taxes of iLead (or Taxes for which
iLead is liable) for the portion of the period ending on the Closing Date (for
which the Shareholders are liable) shall be determined based on an interim
closing of the books as of the close of business on the Closing Date (and for
such purpose, the taxable period of any partnership or other pass-through
entity in which iLead holds a beneficial interest shall be deemed to terminate
at such time), except that the amount of any such Taxes that are imposed on a
periodic basis and are not based on or measured by income or receipts shall be
determined by reference to the percentage that the number of days in the
portion of such period ending on the Closing Date bears to the total number of
days in such period beginning after the Closing Date.  The limitations on indemnity contained in
Section 10.2(a)(3) shall not apply to the obligations set forth herein.

 

(c)           THK shall
not and shall not permit any other Person, without the written consent of the
Shareholders, which consent shall not be unreasonably withheld, to amend any
Tax Return filed by or with respect to iLead for taxable years or periods
ending on or before the Closing Date; provided, that no such consent
shall be required with respect to any amendment that THK in good faith believes
must be filed as a result of any fraud or unlawful activity or as to which THK
is advised by its counsel or accountants must be filed.

 

(d)           Notwithstanding
anything herein to the contrary, the Shareholders shall be liable for and shall
pay, and pursuant to Article X shall indemnify THK, iLead Surviving Company and
THK LLC against, any real property transfer or gains Tax, sales Tax, use Tax,
stamp Tax, stock transfer Tax, or other similar Tax imposed on the transactions
contemplated by this Agreement.  The
limitations on indemnity contained in Section 10.2(a)(3) shall
not apply to the obligations set forth herein.

 

47

 

(e)           THK shall
promptly cause iLead Surviving Company and THK LLC to prepare and provide to
the Shareholders a package of Tax information materials, including, without
limitation, schedules and work papers (the “Tax Package”) required by
the Shareholders to enable the Shareholders to prepare and file all Tax Returns
required to be prepared and filed by the Shareholders pursuant to Section
12.1.  The Shareholders and their
accountants shall have the right to inspect all books and records used to
prepare the Tax Package and any other relevant books and records.  The Tax Package shall be completed in
accordance with past practice, including past practice as to providing such
information and as to the method of computation of separate taxable income or
other relevant measure of income of iLead. 
THK, iLead Surviving Company and THK LLC shall cause the Tax Package to
be delivered to the Shareholders within 60 days after the Closing Date.  With respect to the final Form 1120S to be
filed by iLead, the Parties agree that an election under Section 1362(e)(3) of
the Code to close the books of iLead shall be filed with the IRS.

 

12.2         Contest
Provisions.

 

(a)           THK shall
promptly notify the Shareholders in writing upon receipt by THK, iLead
Surviving Company, THK LLC or any of their respective Affiliates of notice of
any pending or threatened federal, state, local or foreign Tax audits,
examinations or assessments which might affect the Tax liabilities for which
the Shareholders may be liable pursuant to Section 12.1 and Article X.

 

(b)           The
Shareholders shall have the right to represent iLead’s interests in any Tax
audit or administrative or Court proceeding relating to taxable periods ending
on or before the Closing Date, and to employ counsel of its choice at its
expense; provided, however, that the Shareholders shall have no
right to represent iLead’s interests in any Tax audit or administrative or
Court proceeding unless the Shareholders shall have first notified THK in
writing of the Shareholders’ intention to do so and shall have agreed with THK
in writing that, as between THK and the Shareholders, the Shareholders shall be
liable for any Taxes that result from any audit or proceeding.  iLead Surviving Company, THK LLC and its
representatives shall have the right to fully participate at their expense in
any audit or proceeding and to consent to any settlement which affects a Tax
period or Straddle Period ending after the Closing Date.  THK shall have the sole right to defend iLead
with respect to any issue arising with respect to any Tax audit or
administrative or court proceeding relating to taxable periods ending on or
before the Closing Date to the extent THK shall have agreed in writing to
forego any indemnification under this Agreement with respect to the issue.  Notwithstanding the foregoing, the
Shareholders shall not be entitled to settle, either administratively or after
the commencement of Litigation, any claim for Taxes which could adversely
affect the liability for Taxes of THK, iLead or any Affiliate thereof for any
period after the Closing Date to any extent (including, but not limited to, the
imposition of income Tax deficiencies, the reduction of asset basis or cost
adjustments, the lengthening of any amortization or depreciation periods, the
denial of amortization or depreciation deductions, or the reduction of loss or credit
carryforwards) without the prior written consent of THK, which consent may be
withheld in the sole discretion of THK unless the Shareholders has indemnified
THK in a manner acceptable to THK against the effects of any such settlement.

 

48

 

12.3         Assistance
and Cooperation.  After the Closing
Date, the Shareholders and THK shall (and cause their respective Affiliates
to):

 

(a)           assist the
other party in preparing any Tax Returns which such other party is responsible
for preparing and filing in accordance with Section 12.1;

 

(b)           cooperate
fully in preparing for any audits of, or disputes with taxing authorities
regarding, any Tax Returns of iLead;

 

(c)           make
available to the other and to any taxing authority as reasonably requested all
information, records, and documents relating to Taxes of iLead;

 

(d)           provide
timely notice to the other in writing of any pending or threatened Tax audits
or assessments of iLead for taxable periods for which the other may have a liability
under this Article XII;

 

(e)           furnish
the other with copies of all correspondence received from any taxing authority
in connection with any Tax audit or information request with respect to any
such taxable period;

 

(f)            timely
sign and deliver such certificates or forms as may be necessary or appropriate
to establish an exemption from (or otherwise reduce), or file Tax Returns or
other reports with respect to, Taxes relating to sales, transfer and similar
Taxes;

 

(g)           timely
provide to the other powers of attorney or similar authorizations necessary to
carry out the purposes of this Article XII;

 

(h)           retain all
books and records with respect to Tax matters pertinent to iLead relating to
any taxable period beginning before the Closing Date until the expiration of
the statute of limitations (and, to the extent notified by the other party, any
extensions thereof) of the respective taxable periods, and to abide by all
record retention agreements entered into with any taxing authority; and

 

(i)            give the
other party reasonable written notice prior to transferring, destroying or
discarding any such books and records and, if the other party so requests,
allow the other party to take possession of such books and records or obtain
copies of same.

 

ARTICLE XIII

MISCELLANEOUS

 

13.1         Notices.  All notices, requests, consents and other
communications hereunder shall be in writing, shall be addressed to the
receiving Party’s address set forth below or to such other address as a Party
may designate by notice hereunder, and shall be either (a) delivered by
hand, (b) made by facsimile transmission, (c) sent by recognized overnight
courier, or (d) sent by certified mail, return receipt requested, postage
prepaid.

 

49

 

	
  If to THK, iLead 

  Acquisition Sub

  or THK LCC to:

  	
  

  Think Partnership Inc.

  5 Revere Drive, Suite 510

  Northbrook, IL 60062

  Attn:Gerard M. Jacobs

  Fax: 847-562-0178

  
	
   

  	
   

  
	
  With a copy
  to:

  	
  Reed Smith
  LLP

  435 Sixth Avenue

  Pittsburgh, Pennsylvania 15219

  Attn: Jeffrey Bresch

  Fax: 412-288-3063

  
	
   

  	
   

  
	
  If
  to iLead or the 

  Shareholders, to:

  	
  Brady Whittingham

  iLead Media, Inc.

  437 East 1000 South

  Pleasant Grove, UT 84062

  Fax: 801-751-4392

  
	
   

  	
   

  
	
  With a copy to:

  	
  Nolan S. Taylor

  Dorsey & Whitney LLP

  170 South Main Street, Suite 900

  Salt Lake City, Utah 84101

  Fax: 801-933-7373

  

 

All notices, requests,
consents and other communications hereunder shall be deemed to have been
delivered (1) if by hand, at the time of the delivery thereof to the
receiving party at the address of such party set forth above, (2) if sent by
facsimile transmission, at the time receipt has been acknowledged by electronic
confirmation or otherwise, (3) if sent by overnight courier, on the next
Business Day following the day such notice is delivered to the courier service,
or (4) if sent by certified mail, on the fifth (5th) Business Day
following the day such mailing is made.

 

13.2         Entire
Agreement.  This Agreement and the
other Documents embody the entire agreement and understanding between the
Parties with respect to the subject matter hereof and supersede all prior oral
or written agreements and understandings relating to the subject matter
hereof.  No statement, representation,
warranty, covenant or agreement of any kind not expressly set forth in the
Documents shall affect, or be used to interpret, change or restrict, the
express terms and provisions of this Agreement.

 

13.3         Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the Parties and their respective
successors, heirs, personal representatives, legal representatives, and
permitted assigns.

 

13.4         Assignment.  Neither this Agreement, nor any right
hereunder, may be assigned by any of the Parties without the prior written
consent of the other Parties.

 

13.5         Modifications
and Amendments.  The terms and
provisions of this Agreement may be modified or amended only by written
agreement executed by all Parties hereto.

 

50

 

13.6         Waivers.  The terms and provisions of this Agreement
may be waived, or consent for the departure therefrom granted, only by written
document executed by the Party entitled to the benefits of such terms or
provisions.  No such waiver or consent
shall be deemed to be or shall constitute a waiver or consent with respect to any
other terms or provisions of this Agreement, whether or not similar.  Each such waiver or consent shall be
effective only in the specific instance and for the purpose for which it was
given, and shall not constitute a continuing waiver or consent.  No failure or delay by a Party in exercising
any right, power or remedy under this Agreement, and no course of dealing
between the Parties hereto, shall operate as a waiver of any such right, power
or remedy of the Party.  No single or
partial exercise of any right, power or remedy under this Agreement by a Party,
nor any abandonment or discontinuance of steps to enforce any such right, power
or remedy, shall preclude such Party from any other or further exercise thereof
or the exercise of any other right, power or remedy hereunder.  The election of any remedy by a Party shall
not constitute a waiver of the right of such Party to pursue other available
remedies.  No notice to or demand on a
Party not expressly required under this Agreement shall entitle the party
receiving such notice or demand to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the
Party giving such notice or demand to any other or further action in any
circumstances without such notice or demand.

 

13.7         No
Third Party Beneficiary.  Nothing
expressed or implied in this Agreement is intended, or shall be construed, to
confer upon or give any Person other than the Parties and their respective
heirs, personal representatives, legal representatives, successors and
permitted assigns, any rights or remedies under or by reason of this
Agreement.  Notwithstanding the
foregoing, the indemnified entities and persons referred to in Article X are
expressly acknowledged to be third party beneficiaries of this Agreement.

 

13.8         Severability.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of
law, or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner adverse to any party.  Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as
possible in an acceptable manner to the end that transactions contemplated
hereby are fulfilled to the extent possible.

 

13.9         Publicity.  Neither iLead nor the Shareholders shall
make, or cause to be made, any press release or public announcement in respect
of this Agreement or the transactions contemplated hereby or otherwise
communicate with any news media without the prior written consent of THK,
except as may be required by Law. 
Neither THK or iLead Surviving Company shall make, or cause to be made,
any press release or public announcement in respect of this Agreement or the
transactions contemplated hereby or otherwise communicate with any news media
without the prior written consent of the Shareholders, except as THK is advised
by its securities counsel in its discretion. 
THK and the Shareholders shall cooperate in regard to the timing and
contents of any press release or public announcement which THK and iLead shall
decide to make.

 

51

 

13.10       Governing
Law.  This Agreement and the rights
and obligations of the parties hereunder shall be construed in accordance with
and governed by the Law of the State of Illinois without giving effect to the
conflict of law principles thereof.

 

13.11       Counterparts;
Facsimile Signatures.  This Agreement
may be executed in any number of counterparts, either manually or via facsimile
transmission of signatures, each of which shall be deemed an original but all
of which together shall constitute one and the same agreement.

 

13.12       Headings.  The descriptive headings contained in this
Agreement are for convenience of reference only and shall not affect in any way
the meaning or interpretation of this Agreement.

 

13.13       Expenses.  Except as otherwise specified in this
Agreement, all costs and expenses, including, without limitation, fees and
disbursements of counsel, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the Party incurring such costs and expenses, whether or not the
Closing shall have occurred.

 

13.14       Further
Assurances.  At any time and from
time to time after the Closing Date each Party shall execute and deliver such
other instruments of sale, transfer, conveyance, assignment and confirmation as
may be reasonably requested in order to more effectively carry forth the terms
and conditions of this Agreement and the Documents.

 

13.15       Arbitration.  Any controversy, dispute or claim arising out
of or in connection with this Agreement shall be settled by final and binding
arbitration to be conducted by an arbitration tribunal in Denver, Colorado,
pursuant to the rules of the American Arbitration Association.  The arbitration tribunal shall consist of one
arbitrator.  If the parties cannot agree
on the arbitrator, the office of the American Arbitration Association in
Denver, Colorado shall make the necessary appointment.  The decision or award of the arbitrator shall
be final, and judgment upon such decision or award may be entered in any
competent court or application may be made to any competent court for judicial
acceptance of such decision or award and an order of enforcement.  In the event of any procedural matter not
covered by the aforesaid rules, the procedural law of the State of Illinois
shall govern.  Notwithstanding the
agreement to arbitrate contained in this Section 13.15, any party may apply to
any court having jurisdiction to enforce this Agreement to seek provisional
injunctive relief so as to maintain the status quo until the arbitration award
is rendered or the dispute is otherwise resolved.

 

13.16       Incorporation
by Reference.  Each Exhibit and
Schedule to this Agreement is hereby incorporated into this Agreement by
reference thereto, with the same legally binding force and effect as if such
Exhibit or Schedule were fully set forth herein.

 

[Signatures on following page]

 

52

 

IN WITNESS WHEREOF, the
parties hereto have each executed and delivered this Agreement as of the day
and year first above written.

 

	
   

  	
  THINK
  PARTNERSHIP INC., f/k/a CGI

  HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ T.
  Benjamin Jennings

  	
   

  
	
   

  	
  Name:

  	
  T. Benjamin
  Jennings

  	
   

  
	
   

  	
  Title:

  	
  Chairman

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  iLEAD
  ACQUISITION SUB, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott P.
  Mitchell

  	
   

  
	
   

  	
  Name:

  	
  Scott P.
  Mitchell

  	
   

  
	
   

  	
  Title:

  	
  Secretary
  & Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THK, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott P.
  Mitchell

  	
   

  
	
   

  	
  Name:

  	
  Scott P.
  Mitchell

  	
   

  
	
   

  	
  Title:

  	
  Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  iLEAD MEDIA,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brady
  Whittingham

  	
   

  
	
   

  	
  Name:

  	
  Brady
  Whittingham

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Brady
  Whittingham

  	
   

  
	
   

  	
  BRADY
  WHITTINGHAM

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ David
  Nelson

  	
   

  
	
   

  	
  DAVID NELSON

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Robert
  Seolas

  	
   

  
	
   

  	
  ROBERT SEOLAS

  	
   

  

 

53Exhibit 4.1

 

ENPATH MEDICAL, INC. 1999
INCENTIVE STOCK OPTION PLAN

 

(as
amended through April 27, 2006)

 

1.             Purpose. The purpose of this
Plan is to further the growth and general prosperity of Enpath Medical, Inc.
(the “Company”), by enabling the employees of the Company, who have been or
will be given responsibility for the affairs of the Company, to acquire shares
of its common stock under the terms and conditions and in the manner set forth
by this Plan, increasing their personal involvement in the Company and to
enable the Company to obtain and retain the services of those employees.

2.             Administration. This Plan
will be administered by a Committee of at least two (2) Directors who are
non-employee directors within the meaning of Section 16 of the Securities
Exchange Act of 1934 and the rules, regulations and interpretations promulgated
thereunder, including Rule 16b-3.

The Committee
will have the power and authority to award stock options or restricted stock to
eligible participants under the Plan, and each award will be evidenced by a
written agreement (Stock Option Agreement or Restricted Stock Agreement) and a
document containing the terms and conditions of this Plan.

3.             Eligibility and Participation.
Employees eligible to receive options or restricted stock under the Plan will
be key personnel including officers of the Company and directors who are also
employees of the Company. The Committee may allot to such participant options
to purchase shares or restricted stock grants as the Committee will from time
to time determine: provided, however, that no employee may be allotted an
option unless the option exercise price not less than the fair market value of
the stock on the date of grant, and the option is, by its terms, not
exercisable after six (6) years from the date of grant.

4.             Shares Subject to Plan. Subject
to adjustment as provided in Section 5, an aggregate of up to 1,100,000(1)
shares of the Common Stock of the Company will be subject to the Plan and the
Committee is authorized to grant options hereunder with respect to such number
of shares. Any unsold shares subject to an option under the Plan, which for any
reason expires or otherwise terminates may again be made subject to option
under the Plan at the discretion of the Committee.

5.             Adjustments Upon Changes in
Capitalization. In the event of a merger, consolidation, reorganization,
stock dividend, stock split, or any other change in corporate structure or
capitalization affecting the Company’s common shares, appropriate adjustment
will be made in the maximum number of shares available under the Plan or to any
one individual and in the number, kind, option, price, etc. of shares subject
to options or restricted stock awarded under the Plan.

(1)           The Plan originally authorized
400,000 shares of Common Shares for issuance. An amendment to the Plan to
increase the number of shares under the Plan by 500,000 was authorized by the
Board of Directors on April 24, 2003 and was approved by shareholders on
October 21, 2003. An amendment to the Plan to increase the number of shares
under the Plan by 200,000 was authorized by the Board of Directors on February
16, 2006 and was approved by shareholders on April 27, 2006.

 

6.             Terms and Conditions of Options.
The Committee will have power subject to the limitations contained in the Plan,
to prescribe any terms and conditions in respect to the granting or exercise of
any option under the Plan and in particular will prescribe the following terms
and conditions:

(a)           Each
option will state the number of shares to which it pertains.

(b)           Each
option will be granted within ten years of the date the Plan is adopted.

 

1

 

(c)           Each
option will be exercisable only within six years of the date of grant.

(d)           The
purchase price, which will be at least 100% of the fair market value of the
shares at such time as the option is granted and will not be less than the par
value of the shares sold.

(e)           An
option may be exercised at any time after the date of grant, subject to the
provisions of section 6(f) of the Plan and to such other terms and conditions
specified in the Stock Option Agreement, with respect to all or part of the
shares covered by the option. An option may not be exercised for fractional
shares of stock.

In the event the Company or the stockholders of the
Company enter into an agreement to dispose of all or substantially all of the
assets or stock of the Company by means of a sale, merger, reorganization,
liquidation or otherwise, an option will become immediately exercisable with
respect to the full number of shares.

(f)            An
option will be exercised when written notice of such exercise has been given to
the Company at its principle business office by the person entitled to exercise
the option and full payment for the shares has been received by the Company.
Until the stock certificates are issued, no right to vote, receive dividends,
or any other rights as a shareholder will exist with respect to optioned
shares, notwithstanding the exercise of the option.

(g)           An
option may be exercised by the optionee only while he is, and has continually
been, since the date of the grant of the option, an employee of the Company or
within three months following termination of employment (for reasons other than
death, disability or termination for cause).

If the continuous employment of an optionee
terminates by reason of his death, options which the deceased employee would be
entitled to exercise as of the date of death may be exercised within one year
following the date of death by the person to whom his rights under such option
will have passed by will or by the laws of descent and distribution, but in no
event later than the expiration of the option. If the continuous employment of
an optionee terminates by reason of disability, options which the disabled
employee would be entitled to exercise as of the date of termination of
employment may be exercised within one year following the date of termination,
but in no event later than the expiration of the option.

If the continuous employment of an optionee
terminates for cause, any options which have not been exercised as of the date
of termination will be cancelled.

7.             Options Not Transferable. No
option granted under the Plan will be transferable by the optionee, either
voluntarily or involuntarily, except by will or the laws of descent and
distribution, and then only to the extent provided in Section 6 hereof, or
pursuant to a qualified domestic relations order (as defined by the Internal
Revenue Code of 1986, as amended, or Title I of the Employee Retirement Income
Security Act and the rules thereunder.)

 

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8.             Terms and
Conditions of Restricted Stock Awards.

(a)           Administration.
Shares of restricted stock may be issued either alone or in addition to other
awards granted under the Plan. The Committee has the right to determine to
whom, and the time or times at which, restricted stock awards will be made, the
number of shares to be awarded, the time or times within which such awards may
be subject to forfeiture, and all other conditions of the awards. The Committee
may also condition the grant of restricted stock upon the attainment of
specified performance goals. The provisions of restricted stock awards need not
be the same with respect to each recipient.

(b)           Awards and Certificates. The
prospective recipient of an award of shares of restricted stock will not have
any rights with respect to such award, unless and until the recipient has
executed a restricted stock agreement evidencing the award and has delivered a
fully executed copy thereof to the Company, and has otherwise complied with the
then applicable terms and conditions.

(i)            Each
participant will be issued a stock certificate in respect of shares of
restricted stock awarded under the Plan. The certificate will be registered in
the name of the participant, and will bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such award, substantially
in the following form:

“The transferability of this certificate and the shares of stock
represented hereby are subject to the terms and conditions (including
forfeiture) of the Enpath Medical, Inc. 1999 Incentive Stock Option Plan and an
Agreement entered into between the registered owner and Enpath Medical, Inc. Copies
of such Plan and Agreement are on file in the offices of Enpath Medical, Inc.,
15301 Hwy 55 West, Plymouth, MN 55447.”

(ii)           The
Committee must require that the stock certificates evidencing such shares be
held in custody by the Company until the restrictions thereon have lapsed, and
that, as a condition of any restricted stock award, the participant will have
delivered a stock power, endorsed in blank, relating to the Common Stock
covered by such award.

(c)           Restrictions and Conditions. The
shares of restricted stock awarded pursuant to the Plan will be subject to the
following restrictions and conditions:

(i)            Subject
to the provisions of this Plan and the award agreement, during a period set by
the Committee commencing with the date of such award (the “Restriction
Period”), the participant will not be permitted to sell, transfer, pledge or
assign shares of restricted stock awarded under the Plan. Within these limits,
the Committee may provide for the lapse of such restrictions in installments
where deemed appropriate.

(ii)           Except
as provided in paragraph (c)(i) of this Section 8, the participant will have,
with respect to the shares of restricted stock, all of the rights of a
shareholder of the Company, including the right to vote the shares and the
right to receive any cash dividends. The Committee, in its sole discretion,

 

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may permit or require the payment of cash dividends to be deferred and,
if the Committee so determines, reinvested in additional shares of restricted
stock (to the extent shares are available under Section 4 and subject to
Section 10 below).

(iii)          Subject
to the provisions of the award agreement and paragraph (c)(iv) of this Section
8, upon termination of employment for any reason during the Restriction Period,
all shares still subject to restriction will be forfeited by the participant.

(iv)          In
the event of special hardship circumstances of a participant whose employment
is terminated (other than for cause), including death, disability or
retirement, or in the event of an unforeseeable emergency of a participant
still in service, the Committee may, in its sole discretion, when it finds that
a waiver would be in the best interest of the Company, waive in whole or in
part any or all remaining restrictions with respect to such participant’s
shares of restricted stock.

(v)           Notwithstanding
the foregoing, in the event of the sale by the Company of substantially all of
its assets and the consequent discontinuance of its business, or in the event of
a merger, exchange, consolidation or liquidation of the Company, the Board
will, in its sole discretion, in connection with the Board’s adoption of the
plan for sale, merger, exchange, consolidation or liquidation, provide for one
or more of the following with respect to restricted stock awards that are, on
such date, still subject to a Restriction Period: (i) the removal of the
restrictions on any or all outstanding restricted stock awards; (ii) the
complete termination of this Plan and forfeiture of outstanding restricted
stock awards prior to a date specified by the Board; and (iii) the continuance
of the Plan with respect to the restricted stock award which were outstanding
as of the date of adoption by the Board of such plan for sale, merger, exchange,
consolidation or liquidation and provide to participants holding restricted
stock awards the right to an equivalent number of restricted shares of stock of
the corporation succeeding the Company by reason of such sale, merger,
exchange, consolidation or liquidation. The grant of a restricted stock award
pursuant to the Plan will not limit in any way the right or power of the
Company to make adjustments, reclassifications, reorganizations or changes of
its capital or business structure or to merge, exchange or consolidate or to
dissolve, liquidate, sell or transfer all or any part of its business or
assets.

9.             Amendment or Termination of the
Plan. The Board of Directors may amend the Plan from time to time as it
deems advisable. The Board of Directors may at any time terminate the Plan,
provided that any termination of the Plan will not affect options already
granted. The options will remain in full force and effect as if the Plan had
not been terminated.

10.           Agreement and Representation of
Employee. As a condition to the exercise of any option (or portion thereof)
or grant of restricted stock, the Company may require the participant represent
and warrant at the time of any exercise or grant that the shares are being
purchased only for investment and without any present intention to sell or
distribute the shares if in the opinion of counsel for the Company such
representation is required under the Securities Act of 1933, or any other
applicable law, regulation or rule of any governmental agency.

 

4

 

In the event
legal counsel to the Company renders an opinion to the Company that the shares
for options exercised pursuant to this Plan cannot be issued to the participant
because such act would violate the applicable Federal or State securities law,
then and in that event, the optionee agrees that the Company will not be
required to issue the shares to the optionee tendered to the Company upon
exercise of the option.

11.           Effectiveness and Termination of
the Plan.     The Plan will become
effective upon adoption by the Board of Directors and will be subject to
approval of the stockholders of Enpath Medical Inc. within 12 months of
adoption. The Plan will terminate on the earliest of:

(a)           the
date when all the common shares available under the Plan will have been
acquired through exercising the options granted under the Plan,

(b)           August
1, 2009,

(c)           such
other date as the Board may determine.

12.           Form of Awards. Options may be
issued by the execution of an Enpath Medical, Inc. form entitled “Stock Option
Agreement” and restricted stock awards may be issued by execution of an Enpath
Medical, Inc. form entitled “Restricted Stock Agreement.”

 

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