Document:

EXHIBIT 10.23

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                          AGREEMENT AND PLAN OF MERGER

                                  by and among

                                 TURBOWORX, INC.

                                       and

                              ARGENTYS CORPORATION

                                       and

                    THE SHAREHOLDERS OF ARGENTYS CORPORATION

                                       and

                       AMPERSAND 1999 LIMITED PARTNERSHIP,
                         as Shareholders' Representative

                           Dated as of April 15, 2003

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                                TABLE OF CONTENTS
                                -----------------
<TABLE>
<CAPTION>
                                                                                                PAGE
                                                                                                ----
<S>           <C>                                                                                 <C>
 RECITALS           ...............................................................................1
ARTICLE I           THE MERGER.....................................................................1
   1.1        THE MERGER...........................................................................1
   1.2        THE CLOSING..........................................................................1
   1.3        EFFECTIVE TIME.......................................................................1
   1.4        EFFECT OF THE MERGER.................................................................1
   1.5        EFFECT ON CAPITAL STOCK..............................................................2
   1.6        SURRENDER OF SECURITIES; RESTRICTIONS ON TRANSFER; STOCK TRANSFER BOOKS..............3
   1.7        CERTIFICATE OF INCORPORATION OF SURVIVING CORPORATION................................4
   1.8        BYLAWS OF THE SURVIVING CORPORATION..................................................4
   1.9        DIRECTORS AND OFFICERS OF THE SURVIVING CORPORATION..................................4
   1.10       EXEMPTION FROM REGISTRATION..........................................................4
   1.11       SHAREHOLDERS' REPRESENTATIVE.........................................................4
ARTICLE II          REPRESENTATIONS AND WARRANTIES OF ARGENTYS.....................................6
   2.1        ORGANIZATION AND QUALIFICATION; SUBSIDIARIES; CAPITALIZATION.........................6
   2.2        CORPORATE POWER AND AUTHORITY........................................................7
   2.3        VALIDITY, ETC........................................................................7
   2.4        FINANCIAL STATEMENTS.................................................................8
   2.5        ABSENCE OF UNDISCLOSED LIABILITIES...................................................8
   2.6        ABSENCE OF ADVERSE CHANGE; CONDUCT OF BUSINESS.......................................8
   2.7        INVENTORIES..........................................................................9
   2.8        RECEIVABLES.........................................................................10
   2.9        TAXES...............................................................................10
   2.10       LITIGATION..........................................................................10
   2.11       CERTAIN PRACTICES...................................................................10
   2.12       COMPLIANCE WITH LAW.................................................................11
   2.13       LICENSES AND PERMITS................................................................11
   2.14       LABOR AND EMPLOYEE RELATIONS........................................................11
   2.15       CERTAIN EMPLOYEES...................................................................12
   2.16       EMPLOYEE BENEFITS...................................................................12
   2.17       TANGIBLE PROPERTIES.................................................................12
   2.18       OWNED PREMISES......................................................................12
   2.19       LEASED PREMISES.....................................................................13
   2.20       INSURANCE...........................................................................13
   2.21       OUTSTANDING COMMITMENTS.............................................................13
   2.22       INTELLECTUAL PROPERTY...............................................................13
   2.23       PROPRIETARY INFORMATION OF THIRD PARTIES............................................16
   2.24       GOVERNMENTAL APPROVALS..............................................................16
   2.25       DISCLOSURE..........................................................................17
   2.26       ENVIRONMENTAL MATTERS...............................................................17
   2.27       CUSTOMERS...........................................................................18
</TABLE>

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<TABLE>
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                                                                                                PAGE
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<S>           <C>                                                                                 <C>
ARTICLE III         REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS............................18
   3.1        INVESTMENT..........................................................................19
   3.2        NO REGISTRATION.....................................................................19
   3.3        SOPHISTICATION......................................................................19
   3.4        FINANCIAL CAPABILITY................................................................19
   3.5        "ACCREDITED INVESTOR"...............................................................19
   3.6        ACCESS..............................................................................19
   3.7        RESIDENCE...........................................................................19
ARTICLE IV          REPRESENTATIONS AND WARRANTIES OF BUYER.......................................19
   4.1        ORGANIZATION AND QUALIFICATION; SUBSIDIARIES; CAPITALIZATION........................19
   4.2        CORPORATE POWER AND AUTHORITY.......................................................20
   4.3        VALIDITY, ETC.......................................................................21
   4.4        FINANCIAL STATEMENTS................................................................21
   4.5        ABSENCE OF UNDISCLOSED LIABILITIES..................................................22
   4.6        ABSENCE OF ADVERSE CHANGE; CONDUCT OF BUSINESS......................................22
   4.7        INVENTORIES.........................................................................23
   4.8        RECEIVABLES.........................................................................23
   4.9        TAXES...............................................................................23
   4.10       LITIGATION..........................................................................24
   4.11       CERTAIN PRACTICES...................................................................24
   4.12       COMPLIANCE WITH LAW.................................................................24
   4.13       LICENSES AND PERMITS................................................................24
   4.14       LABOR AND EMPLOYEE RELATIONS........................................................25
   4.15       CERTAIN EMPLOYEES...................................................................25
   4.16       EMPLOYEE BENEFITS...................................................................25
   4.17       TANGIBLE PROPERTIES.................................................................26
   4.18       OWNED PREMISES......................................................................26
   4.19       LEASED PREMISES.....................................................................26
   4.20       INSURANCE...........................................................................26
   4.21       OUTSTANDING COMMITMENTS.............................................................26
   4.22       INTELLECTUAL PROPERTY...............................................................27
   4.23       PROPRIETARY INFORMATION OF THIRD PARTIES............................................29
   4.24       GOVERNMENTAL APPROVALS..............................................................29
   4.25       DISCLOSURE..........................................................................29
   4.26       ENVIRONMENTAL MATTERS...............................................................30
   4.27       CUSTOMERS...........................................................................30
ARTICLE V           CONDITIONS TO BUYER'S OBLIGATIONS.............................................30
   5.1        CONSENTS............................................................................30
   5.2        REPRESENTATIONS AND WARRANTIES TO BE TRUE AND CORRECT...............................30
   5.3        PERFORMANCE.........................................................................31
   5.4        NO ADVERSE CHANGE...................................................................31
   5.5        NO ACTIONS, SUITS OR PROCEEDINGS....................................................31
   5.6        EMPLOYMENT OFFERS...................................................................31
   5.7        TERMINATION OF EMPLOYEES............................................................31
   5.8        CLOSING DOCUMENTS...................................................................32
   5.9        STOCKHOLDERS' AGREEMENT.............................................................32
   5.10       BRIDGE LOANS........................................................................32
</TABLE>

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<TABLE>
<CAPTION>
                                                                                                PAGE
                                                                                                ----
<S>           <C>                                                                                 <C>
   5.11       CERTIFICATE OF PRINCIPAL SHAREHOLDERS...............................................32
ARTICLE VI          CONDITIONS TO ARGENTYS' AND THE SHAREHOLDERS' OBLIGATIONS.....................32
   6.1        REPRESENTATIONS AND WARRANTIES TO BE TRUE AND CORRECT...............................32
   6.2        PERFORMANCE.........................................................................33
   6.3        NO ADVERSE CHANGE...................................................................33
   6.4        NO ACTIONS, SUITS OR PROCEEDINGS....................................................33
   6.5        CLOSING DOCUMENTS...................................................................33
   6.6        STOCKHOLDERS' AGREEMENT.............................................................33
ARTICLE VII         INDEMNIFICATION...............................................................33
   7.1        SURVIVAL............................................................................33
   7.2        INDEMNIFICATION OF BUYER BY THE SHAREHOLDERS........................................34
   7.3        INDEMNIFICATION OF SHAREHOLDERS BY BUYER............................................34
   7.4        CLAIMS FOR INDEMNIFICATION..........................................................35
ARTICLE VIII        MISCELLANEOUS.................................................................35
   8.1        NOTICES.............................................................................35
   8.2        ENTIRE AGREEMENT....................................................................36
   8.3        MODIFICATIONS AND AMENDMENTS........................................................36
   8.4        WAIVERS AND CONSENTS................................................................36
   8.5        ASSIGNMENT..........................................................................37
   8.6        PARTIES IN INTEREST.................................................................37
   8.7        GOVERNING LAW.......................................................................37
   8.8        SEVERABILITY........................................................................37
   8.9        INTERPRETATION......................................................................37
   8.10       HEADINGS AND CAPTIONS...............................................................37
   8.11       RELIANCE............................................................................38
   8.12       EXPENSES............................................................................38
   8.13       NO BROKER OR FINDER.................................................................38
   8.14       PUBLICITY...........................................................................38
   8.15       COUNTERPARTS........................................................................38
</TABLE>

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<PAGE>

                                INDEX TO EXHIBITS
                                -----------------

Exhibit 1.3             Certificate of Merger
Exhibit 1.5             Warrant
Exhibit 1.7             Surviving Charter
Exhibit 1.8             Surviving Bylaws
Exhibit 1.9             Directors
Exhibit 5.9             Stockholders' Agreement
Exhibit 7.11            Principal Shareholders' Certificate

Schedule 1              Shareholders

Disclosure Schedule of Argentys
Disclosure Schedule of Buyer

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<PAGE>

                          AGREEMENT AND PLAN OF MERGER

         This  Agreement  and Plan of Merger  (this  "AGREEMENT")  is made as of
April ___, 2003, by and among TurboWorx, Inc., a Delaware corporation ("BUYER"),
Argentys Corporation,  a Delaware corporation ("ARGENTYS"),  the shareholders of
Argentys  listed on SCHEDULE 1 hereto (each a "SHAREHOLDER"  and,  collectively,
the "Shareholders"),  and Ampersand 1999 Limited Partnership  ("AMPERSAND"),  as
Shareholders' Representative.

                                    RECITALS

         This  Agreement  contemplates a merger of Argentys with and into Buyer,
with Buyer being the surviving  corporation.  In such merger,  shares of capital
stock of Argentys held by the Shareholders  will be tendered by the Shareholders
for  exchange  and  will  be  converted  into  the  right  to  receive   certain
consideration  in the  merger,  on the  terms and  conditions  set forth in this
Agreement.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants  contained  in  this  Agreement,  and  for  other  good  and  valuable
consideration,  the receipt and sufficiency of which is hereby acknowledged, the
parties intending to be legally bound agree as follows:

ARTICLE I

                                   THE MERGER

         1.1 THE  MERGER.  Upon  the  terms  and  conditions  set  forth in this
Agreement,  and in accordance  with the Delaware  General  Corporation  Law (the
"DGCL"),  Argentys  shall be merged  with and into Buyer (the  "MERGER")  at the
Effective Time (as defined in Section 1.3 hereof).  From and after the Effective
Time, the separate  corporate  existence of Argentys shall cease and Buyer shall
continue as the surviving  corporation (the "SURVIVING  CORPORATION")  under the
name  "TURBOWORX,  INC." and shall  succeed  to and  assume  all the  rights and
obligations of Argentys and Buyer in accordance with the DGCL.

         1.2 THE CLOSING.  The closing of the Merger (the  "CLOSING")  will take
place at 10:00 a.m. Eastern Time at the offices of Mintz,  Levin,  Cohn, Ferris,
Glovsky and Popeo, P.C. on April ___, 2003 (the "CLOSING DATE").

         1.3 EFFECTIVE TIME.  Subject to the provisions of this  Agreement,  the
parties shall file a certificate  of merger  substantially  in the form attached
hereto as EXHIBIT 1.3 (the  "CERTIFICATE OF MERGER") executed in accordance with
the  relevant  provisions  of the  DGCL and  shall  make all  other  filings  or
recordings  required  under  the DGCL as soon as  practicable  on or  after  the
Closing Date. The Merger shall become  effective at such time as the Certificate
of Merger is duly filed with the Delaware  Secretary of State,  or at such later
time as the parties shall agree should be specified in the Certificate of Merger
(the "EFFECTIVE TIME").

         1.4  EFFECT  OF THE  MERGER.  From and after the  Effective  Time,  the
Surviving Corporation shall possess all the property, rights, privileges, powers
and franchises and be

<PAGE>

subject  to  all  of  the  restrictions,   debts,   liabilities,   disabilities,
obligations  and duties of Buyer and  Argentys,  and the Merger shall  otherwise
have the effects set forth in Section 259 of the DGCL.

         1.5 EFFECT ON CAPITAL  STOCK.  At the Effective  Time, by virtue of the
Merger  and  without  any  further  action on the part of Buyer,  Argentys,  the
Surviving  Corporation  or any holder of any shares of capital stock Argentys or
Buyer:

             (a) BUYER COMMON STOCK. Each share of common stock, par value $.001
per share,  of Buyer issued and outstanding  immediately  prior to the Effective
Time shall be converted  into one fully paid and  nonassessable  share of common
stock, par value $.001 per share of the Surviving Corporation.

             (b) BUYER PREFERRED STOCK.  Each share of Series A Preferred Stock,
par value $.001 per share, of Buyer issued and outstanding  immediately prior to
the  Effective  Time shall be  converted  into one fully paid and  nonassessable
share of Series A Preferred  Stock,  par value $.001 per share of the  Surviving
Corporation (the "BUYER SERIES A PREFERRED STOCK").

             (c)  CANCELLATION OF CERTAIN CAPITAL STOCK OF ARGENTYS.  Each share
of capital  stock of Argentys  that is held by Argentys  (as  treasury  stock or
otherwise)  or  held  by any  direct  or  indirect  wholly-owned  subsidiary  of
Argentys,  shall automatically be canceled and retired and shall cease to exist,
and no cash or other consideration shall be delivered in exchange therefor.

             (d) ARGENTYS  COMMON STOCK.  Each share of common stock,  $.001 par
value per share,  of Argentys  ("ARGENTYS  COMMON STOCK") issued and outstanding
immediately  prior to the Effective  Time (other than shares of Argentys  Common
Stock to be canceled in accordance with Section 1.5(c) and Dissenting Shares (as
defined below)) shall be canceled,  extinguished and converted into and become a
right to receive (i) 1.308407  shares of Buyer Series A Preferred Stock (rounded
to the  nearest  whole  share);  and (ii) a  warrant,  in the form set  forth as
EXHIBIT 1.5 (the  "Warrant") to purchase an additional  0.327102 shares of Buyer
Series A Preferred Stock (rounded to the nearest whole share).

             (e) ARGENTYS  PREFERRED  STOCK.  Each share of Series A Convertible
Preferred  Stock,  $.001 par value per share, of Argentys  ("ARGENTYS  PREFERRED
STOCK") issued and  outstanding  immediately  prior to the Effective Time (other
than  shares of Argentys  Preferred  Stock to be  canceled  in  accordance  with
Section  1.5(c) and  Dissenting  Shares (as defined  below))  shall be canceled,
extinguished and converted into and become a right to receive 1.308407 shares of
Buyer Series A Preferred Stock (rounded to the nearest whole share);  and (ii) a
Warrant to purchase an  additional  0.327102  shares of Buyer Series A Preferred
Stock (rounded to the nearest whole share).

             (f)  TOTAL  MERGER  CONSIDERATION.  The  shares  of Buyer  Series A
Preferred Stock and Warrants issuable pursuant to Sections 1.5(d) and (e) hereof
are hereinafter  sometimes referred to as the "MERGER  CONSIDERATION."  Assuming
that there are no Dissenting Shares, (i) the aggregate number of shares of Buyer
Series A Preferred Stock to be issued pursuant to Sections 1.5(d) and (e) hereof
shall be 1,600,000  and,  based on the  conversion  ratios set forth in Sections
1.5(d) and (e) above, the  Shareholders  shall each be entitled to the number of
shares of Buyer Series A Preferred Stock as is set forth opposite their names on
SCHEDULE 1 hereto;  and (ii)

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<PAGE>

the  aggregate  number of shares of Buyer Series A Preferred  Stock to be issued
upon exercise of the Warrants  issued pursuant to Sections 1.5(d) and (e) hereof
shall be 400,000  and,  based on the  conversion  ratios  set forth in  Sections
1.5(d) and (e) above, the  Shareholders  shall each be entitled to a Warrant for
the number of shares of Buyer Series A Preferred  Stock as is set forth opposite
their names on SCHEDULE 1 hereto.

             (g) DISSENTING SHARES.  Notwithstanding  anything in this Agreement
to the  contrary,  the shares of Argentys  Common Stock and  Argentys  Preferred
Stock  outstanding  immediately  prior  to the  Effective  Time  (the  "ARGENTYS
SHARES")  held by a holder (if any) who is entitled to demand,  and who properly
demands,  appraisal for such shares in  accordance  with Section 262 of the DGCL
("DISSENTING  SHARES") shall not be converted into a right to receive the Merger
Consideration  unless  such  holder  fails to  perfect or  otherwise  loses such
holder's  right to  appraisal,  if any. Such  shareholders  shall be entitled to
receive  payment of the  appraised  value of such  Argentys  Shares held by such
holder in  accordance  with the  provisions  of such  Section 262. If, after the
Effective  Time,  such  holder  fails  to  perfect  or loses  any such  right to
appraisal,  such Argentys  Shares shall be treated as if they had been converted
as of the  Effective  Time into the right to receive  the  Merger  Consideration
pursuant to Sections 1.5(d) and 1.5(e).

         1.6 SURRENDER  OF  SECURITIES; RESTRICTIONS ON TRANSFER; STOCK TRANSFER
BOOKS.

             (a) EXCHANGE OF CERTIFICATES;  RESTRICTIONS ON TRANSFER.  After the
Effective Time, each of the holders of Argentys Shares  immediately prior to the
Effective  Time whose  Argentys  Shares were converted into the right to receive
Buyer Series A Preferred  Stock and Warrants  under  Section 1.5 hereof shall be
entitled to receive the shares of Buyer  Series A Preferred  Stock and  Warrants
into which such  Argentys  Shares have been  converted,  provided,  that for the
purpose of securing the obligations of the Shareholders pursuant to Article VII,
fifty percent (50%) of the shares of Buyer Preferred Stock issued to each of the
Shareholders  shall be subject to a prohibition  on transfer for the twelve (12)
month period immediately  following the Closing and the certificates  evidencing
such shares shall bear a legend to that effect.  Such shares of Buyer  Preferred
Stock subject to such  prohibition on transfer are sometimes  referred to herein
as the "RESTRICTED SHARES."

             (b) ISSUANCE TO  REGISTERED  HOLDERS.  If any portion of the Merger
Consideration  is to be issued to a person other than the person in whose name a
certificate for Argentys  Shares is registered,  it shall be a condition to such
payment  that  such  certificate  shall be  surrendered  and  shall be  properly
endorsed or shall be  otherwise  in proper form for transfer and that the person
requesting such payment shall have paid any transfer and other taxes required by
reason of such payment in a name other than that of the registered holder of the
certificate  or  instrument   surrendered  or  shall  have  established  to  the
satisfaction of the Surviving  Corporation that such tax either has been paid or
is not payable.

             (c) STOCK TRANSFER BOOKS CLOSED.  At the Effective  Time, the stock
transfer  books  of  Argentys  shall  be  closed  and  there  shall  not  be any
registration  of  transfers  of  Argentys  Shares  thereafter  on the records of
Argentys.

             (d) NO DIVIDENDS. After the Effective Time, no dividends,  interest
or other distributions shall be paid to the holder of any Argentys Shares.

                                       3
<PAGE>

             (e) NO  FURTHER  RIGHTS.  After  the  Effective  Time,  holders  of
Certificates shall cease to have any rights as shareholders of Argentys,  except
as provided herein or under the DGCL.

         1.7  CERTIFICATE  OF  INCORPORATION  OF SURVIVING  CORPORATION.  At the
Effective  Time,  the  certificate  of  incorporation  of  Buyer,  as in  effect
immediately  prior to the  Effective  Time,  which shall be in the form attached
hereto  as  EXHIBIT  1.7,  shall  be the  certificate  of  incorporation  of the
Surviving  Corporation  (the "SURVIVING  CHARTER") until  thereafter  amended as
provided by the DGCL and such certificate of incorporation.

         1.8 BYLAWS OF THE SURVIVING  CORPORATION.  At the Effective  Time,  the
bylaws of Buyer, as in effect  immediately  prior to the Effective  Time,  which
shall be in the form attached  hereto as EXHIBIT 1.8, shall be the bylaws of the
Surviving  Corporation  (the  "SURVIVING  BYLAWS") until  thereafter  amended as
provided by the DGCL and such bylaws.

         1.9 DIRECTORS AND OFFICERS OF THE SURVIVING CORPORATION.

             (a) The Directors of the Surviving Corporation shall be the persons
listed on EXHIBIT  1.9,  each to hold office in  accordance  with the  Surviving
Charter and the Surviving Bylaws.

             (b) The officers of Buyer  immediately  prior to the Effective Time
shall be the  officers  of the  Surviving  Corporation,  each to hold  office in
accordance with the laws of the State of Delaware, the Surviving Charter and the
Surviving Bylaws.

         1.10  EXEMPTION FROM  REGISTRATION.  The Merger  Consideration  will be
issued in a transaction  exempt from  registration  under the  Securities Act of
1933, as amended (the "Securities Act"), by reason of section 4(2) thereof.

         1.11  SHAREHOLDERS'  REPRESENTATIVE.  The  Shareholders  hereby appoint
Ampersand as the true and lawful agent and  attorney-in-fact of the Shareholders
(the "SHAREHOLDERS'  REPRESENTATIVE")  with full power of substitution to act in
the name, place and stead of the  Shareholders  with respect to the surrender of
the stock certificates owned by the Shareholders to Buyer in accordance with the
terms and provisions of this Agreement, and to act on behalf of the Shareholders
in any litigation or arbitration  involving this  Agreement,  do or refrain from
doing all such  further acts and things,  and execute all such  documents as the
Shareholders'  Representative  shall deem necessary or appropriate in connection
with  the  transactions  contemplated  by  this  Agreement,  including,  without
limitation, the power:

             (a) to act for the Shareholders  with regard to matters  pertaining
to  indemnification  referred  to in this  Agreement,  including  the  power  to
compromise  any indemnity  claim on behalf of the  Shareholders  and to transact
matters of litigation;

             (b) to execute and deliver all ancillary  agreements,  certificates
and  documents  that  the  Shareholders'   Representative   deems  necessary  or
appropriate in connection with the consummation of the transactions contemplated
by this Agreement;

             (c) to do or refrain  from doing any  further act or deed on behalf
of the Shareholders  that the

                                       4
<PAGE>

Shareholders'   Representative  deems  necessary  or  appropriate  in  his  sole
discretion  relating  to the  subject  matter  of this  Agreement  as fully  and
completely as the Shareholders could do if personally present; and

             (d) to receive  service of  process in  connection  with any claims
under this Agreement.

         The  appointment of the  Shareholders'  Representative  shall be deemed
coupled with an interest and shall be  irrevocable,  and Buyer may  conclusively
and  absolutely  rely,  without  inquiry,  upon any action of the  Shareholders'
Representative in all matters referred to herein.

         If  Ampersand   resigns  or  is  otherwise   unable  to  serve  as  the
Shareholders'  Representative,  the successor Shareholders' Representative shall
be designated in writing by the  Shareholders  who hold a majority of the shares
of Buyer Series A Preferred Stock issued pursuant hereto.

         If any individual  Shareholders should die or become incapacitated,  if
any trust or estate  should  terminate or if any other such event should  occur,
any action taken by the  Shareholders'  Representative  pursuant to this Section
1.11  shall be as valid as if such  death or  incapacity,  termination  or other
event  had  not  occurred,  regardless  of  whether  or  not  the  Shareholders'
Representative  or Buyer shall have received  notice of such death,  incapacity,
termination or other event.

         All  notices  required  to  be  made  or  delivered  by  Buyer  to  the
Shareholders  shall be made to the Shareholders'  Representative for the benefit
of the Shareholders and shall discharge in full all notice requirements of Buyer
to the Shareholders  with respect thereto.  The Shareholders  hereby confirm all
that the Shareholders'  Representative shall do or cause to be done by virtue of
its appointment as the Shareholders' Representative.

         The Shareholders'  Representative shall act for the Shareholders on all
of the  matters  set forth in this  Agreement  in the manner  the  Shareholders'
Representative  believes  to be in the best  interest  of the  Shareholders  and
consistent with the  obligations  under this  Agreement,  but the  Shareholders'
Representative  shall not be  responsible  to the  Shareholders  for any loss or
damages the  Shareholders  may suffer by the  performance  by the  Shareholders'
Representative  of its duties  under this  Agreement,  other than loss or damage
arising from willful violation of the law by the Shareholders' Representative of
its duties under this Agreement. The Shareholders'  Representative and its legal
representatives  shall be held harmless by the Shareholders from and indemnified
against any loss or damages arising out of or in connection with the performance
of its obligations in accordance  with the provisions of this Agreement,  except
for any of the foregoing  arising out of the willful violation of the law by the
Shareholders'  Representative of its duties hereunder.  The foregoing  indemnity
shall   survive  the   resignation   or   substitution   of  the   Shareholders'
Representative.

                                       5
<PAGE>

                                   ARTICLE II
                   REPRESENTATIONS AND WARRANTIES OF ARGENTYS

         As an  inducement  to  Buyer  to  enter  into  this  Agreement  and  to
consummate the transactions  contemplated hereby, Argentys hereby represents and
warrants to Buyer as follows:

         2.1 ORGANIZATION AND QUALIFICATION; SUBSIDIARIES; CAPITALIZATION.

             (a) Argentys is a corporation duly organized,  validly existing and
in good standing under the laws of the jurisdiction of its  incorporation and is
duly licensed or qualified to transact business as a foreign  corporation and is
in  good  standing  in  each  jurisdiction   listed  on  SCHEDULE  2.1(A),  such
jurisdictions  being the only  jurisdictions  in which the  nature of  Argentys'
business or the  character of the  properties  owned or leased by Argentys  with
respect to such business requires such licensing or qualification,  except where
failure to be so qualified would not have a material adverse effect on Argentys.

             (b)  Argentys  does not have any  Subsidiaries,  whether  direct or
indirect. As used herein, the term "Subsidiary" or "Subsidiaries" of a specified
party shall mean any other person (which shall  include any entity),  whether or
not  capitalized,  in which such party owns,  directly or indirectly,  more than
fifty percent (50%) of the stock or other equity  interests of such other person
the  holders of which are  generally  entitled  to vote for the  election of the
board of directors or other  governing  body of such other person,  or which may
effectively be controlled, directly or indirectly, by such person.

             (c) The  authorized  capital  stock of  Argentys is as set forth on
SCHEDULE 2.1(C). The number of Argentys Shares issued and outstanding or held in
treasury  as of the  date  hereof  are as set  forth  on  SCHEDULE  2.1(C).  All
outstanding  Argentys  Shares are, and all Argentys  Shares  subject to issuance
under  outstanding  options,   warrants  or  convertible  securities  are,  duly
authorized  and,  upon  issuance on the terms and  conditions  specified  in the
instruments pursuant to which they are issuable, shall be, validly issued, fully
paid and nonassessable and not subject to or issued in violation of any purchase
option,  call option,  right of first refusal,  preemptive  right,  subscription
right  or  any  similar  right  under  any  provision  of  the  DGCL,  Argentys'
certificate of  incorporation  or bylaws or any agreement to which Argentys is a
party or by which it is  otherwise  bound.  All of the  issued  and  outstanding
securities  of  Argentys  have been  offered,  issued  and sold by  Argentys  in
compliance in all material respects with applicable Federal and state securities
laws.

             (d)  Except  as set  forth on  SCHEDULE  2.1(D):  (i)  there are no
issued, reserved for issuance or outstanding  subscriptions,  options, warrants,
puts,   calls,   rights,   exchangeable  or  convertible   securities  or  other
commitments,  obligations  or  agreements  of any  kind or  character  (oral  or
written,  contingent  or  otherwise)  to purchase or acquire  from  Argentys any
shares of capital stock or other  securities  of Argentys,  (ii) Argentys has no
obligation  (direct or  indirect,  contingent  or  otherwise)  to issue any such
subscriptions,   options,   warrants,  puts,  calls,  rights,   exchangeable  or
convertible  securities or other  commitments,  obligations or agreements of any
kind or character (oral or written, contingent or otherwise), (iii) Argentys has
no  obligation  to issue or  distribute  to holders of any shares of its capital
stock or other  securities any evidences of  indebtedness or assets of Argentys,
(iv) Argentys has no obligation (direct or indirect, contingent

                                       6
<PAGE>

or  otherwise)  to  purchase,  redeem  or  otherwise  acquire,  or  cause  to be
purchased,  redeemed or otherwise acquired, any shares of capital stock or other
securities  of Argentys or any  interest  therein or to pay any dividend or make
any other distribution in respect thereof;  (v) there are no bonds,  debentures,
notes or other indebtedness of Argentys with voting rights (or convertible into,
or  exchangeable  for,  securities  with voting  rights) on any matters on which
shareholders  of Argentys may vote and (vi) no other shares of capital  stock or
other securities of Argentys are issued, reserved for issuance or outstanding.

             (e) True and  complete  copies of all  agreements  and  instruments
relating to or issued under any Argentys equity  incentive plan ("ARGENTYS STOCK
PLANS") have been made available to Buyer,  and such  agreements and instruments
have not been amended,  modified or  supplemented,  and there are no agreements,
oral or written,  to amend, modify or supplement such agreements or instruments.
SCHEDULE  2.1(E) sets forth the number of shares of capital  stock  reserved for
issuance  pursuant to the Argentys  Stock Plans and the maximum number of shares
of capital stock or securities of Argentys to be issued upon the exercise of all
outstanding options, warrants or similar rights or the conversion of convertible
securities.

             (f) To the  knowledge of Argentys,  except as set forth in SCHEDULE
2.1(F),  there are no voting  trusts,  proxies  or other  voting  agreements  or
understandings  with  respect  to  the  shares  of  capital  stock  of or  other
securities of Argentys.

         2.2 CORPORATE POWER AND AUTHORITY. Argentys has the corporate power and
authority  to own and  hold its  properties  and to  carry  on its  business  as
presently conducted and as currently intended to be conducted.  Argentys has the
corporate power and authority to execute, deliver and perform this Agreement and
the other documents and instruments contemplated hereby. The execution, delivery
and performance of this Agreement and the documents  contemplated hereby and the
consummation of the transactions  contemplated hereby and thereby have been duly
authorized  and  approved by  Argentys.  This  Agreement,  and each of the other
agreements,  documents and  instruments to be executed and delivered by Argentys
have been duly executed and delivered by, and  constitute  the legal,  valid and
binding obligation of, Argentys  enforceable against Argentys in accordance with
their terms, subject to the effect of any applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting creditors' rights generally and
subject,  as to  enforceability,  to the effect of general  principles of equity
(regardless  of whether such  enforceability  is  considered  in a proceeding in
equity or at law).

         2.3 VALIDITY, ETC. Neither the execution and delivery of this Agreement
and the other documents and instruments contemplated hereby, the consummation of
the  transactions  contemplated  hereby or thereby,  nor the performance of this
Agreement and such other  agreements in compliance with the terms and conditions
hereof and thereof  will (i) violate,  conflict  with or result in any breach of
any trust agreement,  certificate of  incorporation,  bylaw,  judgment,  decree,
order, statute or regulation  applicable to Argentys,  (ii) require any consent,
approval,  authorization  or permit of, or filing with or  notification  to, any
governmental or regulatory  authority,  except for the filing of the Certificate
of Merger and except as set forth in SCHEDULE 2.3, (iii) violate,  conflict with
or result  in a  breach,  default  or  termination  or give rise to any right of
termination, cancellation or acceleration of the maturity of any payment date of
any of  the  obligations  of  Argentys  or  increase  or  otherwise  affect  the
obligations of Argentys under

                                       7
<PAGE>

any law, rule, regulation or any judgment,  decree, order,  governmental permit,
license or order or any of the terms,  conditions  or provisions of any material
mortgage,  indenture, note, license, agreement or other instrument or obligation
applicable to Argentys or to Argentys'  ability to consummate  the  transactions
contemplated  hereby  or  thereby,  except  for  such  defaults  (or  rights  of
termination,  cancellation or  acceleration)  as to which  requisite  waivers or
consents  have been  obtained in writing and provided to Buyer,  or (iv) violate
any order, writ, injunction,  decree,  statute, rule or regulation applicable to
Argentys.

         2.4 FINANCIAL  STATEMENTS.  Argentys has previously furnished to Buyer,
and attached  hereto as SCHEDULE 2.4 are, the balance sheet relating to Argentys
as at March 31, 2003 (the "ARGENTYS  BALANCE SHEET"),  and the related statement
of income for the period from October 1, 2002 through  March 31, 2003.  All such
financial  statements  for  Argentys  (collectively,   the  "ARGENTYS  FINANCIAL
STATEMENTS")  were prepared from the books and records of Argentys,  which books
and records are  complete  and correct in all  material  respects.  The Argentys
Financial Statements fairly present the financial position of Argentys as of the
date thereof. The Argentys Financial Statements reflect reserves appropriate and
adequate for all known material liabilities and reasonably anticipated losses.

         2.5 ABSENCE OF UNDISCLOSED LIABILITIES.  Except as and to the extent of
the amounts  specifically  reflected or reserved against in the Argentys Balance
Sheet,  Argentys  does not have any  liabilities  or  obligations  of any nature
whatsoever,  due or to become due, accrued,  absolute,  contingent or otherwise,
except for  liabilities  and  obligations  incurred  in the  ordinary  course of
business and consistent with past practice.

         2.6 ABSENCE OF ADVERSE  CHANGE;  CONDUCT OF  BUSINESS.  Since March 31,
2003,  there has been no material adverse change in the business of Argentys and
there is no condition or development or contingency of any kind existing  which,
so far as  reasonably  can be  foreseen  by  Argentys,  may  result  in any such
material adverse change. Without limiting the foregoing,  except as disclosed on
SCHEDULE 2.6, since March 31, 2003 there has not been, occurred or arisen:

                         (i)       Any damage,  destruction or loss to any asset
                                   (whether or not covered by  insurance)  that,
                                   individually or in the aggregate,  would have
                                   a material  adverse effect on the business or
                                   prospects of Argentys;

                         (ii)      Any change in the business or  operations  of
                                   Argentys or in the manner of conducting  such
                                   business or sale or other  disposition of any
                                   right,  title or interest in or to any assets
                                   or  properties  used in its  business  or any
                                   revenues derived  therefrom other than in the
                                   ordinary course of business;

                         (iii)     Any general  increase in any  compensation or
                                   benefits  payable  to any  class  or group of
                                   employees of Argentys other than normal merit
                                   increases or any increase in the compensation
                                   payable or to become payable to any employees
                                   whose total  compensation after such increase
                                   would exceed $50,000 per annum  (collectively
                                   "ARGENTYS  KEY   EMPLOYEES")  or  any  bonus,
                                   service, pension,

                                       8
<PAGE>

                                   award,   percentage   compensation  or  other
                                   benefit  paid,  granted  or accrued to or for
                                   the benefit of any Argentys Key Employee;

                         (iv)      Any  material  adverse  change in the working
                                   capital,    financial   condition,    assets,
                                   liabilities,   business   or   prospects   of
                                   Argentys;

                         (v)       Any loan, advance, agreement,  arrangement or
                                   transaction    between   Argentys   and   any
                                   employees    of    Argentys,    except    for
                                   compensation at rates not exceeding the rates
                                   of  compensation  in  effect  as of March 31,
                                   2003  and  advances   made  to  employees  of
                                   Argentys for ordinary and customary  business
                                   expenses   in   reasonable   amounts  in  the
                                   ordinary  course of such business  consistent
                                   with past practice;

                         (vi)      Any sale,  assignment  or  transfer of any of
                                   the  tangible  assets used by Argentys in its
                                   business,  except for sales of inventories in
                                   the  ordinary  course of business  consistent
                                   with past practice,  or  cancellation  of any
                                   debt or claim owing to or owed by Argentys;

                         (vii)     Any sale,  assignment,  transfer  or grant of
                                   any license or sublicense with respect to any
                                   patent, trademark,  trade name, service mark,
                                   copyright,  trade secret or other  intangible
                                   asset  used  or  useful  to  Argentys  in its
                                   business,  other  than  licenses  granted  to
                                   customers in the ordinary  course of business
                                   consistent with past practice;

                         (viii)    Any material change in the manner of business
                                   or operations of Argentys;

                         (ix)      Any  material   transaction   except  in  the
                                   ordinary course of business;

                         (x)       Any  acceleration of billings to customers of
                                   Argentys,  acceleration of any collections of
                                   receivables   in  exchange   for   discounted
                                   products or  services or other  consideration
                                   or  concessions  or as a result of  increased
                                   efforts,  failure to pay accounts  payable of
                                   Argentys in the  ordinary  course of business
                                   or any change in the method of  accounting or
                                   accounting practice or policy of Argentys;

                         (xi)      Any amendment or modification of any material
                                   contract,  agreement,  franchise,  permit, or
                                   license; or

                         (xii)     Any  commitment  (contingent or otherwise) to
                                   do any of the foregoing.

         2.7 INVENTORIES.  All of Argentys'  inventory reflected on the Argentys
Balance Sheet or thereafter  acquired (and not subsequently sold in the ordinary
course  of  business)  consist  of items of a  quality  and  quantity  usable or
saleable in the ordinary course of business as first quality goods. Each item of
such  inventory is valued on the Argentys  Balance Sheet at the lower of cost or
market,  by the first-in,  first-out  method.  The  inventories  and supplies of
Argentys are

                                       9
<PAGE>

at normal and  adequate  levels for the  continuation  of such  business  in the
ordinary course.  Argentys is not under any obligation or liability with respect
to accepting  returns of items of inventory or  merchandise in the possession of
its customers,  other than in the ordinary  course of business  consistent  with
past practice.

         2.8 RECEIVABLES. All receivables (whether notes, accounts or otherwise)
of Argentys  (a) have arisen only from bona fide  transactions  in the  ordinary
course  of  business,   (b)  to  the  knowledge  of  Argentys   represent  valid
obligations,  and (c) are owned by Argentys  free of all claims.  No discount or
allowance from any  receivable  has been made or agreed to, and none  represents
billings prior to actual sale of goods or provision of services.

         2.9 TAXES.  Except as set forth on SCHEDULE 2.9, all material  Federal,
state,  local and foreign  tax  returns and tax reports  required to be filed by
Argentys  on or  before  the  date  hereof  have  been  timely  filed  with  the
appropriate governmental agencies in all jurisdictions in which such returns and
reports are  required to be filed and all amounts  shown as owing  thereon  have
been  paid.  All  material  taxes  (including,   without   limitation,   income,
accumulated earnings,  property, sales, use, franchise,  value added, employees'
income  withholding  and social security taxes) which have become due or payable
or required to be  collected  by Argentys or as  otherwise  attributable  to any
periods  ending on or before  the date  hereof  and the  Effective  Time and all
interest and penalties thereon,  whether disputed or not, have been paid or will
be paid in full on or  prior  to the  Effective  Time.  Regarding  employees  of
Argentys,  all deposits  required by law to be made by Argentys  with respect to
withholding  taxes have been duly made,  and as of the  Effective  Time all such
deposits will have been made. Except as reflected on the Argentys Balance Sheet,
Argentys  is not on the date  hereof,  and will  not be at the  Effective  Time,
liable for the payment of any taxes, and the Surviving Corporation shall have no
liability  for any taxes  related to the  ownership or operation of the business
prior to the Effective Time. Argentys has not taken or failed to take any action
which  action  or  failure  to act  could  create  any  tax  lien  on any of its
properties or assets.

         2.10 LITIGATION.  Except as set forth on SCHEDULE 2.10, there is no (a)
action, suit, claim, proceeding or investigation pending or, to the knowledge of
Argentys,  threatened against Argentys, at law or in equity, or before or by any
Federal, state, municipal or other governmental department,  commission,  board,
bureau,  agency  or  instrumentality,   domestic  or  foreign,  (b)  arbitration
proceeding to which Argentys is a party, or (c) governmental inquiry pending or,
to the knowledge of Argentys,  threatened in writing against Argentys. There are
no outstanding orders,  writs,  judgments,  injunctions or decrees of any court,
governmental agency or arbitration tribunal against or naming Argentys. Argentys
is not in default with respect to any order,  writ,  injunction or decree naming
it from any court or of any  Federal,  state,  municipal  or other  governmental
department,  commission,  board, bureau, agency or instrumentality,  domestic or
foreign.  There is no action or suit by Argentys  pending or threatened  against
others. To the knowledge of Argentys,  there are no facts or circumstances which
may result in institution of any action, suit, claim or legal, administrative or
arbitration  proceeding or  investigation  against  Argentys with respect to its
business or the transactions contemplated hereby.

         2.11  CERTAIN  PRACTICES.  Neither  Argentys nor any of its officers or
employees  have  directly  given or agreed in  writing  to give any  significant
rebate, gift or similar benefit to any supplier, customer, governmental employee
or other  person who was, is or may be in a position

                                       10
<PAGE>

to help or hinder Argentys with respect to its business or operations (or assist
in connection with any actual or proposed  transaction)  which (i) could subject
Argentys,  Buyer or the  Surviving  Corporation  to any damage or penalty in any
civil,  criminal  or  governmental  litigation  or  proceeding,  or  (ii) if not
continued in the future, could have a material adverse effect on its business.

         2.12 COMPLIANCE WITH LAW. To the knowledge of Argentys, Argentys is not
subject to any judgment,  order,  writ,  injunction,  or decree that  materially
adversely  affects,  individually  or in  the  aggregate,  its  business  or its
operations,  properties,  assets or condition  (financial  or  otherwise).  With
respect to its  business,  Argentys has complied in all material  respects  with
all,  and is  not  in  material  default  under  any,  laws,  ordinances,  legal
requirements,  rules,  regulations and orders  applicable to it, its operations,
properties,  assets,  products and  services.  There is no existing  law,  rule,
regulation  or order,  and  Argentys  is not aware of any  proposed  law,  rule,
regulation  or  order,  whether  Federal  or  state,  which  would  prohibit  or
materially  restrict the Surviving  Corporation  from,  or otherwise  materially
adversely affect the Surviving  Corporation in,  conducting such business in any
jurisdiction in which such business is now conducted.

         2.13 LICENSES AND PERMITS.  SCHEDULE 2.13 lists all material  licenses,
permits, pending applications, consents, approvals and authorizations of or from
any  public or  governmental  agency,  used in the  conduct of the  business  of
Argentys  (collectively,  the "ARGENTYS PERMITS") each of which will be duly and
validly transferred to the Surviving Corporation. Argentys has complied with all
conditions and requirements imposed by the Argentys Permits and Argentys has not
received  any  notice,  and has no  reason  to  believe,  that  any  appropriate
authority  intends to cancel or terminate  any of the  Argentys  Permits or that
valid grounds for such cancellation or termination exist. Except as set forth on
SCHEDULE 2.13, no other  material  permits are necessary to operate the business
of  Argentys.  Argentys  owns or has the right to use the  Argentys  Permits  in
accordance  with the terms thereof and such  Argentys  Permits are subject to no
claim, and each Argentys Permit is valid and in full force and effect,  and will
not be terminated or adversely affected by the transactions contemplated hereby.

         2.14 LABOR AND  EMPLOYEE  RELATIONS.  Argentys  is not is a party to or
bound by any collective bargaining agreement with any labor organization,  group
or association  covering any of its employees,  and Argentys has no knowledge of
any  attempt to  organize  any of its  employees  by any  person,  unit or group
seeking to act as their  bargaining  agent.  There are no charges pending or, to
the knowledge of Argentys,  threatened (by employees,  their  representatives or
governmental   authorities)   of  unfair  labor   practices  or  of   employment
discrimination  or of any other  wrongful  action with  respect to any aspect of
employment  of any person  employed or formerly  employed  by  Argentys.  To the
knowledge of Argentys,  no union representation  elections relating to employees
of Argentys have been  scheduled by any  governmental  agency or  authority,  no
organizational  effort is being made with respect to any of such employees,  and
there is no investigation of Argentys'  employment  policies or practices by any
governmental  agency or  authority  pending or, to the  knowledge  of  Argentys,
threatened.  Argentys is not currently,  has not since its  incorporation  been,
involved  in labor  negotiations  with any unit or group  seeking  to become the
bargaining unit for any employees of Argentys.  Argentys has not experienced any
work stoppages  since its  incorporation,  and to the knowledge of Argentys,  no
work stoppage is planned.

                                       11
<PAGE>

         2.15  CERTAIN  EMPLOYEES.  Set forth in SCHEDULE  2.15 is a list of the
names of Argentys'  employees  and  consultants  who perform work for  Argentys,
together with the title or job  classification  of each such person and the base
annual and the total  compensation paid in fiscal year 2003. Except as set forth
on SCHEDULE 2.15, none of such persons has an employment agreement with Argentys
which is not terminable on notice by Argentys without cost or other liability to
Argentys. No person listed on SCHEDULE 2.15 has indicated that he or she intends
to terminate his or her  employment  with Argentys or seek a material  change in
his or her duties or status.

         2.16  EMPLOYEE  BENEFITS.  Set forth on SCHEDULE  2.16 is a list of all
pension,  profit sharing,  retirement,  deferred  compensation,  stock purchase,
stock   option,    incentive,    bonus,   vacation,    severance,    disability,
hospitalization,  medical insurance, life insurance, fringe benefit, welfare and
other employee  benefit plans,  programs or  arrangements  to which employees of
Argentys may be entitled.

             Each "Employee Welfare Benefit Plan" (as defined in Section 3(1) of
the  Employee  Retirement  Income  Security Act of 1974,  as amended  ("ERISA"))
covering any present or former employee of Argentys  subject to the requirements
of the  Consolidated  Omnibus  Budget  Reconciliation  Act of 1985 ("COBRA") has
complied with all  requirements  for  continuation  coverage  under group health
benefit plans under COBRA and there are no claims against Argentys for a failure
or alleged failure to comply with the COBRA continuation requirements.

             Each employee plan of Argentys  which is subject to ERISA  conforms
to, and its operation and  administration are in compliance with, all applicable
requirements of ERISA. To Argentys'  knowledge,  there are no actions,  suits or
claims pending  (other than routine  claims for benefits) or threatened  against
any employee plan or against the assets of any employee plan of Argentys.

         2.17  TANGIBLE  PROPERTIES.  SCHEDULE 2.17 contains a true and complete
list of all material  tangible  personal property owned by or leased to Argentys
(the "ARGENTYS  TANGIBLE PERSONAL  PROPERTY").  Argentys has good and marketable
title free and clear of all claims to the Argentys  Tangible  Personal  Property
owned by Argentys. With respect to Argentys Tangible Personal Property leased by
Argentys as lessee,  all  leases,  conditional  sale  contracts,  franchises  or
licenses pursuant to which Argentys may hold or use (or permit others to hold or
use) such Argentys  Tangible  Personal  Property are valid and in full force and
effect,  and there is not under any of such  instruments any existing default or
event of default by Argentys  or, to the  knowledge  of  Argentys,  by any third
party, or event which with notice or lapse of time or both would constitute such
a  default.  Possession  and use of  such  property  by  Argentys  has not  been
disturbed and no claim has been asserted  against Argentys adverse to its rights
in such leasehold interests. All Argentys Tangible Personal Property is adequate
and usable for the purposes for which it is currently used, is in good operating
condition,  and has been properly  maintained  and  repaired.  Since the date of
incorporation of Argentys, there has not been any interruption of the operations
of the business of Argentys due to the condition of any of the Argentys Tangible
Personal Property.

                                       12
<PAGE>

         2.18 OWNED PREMISES. There is no real estate owned by Argentys.

         2.19 LEASED PREMISES. SCHEDULE 2.19 sets forth a true and complete list
and  description  of each  parcel  of real  property  leased  by  Argentys  (the
"ARGENTYS LEASED PARCELS").  Each lease covering an Argentys Leased Parcel is in
full force and effect  (there  existing no default  under any such lease  which,
with the lapse of time or notice  or  otherwise,  would  entitle  the  lessor to
terminate  the same),  conveys the leased real estate  purported  to be conveyed
thereunder,  is enforceable by Argentys and will be enforceable by the Surviving
Corporation  in  accordance  with its terms.  Argentys  has the right to use the
Argentys  Leased  Parcels in  accordance  with the terms of such leases free and
clear of all claims or other interests or rights of third parties,  except those
which do not or would not have a material  adverse effect on the Argentys Leased
Parcels as used in its  business.  To the  knowledge of  Argentys,  there are no
pending  or  threatened  condemnation  or  similar  proceedings  or  assessments
affecting any of the Argentys  Leased Parcels,  nor is any such  condemnation or
assessment contemplated by any governmental authority.

         2.20 INSURANCE.  SCHEDULE 2.20 correctly  describes (by type,  carrier,
policy number,  limits,  premium,  and expiration  date) the insurance  coverage
carried by Argentys.

         2.21 OUTSTANDING COMMITMENTS. SCHEDULE 2.21 sets forth a description of
all  material  existing  written  or oral  contracts,  agreements,  commitments,
licenses  and   franchises  to  which   Argentys  is  a  party  (the   "ARGENTYS
AGREEMENTS").  Argentys has delivered to Buyer true, correct and complete copies
of all of the  Argentys  Agreements  specified on SCHEDULE  2.21.  Except as set
forth on SCHEDULE 2.21,  Argentys has paid in full all amounts due from Argentys
as of the date hereof under each Argentys Agreement  identified in SCHEDULE 2.21
and as of the Effective Time will have satisfied in full all of its  liabilities
and  obligations  thereunder due in the ordinary course of business prior to the
Effective Time. All of the Argentys Agreements described in SCHEDULE 2.21 are in
full force and effect.  Argentys and, to the  knowledge of Argentys,  each other
party  thereto have  performed all the  obligations  required to be performed by
them to date,  have  received no notice of default and are not in default  (with
due notice or lapse of time or both) under any Argentys Agreement.  Argentys has
no  a  present  expectation  or  intention  of  not  fully  performing  all  its
obligations under each Argentys Agreement,  and Argentys has no knowledge of any
breach or anticipated breach by the other party to any contract or commitment to
which Argentys is a party. None of such Argentys Agreements has been terminated,
no written notice has been given by any party thereto of any alleged  default by
any party thereunder, and Argentys is not aware of any intention or right of any
party to default another party to any such Argentys  Agreement.  There exists no
actual or, to the knowledge of Argentys, threatened termination, cancellation or
material  limitation of the business  relationship of Argentys with any party to
any such Argentys Agreement.

         2.22 INTELLECTUAL PROPERTY.

             (a) As used in this Agreement,  the capitalized term  "INTELLECTUAL
PROPERTY" shall mean trademarks, service marks, trade names, trade dress, logos,
symbols,  designs,  slogans and registrations and applications therefor (and all
interest  therein),  and  general  intangibles  of  like  nature  (collectively,
"TRADEMARKS");  patents and patent  applications,  (including any registrations,
continuations,  continuations in part,  divisionals,  reissues, and renewals for
any of the  foregoing)  (collectively,  "PATENTS");  copyrights  (including  any
registrations, applications and renewals) (collectively, "COPYRIGHTS"); computer
programs and other computer software,

                                       13
<PAGE>

including source codes,  object codes,  related  documentation and instructions;
databases;   domain  names;   marketing  materials;   trade  secrets  and  other
confidential   information,   including  know-how,   proprietary   technologies,
processes,   formulae,   algorithms,   models,   customer   lists,   inventions,
methodologies, architectures, development tools, templates (collectively, "TRADE
SECRETS"); and all documentation and media constituting,  describing or relating
to the foregoing.

             (b) SCHEDULE  2.22 sets forth a complete  and accurate  list of all
(a)  Trademarks;  (b)  domain  name  registrations;  (c)  registered  Copyrights
indicating  for  each  the  applicable  jurisdiction,  registration  number  (or
application  number),  and date issued (or date filed);  (d) registered  Patents
indicating for each the registration  number (or application  number),  and date
issued (or date filed);  and (e) Software (as defined below), in each case owned
by Argentys.

             (c) All  registrations  of Copyrights,  Patents and Trademarks that
are part of the Intellectual  Property owned by Argentys have been maintained in
compliance with all legal requirements  (including the timely  post-registration
filing of affidavits of use and  incontestability  and renewal applications with
respect to such Trademarks),  are valid and enforceable,  and are not subject to
any  maintenance  fees or actions  falling due within ninety (90) days after the
Effective  Time.  To  the  knowledge  of  Argentys,  there  are  no  conflicting
Copyrights, Patents or Trademarks of any third party.

             (d) SCHEDULE  2.22 sets forth a complete  and accurate  list of all
material  license  agreements  granting  any right to use or practice any rights
under any  Intellectual  Property,  whether Argentys is the licensee or licensor
thereunder, and any assignments, consents, term, forbearances to sue, judgments,
orders, settlements or similar obligations relating to any Intellectual Property
to which  Argentys is a party or otherwise  bound  (collectively,  the "ARGENTYS
LICENSE AGREEMENTS"), indicating for each the title, the parties, date executed,
whether or not it is exclusive and the  Intellectual  Property  covered thereby.
The Argentys License  Agreements are valid and binding  obligations of Argentys,
enforceable  in  accordance  with  their  terms,  and  there  exists no event or
condition which will result in a violation or breach of, or constitute  (with or
without  due  notice or lapse of time or both) a default by  Argentys  under any
such Argentys License Agreement.

             (e) No royalties,  honoraria or other fees are payable to any third
parties on SCHEDULE 2.22.

             (f) Argentys owns,  free and clear of all claims and  encumbrances,
or has a valid and enforceable  right to use, all Intellectual  Property used by
it in the conduct of its business.

             (g) Argentys has taken  commercially  reasonable efforts to protect
its  Intellectual  Property,  including  all  reasonable  steps to  protect  its
Intellectual  Property  from  third  party  infringement.  To the  knowledge  of
Argentys,  all of such  Intellectual  Property is valid and  enforceable  and no
third party has challenged the ownership, use, validity or enforceability of any
of such Intellectual Property, except where such invalidity and unenforceability
would not have a material adverse effect.

                                       14
<PAGE>

             (h) To the knowledge of Argentys, the conduct of Argentys' business
as currently  conducted does not infringe upon any Intellectual  Property rights
of any third  party.  Argentys  has not been  notified by any third party of any
allegation  that Argentys'  activities or the conduct of its business  infringes
upon, violates or constitutes the unauthorized use of the Intellectual  Property
rights of any third party.

             (i)  There  is no  litigation  pending  or,  to  the  knowledge  of
Argentys,  threatened  alleging that Argentys' conduct of its business infringes
upon, violates, or constitutes the unauthorized use of the Intellectual Property
rights of any third party nor has any third party  brought or, to the  knowledge
of Argentys,  threatened any litigation challenging the ownership, use, validity
or enforceability of any Intellectual Property of Argentys.

             (j)  To  the   knowledge   of   Argentys,   no   third   party   is
misappropriating,  infringing,  diluting, or violating any Intellectual Property
of  Argentys  and no such claims  have been  brought  against any third party by
Argentys.

             (k)  The  consummation  of the  transactions  contemplated  by this
Agreement   will  not  result  in  the  loss  or  impairment  of  the  Surviving
Corporation's right to own or use any of the Intellectual  Property of Argentys,
nor will the approval of any governmental authority or third party in respect of
the transfer of any such Intellectual Property be required.

             (l) SCHEDULE 2.22 lists all Software (as defined below) (other than
off-the-shelf software applications programs having an acquisition price of less
than  $5,000)  which is  owned,  licensed  to or by  Argentys,  leased  to or by
Argentys, or otherwise used by Argentys, and identifies which Software is owned,
licensed,  leased or otherwise used, as the case may be. SCHEDULE 2.22 lists all
Software  sold,  licensed,  leased or otherwise  distributed  by Argentys to any
third  party,  and  identifies  which  Software is sold,  licensed,  leased,  or
otherwise  distributed  as the case may be. The  Software  set forth in SCHEDULE
2.22 which  Argentys  purports to own was either  developed  (i) by employees of
Argentys or any of its subsidiaries  within the scope of their employment;  (ii)
by independent  contractors who have assigned their rights to Argentys  pursuant
to enforceable  written  agreements;  or (iii) by third parties and  irrevocably
assigned to Argentys.

             For purposes of this Agreement, "SOFTWARE" means any and all of the
following that form a part of the Intellectual  Property (i) computer  programs,
including  any  and all  software  implementations  of  algorithms,  models  and
methodologies,  whether  in  source  code or object  code,  (ii)  databases  and
compilations,  including  any and all data  and  collections  of  data,  whether
machine readable or otherwise,  (iii)  descriptions,  flow-charts and other work
product used to design,  plan,  organize and develop any of the foregoing,  (iv)
the  technology  supporting  any internet  site(s),  and (v) all  documentation,
including user manuals and training materials, relating to any of the foregoing.

             (m) All Trademarks that are part of Argentys' Intellectual Property
have been in continuous use by Argentys. To the knowledge of Argentys, there has
been no prior use of such  Trademarks  or other  action taken by any third party
which would confer upon said third party superior rights in such Trademarks.

                                       15
<PAGE>

             (n) The Copyrights that are part of Argentys' Intellectual Property
relate to works of  authorship  (i) created by employees of Argentys  within the
scope of their  employment or  independent  contractors  who have assigned their
rights to Argentys pursuant to enforceable written agreements,  or (ii) acquired
from the  original  author(s)  or  subsequent  assignees.  To the  knowledge  of
Argentys,  the works  covered by its  Copyrights  were not copies of nor derived
from any work for which Argentys does not own the Copyrights, and no third party
has any claim to authorship or ownership of any part thereof.

             (o) Argentys has and enforces a policy of requiring  each employee,
consultant,  contractor  and  potential  business  partner or investor  who will
receive  access  to  any  Trade  Secrets  to  execute  proprietary  information,
confidentiality  and  assignment   agreements   substantially   consistent  with
Argentys' standard forms thereof (complete and current copies of which have been
delivered to Buyer). Except under confidentiality obligations, there has been no
material disclosure of Argentys confidential information or Trade Secrets.

             (p)  Argentys  has  a  valid   registration  for  the  domain  name
"www.argentys.com." To the knowledge of Argentys, Argentys' registration of such
domain  name is free and clear of any claims  and is in full  force and  effect.
Argentys has paid all fees  required to maintain such  registration  through the
period  ending  ninety (90) days after the  Effective  Time.  None of  Argentys'
registrations  or use of the domain name has been  disturbed or placed "on hold"
and no claim (oral or written) has been asserted against Argentys adverse to its
rights to such domain name.

         2.23  PROPRIETARY  INFORMATION  OF THIRD  PARTIES.  To the knowledge of
Argentys,  no third  party has  claimed  or has  reason to claim that any person
employed by or affiliated with Argentys has (a) violated or may be violating any
of the terms or  conditions  of such  person's  employment,  non-competition  or
non-disclosure  agreement  with  such  third  party,  (b)  disclosed  or  may be
disclosing  or  utilized or may be  utilizing  any trade  secret or  proprietary
information or  documentation  of such third party,  or (c) interfered or may be
interfering in the employment  relationship  between such third party and any of
its present or former employees.  No third party has requested  information from
Argentys  which  suggests  that  such a  claim  might  be  contemplated.  To the
knowledge of Argentys,  no person  employed by or  affiliated  with Argentys has
employed  or  proposes  to  employ  any  trade  secret  or  any  information  or
documentation  proprietary to any former  employer and, no person employed by or
affiliated with Argentys has violated any confidential  relationship  which such
person may have had with any third party,  in connection  with the  development,
manufacture  or sale of any product or proposed  product or the  development  or
sale of any service or proposed service of Argentys,  and Argentys has no reason
to believe there will be any such  employment or violation.  To the knowledge of
Argentys,  neither the execution or delivery of this Agreement, nor the carrying
on of the business of Argentys as officers,  employees or agents by any officer,
director,  employee or consultant of Argentys, will conflict with or result in a
breach of the terms,  conditions  or provisions of or constitute a default under
any contract, covenant or instrument under which any such person is obligated.

         2.24 GOVERNMENTAL  APPROVALS.  Except for the filing of the Certificate
of Merger or as explicitly set forth in SCHEDULE 2.24, no registration or filing
with, or consent or approval of or

                                       16
<PAGE>

other  action  by,  any  Federal,   state  or  other   governmental   agency  or
instrumentality  is or will be necessary for the valid  execution,  delivery and
performance by Argentys of this Agreement.

         2.25 DISCLOSURE. Neither this Agreement, nor any Schedule or Exhibit to
this  Agreement  contains  any untrue  statement  of a material  fact or omits a
material fact necessary to make the statements  contained herein or therein,  in
light of the circumstances in which made, not misleading.

         2.26 ENVIRONMENTAL MATTERS.

         (a) As used in this  Agreement,  the  following  terms  shall  have the
meanings set forth below:

                         (i)       "ENVIRONMENT"     means    surface    waters,
                                   groundwaters,  soil,  subsurface  strata  and
                                   air.

                         (ii)      "ENVIRONMENTAL  CLAIMS"  means  any  and  all
                                   administrative,    regulatory   or   judicial
                                   actions  or  proceedings,   suits,   demands,
                                   demand  letters,  claims,  liens,  notices of
                                   non-compliance or violation,  investigations,
                                   consent orders,  consent judgments or consent
                                   agreements   relating   in  any  way  to  any
                                   Environmental Law or any Environmental Permit
                                   (hereafter  in  this  definition,  "claims"),
                                   including,  without  limitation,  (a) any and
                                   all   claims  by   governmental   authorities
                                   pursuant to any  Environmental  Law,  and (b)
                                   any  and all  claims  by any  person  seeking
                                   damages, contribution,  indemnification, cost
                                   recovery,  compensation or injunctive  relief
                                   pursuant to any Environmental Law or relating
                                   to  Hazardous  Materials  or arising from any
                                   alleged injury or threat of injury to health,
                                   safety or the environment.

                         (iii)     "ENVIRONMENTAL  CONDITION"  means a condition
                                   relating to or arising or resulting  from the
                                   application  of, or a failure to comply with,
                                   any Environmental Law or Environmental Permit
                                   or a  release  or threat  of  release  of any
                                   Hazardous Material into the Environment.

                         (iv)      "ENVIRONMENTAL   LAW"   shall  mean  any  law
                                   pertaining  to: (i) the protection of health,
                                   safety and the indoor or outdoor environment;
                                   (ii) the  conservation,  management or use of
                                   natural  resources  and  wildlife;  (iii) the
                                   protection or use of surface water and ground
                                   water;  (iv)  the  management,   manufacture,
                                   possession,    presence,   use,   generation,
                                   transportation, treatment, storage, disposal,
                                   emission,   discharge,   release,  threatened
                                   release, abatement,  removal,  remediation or
                                   handling  of, or exposure  to, any  Hazardous
                                   Material;  or (v)  pollution  (including  any
                                   emission,  discharge or release to air, land,
                                   surface   water  and   ground   water);   and
                                   includes,     without     limitation,     the
                                   Comprehensive

                                       17
<PAGE>

                                   Environmental,  Response,  Compensation,  and
                                   Liability  Act of 1980,  as amended,  and the
                                   Regulations  promulgated  thereunder  and the
                                   Solid Waste  Disposal  Act,  as  amended,  42
                                   U.S.C. ss.ss. 6901 et seq.

                         (v)       "ENVIRONMENTAL  PERMITS"  means  all  permits
                                   required under any  applicable  Environmental
                                   Law.

                         (vi)      "HAZARDOUS    MATERIAL"    shall   mean   any
                                   substance,   chemical,   compound,   product,
                                   solid,   gas,  liquid,   waste,   by-product,
                                   pollutant,  contaminant or material 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).

             (b) Except as  described  in SCHEDULE  2.26,  to the  knowledge  of
Argentys,  and except as would not,  individually  or in the  aggregate,  have a
material  adverse effect:  (i) Argentys has obtained all  Environmental  Permits
which are required under Environmental Laws; (ii) Argentys is in full compliance
with all terms and conditions of such Environmental  Permits;  (iii) Argentys is
in full compliance with all Environmental  Laws and/or any  Environmental  Claim
applicable  to  Argentys;  (iv) as of the date  hereof,  there  has not been any
Environmental Condition or any other event, condition,  circumstance,  activity,
practice,  incident, action or plan which is reasonably likely to interfere with
or prevent continued compliance with the terms of such Environmental  Permits or
which could reasonably be expected to give rise to any liability pursuant to any
Environmental Law with respect to Argentys,  or, otherwise form the basis of any
Environmental  Claim  against  Argentys;  and (v) Argentys has taken all actions
necessary  under any  Environmental  Law to register  any  products or materials
required to be registered by Argentys (or any of its agents) thereunder.  Except
as set forth in SCHEDULE 2.26,  there is no  Environmental  Claim pending or, to
the knowledge of Argentys,  threatened  against Argentys  relating in any way to
any  Environmental  Condition or Environmental  Laws or any code,  plan,  order,
notice or demand letter issued, entered, promulgated or approved thereunder.

         2.27 CUSTOMERS.  Listed in SCHEDULE 2.27 are the names and addresses of
the twenty (20) most  significant  customers  (by  revenue) of Argentys  for the
six-month  period  ended  March 31,  2003 and the  amount  for  which  each such
customer was invoiced during such period.  Except as disclosed in SCHEDULE 2.27,
Argentys  has not  received  any notice or has any  reason to  believe  that any
significant  customer listed on SCHEDULE 2.27 has ceased,  or will cease, to use
the products, equipment, goods or services or has substantially reduced, or will
substantially reduce, the use of such products,  equipment, goods or services at
any time.

                                  ARTICLE III
               REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

         As an  inducement  to  Buyer  to  enter  into  this  Agreement  and  to
consummate  the  transactions   contemplated  hereby,  each  Shareholder  hereby
represents and warrants to Buyer as follows:

                                       18
<PAGE>

         3.1 INVESTMENT.  Such Shareholder is acquiring the Merger Consideration
for  investment  for  its  or his  own  account  and  not  with  a  view  to the
distribution  or public  offering  thereof  within the meaning of the Securities
Act.

         3.2 NO  REGISTRATION.  Such  Shareholder  understands  that the  Merger
Consideration  has not been  registered  under the Securities Act and may not be
sold or transferred without such registration or an exemption therefrom.

         3.3  SOPHISTICATION.  Such  Shareholder is sufficiently  experienced in
financial  and  business  matters  to be  capable  of  evaluating  the  risk  of
investment in the Merger Consideration and to make an informed decision relating
thereto.

         3.4 FINANCIAL CAPABILITY. Such Shareholder has the financial capability
for making the investment  decision described herein, can afford a complete loss
of the investment, and the investment is a suitable one for each such party.

         3.5 "ACCREDITED INVESTOR". Such Shareholder is an "accredited investor"
as defined in Regulation D under the Securities Act.

         3.6 ACCESS. Prior to the execution and delivery of this Agreement, such
Shareholder has had the opportunity to ask questions of and receive answers from
representatives of Buyer.

         3.7  RESIDENCE.  Such  Shareholder is a resident of the state set forth
opposite his, her or its name on SCHEDULE 3.7.

                                   ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer  represents  and  warrants to Argentys  and the  Shareholders  as
follows:

         4.1 ORGANIZATION AND QUALIFICATION; SUBSIDIARIES; CAPITALIZATION.

             (a) Buyer is a corporation duly organized,  validly existing and in
good standing under the laws of the  jurisdiction  of its  incorporation  and is
duly licensed or qualified to transact business as a foreign  corporation and is
in  good  standing  in  each  jurisdiction   listed  on  SCHEDULE  4.1(A),  such
jurisdictions  being  the only  jurisdictions  in which the  nature  of  Buyer's
business  or the  character  of the  properties  owned or leased  by Buyer  with
respect to such business requires such licensing or qualification,  except where
the  failure  to be so  qualified  would not have a material  adverse  effect on
Buyer.

             (b)  Buyer  does not  have  any  Subsidiaries,  whether  direct  or
indirect.

             (c) The  authorized  capital  stock  of  Buyer  is as set  forth on
SCHEDULE  4.1(C).  The number of shares of each class of capital  stock of Buyer
(the "BUYER  SHARES")  issued and

                                       19
<PAGE>

outstanding  or held in  treasury  as of the  date  hereof  are as set  forth on
SCHEDULE 4.1(C).  All Buyer Shares are, and all Buyer Shares subject to issuance
under  outstanding  options,   warrants  or  convertible  securities  are,  duly
authorized  and,  upon  issuance on the terms and  conditions  specified  in the
instruments pursuant to which they are issuable, shall be, validly issued, fully
paid and nonassessable and not subject to or issued in violation of any purchase
option,  call option,  right of first refusal,  preemptive  right,  subscription
right or any similar right under any provision of the DGCL, Buyer's  certificate
of  incorporation  or bylaws or any  agreement  to which  Buyer is a party or by
which it is otherwise  bound.  All of the issued and  outstanding  securities of
Buyer have been offered,  issued and sold by Buyer in compliance in all material
respects with applicable Federal and state securities laws.

             (d)  Except  as set  forth on  SCHEDULE  4.1(D):  (i)  there are no
issued, reserved for issuance or outstanding  subscriptions,  options, warrants,
puts,   calls,   rights,   exchangeable  or  convertible   securities  or  other
commitments,  obligations  or  agreements  of any  kind or  character  (oral  or
written,  contingent  or otherwise) to purchase or acquire from Buyer any shares
of capital  stock or other  securities  of Buyer,  (ii) Buyer has no  obligation
(direct or indirect,  contingent or otherwise) to issue any such  subscriptions,
options,  warrants, puts, calls, rights,  exchangeable or convertible securities
or other  commitments,  obligations or agreements of any kind or character (oral
or written, contingent or otherwise),  (iii) Buyer has no obligation to issue or
distribute to holders of any shares of its capital stock or other securities any
evidences  of  indebtedness  or assets of Buyer,  (iv)  Buyer has no  obligation
(direct or indirect,  contingent or otherwise) to purchase,  redeem or otherwise
acquire, or cause to be purchased, redeemed or otherwise acquired, any shares of
capital stock or other securities of Buyer or any interest therein or to pay any
dividend or make any other  distribution  in respect  thereof;  (v) there are no
bonds,  debentures,  notes or other indebtedness of Buyer with voting rights (or
convertible  into, or  exchangeable  for,  securities with voting rights) on any
matters  on which  shareholders  of Buyer  may vote and (vi) no other  shares of
capital stock or other securities of Buyer are issued,  reserved for issuance or
outstanding.

             (e) True and  complete  copies of all  agreements  and  instruments
relating  to or issued  under any Buyer  equity  incentive  plan  ("BUYER  STOCK
PLANS")  have  been  made  available  to  Argentys,   and  such  agreements  and
instruments have not been amended,  modified or  supplemented,  and there are no
agreements,  oral or written,  to amend, modify or supplement such agreements or
instruments.  SCHEDULE  4.1(E) sets forth the number of shares of capital  stock
reserved for issuance  pursuant to the Buyer Stock Plans and the maximum  number
of shares of capital stock or securities of Buyer to be issued upon the exercise
of all  outstanding  options,  warrants or similar  rights or the  conversion of
convertible securities.

             (f) To the  knowledge  of Buyer,  except  as set forth in  SCHEDULE
4.1(F),  there are no voting  trusts,  proxies  or other  voting  agreements  or
understandings  with  respect  to  the  shares  of  capital  stock  of or  other
securities of Buyer.

         4.2 CORPORATE POWER AND AUTHORITY.  Buyer has the corporation power and
authority  to own and  hold its  properties  and to  carry  on its  business  as
presently  conducted and as currently  intended to be  conducted.  Buyer has the
corporate power and authority to execute, deliver and perform this Agreement and
the other documents and instruments contemplated hereby. The execution, delivery
and performance of this Agreement and the documents

                                       20
<PAGE>

contemplated hereby and the consummation of the transactions contemplated hereby
and thereby have been duly authorized and approved by Buyer. The issuance,  sale
and  delivery of the Buyer  Series A Preferred  Shares in  accordance  with this
Agreement have been, or will be prior to the Effective  Time, duly authorized by
all necessary corporate action on the part of Buyer. This Agreement, and each of
the other agreements,  documents and instruments to be executed and delivered by
Buyer have been duly executed and delivered by, and constitute the legal,  valid
and binding  obligation of, Buyer  enforceable  against Buyer in accordance with
their terms, subject to the effect of any applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting creditors' rights generally and
subject,  as to  enforceability,  to the effect of general  principles of equity
(regardless  of whether such  enforceability  is  considered  in a proceeding in
equity or at law).

         4.3 VALIDITY, ETC. Neither the execution and delivery of this Agreement
and the other documents and instruments contemplated hereby, the consummation of
the  transactions  contemplated  hereby or thereby,  nor the performance of this
Agreement and such other  agreements in compliance with the terms and conditions
hereof and thereof will (i)  conflict  with or result in any breach of any trust
agreement, certificate of incorporation, bylaw, judgment, decree, order, statute
or  regulation  applicable  to  Buyer,  (ii)  require  any  consent,   approval,
authorization  or permit of, or filing with or notification to, any governmental
or regulatory authority,  except for the filing of the Certificate of Merger and
except as set forth in SCHEDULE 4.3, (iii) violate, conflict with or result in a
breach,  default  or  termination  or give  rise to any  right  of  termination,
cancellation  or  acceleration of the maturity of any payment date of any of the
obligations  of Buyer or increase or otherwise  affect the  obligations of Buyer
under any law, rule,  regulation or any judgment,  decree,  order,  governmental
permit,  license or order or any of the terms,  conditions  or provisions of any
material mortgage,  indenture,  note, license,  agreement or other instrument or
obligation  applicable  to  Buyer  or  to  Buyer's  ability  to  consummate  the
transactions contemplated hereby or thereby, except for such defaults (or rights
of termination,  cancellation or acceleration) as to which requisite  waivers or
consents have been obtained in writing and provided to Argentys, or (iv) violate
any order, writ, injunction,  decree,  statute, rule or regulation applicable to
Buyer.

         4.4 FINANCIAL  STATEMENTS.  Buyer has previously furnished to Argentys,
and attached hereto as SCHEDULE 4.4 are, the unaudited balance sheet relating to
Buyer as at  December  31,  2002 (the "BUYER  BALANCE  SHEET"),  and the related
unaudited  statements  of income and cash flow and notes  thereto for the fiscal
year ended  December 31, 2002. In addition,  Buyer has  previously  furnished to
Argentys,  and attached hereto as SCHEDULE 4.4 is, the balance sheet relating to
Buyer as at December 31,  2001,  and the related  statements  of income and cash
flow and notes  thereto for the fiscal year ended  December 31,  2001.  All such
financial statements for Buyer (collectively,  the "BUYER FINANCIAL STATEMENTS")
have been prepared in accordance with generally accepted  accounting  principles
consistently  applied  and were  prepared  from the books and  records of Buyer,
which books and records are complete and correct in all material  respects.  The
Buyer Financial  Statements fairly present the financial position of Buyer as of
the dates  thereof  and the  results  of its  operations  and cash flows for the
periods  ended on the dates  thereof.  The Buyer  Financial  Statements  reflect
reserves  appropriate  and  adequate  for all  known  material  liabilities  and
reasonably  anticipated  losses as required  by  generally  accepted  accounting
principles.

                                       21
<PAGE>

         4.5 ABSENCE OF UNDISCLOSED LIABILITIES.  Except as and to the extent of
the amounts  specifically  reflected  or reserved  against in the Buyer  Balance
Sheet,  Buyer  does  not have  any  liabilities  or  obligations  of any  nature
whatsoever,  due or to become due, accrued,  absolute,  contingent or otherwise,
except for  liabilities  and  obligations  incurred  in the  ordinary  course of
business and consistent with past practice.

         4.6 ABSENCE OF ADVERSE CHANGE; CONDUCT OF BUSINESS.  Since December 31,
2002,  there has been no material  adverse  change in the  business of Buyer and
there is no condition or development or contingency of any kind existing  which,
so far as reasonably  can be foreseen by Buyer,  may result in any such material
adverse change. Without limiting the foregoing,  except as disclosed on SCHEDULE
4.6, since December 31, 2002 there has not been, occurred or arisen:

                         (i)       Any damage,  destruction or loss to any asset
                                   (whether or not covered by  insurance)  that,
                                   individually or in the aggregate,  would have
                                   a material  adverse effect on the business or
                                   prospects of Buyer;

                         (ii)      Any change in the business or  operations  of
                                   Buyer or in the  manner  of  conducting  such
                                   business or sale or other  disposition of any
                                   right,  title or interest in or to any assets
                                   or  properties  used in its  business  or any
                                   revenues derived  therefrom other than in the
                                   ordinary course of business;

                         (iii)     Any general  increase in any  compensation or
                                   benefits  payable  to any  class  or group of
                                   employees  of Buyer other than  normal  merit
                                   increases or any increase in the compensation
                                   payable or to become payable to any employees
                                   whose total  compensation after such increase
                                   would exceed $50,000 per annum  (collectively
                                   "BUYER KEY EMPLOYEES") or any bonus, service,
                                   pension,  award,  percentage  compensation or
                                   other benefit paid,  granted or accrued to or
                                   for the benefit of any Buyer Key Employee;

                         (iv)      Any  material  adverse  change in the working
                                   capital,    financial   condition,    assets,
                                   liabilities, business or prospects of Buyer;

                         (v)       Any loan, advance, agreement,  arrangement or
                                   transaction  between  Buyer and any employees
                                   of Buyer,  except for  compensation  at rates
                                   not  exceeding the rates of  compensation  in
                                   effect as of December  31, 2002 and  advances
                                   made to  employees  of Buyer for ordinary and
                                   customary  business  expenses  in  reasonable
                                   amounts  in  the  ordinary   course  of  such
                                   business consistent with past practice;

                         (vi)      Any sale,  assignment  or  transfer of any of
                                   the  tangible  assets  used by  Buyer  in its
                                   business,  except for sales of inventories in
                                   the  ordinary  course of business  consistent
                                   with past practice,  or  cancellation  of any
                                   debt or claim owing to or owed by Buyer;

                                       22
<PAGE>

                         (vii)     Any sale,  assignment,  transfer  or grant of
                                   any license or sublicense with respect to any
                                   patent, trademark,  trade name, service mark,
                                   copyright,  trade secret or other  intangible
                                   asset   used  or   useful  to  Buyer  in  its
                                   business,  other  than  licenses  granted  to
                                   customers in the ordinary  course of business
                                   consistent with past practice;

                         (viii)    Any material change in the manner of business
                                   or operations of Buyer;

                         (ix)      Any  material   transaction   except  in  the
                                   ordinary course of business;

                         (x)       Any  acceleration of billings to customers of
                                   Buyer,  acceleration  of any  collections  of
                                   receivables   in  exchange   for   discounted
                                   products or  services or other  consideration
                                   or  concessions  or as a result of  increased
                                   efforts,  failure to pay accounts  payable of
                                   Buyer in the  ordinary  course of business or
                                   any  change in the  method of  accounting  or
                                   accounting practice or policy of Buyer;

                         (xi)      Any amendment or modification of any material
                                   contract,  agreement,  franchise,  permit, or
                                   license; or

                         (xii)     Any  commitment  (contingent or otherwise) to
                                   do any of the foregoing.

         4.7  INVENTORIES.  All of  Buyer's  inventory  reflected  on the  Buyer
Balance Sheet or thereafter  acquired (and not subsequently sold in the ordinary
course  of  business)  consist  of items of a  quality  and  quantity  usable or
saleable in the ordinary course of business as first quality goods. Each item of
such  inventory  is valued on the  Buyer  Balance  Sheet at the lower of cost or
market, by the first-in, first-out method. The inventories and supplies of Buyer
are at normal and adequate  levels for the  continuation of such business in the
ordinary course.  Buyer is not under any obligation or liability with respect to
accepting  returns of items of inventory or merchandise in the possession of its
customers,  other than in the ordinary  course of business  consistent with past
practice.

         4.8 RECEIVABLES. All receivables (whether notes, accounts or otherwise)
of Buyer (a) have arisen only from bona fide transactions in the ordinary course
of business, (b) to the knowledge of Buyer represent valid obligations,  and (c)
are  owned by Buyer  free of all  claims.  No  discount  or  allowance  from any
receivable  has been made or agreed to, and none  represents  billings  prior to
actual sale of goods or provision of services.

         4.9 TAXES. All material Federal,  state,  local and foreign tax returns
and tax reports  required to be filed by Buyer on or before the date hereof have
been  timely   filed  with  the   appropriate   governmental   agencies  in  all
jurisdictions in which such returns and reports are required to be filed and all
amounts shown as owing thereon have been paid.  All material  taxes  (including,
without  limitation,   income,  accumulated  earnings,   property,  sales,  use,
franchise, value added, employees' income withholding and social security taxes)
which have  become due or payable or  required  to be  collected  by Buyer or as
otherwise  attributable  to any periods  ending on or before the date hereof and
the Effective Time and all interest and penalties thereon,

                                       23
<PAGE>

whether  disputed or not,  have been paid or will be paid in full on or prior to
the Effective Time.  Regarding  employees of Buyer, all deposits required by law
to be made by Buyer with respect to  withholding  taxes have been duly made, and
as of the  Effective  Time all such  deposits  will  have been  made.  Except as
reflected on the Buyer Balance Sheet,  Buyer is not on the date hereof, and will
not be, at the  Effective  Time,  liable for the  payment of any taxes,  and the
Surviving  Corporation  shall  have no  liability  for any taxes  related to the
ownership or operation of the business  prior to the Effective  Time.  Buyer has
not taken or failed to take any  action  which  action or  failure  to act could
create any tax lien on any of its properties or assets.

         4.10 LITIGATION.  Except as set forth on SCHEDULE 4.10, there is no (a)
action, suit, claim, proceeding or investigation pending or, to the knowledge of
Buyer,  threatened  against  Buyer,  at law or in  equity,  or  before or by any
Federal, state, municipal or other governmental department,  commission,  board,
bureau,  agency  or  instrumentality,   domestic  or  foreign,  (b)  arbitration
proceeding to which Buyer is a party, or (c) governmental inquiry pending or, to
the  knowledge  of Buyer,  threatened  in writing  against  Buyer.  There are no
outstanding  orders,  writs,  judgments,  injunctions  or  decrees of any court,
governmental  agency or arbitration  tribunal against or naming Buyer.  Buyer is
not in default with respect to any order,  writ,  injunction or decree naming it
from any  court  or of any  Federal,  state,  municipal  or  other  governmental
department,  commission,  board, bureau, agency or instrumentality,  domestic or
foreign.  There is no  action or suit by Buyer  pending  or  threatened  against
others. To the knowledge of Buyer, there are no facts or circumstances which may
result in institution of any action,  suit,  claim or legal,  administrative  or
arbitration  proceeding  or  investigation  against  Buyer  with  respect to its
business or the transactions contemplated hereby.

         4.11  CERTAIN  PRACTICES.  Neither  Buyer  nor any of its  officers  or
employees  have  directly  given or agreed in  writing  to give any  significant
rebate, gift or similar benefit to any supplier, customer, governmental employee
or other person who was, is or may be in a position to help or hinder Buyer with
respect to its business or operations  (or assist in connection  with any actual
or  proposed  transaction)  which  (i)  could  subject  Buyer  or the  Surviving
Corporation  to any damage or penalty in any  civil,  criminal  or  governmental
litigation or proceeding,  or (ii) if not continued in the future,  could have a
material adverse effect on its business.

         4.12  COMPLIANCE  WITH LAW.  To the  knowledge  of Buyer,  Buyer is not
subject to any judgment,  order,  writ,  injunction,  or decree that  materially
adversely  affects,  individually  or in  the  aggregate,  its  business  or its
operations,  properties,  assets or condition  (financial  or  otherwise).  With
respect to its business,  Buyer has complied in all material  respects with all,
and is not in material default under any, laws, ordinances,  legal requirements,
rules,  regulations  and orders  applicable to it, its  operations,  properties,
assets,  products and services.  There is no existing law,  rule,  regulation or
order,  and Buyer is not aware of any proposed law,  rule,  regulation or order,
whether  Federal or state,  which would  prohibit  or  materially  restrict  the
Surviving  Corporation  from,  or  otherwise  materially  adversely  affect  the
Surviving  Corporation in, conducting such business in any jurisdiction in which
such business is now conducted.

         4.13 LICENSES AND PERMITS.  SCHEDULE 4.13 lists all material  licenses,
permits, pending applications, consents, approvals and authorizations of or from
any public or governmental  agency, used in the conduct of the business of Buyer
(collectively,  the  "BUYER  PERMITS")  each of which  will be duly and  validly
transferred to the Surviving Corporation. Buyer has complied

                                       24
<PAGE>

with all conditions and requirements  imposed by the Buyer Permits and Buyer has
not  received  any notice,  and has no reason to believe,  that any  appropriate
authority  intends to cancel or terminate any of the Buyer Permits or that valid
grounds  for such  cancellation  or  termination  exist.  Except as set forth on
SCHEDULE 4.13, no other  material  permits are necessary to operate the business
of Buyer.  Buyer owns or has the right to use the Buyer  Permits  in  accordance
with the terms thereof and such Buyer Permits are subject to no claim,  and each
Buyer Permit is valid and in full force and effect,  and will not be  terminated
or adversely affected by the transactions contemplated hereby.

         4.14 LABOR AND EMPLOYEE RELATIONS.  Buyer is not is a party to or bound
by any collective  bargaining  agreement with any labor  organization,  group or
association  covering  any of its  employees,  and Buyer has no knowledge of any
attempt to organize any of its employees by any person, unit or group seeking to
act as their bargaining agent. There are no charges pending or, to the knowledge
of Buyer,  threatened  (by  employees,  their  representatives  or  governmental
authorities) of unfair labor practices or of employment discrimination or of any
other  wrongful  action with respect to any aspect of  employment  of any person
employed or formerly  employed by Buyer.  To the  knowledge  of Buyer,  no union
representation  elections  relating to employees of Buyer have been scheduled by
any governmental  agency or authority,  no  organizational  effort is being made
with respect to any of such employees,  and there is no investigation of Buyer's
employment policies or practices by any governmental agency or authority pending
or, to the knowledge of Buyer, threatened. Buyer is not currently, has not since
its incorporation  been,  involved in labor  negotiations with any unit or group
seeking to become the bargaining unit for any employees of Buyer.  Buyer has not
experienced any work stoppages since its incorporation,  and to the knowledge of
Buyer, no work stoppage is planned.

         4.15  CERTAIN  EMPLOYEES.  Set forth in SCHEDULE  4.15 is a list of the
names of Buyer's employees and consultants who perform work for Buyer,  together
with the title or job classification of each such person and the base annual and
the total compensation anticipated to be paid in fiscal year 2003. Except as set
forth on SCHEDULE  4.15,  none of such persons has an employment  agreement with
Buyer which is not terminable on notice by Buyer without cost or other liability
to Buyer. No person listed on SCHEDULE 4.15 has indicated that he or she intends
to terminate his or her employment  with Buyer or seek a material  change in his
or her duties or status.

         4.16  EMPLOYEE  BENEFITS.  Set forth on SCHEDULE  4.16 is a list of all
pension,  profit sharing,  retirement,  deferred  compensation,  stock purchase,
stock   option,    incentive,    bonus,   vacation,    severance,    disability,
hospitalization,  medical insurance, life insurance, fringe benefit, welfare and
other employee  benefit plans,  programs or  arrangements  to which employees of
Buyer may be entitled.

             Each "Employee Welfare Benefit Plan" (as defined in Section 3(1) of
ERISA)  covering  any  present  or  former  employee  of  Buyer  subject  to the
requirements  of COBRA  has  complied  with all  requirements  for  continuation
coverage  under group health  benefit  plans under COBRA and there are no claims
against  Buyer  for a  failure  or  alleged  failure  to  comply  with the COBRA
continuation requirements.

                                       25
<PAGE>

             Each employee plan of Buyer which is subject to ERISA  conforms to,
and its operation and  administration  are in compliance  with,  all  applicable
requirements  of ERISA.  To Buyer's  knowledge,  there are no actions,  suits or
claims pending  (other than routine  claims for benefits) or threatened  against
any employee plan or against the assets of any employee plan of Buyer.

         4.17  TANGIBLE  PROPERTIES.  SCHEDULE 4.17 contains a true and complete
list of all material tangible personal property owned by or leased to Buyer (the
"BUYER TANGIBLE  PERSONAL  PROPERTY").  Buyer has good and marketable title free
and clear of all claims to the Buyer Tangible Personal Property. With respect to
Buyer  Tangible  Personal  Property  leased  by Buyer  as  lessee,  all  leases,
conditional sale contracts,  franchises or licenses  pursuant to which Buyer may
hold or use (or  permit  others to hold or use)  such  Buyer  Tangible  Personal
Property  are valid and in full force and effect,  and there is not under any of
such  instruments  any existing  default or event of default by Buyer or, to the
knowledge of Buyer,  by any third party,  or event which with notice or lapse of
time  or  both  would  constitute  such a  default.  Possession  and use of such
property by Buyer has not been disturbed and no claim has been asserted  against
Buyer  adverse to its rights in such  leasehold  interests.  All Buyer  Tangible
Personal  Property  is  adequate  and  usable for the  purposes  for which it is
currently used, is in good operating condition, and has been properly maintained
and repaired.  Since the date of incorporation of Buyer,  there has not been any
interruption  of the operations of the business of Buyer due to the condition of
any of the Buyer Tangible Personal Property.

         4.18 OWNED PREMISES. There is no real estate owned by Buyer.

         4.19 LEASED PREMISES. SCHEDULE 4.19 sets forth a true and complete list
and  description  of each  parcel of real  property  leased by Buyer (the "BUYER
LEASED PARCELS"). Each lease covering a Buyer Leased Parcel is in full force and
effect (there existing no default under any such lease which,  with the lapse of
time or notice or  otherwise,  would  entitle the lessor to terminate the same),
conveys  the  leased  real  estate  purported  to  be  conveyed  thereunder,  is
enforceable  by Buyer and will be  enforceable  by the Surviving  Corporation in
accordance  with its terms.  Buyer has the right to use the Buyer Leased Parcels
in  accordance  with the terms of such  leases  free and clear of all  claims or
other  interests or rights of third parties,  except those which do not or would
not have a material  adverse  effect on the Buyer Leased  Parcels as used in its
business.  To the  knowledge  of  Buyer,  there  are no  pending  or  threatened
condemnation  or similar  proceedings or assessments  affecting any of the Buyer
Leased Parcels,  nor is any such condemnation or assessment  contemplated by any
governmental authority.

         4.20 INSURANCE.  SCHEDULE 4.20 correctly  describes (by type,  carrier,
policy number,  limits,  premium,  and expiration  date) the insurance  coverage
carried by Buyer.

         4.21 OUTSTANDING COMMITMENTS. SCHEDULE 4.21 sets forth a description of
all  material  existing  written  or oral  contracts,  agreements,  commitments,
licenses  and  franchises  to which Buyer is a party (the  "BUYER  AGREEMENTS").
Buyer has made available to Argentys true, correct and complete copies of all of
the Buyer Agreements specified on SCHEDULE 4.21. Except as set forth on SCHEDULE
4.21,  Buyer has paid in full all  amounts  due from Buyer as of the date hereof
under each Buyer  Agreement  identified in SCHEDULE 4.21 and as of the Effective
Time  will  have  satisfied  in  full  all of its  liabilities  and  obligations
thereunder due in the ordinary  course of

                                       26
<PAGE>

business prior to the Effective Time. All of the Buyer  Agreements  described in
SCHEDULE  4.21 are in full force and  effect.  Buyer and,  to the  knowledge  of
Buyer,  each other party thereto have performed all the obligations  required to
be performed by them to date,  have received no notice of default and are not in
default  (with due notice or lapse of time or both)  under any Buyer  Agreement.
Buyer has no a present  expectation or intention of not fully performing all its
obligations under each Buyer Agreement, and Buyer has no knowledge of any breach
or anticipated  breach by the other party to any contract or commitment to which
Buyer is a party. None of such Buyer Agreements has been terminated,  no written
notice has been given by any party  thereto of any alleged  default by any party
thereunder,  and  Buyer is not aware of any  intention  or right of any party to
default another party to any such Buyer Agreement. There exists no actual or, to
the  knowledge  of  Buyer,  threatened  termination,  cancellation  or  material
limitation  of the  business  relationship  of Buyer  with any party to any such
Buyer Agreement.

         4.22 INTELLECTUAL PROPERTY.

             (a) SCHEDULE  4.22 sets forth a complete  and accurate  list of all
(a)  Trademarks;  (b)  domain  name  registrations;  (c)  registered  Copyrights
indicating  for  each  the  applicable  jurisdiction,  registration  number  (or
application  number),  and date issued (or date filed);  (d) registered  Patents
indicating for each the registration  number (or application  number),  and date
issued (or date filed); and (e) Software, in each case owned by Buyer.

             (b) All  registrations  of Copyrights,  Patents and Trademarks that
are part of the  Intellectual  Property  owned by Buyer have been  maintained in
compliance with all legal requirements  (including the timely  post-registration
filing of affidavits of use and  incontestability  and renewal applications with
respect to such Trademarks),  are valid and enforceable,  and are not subject to
any  maintenance  fees or actions  falling due within ninety (90) days after the
Effective Time. To the knowledge of Buyer, there are no conflicting  Copyrights,
Patents or Trademarks of any third party.

             (c) SCHEDULE  4.22 sets forth a complete  and accurate  list of all
material  license  agreements  granting  any right to use or practice any rights
under any  Intellectual  Property,  whether  Buyer is the  licensee  or licensor
thereunder, and any assignments, consents, term, forbearances to sue, judgments,
orders, settlements or similar obligations relating to any Intellectual Property
to which Buyer is a party or otherwise bound  (collectively,  the "BUYER LICENSE
AGREEMENTS"), indicating for each the title, the parties, date executed, whether
or not it is exclusive and the Intellectual  Property covered thereby. The Buyer
License  Agreements are valid and binding  obligations of Buyer,  enforceable in
accordance  with their terms,  and there exists no event or condition which will
result in a violation or breach of, or constitute (with or without due notice or
lapse  of time or  both) a  default  by  Buyer  under  any  such  Buyer  License
Agreement.

             (d) Except as set forth on SCHEDULE  4.22, no royalties,  honoraria
or other fees are payable to any third parties on SCHEDULE 4.22.

             (e) Buyer owns, free and clear of all claims and  encumbrances,  or
has a valid and enforceable  right to use, all Intellectual  Property used by it
in the conduct of its business.

                                       27
<PAGE>

             (f) Buyer has taken commercially  reasonable efforts to protect its
Intellectual   Property,   including  all   reasonable   steps  to  protect  its
Intellectual Property from third party infringement.  To the knowledge of Buyer,
all of such  Intellectual  Property is valid and  enforceable and no third party
has challenged the ownership,  use,  validity or  enforceability  of any of such
Intellectual  Property,  except where such invalidity and unenforceability would
not have a material adverse effect.

             (g) To the knowledge of Buyer,  the conduct of Buyer's  business as
currently  conducted does not infringe upon any Intellectual  Property rights of
any  third  party.  Buyer  has not  been  notified  by any  third  party  of any
allegation  that Buyer's  activities  or the conduct of its  business  infringes
upon, violates or constitutes the unauthorized use of the Intellectual  Property
rights of any third party.

             (h) There is no  litigation  pending or, to the knowledge of Buyer,
threatened  alleging  that  Buyer's  conduct  of its  business  infringes  upon,
violates,  or constitutes  the  unauthorized  use of the  Intellectual  Property
rights of any third party nor has any third party  brought or, to the  knowledge
of Buyer, threatened any litigation challenging the ownership,  use, validity or
enforceability of any Intellectual Property of Buyer.

             (i) To the knowledge of Buyer, no third party is  misappropriating,
infringing,  diluting,  or violating any  Intellectual  Property of Buyer and no
such claims have been brought against any third party by Buyer.

             (j)  The  consummation  of the  transactions  contemplated  by this
Agreement   will  not  result  in  the  loss  or  impairment  of  the  Surviving
Corporation's right to own or use any of the Intellectual Property of Buyer, nor
will the approval of any governmental authority or third party in respect of the
transfer of any such Intellectual Property be required.

             (k)  SCHEDULE  4.22 lists all  Software  (other than  off-the-shelf
software  applications programs having an acquisition price of less than $5,000)
which is owned,  licensed to or by Buyer,  leased to or by Buyer,  or  otherwise
used by Buyer,  and  identifies  which  Software is owned,  licensed,  leased or
otherwise  used,  as the case may be.  SCHEDULE  4.22 lists all  Software  sold,
licensed,  leased or  otherwise  distributed  by Buyer to any third  party,  and
identifies which Software is sold, licensed, leased, or otherwise distributed as
the case may be. The Software set forth in SCHEDULE 4.22 which Buyer purports to
own was either  developed  (i) by employees of Buyer or any of its  subsidiaries
within the scope of their employment;  (ii) by independent  contractors who have
assigned their rights to Buyer pursuant to enforceable  written  agreements;  or
(iii) by third parties and irrevocably assigned to Buyer.

             (l) All Trademarks that are part of Buyer's  Intellectual  Property
have been in continuous use by Buyer. To the knowledge of Buyer,  there has been
no prior use of such  Trademarks  or other action taken by any third party which
would confer upon said third party superior rights in such Trademarks.

             (m) The Copyrights that are part of Buyer's  Intellectual  Property
relate to works of authorship (i) created by employees of Buyer within the scope
of their employment or independent contractors who have assigned their rights to
Buyer  pursuant to  enforceable  written

                                       28
<PAGE>

agreements,   or  (ii)  acquired  from  the  original  author(s)  or  subsequent
assignees.  To the knowledge of Buyer,  the works covered by its Copyrights were
not  copies  of nor  derived  from  any work for  which  Buyer  does not own the
Copyrights,  and no third party has any claim to  authorship or ownership of any
part thereof.

             (n) Buyer has and  enforces a policy of  requiring  each  employee,
consultant,  contractor  and  potential  business  partner or investor  who will
receive  access  to  any  Trade  Secrets  to  execute  proprietary  information,
confidentiality and assignment agreements  substantially consistent with Buyer's
standard  forms  thereof  (complete  and current  copies of which have been made
available to Argentys). Except under confidentiality obligations, there has been
no material disclosure of Buyer confidential information or Trade Secrets.

             (o)  Buyer  has  a  valid   registration   for  the   domain   name
"www.turboworx.com."  To the knowledge of Buyer,  Buyer's  registration  of such
domain  name is free and clear of any claims  and is in full  force and  effect.
Buyer has paid all fees  required  to  maintain  such  registration  through the
period  ending  ninety  (90) days  after the  Effective  Time.  None of  Buyer's
registrations  or use of the domain name has been  disturbed or placed "on hold"
and no claim (oral or written) has been  asserted  against  Buyer adverse to its
rights to such domain name.

         4.23  PROPRIETARY  INFORMATION  OF THIRD  PARTIES.  To the knowledge of
Buyer,  no third  party  has  claimed  or has  reason to claim  that any  person
employed by or affiliated with Buyer has (a) violated or may be violating any of
the  terms  or  conditions  of  such  person's  employment,  non-competition  or
non-disclosure  agreement  with  such  third  party,  (b)  disclosed  or  may be
disclosing  or  utilized or may be  utilizing  any trade  secret or  proprietary
information or  documentation  of such third party,  or (c) interfered or may be
interfering in the employment  relationship  between such third party and any of
its present or former employees.  No third party has requested  information from
Buyer which suggests that such a claim might be  contemplated.  To the knowledge
of Buyer,  no person  employed  by or  affiliated  with  Buyer has  employed  or
proposes  to  employ  any  trade  secret  or any  information  or  documentation
proprietary to any former employer and, no person employed by or affiliated with
Buyer has violated any confidential  relationship which such person may have had
with any third party, in connection with the development, manufacture or sale of
any product or  proposed  product or the  development  or sale of any service or
proposed  service of Buyer, and Buyer has no reason to believe there will be any
such employment or violation.  To the knowledge of Buyer,  neither the execution
or delivery of this  Agreement,  nor the carrying on of the business of Buyer as
officers,  employees or agents by any officer, director,  employee or consultant
of Buyer,  will conflict with or result in a breach of the terms,  conditions or
provisions of or constitute a default under any contract, covenant or instrument
under which any such person is obligated.

         4.24 GOVERNMENTAL  APPROVALS.  Except for the filing of the Certificate
of Merger or as explicitly set forth in SCHEDULE 4.24, no registration or filing
with, or consent or approval of or other action by, any Federal,  state or other
governmental  agency or  instrumentality  is or will be necessary  for the valid
execution, delivery and performance by Buyer of this Agreement.

         4.25 DISCLOSURE. Neither this Agreement, nor any Schedule or Exhibit to
this  Agreement  contains  any untrue  statement  of a material  fact or omits a
material fact necessary to

                                       29
<PAGE>

make the statements  contained herein or therein,  in light of the circumstances
in which made, not misleading.

         4.26  ENVIRONMENTAL  MATTERS.  Except as described in SCHEDULE 4.26, to
the  knowledge  of  Buyer,  and  except  as would  not,  individually  or in the
aggregate,   have  a  material  adverse  effect:  (i)  Buyer  has  obtained  all
Environmental Permits which are required under Environmental Laws; (ii) Buyer is
in full compliance with all terms and conditions of such Environmental  Permits;
(iii)  Buyer  is in full  compliance  with all  Environmental  Laws  and/or  any
Environmental  Claim applicable to Buyer; (iv) as of the date hereof,  there has
not  been  any   Environmental   Condition  or  any  other   event,   condition,
circumstance,  activity,  practice, incident, action or plan which is reasonably
likely to interfere with or prevent continued  compliance with the terms of such
Environmental  Permits or which could reasonably be expected to give rise to any
liability pursuant to any Environmental Law with respect to Buyer, or, otherwise
form the basis of any Environmental Claim against Buyer; and (v) Buyer has taken
all actions  necessary under any  Environmental  Law to register any products or
materials required to be registered by Buyer (or any of its agents)  thereunder.
Except as set forth in SCHEDULE 4.26,  there is no  Environmental  Claim pending
or, to the knowledge of Buyer,  threatened  against Buyer relating in any way to
any  Environmental  Condition or Environmental  Laws or any code,  plan,  order,
notice or demand letter issued, entered, promulgated or approved thereunder.

         4.27 CUSTOMERS.  Listed in SCHEDULE 4.27 are the names and addresses of
the  twenty  (20)  most  significant  customers  (by  revenue)  of Buyer for the
six-month  period  ended  March 31,  2003 and the  amount  for  which  each such
customer was invoiced during such period.  Except as disclosed in SCHEDULE 4.27,
Buyer  has not  received  any  notice  or has any  reason  to  believe  that any
significant  customer listed on SCHEDULE 4.27 has ceased,  or will cease, to use
the products, equipment, goods or services or has substantially reduced, or will
substantially reduce, the use of such products,  equipment, goods or services at
any time.

                                   ARTICLE V
                        CONDITIONS TO BUYER'S OBLIGATIONS

         The  obligation  of Buyer to deliver  the Merger  Consideration  on the
Closing Date and to consummate  the other  transactions  contemplated  hereby is
subject to the  satisfaction,  on or before the Closing  Date,  of the following
conditions each of which may be waived by Buyer in its sole discretion:

         5.1  CONSENTS.  All  requisite  governmental  approvals and consents of
third  parties  identified  by Buyer as  required  to be received to prevent any
material license,  permit or agreement relating to the business of Argentys from
terminating prior to its scheduled termination,  as a result of the consummation
of the transactions contemplated hereby, shall have been obtained.

         5.2 REPRESENTATIONS  AND WARRANTIES TO BE TRUE AND CORRECT.  All of the
representations  and  warranties of Argentys and the  Shareholders  contained in
this  Agreement  or in any  Schedules  or other  documents  attached  hereto  or
referred  to herein or  delivered  pursuant  hereto  or in  connection  with the
transactions contemplated hereby shall be true, correct and

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<PAGE>

complete in all material  respects on and as of the Closing Date. On the Closing
Date, Argentys shall have executed and delivered to Buyer a certificate, in form
and substance satisfactory to Buyer and its counsel, to such effect.

         5.3 PERFORMANCE.  Argentys shall have materially performed and complied
with all covenants and agreements  contained  herein required to be performed or
complied  with by it  prior  to or at the  Closing  Date.  Argentys  shall  have
executed  and  delivered  to  Buyer  a   certificate,   in  form  and  substance
satisfactory  to Buyer and its  counsel,  in writing  to such  effect and to the
further  effect that all of the conditions set forth in this Article V have been
satisfied.

         5.4 NO ADVERSE  CHANGE.  No change shall have occurred or be threatened
in the condition (financial or other) of the business of Argentys which has been
or is or is  reasonably  likely to be  adverse  to its  operations,  properties,
prospects, assets or condition (financial or other).

         5.5 NO  ACTIONS,  SUITS OR  PROCEEDINGS.  As of the  Closing  Date,  no
action,  suit,  investigation or proceeding brought by any person,  corporation,
governmental agency or other entity shall be pending or, to the knowledge of the
parties to this Agreement, threatened, before any court or governmental body (i)
to prohibit or materially restrain, restrict or delay, or to obtain damages or a
discovery  order  in  respect  of  this  Agreement  or the  consummation  of the
transactions contemplated hereby, or (ii) which has had or may have a materially
adverse  effect on the  condition,  financial or otherwise,  or prospects of the
business.  No order,  decree or judgment of any court or governmental body shall
have been issued prohibiting or materially restraining, restricting or delaying,
the  consummation  of  the  transactions  contemplated  by  this  Agreement.  No
insolvency proceeding of any character including without limitation, bankruptcy,
receivership,   reorganization,   dissolution  or  arrangement  with  creditors,
voluntary or  involuntary,  affecting  Argentys  shall be pending,  and Argentys
shall not shall  have  taken any  action  in  contemplation  of, or which  would
constitute the basis for, the institution of any such proceedings.

         5.6 EMPLOYMENT OFFERS. Buyer may, but is not required to, extend offers
of  employment  or  consultancy  to Clive  Mitchell and Alfred von Campe and any
other  employees  identified by Buyer within ten (10) days of the date hereof on
such terms and conditions as Buyer may determine, in its discretion.

         5.7 TERMINATION OF EMPLOYEES.

             (a) Argentys  shall  terminate or accept the  resignation  of Keith
         Ehrlich  and Ted  Bardasz  (the  "Terminated  Argentys  Employees")  as
         employees, directors and/or officers of Argentys;

             (b)  Argentys  or any of the  Shareholders  shall  pay in full  any
         amounts  due to the  Terminated  Argentys  Employees  on or before such
         termination  or  resignation,  and all other fees or costs  incurred in
         connection with such termination or resignation;

             (c) Argentys shall enter into a severance arrangement (a "Severance
         Agreement")  with  each  of  the  Terminated  Argentys  Employees  that
         requires,  as a condition to receiving payments  thereunder,  that each
         such Terminated  Argentys

                                       31
<PAGE>

         Employee provide consulting services to the Surviving Corporation for a
         period  of two  months  (the  "Consulting  Period"),  as  needed by the
         Surviving Corporation during the Consulting Period; and

             (d) Ampersand,  by its execution hereof,  agrees to pay to Buyer or
         the  Surviving  Corporation,  in advance,  funds  sufficient to pay all
         amounts due under the Severance Agreements.

         5.8 CLOSING  DOCUMENTS.  Argentys shall have delivered to Buyer:  (a) a
certificate  of its  President or its  Treasurer as to the truth and accuracy of
the representations and warranties of Argentys set forth in Article II and (b) a
certificate  of its Secretary as to (i) the signing  authority,  incumbency  and
specimen  signature of the  signatories  of this  Agreement and other  documents
signed  on behalf of  Argentys  in  connection  herewith,  (ii) the  resolutions
adopted by the board of  directors of Argentys  authorizing  and  approving  the
execution,  delivery and  performance of this Agreement and the other  documents
executed  in  connection   herewith,   (iii)  the  resolution   adopted  by  the
Shareholders approving the Merger, and (iv) the charter documents and by-laws of
Argentys.

         5.9  STOCKHOLDERS'  AGREEMENT.  All  of  the  Shareholders  shall  have
executed a counterpart signature page to the Amended and Restated  Stockholders'
Agreement attached hereto as EXHIBIT 5.9 (the "STOCKHOLDERS' AGREEMENT").

         5.10 BRIDGE  LOANS.  Those  various  demand notes issued by Argentys to
Ampersand  1999 Limited  Partnership  and Ampersand  1999 Companion Fund Limited
Partnership in the aggregate  principal  amount of $655,000 (the "BRIDGE NOTES")
shall either be (i) cancelled and all outstanding principal and interest thereon
forgiven; or (ii) converted in full into equity securities of Argentys.

         5.11  CERTIFICATE  OF PRINCIPAL  SHAREHOLDERS.  Ampersand  1999 Limited
Partnership  and Ampersand 1999 Companion  Fund Limited  Partnership  shall have
delivered to Buyer a certificate regarding the representations and warranties of
Argentys  set forth in Article II in the form  attached  hereto as EXHIBIT  5.11
(the "PRINCIPAL SHAREHOLDERS' CERTIFICATE").

                                   ARTICLE VI
            CONDITIONS TO ARGENTYS' AND THE SHAREHOLDERS' OBLIGATIONS

         The  obligation  of  Argentys  and  the  Shareholders   consummate  the
transactions  contemplated  hereby is subject to the satisfaction,  on or before
the Closing Date, of the  following  conditions,  each of which may be waived by
Argentys  (on its own  behalf  and on  behalf of the  Shareholders)  in its sole
discretion:

         6.1 REPRESENTATIONS  AND WARRANTIES TO BE TRUE AND CORRECT.  All of the
representations  and  warranties of Buyer  contained in this Agreement or in any
Schedules or other documents  attached hereto or referred to herein or delivered
pursuant hereto or in connection with the transactions contemplated hereby shall
be true,  correct and complete in all material respects on and as of the Closing
Date. On the Closing Date, Buyer shall have executed and

                                       32
<PAGE>

delivered  to Argentys a  certificate,  in form and  substance  satisfactory  to
Argentys and its counsel, to such effect.

         6.2  PERFORMANCE.  Buyer shall have  materially  performed and complied
with all covenants and agreements  contained  herein required to be performed or
complied with by it prior to or at the Closing  Date.  Buyer shall have executed
and delivered to Argentys a certificate,  in form and substance  satisfactory to
Argentys  and its counsel,  in writing to such effect and to the further  effect
that all of the conditions set forth in this Article VI have been satisfied.

         6.3 NO ADVERSE  CHANGE.  No change shall have occurred or be threatened
in the condition (financial or other) of the business of Buyer which has been or
is reasonably  likely to be adverse to its  operations,  properties,  prospects,
assets or condition (financial or other).

         6.4 NO  ACTIONS,  SUITS OR  PROCEEDINGS.  As of the  Closing  Date,  no
action,  suit,  investigation or proceeding brought by any person,  corporation,
governmental agency or other entity shall be pending or, to the knowledge of the
parties to this Agreement, threatened, before any court or governmental body (i)
to prohibit or materially restrain, restrict or delay, or to obtain damages or a
discovery  order  in  respect  of  this  Agreement  or the  consummation  of the
transactions contemplated hereby, or (ii) which has had or may have a materially
adverse  effect on the  condition,  financial or otherwise,  or prospects of the
business.  No order,  decree or judgment of any court or governmental body shall
have been issued prohibiting or materially restraining, restricting or delaying,
the  consummation  of  the  transactions  contemplated  by  this  Agreement.  No
insolvency proceeding of any character including without limitation, bankruptcy,
receivership,   reorganization,   dissolution  or  arrangement  with  creditors,
voluntary or involuntary,  affecting Buyer shall be pending, and Buyer shall not
have taken any action in  contemplation  of, or which would constitute the basis
for, the institution of any such proceedings.

         6.5  CLOSING   DOCUMENTS.   Buyer  shall  have   delivered  the  Merger
Consideration  and (a) a certificate of its President or its Treasurer as to the
truth and accuracy of the  representations  and warranties of Buyer set forth in
Article  IV and  (b) a  certificate  of its  Secretary  as to  (i)  the  signing
authority,  incumbency  and  specimen  signature  of  the  signatories  of  this
Agreement and other documents signed on behalf of Buyer in connection  herewith,
(ii) the resolutions  adopted by the board of directors of Buyer authorizing and
approving the  execution,  delivery and  performance  of this  Agreement and the
other documents executed in connection  herewith,  (iii) the resolutions adopted
by the  shareholders  of Buyer  approving  the  Merger,  and  (iv)  the  charter
documents and by-laws of Buyer.

         6.6   STOCKHOLDERS'   AGREEMENT.   Buyer   shall  have   executed   the
Stockholders' Agreement.

                                  ARTICLE VII
                                 INDEMNIFICATION

         7.1 SURVIVAL. All representations and warranties in this Agreement,  or
in any instrument or document furnished in connection with this Agreement or the
transactions   contemplated   hereby,   shall   survive   the  Closing  and  any
investigation at any time made by or on

                                       33
<PAGE>

behalf of any party for a period of twelve (12) months (the "SURVIVAL  PERIOD").
All such  representations and warranties shall expire at the end of the Survival
Period,  except that (a) claims, if any, asserted in writing prior to the end of
the Survival Period  identified as claims for  indemnification  pursuant to this
Article VII shall survive until finally  resolved and satisfied in full, and (b)
claims,  if any,  which are based  upon  fraud,  which  relate to title or which
assert tax liability shall survive for the full period of the applicable statute
of  limitations,  and  until  finally  resolved  and  satisfied  in full and the
Survival Period shall be extended accordingly with respect to such claims.

         7.2  INDEMNIFICATION  OF  BUYER  BY  THE  SHAREHOLDERS.   Each  of  the
Shareholders,  jointly  and  severally,  hereby  agrees  to  indemnify  and hold
harmless Buyer and Buyer's officers, directors, partners, employees, shareholder
and other owners (other than the Shareholders), and their successors and assigns
(collectively,  the "BUYER INDEMNIFIED PARTIES"), from, against and with respect
to any and all losses,  liabilities,  damages and expenses,  including,  but not
limited  to,  reasonable  attorneys'  fees  and  expenses  ("DAMAGES")  actually
incurred  by Buyer  arising out of any breach of any  representation,  warranty,
covenant,  or  agreement of Argentys  contained in this  Agreement or any of the
certificates  or other  documents  delivered in connection  herewith  (including
without limitation the Principal Shareholders' Certificate) ("ARGENTYS BREACH");
PROVIDED,  HOWEVER, that (i) the Buyer Indemnified Parties shall not be entitled
to  indemnification  hereunder  unless  and  until the  aggregate  amount of all
Damages  suffered by the Buyer  Indemnified  Parties exceeds $10,000 (the "BUYER
INDEMNITY  DEDUCTIBLE")  where  upon  the  Buyer  Indemnified  Parties  shall be
entitled to indemnification hereunder for the entire aggregate amount of Damages
suffered by the Buyer Indemnified  Parties or any Buyer Indemnified  Party, less
the Buyer Indemnity  Deductible of $10,000;  (ii) any claim for  indemnification
hereunder  shall be asserted prior to the expiration of the Survival  Period set
forth in Section 7.1, (iii) the indemnity set forth in this Section 7.2 shall be
limited to, and satisfied  exclusively out of the surrender of Restricted Shares
(which  shall be effected by the  Shareholders  on a pro rata  basis);  (iv) for
purposes hereof,  the Restricted  Shares shall be valued at $0.55 per share; and
(v) after the  Closing,  the  rights of Buyer  Indemnified  Parties  under  this
Section  7.2 shall be the sole and  exclusive  remedy  of the Buyer  Indemnified
Parties for any Argentys.  The parties hereto stipulate and agree that the value
set forth in clause (iv) of the previous  sentence may not represent fair market
value, and that such value may be in excess of or below fair market value.

         7.3  INDEMNIFICATION  OF SHAREHOLDERS BY BUYER.  Buyer hereby agrees to
indemnify  and  hold  harmless  the  Shareholders,  each  of  the  Shareholders'
officers, directors, partners, employees, shareholders and other owners and each
of  their  respective  successors  and  assigns  (the  "SHAREHOLDER  INDEMNIFIED
PARTIES")  against  any  and  all  Damages  arising  out  of any  breach  of any
representation,  warranty,  covenant,  or agreement  of Buyer  contained in this
Agreement  or any of the  certificates  or other  documents  delivered  herewith
("BUYER  BREACH"),  PROVIDED,  HOWEVER,  that  (i) the  Shareholder  Indemnified
Parties shall not be entitled to indemnification  hereunder unless and until the
aggregate amount of all Damages suffered by the Shareholder  Indemnified Parties
exceeds $10,000 (the "SELLER INDEMNITY  DEDUCTIBLE")  where upon the Shareholder
Indemnified  Parties  shall be entitled  to  indemnification  hereunder  for the
entire  aggregate  amount of Damages  suffered  by the  Shareholder  Indemnified
Parties  or  any  Shareholder  Indemnified  Party,  less  the  Seller  Indemnity
Deductible of $10,000;  (ii) any claim for  indemnification  hereunder  shall be
asserted  prior to the  expiration  of the survival  period set forth in Section
7.1, (iii) Buyer's  liability for Damages  hereunder shall not exceed  $880,000,
and

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<PAGE>

(iv) after the Closing, the rights of the Shareholder  Indemnified Parties under
this  Section  7.3 shall be the sole and  exclusive  remedy  of the  Shareholder
Indemnified Parties for any Buyer Breach.

         7.4  CLAIMS FOR  INDEMNIFICATION.  In the event any party  asserts  the
occurrence  of an  indemnifiable  event  pursuant to this Article VII, the party
claiming  indemnification  (the "INDEMNIFIED PARTY") shall provide prompt notice
to the party required to provide  indemnification  (the  "INDEMNIFYING  PARTY"),
specifying in reasonable detail the facts and circumstances with respect to such
claim and the basis for which  indemnification is available  hereunder.  If such
event involves the claim of any third party, the  Indemnifying  Party shall have
the right to control the defense or settlement of such claim; provided, however,
that (a) the  Indemnified  Party shall be entitled to participate in the defense
of such claim at its own expense,  (b) the  Indemnifying  Party shall obtain the
prior  written  approval  of the  Indemnified  Party  before  entering  into any
settlement  of such  claim if,  pursuant  to or as a result of such  settlement,
injunctive or other non-monetary relief would be imposed against the Indemnified
Party, (c) the Indemnifying Party shall not be entitled to control (but shall be
entitled  to  participate  at its  own  expense  in the  defense  of),  and  the
Indemnified  Party shall be entitled to have sole control over, and shall assume
all expense with respect to the defense or settlement of any claim to the extent
such claim seeks an order,  injunction  or other  equitable  relief  against the
Indemnified  Party which,  if successful,  could  materially  interfere with the
business, operations, assets, condition (financial or otherwise) or prospects of
the Indemnified Party, provided that the Indemnified Party shall provide written
notice to the  Indemnifying  Party of its  election to assume  control  over the
defense of such claim pursuant to this Section 7.4.

         In the  event  that  the  Indemnifying  Party  shall  be  obligated  to
indemnify the Indemnified  Party pursuant to this Article VII, the  Indemnifying
Party shall, upon payment of such indemnity in full, be subrogated to all rights
of the Indemnified Party with respect to the claim to which such indemnification
relates.

                                  ARTICLE VIII
                                 MISCELLANEOUS

         8.1 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 (i) delivered by hand, (ii) made by telex,
telecopy or facsimile transmission,  (iii) sent by recognized overnight courier,
or (iv) sent by registered or certified mail, return receipt requested,  postage
prepaid.

            If to Buyer:     TurboWorx, Inc.
                             One Century Tower
                             265 Church Street
                             New Haven, CT 06510
                             Attention:  President
                             Facsimile: (203) 776-4074

            With a copy to:  Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
                             Connecticut Financial Center
                             157 Church Street
                             New Haven, CT 06510
                             Attention: Frank J. Marco, Esq.
                             Facsimile: (203) 777-7111

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<PAGE>

            If to Argentys,
            the Shareholders
            or the Shareholders'
            Representative:       Ampersand 1999 Limited Partnership
                                  55 William Street, Suite 240
                                  Wellesley, MA 02481
                                  Attention:  Marc J.L. Dulude
                                  Facsimile: (781) 239-0824

            With a copy to:       Foley Hoag LLP
                                  155 Seaport Boulevard
                                  Boston, MA 02210
                                  Attention:  Richard A. Wiley, Esq.
                                  Facsimile:  (617) 832-7000

All notices,  requests,  consents and other  communications  hereunder  shall be
deemed to have been (i) if by hand,  at the time of the delivery  thereof to the
receiving  party at the address of such party set forth  above,  (ii) if made by
facsimile  transmission,  at the time that receipt thereof has been acknowledged
by electronic confirmation or otherwise,  (iii) if sent by overnight courier, on
the next  business day following the day such notice is delivered to the courier
service,  or (iv) if sent by registered or certified mail, on the fifth business
day following the day such mailing is made.

         8.2 ENTIRE  AGREEMENT.  This  Agreement  together with the Exhibits and
Schedules  hereto  and the  other  documents  executed  in  connection  herewith
(together,  the  "DOCUMENTS")  embodies the entire  agreement and  understanding
between  the  parties  hereto  with  respect to the  subject  matter  hereof and
supersedes 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.

         8.3  MODIFICATIONS  AND  AMENDMENTS.  The terms and  provisions of this
Agreement may be modified or amended only by written agreement executed by Buyer
and  Shareholders  who hold a majority of the shares of Buyer Series A Preferred
Stock issued pursuant hereto.

         8.4  WAIVERS  AND  CONSENTS.  No failure or delay by a party  hereto 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  hereto,  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 hereto shall not  constitute a

                                       36
<PAGE>

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.  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.

         8.5 ASSIGNMENT. Neither this Agreement, nor any right hereunder, may be
assigned by any of the parties hereto  without the prior written  consent of the
other parties.

         8.6 PARTIES IN INTEREST. This Agreement shall be binding upon and inure
solely to the  benefit of each party  hereto and their  permitted  assigns,  and
nothing in this  Agreement,  express or implied,  is intended to confer upon any
other person any rights or remedies of any nature  whatsoever under or by reason
of this  Agreement.  Nothing in this Agreement  shall be construed to create any
rights or obligations  except among the parties hereto,  and no person or entity
shall be regarded as a third-party beneficiary of this Agreement.

         8.7 GOVERNING LAW. This Agreement and the rights and obligations of the
parties  hereunder  shall be  construed in  accordance  with and governed by the
internal laws of the State of Delaware, without giving effect to the conflict of
law principles thereof.

         8.8 SEVERABILITY. In the event that any court of competent jurisdiction
shall finally determine that any provision, or any portion thereof, contained in
this  Agreement  shall  be void  or  unenforceable  in any  respect,  then  such
provision  shall be deemed  limited to the extent that such court  determines it
enforceable,  and as so limited  shall  remain in full force and effect.  In the
event that such court shall  determine any such provision,  or portion  thereof,
wholly   unenforceable,   the  remaining  provisions  of  this  Agreement  shall
nevertheless remain in full force and effect.

         8.9 INTERPRETATION.  The parties hereto acknowledge and agree that: (i)
each party and its counsel  reviewed and  negotiated the terms and provisions of
this Agreement  (except with respect to the  schedules) and have  contributed to
its revision;  (ii) the rule of  construction to the effect that any ambiguities
are  resolved   against  the  drafting  party  shall  not  be  employed  in  the
interpretation  of this  Agreement;  and (iii) the terms and  provisions of this
Agreement shall be construed fairly as to all parties hereto and not in favor of
or against any party,  regardless of which party was generally  responsible  for
the preparation of this Agreement.

         8.10  HEADINGS AND  CAPTIONS.  The headings and captions of the various
subdivisions  of this Agreement are for  convenience of reference only and shall
in no way modify,  or affect, or be considered in construing or interpreting the
meaning or construction of any of the terms or provisions hereof.

                                       37
<PAGE>

         8.11 RELIANCE. The parties hereto agree that, notwithstanding any right
of any party to this Agreement to investigate  the affairs of any other party to
this Agreement,  the party having such right to investigate shall have the right
to rely  fully  upon the  representations  and  warranties  of the  other  party
expressly  contained  in this  Agreement  and on the accuracy of any schedule or
other document  attached hereto or referred to herein or delivered by such other
party or pursuant to this Agreement.

         8.12  EXPENSES.  Each of the parties  hereto shall pay its own fees and
expenses including the fees of any attorneys, accountants,  appraisers or others
engaged by such party) in connection  with this  Agreement and the  transactions
contemplated  hereby  whether or not the  transactions  contemplated  hereby are
consummated.

         8.13 NO BROKER OR FINDER.  Each of the parties  hereto  represents  and
warrants to the other that no broker,  finder or other financial  consultant has
acted on its  behalf in  connection  with  this  Agreement  or the  transactions
contemplated  hereby in such a way as to create any liability on the other. Each
of the parties  hereto agrees to indemnify and save the other  harmless from any
claim or demand for  commission  or other  compensation  by any broker,  finder,
financial  consultant or similar  agent  claiming to have been employed by or on
behalf  of such  party  and to bear  the  cost of  legal  expenses  incurred  in
defending against any such claim.

         8.14  PUBLICITY.  No party shall issue any press  release or  otherwise
make any public  statement with respect to the execution of, or the transactions
contemplated  by, this Agreement  without the prior written consent of the other
party, except as may be required by law.

         8.15  COUNTERPARTS.  This  Agreement  may be  executed  in one or  more
counterparts, and by different parties hereto on separate counterparts,  each of
which shall be deemed an original,  but all of which together  shall  constitute
one and the same instrument.

                            [SIGNATURE PAGES FOLLOW]

                                       38
<PAGE>

          [COUNTERPART SIGNATURE PAGE TO AGREEMENT AND PLAN OF MERGER]

         IN  WITNESS  WHEREOF,   Buyer,   Argentys,  the  Shareholders  and  the
Shareholders' Representative have executed this Agreement as of the day and year
first above written.

                                     TURBOWORX, INC.

                                     By:
                                        -------------------------------------
                                     Name:
                                     Title:

                                     ARGENTYS CORPORATION

                                     By:
                                        -------------------------------------
                                     Name:
                                     Title:

                                     AMPERSAND 1999 LIMITED PARTNERSHIP

                                     By:  AMP-99   Management   Company  Limited
                                          Liability Company, its General Partner

                                     By:
                                        -------------------------------------
                                     Name:
                                     Title:

                                     AMPERSAND   1999   COMPANION  FUND  LIMITED
                                     PARTNERSHIP

                                     By:  AMP-99   Management   Company  Limited
                                          Liability Company, its General Partner

                                     By:
                                        -------------------------------------
                                     Name:
                                     Title:

<PAGE>

                                     GARFLY INVEST AG

                                     By:
                                       ---------------------------------
                                     Name:
                                     Title:

                                     -----------------------------------
                                     Michael J. Repeta

                                     -----------------------------------
                                     John Davies

                                     -----------------------------------
                                     Steven P. Bishop

                                     -----------------------------------
                                     John H. Knowles, Jr.

                                     AMPERSAND 1999 LIMITED PARTNERSHIP,
                                     as Shareholders' Representative

                                     By:  AMP-99   Management   Company  Limited
                                          Liability Company, its General Partner

                                     By:
                                        -------------------------------------
                                     Name:
                                     Title:

                                       2
<PAGE>

                                   SCHEDULE 1

                                  SHAREHOLDERS
<TABLE>
<CAPTION>
------------------------------------ -------------------------- ------------------------------- -------------------------------
NAME                                 STATE OF RESIDENCE         NUMBER OF SHARES OF BUYER       SHARES SUBJECT TO WARRANT
                                                                SERIES A PREFERRED STOCK
------------------------------------ -------------------------- ------------------------------- -------------------------------
<S>                                  <C>                                    <C>                               <C>
Ampersand 1999 Limited Partnership   Massachusetts                          1,398,577                         349,643
------------------------------------ -------------------------- ------------------------------- -------------------------------
Ampersand 1999 Companion Fund        Massachusetts                             28,543                           7,136
Limited Partnership
------------------------------------ -------------------------- ------------------------------- -------------------------------
Garfly Invest AG                     Switzerland                              132,934                          33,234
------------------------------------ -------------------------- ------------------------------- -------------------------------
Michael J. Repeta                    Massachusetts                             18,128                           4,532
------------------------------------ -------------------------- ------------------------------- -------------------------------
John Davies                          United Kingdom                             7,563                           1,891
------------------------------------ -------------------------- ------------------------------- -------------------------------
Steven P. Bishop                     Virginia                                   9,556                           2,389
------------------------------------ -------------------------- ------------------------------- -------------------------------
John H. Knowles, Jr.                 Massachusetts                              4,699                           1,175
------------------------------------ -------------------------- ------------------------------- -------------------------------
TOTAL                                                                       1,600,000                         400,000
------------------------------------ -------------------------- ------------------------------- -------------------------------
</TABLE>

                                       3
<PAGE>

                                   EXHIBIT 1.9

                                    DIRECTORS
                                    ---------

Jeffrey C. Augen
Marc J.L. Dulude
Gregory G. Gardiner
Beverly E. Thalberg
Gregory O. Trautman

                                       4exv10w27

 

Exhibit 10.27

FORM OF EMPLOYMENT AGREEMENT

Ed Steube

96 Danbury Road

Ridgefield, CT 06877

Re:      Employment Agreement

Dear Ed,

     Planet Technologies, Inc. (the “Company”) is pleased to offer you the position of
President/CEO of the Allergy Control Products (“ACP”) subsidiary, pursuant to the terms of this
letter agreement (“Agreement”). This Agreement is made and contingent upon the acquisition of ACP
by Planet Technologies, Inc. and effective on the closing date of such Agreement (the “Effective
Date”) and will last for a period of four years from the Effective Date and will automatically
renew on an annual basis unless terminated by either party in writing. You and the Company hereby
agree as follows:

1. Duties

     You will be expected to do and perform all services, acts or things necessary or advisable to
manage and conduct the business of the ACP and the Company, including those duties normally
associated with the position of President. You will report to the Company’s Chairman and Chief
Executive Officer, unless otherwise assigned by the Company. You will work at the facility located
in Ridgefield, Connecticut. In addition, the company will take all appropriate steps to insure
that upon closing you will be elected to the Board of Directors of the Company.

2. Base Salary and Benefits

Your base salary will be $200,000 per annum, less payroll deductions and all required withholdings
payable weekly on the ACP payroll. You will be eligible for annual salary increases in line with
performance and the company’s guidelines for each year.

You will continue to be reimbursed for your premiums on your healthcare plan, use of car, cell
phone, and other pertinent business expenses and be eligible for ACP’s standard benefits. The
Company may modify its benefits from time to time, as it deems necessary Discretionary Bonus
In addition to your base salary, you will be eligible to earn a discretionary annual performance
bonus (“Bonus”) at the discretion of the Company’s Board. The performance Bonus will be for
superior performance for exceeding sales, gross profits and net profit plans for the year. You
must be employed by the Company throughout the year to be eligible for the Bonus. The Bonus will
be pro-rated in the event you are terminated without Cause, but you will not be eligible if you
resign or your employment is terminated with Cause (as defined below) prior to the date on which
the Bonus is awarded.

3. Stock Options

Subject to approval of the Board, you will be granted a stock option under the terms of the
Company’s 2000 Stock Incentive Plan (the “Plan”) to purchase an amount of Common Stock equal to 3%
of then outstanding shares of Common Stock of the Company, but not less than 100,000 shares (the
“Option”). To the maximum extent possible, the Option shall be an Incentive Stock Option as such
term is defined in Section 422 of the Internal Revenue Code of 1986, as amended. The Option will
be governed by and granted pursuant to a separate Stock Option Agreement and the Plan. The
exercise price per share of the Option will be equal to the fair market value of the Common Stock
established on the date of grant. The Option will be subject to vesting over four (4) years so
long as you provide continuous service to the Company in accordance with the Plan, according to the
following schedule: 1/4 of the shares subject to the Option will vest upon your 12 month
anniversary and 1/48th of the shares subject to the Option will vest at the end of each
monthly period thereafter for a period of three (3) years. If your employment is terminated
without Cause during the first four year period of this Agreement, then this Option grant will
become fully vested.

 

 

If you have questions regarding the tax implications of the Stock Option or any part of your
compensation package, please consult with your own tax advisor.

4. Loyal and Conscientious Performance; Noncompetition.

     During your employment by the Company, you shall devote your full business energies, interest,
abilities and productive time to the proper and efficient performance of your duties under this
Agreement; provided that, you shall not be precluded from engaging in civic, charitable or
religious activities which do not present any conflict of interest with the Company or affect your
performance of duties for the Company.

     Except with the prior written consent of the Board, you will not, during the term of this
Agreement, and any period during which you are receiving compensation or any other consideration
from the Company, including, but not limited to, severance pay pursuant to Section 6 herein, engage
in competition with the Company, either directly or indirectly, in any manner or capacity, as
adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder,
owner, co-owner, consultant, or member of any association or otherwise, in any phase of the
business of developing, manufacturing and marketing of products or services which are in the same
field of use or which otherwise compete with the products or services or proposed products or
services of the Company.

     During the term of this Agreement, you agree not to acquire, assume or participate in,
directly or indirectly, any position, investment or interest known by you to be adverse or
antagonistic to the Company, its business or prospects, financial or otherwise or in any company,
person or entity that is, directly or indirectly, in competition with the business of the Company.
Ownership by you, as a passive investment, of less than two percent (2%) of the outstanding shares
of capital stock of any corporation with one or more classes of its capital stock listed on a
national securities exchange or publicly traded on the Nasdaq Stock Market or in the
over-the-counter market shall not constitute a breach of this paragraph.

5. Termination

     The Company may terminate your employment at any time and for any or no reason, with or
without Cause (as defined herein) or advance notice by giving written notice of such termination,
subject to the provisions stated herein. Similarly, you may terminate your employment with the
Company at any time at your election, in your sole discretion, for any or no reason. The “at will”
nature of your employment relationship may not be modified except by a written agreement signed by
the Chairman of the Board.

     If the Company terminates your employment without Cause (as defined herein) at any time during
the term of your employment, then upon your furnishing to the Company and effective release and
waiver of claims and continued compliance with Section 4 herein and your Proprietary Information
and Inventions Agreement with the Company, you shall be entitled to receive severance payments in
the form of continuation of your base salary in effect at the time of your termination, subject to
standard deductions and withholdings, for the period of 36 months minus the number of months you
were employed after the Effective Date, but not less than a period of twelve (12) months.

     6. Definitions.

For purposes of this Agreement, “Cause” for the Company to terminate your employment hereunder
shall mean the occurrence of any of the following events:

     (a) your repeated failure to satisfactorily perform your reasonably assigned job duties on
behalf of the Company;

     (b) your commission of an act that materially injures the business of the Company;

     (c) your refusal or failure to follow lawful and reasonable directions of the Board or the
appropriate individual to whom you report;

     (d) your conviction of a felony involving moral turpitude that is likely to inflict or has
inflicted material injury on the business of the Company;

 

 

     (e) your engagement or in any manner participating in any activity which is directly
competitive with or intentionally injurious to the Company or which violates any material
provisions of Section 5 hereof or your Proprietary Information and Inventions Agreement with the
Company; or

     (f) your commission of any fraud against the Company, employees, agents or customers or use or
intentional appropriation for his personal use or benefit of any funds or properties of the Company
not authorized by the Board to be so used or appropriated.

7. Company Policy

As a Company employee, you will be expected to abide by Company rules and policies. The Company’s
policies may be modified from time to time at the sole discretion of the Company, with the
exception of the Company’s “at will” employment policy, which may only be modified by a signed
agreement with Company’s Chief Executive Officer.

Normal working hours are 40 hours a week, Monday through Friday. As an exempt salaried employee,
you will be expected to work additional hours as required by the nature of your work assignments.

8. Proprietary Information and Inventions Agreement

As a condition of employment, you will be required to sign and comply with the Proprietary
Information and Inventions Agreement, attached hereto as Exhibit A, which prohibits unauthorized
use or disclosure of the Company’s proprietary information, among other things.

In your work for the Company, you will be expected not to use or disclose any confidential
information, including trade secrets, of any former employer or other person to whom you have an
obligation of confidentiality. Rather, you will be expected to use only that information which is
generally known and used by persons with training and experience comparable to your own, which is
common knowledge in the industry or otherwise legally in the public domain, or which is otherwise
provided or developed by the Company. During our discussions about your proposed job duties, you
assured us that you would be able to perform those duties within the guidelines just described.
You agree that you will not bring onto Company premises any unpublished documents or property
belonging to any former employer or other person to whom you have an obligation of confidentiality.

9. Entire Agreement

     This Agreement, together with your Proprietary Information and Inventions Agreement and the stock
documents referred to herein, forms the complete and exclusive statement of the terms of your
employment with the Company. The employment terms in this Agreement supersede any other agreements
or promises made to you by anyone, whether oral or written.

10. Governing Law

     This Agreement will be governed by and construed according to the laws of the State of
California. You hereby expressly consent to the personal jurisdiction of the state and federal
courts located in San Diego, California for any lawsuit filed there against you by the Company
arising from or related to this Agreement.

11. Successors and Assigns.

     This Agreement will be binding upon your heirs, executors, administrators and other legal
representatives and will be binding upon and shall inure to the benefit of the Company, its
successors, and its assigns. The term “Company” as used herein shall include such successors and
assigns to the extent applicable.

As required by law, this offer is subject to satisfactory proof of your right to work in the United
States.
Please sign and date this Agreement, and return it to me as soon as possible, if you wish to accept
employment with the Company under the terms described above.

We look forward to your favorable reply and to a productive and enjoyable work relationship.
Sincerely,

	 	 	 	 	 
	Planet technologies, Inc.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 	 	 
	 

	 	Scott L. Glenn
	 	 
	 

	 	Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 
	Accepted:	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Date
	 	 	 	 

 

 

EXHIBIT A TO

FORM OF EMPLOYMENT AGREEMENT

EMPLOYEE’S PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

     In consideration of my employment or continued employment by Planet technologies,
Inc. (the “Company”), and the compensation received by me from the Company from time to time,
I hereby agree as follows:

12. Proprietary Information.

     (a) Recognition of Company’s Rights. All Proprietary Information shall be the sole property
of the Company and its assignees. I hereby assign to the Company any rights I may have or acquire
in all Proprietary Information. At all times during my employment by the Company and at all times
after termination of such employment, I will keep in confidence and trust all Proprietary
Information, and I will not disclose, sell, use, lecture upon or publish any Proprietary
Information or anything relating to it without the written consent of the Company, except as may be
necessary in the ordinary course of performing my duties as an employee of the Company, or unless
an officer of the Company expressly authorizes such in writing.

     (b) Proprietary Information. The term “Proprietary Information” shall mean any and all
confidential and/or proprietary knowledge, data or information of the Company, whether in oral,
written, graphic or electronic form. By way of illustration, but not limitation, “Proprietary
Information” includes (a) trade secrets, know-how, inventions, ideas, tangible and intangible
information relating to antibodies and other biological materials, cell lines, samples of assay
components, media and/or cell lines and procedures and formulations for producing any such assay
components, media and/or cell lines, formulations, compounds, products, processes, designs,
formulas, methods, techniques, programs, software models, algorithms, developmental or experimental
work, clinical or other data, compilations of data, other works of authorship, improvements and
discoveries (hereinafter collectively referred to as “Inventions”); (b) information regarding plans
for research and development, new products, marketing and selling, business plans, budgets and
unpublished financial statements, licenses, prices and costs, suppliers, customers, licensees and
strategic partners, and the existence and terms of any business discussions, negotiations or
agreements to which the Company is a party; and (c) information regarding the skills and
compensation of other employees or consultants of the Company.

     (c) No Improper Use of Information of Prior Employers and Others. I represent that I have not
brought and will not bring with me to the Company or use in the performance of my responsibilities
at the Company any equipment, supplies, facility or trade secret information of any former employer
or any other person to whom I have an obligation of confidentiality which is not generally
available to the public, unless I have obtained written authorization for its possession and use.

13. Assignment of Inventions.

     (a) The term “Proprietary Rights” shall mean all trade secrets, patents, copyrights,
trademarks, mask works, moral rights and other intellectual property rights throughout the world.

     (b) Assignment of Inventions. Subject to Sections 2(f) and 2(g), I agree that all Inventions
(and all Proprietary Rights with respect thereto) shall be the sole property of the Company and its
assigns. I hereby assign to the Company any right, title and interest I may have or acquire in and
to all Inventions (and all Proprietary Rights with respect thereto). If I have any rights to the
Inventions (or Proprietary Rights with respect thereto) that cannot be assigned to the Company, I
unconditionally and irrevocably waive the enforcement of such rights and all claims and causes of
action of any kind against the Company with respect to such rights. I agree, at the Company’s
request and expense, to consent to and join in any action to enforce such rights. If I have any
right to the Inventions (or Proprietary Rights with respect thereto) that cannot be assigned to the
Company or waived by me, I unconditionally and irrevocably grant to the Company during the term of
such rights, an exclusive, irrevocable, perpetual, worldwide, fully paid and royalty-free license,
with rights to sublicense through multiple levels of sublicensees, to make, have made, use, offer
for sale, sell, import, reproduce, create derivative works of, distribute, publicly perform and
publicly display by all means now known or later developed, such rights.

 

 

     (c) Assistance. I further agree to assist the Company in every proper way (but at the
Company’s expense) to obtain, and from time to time enforce, the Proprietary Rights in any and all
Inventions, including, but not limited to applying for and obtaining such patents thereon and
enforcing same, as the Company may desire, together with any assignments thereof to the Company or
persons designated by it. My obligation to assist the Company in obtaining and enforcing
Proprietary Rights in the Inventions in any and all countries shall continue beyond the termination
of my employment, but the Company shall compensate me at a reasonable rate after such termination
for time actually spent by me at the Company’s request on such assistance. In the event that the
Company is unable for any reason whatsoever to secure my signature to any lawful and necessary
document required to obtain or enforce any Proprietary Rights with respect to any Invention
(including renewals, extension, continuations, divisions or continuations in part thereof), I
hereby irrevocably designate and appoint the Company and its duly authorized officers and agents,
as my agents and attorneys-in-fact to act for and in my behalf and instead of me, to execute and
file any such documents and to do all other lawfully permitted acts to further execution or
enforcement of Proprietary Rights with the same legal force and effect as if executed by me.

     (d) Prior Inventions. As a matter of record I have attached hereto as Exhibit A a complete
list of all inventions or improvements which have been made or conceived or first reduced to
practice by me, alone or jointly with others, prior to the commencement of my employment by the
Company which I desire to remove from the operation of this Agreement (collectively referred to as
“Prior Inventions”); and I covenant that such list is complete. If disclosure of any such Prior
Inventions would cause me to violate any prior confidentiality agreement, I understand that I
should not list such Prior Invention in Exhibit A but will disclose a cursory name for each such
invention, a listing of the party(ies) to whom it belongs, and the fact that full disclosure as to
such Prior Invention has not been made for that reason. If no such disclosure is attached to this
Agreement, I represent that I have made no such inventions and improvements at the time of signing
this Agreement. If, in the course of my employment with the Company, I incorporate a Prior
Invention into an Invention or a Company product or process, the Company is hereby granted and
shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights to
sublicense through multiple tiers of sublicensees) to make, have made, use, offer for sale, sell,
import, reproduce, create derivative works of, distribute, publicly perform and publicly display by
all means now known or later developed such Prior Invention. Notwithstanding the foregoing, I
agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Invention
or Company product or process without the Company’s prior written consent.

     (e) Obligation to Keep Company Informed. I will promptly and fully in writing disclose to the
Company all Inventions authored, conceived or reduced to practice or learned by me, either alone or
jointly with others, during the period of my employment and for one (1) year after termination of
this Agreement, including any that may be covered by Section 2870 of the California Labor Code.

     (f) Government or Third Party. I also agree to assign all my right, title and interest in and
to any particular Invention to a third party, including without limitation the United States, as
directed by the Company.

     (g) Nonassignable Inventions. This Agreement does not apply to inventions which qualify fully
for protection under Section 2870 of the California Labor Code, which are ideas or inventions for
which no equipment, supplies, facility or trade secret information of the Company was used and
which were developed entirely on my own time, and (1) which do not relate (a) directly to the
business of the Company, or (b) to the Company’s actual or demonstrably anticipated research or
development, or (2) which do not result from any work performed by me for the Company.
Notwithstanding the foregoing, I shall disclose in confidence to the Company any invention in order
to permit the Company to make a determination as to compliance by me with the terms and conditions
of this Agreement.

14. No Conflict of Interest. I agree that during the period of my employment by the Company and
any period during which I am receiving compensation or any other consideration from the Company,
including, but not limited to, any severance pay, I will not, without the Company’s prior written
consent, engage in any employment or business activity which is competitive with the business of
the Company or any of its affiliates, either directly or indirectly, in any manner or capacity, as
adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder,
owner, co-owner, consultant or otherwise, in any phase of the business of developing, manufacturing
and marketing of products or services which are in the same field of use or which otherwise compete
with the products or services or proposed products or services of the Company or any of its
affiliates. My ownership, as a passive investment, of less than two percent (2%) of the
outstanding shares of capital stock of any

 

 

corporation with one or more classes of its capital stock listed on a national securities exchange
or publicly traded on the Nasdaq Stock Market or in the over-the-counter market shall not
constitute a breach of this Section 3.

15. Non-Solicitation. I agree that for a period of one (1) year following termination of my
employment with the Company, I will not solicit or in any manner encourage any employee,
independent contractor or consultant of the Company to leave employment or service with the
Company.

16. No Conflicting Obligations. I represent that my performance of all the terms of this Agreement
and that my employment by the Company do not and will not breach any agreement to keep in
confidence proprietary information acquired by me in confidence or in trust prior to my employment
by the Company. I have not entered into, and I agree I will not enter into, any agreement either
written or oral in conflict herewith.

17. Return of Company Materials. All drawings, notes, memoranda, specifications, documents, data,
devices, records, apparatus, equipment, chemicals, molecules, organisms and other physical
property, including any copies thereof, whether or not pertaining to Proprietary Information,
furnished to me by the Company or produced by myself or others in connection with my employment
shall be and remain the sole property of the Company and shall be returned promptly to the Company
upon termination of this Agreement for any reason, or earlier if requested by the Company, and I
will not retain or take with me any such property or any reproduction of such property.

18. General Provisions.

     (a) Any notices required or permitted hereunder shall be given to the appropriate party at the
address specified below or at such other address as the party shall specify in writing. Such
notice shall be in writing and shall be deemed given (i) upon personal delivery to the appropriate
address, (ii) upon delivery by facsimile transmission with receipt confirmed, (iii) if sent by
certified or registered mail, postage prepaid, three (3) days after the date of mailing, or (iv) if
sent by overnight courier, the next business day such courier regularly makes deliveries.

     (b) This Agreement will be governed by and construed according to the laws of the State of
California, as such laws are applied to agreements entered into and to be performed entirely within
the State of California between California residents. I hereby expressly consent to the personal
jurisdiction of the state and federal courts located in San Diego County, California for any
lawsuit filed there against me by Company arising from or related to this Agreement.

     (c) Because my services are personal and unique and because I may have access to and become
acquainted with the Proprietary Information of the Company, I acknowledge and agree that, if I were
to breach this Agreement, the Company would suffer an irreparable injury such that no remedy at law
would adequately protect or appropriately compensate the Company for such injury. Accordingly, I
agree that the Company shall have the right to enforce this Agreement and any of its provisions by
injunction, specific performance or other equitable relief, without bond and without prejudice to
any other rights and remedies that the Company may have for a breach of this Agreement.

     (d) This Agreement (including any exhibits hereto) contains the final, complete and exclusive
agreement of the parties relative to the subject matter hereof and supersedes all prior and
contemporaneous understandings and agreements relating to said subject matter. This Agreement may
not be changed, modified, amended or supplemented except by a written instrument signed by both
parties.

     (e) If any provision of this Agreement shall be declared invalid, illegal or unenforceable,
such provision shall be severed and all remaining provisions shall continue in full force and
effect.

     (f) This Agreement shall be binding upon my heirs, executors, administrators and other legal
representatives and me and shall inure to the benefit of the Company, its successors and assigns.

     (g) The waiver from time to time by the Company of any of its rights or the Company’s failure
to exercise any remedy shall not operate or be construed as a continuing waiver of same or of any
other of the Company’s rights or remedies provided in this Agreement.

 

 

     (h) I agree and understand that nothing in this Agreement shall confer any right with respect
to continuation of employment by the Company, nor shall it interfere in any way with my right or
the Company’s right to terminate my employment at any time, with or without cause, nor shall it
obligate the Company to make any payment to me based upon termination of my employment.

This Agreement shall be effective as of the first day of my employment by the Company.

	 	 	 	 	 	 	 
	Dated: _____, 2004

	 	By:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Printed Name:	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 

ACCEPTED AND AGREED TO:

	 	 	 	 	 
	planet technologies, Inc.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 	 	 	 	 
	 

	 	Scott L. Glenn	 	 
	 

	 	Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 
	Address:

	 	6402 Cardeno Drive
	 	 
	 

	 	La Jolla, Ca 92037	 	 

 

 

Exhibit A to

Employee’s Proprietary Information and Inventions Agreement

	 	 	 	 	 
	TO:

	 	Planet Technologies, Inc.
	 	 
	 
	 	 	 	 
	FROM:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	DATE:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	SUBJECT:

	 	Previous Inventions	 	 

1. Except as listed in Section 2 below, the following is a complete list of all inventions or
improvements relevant to the subject matter of my employment by Planet Technologies, Inc. (the
“Company”) that have been made or conceived or first reduced to practice by me alone or jointly
with others prior to my engagement by the Company:

	 	 	 
	o

	 	No inventions or improvements.
	 
	 	 
	o

	 	See below:
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 

o      Additional sheets attached.

     2. Due to a prior confidentiality agreement, I cannot complete the disclosure under Section 1
above with respect to inventions or improvements generally listed below, the proprietary rights and
duty of confidentiality with respect to which I owe to the following party(ies):

	 	 	 	 	 	 	 
	 

	 	Invention or Improvement
	 	Party(ies)
	 	Relationship
	 
	 	 	 	 	 	 
	1.
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	2.
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

o     Additional sheets attached.

By signing below, I acknowledge that I have read this Agreement document carefully, understand it
fully and agree to its terms and conditions. I understand that signing this Agreement is a
condition of employment

	 	 	 
	Print Name
	 	 
	 
	Signature

	 	Date

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