Document:

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                                                                    EXHIBIT 10.3

                             ARCADIA RESOURCES, INC.

                        RESTRICTED STOCK GRANT AGREEMENT

      THIS RESTRICTED STOCK GRANTAGREEMENT (the "Agreement") is made as of the
effective date specified below (the "Effective Date") by and between ARCADIA
RESOURCES, INC., a Nevada corporation (the "Company"), and the undersigned
employee of the Company or one or more of the Company's subsidiaries (the
"Holder"). The Company and Holder are sometimes referred to individually as a
"Party" and collectively as the "Parties."

                                    RECITALS

      A. The Company desires that Holder exert his or her utmost efforts to
improve the business and increase the assets of the Company.

      B. As a matter of separate inducement and not in lieu of salary, other
compensation or benefits payable for the services of Holder, the Company,
contingent on and subject to the terms and conditions of this Agreement, desires
to grant Holder shares of the Company's fully-paid and non-assessable common
stock, $0.001 par value per share, which are restricted securities within the
meaning of and subject to the holding period and other restrictions prescribed
by Rule 144 promulgated by the U.S. Securities and Exchange Commission and as
provided herein (the "Restricted Stock"). Shares of the Restricted Stock are
individually referred to as a "Share" and collectively as the "Shares."

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the mutual covenants set forth below,
and other good and valuable consideration, the adequacy and receipt of which are
acknowledged, the Parties agree as follows:

      1. GRANT OF RESTRICTED STOCK. Subject to and contingent on satisfaction of
all of the terms and conditions of this Agreement, the Company hereby grants to
Holder up to that total number of Shares of the Company's Restricted Stock as
are specified on the Notice of Award attached and incorporated herein by this
reference, contingent on and subject to Vesting and forfeiture as specified
herein and the other terms and conditions, if any, specified in the Notice of
Award. Nothing in this Agreement shall confer upon Holder any right to commence
or continue employment with the Company or of any of its subsidiaries, nor
interfere in any way with the right of the Company or any subsidiary to
terminate Holder's employment in accordance with Holder's employment agreement.

      2. VESTING. Shares of the Restricted Stock shall vest as described on the
Notice of Award. All shares of the Restricted Stock which have not Vested and
have not been issued to Employee are "Non-Vested Shares." Employee shall have no
rights as a shareholder or otherwise in Non-Vested Shares of the Restricted
Stock and any purported attempt by Employee to transfer any interest in
Non-Vested Shares of the Restricted Stock shall be null and void and not binding
on the Company. All shares of the Restricted Stock which are Vested shall be

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deemed issued in advance, not in arrears, and upon any termination of
employment, whether by Employer or Employee, whether for cause or without cause,
all Non-Vested Shares of the Restricted Stock shall be automatically forfeited
and shall be null and void.

      3. ISSUANCE OF RESTRICTED SHARES. The issuance to the Holder of Shares of
the Restricted Stock, to the extent Vested, shall be conditioned and contingent
on the satisfaction of all of the terms and conditions of this Agreement,
including but not limited to each of the following:

            3.1. Holder shall have been in compliance with, and shall not have
      breached, the terms of Holder's employment agreement with the Company or
      its subsidiary, including confidentiality and covenant not to compete
      provisions.

            3.2. Holder shall be in compliance with the Company's policies on
      insider trading and policies relating to the purchase and sale of Company
      securities by Company employees, to the extent applicable.

            3.3. The issuance of the Shares to Holder shall have been registered
      under the Securities Act of 1933, as amended, and under any applicable
      state securities laws, or counsel to the Company shall have given an
      opinion that the issuance of the Shares qualify for an exemption from
      registration under the Act and applicable state law.

            3.4. The issuance shall not result in the issuance to Holder of more
      than that total aggregate number of Shares of Restricted Stock specified
      in the Notice of Award.

            3.5. Holder shall agree to and execute such representations,
      warranties, covenants and other documents as the Company may then require.

      4. TAX OBLIGATIONS AND WITHHOLDINGS. Holder shall be responsible for all
tax obligations arising from the grant and each issuance of the Restricted
Stock. Holder agrees to cooperate with the Company as it deems necessary for the
withholding of taxes by the Company required by law or regulation in connection
with a grant of Restricted Stock. If Holder does not make the required
withholding payment at the time of exercise, the Company, in its discretion, may
decline to permit the grant or it may elect to take such steps as it may deem
necessary or appropriate for the withholding of any taxes including, but not
limited to, withholding the amount due from Holder's compensation.

      5. NONTRANSFERABILITY. This Agreement and Non-Vested Shares shall not be
transferred, pledged, assigned, hypothecated or disposed of in any manner,
including by will or the laws of descent and distribution and by operation of
law, and shall not be subject to execution, attachment, or similar process. Any
attempted assignment, transfer, pledge, hypothecation, or other disposition
contrary to the provisions hereof, including the levy of any execution,
attachment, or similar process, shall be null and void and not binding on the
Company.

                                  Page 2 of 8
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      6. CHANGES IN CAPITAL STRUCTURE.

            6.1. In the event of changes in the outstanding Common Stock of the
      Company by reason of a stock dividend, stock split, reverse stock split,
      reorganization, recapitalization, merger, consolidation, liquidation,
      separation, combination or exchange of stock, change in the Company's
      business structure or sale or transfer of all or any part of the Company's
      business or assets (referred to as a "Capital Adjustment"), the number of
      Non-Vested Shares of Restricted Stock subject to this Agreement shall be
      adjusted by the Company consistent with such Capital Adjustment. No such
      adjustment shall be made with respect to (i) stock dividends or stock
      splits which do not exceed five percent (5%) in any fiscal year, (ii) cash
      dividends, or (iii) the issuance to shareholders of the Company or others
      of rights to subscribe for additional Shares of Common Stock or other
      securities.

            6.2. In the event of the proposed dissolution or liquidation of the
      Company, or, except as provided in Section 6.4 below, the sale of
      substantially all the assets of the Company for other than stock/and or
      securities, the grant and all Non-Vested Shares of Restricted Stock shall
      automatically terminate, unless otherwise provided by the Company's Board
      of Directors.

            6.3. Any adjustment in the number of Restricted Shares of Common
      Stock shall apply proportionately to only the number of Non-Vested Shares
      of Restricted Stock. If fractions of a Share of Restricted Stock would
      result from any such adjustment, the adjustment shall be revised to the
      next lowest whole number of Shares, so that no fraction of a Share shall
      be issued.

            6.4. If the grant and all Non-Vested Shares are not terminated
      pursuant to Section 6.2, above, the Non-Vested Shares may, at the
      discretion of the Board of Directors of the Company and the other
      corporation, be exchanged for restricted capital stock of another
      corporation which the Company and/or a subsidiary thereof is merged into,
      consolidated with, or all or a substantial portion of the property or
      stock of which is acquired by or separated or reorganized into. The terms,
      provisions and benefits to Holder of such substitute securities shall in
      all respects be identical to the terms, provisions and benefits of Holder
      under this Agreement prior to such substitution.

      7. NON-REGISTRATION OF ISSUANCE OF VESTED SHARES TO HOLDER. The Company
shall be under no obligation to register under the Securities Act of 1933, as
amended, or any state law a transaction by which the grants Restricted Stock to
Holder or the Company issues Vested Shares to Holder, or to effect compliance
with the registration, qualification or listing requirements of any state
securities laws, stock exchange or automated quotation system, and the Company
will have no liability for any inability or failure to do so.

      8. NON-REGISTRATION OF RESALE OF SHARES BY HOLDER. The Company shall be
under no obligation to register under the Securities Act of 1933, as amended,
Holder's resale of any Vested Shares of Restricted Stock, or to effect
compliance with the registration, qualification or listing requirements of any
state securities laws, stock exchange or automated quotation system, and the
Company will have no liability for any inability or failure to do so.

                                  Page 3 of 8
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      9. REPRESENTATIONS BY HOLDER. Holder acknowledges, covenants, represents
and warrants to Company, as of the Effective Date and on a continuing basis
thereafter, including as of the date of each issuance of Vested Shares, each of
the following:

            9.1. All Shares issuable hereunder shall be acquired for investment
      purposes only, for Holder's own account, and not with a view towards, or
      for resale in connection with, the public sale or distribution thereof.
      Holder does not have any agreement or understanding, directly or
      indirectly, with the Company or any other person to distribute or resell
      any of the Shares.

            9.2. The Company has granted the Shares without the payment or
      exchange of consideration or value by Holder, other than Holder's
      agreement to the terms and conditions of this Agreement and Holder's
      employment agreement with the Company or its subsidiary, including
      confidentiality and covenant not to compete provisions.

            9.3. Holder has not acquired the Shares as a result of any
      advertisement, article, notice or other communication regarding the Shares
      published in any newspaper, magazine or similar media or broadcast over
      television or radio or presented at any seminar or any other general
      solicitation or general advertisement.

            9.4. Holder is (i) an "accredited investor" as defined in Rule
      501(a) of Regulation D promulgated by the U.S. Securities and Exchange
      Commission (the "Commission") or (ii) if not an "accredited investor,"
      either alone or with its purchaser representative(s), has such knowledge
      and experience in financial and business matters that it is capable of
      evaluating the merits and risks of investment in the Shares and
      acknowledges that the Company reasonably believes that Holder comes within
      this description.

            9.5. Holder understands that Holder is obligated to comply with all
      tax obligations applicable to Holder relative to the Restricted Stock and
      that Holder may not be permitted by the terms of this Agreement or
      applicable law to sell Shares of the Restricted Stock in order to satisfy
      such tax obligations.

            9.6. Holder and/or its purchaser representative(s), if any, have
      obtained or have been furnished and are familiar with all publicly
      available financial, operational, business and other data, statements,
      information and materials relating to the business, finances, prospects
      and operations of the Company and such other publicly available materials
      as have been requested from the Company.

            9.7. Holder agrees and acknowledges that the issuance of Vested
      Shares to Holder and Holder's ability to sell Vested Shares is conditioned
      and contingent on registration under the Securities Act of 1933, as
      amended, and under any applicable state securities laws, or the furnishing
      by counsel to the Company of an opinion that such transaction(s) qualify
      for an exemption from registration. In the event that Shares are issued to
      Holder on the basis of an exemption from registration, the Shares shall be
      deemed restricted stock within the meaning of Rule 144 promulgated by the
      Commission, in which event the Shares cannot be publicly resold by Holder
      unless the Company registers the

                                  Page 4 of 8
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      resale transaction or an exemption from registration is available under
      federal and state law. Unless otherwise provided in this Agreement, the
      Company shall have no obligation to undertake any such registration.
      Holder's right or ability to sell, transfer, pledge or otherwise dispose
      of the Shares is severely limited by applicable federal and state
      securities laws. Holder understands that in the absence of an effective
      registration statement covering the Shares, any public resale may be made
      only in compliance with Rule 144 promulgated by the Commission which,
      among other requirements, shall require Holder to comply with the volume
      limitation, manner of sale and minimal one-year holding period. Holder
      agrees to sell, transfer or otherwise dispose of the Shares only in
      compliance with applicable state and federal securities laws.

      10. ISSUANCE OF SHARE CERTIFICATES. The Company shall not be required to
issue or deliver any certificate evidencing Non-Vested Shares. The Company shall
not be required to issue or deliver any certificate for Vested Shares issuable
hereunder unless (a) the issuance of such shares has been registered with the
Securities and Exchange Commission under the Securities Act of 1933, as amended,
or counsel to the Company shall have given an opinion that such registration is
not required; (b) approval, to the extent required, shall have been obtained
from any state regulatory body having jurisdiction thereover, and (c), if
applicable, permission for the listing of such Shares shall have been given by
any national securities exchange on which the Common Stock of the Company is at
the time listed. The Company may place a "stop transfer" order with its transfer
agent and place a restrictive legend on any stock certificate evidencing Vested
Shares. Holder agrees to the imprinting, so long as the Company determines is
required under applicable federal and state securities laws, of a legend on any
stock certificate evidencing Vested Shares in substantially the following form
or such other form as the Company shall require:

      THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE LAW.
      THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
      TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THESE SHARES UNDER THE SECURITIES ACT OF 1933 AND ANY
      APPLICABLE STATE LAW OR AN OPINION OF THE COMPANY'S COUNSEL THAT
      REGISTRATION IS NOT REQUIRED.

Holder agrees that any removal of the restrictive legend from certificates
representing Vested Shares, which removal shall first be authorized by the
Company, is predicated on the Company's reliance on, and Holder's agreement,
that it will not sell any Shares except pursuant to either the registration
requirements of the Act or an exemption therefrom. If required by the Company,
Holder shall pay the Company's reasonable expenses in connection a request to
remove such legend.

11. NO SHAREHOLDER RIGHTS. Holder shall have no rights as a shareholder relative
to any Non-Vested Shares.

                                  Page 5 of 8
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      12. Governing Law and Arbitration. This Agreement and all disputes related
to this Agreement or the Restricted Stock shall be governed by and construed in
accordance with the laws of the State of Florida, notwithstanding the fact that
either party hereto is or may hereafter become domiciled or located in a
different state. Any dispute, controversy or claim arising out of or relating to
this to this Agreement or the Restricted Stock shall be resolved at arbitration
in accordance with the rules of the American Arbitration Association, except for
any equitable or injunctive relief sought by the Company. The arbitration shall
be held at a location within Collier County, Florida. The parties hereto agree
that any arbitration award rendered on any claim submitted to arbitration shall
be final and binding upon the parties and not subject to appeal and that
judgment may be entered upon any arbitration award by any court of competent
jurisdiction. The parties hereto agree that the expenses of any arbitration
shall be borne equally by the parties to the proceeding, except that the party
determined to have prevailed shall be awarded its reasonable attorneys fees and
costs of its own experts, evidence and the like. Holder acknowledges and agrees
that by making this agreement to submit all claims to binding arbitration,
Holder hereby waives the right to litigate in a court of law, and to trial by
jury if applicable.

      13. BINDING EFFECT AND WAIVER OF BREACH. Except as herein otherwise
expressly provided, this Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors and assigns. The waiver
of breach of any provision of this Agreement shall not operate or be construed
as a waiver of any subsequent breach. Each and every right, remedy and power
hereby granted to any Party or allowed it by law shall be cumulative and not
exclusive of any other.

      14. Severability. If any of the provisions of this Agreement or the
application thereof to any Party under any circumstances is adjudicated to be
invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provision of this Agreement or the application thereof.

      15. Interpretation of Agreement. Where appropriate in this Agreement,
words used in the singular shall include the plural, and words used in the
masculine shall include the feminine and neuter. All headings that are used in
this Agreement are for the convenience of the reader only and shall not be used
to limit or construe any of the provisions hereof.

      16. Survival of Provisions. The representations, warranties, covenants,
obligations and undertakings of Holder under this Agreement are continuing and
shall survive performance hereunder.

      17. Amendment of Agreement. The terms and provisions of this Agreement may
be altered or amended in any of their provisions only by the mutual written
agreement of the Parties hereto.

      18. Successors. The Agreement shall inure to the benefit of the Company
and its successors and assigns, but may not be assigned or delegated by Holder.

                                  Page 6 of 8
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      19. Advice of Counsel. Holder is entering into this contract freely and
voluntarily and has been advised to seek the advice of her legal counsel prior
to entering into this Agreement.

      20. Entire Agreement. This Agreement constitutes the entire agreement
between the Parties with respect to the subject matter hereof and supersedes any
and all other previous or contemporaneous communications, representations,
understandings, agreements, negotiations and discussions, either oral or
written, between the Parties with respect to the subject matter hereof,
including Holder's employment agreement with the Company to the extent, if any,
that it purports to contradict or vary the terms of this Agreement. The Parties
acknowledge and agree that there are no written or oral agreements,
understandings, or representations, directly or indirectly related to this
Agreement that are not set forth herein.

      21. Counterpart/Facsimile Signatures. This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, and all of
which together shall constitute one and the same Agreement. For purposes of this
Agreement, a facsimile or PDF signature shall be valid and enforceable as an
original.

      22. Incorporation of Recitals. The Recitals set forth above are
incorporated herein by reference.

      IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of
the Effective Date.

                                    ARCADIA RESOURCES, INC.,
                                    a Nevada corporation

                                    By:  /s/ John E. Elliott, II
                                         ---------------------------------------

                                    Its:  Chairman and CEO

December 7, 2005

                                    ACCEPTED AND AGREED TO BY HOLDER:

                                    /s/ James E. Haifley
                                    --------------------------------------------

December 7, 2005

                                  Page 7 of 8
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                                NOTICE OF AWARD

NAME OF HOLDER:  James E. Haifley.

EFFECTIVE DATE OF AGREEMENT/GRANT OF AWARD:  December 7, 2005.

AGGREGATE NUMBER OF SHARES OF RESTRICTED STOCK SUBJECT TO AWARD: Up to 150,000
Shares.

VESTING:    Shares of the Restricted Stock shall "Vest" as follows: (a) upon the
            Effective Date of this Agreement, the Company shall issue Holder
            9,375 shares of the Restricted Stock, which shares shall be fully
            Vested as of such grant date; and (b) on the first day of each
            fiscal quarter beginning after the Effective Date of this Agreement,
            the Company shall issue Holder 9,375 shares of the Restricted Stock,
            which shares shall be fully Vested as of such grant date, provided
            that Holder has been continuously employed by the Company through
            and as of such grant date.

OTHER:      The Grant/Award is subject to the terms and conditions of the
            Restricted Stock Grant Agreement and Holder's employment agreement
            with the Company, including but not limited to the covenant not to
            compete and confidentiality provisions thereof.

                                          ARCADIA RESOURCES, INC.,

                                          a Nevada corporation

                                          By:  /s/ John E. Elliott, II
                                               ---------------------------------

Dated:  December 7, 2005                  Its:  Chairman and CEO

                                          ACCEPTED AND AGREED TO BY HOLDER:

                                          /s/ James E. Haifley
                                          --------------------------------------

Dated:  December 7, 2005

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EXHIBIT 10.49

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of January 18, 2006,
by and among Software Medium, Inc., a Texas corporation having its principal place of business at
4635 McEwen Road, Dallas, Texas 75244 (“SMI”), Veridyn, LLC, a Texas limited liability company and
wholly owned subsidiary of SMI, having its principal place of business at 8310 Capital of Texas
Highway, Suite 305, Austin, Texas 78731 (“Veridyn” and together with “SMI” the “Sellers” or
individually a “Seller”) and En Pointe Technologies Sales, Inc., a Delaware corporation
(hereinafter referred to as “Purchaser” or “ENPT”) having its principal place of business at 100 N.
Sepulveda Boulevard, 19th Floor, El Segundo, California 90245.

R E C I T A L S

WHEREAS, Sellers are in the business of selling software and security solutions to corporate end
users (the “Business”); and

WHEREAS, Sellers desire to sell to the Purchaser, and the Purchaser desires to purchase from
Sellers, substantially all of the intangible assets, as set forth in Article I, 1.1, of Sellers and
certain Tangible Assets asset forth on Schedule 1.1(g), attached hereto, of Seller but excluding
any and all liabilities of Sellers, except as otherwise expressly set forth in Section 1.4 hereof.

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

A G R E E M E N T

ARTICLE I

PURCHASE AND SALE OF ASSETS AND PURCHASE PRICE

1.1 Purchase and Sale of Assets. Subject to the terms and conditions of this Agreement, on the
Closing Date (as defined in Section 2.1 below), Sellers shall sell, convey, transfer, assign and
deliver to Purchaser, and Purchaser agrees to purchase, accept and assume, all of Sellers’ rights,
title and interest in and to, all of the following intangible assets owned by Sellers and used or
useful in the operation of the Business (except for the Excluded Liabilities (as defined in Section
1.4 below)) and certain Tangible Assets of Sellers set forth on Schedule 1.1(g), attached hereto,
free and clear of all Liens (as defined in Section 3.10(d) below, subject to Sections 2.3(a)(x) and
2.3(a)(xi) below), but excluding the Excluded Assets (as defined in Section 1.5 below)
(collectively, the “Purchased Assets”):

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(a) All customer lists and other customer information (including, without limitation, addresses,
telephone numbers, web site addresses, contact person, etc.), all purchase agreements, all service
and customer contracts and all rights associated therewith;

(b) All vendor lists and other vendor information (including, without limitation, addresses,
telephone numbers, web site addresses, contact person, etc.), all supply agreements, all vendor
contracts, all warranty and service contracts and documentation, rights and authorizations and all
rights associated therewith;

(c) All copyrights, patents, trademarks, trade names, service names, service marks, trade secrets,
know how, processes, methods and procedures used in or otherwise associated with the Business and
all rights and good will associated therewith, including without limitation, (i) all telephone
numbers (including without limitation all 1 800, 1 866, 1 877, 1 888 and all other toll free
numbers); and (ii) the Intellectual Property set forth on Schedule 1.1(c) attached hereto and all
other patentable material, patent applications and issued patents, copyrightable material,
copyright applications and issued copyright registrations, and all electronic and magnetic media
and other documents with respect thereto, whether finished or work in process, and all
documentation with respect thereto, and all other intellectual property materials related to the
Business; and all other intellectual property rights associated with the Business, including
without limitation (A) all the Sellers’ web site pages, sub pages and IP addresses specifically
associated with the Sellers at or through www.softwaremedium.com (the “SMI URL”), together with all
scripts and compiled code for the SMI URL, products and systems associated with the SMI URL and
such web site pages, sub pages and IP addresses (collectively the “Sellers’ Systems”); (B) all HTML
code for all pages associated with the SMI URL and the Sellers’ Systems; (C) the libraries,
database(s) and pages containing all content in relation to the SMI URL and the Sellers’ Systems;
(D) at Purchaser’s option, all computer hardware to support the SMI URL site, including all
servers, switches; (E) all user, prospect, vendor, supplier and customer databases associated with
the Business, the SMI URL and/or the Sellers’ Systems; and (H) all other intellectual property
rights associated with the Business, the SMI URL and/or the Sellers’ Systems, except to the extent
such assets include any Excluded Assets; (collectively, the “Sellers’ IP”);

(d) To the extent assignable and subject to applicable regulatory approvals, each of the Sellers’
valid authorizations, permits and licenses necessary to operate the Business;

(e) If requested by Purchaser, copies of all of the Sellers’ books, records and financial records
(whether in hard copy or computer format) relating to the Business and the Purchased Assets
purchased hereunder; and

(f) Any and all other intangible assets of whatever type or description, including those intangible
assets that are (i) reflected in the balance sheet contained in the December 31, 2005, financial
statements, or (ii) used or useful in the operation of the Business, except to the extent such
assets have been disposed of in the ordinary course of business since the date of such balance
sheet or include any Excluded Liabilities; and

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(g) The tangible assets listed on Schedule 1.1(g-SMI and ) and 1.1(g-Veridyn) attached hereto
(collectively the “Tangible Assets”).

1.2 Purchase Price and Use. (a) The aggregate initial purchase price to be paid for the
Purchased Assets (the “Purchase Price”) to Sellers shall be equal to the sum of: (x) $510,050.19
for intangible assets; and (y) $39,949.81 for the tangible fixed assets, to be paid as follows: (I)
the sum of $550,000 shall be paid in cash by bank cashiers check or certified check or by wire
transfer of immediately available funds to Sellers at the Closing (as defined in Section 2.1
below), in the proportions as directed by SMI; provided, however, that Sellers are required to
immediately use such portion of the cash component of the Purchase Price received at Closing as is
necessary to pay in full all indebtedness owed to (i) Arrow Electronics, Inc., and (ii) De Lage
Landen Financial Services, Inc. (together the “Secured Creditors”), in order to cause the release
by each of such creditors of all liens, encumbrances and security interests of each of such
creditors against any of the Purchased Assets (which may, at Purchaser’s option, be paid directly
by Purchaser out of the cash component of the Purchase Price to be paid to Seller at Closing, as
contemplated pursuant to Section 2.3(a)(vii) below, with the remainder, if any, paid to Seller).
Sellers shall also deliver or caused to be delivered to Purchaser lien releases or other
documentation acceptable to Purchaser to cause the release by each of Secured Creditors or other
creditors of either Seller with secured interests in or to any Purchased Asset, of all claims,
obligations, liens, encumbrances and security interests of each of the Secured Creditors or any
creditors with security interests in or against any of the Purchased Assets.

1.3 Assumed Contracts. Purchaser shall assume on the Closing Date, in respect of liabilities of
Sellers, only (i) the performance of the obligations of Sellers under those contracts, documents
and agreements identified on Schedule 1.3 attached hereto (the “Assumed Contracts”) (subject to
obtaining the prior written consent to such assumption by the third parties to such contracts and
agreements, if required), except to the extent any such obligations are in default that has
occurred as of or is continuing on the Closing Date, and (ii) the performance obligations of
Sellers with respect to deferred revenue balances which represent to retainers paid by customers on
current service revenue engagements (but only those with respect to Purchased Assets) identified on
Schedule 1.3 attached hereto.

1.4 Excluded Liabilities. Except for those obligations, debts and liabilities specifically set
forth in Schedule 1.4 (collectively the “Assumed Liabilities”), which Purchaser hereby agrees to
assume and satisfy when due, Purchaser shall not assume any Liabilities (as defined in Section 3.8
below) directly or indirectly arising out of or related to the Business or the Purchased Assets
(the “Excluded Liabilities”), including, but not limited to, (i) any Liabilities not listed on
Schedule 1.4 hereto, and (ii) any failure by Sellers to collect any and all sales, use and other
similar taxes incurred as a result of Sellers’ operation of the Business or ownership of the
Purchased Assets prior to the Closing Date and/or pay such sales, use and other similar taxes to
the appropriate tax depositories or collecting authorities when due, or withhold or collect from
each payment to each of Sellers’ employees prior to the Closing Date the amount of all taxes
required to be withheld or collected therefrom and/or pay such taxes to the appropriate tax
depositories or collecting authorities when due.

1.5 Excluded Assets. Purchaser will not purchase from Sellers under this Agreement, and the

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Purchased Assets do not include, any of Sellers’ (i) cash, (ii) accounts receivable, (iii)
deposits, (iv) pre-sold inventory of the Business, and (v) assets not used in the Business, and
(vi) any personal or real property, contract rights, intangible property, including but not limited
to those assets listed on Schedule 1.5 (collectively, the “Excluded Assets”).

1.6 Allocation; Cooperation with Respect to Tax and Legal Impact. The allocation of the
Purchase Price shall be as follows: (1) intangible assets $510,050.19 and (2) other Tangible Assets
as set forth on Schedules 1.1 (f) and 1.1 (g) $39,949.81. The allocation of the Purchase Price
shall comply with the requirements of Section 1060 of the Internal Revenue Code of 1986, as amended
(the “Code”). Purchaser and SMI and Veridyn each agrees to file IRS Form 8594, and all federal,
state, local and foreign tax returns and filings, in accordance with the allocation set forth on
Schedules 1.1(f) and 1.1(g). Without in any way limiting the foregoing and subject to the
requirements of applicable law, Purchaser and Sellers agree to otherwise cooperate in good faith to
mitigate income tax consequences and negative legal consequences to the parties arising from the
consummation of this transaction, provided that there is no impact to the Purchase Price or adverse
impact on any of the parties.

1.7 Employment Agreements. At Closing (as defined in Section 2.1 below), each of Mike Menegay and
Doug Landoll (collectively the “Principals”) will enter into and deliver to Purchaser employment
agreements in the forms attached hereto as Exhibits 1.7 A, B, and C, including the covenants
restricting each Principal’s competition, solicitation and disclosure, set forth therein
(collectively the “Employment Agreements”);

1.8 Effect of Prohibited Assignment. Nothing in this Agreement will be construed as an attempt or
agreement to transfer or assign (a) any Purchased Asset that is a contract, license, lease,
franchise, approval, variance, certification, or authority, which cannot be transferred or assigned
without consent, unless such consent has been given, or (b) any such contract, license, or lease as
to which all the rights and remedies for enforcement would not fully pass to Purchaser incident to
the transfers or assignments required by this Agreement. However, in order for Purchaser to
realize the full value of the items described in the foregoing clauses (a) and (ii), Sellers will,
at the request of and under the direction of Purchaser, at their own expense, and in the name of
Purchaser or as Purchaser may otherwise specify, take all actions and do, or cause to be done, all
such things as are reasonably necessary or proper and commercially reasonable for the rights and
obligations of Sellers thereunder to be preserved

ARTICLE II

CLOSING

2.1 Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement will be
held on or prior to January18, 2006 (the “Closing Date”) at 11:55 a.m. PST at 100 N. Sepulveda
Blvd., 19th floor, El Segundo, California, or at such other time, date or location as the parties
hereto may mutually agree upon. Regardless of the date on which this Agreement is executed, the
Closing is deemed to have occurred as of 12:01 a.m. local time on the day next following such
consummation.

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2.2 Purchaser Deliveries. At the Closing, the Purchaser shall deliver to Sellers:

(a) cash, or by cashier’s or certified check or by wire transfer of immediately available funds, to
an account which Sellers have identified in writing to the Purchaser prior to the Closing Date, an
amount equal to the Purchase Price;

(b) Bill of Sale and Assumption Agreement, executed by Purchaser;

(c) the Employment Agreements, executed by Purchaser;

(d) a copy of the resolutions adopted by the Board of Directors of Purchaser (or its parent
company, En Pointe Technologies, Inc.) approving, authorizing and directing the execution of this
Agreement and the consummation of the transactions contemplated thereby, each certified by the an
Officer of Purchaser (who is also an Officer of En Pointe Technologies, Inc.) as being in full
force and effect on and as of the Closing Date; and

2.3 Seller Deliveries and Actions.

(a) At the Closing, each Seller, as applicable, shall deliver to the Purchaser:

(i) physical possession or control of all of the Purchased Assets, at such place and in such manner
as the Purchaser and Sellers shall agree, except for any laptop or desktop personal computers and
related peripheral equipment that are in the personal possession of employees of Sellers that will
be hired by Purchaser;

(ii) the Employment Agreements, executed by the applicable Principal;

(iii) the Bill of Sale and Assignment, duly executed by Sellers;

(iv) copies of all of Sellers’ books, records and financial records (whether in hard copy or
computer format) relating to the Business and the Purchased Assets purchased hereunder;

(v) any and all consents, approvals, notices, filings, terminations or recordations of third
parties required with respect to the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby or by any of the agreements, documents or instruments
referred to herein;

(vi) all Sellers’ IP, including all relevant documentation with respect thereto and all other
documents, electronic and magnetic media and other materials with respect thereto, whether finished
or work in process;

(vii) evidence satisfactory to Purchaser that the liens, encumbrances and security
interests of each Secured Creditor and any other secured creditors solely with respect to any of
the Purchased Assets,

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evidenced by UCC Financing Statements filed in any and all jurisdictions,
together with any security
agreements and other documents and instruments related thereto, and all indebtedness, obligations
and liabilities of any kind or nature whatsoever associated with such liens, encumbrances and
security interests and such security agreements and other documents and instruments related thereto
are fully and forever either assigned to Purchaser or released and terminated (which evidence at
Closing shall include, at a minimum, irrevocable letters of direction entered into by Sellers with
such lien holders delivered to Purchaser in which wire transfer information and pay off amounts for
such lien holders and confirmation of assignment or release of liens upon receipt of pay off amount
by such lien holders is indicated in order to permit Purchaser to pay directly to such lien holders
a portion of the cash component of the Purchase Price at Closing, except to the extent that any of
such lien holders has already delivered proper documentation evidencing a full release of its
liens, encumbrances and security interests at or prior to the Closing Date);

(viii) evidence satisfactory to Purchaser that the persons set forth on Schedule 2.3(a)(viii)
attached hereto have been terminated by the applicable Seller and delivery of letters (in form and
substance mutually agreed upon by Purchaser) from each of the persons listed on said Schedule
2.3(a)(viii) indicating that he or she is aware of this transaction and intends to become employed
by the Purchaser upon consummation of the Closing and which letters includes those sale and service
personnel who are collectively responsible for at least ninety percent (90%) by revenue of the
existing customers of Sellers based on sales of Sellers and their predecessors for the three (3)
months ended December 31, 2005. The letters much each also include a statement that all sums owed
to the persons by Sellers as of the Closing have been paid in full or otherwise fully satisfied;

(ix) a copy of the applicable charter documents, as amended, of Sellers, as amended, and the
resolutions adopted by the Board of Director of SMI and the managers of Veridyn, approving,
authorizing and directing the execution of this Agreement and the consummation of the transactions
contemplated thereby, each certified by the secretaries of Sellers as being in full force and
effect on and as of the Closing Date;

(x) evidence satisfactory to Purchaser that the requisite shareholder and member consents, under
applicable law and charter documents, have been obtained by Sellers, and each such consents
approves the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby;

(xi) certificates of the Secretary of State of Texas to the effect that Sellers are validly
existing corporations or limited liability companies in good standing and duly qualified to do
business under the laws of the State of Texas;

(xii) a release of any and all non solicitation and non competition agreements that Sellers may
have with any of their employees or consultants who are being employed by Purchaser.

(b) Simultaneously with such deliveries, Sellers shall take such other steps and actions as may be
necessary to put the Purchaser in actual possession and operating control of the Purchased Assets,
Sellers’ IP and the Business, as may be reasonably requested by Purchaser.

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2.4 Further Assurances. From time to time after the Closing, and without further consideration,
Sellers shall execute and deliver such other instruments of conveyance, assignment, transfer and
delivery, and take such other actions as the Purchaser may reasonably request in order more
effectively to transfer to the Purchaser, and to place the Purchaser in possession or control of,
the Purchased Assets, including without limitation Sellers’ IP, intended to be transferred
hereunder, to reasonably assist in the collection of any and all such Purchased Assets and all
rights associated therewith, and to enable the Purchaser to exercise and enjoy all of the rights
and benefits with respect thereto.

ARTICLE III (A)

REPRESENTATIONS AND WARRANTIES OF SELLERS

Each of Sellers hereby represents and warrants to the Purchaser that the following representations
and warranties are true and correct on and as of the date hereof:

3.1 Corporate Existence. SMI is a corporation duly organized, validly existing and in good
standing under the laws of the State of Texas and Veridyn is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Texas and Veridyn
is wholly owned by SMI. Each Seller has full corporate power and authority to conduct the
Business as it is now being conducted and to own or lease all of their properties and assets.
Sellers are not required to be qualified or licensed to do business as foreign corporations in any
other jurisdiction where the ownership of their property or assets or the conduct or nature of the
Business would require such qualification or license, except where the failure to so qualify will
not result in a material adverse effect on the Business or Sellers’ financial condition. Sellers
will deliver to Purchaser prior to Closing, true and complete copies of their Articles of
Incorporation, Articles of Organization, Bylaws, and Regulations, each as amended, as in effect on
the date hereof (collectively the “Charter Documents”).

3.2 Capitalization; Share Ownership. The authorized capital stock of SMI consists solely of
20,000,000 shares of Common Stock, with no par value, of which 6,949,935 shares are currently
issued and outstanding and held by those Persons and in those amounts as are set forth on Schedule
3.2 attached to this Agreement, which shares constitute all of the issued and outstanding capital
stock of SMI. Veridyn is a wholly owned subsidiary of SMI. All of such shares of common stock of
SMI and all membership interests of Veridyn are validly issued, fully paid and nonassessable, and
such shares and membership interests have been so issued in material compliance with all federal
and applicable state securities laws. Except as set forth on Schedule 3.2, there are no
outstanding subscriptions, options, rights, warrants, convertible securities or other agreements or
commitments obligating Sellers to issue or to transfer from treasury any additional shares of its
capital stock of any class. Except as set forth on Schedule 3.2, there are no outstanding stock
appreciation rights or any similar rights entitling any person to any payment based on the value of
Sellers or its capital stock. Except as set forth on Schedule 3.2, no other entity or person has
any right, title or interest, beneficially or of record, in or to any securities of Sellers.

3.3 Authority. Sellers have full power and authority to enter into this Agreement and the other

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agreements referred to herein to which either or both is a party (collectively, the “Related
Agreements”), to perform their obligations hereunder and thereunder and to carry out the
transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the
Related Agreements, the performance by Sellers of their obligations hereunder and thereunder and
the consummation of the transactions contemplated hereby and thereby have been duly authorized by
all corporate, shareholder and other actions on the part of Sellers required by applicable law or
the Charter Documents. This Agreement constitutes the legal, valid and binding obligation of
Sellers, enforceable against each in accordance with its terms, except (a) as the same may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in
effect relating to creditors’ rights generally and (b) that the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable defenses and to the
discretion of the court before which any proceeding therefore may be brought.

3.4 No Violation. Except as otherwise set forth on Schedule 3.4, neither the execution and
delivery of this Agreement nor the performance by Sellers of their obligations hereunder or under
any of the Related Agreements nor the consummation of the transactions contemplated hereby will (a)
contravene any provision of the Charter Documents; (b) violate, be in conflict with, constitute a
default under, permit the termination of, cause the acceleration of the maturity of any debt or
obligation of Sellers under, require the consent of any other party to, constitute a breach of,
create a loss of a material benefit under, or result in the creation or imposition of any Lien,
upon any property or assets of Sellers under, any mortgage, indenture, lease, contract, agreement,
instrument or commitment to which either of Sellers is a party or by which either or any of
either’s assets or properties may be bound; (c) to the knowledge of Sellers, after due inquiry and
reasonable investigation, violate any statute or law or any judgment, decree, order, regulation or
rule of any court or governmental authority to which Sellers or the Business is subject or by which
Sellers or any of either’s assets or properties are bound; or (d) create a claim of diversion of
corporate opportunity against any principal of either of Sellers that could reasonably be expected
to have a material adverse effect on Sellers or the Business.

3.5 Consents and Approvals. Except as set forth on Schedule 3.5 hereto, no consent, approval or
authorization of, or declaration, filing or registration with, any governmental or regulatory
authority or any other third party is required to be made or obtained by Sellers in connection with
the execution, delivery or performance of this Agreement or any of the Related Agreements by
Sellers.

3.6 Subsidiaries. Except as set forth on Schedule 3.6 hereto, Sellers do not own, either directly
or indirectly, any interest or investment (whether equity or debt) in any corporation, partnership,
limited liability company, business, trust, or other entity.

3.7 Financial Statements. Sellers have delivered to the Purchaser the unaudited balance sheets of
Sellers as of September 30, 2005 and the related statements of revenues, profit and loss for the
month and nine (9) months then ended, and the unaudited balance sheets of Sellers as of December
31, 2001, 2002, 2003 and 2004 and the related statements of revenues, profit and loss for the
fiscal years of Seller then ended, and the preliminary unaudited balance sheet of Sellers as of
December 31, 2005
and the related statements of revenues, profit and loss, all of which have been internally

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prepared
(all such financial statements are hereinafter collectively referred to as the “Financial
Statements”). The Financial Statements (a) were prepared or compiled from the books and records of
Sellers regularly maintained by management and used to prepare the financial statements of Sellers,
(b) to the knowledge of Sellers, financial transactions for SMI (i) were recorded in accordance
with generally accepted accounting principles for privately held companies consistently applied
throughout the period then ended and all periods prior to that period; (ii) are used by Sellers in
the ordinary conduct of the Business; and (iii) to the knowledge of Sellers, do present completely,
fairly and accurately, in all material respects, the assets, liabilities and financial position,
results of operations and other information included therein of Sellers for the period or as of the
dates thereof, subject, where appropriate, to normal year end audit adjustments, in each case, to
the knowledge of Sellers, were recorded in accordance with generally accepted accounting principles
for privately held companies consistently applied during the period covered, (c) to the knowledge
of Sellers, financial transactions for Veridyn for the three (3) months ended December 31, 2005 (i)
were recorded in accordance with generally accepted accounting principles for privately held
companies consistently applied throughout the period then ended and; (ii) are used by Sellers in
the ordinary conduct of the Business; and (iii) to the knowledge of Sellers, do present completely,
fairly and accurately, in all material respects, the assets, liabilities and financial position,
results of operations and other information included therein of Sellers for the period or as of the
dates thereof, subject, where appropriate, to normal year end audit adjustments, in each case, to
the knowledge of Sellers, were recorded in accordance with generally accepted accounting principles
for privately held companies consistently applied during the period covered.

3.8 No Undisclosed Liabilities. To Sellers’ knowledge, Sellers have, and on the Closing Date will
have, no material debts, liabilities, commitments or obligations of any nature, absolute, accrued,
contingent or otherwise (individually, a “Liability” and, collectively, the “Liabilities”), other
than those which (a) are fully reflected or reserved against in the Financial Statements, (b) have
been incurred since December 31, 2005 in the ordinary course of business in amounts and for terms
consistent, individually and in the aggregate, with the past practice of Sellers, or (c) have been
specifically disclosed in the schedules hereto by reference to the specific section of this
Agreement to which such disclosure relates.

3.9 Absence of Certain Changes. Except as set forth on Schedule 3.9, since December 31, 2005,
Sellers have conducted the Business only in the ordinary course and consistent with prior practice
in all material respects and Sellers have not:

(a) suffered any material adverse change in its condition (financial or otherwise), results of
operations, assets, liabilities, reserves, the Business, operations or prospects;

(b) suffered any material damage, destruction or loss, whether covered by insurance or not,
materially adversely affecting its Business, operations, assets, prospects or condition (financial
or otherwise);

(c) paid, discharged or satisfied any material Liability or other expenses, other than the payment,
discharge or satisfaction of the Liabilities described in Section 3.8 in the ordinary course of
business;

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(d) paid or otherwise made any contribution to any profit sharing or pension plan or other Employee
Benefit Plan (as defined in Section 3.17 below), except as may be required by Sellers’ 401(k)
pension and profit sharing plan consistent with past practices and procedures;

(e) mortgaged or pledged, or permitted the imposition of any Lien upon, any of their properties or
assets (real, personal or mixed, tangible or intangible), other than those incurred in the ordinary
course of business or otherwise listed on Schedule 3.10 hereto;

(f) other than in the ordinary course of business, cancelled or compromised any debts, or
waived or permitted to lapse any material claims or rights, or sold, assigned, transferred or
otherwise disposed of, any material properties or assets (real, personal or mixed, tangible or
intangible);

(g) disposed of or permitted to lapse any rights to the use of any patent, registered trademark,
service mark, trade name or copyright, or disposed of or disclosed to any person any trade secret,
formula, process or know how material to the Business not theretofore a matter of public knowledge;

(h) except as disclosed on Schedule 3.9 or in the ordinary course of business, granted any increase
in the compensation of any officer, employee or consultant of Sellers (including any such increase
pursuant to any bonus, pension, profit sharing or other plan or commitment) or any increase in the
compensation payable or to become payable to any officer, employee or consultant;

(i) entered into any commitment or transaction not in the ordinary course of business or made any
capital expenditure or commitment for any additions to property, plant or equipment, except
commitments, transactions or capital expenditures which do not in any single case exceed $5,000;

(j) made any meaningful change in any method of accounting or accounting practice (including,
without limitation, any change in depreciation or amortization policies or rates);

(k) paid, loaned or advanced any amount to, or sold, transferred or leased any properties or assets
(real, personal or mixed, tangible or intangible) to, or entered into any agreement or arrangement
with, any of its officers, directors, employees, shareholders, or any family member or Affiliate
(as defined in Section 3.24 below) of any of its officers, directors, employees or shareholders, or
any officer, director, employee or shareholder of any such Affiliate;

(l) incurred any material property losses or waived any material rights of value;

(m) declared, set aside, paid or made any dividend or other distribution or payment in respect of
the capital stock of Sellers, or any direct or indirect redemption, purchase or other acquisition
of any of its shares of capital stock;

(n) suffered the loss of, or been threatened with the loss of, any material supplier or material
customer or group of related suppliers or customers referred to in Section 3.16;

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(o) knowingly waived or released any material right or claim of Sellers;

(p) amended or terminated any contract, agreement or license to which any Seller is a party, except
in the ordinary course of business or except as otherwise expressly required or contemplated
hereby;

(q) received a commencement notice or, to the knowledge of Sellers, received any threat of
commencement of any civil or criminal litigation, investigation or proceeding against Sellers;

(r) to the knowledge of Sellers, received any claim of wrongful discharge or workers compensation
claim or any material claim under COBRA;

(s) issued or sold any shares of its capital stock or any class or any other securities of any
kind, or granted any options, warrants or other rights to acquire any shares of its capital stock
or any other securities of any kind (except as otherwise set forth on Schedule 3.2 hereto);

(t) except as set forth on Schedule 3.2 hereto and except for salary and commission and business
expense reimbursement paid in the ordinary course of business, consistent with past practices, made
any dividend or any distribution of any kind to any of the shareholders of Sellers (including,
without limitation, any distribution of cash, assets, property or shares of capital stock of
Sellers);

(u) agreed, whether in writing or otherwise, to take any action referred to in and prohibited by
this Section 3.9; or

(v) to the knowledge of Sellers, become aware of any other event or condition that has had a
material adverse effect on the condition (financial or otherwise), results of operations, assets,
liabilities, reserves, the Business, Sellers’ IP or the operations or prospects of Sellers.

3.10 Title to Properties; Encumbrances.

(a) Sellers have good and marketable title to all of the Purchased Assets, free and clear of all
Liens (including Liens by TCC), except (i) Liens for taxes not yet due and payable, (ii) Liens for
purchase money security interests, and (iii) the Liens set forth on Schedule 3.10 attached hereto,
none of which (other than the Liens set forth on Schedule 3.10 attached hereto, which will be
terminated at the Closing) adversely affects the Business or the continued operations of Sellers.

(b) All material property (real, personal or mixed, tangible or intangible) used or required by
Sellers in the conduct of the Business (including, without limitation, Sellers’ IP) are owned,
leased or licensed by either Seller.

(c) Sellers do not own or hold, and are not obligated under or a party to, any option, right of
first refusal or other contractual right to acquire any real property or interest therein.

(d) When used in this Agreement, “Lien” or “Liens” shall mean any mortgage, pledge, security

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interest, conditional sale or other title retention agreement, encumbrance, lien, easement, claim,
right, covenant, restriction, right of way, warrant, option or charge of any kind.

3.11 Leases.

(a) Schedule 3.11 contains a true and complete list of all leases pursuant to which Sellers lease
or sublease any real property or any vehicles, equipment or personal property that constitutes a
part of the Purchased Assets.

(b) Each such lease described on Schedule 3.11 is the legal, valid and binding obligation of a
Seller and, to the best knowledge of Sellers, after due inquiry and reasonable investigation, the
other parties thereto, enforceable in accordance with their respective terms, and is in full force
and effect. Sellers are not in default under any such lease, and Sellers have not received any
notice from any person or entity asserting that a Seller is in default under any such lease, and no
events or circumstances exist which, with notice or the passage of time or both, would constitute a
default under any such lease.

(c) Except for that certain office lease dated May 4, 2004 between Veridyn, Inc. as subtenant and
Technifind, Inc. as landlord, none of the leases described on Schedule 3.11 shall be transferred to
the Purchaser. At or prior to the Closing, Sellers shall make any and all remaining payments with
respect to any and all such leases and shall pay the purchase price therefore in full (other than
any leases pursuant to which Sellers leases or subleases any real property).

3.12 Patents, Trademarks, Service Marks, Trade Names. Sellers use, performance and application of
all intellectual property rights, both registered and at common law, relating to the Business
(including, without limitation, with respect to Sellers’ IP), irrespective of where any of the same
were issued, whether pending or existing (collectively, the “Intellectual Property”), does not
infringe the rights of any third party. The Intellectual Property includes, without limitation,
all: United States and foreign patents or any description and applications therefore;
registrations of trademarks, service marks and of other marks, registrations of trade names,
labels, logos, trading styles or other trade rights, registered user entries, and applications for
any such registrations or entries; United States and foreign copyrights, copyright registrations
and applications therefore; United States and foreign trademarks and other marks, trade names,
labels and other trade rights, whether or not registered, and applications therefore; trade
secrets, know how, inventions, discoveries, improvements, engineering or other drawings, designs,
processes and formulae, whether patented or patentable or not; customer lists, technical data,
marketing information and plans, software and software documentation source codes; URL addresses
and all other Internet and World Wide Web addresses and designations issued or granted to Sellers
by Network Solutions, Inc. or others, and any other appropriate foreign, federal, state or local
entity, authority or agency; any other proprietary information or intangible rights related in any
way to the Business (including, without limitation, with respect to Sellers’ IP); shop rights,
license agreements and other agreements relating in whole or in part to any of the foregoing; and
all claims and causes of action on behalf of Sellers or against third parties relating to any of
the foregoing, including claims and causes of action for past infringement of the Intellectual
Property. Schedule 3.12 contains a true and complete list of (a) the material Intellectual Property used by

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Sellers in connection with the conduct of the Business, all applications therefore and all licenses
and other agreements relating thereto and (b) all agreements relating to technology, know how or
processes which a Seller is licensed or authorized to use by others or which a Seller licenses or
authorizes others to use in connection with the conduct of the Business. Sellers have the sole and
exclusive right to use the patents, trademarks, service marks, trade names, copyrights, technology,
know how and processes described on Schedule 3.12, and except as disclosed on Schedule 3.12 or
Schedule 3.5, no consent of any third party is required for the use of the Intellectual Property by
the Purchaser upon the consummation of the transactions contemplated hereby or, if any such consent
shall be necessary, such consent shall have been obtained prior to the Closing Date.

Except as set forth on Schedule 3.12, no claims have been asserted by any person to the use any of
the items of Intellectual Property or challenging or questioning the validity or effectiveness of
any such license or agreement, and Sellers know of no valid basis for any such claims. Sellers
have no notice that the use of the Intellectual Property infringes on the rights of any other
person or entity. Each item of Intellectual Property owned by Sellers is, if registered, filed or
issued, then duly and properly registered, filed or issued in the appropriate office and
jurisdiction for such registration, filings or issuance. Each license, contract or other
agreement to which Sellers is a party pertaining to any item of Intellectual Property owned, used
or available for use by Sellers in the conduct of the Business is in full force and effect. With
respect to each such license, contract or other agreement to which a Seller is a party, there is no
payment past due and not paid and no default (or event which, with or without notice, lapse of time
or both, would constitute a default) by any party thereto.

All of the Intellectual Property developed or solely and exclusively owned by Sellers was developed
solely and exclusively by employees of Sellers and under the direction and supervision of a
Seller’s personnel, provided, that if any of such Intellectual Property was developed by any person
other than an employee of Sellers, such person has executed and delivered to Sellers an agreement
in writing pursuant to which such person has transferred to Sellers all of the rights, title and
interest such person has or may have in such Intellectual Property and a copy of such written
agreement will be made available to Purchaser upon request.

3.13 Litigation. Except as disclosed on Schedule 3.13 there are no actions, claims or proceedings
to which Sellers is a party (individually, an “Action” and, collectively, “Actions”), including,
without limitation, Actions for personal injury, products liability, wrongful death or other
tortious conduct, or breach of warranty arising from or relating to materials, commodities,
products or goods used, transferred, processed, manufactured, sold, distributed or shipped by
Sellers (a) involving or relating to Sellers, or any their assets, properties or rights, or (b)
pending, or, to a Seller’s knowledge, threatened, against Sellers, or any of their assets,
properties or rights, before any court, arbitrator or administrative or governmental body. There is
no Action pending, or, to any Seller’s knowledge, threatened, against Sellers, or any of their
assets, properties or rights, before any court, arbitrator or administrative or governmental body,
which questions or challenges the validity of this Agreement or any Action taken or proposed to be
taken by Sellers pursuant to this Agreement or in connection with the transactions contemplated
hereby. To Sellers’ knowledge, no state of facts exists or has existed which would reasonably be
expected to constitute grounds for the institution of any Action against
Sellers or against any assets, properties or rights of Sellers which would adversely affect the

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Business or any Seller. No Seller is subject to any judgment, order or decree entered in any
lawsuit or proceeding which has affected, or which can reasonably be expected to affect, a Seller’s
business practices or its ability to acquire any property or conduct the Business in any way.

3.14 Insurance. Schedule 3.14 sets forth a true and complete list and description of (a) all of
Sellers’ self insurance practices and items covered by such self insurance and (b) all policies of
fire, liability, worker’s compensation and other forms of insurance owned or held by Sellers. No
installment premiums are due under the policies set forth on Schedule 3.14 or, if installment
premiums shall be due and owing under such policies prior to the Closing Date, such premiums shall
have been paid prior to the Closing Date. All such policies are in full force and effect, insure
against risks and liabilities to the extent and in the manner deemed appropriate and sufficient by
Sellers in their reasonable business judgment, and will remain in full force and effect through the
Closing Date, and Sellers have not received any notice of cancellation with respect thereto. To
Sellers’ knowledge, Sellers are not in default with respect to any provision contained in any such
policy and have not failed to give any notice or present any claim under any such policy in due and
timely fashion.

3.15 Contracts and Commitments.

(a) Sellers have made available to Purchaser true and complete copies of all of the Assumed
Contracts and shall deliver true and complete copies of all such other agreements, instruments and
documents as the Purchaser may reasonably request relating to the operation, ownership or conduct
of the Business.

(b) No Seller is a party to any written agreement that would restrict it from carrying on the
Business anywhere in the world.

(c) No Seller is a party to any “take or pay” contracts.

(d) Except as set forth on Schedule 3.15, no Seller is a party to any employment agreements,
arrangements and commitments, including severance or termination arrangements and commitments
(whether written or oral), between a Seller and any employee of a Seller, which is not otherwise
released at Closing.

(e) Each of the Assumed Contracts has been entered into in the ordinary course of business
and is valid and binding, and none of such contracts contains terms or conditions which are
materially adverse to Sellers. No Sellers is, and no other party is, in default under or in breach
or violation of, nor has a Seller received notice of any asserted claim of default by a Seller or
by any other party under, or a breach or violation of, any of the Assumed Contracts.

3.16 Suppliers and Customers.

(a) Except as set forth in Schedule 3.16(a), Sellers have no knowledge that any supplier or
customer or group of related suppliers or customers of a Seller has canceled or otherwise
terminated
or threatened to cancel or otherwise terminate, its relationship with a Seller, which termination

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would have a material adverse effect on the Business or a Seller, or has during the last twelve
(12) months decreased materially, or threatened to decrease or limit materially, its services,
supplies or materials to a Seller or its usage or purchase of the services or products of a Seller,
as the case may be, or that any such supplier or customer or group of related suppliers or
customers expects to reduce its business with a Seller by reason of the transactions contemplated
by this Agreement or for any other reason whatsoever.

(b) Except as set forth in Schedule 3.16(b), no officer, director or employee of Sellers, nor any
spouse or child or any of the foregoing persons, has any direct or indirect interest in any
competitor, supplier or customer of Sellers or in any person from whom or to whom a Seller leases
any real or personal property, or in any other person with whom Sellers is doing business.

3.17 Employee Benefit Plans.

(a) Schedule 3.17 contains a true and complete list and description of, and Sellers have
made available to the Purchaser true and complete copies of, each pension, retirement, severance,
welfare, profit sharing, vacation, deferred compensation, bonus or other incentive plan, or other
employee benefit program, arrangement, agreement or understanding, or medical, vision, dental or
other health plan, or life insurance or disability plan, retiree medical or life insurance plan or
any other employee benefit plans, including, without limitation, any “employee benefit plan” (as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)), to which a Seller contributes or is a party or by which it is bound or under which it
may have liability and under which employees or former employees of a Seller (or their
beneficiaries) are eligible to participate or derive a benefit. Each employee benefit plan which
is a “group health plan” (as such term is defined in Section 5000(b)(i) of the Code) satisfies the
applicable requirements of Section 4980B of the Code. Except as described on Schedule 3.17, no
Seller has no formal plan or commitment, whether legally binding or not, to create any additional
plan, practice or agreement or modify or change any existing plan, practice or agreement that would
affect any of its employees or terminated employees. Benefits under all employee benefit plans are
as represented and have not been and will not be increased outside the ordinary course of business
subsequent to the date copies of such plans have been provided.

(b) Sellers do not contribute to or have any obligation to contribute to, have not at any time
contributed to or had an obligation to contribute to, sponsor or maintain, and has not at any time
sponsored or maintained, a “multi employer plan” (within the meaning of Section 3(37) of ERISA) for
the benefit of employees or former employees of Sellers.

(c) Sellers have, in all material respects, performed all obligations, whether arising by operation
of law, contract, or past custom, required to be performed under or in connection with the employee
benefit plans disclosed on Schedule 3.17 (individually, an “Employee Benefit Plan” and,
collectively, the “Employees Benefit Plans”), and Sellers have no knowledge of any default or
violation by any other party with respect thereto.

(d) There are no Actions, suits or claims (other than routine claims for benefits) pending, or, to

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the best of Sellers’ knowledge, after due inquiry and diligent investigation, threatened, against
any Employee Benefit Plan or against the assets funding any Employee Benefit Plan.

(e) Sellers neither maintain nor contribute to any “employee welfare benefit” (as such term is
defined in Section 3(i) of ERISA) plan which provides any benefits to retirees or former employees
of Sellers.

(f) Sellers have made available to the Purchaser and its counsel true and complete copies, if
applicable, of (i) all documents governing the Employee Benefit Plans, including, without
limitation, all amendments thereto which will become effective at a later date; (ii) all summary
plan descriptions and each summary of material modifications relating to the Employee Benefit
Plans; (iii) all employment manuals; and (iv) all insurance policies or contracts with respect to
the Employee Benefit Plans.

3.18 Employment Law Matters.

(a) Sellers (i) are in compliance in all material respects with all applicable laws
respecting employment, employment practices, terms and conditions of employment and wages and
hours; (ii) are in compliance in all material respects with all applicable laws and regulations
relating to the employment of aliens or similar immigration matters; and (iii) are not engaged in
any unfair labor practice, including, but not limited to, discrimination or wrongful discharge.

(b) Sellers have not at anytime during the last three (3) years had, nor to Sellers’ knowledge, is
there now threatened, a strike, picket, work stoppage, work slowdown or other labor trouble,
against or directly affecting Sellers that had or may have a material adverse effect on the
Business or Sellers.

(c) None of the employees of Sellers is represented by a labor union, and no petition has been
filed or proceedings instituted by any employee or group of employees with any labor relations
board seeking recognition of a bargaining representative. No Seller is a party to any multi
employer collective bargaining agreement covering any of its employees.

(d) There are no controversies or disputes (including any union grievances or arbitration
proceeding) pending, or, to Sellers’ knowledge, threatened, between a Seller and any employees of a
Seller (or any union or other representative of such employees). No unfair labor practice
complaints have been filed and are pending against a Seller with the National Labor Relations Board
or any other governmental or administrative body, and Sellers have not received any written notice
or communication reflecting an intention or a threat to file any such complaint.

3.19 Environmental Matters. Sellers are in compliance in all material respects with all
federal, state and local environmental laws, rules, regulations, standards and requirements,
including, without limitation, those respecting hazardous materials and substances (including,
without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, as
amended, 42 U.S.C. sec. 9601, et. seq.; the Resource Conservation and Recovery Act, as amended, 42
U.S.C. sec. 6901.
et. seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. sec. 1251, et. seq.; the

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Toxic Substances Control Act, as amended, 15 U.S.C. sec. 9601, et. seq.; the Emergency Planning
and Community Right to Know Act, 42 U.S.C. sec. 11001, et. seq.; the Safe Drinking Water Act, 42
U.S.C. sec. 300f, et. seq.; the Solid Waste Disposal Act, as amended; and all comparable state and
local laws; and any common law (including without limitation common law that may impose strict
liability) that may impose liability or obligations for injuries or damages to, or threatened as a
result of, the present of or exposure to any hazardous materials or substances) (collectively,
“Environmental Laws”). There is no Action pending before any court, governmental agency or board or
other forum or threatened by any person or entity (i) for noncompliance by a Seller with any
Environmental Law, or (ii) relating to the release into the environment by a Seller of any
pollutant, toxic or hazardous material or waste generated by a Seller, whether or not occurring at
or on a site owned, leased or operated by Sellers. To Sellers’ knowledge, there has been no spill,
discharge, leak, emission, injection, disposal, escape, dumping or release of any kind on, beneath
or above the facilities occupied or used by or leased to a Seller (the “Property”) or into the
environment surrounding such Property of any hazardous materials or substances in violation of any
Environmental Law or requiring any remedial action. Sellers have all permits, registrations,
approvals and licenses required by any governmental agency under any Environmental Law to be
obtained by Sellers in connection with the conduct of the Business of Sellers as presently
conducted.

3.20 Compliance with Laws. Sellers have not been charged with, and, to Sellers’ knowledge, after
due inquiry and reasonable investigation, Sellers are not threatened with or under any
investigation with respect to, any charge concerning any violation of any provision of any federal,
state, local or foreign law, regulation, ordinance, order or administrative ruling affecting the
Business or Sellers, and Sellers are not in default with respect to any order, writ, injunction or
decree of any court, agency or instrumentality affecting the Business or Sellers. Sellers (a) are
not in violation in any material respect of any federal, state, local or foreign law, ordinance or
regulation or any other requirement of any governmental or regulatory body, court or arbitrator
applicable to the Business or Sellers, or (b) would not, to Sellers’ knowledge, after due inquiry
and reasonable investigation, be in violation in any material respect of any such law, ordinance,
regulation or other requirement that has been enacted or adopted but is not yet effective if it
were effective at the date hereof. Sellers have not made any illegal payment to officers or
employees of any governmental or regulatory body or made any payment to customers of a Seller for
the sharing of fees or to customers or suppliers of a Seller for the rebating of charges, or
engaged in any other similar reciprocal practices, or made any illegal payment or given any other
illegal consideration to purchasing agents or other representatives of customers of a Seller in
respect of sales made or to be made by Sellers. Without limiting the generality of the foregoing,
Sellers are in compliance in all material respects with the Export Administration Act (50 U.S.C.
sections 2401 2420 (1979)) and the Foreign Corrupt Practices Act of 1977, and all respective rules
and regulations promulgated thereunder. Without limiting the generality of the foregoing, Sellers
are in compliance in all material respects with all rules and regulations promulgated by the
Occupational Safety and Health Administration (“OSHA”). Sellers has previously made available to
the Purchaser a true and complete copy of Sellers’ most recent inspection report or reports, if
any, relating to compliance with OSHA rules and regulations.

3.21 Licenses, Permits and Authorizations. Sellers have all material licenses, permits,
authorizations, approvals, consents, franchises and orders required for the conduct and operation of

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its business as presently conducted (individually, a “Permit” and, collectively, the “Permits”)
and the use and ownership or leasing of its properties and assets as currently operated, used,
owned or leased. All of the Permits are valid, in full force and effect and in good standing. No
violations have been recorded in respect of any such Permit. Schedule 3.21 contains a true and
complete list and description of all the Permits and Sellers have previously made available to the
Purchaser true and complete copies of all such Permits identified in Schedule 3.21 and in effect as
of the date hereof. There is no claim or Action pending, or, to the best of Sellers’ knowledge,
threatened, which disputes the validity of any such Permit or threatens to revoke, cancel, suspend
or limit any such Permit.

3.22 Accounts Receivable. All accounts receivable of Sellers shown on the December 31, 2005
Financial Statements and all accounts receivable created after December 31, 2005, up to the
Closing Date of this Agreement, are subject to reserves created in the ordinary course of business
on a basis consistent with the past practices and policies of Sellers and otherwise in accordance
with generally accepted accounting principles, (a) have been collected, or (b) are valid and arose
from bona-fide sales to third parties in the ordinary course of business, and are current and, to
the knowledge of Sellers, substantially all of such accounts receivable are collectible within
ninety (90) days after the Closing Date at the aggregate recorded amounts thereof on the books of
Sellers and are not subject to any counterclaims or setoffs and have not been encumbered or sold.

3.23 Property of Others. To Sellers’ knowledge, no shortage exists in (a) any inventory of raw
material, work in process or finished goods owned by customers or suppliers of Sellers and stored
upon Sellers’ premises or otherwise, or (b) any other item of personal property owned by another
for which a Seller is accountable to another.

3.24 Transactions with Affiliates. Schedule 3.24 describes all agreements and understandings to
which Sellers are or have been subject which provide for or reflect the sale by Sellers to, or the
purchase by Sellers from, any Affiliate (as defined below) of a Seller of any goods, equipment or
services. The termination of any such agreement or understanding would not have a material adverse
effect on the Business, operations, prospects or condition (financial or otherwise) of Sellers.

When used in this Agreement, “Affiliate” or “Affiliates” shall mean, with respect to any
individual, partnership, corporation, limited liability company, association, business trust, joint
venture, governmental entity or other entity of any nature (“Person”), any Person that controls, is
controlled by, or is under common control with, such Person; provided, however that solely for
purposes of determining the identities of Affiliated parties, Veridyn and SMI will be considered
one party and not two Affiliated parties.

3.25 Condition of Tangible Assets. The Purchased Assets, including, without limitation, inventory,
machinery, equipment, vehicles, furniture, plants and buildings, are in good operating condition
and repair (ordinary wear and tear excepted) and are adequate for the uses to which they have been
put by Sellers in the ordinary course of business, except for parts or repairs of an immaterial
nature in the aggregate, and Sellers have not received any notice that any of such facilities or
assets is in need of substantial maintenance or repair.

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3.26 Tax Returns and Payments. All of the tax returns and reports of Sellers required by
law to be filed have been duly filed and all taxes shown as due thereon have been paid. There are
in effect no waivers of the applicable statutes of limitations for any federal, state, local or
foreign taxes for any period. The provisions of this Section 3.26 shall include, without limiting
the generality of this Section 3.26, all reports, returns and payments due under all federal,
state, local or foreign laws or regulations relating to income, sales, use, payroll, franchise,
withholding, real property or personal property taxes, unemployment insurance, social security,
workers’ compensation and other obligations of the same or of a similar nature. To Sellers’
knowledge, Sellers do not have any liability for any federal, state, local or foreign income,
sales, use, withholding, payroll, franchise, real property or personal property taxes, assessments,
amounts, interest or penalties of any nature whatsoever other than as shown on the December 31,
2005 Financial Statements and, there is no basis for any additional claim or assessment other than
with respect to liabilities for taxes which may have accrued since the date of the December 31,
2005 Financial Statements in the ordinary course of business and reserved against on the books and
records of Sellers compiled in accordance with accounting principles generally accepted in the
United States of America which have been consistently applied to the Closing Date. To the
knowledge of Sellers, the provisions for taxes reflected in the December 31, 2005 Financial
Statements are adequate for federal, state, county and local taxes for the period ended on December
31, 2005 and for all prior periods, whether disputed or undisputed. There are no present disputes
about taxes of any nature payable by Sellers. Sellers have never filed, and will not file on or
before the Closing Date, any consent under Section 341(f) of the Code. Sellers’ tax returns have
never been audited by any taxation authority. Sellers have paid to the proper authorities all
customs, duties and similar or related charges required to be paid with respect to the importation
or exportation of goods into or out of the United States.

3.27 Broker’s and Finder’s Fees. No Seller is a party to, or in any way obligated to make any
payment relating to, any contract or outstanding claim for the payment of any broker’s or finder’s
fee in connection with the origin, negotiation, execution or performance of this Agreement or the
consummation of the transactions contemplated hereby for which the Purchaser could become liable.

3.28 Disclosure of Confidential Information. Each Seller has fully disclosed, or will disclose on
or before the Closing Date, to the Purchaser, all processes, inventions, methods, formulae, plans,
drawings, customer lists, secret information and know-how (whether secret or not) known to it or
usable by it in connection with the Business (including, without limitation, with respect to
Sellers’ IP).

3.29 Disclosure. As of the Closing Date, no representation or warranty in this Agreement
(including, without limitation, the Schedules hereto) contains or will contain any untrue statement
of a material fact or omits or will omit to state any material fact necessary to make the
statements herein or therein not misleading.

ARTICLE III (B)

REPRESENTATIONS AND WARRANTIES AND GUARANTIES OF MENEGAY AND

LANDOLL

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Each of Mike Menegay (“Menegay”) and Doug Landoll (“Landoll”), individually and personally, hereby
represents and warrants to the Purchaser, separately and not jointly or severally, and subject to
the following limitations and conditions, that to the best their respective knowledge (without
independent investigation or review), that those representations and warranties provided in
Sections 3.1, 3.3, 3.6, 3.7, 3.8, 3.10, and 3.12 are true, correct and accurate in all material
respects; provided, however, that:

(a) Menegay’s representations and warranties in this Article III(B) relate solely and exclusively
to the business condition, assets and financial aspects of SMI and may not be deemed to be
representations or warranties of the business condition, assets or financial aspects of Veridyn.
Similarly, Landoll’s representations and warranties in this Article III(B) relate solely and
exclusively to the business condition, assets and financial aspects of Veridyn and may not be
deemed to be representations or warranties of the business condition, assets or financial aspects
of SMI; and

(b) Notwithstanding anything else to the contrary contained in this Agreement, the
representations and warranties of Menegay and Landoll made in this Article III(B) will survive the
closing for a period of twelve (12) months. No action may be brought with respect thereto after
such date; provided, however, that if, prior to such date, Purchaser has notified Menegay or
Landoll, or both, of a claim for indemnity under this Article III(B) (whether or not formal legal
action shall have been commenced based upon such claim), such claim shall continue to be subject to
indemnification in accordance with this Article IX; and

(c) No claim may be made against Menegay or Landoll pursuant to this Article III(B) for claims or
damages unless Purchaser’s Damages (as defined in Section 9.2 of this Agreement) exceed the
Deductible Amount (as defined in Section 9.3) except as excepted therein, and in that event, only
for the amount of such excess that relates solely to matters personally represented or warranted by
Menegay or Landoll.

Additionally, Mike Menegay (“Menegay”), individually and personally, hereby guarantees the
Purchaser, separately and not jointly or severally, and subject to the following limitations and
conditions, that if Menegay either (i) voluntarily ceases employment with Purchaser, without “Good
Reason” as such term is defined in that certain employment agreement between Menegay and the
Purchaser dated on the same date as this Agreement (the “Menegay Agreement”), or (ii) is terminated
by Purchaser for Cause, as such term is defined in the Menegay Agreement, at any time during the
first 12 months after the Closing, then Menegay will personally pay Purchaser up to 50% of the
Purchase Price less that portion of the Purchase Price allocated to tangible fixed assets; the
amount to potentially be paid to Purchaser will be reduced by one-twelfth of 50% of the Purchase
Price less that portion of the Purchase Price allocated to tangible fixed assets for each month of
completed employment with Purchaser by Menegay after the Closing. This guarantee shall not apply in
the event the cessation of employment is due to death or disability.

Additionally, Doug Landoll (“Landoll”), individually and personally, hereby guarantees the
Purchaser, separately and not jointly or severally, and subject to the following limitations and

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conditions, that if
Landoll either (i) voluntarily ceases employment with Purchaser, without “Good Reason” as such term
is defined in that certain employment agreement between Landoll and the Purchaser dated on the same
date as this Agreement (the “Landoll Agreement”), or (ii) is terminated by Purchaser for Cause, as
such term is defined in the Landoll Agreement, at any time during the first 12 months after the
Closing, then Landoll will personally pay Purchaser up to 50% of the Purchase Price less that
portion of the Purchase Price allocated to tangible fixed assets; the amount to potentially be paid
to Purchaser will be reduced by one-twelfth of 50% of the Purchase Price less that portion of the
Purchase Price allocated to tangible fixed assets, for each month of completed employment with
Purchaser by Landoll after the Closing. This guarantee shall not apply in the event the cessation
of employment is due to death or disability.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser hereby represents and warrants to Sellers as follows:

4.1 Existence. The Purchaser is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has full corporate power and authority to
conduct its business as it is now being conducted.

4.2 Power and Authority. The Purchaser has full power and authority to enter into this
Agreement, perform its obligations hereunder and carry out the transactions contemplated hereby.
The execution and delivery of this Agreement, the performance by the Purchaser of its obligations
hereunder and the consummation of the transactions contemplated hereby have been duly authorized by
all corporate action on the part of the Purchaser required by applicable law, its Certificate of
Incorporation, as amended, or Bylaws, as amended, or otherwise. This Agreement constitutes the
legal, valid and binding obligation of the Purchaser, enforceable against it in accordance with its
terms, except (i) as the same may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws now or hereafter in effect relating to creditors’ rights generally and (ii) that
the remedy of specific performance and injunctive and other forms of equitable relief may be
subject to equitable defenses and to the discretion of the court before which any proceeding
therefore may be brought.

4.3 No Violation. Neither the execution and delivery of this Agreement nor the performance by the
Purchaser of its obligations hereunder nor the consummation of the transactions contemplated hereby
will contravene any provision of the Articles of Incorporation, as amended, or Bylaws, as amended,
of the Purchaser or violate, or be in material conflict with, or constitute a material default
under, permit the termination of, constitute a material breach of, create a loss of a material
benefit under or upon any property or assets of the Purchaser under, any material agreement,
instrument or commitment to which the Purchaser is a party.

4.4 Litigation. Except as otherwise described in any filings made by Purchaser with the Securities
and Exchange Commission pursuant to the rules and regulations promulgated under the Securities
Exchange Act of 1934, as amended, there is no Action pending, or, to Purchaser’s

21

 

knowledge,
threatened, against Purchaser, or any of its assets, properties or rights, before any court,
arbitrator or
administrative or governmental body, which questions or challenges the validity of this Agreement
or any Action taken or proposed to be taken by Purchaser pursuant to this Agreement or in
connection with the transactions contemplated hereby. Purchaser is not subject to any judgment,
order or decree entered in any lawsuit or proceeding which has materially affected, or which can
reasonably be expected to materially affect, the Business or its ability to conduct the Business in
any way.

4.5 Broker’s and Finder’s Fees. Purchaser is not a party to, or in any way obligated to make any
payment relating to, any contract or outstanding claim for the payment of any broker’s or finder’s
fee in connection with the origin, negotiation, execution or performance of this Agreement or the
consummation of the transactions contemplated hereby for which the Sellers could become liable.

ARTICLE V

CERTAIN OBLIGATIONS OF THE PARTIES PRIOR TO CLOSING

Sellers and the Purchaser hereby covenant as follows:

5.1 Access Prior to the Closing. Sellers shall afford the Purchaser and its counsel,
accountants, investment bankers, investors and other authorized agents and representatives (its
“Advisors”) reasonable access during normal business hours upon reasonable prior notice to Sellers’
properties, books, records and personnel in order that the Purchaser and its Advisors may have the
opportunity to make such reasonable investigations as they shall desire to make of the affairs of
Sellers. Sellers shall furnish, or shall cause their accountants to furnish, such additional
financial and operating data and other information as the Purchaser or its Advisors shall from time
to time reasonably request, including, without limitation, all financial and operating data as
shall be necessary for verification of the accuracy of the Financial Statements. Sellers shall,
upon the reasonable request of the Purchaser, assist the Purchaser and its Advisors in contacting
and communicating with suppliers, customers, employees and Advisors of Sellers.

5.2 Confidentiality Prior to the Closing. Except as required by law or any securities exchange,
each party hereto shall, and shall cause its officers and Advisors to, hold in strict confidence,
and not disclose to others (except its Advisors) for any reason whatsoever, without the prior
written consent of the other party, any nonpublic information received by it from the other party
in connection with the transactions contemplated hereby and will not use such information for any
purpose in the event that no Closing occurs under this Agreement. No party hereto shall
communicate, directly or indirectly, to any third party other than their respective employees,
agents and Advisors any of the terms, conditions and other aspects of this Agreement and the
negotiation and preparation hereof until the Closing has occurred or the negotiations between the
parties have terminated.

5.3 Conduct Prior to Closing Date. Except as otherwise contemplated by this Agreement or permitted
by the prior written consent of the Purchaser, but without making any commitment on the Purchaser’s
behalf, prior to the Closing Date Sellers shall:

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(a) conduct the Business and operations of Sellers only in the ordinary course, including, without
limitation, maintaining inventories at levels not in excess of those consistent with past
practices;

(b) maintain the properties and assets of Sellers in good condition and repair, perform its
obligations under all agreements to which it is a party or by which it or any of its assets or
properties are bound and maintain all of its Permits in good standing;

(c) continue in effect the policies of insurance (or similar coverage) referred to in Section 3.14;

(d) use reasonable efforts to preserve the business organization, including the present work force,
of Sellers’ intact;

(e) use reasonable efforts to keep available the services of the present employees of Sellers;

(f) use reasonable efforts to maintain and preserve the goodwill of the suppliers, customers and
others having business relations with Sellers; and

(g) consult with the Purchaser from time to time, upon the reasonable request of the Purchaser,
with respect to any actual or proposed conduct of business by Sellers.

5.4 Prohibited Transactions Prior to Closing Date. Except as otherwise contemplated by this
Agreement or permitted by the prior written consent of the Purchaser, prior to the Closing Date no
Seller shall:

(a) become a party to any agreement which, if it existed on the date hereof, would be
required to be listed in the Schedules pursuant to Sections 3.10, 3.11, 3.12, 3.14, 3.15, 3.17 or
3.24;

(b) do or permit to occur any of the things referred to in Section 3.9;

(c) modify or terminate any of the Assumed Contracts; or

(d) enter into any compromise or settlement of any Action relating to any of the Purchased Assets.

5.5 Employee and Customer Retention.

(a) Purchaser shall offer employment to the Principals as set forth in Section 1.7 of this
Agreement.

(b) Except as otherwise provided in this Agreement, Sellers will be solely responsible for any
severance, commissions and other employee related obligations incurred or relating to services
performed prior to the Closing, including without limitation, payment of all accrued vacation pay
and other amounts required by applicable law to be paid to employees upon termination.

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(c) Purchaser and Sellers will cooperate and use reasonable good faith efforts both prior to and
after the closing of this transaction to cause (i) at least ninety percent (90%) of the employees
of
Sellers to accept employment with Purchaser (including, without limitation, those employees set
forth on Schedule 2.2(v) attached hereto) and (ii) at least ninety percent (90%) (by revenue) of
the customers of Sellers to be retained by Purchaser after the Closing.

5.6 Cooperation. Each party shall use its reasonable efforts to cause the transactions
contemplated by this Agreement to be consummated. In this regard, and without limiting the
generality of the foregoing, Sellers shall use reasonable efforts to obtain all consents and
approvals of third parties listed on Schedule 3.5, and make all filings with and give all notices
to government agencies and third parties which may be necessary or reasonably required in order to
consummate the transactions contemplated by this Agreement. Sellers shall give prompt notice to the
Purchaser, after receipt thereof by Sellers, of (i) any notice of, or other communication relating
to, any default or event which, with notice or the lapse of time or both, would become a default
under any indenture, instrument or agreement material to Sellers or the operations, condition
(financial or otherwise) or prospects of Sellers, to which a Seller is a party or by which Sellers
or its assets or properties are bound, and (ii) any notice or other communication from or to any
third party alleging or stating that the consent of such third party is or may be required in
connection with the transactions contemplated by this Agreement.

5.7 Bulk Sales Act. Sellers and Purchaser will cooperate to ensure compliance with any Bulk Sales
Act or other state or federal or other jurisdiction law required to protect the interests of
Purchaser.

5.8 Risk of Loss. Sellers shall retain all risk of condemnation, destruction, loss or
damage due to fire or other casualty with respect to the Purchased Assets from the date of this
Agreement until the Closing. If the condemnation, destruction, loss or damage is such that the
operation of the Business is materially interrupted or curtailed or any of the Purchased Assets are
materially affected, then Purchaser shall have the right to terminate this Agreement on written
notice to Sellers. If Purchaser nonetheless elects to close, Sellers shall immediately remit all
net condemnation proceeds or third party insurance proceeds to Purchaser and the consideration set
forth in Section 1.2 shall be adjusted at Closing to reflect such condemnation, destruction, loss
or damage to the extent that insurance or condemnation proceeds are not sufficient to cover such
condemnation, destruction, loss or damage.

ARTICLE VI

CONDITIONS TO THE PURCHASER’S OBLIGATIONS

Each and every obligation of the Purchaser under this Agreement to be performed on or before the
Closing Date shall be subject to the satisfaction, on or before the Closing Date, of each of the
following conditions:

6.1 Representations and Warranties True. The representations and warranties of Sellers contained
herein, in the Schedules and Exhibits hereto and in all certificates and other documents

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delivered
by Sellers to the Purchaser pursuant hereto shall be true and accurate in all material respects as
of the date of this Agreement and as of the Closing Date with the same effect as if made on and as
of the
Closing Date and Sellers shall have delivered to Purchaser a Certificate of the Secretaries of
Sellers certifying to such effect. Sellers shall not have done or permitted to occur any of the
things referred to in Section 3.9 and the representations and warranties contained therein shall be
true and accurate in all material respects on and as of the Closing Date.

6.2 Performance. Sellers shall have performed and complied in all material respects with all
agreements, obligations and conditions required by this Agreement to be performed or complied with
by them on or prior to the Closing Date, including, without limitation, those referred to in
Articles I and V and Sellers shall have delivered to Purchaser a Certificate of the Secretaries of
Sellers certifying to such effect.

6.3 Consents. All filings with and consents from government agencies and third parties required to
consummate the transactions contemplated hereby, shall have been obtained by Sellers, unless the
failure to obtain any such consent or make any such filing would not have an adverse effect on the
assets, properties, business, condition (financial or otherwise) or prospects of Sellers or the
transactions contemplated hereby, or except to the extent that making any such filing or obtaining
any such consent has been waived in writing by the Purchaser.

6.4 Financial Condition. In Purchaser’s reasonable judgment, there shall have been no material
adverse affect on the business or financial condition of Sellers between the date hereof and the
Closing Date.

6.5 Documents and Actions. Sellers shall have executed and delivered to the Purchaser this
Agreement and the other Related Agreements and shall have taken the actions contemplated by Section
2.3 hereof.

6.6 Proceedings. All corporate and other proceedings in connection with the transactions
contemplated by this Agreement, and all documents incident thereto, shall be in form and substance
reasonably satisfactory to the Purchaser and its counsel, and the Purchaser shall have received all
such originals or certified or other copies of such documents as it may reasonably request.

6.7 Absence of Litigation. There shall be no Action pending or threatened before any federal,
state or local court, governmental agency or regulatory body which seeks (a) to invalidate or set
aside, in whole or in part, this Agreement, (b) to restrain, prohibit, invalidate or set aside, in
whole or in part, the consummation of the transactions contemplated hereby or (c) to obtain
substantial damages in connection therewith.

6.8 Possession of Purchased Assets. Sellers shall have fully transferred to the Purchaser physical
possession of all of the Purchased Assets except for any laptop or desktop personal computers and
related peripheral equipment that are in the personal possession of employees of Sellers that will
be hired by Purchaser.

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6.9 Employment by Purchaser of Certain Seller Employees. Each of the persons set forth on Schedule
2.2(v) attached hereto shall have accepted employment with Purchaser on terms mutually
acceptable to Purchaser and such person and shall have executed and delivered to Purchaser a
General Terms of Employment document provided to such person by Purchaser (a copy of which has
previously been provided to Sellers by Purchaser).

ARTICLE VII

CONDITIONS TO SELLERS’ OBLIGATIONS

Each and every obligation of Sellers under this Agreement to be performed on or before the Closing
Date shall be subject to the satisfaction, on or before the Closing Date, of each of the following
conditions:

7.1 Representations and Warranties True. The representations and warranties of the Purchaser
contained herein and in all certificates and other documents delivered by the Purchaser to Sellers
pursuant hereto or in connection with the transactions contemplated hereby shall be true and
accurate in all material respects as of the date of this Agreement and as of the Closing Date with
the same effect as if made on and as of the Closing Date and Purchaser shall have delivered to
Sellers a Certificate of the Chief Financial Officer of Purchaser certifying to such effect.

7.2 Performance. The Purchaser shall have performed and complied in all material respects with all
agreements, obligations and conditions required by this Agreement to be performed or complied with
by it on or prior to the Closing Date, including, without limitation, those referred to in Article
V and Purchaser shall have delivered to Sellers a Certificate of Purchaser certifying to such
effect.

7.3 Documents and Actions. The Purchaser shall have executed and delivered to Sellers this
Agreement and the Related Agreements and shall have taken the actions contemplated by Section 2.2.

7.4 Absence of Litigation. There shall be no Action pending or threatened before any federal,
state or local court, governmental agency or regulatory body which seeks (a) to invalidate or set
aside, in whole or in part, this Agreement, (b) to restrain, prohibit, invalidate or set aside, in
whole or in part, the consummation of the transactions contemplated hereby or (c) to obtain
substantial damages in connection therewith.

ARTICLE VIII

CERTAIN TAX MATTERS AND POST CLOSING COVENANTS

8.1 Allocation of Tax Liability. Any personal property taxes with respect to the Purchased Assets
that relate to a tax period beginning before the Closing Date and ending after the Closing Date (a
“Tax Overlap Period”) shall be apportioned between Sellers and Purchaser on a per diem basis.
Purchaser shall cause any required tax returns with respect to such personal property taxes to be
filed for any Tax Overlap Period, and Purchaser shall pay, or cause to be paid, all taxes shown as
due on any such returns. Sellers shall pay Purchaser Sellers’ pro rata share of any such taxes due
pursuant to

26

 

the filing of any such return within five (5) business days after receipt of
notice of such filing by Purchaser, which notice shall set forth in reasonable detail the
calculations regarding Sellers’ pro rata share of such taxes. Purchaser shall not be responsible
for any taxes with respect to any real property or leases of real property.

8.2 Cessation of Company Business. From and after the Closing Date, Sellers shall cease to conduct
any Business that would compete with Purchaser or cause the customers and/or employees of Sellers
or Purchaser to discontinue a business or working relationship with Purchaser of any kind or
nature. Sellers may continue conducting business, other than competing business, and paying for or
otherwise duly providing for the full payment or performance of any and all Excluded Liabilities,
pursuing the expedient collection of accounts receivable and taking such other actions as may be
necessary to conduct any ongoing business and affairs of Sellers. Sellers agree that they shall not
make any dividends or liquidating or other distributions of all or any portion of Sellers’ cash or
other assets to or for the benefit of the shareholders of Sellers until all of Sellers’ liabilities
have been properly discharged, and in no event earlier than the date that is six (6) months after
the Closing Date.

8.3 Accounts Receivable. Purchaser shall have the right to bill and collect all accounts
receivable arising out of or related to the performance of its obligations under the agreements,
contracts and commitments constituting the Purchased Assets or otherwise with respect to the
Business on and after the Closing Date, including but not limited to the right to endorse and
negotiate checks and other negotiable instruments payable to the order of a Seller and arising
from invoices or orders in process after the Closing Date. Sellers shall not bill or collect, or
attempt to bill or collect, for any accounts receivables arising out of or related to the performance of the
obligations under the agreements, contracts and commitments constituting the Purchased Assets or
otherwise with respect to the Business on and after the Closing Date. If any checks, cash or other
monies or property of any kind with respect to Purchaser’s accounts receivable are received by
Sellers on or after the Closing Date, Sellers shall immediately endorse such checks and tender such
cash and other monies or property to Purchaser and shall take any and all other actions and execute
any and all other agreements, documents and instruments as may reasonably be requested by Purchaser
in order to effectuate or facilitate such endorsement, tender or transfer. Until their endorsement,
transfer or tender to Purchaser, all such checks, cash or other monies or property shall be deemed
held in trust by Sellers for the exclusive benefit of Purchaser. Similarly, if any checks, cash
or other monies or property of any kind with respect to Sellers’ non-assigned accounts receivable
are received by Purchaser on or after the Closing Date, Purchaser shall immediately endorse such
checks and tender such cash and other monies or property to Sellers and shall take any and all
other actions and execute any and all other agreements, documents and instruments as may reasonably
be requested by Sellers in order to effectuate or facilitate such endorsement, tender or transfer.
Until their endorsement, transfer or tender to Sellers, all such checks, cash or other monies or
property shall be deemed held in trust by Purchaser for the exclusive benefit of Sellers.

8.4 Books and Records; Audit Right. Unless otherwise consented to in writing by the Purchaser,
Sellers shall not destroy, alter or otherwise dispose of any original books or records of Sellers
prior to the Closing Date without first offering to surrender such books and records to the
Purchaser and

27

 

shall maintain such books and records in good condition in a reasonably accessible
location. Upon reasonable prior notice, Purchaser’s employees, agents and/or Advisors shall have
access, at all reasonable times, to all of Sellers’ personnel, books, records, correspondence,
financial information, receipts, vouchers, financial accounts, data stored in computer files or any
other media, and memoranda of every description for the purpose of verifying Sellers’ compliance
with the terms of this Agreement (including, without limitation, Section 8.3 above). Sellers shall
maintain in a reasonably safe and secure manner and preserve such documents, supporting data and
accounting records, etc., in a safe place for a period of two (2) years after the Closing Date and
Purchaser’s employees, agents and/or Advisors shall have the right to reproduce any of these
documents.

8.5 Transfer Taxes. Purchaser and Sellers shall each share equally and be equally responsible for
the payment of any and all transfer or sales taxes arising in connection with the consummation of
the transactions contemplated hereby. In this regard, Purchaser shall pay, or cause to be paid,
all such transfer or sales taxes as due and Sellers shall pay Purchaser Sellers’ share of any such
taxes due within five (5) business days after receipt of notice of such payment by Purchaser.

8.6 Full Release of Liens Against Purchased Assets. At the Closing Date, Sellers shall deliver to
Purchaser evidence satisfactory to Purchaser that the liens, encumbrances and security interests of
each of the Secured Creditors and any other secured creditor with respect to any of the Purchased
Assets evidenced by UCC Financing Statements filed in any and all jurisdictions, together with any
security agreements and other documents and instruments related thereto, and all indebtedness,
obligations and liabilities of any kind or nature whatsoever associated with such liens,
encumbrances and security interests and such security agreements and other documents and
instruments related thereto have been fully and forever released and terminated, including, but not
be limited to, copies of UCC Termination Statements as filed in all jurisdictions necessary in order to terminate the UCC
Financing Statements filed against Sellers in any and all jurisdictions.

ARTICLE IX

SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

9.1 Survival of Representations and Warranties True. Notwithstanding (a) the making of this
Agreement or any Related Agreement, (b) any examination made by or on behalf of the parties hereto
and (c) the Closing hereunder, (x) the representations and warranties of Sellers and the Purchaser
contained in this Agreement, or in any document delivered pursuant to the provisions of this
Agreement, shall survive the Closing for a period of 18 months, except for the representations and
warranties made in Section 3.10 (Title to Properties; Encumbrances), Section 3.19 (Environmental
Matters) and Section 3.27 (Tax Returns and Payments), which in each case shall survive until the
expiration of the applicable statute of limitations for the underlying cause of action plus six
months and (y) the covenants and agreements required to be performed after the Closing or pursuant
to Article V of this Agreement (unless noncompliance with those covenants contained in Article V
was waived in writing at the Closing) shall survive until fully performed or fulfilled. No action
may be brought with respect thereto after such date; provided, however, that if, prior to such
date, one party has notified the other party of a claim for indemnity under this Article IX
(whether or not formal legal action shall have been commenced based upon such claim), such claim
shall

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continue to be subject to indemnification in accordance with this Article IX.

9.2 Indemnification.

(a) Subject to Section 9.1 above, from and after the Closing, Sellers shall indemnify and
save harmless the Purchaser and its officers, directors, shareholders, successors and assigns
(collectively, the “Purchaser Indemnified Party”) from and against any loss, claim, liability,
damage, punitive damages, remedial costs, civil and criminal penalties or expenses or other damages
of any kind or nature, including reasonable attorneys’ fees incurred by such Purchaser Indemnified
Party or the Business in connection with any of the foregoing (collectively, the “Damages “),
arising out of (i) the failure by Sellers to perform any covenant or agreement required to be
performed by them in this Agreement or in any Related Agreement (unless noncompliance with such
covenant or agreement in such specific instance was waived in writing by the Purchaser at the
Closing); (ii) the failure of Sellers to pay, perform or satisfy any obligation under any pension,
retirement, severance, welfare, deferred compensation, bonus or other incentive plan, or other
employee benefit program, arrangement, agreement or understanding, or medical, vision, dental or
health plan, or life insurance or disability plan, retiree medical plan or any other employee
benefit plans, including, without limitation, any “employee benefit plan” (as defined in Section
3(3) of ERISA) or any “multiemployer plans” (as defined in Section 3(37) of ERISA), or any
“employee welfare plan” (as defined in Section 3(i) of ERISA) or any other plans, programs or
arrangements of any kind to which Sellers contributes or is a party or by which it is bound or
under which it may have liability and under which employees or former employees of Sellers (or
their beneficiaries) are eligible to participate or derive a benefit, on or before the Closing
Date; (iii) any judgments, orders or decrees entered in any lawsuit or proceeding or Actions
against Sellers arising out of activities undertaken by Sellers on or prior to the Closing Date,
including, without limitation, Actions for (A) personal injury, products liability, liability for
services rendered or breach of warranty arising from
products or goods final tested or shipped by Sellers or services rendered by Sellers involving or
relating to Sellers, any of their assets, properties or rights, including the Actions set forth on
Schedule 3.13; (B) noncompliance by Sellers with any Environmental Law; (C) the release into the
environment of any pollutant, toxic or hazardous material or waste generated by Sellers or the
Business, whether or not occurring at or on a site owned, leased or operated by Sellers; or (D)
without limiting the generality of the foregoing, any Actions or threatened Actions that may be
asserted against Sellers and any other Actions arising out of Sellers’ operations on or prior to
the Closing Date; (iv) Sellers’ noncompliance with any federal, state or local laws, rules,
regulations, standards and requirements, on or prior to the Closing Date; (v) the failure of
Sellers to pay promptly any federal, state, local or foreign taxes of Sellers (including, without
limitation, all taxes of any kind or nature and all interest, additions to tax and penalties
thereon) claimed or assessed for any taxable period ended on or prior to the Closing Date; (vi) any
Actions, claims, demands, grievances or disputes brought or initiated by third parties against the
Purchaser or any of its Affiliates, employees attorneys or agents in connection with the failure of
Sellers to pay any customer, supplier or vendor of Sellers the value of any account payable or
trade payable shown on the Financial Statements or incurred by Sellers on or prior to the Closing
Date in accordance with terms and conditions of payment with respect to such account payable or
trade payable or any other liabilities of Sellers which existed
 and were not disclosed to the
Purchaser prior to the Closing Date; or (vii) any breach of warranty or misrepresentation in this
Agreement or any

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 Related Agreement (including the Schedules hereto) made by or on behalf of Sellers
and not waived in writing by the Purchaser.

(b) Similarly, and subject to Section 9.1 above, from and after the Closing, Purchaser shall
indemnify and save harmless Sellers and each of Sellers’ respective officers, directors,
shareholders, members, managers, agents, successors and assigns (collectively, the “Seller
Indemnified Parties”) from and against any Damages by any Seller Indemnified Party or the Business
in connection with any of the foregoing, arising out of (i) the failure by Purchaser to perform any
covenant or agreement required to be performed by them in this Agreement or in any Related
Agreement (unless noncompliance with such covenant or agreement in such specific instance was
waived in writing by the Sellers at the Closing); (ii) the failure of Sellers to pay, perform or
satisfy any Assumed Liability; (iii) any judgments, orders or decrees entered in any lawsuit or
proceeding or Actions against Purchaser arising out of activities undertaken by Purchaser on or
after the Closing Date; (iv) Purchaser’s noncompliance with any federal, state or local laws,
rules, regulations, standards and requirements, on or after the Closing Date; (v) the failure of
Purchaser to pay promptly any federal, state, local or foreign taxes of Sellers (including, without
limitation, all taxes of any kind or nature and all interest, additions to tax and penalties
thereon) claimed or assessed for any taxable period ended on or after the Closing Date; or (vi) any
breach of warranty or misrepresentation in this Agreement or any Related Agreement (including the
Schedules hereto) made by or on behalf of Purchaser and not waived in writing by the Sellers.

(c) The indemnified party shall promptly notify the indemnifying party within a reasonable period
of time after becoming aware of, and shall provide to the indemnifying party as soon as practicable
thereafter all information and documentation necessary to support and verify, any Damages which the
indemnified party, as the case may be, shall have determined has given or could give rise to a
claim for indemnification hereunder.

(d) All claims for indemnity under this Article IX shall be paid on demand in immediately available
funds in U.S. dollars.

(e) The indemnified party shall notify the indemnifying party with reasonable promptness of its
discovery of any matter giving rise to a claim of indemnity or setoff pursuant to this Agreement.
With respect to any third party claim or action that could give rise to indemnity under this
Agreement, the indemnifying party shall be entitled to assume the defense thereof with counsel
satisfactory to the indemnified party, provided, that upon the request of the indemnified party,
the indemnifying party provides reasonable evidence of its ability to perform its obligations under
this Section 9.2. After notice from indemnifying party to the indemnified party, of its election so
to assume the defense thereof, the indemnifying party shall not be liable to the indemnified party,
under the foregoing indemnity agreement for any legal or other expenses subsequently incurred by
the indemnified party, in connection with the defense thereof other than (i) those relating to
investigation or the furnishing of documents or witnesses and (ii) all reasonable fees and expenses
of separate counsel retained by such indemnified party, if (A) the indemnifying party and the
indemnified party, shall have agreed to the retention of such counsel or (B) counsel to the
indemnified party, shall have concluded reasonably that the representation of the indemnifying
party and the indemnified party, by

30

 

 the same counsel would be inappropriate due to actual or
potential differing interests between them in the conduct of the defense of such action. Promptly
after receipt by the indemnified party, of notice of the commencement of any action to which the
indemnifying party is not a party, the indemnified party, shall, if such claim in respect thereof
is to be made against the indemnifying party pursuant to this Agreement, notify the indemnifying
party in writing of the commencement thereof, but the failure or delay in so notifying the
indemnifying party shall not relieve the indemnifying party of its obligations to indemnify the
indemnified party, pursuant to the terms of this Agreement. The indemnified party, shall keep the
indemnifying party reasonably informed of the progress of any such action and shall not enter into
any settlement of any such action without the prior written consent of the indemnifying party,
which consent shall not be unreasonably withheld or delayed.

9.3 Certain Limitations. Notwithstanding anything to the contrary in this Agreement, except as
provided below in this Section 9.3, the indemnified party will be entitled to indemnification
hereunder only when the aggregate of all Damages to such indemnified party from all such breaches
exceeds on a cumulative basis $150,000 (the “Deductible Amount”), and then only to the extent of
such excess amount, except that the Deductible Amount shall not apply to any claims made for any
severance, commissions and other employee related obligations incurred or relating to services
performed prior to the Closing, including without limitation, payment of all accrued vacation pay
and other amounts required by applicable law to be paid to employees upon termination or to
applicable tax authorities (“Compensation Claims”). Notwithstanding the other provisions of this
Article, no indemnified party shall be entitled to seek indemnification under this Article for any
individual fact, circumstance, condition or occurrence that results in a breach of a representation
or warranty that involves Damages of less than $10,000 (unless and until such individual facts,
circumstances, conditions or occurrences involve Damages that in the aggregate exceed the
Deductible Amount); this limitation shall not apply to Compensation Claims for which Sellers shall
be fully liable and for which Menegay shall be liable for SMI Compensation Claims and for which
Landoll shall be liable for Veridyn Compensation Claims.

9.4 Losses Net of Insurance, etc. The amount of any Damage for which indemnification
is provided under this Agreement shall be net of (a) any tax benefit (such as a deduction, credit
or deferral) actually realized from any Damage, (b) any amounts recovered by the indemnified party
pursuant to any indemnification by or indemnification agreement with any third party, and (iii) any
insurance proceeds or other cash receipts or sources of reimbursement received as an offset against
such Damage. Each indemnified party agrees, upon payment by the indemnifying party, that the
indemnifying party shall have the right, to the extent of the amount paid to the indemnified party,
to be subrogated to the indemnified party’s insurer for Damages suffered as a result of the
indemnified claim and that the indemnified party shall cooperate with the indemnifying party in its
efforts to submit and pursue such subrogated claims.

ARTICLE X 

TERMINATION

10.1 Termination. This Agreement may be terminated at any time prior to the Closing Date:

31

 

(a) by the mutual consent of the Purchaser and Sellers;

(b) by either the Purchaser or Sellers, upon written notice, if there has been a material
misrepresentation or any breach on the part of the other party hereto in the representations,
warranties or covenants contained in this Agreement which is not cured within ten (10) business
days after such other party has been notified of the intent to terminate this Agreement pursuant to
this subsection (b); or

(c) by either the Purchaser or Sellers if the Closing has not occurred by January 18, 2006.

10.2 Effect of Termination. If this Agreement is terminated as expressly permitted under Section
10.1, such termination shall be the sole remedy and this Agreement shall forthwith become void
(except for Section 5.2 and Section 11.3) and there shall be no liability on the part of Sellers or
the Purchaser or any of their respective Affiliates; provided, however, that if such termination
shall result from the willful breach by a party hereto of its obligations under this Agreement,
such party shall be fully liable for any and all damages, costs and expenses sustained or incurred
by the other party as a result of such breach. If this Agreement is terminated without a Closing,
Sellers shall return promptly to the Purchaser all documents, work papers and other materials of
the Purchaser furnished or made available to Sellers or its Advisors, and all copies thereof, and
no such information, documents, work papers or other materials received by Sellers shall be
revealed to any third party or used for the advantage of Sellers or any other party; and the
Purchaser shall return promptly to Sellers all documents, work papers and other material of Sellers
furnished or made available to the Purchaser or its Advisors, and all copies thereof, and no such
information, documents, work papers or other materials received by the Purchaser shall be revealed
to any third party or used for the advantage of the Purchaser or any other party.

ARTICLE XI

MISCELLANEOUS PROVISIONS

11.1 Public Announcements. Except as required by law and except as Sellers and the
Purchaser shall authorize in writing, the parties hereto shall not, and shall cause their
respective officers, directors, employees, Affiliates and Advisors not to, disclose any matter or
matters relating to this transaction to any person not an officer, director, employee, Affiliate or
Advisor of such party.

11.2 Amendment; Waiver. Neither this Agreement, nor any of the terms or provisions hereof, may be
amended, modified, supplemented or waived, except by a written instrument signed by the parties
hereto (or, in the case of a waiver, by the party granting such waiver). No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision
hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. No failure
of either party hereto to insist upon strict compliance by the other party with any obligation,
covenant, agreement or condition contained in this Agreement shall operate as a waiver of, or
estoppel with respect to, any subsequent or other failure. Whenever this Agreement requires or
permits consent by or on behalf of any party hereto, such consent shall be given in a manner
consistent with the

32

 

 requirements for a waiver of compliance as set forth in this Section 11.2.

11.3 Fees and Expenses. Except as otherwise provided in this Agreement, each of the parties hereto
shall bear and pay its own costs and expenses incurred in connection with the origin, preparation,
negotiation, execution and delivery of this Agreement and the agreements, instruments, documents
and transactions referred to in or contemplated by this Agreement (whether or not such transactions
are consummated) including, without limitation, any fees, expenses or commissions of any of its
Advisors, attorneys, accountants, agents, finders or brokers. The Purchaser shall indemnify
Sellers against any claims of third parties for any brokerage, finder’s, agent’s or similar fees or
commissions in connection with the transactions contemplated hereby insofar as such claims are
alleged to be based on arrangements or contacts made by, to or with the Purchaser or its Advisors
or representatives. Sellers shall indemnify the Purchaser against all such claims insofar as they
are alleged to be based on arrangements or contacts made by, to or with Sellers or their Advisors
or representatives.

11.4 Notices.

(a) All notices, requests, demands and other communications required or permitted under this
Agreement shall be in writing (including telefax, telegraphic, telex or cable communication) and
mailed, telefaxed, telegraphed, telexed, cabled or delivered:

	 	 	 
	(i) If to Sellers, to:

	 	 Mike Menegay
	 

	 	President & CEO
	 

	 	4635 McEwen Road
	 

	 	Dallas, TX 75244
	 

	 	Fax: (469) 587-0656
	with a copy (which shall not

	constitute notice to Sellers) to:
	 	 
	 

	 	Mark A. Girtz, Esq.
	 

	 	Munsch, Hardt, Kopf & Harr, P.C.
	 

	 	500 N. Akard Street
	 

	 	3800 Lincoln Plaza
	 

	 	Dallas, TX 75201-6659
	 

	 	Fax: (214) 978-4349
	(ii) If to the Purchaser, to:
	 
	 	 
	 

	 	En Pointe Technologies Sales, Inc.
	 

	 	100 N. Sepulveda Blvd., 19th Floor
	 

	 	El Segundo, CA 90245
	 

	 	Attention: Bob Din
	 

	 	Facsimile no.: (310)

With a copy (which shall not constitute notice to the Purchaser) to:

33

 

	 	 	 
	 

	 	Jacob J. Stettin, Attorney
	 

	 	P.O. Box 480432
	 

	 	Los Angeles, CA 90048-1432
	 

	 	(323) 934-5373
	 

	 	(801) 409-8996 (fax)
	 

	 	jjs4910@sprynet.com

(b) All notices and other communications required or permitted under this Agreement which are
addressed as provided in this Section 11.4 (i) if delivered personally against proper receipt or by
confirmed telefax or telex, shall be effective upon delivery and (ii) if delivered (A) by certified
or registered mail with postage prepaid, (B) by Federal Express or similar courier service with
courier fees paid by the sender or (C) by telegraph or cable, shall be effective three business
days following the date when mailed, couriered, telegraphed or cabled, as the case may be. Either
party may from time to time change its address for the purpose of notices to that party by a
similar notice specifying a new address, but no such change shall be deemed to have been given
until it is actually received by the party sought to be charged with its contents.

11.5 Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and permitted assigns, but
neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by
any party hereto without the prior written consent of the other parties; provided, however, that
the Purchaser may assign this Agreement to any of its Affiliates or any entity who by merger,
consolidation, purchase or sale subsequently acquires Purchaser or becomes an Affiliate without the
prior consent of Sellers if such Affiliate or entity agrees in writing to assume all of Purchaser’s
obligations under this Agreement and to be subject to and bound by all of the terms and conditions
hereof. Any assignment which contravenes this Section 11.5 shall be void ab initio.

11.6 Governing Law. This Agreement and the legal relations between the parties hereto shall be
governed by and construed in accordance with the internal laws of the State of California, without
giving effect to the conflicts of laws principles thereof.

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

11.8 Headings. The headings contained in this Agreement are for convenience of reference only and
shall not constitute a part hereof or define, limit or otherwise affect the meaning of any of the
terms or provisions hereof.

11.9 Entire Agreement. This Agreement (which defined term includes the Schedules and Exhibits to
this Agreement) embodies the entire agreement and understanding among the parties hereto with
respect to the subject matter of this Agreement and supersedes all prior agreements, commitments,

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arrangements, negotiations or understandings, whether oral or written, between the parties with
respect thereto. There are no agreements, covenants, undertakings, representations or warranties
with respect to the subject matter of this Agreement other than those expressly set forth or
referred to herein. This is an integrated agreement.

11.10 Severability. Each term and provision of this Agreement constitutes a separate and distinct
undertaking, covenant, term and/or provision hereof. In the event that any term or provision of
this Agreement shall be determined to be unenforceable, invalid or illegal in any respect, such
unenforceability, invalidity or illegality shall not affect any other term or provision of this
Agreement, but this Agreement shall be construed as if such unenforceable, invalid or illegal term
or provision had never been contained herein. Moreover, if any term or provision of this Agreement
shall for any reason be held to be excessively broad as to time, duration, activity or subject, it
shall be construed, by limiting and reducing it, so as to be enforceable to the extent permitted
under applicable law as it shall then exist.

11.11 No Third Party Beneficiaries. Nothing in this Agreement is intended, nor shall anything in
this Agreement be construed, to confer any rights, legal or equitable, in any Person (other than
the parties hereto and their respective heirs, distributees, beneficiaries, executors, successors
and assigns), including, without limitation, any employee of Sellers or any beneficiary of such
employee.

11.12 Arbitration. Any dispute arising out of this Agreement, or the performance or breach
hereof or thereof, shall be resolved by binding arbitration under the Commercial Arbitration Rules
(the “AAA Rules”) of the American Arbitration Association (the “AAA”), except that requests for
preliminary or immediate injunctive relief may be made by any party to a court having jurisdiction
thereof. The parties stipulate that courts located in Los Angeles County, California, have non
exclusive jurisdiction over any request for preliminary or immediate injunctive relief made by any
party. This arbitration provision is expressly made pursuant to and shall be governed by the
Federal Arbitration Act, 9 U.S.C. Sections 1 14. The parties agree that pursuant to Section 9 of
the Federal Arbitration Act, a judgment of a United States District Court shall be entered upon the
award made pursuant to the arbitration. A panel of three arbitrators, who shall have the authority
to allocate the
costs of any arbitration initiated under this Section, shall be selected according to the AAA Rules
within ten (10) days of the submission to the AAA of the response to the statement of claim or the
date on which any such response is due, whichever is earlier. The arbitrators shall be required to
furnish to the parties to the arbitration a preliminary statement of the arbitrators’ decision that
includes the legal rationale for the arbitrators’ conclusion and the calculations pertinent to any
damage award being made by the arbitrators. The arbitrators shall then furnish each of the parties
to the arbitration the opportunity to comment upon and/or contest the arbitrators’ preliminary
statement of decision either, in the discretion of the arbitrators, through briefs or at a hearing.
The arbitrators shall render a final decision following any such briefing or hearing. The
arbitrators shall decide the amount and extent of pre hearing discovery which is appropriate. The
arbitrators shall have the power to enter any award of monetary and/or injunctive relief (including
the power to issue permanent injunctive relief and also the power to reconsider any prior request
for immediate injunctive relief by any party and any order as to immediate injunctive relief
previously granted or denied by a court in response to a request therefore by any party), including
the power to render an

35

 

award as provided in Rule 4 5 of the AAA Rules; PROVIDED, HOWEVER, THAT ANY
AWARD SHALL NOT INCLUDE CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES. The arbitrators
shall award the prevailing party its costs and reasonable attorneys’ fees; provided, however, that
the arbitrators shall not award attorneys’ fees to a prevailing party if the prevailing party
received a settlement offer unless the arbitrators’ award to the prevailing party is greater than
such settlement offer without taking into account attorneys’ fees in the case of the settlement
offer or the arbitrators’ award. Any arbitration shall be held in Los Angeles County, California.
In addition to the above courts, the arbitration award may be enforced in any court having
jurisdiction over me parties and the subject matter of the arbitration.

11.13 Attorneys’ Fees. In the event that any action or proceeding is commenced by any party
hereto for the purpose of enforcing any provision of this Agreement, the parties to such action or
proceeding may receive as part of any award, judgment, decision or other resolution of such action
or proceeding their costs and reasonable attorneys’ fees as determined by the person or body making
such award, judgment, decision or resolution. Should any claim hereunder be settled short of the
commencement of any such action or proceeding, the parties in such settlement shall be entitled to
include as part of the damages alleged to have been incurred reasonable costs of attorneys or other
professionals in investigation or counseling on such claim.

[SIGNATURE PAGE TO FOLLOW]

36

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day
and year first above written at Los Angeles County, California as of this January 18, 2006.

	 	 	 	 	 
	SOFTWARE MEDIUM, INC.	 	 
	 
	 	 	 	 
	By:

	 	    s/s Michael K. Menegay	 	 
	 

	 	 

Michael K. Menegay, President
	 	 

	 	 	 	 	 
	VERIDYN, LLC.	 	 
	 
	 	 	 	 
	By:

	 	    s/s Douglas J. Landoll	 	 
	 

	 	 

Douglas J. Landoll, President
	 	 

Solely and exclusively with respect to the personal obligations of

Menegay and Landoll set forth in Article III(B) and 9.3 of this Agreement:

	 	 	 
	    s/s Michael K. Menegay
	 	 
	 

Michael K. Menegay, individually

	 	 

	 	 	 
	    s/s Douglas J. Landoll
	 	 
	 

Douglas J. Landoll, individually

	 	 

EN POINTE TECHNOLOGIES SALES, INC.

	 	 	 	 	 
	By:

	 	   s/s Attiazaz (“Bob”) Din	 	 
	 

	 	 

Attiazaz (“Bob”) Din, President
	 	 

37

 

Schedule 1.1 (c)

Intellectual Property

	 	 	 
	1.

	 	Courseware Active (CISSP, CISA, IS Regulations for Federal Government)
	2.

	 	Courseware Developing or Inactive (HIPAA, Info Warfare)
	3.

	 	Pricing strategies and guides
	4.

	 	SRA methods
	5.

	 	Policy Review methods
	6.

	 	Common Criteria worked examples (documents)
	7.

	 	Variable Invoicing Program (VIP)
	8.

	 	Virtual Professional Services (VPS) Program

38

 

Schedule 1.1 (g)

Fixed Assets — SMI and Veridyn

	 	 	 
	9.

	 	Attached as Exhibit A A

39

 

Schedule 1.3

Assumed Contracts

10.      Those obligations of SMI to make “Earnout Payment” under Section 3.3 of that certain Agreement
of Merger dated September 20, 2005 among Software Medium, Inc., SMI Merger Sub, LLC, Veridyn, Inc.,
Douglas Landoll, and James Matthew Malone, to Landoll and Malone, BUT NOT the potential defeasance
liability of the IP referenced in that Agreement of Merger. Landoll and Malone and Veridyn LLC
explicitly waive any potential for recovery of that IP.

11.      All obligations of Veridyn, Inc, (predecessor to Veridyn, LLC), under that certain sublease
agreement dated May 4, 2004 between Veridyn, Inc., as subtenant, and Technifind, Inc., as sublessor
(the “Austin Office Lease Agreement”).

40

 

Schedule 1.4

Assumed Liabilities

1. All obligations of Sellers under the Assumed Contracts, BUT NOT the potential defeasance
liability of the IP referenced in that Agreement of Merger. Landoll and Malone and Veridyn LLC
explicitly waive any potential for recovery of that IP.

41

 

Schedule 1.5

Excluded Assets

12.       The name Veridyn and associated logo, all Veridyn trade marks, service marks, trade names,
whether common law or registered.

13.       The name Veridyn and associated logo, all Veridyn trade marks, service marks, trade names,
whether common law or registered.

(not excluded is the webtraffic after close from www.veridyn.com which shall be forwarded
to such sites as Purchaser may designate)

42

 

Schedule 2.3 (a)(viii)

Employees

	 	 	 	 	 	 	 
	1

	 	Bates
	 	Amy K.	 	 
	2	 	ClaffeyJan M.
	3

	 	Davis
	 	Lonnie	 	 
	4

	 	Edwards
	 	Patrick B.	 	 
	5

	 	Gair
	 	Matthew D.	 	 
	6	 	Garrett William C.
	7

	 	Hardwick
	 	Stephen	 	 
	8

	 	Harlan
	 	Matthew	 	 
	9

	 	Hasty
	 	Lisa K.	 	 
	10

	 	Hatch
	 	Kevin W.	 	 
	11

	 	Kline
	 	Michael	 	 
	12

	 	Landoll
	 	Doug	 	 
	13

	 	Lee
	 	Joe G.	 	 
	14

	 	Lewellyn
	 	Richard C.	 	 
	15

	 	Malone
	 	James Matthew	 	 
	16

	 	Menegay
	 	Michael	 	 
	17

	 	Minissale
	 	Michael A.	 	 
	18

	 	Sims
	 	Jerry L.	 	 
	19

	 	Thomas
	 	Richard	 	 

43

 

SCHEDULE 3.2

SMI CAPITALIZATION

	 	 	 	 	 
	ConsensusOne, LLC
	 	 	1,164,229	 
	Michael K. Menegay
	 	 	4,001,416	 
	Mark Wilson
	 	 	327,750	 
	Monty Holloway
	 	 	327,750	 
	Douglas J. Landoll
	 	 	1,030,858	 
	James Matthew Malone
	 	 	97,932	 
	 
	 	 	 	 
	TOTAL
	 	 	6,949,935	 

44

 

Schedule 3.4

No Violations

	 	 	 
	1.

	 	Airwave Reseller Agreement
	2.

	 	Blue Coat Reseller Agreement
	3.

	 	Cipher Trust Reseller Partner Agreement
	4.

	 	Clearswift Reseller Agreement
	5.

	 	Computer Associates International Inc, Reseller Agreement
	6.

	 	Computer Associates Vendor Services Agreement
	7.

	 	Macromedia Authorized Breeze Partner Reseller Agreement
	8.

	 	Mcafee Reseller Agreement
	9.

	 	McAfee Services Agreement
	10.

	 	Proofpoint North American Reseller Agreement
	11.

	 	ScriptLogic Reseller Agreement
	12.

	 	Sophos Partner Agreement
	13.

	 	SurfControl, Inc. Reseller Agreement
	14.

	 	Websense Channel Partner Agreement
	15.

	 	DeLage Landen Lease Agreement(s)
	16.

	 	Information Leasing Corp. Master Lease Agreement
	17.

	 	IKON Financial Services B Image Management Plus Agreement
	18.

	 	Net Lease dated 7/16/04 on the Real Property at 4635 McEwen, Dallas, TX
	19.

	 	Secured Promissory Note dated 7/11/05 payable to Websense Inc.
	20.

	 	Promissory Note Dated 12/17/04 payable to Menegay Management
	21.

	 	Promissory Note payable to ConsensusOne, LLC
	22.

	 	Promissory Note payable to Mark Kunkel
	23.

	 	Factoring Agreement between Allied Capital Partners (TCC) and Software Medium, Inc
	24.

	 	Factoring Agreement between Allied Capital Partners (TCC) and Veridyn, LLC
	25.

	 	Austin Office Lease Agreement
	26.

	 	Reliant Energy Business Services Agreement
	27.

	 	Voice and Data Communications Service and Equipment Agreement
	28.

	 	Softswitch Communications Inc.
	29.

	 	Employment Agreements between Sellers on one hand, and Menegay, and Landoll, on the

	other hand.

45

 

Schedule 3.5

Consents and Approvals

	 	 	 
	30.

	 	Arrow Electronics

	31.

	 	Delage

46

 

Schedule 3.6

Subsidiaries

	 	 	 
	1.

	 	Veridyn LLC

47

 

Schedule 3.9(q)

1. Appsworx B demand letter threatening legal action for failure to pay on account.

2. All references to litigation and threatened disputes listed on Schedule 3.13 are incorporated
by reference into this Schedule 3.9(q).

48

 

Schedule 3.10

Title to Properties, Encumbrances

	 	 	 
	32.
33.

	 	Arrow Electronics

Delage Landen

49

 

Schedule 3.11

Leases

	 	 	 
	34.

	 	Office Lease Agreement between Technifind, Inc. and Veridyn, Inc. dated May 4, 2004.

50

 

Schedule 3.12

Patents, Trademarks, Service Marks, Trade Names

(a) Intellectual Property

35.      Courseware Active (CISSP, CISA, IS Regulations for Federal Government)

36.      Courseware Developing or Inactive (GLBA, FERC, DITSCAP, ! TAC 202, HIPAA, Info Warfare)

37.      Pricing strategies and guides

38.      SRA methods

39.      Policy Review methods

40.      Security Policy methods

     41. Security Review; Risk Assessment; Audit Methods

42.      Common Criteria Work examples (documents)

43.      Variable Invoicing Program (VIP)

44.      Virtual Professional Services (VPS) Program

45.      Software Medium, Inc. trademarks, service marks, trade names, url

     46. All White Papers

     47. All Wireless Security Papers and Methods

     48. All other Training, Policy, Assessment and Compliance materials, methods and rights and

all other intellectual property to the extent not specified
above.

(b) Claims

49.      Cease and Desist Letter dated December 21, 2005 by and between Verisign, Inc. and Veridyn (copy

attached)

51

 

Schedule 3.13

Litigation

	 	 	 
	40.

	 	Websense
	41.

	 	Pip Dicker
	42.

	 	Sophos
	43.

	 	Sufrcontrol
	44.

	 	Airwave
	45.

	 	Scriptlogic
	46.

	 	Fadality Real Estate
	47.

	 	Verisign
	48.

	 	Appsworx

52

 

Schedule 3.14

Insurance

(b) Insurance Policies — SMI

49.       Workers’ Compensation Insurance — Hartford Underwriters Insurance Co. — Policy # 61WEC PI0190, Period: 4/9/05 to 4/9/06

50.      Property and Liability Insurance — Hartford Lloyds Insurance Co. — Policy # 61-SBA BV 8044 SC, Period 4/9/05 to 4/9/06

51.      Directors & Officers
Liability, Employment Practices, Fiduciary Liability, Crime —
Federal Insurance Company, Chubb Group of Insurance Co. — Policy
# 6802-5445, Period: 4/9/05 to 4/9/06

(c) Insurance Policies — Veridyn

52.      General Liability — BAPP Business Policy — CNA Insurance Co.,- Policy # 2072175142, Period: 12/23/05 to 12/23/06

53.      Workers’ Compensation Insurance — Hartford Insurance Co. — Policy # 46WECKZ4019, Period: 8/20/05 to 8/20/06

54.      Errors and Omissions Coverage

53

 

Schedule 3.15

Contracts and Commitments

Employment Agreements between Mike Menegay and Software Medium, Inc., Doug Landoll and Software
Medium, Inc. and Matt Malone and Software Medium, Inc.

54

 

Schedule 3.16

(a) Suppliers

	 	 	 
	55.

	 	Websense
	56.

	 	Sophos
	57.

	 	Surfcontrol
	58.

	 	Scriptlogic
	59.

	 	Arrow Electronics

55

 

Schedule 3.17

Employee Benefit Plans

60.       Health Insurance and Vision Coverage — United Healthcare Group

61.      Dental Insurance — Safeguard Life

62.      Accidental Death & Dismemberment, Short-Term Disability and Long-Term Disability — United of

Omaha Life (Mutual of Omaha)

63.      Section 125 Cafeteria Plan — Managed by: MHM Resources Inc.

56

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