Document:

exv10w8

 

Exhibit
10.8

1993 Key Employees Incentive Plan

     1.       The Plan is designed to provide additional incentive for selected employees (including
Officers who are full-time employees, whether or not Directors) of the Company and its current or
future subsidiaries by the grant of options to purchase Common Shares of the Company and/or by the
making of awards of incentive compensation. It is intended that the share options and awards of
incentive compensation will be awarded in a way calculated to be most effective to retain or
attract and to provide additional incentive to these selected employees having regard to their
individual potential, location, contributions to the Company and other applicable considerations.

     2.       The Plan shall be administered by a Committee of three or more Directors, appointed
annually by the Board of Directors of the Company from those of its members who, at the time they
act, are not, and for at least one year prior thereto have not been, eligible to participate under
the Plan or any other plans of the Company or any of its subsidiaries or other affiliates entitling
the participants therein to acquire shares, share options or share appreciation rights of the
Company or any of its subsidiaries or other affiliates. The Committee shall have full authority to
establish regulations for the administration of the Plan and to interpret the Plan.

     3.       Share Options and Share Appreciation Rights.

	 	(a)	 	The Board of Directors of the Company and, with the consent of that Board, the
Board of Directors of any subsidiary of the Company, may from time to time, as and if
recommended by the Committee, grant to selected employees of the Company and its
subsidiaries, or of such subsidiary, as the case may be, options to purchase not
exceeding in the aggregate 5,000,000 Common Shares of the Company, from the Company, or
from such subsidiary, as the case may be, provided that the Committee, subject to
ratification by the Board of Directors of the Company, shall make adjustments in the
number and kind of shares available for or subject to option, and in the purchase price
of shares subject to option, as it may deem appropriate in the event of a share
subdivision, share consolidation, share dividend (other than an optional share dividend
in lieu of a cash dividend), amalgamation, merger, consolidation, share
reclassification or other change in the capital structure of the Company. The Company
may issue shares or may acquire outstanding shares for the purpose of satisfying the
exercise of an option or of a share appreciation right. If shares are to be delivered
by a subsidiary, the Company may issue the shares required or the subsidiary may
acquire outstanding shares for such purpose.
	 
	 	(b)	 	The purchase price of the shares purchasable upon exercise of each option,
which shall not be less than 100% of their fair market value, as determined by the
Committee, on the date the option is granted, and all other terms and conditions of
each option, shall be fixed by the Board of Directors of the Company or of the
subsidiary, as the case may be, in each case on recommendation of the Committee,
provided that (i) no shares subject to option shall be purchasable after the expiration
date fixed in the option, which date shall not be later than ten years after the date
the option is granted, and (ii) no person shall have any of the rights of a Shareholder
in respect of shares subject to an option until such shares have been paid for in full
in cash and issued to such person. If the Board of Directors

 

 

- 2 -

	 	 	 	of the Company shall so authorize, the purchase price of shares payable upon
exercise of options granted under the Plan, or under the Key Employees Incentive
Plans approved by the Shareholders of the Company on December 9, 1988 and April 18,
1984, may, subject to applicable law, be paid in lieu of cash, by the delivery to
Company of certificates for Common Shares of the Company already owned by the
optionee having a fair market value (determined in a manner prescribed by the
Committee in accordance with applicable law) equal to the purchase price of the
shares (or any part thereof) for which the option is exercised, or by any
combination of cash and shares. In Canada, the purchase price shall be paid only in
cash, but at the request of the optionee, the Company may sell on the optionee’s
behalf Common Shares already owned by the optionee and apply the proceeds of the
sale to the optionee’s purchase of shares pursuant to the exercise of the share
option. An option may provide that the optionee may exercise the option by
delivering to the Company an exercise notice and irrevocable instructions for the
Company to deliver directly to a broker named in the exercise notice the number of
Common Shares set forth in the notice in exchange for payment of the purchase price
of such Common Shares. Any shares subject to an option which shall have terminated
or expired (other than to the extent surrendered upon the exercise of a share
appreciation right) may thereafter be reoptioned. In the case of options intended
to qualify for the tax treatment provided by Section 422 of the U.S. Internal
Revenue Code of 1986, as amended (“ISOs”), the aggregate fair market value
(determined at the time of the grant of such ISOs) of the shares with respect to
which ISOs granted after December 31, 1986 are exercisable for the first time by any
selected employee during any calendar year shall not exceed $100,000.
	 
	 	(c)	 	Any option may include a share appreciation right at the time of grant. If
recommended by the Committee and authorized by the Board of Directors of the Company
or, with the consent of that Board, the Board of Directors of the subsidiary of the
Company granting such option. Any option previously granted under the Plan or under
the Key Employees Incentive Plans approved by the Shareholders of the Company on
December 9, 1988 and April 18, 1984 and remaining unexercised may be amended to include
a share appreciation right, if recommended by the Committee and authorized by the Board
of Directors of the Company or, with the consent of that Board, the Board of Directors
of the subsidiary of the Company which granted such option. Subject to such terms and
conditions as the authorizing Board may provide, such right shall entitle the optionee
to surrender unexercised the option to which the right relates, or any portion thereof,
but only to the extent such option is then exercisable, and to receive upon such
surrender that number of shares having an aggregate value equal to the amount of the
excess of the then market value of one share over the purchase price per share
specified in the option multiplied by the number of shares purchasable upon exercise of
the option, or portion of option, so surrendered; provided that, at the election of the
Company or the subsidiary which granted such right, it may deliver cash, or a
combination of cash and shares, equal in value to the amount of such excess.

 

 

- 3 -

	 	(d)	 	An employee of the Company that has been granted an option shall have the
right, at any time, but subject to the discretion of the Board of Directors of the
Company to suspend this right at any time upon the determination of the Board of
Directors of the Company that it is in the best interests of the Company to do so, in
lieu of the exercise of such option, to elect to surrender to the Company for
cancellation any option which is then exercisable for Common Shares in return for the
payment by the Company of an amount (the “Cancellation Amount”) equal to the excess of
the fair market value of the Common Shares subject to such surrendered option (such
fair market value being determined to be (i) for options with a purchase price in U.S.
dollars, the simple average of the high and low prices at which the Company’s Common
Shares were traded in one or more board lots on the New York Stock Exchange for the
five days on which the Common Shares were traded prior to the date on which the options
were surrendered for cancellation, and for options with a purchase price in Canadian
dollars, the simple average of the high and low prices at which the Common Shares were
traded in one or more board lots on the Toronto Stock Exchange for the five days on
which the Common Shares were so traded prior to the date on which the options were
surrendered for cancellation or (ii) with the prior consent of the Toronto Stock
Exchange, such other price as may be determined by the Board of Directors of the
Company to be appropriate in the circumstances) over the aggregate exercise price for
the Common Shares of the Company subject to such option (as of the date of surrender).
The Company shall have the right to withhold from any payment in respect of the
Cancellation Amount any applicable withholding taxes or other withholding liabilities.
Any option surrendered for cancellation pursuant to this subsection 3(d) shall be
deemed to be terminated and of no further force or effect as of the time of surrender
or effective time of surrender, if later, and the total number of Common Shares of the
Company that may be issued pursuant to the exercise of options under this Plan, as set
forth in subsection 3(a), shall be reduced by the number of Common Shares that were
issuable upon the exercise of such option as of the time of surrender or effective time
of surrender, if later, unless payment of the Cancellation Amount is not made by the
Company in accordance with this subsection 3(d). Payment of the Cancellation Amount
shall be made by the Company within ten business days after the time of surrender or
effective time of surrender, if later, of an option pursuant to this subsection 3(d).

     4.       Incentive Compensation

     Awards of incentive compensation under the Plan may be made in respect of each fiscal year,
beginning with 1993. In accordance with the provisions of this Section 4. Such awards may be made
in, or in commitments to deliver, cash, shares of the Company, incentive units evidencing
commitments to pay or deliver at some future date or dates cash or shares in amounts measured by or
otherwise dependent upon earnings or other performance criteria, or share units evidencing
commitments to deliver or pay at some future date or dates shares or cash equal to the market value
of shares at such date or dates, together, in each case, if so provided, with amounts equal to
dividends and other distributions paid on an equivalent number of shares, or such other kind or
form of compensation as may, in the judgment of the Committee, be best calculated to further the
purposes of the Plan, all on such terms and subject to such conditions as the Committee may
determine. In Canada, because of certain tax rules that might adversely affect

 

 

- 4 -

the recipient of a deferred award, each award shall be paid not later than the end of the
third year following the end of the year in which the award to an employee is declared.

     In respect of each year, the Committee, subject to ratification by the Board of Directors of
the Company, shall from time to time, but not later than the end of the year immediately following
such year, fix the extent, if any, to which, within the limits of the “Incentive Fund” for such
year, awards of incentive compensation shall be made in respect of such year by the Company and by
its subsidiaries, and, subject to ratification by the Board of Directors of the Company or of the
subsidiary making the award, as the case may be, determine the participants for the year, the award
to be made to each participant and the time when such award is to be paid. The amount of the
Incentive Fund for each year shall be equal to (A) 1% of the sum of the consolidated net earnings
of the Company plus the related provisions for income and mining taxes (the “Award Pool”), as
confirmed by the Company’s independent auditors for such year and the Award Pool for each of the
two immediately preceding years (the “Preceding Years”) less (B) the aggregate amount of awards
actually made from the Award Pool in respect of each of the Preceding Years under the Plan or, as
the case may be, under the Key Employees Incentive Plan approved by the Shareholders of the Company
on December 9, 1988, in such years. Awards made under this Section 4 shall be deemed for the
purpose only of determining the amount to be charged therefor against an Incentive Fund or Funds to
have the value of the cash or shares or incentive units or share units or other kind or form of
compensation awarded that is determined by the Committee, as of the time the award is made and
disregarding the effect of any restrictions or delayed delivery provisions which would otherwise
reduce such value, on such basis as the Committee shall deem reasonable. The value of any award
made under this Section 4 shall be charged against the Incentive Fund for the year in respect of
which such award is made, except that, in the case of any award the amount of which is measured by
or otherwise dependent upon future consolidated earnings of the Company, the Committee may, at the
time such award is made, elect that there shall be charged against the Incentive Fund for the year
in respect of which such award is made and the Incentive Fund or Funds for each succeeding year or
years such amount or amounts, as may be determined by the Committee, but not less than the lesser
of (i) the value of such award divided by the number of years in the period from the beginning of
the year in respect of which such award is made to the earlier of the end of the year in which such
award is to be paid or delivered in full or the end of 1998, or (ii) the portion of the value of
such award which shall not have been previously charged against an Incentive Fund, provided,
however, that the Committee may at any time increase the amount to be charged for such award
against the Incentive Fund for any year by all or part of the amounts to be charged for such award
against the Incentive Fund or Funds for a subsequent year or years, and provided, further, that any
excess of amounts to be charged against the Incentive Fund for any year for awards made in respect
to prior years over the amount of such Incentive Fund shall be charged against the Incentive Fund
or Funds for the succeeding year or years. No awards shall be made under this Section 4 in respect
of any year unless and until the total value of all awards made under the Section 4 in respect of
prior years shall have been charged against the Incentive Fund or Funds for such year or prior
years.

     If awards are made in shares (or amounts of cash equal to the value of shares) or share units,
or other forms measured by shares and in the valuation thereof, to be delivered or paid in the
future, appropriate adjustments in the number and kind of shares or units measured by shares shall
be made in the same was as is provided for share options in Section 3(a) in the event of a change
in the capital structure of the Company. If awards of shares are made by the Company,

 

 

- 5 -

the Company may issue shares or may acquire outstanding shares for such purpose. If awards of
shares are made by a subsidiary, the Company may issue the shares required or the subsidiary may
acquire outstanding shares for such purpose.

     5.          Nothing in the Plan shall prevent a participant from being included in any other employee
plan of the Company or any of its subsidiaries or other affiliates or from receiving any
compensation (whether regular, special, supplemental, incentive, current, deferred or otherwise)
now or hereafter provided by the Company or any of its subsidiaries or other affiliates. Neither
the Plan nor any action taken thereunder shall be understood as giving to any person any right to
be retained in the employ of the Company or any subsidiary or other affiliate, nor shall any person
(including persons selected as participants for a prior year) be entitled as of right to be
selected as a participant in the Plan for any year. Any option or similar right (including any
share appreciation right, whether or not included in an option granted under the Plan) granted or
awarded under the Plan shall be nontransferable other than by will or the laws of descent and
distribution and, during the lifetime of the participant to whom such option or right shall have
been granted or awarded, shall be exercisable only by such participant or by his guardian or legal
representative, in the case of options not intended to qualify as ISOs, or by such participant, in
the case of options intended to qualify as ISOs.

     6.          The Board of Directors of the company may amend, suspend or terminate the Plan in whole or
in part at any time, provided that the rights and interests of participants to whom unexpired share
options or awards of incentive compensation have theretofore been granted or made shall not thereby
be adversely affected without their consent and no amendment which would increase the number of
shares which may be made subject to share options or otherwise materially increase the cost of the
Plan shall be made effective unless approved at a meeting of the holders of the shares of the
Company carrying general voting rights. The Plan shall become effective on the date of its approval
by the Company’s Shareholders. Unless the Plan is sooner terminated by the Board of Directors, no
share options or share appreciation rights may be granted after the day before the fifth
anniversary of the date that the Plan is approved by the Company’s Shareholders, and no awards of
incentive compensation may be made in respect of any fiscal year ending after December 31, 1997,
provided that the provisions of the Plan shall continue with respect to any options, rights or
awards theretofore granted or made.Exhibit 10.28 Stock Purchase Agreement

    
      

    

                                                                                                    Exhibit
      10.28

     

     

    
 

    STOCK
      PURCHASE AGREEMENT

     

    by
      and
      among

     

    THOMAS
      PHARMACEUTICALS ACQUISITION CORP.

     

    “PURCHASER”

     

    And

     

    THOMAS
      PHARMACEUTICAL LTD.

     

    “COMPANY”

     

    And

     

    iVoice,
      Inc.

     

    “SELLER”

     

    DATED
      AUGUST 7, 2006

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    STOCK
      PURCHASE AGREEMENT

     

    THIS
      STOCK PURCHASE AGREEMENT, dated as of August 7, 2006, is made and entered into
      by and among Thomas Pharmaceuticals Ltd. (the “Company”),Thomas Pharmaceuticals
      Acquisition Corp. (the “Purchaser”), and iVoice, Inc. (the “Seller”). The
      Purchaser, the Company, and the Seller are sometimes individually referred
      to
      herein as a “Party”
and
      collectively as the “Parties.”
      

     

    RECITALS:

     

    WHEREAS,
      the Company is engaged in the pharmaceutical business;

     

    WHEREAS,
      the Seller owns the following securities of Thomas Pharmaceuticals, Ltd., a
      New
      Jersey corporation (hereinafter the “Securities”): 100 shares of Class A Common
      Stock, 550 shares of Series B Convertible Preferred Stock, $360,000 of 10%
      Securied Convertible Debentures issued January 6, 2006, $100,000 of
      Administrative Service Convertible Debentures due January 1, 2013 issued January
      6, 2006, and $225,000 of Secured Convertible Debentures due January 1, 2013
      issued April 27, 2006;

     

    WHEREAS,
      upon the terms and conditions set forth herein, the Seller proposes to sell
      to
      the Purchaser and the Purchaser proposes to purchase from the Seller, all of
      the
      Securities;

     

    NOW,
      THEREFORE, in consideration of the foregoing and the respective representations,
      warranties, covenants, agreements and conditions hereinafter set forth, and
      intending to be legally bound hereby, each Party hereby agrees as
      follows:

     

    ARTICLE
      I

    DEFINITIONS

     

    Section
      1.1 Certain
      Definitions.
      The
      following terms, as used herein, have the following meanings:

     

    “Affiliate”
of
      any
      specified Person means any other Person directly or indirectly Controlling
      or
      Controlled by or under direct or indirect common Control with such specified
      Person.

     

    “Agreement”
means
      this Stock Purchase Agreement, as amended from time to time.

     

    “Assets”
means
      all of the assets, properties and rights of the Company, whether real, personal
      or mixed, whether tangible or intangible, and wherever situated, in existence
      on
      the date hereof and any additions thereto on or before the Closing
      Date.

     

    “Business
      Day”
means
      any day except Saturday, Sunday or any day on which banks are generally not
      open
      for business in the City of New York, New York.

     

    “Business”
means
      the present business as operated by the Company on the date hereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Closing”
means
      the consummation of the purchase and sale of the Securities, as set forth in
      this Agreement.

     

    “Closing
      Date”
means
      the date on which the Closing occurs.

     

    “Code”
means
      the United States Internal Revenue Code of 1986, as amended, including effective
      date and transition rules (whether codified or not). Any reference herein to
      a
      specified provision of the Code shall be deemed to include a reference to any
      successor provision thereof.

     

    “Company
      Ancillary Documents”
means
      any certificate, agreement, document or other instrument, other than this
      Agreement, to be executed and delivered by the Company in connection with the
      transactions contemplated hereby.

     

    “Confidential
      Information”
means
      any data or information concerning the Company (including trade secrets),
      without regard to form, regarding (for example and including, but not limited
      to) (a) business process models; (b) proprietary software; (c) research,
      development, products, services, marketing, selling, business plans, budgets,
      unpublished financial statements, licenses, prices, costs, Contracts, suppliers,
      customers, and customer lists; (d) the identity, skills and compensation of
      employees, contractors, and consultants; (e) specialized training; and
      (f) discoveries, developments, trade secrets, processes, formulas, data,
      lists, and all other works of authorship, mask works, ideas, concepts, know-how,
      designs, and techniques, whether or not any of the foregoing is or are
      patentable, copyrightable, or registrable under any intellectual property Laws
      or industrial property Laws in the United States or elsewhere. Notwithstanding
      the foregoing, no data or information constitutes “Confidential Information” if
      such data or information is publicly known and in the public domain through
      means that do not involve a breach of any covenant or obligation set forth
      in
      this Agreement.

     

    “Contract”
means
      any contract, sub-contract, agreement, lease, license, commitment, sale and
      purchase order, note, loan agreement or any other instrument, arrangement,
      or
      understanding of any kind, whether written or oral, and whether express or
      implied.

     

    “Control”
means,
      when used with respect to any specified Person, the power to direct the
      management and policies of such Person, directly or indirectly, whether through
      the ownership of voting securities, by Contract or otherwise. 

     

    “Customer”
means
      a
      customer of the Company that paid the Company in the aggregate more than $25,000
      during the six (6)-month period ended June 30, 2006.

     

    “GAAP”
means
      generally accepted accounting principles as applied in the United
      States.

     

    “Governmental
      Entity”
means
      any (i) nation, state, commonwealth, county, city, town, village, district,
      or other jurisdiction of any nature, (ii) federal, state, local, municipal,
      foreign, or other government, (iii) federal, state, local or foreign
      governmental or quasi-governmental authority of any nature (including any
      agency, branch, department, board, commission, court or tribunal),
      (iv) multi-national or supra-national organization or body, (v) body
      exercising, or entitled or purporting to exercise, any administrative,
      executive, judicial, legislative, police,

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    regulatory,
      or taxing authority or power, including any court or arbitrator,
      (vi) self-regulatory organization or (vii) official of any of the
      foregoing.

     

    “Intellectual
      Property”
means
      any or all of the following and all rights, arising out of or associated
      therewith: (a) all United States, international and foreign patents and
      applications therefor and all reissues, divisions, renewals, extensions,
      provisionals, continuations and continuations-in-part thereof; (b) all
      inventions (whether patentable or not), invention disclosures, improvements,
      proprietary information, know-how, technology, technical data and customer
      lists, and all documentation relating to any of the foregoing throughout the
      world; (c) all copyrights, copyright registrations and applications
      therefor, and all other rights corresponding thereto throughout the world;
      (d) all industrial designs and any registrations and applications therefor
      throughout the world; (e) all internet uniform resource locators, domain
      names, trade names, logos, slogans, designs, common law trademarks and service
      marks, trademark and service mark registrations and applications therefor
      throughout the world; (f) all databases and data collections and all rights
      therein throughout the world; (g) all moral and economic rights of authors
      and inventors, however denominated throughout the world; and (h) any
      similar or equivalent rights to any of the foregoing anywhere in the world.
      

     

    “Knowledge”
means
      all facts known by a Person on the date hereof or on the Closing Date following
      reasonable inquiry and diligence with respect to the matters at
      hand.

     

    “Laws”
means
      all
      laws,
      statutes, common law, rules, codes, regulations, restrictions, ordinances,
      orders, decrees, approvals, directives, judgments, rulings, injunctions, writs,
      awards and decrees of, or issued or entered by, all Governmental
      Entities.

     

    “Licenses”
means
      all notifications, licenses, permits (including environmental, construction
      and
      operation permits), franchises, certificates, approvals, exemptions,
      classifications, registrations and other similar documents and authorizations
      issued by any Governmental Entity, and applications therefor.

     

    “Liens”
mean
      all mortgages, liens, pledges, security interests, charges, claims, restrictions
      and encumbrances of any nature whatsoever.

     

    “Material
      Adverse Effect”
means
      any state of facts, change, event, effect or occurrence (when taken together
      with all other states of fact, changes, events, effects or occurrences) that
      has
      had or is reasonably likely to have a materially adverse effect on the financial
      condition, results of operations, prospects, properties, assets or liabilities
      (including contingent liabilities) of the Company. A Material Adverse Effect
      shall also include any state of facts, change, event or occurrence that shall
      have occurred or been threatened that (when taken together with all other states
      of facts, changes, events, effects or occurrences that have occurred or been
      threatened) has prevented or materially delayed, or would be reasonably likely
      to prevent or materially delay, the performance by any Party of their
      obligations hereunder or the consummation of the transactions contemplated
      hereby.

     

    “Noncompete
      Period”
means
      the period beginning on the Closing Date and continuing for a period of five
      (5)
      years from the Closing Date.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Permitted
      Liens”
means
      (a) Liens for Taxes not yet due and payable, (b) Liens of carriers,
      warehousemen, mechanics, materialmen and repairmen incurred in the ordinary
      course of business consistent with past practice and not yet delinquent and
      (c)
      in the case of the Real Property, zoning, building, or other restrictions,
      variances, covenants, rights of way, encumbrances, easements and other minor
      irregularities in title, none of which, individually or in the aggregate, (i)
      interfere in any material respect with the present use of or occupancy of the
      affected parcel by the Company, (ii) have more than an immaterial effect on
      the
      value thereof or its use, or (iii) would impair the ability of such parcel
      to be sold for its present use.

     

    “Person”
means
      any individual, corporation, partnership, joint venture, limited liability
      company, trust, unincorporated organization or Governmental Entity.

     

    “Purchaser
      Ancillary Documents”
means
      any certificate, agreement, document or other instrument, other than this
      Agreement, to be executed and delivered by the Purchaser in connection with
      the
      transactions contemplated hereby.

     

    “Registered
      Intellectual Property”
means
      all United States, international and foreign: (a) patents and patent
      applications (including provisional applications); (b) registered
      trademarks and service marks, applications to register trademarks and service
      marks, intent-to-use applications, or other registrations or applications
      related to trademarks and service marks; (c) registered copyrights and
      applications for copyright registration; (d) domain name registrations; and
      (e) any other Intellectual Property that is the subject of an application,
      certificate, filing, registration or other document issued, filed with, or
      recorded with any Governmental Entity.

     

    “SEC”
means
      the Securities and Exchange Commission.

     

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

     

    “Seller
      Ancillary Documents”
means
      any certificate, agreement, document or other instrument, other than this
      Agreement, to be executed and delivered by the Company, Seller or any Affiliate
      of the Seller in connection with the transactions contemplated
      hereby.

     

    “Supplier”
means
      any supplier of goods or services to the Company to which the Company paid
      in
      the aggregate more than $100,000 during the six (6)-month period ended June
      30,
      2006.

     

    “Taxes”
      means
      all
      taxes, assessments, charges, duties, fees, levies and other charges of a
      Governmental Entity, including income, franchise, capital stock, real property,
      personal property, tangible, withholding, employment, payroll, social security,
      social contribution, unemployment compensation, disability, transfer, sales,
      use, excise, gross receipts, value-added and all other taxes of any kind for
      which the Company or the Purchaser may have any liability imposed by any
      Governmental Entity, whether disputed or not, and any related charges, interest
      or penalties imposed by any Governmental Entity. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Tax
      Return”
means
      any report, return, declaration or other information, in whatever form or
      medium, required to be supplied to a Governmental Entity in connection with
      Taxes, including estimated returns and reports of every kind with respect to
      Taxes.

     

    “Termination
      Date”
means
      the date prior to the Closing when this Agreement is terminated in accordance
      with Article
      X.

     

    Section
      1.2 Accounting
      Terms.
      All
      accounting terms not specifically defined herein shall be construed in
      accordance with GAAP.

     

    ARTICLE
      II

    PURCHASE
      AND SALE

     

    Section
      2.1 Agreement
      to Purchase and Sell.
      Subject
      to the terms and conditions hereof, at the Closing, the Seller shall sell,
      assign, transfer and deliver to the Purchaser, and the Purchaser shall purchase
      and acquire from the Seller, all right, title and interest of in and to the
      Securities, free and clear of all Liens.

     

    ARTICLE
      III

    PURCHASE
      PRICE; ADJUSTMENTS

     

    Section
      3.1 Purchase
      Price.
      The
      aggregate amount to be paid for the Securities shall be $1,235,100
      plus twenty-five (25%) percent thereof, plus interest and dividends accrued
      under the terms of such Securities through the Closing Date (the “Purchase
      Price”).

     

    Section
      3.2 Payment
      of Purchase Price and Delivery of the Securities.

     

    (a) On
      the
      Closing Date, the Purchaser shall pay the Purchase Price to the
      Seller.

     

    (b) All
      payments required under this Section
      3.2
      or any
      other provision hereof shall be made in cash by wire transfer of next day
      available funds to such bank account as shall be designated in writing by
      Seller, or as otherwise agreed by the Parties. 

     

    (c) On
      the
      Closing Date the Seller shall deliver certificates representing the Securities
      to the Purchaser together with such instruments as are customary for the lawful
      and proper negotiation of the same.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

     

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES OF THE SELLER

     

    Section
      4.1 Organization;
      Share Ownership.

     

    (a) The
      Seller is a corporation duly formed and validly existing under the Laws of
      the
      State of New Jersey and has all requisite power and authority to own, lease
      and
      operate its properties and to carry on its business as now being conducted.
      

     

    (b) The
      Seller has good title to, and is the record holder and beneficial owner of,
      the
      Securities, free and clear of any Liens, and such Securities are validly issued,
      fully paid and nonassessable and in the case of debentures valid and enforceable
      obligations of the Company. The Seller is not bound by any agreement affecting
      or relating to its right to transfer or vote the Securities. 

     

    Section
      4.2 Authorization.
      The
      Seller has full corporate power and authority to execute and deliver this
      Agreement and the Seller Ancillary Documents to which it is a party and to
      perform its obligations hereunder and thereunder and to consummate the
      transactions contemplated hereby and thereby. The execution and delivery of
      this
      Agreement and the Seller Ancillary Documents by the Seller and the performance
      by the Seller of its obligations hereunder and thereunder and the consummation
      of the transactions provided for herein and therein have been duly and validly
      authorized by all necessary corporate action on the part of the Seller. This
      Agreement has been, and the Seller Ancillary Documents shall be as of the
      Closing Date, duly executed and delivered by the Seller and do or shall, as
      the
      case may be, constitute the valid and binding agreements of the Seller,
      enforceable against the Seller in accordance with their respective
      terms.

     

    Section
      4.3 Absence
      of Restrictions and Conflicts.
      The
      execution, delivery and performance by the Seller of this Agreement and the
      Seller Ancillary Documents, the consummation of the transactions contemplated
      hereby and thereby and the fulfillment of and compliance with the terms and
      conditions hereof and thereof do not or shall not (as the case may be), with
      the
      passing of time or the giving of notice or both, (a) contravene or conflict
      with any term or provision of the articles of incorporation or bylaws of the
      Seller, (b) violate or conflict with, constitute a breach of or default
      under, result in the loss of any benefit under, permit the acceleration of
      any
      obligation under or create in any party the right to terminate, modify or cancel
      any Contract to which the Seller is a party, (c) contravene or conflict
      with any judgment, decree or order of any Governmental Entity to which the
      Seller is a party or by which the Seller or any of its properties are bound,
      or
      (d) contravene or conflict with any Law or arbitration award applicable to
      the Seller. 

     

    Section
      4.4 Required
      Consents.
      Schedule
      4.4
      sets
      forth each action, consent, approval, notification, waiver, authorization,
      order
      or filing (each, a “Required
      Consent”
and
      collectively, the “Required
      Consents”)
      under
      any Law,

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    License
      or other Contract to which the Seller is a party that is necessary with respect
      to the execution, delivery and performance of this Agreement or the Seller
      Ancillary Documents in order to avoid a breach or violation of, or giving rise
      to any right of termination, cancellation or acceleration of any right or
      obligation or to a loss of any benefit under any such Law, License or Contract
      to which the Seller is a party. Except as set forth on Schedule
      4.4,
      no
      consent, approval, order or authorization of, or registration, declaration
      or
      filing with, any Governmental Entity is required with respect to the Seller
      in
      connection with the execution, delivery or performance of this Agreement or
      the
      Seller Ancillary Documents.

     

    Section
      4.5 Legal
      Proceeding.
      There
      are no suits, actions, claims, proceedings or investigations pending or, to
      the
      Knowledge of the Seller, threatened against, relating to or involving the Seller
      which would reasonably be expected to adversely affect the Seller’s ability to
      consummate the transactions contemplated by this Agreement or any Seller
      Ancillary Document.

     

    Section
      4.6 Knowledge
      of Seller.
      Seller
      has no Knowledge that any representation or warranty set forth by the Company
      in
      Section 5.3 Article V of the Agreement contains any untrue statement of any
      material fact or any omission to state any material fact necessary in order
      to
      make the statements made in light of the circumstances under which they were
      made, not misleading.

     

    ARTICLE
      V

    REPRESENTATIONS
      AND WARRANTIES OF

    THE COMPANY

     

    The
      Company represents and warrants to the Purchaser as follows as of the date
      hereof and the Closing Date: 

     

    Section
      5.1 Organization.
      The
      Company is a corporation duly formed and validly existing under the Laws of
      the
      State of New Jersey and has all requisite power and authority to own, lease
      and
      operate its properties and to carry on its business as now being conducted.
      The
      Company is duly qualified or registered as a foreign corporation to transact
      business under the Laws of each jurisdiction where the character of its
      activities or the location of the properties owned or leased by it requires
      such
      qualification or registration. 

     

    Section
      5.2 Authorization.
      At the
      Closing Date the Company will have full corporate power and authority to execute
      and deliver this Agreement and the Company Ancillary Documents and to perform
      its obligations hereunder and thereunder and to consummate the transactions
      contemplated hereby and thereby. The execution and delivery of this Agreement
      and the Company Ancillary Documents by the Company and the performance by the
      Company of its obligations hereunder and thereunder and the consummation of
      the
      transactions provided for herein and therein at the Closing Date, will have
      been
      duly and validly authorized by all necessary corporate action on the part of
      the
      Company. This Agreement and the Company Ancillary Documents shall be as of
      the
      Closing Date, duly executed and

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    delivered
      by the Company and do or shall, as the case may be, constitute the valid and
      binding agreements of the Company, enforceable against the Company in accordance
      with their respective terms.

     

    Section
      5.3 Balance
      Sheet.
      Schedule
      5.3
      contains
      the unaudited balance sheet as of June 30, 2006. The balance sheet is in
      conformity with GAAP and has been prepared from, and are in accordance with,
      the
      books and records of the Company, which books and records have been maintained
      on a basis consistent with the past practice of the Company. The balance sheet
      fairly presents the financial position of the Company as of the date of such
      balance sheet. Since December 31, 2005, there has been no change in any
      accounting (or tax accounting) policy, practice or procedure of the Company.
      The
      Company maintains accurate books and records reflecting its assets and
      liabilities and maintains proper and adequate internal accounting controls
      which
      provide assurance that (i) transactions are executed in accordance with
      management’s authorization, (ii) transactions are recorded as necessary to
      permit preparation of financial statements in conformity with GAAP, and (iii)
      accounts, notes and other receivables and inventory are recorded accurately,
      and
      proper and adequate procedures are implemented to effect the collection thereof
      on a current and timely basis.

     

    ARTICLE
      VI

    REPRESENTATIONS
      AND WARRANTIES OF PURCHASER

     

    The
      Purchaser hereby represents and warrants to the Company and the Seller as
      follows:

     

    Section
      6.1 Organization.
      The
      Purchaser is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and has all requisite corporate power
      and authority to own, lease and operate its properties and to carry on its
      business as now being conducted. 

     

    Section
      6.2 Authorization.
      The
      Purchaser has full corporate power and authority to execute and deliver this
      Agreement and the Purchaser Ancillary Documents, to perform its obligations
      hereunder and thereunder and to consummate the transactions contemplated hereby
      and thereby. The execution and delivery of this Agreement and the Purchaser
      Ancillary Documents by the Purchaser, the performance by the Purchaser of its
      obligations hereunder and thereunder, and the consummation of the transactions
      provided for herein and therein have been duly and validly authorized by all
      necessary corporate action on the part of the Purchaser. This Agreement has
      been
      and, as of the Closing Date, the Purchaser Ancillary Documents shall be, duly
      executed and delivered by the Purchaser and do or shall, as the case may be,
      constitute the valid and binding agreements of the Purchaser, enforceable
      against the Purchaser in accordance with their respective terms.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
 

    Section
      6.3 Absence of Restrictions and Conflicts.
      The
      execution, delivery and performance of this Agreement and the Purchaser
      Ancillary Documents, the consummation of the transactions contemplated hereby
      and thereby and the fulfillment of, and compliance with, the terms and
      conditions hereof and thereof do not or shall not (as the case may be), with
      the
      passing of time or the giving of notice or both, (a) contravene or conflict
      with any term or provision of the charter documents of the Purchaser,
      (b) violate or conflict with, constitute a breach of or default under,
      result in the loss of any benefit under, permit the acceleration of any
      obligation under or create in any party the right to terminate, modify or cancel
      any Contract to which the Purchaser is a party, (c) contravene or conflict
      with any judgment, decree or order of any Governmental Entity to which the
      Purchaser is a party or by which the Purchaser is bound or (d) contravene
      or conflict with any statute, Law, rule or regulation applicable to the
      Purchaser. No consent, approval, order or authorization of, or registration,
      declaration or filing with, any Governmental Entity is required with respect
      to
      the Purchaser in connection with the execution, delivery or performance of
      this
      Agreement or the Purchaser Ancillary Documents or the consummation of the
      transactions contemplated hereby or thereby.

     

    ARTICLE
      VII

    CERTAIN
      COVENANTS AND AGREEMENTS

     

    Section
      7.1 Conduct
      of Business by the Company.
      For the
      period commencing on the date hereof and ending on the Closing Date, the Company
      shall, except as expressly required hereby and except as otherwise consented
      to
      in advance in writing by the Purchaser, conduct the Business in the ordinary
      course consistent with past practice and shall, except as expressly required
      hereby and except as otherwise consented to in advance in writing by the
      Purchaser:

     

    (a) use
      its
      commercially reasonable efforts to preserve intact the goodwill and business
      organization of the Company, keep the officers and employees of the Company
      available to the Purchaser and preserve the relationships and goodwill of the
      Company with customers, distributors, suppliers, employees and other Persons
      having business relations with the Company;

     

    (b) maintain
      its existence and good standing in its jurisdiction of organization and in
      each
      jurisdiction listed on Schedule
      5.1(a);

     

    (c) comply
      with all applicable Laws;

     

    (d) maintain
      in existing condition and repair (ordinary wear and tear excepted), consistent
      with past practices, all buildings, offices, shops and other structures located
      on the Real Property, and all equipment, fixtures and other tangible personal
      property located on the Real Property;

     

    (e) not
      authorize for issuance or issue and deliver any additional shares of its capital
      stock or securities convertible into or exchangeable for shares of its capital
      stock,

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    or
      issue
      or grant any right, option or other commitment for the issuance of shares of
      its
      capital stock or of such securities, or split, combine or reclassify any shares
      of its capital stock;

     

    (f) not
      amend
      or modify its articles of incorporation or bylaws;

     

    (g) not
      declare any dividend, pay or set aside for payment any dividend or other
      distribution or make any payment to any shareholder, officer or director or
      any
      Person with whom any such shareholder, officer or director has any direct or
      indirect relation, other than the payment of salaries in the ordinary course
      of
      business and consistent with past practice; 

     

    (h) not
      create any subsidiary, acquire any capital stock or other equity securities
      of
      any corporation or acquire any equity or ownership interest in any business
      or
      entity;

     

    (i) not
      dispose of or permit to lapse any ownership and/or right to the use of any
      patent, trademark, trade name, service mark, license or copyright of the Company
      (including any of the Company Intellectual Property), or dispose of or disclose
      to any Person, any Confidential Information;

     

    (j) protect,
      defend and maintain the ownership, validity and registration of the Company
      Intellectual Property, and not allow any of the Registered Intellectual Property
      to be abandoned, forfeited, cancelled, expunged and/or dedicated to the
      public;

     

    (k) not
      (i)
      create,
      incur or assume any indebtedness, (2)
      grant,
      create, incur or suffer to exist any Lien on the Assets that did not exist
      on
      the date hereof, (3)
      write-down the value of any asset or investment on the books or records of
      the
      Company, except for depreciation and amortization in the ordinary course of
      business and consistent with past practice, (4)
      cancel
      any debt or waive any claim or right, (5)
      make any
      commitment for any capital expenditure to be made on or following the date
      hereof in excess of $10,000 in the case of any single expenditure or $20,000
      in
      the case of all capital expenditures, (6)
      enter
      into any Contract which cannot be cancelled by the Company on notice of not
      longer than thirty (30) days and without liability or penalty of any kind,
      (7)enter
      into any Contract which imposes, or purports to impose, any obligations or
      restrictions on any of its Affiliates, or (8)
      settle
      or compromise any legal proceedings related to or in connection with the
      Business; 

     

    (l) not
      (i)
      increase
      in any manner the compensation of, or enter into any new bonus or incentive
      agreement or arrangement with, any of its employees, officers, directors or
      consultants, (10)
      pay or
      agree to pay any additional pension, retirement allowance or other employee
      benefit under any Company Benefit Plan to any of its employees or consultants,
      whether past or present, except, in each case, in the ordinary course of
      business to the extent consistent with past practice of the Company; provided,
      however, that the Company shall not take any action described in this
Section
      7.1(l)
      with
      respect to (i) any manager, officer or director of the Company or (ii) any
      Person whose annualized compensation is $60,000 or more or whose annual
      compensation for

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    the
      twelve (12)-month period following the Expiration Date is expected to be $60,000
      or more; 

     

    (m) except
      as
      required by Applicable Benefit Laws, not adopt, amend or terminate any Company
      Benefit Plan or increase the benefits provided under any Company Benefit Plan,
      or promise or commit to undertake any of the foregoing in the
      future;

     

    (n) not
      enter
      into a collective bargaining agreement;

     

    (o) not
      enter
      into any Employment Agreement;

     

    (p) perform
      in all material respects all of its obligations under all Company Contracts
      and
      Licenses, and not default or suffer to exist any event or condition that with
      notice or lapse of time or both could constitute a default under any Company
      Contract or License (except those being contested in good faith); 

     

    (q) not
      increase any reserves for contingent liabilities (excluding any adjustment
      to
      bad debt reserves in the ordinary course of business consistent with past
      practice);

     

    (r) maintain
      in full force and effect and in the same amounts policies of insurance
      comparable in amount and scope of coverage to that maintained as of the date
      hereof by or on behalf of the Company;

     

    (s) continue
      to maintain its books and records in accordance with GAAP consistently applied
      and on a basis consistent with past practice and not make any change in any
      accounting (or tax accounting) policy, practice or procedure of the
      Company;

     

    (t) continue
      its current cash and inventory management practices; and

     

    (u) not
      authorize, or commit or agree to take, any of the foregoing actions, which
      the
      Company is required not to take without the Purchaser’s prior written
      consent.

     

    Section
      7.2 Inspection
      and Access to Information.
      During
      the period commencing on the date hereof and ending on the Closing Date, the
      Company shall (and shall cause its officers, directors, employees, auditors
      and
      agents to) provide the Purchaser and its accountants, investment bankers,
      counsel, environmental consultants and other authorized representatives full
      access, during reasonable hours and under reasonable circumstances, to any
      and
      all of its premises, employees (including executive officers), properties,
      contracts, commitments, books, records and other information (including Tax
      Returns filed and those in preparation) and shall cause its officers to furnish
      to the Purchaser and its authorized representatives, promptly upon request
      therefor, any and all financial, technical and operating data and other
      information pertaining to the Company and the Business and
      otherwise

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    fully
      cooperate with the conduct of due diligence by the Purchaser and its
      representatives.

     

    Section
      7.3 Notices
      of Certain Events.
      The
      Company shall promptly notify the Purchaser of:

     

    (a) any
      fact,
      condition, change or event that, individually or in the aggregate, has had
      or
      could reasonably be expected to have a Material Adverse Effect or otherwise
      results in any representation or warranty of the Company or the Seller hereunder
      being inaccurate in any respect as of the date of such fact, condition, change
      or event had such representation or warranty been made as of such
      date;

     

    (b) any
      fact,
      condition, change or event that causes or constitutes a breach of any of the
      representations or warranties of the Company or the Seller hereunder made as
      of
      the date hereof;

     

    (c) any
      notice or other communication from any Person alleging that the consent of
      such
      Person is or may be required in connection with the transactions contemplated
      hereby;

     

    (d) any
      notice or other communication from or to any Governmental Entity in connection
      with the transactions contemplated hereby;

     

    (e) any
      action, suit, claim, investigation or proceeding commenced or, to its Knowledge,
      threatened against, relating to or involving or otherwise affecting the Company
      or the Business or that relate to the consummation of the transactions
      contemplated hereby; and

     

    (f) (i)
      the
      damage or destruction by fire or other casualty of any material Asset or part
      thereof or (ii) any material Asset or part thereof becoming the subject of
      any
      proceeding (or, to the Knowledge of the Company, threatened proceeding) for
      the
      taking thereof or of any right relating thereto by condemnation, eminent domain
      or other similar governmental action.

     

    The
      Company hereby acknowledges that the Purchaser does not and shall not waive
      any
      right it may have hereunder solely as a result of such notifications and any
      notification given pursuant to this Section.

     

    Section
      7.4 Reasonable
      Efforts; Further Assurances; Cooperation.
      Subject
      to the other provisions hereof, each Party shall each use its reasonable, good
      faith efforts to perform its obligations hereunder and to take, or cause to
      be
      taken, and do, or cause to be done, all things necessary, proper or advisable
      under applicable Law to cause the transactions contemplated herein to be
      effected as soon as practicable, but in any event on or prior to the Expiration
      Date, in accordance with the terms hereof and shall cooperate fully with each
      other Party and its officers, directors, employees, agents, counsel, accountants
      and other designees in connection

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    with
      any
      step required to be taken as a part of its obligations hereunder, including
      the
      following:

     

    (a) Each
      Party shall promptly make its filings and submissions and shall take all actions
      necessary, proper or advisable under applicable Laws to obtain any required
      approval of any Governmental Entity with jurisdiction over the transactions
      contemplated hereby (except that the Purchaser shall have no obligation to
      take
      or consent to the taking of any action required by any such Governmental Entity
      that could adversely affect the Business, the Assets or the transactions
      contemplated by this Agreement or the Purchaser Ancillary Documents). The
      Company shall furnish to the Purchaser all information required for any
      application or other filing to be made by the Company pursuant to any applicable
      Law in connection with the transactions contemplated hereby;

     

    (b) Each
      Party shall promptly notify the other Parties of (and provide written copies
      of)
      any communications from or with any Governmental Entity in connection with
      the
      transactions contemplated hereby;

     

    (c) In
      the
      event any claim, action, suit, investigation or other proceeding by any
      Governmental Entity or other Person is commenced that questions the validity
      or
      legality of the transactions contemplated hereby or seeks damages in connection
      therewith, the Parties shall (i) cooperate and use all reasonable efforts to
      defend against such claim, action, suit, investigation or other proceeding,
      (ii)
      in the event an injunction or other order is issued in any such action, suit
      or
      other proceeding, use all reasonable efforts to have such injunction or other
      order lifted, and (iii) cooperate reasonably regarding any other impediment
      to
      the consummation of the transactions contemplated hereby; and

     

    (d) The
      Company shall give all notices to third parties and use its best efforts (in
      consultation with the Purchaser) to obtain all third-party consents
      (i) necessary, proper or advisable to consummate the transactions
      contemplated hereby, (ii) required to be given or obtained, including the
      Required Consents or (iii) required to prevent a Material Adverse Effect,
      whether prior to, on or following the Closing Date.

     

    Section
      7.5 Transfer
      Taxes; Expenses.
      Any
      Taxes or recording fees payable as a result of the purchase and sale of the
      Shares or any other action contemplated hereby (other than any federal, state,
      local or foreign Taxes measured by or based upon income or gains imposed upon
      the Purchaser) shall be paid by the Purchaser. The Parties shall cooperate
      in
      the preparation, execution and filing of all returns, questionnaires,
      applications and other documents regarding Taxes and all transfer, recording,
      registration and other fees that become payable in connection with the
      transactions contemplated hereby that are required or permitted to be filed
      at
      or prior to the Closing. 

     

    Section
      7.6 Non-Competition.

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (a) Confidential
      Information.
      The
      Company and the Seller shall hold in confidence at all times following the
      date
      hereof all Confidential Information and shall not disclose, publish or make
      use
      of Confidential Information at any time following the date hereof without the
      prior written consent of the Purchaser. 

     

    (b) Noncompetition.
      

     

    (i) The
      Company and the Seller hereby acknowledge that (A) the Company conducts the
      Business and/or has current plans to expand the Business throughout the
      Territory and (B) to protect adequately the interest of the Purchaser in the
      business and goodwill of the Company, it is essential that any noncompetition
      covenant with respect thereto cover all of the Business and the entire
      Territory.

     

    (ii) The
      Seller shall not, during the Noncompete Period, in any manner, either
      directly,
      indirectly, individually, in partnership, jointly or in conjunction with any
      Person, (A)
      engage
      in the business of providing, distributing or selling within the Territory
      products or services similar to the Company Services, or (B) have an equity
      or
      profit interest in, advise or render services (of an executive, marketing,
      manufacturing, research and development, administrative, financial, consulting
      or other nature) or lend money to any Person that provides, distributes or
      sells
      within the Territory products or services similar to the Company Products or
      the
      Services.

     

    (iii) Notwithstanding
      anything to the contrary, the Seller may acquire, through the purchase of
      capital stock or assets, from an unrelated third party, a business that may
      compete with the Business of the Company.

     

    (c) Nonsolicitation.
      The
      Seller shall not, during the Noncompete Period, in any manner, directly,
      indirectly, individually, in partnership, jointly or in conjunction with any
      Person, except as permitted in Section 7.6(b)(iii) above, (i) (x) recruit or
      solicit or attempt to recruit or solicit, on any of their behalves or on behalf
      of any other Person, any employee of the Company or an Affiliate thereof, (y)
      encourage any Person (other than the Purchaser or one of its Affiliates) to
      recruit or solicit any employee of the Company or an Affiliate thereof, or
      (z)
      otherwise encourage any employee of the Company or an Affiliate thereof to
      discontinue his or her employment by the Company or one of its Affiliates;
      (ii)
      solicit any customer of the Company or an Affiliate thereof who is or has been
      a
      customer on or prior to the Closing Date for the purpose of providing,
      distributing or selling products or services similar to the Company Products
      or
      the Services; or (iii) persuade or attempt to persuade any customer or supplier
      of the Company or any of its Affiliates to terminate or modify such customer’s
      or supplier’s relationship with the Company or any of its Affiliates.

    (d)
      Severability.
      In the
      event a judicial or arbitral determination is made that any provision of this
      Section
      7.6
      constitutes an unreasonable or otherwise unenforceable

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

     

    restriction
      against the Company or the Seller, the provisions of this Section
      7.6
      shall be
      rendered void only to the extent that such judicial or arbitral determination
      finds such provisions to be unreasonable or otherwise unenforceable with respect
      to the Company or the Seller. In this regard, any judicial authority construing
      this Agreement shall be empowered to sever any portion of the Territory, any
      prohibited business activity or any time period from the coverage of this
Section
      7.6
      and to
      apply the provisions of this Section
      7.6
      to the
      remaining portion of the Territory, the remaining business activities and the
      remaining time period not so severed by such judicial or arbitral authority.
      Moreover, notwithstanding the fact that any provision of this Section
      7.6is
      determined not to be specifically enforceable, the Purchaser shall nevertheless
      be entitled to recover monetary damages as a result of the breach of such
      provision by the Company or the Seller. The time period during which the
      prohibitions set forth in this Section
      7.6 shall
      apply shall be tolled and suspended for a period equal to the aggregate time
      during which the Company or the Seller violates such prohibitions in any
      respect.

     

    (e) Injunctive
      Relief.
      Any
      remedy at law for any breach of the provisions contained in this Section
      7.6
      shall be
      inadequate and the Purchaser shall be entitled to injunctive relief in addition
      to any other remedy the Purchaser might have hereunder.

     

    Section
      7.7 Release.
      In
      consideration for entering into this Agreement, the Company, the Purchaser,
      the
      Seller and the individual signatories appended to this Agreement who agree
      to be
      bound by this Section 7.7 of Article VIII (the “Releasor(s)”), on the date
      hereof, knowingly, voluntarily and unconditionally release, forever discharge,
      and covenant not to sue the individuals and entities listed on Schedule 7.7
      (the
“Releasees”) from or for any and all claims, causes of action, demands, suits,
      debts, obligations, liabilities, damages, losses, costs and expenses (including
      attorneys’ fees) of every kind or nature whatsoever, known or unknown, actual or
      potential, suspected or unsuspected, fixed or contingent, that such Releasor
      has
      or may have, now or in the future to the end of the world, arising out of,
      relating to, or resulting from any act or omission, error, negligence, breach
      of
      contract, tort, violation of law, discrimination, matter or cause whatsoever
      from the beginning of time or in the future to the end of the world; provided,
      however, that the foregoing release shall not apply to any claims arising out
      of
      this Agreement.
      Each
      party hereto agrees that notwithstanding anything else in this Agreement, the
      provisions of this Section 7.7 shall survive Termination of this
      Agreement.

     

    Section
      7.8 Certain
      Agreements.
      Effective on the Closing Date, the Company and the Seller agree to terminate:
      (i) the Administrative Services Agreement dated Janaury 6, 2006, (ii) the
      Investor Registration Rights Agreement dated January 6, 2006 and (iii) the
      Security Agreement dated January 6, 2006. 

     

    ARTICLE
      VIII

    CONDITIONS
      TO CLOSING

     

    Section
      8.1 Conditions
      to Obligations of the Purchaser.
      The
      obligations of the Purchaser to consummate the transactions contemplated hereby
      shall
      be
      subject to the fulfillment (or waiver by the Purchaser) at or prior to the
      Closing of each of the following additional conditions:

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (a) Injunction.
      There
      shall be no effective injunction, writ or preliminary restraining order or
      any
      order of any nature issued or Law passed by a Governmental Entity of competent
      jurisdiction to the effect that the transactions contemplated hereby may not
      be
      consummated as provided herein, no proceeding or lawsuit shall have been
      commenced by any Governmental Entity for the purpose of obtaining any such
      injunction, writ or preliminary restraining order and no written notice shall
      have been received from any Governmental Entity indicating an intent to
      restrain, prevent, materially delay or restructure the transactions contemplated
      hereby, in each case where the Closing would (or would be reasonably likely
      to)
      result in a material fine or penalty payable by the Purchaser or the Company
      or
      a material restriction on the operation of the Business as a result of such
      matter.

     

    (b) Consents.
      All
      Required Consents shall have been obtained or made on terms and conditions
      reasonably satisfactory to the Purchaser.

     

    (c) Representations
      and Warranties.
      Each of
      the representations and warranties of the Company and the Seller set forth
      in
Article
      IV
      and
Article
      V
      shall
      have been true and correct in all material respects as of the date hereof and
      shall be true and correct in all material respects as of the Closing Date as
      though made on and as of the Closing Date, except that those representations
      and
      warranties that by their terms are qualified by materiality shall be true and
      correct in all respects.

     

    (d) Performance
      of Obligations of the Company and the Seller.
      The
      Company and the Seller shall have performed in all material respects all
      covenants and agreements required to be performed by each of them hereunder
      at
      or prior to the Closing.

     

    (e) No
      Material Adverse Effect.
      Between
      the date hereof and the Closing Date, there shall not have occurred (nor shall
      the Purchaser have become aware of) any Material Adverse Effect or any
      development reasonably likely to result in a Material Adverse
      Effect.

     

    Section
      8.2 Conditions
      to Obligations of the Seller.
      The
      obligations of the Seller to consummate the transactions contemplated hereby
      shall be subject to the fulfillment (or waiver by the Seller) at or prior to
      the
      Closing of each of the following additional conditions:

     

    (a) Injunction.
      There
      shall be no effective injunction, writ or preliminary restraining order or
      any
      order of any nature issued by a Governmental Entity of competent jurisdiction
      to
      the effect that the Acquisition may not be consummated as provided herein,
      no
      proceeding or lawsuit shall have been commenced by any Governmental Entity
      for
      the purpose of obtaining any such injunction, writ or preliminary restraining
      order and no written notice shall have been received from any Governmental
      Entity indicating an intent to restrain, prevent, materially delay or
restructure
      the transactions contemplated hereby, in each case where the Closing would
      (or
      would be reasonably likely to) result in a material fine or penalty payable
      by
      the Seller or a material restriction on the Company’s operations as a result of
      such matter.

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

     

    (b) Consents.
      All
      consents, approvals, orders or authorizations of, or registrations, declarations
      or filings with, any Governmental Entity required in connection with the
      execution, delivery or performance hereof shall have been obtained or made
      on
      terms and conditions reasonably satisfactory to the Seller.

     

    (c) Representations
      and Warranties.
      Each of
      the representations and warranties of the Purchaser set forth in Article
      VI
      shall
      have been true and correct in all material respects as of the date hereof and
      shall be true and correct in all material respects as of the Closing Date as
      though made on and as of the Closing Date, except that those representations
      and
      warranties that by their terms are qualified by materiality shall be true and
      correct in all respects.

     

    (d) Performance
      of Obligations by the Purchaser.
      The
      Purchaser shall have performed all covenants and agreements required to be
      per-formed by it hereunder on or prior to the Closing Date.

     

    (e) Ancillary
      Documents.
      The
      Purchaser shall have delivered, or caused to be delivered, to the Seller and
      the
      Company the documents listed in Section
      9.3.

     

    ARTICLE
      IX

    CLOSING

     

    Section
      9.1 Closing.
      Subject
      to the satisfaction or waiver of the conditions set forth in Article
      VIII,
      the
      Closing shall occur on five (5) days notice by the Purchaser to the Seller,
      or
      such other date as the Parties may agree. The Closing shall take place at the
      offices of Snow Becker Krauss P.C., 605 Third Avenue, New York, NY 10158, or
      at
      such other place as the Parties may agree.

     

    Section
      9.2 Company
      and Seller Closing Deliveries.
      At the
      Closing, the Company and the Seller, as applicable, shall deliver to the
      Purchaser the following:

     

    (a) a
      certificate executed by the Seller as to compliance with the conditions set
      forth in Section
      8.1(b),
      (c),
      and
(d)
      hereof;

     

    (b) certificates
      representing the Securities, duly endorsed in blank or accompanied by duly
      executed stock powers or other assignment documents;

     

    (c) a
      certificate by the Secretary or any Assistant Secretary of the Company, dated
      the Closing Date, as to (1) the good standing of the Company in its jurisdiction
      of incorporation and in each other jurisdiction where it is qualified to do
      business, (2) no amendments to the Company’s charter documents and (3) the
      effectiveness of the resolutions
      of the board of directors of the Company and the Seller authorizing the
      execution, delivery and performance hereof by the Company passed in connection
      herewith and the transactions contemplated hereby; and

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (d) all
      other
      documents required to be entered into by the Company and the Seller pursuant
      hereto or reasonably requested by the Purchaser to convey the Securities to
      the
      Purchaser or to otherwise consummate the transactions contemplated
      hereby.

     

    Section
      9.3 Purchaser
      Closing Deliveries.
      On the
      Closing, the Purchaser shall have delivered, or caused to be delivered, to
      the
      Seller the following:

     

    (a) the
      Purchase Price to be paid at Closing in accordance with such Section
      3.1;

     

    (b) a
      certificate of an authorized officer as to compliance with the conditions set
      forth in Section
      8.2(c)
      and
(d);
      

     

    (c) all
      other
      documents required to be entered into or delivered by the Purchaser at or prior
      to the Closing pursuant hereto or reasonably requested by the Company to convey
      the Securities to the Purchaser or to otherwise consummate the transactions
      contemplated hereby.

     

     

    ARTICLE
      X

    TERMINATION

     

    Section
      10.1 Termination.
      This
      Agreement may be terminated:

     

    (a) in
      writing by mutual consent of the Purchaser and the Seller;

     

    (b) by
      written notice from the Seller to the Purchaser, in the event the Purchaser
      (i)
      fails to perform in any material respect any of its agreements contained herein
      required to be performed by it at or prior to the Closing or (ii) materially
      breaches any of its representations and warranties contained herein, which
      failure or breach is not cured within ten (10) days following the Seller having
      notified the Purchaser of its intent to terminate this Agreement pursuant to
      this Section
      10.1(b);

     

    (c) by
      written notice from the Purchaser to the Seller, in the event the Company or
      the
      Seller (i) fails to perform in any material respect any of their agreements
      contained herein required to be performed by it at or prior to the Closing
      or
      (ii) materially breaches any of their representations and warranties contained
      herein, which failure or breach is not cured within ten (10) days following
      the
      Purchaser having notified the Seller of its intent to terminate this Agreement
      pursuant to this Section
      10.1(c);

    (d)
      by
      written notice by the Seller to the Purchaser or the Purchaser to the Seller,
      as
      the case may be, in the event the Closing has not occurred on or prior to
      October 31, 2006, unless extended by the Parties in writing (the “Expiration
      Date”)
      for
      any reason other than delay or nonperformance of the Party seeking such
      termination. 

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

     

    Section
      10.2 Limited
      Effect of Termination.
      In the
      event of termination of this Agreement pursuant to Section 10.1 of Article
      X,
      the “Series A Preferred Shareholders”, as listed on Schedule 10.2 herein and
      described in the Shareholders Agreement dated as of January 6, 2006 by and
      among
      the Company, the Seller and the holders of the Series A Preferred Shareholders,
      shall be deemed to have consented to the consummation of a “Spin-Off
      Transaction” at the behest of the Seller and waive the other conditions
      precedent required for a Spin-Off Transaction to be consumated. Additionally,
      should the Closing not have occurred by October 31, 2006, then the persons
      specified in Schedule 10.2 herewith hereby deliver to the Seller a Spin-Off
      Instruction, pursuant to Article III.C.5.(a) as set forth in the Company’s
      Certificate of Incorporation, that the Company, at its sole discretion, shall
      use its commercially reasonable efforts to file and cause to become effective
      a
      Registration Statement under the Securities Act of 1933, as amended (the
“Securities
      Act”),
      so as
      to permit the Seller to consummate a Spin-Off Transaction as contemplated by
      and
      defined in a Shareholders’ Agreement. Each party hereto agrees that
      notwithstanding anything else in this Agreement, the provisions of this Section
      10.2 shall survive Termination of this Agreement.

     

    Section
      10.3 Specific
      Performance and Other Remedies.
      Each
      Party hereby acknowledges that the rights of each Party to consummate the
      transactions contemplated hereby are special, unique and of extraordinary
      character and that, in the event that any Party violates or fails or refuses
      to
      perform any covenant or agreement made by it herein, the non-breaching Party
      may
      be without an adequate remedy at law. In the event that any Party violates
      or
      fails or refuses to perform any covenant or agreement made by such Party herein,
      the non-breaching Party or Parties may, subject to the terms hereof and in
      addition to any remedy at law for damages or other relief, institute and
      prosecute an action in any court of competent jurisdiction to enforce specific
      performance of such covenant or agreement or seek any other equitable
      relief.

     

    ARTICLE
      XI

    MISCELLANEOUS
      PROVISIONS

     

    Section
      11.1 Notices.
      All
      notices, communications and deliveries required or made hereunder must be made
      in writing signed by or on behalf of the Party making the same, shall specify
      the Section hereunder pursuant to which it is given or being made, and shall
      be
      delivered personally or by telecopy transmission or by a national overnight
      courier service or by registered or certified mail (return receipt requested)
      (with postage and other fees prepaid) as follows:

     

    To
      the
      Purchaser:  Thomas
      Pharmaceuticals Acquisition Corp.

              c/o
      Snow Becker Krauss P.C.

               605
      Third Avenue

               New
      York, NY 10158

             Attn:
      Jack Becker and Charles Snow

             Facsimile
      No.: 212-949-7052

      

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    To
      the
      Company       Thomas
      Pharmaceuticals, Inc.

                 c/o
      Snow Becker Krauss P.C.

                 605
      Third AvenueNew
      York,
      NY 10158

              Attn:
      Jack Becker and Charles
      Snow

              Facsimile
      No.: 212-949-7052

    

    To
      the
      Seller                 
iVoice,
      Inc.

               
      750 Route 34

             Matawan,
      NJ 07747

              Attn:
      Jerome Mahoney

              Facsimile
      No.: 732-441-9895

    

    with
      a
      copy to:  Meritz
      & Muenz LLP

                    
2021
      O
      Street,
      NW

               Washington,
      D.C. 20036

            Attn:
      Lawrence A. Muenz, Esq.

                Facsimile
      No.: 202-728-2910

    

    or
      to
      such other representative or at such other address of a party as such party
      may
      furnish to the other parties in writing. Any such notice, communication or
      delivery shall be deemed given or made (a) on the date of delivery, if delivered
      in person, (b) upon transmission by facsimile if receipt is confirmed by
      telephone, (c) upon receipt by the addressee by delivery via a national
      overnight courier service or (d) on the fifth (5th) Business Day following
      it being mailed by registered or certified mail.

     

    Section
      11.2 Schedules
      and Exhibits.
      The
      Schedules and Exhibits are hereby incorporated into this Agreement and are
      hereby made a part hereof as if set out in full herein.

     

    Section
      11.3 Assignment;
      Successors in Interest.
      No
      assignment or transfer by any Party of such Party’s rights and obligations
      hereunder shall be made except with the prior written consent of the other
      Parties; provided that the Purchaser shall, without the obligation to obtain
      the
      prior written consent of any other Party, be entitled to assign this Agreement
      or all or any part of its rights or obligations hereunder to one or more
      Affiliates of the Purchaser. This Agreement shall be binding upon and shall
      inure to the benefit of the Parties and their respective successors and
      permitted assigns, and any reference to a Party shall also be a reference to
      the
      successors and permitted assigns thereof.

     

    Section
      11.4 Captions.
      The
      titles, captions and table of contents contained herein are inserted herein
      only
      as a matter of convenience and for 

     

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

     

    reference
      and in no way define, limit, extend or
      describe the scope of this Agreement or the intent of any provision hereof.
      

     

    Section
      11.5 Controlling
      Law.
      This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      internal Laws of the State of New York without reference to its choice of law
      rules.

     

    Section
      11.6 Severability.
      Any
      provision hereof that is prohibited or unenforceable in any jurisdiction shall,
      as to such jurisdiction, be ineffective to the extent of such pro-hibition
      or
      unenforceability without invalidating the remaining provisions hereof, and
      any
      such prohibition or unenforceability in any jurisdiction shall not invalidate
      or
      render unenforceable such provision in any other jurisdiction. To the extent
      permitted by Law, each Party hereby waives any provision of law that renders
      any
      such provision prohibited or unenforceable in any respect.

     

    Section
      11.7 Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, and it shall not be necessary in making proof of this
      Agreement or the terms hereof to produce or account for more than one of such
      counterparts.

     

    Section
      11.8 Enforcement
      of Certain Rights.
      Nothing
      expressed or implied herein is intended, or shall be construed, to confer upon
      or give any Person other than the Parties, and their successors or permitted
      assigns, any right, remedy, obligation or liability under or by reason of this
      Agreement, or result in such Person being deemed a third-party beneficiary
      hereof.

     

    Section
      11.9 Waiver;
      Amendment.
      Any
      agreement on the part of a Party to any extension or waiver of any provision
      hereof shall be valid only if set forth in an instrument in writing signed
      on
      behalf of such Party. A waiver by a Party of the performance of any covenant,
      agreement, obligation, condition, representation or warranty shall not be
      construed as a waiver of any other covenant, agreement, obligation, condition,
      representation or warranty. A waiver by any Party of the performance of any
      act
      shall not constitute a waiver of the performance of any other act or an
      identical act required to be performed at a later time.
      This
      Agreement may not be amended, modified or supplemented except by written
      agreement of the Parties.

     

    Section
      11.10  Integration.
      This
      Agreement and the documents executed pursuant hereto supersede all negotiations,
      agreements and understandings among the Parties with respect to the subject
      matter hereof and constitute the entire agreement among the Parties with respect
      thereto.

     

    Section
      11.11  Interpretation.
      Where
      the context requires, the use of a pronoun of one gender or the neuter is to
      be
      deemed to include a pronoun of the appropriate gender. References herein to
      any
      Law shall be deemed to refer to such Law, as amended from time to time,
and
      all
      rules
      and regulations promulgated thereunder.

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Section
      11.12 Cooperation
      Following the Closing.
      Following the Closing, each Party shall deliver to the other Parties such
      further information and documents and shall execute and deliver to the other
      Parties such further instruments and agreements as any other Party shall
      reasonably request to consummate or confirm the transactions provided for
      herein, to accomplish the purpose hereof or to assure to any other Party the
      benefits hereof.

     

    Section
      11.13  Transaction
      Costs.
      Except
      as provided above or as otherwise expressly provided herein, the Parties shall
      pay their own fees, costs and expenses incurred in connection herewith and
      the
      transactions contemplated hereby, including the fees, cost and expenses of
      its
      financial advisors, accountants and counsel.

    

     

    IN
      WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed,
      as
      of the date first above written.

     

    Thomas
      Pharmaceutical Acquisition Corp.

    

    By:
       /s/
      Farris M. Thomas,
      Jr.                                                            
   

    Name:
       Farris
      M. Thomas,
      Jr.                                                     
   

    Title:
       President                                                                            
          

    

    

    Thomas
      Pharmaceutical, Ltd.

    By:
       /s/
      Farris M. Thomas,
      Jr.                                                            
   

    Name:
       Farris
      M. Thomas,
      Jr.                                                     
   

    Title:
       President                                                                            
          

    

    

    iVoice,
      Inc.

    

    By:
       /s/
      Jerry
      Mahoney                                                                     
    

    Name:
       Jerry
      Mahoney                                                              
   

    Title:
       President                                                                          
          

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

     

    The
      signatuory persons below, constituting

    all
      of
      the Series A Preferred Stock of Thomas Pharmaceuticals, Ltd.

    Agree
      to
      the terms set forth in Article VII Section 7.7 and Article X

    Section
      10.2 thereof:

    

     /s/
      Faris M. Thomas,
      Jr.                                                       

    Faris
      M.
      Thomas, Jr.

    

     /s/
      John E.
      Lucas                                                                  

    John
      E.
      Lucas

    

     /s/
      Richard C.
      Brogle                                                           

    Richard
      C. Brogle

    

     /s/
      Nina
      Schwalbe                                                               

    Nina
      Schwalbe

    

     /s/
      John H.
      Kirkwood                                                         

    John
      H.
      Kirkwood

    

     /s/
      Maureen
      Gillespie                                                         

    Maureen
      Gillespie

     

    
 

    
24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]