Document:

EXHIBIT 4.2

                        TELECOMMUNICATION PRODUCTS, INC.
                              STOCK INCENTIVE PLAN

     1.  GENERAL PROVISIONS.

     1.1  Purpose.

     The Telecommunication Products, Inc. Stock Incentive Plan ("Plan") is
intended to allow designated directors, officers, employees, and certain
non-employees (all of whom are sometimes collectively referred to herein as
"Employees") of Telecommunication Products, Inc., a Colorado corporation
("TelPro") and its Subsidiaries (as that term is defined below) which it may
have from time to time TelPro and such Subsidiaries are referred to herein as
the "Company") to receive certain options ("Stock Options") to purchase TelPro's
common stock, one tenth of one cent ($0.001) par value ("Common Stock"), and to
receive grants of Common Stock subject to certain restrictions ("Awards"). As
used in this Plan, the term "Subsidiary" shall mean each corporation which is a
"subsidiary corporation" of TelPro within the meaning of Section 424(f) of the
Internal Revenue Code of 1986, as amended (the "Code"). The purpose of this Plan
is to provide Employees with equity-based compensation incentives to make
significant and extraordinary contributions to the long-term performance and
growth of the Company, and to attract and retain Employees of exceptional
ability.

     1.2  Administration.

     1.2.1 The Plan shall be administered by the Compensation Committee (the
"Committee") of, or appointed by, the Board of Directors of TelPro (the
"Board"). The Committee shall select one of its members as Chairman and shall
act by vote of a majority of a quorum, or by unanimous written consent. A
majority of its members shall constitute a quorum. The Committee shall be
governed by the provisions of Freestar's Bylaws and of Colorado law applicable
to the Board, except as otherwise provided herein or determined by the Board.

     1.2.2 The Committee shall have full and complete authority, in its
discretion, but subject to the express provisions of the Plan: to approve the
Employees nominated by the management of the Company to be granted Awards or
Stock Options; to determine the number of Awards or Stock Options to be granted
to an Employee; to determine the time or times at which Awards or Stock Options
shall be granted; to establish the terms and conditions upon which Awards or
Stock Options may be exercised; to remove or adjust any restrictions and
conditions upon Awards or Stock Options; to specify, at the time of grant,
provisions relating to exercisability of Stock Options and to accelerate or
otherwise modify the exercisability of any Stock Options; and to adopt such
rules and regulations and to make all other determinations deemed necessary or
desirable for the administration of the Plan. All interpretations and
constructions of the Plan by the Committee, and all of its actions hereunder,
shall be binding and conclusive on all persons for all purposes.

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     1.2.3 The Company hereby agrees to indemnify and hold harmless each
Committee member and each Employee of the Company, and the estate and heirs of
such Committee member or Employee, against all claims, liabilities, expenses,
penalties, damages or other pecuniary losses, including legal fees, which such
Committee member or Employee, his or her estate or heirs may suffer as a result
of his or her responsibilities, obligations or duties in connection with the
Plan, to the extent that insurance, if any, does not cover the payment of such
items. No member of the Committee or the Board shall be liable for any action or
determination made in good faith with respect to the Plan or any Award or Stock
Option granted pursuant to the Plan.

     1.3  Eligibility and Participation.

     Employees eligible under the Plan shall be approved by the Committee from
those Employees who, in the opinion of the management of the Company, are in
positions which enable them to make significant and extraordinary contributions
to the long-term performance and growth of the Company. In selecting Employees
to whom Stock Options or Awards may be granted, consideration shall be given to
factors such as employment position, duties and responsibilities, ability,
productivity, length of service, morale, interest in the Company and
recommendations of supervisors.

     1.4  Shares Subject to the Plan.

     The maximum number of shares of Common Stock that may be issued pursuant to
the Plan shall be One Million (1,000,000) subject to adjustment pursuant to the
provisions of paragraph 4.1. If shares of Common Stock awarded or issued under
the Plan are reacquired by the Company due to a forfeiture or for any other
reason, such shares shall be cancelled and thereafter shall again be available
for purposes of the Plan. If a Stock Option expires, terminates or is cancelled
for any reason without having been exercised in full, the shares of Common Stock
not purchased thereunder shall again be available for purposes of the Plan.

     2.  PROVISIONS RELATING TO STOCK OPTIONS.

     2.1  Grants of Stock Options.

     The Committee may grant Stock Options in such amounts, at such times, and
to such Employees nominated by the management of the Company as the Committee,
in its discretion, may determine. Stock Options granted under the Plan shall
constitute "incentive stock options" within the meaning of Section 422 of the
Code, if so designated by the Committee on the date of grant. The Committee
shall also have the discretion to grant Stock Options which do not constitute
incentive stock options, and any such Stock Options shall be designated
non-statutory stock options by the Committee on the date of grant. The aggregate
fair market value (determined as of the time an incentive stock option is
granted) of the Common Stock with respect to which incentive stock options are
exercisable for the first time by any Employee during any one calendar year
(under all plans of the Company and any parent or subsidiary of the Company) may
not exceed the maximum amount permitted under Section 422

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of the Code (currently one hundred thousand dollars ($100,000.00)). Non-
statutory stock options shall not be subject to the limitations relating to
incentive stock options contained in the preceding sentence. Each Stock Option
shall be evidenced by a written agreement (the "Option Agreement") in a form
approved by the Committee, which shall be executed on behalf of the Company and
by the Employee to whom the Stock Option is granted, and which shall be subject
to the terms and conditions of this Plan. In the discretion of the Committee,
Stock Options may include provisions (which need not be uniform), authorized by
the Committee in its discretion, that accelerate an Employee's rights to
exercise Stock Options following a "Change in Control," as such term is defined
in paragraph 3.1 hereof. The holder of a Stock Option shall not be entitled to
the privileges of stock ownership as to any shares of Common Stock not actually
issued to such holder.

     2.2  Purchase Price.

     The purchase price (the "Exercise Price") of shares of Common Stock subject
to each non-statutory Stock Option ("Option Shares") shall be equal to whatever
price is established by the Committee, in its sole discretion, on the date of
the grant. The Exercise Price of incentive Stock Options shall be the fair
market value of the options on the date of the grant thereof. For an Employee
holding stock possessing more than ten percent (10%) percent of the total
combined voting power of all classes of stock of the Company, the Exercise Price
of an incentive Stock Option shall be at least one hundred ten percent (110%) of
the fair market value of the Common Stock and such option.

     2.3  Option Period.

     The Stock Option period (the "Term") shall commence on the date of grant of
the incentive Stock Option and shall be seven (7) years or such shorter period
as is determined by the Committee; the Term for an incentive Stock Option
granted to an Employee holding stock possessing more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company shall be
five (5) years from the date such option is granted. The Term for Non-statutory
Stock Options shall be whatever period, if any, is set by the Board. Each Stock
Option shall provide that it is exercisable over its term in such periodic
installments as the Committee in its sole discretion may determine. Such
provisions need not be uniform. Notwithstanding the foregoing, but subject to
the provisions of paragraphs 1.2.2 and 2.1, Stock Options granted to Employees
who are subject to the reporting requirements of Section 16(a) of the Exchange
Act ("Section 16 Reporting Persons") shall not be exercisable until at least six
(6) months and one day from the date the Stock Option is granted.

     2.4  Exercise of Options.

     2.4.1 Each Stock Option may be exercised in whole or in part (but not as to
fractional shares) by delivering it for surrender or endorsement to the Company,
attention of the Corporate Secretary, at the principal office of the Company,
together with payment of the Exercise Price and an executed Notice and Agreement
of Exercise in the form prescribed by paragraph 2.4.2. Payment may be made (i)
in cash, (ii) by cashier's or certified check, (iii) by surrender of previously
owned shares of the

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Company's Common Stock valued pursuant to paragraph 2.2 (if the Committee
authorizes payment in stock in its discretion), (iv) by withholding from the
Option Shares which would otherwise be issuable upon the exercise of the Stock
Option that number of Option Shares equal to the exercise price of the Stock
Option, if such withholding is authorized by the Committee in its discretion,
(v) in the discretion of the Committee, by the delivery to the Company of the
optionee's promissory note secured by the Option Shares, bearing interest at a
rate sufficient to prevent the imputation of interest under Sections 483 or 1274
of the Code, and having such other terms and conditions as may be satisfactory
to the Committee, or (vi) cashless exercise program as established by TelPro.

     2.4.2 Exercise of each Stock Option is conditioned upon the agreement of
the Employee to the terms and conditions of this Plan and of such Stock Option
as evidenced by the Employee's execution and delivery of a Notice and Agreement
of Exercise in a form to be determined by the Committee in its discretion. Such
Notice and Agreement of Exercise shall set forth the agreement of the Employee
that: (a) no Option Shares will be sold or otherwise distributed in violation of
the Securities Act of 1933 (the "Securities Act") or any other applicable
federal or state securities laws, (b) each Option Share certificate may be
imprinted with legends reflecting any applicable federal and state securities
law restrictions and conditions, (c) the Company may comply with said securities
law restrictions and issue "stop transfer" instructions to its Transfer Agent
and Registrar without liability, (d) if the Employee is a Section 16 Reporting
Person, the Employee will furnish to the Company a copy of each Form 4 or Form 5
filed by said Employee and will timely file all reports required under federal
securities laws, and (e) the Employee will report all sales of Option Shares to
the Company in writing on a form prescribed by the Company.

     2.4.3 No Stock Option shall be exercisable unless and until any applicable
registration or qualification requirements of federal and state securities laws,
and all other legal requirements, have been fully complied with. The Company
will use reasonable efforts to maintain the effectiveness of a Registration
Statement under the Securities Act for the issuance of Stock Options and shares
acquired thereunder, but there may be times when no such Registration Statement
will be currently effective. The exercise of Stock Options may be temporarily
suspended without liability to the Company during times when no such
Registration Statement is currently effective, or during times when, in the
reasonable opinion of the Committee, such suspension is necessary to preclude
violation of any requirements of applicable law or regulatory bodies having
jurisdiction over the Company. If any Stock Option would expire for any reason
except the end of its term during such a suspension, then if exercise of such
Stock Option is duly tendered before its expiration, such Stock Option shall be
exercisable and exercised (unless the attempted exercise is withdrawn) as of the
first day after the end of such suspension. The Company shall have no obligation
to file any Registration Statement covering resales of Option Shares.

     2.5  Restrictions on Transfer.

     Each Stock Option granted under this Plan shall be transferable only by
will or the laws of descent and distribution. No interest of any Employee under
the Plan shall be subject to attachment, execution,

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garnishment, sequestration, the laws of bankruptcy or any other legal or
equitable process. Each Stock Option granted under this Plan shall be
exercisable during an Employee's lifetime only by such Employee or by such
Employee's legal representative.

     3.  PROVISIONS RELATING TO AWARDS.

     3.1 Grant of Awards.

     Subject to the provisions of the Plan, the Committee shall have full and
complete authority, in its discretion, but subject to the express provisions of
this Plan, to (i) grant Awards pursuant to the Plan, (ii) determine the number
of shares of Common Stock subject to each Award ("Award Shares"), (iii)
determine the terms and conditions (which need not be identical) of each Award,
including the consideration (if any) to be paid by the Employee for such Common
Stock, which may, in the Committee's discretion, consist of the delivery of the
Employee's promissory note meeting the requirements of paragraph 2.4.1, (iv)
establish and modify performance criteria for Awards, and (v) make all of the
determinations necessary or advisable with respect to Awards under the Plan.
Each award under the Plan shall consist of a grant of shares of Common Stock
subject to a restriction period (after which the restrictions shall lapse),
which shall be a period commencing on the date the award is granted and ending
on such date as the Committee shall determine (the "Restriction Period"). The
Committee may provide for the lapse of restrictions in installments, for
acceleration of the lapse of restrictions upon the satisfaction of such
performance or other criteria or upon the occurrence of such events as the
Committee shall determine.

     3.2  Incentive Agreements.

     Each Award granted under the Plan shall be evidenced by a written agreement
(an "Incentive Agreement") in a form approved by the Committee and executed by
the Company and the Employee to whom the Award is granted. Each Incentive
Agreement shall be subject to the terms and conditions of the Plan and other
such terms and conditions as the Committee may specify.

     3.3  Waiver of Restrictions.

     The Committee may modify or amend any Award under the Plan or waive any
restrictions or conditions applicable to such Awards; provided, however, that
the Committee may not undertake any such modifications, amendments or waivers if
the effect thereof materially increases the benefits to any Employee, or
adversely affects the rights of any Employee without his or her consent.

     3.4  Terms and Conditions of Awards.

     3.4.1 Upon receipt of an Award of shares of Common Stock under the Plan,
even during the Restriction Period, an Employee shall be the holder of record of
the shares and shall have all the rights of a shareholder with respect to such
shares, subject to the terms and conditions of the Plan and the Award.

     3.4.2  Except as otherwise provided in this paragraph 3.4, no

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shares of Common Stock received pursuant to the Plan shall be sold, exchanged,
transferred, pledged, hypothecated or otherwise disposed of during the
Restriction Period applicable to such shares. Any purported disposition of such
Common Stock in violation of this paragraph 3.4.2 shall be null and void.

     3.4.3 The Committee may require under such terms and conditions as it deems
appropriate or desirable that (i) the certificates for Common Stock delivered
under the Plan are to be held in custody by the Company or a person or
institution designated by the Company until the Restriction Period expires, (ii)
such certificates shall bear a legend referring to the restrictions on the
Common Stock pursuant to the Plan, and (iii) the Employee shall have delivered
to the Company a stock power endorsed in blank relating to the Common Stock.

     4.  MISCELLANEOUS PROVISIONS.

     4.1  Adjustments Upon Change in Capitalization.

     4.1.1 The number and class of shares subject to each outstanding Stock
Option, the Exercise Price thereof (but not the total price), the maximum number
of Stock Options that may be granted under the Plan, the minimum number of
shares as to which a Stock Option may be exercised at any one time, and the
number and class of shares subject to each outstanding Award, shall be
proportionately adjusted in the event of any increase or decrease in the number
of the issued shares of Common Stock which results from a split-up or
consolidation of shares, payment of a stock dividend or dividends exceeding a
total of five percent (5%) for which the record dates occur in any one fiscal
year, a recapitalization (other than the conversion of convertible securities
according to their terms), a combination of shares or other like capital
adjustment, so that (i) upon exercise of the Stock Option, the Employee shall
receive the number and class of shares such Employee would have received had
such Employee been the holder of the number of shares of Common Stock for which
the Stock Option is being exercised upon the date of such change or increase or
decrease in the number of issued shares of the Company, and (ii) upon the lapse
of restrictions of the Award Shares, the Employee shall receive the number and
class of shares such Employee would have received if the restrictions on the
Award Shares had lapsed on the date of such change or increase or decrease in
the number of issued shares of the Company.

     4.1.2 Upon a reorganization, merger or consolidation of the Company with
one or more corporations as a result of which is not the surviving corporation
or in which TelPro survives as a wholly-owned subsidiary of another corporation,
or upon a sale of all or substantially all of the property of the Company to
another corporation, or any dividend or distribution to shareholders of more
than ten percent (10%) of the Company's assets, adequate adjustment or other
provisions shall be made by the Company or other party to such transaction so
that there shall remain and/or be substituted for the Option Shares and Award
Shares provided for herein, the shares, securities or assets which would have
been issuable or payable in respect of or in exchange for such Option Shares and
Award Shares then remaining, as if the Employee had been the owner of such
shares as of the applicable date. Any securities so substituted shall be subject
to similar successive adjustments.

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     4.2  Withholding Taxes.

     The Company shall have the right at the time of exercise of any Stock
Option, the grant of an Award, or the lapse of restrictions on Award Shares, to
make adequate provision for any federal, state, local or foreign taxes which it
believes are or may be required by law to be withheld with respect to such
exercise ("Tax Liability"), to ensure the payment of any such Tax Liability. The
Company may provide for the payment of any Tax Liability by any of the following
means or a combination of such means, as determined by the Committee in its sole
and absolute discretion in the particular case: (i) by requiring the Employee to
tender a cash payment to the Company, (ii) by withholding from the Employee's
salary, (iii) by withholding from the Option Shares which would otherwise be
issuable upon exercise of the Stock Option, or from the Award Shares on their
grant or date of lapse of restrictions, that number of Option Shares or Award
Shares having an aggregate fair market value (determined in the manner
prescribed by paragraph 2.2) as of the date the withholding tax obligation
arises in an amount which is equal to the Employee's Tax Liability or (iv) by
any other method deemed appropriate by the Committee. Satisfaction of the Tax
Liability of a Section 16 Reporting Person may be made by the method of payment
specified in clause (iii) above only if the following two conditions are
satisfied:

     (a) the withholding of Option Shares or Award Shares and the exercise of
the related Stock Option occur at least six (6) months and one day following the
date of grant of such Stock Option or Award; and

     (b) the withholding of Option Shares or Award Shares is made either (i)
pursuant to an irrevocable election ("Withholding Election") made by such
Employee at least six months in advance of the withholding of Options Shares or
Award Shares, or (ii) on a day within a ten (10) day "window period" beginning
on the third business day following the date of release of the Company's
quarterly or annual summary statement of sales and earnings.

Anything herein to the contrary notwithstanding, a Withholding Election may be
disapproved by the Committee at any time.

     4.3  Relationship to Other Employee Benefit Plans.

     Stock Options and Awards granted hereunder shall not be deemed to be salary
or other compensation to any Employee for purposes of any pension, thrift,
profit-sharing, stock purchase or any other employee benefit plan now maintained
or hereafter adopted by the Company.

     4.4  Amendments and Termination.

     The Board of Directors may at any time suspend, amend or terminate this
Plan. No amendment, except as provided in paragraph 2.8, or modification of this
Plan may be adopted, except subject to stockholder approval, which would: (a)
materially increase the benefits accruing to Employees under this Plan, (b)
materially increase the number of securities which may be issued under this Plan
(except for adjustments pursuant to paragraph 4.1 hereof), or (c) materially
modify the requirements as to eligibility for participation in the Plan.

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     4.5  Successors in Interest.

     The provisions of this Plan and the actions of the Committee shall be
binding upon all heirs, successors and assigns of the Company and of Employees.

     4.6  Other Documents.

     All documents prepared, executed or delivered in connection with this Plan
(including, without limitation, Option Agreements and Incentive Agreements)
shall be, in substance and form, as established and modified by the Committee;
provided, however, that all such documents shall be subject in every respect to
the provisions of this Plan, and in the event of any conflict between the terms
of any such document and this Plan, the provisions of this Plan shall prevail.

     4.7  No Obligation to Continue Employment.

     This Plan and grants hereunder shall not impose any obligation on the
Company to continue to employ any Employee. Moreover, no provision of this Plan
or any document executed or delivered pursuant to this Plan shall be deemed
modified in any way by any employment contract between an Employee (or other
employee) and the Company.

     4.8  Misconduct of an Employee.

     Notwithstanding any other provision of this Plan, if an Employee commits
fraud or dishonesty toward the Company or wrongfully uses or discloses any trade
secret, confidential data or other information proprietary to the Company, or
intentionally takes any other action materially inimical to the best interests
of the Company, as determined by the Committee, in its sole and absolute
discretion, such Employee shall forfeit all rights and benefits under this Plan.

     4.9  Term of Plan.

     This Plan was adopted by the Board effective January 28, 2002. No Stock
Options or Awards may be granted under this Plan after January 28, 2011.

     4.10  Governing Law.

     This Plan shall be construed in accordance with, and governed by, the laws
of the State of Colorado.

     4.11  Shareholder Approval.

     No Stock Option shall be exercisable, or Award granted, unless and until
the Directors of the Company have approved this Plan and all other legal
requirements have been fully complied with. In addition, no incentive Stock
Option shall be granted until approved by a majority of the issued and
outstanding Common Stock of the TelPro.

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     4.12  Assumption Agreements.

     The Company will require each successor, (direct or indirect, whether by
purchase, merger, consolidation or otherwise), to all or substantially all of
the business or assets of the Company, prior to the consummation of each such
transaction, to assume and agree to perform the terms and provisions remaining
to be performed by the Company under each Incentive Agreement and Stock Option
and to preserve the benefits to the Employees thereunder. Such assumption and
agreement shall be set forth in a written agreement in form and substance
satisfactory to the Committee (an "Assumption Agreement"), and shall include
such adjustments, if any, in the application of the provisions of the Incentive
Agreements and Stock Options and such additional provisions, if any, as the
Committee shall require and approve, in order to preserve such benefits to the
Employees. Without limiting the generality of the foregoing, the Committee may
require an Assumption Agreement to include satisfactory undertakings by a
successor:

     (a) to provide liquidity to the Employees at the end of the Restriction
Period applicable to Common Stock awarded to them under the Plan, or on the
exercise of Stock Options;

     (b) if the succession occurs before the expiration of any period specified
in the Incentive Agreements for satisfaction of performance criteria applicable
to the Common Stock awarded thereunder, to refrain from interfering with the
Company's ability to satisfy such performance criteria or to agree to modify
such performance criteria and/or waive any criteria that cannot be satisfied as
a result of the succession;

     (c) to require any future successor to enter into an Assumption Agreement;
and

     (d) to take or refrain from taking such other actions as the Committee may
require and approve, in its discretion.

The Committee referred to in this paragraph 4.12 is the Committee appointed by a
Board of Directors in office prior to the succession then under consideration.

     4.13  Compliance With Rule 16b-3.

     Transactions under the Plan are intended to comply with all applicable
conditions of Rule 16b-3. To the extent that any provision of the Plan or action
by the Committee fails to so comply, it shall be deemed null and void, to the
extent permitted by law and deemed advisable by the Committee.

IN WITNESS WHEREOF, this Plan has been executed as of the 28th day of January,
2002.

Telecommunication Products, Inc.

By: /s/ Robert Russell
-----------------------
Robert Russell, President

                                       9Prepared by MERRILL CORPORATION

Exhibit 10.11

 

STOCK PURCHASE
AGREEMENT

 

Stock Purchase
Agreement executed on May 14, 2001 between
Castletop Investments, L.P. (d/b/a Castletop Capital), a Texas limited
partnership with a principal place of business located at 5000 Plaza on the
Lake, Suite 170, Austin, Texas 78746 (“Purchaser”) and Bio-Reference
Laboratories, Inc., a New Jersey corporation with a principal place of business
located at 481 Edward H. Ross Drive, Elmwood Park, New Jersey 07407 (“BRLI”).

WITNESSETH:

 

WHEREAS, the
Purchaser has provided BRLI’s management with valuable managerial advice and
BRLI wishes to obtain the Purchaser’s services as a director in the future to
provide managerial guidance and assistance on an on-going basis, and

 

WHEREAS, the
Purchaser wishes to make a substantial equity investment in BRLI and is willing
to serve as a member of BRLI’s board of directors on the terms and conditions
herein set forth, and

 

WHEREAS, BRLI is
willing to sell a substantial number of shares of its authorized but unissued
common stock to the Purchaser at a discount from the current market price for
the common stock in the over-the-counter market on the terms and conditions
herein set forth.

 

NOW THEREFORE, in
consideration of the mutual covenants and agreements herein contained, the parties
agree as follows:

 

1.             Sale and Purchase
of the BRLI Shares of Common Stock

 

Based
upon the representations and warranties herein contained and subject to the
terms and conditions hereinafter set forth, the Purchaser shall purchase from
BRLI and BRLI shall sell to the Purchaser, an aggregate 1,500,000 shares of
BRLI’s authorized but unissued common stock (the “Shares”) at an aggregate
purchase price of $1,500,000 (the “Purchase Price”) or $1.00 per Share.

 

2.             The Closing

 

(A)          The closing of such sale and purchase
(the “Closing”) shall take place at the offices of BRLI at 481 Edward H. Ross
Drive, Elmwood Park, New Jersey 07407 at 2:00 o’clock P.M. (local time) on
Monday, May 14, 2001, or at such date and time thereafter as the parties hereto
shall mutually agree, in a writing executed by BRLI on the one hand and by
Purchaser on the other.

 

(B)           At the Closing, the Purchaser will
deliver a certified or bank check or will wire funds payable to BRLI in New
York Clearing House Funds, in the amount of the Purchase Price, to BRLI, in
full payment for the Shares.

(C)           At the Closing, BRLI will deliver a
stock certificate for the Shares, in the Purchaser’s name, to the Purchaser.
The certificate will be registered in the name of the Purchaser but the Shares
will not be registered under the Securities Act of 1933 (the “Securities Act”).

 

3.             Representations and
Warranties of BRLI

 

BRLI
hereby represents and warrants to the Purchaser that the following is true:

 

(A)          Organization, Good Standing and
Qualification – BRLI is a corporation duly organized, validly existing and
in good standing under the laws of the State of New Jersey and has all
requisite power and authority to carry on its business as it is now being
conducted. BRLI is duly qualified to transact business and is in good standing
in each jurisdiction in which the failure to so qualify would have a material
adverse effect on its business or properties.

 

(B)           Corporate Power – BRLI will
have at the Closing all requisite corporate power and authority (i) to execute
and deliver this Stock Purchase Agreement and each other document executed in
connection herewith, (ii) to sell and issue the Shares, and (iii) to carry out
and perform its obligations under the terms of this Stock Purchase Agreement.

 

(C)           Filings – BRLI has filed with
the Securities and Exchange Commission (the “SEC”) all documents (the “SEC
Documents”) required to be filed with the SEC since November 1, 1999 pursuant
to the Securities Exchange Act of 1934 (the “Exchange Act”). BRLI has made
available to the Purchaser, true and complete copies of the SEC Documents that
BRLI has been required to file and/or has filed with the SEC relating to the
year ended October 31, 2000 and all periods thereafter. To the best of BRLI’s
knowledge and belief, as of their respective filing dates, the SEC Documents
complied in all material respects with the requirements of the Exchange Act,
and, to the best of BRLI’s knowledge and belief, none of the SEC Documents
contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements
made therein, in light of the circumstances under which they were made, not
misleading. BRLI qualifies under applicable law as a “Registrant” to use a Form
S-3 Registration Statement to effect the registration of its securities with
the SEC but does not meet the “transaction” requirements for a primary offering
under Form S-3. To the best of BRLI’s knowledge and belief, the financial
statements of BRLI, including the notes thereto, included in the SEC Documents
(the “Financial Statements”) comply as to form in all material respects with
applicable accounting requirements and with the published rules and regulations
of the SEC with respect thereto, have been prepared in accordance with
generally accepted accounting principles consistently applied (except as may be
indicated in the notes thereto or, in the case of unaudited statements, as
permitted by Form 10-Q of the SEC) and fairly present the financial condition
at the dates thereof and of its operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal, recurring audit
adjustments). There has been no change in BRLI’s accounting policies except as
described in the notes to the Financial Statements. BRLI has no material
obligation other than (i) those set forth in the Financial Statements and (ii)
those not required to be set forth in the Financial Statements under generally
accepted accounting principles.

(D)          No Material Adverse Change –
Since January 31, 2001, there has not been any material adverse change in the
results of operations, financial condition, assets, liabilities or business
prospects of BRLI or, except as described in (E) of this Section 3, the
recurrence of any event which, with the passage of time or otherwise, would
result in a material adverse change in the financial condition, assets,
liabilities or business prospects of BRLI (other than on account of matters
which affect generally the economy or the industry in which BRLI is engaged).

 

(E)           Compliance with Other Instruments
– At October 31, 2000, BRLI was in default under its principal Loan Agreement
(the “Loan Agreement”) with PNC Bank (the “Bank”) due to BRLI’s failure to
maintain a certain tangible net worth at fiscal year end as well as due to its
advancing of loans to two wholly owned subsidiaries. The Bank waived these
violations effective October 31, 2000 and the loan due date was extended to
September 30, 2001. At January 31, 2001 and again at April 30, 2001, BRLI
continued to be in default with respect to the prohibitions against loans to
these two subsidiaries and notified the Bank which has taken no action with
respect thereto at the date hereof. Except for the above defaults with respect
to the prohibition against loans under the Loan Agreement, BRLI is not, to the
best of its knowledge and belief, in default in the performance of any material
obligation, agreement or condition contained in any note or other evidence of
indebtedness or in any indenture or loan agreement which default would afford
to any person the right to accelerate any material indebtedness or terminate
any material right or agreement of BRLI. BRLI is not in violation of its
Certificate of Incorporation, as amended, or its bylaws, nor, to the best of
its knowledge and belief, is BRLI in default under any material contract
(excluding the Loan Agreement) or license to which it is a party. Neither the
sale of the Shares nor the execution and delivery of the Stock Purchase Agreement,
nor the fulfillment of the terms herein set forth and the consummation of the
transactions herein contemplated will (i) conflict with or constitute a breach
of, default under or violation of BRLI’s Certificate of Incorporation, as
amended, or bylaws; or to the best of BRLI’s knowledge and belief, (ii)
conflict with or constitute a breach of, default under or violation of any
material agreement, indenture or other material instrument or undertaking by
which BRLI is bound or to which any of its properties are subject; (iii)
constitute a violation of any law, administrative regulation or court decree
binding upon BRLI; or (iv) result in the creation of or imposition of any
material lien, charge or encumbrance upon any substantial portion of the
property or assets of BRLI.

 

(F)           Capitalization – BRLI’s
authorized capital stock consists of 18,333,333 shares of common stock, $.01
per value (“Common Stock”) and 1,666,667 shares of preferred stock, $.01 par
value (“Preferred Stock”). At the time of the Closing, BRLI will have not more
than 9,184,449 shares of Common Stock issued and outstanding or in the process
of being issued (including 159,578 shares of Common Stock which, although
outstanding, are being held in escrow for delivery to a third party vendor upon
the completion by the vendor of the furnishing of services to BRLI) and not
more than 604,078 shares of Preferred Stock (Series A Senior Preferred Stock)
issued and outstanding, and convertible on a share for share basis into Common
Stock. The Series A Senior Preferred Stock is owned by BRLI’s president and
chief executive officer, Marc D. Grodman M.D., and his wife. In addition, at
the time of the Closing, BRLI will have outstanding options and warrants (some
contingent upon certain future conditions being fulfilled) exercisable to
purchase not more than an aggregate 1,983,224 shares of Common Stock, and there
will be no other outstanding subscriptions, options or warrants to purchase or
contracts or other agreements or commitments to issue or any other rights
entitling anyone to acquire, or outstanding securities convertible into shares
of BRLI’s capital stock except for this Stock Purchase Agreement providing for
the issuance of the Shares to the Purchaser.

 

(G)           Title to the Shares – Upon
completion of the Closing described in Section 2 herein including the
Purchaser’s payment of the Purchase Price to BRLI and BRLI’s delivery of a
stock certificate for the Shares to the Purchaser, the Shares will be duly
authorized, validly issued, fully-paid and non-assessable, and the Purchaser
will be the record owner of the Shares on the transfer books and records of
BRLI.

(H)          Litigation – Except for the
pending review by BRLI’s Medicare carrier and the pending Right Body Foods
litigation referred to in Section 4(E) herein, there are no suits, actions or
legal, administrative, arbitration or other proceedings or governmental
investigations against BRLI pending or, to BRLIs knowledge, threatened, which
(i) if determined adversely to BRLI, could be expected to result in a material
adverse effect on the financial condition, assets, business prospects or
results of operations of BRLI or (ii) seek to prevent the consummation of the
transaction contemplated hereby.

 

(I)            Compliance with Laws – To the
best of BRLI’s knowledge and belief, BRLI has complied with and is not in
violation of any federal, state or local statute, law or regulation with
respect to the conduct of its business or the ownership or operation of its
business, assets or properties. Furthermore, BRLI has not received any notice
of violation with respect to any such statute, law or regulation.

 

(J)            Offering – Subject in part to
the truth and accuracy of the Purchaser’s representations set forth in Section
4 of this Stock Purchase Agreement, the offer, sale and issuance of the Shares
as contemplated by this Stock Purchase Agreement are exempt from the
registration requirements of Section 5 of the Securities Act, and neither BRLI
nor any authorized agent acting on its behalf will take any action hereafter
that would cause the loss of such exemption.

 

(K)          Effectiveness of Representations
and Warranties at Closing – The representations and warranties of BRLI
contained in this Stock Purchase Agreement will be true and correct on the date
of the Closing as though then made and as though the date of the Closing was
substituted for the date of this Stock Purchase Agreement throughout same,
except as affected by the transactions expressly contemplated herein.

 

4.             Representations and
Warranties of the Purchaser

 

The
Purchaser hereby represents and warrants to BRLI that the following is true:

 

(A)          Accredited Investor Acquiring for
Investment – The Purchaser is an “accredited investor” as defined in Rule
501(a) of  Regulation D promulgated by
the SEC under the Securities Act and as illustrated by the background of the
Managing Director of its General Partner, is sophisticated in business and
financial matters. The Purchaser is acquiring the Shares for its own account
for investment, not for the interest of any other person and not with a view to
or in connection with a sale or distribution, and it will not sell or otherwise
transfer the Shares without registration under the Securities Act unless
pursuant to an applicable exemption therefrom. The Purchaser has been advised
that transfer stops will be placed against the Shares to insure compliance with
the foregoing representation and warranty and that a restrictive legend will be
placed on the stock certificate representing the Shares.

 

(B)           Partnership Power – The
Purchaser will have at the Closing all requisite power and authority (i) to
execute and deliver this Stock Purchase Agreement and each other document
executed in connection herewith, (ii) to purchase the Shares, and (iii) to
carry out and perform its obligations under the terms of this Stock Purchase
Agreement.

(C)           Relationship to Other Investments
– The Purchaser’s overall commitment to investments which are not readily
marketable (including this investment in BRLI) is reasonable in relation to and
is not disproportionate to its net worth and it has no present need for
liquidity in this investment. The Purchaser understands that there is
substantial risk in this investment in BRLI.

 

(D)          Access to Information – The
Purchaser has received and has carefully reviewed copies of BRLI’s annual
report on Form 10-K for the year ended October 31, 2000 and BRLI’s quarterly
report on Form 10-Q for the quarter ended January 31, 2001. In addition, prior
to making its decision to purchase the Shares, the Purchaser has had face to
face meetings with members of BRLI’s management at BRLI’s executive offices and
has asked questions and obtained responses concerning the business and
financial condition of BRLI which are consistent with the information contained
in the SEC Documents.

 

(E)           Awareness of Risk – The
Purchaser is aware of the substantial risk to its investment hereunder as
reflected herein and in the SEC Documents including but not limited to BRLI’s
default under its Loan Agreement with the Bank, described in Section 3(E)
above, pending reviews by BRLI’s Medicare carrier and pending litigation
concerning BRLI’s acquisition of the business of Right Body Foods.

 

(F)           Directorship – Morton L.
Topfer, the Managing Director of the General Partner of the Purchaser, will
serve as a BRLI director upon his election as such, until the next annual
meeting of BRLI’s stockholders, provided that he is so elected by BRLI’s
directors within 30 days after the Closing. If so requested by the Purchaser,
BRLI’s management will include Morton L. Topfer in its slate of directors at
the next annual meeting of BRLI’s stockholders.

 

(G)           Timely Filings of Reports –
The Purchaser has been advised that its purchase of the Shares, when completed,
will result in it becoming a more than 5% beneficial owner of BRLI’s outstanding
Common Stock. As a result, the Purchaser will be required pursuant to §13(d)
under the Exchange Act to file a report on Schedule 13D with the SEC and with
BRLI within ten days after the Closing. In addition, by virtue of the fact that
the Shares will comprise more than 10% of BRLI’s outstanding Common Stock, the
Purchaser  will also be required to file
a Form 3 at the same time. The Purchaser agrees to file the Schedule 13D and
the Form 3 on a timely basis.

 

(H)          Effectiveness of Representations
and Warranties at Closing – The Purchaser’s representations and warranties
contained in this Stock Purchase Agreement will be true and correct on the date
of the Closing as though then made and as though the date of the Closing was
substituted for the date of the Stock Purchase Agreement throughout same,
except as affected by the transactions expressly contemplated herein.

 

5.         Registration Rights and
Additional Agreements

 

(A)          Not more than twice during the period
commencing one year after the Closing and expiring four years thereafter, the
Purchaser shall have the right, exercisable by written notice to BRLI, to
demand that BRLI file with the SEC, a registration statement under the
Securities Act and such other documents, including a prospectus, as may be
necessary in the opinion of BRLI’s securities counsel, in order to comply with
the provisions of the Securities Act, so as to permit a public offering and
sale of its Shares by the Purchaser for four consecutive months after the
effective date thereof, as well as by any other holders (the “Holders”) of
Shares which have not been publicly distributed and who notify BRLI to include
such Shares in the registration statement within ten days after receiving
notice from BRLI of the demand. BRLI shall not be required to file more than
two such registration statements and the filing dates for such registration
statements shall be at least twelve months apart.

(B)           BRLI shall use its best efforts to
file a registration statement within 45 days of receipt of any demand therefor,
shall use its best efforts to cause any filed registration statements to be
declared effective at the earliest possible date, and shall furnish the
Purchaser and each Holder desiring to sell Shares with a reasonable number of
prospectuses.

 

(C)           BRLI shall pay all costs (excluding
fees and expenses of the Purchaser’s and of each Holder(s)’ counsel and any
underwriting or selling commissions or other charges of any broker-dealer
acting on behalf of the Purchaser and the Holder(s)), fees and expenses with
respect to any registration statement filed pursuant to this Section 5,
including, without limitation, BRLI’s legal and accounting fees, printing
expenses, and in not more than ten states, blue sky fees and expenses. In
connection with qualifying the Shares for sale in any state (not to exceed ten
in number), BRLI shall not be obligated to execute or file any general consent
to service of process or to qualify as a foreign corporation to do business
under the laws of such jurisdiction (unless BRLI is already so qualified or
already subject to service in such jurisdiction and except as may be required
by the Securities Act).

 

(D)          BRLI, the Purchaser and each selling
Holder shall execute and deliver to each other, typical indemnification
agreements with respect to claims arising under the federal securities laws
based upon disclosures made or omitted in the said registration statements.

 

(E)           BRLI will file a Nasdaq Small Cap
Market Notification Form to list the Shares at the end of its current fiscal
year.

 

(F)           BRLI hereby agrees at the cost and
expense of BRLI to:

 

(i)            Make and keep public information
available concerning BRLI, as those terms are understood and defined in Rule
144 under the Securities Act.

 

(ii)           file with the SEC in a timely manner
all reports and other documents required of BRLI under the Securities Act and
the Exchange Act; and

 

(iii)          so long as the Purchaser owns any
Shares, furnish to the Purchaser forthwith upon request (i) a written statement
by BRLI as to its compliance with the reporting requirements under Rule 144
(and of the Securities Act and the Exchange Act), (ii) providing the proposed
transfer would be exempt from registration under the Securities Act, an opinion
of counsel addressed to BRLI’s transfer agent as may be required to effect the
transfer of any and all Shares sold by the Purchaser, and (iii) such other
information as may be reasonably requested in availing the Purchaser or any
Holder of any rule or regulation of the SEC that permits the selling of any
such securities without registration.

(G)           During the time that he is serving as
a BRLI director, BRLI shall promptly reimburse Morton L. Topfer for all of his
reasonable out-of-pocket expenses incurred in attending each meeting of the
Board of Directors of BRLI (in addition to any other compensation or other
benefits given to members of BRLI’s Board of Directors). BRLI shall within
thirty (30) calendar days of the Closing apply to financially sound and
reputable insurers to obtain directors and officers insurance covering the
officers and directors of BRLI (including Morton L. Topfer), and will use its
best efforts to obtain such coverage. BRLI will cause to be maintained the
directors and officers insurance required by this subsection during any time
period in which Morton L. Topfer serves on BRLI’s Board of Directors. Such
policy shall not be cancelable by BRLI without prior approval of the Board of
Directors.

 

6.             Conditions to
BRLI’s Obligation to Close

 

The
obligation of BRLI to consummate this Stock Purchase Agreement and complete the
sale of the Shares shall be subject to each of the following conditions.

 

(A)          Each of the representations and
warranties made by the Purchaser in Section 4 hereof shall be true and accurate
as of the date when made and shall be deemed to be made again at and as of the
time of the Closing hereunder and shall then be true and accurate in all
respects.

 

(B)           No suit or action, investigation or
inquiry by any administrative agency or governmental body, and no legal or
administrative proceeding shall have been instituted or threatened which in any
way questions the validity or legality of this Stock Purchase Agreement or the
transactions contemplated hereby, at or prior to the Closing.

 

(C)           BRLI shall have received confirmation
from The Nasdaq Stock Market, Inc. that the issue and sale of the Shares to the
Purchaser does not require shareholder approval pursuant to the rules of The
Nasdaq Stock Market.

 

(D)          Each and every one of the transactions
required herein to occur at the Closing shall have been completed.

 

7.             Conditions to the
Purchaser’s Obligation to Close

 

The
obligation of the Purchaser to consummate this Stock Purchase Agreement and
complete the purchase of the Shares shall be subject to each of the following
conditions.

 

(A)          Each of the representations and
warranties made by BRLI in Section 3 hereof shall be true and accurate as of
the date when made and shall be deemed to be made again at and as of the time
of the Closing hereunder and shall then be true and accurate in all respects.

 

(B)           No suit or action, investigation or
inquiry by any administrative agency or governmental body, and no legal or
administrative proceeding shall have been instituted or threatened which in any
way questions the validity or legality of this Stock Purchase Agreement or the
transactions contemplated hereby, at or prior to the Closing.

(C)           BRLI shall have received confirmation
from The Nasdaq Stock Market, Inc. that the issue and sale of the Shares to the
Purchaser does not require shareholder approval pursuant to the rules of The
Nasdaq Stock Market.

 

(D)          BRLI shall have executed and delivered
the Indemnification Agreement in substantially the form of Exhibit A
attached hereto.

 

(E)           Each and every one of the
transactions required herein to occur at the Closing shall have been completed.

 

8.             Survival of
Representations and Warranties

 

Each
statement of fact contained herein or in any statement, certificate, schedule
or other document delivered by or on behalf of the Purchaser or by BRLI
pursuant to this Stock Purchase Agreement or in connection with the
transactions contemplated hereby, shall be deemed a representation and warranty
of the Purchaser or BRLI hereunder, as the case may be. All covenants,
agreements, representations and warranties made by the Purchaser or by BRLI
under or in connection with this Stock Purchase Agreement shall survive the
Closing and remain effective regardless of any investigation at any time by or
on behalf of the Purchaser or BRLI with respect thereto.

 

9.             Miscellaneous

 

(A)          Each party hereto represents and
warrants to the other party hereto that neither he nor it has incurred any
obligation or liability contingent or otherwise, for brokerage or a finder’s
fees or an agent’s commission or other like payment in connection with this Stock
Purchase Agreement or the transactions contemplated hereby, and each party
agrees to indemnify and hold the other party hereto harmless against and in
respect of any such obligation or liability based in any way on agreements,
arrangements or understandings claimed to have been made by such party with any
third party.

 

(B)           This Stock Purchase Agreement
constitutes the entire agreement between the parties hereto and supercedes all
prior agreements and understandings, oral and written, between the parties with
respect to the subject matter hereof. No representation, promise, inducement or
statement of fact has been made by the Purchaser or by BRLI which is not
embodied in this Stock Purchase Agreement or in a written statement,
certificate, schedule or other document delivered pursuant hereto or made
express reference to herein, and neither the Purchaser nor BRLI shall be bound
or liable for any alleged representation, promise, inducement or statement of
fact not so set forth.

 

(C)           This Stock Purchase Agreement shall
inure to the benefit of and be binding upon the Purchaser and BRLI and their
respective successors and assigns.

 

(D)          All notices, requests, demands and
other communications which are required or may be given under or in connection
with this Stock Purchase Agreement shall be in writing and shall be deemed to
have been duly given if mailed, certified or registered mail, postage prepaid:

 

(i)            if to the Purchaser addressed to it
at 5000 Plaza on the Lake, Suite 170, Austin, Texas 78746 (with a copy (which
shall not constitute notice) to John A. Menchaca, Esq., Jenkens &
Gilchrist, a Professional Corporation, 2200 One American Center, 600 Congress
Avenue, Austin, Texas 78701).

 

(ii)           if to BRLI, addressed to Marc
Grodman, President, Bio-Reference Laboratories, Inc. 481 Edward H. Ross Drive,
Elmwood Park, New Jersey 07407 (with a copy (which shall not constitute notice)
to Roger A. Tolins, Esq., Tolins & Lowenfels, A Professional Corporation,
747 Third Avenue, New York, NY 10017).

 

Such
notices, requests, demands and other communications shall be deemed given three
(3) days after date of deposit thereof with the United States mail in a postage
prepaid envelope by certified or registered mail.

 

(E)           This Stock Purchase Agreement shall
be construed and enforced in accordance with the laws of New Jersey without
regard to the principle of the conflict of laws. The parties hereto agree that
the exclusive venue for any action arising out of or relating to this Stock
Purchase Agreement shall be the federal or state courts located in the State of
New Jersey and each party hereby irrevocably submits and consents to the
exclusive jurisdiction of such courts. In the event that any dispute among the
parties to this Stock Purchase Agreement should result in litigation, the
prevailing party in such dispute shall be entitled to recover from the losing
party all fees, costs and expenses of enforcing any right of such prevailing
party under or with respect to this Stock Purchase Agreement, including,
without limitation, such reasonable fees and expenses of attorneys and
accountants, including all reasonable fees, costs and expenses of appeal.

 

(F)           The parties agree to take all such
additional actions and to execute and deliver all such additional documents as
shall be necessary in order to effectuate all of the foregoing.

 

(G)           This Stock Purchase Agreement shall
not be modified or amended except by a writing duly executed by both of the
parties hereto.

 

(H)          A facsimile, telecopy or other
reproduction of this Stock Purchase Agreement may be executed by one or more
parties hereto, and an executed copy of this Stock Purchase Agreement  may be delivered by one or more parties
hereto by facsimile or similar electronic transmission device pursuant to which
the signature of or on behalf of such party can be seen, and such execution and
delivery shall be considered valid, binding and effective for all purposes. At
the request of any party hereto, all parties hereto agree to execute an
original of this Agreement as well as any facsimile, telecopy or other
reproduction hereof.

 

IN WITNESS WHEREOF,
the parties hereto have made and entered into this Agreement effective the date
first hereinabove set forth.

 

 

	
  Castletop Investments, L.P.

  (d/b/a Castletop Capital)

  a Texas limited partnership
             (the “Purchaser”)

  	
  Bio-Reference Laboratories, Inc. (“BRLI”)

  
	
   

  	
  By  

  	
  /s/Marc D. Grodman, President

  	
   

  
	
   

  	
   

  
	
  By: Topfer Holdings I, Inc.
             a Texas corporation
             Its general partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ Morton L. Topfer, Managing Director

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED solely as to the provisions of Section 4(F)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Morton L. Topfer, Managing Director

  	
   

  	
   

  
	
  (Individually)

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